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COMMITMENTS AND CONTINGENCIES

December

31,

2017,

we had long-term operating leases for office space, automobiles, temporary residences, and office equipment. Aggregate operating lease expense for the Successor period ended

December

31,

2017,

the Predecessor period ended

November 14, 2017

and the Predecessor years ended

December 31, 2016

and

2015

was

$0.3

million,

$2.0

million,

$2.5

million and

$2.8

million, respectively. Future minimum rental commitments under these leases are as follows (in thousands):

Year	Minimum Rental Commitments
2018	$	1,243
2019		1,122
2020		994
2021		984
2022		984
Thereafter		4,074
Total	$	9,401

We execute letters of credit, performance bonds and other guarantees in the normal course of business that ensure our performance or payments to

third

parties.

The aggregate notional value of these instruments as of

December 31, 2017

attributable to the Successor was

$3.2

million. The aggregate notional value of these instruments attributable to the Predecessor was

$3.2

million at

November 14, 2017,

$1.2

million at

December 31, 2016

and

$1.8

million at

December

31,

2015.

In the past,

significant claims have been made against these financial instruments. We believe the likelihood of demand for payment under these instruments is remote and expect

material cash outlays to occur from these instruments.

We have contingent liabilities and future claims for which we have made estimates of the amount of the eventual cost to liquidate these liabilities or claims. These liabilities and claims

may

involve threatened or actual litigation where damages have

not

been specifically quantified but we have made an assessment of our exposure and recorded a provision in our accounts for the expected loss.

We intend to defend these matters vigorously; however, litigation is inherently unpredictable, and the ultimate outcome or effect of such lawsuits and actions cannot be predicted with certainty. As a result, there can be

assurance as to the ultimate outcome of these lawsuits. Any claims against us, whether meritorious or

not,

could cause us to incur costs and expenses, require significant amounts of management time and result in the diversion of significant operations resources. Other claims or liabilities, including those related to taxes in foreign jurisdictions,

may

be estimated based on our experience in these matters and, where appropriate, the advice of outside counsel or other outside experts. Upon the ultimate resolution of the uncertainties surrounding our estimates of contingent liabilities and future claims, our future reported financial results will be impacted by the difference, if any, between our estimates and the actual amounts paid to settle the liabilities. In addition to estimates related to litigation and tax liabilities, other examples of liabilities requiring estimates of future exposure include contingencies arising out of acquisitions and divestitures. We determine our contingent liabilities based on the most recent information available to us at the time of such determination regarding the nature of the exposure. Such exposures

may

change from period to period based upon updated relevant facts and circumstances, which can cause the estimates to change. In the recent past, our estimates for contingent liabilities have been sufficient to cover the actual amount of our exposure. We do

not

believe that the outcome of these matters will have a material adverse effect on our business, financial condition, or results of operations.