Accrued Liabilities

6 Months Ended

Jun. 30, 2018

Accrued Liabilities and Deferred Revenue

NOTE 8—ACCRUED LIABILITIES

Accrued liabilities are comprised of the following (in thousands):

	June 30,		December 31,
	2018		2017
Payroll and benefits	$	2,301	$	2,115
Warranty accrual, current portion		1,138		1,120
Taxes		487		544
Accrued professional services		1,041		584
Accrued insurance premium		59		870
Other		549		376
Total accrued liabilities	$	5,575	$	5,609

Changes in the initial product warranty accrual and the expenses incurred under the Company’s initial and extended warranties for the three and six months ended June 30, 2018 and 2017 are included within accrued liabilities on the Consolidated Balance Sheets and were as follows (in thousands):

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2018			2017			2018			2017
Initial warranty accrual, beginning balance	$	1,214		$	1,460		$	1,190		$	1,706
Provision for estimated warranty cost		378			25			624			2
Warranty expenditures		(233	)		(200	)		(455	)		(423	)
		1,359			1,285			1,359			1,285
Less warranty accrual, long-term		221			296			221			296
Total warranty accrual, current portion	$	1,138		$	989		$	1,138		$	989

The Company’s Waterlase laser systems sold worldwide are covered by a warranty against defects in material and workmanship for a period of up to 16 months from the date of sale by the Company or a distributor to the end-user. The Company’s Diode systems sold worldwide are covered by a warranty against defects in material and workmanship for a period of up to 28 months from the date of sale by the Company or a distributor to the end-user.