COMMITMENTS AND CONTINGENCIES

12 Months Ended

Jan. 28, 2017

Commitments and Contingencies Disclosure [Abstract]

Operating Lease Commitments

The Company leases all of its stores, offices and distribution facilities (except the Ft. Payne, Alabama distribution center which the Company owns), and certain office equipment, store fixtures and automobiles, under operating leases expiring through 2026. The leases require fixed minimum annual rental payments plus, under the terms of certain leases, additional payments for taxes, other expenses, and additional rent based upon sales.

Store, office and distribution facilities minimum rent, contingent rent and sublease income are as follows:



	Fiscal Year Ended
	January 28, 2017		January 30, 2016		January 31, 2015
	(In thousands)
Minimum rentals	157,647		159,641		164,510
Additional rent based upon sales	1,367		751		797
Sublease income	(2,275	)	(2,766	)	(2,967	)


8.	COMMITMENTS AND CONTINGENCIES (Continued)

Future minimum annual lease payments under the Company's operating leases at January 28, 2017 were as follows:



	Minimum Operating Lease Payments
	(In thousands)
2017	$	144,196
2018	125,707
2019	110,016
2020	91,233
2021	70,180
Thereafter	107,734
Total minimum lease payments	$	649,066

Purchase Commitments

As of January 28, 2017, the Company has entered into various purchase commitments for merchandise for re-sale of approximately $449.4 million and approximately $21.7 million for equipment, construction and other non-merchandise commitments.

Employment Agreements

The Company has an employment agreement with its President and Chief Executive Officer, which provides for severance of two times the sum of base salary plus bonus, and certain other payments and benefits following any termination without cause or for “good reason”. As of January 28, 2017, these cash severance benefits approximated $6.8 million. In the event of a change in control of the Company, certain executives will receive, in the aggregate, approximately $23.9 million of cash severance benefits should they either be terminated or voluntarily terminate their employment due to a degradation of duties as defined in their change in control agreements.

Loss Contingency for Foreign Exchange Control Penalties

During the fourth quarter of Fiscal 2016, the Company determined that one of its foreign subsidiaries had not complied with local foreign exchange control funding regulations related to offshore funding of those operations. The Company is currently reviewing the matter and plans to report the noncompliance to the foreign jurisdiction at issue during Fiscal 2017. The Company has concluded that, based on currently available information, a reasonable estimate of penalties payable by the Company arising from the matter will range between $1.9 million and $2.5 million. In making its estimates, however, the Company notes that this range is based on currently available information and involves elements of judgment and significant uncertainties, and that actual penalties may exceed the high end of the range. The Company has recorded a provision for potential penalties arising from the matter of $1.9 million in its consolidated financial statements.