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NOTE 17 - COMMITMENTS, CONTINGENCIES AND OFF BALANCE SHEET ARRANGEMENTS
12 Months Ended
Jan. 29, 2017
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies Disclosure [Text Block]
NOTE 17 – COMMITMENTS, CONTINGENCIES AND OFF BALANCE SHEET ARRANGEMENTS

Customs Penalty

In September 2009, U.S. Customs and Border Patrol (“CBP”) issued an audit report asserting that we had not paid all required antidumping duties due with respect to certain bedroom furniture we imported from China. In February 2015, CBP assessed a civil penalty of approximately $2.1 million and unpaid duties of approximately $500,000 on the matter.  We actively disputed the amounts and in March 2017, we were notified by CBP that it had reduced the civil penalty and unpaid duties to $357,000, conditioned on timely payment of these modified duties and penalties. We paid these amounts in March 2017 and consider this matter closed.

Commitments and Off Balance Sheet Arrangements

We lease warehousing facilities, showroom space and office equipment under leases expiring over the next five years.  Rent expense was $7.7 million in fiscal 2017, $3.1 million in fiscal 2016, and $2.8 million in fiscal 2015. Future minimum annual commitments under leases and operating agreements are $7.6 million in fiscal 2018, $6.5 million in fiscal 2019, $6.4 million in fiscal 2020, $6.2 million in fiscal 2021 and $4.7 million in fiscal 2022. We sublease space in our Redlands, CA facility. Total amounts due to us under the sublease are $563,000 in fiscal 2018, $575,000 in fiscal 2019, $586,000 in fiscal 2020, $598,000 in fiscal 2021 and $101,000 in fiscal 2022.

We had letters of credit outstanding totaling $1.5 million on January 29, 2017.  We utilize letters of credit to collateralize certain imported inventory purchases and certain insurance arrangements.

Substantially all of the cash value of our company owned life insurance is pledged as collateral for our secured term loan.

In the ordinary course of our business, we may become involved in legal proceedings involving contractual and employment relationships, product liability claims, intellectual property rights and a variety of other matters.  We do not believe that any pending legal proceedings will have a material impact on our financial position or results of operations.

Our business is subject to a number of significant risks and uncertainties, including our reliance on offshore sourcing, any of which can adversely affect our business, results of operations, financial condition or future prospects. For a discussion of risks and uncertainties that we face, see “Forward Looking Statements” beginning on page 2 of this report and Item 1A, “Risk Factors” beginning on page 8 of this report.