Note 5 - Warranty and Service Contracts

12 Months Ended

Dec. 31, 2017

Notes to Financial Statements

Product Warranty Disclosure [Text Block]

NOTE

5

—WARRANTY AND SERVICE CONTRACTS

The Company has a direct

field service organization in the U.S. Internationally, the Company provides direct service support through its wholly-owned subsidiaries in Australia, Belgium, Canada, France, Hong Kong, Japan, and Switzerland, as well as through

third

-party service providers in Spain and United Kingdom. In several other countries, where it does

not

have a direct presence, the Company provides service through a network of distributors and

third

-party service providers.

After the original warranty period, maintenance and

support are offered on a service contract basis or on a time and materials basis. The Company provides for the estimated cost to repair or replace products under warranty at the time of sale.

Warranty Accrual (in thousands)

:

	December 31,
	2017			2016
Balance at beginning of year	$	2,461		$	1,819
Add: Accruals for warranties issued during the year		7,583			5,375
Less: Settlements and expirations during the year		(6,536	)		(4,733	)
Balance at end of year	$	3,508		$	2,461

Deferred Service Contract Revenue (in thousands)

:

	December 31,
	2017			2016
Balance at beginning of year	$	9,431		$	10,469
Add: Payments received		14,369			12,344
Less: Revenue recognized		(13,081	)		(13,382	)
Balance at end of year	$	10,719		$	9,431

Costs incurred under service contracts in 201

7, 2016 and 2015 amounted to

$6.0

million,

$6.7

million, and

$6.2

million, respectively, and are recognized as incurred.