Commitments and Contingencies

9 Months Ended

Oct. 29, 2011

Commitments and Contingencies

5. Commitments and Contingencies

The Company accounts for litigation and claims in accordance with Topic 450, Contingencies. Pursuant to Topic 450, loss contingency provisions are recorded for probable and estimable losses based upon the Company’s best estimate of a loss, or when a best estimate cannot be made, at its estimate of the minimum loss. These estimates are refined each accounting period as additional information becomes known.

The Company is subject to various legal proceedings and claims that arise in the ordinary course of business. For example, the Company is involved in two California meal and rest breaks class action suits. During the third quarter of fiscal 2011, the Company recorded a charge of approximately $1.4 million, which represents an accrual for the Company’s estimate of potential obligations for certain of its outstanding litigation, primarily related to the two California class action lawsuits, as well as incurred legal fees to date. Management believes that it has sufficiently accrued for such matters and that the resolution of those matters will not have a material adverse impact on the results of operations or the financial position of the Company.