COMMITMENTS AND CONTINGENCIES

9 Months Ended

Sep. 30, 2015

12.COMMITMENTS AND CONTINGENCIES

Warranty

The Company offers warranty coverage for its products. The length of the warranty period for its products varies significantly based on the product being sold. The Company estimates the costs of repairing products under warranty based on the historical average cost of the repairs. The assumptions used to estimate warranty accruals are reevaluated periodically in light of actual experience and, when appropriate, the accruals are adjusted. Estimated warranty costs are recorded at the time of sale of the related product, and are considered a cost of sale.

Changes in the Company’s reserve for product warranty claims during 2015 and 2014 were as follows (in thousands):

	September 30, 2015			December 31, 2014
Warranty reserve at beginning of the year	$	786		$	629
Provision	42			234
Warranty expenditures	(48		)	(40		)
Effect of foreign currency translation	(18		)	(37		)

Warranty reserve at end of the period	$	762		$	786

Operating Leases

The Company is party to various operating leases for buildings, equipment and software.

Estimated future operating lease expense is as follows (in thousands):

	Lease Expense
Remainder of 2015	$	398
2016	1,776
2017	1,245
2018	1,060
2019	731
Thereafter	2,391

Total	$	7,601

Litigation

The Company is involved in certain actions that have arisen out of the ordinary course of business. Management believes that resolution of the actions will not have a significant adverse effect on the Company’s consolidated financial position or results of operations.