COMMITMENTS AND CONTINGENCIES

9 Months Ended

Sep. 30, 2016

(16) COMMITMENTS AND CONTINGENCIES

Contract commitments. At September 30, 2016, we have contractual commitments of approximately $23.0 million for the supply of services, labor and materials related to capital projects that currently are under development. We expect that these contractual commitments will be paid within the next twelve months.

Operating leases. We lease property and equipment under non‑cancelable operating leases that extend through August 2030. At September 30, 2016, future minimum lease payments under these non‑cancelable operating leases are as follows (in thousands):


Years ending December 31:
2016 (remainder of the year)	$	973
2017		4,033
2018		1,653
2019		1,640
2020		1,487
Thereafter		5,010
	$	14,796

Included in the above non‑cancelable operating lease commitments are amounts for property rentals that we have sublet under non‑cancelable sublease agreements, for which we expect to receive minimum rentals of approximately $2.8 million in future periods.

Rental expense under operating leases was approximately $0.9 million for both the three months ended September 30, 2016 and 2015. Rental expense under operating leases was approximately $2.6 million for both the nine months ended September 30, 2016 and 2015.

Legal proceedings. We are party to various legal, regulatory and other matters arising from the day-to-day operations of our business that may result in claims against us. While the ultimate impact of any proceedings cannot be predicted with certainty, our management believes that the resolution of any of our pending legal proceedings will not have a material adverse effect on our business, financial position, results of operations or cash flows.