Commitments and Contingencies

12 Months Ended

Dec. 31, 2011

Commitments and Contingencies

Note 9: Commitments and Contingencies

Lease Commitments - Minimum annual rentals, principally for noncancelable real estate and equipment leases with terms in excess of one year, in effect at December 31, 2011, are summarized in the following table:

(in thousands)
2012	$	5,005
2013		5,210
2014		4,205
2015		3,408
2016		1,997
Thereafter		7,080
Total rental commitments	$	26,905

Total rental expense, including short-term rentals, charged to operations was approximately $19,814,000 in 2011, $11,970,000 in 2010 and $10,787,000 in 2009.

Income Taxes - The amount of income taxes the Company pays is subject to ongoing audits by federal and state tax authorities, which often result in proposed assessments.  Other long-term liabilities include $35,000 as of December 31, 2011 and $33,000 as of December 31, 2010, that represents the Company’s estimated liabilities for the probable assessments payable.

Sales and Use Taxes - The Company has ongoing sales and use tax audits in various jurisdictions and may be subjected to varying interpretations of statute that could result in unfavorable outcomes that cannot be currently estimated.

Litigation - RPC is a party to various routine legal proceedings primarily involving commercial claims, workers’ compensation claims and claims for personal injury. RPC insures against these risks to the extent deemed prudent by its management, but no assurance can be given that the nature and amount of such insurance will, in every case, fully indemnify RPC against liabilities arising out of pending and future legal proceedings related to its business activities. While the outcome of these lawsuits, legal proceedings and claims cannot be predicted with certainty, management, after consultation with legal counsel, believes that the outcome of all such proceedings, even if determined adversely, would not have a material adverse effect on the Company’s business or financial condition.