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Commitments and Contingencies
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6 Months Ended |
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Jul. 30, 2011
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| Commitments and Contingencies [Abstract] | |
| Commitments and contingencies |
3. Commitments and contingencies
Leases — The Company leases 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 the three and
six months ended July 30, 2011 and July 31, 2010. Total rent expense under operating leases was
$23,127 and $20,135 for the three months ended July 30, 2011 and July 31, 2010, respectively. Total
rent expense under operating leases was $44,984 and $39,594 for the six months ended July 30, 2011
and July 31, 2010, respectively.
General litigation — In May 2010, a putative employment class action lawsuit was filed against the
Company and certain unnamed defendants in state court in California. The plaintiff and members of
the proposed class are alleged to be (or have been) non-exempt hourly employees. The suit alleges
that Ulta violated various provisions of the California labor laws and failed to provide plaintiff
and members of the proposed class with full meal periods, paid rest breaks, certain wages, overtime
compensation and premium pay. The suit seeks to recover damages and penalties as a result of these
alleged practices. On June 21, 2010, the Company filed its answer to the lawsuit. On January 12,
2011, the Company and plaintiffs engaged in a voluntary mediation. Although the Company continues
to deny plaintiffs’ allegations, in the interest of putting certain of the claims behind it, the
Company agreed in principle to settle all claims of the putative class consisting of non-exempt
hourly hair designers in the salon department within the California retail stores. The settlement,
which is not an admission of liability, is subject to final documentation and Court approval.
Counsel for the plaintiffs has agreed to dismiss without prejudice the claims of all other putative
class members. The proposed settlement amount is not material.
The Company is also involved in various legal proceedings that are incidental to the conduct of its
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.
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