COMMITMENTS AND CONTINGENCIES

Commitments

a) Programming Rights Agreements and Other Commitments

At December 31, 2015, we had total commitments of US$ $144.9 million (December 31, 2014: US$ 177.8 million) in respect of future programming, including contracts signed with license periods starting after the balance sheet date. In addition, we have digital transmission obligations, future minimum operating lease payments for non-cancellable operating leases with remaining terms in excess of one year (net of amounts to be recharged to third parties) and other commitments as follows:



	Programming purchase obligations		Digital transmission obligations		Operating leases		Capital expenditures
2016	$	74,226	$	18,322	$	3,473	$	420
2017	35,123		6,691		2,221		—
2018	22,882		3,200		1,617		—
2019	8,812		10,374		746		—
2020	1,327		312		330		—
2021 and thereafter	2,525		566		1,149		—
Total	$	144,895	$	39,465	$	9,536	$	420

For the years ended December 31, 2015, 2014 and 2013, we incurred aggregate rent expense on all facilities of US$ 7.8 million, US$ 10.0 million and US$ 12.6 million, respectively.

b) Factoring of Trade Receivables

CET 21 has a CZK 825.0 million (approximately US$ 33.2 million) factoring framework agreement with FCS. Under this facility up to CZK 825.0 million (approximately US$ 33.2 million) may be factored on a recourse or non-recourse basis. As at December 31, 2015, there were CZK 478.9 million (approximately US$ 19.3 million) (December 31, 2014: CZK 509.3 million, approximately US$ 20.5 million based on December 31, 2015 rates), of receivables subject to the factoring framework agreement.

In the fourth quarter of 2015, Pro TV entered into a RON 20.0 million (approximately US$ 4.8 million) factoring framework agreement with UniCredit Bank S.A. Under this facility up to RON 20.0 million (approximately US$ 4.8 million) may be factored on a non-recourse basis. As at December 31, 2015, there were RON 19.3 million (approximately US$ 4.7 million) of receivables subject to the factoring framework agreement.

c) Call option

Top Tone Holdings has exercised its right to acquire additional equity in CME Bulgaria, however the closing of this transaction has not yet occurred because the purchaser financing is still pending. If consummated, we would own 90.0% of our Bulgaria operations.

Contingencies

a) Litigation

We are from time to time party to legal proceedings, arbitrations and regulatory proceedings arising in the normal course of our business operations, including the proceeding described below. We evaluate, on a quarterly basis, developments in such matters and provide accruals for such matters, as appropriate. In making such decisions, we consider the degree of probability of an unfavorable outcome and our ability to make a reasonable estimate of the amount of a loss. An unfavorable outcome in any such proceedings, if material, could have an adverse effect on our business or consolidated financial statements.

b) Restrictions on dividends from Consolidated Subsidiaries and Unconsolidated Affiliates

Corporate law in the Central and Eastern European countries in which we have operations stipulates generally that dividends may be declared by shareholders, out of yearly profits, subject to the maintenance of registered capital and required reserves after the recovery of accumulated losses. The reserve requirement restriction generally provides that before dividends may be distributed, a portion of annual net profits (typically 5.0%) be allocated to a reserve, which reserve is capped at a proportion of the registered capital of a company (ranging from 5.0% to 25.0%). The restricted net assets of our consolidated subsidiaries and equity in earnings of investments accounted for under the equity method together are less than 25.0% of consolidated net assets.

c) Romanian Tax Audits

As at December 31, 2014, certain of our subsidiaries in Romania were subject to audits by the Romanian tax authorities. The audits focused on a range of matters, including corporate income taxes, payroll tax liabilities and value added tax (“VAT”). In connection with these audits, we provided US$ 12.0 million in the fourth quarter of 2014 and an additional US$ 18.2 million in the first quarter of 2015 relating to the potential requalification of activities of certain persons engaged by our subsidiaries. During the third quarter of 2015, we released the reserves related to the Romanian tax audits.

Studiourile Media Pro SA ("MPS") and Media Pro Entertainment Romania SA ("MPE"), were sold on an as-is basis on October 16, 2015 and the buyer assumed all liabilities associated with the companies, including any potential assessments as a result of these tax audits.