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 of June 30, 2018
	(in thousands)
2018 (remainder of year)	$	24,955
2019	36,870
2020	29,706
2021	24,013
2022	17,404
Thereafter	39,581
Total minimum lease payments	$	172,529

Minimum sublease rental income of $0.2 million under non-cancelable subleases, and contingent rentals are excluded from the commitment schedule.

Rent expense under operating leases was:



	Three Months Ended June 30,						Six Months Ended June 30,
	2018			2017			2018			2017
	(in thousands)
Minimum rentals⁽¹⁾	$	17,565		$	20,403		$	35,844		$	41,188
Contingent rentals	5,535			5,562			7,695			7,822
Less: Sublease rentals	(33		)	(52		)	(73		)	(89		)
Total rent expense	$	23,067		$	25,913		$	43,466		$	48,921

⁽¹⁾ Minimum rentals include all lease payments as well as fixed and variable common area maintenance, parking, and storage fees, which were approximately $2.4 million and $2.8 million for the three months ended June 30, 2018 and 2017, respectively, and $4.8 million and $5.7 million for the six months ended June 30, 2018 and 2017, respectively.

Purchase Commitments

As of June 30, 2018, the Company had purchase commitments to third-party manufacturers, primarily for materials and supplies used in the manufacture of the Company’s products, for an aggregate of $80.3 million.

Other

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.

During its normal course of business, the Company may make certain indemnities, commitments, and guarantees under which it may be required to make payments. 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 14 — Legal Proceedings for further details regarding potential loss contingencies related to government tax audits and other current legal proceedings.