Commitments, contingencies and guarantees

The following table summarizes the Company’s contractual commitments as of September 30, 2015:



(in thousands)	Total		1 year (remaining 3 months in 2015)		2-3 years (2016 and 2017)		4-5 years (2018 and 2019)		More than 5 years (beyond 2019)
Operating leases⁽¹⁾	$	61,003	$	4,121	$	30,489	$	18,979	$	7,414
Sponsorship commitments⁽²⁾	11,277		2,694		8,571		12		—
Other contractual commitments⁽³⁾	5,337		841		4,496		—		—
Capital equipment purchase commitments⁽⁴⁾	10,048		10,048		—		—		—
Total contractual cash obligations	$	87,665	$	17,704	$	43,556	$	18,991	$	7,414


(1)	The Company leases its facilities under long-term operating leases, which expire at various dates through 2023.


(2)	The Company sponsors sporting 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 and engages outside consultants to assist with upgrading or implementing 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 $3.3 million and $2.0 million for the three months ended September 30, 2015 and 2014, respectively, and $8.2 million and $5.2 million for the nine months ended September 30, 2015 and 2014, 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. As of September 30, 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:



	Three months ended						Nine months ended
(in thousands)	September 30, 2015			September 30, 2014			September 30, 2015			September 30, 2014
Beginning balances	$	8,719		$	4,678		$	6,405		$	3,870
Charged to cost of revenue	6,515			2,778			18,335			6,978
Settlements of warranty claims	(5,809		)	(2,073		)	(15,315		)	(5,465		)
Ending balances	$	9,425		$	5,383		$	9,425		$	5,383

At September 30, 2015, $9.1 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. 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.