XML 67 R18.htm IDEA: XBRL DOCUMENT v2.4.0.6
Note 11 - Commitments and Contingencies
 12 Months Ended
Dec. 29, 2012
Commitments and Contingencies Disclosure [Text Block]
(11)
Commitments and Contingencies

 
(a)
Operating Leases

The Company leases its retail stores and corporate offices under agreements which expire at various dates through 2030.  The majority of leases contain provisions for base rent plus contingent payments based on defined sales as well as scheduled escalations.  Total office and retail store base rent expense was $48.2 million, $48.2 million and $47.7 million, and contingent rents were $1.2 million, $1.2 million and $1.0 million for 2012, 2011 and 2010, respectively.

Future minimum lease payments at December 29, 2012, were as follows (in thousands):

2013
  $ 45,264  
2014
    39,229  
2015
    33,587  
2016
    25,425  
2017
    18,518  
Subsequent to 2017
    43,652  
    $ 205,675  

 
(b)
Litigation

In the normal course of business, the Company is subject to certain claims or lawsuits.  Except as noted below, management is not aware of any claims or lawsuits that may have a material adverse effect on the consolidated financial position or results of operations of the Company.

In the normal course of business, the Company is subject to regular examination by various taxing authorities for years not closed by the statute of limitations, including an ongoing customs audit in the United Kingdom in which the Company is contesting audit findings.  The Company accrues a liability for this type of contingency when it believes that it is both probable that a liability has been incurred and that it can reasonably estimate the amount of the loss.  In October 2012, the Company received notification from the customs authority that it intends to assess approximately £1.2 million, or US$2.0 million at the exchange rate at the end of the quarter, for unpaid taxes, penalties and interest.  The Company intends to appeal this determination and continues to believe that the ultimate outcome of these matters will not have a material adverse impact on the results of operations, liquidity or financial position of the Company.  However, if one or more of these examinations has an unfavorable resolution, it is possible that the results of operation, liquidity or financial position of the Company could be materially affected in any particular period.