Commitments and Contingencies

12 Months Ended

Dec. 31, 2015

COMMITMENTS AND CONTINGENCIES [Abstract]

Commitments and Contingencies Disclosure [Text Block]

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. During 2015, we recorded contingent liabilities in the amount of $8.6 million associated with these claims.

In 1998, we entered into employment agreements with our three senior executive officers that provide for severance 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 approximately $8.4 million at December 31, 2015.

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, 2015, consist of the following (in thousands):

2016	$	15,565
2017	12,208
2018	9,390
2019	6,507
2020	4,656
Thereafter	18,659
Total commitments	$	66,985

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 approximately $22.2 million, $24.1 million and $23.2 million for the years ended December 31, 2015, 2014 and 2013, respectively.

As reported in prior annual filings, in connection with an audit of the 2008 and 2009 U.S. federal income tax returns of our U.S. consolidated group, the U.S. Internal Revenue Service proposed that certain transfer pricing positions taken by the Company be adjusted. On October 26, 2105, Core Laboratories filed a petition with the U.S. Tax Court contesting the IRS proposed deficiencies of approximately $11 million plus interest for this two year audit period. On February 8, 2016, the judge signed and entered a stipulated decision document with the Tax Court, whereby the IRS conceded its position and agreed that the Company does not owe the amount they previously sought in their audit of the Company’s 2008 and 2009 tax years. The Tax Court's decision will be final 90 days from this date.