15. 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 year term, with some providing for a two 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 ended December 31: 2012 $ 848 2013 167 2014 138 2015 7 Total minimum sponsorship payments $ 1,160 The Company leases office space in Park City, Utah under an operating lease expiring in 2013. The Company also leases office space in Shenzen, China, San Francisco, California and San Clemente, California with leases expiring in 2013, 2016 and 2016, respectively. Future minimum payments under the operating lease obligations are (in thousands): Year ended December 31: 2012 $ 936 2013 756 2014 602 2015 520 2016 279 Total minimum lease payments $ 3,093 Rent expense for the years ended December 31, 2011, 2010 and 2009 totaled $829,000, $757,000 and $652,000, respectively. On November 23, 2010, Monster filed a lawsuit in Utah state court against the Company and one of our newly hired employees alleging, among other things, misappropriation of trade secrets and unfair competition. On February 15, 2012, the parties reached a full settlement. In connection with the settlement, Skullcandy recorded legal and settlement expenses of $2,031,000 in 2011 in selling, general and administrative expenses in the consolidated statements. The Company is subject to various claims, complaints and legal actions in the normal course of business from time to time. The Company does not believe it has any currently pending litigation of which the outcome will have a material adverse effect on its oper