Commitments and Contingencies

12 Months Ended

Dec. 31, 2012

Commitments And Contingencies [Abstract]

Commitments And Contingencies

13. COMMITMENTS AND CONTINGENCIES

We rent space for certain of our retail stores, offices, warehouses, vehicles, and equipment under operating leases expiring at various dates through 2023. Certain leases contain rent escalation clauses (step rents) that require additional rental amounts in the later years of the term. Rent expense for leases with step rents or rent holidays is recognized on a straight-line basis over the lease term. Deferred rent is included in the consolidated balance sheets in Accrued expenses and other current liabilities.

Future minimum annual rental commitments under non-cancelable operating leases for each of the five succeeding years as of December 31, 2012, are as follows (in thousands):

Fiscal years ending December 31,
2013	$	80,020
2014		63,798
2015		53,737
2016		44,189
2017		36,770
Thereafter		132,390
Total minimum lease payments(1)	$	410,904

⁽¹⁾Minimum payments have not been reduced by minimum sublease rentals of 0.5 million due in the future under non-cancelable subleases. They also do not include contingent rentals which may be paid under certain retail leases on a basis of percentage of salesin excess of stipulated amounts.

The following table summarizes the composition of rent expense under operating leases for the years ended December 31, 2012, 2011 and 2010 (in thousands):

		Fiscal years ending December 31,
		2012		2011		2010
Minimum rentals	$	84,671	$	68,675	$	57,989
Contingent rentals		16,519		13,639		9,847
Less: Sublease rentals		(619)		(573)		(553)
Total rent expense	$	100,571	$	81,741	$	67,283

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As of December 31, 2012, we had purchase commitments with certain third party manufacturers for $152.8 million, of which $5.9 million was for yet-to-be-received finished product where title passes to us upon receipt. As of December 31, 2011, we had purchase commitments with certain third party manufacturers for $138.2 million, of which $12.5 million was for yet-to-be-received finished product where title passes to us upon receipt and a commitment to re-purchase $4.3 million of raw materials from a certain third party manufacturer.

In February 2011, we renewed and amended our supply agreement with Finproject S.r.l. which provides us the exclusive right to purchase certain raw materials used to manufacture our products. The agreement also provides that we meet minimum purchase requirements to maintain exclusivity throughout the term of the agreement, which expires December 31, 2014. Historically, the minimum purchase requirements have not been onerous and we do not expect them to become onerous in the future. Depending on the material purchased, pricing is either based on contracted price or is subject to quarterly reviews and fluctuates based on order volume, currency fluctuations and raw material prices. Pursuant to the agreement, we guarantee the payment for certain third party manufacturer purchases of these raw materials up to a maximum potential amount of €3.5 million (approximately $4.6 million as of December 31, 2012), through a letter of credit that was issued to Finproject S.r.l.