NOTE 9 – COMMITMENTS AND CONTINGENCIES

Accrued General Liability

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

	September 30, 2016		December 31, 2015
Included in other current liabilities	$	1,667	$	1,304
Included in other long-term liabilities		8,514		6,879
	$	10,181	$	8,183

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

	September 30, 2016		December 31, 2015
General liability insurance receivable and indemnification asset for claims under a fully insured policy	$	2,815	$	2,815
General liability insurance receivable for claims that exceeded the stop loss limit		907		821
Total general liability insurance receivables included in other non-current assets	$	3,722	$	3,636

Leases

We are obligated under capital leases covering vehicles and certain equipment. The vehicle and equipment leases generally have terms ranging from four to six years. Total gross assets relating to capital leases were approximately $64.7 million and $64.9 million as of September 30, 2016 and December 31, 2015, respectively, and a total of approximately $23.1 million and $19.1 million were fully depreciated as of September 30, 2016 and December 31, 2015, respectively. The net book value of assets under capital leases was approximately $17.8 million and $22.1 million as of September 30, 2016 and December 31, 2015, respectively, net of accumulated depreciation of $46.9 million and $42.8 million as of September 30, 2016 and December 31, 2015, respectively. Amortization of assets held under capital leases is included within cost of sales on the Condensed 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.

In some instances, lease agreements exist with related parties. Future minimum lease payments under noncancellable operating leases (with initial or remaining lease terms in excess of one year) with related parties as of September 30, 2016 are as follows (amounts, in thousands, are as of the fiscal year ended):

Remainder of 2016	$	133
2017		366
2018		155
2019		—
2020		—
Thereafter		—

Supply Contract Commitments

As of September 30, 2016, we had two product supply contracts, one extending through December 31, 2016 and one extending through August 31, 2017. The contract extending through August 31, 2017 has been suspended through December 31, 2016. Our obligations for both contracts are based on quantity without a specific rate applied and therefore are not quantifiable. We expect our quantity of purchases to exceed the minimum quantity commitments for all years covered by the contracts. Actual purchases made under the contract extending through December 31, 2016 for the three months ended September 30, 2016 and 2015 were approximately $6.5 million and $16.6 million, respectively, and $32.9 million and $41.5 million for the nine months ended September 30, 2016 and 2015, respectively.

Other Commitments and Contingencies

From time to time, various claims and litigation are asserted or commenced against us principally arising from contractual and tort 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.