COMMITMENTS AND CONTINGENCIES

Rental Commitments and Contingencies

The Company rents retail stores, offices and warehouses, 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 as of the date shown were as follows:



	December 31, 2017
	(in thousands)
2018	$	53,329
2019	36,816
2020	28,547
2021	22,843
2022	16,650
Thereafter	52,326
Total minimum lease payments	$	210,511

Minimum sublease rental income of $0.2 million under non-cancelable subleases, and contingent rentals, which may be paid under certain retail store 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:



	Year Ended December 31,
	2017			2016			2015
	(in thousands)
Minimum rentals⁽¹⁾	$	78,961		$	88,182		$	96,579
Contingent rentals	14,294			14,596			14,929
Less: Sublease rentals	(182		)	(187		)	(322		)
Total rent expense	$	93,073		$	102,591		$	111,186

⁽¹⁾ Minimum rentals include all lease payments as well as fixed and variable common area maintenance, parking, and storage fees, which were approximately $10.0 million, $10.2 million, and $9.1 million during the years ended December 31, 2017, 2016, and 2015, respectively.

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 $4.2 million as of December 31, 2017).

As of December 31, 2017 and 2016, the Company had purchase commitments with other third-party manufacturers, primarily for materials and supplies used in the manufacture of the Company’s products, for an aggregate of $122.7 million and $125.9 million, respectively.

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 such payments in the accompanying 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.