(11)

Commitments

Leases

The Company leases its office and warehouse facilities under operating leases which are subject to various step rent provisions, rent concessions and escalation clauses expiring at various dates through 2023. Escalation clauses are not material and have been excluded from minimum future annual rental payments. Rental expense, which is calculated on a straight-line basis, amounted to $9.9 million, $10.1 million and $10.8 million in 2015, 2014 and 2013, respectively.

Minimum future annual rental payments are as follows:

2016	$	5,512
2017		5,285
2018		4,913
2019		4,470
2020		3,765
Thereafter		8,743
	$	32,688

License Agreements

The Company is party to a number of license and other agreements for the use of trademarks and rights in connection with the manufacture and sale of its products expiring at various dates through 2032. In connection with certain of these license agreements, the Company is subject to minimum annual advertising commitments, minimum annual royalties and other commitments as follows:

2016	$	101,067
2017		114,136
2018		109,995
2019		113,091
2020		114,100
Thereafter		353,070
	$	905,459

Future advertising commitments are estimated based on planned future sales for the license terms that were in effect at December 31, 2015, without consideration for potential renewal periods. The above figures do not reflect the fact that our distributors share our advertising obligations. Royalty expense included in selling, general, and administrative expenses, aggregated $33.8 million, $35.6 million and $40.5 million, in 2015, 2014 and 2013, respectively, and represented 7.2%, 7.1% and 7.2% of net sales for the years ended December 31, 2015, 2014 and 2013.