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COMMITMENTS, CONTINGENCIES AND OTHER MATTERS | 12 Months Ended
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Dec. 31, 2013
COMMITMENTS, CONTINGENCIES AND OTHER MATTERS [Abstract] |
COMMITMENTS, CONTINGENCIES AND OTHER MATTERS |
11. | COMMITMENTS, CONTINGENCIES AND OTHER MATTERS
Leases - The Company is obligated under operating lease agreements for the rental of certain office and warehouse facilities and equipment which expire at various dates through July 2030. The Company currently leases its headquarters office/warehouse facility in New York from an entity owned by the Company’s three principal shareholders and senior executive officers. The Company believes that these payments were no higher than would be paid to an unrelated lessor for comparable space. The Company also acquires certain computer, communications equipment, and machinery and equipment pursuant to capital lease obligations. At December 31, 2013, the future minimum annual lease payments for capital leases and related and third-party operating leases were as follows (in millions):
|  | Capital Leases |  |  | Operating Leases |  |  | Total |
2014 |  |  | 2.9 |  |  | $ | 27.6 |  |  | $ | 30.5 |
2015 |  |  | 2.5 |  |  |  | 26.8 |  |  |  | 29.3 |
2016 |  |  | 1.0 |  |  |  | 24.2 |  |  |  | 25.2 |
2017 |  |  | 0.1 |  |  |  | 24.7 |  |  |  | 24.8 |
2018 |  |  |  |  |  |  | 20.3 |  |  |  | 20.3 |
2019-2023 |  |  |  |  |  |  | 51.1 |  |  |  | 51.1 |
2024-2028 |  |  |  |  |  |  | 24.6 |  |  |  | 24.6 |
Thereafter |  |  |  |  |  |  | 14.8 |  |  |  | 14.8 |
Total minimum lease payments |  |  | 6.5 |  |  |  | 214.1 |  |  |  | 220.6 |
Less: sublease rental income |  |  | - |  |  |  | 2.9 |  |  |  | 2.9 |
Lease obligation net of subleases |  |  | 6.5 |  |  | $ | 211.2 |  |  |  | 217.7 |
Less: amount representing interest |  |  | 1.1 |  |  |  |  |  |  |  |  |
Present value of minimum capital lease payments (including current portion of $2.5) |  | $ | 5.4 |  |  |  |  |  |  |  |  |
Annual rent expense aggregated approximately $34.6 million, $33.4 million and $30.8 million in 2013, 2012 and 2011, respectively. Included in rent expense was $0.9 million in 2013, 2012 and 2011, to related parties. Rent expense is net of sublease income of $0.1 million for 2013, and $0.2 million for 2012 and 2011, respectively. Other Matters The Company and its subsidiaries are involved in various lawsuits, claims, investigations and proceedings including commercial, employment, consumer, personal injury and health and safety law matters, which are being handled and defended in the ordinary course of business. In addition, the Company is subject to various assertions, claims, proceedings and requests for indemnification concerning intellectual property, including patent infringement suits involving technologies that are incorporated in a broad spectrum of products the Company sells. The Company is also audited by (or has initiated voluntary disclosure agreements with) numerous governmental agencies in various countries, including U.S. Federal and state authorities, concerning potential income tax, sales tax and unclaimed property liabilities. These matters are in various stages of investigation, negotiation and/or litigation, and are being vigorously defended. In this regard, the state of Pennsylvania has claimed that certain of the Company’s consumer electronics e-commerce sales are subject to sales tax in Pennsylvania; the Company is defending this matter and believes it has strong defenses. The Company does not expect, based on currently available information, that the outcome in any of these matters, individually or collectively, will have a material adverse effect on its financial condition or results of operations although the ultimate outcome is inherently unpredictable. Therefore, judgments could be rendered or settlements entered, that could adversely affect the Company’s operating results or cash flows in a particular period. The Company routinely assesses all of its litigation and threatened litigation as to the probability of ultimately incurring a liability, and records its best estimate of the ultimate loss in situations where it assesses the likelihood of loss as probable and estimable. In this regard, the Company establishes accrual estimates for its various lawsuits, claims, investigations and proceedings when it is probable that an asset has been impaired or a liability incurred at the date of the financial statements and the loss can be reasonably estimated. At December 31, 2013 the Company had established accruals for certain of its various lawsuits, claims, investigations and proceedings based upon estimates of the most likely outcome in a range of loss or the minimum amounts in a range of loss if no amount within a range is a more likely estimate. The Company does not believe that at December 31, 2013 any reasonably possible losses in excess of the amounts accrued would be material to the financial statements.

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