Commitments and Contingencies

12 Months Ended

Feb. 01, 2014

Commitments and Contingencies.

Commitments and Contingencies

7.     Commitments and Contingencies

• Operating Leases

        Cherokee leases the current office building under an operating lease expiring on November 1, 2016. The Company also has one five-year option to extend this lease for a total of 5 additional years, to November 1, 2021. The Company amended this lease to include an expansion premises within the same location as the current office building. The amendment expires November 1, 2016.

        The Company also leases an office in Minnesota under an operating lease expiring on March 15, 2018. There is one three-year option to extend this lease for a total of 3 additional years, to March 15, 2021. The Company also leases copiers and printers for these two offices under operating leases. The Company also leases an office in Huntington Beach under an operating lease expiring on June 30, 2014. The future minimum non-cancelable lease payments are as follows:

(amounts in thousands)	Operating Leases
Fiscal 2015		410
Fiscal 2016		397
Fiscal 2017		277
Fiscal 2018		28
Fiscal 2019 and thereafter		2
Total future minimum lease payments		1,114

        Total rent expense was approximately $300 for Fiscal 2014, $300 for Fiscal 2013 and $200 for Fiscal 2012. Total operating lease expenses, excluding rent, was approximately $100 for Fiscal 2014, $100 for Fiscal 2013 and $90 for Fiscal 2012, respectively.

• Trademark Indemnities

        Cherokee indemnifies certain customers against liability arising from third-party claims of intellectual property rights infringement related to the Company's trademarks. These indemnities appear in the licensing agreements with the Company's customers, are not limited in amount or duration and generally survive the expiration of the contracts. Given that the amount of any potential liabilities related to such indemnities cannot be determined until an infringement claim has been made, the Company is unable to determine the maximum amount of losses that it could incur related to such indemnifications.

• Litigation Reserves

        Estimated amounts for claims that are probable and can be reasonably estimated are recorded as liabilities in the consolidated balance sheets.

        The likelihood of a material change in these estimated reserves would be dependent on new claims as they may arise and the expected probable favorable or unfavorable outcome of each claim. As additional information becomes available, the Company assesses the potential liability related to new claims and existing claims and revises estimates as appropriate. As new claims arise or existing claims evolve, such revisions in estimates of the potential liability could materially impact the results of operations and financial position. The Company may also be involved in various other claims and other matters incidental to the Company's business, the resolution of which is not expected to have a material adverse effect on the Company's financial position or results of operations. No material amounts were accrued as of February 1, 2014 or February 2, 2013 related to any of the Company's legal proceedings.