Note 9 - Commitments and Contingencies

12 Months Ended

Jan. 02, 2016

Commitments and Contingencies Disclosure [Text Block]

(9)	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 $45.3 million, $46.7 million and $46.5 million, and contingent rents were $1.2 million, $1.8 million and $1.3 million for

2015, 2014 and 2013

, respectively.

Future minimum lease payments at

January 2, 2016

, were as follows (in thousands):

2016	$	39,005
2017		30,884
2018		24,695
2019		21,722
2020		21,033
Subsequent to 2020		64,749
Total	$	202,088

(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 limitation periods. If one or more of these examinations has an unfavorable resolution, it is possible that the results of operations, liquidity or financial position of the Company could be materially affected in any particular period. 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. Assessments made by the United Kingdom customs authority in 2012 have been appealed by the Company, which has paid $3.8 million in disputed duty, strictly under protest, pending the outcome of the continuing dispute, and this is included in receivables in the DTC segment. The United Kingdom customs authority is contesting the Company's appeal. In the 2015 fourth quarter, the Company further evaluated its position and, based on the latest facts available in the dispute, recorded its best estimate of probable loss as a provision against the related receivable. However, the Company continues to vigorously dispute the customs audit findings and believes that the outcome of this dispute will not have a material adverse impact on the results of operations, liquidity or financial position of the Company.