(

)

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

$45.0

million,

$44.5

million and

$45.3

million, and contingent rents were

$1.2

million,

$1.1

million and

$1.2

million for

2017,

2016

and

2015,

respectively.

Future minimum lease payments at

December 30, 2017,

were as follows (in thousands):

2018	$	40,849
2019		34,041
2020		31,723
2021		29,477
2022		27,738
Subsequent to 2022		70,068
Total	$	233,896

(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. 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

loss contingencies 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. Gain contingencies are recorded when the underlying uncertainty has been settled. Assessments made by the United Kingdom customs authority in

2012

have been appealed by the Company, which has paid the 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. The Company maintains a provision against the related receivable, based on a current evaluation of the collectability, using the latest facts available in the dispute. As of

December 30, 2017,

the Company had a gross receivable balance of

$3.7

million and a reserve of

$2.9

million, leaving a net receivable of

$0.8

million. 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.