COMMITMENTS AND CONTINGENCIES

12 Months Ended

Jan. 28, 2012

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES

12. COMMITMENTS AND CONTINGENCIES

Leases

        The Company is obligated under operating leases for a significant portion of its store properties. Certain leases provide for additional rental payments based on a percentage of sales in excess of a specified base (contingent rentals) and for payment by the Company of operating costs (taxes, maintenance and insurance), both of which vary by lease.

        At January 28, 2012, future minimum lease payments for the fixed, noncancelable terms of operating leases and the present value of net minimum lease payments under capital leases are as follows:

Year	Capital Leases			Operating Leases
2012	$	8,805		$	91,211
2013		8,031			85,837
2014		7,623			70,513
2015		7,500			57,963
2016		7,500			41,107
2017 and thereafter		52,500			112,226
Total net minimum rentals	$	91,959		$	458,857
Less: Amount representing interest		(30,917	)
Present value of net minimum lease payments, of which $4,365 is due within one year	$	61,042

        Minimum rental commitments under operating leases are reflected without reduction for rental income due in future years under noncancelable subleases since income under these subleases is immaterial. Some of the store leases contain renewal options ranging from three to 50 years. Included in the minimum lease payments under operating leases are leased vehicles, copiers, postage meters, computer equipment and a related-party commitment with an entity associated with the Company's majority shareholder of $224 for years 2012, 2013, 2014 and 2015 and $112 for 2016.

        Rental expense consisted of the following:

	2011		2010		2009
Operating leases:
Buildings:
Rental expense	$	85,743	$	87,501	$	88,615
Contingent rentals		5,761		6,469		7,237
Fixtures and equipment		1,505		1,353		5,011
Totals	$	93,009	$	95,323	$	100,863

        Rental expense includes amounts paid to an entity related to the Company's majority shareholder of $224 for each of 2011, 2010 and 2009.

        Selling space has been licensed to certain other retailers ("leased departments") in many of the Company's facilities. Future minimum lease payments and rental expense disclosed above are reflected without a reduction for leased departments' license income.

Contingencies

        In October 2010, the Company became aware that a third-party it had contracted with as its agent to receive, monitor and pay utility bills for the Company's properties was delinquent in its payment of the Company's utility bills, despite timely receipt of funds from the Company. On November 3, 2010, the Company filed suit against this third-party agent, Utility Account Billing Services, Inc., and its affiliate Synergy Energy Holdings, LLC, in Supreme Court, State of New York, County of Erie. In June 2011, summary judgment was granted in favor of the Company for the full amount of the claim of $3,117, and the Company has initiated efforts to collect on that judgment. Additionally, the Company filed a claim with one of its insurance carriers, and in July 2011 entered into a settlement agreement with the insurance carrier, payment for which has been received. Per the settlement agreement, the insurance carrier will be reimbursed by the Company for collections from the judgment that exceed the difference between the full amount of the claim under the lawsuit and the insurance payment received.

        The Company is party to legal proceedings and claims that arise during the ordinary course of business. In the opinion of management, the ultimate outcome of any such litigation and claims will not have a material adverse effect on the Company's financial condition, results of operations or liquidity.