Accrued Compensation

6 Months Ended

Jun. 30, 2015

The components of accrued compensation were as follows:



(In thousands)	June 30, 2015		December 31, 2014
Accrued social insurance ⁽¹⁾	$	19,921	$	19,941
Accrued salary/wages	6,876		6,114
Accrued vacation/holiday	2,452		2,222
Accrued bonus ⁽²⁾	2,309		8,492
Accrued commission	643		1,797
Accrued medical insurance claims	190		236
Other accrued compensation	1,281		1,854
Total accrued compensation	$	33,672	$	40,656

⁽¹⁾

Effective January 1, 2008, the Chinese Labor Contract Law was enacted in the PRC. This law mandated that PRC employers remit the applicable social insurance payments to their local government. Social insurance is comprised of various components such as pension, medical insurance, job injury insurance, unemployment insurance, and a housing assistance fund, and is administered in a manner similar to social security in the United States. This amount represents our estimate of the amounts due to the PRC government for social insurance on June 30, 2015 and December 31, 2014.

⁽²⁾

Accrued bonus includes an accrual for an extra month of salary ("13^th month salary") to be paid to employees in certain geographies where it is the customary business practice. This 13^th month salary is paid to these employees if they remain employed with us through December 31st. The total accrued for the 13^th month salary was $0.6 million and $0.6 million at June 30, 2015 and December 31, 2014, respectively.

Other Accrued Expenses

The components of other accrued expenses were as follows:



(In thousands)	June 30, 2015		December 31, 2014
Advertising and marketing	$	176	$	174
Deferred revenue	724		648
Duties	791		947
Freight and handling fees	1,255		1,522
Product development	536		751
Product warranty claim costs	24		353
Professional fees	1,466		1,493
Sales taxes and VAT	3,099		2,057
Third-party commissions	893		553
Tooling ⁽¹⁾	1,367		1,089
Unrealized loss on foreign currency exchange futures contracts	53		113
Utilities	355		275
Other	2,875		3,383
Total other accrued expenses	$	13,614	$	13,358


⁽¹⁾	The tooling accrual balance relates to unearned revenue for tooling that will be sold to customers.