ACCRUED EXPENSES

Accrued expenses consist of the following:



	December 31,
	2013		2012
Accrued payroll	$	3,286	$	3,362
Accrued bonus	958		1,493
Accrued vacation & holiday	3,516		3,257
Accrued employee benefits	1,847		1,815
Accrued operating lease obligations	2,002		1,706
Contingent consideration	—		7,950
Accrued professional fees	1,253		754
Loss reserve on long-term production contracts	3,165		—
Other	3,055		3,366
Total accrued expenses	$	19,082	$	23,703

In the second quarter of 2013, the Company realized a $7,950 benefit related to the write-off of the contingent consideration associated with the December 2012 purchase of Valent. During the second quarter of 2013, it was deemed unlikely that the earnings levels required to be achieved for former Valent interest holders to be paid contingent consideration would not be achieved by the required date of December 31, 2013. As such, the contingent consideration was recorded as a benefit in the year ended December 31, 2013.

In the fourth quarter of 2013, the Company recorded a loss reserve of $5,267 related to a long-term production contract at Valent. This loss was treated as a measurement period adjustment for the Valent purchase price allocation. (See Note 1, Accounting Policies and Note 7, Goodwill and Intangible Assets). At December 31, 2013, the loss reserve balance was $5,222 of which $3,165 is included in accrued expenses with the remainder recorded as a reduction of related contract inventory.