CLB 2018 Annual Report

F-17 borrowings available to $400 million if certain prescribed conditions are met by the Company. The Credit Facility bears interest at variable rates from LIBOR plus 1.375% to a maximum of LIBOR plus 2%. 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 to hedge changes in the variable interest rate on our LIBOR- priced debt. See Note 15 - Derivative Instruments and Hedging Activities for discussion of our derivative instruments. The estimated fair value of total debt at December 31, 2018 and 2017 approximated the book value of total debt. The fair value was estimated using Level 2 inputs by calculating the sum of the discounted future interest and principal payments through the date of maturity. 10. INCOME TAXES The components of income before income tax expense for the years ended December 31, 2018, 2017 and 2016 are as follows (in thousands): 2018 2017 2016 United States $ 61,680 $ 28,632 $ 6,233 Other countries 43,614 70,602 69,646 Income before income tax expense $ 105,294 $ 99,234 $ 75,879 The components of income tax expense for the years ended December 31, 2018, 2017 and 2016 are as follows (in thousands): 2018 2017 2016 Current: United States $ 13,198 $ 10,699 $ (2,469) Other countries 10,132 9,147 16,640 State and provincial 1,548 725 600 Total current 24,878 20,571 14,771 Deferred: United States (1,340) (2,948) 1,844 Other countries 1,909 626 (5,845) State and provincial — — 85 Total deferred 569 (2,322) (3,916) Income tax expense $ 25,447 $ 18,249 $ 10,855 The differences in income tax expense computed using the Netherlands statutory income tax rate of 25% in 2018, 2017 and 2016 and our income tax expense as reported in the accompanying Consolidated Statements of Operations for the years ended December 31, 2018, 2017 and 2016 are as follows (in thousands):