Commitments and Contingencies

3 Months Ended

Apr. 30, 2016

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

4. Commitments and Contingencies

Leases—We lease our stores and certain corporate and other operating facilities under operating leases. Total rent expense is as follows (in thousands):

	Three Months Ended
	April 30, 2016		May 2, 2015
Minimum rent expense	$	18,001	$	16,893
Contingent rent expense		414		337
Total rent expense (1)	$	18,415	$	17,230

(1) Total rent expense does not include real estate taxes, insurance, common area maintenance charges and other executory costs, which were $10.2 million for the three months ended April 30, 2016 and $9.4 million for the three months ended May 2, 2015.

A majority of our leases provide for ongoing co-tenancy requirements or early cancellation clauses that would further lower rental rates, or permit lease terminations, or both, in the event that co-tenants cease to operate for specific periods or if certain sales levels are not met in specific periods. Most of the store leases require payment of a specified minimum rent and a contingent rent based on a percentage of the store’s net sales in excess of a specified threshold, as well as real estate taxes, insurance, common area maintenance charges and other executory costs. Future minimum lease payments at April 30, 2016 are as follows (in thousands):

Fiscal 2016	$	50,499
Fiscal 2017		64,208
Fiscal 2018		59,319
Fiscal 2019		52,385
Fiscal 2020		48,526
Thereafter		150,519
Total (1)	$	425,456

(1) Amounts in the table do not include contingent rent and real estate taxes, insurance, common area maintenance charges and other executory costs obligations.

Purchase Commitments—At April 30, 2016, we had outstanding purchase orders to acquire merchandise from vendors of $179.8 million. We have an option to cancel these commitments with no notice prior to shipment, except for certain private label and international purchase orders in which we are obligated to repay contractual amounts upon cancellation.

Litigation—We are involved from time to time in claims, proceedings and litigation arising in the ordinary course of business. We have made accruals with respect to these matters, where appropriate, which are reflected in our condensed consolidated financial statements. For some matters, the amount of liability is not probable or the amount cannot be reasonably estimated and therefore accruals have not been made. We may enter into discussions regarding settlement of these matters, and may enter into settlement agreements, if we believe settlement is in the best interest of our shareholders.

Insurance Reserves—We use a combination of third-party insurance and self-insurance for a number of risk management activities including workers’ compensation, general liability and employee-related health care benefits. We maintain reserves for our self-insured losses, which are estimated based on historical claims experience and actuarial and other assumptions. The self-insurance reserve at April 30, 2016 and January 30, 2016 was $2.3 million and $2.1 million.