COMMITMENTS AND CONTINGENCIES

12 Months Ended

Jan. 31, 2015

Commitments And Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENCIES

NOTE G — COMMITMENTS AND CONTINGENCIES

Lease Agreements

The Company leases warehousing, executive and sales facilities, retail stores, equipment and vehicles under operating leases with options to renew at varying terms. Leases with provisions for increasing rents have been accounted for on a straight-line basis over the life of the lease.

Certain leases provide for contingent rents, which are determined as a percentage of gross sales. The Company records a contingent rent liability in accrued expenses on the Consolidated Balance Sheets and the corresponding rent expense on the Consolidated Statements of Income and Comprehensive Income when management determines that achieving the specified levels during the fiscal year is probable.

The following schedule sets forth the future minimum rental payments for operating leases having non-cancelable lease periods in excess of one year at January 31, 2015:

Year Ending January 31,	Amount
	(In thousands)
2016	$	66,108
2017		59,622
2018		53,095
2019		47,703
2020		43,536
Thereafter		155,516
	$	425,580

Rent expense on the above operating leases for the years ended January 31, 2015, 2014 and 2013 was approximately $72.6 million, $48.3 million and $31.6 million, respectively. 

License Agreements

The Company has entered into license agreements that provide for royalty payments ranging from 4% to 19% of net sales of licensed products as set forth in the agreements. The Company incurred royalty expense (included in cost of goods sold) of approximately $109.6 million, $101.5 million and $85.2 million for the years ended January 31, 2015, 2014 and 2013, respectively. Contractual advertising expense, which is normally based on a percentage of net sales associated with certain license agreements (included in selling, general and administrative expense), was $32.1 million, $30.0 million and $24.9 million for the years ended January 31, 2015, 2014 and 2013, respectively. Based on minimum net sales requirements, future minimum royalty and advertising payments required under these agreements are:

Year Ending January 31,	Amount
	(In thousands)
2016	$	91,453
2017		65,110
2018		57,653
2019		50,129
2020		43,026
Thereafter		157,998
	$	465,369