Summary of Significant Accounting Policies and Basis of Presentation (Tables)

12 Months Ended

Dec. 31, 2017

Reconciliation of Changes in Accrued Warranty Costs

The Company accrues warranty obligations for products sold based on management estimates of future failure rates and current claim cost experience, with support from the sales, engineering, quality and legal functions. Using historical information available to the Company, including claims already filed by customers, the warranty accrual is adjusted quarterly to reflect management’s best estimate of future claims. The following is a reconciliation of the changes in accrued warranty costs for the reporting period:


	December 31,
	2017			2016
Balance at beginning of year	$	5,443		$	4,558
Warranty claims paid or retired		(979	)		(1,096	)
Expense		507			2,053
Adjustment due to currency translation		411			(72	)
Balance at end of year	$	5,382		$	5,443

Reconciliation of Changes in Inventory Reserve

The Company’s inventory is measured at the lower of cost or market, with cost being determined using the first-in first-out basis. Raw materials, consumables and commodities are measured at cost of purchase and unfinished and finished goods are measured at cost of production, using the weighted average method. If the net realizable value expected on the reporting date is below cost, a write-down is recorded to adjust inventory to its net realizable value. We recognize a reserve for obsolete and slow moving inventories based on estimates of future sales and an inventory item’s capacity to be repurposed for a different use. We consider the number of months supply on hand based on current planned requirements, uncommitted future projections and historical usage in estimating the inventory reserve. Additional provisions are made for supplier claims for obsolete materials, prototype inventory, spare or customer service inventory and, for all periods other than at year-end, estimates for physical inventory adjustments.

The following is a reconciliation of the changes in the inventory reserve:

	December 31,
	2017			2016
Balance at beginning of year	$	4,790		$	4,308
Expense		3,521			876
Inventory write off		(726	)		(326	)
Adjustment due to currency translation		302			(68	)
Balance at end of year	$	7,887		$	4,790

Estimated Useful Lives of Property and Equipment

Depreciation and amortization are computed using the straight-line method. The estimated useful lives of the Company’s property and equipment are as follows:

Asset Category		Useful Life
Buildings and building improvements		5 to 50 years
Plant and Equipment		1 to 20 years
Production tooling		2 to 7 years
Leasehold improvements		Term of lease
Computer equipment and software		1 to 10 years
Capital Leases		Term of lease

Roll Forward of Goodwill from Acquisition

Goodwill and other intangible assets recorded in conjunction with business combinations are based on the Company’s estimate of fair value, as of the date of acquisition. A roll forward of goodwill from December 31, 2015 to December 31, 2017 is as follows:

December 31, 2015	$	27,765
Goodwill arising from the acquisition of CSZ		24,622
Exchange rate impact		(652	)
December 31, 2016	$	51,735
Goodwill arising from the acquisition of Etratech		14,866
Exchange rate impact		3,084
December 31, 2017	$	69,685

Fair Value and Corresponding Useful Lives for Acquired Intangibles Assets

The fair value and corresponding useful lives for acquired intangible assets are listed below as follows:

Asset Category		Useful Life
Customer relationships		8-15 years
Technology		5-10 years
Production Development Costs		4 years

W.E.T

Estimate of Total Intangible Asset Amortization

An estimate of intangible asset amortization by year, is as follows:

2018	$	12,968
2019		10,041
2020		8,230
2021		10,762
2022		10,334
Thereafter		30,950