Warranty Reserve and Accrual for Loss Contracts Related to Service

12 Months Ended

Dec. 31, 2015

Warranty Reserve and Accrual for Loss Contracts Related to Service

Warranty Reserve and Accrual for Loss Contracts Related to Service

10. Warranty Reserve and Accrual for Loss Contracts Related to Service

        The following table summarizes product warranty activity recorded during the years ended December 31, 2015 and 2014 (in thousands):

	December 31, 2015			December 31, 2014
Beginning balance—January 1	$	1,311		$	1,608
Additions for ReliOn acquisition		—			233
Additions for current period deliveries		230			961
Reductions for payments made		(1,135	)		(1,491	)
Ending balance—December 31	$	406		$	1,311

        Also, management has projected estimated service costs related to extended maintenance contracts and determined that certain loss contracts exist. A variety of assumptions are included in the estimates of future service costs, including the life of parts, failure rates of parts, and future costs of parts and labor. As a result, the Company recorded an accrual for loss contracts related to service of $10.1 million, as of December 31, 2015 and a charge to the Company's consolidated statement of operations during 2015.