Summary of Significant Accounting Policies and Basis of Presentation (Tables)

12 Months Ended

Dec. 31, 2014

Reconciliation of Changes in Accrued Warranty Costs

The Company recognizes an estimated cost associated with warranty claims on its products at the time of sale. The amount recognized is based on estimates of future failure rates and current claim cost experience. The following is a reconciliation of the changes in accrued warranty costs for the reporting period:

	December 31,
	2014			2013
Balance at beginning of year	$	10,308		$	8,588
Warranty claims paid or retired		(1,102	)		(676	)
Reversal of previously recorded liability		(3,744	)(1)		—
Expense		555			2,118
Adjustment due to currency translation		(796	)		278
Balance at end of year	$	5,221		$	10,308

(1) During 2014, we reversed accruals for warranty liabilities.  The reversal was due to management’s review of the facts and circumstances of the liability and the conclusion that the likelihood of settlement would be remote. The reversal is included as a reduction to the reported cost of sales during the year ended December 31, 2014.

Reconciliation of Changes in Inventory Reserve

The Company’s inventory is valued at the lower of cost (the first-in, first-out basis) or market. Raw materials, consumables and commodities are measured at cost of purchase and unfinished and finished goods are measured at cost of production, using the weighted average method. If the net realizable value expected on the reporting date is below cost, a write-down is recorded to adjust inventory to its net realizable value. The Company provides a reserve for obsolete and slow moving inventories based upon estimates of future sales and product redesign. The following is a reconciliation of the changes in the inventory reserve:

	December 31,
	2014			2013
Balance at beginning of year	$	2,933		$	2,185
Expense		2,204			779
Inventory write off		(154	)		(6	)
Adjustment due to currency translation		(181	)		(25	)
Balance at end of year	$	4,802		$	2,933

Estimated Useful Lives of Property and Equipment

Depreciation and amortization are computed using the straight-line method. The estimated useful lives of the Company’s property and equipment are as follows:

Asset Category	Useful Life
Buildings	5 to 50 years
Plant and Equipment	1 to 20 years
Production tooling	Estimated life of tool (2 to 5 years)
Leasehold improvements	Shorter of estimated life or term of lease
Computer equipment and software	1 to 10 years
Capital Leases	Shorter of useful life or term of lease

Roll Forward of Goodwill from Acquisition

Intangible assets, net of accumulated amortization, consisted of the following (balances are lower as of December 31, 2014 than as of April 1, 2014, the acquisition date, due to fluctuations in foreign currency exchange rates totaling $465):

	December 31, 2014
	Gross Value		AccumulatedAmortization			Net Value		Useful Life
Customer relationships	$	5,264	$	(334	)	$	4,930	12 yrs
Order backlog		777		(777	)		—	0.5 yrs
Technology		2,675		(204	)		2,471	10 yrs
Trade name		690		(150	)		540	3.5 yrs
Total	$	9,406	$	(1,465	)	$	7,941

Fair Value and Corresponding Useful Lives for Acquired Intangibles Assets

The fair value and corresponding useful lives for acquired intangible assets are listed below as follows:

Asset Category	Useful Life
Customer relationships	10-15 years
Order Backlog	0.5 years
Technology	8-10 years
Production Development Costs	4 years

Estimate of Total Intangible Asset Amortization

Amortization expense for the prospective five years is estimated to be as follows:

2015	$	903
2016		903
2017		854
2018		706
2019		706

W.E.T

Roll Forward of Goodwill from Acquisition

Goodwill and other intangible assets recorded in conjunction with business combinations are based on the Company’s estimate of fair value, as of the date of acquisition. A roll forward of goodwill from December 31, 2012 to December 31, 2014 is as follows:

December 31, 2012	$	24,729
Exchange rate impact		1,080
December 31, 2013	$	25,809
Goodwill arising from the acquisition of GPT		6,258
Exchange rate impact		(1,669	)
December 31, 2014	$	30,398

Estimate of Total Intangible Asset Amortization

An estimate of intangible asset amortization by year, is as follows:

2015	$	15,848
2016		14,471
2017		14,471
2018		11,527
2019		10,121
Thereafter		1,525