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Commitments
 12 Months Ended
Dec. 31, 2017
Commitments and Contingencies Disclosure [Abstract]  
Commitments
(12) 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 $11.2 million, $10.7 million and $9.9 million in 2017, 2016 and 2015, respectively. Minimum future annual rental payments are as follows:

  

2018     $ 5,835  
2019       4,565  
2020       3,571  
2021       3,594  
2022       3,020  
Thereafter       5,163  
           
      $ 25,748  

 

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:

 

2018     $ 136,345  
2019       151,209  
2020       160,391  
2021       168,161  
2022       153,894  
Thereafter       1,107,029  
           
      $ 1,877,029  

 

Future advertising commitments are estimated based on planned future sales for the license terms that were in effect at December 31, 2017, 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 $39.6 million, $37.8 million and $33.8 million, in 2017, 2016 and 2015, respectively, and represented 6.7%, 7.3% and 7.2% of net sales for the years ended December 31, 2017, 2016 and 2015, respectively.