Commitments and Contingencies

12 Months Ended

Jan. 28, 2017

8.Commitments and Contingencies

Operating Leases

The Company currently leases office and warehouse facilities under non-cancelable operating leases.

Future minimum non-cancelable lease payments as of January 28, 2017 are as follows:


	Operating
(amounts in thousands)	Leases
Fiscal 2018	$	2,488
Fiscal 2019		2,422
Fiscal 2020		2,351
Fiscal 2021		2,118
Fiscal 2022 and thereafter		8,893
Total future minimum lease payments	$	18,272

Total rent expense was $584 for Fiscal 2017, $414 for Fiscal 2016 and $387 for Fiscal 2015. Total operating lease expenses, excluding rent, was $89 for Fiscal 2017, $95 for Fiscal 2016 and $84 for Fiscal 2015.

Trademark Indemnities

Cherokee Global Brands indemnifies certain customers against liability arising from third‑party claims of intellectual property rights infringement related to the Company’s trademarks. These indemnities appear in the licensing agreements with the Company’s customers, are not limited in amount or duration and generally survive the expiration of the contracts. Given that the amount of any potential liabilities related to such indemnities cannot be determined until an infringement claim has been made, the Company is unable to determine a range of estimated losses that it could incur related to such indemnifications.

Litigation Reserves

The Company may be involved in various claims and other matters incidental to the Company’s business, the resolution of which is not presently expected to have a material adverse effect on the Company’s financial position, results of operations or liquidity. Estimated reserves for contingent liabilities, including threatened or pending litigation, are recorded as liabilities in the accompanying consolidated balance sheets when the outcome of these matters is deemed probable and the liability is reasonably estimable.

The likelihood of a material change in these estimated reserves would be dependent on new claims as they may arise and the expected probable favorable or unfavorable outcome of each claim. As additional information becomes available, the Company assesses the potential liability related to new claims and existing claims and revises estimates as appropriate. As new claims arise or existing claims evolve, such revisions in estimates of the potential liability could materially impact the Company's results of operations and financial position. No material amounts were accrued as of January 28, 2017 or January 30, 2016 related to any of the Company’s legal proceedings.