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 within those fiscal years with early adoption permitted. We have evaluated and elected this optional transition method for adoption. Based on our current lease portfolio, we estimate that the adoption of this standard will result in approximately $77 million of additional assets and liabilities being reflected on our Consolidated Balance Sheets upon adoption of this standard on January 1, 2019; however, there will not be a material impact to our Consolidated Statement of Operations or Cash Flows.