Urban Outfitters 2012 Annual Report Download - page 81

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Table of Contents
URBAN OUTFITTERS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(in thousands, except share and per share data)
Amounts noted above include commitments for 36 executed leases for stores not opened as of January 31, 2012. The majority of our leases allow for
renewal options between five and ten years upon expiration of the initial lease term. The store leases generally provide for payment of direct operating costs
including real estate taxes. Certain store leases provide for contingent rentals when sales exceed specified levels. Additionally, the Company has entered into
store leases that require a percentage of total sales to be paid to landlords in lieu of minimum rent.
Rent expense consisted of the following:
Fiscal Year Ended January 31,
2012 2011 2010
Minimum and percentage rentals $ 165,901 $ 143,919 $ 125,651
Contingent rentals 5,403 5,836 3,327
Total $ 171,304 $ 149,755 $ 128,978
The Company also has commitments for un-fulfilled purchase orders for merchandise ordered from our vendors in the normal course of business, which
are liquidated within 12 months, of $315,890. The majority of the Company's merchandise commitments are cancellable with no or limited recourse available
to the vendor until merchandise shipping date. The Company also has commitments related to contracts with construction contractors, fully liquidated upon
the completion of construction, which is typically within 12 months, of $16,292.
Benefit Plan
Full and part-time U.S. based employees who are at least 18 years of age are eligible after three months of employment to participate in the Urban
Outfitters 401(k) Savings Plan (the "Plan"). Under the Plan, employees can defer 1% to 25% of compensation as defined. The Company makes matching
contributions in cash of $0.25 per employee contribution dollar on the first 6% of the employee contribution. The employees' contribution is 100% vested
while the Company's matching contribution vests at 20% per year of employee service. The Company's contributions were $1,365, $1,308 and $1,171 for
fiscal years 2012, 2011 and 2010, respectively.
Contingencies
The Company is party to various legal proceedings arising from normal business activities. Management believes that the ultimate resolution of these
matters will not have a material adverse effect on the Company's financial position, results of operations or cash flows.
13. Related Party Transactions
Drinker Biddle & Reath LLP ("DBR"), a law firm, provided general legal services to the Company. Fees paid to DBR during fiscal 2012, 2011 and
2010 were $2,509, $2,707 and $1,732,
F-30