Commitments and Contingencies

3 Months Ended

Nov. 01, 2014

Commitments and Contingencies [Abstract]

Commitments and Contingencies

8.Commitments and Contingencies

Lease Commitments.

We have entered into capital leases for certain property.  At November 1, 2014, the total capital lease obligations were $3.6 million, of which $0.4 million was included in short-term capital lease obligations and $3.2 million was included in other liabilities, net, on our unaudited condensed consolidated balance sheet.  At February 1, 2014, the total capital lease obligations were $3.2 million, of which $0.3 million was included in short-term capital lease obligations and $2.9 million was included in other liabilities, net, on our unaudited condensed consolidated balance sheet.

During the thirteen weeks ended November 1, 2014, we opened 26 stores and closed 7 stores increasing our lease commitments by a net of 19 retail stores. The stores we opened have initial lease termination dates between August 2019 and February 2025.  At November 1, 2014, the future minimum lease payments, excluding maintenance, insurance and real estate taxes, for our current capital and operating leases, were as follows (in thousands):

	Capital		Operating		Total
Remaining Fiscal 2015	$	179	$	13,752	$	13,931
Fiscal 2016		726		48,534		49,260
Fiscal 2017		735		40,257		40,992
Fiscal 2018		735		31,980		32,715
Fiscal 2019		730		24,290		25,020
Fiscal 2020		703		16,026		16,729
Thereafter		1,288		29,741		31,029
Total minimum lease payments		5,096		204,580		209,676
Less amount representing interest		1,528		-		1,528
Present value of total minimum lease payments	$	3,568	$	204,580	$	208,148

Included in the above table are future minimum lease payments on our former distribution center which aggregate approximately $0.2 million.  The related operating lease expires in December 2014.

Annual Bonuses and Equity Incentive Awards.

Specified officers and corporate employees of our Company are eligible to receive annual bonuses, based on measures of Company operating performance.  At November 1, 2014 and February 1, 2014, there was $2.6 million and $4.0 million, respectively, of annual bonus related expenses included in accrued payroll expenses on our unaudited condensed consolidated balance sheets.

In addition, the Compensation Committee of the Board has placed performance criteria on awards of restricted stock units (PSUs) to our Named Executive Officers.  The performance criteria are tied to performance targets with respect to future return on invested capital and earnings before interest and taxes over a specified period of time.  These PSUs are expensed under the provisions of ASC Topic 718, Compensation – Stock Compensation, and are evaluated each quarter to determine the probability that the performance conditions set within will be met.

Legal Proceedings and Other Contingencies.

No material amounts were accrued at November 1, 2014 or February 1, 2014 pertaining to legal proceedings or other contingencies.