Commitments and contingencies Litigation, claims and assessments We are involved in various claims and lawsuits arising in the normal course of business, including proceedings involving tort and other general liability claims, and workers' compensation and other employee claims. Most occurrences involving liability and claims of negligence are covered by insurance with solvent insurance carriers. We recognize a liability when we believe the loss is probable and reasonably estimable. We currently believe that the ultimate outcome of such lawsuits and proceedings will not, individually or in the aggregate, have a material effect on our Condensed Consolidated Financial Statements . The Dutch corporate income tax act provides the option of a fiscal unity, which is a consolidated tax regime wherein the profits and losses of group companies can be offset against each other. Our Dutch companies file as a fiscal unity, with the exception of Playa Romana B.V., Playa Romana Mar B.V. and Playa Hotels &amp; Resorts N.V. Playa Resorts Holding B.V. is the head of our Dutch fiscal unity and is jointly and severally liable for the tax liabilities of the fiscal unity as a whole. During the third quarter of 2015 , we identified and recorded a potential Dutch operating tax contingency resulting from allocations to be made of certain corporate expenses from 2014 and 2015. We have provided all requested documentation to the Dutch tax authorities for their review and expect to receive their fi nal determination during the fourth quarter of 2018 . We have an estimated amount of $1.6 million as a tax contingency at September 30, 2018 that is recorded in other liabilities within the Condensed Consolidated Balance Sheet . Electricity supply contract One of our subsidiaries entered into an electricity supply contract wherein we committed to purchase electricity from a provider over a five -year period ending December 2019 . In consideration for our commitment, we received certain rebates. Should this contract be terminated prior to the end of the five -year period, we will be obligated to refund to the supplier the undepreciated portion of (i) the capital investment it made to connect our facilities to the power grid (original amount approximately $1.4 million ) and (ii) the unearned rebates we received (total unearned rebates of $0.5 million and $0.8 million as of September 30, 2018 and December 31, 2017 , respectively), in each case using a 20% straight-line depreciation per annum. Leases and other commitments We lease certain equipment for the operations of our hotels under various lease agreements. The leases extend for varying periods through 2021 and contain fixed components and utility payments. In addition, all of our administrative offices are subject to leases of building facilities from third parties, which extend for varying periods through 2023 and contain fixed and variable components. Rental expense under non-cancelable operating leases, including contingent leases, consisted of $1.8 million and $1.5 million for the nine months ended September 30, 2018 and 2017 , respectively. Rental expense under non-cancelable operating leases, including contingent leases, consisted of $0.7 million and $0.5 million for the three months ended September 30, 2018 and 2017 , respectively.