COMMITMENTS AND CONTINGENCIES

12 Months Ended

Jan. 31, 2015

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 31, 2015, future minimum lease payments for the noncancelable terms of operating leases, including lease renewals determined to be reasonably assured, and the present value of net minimum lease payments under capital leases are as follows:

Year	Capital Leases			Operating Leases
2015	$	7,500		$	91,157
2016		7,500			86,803
2017		8,125			81,308
2018		7,500			76,101
2019		7,500			69,571
2020 and thereafter		29,375			280,878
Less: Sublease income		—			(425	)
Total net minimum rentals		67,500		$	685,393
Less: Amount representing interest		(18,523	)
Present value of net minimum lease payments, of which $3,961 is due within one year	$	48,977

        Certain leases contain renewal options ranging from one to 50 years. Included in the minimum lease payments under operating leases are leased vehicles, postage meters, computer equipment and a related-party commitment with an entity associated with the Company's majority shareholder of $224 for each of years 2015 through 2019 and $335 for 2020 and thereafter.

        Rental expense, net of sublease income, consisted of the following:

	2014		2013		2012
Operating leases:
Buildings:
Rental expense	$	82,148	$	82,429	$	82,954
Contingent rentals		4,912		4,960		5,771
Fixtures and equipment		1,315		1,361		1,448
Totals	$	88,375	$	88,750	$	90,173

        Rental expense includes amounts paid to an entity related to the Company's majority shareholder of $224 for each of 2014, 2013 and 2012.

        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.

Gain on Insurance Recovery

        In November 2014, there was a fire at the Company's store located in North Riverside, Illinois. The merchandise in the store, which had a cost of $5,980, was damaged from the smoke and the Company filed an insurance claim to cover the inventory loss and property damage. The Company recognized a gain on insurance recovery related to the inventory loss of $10,779, which is shown separately in the accompanying consolidated statement of operations.

Contingencies

        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.