COMMITMENTS AND CONTINGENCIES

12 Months Ended

Dec. 31, 2011

COMMITMENTS AND CONTINGENCIES.

COMMITMENTS AND CONTINGENCIES

(9)       COMMITMENTS AND CONTINGENCIES

We lease certain office space, equipment, storage space, vehicles and other equipment under various non-cancelable lease agreements. Certain of these leases (primarily equipment related) are recorded as capital leases.  Amortization expense associated with the capital leases is combined with depreciation expense of fixed assets.  Details of capitalized leased assets as of December 31, 2011 and 2010 are as follows:

	2011			2010
Manufacturing equipment and tooling	$	364		$	1,368
Furniture, fixtures and computer equipment	57			107
Total	421			1,475
Less: Accumulated amortization	(300		)	(841		)
Net capitalized leased assets	$	121		$	634

Future minimum rental commitments under non-cancelable leases are as follows:

	Capital Leases			Operating Leases
Year ended December 31 -
2012	$	72		$	1,639
2013	54			1,290
2014	23			760
2015	—			565
2016	—			244
Thereafter	—			196
Total minimum payments	149			$	4,694
Amounts representing interest	(13		)
Present value of net minimum lease payments	136
Current portion of capital lease obligations	(66		)
Capital lease obligations	$	70

Total rental expense included in operations was $2,973, $2,295, and $1,713 for the years ended December 31, 2011, 2010, and 2009, respectively.

During 2008, we entered into a license agreement and a risk allocation agreement related to our U.S. Explosive Metalworking business.  These agreements provide us with the ability to perform our explosive shooting process at a second shooting site in Pennsylvania.  Future minimum payments required to be made by us under these agreements are as follows:

Year ended December 31 -
2012	$	239
2013	239
2014	239
2015	239
2016	239
Thereafter	478
Total minimum payments	$	1,673

In the normal course of business, we are party to various contractual disputes and claims. After considering our evaluations by legal counsel regarding pending actions, we are of the opinion that the outcome of such actions will not have a material adverse effect on the financial position or results of operations.