12. Commitments and Contingencies
(a) Operating Leases
As of February 2, 2013, the Company was obligated under various long-term operating leases, which require minimum annual rent for retail and factory stores, warehouses, office space and equipment.
These operating leases expire on varying dates through 2025. At February 2, 2013 aggregate minimum rent is as follows:
|
Fiscal year |
Amount | |||
|
2013 |
$ | 134,379 | ||
|
2014 |
$ | 133,839 | ||
|
2015 |
$ | 131,344 | ||
|
2016 |
$ | 125,971 | ||
|
2017 |
$ | 116,411 | ||
|
Thereafter |
$ | 368,121 | ||
Certain of these leases include renewal options and escalation clauses and provide for contingent rent based upon sales and require the lessee to pay taxes, insurance and other occupancy costs.
Rent expense was $132,363 in fiscal 2012, $101,766 in the Successor period, $9,534 in the Predecessor period and $93,619 in fiscal 2010 (including contingent rent, based on store sales, of $8,553, $5,000, $251 and $5,306, respectively).
(b) Employment Agreements
The Company is party to employment agreements with certain executives, which provide for compensation and certain other benefits. The agreements also provide for severance payments under certain circumstances.
(c) Litigation
The Company is subject to various legal proceedings and claims that arise in the ordinary conduct of its business. Although the outcome of these claims cannot be predicted with certainty, management does not believe that it is reasonably possible that resolution of these legal proceedings will result in unaccrued losses that would be material.