Commitments and Contingencies

12 Months Ended

Dec. 31, 2011

Commitments and Contingencies

15. Commitments and Contingencies

Leases

The Company has operating leases that resulted in expense of $4.4 million in 2011, $3.4 million in 2010 and $4.0 million in 2009. These contracts include building, office equipment, vehicle and machinery leases that require payment of property taxes, insurance, repairs and other operating costs.

In 2010 and 2011, the Company entered into operating leases for manufacturing equipment at its North American automotive facility included in the Thermal/Acoustical segment. As of December 31, 2011, the estimated future minimum payments for this equipment included in the table below are $5.2 million through 2018, or estimated annual payments of approximately $0.7 million to $1.0 million.

The Company has a capital lease agreement for a high speed manufacturing line at its German operation. The lease has monthly principal and interest payments until 2012. In addition, the Company has a capital lease agreement for the land and building at the St. Nazaire, France operating facility requiring monthly principal and interest payments until 2016 (See Note 6).

Approximate future minimum lease payments under noncancelable leases are:

	Payments due by period
In thousands	Operating Lease Payments		Capital Lease Payments			Total
2012	$	3,245	$	911		$	4,156
2013		2,055		752			2,807
2014		1,621		662			2,283
2015		1,122		662			1,784
2016		1,068		331			1,399
Thereafter		1,737		-			1,737
Total		10,848		3,318			14,166
Interest on capital leases		-		(335	)		(335	)
Total	$	10,848	$	2,983		$	13,831

Commitments and Contingencies

The Company is, from time to time, subject to governmental audits, proceedings and various litigation relating to matters incidental to its business, including product liability and environmental claims. While the outcome of current matters cannot be predicted with certainty, management, after reviewing such matters and consulting with the Company’s internal and external counsel and considering any applicable insurance or indemnification, does not expect any liability that may ultimately be incurred will materially affect the consolidated financial position, results of operations or cash flows of the Company.

As of December 31, 2011, the Company had unconditional purchase obligations to acquire aluminum of $0.3 million which is expected to be used for 2012 production requirements.