CLB 2018 Annual Report

F-22 charge to expense for these deferred compensation contracts in 2018, 2017 and 2016 was $1.2 million, $1.4 million and $1.2 million, respectively. We provide severance compensation to certain current key employees if employment is terminated under certain circumstances, such as following a change in control or for any reason other than upon their death or disability, for “cause” or upon a material breach of a material provision of their employment agreement, as defined in their employment agreements. In addition, there are certain countries where we are legally required to make severance payments to employees when they leave our service. We have accrued for all of these severance payments, but they are not funded. We have also adopted a non-qualified deferred compensation plan (“Deferred Compensation Plan”) that allows certain highly compensated employees to defer a portion of their salary, commission and bonus, as well as the amount of any reductions in their deferrals under the Deferred Compensation Plan for employees in the United States, due to certain limitations imposed by the U.S. Internal Revenue Code of 1986, as amended (the “Code”). Contributions to the plan are invested in equity and other investment fund assets, and carried on the balance sheet at fair value. The benefits under these contracts are fully vested. Our primary obligation for the Deferred Compensation Plan is limited to our annual contributions. Employer contributions to the Deferred Compensation Plan for the years ended December 31, 2018, 2017 and 2016 were $0.1 million, $0.1 million, and $0.2 million, respectively. Vesting in all employer contributions is accelerated upon the death of the participant or a change in control. Employer contributions under the plans are forfeited upon a participant's termination of employment to the extent they are not vested at that time. 12. COMMITMENTS AND CONTINGENCIES We have been and may from time to time be named as a defendant in legal actions that arise in the ordinary course of business. These include, but are not limited to, employment-related claims and contractual disputes or claims for personal injury or property damage which occur in connection with the provision of our services and products. A liability is accrued when a loss is both probable and can be reasonably estimated. In 1998, we entered into employment agreements with our three senior executive officers that provide for deferred compensation benefits. The present value of the long-term liability recorded and fully reserved for the benefits due upon severing the employment of these employees is $9.0 million at December 31, 2018. Two of these executive officers retired from the Company on December 31, 2018 and the payment of these deferred compensation benefits will begin for both retired participants in 2019. We do not maintain any off-balance sheet debt or other similar financing arrangements nor have we formed any special purpose entities for the purpose of maintaining off-balance sheet debt. Scheduled minimum rental commitments under non-cancellable operating leases at December 31, 2018, consist of the following (in thousands): 2019 $ 16,267 2020 12,572 2021 9,774 2022 7,955 2023 4,938 Thereafter 14,815 Total commitments $ 66,321 Operating lease commitments relate primarily to rental of equipment and office space. Rental expense for operating leases, including amounts for short-term leases with nominal future rental commitments, was $20.8 million, $20.9 million and $20.3 million for the years ended December 31, 2018, 2017 and 2016, respectively. The FASB issued ASU 2016-02 ("Leases"), which introduces the recognition of lease assets and lease liabilities on the balance sheet for all leases with terms longer than 12 months. In addition, the FASB issued ASU 2018-11 ("Targeted Improvements to Leases"), which provides companies with an additional transition method that allows the effects of the adoption of the new standard to be recognized as a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. This new standard is effective for fiscal years beginning after December 15, 2018 and interim periods