COMMITMENTS AND CONTINGENCIES

12 Months Ended

Dec. 31, 2012

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES

(9)       COMMITMENTS AND CONTINGENCIES

We lease certain office space, equipment, storage space, vehicles and other equipment under various non-cancelable lease agreements. Certain of these leases (primarily equipment related) are recorded as capital leases.  Amortization expense associated with the capital leases is combined with depreciation expense of fixed assets.  Details of capitalized leased assets as of December 31, 2012 and 2011 are as follows:

	2012			2011
Manufacturing equipment and tooling	$	292		$	364
Furniture, fixtures and computer equipment	—			57
Total	292			421
Less: Accumulated amortization	(231		)	(300		)
Net capitalized leased assets	$	61		$	121

Future minimum rental commitments under non-cancelable leases are as follows:

	Capital Leases			Operating Leases
Year ended December 31 -
2013	$	55		$	2,928
2014	23			2,099
2015	—			1,716
2016	—			579
2017	—			419
Thereafter	—			228
Total minimum payments	78			$	7,969
Amounts representing interest	(7		)
Present value of net minimum lease payments	71
Current portion of capital lease obligations	(52		)
Capital lease obligations	$	19

Total rental expense included in operations was $3,182, $2,973, and $2,295 for the years ended December 31, 2012, 2011, and 2010, respectively.

During 2008, we entered into a license agreement and a risk allocation agreement related to our U.S. Explosive Metalworking business.  These agreements, which were amended in 2012, provide us with the ability to perform our explosive shooting process at a second shooting site in Pennsylvania.  Future minimum payments required to be made by us under these agreements are as follows:

Year ended December 31 -
2013	$	398
2014	398
2015	398
2016	398
2017	398
Thereafter	398
Total minimum payments	$	2,388

In the normal course of business, we are party to various contractual disputes and claims. After considering our evaluations by legal counsel regarding pending actions, we are of the opinion that the outcome of such actions will not have a material adverse effect on the financial position or results of operations.