Product Warranty (Tables)

3 Months Ended

Mar. 31, 2016

Activities in the product warranty accounts

As the Company recognizes revenue under the percentage-of-completion method, it provides an accrual for estimated future warranty costs based on historical experience and projected claims. The portion of the warranty provision expected to be incurred within 12 months is classified as current within accrued warranty ($1.4 million), while the remaining amount is classified as long-term within other liabilities ($106,000). The activity related to the warranty accrual is as follows:

(in thousands)

Balance at December 31, 2015	$	1,614
Warranty provision		145
Warranty claims		(245	)
Currency adjustment		2
Balance at March 31, 2016	$	1,516