CLB 2018 Annual Report

26 Any outstanding balance under the Credit Facility is due June 19, 2023, when the Credit Facility matures. Interest payment terms are variable depending upon the specific type of borrowing under this facility. Our available capacity at any point in time is subject to all terms of the agreements, and is reduced by borrowings outstanding at the time and outstanding letters of credit which totaled $18.0 million at December 31, 2018, resulting in an available borrowing capacity under the Credit Facility of $140.0 million. In addition to those items under the Credit Facility, we had $13.3 million of outstanding letters of credit and performance guarantees and bonds from other sources as of December 31, 2018. The terms of the Credit Facility and Senior Notes require us to meet certain covenants, including, but not limited to, an interest coverage ratio (consolidated EBITDA divided by interest expense) and a leverage ratio (consolidated net indebtedness divided by consolidated EBITDA), where consolidated EBITDA (as defined in each agreement) and interest expense are calculated using the most recent four fiscal quarters. The Credit Facility has the more restrictive covenants with a minimum interest coverage ratio of 3.0 to 1.0 and a maximum leverage ratio of 2.5 to 1.0. We believe that we are in compliance with all such covenants contained in our credit agreements. Certain of our material, wholly-owned subsidiaries are guarantors or co- borrowers under the Credit Facility and Senior Notes. In 2014, we entered into two interest rate swap agreements for a total notional amount of $50 million to hedge changes in the variable rate interest expense on $50 million of our existing or replacement LIBOR-priced debt. Under the first swap agreement of $25 million, we fixed the LIBOR portion of the interest rate at 1.73% through August 29, 2019, and under the second swap agreement of $25 million, we fixed the LIBOR portion of the interest rate at 2.50% through August 29, 2024. Each swap is measured at fair value and recorded in our consolidated balance sheet as an asset or liability. They are designated and qualify as cash flow hedging instruments and are highly effective. Unrealized gains and losses are deferred to shareholders' equity as a component of accumulated other comprehensive income (loss) and are recognized in income as an increase or decrease to interest expense in the period in which the related cash flows being hedged are recognized in expense. In addition to our repayment commitments under our Credit Facility and our Senior Notes, we have non-cancellable operating lease arrangements under which we lease property including land, buildings, office equipment and vehicles. The following table summarizes our future contractual obligations under these arrangements (in thousands) : Total Less than 1 year 1-3 Years 3-5 Years More than 5 Years Contractual Obligations: Debt (1) $ 292,000 $ — $ 75,000 $ 217,000 $ — Operating leases 66,322 16,267 22,346 12,894 14,815 Pension (2) 800 800 — — — Total contractual obligations $ 359,122 $ 17,067 $ 97,346 $ 229,894 $ 14,815 (1) Not included in the above balances are anticipated cash payments for interest of $6.1 million a year for 2019-2021 and cash payments for interest of $3.1 million a year for 2022-2023 for a total of $24.5 million. (2) Our Dutch pension plan requires annual employer contributions. Amounts payable in the future will be based on future workforce factors which cannot be projected beyond one year. We have no significant purchase commitments or similar obligations outstanding at December 31, 2018. Not included in the table above are uncertain tax positions of $7.5 million that we have accrued for at December 31, 2018, as the amounts and timing of payment, if any, are uncertain. See Note 10 of the Notes to Consolidated Financial Statements for further detail of this amount. At December 31, 2018, we had tax net operating loss carry-forwards in various jurisdictions of $25.8 million. Although we cannot be certain that these operating loss carry-forwards will be utilized, we anticipate that we will have sufficient taxable income in future years to allow us to fully utilize the carry-forwards that are not subject to a valuation allowance as of December 31, 2018. If unused, those carry-forwards which are subject to expiration may expire during the years 2018-2028. During 2018, less than $0.1 million of net operating loss carry-forwards which carried a full valuation allowance expired unused. We expect our investment in capital expenditures to track client demand for our services and products. Given the improving, but still uncertain, trend in industry activity levels, we have not determined, at this time, the level of investment that will be made in 2019. We will, however, continue to invest to fund the purchase of instrumentation, tools and equipment along with expenditures to replace obsolete or worn-out instrumentation, tools and equipment, to consolidate certain facilities to gain operational efficiencies, and to increase our presence where requested by our clients. In addition, we plan to continue to (i)