NOTE 8 - OPERATING LEASE COMMITMENTS

12 Months Ended

Dec. 31, 2013

Notes to Financial Statements

NOTE 8 - OPERATING LEASE COMMITMENTS

We have commitments under non-cancelable operating leases and other agreements, primarily for factory and office space, with initial or remaining terms of one year or more as follows:

For the years ending December 31:

	Operating Leases
(in thousands)
2014	$1,045
2015	863
2016	534
2017	4
2018	4
Thereafter	4
Total at December 31, 2013	$2,454

Lease and rental expense was $1,111,000 and $1,166,000 in 2013 and 2012, respectively.  Rent expense is recorded on a straight line basis, over the term of the lease, for leases that contain fixed escalation clauses, and excludes the portion that is charged to restructure expense.  The operating lease commitments include rent that is classified as part of the restructure accrual.  We amended our lease agreement for the Redmond, Washington headquarters facility effective February 1, 2011, extending the term to August 2016, lowering the square footage to 32,646 and lowering the rental rate.  The lease base annual rental payments during 2013 and 2012 were approximately $501,000 and $487,000, respectively. The lease square footage increased to 33,676 effective February 1, 2014.

In addition to the Redmond facility, approximately 11,000 square feet is leased at two foreign locations, including our German sales, service and engineering operations located in Munich, Germany, under a five-year lease starting in 2010, and a sales, service, operations and engineering office located in Shanghai, China under a one-year lease starting in 2013.