Commitments, contingencies and guarantees

The following table summarizes the Company’s contractual commitments as of December 31, 2015:



(in thousands)	Total		2016		2017		2018		2019		2020		Thereafter
Operating leases⁽¹⁾	$	152,237	$	16,597	$	15,783	$	19,582	$	13,151	$	16,602	$	70,522
Sponsorship commitments⁽²⁾	19,186		9,889		3,986		2,591		2,720		—		—
Other contractual commitments⁽³⁾	4,574		3,153		1,421		—		—		—		—
Capital equipment purchase commitments⁽⁴⁾	5,086		5,086		—		—		—		—		—
Total contractual cash obligations	$	181,083	$	34,725	$	21,190	$	22,173	$	15,871	$	16,602	$	70,522


(1)	The Company leases its facilities under long-term operating leases, which expire at various dates through 2027.


(2)	The Company sponsors events, resorts and athletes as part of its marketing efforts. In many cases, the Company enters into multi-year agreements with event organizers, resorts and athletes.


(3)	The Company purchases software licenses related to its financial and IT systems which require payments over multiple years.


(4)	The Company enters into contracts to acquire equipment for tooling and molds as part of its manufacturing operations. In addition, the Company incurs purchase commitments related to the manufacturing of its point-of-purchase (POP) displays by third parties.

Rent expense was $12.2 million, $7.3 million and $3.9 million in 2015, 2014 and 2013, respectively.

Legal proceedings

From time to time, the Company is involved in legal proceedings in the ordinary course of business. The Company believes that the outcome of any existing litigation, either individually or in the aggregate, will not have a material impact on the results of operations, financial condition or cash flows of the Company.

Indemnifications

In the normal course of business, the Company enters into agreements that contain a variety of representations and warranties and provide for general indemnification. The Company’s exposure under these agreements is unknown because it involves claims that may be made against the Company in the future, but have not yet been made. It is not possible to determine the maximum potential amount under these indemnification agreements due to the Company’s limited history with indemnification claims and the unique facts and circumstances involved in each particular agreement. As of December 31, 2015, the Company has not paid any claims or been required to defend any action related to its indemnification obligations. However, the Company may record charges in the future as a result of these indemnification obligations.

Product warranty

The following table summarizes the warranty liability activity:



	Year ended December 31,
(in thousands)	2015			2014			2013
Beginning balances	$	6,405		$	3,870		$	1,937
Charged to cost of revenue	25,377			10,268			7,380
Settlements of warranty claims	(20,926		)	(7,733		)	(5,447)
Ending balances	$	10,856		$	6,405		$	3,870

At December 31, 2015, $10.4 million of the warranty liability was recorded as an element of accrued liabilities and $0.5 million was recorded as an element of other long-term liabilities. As of December 31, 2014, $6.0 million of the warranty liability was recorded as an element of accrued liabilities and $0.4 million was recorded as an element of other long-term liabilities.