CLB 2018 Annual Report

21 in 2018 compared to 2017 outpaced the 13% increase in rig count and the 25% increase in the completion of wells due to our differentiated well completion product sales surpassing the industry activity levels in North America. Cost of Services, excluding depreciation Cost of services increased to $343.8 million in 2018 compared to $333.4 million in 2017 and $329.5 million in 2016. As a percentage of services revenue, cost of services remained relatively flat at 71% in 2018, 69% in 2017 and 70% in 2016. Cost of services as a percentage of services revenue is primarily reflective of how our fixed cost structure is being absorbed by revenue. Cost of Product Sales, excluding depreciation Cost of product sales increased to $153.1 million in 2018 from $131.6 million in 2017 and $108.0 million in 2016. As a percentage of product sales revenue, cost of sales improved to 72% for 2018 from 79% for 2017 and 89% for 2016. The improvement in cost of product sales as a percentage of sales revenue in 2018 was primarily due to the improved absorption rates of our fixed costs and investments in manufacturing automation. General and Administrative Expense General and administrative ("G&A") expenses include corporate management and centralized administrative services that benefit our operations. G&A expenses were $62.9 million in 2018 compared to $47.7 million and $39.4 million during 2017 and 2016, respectively. The variances are primarily due to changes in compensation expense during those periods, including additional stock compensation expense of $9.9 million in 2018 recorded for retirement eligible employees. See Note 14 , Stock- Based Compensation for further detail. Depreciation and Amortization Expense Depreciation and amortization expense of $23.1 million in 2018 is down compared to $24.5 million in 2017 and $26.3 million in 2016. Other (Income) Expense, net The components of Other (income) expense, net, for the years ended December 31, 2018, 2017 and 2016 were as follows (in thousands): 2018 2017 2016 Sale of assets $ (1,078) $ (346) $ (618) Results of non-consolidated subsidiaries (203) (332) (506) Foreign exchange 2,598 951 1,776 Rents and royalties (510) (454) (420) Return on pension assets and other pension costs (644) (587) (605) Acquisition-related costs 623 — — Insurance settlement (707) — — Severance, compensation and other charges — 1,145 — Other, net (816) 255 (27) Total Other (income) expense, net $ (737) $ 632 $ (400) In 2018, we received settlement of a claim for business interruption and damages incurred as a result of Hurricane Harvey in 2017.