CLB 2018 Annual Report

F-28 Fair Value Measurement at December 31, 2017 Total Level 1 Level 2 Level 3 Assets: Deferred compensation assets (1) $ 46,145 $ — $ 46,145 $ — 5 year interest rate swap 70 — 70 — $ 46,215 $ — $ 46,215 $ — Liabilities: Deferred compensation plan $ 37,280 $ — $ 37,280 $ — 10 year interest rate swap 492 — 492 — $ 37,772 $ — $ 37,772 $ — (1) Deferred compensation assets consist of the cash surrender value of life insurance policies and are intended to assist in the funding of the deferred compensation arrangements. 17. OTHER (INCOME) EXPENSE, NET The components of other (income) expense, net, for the years ended December 31, 2018, 2017 and 2016 are 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) Foreign Currency Risk We operate in a number of international areas which exposes us to foreign currency exchange rate risk. We do not currently hold or issue forward exchange contracts or other derivative instruments for hedging or speculative purposes (a foreign exchange contract is an agreement to exchange different currencies at a given date and at a specified rate). Foreign exchange gains and losses are the result of fluctuations in the USD against foreign currencies and are included in other (income) expense, net in the Consolidated Statements of Operations. We recognized foreign exchange losses in countries where the USD weakened against the local currency and we had net monetary liabilities denominated in the local currency; as well as countries where the USD strengthened against the local currency and we had net monetary assets denominated in the local currency. We recognized foreign exchange gains in countries where the USD strengthened against the local currency and we had net monetary liabilities denominated in the local currency and in countries where the USD weakened against the local currency and we had net monetary assets denominated in the local currency. Foreign exchange gains and losses for the years ended December 31, 2018, 2017 and 2016 are summarized in the following table (in thousands):