Commitments and Contingencies

12 Months Ended

Feb. 02, 2013

Commitments and Contingencies

NOTE 9. Commitments and Contingencies

Leases  We have entered into operating lease agreements for retail, distribution and office space, vehicles and equipment under primarily non-cancelable leases with terms ranging from approximately two to ten years.  The retail space leases provide for rents based upon the greater of the minimum annual rental amounts or a percentage of annual store sales volume.  Certain leases provide for increasing minimum annual rental amounts.  Rent expense is recorded on a straight-line basis over the term of the lease based on us taking possession of premises.  Accordingly, deferred rent, as reflected in the accompanying balance sheets, represents the difference between rent expense accrued and amounts paid under the terms of the lease agreements.  Total rent expense for fiscal 2012, 2011 and 2010 was $54.7 million, $52.3 million and $52.6 million, respectively, including contingent rentals of $0.5 million, $0.2 million and $0.2 million, respectively.

Annual future minimum lease payments under operating leases as of the end of fiscal 2012 are as follows (in thousands):

Fiscal Year
2013	$	55,183
2014		45,200
2015		36,383
2016		29,590
2017		22,908
Thereafter		56,523
Total minimum operating lease payments	$	245,787

Litigation  From time to time, we are involved in other matters of litigation that arise in the ordinary course of business. See “NOTE 15 – Subsequent Events” contained in these consolidated financial statements and notes for a discussion of litigation relating to our proposed plan of merger with Sycamore Partners.

Indemnities, Commitments and Guarantees During the ordinary course of business, we have made certain indemnities, commitments and guarantees under which we may be required to make payments in relation to certain transactions.  These indemnities include those given to various lessors in connection with facility leases for certain claims arising from such facility or lease and indemnities to our directors and officers to the maximum extent permitted under the laws of the State of California.  From time to time, we have issued guarantees in the form of letters of credit as security for some merchandise shipments from overseas (our letters of credit are discussed in more detail in “NOTE 8 – Bank Credit Agreement” contained in these consolidated financial statements and notes).  The durations of these indemnities, commitments and guarantees vary.  Some of these indemnities, commitments and guarantees do not provide for any limitation of the maximum potential future payments we could be obligated to make.  We have not recorded any liability for these indemnities, commitments and guarantees in the accompanying consolidated financial statements.