NOTE 11 – COMMITMENTS AND CONTINGENCIES

Accrued General Liability

Accrued general insurance reserves included on the Consolidated Balance Sheets were as follows (in thousands):


	As of December 31,
	2016		2015
Included in other current liabilities	$	1,949	$	1,304
Included in other long-term liabilities		7,104		6,879

	$	9,053	$	8,183

We also had insurance receivables included on the Consolidated Balance Sheets that, in aggregate, offset an equal liability included within the reserve amounts noted above. The amounts were as follows (in thousands):


	As of December 31,
	2016		2015
Insurance receivable and indemnification asset for claims under a fully insured policy	$	2,773	$	2,815
Insurance receivable for claims that exceeded the stop loss limit		26		821

Total insurance receivables included in other non-current assets	$	2,799	$	3,636

Leases

We are obligated under capital leases covering vehicles and certain equipment. Total assets relating to capital leases were approximately $64.2 million and $64.9 million as of December 31, 2016 and 2015, respectively, and a total of approximately $22.8 million and $19.1 million were fully depreciated as of December 31, 2016 and 2015, respectively. The vehicle and equipment leases generally have terms ranging from four to six years. The net book value of assets under capital leases was approximately $16.4 million and $22.1 million as of December 31, 2016 and 2015, respectively. Amortization of assets held under capital leases is included within cost of sales on the Consolidated Statements of Operations.

We also have several noncancellable operating leases, primarily for buildings, improvements, equipment and certain vehicles. These leases generally contain renewal options for periods ranging from one to five years and require us to pay all executory costs such as property taxes, maintenance and insurance.

Future minimum lease payments under noncancellable operating leases (with initial or remaining lease terms in excess of one year) and future minimum capital lease payments as of December 31, 2016 are as follows (in thousands):


	Capital Leases			Operating Leases
				Related Party		Other		Total Operating
2017	$	7,858		$	640	$	9,300	$	9,940
2018		4,895			434		6,306		6,740
2019		3,272			260		4,737		4,997
2020		823			—		3,603		3,603
2021		12			—		2,166		2,166
Thereafter		—			—		2,718		2,718

		16,860		$	1,334	$	28,830	$	30,164

Less: Amounts representing executory costs		(414	)
Less: Amounts representing interest		(1,153	)

Total obligation under capital leases		15,293
Less: Current portion of capital leases		(6,929	)

Long term capital lease obligation	$	8,364

Total rent expense under these operating leases for the years ended December 31, 2016, 2015 and 2014 was approximately $11.6 million, $9.4 million and $7.9 million, respectively, which is included in the Consolidated Statements of Operations as follows (in thousands):


	Years ended December 31,
	2016		2015		2014
Cost of Sales	$	848	$	855	$	733
Administrative		10,732		8,507		7,138

Total	$	11,580	$	9,362	$	7,871

Supply Contract Commitments

During 2016, we were a party to two product supply contracts, one of which expired by its terms on December 31, 2016 and one that extends through August 31, 2017 but was suspended during 2016. No purchases were made under the suspended contract extending through August 31, 2017 during the year ended December 31, 2016. Our obligations under both contracts were based on quantity without a specific rate applied and therefore are not quantifiable. Our purchases under the contract exceed the minimum commitments for all years covered.

Other Commitments and Contingencies

From time to time, various claims and litigation are asserted or commenced against us principally arising from contractual matters and personnel and employment disputes. In determining loss contingencies, management considers the likelihood of loss as well as the ability to reasonably estimate the amount of such loss or liability. An estimated loss is recorded when it is considered probable that such a liability has been incurred and when the amount of loss can be reasonably estimated. As litigation is subject to inherent uncertainties, we cannot be certain that we will prevail in these matters. However, we do not believe that the ultimate outcome of any pending matters will have a material adverse effect on our consolidated financial position, results of operations or cash flows.