(

)

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

$45.9

million,

$45.0

million and

$3.7

million in fiscal

2018,

2017

and the

five

weeks ended

February 3, 2018,

respectively. Contingent rent expense was

$1.5

million,

$1.2

million and less than

$0.1

million in fiscal

2018,

2017

and the

five

weeks ended

February 3, 2018,

respectively.

Future minimum lease payments at

February 2, 2019,

were as follows (in thousands):

2019	$	41,800
2020		35,192
2021		31,940
2022		29,265
2023		24,961
Subsequent to 2023		49,782
Total	$	212,940

(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 U.K. 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 U.K. 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

February 2, 2019,

the Company had a gross receivable balance of

$3.9

million and a reserve of

$3.1

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.