Mattel 2015 Annual Report Download - page 86

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82
expense was not material. The following table shows the future minimum obligations under lease commitments in effect at
December 31, 2015:
Capital
Leases
Operating
Leases
(In thousands)
2016 $ 294 $ 105,615
2017 294 78,691
2018 294 58,359
2019 294 45,490
2020 25 41,023
Thereafter — 112,531
$ 1,201 (a) $ 441,709
(a) Includes $0.2 million of imputed interest.
Rental expense under operating leases amounted to $114.9 million, $120.9 million, and $111.0 million for 2015, 2014,
and 2013, respectively, net of sublease income of $2.7 million, $2.6 million, and $0.9 million in 2015, 2014, and 2013,
respectively.
Commitments
In the normal course of business, Mattel enters into contractual arrangements to obtain and protect Mattel’s right to create
and market certain products and for future purchases of goods and services to ensure availability and timely delivery. Such
arrangements include royalty payments pursuant to licensing agreements and commitments primarily for future inventory
purchases. Certain of these commitments routinely contain provisions for guarantees or minimum expenditures during the term
of the contracts. Current and future commitments for guaranteed payments reflect Mattel’s focus on expanding its product lines
through alliances with businesses in other industries.
Licensing and similar agreements in effect at December 31, 2015 contain provisions for future minimum payments as
shown in the following table:
Licensing and
Similar
Agreements
(In thousands)
2016 $ 106,048
2017 84,452
2018 101,887
2019 79,269
2020 34,973
Thereafter 4,466
$ 411,095
Royalty expense for 2015, 2014, and 2013 was $264.6 million, $242.4 million, and $246.9 million, respectively.