Annual report pursuant to Section 13 and 15(d)

Commitments and contingencies

v3.3.1.900
Commitments and contingencies
12 Months Ended
Jan. 30, 2016
Commitments and Contingencies Disclosure [Abstract]  
Commitments and contingencies

4.    Commitments and contingencies

Leases The Company leases retail stores, distribution and office facilities, and certain equipment. Original non-cancelable lease terms range from three to ten years, and store leases generally contain renewal options for additional years. A number of the Company’s store leases provide for contingent rentals based upon sales. Contingent rent amounts were insignificant in fiscal 2015, 2014 and 2013. Total rent expense under operating leases was $181,487, $159,245 and $138,086 for fiscal 2015, 2014 and 2013, respectively. Future minimum lease payments under operating leases as of January 30, 2016, are as follows:

 

Fiscal year

   Operating
Leases
(in thousands)
 

2016

   $ 238,837   

2017

     240,654   

2018

     225,187   

2019

     209,867   

2020

     196,952   

2021 and thereafter

     647,636   
  

 

 

 

Total minimum lease payments

   $ 1,759,133   
  

 

 

 

Included in the operating lease schedule above is $176,749 of minimum lease payments for stores that are expected to open in fiscal 2016.

Contractual obligations — As of January 30, 2016, the Company had obligations of $4,908 related to commitments made to a third party for products and services for a future distribution center for which a lease has been signed. Payments under these commitments were $28,044 and $38,212 for fiscal 2015 and 2014, respectively. In addition, the Company has entered into various non-cancelable advertising and other goods and service contracts. These agreements expire over one year and the obligations under these agreements were $22,005 as of January 30, 2016.

General litigation — The Company is the defendant in four putative employment class action lawsuits that allege that the Company violated various provisions of California’s labor laws. All four of these lawsuits seek to recover damages and penalties as a result of these alleged practices. The Company has agreed to settle one of the suits for $1,750 (a significant portion of which will be allocated to attorneys’ fees for plaintiff’s counsel). The settlement, which is fully reserved for, remains subject to final court approval; preliminary approval was granted on March 11, 2016. Under the terms of the settlement, the Company admits no liability and the parties fully and finally release all claims. The Company denies the plaintiff’s allegations in the other three suits and is vigorously defending these matters.

 

The Company is also involved in various legal proceedings that are incidental to the conduct of our business. In the opinion of management, the amount of any liability with respect to these proceedings, either individually or in the aggregate, will not be material.