Long-term obligations

12 Months Ended

Dec. 31, 2013

4. Long-term obligations

Total long-term obligations as of December 31, 2013 and 2012 consist of the following (in thousands):

	2013		2012

Vendor obligations
Capital lease obligations	$	17	$	32
Deferred lease payments ⁽²⁾		764		697
Microsoft licenses ⁽¹⁾		-		409

Pension obligations
Accrued pension liability		3,317		3,054
		4,098		4,192
Less: Current portion of long-term obligations		351		818
Totals	$	3,747	$	3,374

⁽¹⁾ In April 2011, the Company renewed a vendor agreement to acquire certain additional software licenses and to receive support and subsequent software upgrades on these and other currently owned software licenses through February 2014. As of December 31, 2013, the Company has paid in full all the installments.

⁽²⁾ Deferred lease payment represents the effect of straight-lining lease payments over the contractual lease term.

Amortization expense was approximately $0.7 million, $0.8 million and $0.6 million for the years ended December 31, 2013, 2012 and 2011, respectively.

In March 2014 the Company borrowed $0.9 million in a three year sale leaseback transaction at an effective interest rate of 3%.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

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