13. Commitments and Contingencies The Company has contractual relationships with certain of its sponsored athletes, DJs, musicians and artists, whereby the Company compensates them for promoting its products or pays them a royalty on sales of their signature headphones. The contracts typically have a one-to three-year term. In addition to cash payments, the Company generally provides limited complimentary products for its sponsors use, and reimburses certain travel expenses incurred in conjunction with promoting the Company s products. Future minimum payments under the sponsorship agreements are (in thousands): Year ending December 31: 2013 $ 1,456 2014 1,107 2015 307 2016 31 Total minimum sponsorship payments $ 2,901 Future minimum payments under operating lease obligations are (in thousands): Year ending December 31: 2013 $ 1,558 2014 1,417 2015 1,034 2016 644 2017 146 Thereafter 11 Total minimum lease payments $ 4,810 Operating lease obligations primarily relate to the Company s lease of office space in several countries with various expiration dates through 2017. The terms of these leases often include periods of free rent, or rent holidays and increasing rental rates over time. The Company recognizes rent expense on a straight-line basis and has accrued for rent expense recorded but not paid. Rent expense for the years ended December 31, 2012, 2011 and 2010 totaled $1,908,000, $829,000 and $757,000, respectively. Other contractual obligations consist of warehouse distribution services with the Company s third party supply chain providers. Year ending December 31: 2013 $ 6,225 2014 6,719 2015 1,700 Total minimum other contractual obligations $ 14,644 The Company has fully cancellable purchase orders none of which extend beyond one year. In August 2012, Hitachi Metals, Ltd. and Hitachi Metals North Carolina, Ltd., together referred to as Hitachi, filed a complaint in the International Trade Commission, the ITC, entitled  Certain Sintered Rare Earth Magnets, Methods of Making Same and Products Containing the Sa