Commitments and Contingencies

12 Months Ended

Jan. 30, 2016

7.Commitments and Contingencies

Operating Leases

As of January 30, 2016, Cherokee leased office space in Sherman Oaks, California, Huntington Beach, California, and Minneapolis, Minnesota, which leases expire November 2016, subject to an option to extend for five years, August 2019, subject to an option to extend for five years, and June 2018, subject to an option to extend for three years, respectively. Certain of these leases have been renewed or subleased subsequent to January 30, 2016. See Note 13 to these consolidated financial statements. The Company also leases office equipment for certain of these locations.

Future minimum non-cancelable lease payments as of January 30, 2016 are as follows:


	Operating
(amounts in thousands)	Leases
Fiscal 2017	$	329
Fiscal 2018		83
Fiscal 2019		53
Fiscal 2020		19
Fiscal 2021 and thereafter		—
Total future minimum lease payments	$	484

Total rent expense was $414 for Fiscal 2016, $387 for Fiscal 2015 and $323 for Fiscal 2014. Total operating lease expenses, excluding rent, was $95 for Fiscal 2016, $84 for Fiscal 2015 and $120 for Fiscal 2014.

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 a range of estimated 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 Company's 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 January 30, 2016 or January 31, 2015 related to any of the Company’s legal proceedings.