Warranty Reserves

12 Months Ended

Dec. 31, 2017

Warranty Reserves [Abstract]

Warranty Reserves

Warranty Reserves

When evaluating the reserve for warranty costs, management takes into consideration the term of the warranty coverage, the quantity of product in the field that is currently under warranty, historical return rates, and historical costs of repair. In addition, certain other applicable factors, such as technical complexity, may also be taken into consideration when historical information is not yet available for recently introduced products. Estimated reserves for warranty costs are generally provided for when the associated revenue is recognized. In addition, additional warranty reserves may be established when the Company becomes aware of a specific warranty related problem, such as a product recall. Such additional warranty reserves are based on the Company's current estimate of the total out-of-pocket costs expected to be incurred to resolve the problem, including, but not limited to, costs to replace or repair the defective items and shipping costs. The reserve for warranty costs was $350,000 as of December 31, 2017 and $245,000 as of December 31, 2016. Of the $350,000 balance as of December 31, 2017, $142,000 was included in accrued liabilities in the Company's consolidated balance sheet, with the remainder being included in other long-term liabilities. Of the $245,000 balance as of December 31, 2016, $118,000 was included in accrued liabilities with the remainder being included in other long-term liabilities.