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COMMITMENTS AND CONTINGENCIES | 12 Months Ended
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Sep. 30, 2016
COMMITMENTS AND CONTINGENCIES |
COMMITMENTS AND CONTINGENCIES | NOTE 13 COMMITMENTS AND CONTINGENCIES PURCHASE OBLIGATIONS Equipment, parts and supplies are ordered in advance to promote efficient construction and capital improvement progress. At September 30, 2016, we had purchase commitments for equipment, parts and supplies of approximately $44.0 million. LEASES At September 30, 2016, we were leasing approximately 219,700 square feet of office space near downtown Tulsa, Oklahoma. We also lease other office space and equipment for use in operations. For operating leases that contain built-in pre-determined rent escalations, rent expense is recognized on a straight-line basis over the life of the lease. Leasehold improvements are capitalized and amortized over the lease term. Future minimum rental payments required under operating leases having initial or remaining non-cancelable lease terms in excess of a year at September 30, 2016 are as follows:
Fiscal Year |  | Amount |
|  | (in thousands) |
2017 |  | $ | 8,550 |
2018 |  |  | 5,680 |
2019 |  |  | 5,214 |
2020 |  |  | 4,401 |
2021 |  |  | 3,049 |
Thereafter |  |  | 9,679 |
​ | ​ | ​ | ​ | ​
Total |  | $ | 36,573 |
​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | ​
Total rent expense was $13.5 million, $13.6 million and $12.1 million for fiscal 2016, 2015 and 2014, respectively. CONTINGENCIES Various legal actions, the majority of which arise in the ordinary course of business, are pending. We maintain insurance against certain business risks subject to certain deductibles. With the exception of the matters discussed below which are independently addressed herein, none of these legal actions are expected to have a material adverse effect on our financial condition, cash flows or results of operations. We are contingently liable to sureties in respect of bonds issued by the sureties in connection with certain commitments entered into by us in the normal course of business. We have agreed to indemnify the sureties for any payments made by them in respect of such bonds. During the ordinary course of our business, contingencies arise resulting from an existing condition, situation, or set of circumstances involving an uncertainty as to the realization of a possible gain contingency. We account for gain contingencies in accordance with the provisions of ASC 450, Contingencies, and, therefore, we do not record gain contingencies and recognize income until realized. The property and equipment of our Venezuelan subsidiary was seized by the Venezuelan government on June 30, 2010. Our wholly-owned subsidiaries, Helmerich & Payne International Drilling Co. and Helmerich & Payne de Venezuela, C.A., filed a lawsuit in the United States District Court for the District of Columbia on September 23, 2011 against the Bolivarian Republic of Venezuela, Petroleos de Venezuela, S.A. ("PDVSA") and PDVSA Petroleo, S.A. ("Petroleo"). Our subsidiaries seek damages for the taking of their Venezuelan drilling business in violation of international law and for breach of contract. While there exists the possibility of realizing a recovery, we are currently unable to determine the timing or amounts we may receive, if any, or the likelihood of recovery. No gain contingencies are recognized in our Consolidated Financial Statements. On November 8, 2013, the United States District Court for the Eastern District of Louisiana approved the previously disclosed October 30, 2013 plea agreement between our wholly owned subsidiary, Helmerich & Payne International Drilling Co., and the United States Department of Justice, United States Attorney's Office for the Eastern District of Louisiana ("DOJ"). The court's approval of the plea agreement resolved the DOJ's investigation into certain choke manifold testing irregularities that occurred in 2010 at one of Helmerich & Payne International Drilling Co.'s offshore platform rigs in the Gulf of Mexico. We have been engaged in discussions with the Inspector General's office of the Department of the Interior regarding the same events that were the subject of the DOJ's investigation. We can provide no assurance as to the timing or eventual outcome of these discussions and are unable to determine the amount of penalty, if any, that may be assessed or the effect of any terms that may be required by an administrative agreement with the DOJ. However, we presently believe that the outcome of our discussions will not have a material adverse effect on us. On or about April 28, 2015, Joshua Keel ("Keel"), an employee of Helmerich & Payne International Drilling Co. ("HPIDC"), filed a petition in the 152 nd Judicial Court for Harris County, Texas (Cause No. 2015-24531) against us, our customer and several subcontractors of our customer. The suit arose from injuries Keel sustained in an accident that occurred while he was working on HPIDC Rig 223 in New Mexico in July of 2014. Keel alleged that the defendants were negligent and negligent per se, acted recklessly, intentionally, and/or with an utterly wanton disregard for the rights and safety of the plaintiff and was seeking damages well in excess of $100 million. Pursuant to the terms of the drilling contract between HPIDC and its customer, HPIDC indemnified most of the co-defendants in the lawsuit, subject to certain reservations. On September 14, 2016, the parties in the Keel litigation entered into a global settlement agreement, which was approved by the court on October 14, 2016. The total settlement amount of $72 million will be paid by the Company and its insurers on behalf of all defendants pursuant to industry standard contractual indemnification obligations. After taking into account amounts to be paid by the Company's various insurers, $18.8 million was recorded as an operating cost in our U.S. Land segment. At September 30, 2016, we have recorded in our Consolidated Balance Sheet a $72.0 million accrued liability and a $50.2 million accounts receivable from insurance recoveries. The settlement payment is due on or before December 24, 2016.

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