Annual report pursuant to Section 13 and 15(d)

Summary of Significant Accounting Policies (Tables)

v2.4.1.9
Summary of Significant Accounting Policies (Tables)
12 Months Ended
Dec. 31, 2014
Accounting Policies [Abstract]  
Estimated Useful Lives of Property, Plant and Equipment

The cost of property, plant, and equipment is depreciated using the straight-line method over the following estimated useful lives of the respective assets, except for leasehold improvements, which are depreciated over the lesser of the estimated useful lives of the respective assets or the related lease terms.

 

Building

30 years

Leasehold improvements

3 to 5 years

Equipment and computers

3 to 5 years

Furniture and fixtures

5 years

 

Changes in Initial Product Warranty Accrual and Expenses Under Initial and Extended Warranties

Changes in the initial product warranty accrual and the expenses incurred under our initial and extended warranties for the years ended December 31 are included within accrued liabilities on the consolidated balance sheets and were as follows (in thousands):

 

 

 

Years Ended December 31,

 

 

 

2014

 

 

2013

 

 

2012

 

Initial warranty accrual, beginning balance

 

$

1,096

 

 

$

1,699

 

 

$

2,218

 

Provision for estimated warranty cost

 

 

1,214

 

 

 

475

 

 

 

1,705

 

Warranty expenditures

 

 

(861

)

 

 

(1,078

)

 

 

(2,224

)

Initial warranty accrual, ending balance

 

 

1,449

 

 

 

1,096

 

 

 

1,699

 

Less warranty accrual, long term

 

 

519

 

 

 

 

 

 

 

Total warranty accrual, current portion

 

$

930

 

 

$

1,096

 

 

$

1,699

 

 

Summary of Income Statement Classification of Compensation Expense

During the years ended December 31, 2014, 2013, and 2012, the Company recognized compensation cost related to stock options of $1.2 million, $1.6 million, and $1.6 million, respectively, based on the grant date fair value. The net impact to earnings for the years ended December 31, 2014, 2013, and 2012, was $(0.03), $(0.05), and $(0.05) per diluted share, respectively. The following table summarizes the income statement classification of compensation expense associated with share-based payments (in thousands):

 

 

 

Years Ended December 31,

 

 

 

2014

 

 

2013

 

 

2012

 

Cost of revenue

 

$

134

 

 

$

288

 

 

$

245

 

Sales and marketing

 

 

401

 

 

 

585

 

 

 

514

 

General and administrative

 

 

616

 

 

 

594

 

 

 

668

 

Engineering and development

 

 

82

 

 

 

142

 

 

 

173

 

 

 

$

1,233

 

 

$

1,609

 

 

$

1,600

 

 

Assumptions on Estimation of Stock Option Fair Values

The stock option fair values were estimated using the Black-Scholes option-pricing model with the following assumptions:

 

 

 

2014

 

 

2013

 

 

2012

 

Expected term (years)

 

 

3.83

 

 

 

3.65

 

 

 

3.70

 

Volatility

 

 

94

%

 

 

84

%

 

 

97

%

Annual dividend per share

 

$

 

 

$

 

 

$

 

Risk-free interest rate

 

 

1.66

%

 

 

1.04

%

 

 

0.77

%