13. Commitments and Contingencies License Agreements. The Company has various license agreements to market watches bearing certain trademarks or patents owned by various third-parties. In accordance with these agreements, the Company incurred royalty expense of approximately $ 160.2 million, $ 109.4 million and $ 73.9 million in fiscal years 2011, 2010 and 2009, respectively. These amounts are included in the Company's cost of sales or if advertising related, selling and distribution expenses. At fiscal year end 2011, certain of the Company's significant license agreements had expiration dates between fiscal years 2013 and 2017. These license agreements require the Company to pay royalties ranging from 4 % to 20 % of defined net sales. Future minimum royalty commitments under these license agreements, by fiscal year, are as follows (in thousands): 2012 $ 121,233 2013 90,666 2014 35,883 2015 24,140 2016 3,714 Thereafter 3,990 $ 279,626 Leases. The Company leases its retail and outlet store facilities as well as certain of its office and warehouse facilities and equipment under non-cancelable operating leases and capital leases. Most of the retail and outlet store leases provide for contingent rental payments based on operating results and require the payment of taxes, insurance and other costs applicable to the property. Generally, these leases include renewal options for various periods at stipulated rates. Rent expense under these agreements was approximately $ 107.3 million, $ 88.6 million and $ 77.6 million for fiscal years 2011, 2010 and 2009, respectively. Contingent rent expense was approximately $ 9.0 million, $ 3.8 million and $ 1.8 million for fiscal years 2011, 2010 and 2009, respectively. Future minimum rental commitments under non-cancelable leases, by fiscal year, are as follows (in thousands): Operating Leases Capital Leases 2012 $ 103,177 $ 701 2013 98,167 1,309 2014 87,513 1,163 2015 79,096 1,080 2016 72,323 1,078 Thereafter 198,581 5,616 $ 638,857 $ 10,947 Less amounts representing interest (1,11