NOTE 14 – 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,
	2018		2017
Included in other current liabilities	$	1,848	$	2,033
Included in other long-term liabilities		6,608		7,073

	$	8,456	$	9,106

We also had insurance receivables and an indemnification asset 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,
	2018		2017
Insurance receivable and indemnification asset for claims under a fully insured policy	$	2,484	$	2,773
Insurance receivable for claims that exceeded the stop loss limit		53		2

Total insurance receivables included in other non-current assets	$	2,537	$	2,775

Leases

We are obligated under capital leases covering vehicles and certain equipment. The vehicle and equipment leases generally have initial terms ranging from four to six years. Total assets relating to capital leases were approximately $58.7 million and $63.4 million as of December 31, 2018 and 2017, respectively, and a total of approximately $32.0 million and $26.8 million were fully depreciated as of December 31, 2018 and 2017, respectively. The net book value of assets under capital leases was approximately $9.5 million and $13.0 million as of December 31, 2018 and 2017, respectively. Amortization of assets held under capital leases is included within cost of sales on the Consolidated Statements of Operations and Comprehensive Income.

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, 2018 are as follows (in thousands):


	Capital Leases			Operating Leases
				Related Party		Other		Total Operating
2019	$	5,207		$	1,159	$	14,418	$	15,577
2020		2,253			1,184		11,293		12,477
2021		1,339			1,058		7,014		8,072
2022		452			972		4,335		5,307
2023		93			51		2,613		2,664
Thereafter		—			—		4,695		4,695

		9,344		$	4,424	$	44,368	$	48,792

Less: Amounts representing executory costs		(255	)
Less: Amounts representing interest		(459	)

Total obligation under capital leases		8,630
Less: Current portion of capital leases		(4,806	)

Long term capital lease obligation	$	3,824

Total rent expense under these operating leases, which is included in the Consolidated Statements of Operations and Comprehensive Income, was as follows (in thousands):


	Years ended December 31,
	2018		2017		2016
Cost of Sales	$	546	$	813	$	848
Administrative		16,693		14,310		10,732

Total	$	17,239	$	15,123	$	11,580

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.

During the year ended December 31, 2018, we entered into an agreement with one of our suppliers to purchase a portion of the insulation materials we utilize across our business. This agreement is effective January 1, 2019 through December 31, 2021 with a purchase obligation of $16.4 million for 2019, $21.4 million for 2020 and $15.0 million for 2021. Additionally, we entered into an agreement with a chemical supplier with a purchase obligation of $0.6 million in 2019.