OTHER FINANCIAL STATEMENT DATA:

The make-up of our inventories is as follows:



(In thousands)	June 30, 2016		December 31, 2015
Raw materials and purchased parts	$	6,480	$	6,787
Work in process	780		508
Finished goods	5,243		5,970
Total inventories	$	12,503	$	13,265

The components of our accrued expenses are as follows:



(In thousands)	June 30, 2016		December 31, 2015
Wages and benefits	$	2,241	$	1,014
Warranty liability	685		584
Other	370		361
	$	3,296	$	1,959

Warranty costs:

We provide for the estimated cost of product warranties, which covers products for periods ranging from one to three years, at the time revenue is recognized. While we engage in extensive product quality programs and processes, including actively monitoring and evaluating the quality of component suppliers, warranty obligations are affected by product failure rates, material usage and service delivery costs incurred in correcting a product failure. If actual product failure rates, material usage or service delivery costs differ from our estimates, revisions to the estimated warranty liability would be required and could be material. The current portion of our warranty liability is included as a component of accrued expenses. The long-term portion of our warranty liability is included as a component of other liabilities. At the end of each reporting period, we revise our estimated warranty liability based on these factors.

A reconciliation of the changes in our estimated warranty liability is as follows:



	Six Months Ended June 30,
(In thousands)	2016			2015
Balance at beginning of period	$	645		$	839
Accrual for warranties	447			287
Warranty revision	(25		)	10
Settlements made during the period	(295		)	(426		)
Balance at end of period	772			710
Current portion of estimated warranty liability	(685		)	(635		)
Long-term estimated warranty liability	$	87		$	75

Deferred warranty revenue:

The current portion of our deferred warranty revenue is included as a component of advance customer payments. The long-term portion of our deferred warranty revenue is included as a component of other liabilities. A reconciliation of the changes in our deferred warranty revenue is as follows:



	Six Months Ended June 30,
(In thousands)	2016			2015
Balance at beginning of period	$	199		$	475
Revenue deferrals	203			212
Amortization of deferred revenue	(226		)	(365		)
Total deferred warranty revenue	176			322
Current portion of deferred warranty revenue	(171		)	(307		)
Long-term deferred warranty revenue	$	5		$	15