
(4)	Commitments and Contingencies

Commitments

Leases

The Company leases property and equipment under non-cancelable operating leases. Certain retail store lease agreements provide for contingent rental payments if the store’s net sales exceed stated levels (percentage rents) and/or contain escalation clauses, which provide for increases in base rental payments for increases in future operating costs. Many of the Company’s leases provide for one or more renewal options for periods of five years. As of February 3, 2018, the Company’s operating lease agreements, including assumed extensions, which are generally those that take the lease to a ten-year term, expire through fiscal 2033.

The Company’s minimum rental commitments under operating lease agreements, including assumed extensions, as of February 3, 2018, are as follows (in thousands):



Fiscal Year	Retail stores		Corporate office, distribution centers and other		Total
2018	$	109,199	$	8,372	$	117,571
2019	113,168		9,469		122,637
2020	110,162		11,277		121,439
2021	103,539		11,362		114,901
2022	94,112		11,402		105,514
Thereafter	301,391		64,547		365,938
	$	831,571	$	116,429	$	948,000

Rent expense, including base and contingent rent under operating leases, was $98.2 million, $78.5 million and $66.0 million in fiscal 2017, fiscal 2016 and fiscal 2015, respectively. Contingent rents were $0.6 million, $0.5 million and $0.6 million in fiscal 2017, fiscal 2016 and fiscal 2015, respectively.

From February 4, 2018 to March 22, 2018, the Company committed to 15 new store leases with terms of 10 years that have future minimum lease payments of approximately $28.9 million.

Other contractual commitments

The Company has an executive severance plan that is applicable to certain key employees that provide for, among other things, salary, bonus, severance, and change-in-control provisions. The severance and change of control provisions under these agreements provide for additional payments upon employee separation of up to approximately $7.2 million.

As of February 3, 2018, the Company has other purchase commitments of approximately $4.9 million consisting of purchase agreements for materials that will be used in the construction of new stores.

Contingencies

Legal Matters

From time to time, the Company is involved in certain legal actions arising in the ordinary course of business. In management’s opinion, the outcome of such actions will not have a material adverse effect on the Company’s financial condition or results of operations.