Commitments And Contingencies

3 Months Ended

Mar. 31, 2017

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENCIES

Rental Commitments and Contingencies

The Company rents retail store, office and warehouse space, vehicles, and equipment under operating leases expiring at various dates through 2033. Rent expense for leases with escalations or rent holidays is recognized on a straight-line basis over the lease term beginning on the lease inception date. Certain leases also provide for contingent rents, which are generally determined as a percent of sales in excess of specified levels. A contingent rent liability is recognized together with the corresponding rent expense when specified levels have been achieved or when the Company determines that achieving the specified levels during the period is probable.

Future minimum lease payments under operating leases were as follows:



	March 31, 2017
	(in thousands)
2017 (remainder of year)	$	56,964
2018	65,734
2019	38,776
2020	27,173
2021	22,084
Thereafter	67,846
Total minimum lease payments	$	278,577

Minimum sublease rentals of $0.1 million under non-cancelable subleases and contingent rentals, which may be paid under certain retail leases on a basis of percentage of sales in excess of stipulated amounts, are excluded from the commitment schedule.

Rent expense under operating leases was as follows:



	Three Months Ended March 31,
	2017			2016
	(in thousands)
Minimum rentals ⁽¹⁾	$	20,786		$	22,456
Contingent rentals	2,260			2,129
Less: Sublease rentals	(37		)	(61		)
Total rent expense	$	23,009		$	24,524

_________________________________________________________________

⁽¹⁾ Minimum rentals include all lease payments as well as fixed and variable common area maintenance, parking, and storage fees, which were approximately $2.6 million and $2.5 million during the three months ended March 31, 2017 and 2016, respectively.



	Three Months Ended March 31,
	2017		2016
	(in thousands)
Selling, general & administrative expenses	$	20,090	$	21,722
Cost of goods sold	2,919		2,802
Total	$	23,009	$	24,524

Purchase Commitments

Under the terms of an annual supply agreement, the Company guarantees payment for certain third-party manufacturer purchases of raw materials used in the manufacture of its products, up to a maximum of €3.5 million (approximately $3.7 million as of March 31, 2017).

As of March 31, 2017 the Company had firm purchase commitments with other third-party manufacturers of $94.6 million.

Government Tax Audits

The Company is regularly subject to, and is currently undergoing, audits by various tax authorities in the United States and several foreign jurisdictions, including customs duties, import and other taxes for prior tax years. See Note 15 — Legal Proceedings for additional information.

Other

During its normal course of business, the Company may make certain indemnities, commitments and guarantees under which it may be required to make payments in relation to certain matters. The Company cannot determine a range of estimated future payments and has not recorded any liability for indemnities, commitments and guarantees in the accompanying condensed consolidated balance sheets.

See Note 15 — Legal Proceedings for further details regarding potential loss contingencies related to government tax audits and other current legal proceedings.