Annual report pursuant to Section 13 and 15(d)

Commitments and contingencies

v3.19.1
Commitments and contingencies
12 Months Ended
Feb. 02, 2019
Commitments and contingencies  
Commitments and contingencies

 

8.   Commitments and contingencies

Leases – The Company leases retail stores, distribution centers, corporate offices, and certain equipment under operating leases with various expiration dates through 2032. Store leases generally have initial lease terms of 10 years and include renewal options under substantially the same terms and conditions as the original leases. Total rent expense under operating leases was $262,275,  $241,559, and $202,942 in fiscal 2018,  2017 and 2016, respectively. As of February 2, 2019, future minimum lease payments under operating leases for the non-cancellable period are as follows:

 

 

 

 

 

 

Operating

 

 

Leases

Fiscal year

    

(In thousands)

2019

 

$

334,508

2020

 

 

334,238

2021

 

 

318,041

2022

 

 

294,412

2023

 

 

250,876

2024 and thereafter

 

 

753,337

Total minimum lease payments

 

$

2,285,412

 

Included in the operating lease schedule above is $219,897 of minimum lease payments for stores that are expected to open in future periods.

Contractual obligations – As of February 2, 2019, the Company had obligations of $11,175 related to commitments made to a third party for products and services for a new fast fulfillment center opening in fiscal 2020. Payments under this commitment were $1,792 in fiscal 2018. In addition, the Company has entered into various non-cancelable advertising and other goods and service contracts. A majority of these agreements expire over one year and the obligations under these agreements were $18,033 as of February 2, 2019.

General litigation – The Company is involved in various legal proceedings that are incidental to the conduct of the business including both class action and single plaintiff litigation. In the opinion of management, the amount of any liability with respect to these proceedings, either individually or in the aggregate, will not have a material adverse effect on the Company’s consolidated financial position, results of operations or cash flows.