NOTE G — COMMITMENTS AND CONTINGENCIES

Lease Agreements

The Company leases warehousing, executive and sales facilities, retail stores, equipment and vehicles under operating leases with options to renew at varying terms. Leases with provisions for increasing rents have been accounted for on a straight-line basis over the life of the lease.

Certain leases provide for contingent rents, which are determined as a percentage of gross sales. The Company records a contingent rent liability in accrued expenses on the Consolidated Balance Sheets and the corresponding rent expense on the Consolidated Statements of Income when management determines that achieving the specified levels during the fiscal year is probable.

The following schedule sets forth the future minimum rental payments for operating leases having non-cancelable lease periods in excess of one year at January 31, 2014:

Year Ending January 31,	Amount
	(In thousands)
2015		$	58,213
2016			51,620
2017			43,080
2018			35,012
2019			29,179
Thereafter			103,745
		$	320,849

Rent expense on the above operating leases for the years ended January 31, 2014, 2013 and 2012 was approximately $48.3 million, $31.6 million and $25.9 million, respectively.

License Agreements

The Company has entered into license agreements that provide for royalty payments ranging from 4% to 19% of net sales of licensed products as set forth in the agreements. The Company incurred royalty expense (included in cost of goods sold) of approximately $101.5 million, $85.2 million and $68.7 million for the years ended January 31, 2014, 2013 and 2012, respectively. Contractual advertising expense, which is normally based on a percentage of net sales associated with certain license agreements (included in selling, general and administrative expense), was $30.0 million, $24.9 million and $22.9 million for the years ended January 31, 2014, 2013 and 2012, respectively. Based on minimum net sales requirements, future minimum royalty and advertising payments required under these agreements are:

Year Ending January 31,	Amount
	(In thousands)
2015		$	90,951
2016			64,016
2017			61,091
2018			61,299
2019			58,924
Thereafter			198,687
		$	534,968