Commitments and Contingencies

26 Months Ended

Aug. 04, 2013

Commitments and Contingencies

Note 5: Commitments and Contingencies

We are subject to certain legal proceedings and claims that arise in the ordinary course of our business. In the opinion of management, based upon consultation with legal counsel, the amount of ultimate liability with respect to such legal proceedings and claims will not materially affect the consolidated results of our operations or our financial condition.

We lease certain property and equipment under various non-cancelable operating leases. Some of the leases include options for renewal or extension on various terms. Most of the leases require us to pay property taxes, insurance, and maintenance of the leased assets. Certain leases also have provisions for additional percentage rentals based on revenues.

The following table sets forth our lease commitments as of August 4, 2013:

	Operating Lease
	Obligations
	at August 4, 2013
1 year or less	$	54,929
2 years		53,645
3 years		52,123
4 years		50,431
5 years		48,356
Thereafter		244,084
Total future payments	$	503,568

We have signed operating lease agreements for our stores located in Albany, New York, and Syracuse, New York, which both opened in August 2013, and future sites located in Cary, North Carolina and Livonia, Michigan, which are expected to open in late fiscal 2013. The landlord has fulfilled the obligations to commit us to the lease terms under these agreements and therefore, the future obligations related to these locations are included in the table above.

Additionally, as of August 4, 2013, we have signed eight lease agreements which contain certain landlord obligations which remain unfulfilled as of that date. Our commitments under these agreements are contingent upon among other things, the landlord’s delivery of access to the premises for construction. Future obligations related to these agreements are not included in the table above.