Commitments and Contingencies

3 Months Ended

Mar. 31, 2016

Commitments and Contingencies Disclosure [Abstract]

Purchase Commitments

As of March 31, 2016, we had outstanding purchase commitments to a number of suppliers totaling $27.2 million, net of deposits previously made, related primarily to the construction of drilling rigs. Of these commitments, $10.9 million relates to equipment currently scheduled for delivery in 2016, $9.2 million relates to equipment scheduled for delivery in 2017 and $7.1 million relates to equipment scheduled for delivery in 2018.

Lease Commitments

We lease certain equipment and vehicles under non-cancelable operating and capital leases. Future minimum lease payments under operating and capital lease commitments, with lease terms in excess of one year subsequent to March 31, 2016, were as follows:



(in thousands)
2016	$	409
2017	319
2018	125
2019	58
2020	—
Thereafter	—
	$	911

As of March 31, 2016, property, plant and equipment in our balance sheets included $0.9 million of equipment under capital lease, net of $0.1 million of accumulated amortization. There were no capital leases as of December 31, 2015.

Contingencies

Our operations inherently expose us to various liabilities and exposures that could result in third-party lawsuits, claims and other causes of action. While we insure against the risk of these proceedings to the extent deemed prudent by our management, we can offer no assurance that the type or value of this insurance will meet the liabilities that may arise from any pending or future legal proceedings related to our business activities.