0001017303 2018-01-01 2018-12-31 0001017303 2018-06-30 0001017303 2019-02-28 0001017303 2018-12-31 0001017303 2017-12-31 0001017303 us-gaap:SeriesAPreferredStockMember 2018-12-31 0001017303 us-gaap:SeriesAPreferredStockMember 2017-12-31 0001017303 2017-01-01 2017-12-31 0001017303 2016-01-01 2016-12-31 0001017303 us-gaap:CommonStockMember 2015-12-31 0001017303 2015-12-31 0001017303 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2015-12-31 0001017303 us-gaap:RetainedEarningsMember 2015-12-31 0001017303 us-gaap:TreasuryStockMember 2015-12-31 0001017303 us-gaap:AdditionalPaidInCapitalMember 2015-12-31 0001017303 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-01-01 2018-12-31 0001017303 us-gaap:RetainedEarningsMember 2016-01-01 2016-12-31 0001017303 us-gaap:TreasuryStockMember 2018-01-01 2018-12-31 0001017303 us-gaap:CommonStockMember 2018-01-01 2018-12-31 0001017303 us-gaap:CommonStockMember 2017-01-01 2017-12-31 0001017303 us-gaap:AdditionalPaidInCapitalMember 2018-01-01 2018-12-31 0001017303 us-gaap:CommonStockMember 2016-01-01 2016-12-31 0001017303 us-gaap:TreasuryStockMember 2016-01-01 2016-12-31 0001017303 us-gaap:RetainedEarningsMember 2018-01-01 2018-12-31 0001017303 us-gaap:RetainedEarningsMember 2017-01-01 2017-12-31 0001017303 us-gaap:TreasuryStockMember 2017-01-01 2017-12-31 0001017303 us-gaap:AdditionalPaidInCapitalMember 2016-01-01 2016-12-31 0001017303 us-gaap:AdditionalPaidInCapitalMember 2017-01-01 2017-12-31 0001017303 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2017-01-01 2017-12-31 0001017303 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2016-01-01 2016-12-31 0001017303 us-gaap:AdditionalPaidInCapitalMember 2016-12-31 0001017303 us-gaap:RetainedEarningsMember 2017-12-31 0001017303 us-gaap:TreasuryStockMember 2018-12-31 0001017303 us-gaap:RetainedEarningsMember 2018-12-31 0001017303 us-gaap:TreasuryStockMember 2017-12-31 0001017303 us-gaap:CommonStockMember 2016-12-31 0001017303 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-12-31 0001017303 us-gaap:RetainedEarningsMember 2016-12-31 0001017303 us-gaap:AdditionalPaidInCapitalMember 2017-12-31 0001017303 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2016-12-31 0001017303 us-gaap:TreasuryStockMember 2016-12-31 0001017303 us-gaap:AdditionalPaidInCapitalMember 2018-12-31 0001017303 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2017-12-31 0001017303 us-gaap:CommonStockMember 2018-12-31 0001017303 us-gaap:CommonStockMember 2017-12-31 0001017303 2016-12-31 0001017303 us-gaap:ToolsDiesAndMoldsMember 2018-01-01 2018-12-31 0001017303 srt:MinimumMember tact:ComputerSoftwareAndEquipmentMember 2018-01-01 2018-12-31 0001017303 us-gaap:MachineryAndEquipmentMember 2018-01-01 2018-12-31 0001017303 srt:MinimumMember tact:FurnitureAndOfficeEquipmentMember 2018-01-01 2018-12-31 0001017303 tact:ComputerSoftwareAndEquipmentMember srt:MaximumMember 2018-01-01 2018-12-31 0001017303 tact:FurnitureAndOfficeEquipmentMember srt:MaximumMember 2018-01-01 2018-12-31 0001017303 tact:InternationalMember tact:PrintrexMember 2018-01-01 2018-12-31 0001017303 country:US tact:POSAutomationAndBankingMember 2018-01-01 2018-12-31 0001017303 tact:InternationalMember 2018-01-01 2018-12-31 0001017303 tact:RestaurantSolutionsMember country:US 2018-01-01 2018-12-31 0001017303 country:US tact:CasinoAndGamingMember 2018-01-01 2018-12-31 0001017303 tact:TransActServicesGroupMember country:US 2018-01-01 2018-12-31 0001017303 tact:RestaurantSolutionsMember 2018-01-01 2018-12-31 0001017303 country:US tact:LotteryMember 2018-01-01 2018-12-31 0001017303 tact:CasinoAndGamingMember 2018-01-01 2018-12-31 0001017303 country:US 2018-01-01 2018-12-31 0001017303 tact:CasinoAndGamingMember tact:InternationalMember 2018-01-01 2018-12-31 0001017303 tact:InternationalMember tact:TransActServicesGroupMember 2018-01-01 2018-12-31 0001017303 tact:POSAutomationAndBankingMember 2018-01-01 2018-12-31 0001017303 tact:InternationalMember tact:POSAutomationAndBankingMember 2018-01-01 2018-12-31 0001017303 tact:TransActServicesGroupMember 2018-01-01 2018-12-31 0001017303 tact:InternationalMember tact:LotteryMember 2018-01-01 2018-12-31 0001017303 tact:PrintrexMember 2018-01-01 2018-12-31 0001017303 tact:LotteryMember 2018-01-01 2018-12-31 0001017303 tact:PrintrexMember country:US 2018-01-01 2018-12-31 0001017303 tact:InternationalMember tact:RestaurantSolutionsMember 2018-01-01 2018-12-31 0001017303 2019-01-01 2018-12-31 0001017303 2020-01-01 2018-12-31 0001017303 2021-01-01 2018-12-31 0001017303 us-gaap:SalesRevenueNetMember tact:InternationalGameTechnologyPLCMember 2018-01-01 2018-12-31 0001017303 us-gaap:CustomerConcentrationRiskMember us-gaap:AccountsReceivableMember tact:InternationalGameTechnologyPLCMember 2018-01-01 2018-12-31 0001017303 tact:SuzoHappMember us-gaap:AccountsReceivableMember us-gaap:CustomerConcentrationRiskMember 2017-01-01 2017-12-31 0001017303 us-gaap:CustomerConcentrationRiskMember us-gaap:AccountsReceivableMember tact:SuzoHappMember 2018-01-01 2018-12-31 0001017303 tact:InternationalGameTechnologyPLCMember us-gaap:SalesRevenueNetMember 2016-01-01 2016-12-31 0001017303 us-gaap:AccountsReceivableMember tact:InternationalGameTechnologyPLCMember us-gaap:CustomerConcentrationRiskMember 2017-01-01 2017-12-31 0001017303 us-gaap:SalesRevenueNetMember tact:SuzoHappMember 2018-01-01 2018-12-31 0001017303 us-gaap:SalesRevenueNetMember tact:SuzoHappMember 2017-01-01 2017-12-31 0001017303 tact:InternationalGameTechnologyPLCMember us-gaap:SalesRevenueNetMember 2017-01-01 2017-12-31 0001017303 tact:SuzoHappMember us-gaap:SalesRevenueNetMember 2016-01-01 2016-12-31 0001017303 tact:ComputerSoftwareAndEquipmentMember 2017-12-31 0001017303 us-gaap:LeaseholdImprovementsMember 2018-12-31 0001017303 us-gaap:MachineryAndEquipmentMember 2018-12-31 0001017303 us-gaap:ConstructionInProgressMember 2017-12-31 0001017303 us-gaap:ConstructionInProgressMember 2018-12-31 0001017303 tact:FurnitureAndOfficeEquipmentMember 2018-12-31 0001017303 us-gaap:LeaseholdImprovementsMember 2017-12-31 0001017303 tact:FurnitureAndOfficeEquipmentMember 2017-12-31 0001017303 tact:ComputerSoftwareAndEquipmentMember 2018-12-31 0001017303 us-gaap:MachineryAndEquipmentMember 2017-12-31 0001017303 tact:FixedAssetsExcludingConstructionInProcessMember 2017-12-31 0001017303 tact:FixedAssetsExcludingConstructionInProcessMember 2018-12-31 0001017303 us-gaap:OtherIntangibleAssetsMember 2017-12-31 0001017303 us-gaap:TrademarksMember 2017-12-31 0001017303 us-gaap:TechnologyBasedIntangibleAssetsMember 2017-12-31 0001017303 us-gaap:TechnologyBasedIntangibleAssetsMember 2018-12-31 0001017303 us-gaap:NoncompeteAgreementsMember 2017-12-31 0001017303 us-gaap:TrademarksMember 2018-12-31 0001017303 us-gaap:OtherIntangibleAssetsMember 2018-12-31 0001017303 us-gaap:PatentsMember 2018-12-31 0001017303 us-gaap:CustomerRelationshipsMember 2018-12-31 0001017303 us-gaap:PatentsMember 2017-12-31 0001017303 us-gaap:CustomerRelationshipsMember 2017-12-31 0001017303 us-gaap:NoncompeteAgreementsMember 2018-12-31 0001017303 tact:TDBankNAMember us-gaap:RevolvingCreditFacilityMember 2018-12-31 0001017303 us-gaap:RevolvingCreditFacilityMember tact:TDBankNAMember 2018-01-01 2018-12-31 0001017303 us-gaap:PrimeRateMember tact:TDBankNAMember us-gaap:RevolvingCreditFacilityMember 2018-01-01 2018-12-31 0001017303 tact:TDBankNAMember us-gaap:RevolvingCreditFacilityMember 2014-11-26 0001017303 us-gaap:RevolvingCreditFacilityMember tact:TDBankNAMember 2017-11-22 0001017303 tact:EquipmentAndRealPropertyMember 2016-01-01 2016-12-31 0001017303 tact:EquipmentAndRealPropertyMember 2017-01-01 2017-12-31 0001017303 tact:EquipmentAndRealPropertyMember 2018-01-01 2018-12-31 0001017303 tact:EquipmentAndRealPropertyMember 2018-12-31 0001017303 us-gaap:EmployeeStockOptionMember 2018-01-01 2018-12-31 0001017303 srt:MinimumMember us-gaap:EmployeeStockOptionMember 2018-01-01 2018-12-31 0001017303 us-gaap:EmployeeStockOptionMember srt:MaximumMember 2018-01-01 2018-12-31 0001017303 tact:EquityIncentivePlan2014Member 2018-12-31 0001017303 us-gaap:EmployeeStockOptionMember tact:EquityIncentivePlan2014Member 2018-12-31 0001017303 us-gaap:RestrictedStockUnitsRSUMember tact:EquityIncentivePlan2014Member 2018-12-31 0001017303 us-gaap:EmployeeStockOptionMember tact:EquityIncentivePlan2014Member 2016-12-31 0001017303 us-gaap:EmployeeStockOptionMember tact:EquityIncentivePlan2014Member 2017-12-31 0001017303 tact:EquityIncentivePlan2014Member us-gaap:RestrictedStockUnitsRSUMember 2016-12-31 0001017303 us-gaap:RestrictedStockUnitsRSUMember tact:EquityIncentivePlan2014Member 2017-12-31 0001017303 tact:EquityIncentivePlan2014Member 2017-01-01 2017-12-31 0001017303 tact:EquityIncentivePlan2014Member 2018-01-01 2018-12-31 0001017303 tact:EquityIncentivePlan2014Member 2016-01-01 2016-12-31 0001017303 us-gaap:EmployeeStockOptionMember tact:EquityIncentivePlan2014Member 2018-01-01 2018-12-31 0001017303 us-gaap:GeneralAndAdministrativeExpenseMember 2016-01-01 2016-12-31 0001017303 us-gaap:GeneralAndAdministrativeExpenseMember 2017-01-01 2017-12-31 0001017303 us-gaap:GeneralAndAdministrativeExpenseMember 2018-01-01 2018-12-31 0001017303 tact:EquityIncentivePlan2005AndEquityIncentivePlan2014Member us-gaap:EmployeeStockOptionMember 2017-12-31 0001017303 tact:EquityIncentivePlan2005AndEquityIncentivePlan2014Member us-gaap:RestrictedStockUnitsRSUMember 2017-12-31 0001017303 tact:EquityIncentivePlan2005AndEquityIncentivePlan2014Member us-gaap:RestrictedStockUnitsRSUMember 2018-01-01 2018-12-31 0001017303 us-gaap:EmployeeStockOptionMember tact:EquityIncentivePlan2005AndEquityIncentivePlan2014Member 2018-01-01 2018-12-31 0001017303 tact:EquityIncentivePlan2005AndEquityIncentivePlan2014Member us-gaap:RestrictedStockUnitsRSUMember 2018-12-31 0001017303 us-gaap:EmployeeStockOptionMember tact:EquityIncentivePlan2005AndEquityIncentivePlan2014Member 2018-12-31 0001017303 us-gaap:EmployeeStockOptionMember 2018-12-31 0001017303 tact:EquityIncentivePlan2005AndEquityIncentivePlan2014Member 2016-12-31 0001017303 us-gaap:EmployeeStockOptionMember tact:EquityIncentivePlan2005AndEquityIncentivePlan2014Member 2016-12-31 0001017303 us-gaap:EmployeeStockOptionMember tact:EquityIncentivePlan2005AndEquityIncentivePlan2014Member 2016-01-01 2016-12-31 0001017303 tact:EquityIncentivePlan2005AndEquityIncentivePlan2014Member 2018-12-31 0001017303 us-gaap:DeferredCompensationShareBasedPaymentsMember tact:ChiefExecutiveOfficerAndChiefFinancialOfficerMember 2016-02-01 2016-02-29 0001017303 us-gaap:DeferredCompensationShareBasedPaymentsMember tact:ChiefExecutiveOfficerAndChiefFinancialOfficerMember 2016-01-01 2016-12-31 0001017303 us-gaap:DeferredCompensationShareBasedPaymentsMember tact:ChiefExecutiveOfficerAndChiefFinancialOfficerMember 2018-01-01 2018-12-31 0001017303 srt:MaximumMember 2017-01-01 2017-12-31 0001017303 us-gaap:DomesticCountryMember 2018-12-31 0001017303 us-gaap:StateAndLocalJurisdictionMember 2018-12-31 0001017303 us-gaap:ResearchMember 2018-12-31 0001017303 us-gaap:ValuationAllowanceOperatingLossCarryforwardsMember 2017-12-31 0001017303 us-gaap:ValuationAllowanceOperatingLossCarryforwardsMember 2015-12-31 0001017303 us-gaap:ValuationAllowanceOperatingLossCarryforwardsMember 2016-12-31 0001017303 us-gaap:ValuationAllowanceOperatingLossCarryforwardsMember 2018-01-01 2018-12-31 0001017303 us-gaap:ValuationAllowanceOperatingLossCarryforwardsMember 2017-01-01 2017-12-31 0001017303 us-gaap:ValuationAllowanceOperatingLossCarryforwardsMember 2016-01-01 2016-12-31 0001017303 us-gaap:ValuationAllowanceOperatingLossCarryforwardsMember 2018-12-31 0001017303 2018-03-01 0001017303 2005-01-01 2018-12-31 0001017303 tact:StockRepurchaseProgram2018Member 2018-03-02 2018-12-31 0001017303 tact:StockRepurchaseProgram2016Member 2016-02-25 2017-12-31 0001017303 srt:ReportableGeographicalComponentsMember country:US 2017-01-01 2017-12-31 0001017303 srt:ReportableGeographicalComponentsMember tact:InternationalMember 2016-01-01 2016-12-31 0001017303 tact:InternationalMember srt:ReportableGeographicalComponentsMember 2018-01-01 2018-12-31 0001017303 srt:ReportableGeographicalComponentsMember tact:InternationalMember 2017-01-01 2017-12-31 0001017303 country:US srt:ReportableGeographicalComponentsMember 2018-01-01 2018-12-31 0001017303 srt:ReportableGeographicalComponentsMember country:US 2016-01-01 2016-12-31 0001017303 srt:ReportableGeographicalComponentsMember country:US 2017-12-31 0001017303 tact:InternationalMember srt:ReportableGeographicalComponentsMember 2016-12-31 0001017303 country:US srt:ReportableGeographicalComponentsMember 2018-12-31 0001017303 srt:ReportableGeographicalComponentsMember tact:InternationalMember 2017-12-31 0001017303 tact:InternationalMember srt:ReportableGeographicalComponentsMember 2018-12-31 0001017303 srt:ReportableGeographicalComponentsMember country:US 2016-12-31 0001017303 us-gaap:GeographicConcentrationRiskMember tact:InternationalMember us-gaap:SalesRevenueNetMember 2016-01-01 2016-12-31 0001017303 us-gaap:SalesRevenueNetMember us-gaap:GeographicConcentrationRiskMember country:CA 2016-01-01 2016-12-31 0001017303 us-gaap:GeographicConcentrationRiskMember us-gaap:SalesRevenueNetMember tact:InternationalMember 2018-01-01 2018-12-31 0001017303 country:CA us-gaap:GeographicConcentrationRiskMember us-gaap:SalesRevenueNetMember 2018-01-01 2018-12-31 0001017303 srt:EuropeMember us-gaap:GeographicConcentrationRiskMember us-gaap:SalesRevenueNetMember 2016-01-01 2016-12-31 0001017303 us-gaap:GeographicConcentrationRiskMember us-gaap:SalesRevenueNetMember country:CA 2017-01-01 2017-12-31 0001017303 us-gaap:SalesRevenueNetMember us-gaap:GeographicConcentrationRiskMember srt:EuropeMember 2017-01-01 2017-12-31 0001017303 us-gaap:SalesRevenueNetMember srt:EuropeMember us-gaap:GeographicConcentrationRiskMember 2018-01-01 2018-12-31 0001017303 tact:PacificRimMember us-gaap:GeographicConcentrationRiskMember us-gaap:SalesRevenueNetMember 2018-01-01 2018-12-31 0001017303 tact:PacificRimMember us-gaap:SalesRevenueNetMember us-gaap:GeographicConcentrationRiskMember 2016-01-01 2016-12-31 0001017303 us-gaap:GeographicConcentrationRiskMember tact:PacificRimMember us-gaap:SalesRevenueNetMember 2017-01-01 2017-12-31 0001017303 us-gaap:SalesRevenueNetMember tact:InternationalMember us-gaap:GeographicConcentrationRiskMember 2017-01-01 2017-12-31 0001017303 2018-01-01 2018-03-31 0001017303 2017-10-01 2017-12-31 0001017303 2018-07-01 2018-09-30 0001017303 2017-04-01 2017-06-30 0001017303 2018-10-01 2018-12-31 0001017303 2017-07-01 2017-09-30 0001017303 2018-04-01 2018-06-30 0001017303 2017-01-01 2017-03-31 iso4217:USD xbrli:shares iso4217:USD xbrli:shares tact:Segment xbrli:pure tact:Plan false --12-31 2018-12-31 No No Yes Accelerated Filer 87900000 TRANSACT TECHNOLOGIES INC 0001017303 7450968 2018 FY 10-K false false false true <div style="font-family: 'Times New Roman', Times, serif; font-size: 9pt;"><div style="text-align: justify; line-height: 10.25pt; font-family: 'Times New Roman', Times, serif; font-size: 10pt; font-weight: bold;">6. Accrued liabilities</div><div style="text-align: justify; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div><div style="text-align: left; line-height: 10.25pt; font-family: 'Times New Roman', Times, serif; font-size: 10pt;">The components of accrued liabilities are:</div><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div><table cellpadding="0" cellspacing="0" style="font-family: 'Times New Roman', Times, serif; font-size: 9pt; width: 100%;"><tr><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="6" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">December 31,</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-style: italic;">(In thousands)</font></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="2" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">2018</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="2" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">2017</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 76%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Salaries and compensation related</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">1,817</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">2,288</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 76%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Warranty</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">192</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">186</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 76%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Professional and consulting</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">231</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">209</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 76%; padding-bottom: 2px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Other</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">525</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">656</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 76%; padding-bottom: 4px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 double 4px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">2,765</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 double 4px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">3,339</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #CCEEFF;">&#160;</td></tr></table><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div></div> 3841000 3483000 3339000 2765000 209000 231000 19752000 20518000 -82000 -99000 32129000 31353000 -268000 0 1000 0 0 0 0 0 0 0 0 0 1000 -268000 0 -29000 -29000 0 202000 0 0 202000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 609000 629000 0 0 0 0 611000 0 0 609000 0 611000 0 629000 0 974000 703000 1041000 <div style="font-family: 'Times New Roman', Times, serif; font-size: 9pt;"><div style="text-align: justify; line-height: 10.25pt; font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; font-style: italic;">Advertising:</font>&#160;&#160;Advertising costs are expensed as incurred.&#160;&#160;Advertising expenses, which are included in selling and marketing expense on the accompanying Consolidated Statements of Income, for 2018, 2017, and 2016 totaled $1.0 million, $1.0 million and $0.7 million, respectively. These expenses include items such as consulting and professional services, tradeshows, and print advertising.</div><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div></div> 611000 609000 629000 50000 50000 100000 205000 128000 237000 343000 341000 149000 34956000 33950000 26361000 27037000 7589000 7919000 <div style="font-family: 'Times New Roman', Times, serif; font-size: 9pt;"><div style="text-align: justify; line-height: 10.25pt; font-family: 'Times New Roman', Times, serif; font-size: 10pt; font-weight: bold;">2. Summary of significant accounting policies</div><div style="text-align: justify; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div><div style="text-align: justify; line-height: 10.25pt; font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; font-style: italic;">Principles of consolidation:</font>&#160;&#160;The accompanying Consolidated Financial Statements include the accounts of TransAct and its wholly-owned subsidiaries, which require consolidation, after the elimination of intercompany accounts, transactions and unrealized profit.</div><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div><div style="text-align: justify; line-height: 10.25pt; font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; font-style: italic;">Use of estimates</font><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold;">:</font>&#160;&#160;The preparations of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (&#8220;GAAP&#8221;) requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses, and disclosure of contingent assets and liabilities as of the date of the Consolidated Financial Statements and the reported amounts of sales and expenses during the reporting period. Actual results could differ from those estimates.</div><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div><div style="text-align: justify; line-height: 10.25pt; font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; font-style: italic;">Segment reporting</font><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold;">: </font>We apply the provisions of the Financial Accounting Standards Board (&#8220;FASB&#8221;) Accounting Standards Codification (&#8220;ASC&#8221;) 280, &#8220;Segment Reporting.&#8221;&#160;&#160;We view our operations and manage our business as one segment: the design, development and marketing of software-driven technology and printing solutions and providing printer and terminal related software, services, supplies and spare parts.&#160;&#160;Factors used to identify TransAct&#8217;s single operating segment include the organizational structure of the Company and the financial information available for evaluation by the chief operating decision-maker in making decisions about how to allocate resources and assess performance.</div><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div><div style="text-align: justify; line-height: 10.25pt; font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; font-style: italic;">Cash and cash equivalents</font><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold;">:</font>&#160;&#160;We consider all highly liquid investments with a maturity date of three months or less at date of purchase to be cash equivalents.</div><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div><div style="text-align: justify; line-height: 10.25pt; font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; font-style: italic;">Allowance for doubtful accounts</font><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold;">:</font>&#160;&#160;We establish an allowance for doubtful accounts to ensure trade receivables are valued appropriately. We maintain an allowance for doubtful accounts based on a variety of factors, including the length of time receivables are past due, significant one-time events and historical experience.&#160;&#160;We record a specific allowance for individual accounts when we become aware of a customer&#8217;s inability to meet its financial obligations, such as in the case of bankruptcy filings or deterioration in the customer&#8217;s operating results or financial position.&#160;&#160;If circumstances related to customers change, we would further adjust estimates of the recoverability of receivables.&#160;&#160;Allowances for doubtful accounts on accounts receivable balances were $205 thousand and $100 thousand as of December 31, 2018 and 2017, respectively.</div><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div><div style="text-align: left; line-height: 10.25pt; font-family: 'Times New Roman', Times, serif; font-size: 10pt;">The following table summarizes the activity recorded in the valuation account for accounts receivable:</div><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div><table cellpadding="0" cellspacing="0" style="font-family: 'Times New Roman', Times, serif; font-size: 9pt; width: 100%;"><tr><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="10" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Year Ended December 31,</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;"><div style="text-align: justify; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">(In thousands)</font></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="2" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">2018</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="2" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">2017</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="2" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">2016</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 64%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Balance, beginning of period</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">100</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">50</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">50</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 64%; padding-bottom: 2px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Additions charged to costs and expenses</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">105</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">50</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#8211;</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 64%; padding-bottom: 4px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Balance, end of period</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 double 4px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">205</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 double 4px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">100</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 double 4px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">50</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #CCEEFF;">&#160;</td></tr></table><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div><div style="text-align: justify; line-height: 10.25pt; font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; font-style: italic;">Inventories:</font>&#160;&#160;Inventories are stated at the lower of cost (principally standard cost, which approximates actual cost on a first-in, first-out basis) or net realizable value.&#160;&#160;We review net realizable value based on estimated selling prices in the ordinary course of business less estimated costs of completions, disposal and transportation, historical usage and estimates of future demand.&#160;&#160;Based on these reviews, inventory write-downs are recorded, as necessary, to reflect estimated obsolescence, excess quantities and net realizable value.&#160;&#160;</div><div style="text-align: justify; line-height: 10.25pt; font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; font-style: italic;">Fixed assets:</font>&#160;&#160;Fixed assets are stated at cost.&#160;&#160;Depreciation is recorded using the straight-line method over the estimated useful lives.&#160;&#160;The estimated useful life of tooling is five years; machinery and equipment is ten years; furniture and office equipment is five to ten years; and computer software and equipment is three to seven years.&#160;&#160;Leasehold improvements are amortized over the shorter of the term of the lease or the useful life of the asset.&#160;&#160;Costs related to repairs and maintenance are expensed as incurred.&#160;&#160;The costs of sold or retired assets are removed from the related asset and accumulated depreciation accounts and any gain or loss is recognized.&#160;&#160;Depreciation expense was $870 thousand, $844 thousand and $987 thousand in 2018, 2017, and 2016, respectively.</div><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div><div style="text-align: justify; line-height: 10.25pt; font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; font-style: italic;">Leases:</font>&#160;&#160;Rent expense under non-cancelable operating leases with scheduled rent increases or free rent periods are accounted for on a straight-line basis over the lease term, beginning on the date of control of physical use of the asset or of initial possession.&#160;&#160;The amount of the excess of straight-line rent expense over scheduled payments is recorded as a deferred liability.&#160;&#160;Construction allowances and other such lease incentives are recorded as deferred credits, and are amortized on a straight-line basis as a reduction of rent expense beginning in the period they are deemed to be earned, which generally coincides with the occupancy date.</div><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div><div style="text-align: justify; line-height: 10.25pt; font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; font-style: italic;">Goodwill and Intangible assets</font><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold;">:</font>&#160;We acquire businesses in purchase transactions that result in the recognition of goodwill and intangible assets. The determination of the value of intangible assets requires management to make estimates and assumptions. In accordance with ASC 350-20 &#8220;Goodwill&#8221;, acquired goodwill is not amortized but is subject to impairment testing at least annually and when an event occurs or circumstances change, that indicate it is more likely than not an impairment exists. Factors considered that may trigger an impairment review of either acquired goodwill or intangible assets are: significant underperformance relative to expected historical or projected future operating results; significant changes in the manner of use of acquired assets or the strategy for the overall business; significant negative industry or economic trends; and significant decline in market capitalization relative to net book value. Finite lived intangible assets are amortized and are tested for impairment when appropriate. We have determined that no goodwill or intangible asset impairment has occurred and the fair value of goodwill was substantially higher than our carrying value based on our assessment as of December 31, 2018 when the impairment review is performed.</div><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div><div style="text-align: justify; line-height: 10.25pt; margin-bottom: 8pt; font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; font-style: italic;">Revenue recognition:</font>&#160;ASU No. 2014-09, "Revenue from Contracts with Customers&#8221; and its related amendments (collectively, ASC 606) are effective for reporting periods beginning after December 15, 2017, and interim periods therein.&#160; This ASU is intended to clarify the principles for recognizing revenue by removing inconsistencies in revenue requirements; providing a more robust framework for addressing revenue issues; improving comparability of revenue recognition practices across entities, industries, jurisdictions and capital markets; and providing more useful information to users of financial statements through improved revenue disclosure requirements.&#160; Entities have the option of using either a full retrospective approach or modified retrospective approach to adopt the amended guidance.&#160; We adopted ASC 606 effective January 1, 2018 and elected the modified retrospective approach.&#160; The results for periods before 2018 were not adjusted for the new standard and there was no cumulative effect for the change in accounting at the date of adoption.</div><div style="text-align: justify; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">In accordance with ASC 606, a performance obligation is a promise in a contract with a customer to transfer a distinct good or service to the customer. Some of our contracts with customers contain a single performance obligation, while other contracts contain multiple performance obligations (most commonly when contracts include product and extended warranties). A contract's transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. When there are multiple performance obligations within a contract, we allocate the transaction price to each performance obligation based on its standalone selling price.</font></div><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div><div style="text-align: justify; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">The transaction price is determined based on the consideration to which the Company will be entitled in exchange for transferring services to the customer. To the extent the transaction price includes variable consideration, such as price protection, reserves for returns and other allowances, the Company estimates the amount of variable consideration that should be included in the transaction price utilizing either the &#8220;expected value&#8221; method or the &#8220;most likely amount&#8221; method depending on the nature of the variable consideration. Variable consideration is included in the transaction price if, in the Company&#8217;s judgment, it is probable that a significant future reversal of cumulative revenue under the contract will not occur.</font></div><div style="text-align: justify; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;"></font><br style="line-height: 10.25pt;" /></div><div style="text-align: justify; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">For a majority of our revenue, which consists of printers, terminals, consumables, and replacement parts, the Company recognizes revenue as of a point of time.&#160; The transaction price is recognized upon shipment of the order when control of the goods is transferred to the customer and at the time the performance obligation is fulfilled.&#160; We also sell a software solution, EPICENTRAL&#8482;, that enables casino operators to create promotional coupons and marketing messages and to print them in real-time at the slot machine.&#160; EPICENTRAL^TM is primarily comprised of both a software component, which is licensed to the customer, and a hardware component.&#160; EPICENTRAL&#8482; software and hardware are integrated to deliver the system's full functionality.&#160; The transaction prices from EPICENTRAL&#8482; software license and hardware are recognized upon installation and formal acceptance by the customer when control of the license is transferred to the customer.&#160; For out-of-warranty repairs, the transaction price is recognized after completion of the repair work is completed and the printer or terminal is returned to the customer, as control of the product is transferred to the customer and our performance obligation is completed.</font></div><div style="text-align: justify; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;"></font><br style="line-height: 10.25pt;" /></div><div style="text-align: justify; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Performance obligations are satisfied over time if the customer receives the benefits as we perform work, if the customer controls the asset as it is being produced, or if the product being produced for the customer has no alternative use and we have a contractual right to payment. For our separately priced extended warranty, technical support for our restaurant solution terminals and maintenance agreements (including free one-year maintenance received by the customers upon completion of EPICENTRAL&#8482; installation) revenue is recognized over time as the customer receives the benefit.&#160; The transaction price from the maintenance services is recognized ratably over time, using output methods, as control of the services is transferred to the customer. For extended warranties, the transaction price is recognized ratably over the warranty period, using output methods, as control of the services is transferred to the customer.</font></div><div style="text-align: justify; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;"></font><br style="line-height: 10.25pt;" /></div><div style="text-align: justify; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">In the cases where there is more than one performance obligation in a customer arrangement, the Company typically uses the &#8220;standalone selling price&#8221; method to determine the transaction price to allocate to each performance obligation. The Company sells the performance obligations separately and has established standalone selling prices for its products and services. In the case of an overall price discount, the discount is applied to each performance obligation proportionately based on standalone selling price. To determine the standalone selling price for initial EPICENTRAL&#8482; installations, the Company uses the adjusted market assessment approach.</font></div><div style="text-align: justify; line-height: 10.25pt; font-family: 'Times New Roman', Times, serif; font-size: 10pt; font-weight: bold;">Disaggregation of revenue</div><div style="text-align: justify; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">The following table disaggregates our revenue by market-type, as we believe it best depicts how the nature, amount, timing and uncertainty of our revenue and cash flows are affected by economic factors.&#160; Sales and usage-based taxes are excluded from revenues.</font></div><div style="line-height: 11.05pt;"><br style="line-height: 11.05pt;" /></div><table cellpadding="0" cellspacing="0" style="font-family: 'Times New Roman', Times, serif; font-size: 9pt; width: 100%;"><tr><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="10" valign="bottom" style="vertical-align: top; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold;">Year Ended</font></div><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold;">December 31, 2018</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="2" valign="bottom" style="vertical-align: top; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">United States</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="2" valign="bottom" style="vertical-align: top; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">International</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="2" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Total</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom;">&#160;</td><td colspan="10" valign="bottom" style="vertical-align: top;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-style: italic;">(In thousands)</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 64%; background-color: #CCEEFF;"><div style="text-align: left; margin-left: 7.2pt; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Restaurant solutions</font></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">4,133</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">446</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">4,579</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 64%; background-color: #FFFFFF;"><div style="text-align: left; margin-left: 7.2pt; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">POS Automation and Banking</font></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">7,122</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">151</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">7,273</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 64%; background-color: #CCEEFF;"><div style="text-align: left; margin-left: 7.2pt; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Casino and Gaming</font></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">17,518</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">9,075</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">26,593</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 64%; background-color: #FFFFFF;"><div style="text-align: left; margin-left: 7.2pt; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Lottery</font></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">3,046</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">47</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">3,093</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 64%; background-color: #CCEEFF;"><div style="text-align: left; margin-left: 7.2pt; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Printrex</font></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">1,028</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">269</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">1,297</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 64%; padding-bottom: 2px; background-color: #FFFFFF;"><div style="text-align: left; margin-left: 7.2pt; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">TransAct Services Group</font></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">10,671</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">1,081</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">11,752</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 64%; padding-bottom: 4px; background-color: #CCEEFF;"><div style="text-align: left; margin-left: 16.2pt; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Total net sales</font></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #CCEEFF;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 double 4px; background-color: #CCEEFF;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">43,518</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #CCEEFF;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 double 4px; background-color: #CCEEFF;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">11,069</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #CCEEFF;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 double 4px; background-color: #CCEEFF;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">54,587</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #CCEEFF;">&#160;</td></tr></table><div style="line-height: 12.3pt;"><br style="line-height: 12.3pt;" /></div><div style="text-align: justify; line-height: 10.25pt; font-family: 'Times New Roman', Times, serif; font-size: 10pt; font-weight: bold;">Changes in accounting policies and financial statement impact of adopting ASC 606</div><div style="text-align: justify; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Except for the changes below, we have consistently applied the accounting policies to all periods presented in the consolidated financial statements.&#160; As noted above, we adopted ASC 606 using the modified retrospective approach which allows the Company to record any changes using the cumulative effect.&#160; The adoption of ASC 606 did not require the Company to record an adjustment to retained earnings at January 1, 2018, and did not have an impact on the consolidated income statement during the year ended December 31, 2018, basic or diluted earnings per share, consolidated statement of cash flows, consolidated statement of shareholder's equity, or consolidated balance sheet,&#160; at December 31, 2018.</font></div><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div><div style="text-align: justify; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-style: italic;">Costs to Obtain a Contract</font><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold;"> &#8211; </font>Costs to obtain a contract, such as sales commissions, were previously expensed as incurred. The Company applied the practical expedient for contracts with customers for a term of twelve months or less, in accordance with ASC 340-40-25-4, which allows TransAct to continue to expense sales commissions as incurred, since the expected amortization period of the cost to obtain a contract is less than 12 months.&#160; No amounts were capitalized as of the adoption of ASC 606 or as of December 31, 2018.</font></div><div style="line-height: 11.4pt;"><br style="line-height: 11.4pt;" /></div><div style="text-align: justify; line-height: 10.25pt; font-family: 'Times New Roman', Times, serif; font-size: 10pt; font-weight: bold;">Contract balances</div><div style="text-align: justify; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Our contract liabilities consist of customer pre-payments and deferred revenue.&#160; Customer prepayments are reported as &#8220;Accrued Liabilities&#8221; in current liabilities in the Condensed Consolidated Balance Sheets and represent customer payments made in advance of performance obligations in instances where credit has not been extended and is recognized as revenue when the performance obligation is complete.&#160; Deferred revenue is reported separately in current liabilities and non-current liabilities and consists of our extended warranty contracts, technical support for our restaurant solution terminals, EPICENTRAL&#8482; maintenance contracts and testing service contracts, and is recognized as revenue as (or when) we perform under the contract.&#160; The increase in current and non-current deferred revenue is due to the sale of extended warranties and technical support for our restaurant solution terminals.&#160; We do not have any contract asset balances as of December 31, 2018 or 2017.&#160; During the year ended December 31, 2018, we recognized revenue of $1.2 million related to our contract liabilities at January 1, 2018.&#160; Total contract liabilities consist of the following:</font></div><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div><table cellpadding="0" cellspacing="0" style="font-family: 'Times New Roman', Times, serif; font-size: 9pt; width: 100%;"><tr><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="2" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold;">December 31, 2018</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="2" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold;">January 1, 2018</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom;">&#160;</td><td colspan="6" valign="bottom" style="vertical-align: bottom;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-style: italic;">(In thousands)</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 76%; background-color: #CCEEFF;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Customer pre-payments</font></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold;">$</font></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold;">50</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">79</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 76%; background-color: #FFFFFF;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Deferred revenue, current</font></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold;">384</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">169</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 76%; padding-bottom: 2px; background-color: #CCEEFF;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Deferred revenue, non-current</font></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold;">265</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">69</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 76%; padding-bottom: 4px; background-color: #FFFFFF;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Total contract liabilities</font></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #FFFFFF;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold;">$</font></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 double 4px; background-color: #FFFFFF;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold;">699</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #FFFFFF;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 double 4px; background-color: #FFFFFF;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">317</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #FFFFFF;">&#160;</td></tr></table><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div><div style="text-align: justify; line-height: 10.25pt; font-family: 'Times New Roman', Times, serif; font-size: 10pt; font-weight: bold;">Remaining performance obligations</div><div style="text-align: justify; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Remaining performance obligations represent the transaction price of firm orders for which a good or service has not been delivered to our customer.&#160; As of December 31, 2018, the aggregate amount of the transaction price allocated to remaining performance obligations was $5.6 million.&#160; The Company expects to recognize revenue on $4.1 million of our remaining performance obligations within the next 12 months, $1.4 million within the next 24 months and the balance of these remaining performance obligations recognized within the next 36 months.</font></div><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div><div style="text-align: justify; line-height: 10.25pt; font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; font-style: italic;">Concentration of credit risk:</font>&#160;&#160;Financial instruments that potentially expose us to concentrations of credit risk are limited to cash and cash equivalents held by our banks in excess of insured limits and accounts receivable.</div><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div><div style="text-align: left; line-height: 10.25pt; font-family: 'Times New Roman', Times, serif; font-size: 10pt;">Accounts receivable from customers representing 10% or more of total accounts receivable were as follows:</div><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div><table cellpadding="0" cellspacing="0" style="font-family: 'Times New Roman', Times, serif; font-size: 9pt; width: 100%; border-collapse: collapse;"><tr><td style="width: 80.08%; vertical-align: bottom;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></td><td colspan="4" style="width: 19.92%; vertical-align: bottom; border-bottom: #000000 2px solid;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">December 31,</font></div></td></tr><tr><td style="width: 80.08%; vertical-align: bottom;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></td><td colspan="2" style="width: 9.95%; vertical-align: bottom; border-bottom: #000000 2px solid;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">2018</font></div></td><td style="width: 0.98%; vertical-align: bottom;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></td><td style="width: 8.98%; vertical-align: bottom; border-bottom: #000000 2px solid;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">2017</font></div></td></tr><tr><td style="width: 80.08%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">International Gaming Technology ("IGT")</font></div></div></td><td style="width: 0.98%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></div></td><td style="width: 8.97%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: right; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">21%</font></div></div></td><td style="width: 0.98%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></div></td><td style="width: 8.98%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: right; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">48%</font></div></div></td></tr><tr><td style="width: 80.08%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Suzo-Happ</font></div></div></td><td style="width: 0.98%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></div></td><td style="width: 8.97%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: right; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">0%</font></div></div></td><td style="width: 0.98%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></div></td><td style="width: 8.98%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: right; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">13%</font></div></div></td></tr></table><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Sales to customers representing 10% or more of total net sales were as follows:</font></div><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div><table cellpadding="0" cellspacing="0" style="font-family: 'Times New Roman', Times, serif; font-size: 9pt; width: 100%; border-collapse: collapse;"><tr><td style="width: 69.15%; vertical-align: bottom;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></td><td colspan="7" style="width: 30.85%; vertical-align: bottom; border-bottom: #000000 2px solid;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Year Ended December 31,</font></div></td></tr><tr><td style="width: 69.15%; vertical-align: bottom;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></td><td colspan="2" style="width: 9.96%; vertical-align: bottom; border-bottom: #000000 2px solid;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">2018</font></div></td><td style="width: 0.97%; vertical-align: bottom;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></td><td colspan="2" style="width: 9.95%; vertical-align: bottom; border-bottom: #000000 2px solid;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">2017</font></div></td><td style="width: 0.98%; vertical-align: bottom;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></td><td style="width: 8.98%; vertical-align: bottom; border-bottom: #000000 2px solid;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">2016</font></div></td></tr><tr><td style="width: 69.15%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">IGT</font></div></div></td><td style="width: 0.98%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></div></td><td style="width: 8.98%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: right; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">18%</font></div></div></td><td style="width: 0.97%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></div></td><td style="width: 0.98%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></div></td><td style="width: 8.97%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: right; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">35%</font></div></div></td><td style="width: 0.98%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></div></td><td style="width: 8.98%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: right; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">26%</font></div></div></td></tr><tr><td style="width: 69.15%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Suzo-Happ</font></div></div></td><td style="width: 0.98%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></div></td><td style="width: 8.98%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: right; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">1%</font></div></div></td><td style="width: 0.97%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></div></td><td style="width: 0.98%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></div></td><td style="width: 8.97%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: right; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">8%</font></div></div></td><td style="width: 0.98%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></div></td><td style="width: 8.98%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: right; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">15%</font></div></div></td></tr></table><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div><div style="text-align: justify; line-height: 10.25pt; font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; font-style: italic;">Warranty:</font>&#160;&#160;We generally warrant our products for up to 24 months and record the estimated cost of such product warranties at the time the sale is recorded.&#160;&#160;Estimated warranty costs are based upon actual past experience of product repairs and the related estimated cost of labor and material to make the necessary repairs.</div><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div><div style="text-align: left; line-height: 10.25pt; font-family: 'Times New Roman', Times, serif; font-size: 10pt;">The following table summarizes the activity recorded in the accrued product warranty liability:</div><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div><table cellpadding="0" cellspacing="0" style="font-family: 'Times New Roman', Times, serif; font-size: 9pt; width: 100%;"><tr><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="10" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Year Ended December 31,</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;"><div style="text-align: justify; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">(In thousands)</font></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="2" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">2018</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="2" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">2017</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="2" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">2016</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 64%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Balance, beginning of period</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">267</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">267</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">277</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 64%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Warranties issued</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">269</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">259</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">254</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 64%; padding-bottom: 2px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Warranty settlements</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">(263</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">)</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">(259</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">)</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">(264</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">)</font></div></div></td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 64%; padding-bottom: 4px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Balance, end of period</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 double 4px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">273</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 double 4px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">267</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 double 4px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">267</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #FFFFFF;">&#160;</td></tr></table><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div><div style="text-align: justify; line-height: 10.25pt; font-family: 'Times New Roman', Times, serif; font-size: 10pt;">$192 thousand and $186 thousand of the accrued product warranty liability were classified as current in Accrued liabilities at December 31, 2018 and 2017, respectively.&#160;&#160;The remaining $81 thousand of the accrued product warranty liability as of December 31, 2018 and 2017 is classified as long-term in Other liabilities.</div><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div><div style="text-align: justify; line-height: 10.25pt; font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; font-style: italic;">Engineering, design and product development:</font>&#160;&#160;Research and development ("R&amp;D") expenses include expenses incurred in connection with specialized engineering and design to introduce new products and to customize existing products, and are expensed as a component of operating expenses as incurred.&#160;&#160;We recorded $4.6 million, $4.3 million and $4.4 million of research and development expenses in 2018, 2017, and 2016, respectively.</div><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div><div style="text-align: justify; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Costs incurred in researching and developing a computer software product are charged to expense until technological feasibility has been established, at which point all material software costs are capitalized within Intangible assets in our Consolidated Balance Sheet until the product is available for general release to customers.&#160;&#160;While judgment is required in determining when technological feasibility of a product is established, we have determined that it is reached after all high-risk development issues have been documented in a formal detailed plan design.&#160;&#160;The amortization of these costs have been included in cost of sales over the estimated life of the product.&#160;&#160;During 2018, we contracted several third-parties to develop software for our restaurant solutions products.&#160; Unamortized development costs for such software were $586 thousand as of December 31, 2018.&#160;&#160;The total amount charged to cost of sales for capitalized software development costs was $30 thousand, $2 thousand and $29 thousand in 2018, 2017, and 2016, respectively.</font></div><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div><div style="text-align: justify; line-height: 10.25pt; font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; font-style: italic;">Advertising:</font>&#160;&#160;Advertising costs are expensed as incurred.&#160;&#160;Advertising expenses, which are included in selling and marketing expense on the accompanying Consolidated Statements of Income, for 2018, 2017, and 2016 totaled $1.0 million, $1.0 million and $0.7 million, respectively. These expenses include items such as consulting and professional services, tradeshows, and print advertising.</div><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div><div style="text-align: justify; line-height: 10.25pt; font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; font-style: italic;">Income taxes:</font>&#160;&#160;The income tax amounts reflected in the accompanying Consolidated Financial Statements are accounted for under the liability method in accordance with ASC 740, &#8220;Income Taxes.&#8221;&#160;&#160;Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards.&#160;&#160;Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which those temporary differences are expected to be recovered or settled.&#160;&#160;We assess the likelihood that net deferred tax assets will be realized from future taxable income, and to the extent that we believe that realization is not likely, we establish a valuation allowance.&#160;&#160;In accordance with ASC 740, we identified, evaluated and measured the amount of benefits to be recognized for our tax return positions.&#160;&#160;See Note 11 for information regarding our accounting for income taxes and additional provision items recorded in regards to the Tax Reform Act.</div><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div><div style="text-align: justify; line-height: 11.05pt; margin-bottom: 8pt; font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; font-style: italic;">Foreign currency translation:</font>&#160;&#160;The financial position and results of operations of our foreign subsidiary in the UK are measured using local currency as the functional currency.&#160;&#160;Assets and liabilities of such subsidiary have been translated into U.S. dollars at the year-end exchange rate, related sales and expenses have been translated at the exchange rate as of the date the transaction was recognized, and shareholders&#8217; equity has been translated at historical exchange rates.&#160;&#160;The resulting translation gains or losses, net of tax, are recorded in shareholders&#8217; equity as a cumulative translation adjustment, which is a component of accumulated other comprehensive income.&#160;&#160;Foreign currency transaction gains and losses, including those related to intercompany balances, are recognized in Other, net on the Consolidated Statements of Income.</div><div style="text-align: justify; line-height: 10.25pt; font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; font-style: italic;">Share-based payments:</font><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold;">&#160;</font>At December 31, 2018, we have share-based employee compensation plans, which are described more fully in Note 10 - Stock incentive plans.&#160;&#160;We account for those plans under the recognition and measurement principles of ASC 718, &#8220;Compensation &#8211; Stock Compensation.&#8221;&#160;&#160;Share-based compensation expense is measured at the grant date, based on the estimated fair value of the award, and is recognized as expense over the employee&#8217;s requisite service period.&#160;</div><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div><div style="text-align: justify; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">We use the Black-Scholes option-pricing model to calculate the fair value of share based awards.&#160;&#160;The key assumptions for this valuation method include the expected term of the option, stock price volatility, risk-free interest rate, dividend yield, market price of our underlying stock and exercise price.&#160;&#160;Many of these assumptions are judgmental and highly sensitive in the determination of compensation expense.&#160;&#160;Beginning in the first quarter of 2017, we recognize forfeitures as they occur.</font></div><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div><div style="text-align: justify; line-height: 11.05pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">In May&#160;2017, the FASB&#160;issued ASU&#160;No. 2017-09, "Compensation-Stock Compensation: Scope of modification accounting".&#160; ASU&#160;2017-09 provides guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718.&#160; ASU&#160;No. 2017-09 is effective for fiscal years beginning after December&#160;15, 2017.&#160; The amendments are applied prospectively to an award modified on or after the adoption date.&#160; We adopted this guidance in the first quarter of 2018 and the adoption has not resulted in a change to our financial statements.</font></div><div style="text-align: justify; line-height: 10.25pt; font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; font-style: italic;">Net income and loss per share:</font>&#160;&#160;We report net income or loss per share in accordance with ASC 260, &#8220;Earnings per Share (EPS).&#8221; Under this guidance, basic EPS, which excludes dilution, is computed by dividing income or loss available to common shareholders by the weighted average number of common shares outstanding for the period.&#160;&#160;Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock.&#160;&#160;Diluted EPS includes in-the-money stock options using the treasury stock method.&#160;&#160;During a loss period, the assumed exercise of in-the-money stock options has an anti-dilutive effect, and therefore, these instruments are excluded from the computation of dilutive EPS.&#160;&#160;See Note 12 - Earnings per share.</div><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div></div> 44000 21000 113000 30000 2000 29000 586000 <div style="font-family: 'Times New Roman', Times, serif; font-size: 9pt;"><div style="text-align: justify; line-height: 10.25pt; font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; font-style: italic;">Cash and cash equivalents</font><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold;">:</font>&#160;&#160;We consider all highly liquid investments with a maturity date of three months or less at date of purchase to be cash equivalents.</div><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div></div> -1970000 3004000 -816000 4691000 5507000 2503000 4473000 <div style="font-family: 'Times New Roman', Times, serif; font-size: 9pt;"><div style="text-align: justify; line-height: 10.25pt; font-family: 'Times New Roman', Times, serif; font-size: 10pt; font-weight: bold;">9. Commitments and contingencies</div><div style="text-align: justify; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div><div style="text-align: justify; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">At December 31, 2018, we were the lessee on operating leases for equipment and real property.&#160;&#160;Rent expense was $1.1 million, $1.1 million and $1.0 million in 2018, 2017, and 2016, respectively.&#160;&#160;Minimum aggregate rental payments required under operating leases that have initial or remaining non-cancelable lease terms in excess of one year as of December 31, 2018 are as follows: $1.0 million in 2019; $1.0 million in 2020; $0.7 million in 2021; $0.4 million in 2022, $0.3 million in 2023 and $0.9 million&#160; thereafter.</font></div><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div></div> 20000000 20000000 0.01 0.01 0.35 0.36 0.32 11463141 11366526 7782292 7478094 7418299 7333364 7418299 7478094 114000 115000 <div style="font-family: 'Times New Roman', Times, serif; font-size: 9pt;"><div style="text-align: justify; line-height: 10.25pt; font-family: 'Times New Roman', Times, serif; font-size: 10pt; font-weight: bold;">7. Retirement savings plan</div><div style="text-align: justify; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div><div style="text-align: justify; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">We maintain a 401(k) plan under which all full-time employees are eligible to participate at the beginning of each month immediately following their date of hire.&#160;&#160;We match employees&#8217; contributions at a rate of 50% of employees&#8217; contributions up to the first 6% of the employees&#8217; compensation contributed to the 401(k) plan.&#160;&#160;Our matching contributions were $237 thousand, $264 thousand and $295 thousand in 2018, 2017, and 2016, respectively.</font></div><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div></div> 3221000 3588000 5443000 <div style="font-family: 'Times New Roman', Times, serif; font-size: 9pt;"><div style="text-align: justify; line-height: 10.25pt; font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; font-style: italic;">Concentration of credit risk:</font>&#160;&#160;Financial instruments that potentially expose us to concentrations of credit risk are limited to cash and cash equivalents held by our banks in excess of insured limits and accounts receivable.</div><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div><div style="text-align: left; line-height: 10.25pt; font-family: 'Times New Roman', Times, serif; font-size: 10pt;">Accounts receivable from customers representing 10% or more of total accounts receivable were as follows:</div><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div><table cellpadding="0" cellspacing="0" style="font-family: 'Times New Roman', Times, serif; font-size: 9pt; width: 100%; border-collapse: collapse;"><tr><td style="width: 80.08%; vertical-align: bottom;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></td><td colspan="4" style="width: 19.92%; vertical-align: bottom; border-bottom: #000000 2px solid;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">December 31,</font></div></td></tr><tr><td style="width: 80.08%; vertical-align: bottom;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></td><td colspan="2" style="width: 9.95%; vertical-align: bottom; border-bottom: #000000 2px solid;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">2018</font></div></td><td style="width: 0.98%; vertical-align: bottom;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></td><td style="width: 8.98%; vertical-align: bottom; border-bottom: #000000 2px solid;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">2017</font></div></td></tr><tr><td style="width: 80.08%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">International Gaming Technology ("IGT")</font></div></div></td><td style="width: 0.98%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></div></td><td style="width: 8.97%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: right; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">21%</font></div></div></td><td style="width: 0.98%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></div></td><td style="width: 8.98%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: right; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">48%</font></div></div></td></tr><tr><td style="width: 80.08%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Suzo-Happ</font></div></div></td><td style="width: 0.98%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></div></td><td style="width: 8.97%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: right; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">0%</font></div></div></td><td style="width: 0.98%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></div></td><td style="width: 8.98%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: right; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">13%</font></div></div></td></tr></table><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Sales to customers representing 10% or more of total net sales were as follows:</font></div><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div><table cellpadding="0" cellspacing="0" style="font-family: 'Times New Roman', Times, serif; font-size: 9pt; width: 100%; border-collapse: collapse;"><tr><td style="width: 69.15%; vertical-align: bottom;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></td><td colspan="7" style="width: 30.85%; vertical-align: bottom; border-bottom: #000000 2px solid;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Year Ended December 31,</font></div></td></tr><tr><td style="width: 69.15%; vertical-align: bottom;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></td><td colspan="2" style="width: 9.96%; vertical-align: bottom; border-bottom: #000000 2px solid;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">2018</font></div></td><td style="width: 0.97%; vertical-align: bottom;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></td><td colspan="2" style="width: 9.95%; vertical-align: bottom; border-bottom: #000000 2px solid;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">2017</font></div></td><td style="width: 0.98%; vertical-align: bottom;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></td><td style="width: 8.98%; vertical-align: bottom; border-bottom: #000000 2px solid;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">2016</font></div></td></tr><tr><td style="width: 69.15%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">IGT</font></div></div></td><td style="width: 0.98%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></div></td><td style="width: 8.98%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: right; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">18%</font></div></div></td><td style="width: 0.97%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></div></td><td style="width: 0.98%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></div></td><td style="width: 8.97%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: right; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">35%</font></div></div></td><td style="width: 0.98%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></div></td><td style="width: 8.98%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: right; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">26%</font></div></div></td></tr><tr><td style="width: 69.15%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Suzo-Happ</font></div></div></td><td style="width: 0.98%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></div></td><td style="width: 8.98%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: right; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">1%</font></div></div></td><td style="width: 0.97%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></div></td><td style="width: 0.98%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></div></td><td style="width: 8.97%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: right; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">8%</font></div></div></td><td style="width: 0.98%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></div></td><td style="width: 8.98%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: right; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">15%</font></div></div></td></tr></table><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div></div> 0.18 0.21 0.13 0 0.26 0.48 0.01 0.08 0.35 0.15 0.2 0.08 0.2 0.06 0.56 0.18 0.44 0.56 0.36 0.34 0.32 0.14 <div style="font-family: 'Times New Roman', Times, serif; font-size: 9pt;"><div style="text-align: justify; line-height: 10.25pt; font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; font-style: italic;">Principles of consolidation:</font>&#160;&#160;The accompanying Consolidated Financial Statements include the accounts of TransAct and its wholly-owned subsidiaries, which require consolidation, after the elimination of intercompany accounts, transactions and unrealized profit.</div><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div></div> 1239000 69000 265000 317000 699000 384000 169000 <div style="font-family: 'Times New Roman', Times, serif; font-size: 9pt;"><div style="text-align: justify; line-height: 10.25pt; font-family: 'Times New Roman', Times, serif; font-size: 10pt; font-weight: bold;">Contract balances</div><div style="text-align: justify; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Our contract liabilities consist of customer pre-payments and deferred revenue.&#160; Customer prepayments are reported as &#8220;Accrued Liabilities&#8221; in current liabilities in the Condensed Consolidated Balance Sheets and represent customer payments made in advance of performance obligations in instances where credit has not been extended and is recognized as revenue when the performance obligation is complete.&#160; Deferred revenue is reported separately in current liabilities and non-current liabilities and consists of our extended warranty contracts, technical support for our restaurant solution terminals, EPICENTRAL&#8482; maintenance contracts and testing service contracts, and is recognized as revenue as (or when) we perform under the contract.&#160; The increase in current and non-current deferred revenue is due to the sale of extended warranties and technical support for our restaurant solution terminals.&#160; We do not have any contract asset balances as of December 31, 2018 or 2017.&#160; During the year ended December 31, 2018, we recognized revenue of $1.2 million related to our contract liabilities at January 1, 2018.&#160; Total contract liabilities consist of the following:</font></div><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div><table cellpadding="0" cellspacing="0" style="font-family: 'Times New Roman', Times, serif; font-size: 9pt; width: 100%;"><tr><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="2" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold;">December 31, 2018</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="2" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold;">January 1, 2018</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom;">&#160;</td><td colspan="6" valign="bottom" style="vertical-align: bottom;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-style: italic;">(In thousands)</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 76%; background-color: #CCEEFF;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Customer pre-payments</font></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold;">$</font></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold;">50</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">79</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 76%; background-color: #FFFFFF;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Deferred revenue, current</font></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold;">384</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">169</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 76%; padding-bottom: 2px; background-color: #CCEEFF;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Deferred revenue, non-current</font></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold;">265</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">69</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 76%; padding-bottom: 4px; background-color: #FFFFFF;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Total contract liabilities</font></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #FFFFFF;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold;">$</font></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 double 4px; background-color: #FFFFFF;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold;">699</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #FFFFFF;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 double 4px; background-color: #FFFFFF;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">317</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #FFFFFF;">&#160;</td></tr></table><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div></div> 29649000 27844000 33436000 85000 114000 70000 2444000 1147000 1848000 -49000 13000 2000 2379000 1049000 1776000 <div style="font-family: 'Times New Roman', Times, serif; font-size: 9pt;"><div style="text-align: justify; line-height: 10.25pt; font-family: 'Times New Roman', Times, serif; font-size: 10pt; font-weight: bold;">Disaggregation of revenue</div><div style="text-align: justify; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">The following table disaggregates our revenue by market-type, as we believe it best depicts how the nature, amount, timing and uncertainty of our revenue and cash flows are affected by economic factors.&#160; Sales and usage-based taxes are excluded from revenues.</font></div><div style="line-height: 11.05pt;"><br style="line-height: 11.05pt;" /></div><table cellpadding="0" cellspacing="0" style="font-family: 'Times New Roman', Times, serif; font-size: 9pt; width: 100%;"><tr><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="10" valign="bottom" style="vertical-align: top; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold;">Year Ended</font></div><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold;">December 31, 2018</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="2" valign="bottom" style="vertical-align: top; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">United States</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="2" valign="bottom" style="vertical-align: top; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">International</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="2" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Total</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom;">&#160;</td><td colspan="10" valign="bottom" style="vertical-align: top;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-style: italic;">(In thousands)</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 64%; background-color: #CCEEFF;"><div style="text-align: left; margin-left: 7.2pt; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Restaurant solutions</font></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">4,133</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">446</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">4,579</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 64%; background-color: #FFFFFF;"><div style="text-align: left; margin-left: 7.2pt; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">POS Automation and Banking</font></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">7,122</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">151</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">7,273</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 64%; background-color: #CCEEFF;"><div style="text-align: left; margin-left: 7.2pt; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Casino and Gaming</font></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">17,518</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">9,075</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">26,593</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 64%; background-color: #FFFFFF;"><div style="text-align: left; margin-left: 7.2pt; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Lottery</font></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">3,046</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">47</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">3,093</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 64%; background-color: #CCEEFF;"><div style="text-align: left; margin-left: 7.2pt; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Printrex</font></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">1,028</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">269</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">1,297</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 64%; padding-bottom: 2px; background-color: #FFFFFF;"><div style="text-align: left; margin-left: 7.2pt; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">TransAct Services Group</font></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">10,671</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">1,081</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">11,752</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 64%; padding-bottom: 4px; background-color: #CCEEFF;"><div style="text-align: left; margin-left: 16.2pt; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Total net sales</font></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #CCEEFF;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 double 4px; background-color: #CCEEFF;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">43,518</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #CCEEFF;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 double 4px; background-color: #CCEEFF;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">11,069</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #CCEEFF;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 double 4px; background-color: #CCEEFF;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">54,587</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #CCEEFF;">&#160;</td></tr></table><div style="line-height: 12.3pt;"><br style="line-height: 12.3pt;" /></div></div> 0.01 <div style="font-family: 'Times New Roman', Times, serif; font-size: 9pt;"><div style="text-align: justify; line-height: 10.25pt; font-family: 'Times New Roman', Times, serif; font-size: 10pt; font-weight: bold;">8. Borrowings</div><div style="text-align: justify; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div><div style="text-align: justify; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">We maintain a credit facility (the &#8220;TD Bank Credit Facility&#8221;) with TD Bank N.A. (&#8220;TD Bank) which provides for a $20 million revolving credit line.&#160;&#160;On November 21, 2017, we signed an amendment extending the term to the TD Bank Credit Facility through November 28, 2022.&#160;&#160;Borrowings under the revolving credit line bear a floating rate of interest at the prime rate minus one percent and are secured by a lien on all of our assets.&#160;&#160;We also pay a fee of 0.125% on unused borrowings under the revolving credit line.&#160;&#160;The amendment increased the amount of revolving credit loans we may use to fund future cash dividend payments or treasury share buybacks to $12.5 million from $10 million.&#160;&#160;</font></div><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div><div style="text-align: justify; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">The TD Bank Credit Facility imposes certain quarterly financial covenants on us and restricts, among other things, our ability to incur additional indebtedness and the creation of other liens. We were in compliance with all financial covenants of the TD Bank Credit Facility at December 31, 2018.</font></div><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div><div style="text-align: justify; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">As of December 31, 2018, undrawn commitments under the TD Bank Credit facility were $20 million.</font></div><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></div> 2022-11-28 25000 0 31000 0 6000 0 6000 0 0 0 0 0 -31000 P3Y 151000 28231 7.17 -257000 -117000 1097000 0 0 0 271000 250000 1117000 -295000 -107000 10000 -38000 20000 2308000 2198000 2308000 2198000 2609000 2658000 2219000 2330000 278000 246000 16000 16000 845000 879000 328000 390000 694000 682000 107000 71000 363000 233000 22000 21000 22000 21000 328000 390000 59000 60000 0.5 0.06 264000 295000 237000 997000 1331000 1081000 844000 870000 987000 <div style="font-family: 'Times New Roman', Times, serif; font-size: 9pt;"><div style="text-align: justify; line-height: 10.25pt; font-family: 'Times New Roman', Times, serif; font-size: 10pt; font-weight: bold;">10. Stock incentive plans</div><div style="text-align: justify; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div><div style="text-align: justify; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; font-style: italic;">Stock incentive plans</font><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-style: italic;">.</font>&#160;&#160;We currently have two primary stock incentive plans: the 2005 Equity Incentive Plan and 2014 Equity Incentive Plan, which provide for awards to executives, key employees, directors and consultants.&#160;&#160;The plans generally provide for awards in the form of: (i) incentive stock options, (ii) non-qualified stock options, (iii) restricted stock, (iv) restricted stock units (which may include performance-based vesting), (v) stock appreciation rights or (vi) limited stock appreciation rights.&#160;&#160;Awards granted under these plans have exercise prices equal to 100% of the fair market value of the common stock at the date of grant.&#160; Awards granted have a ten-year term and generally vest over a two- to five-year period, unless automatically accelerated for certain defined events.&#160;&#160;As of May 2014, no new awards were made under the 2005 Equity Incentive Plan.&#160;&#160;Under our 2014 Equity Incentive Plan, we may authorize awards for up to 1,400,000 shares of TransAct common stock.&#160;&#160;At December 31, 2018, 495,291 shares of common stock remained available for issuance under the 2014 Equity Incentive Plan.</font></div><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div><div style="text-align: justify; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Under the assumptions indicated below, the weighted-average per share fair value of stock option grants for 2018, 2017, and 2016 was $4.38, $1.95 and $1.70, respectively.&#160;&#160;In 2018 and 2017, we also issued restricted share units for certain executives and directors that vest over a specified period of time, and in some instances require achieving certain performance metrics.&#160; The weighted-average per share fair value of these restricted share units was $12.91, $7.53 and $7.31 in 2018, 2017 and 2016 respectively.&#160; No restricted share units were issued in 2016.</font></div><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div><div style="text-align: justify; line-height: 10.25pt; font-family: 'Times New Roman', Times, serif; font-size: 10pt;">The table below indicates the key assumptions used in the option valuation calculations for options granted in 2018, 2017, and 2016 and a discussion of our methodology for developing each of the assumptions used in the valuation model:</div><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div><table cellpadding="0" cellspacing="0" style="font-family: 'Times New Roman', Times, serif; font-size: 9pt; width: 100%; border-collapse: collapse;"><tr><td style="width: 69.15%; vertical-align: bottom;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></td><td colspan="7" style="width: 30.85%; vertical-align: bottom; border-bottom: #000000 2px solid;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Year Ended December 31,</font></div></td></tr><tr><td style="width: 69.15%; vertical-align: bottom;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></td><td colspan="2" style="width: 9.96%; vertical-align: bottom; border-bottom: #000000 2px solid;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">2018</font></div></td><td style="width: 0.97%; vertical-align: bottom;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></td><td colspan="2" style="width: 9.95%; vertical-align: bottom; border-bottom: #000000 2px solid;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">2017</font></div></td><td style="width: 0.98%; vertical-align: bottom;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></td><td style="width: 8.98%; vertical-align: bottom; border-bottom: #000000 2px solid;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">2016</font></div></td></tr><tr><td style="width: 69.15%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: justify; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Expected option term (in years)</font></div></div></td><td colspan="2" style="width: 9.96%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: right; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">6.8</font></div></div></td><td style="width: 0.97%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: right; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></div></td><td colspan="2" style="width: 9.95%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: right; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">6.8</font></div></div></td><td style="width: 0.98%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></div></td><td style="width: 8.98%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: right; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">6.9</font></div></div></td></tr><tr><td style="width: 69.15%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: justify; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Expected volatility</font></div></div></td><td style="width: 0.98%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></div></td><td style="width: 8.98%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: right; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">38.0%</font></div></div></td><td style="width: 0.97%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: right; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></div></td><td style="width: 0.98%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></div></td><td style="width: 8.97%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: right; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">36.2%</font></div></div></td><td style="width: 0.98%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></div></td><td style="width: 8.98%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: right; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">38.8%</font></div></div></td></tr><tr><td style="width: 69.15%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: justify; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Risk-free interest rate</font></div></div></td><td style="width: 0.98%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></div></td><td style="width: 8.98%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: right; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">2.7%</font></div></div></td><td style="width: 0.97%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: right; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></div></td><td style="width: 0.98%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></div></td><td style="width: 8.97%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: right; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">2.1%</font></div></div></td><td style="width: 0.98%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></div></td><td style="width: 8.98%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: right; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">1.2%</font></div></div></td></tr><tr><td style="width: 69.15%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: justify; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Dividend yield</font></div></div></td><td style="width: 0.98%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></div></td><td style="width: 8.98%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: right; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">2.6%</font></div></div></td><td style="width: 0.97%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: right; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></div></td><td style="width: 0.98%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></div></td><td style="width: 8.97%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: right; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">4.3%</font></div></div></td><td style="width: 0.98%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></div></td><td style="width: 8.98%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: right; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">4.5%</font></div></div></td></tr></table><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div><div style="text-align: justify; line-height: 10.25pt; font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; font-style: italic;">Expected Option Term</font> - This is the weighted average period of time over which the options granted are expected to remain outstanding giving consideration to our historical exercise patterns.&#160;&#160;Options granted have a maximum term of ten years and an increase in the expected term will increase compensation expense.</div><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div><div style="text-align: justify; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; font-style: italic;">Expected Volatility</font> &#8211; The stock volatility for each grant is measured using the weighted average of historical daily price changes of our common stock over the most recent period approximately equal to the expected option term of the grant.&#160;&#160;An increase in the expected volatility factor will increase compensation expense.</font></div><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div><div style="text-align: justify; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; font-style: italic;">Risk-Free Interest Rate</font> - This is the U.S. Treasury rate in effect at the time of grant having a term approximately equal to the expected term of the option.&#160;&#160;An increase in the risk-free interest rate will increase compensation expense.</font></div><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div><div style="text-align: justify; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; font-style: italic;">Dividend Yield</font> &#8211;The dividend yield is calculated by dividing the annual dividend declared per common share by the weighted average market value of our common stock on the date of grant. An increase in the dividend yield will decrease compensation expense.</font></div><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div><div style="text-align: justify; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">For 2018, 2017, and 2016, we recorded $629 thousand, $609 thousand, and $611 thousand of share-based compensation expense, respectively, included primarily in general and administrative expense in our Consolidated Statements of Income.&#160;&#160;We also recorded income tax benefits of $138 thousand, $134 thousand, and $184 thousand in 2018, 2017, and 2016 respectively, related to such share-based compensation.&#160;&#160;At December 31, 2018, these benefits are recorded as a deferred tax asset in the Consolidated Balance Sheets.</font></div><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div><div style="text-align: justify; line-height: 10.25pt; font-family: 'Times New Roman', Times, serif; font-size: 10pt;">Equity award activity in the 2005 Equity Incentive Plan and 2014 Equity Incentive Plan is summarized below:</div><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div><table cellpadding="0" cellspacing="0" style="font-family: 'Times New Roman', Times, serif; font-size: 9pt; width: 100%;"><tr><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="10" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Stock Options</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="6" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Restricted Share Units</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="2" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Number of Shares</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="2" valign="bottom" style="vertical-align: bottom;">&#160;</td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="2" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;"> Average Price*</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="2" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Number of Units</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="2" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Average Price**</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 40%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Outstanding at December 31, 2017</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">919,639</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;">&#160;</td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">8.13</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">101,275</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">8.21</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 40%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; margin-left: 9pt; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Granted</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">147,300</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;">&#160;</td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">13.65</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">37,400</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">13.69</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 40%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; margin-left: 9pt; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Exercised</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">(58,146</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">)</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;">&#160;</td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">7.16</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">(33,935</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">)</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">8.31</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 40%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; margin-left: 9pt; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Forfeited</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">(2,000</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">)</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;">&#160;</td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">7.63</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">(6,140</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">)</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">8.64</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 40%; padding-bottom: 2px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; margin-left: 9pt; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Expired</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">(2,500</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">)</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; padding-bottom: 2px; background-color: #CCEEFF;">&#160;</td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; padding-bottom: 2px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">5.24</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#8211;</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; padding-bottom: 2px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#8211;</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 40%; padding-bottom: 4px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Outstanding at December 31, 2018</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 double 4px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">1,004,293</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; padding-bottom: 4px; background-color: #FFFFFF;">&#160;</td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; padding-bottom: 4px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">9.00</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 double 4px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">98,600</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; padding-bottom: 4px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">9.82</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #FFFFFF;">&#160;</td></tr></table><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div><div style="text-align: left; line-height: 10.25pt;"><div><table cellpadding="0" cellspacing="0" class="DSPFListTable" style="font-family: 'Times New Roman', Times, serif; font-size: 9pt; width: 100%;"><tr><td style="width: 18pt; vertical-align: top; align: right;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">*</font></td><td style="width: auto; vertical-align: top; text-align: left;"><div><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">weighted average exercise price per share</font></div></td></tr></table></div></div><div style="text-align: left; line-height: 10.25pt;"><div><table cellpadding="0" cellspacing="0" class="DSPFListTable" style="font-family: 'Times New Roman', Times, serif; font-size: 9pt; width: 100%;"><tr><td style="width: 18pt; vertical-align: top; align: right;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">**</font></td><td style="width: auto; vertical-align: top; text-align: left;"><div><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">weighted-average grant stock price per share</font></div></td></tr></table></div></div><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div><div style="text-align: left; line-height: 10.25pt; font-family: 'Times New Roman', Times, serif; font-size: 10pt;">The following summarizes information about equity awards outstanding that are vested and expect to vest and equity awards that are exercisable at December 31, 2018:</div><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div><table cellpadding="0" cellspacing="0" style="font-family: 'Times New Roman', Times, serif; font-size: 9pt; width: 100%;"><tr><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="14" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Equity Awards Vested and Expected to Vest</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="14" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Equity Awards That Are Exercisable</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="2" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Awards</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="2" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Average Price*</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="2" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Aggregate Intrinsic Value</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="2" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Remaining Term**</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="2" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Awards</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="2" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Average Price*</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="2" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Aggregate Intrinsic Value</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="2" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Remaining Term**</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 20%; background-color: #CCEEFF;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Stock Options</font></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 7%; background-color: #CCEEFF;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">1,004,293</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 7%; background-color: #CCEEFF;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">9.00</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 7%; background-color: #CCEEFF;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">1,051</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 7%; background-color: #CCEEFF;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">6.1</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 7%; background-color: #CCEEFF;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">562,252</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 7%; background-color: #CCEEFF;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">8.38</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 7%; background-color: #CCEEFF;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">656</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 7%; background-color: #CCEEFF;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">4.7</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 20%; background-color: #FFFFFF;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Restricted stock units</font></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 7%; background-color: #FFFFFF;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">82,692</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 7%; background-color: #FFFFFF;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#8211;</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 7%; background-color: #FFFFFF;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">743</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 7%; background-color: #FFFFFF;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">1.9</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 7%; background-color: #FFFFFF;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#8211;</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 7%; background-color: #FFFFFF;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#8211;</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 7%; background-color: #FFFFFF;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#8211;</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 7%; background-color: #FFFFFF;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#8211;</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td></tr></table><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div><div style="text-align: left; line-height: 10.25pt;"><div><table cellpadding="0" cellspacing="0" class="DSPFListTable" style="font-family: 'Times New Roman', Times, serif; font-size: 9pt; width: 100%;"><tr><td style="width: 18pt; vertical-align: top; align: right;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">*</font></td><td style="width: auto; vertical-align: top; text-align: left;"><div><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">weighted average exercise price per share</font></div></td></tr></table></div></div><div style="text-align: left; line-height: 10.25pt;"><div><table cellpadding="0" cellspacing="0" class="DSPFListTable" style="font-family: 'Times New Roman', Times, serif; font-size: 9pt; width: 100%;"><tr><td style="width: 18pt; vertical-align: top; align: right;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">**</font></td><td style="width: auto; vertical-align: top; text-align: left;"><div><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">weighted-average contractual remaining term in years</font></div></td></tr></table></div></div><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div><div style="text-align: justify; line-height: 10.25pt; font-family: 'Times New Roman', Times, serif; font-size: 10pt;">Shares that are issued upon exercise of employee stock awards are newly issued shares and not issued from treasury stock.&#160;&#160;As of December 31, 2018, unrecognized compensation cost related to non-vested equity awards granted under our stock incentive plans is approximately $1.2 million, which is expected to be recognized over a weighted average period of 2.2 years.</div><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div><div style="text-align: justify; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">The total fair value of awards vested during the years ended December 31, 2018, 2017, and 2016 was $1.1 million, $1.1 million, and $1.0 million, respectively.&#160; The total intrinsic value (which is the amount by which the stock price exceeded the exercise price on the date of exercise) of stock options exercised during the years ended December 31, 2018, 2017, and 2016 was $280 thousand, $958 thousand and $6 thousand, respectively.&#160; Cash received from option exercises was $416 thousand, $1.0 million and $23 thousand for 2018, 2017, and 2016, respectively.&#160;&#160;We recorded a realized tax benefit in 2018, 2017, and 2016 from equity-based awards of $17 thousand, $150 thousand and $1 thousand, respectively, related to options exercised.&#160; Upon adoption of ASU 2016-09 in 2017 tax benefits realized on stock options exercises are included in income tax expense and are no longer included as a component of cash flows.</font></div><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div><div style="text-align: justify; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold;">Restricted stock:</font></div><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div><div style="text-align: justify; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">We paid a portion of the 2015 incentive bonus for the chief executive officer and chief financial officer in the form of 28,231 deferred stock units, respectively, with a corresponding credit recorded to Additional Paid in Capital (net of share relinquishments) in the amount of $151 thousand in 2016.&#160;&#160;Such deferred stock units were granted in February 2016 and were fully vested at the time of grant.&#160;&#160;These units will be converted three years from the grant date to shares of the Company&#8217;s common stock on a one-for-one basis.&#160;&#160;The weighted average exercise price of the deferred stock units was $7.17.&#160; Starting with the 2016 incentive bonus program, all incentive bonus payments are made in cash with no portion of the award paid in deferred stock units.</font></div><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div></div> 0 2667000 2581000 0 0 0 0 0 2667000 2416000 0 0 0 0 2581000 2416000 0 0 <div style="font-family: 'Times New Roman', Times, serif; font-size: 9pt;"><div style="text-align: left; line-height: 10.25pt; font-family: 'Times New Roman', Times, serif; font-size: 10pt; font-weight: bold;">12. Earnings per share</div><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div><div style="text-align: left; line-height: 10.25pt; font-family: 'Times New Roman', Times, serif; font-size: 10pt;">For 2018, 2017, and 2016, earnings per share was computed as follows (in thousands, except per share amounts):</div><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div><table cellpadding="0" cellspacing="0" style="font-family: 'Times New Roman', Times, serif; font-size: 9pt; width: 100%;"><tr><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="10" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Year Ended December 31,</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="2" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;"> 2018</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="2" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">2017</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="2" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">2016</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 64%; padding-bottom: 4px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; text-indent: -9pt; margin-left: 9pt; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Net income</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 double 4px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">5,426</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 double 4px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">3,211</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 double 4px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">3,617</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #CCEEFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 64%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;">&#160;</td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;">&#160;</td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;">&#160;</td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 64%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; text-indent: -9pt; margin-left: 9pt; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Shares:</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;">&#160;</td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;">&#160;</td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;">&#160;</td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 64%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; text-indent: -9pt; margin-left: 9pt; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Basic:&#160;&#160;Weighted average common shares outstanding</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">7,444</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">7,423</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">7,610</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 64%; padding-bottom: 2px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; text-indent: -9pt; margin-left: 9pt; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Add:&#160;&#160;Dilutive effect of outstanding equity awards as determined by the treasury stock method</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">315</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">169</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">45</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 64%; padding-bottom: 4px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; text-indent: -9pt; margin-left: 9pt; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Diluted:&#160;&#160;Weighted average common and common equivalent shares outstanding</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 double 4px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">7,759</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 double 4px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">7,592</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 double 4px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">7,655</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #FFFFFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 64%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;">&#160;</td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;">&#160;</td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;">&#160;</td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 64%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; text-indent: -9pt; margin-left: 9pt; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Net income per common share:</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;">&#160;</td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;">&#160;</td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;">&#160;</td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 64%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; text-indent: -9pt; margin-left: 18pt; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Basic</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">0.73</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">0.43</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">0.48</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 64%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; text-indent: -9pt; margin-left: 18pt; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Diluted</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">0.70</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">0.42</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">0.47</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td></tr></table><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div><div style="text-align: justify; line-height: 10.25pt; font-family: 'Times New Roman', Times, serif; font-size: 10pt;">The computation of diluted earnings per share excludes the effect of the potential exercise of stock awards, including stock options, restricted stock units and performance stock awards, when the average market price of the common stock is lower than the exercise price of the related stock award during the period.&#160;&#160;These outstanding stock awards are not included in the computation of diluted earnings per share because the effect would be anti-dilutive.&#160;&#160;Anti-dilutive stock awards excluded from the computation of earnings per dilutive share were 149,000, and 341,000, at December 31, 2018 and 2017 respectively.&#160;&#160;</div><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div></div> 0.73 0.48 0.43 0.12 0.13 -0.06 0.24 0.13 0.35 0.16 0.09 <div style="font-family: 'Times New Roman', Times, serif; font-size: 9pt;"><div style="text-align: justify; line-height: 10.25pt; font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; font-style: italic;">Net income and loss per share:</font>&#160;&#160;We report net income or loss per share in accordance with ASC 260, &#8220;Earnings per Share (EPS).&#8221; Under this guidance, basic EPS, which excludes dilution, is computed by dividing income or loss available to common shareholders by the weighted average number of common shares outstanding for the period.&#160;&#160;Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock.&#160;&#160;Diluted EPS includes in-the-money stock options using the treasury stock method.&#160;&#160;During a loss period, the assumed exercise of in-the-money stock options has an anti-dilutive effect, and therefore, these instruments are excluded from the computation of dilutive EPS.&#160;&#160;See Note 12 - Earnings per share.</div><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div></div> 0.70 0.42 0.47 0.13 0.09 0.12 0.24 -0.06 0.33 0.12 0.16 -10000 -30000 64000 0.34 0.210 0.35 0.340 -0.001 -0.001 0.001 0.000 0.015 0.000 0.017 0.000 0.000 0.000 0.194 0.000 0.001 0.001 0.000 -0.014 -0.015 0.000 0.010 0.016 0.016 0.004 0.012 0.013 0.300 0.526 0.161 0.046 0.049 0.033 1817000 2288000 P2Y2M12D 184000 138000 134000 1206000 1000 17000 150000 254000 259000 269000 81000 81000 267000 277000 267000 273000 264000 259000 263000 192000 186000 175000 93000 4284000 80000 480000 3817000 1754000 2221000 146000 480000 80000 57000 1300000 57000 1300000 146000 124000 23000 93000 1481000 354000 146000 1558000 3487000 80000 80000 46000 1300000 49000 3359000 1300000 306000 146000 289000 -4000 -11000 -199000 <div style="font-family: 'Times New Roman', Times, serif; font-size: 9pt;"><div style="text-align: justify; line-height: 11.05pt; margin-bottom: 8pt; font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; font-style: italic;">Foreign currency translation:</font>&#160;&#160;The financial position and results of operations of our foreign subsidiary in the UK are measured using local currency as the functional currency.&#160;&#160;Assets and liabilities of such subsidiary have been translated into U.S. dollars at the year-end exchange rate, related sales and expenses have been translated at the exchange rate as of the date the transaction was recognized, and shareholders&#8217; equity has been translated at historical exchange rates.&#160;&#160;The resulting translation gains or losses, net of tax, are recorded in shareholders&#8217; equity as a cumulative translation adjustment, which is a component of accumulated other comprehensive income.&#160;&#160;Foreign currency transaction gains and losses, including those related to intercompany balances, are recognized in Other, net on the Consolidated Statements of Income.</div></div> 0 5000 0 7267000 8205000 7984000 2621000 2621000 <div style="font-family: 'Times New Roman', Times, serif; font-size: 9pt;"><div style="text-align: justify; line-height: 10.25pt; font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; font-style: italic;">Goodwill and Intangible assets</font><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold;">:</font>&#160;We acquire businesses in purchase transactions that result in the recognition of goodwill and intangible assets. The determination of the value of intangible assets requires management to make estimates and assumptions. In accordance with ASC 350-20 &#8220;Goodwill&#8221;, acquired goodwill is not amortized but is subject to impairment testing at least annually and when an event occurs or circumstances change, that indicate it is more likely than not an impairment exists. Factors considered that may trigger an impairment review of either acquired goodwill or intangible assets are: significant underperformance relative to expected historical or projected future operating results; significant changes in the manner of use of acquired assets or the strategy for the overall business; significant negative industry or economic trends; and significant decline in market capitalization relative to net book value. Finite lived intangible assets are amortized and are tested for impairment when appropriate. We have determined that no goodwill or intangible asset impairment has occurred and the fair value of goodwill was substantially higher than our carrying value based on our assessment as of December 31, 2018 when the impairment review is performed.</div><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div></div> 26743000 23799000 26662000 8004000 5862000 6620000 6430000 7519000 5886000 6093000 6991000 286000 563000 235000 6772000 6466000 5170000 3561000 1040000 1553000 17000 17000 <div style="font-family: 'Times New Roman', Times, serif; font-size: 9pt;"><div style="text-align: justify; line-height: 10.25pt; font-family: 'Times New Roman', Times, serif; font-size: 10pt; font-weight: bold;">11. Income taxes</div><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div><div style="text-align: justify; line-height: 10.25pt; font-family: 'Times New Roman', Times, serif; font-size: 10pt;">The components of the income tax provision are as follows:</div><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div><table cellpadding="0" cellspacing="0" style="font-family: 'Times New Roman', Times, serif; font-size: 9pt; width: 100%;"><tr><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="10" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Year Ended December 31,</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-style: italic;">(In thousands)</font></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="2" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">2018</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="2" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">2017</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="2" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">2016</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Current:</font></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom;">&#160;</td><td colspan="2" valign="bottom" style="vertical-align: bottom;">&#160;</td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom;">&#160;</td><td colspan="2" valign="bottom" style="vertical-align: bottom;">&#160;</td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom;">&#160;</td><td colspan="2" valign="bottom" style="vertical-align: bottom;">&#160;</td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 64%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; margin-left: 9pt; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Federal</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">1,049</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">2,379</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">1,776</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 64%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; margin-left: 9pt; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">State</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">85</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">114</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">70</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 64%; padding-bottom: 2px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; margin-left: 9pt; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Foreign</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">13</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">(49</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">)</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">2</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 64%; padding-bottom: 2px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">1,147</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">2,444</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">1,848</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 64%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Deferred:</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;">&#160;</td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;">&#160;</td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;">&#160;</td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 64%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; margin-left: 9pt; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Federal</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">(117</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">)</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">1,097</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">(257</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">)</font></div></div></td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 64%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; margin-left: 9pt; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">State</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">10</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">20</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">(38</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">)</font></div></div></td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 64%; padding-bottom: 2px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; margin-left: 9pt; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Foreign</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#8211;</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#8211;</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#8211;</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 64%; padding-bottom: 2px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">(107</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">)</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">1,117</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">(295</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">)</font></div></div></td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 64%; padding-bottom: 4px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Income tax provision</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 double 4px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">1,040</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 double 4px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">3,561</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 double 4px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">1,553</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #FFFFFF;">&#160;</td></tr></table><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div><div style="text-align: justify; line-height: 10.25pt; font-family: 'Times New Roman', Times, serif; font-size: 10pt;">On December 22, 2017, the United States enacted significant changes to U.S. tax law following the passage and signing of the Tax Reform Act. The legislation significantly changes U.S. tax law by, among other things, lowering corporate income tax rates, implementing a territorial tax system and imposing a one-time repatriation tax on undistributed foreign earnings. The Tax Reform Act permanently reduces the U.S. corporate income tax rate from a maximum of 35% to a flat 21% rate, effective January 1, 2018. Income tax effects resulting from changes in tax laws are accounted for by the Company in accordance with authoritative guidance, which requires that these tax effects be recognized in the period in which the law is enacted.</div><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div><div style="text-align: justify; line-height: 11.05pt; margin-bottom: 8pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">On December 22, 2017, the Securities and Exchange Commission ("SEC") staff issued Staff Accounting Bulletin No. 118 ("SAB 118") to address the application of U.S. GAAP in situations where a registrant does not have the necessary information available, prepared, or analyzed in reasonable detail to complete the accounting for certain income tax effects of the Tax Reform Act. SAB 118 provides a measurement period, not to exceed one year from the enactment of the Tax Reform Act. In accordance with SAB 118, the Company has recognized provisional tax impacts related to the revaluation of deferred tax assets and liabilities and included these amounts in its consolidated financial statements for the year ended December 31, 2017, and no changes were made to these provisional amounts during the year ended December 31, 2018.&#160; As of December 22, 2018 our accounting for the impact of the Tax Reform Act was complete.</font></div><div style="text-align: justify; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">The Company uses the asset and liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are recognized for future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to reverse. As a result of the reduction of TransAct's U.S. corporate income tax rate from 34% to 21% under the Tax Reform Act, the Company revalued its ending net deferred tax assets at December 31, 2017 and recognized a provisional $1.3 million charge to income tax expense in the Company's consolidated statement of income for the year ended December 31, 2017.</font></div><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div><div style="text-align: justify; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">The Tax Reform Act also provided for a one-time deemed mandatory repatriation of post-1986 undistributed foreign subsidiary earnings and profits ("E&amp;P") through the year ended December 31, 2017. The Company had no undistributed foreign E&amp;P subject to the one-time mandatory repatriation and, therefore, did not recognize any income tax expense related to undistributed foreign subsidiary E&amp;P for the year ended December 31, 2017.</font></div><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div><div style="text-align: justify; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">While the Tax Reform Act provides for a territorial tax system, beginning in 2018, it includes two new U.S. tax base erosion provisions, the global intangible low-taxed income ("GILTI") provisions and the base-erosion and anti-abuse tax ("BEAT") provisions. The GILTI provisions require the Company to include in its U.S. income tax return foreign subsidiary earnings in excess of an allowable return on the foreign subsidiary's tangible assets. The BEAT provisions in the Tax Reform Act eliminate the deduction of certain base-erosion payments made to related foreign corporations, and impose a minimum tax if greater than regular tax. The Company is not currently subject to these taxes and therefore has not included any tax impacts of GILTI or BEAT in its consolidated financial statements for the year ended December 31, 2018 or 2017.</font></div><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div><div style="text-align: justify; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Our effective tax rates were 16.1%, 52.6%, and 30.0% for 2018, 2017, and 2016, respectively.&#160;The effective tax rate in 2018 was significantly lower due to the impact of the Tax Reform Act.&#160; In addition to the lowering of the corporate from 34% to 21%, the Tax Reform Act also provided the Company with a new deduction, the foreign-derived intangible income deduction. &#160;The effective tax rate in 2017 was unusually high due to the initial impact of the Tax Reform Act as we recognized a provisional $1.3 million charge to income tax expense for the year ended December 31, 2017 as a result of revaluing our net deferred tax assets using the new U.S. corporate tax rate of 21%.</font></div><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div><div style="text-align: justify; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">At December 31, 2018, we have no federal or state net operating loss carryforwards, no R&amp;D credit carryforwards, and no state tax credit carryforwards.&#160;&#160;Foreign loss before taxes was $286 thousand, $563 thousand, and $235 thousand in 2018, 2017, and 2016, respectively.</font></div><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div><div style="text-align: justify; line-height: 10.25pt; font-family: 'Times New Roman', Times, serif; font-size: 10pt;">Deferred income taxes arise from temporary differences between the tax basis of assets and liabilities and their reported amounts in the Consolidated Financial Statements.&#160;&#160;Our deferred tax assets and liabilities were comprised of the following:</div><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div><table cellpadding="0" cellspacing="0" style="font-family: 'Times New Roman', Times, serif; font-size: 9pt; width: 100%;"><tr><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="6" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">December 31,</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;"><div style="text-align: left; text-indent: -9pt; margin-left: 9pt; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-style: italic;">(In thousands)</font></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="2" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">2018</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="2" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">2017</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom;"><div style="text-align: left; text-indent: -9pt; margin-left: 9pt; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Deferred tax assets:</font></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom;">&#160;</td><td colspan="2" valign="bottom" style="vertical-align: bottom;">&#160;</td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom;">&#160;</td><td colspan="2" valign="bottom" style="vertical-align: bottom;">&#160;</td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 76%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; text-indent: -9pt; margin-left: 18pt; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Foreign net operating losses</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">390</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">328</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 76%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; text-indent: -9pt; margin-left: 18pt; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Depreciation</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">71</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">107</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 76%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; text-indent: -9pt; margin-left: 18pt; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Inventory reserves</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">879</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">845</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 76%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; margin-left: 9pt; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Deferred revenue</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">16</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">16</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 76%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; text-indent: -9pt; margin-left: 18pt; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Warranty reserve</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">60</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">59</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 76%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; text-indent: -9pt; margin-left: 18pt; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Stock compensation expense</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">682</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">694</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 76%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; text-indent: -9pt; margin-left: 18pt; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Other accrued compensation</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">233</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">363</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 76%; padding-bottom: 2px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; margin-left: 9pt; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Other liabilities and reserves</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">278</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">246</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 76%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; text-indent: -9pt; margin-left: 27pt; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Gross deferred tax assets</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">2,609</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">2,658</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 76%; padding-bottom: 2px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; text-indent: -9pt; margin-left: 27pt; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Valuation allowance</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">(390</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">)</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">(328</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">)</font></div></div></td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 76%; padding-bottom: 2px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; text-indent: -18pt; margin-left: 45pt; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Net deferred tax assets</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">2,219</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">2,330</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 76%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;">&#160;</td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;">&#160;</td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 76%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; text-indent: -9pt; margin-left: 9pt; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Deferred tax liabilities:</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;">&#160;</td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;">&#160;</td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 76%; padding-bottom: 2px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; text-indent: -9pt; margin-left: 18pt; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Other</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">21</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">22</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 76%; padding-bottom: 2px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; text-indent: -9pt; margin-left: 36pt; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Net deferred tax liabilities</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">21</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">22</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 76%; padding-bottom: 4px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; text-indent: -9pt; margin-left: 9pt; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Total net deferred tax assets</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 double 4px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">2,198</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 double 4px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">2,308</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #FFFFFF;">&#160;</td></tr></table><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div><div style="text-align: left; line-height: 10.25pt; font-family: 'Times New Roman', Times, serif; font-size: 10pt;">As of December 31, 2018 a valuation allowance of $390 thousand has been established for foreign net operating loss carryforwards that are not expected to be used.&#160;The following table summarizes the activity recorded in the valuation allowance on the deferred tax assets:</div><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div><table cellpadding="0" cellspacing="0" style="font-family: 'Times New Roman', Times, serif; font-size: 9pt; width: 100%;"><tr><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="10" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Year Ended December 31,</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;"><div style="text-align: justify; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-style: italic;">(In thousands)</font></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="2" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">2018</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="2" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">2017</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="2" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">2016</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 64%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Balance, beginning of period</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">328</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">423</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">340</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 64%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Additions charged to income tax provision</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">62</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">67</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">83</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 64%; padding-bottom: 2px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Reductions credited to income tax provision</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#8211;</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">(162</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">)</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#8211;</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 64%; padding-bottom: 4px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Balance, end of period</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 double 4px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">390</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 double 4px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">328</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 double 4px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">423</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #FFFFFF;">&#160;</td></tr></table><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div><div style="text-align: justify; line-height: 10.25pt; font-family: 'Times New Roman', Times, serif; font-size: 10pt;">Differences between the U.S. statutory federal income tax rate and our effective income tax rate are analyzed below:</div><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div><table cellpadding="0" cellspacing="0" style="font-family: 'Times New Roman', Times, serif; font-size: 9pt; width: 100%; border-collapse: collapse;"><tr><td style="width: 69.15%; vertical-align: bottom;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></td><td colspan="7" style="width: 30.85%; vertical-align: bottom; border-bottom: #000000 2px solid;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Year Ended December 31,</font></div></td></tr><tr><td style="width: 69.15%; vertical-align: bottom;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></td><td colspan="2" style="width: 9.96%; vertical-align: bottom; border-bottom: #000000 2px solid;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">2018</font></div></td><td style="width: 0.97%; vertical-align: bottom;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></td><td colspan="2" style="width: 9.95%; vertical-align: bottom; border-bottom: #000000 2px solid;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">2017</font></div></td><td style="width: 0.98%; vertical-align: bottom;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></td><td style="width: 8.98%; vertical-align: bottom; border-bottom: #000000 2px solid;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">2016</font></div></td></tr><tr><td style="width: 69.15%; vertical-align: bottom;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></td><td colspan="2" style="width: 9.96%; vertical-align: bottom;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></td><td style="width: 0.97%; vertical-align: bottom;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></td><td colspan="2" style="width: 9.95%; vertical-align: bottom;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></td><td style="width: 0.98%; vertical-align: bottom;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></td><td style="width: 8.98%; vertical-align: bottom;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></td></tr><tr><td style="width: 69.15%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Federal statutory tax rate</font></div></div></td><td style="width: 0.98%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></div></td><td style="width: 8.98%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: right; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">21.0%</font></div></div></td><td style="width: 0.97%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: right; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></div></td><td style="width: 0.98%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></div></td><td style="width: 8.97%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: right; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">34.0%</font></div></div></td><td style="width: 0.98%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></div></td><td style="width: 8.98%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: right; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">34.0%</font></div></div></td></tr><tr><td style="width: 69.15%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">State income taxes, net of federal income taxes</font></div></div></td><td style="width: 0.98%; vertical-align: bottom; background-color: #FFFFFF;">&#160;</td><td style="width: 8.98%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: right; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">1.2</font></div></div></td><td style="width: 0.97%; vertical-align: bottom; background-color: #FFFFFF;">&#160;</td><td style="width: 0.98%; vertical-align: bottom; background-color: #FFFFFF;">&#160;</td><td style="width: 8.97%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: right; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">1.3</font></div></div></td><td style="width: 0.98%; vertical-align: bottom; background-color: #FFFFFF;">&#160;</td><td style="width: 8.98%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: right; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">0.4</font></div></div></td></tr><tr><td style="width: 69.15%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Valuation allowance and tax accruals</font></div></div></td><td style="width: 0.98%; vertical-align: bottom; background-color: #FFFFFF;">&#160;</td><td style="width: 8.98%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: right; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">1.0</font></div></div></td><td style="width: 0.97%; vertical-align: bottom; background-color: #FFFFFF;">&#160;</td><td style="width: 0.98%; vertical-align: bottom; background-color: #FFFFFF;">&#160;</td><td style="width: 8.97%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: right; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">1.6</font></div></div></td><td style="width: 0.98%; vertical-align: bottom; background-color: #FFFFFF;">&#160;</td><td style="width: 8.98%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: right; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">1.6</font></div></div></td></tr><tr><td style="width: 69.15%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Miscellaneous permanent items</font></div></div></td><td style="width: 0.98%; vertical-align: bottom; background-color: #FFFFFF;">&#160;</td><td style="width: 8.98%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: right; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">0.7</font></div></div></td><td style="width: 0.97%; vertical-align: bottom; background-color: #FFFFFF;">&#160;</td><td style="width: 0.98%; vertical-align: bottom; background-color: #FFFFFF;">&#160;</td><td style="width: 8.97%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: right; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">(0.5)</font></div></div></td><td style="width: 0.98%; vertical-align: bottom; background-color: #FFFFFF;">&#160;</td><td style="width: 8.98%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: right; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">(1.2)</font></div></div></td></tr><tr><td style="width: 69.15%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">U.S. corporate tax rate change</font></div></div></td><td style="width: 0.98%; vertical-align: bottom; background-color: #FFFFFF;">&#160;</td><td style="width: 8.98%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: right; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">0.0</font></div></div></td><td style="width: 0.97%; vertical-align: bottom; background-color: #FFFFFF;">&#160;</td><td style="width: 0.98%; vertical-align: bottom; background-color: #FFFFFF;">&#160;</td><td style="width: 8.97%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: right; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">19.4</font></div></div></td><td style="width: 0.98%; vertical-align: bottom; background-color: #FFFFFF;">&#160;</td><td style="width: 8.98%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: right; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">0.0</font></div></div></td></tr><tr><td style="width: 69.15%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Stock option cancellations</font></div></div></td><td style="width: 0.98%; vertical-align: bottom; background-color: #FFFFFF;">&#160;</td><td style="width: 8.98%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: right; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">0.0</font></div></div></td><td style="width: 0.97%; vertical-align: bottom; background-color: #FFFFFF;">&#160;</td><td style="width: 0.98%; vertical-align: bottom; background-color: #FFFFFF;">&#160;</td><td style="width: 8.97%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: right; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">1.7</font></div></div></td><td style="width: 0.98%; vertical-align: bottom; background-color: #FFFFFF;">&#160;</td><td style="width: 8.98%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: right; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">0.0</font></div></div></td></tr><tr><td style="width: 69.15%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Uncertain tax positions</font></div></div></td><td style="width: 0.98%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></div></td><td style="width: 8.98%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: right; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">0.0</font></div></div></td><td style="width: 0.97%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: right; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></div></td><td style="width: 0.98%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></div></td><td style="width: 8.97%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: right; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">(0.1)</font></div></div></td><td style="width: 0.98%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></div></td><td style="width: 8.98%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: right; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">(0.1)</font></div></div></td></tr><tr><td style="width: 69.15%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Stock award excess tax benefit</font></div></div></td><td style="width: 0.98%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></div></td><td style="width: 8.98%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: right; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">(1.5)</font></div></div></td><td style="width: 0.97%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: right; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></div></td><td style="width: 0.98%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></div></td><td style="width: 8.97%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: right; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">(1.4)</font></div></div></td><td style="width: 0.98%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></div></td><td style="width: 8.98%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: right; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">0.0</font></div></div></td></tr><tr><td style="width: 69.15%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Foreign-derived intangible income deduction</font></div></div></td><td style="width: 0.98%; vertical-align: bottom; background-color: #FFFFFF;">&#160;</td><td style="width: 8.98%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: right; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">(1.5)</font></div></div></td><td style="width: 0.97%; vertical-align: bottom; background-color: #FFFFFF;">&#160;</td><td style="width: 0.98%; vertical-align: bottom; background-color: #FFFFFF;">&#160;</td><td style="width: 8.97%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: right; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">0.0</font></div></div></td><td style="width: 0.98%; vertical-align: bottom; background-color: #FFFFFF;">&#160;</td><td style="width: 8.98%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: right; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">0.0</font></div></div></td></tr><tr><td style="width: 69.15%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">R&amp;D credit</font></div></div></td><td style="width: 0.98%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></div></td><td style="width: 8.98%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: right; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">(4.9)</font></div></div></td><td style="width: 0.97%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: right; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></div></td><td style="width: 0.98%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></div></td><td style="width: 8.97%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: right; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">(3.3)</font></div></div></td><td style="width: 0.98%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></div></td><td style="width: 8.98%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: right; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">(4.6)</font></div></div></td></tr><tr><td style="width: 69.15%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Other</font></div></div></td><td style="width: 0.98%; vertical-align: bottom; background-color: #FFFFFF; border-bottom: #000000 2px solid;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></div></td><td style="width: 8.98%; vertical-align: bottom; background-color: #FFFFFF; border-bottom: #000000 2px solid;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: right; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">0.1</font></div></div></td><td style="width: 0.97%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: right; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></div></td><td style="width: 0.98%; vertical-align: bottom; background-color: #FFFFFF; border-bottom: #000000 2px solid;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></div></td><td style="width: 8.97%; vertical-align: bottom; background-color: #FFFFFF; border-bottom: #000000 2px solid;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: right; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">(0.1)</font></div></div></td><td style="width: 0.98%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></div></td><td style="width: 8.98%; vertical-align: bottom; background-color: #FFFFFF; border-bottom: #000000 2px solid;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: right; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">(0.1)</font></div></div></td></tr><tr><td style="width: 69.15%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Effective tax rate</font></div></div></td><td style="width: 0.98%; vertical-align: bottom; background-color: #FFFFFF; border-bottom: #000000 4px double;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></div></td><td style="width: 8.98%; vertical-align: bottom; background-color: #FFFFFF; border-bottom: #000000 4px double;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: right; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">16.1%</font></div></div></td><td style="width: 0.97%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: right; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></div></td><td style="width: 0.98%; vertical-align: bottom; background-color: #FFFFFF; border-bottom: #000000 4px double;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></div></td><td style="width: 8.97%; vertical-align: bottom; background-color: #FFFFFF; border-bottom: #000000 4px double;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: right; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">52.6%</font></div></div></td><td style="width: 0.98%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></div></td><td style="width: 8.98%; vertical-align: bottom; background-color: #FFFFFF; border-bottom: #000000 4px double;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: right; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">30.0%</font></div></div></td></tr></table><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div><div style="text-align: justify; line-height: 10.25pt; font-family: 'Times New Roman', Times, serif; font-size: 10pt;">At both December 31, 2018 and 2017, we had $104 thousand of total gross unrecognized tax benefits that, if recognized, would favorably affect the effective income tax rate in any future periods.&#160;&#160;We are not aware of any events that could occur within the next twelve months that could cause a significant change in the total amount of unrecognized tax benefits.&#160;&#160;A tabular reconciliation of the gross amounts of unrecognized tax benefits at the beginning and end of the year is as follows:</div><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div><table cellpadding="0" cellspacing="0" style="font-family: 'Times New Roman', Times, serif; font-size: 9pt; width: 100%;"><tr><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="6" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">December 31,</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;"><div style="text-align: justify; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-style: italic;">(In thousands)</font></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="2" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">2018</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="2" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">2017</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 76%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="text-align: justify; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Unrecognized tax benefits as of January 1</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">104</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">111</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 76%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Tax positions taken during the current period</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">28</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">24</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 76%; padding-bottom: 2px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Lapse of statute of limitations</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">(28</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">)</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">(31</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">)</font></div></div></td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 76%; padding-bottom: 4px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="text-align: justify; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Unrecognized tax benefits as of December 31</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 double 4px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">104</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 double 4px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">104</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #FFFFFF;">&#160;</td></tr></table><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div><div style="text-align: justify; line-height: 10.25pt; font-family: 'Times New Roman', Times, serif; font-size: 10pt;">We expect $25 thousand of the $104 thousand of unrecognized tax benefits will reverse in 2019 upon the expiration of the statute of limitations.</div><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div><div style="text-align: justify; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">We recognize interest and penalties related to uncertain tax positions in the income tax provision.&#160;&#160;We have accrued interest and penalties related to uncertain tax positions of $17 thousand as of December 31, 2018 and 2017.</font></div><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div><div style="text-align: justify; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">We are subject to U.S. federal income tax as well as income tax of certain state and foreign jurisdictions.&#160;&#160;We have substantially concluded all U.S. federal income tax, state and local, and foreign tax matters through 2014.&#160;&#160;However, our federal tax returns for the years 2015 through 2017 remain open to examination. Various state and foreign tax jurisdiction tax years remain open to examination as well, though we believe that any additional assessment would be immaterial to the Consolidated Financial Statements.</font></div><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div></div> 514000 809000 <div style="font-family: 'Times New Roman', Times, serif; font-size: 9pt;"><div style="text-align: justify; line-height: 10.25pt; font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; font-style: italic;">Income taxes:</font>&#160;&#160;The income tax amounts reflected in the accompanying Consolidated Financial Statements are accounted for under the liability method in accordance with ASC 740, &#8220;Income Taxes.&#8221;&#160;&#160;Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards.&#160;&#160;Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which those temporary differences are expected to be recovered or settled.&#160;&#160;We assess the likelihood that net deferred tax assets will be realized from future taxable income, and to the extent that we believe that realization is not likely, we establish a valuation allowance.&#160;&#160;In accordance with ASC 740, we identified, evaluated and measured the amount of benefits to be recognized for our tax return positions.&#160;&#160;See Note 11 for information regarding our accounting for income taxes and additional provision items recorded in regards to the Tax Reform Act.</div><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div></div> 1249000 2065000 2991000 -186000 -1088000 1053000 2255000 -988000 -332000 5000 518000 100000 -1580000 -834000 4049000 3434000 405000 -2688000 161000 -53000 137000 169000 315000 45000 <div style="font-family: 'Times New Roman', Times, serif; font-size: 9pt;"><div style="text-align: left; line-height: 10.25pt; font-family: 'Times New Roman', Times, serif; font-size: 10pt; font-weight: bold;">5. Intangible assets</div><div style="text-align: justify; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div><div style="text-align: left; line-height: 10.25pt; font-family: 'Times New Roman', Times, serif; font-size: 10pt;">Identifiable intangible assets are recorded in Intangible assets in the accompanying Consolidated Balance Sheets and are comprised of the following:</div><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div><table cellpadding="0" cellspacing="0" style="font-family: 'Times New Roman', Times, serif; font-size: 9pt; width: 100%;"><tr><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="14" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">December 31,</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="6" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;"> 2018</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="6" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">2017</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-style: italic;">(In thousands)</font></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="2" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Gross Amount</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="2" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Accumulated Amortization</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="2" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Gross Amount</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="2" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Accumulated Amortization</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 52%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Purchased technology</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">2,221</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">(1,558</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">)</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">1,754</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">(1,481</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">)</font></div></div></td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 52%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Customer relationships</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">1,300</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">(1,300</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">)</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">1,300</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">(1,300</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">)</font></div></div></td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 52%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Trademark</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">480</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">(354</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">)</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">480</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">(306</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">)</font></div></div></td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 52%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Covenant not to compete</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">146</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">(146</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">)</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">146</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">(146</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">)</font></div></div></td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 52%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Patents</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">57</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">(49</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">)</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">57</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">(46</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">)</font></div></div></td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 52%; padding-bottom: 2px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Other</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">80</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">(80</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">)</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">80</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">(80</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">)</font></div></div></td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 52%; padding-bottom: 4px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; margin-left: 9pt; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Total</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 double 4px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">4,284</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 double 4px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">(3,487</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">)</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 double 4px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">3,817</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 double 4px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">(3,359</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">)</font></div></div></td></tr></table><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div><div style="text-align: justify; line-height: 10.25pt; font-family: 'Times New Roman', Times, serif; font-size: 10pt;">Amortization expense was $128 thousand, $237 thousand and $343 thousand in 2018, 2017 and 2016, respectively.&#160;&#160;Amortization expense for each of the next five years ending December 31 is expected to be as follows: $289 thousand in 2019; $175 thousand in 2020; $124 thousand in 2021; $93 thousand in 2022; $93 thousand in 2023; and $23 thousand thereafter.</div><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></div> 797000 458000 33000 27000 33000 0 0 7000 31000 25000 30000 <div style="font-family: 'Times New Roman', Times, serif; font-size: 9pt;"><div style="text-align: justify; line-height: 10.25pt; font-family: 'Times New Roman', Times, serif; font-size: 10pt; font-weight: bold;">3. Inventories, net</div><div style="text-align: justify; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div><div style="text-align: justify; line-height: 10.25pt; font-family: 'Times New Roman', Times, serif; font-size: 10pt;">The components of inventories are:</div><div style="text-align: justify; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div><table cellpadding="0" cellspacing="0" style="font-family: 'Times New Roman', Times, serif; font-size: 9pt; width: 100%;"><tr><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="6" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">December 31,</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-style: italic;">(In thousands)</font></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="2" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">2018</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="2" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">2017</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 76%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Raw materials and purchased component parts</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">6,593</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">6,322</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 76%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Work-in-process</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">29</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#8211;</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 76%; padding-bottom: 2px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Finished goods</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">6,213</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">2,553</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 76%; padding-bottom: 4px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 double 4px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">12,835</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 double 4px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">8,875</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #FFFFFF;">&#160;</td></tr></table><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div></div> 6213000 2553000 8875000 12835000 6593000 6322000 0 29000 <div style="font-family: 'Times New Roman', Times, serif; font-size: 9pt;"><div style="text-align: justify; line-height: 10.25pt; font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; font-style: italic;">Inventories:</font>&#160;&#160;Inventories are stated at the lower of cost (principally standard cost, which approximates actual cost on a first-in, first-out basis) or net realizable value.&#160;&#160;We review net realizable value based on estimated selling prices in the ordinary course of business less estimated costs of completions, disposal and transportation, historical usage and estimates of future demand.&#160;&#160;Based on these reviews, inventory write-downs are recorded, as necessary, to reflect estimated obsolescence, excess quantities and net realizable value.&#160;&#160;</div></div> <div style="font-family: 'Times New Roman', Times, serif; font-size: 9pt;"><div style="text-align: justify; line-height: 10.25pt; font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; font-style: italic;">Leases:</font>&#160;&#160;Rent expense under non-cancelable operating leases with scheduled rent increases or free rent periods are accounted for on a straight-line basis over the lease term, beginning on the date of control of physical use of the asset or of initial possession.&#160;&#160;The amount of the excess of straight-line rent expense over scheduled payments is recorded as a deferred liability.&#160;&#160;Construction allowances and other such lease incentives are recorded as deferred credits, and are amortized on a straight-line basis as a reduction of rent expense beginning in the period they are deemed to be earned, which generally coincides with the occupancy date.</div><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div></div> 1046000 1142000 1120000 7389000 7936000 33950000 34956000 587000 757000 7349000 6632000 0.00125 20000000 20000000 <div style="font-family: 'Times New Roman', Times, serif; font-size: 9pt;"><div style="text-align: justify; line-height: 10.25pt; font-family: 'Times New Roman', Times, serif; font-size: 10pt; font-weight: bold;">1. Description of business</div><div style="text-align: justify; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div><div style="text-align: justify; line-height: 11.05pt; margin-bottom: 8pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">TransAct Technologies Incorporated (&#8220;TransAct&#8221; or the &#8220;Company&#8221;), which has its headquarters in Hamden, CT and its primary operating facility in Ithaca, New York, operates in one operating segment: software-driven technology and printing solutions for high growth markets including restaurant solutions, casino and gaming, lottery, POS automation and banking, and oil and gas markets.&#160;&#160;Our solutions are designed from the ground up based on market and customer requirements and are sold under the AccuDate&#8482; Ithaca&#174;, Epic, EPICENTRAL^TM and Printrex&#174; product brands.&#160;&#160;We sell our products to original equipment manufacturers, value-added resellers, select distributors, and directly to end-users.&#160; Our product distribution spans across the Americas, Europe, the Middle East, Africa, Asia, Australia, the Caribbean Islands and the South Pacific. TransAct also provides world-class service, spare parts, accessories and printing supplies to its growing worldwide installed base of products.&#160; We also generate revenue from the after-market side of the business, providing printer and terminal service, supplies and spare parts in addition to revenue from our software solution, the EPICENTRAL^TM Print System (&#8220;EPICENTRAL^TM&#8221;), that enables casino operators to create promotional coupons and marketing messages and print them in real-time at the slot machine.</font></div></div> -1919000 -4516000 -5964000 -600000 -1473000 -985000 4624000 5918000 5109000 5426000 3617000 3211000 0 0 3617000 5426000 0 0 0 0 0 0 3211000 0 0 0 0 1210000 867000 -412000 943000 962000 1813000 2574000 680000 <div style="font-family: 'Times New Roman', Times, serif; font-size: 9pt;"><div style="text-align: left; line-height: 10.25pt; font-family: 'Times New Roman', Times, serif; font-size: 10pt; font-weight: bold;">16. Accounting pronouncements</div><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div><div style="text-align: justify; line-height: 11.05pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">In February&#160;2016, the Financial Accounting Standards Board (&#8220;FASB&#8221;)&#160;issued Accounting Standards Update (&#8220;ASU&#8221;)&#160;No. 2016-02, <font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-style: italic;">Leases (Topic 842</font>), which sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract (i.e., lessees and lessors).&#160; The new standard requires lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase by the lessee.&#160; This classification will determine whether lease expense is recognized based on an effective interest method or on a straight-line basis over the term of the lease, respectively.&#160; A lessee is also required to record a right-of-use asset and a lease liability for all leases with a term of greater than 12 months regardless of their classification.&#160; Leases with a term of 12 months or less will be accounted for similar to existing guidance for operating leases today.&#160; ASU&#160;2016-02 supersedes the previous leases standard, ASC&#160;840, <font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-style: italic;">Leases</font>, and is effective for public entities for annual periods beginning after December&#160;15, 2018 and for interim periods within those fiscal years.&#160; Early adoption is permitted.&#160; The Company does have leases for equipment and real property which exceed 12 months and we are in the process of finalizing our evaluation of the impact of Topic 842.&#160; The Company intends to elect the package of practical expedients and currently expects that most of its operating lease commitments will be subject to the new standard and recognized as operating lease liabilities and right-of-use assets upon adoption of Topic 842.&#160; While we expect to record material right-of-use assets and corresponding lease liability upon adoption of Topic 482, we do not expect adoption of the guidance will result in a material impact on the Company's results of operations or cash flows.&#160;</font></div><div style="line-height: 11.05pt;"><br style="line-height: 11.05pt;" /></div></div> -293000 -30000 -42000 1 1035000 6814000 5200000 6759000 19848000 19984000 18599000 0 0 433000 889000 703000 266000 1040000 17000 10000 -29000 0 0 17000 0 0 0 0 -29000 0 0 0 10000 0 0 0 33000 31000 517000 677000 247000 242000 656000 525000 -266000 -4000 -9000 3571000 2000000 358000 2667000 2416000 2581000 0 265000 23000 608000 1007000 835000 150000 0 466000 0.01 0.01 0.01 0.01 200000 4800000 4800000 200000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 8000 1043000 23000 416000 P5Y P3Y P10Y P5Y P7Y P10Y <div style="font-family: 'Times New Roman', Times, serif; font-size: 9pt;"><div style="text-align: justify; line-height: 10.25pt; font-family: 'Times New Roman', Times, serif; font-size: 10pt; font-weight: bold;">4. Fixed assets</div><div style="text-align: justify; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div><div style="text-align: justify; line-height: 10.25pt; font-family: 'Times New Roman', Times, serif; font-size: 10pt;">The components of fixed assets, net are:</div><div style="text-align: justify; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div><table cellpadding="0" cellspacing="0" style="font-family: 'Times New Roman', Times, serif; font-size: 9pt; width: 100%;"><tr><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="6" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">December 31,</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-style: italic;">(In thousands)</font></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="2" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">2018</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="2" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">2017</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 76%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Tooling, machinery and equipment</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">11,177</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">11,019</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 76%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Furniture and office equipment</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">1,690</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">1,651</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 76%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Computer software and equipment</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">6,930</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">6,503</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 76%; padding-bottom: 2px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Leasehold improvements</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">2,666</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">2,475</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 76%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">22,463</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">21,648</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 76%; padding-bottom: 2px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Less: Accumulated depreciation and amortization</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">(20,518</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">)</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">(19,752</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">)</font></div></div></td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 76%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">1,945</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">1,896</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 76%; padding-bottom: 2px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Construction in-process</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">327</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">273</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 76%; padding-bottom: 4px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 double 4px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">2,272</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 double 4px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">2,169</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #CCEEFF;">&#160;</td></tr></table><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></div> 6503000 2666000 11177000 22463000 273000 327000 1690000 2475000 21648000 1651000 6930000 11019000 <div style="font-family: 'Times New Roman', Times, serif; font-size: 9pt;"><div style="text-align: justify; line-height: 10.25pt; font-family: 'Times New Roman', Times, serif; font-size: 10pt;">The components of fixed assets, net are:</div><div style="text-align: justify; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div><table cellpadding="0" cellspacing="0" style="font-family: 'Times New Roman', Times, serif; font-size: 9pt; width: 100%;"><tr><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="6" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">December 31,</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-style: italic;">(In thousands)</font></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="2" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">2018</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="2" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">2017</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 76%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Tooling, machinery and equipment</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">11,177</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">11,019</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 76%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Furniture and office equipment</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">1,690</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">1,651</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 76%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Computer software and equipment</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">6,930</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">6,503</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 76%; padding-bottom: 2px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Leasehold improvements</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">2,666</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">2,475</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 76%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">22,463</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">21,648</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 76%; padding-bottom: 2px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Less: Accumulated depreciation and amortization</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">(20,518</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">)</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">(19,752</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">)</font></div></div></td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 76%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">1,945</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">1,896</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 76%; padding-bottom: 2px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Construction in-process</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">327</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">273</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 76%; padding-bottom: 4px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 double 4px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">2,272</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 double 4px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">2,169</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #CCEEFF;">&#160;</td></tr></table><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></div> <div style="font-family: 'Times New Roman', Times, serif; font-size: 9pt;"><div style="text-align: justify; line-height: 10.25pt; font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; font-style: italic;">Fixed assets:</font>&#160;&#160;Fixed assets are stated at cost.&#160;&#160;Depreciation is recorded using the straight-line method over the estimated useful lives.&#160;&#160;The estimated useful life of tooling is five years; machinery and equipment is ten years; furniture and office equipment is five to ten years; and computer software and equipment is three to seven years.&#160;&#160;Leasehold improvements are amortized over the shorter of the term of the lease or the useful life of the asset.&#160;&#160;Costs related to repairs and maintenance are expensed as incurred.&#160;&#160;The costs of sold or retired assets are removed from the related asset and accumulated depreciation accounts and any gain or loss is recognized.&#160;&#160;Depreciation expense was $870 thousand, $844 thousand and $987 thousand in 2018, 2017, and 2016, respectively.</div><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div></div> 2169000 2272000 1896000 1945000 1548000 2241000 660000 1767000 621000 505000 1581000 50000 105000 0 <div style="font-family: 'Times New Roman', Times, serif; font-size: 9pt;"><div style="text-align: justify; line-height: 10.25pt; font-family: 'Times New Roman', Times, serif; font-size: 10pt; font-weight: bold;">15. Quarterly results of operations (unaudited)</div><div style="text-align: justify; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div><div style="text-align: justify; line-height: 10.25pt; font-family: 'Times New Roman', Times, serif; font-size: 10pt;">Our quarterly results of operations for 2018 and 2017 are as follows:</div><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div><table cellpadding="0" cellspacing="0" style="font-family: 'Times New Roman', Times, serif; font-size: 9pt; width: 100%;"><tr><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="14" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Quarter Ended</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;"><div style="text-align: justify; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-style: italic;">(In thousands, except per share amounts)</font></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="2" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">March 31</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="2" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">June 30</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="2" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">September 30</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="2" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">December 31</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom;"><div style="text-align: justify; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">2018:</font></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom;">&#160;</td><td colspan="2" valign="bottom" style="vertical-align: bottom;">&#160;</td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom;">&#160;</td><td colspan="2" valign="bottom" style="vertical-align: bottom;">&#160;</td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom;">&#160;</td><td colspan="2" valign="bottom" style="vertical-align: bottom;">&#160;</td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom;">&#160;</td><td colspan="2" valign="bottom" style="vertical-align: bottom;">&#160;</td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 52%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; margin-left: 9pt; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Net sales</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">12,243</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">14,751</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">15,838</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">11,755</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 52%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; margin-left: 9pt; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Gross profit</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">5,862</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">6,991</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">8,004</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">5,886</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 52%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; margin-left: 9pt; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Net income</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">680</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">1,210</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">2,574</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">962</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 52%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; margin-left: 9pt; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Net income per common share:</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;">&#160;</td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;">&#160;</td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;">&#160;</td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;">&#160;</td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 52%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; margin-left: 18pt; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Basic</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">0.09</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">0.16</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">0.35</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">0.13</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 52%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; margin-left: 18pt; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Diluted</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">0.09</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">0.16</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">0.33</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">0.12</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td></tr></table><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div><table cellpadding="0" cellspacing="0" style="font-family: 'Times New Roman', Times, serif; font-size: 9pt; width: 100%;"><tr><td valign="bottom" style="vertical-align: bottom;"><div style="text-align: justify; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">2017:</font></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom;">&#160;</td><td colspan="2" valign="bottom" style="vertical-align: bottom;">&#160;</td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom;">&#160;</td><td colspan="2" valign="bottom" style="vertical-align: bottom;">&#160;</td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom;">&#160;</td><td colspan="2" valign="bottom" style="vertical-align: bottom;">&#160;</td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom;">&#160;</td><td colspan="2" valign="bottom" style="vertical-align: bottom;">&#160;</td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 52%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; margin-left: 9pt; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Net sales</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">13,997</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">13,596</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">15,524</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">13,194</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 52%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; margin-left: 9pt; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Gross profit</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">6,093</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">6,430</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">7,519</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">6,620</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 52%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; margin-left: 9pt; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Net income (loss)</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">943</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">867</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">1,813</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">(412</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">)</font></div></div></td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 52%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; margin-left: 9pt; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Net income (loss) per common share:</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;">&#160;</td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;">&#160;</td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;">&#160;</td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;">&#160;</td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 52%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; margin-left: 18pt; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Basic</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">0.13</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">0.12</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">0.24</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">(0.06</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">)</font></div></div></td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 52%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; margin-left: 18pt; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Diluted</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">0.13</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">0.12</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">0.24</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">(0.06</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">)</font></div></div></td></tr></table><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div></div> <div style="font-family: 'Times New Roman', Times, serif; font-size: 9pt;"><div style="text-align: justify; line-height: 10.25pt; font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; font-style: italic;">Allowance for doubtful accounts</font><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold;">:</font>&#160;&#160;We establish an allowance for doubtful accounts to ensure trade receivables are valued appropriately. We maintain an allowance for doubtful accounts based on a variety of factors, including the length of time receivables are past due, significant one-time events and historical experience.&#160;&#160;We record a specific allowance for individual accounts when we become aware of a customer&#8217;s inability to meet its financial obligations, such as in the case of bankruptcy filings or deterioration in the customer&#8217;s operating results or financial position.&#160;&#160;If circumstances related to customers change, we would further adjust estimates of the recoverability of receivables.&#160;&#160;Allowances for doubtful accounts on accounts receivable balances were $205 thousand and $100 thousand as of December 31, 2018 and 2017, respectively.</div><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div><div style="text-align: left; line-height: 10.25pt; font-family: 'Times New Roman', Times, serif; font-size: 10pt;">The following table summarizes the activity recorded in the valuation account for accounts receivable:</div><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div><table cellpadding="0" cellspacing="0" style="font-family: 'Times New Roman', Times, serif; font-size: 9pt; width: 100%;"><tr><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="10" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Year Ended December 31,</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;"><div style="text-align: justify; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">(In thousands)</font></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="2" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">2018</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="2" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">2017</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="2" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">2016</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 64%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Balance, beginning of period</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">100</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">50</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">50</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 64%; padding-bottom: 2px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Additions charged to costs and expenses</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">105</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">50</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#8211;</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 64%; padding-bottom: 4px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Balance, end of period</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 double 4px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">205</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 double 4px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">100</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 double 4px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">50</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #CCEEFF;">&#160;</td></tr></table><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div></div> 8025000 10948000 <div style="font-family: 'Times New Roman', Times, serif; font-size: 9pt;"><div style="text-align: justify; line-height: 10.25pt; font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; font-style: italic;">Engineering, design and product development:</font>&#160;&#160;Research and development ("R&amp;D") expenses include expenses incurred in connection with specialized engineering and design to introduce new products and to customize existing products, and are expensed as a component of operating expenses as incurred.&#160;&#160;We recorded $4.6 million, $4.3 million and $4.4 million of research and development expenses in 2018, 2017, and 2016, respectively.</div><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div><div style="text-align: justify; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Costs incurred in researching and developing a computer software product are charged to expense until technological feasibility has been established, at which point all material software costs are capitalized within Intangible assets in our Consolidated Balance Sheet until the product is available for general release to customers.&#160;&#160;While judgment is required in determining when technological feasibility of a product is established, we have determined that it is reached after all high-risk development issues have been documented in a formal detailed plan design.&#160;&#160;The amortization of these costs have been included in cost of sales over the estimated life of the product.&#160;&#160;During 2018, we contracted several third-parties to develop software for our restaurant solutions products.&#160; Unamortized development costs for such software were $586 thousand as of December 31, 2018.&#160;&#160;The total amount charged to cost of sales for capitalized software development costs was $30 thousand, $2 thousand and $29 thousand in 2018, 2017, and 2016, respectively.</font></div><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div></div> 4303000 4425000 4576000 24756000 27515000 54587000 56311000 57235000 269000 7122000 11069000 4133000 17518000 10671000 4579000 3046000 26593000 43518000 9075000 1081000 7273000 151000 11752000 47000 1297000 3093000 1028000 446000 48720000 11693000 11069000 7591000 43518000 45542000 12243000 13194000 15838000 13596000 11755000 15524000 14751000 13997000 5600000 4100000 1400000 <div style="font-family: 'Times New Roman', Times, serif; font-size: 9pt;"><div style="text-align: justify; line-height: 10.25pt; margin-bottom: 8pt; font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; font-style: italic;">Revenue recognition:</font>&#160;ASU No. 2014-09, "Revenue from Contracts with Customers&#8221; and its related amendments (collectively, ASC 606) are effective for reporting periods beginning after December 15, 2017, and interim periods therein.&#160; This ASU is intended to clarify the principles for recognizing revenue by removing inconsistencies in revenue requirements; providing a more robust framework for addressing revenue issues; improving comparability of revenue recognition practices across entities, industries, jurisdictions and capital markets; and providing more useful information to users of financial statements through improved revenue disclosure requirements.&#160; Entities have the option of using either a full retrospective approach or modified retrospective approach to adopt the amended guidance.&#160; We adopted ASC 606 effective January 1, 2018 and elected the modified retrospective approach.&#160; The results for periods before 2018 were not adjusted for the new standard and there was no cumulative effect for the change in accounting at the date of adoption.</div><div style="text-align: justify; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">In accordance with ASC 606, a performance obligation is a promise in a contract with a customer to transfer a distinct good or service to the customer. Some of our contracts with customers contain a single performance obligation, while other contracts contain multiple performance obligations (most commonly when contracts include product and extended warranties). A contract's transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. When there are multiple performance obligations within a contract, we allocate the transaction price to each performance obligation based on its standalone selling price.</font></div><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div><div style="text-align: justify; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">The transaction price is determined based on the consideration to which the Company will be entitled in exchange for transferring services to the customer. To the extent the transaction price includes variable consideration, such as price protection, reserves for returns and other allowances, the Company estimates the amount of variable consideration that should be included in the transaction price utilizing either the &#8220;expected value&#8221; method or the &#8220;most likely amount&#8221; method depending on the nature of the variable consideration. Variable consideration is included in the transaction price if, in the Company&#8217;s judgment, it is probable that a significant future reversal of cumulative revenue under the contract will not occur.</font></div><div style="text-align: justify; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;"></font><br style="line-height: 10.25pt;" /></div><div style="text-align: justify; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">For a majority of our revenue, which consists of printers, terminals, consumables, and replacement parts, the Company recognizes revenue as of a point of time.&#160; The transaction price is recognized upon shipment of the order when control of the goods is transferred to the customer and at the time the performance obligation is fulfilled.&#160; We also sell a software solution, EPICENTRAL&#8482;, that enables casino operators to create promotional coupons and marketing messages and to print them in real-time at the slot machine.&#160; EPICENTRAL^TM is primarily comprised of both a software component, which is licensed to the customer, and a hardware component.&#160; EPICENTRAL&#8482; software and hardware are integrated to deliver the system's full functionality.&#160; The transaction prices from EPICENTRAL&#8482; software license and hardware are recognized upon installation and formal acceptance by the customer when control of the license is transferred to the customer.&#160; For out-of-warranty repairs, the transaction price is recognized after completion of the repair work is completed and the printer or terminal is returned to the customer, as control of the product is transferred to the customer and our performance obligation is completed.</font></div><div style="text-align: justify; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;"></font><br style="line-height: 10.25pt;" /></div><div style="text-align: justify; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Performance obligations are satisfied over time if the customer receives the benefits as we perform work, if the customer controls the asset as it is being produced, or if the product being produced for the customer has no alternative use and we have a contractual right to payment. For our separately priced extended warranty, technical support for our restaurant solution terminals and maintenance agreements (including free one-year maintenance received by the customers upon completion of EPICENTRAL&#8482; installation) revenue is recognized over time as the customer receives the benefit.&#160; The transaction price from the maintenance services is recognized ratably over time, using output methods, as control of the services is transferred to the customer. For extended warranties, the transaction price is recognized ratably over the warranty period, using output methods, as control of the services is transferred to the customer.</font></div><div style="text-align: justify; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;"></font><br style="line-height: 10.25pt;" /></div><div style="text-align: justify; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">In the cases where there is more than one performance obligation in a customer arrangement, the Company typically uses the &#8220;standalone selling price&#8221; method to determine the transaction price to allocate to each performance obligation. The Company sells the performance obligations separately and has established standalone selling prices for its products and services. In the case of an overall price discount, the discount is applied to each performance obligation proportionately based on standalone selling price. To determine the standalone selling price for initial EPICENTRAL&#8482; installations, the Company uses the adjusted market assessment approach.</font></div><div style="text-align: justify; line-height: 10.25pt; font-family: 'Times New Roman', Times, serif; font-size: 10pt; font-weight: bold;">Disaggregation of revenue</div><div style="text-align: justify; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">The following table disaggregates our revenue by market-type, as we believe it best depicts how the nature, amount, timing and uncertainty of our revenue and cash flows are affected by economic factors.&#160; Sales and usage-based taxes are excluded from revenues.</font></div><div style="line-height: 11.05pt;"><br style="line-height: 11.05pt;" /></div><table cellpadding="0" cellspacing="0" style="font-family: 'Times New Roman', Times, serif; font-size: 9pt; width: 100%;"><tr><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="10" valign="bottom" style="vertical-align: top; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold;">Year Ended</font></div><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold;">December 31, 2018</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="2" valign="bottom" style="vertical-align: top; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">United States</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="2" valign="bottom" style="vertical-align: top; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">International</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="2" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Total</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom;">&#160;</td><td colspan="10" valign="bottom" style="vertical-align: top;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-style: italic;">(In thousands)</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 64%; background-color: #CCEEFF;"><div style="text-align: left; margin-left: 7.2pt; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Restaurant solutions</font></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">4,133</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">446</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">4,579</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 64%; background-color: #FFFFFF;"><div style="text-align: left; margin-left: 7.2pt; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">POS Automation and Banking</font></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">7,122</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">151</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">7,273</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 64%; background-color: #CCEEFF;"><div style="text-align: left; margin-left: 7.2pt; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Casino and Gaming</font></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">17,518</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">9,075</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">26,593</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 64%; background-color: #FFFFFF;"><div style="text-align: left; margin-left: 7.2pt; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Lottery</font></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">3,046</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">47</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">3,093</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 64%; background-color: #CCEEFF;"><div style="text-align: left; margin-left: 7.2pt; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Printrex</font></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">1,028</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">269</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">1,297</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 64%; padding-bottom: 2px; background-color: #FFFFFF;"><div style="text-align: left; margin-left: 7.2pt; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">TransAct Services Group</font></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">10,671</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">1,081</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">11,752</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 64%; padding-bottom: 4px; background-color: #CCEEFF;"><div style="text-align: left; margin-left: 16.2pt; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Total net sales</font></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #CCEEFF;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 double 4px; background-color: #CCEEFF;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">43,518</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #CCEEFF;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 double 4px; background-color: #CCEEFF;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">11,069</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #CCEEFF;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 double 4px; background-color: #CCEEFF;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">54,587</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #CCEEFF;">&#160;</td></tr></table><div style="line-height: 12.3pt;"><br style="line-height: 12.3pt;" /></div><div style="text-align: justify; line-height: 10.25pt; font-family: 'Times New Roman', Times, serif; font-size: 10pt; font-weight: bold;">Changes in accounting policies and financial statement impact of adopting ASC 606</div><div style="text-align: justify; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Except for the changes below, we have consistently applied the accounting policies to all periods presented in the consolidated financial statements.&#160; As noted above, we adopted ASC 606 using the modified retrospective approach which allows the Company to record any changes using the cumulative effect.&#160; The adoption of ASC 606 did not require the Company to record an adjustment to retained earnings at January 1, 2018, and did not have an impact on the consolidated income statement during the year ended December 31, 2018, basic or diluted earnings per share, consolidated statement of cash flows, consolidated statement of shareholder's equity, or consolidated balance sheet,&#160; at December 31, 2018.</font></div><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div><div style="text-align: justify; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-style: italic;">Costs to Obtain a Contract</font><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold;"> &#8211; </font>Costs to obtain a contract, such as sales commissions, were previously expensed as incurred. The Company applied the practical expedient for contracts with customers for a term of twelve months or less, in accordance with ASC 340-40-25-4, which allows TransAct to continue to expense sales commissions as incurred, since the expected amortization period of the cost to obtain a contract is less than 12 months.&#160; No amounts were capitalized as of the adoption of ASC 606 or as of December 31, 2018.</font></div><div style="line-height: 11.4pt;"><br style="line-height: 11.4pt;" /></div><div style="text-align: justify; line-height: 10.25pt; font-family: 'Times New Roman', Times, serif; font-size: 10pt; font-weight: bold;">Contract balances</div><div style="text-align: justify; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Our contract liabilities consist of customer pre-payments and deferred revenue.&#160; Customer prepayments are reported as &#8220;Accrued Liabilities&#8221; in current liabilities in the Condensed Consolidated Balance Sheets and represent customer payments made in advance of performance obligations in instances where credit has not been extended and is recognized as revenue when the performance obligation is complete.&#160; Deferred revenue is reported separately in current liabilities and non-current liabilities and consists of our extended warranty contracts, technical support for our restaurant solution terminals, EPICENTRAL&#8482; maintenance contracts and testing service contracts, and is recognized as revenue as (or when) we perform under the contract.&#160; The increase in current and non-current deferred revenue is due to the sale of extended warranties and technical support for our restaurant solution terminals.&#160; We do not have any contract asset balances as of December 31, 2018 or 2017.&#160; During the year ended December 31, 2018, we recognized revenue of $1.2 million related to our contract liabilities at January 1, 2018.&#160; Total contract liabilities consist of the following:</font></div><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div><table cellpadding="0" cellspacing="0" style="font-family: 'Times New Roman', Times, serif; font-size: 9pt; width: 100%;"><tr><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="2" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold;">December 31, 2018</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="2" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold;">January 1, 2018</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom;">&#160;</td><td colspan="6" valign="bottom" style="vertical-align: bottom;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-style: italic;">(In thousands)</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 76%; background-color: #CCEEFF;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Customer pre-payments</font></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold;">$</font></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold;">50</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">79</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 76%; background-color: #FFFFFF;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Deferred revenue, current</font></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold;">384</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">169</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 76%; padding-bottom: 2px; background-color: #CCEEFF;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Deferred revenue, non-current</font></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold;">265</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">69</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 76%; padding-bottom: 4px; background-color: #FFFFFF;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Total contract liabilities</font></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #FFFFFF;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold;">$</font></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 double 4px; background-color: #FFFFFF;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold;">699</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #FFFFFF;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 double 4px; background-color: #FFFFFF;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">317</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #FFFFFF;">&#160;</td></tr></table><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div><div style="text-align: justify; line-height: 10.25pt; font-family: 'Times New Roman', Times, serif; font-size: 10pt; font-weight: bold;">Remaining performance obligations</div><div style="text-align: justify; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Remaining performance obligations represent the transaction price of firm orders for which a good or service has not been delivered to our customer.&#160; As of December 31, 2018, the aggregate amount of the transaction price allocated to remaining performance obligations was $5.6 million.&#160; The Company expects to recognize revenue on $4.1 million of our remaining performance obligations within the next 12 months, $1.4 million within the next 24 months and the balance of these remaining performance obligations recognized within the next 36 months.</font></div><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div></div> P12M P12M P12M 961000 1104000 1136000 P4Y8M12D P1Y10M24D P6Y1M6D 656000 4.38 12.91 1.70 1.95 7.31 7.53 P10Y P10Y P6Y9M18D P6Y9M18D P6Y10M24D <div style="font-family: 'Times New Roman', Times, serif; font-size: 9pt;"><div style="text-align: justify; line-height: 10.25pt; font-family: 'Times New Roman', Times, serif; font-size: 10pt;">The components of inventories are:</div><div style="text-align: justify; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div><table cellpadding="0" cellspacing="0" style="font-family: 'Times New Roman', Times, serif; font-size: 9pt; width: 100%;"><tr><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="6" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">December 31,</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-style: italic;">(In thousands)</font></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="2" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">2018</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="2" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">2017</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 76%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Raw materials and purchased component parts</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">6,593</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">6,322</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 76%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Work-in-process</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">29</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#8211;</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 76%; padding-bottom: 2px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Finished goods</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">6,213</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">2,553</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 76%; padding-bottom: 4px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 double 4px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">12,835</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 double 4px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">8,875</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #FFFFFF;">&#160;</td></tr></table><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div></div> <div style="font-family: 'Times New Roman', Times, serif; font-size: 9pt;"><div style="text-align: justify; line-height: 10.25pt; font-family: 'Times New Roman', Times, serif; font-size: 10pt;">Our quarterly results of operations for 2018 and 2017 are as follows:</div><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div><table cellpadding="0" cellspacing="0" style="font-family: 'Times New Roman', Times, serif; font-size: 9pt; width: 100%;"><tr><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="14" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Quarter Ended</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;"><div style="text-align: justify; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-style: italic;">(In thousands, except per share amounts)</font></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="2" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">March 31</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="2" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">June 30</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="2" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">September 30</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="2" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">December 31</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom;"><div style="text-align: justify; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">2018:</font></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom;">&#160;</td><td colspan="2" valign="bottom" style="vertical-align: bottom;">&#160;</td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom;">&#160;</td><td colspan="2" valign="bottom" style="vertical-align: bottom;">&#160;</td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom;">&#160;</td><td colspan="2" valign="bottom" style="vertical-align: bottom;">&#160;</td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom;">&#160;</td><td colspan="2" valign="bottom" style="vertical-align: bottom;">&#160;</td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 52%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; margin-left: 9pt; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Net sales</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">12,243</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">14,751</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">15,838</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">11,755</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 52%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; margin-left: 9pt; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Gross profit</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">5,862</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">6,991</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">8,004</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">5,886</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 52%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; margin-left: 9pt; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Net income</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">680</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">1,210</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">2,574</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">962</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 52%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; margin-left: 9pt; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Net income per common share:</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;">&#160;</td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;">&#160;</td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;">&#160;</td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;">&#160;</td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 52%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; margin-left: 18pt; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Basic</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">0.09</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">0.16</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">0.35</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">0.13</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 52%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; margin-left: 18pt; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Diluted</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">0.09</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">0.16</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">0.33</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">0.12</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td></tr></table><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div><table cellpadding="0" cellspacing="0" style="font-family: 'Times New Roman', Times, serif; font-size: 9pt; width: 100%;"><tr><td valign="bottom" style="vertical-align: bottom;"><div style="text-align: justify; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">2017:</font></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom;">&#160;</td><td colspan="2" valign="bottom" style="vertical-align: bottom;">&#160;</td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom;">&#160;</td><td colspan="2" valign="bottom" style="vertical-align: bottom;">&#160;</td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom;">&#160;</td><td colspan="2" valign="bottom" style="vertical-align: bottom;">&#160;</td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom;">&#160;</td><td colspan="2" valign="bottom" style="vertical-align: bottom;">&#160;</td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 52%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; margin-left: 9pt; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Net sales</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">13,997</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">13,596</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">15,524</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">13,194</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 52%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; margin-left: 9pt; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Gross profit</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">6,093</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">6,430</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">7,519</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">6,620</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 52%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; margin-left: 9pt; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Net income (loss)</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">943</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">867</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">1,813</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">(412</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">)</font></div></div></td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 52%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; margin-left: 9pt; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Net income (loss) per common share:</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;">&#160;</td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;">&#160;</td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;">&#160;</td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;">&#160;</td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 52%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; margin-left: 18pt; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Basic</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">0.13</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">0.12</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">0.24</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">(0.06</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">)</font></div></div></td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 52%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; margin-left: 18pt; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Diluted</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">0.13</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">0.12</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">0.24</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">(0.06</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">)</font></div></div></td></tr></table><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div></div> <div style="font-family: 'Times New Roman', Times, serif; font-size: 9pt;"><div style="text-align: justify; line-height: 10.25pt; font-family: 'Times New Roman', Times, serif; font-size: 10pt;">Differences between the U.S. statutory federal income tax rate and our effective income tax rate are analyzed below:</div><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div><table cellpadding="0" cellspacing="0" style="font-family: 'Times New Roman', Times, serif; font-size: 9pt; width: 100%; border-collapse: collapse;"><tr><td style="width: 69.15%; vertical-align: bottom;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></td><td colspan="7" style="width: 30.85%; vertical-align: bottom; border-bottom: #000000 2px solid;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Year Ended December 31,</font></div></td></tr><tr><td style="width: 69.15%; vertical-align: bottom;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></td><td colspan="2" style="width: 9.96%; vertical-align: bottom; border-bottom: #000000 2px solid;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">2018</font></div></td><td style="width: 0.97%; vertical-align: bottom;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></td><td colspan="2" style="width: 9.95%; vertical-align: bottom; border-bottom: #000000 2px solid;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">2017</font></div></td><td style="width: 0.98%; vertical-align: bottom;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></td><td style="width: 8.98%; vertical-align: bottom; border-bottom: #000000 2px solid;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">2016</font></div></td></tr><tr><td style="width: 69.15%; vertical-align: bottom;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></td><td colspan="2" style="width: 9.96%; vertical-align: bottom;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></td><td style="width: 0.97%; vertical-align: bottom;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></td><td colspan="2" style="width: 9.95%; vertical-align: bottom;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></td><td style="width: 0.98%; vertical-align: bottom;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></td><td style="width: 8.98%; vertical-align: bottom;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></td></tr><tr><td style="width: 69.15%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Federal statutory tax rate</font></div></div></td><td style="width: 0.98%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></div></td><td style="width: 8.98%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: right; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">21.0%</font></div></div></td><td style="width: 0.97%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: right; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></div></td><td style="width: 0.98%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></div></td><td style="width: 8.97%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: right; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">34.0%</font></div></div></td><td style="width: 0.98%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></div></td><td style="width: 8.98%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: right; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">34.0%</font></div></div></td></tr><tr><td style="width: 69.15%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">State income taxes, net of federal income taxes</font></div></div></td><td style="width: 0.98%; vertical-align: bottom; background-color: #FFFFFF;">&#160;</td><td style="width: 8.98%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: right; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">1.2</font></div></div></td><td style="width: 0.97%; vertical-align: bottom; background-color: #FFFFFF;">&#160;</td><td style="width: 0.98%; vertical-align: bottom; background-color: #FFFFFF;">&#160;</td><td style="width: 8.97%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: right; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">1.3</font></div></div></td><td style="width: 0.98%; vertical-align: bottom; background-color: #FFFFFF;">&#160;</td><td style="width: 8.98%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: right; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">0.4</font></div></div></td></tr><tr><td style="width: 69.15%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Valuation allowance and tax accruals</font></div></div></td><td style="width: 0.98%; vertical-align: bottom; background-color: #FFFFFF;">&#160;</td><td style="width: 8.98%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: right; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">1.0</font></div></div></td><td style="width: 0.97%; vertical-align: bottom; background-color: #FFFFFF;">&#160;</td><td style="width: 0.98%; vertical-align: bottom; background-color: #FFFFFF;">&#160;</td><td style="width: 8.97%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: right; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">1.6</font></div></div></td><td style="width: 0.98%; vertical-align: bottom; background-color: #FFFFFF;">&#160;</td><td style="width: 8.98%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: right; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">1.6</font></div></div></td></tr><tr><td style="width: 69.15%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Miscellaneous permanent items</font></div></div></td><td style="width: 0.98%; vertical-align: bottom; background-color: #FFFFFF;">&#160;</td><td style="width: 8.98%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: right; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">0.7</font></div></div></td><td style="width: 0.97%; vertical-align: bottom; background-color: #FFFFFF;">&#160;</td><td style="width: 0.98%; vertical-align: bottom; background-color: #FFFFFF;">&#160;</td><td style="width: 8.97%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: right; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">(0.5)</font></div></div></td><td style="width: 0.98%; vertical-align: bottom; background-color: #FFFFFF;">&#160;</td><td style="width: 8.98%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: right; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">(1.2)</font></div></div></td></tr><tr><td style="width: 69.15%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">U.S. corporate tax rate change</font></div></div></td><td style="width: 0.98%; vertical-align: bottom; background-color: #FFFFFF;">&#160;</td><td style="width: 8.98%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: right; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">0.0</font></div></div></td><td style="width: 0.97%; vertical-align: bottom; background-color: #FFFFFF;">&#160;</td><td style="width: 0.98%; vertical-align: bottom; background-color: #FFFFFF;">&#160;</td><td style="width: 8.97%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: right; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">19.4</font></div></div></td><td style="width: 0.98%; vertical-align: bottom; background-color: #FFFFFF;">&#160;</td><td style="width: 8.98%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: right; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">0.0</font></div></div></td></tr><tr><td style="width: 69.15%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Stock option cancellations</font></div></div></td><td style="width: 0.98%; vertical-align: bottom; background-color: #FFFFFF;">&#160;</td><td style="width: 8.98%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: right; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">0.0</font></div></div></td><td style="width: 0.97%; vertical-align: bottom; background-color: #FFFFFF;">&#160;</td><td style="width: 0.98%; vertical-align: bottom; background-color: #FFFFFF;">&#160;</td><td style="width: 8.97%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: right; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">1.7</font></div></div></td><td style="width: 0.98%; vertical-align: bottom; background-color: #FFFFFF;">&#160;</td><td style="width: 8.98%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: right; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">0.0</font></div></div></td></tr><tr><td style="width: 69.15%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Uncertain tax positions</font></div></div></td><td style="width: 0.98%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></div></td><td style="width: 8.98%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: right; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">0.0</font></div></div></td><td style="width: 0.97%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: right; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></div></td><td style="width: 0.98%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></div></td><td style="width: 8.97%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: right; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">(0.1)</font></div></div></td><td style="width: 0.98%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></div></td><td style="width: 8.98%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: right; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">(0.1)</font></div></div></td></tr><tr><td style="width: 69.15%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Stock award excess tax benefit</font></div></div></td><td style="width: 0.98%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></div></td><td style="width: 8.98%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: right; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">(1.5)</font></div></div></td><td style="width: 0.97%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: right; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></div></td><td style="width: 0.98%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></div></td><td style="width: 8.97%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: right; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">(1.4)</font></div></div></td><td style="width: 0.98%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></div></td><td style="width: 8.98%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: right; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">0.0</font></div></div></td></tr><tr><td style="width: 69.15%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Foreign-derived intangible income deduction</font></div></div></td><td style="width: 0.98%; vertical-align: bottom; background-color: #FFFFFF;">&#160;</td><td style="width: 8.98%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: right; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">(1.5)</font></div></div></td><td style="width: 0.97%; vertical-align: bottom; background-color: #FFFFFF;">&#160;</td><td style="width: 0.98%; vertical-align: bottom; background-color: #FFFFFF;">&#160;</td><td style="width: 8.97%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: right; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">0.0</font></div></div></td><td style="width: 0.98%; vertical-align: bottom; background-color: #FFFFFF;">&#160;</td><td style="width: 8.98%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: right; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">0.0</font></div></div></td></tr><tr><td style="width: 69.15%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">R&amp;D credit</font></div></div></td><td style="width: 0.98%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></div></td><td style="width: 8.98%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: right; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">(4.9)</font></div></div></td><td style="width: 0.97%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: right; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></div></td><td style="width: 0.98%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></div></td><td style="width: 8.97%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: right; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">(3.3)</font></div></div></td><td style="width: 0.98%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></div></td><td style="width: 8.98%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: right; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">(4.6)</font></div></div></td></tr><tr><td style="width: 69.15%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Other</font></div></div></td><td style="width: 0.98%; vertical-align: bottom; background-color: #FFFFFF; border-bottom: #000000 2px solid;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></div></td><td style="width: 8.98%; vertical-align: bottom; background-color: #FFFFFF; border-bottom: #000000 2px solid;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: right; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">0.1</font></div></div></td><td style="width: 0.97%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: right; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></div></td><td style="width: 0.98%; vertical-align: bottom; background-color: #FFFFFF; border-bottom: #000000 2px solid;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></div></td><td style="width: 8.97%; vertical-align: bottom; background-color: #FFFFFF; border-bottom: #000000 2px solid;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: right; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">(0.1)</font></div></div></td><td style="width: 0.98%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></div></td><td style="width: 8.98%; vertical-align: bottom; background-color: #FFFFFF; border-bottom: #000000 2px solid;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: right; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">(0.1)</font></div></div></td></tr><tr><td style="width: 69.15%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Effective tax rate</font></div></div></td><td style="width: 0.98%; vertical-align: bottom; background-color: #FFFFFF; border-bottom: #000000 4px double;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></div></td><td style="width: 8.98%; vertical-align: bottom; background-color: #FFFFFF; border-bottom: #000000 4px double;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: right; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">16.1%</font></div></div></td><td style="width: 0.97%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: right; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></div></td><td style="width: 0.98%; vertical-align: bottom; background-color: #FFFFFF; border-bottom: #000000 4px double;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></div></td><td style="width: 8.97%; vertical-align: bottom; background-color: #FFFFFF; border-bottom: #000000 4px double;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: right; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">52.6%</font></div></div></td><td style="width: 0.98%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></div></td><td style="width: 8.98%; vertical-align: bottom; background-color: #FFFFFF; border-bottom: #000000 4px double;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: right; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">30.0%</font></div></div></td></tr></table><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div></div> <div style="font-family: 'Times New Roman', Times, serif; font-size: 9pt;"><div style="text-align: justify; line-height: 10.25pt; font-family: 'Times New Roman', Times, serif; font-size: 10pt;">Information regarding our operations by geographic area is contained in the following table.&#160;&#160;These amounts in the geographic area table are based on the location of the customer and asset.</div><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div><table cellpadding="0" cellspacing="0" style="font-family: 'Times New Roman', Times, serif; font-size: 9pt; width: 100%;"><tr><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="10" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Year Ended December 31,</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-style: italic;">(In thousands)</font></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="2" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">2018</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="2" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">2017</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="2" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">2016</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Net sales:</font></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom;">&#160;</td><td colspan="2" valign="bottom" style="vertical-align: bottom;">&#160;</td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom;">&#160;</td><td colspan="2" valign="bottom" style="vertical-align: bottom;">&#160;</td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom;">&#160;</td><td colspan="2" valign="bottom" style="vertical-align: bottom;">&#160;</td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 64%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; margin-left: 9pt; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">United States</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">43,518</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">48,720</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">45,542</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 64%; padding-bottom: 2px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; margin-left: 9pt; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">International</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">11,069</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">7,591</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">11,693</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 64%; padding-bottom: 4px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; margin-left: 18pt; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Total</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 double 4px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">54,587</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 double 4px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">56,311</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 double 4px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">57,235</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #CCEEFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 64%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;">&#160;</td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;">&#160;</td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;">&#160;</td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 64%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Fixed assets, net:</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;">&#160;</td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;">&#160;</td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;">&#160;</td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 64%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; margin-left: 9pt; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">United States</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">1,767</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">1,548</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">1,581</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 64%; padding-bottom: 2px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; margin-left: 9pt; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">International</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">505</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">621</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">660</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 64%; padding-bottom: 4px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; margin-left: 18pt; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Total</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 double 4px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">2,272</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 double 4px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">2,169</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 double 4px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">2,241</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #FFFFFF;">&#160;</td></tr></table><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div></div> <div style="font-family: 'Times New Roman', Times, serif; font-size: 9pt;"><div style="text-align: justify; line-height: 10.25pt; font-family: 'Times New Roman', Times, serif; font-size: 10pt;">The table below indicates the key assumptions used in the option valuation calculations for options granted in 2018, 2017, and 2016 and a discussion of our methodology for developing each of the assumptions used in the valuation model:</div><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div><table cellpadding="0" cellspacing="0" style="font-family: 'Times New Roman', Times, serif; font-size: 9pt; width: 100%; border-collapse: collapse;"><tr><td style="width: 69.15%; vertical-align: bottom;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></td><td colspan="7" style="width: 30.85%; vertical-align: bottom; border-bottom: #000000 2px solid;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Year Ended December 31,</font></div></td></tr><tr><td style="width: 69.15%; vertical-align: bottom;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></td><td colspan="2" style="width: 9.96%; vertical-align: bottom; border-bottom: #000000 2px solid;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">2018</font></div></td><td style="width: 0.97%; vertical-align: bottom;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></td><td colspan="2" style="width: 9.95%; vertical-align: bottom; border-bottom: #000000 2px solid;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">2017</font></div></td><td style="width: 0.98%; vertical-align: bottom;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></td><td style="width: 8.98%; vertical-align: bottom; border-bottom: #000000 2px solid;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">2016</font></div></td></tr><tr><td style="width: 69.15%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: justify; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Expected option term (in years)</font></div></div></td><td colspan="2" style="width: 9.96%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: right; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">6.8</font></div></div></td><td style="width: 0.97%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: right; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></div></td><td colspan="2" style="width: 9.95%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: right; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">6.8</font></div></div></td><td style="width: 0.98%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></div></td><td style="width: 8.98%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: right; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">6.9</font></div></div></td></tr><tr><td style="width: 69.15%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: justify; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Expected volatility</font></div></div></td><td style="width: 0.98%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></div></td><td style="width: 8.98%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: right; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">38.0%</font></div></div></td><td style="width: 0.97%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: right; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></div></td><td style="width: 0.98%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></div></td><td style="width: 8.97%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: right; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">36.2%</font></div></div></td><td style="width: 0.98%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></div></td><td style="width: 8.98%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: right; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">38.8%</font></div></div></td></tr><tr><td style="width: 69.15%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: justify; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Risk-free interest rate</font></div></div></td><td style="width: 0.98%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></div></td><td style="width: 8.98%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: right; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">2.7%</font></div></div></td><td style="width: 0.97%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: right; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></div></td><td style="width: 0.98%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></div></td><td style="width: 8.97%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: right; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">2.1%</font></div></div></td><td style="width: 0.98%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></div></td><td style="width: 8.98%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: right; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">1.2%</font></div></div></td></tr><tr><td style="width: 69.15%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: justify; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Dividend yield</font></div></div></td><td style="width: 0.98%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></div></td><td style="width: 8.98%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: right; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">2.6%</font></div></div></td><td style="width: 0.97%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: right; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></div></td><td style="width: 0.98%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></div></td><td style="width: 8.97%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: right; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">4.3%</font></div></div></td><td style="width: 0.98%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></div></td><td style="width: 8.98%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: right; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">4.5%</font></div></div></td></tr></table><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div></div> <div style="font-family: 'Times New Roman', Times, serif; font-size: 9pt;"><div style="text-align: left; line-height: 10.25pt; font-family: 'Times New Roman', Times, serif; font-size: 10pt;">For 2018, 2017, and 2016, earnings per share was computed as follows (in thousands, except per share amounts):</div><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div><table cellpadding="0" cellspacing="0" style="font-family: 'Times New Roman', Times, serif; font-size: 9pt; width: 100%;"><tr><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="10" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Year Ended December 31,</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="2" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;"> 2018</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="2" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">2017</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="2" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">2016</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 64%; padding-bottom: 4px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; text-indent: -9pt; margin-left: 9pt; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Net income</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 double 4px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">5,426</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 double 4px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">3,211</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 double 4px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">3,617</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #CCEEFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 64%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;">&#160;</td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;">&#160;</td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;">&#160;</td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 64%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; text-indent: -9pt; margin-left: 9pt; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Shares:</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;">&#160;</td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;">&#160;</td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;">&#160;</td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 64%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; text-indent: -9pt; margin-left: 9pt; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Basic:&#160;&#160;Weighted average common shares outstanding</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">7,444</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">7,423</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">7,610</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 64%; padding-bottom: 2px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; text-indent: -9pt; margin-left: 9pt; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Add:&#160;&#160;Dilutive effect of outstanding equity awards as determined by the treasury stock method</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">315</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">169</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">45</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 64%; padding-bottom: 4px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; text-indent: -9pt; margin-left: 9pt; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Diluted:&#160;&#160;Weighted average common and common equivalent shares outstanding</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 double 4px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">7,759</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 double 4px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">7,592</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 double 4px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">7,655</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #FFFFFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 64%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;">&#160;</td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;">&#160;</td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;">&#160;</td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 64%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; text-indent: -9pt; margin-left: 9pt; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Net income per common share:</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;">&#160;</td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;">&#160;</td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;">&#160;</td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 64%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; text-indent: -9pt; margin-left: 18pt; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Basic</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">0.73</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">0.43</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">0.48</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 64%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; text-indent: -9pt; margin-left: 18pt; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Diluted</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">0.70</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">0.42</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">0.47</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td></tr></table><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></div> <div style="font-family: 'Times New Roman', Times, serif; font-size: 9pt;"><div style="text-align: justify; line-height: 10.25pt; font-family: 'Times New Roman', Times, serif; font-size: 10pt;">Equity award activity in the 2005 Equity Incentive Plan and 2014 Equity Incentive Plan is summarized below:</div><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div><table cellpadding="0" cellspacing="0" style="font-family: 'Times New Roman', Times, serif; font-size: 9pt; width: 100%;"><tr><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="10" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Stock Options</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="6" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Restricted Share Units</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="2" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Number of Shares</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="2" valign="bottom" style="vertical-align: bottom;">&#160;</td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="2" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;"> Average Price*</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="2" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Number of Units</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="2" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Average Price**</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 40%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Outstanding at December 31, 2017</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">919,639</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;">&#160;</td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">8.13</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">101,275</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">8.21</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 40%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; margin-left: 9pt; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Granted</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">147,300</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;">&#160;</td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">13.65</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">37,400</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">13.69</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 40%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; margin-left: 9pt; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Exercised</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">(58,146</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">)</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;">&#160;</td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">7.16</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">(33,935</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">)</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">8.31</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 40%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; margin-left: 9pt; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Forfeited</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">(2,000</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">)</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;">&#160;</td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">7.63</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">(6,140</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">)</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">8.64</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 40%; padding-bottom: 2px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; margin-left: 9pt; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Expired</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">(2,500</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">)</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; padding-bottom: 2px; background-color: #CCEEFF;">&#160;</td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; padding-bottom: 2px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">5.24</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#8211;</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; padding-bottom: 2px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#8211;</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 40%; padding-bottom: 4px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Outstanding at December 31, 2018</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 double 4px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">1,004,293</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; padding-bottom: 4px; background-color: #FFFFFF;">&#160;</td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; padding-bottom: 4px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">9.00</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 double 4px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">98,600</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; padding-bottom: 4px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">9.82</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #FFFFFF;">&#160;</td></tr></table><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div><div style="text-align: left; line-height: 10.25pt;"><div><table cellpadding="0" cellspacing="0" class="DSPFListTable" style="font-family: 'Times New Roman', Times, serif; font-size: 9pt; width: 100%;"><tr><td style="width: 18pt; vertical-align: top; align: right;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">*</font></td><td style="width: auto; vertical-align: top; text-align: left;"><div><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">weighted average exercise price per share</font></div></td></tr></table></div></div><div style="text-align: left; line-height: 10.25pt;"><div><table cellpadding="0" cellspacing="0" class="DSPFListTable" style="font-family: 'Times New Roman', Times, serif; font-size: 9pt; width: 100%;"><tr><td style="width: 18pt; vertical-align: top; align: right;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">**</font></td><td style="width: auto; vertical-align: top; text-align: left;"><div><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">weighted-average grant stock price per share</font></div></td></tr></table></div></div><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div></div> <div style="font-family: 'Times New Roman', Times, serif; font-size: 9pt;"><div style="text-align: left; line-height: 10.25pt; font-family: 'Times New Roman', Times, serif; font-size: 10pt;">Identifiable intangible assets are recorded in Intangible assets in the accompanying Consolidated Balance Sheets and are comprised of the following:</div><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div><table cellpadding="0" cellspacing="0" style="font-family: 'Times New Roman', Times, serif; font-size: 9pt; width: 100%;"><tr><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="14" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">December 31,</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="6" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;"> 2018</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="6" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">2017</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-style: italic;">(In thousands)</font></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="2" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Gross Amount</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="2" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Accumulated Amortization</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="2" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Gross Amount</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="2" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Accumulated Amortization</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 52%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Purchased technology</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">2,221</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">(1,558</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">)</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">1,754</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">(1,481</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">)</font></div></div></td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 52%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Customer relationships</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">1,300</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">(1,300</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">)</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">1,300</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">(1,300</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">)</font></div></div></td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 52%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Trademark</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">480</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">(354</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">)</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">480</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">(306</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">)</font></div></div></td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 52%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Covenant not to compete</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">146</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">(146</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">)</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">146</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">(146</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">)</font></div></div></td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 52%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Patents</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">57</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">(49</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">)</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">57</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">(46</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">)</font></div></div></td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 52%; padding-bottom: 2px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Other</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">80</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">(80</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">)</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">80</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">(80</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">)</font></div></div></td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 52%; padding-bottom: 4px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; margin-left: 9pt; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Total</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 double 4px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">4,284</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 double 4px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">(3,487</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">)</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 double 4px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">3,817</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 double 4px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">(3,359</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">)</font></div></div></td></tr></table><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div></div> <div style="font-family: 'Times New Roman', Times, serif; font-size: 9pt;"><div style="text-align: left; line-height: 10.25pt; font-family: 'Times New Roman', Times, serif; font-size: 10pt;">The following table summarizes the activity recorded in the accrued product warranty liability:</div><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div><table cellpadding="0" cellspacing="0" style="font-family: 'Times New Roman', Times, serif; font-size: 9pt; width: 100%;"><tr><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="10" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Year Ended December 31,</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;"><div style="text-align: justify; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">(In thousands)</font></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="2" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">2018</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="2" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">2017</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="2" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">2016</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 64%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Balance, beginning of period</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">267</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">267</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">277</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 64%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Warranties issued</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">269</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">259</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">254</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 64%; padding-bottom: 2px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Warranty settlements</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">(263</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">)</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">(259</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">)</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">(264</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">)</font></div></div></td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 64%; padding-bottom: 4px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Balance, end of period</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 double 4px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">273</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 double 4px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">267</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 double 4px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">267</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #FFFFFF;">&#160;</td></tr></table><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div></div> <div style="font-family: 'Times New Roman', Times, serif; font-size: 9pt;"><div style="text-align: left; line-height: 10.25pt; font-family: 'Times New Roman', Times, serif; font-size: 10pt;">The following table summarizes the activity recorded in the valuation account for accounts receivable:</div><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div><table cellpadding="0" cellspacing="0" style="font-family: 'Times New Roman', Times, serif; font-size: 9pt; width: 100%;"><tr><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="10" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Year Ended December 31,</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;"><div style="text-align: justify; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">(In thousands)</font></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="2" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">2018</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="2" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">2017</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="2" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">2016</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 64%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Balance, beginning of period</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">100</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">50</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">50</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 64%; padding-bottom: 2px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Additions charged to costs and expenses</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">105</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">50</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#8211;</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 64%; padding-bottom: 4px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Balance, end of period</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 double 4px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">205</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 double 4px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">100</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 double 4px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">50</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #CCEEFF;">&#160;</td></tr></table><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div></div> <div style="font-family: 'Times New Roman', Times, serif; font-size: 9pt;"><div style="text-align: left; line-height: 10.25pt; font-family: 'Times New Roman', Times, serif; font-size: 10pt;">The components of accrued liabilities are:</div><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div><table cellpadding="0" cellspacing="0" style="font-family: 'Times New Roman', Times, serif; font-size: 9pt; width: 100%;"><tr><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="6" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">December 31,</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-style: italic;">(In thousands)</font></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="2" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">2018</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="2" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">2017</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 76%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Salaries and compensation related</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">1,817</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">2,288</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 76%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Warranty</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">192</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">186</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 76%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Professional and consulting</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">231</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">209</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 76%; padding-bottom: 2px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Other</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">525</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">656</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 76%; padding-bottom: 4px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 double 4px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">2,765</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 double 4px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">3,339</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #CCEEFF;">&#160;</td></tr></table><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div></div> <div style="font-family: 'Times New Roman', Times, serif; font-size: 9pt;"><div style="text-align: justify; line-height: 10.25pt; font-family: 'Times New Roman', Times, serif; font-size: 10pt;">The components of the income tax provision are as follows:</div><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div><table cellpadding="0" cellspacing="0" style="font-family: 'Times New Roman', Times, serif; font-size: 9pt; width: 100%;"><tr><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="10" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Year Ended December 31,</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-style: italic;">(In thousands)</font></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="2" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">2018</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="2" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">2017</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="2" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">2016</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Current:</font></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom;">&#160;</td><td colspan="2" valign="bottom" style="vertical-align: bottom;">&#160;</td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom;">&#160;</td><td colspan="2" valign="bottom" style="vertical-align: bottom;">&#160;</td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom;">&#160;</td><td colspan="2" valign="bottom" style="vertical-align: bottom;">&#160;</td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 64%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; margin-left: 9pt; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Federal</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">1,049</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">2,379</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">1,776</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 64%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; margin-left: 9pt; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">State</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">85</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">114</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">70</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 64%; padding-bottom: 2px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; margin-left: 9pt; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Foreign</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">13</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">(49</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">)</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">2</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 64%; padding-bottom: 2px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">1,147</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">2,444</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">1,848</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 64%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Deferred:</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;">&#160;</td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;">&#160;</td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;">&#160;</td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 64%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; margin-left: 9pt; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Federal</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">(117</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">)</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">1,097</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">(257</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">)</font></div></div></td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 64%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; margin-left: 9pt; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">State</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">10</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">20</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">(38</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">)</font></div></div></td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 64%; padding-bottom: 2px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; margin-left: 9pt; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Foreign</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#8211;</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#8211;</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#8211;</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 64%; padding-bottom: 2px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">(107</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">)</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">1,117</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">(295</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">)</font></div></div></td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 64%; padding-bottom: 4px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Income tax provision</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 double 4px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">1,040</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 double 4px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">3,561</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 double 4px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">1,553</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #FFFFFF;">&#160;</td></tr></table><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div></div> <div style="font-family: 'Times New Roman', Times, serif; font-size: 9pt;"><div style="text-align: justify; line-height: 10.25pt; font-family: 'Times New Roman', Times, serif; font-size: 10pt;">Deferred income taxes arise from temporary differences between the tax basis of assets and liabilities and their reported amounts in the Consolidated Financial Statements.&#160;&#160;Our deferred tax assets and liabilities were comprised of the following:</div><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div><table cellpadding="0" cellspacing="0" style="font-family: 'Times New Roman', Times, serif; font-size: 9pt; width: 100%;"><tr><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="6" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">December 31,</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;"><div style="text-align: left; text-indent: -9pt; margin-left: 9pt; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-style: italic;">(In thousands)</font></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="2" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">2018</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="2" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">2017</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom;"><div style="text-align: left; text-indent: -9pt; margin-left: 9pt; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Deferred tax assets:</font></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom;">&#160;</td><td colspan="2" valign="bottom" style="vertical-align: bottom;">&#160;</td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom;">&#160;</td><td colspan="2" valign="bottom" style="vertical-align: bottom;">&#160;</td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 76%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; text-indent: -9pt; margin-left: 18pt; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Foreign net operating losses</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">390</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">328</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 76%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; text-indent: -9pt; margin-left: 18pt; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Depreciation</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">71</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">107</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 76%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; text-indent: -9pt; margin-left: 18pt; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Inventory reserves</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">879</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">845</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 76%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; margin-left: 9pt; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Deferred revenue</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">16</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">16</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 76%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; text-indent: -9pt; margin-left: 18pt; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Warranty reserve</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">60</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">59</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 76%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; text-indent: -9pt; margin-left: 18pt; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Stock compensation expense</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">682</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">694</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 76%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; text-indent: -9pt; margin-left: 18pt; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Other accrued compensation</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">233</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">363</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 76%; padding-bottom: 2px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; margin-left: 9pt; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Other liabilities and reserves</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">278</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">246</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 76%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; text-indent: -9pt; margin-left: 27pt; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Gross deferred tax assets</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">2,609</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">2,658</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 76%; padding-bottom: 2px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; text-indent: -9pt; margin-left: 27pt; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Valuation allowance</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">(390</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">)</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">(328</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">)</font></div></div></td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 76%; padding-bottom: 2px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; text-indent: -18pt; margin-left: 45pt; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Net deferred tax assets</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">2,219</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">2,330</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 76%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;">&#160;</td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;">&#160;</td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 76%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; text-indent: -9pt; margin-left: 9pt; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Deferred tax liabilities:</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;">&#160;</td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;">&#160;</td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 76%; padding-bottom: 2px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; text-indent: -9pt; margin-left: 18pt; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Other</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">21</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">22</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 76%; padding-bottom: 2px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; text-indent: -9pt; margin-left: 36pt; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Net deferred tax liabilities</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">21</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">22</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 76%; padding-bottom: 4px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; text-indent: -9pt; margin-left: 9pt; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Total net deferred tax assets</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 double 4px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">2,198</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 double 4px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">2,308</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #FFFFFF;">&#160;</td></tr></table><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div></div> <div style="font-family: 'Times New Roman', Times, serif; font-size: 9pt;"><div style="text-align: left; line-height: 10.25pt; font-family: 'Times New Roman', Times, serif; font-size: 10pt;">Accounts receivable from customers representing 10% or more of total accounts receivable were as follows:</div><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div><table cellpadding="0" cellspacing="0" style="font-family: 'Times New Roman', Times, serif; font-size: 9pt; width: 100%; border-collapse: collapse;"><tr><td style="width: 80.08%; vertical-align: bottom;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></td><td colspan="4" style="width: 19.92%; vertical-align: bottom; border-bottom: #000000 2px solid;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">December 31,</font></div></td></tr><tr><td style="width: 80.08%; vertical-align: bottom;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></td><td colspan="2" style="width: 9.95%; vertical-align: bottom; border-bottom: #000000 2px solid;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">2018</font></div></td><td style="width: 0.98%; vertical-align: bottom;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></td><td style="width: 8.98%; vertical-align: bottom; border-bottom: #000000 2px solid;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">2017</font></div></td></tr><tr><td style="width: 80.08%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">International Gaming Technology ("IGT")</font></div></div></td><td style="width: 0.98%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></div></td><td style="width: 8.97%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: right; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">21%</font></div></div></td><td style="width: 0.98%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></div></td><td style="width: 8.98%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: right; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">48%</font></div></div></td></tr><tr><td style="width: 80.08%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Suzo-Happ</font></div></div></td><td style="width: 0.98%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></div></td><td style="width: 8.97%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: right; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">0%</font></div></div></td><td style="width: 0.98%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></div></td><td style="width: 8.98%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: right; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">13%</font></div></div></td></tr></table><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Sales to customers representing 10% or more of total net sales were as follows:</font></div><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div><table cellpadding="0" cellspacing="0" style="font-family: 'Times New Roman', Times, serif; font-size: 9pt; width: 100%; border-collapse: collapse;"><tr><td style="width: 69.15%; vertical-align: bottom;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></td><td colspan="7" style="width: 30.85%; vertical-align: bottom; border-bottom: #000000 2px solid;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Year Ended December 31,</font></div></td></tr><tr><td style="width: 69.15%; vertical-align: bottom;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></td><td colspan="2" style="width: 9.96%; vertical-align: bottom; border-bottom: #000000 2px solid;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">2018</font></div></td><td style="width: 0.97%; vertical-align: bottom;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></td><td colspan="2" style="width: 9.95%; vertical-align: bottom; border-bottom: #000000 2px solid;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">2017</font></div></td><td style="width: 0.98%; vertical-align: bottom;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></td><td style="width: 8.98%; vertical-align: bottom; border-bottom: #000000 2px solid;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">2016</font></div></td></tr><tr><td style="width: 69.15%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">IGT</font></div></div></td><td style="width: 0.98%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></div></td><td style="width: 8.98%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: right; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">18%</font></div></div></td><td style="width: 0.97%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></div></td><td style="width: 0.98%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></div></td><td style="width: 8.97%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: right; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">35%</font></div></div></td><td style="width: 0.98%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></div></td><td style="width: 8.98%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: right; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">26%</font></div></div></td></tr><tr><td style="width: 69.15%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Suzo-Happ</font></div></div></td><td style="width: 0.98%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></div></td><td style="width: 8.98%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: right; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">1%</font></div></div></td><td style="width: 0.97%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></div></td><td style="width: 0.98%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></div></td><td style="width: 8.97%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: right; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">8%</font></div></div></td><td style="width: 0.98%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></div></td><td style="width: 8.98%; vertical-align: bottom; background-color: #FFFFFF;"><div style="background-color: #FFFFFF; line-height: 14.4pt;"><div style="text-align: right; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">15%</font></div></div></td></tr></table><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div></div> <div style="font-family: 'Times New Roman', Times, serif; font-size: 9pt;"><div style="text-align: justify; line-height: 10.25pt; font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; font-style: italic;">Segment reporting</font><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold;">: </font>We apply the provisions of the Financial Accounting Standards Board (&#8220;FASB&#8221;) Accounting Standards Codification (&#8220;ASC&#8221;) 280, &#8220;Segment Reporting.&#8221;&#160;&#160;We view our operations and manage our business as one segment: the design, development and marketing of software-driven technology and printing solutions and providing printer and terminal related software, services, supplies and spare parts.&#160;&#160;Factors used to identify TransAct&#8217;s single operating segment include the organizational structure of the Company and the financial information available for evaluation by the chief operating decision-maker in making decisions about how to allocate resources and assess performance.</div><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div></div> <div style="font-family: 'Times New Roman', Times, serif; font-size: 9pt;"><div style="text-align: justify; line-height: 10.25pt; font-family: 'Times New Roman', Times, serif; font-size: 10pt; font-weight: bold;">14. Geographic area information</div><div style="text-align: justify; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div><div style="text-align: justify; line-height: 10.25pt; font-family: 'Times New Roman', Times, serif; font-size: 10pt;">Information regarding our operations by geographic area is contained in the following table.&#160;&#160;These amounts in the geographic area table are based on the location of the customer and asset.</div><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div><table cellpadding="0" cellspacing="0" style="font-family: 'Times New Roman', Times, serif; font-size: 9pt; width: 100%;"><tr><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="10" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Year Ended December 31,</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-style: italic;">(In thousands)</font></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="2" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">2018</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="2" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">2017</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="2" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">2016</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Net sales:</font></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom;">&#160;</td><td colspan="2" valign="bottom" style="vertical-align: bottom;">&#160;</td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom;">&#160;</td><td colspan="2" valign="bottom" style="vertical-align: bottom;">&#160;</td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom;">&#160;</td><td colspan="2" valign="bottom" style="vertical-align: bottom;">&#160;</td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 64%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; margin-left: 9pt; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">United States</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">43,518</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">48,720</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">45,542</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 64%; padding-bottom: 2px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; margin-left: 9pt; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">International</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">11,069</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">7,591</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">11,693</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #FFFFFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 64%; padding-bottom: 4px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; margin-left: 18pt; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Total</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 double 4px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">54,587</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 double 4px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">56,311</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 double 4px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">57,235</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #CCEEFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 64%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;">&#160;</td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;">&#160;</td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;">&#160;</td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 64%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Fixed assets, net:</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;">&#160;</td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;">&#160;</td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;">&#160;</td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 64%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; margin-left: 9pt; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">United States</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">1,767</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">1,548</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">1,581</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 64%; padding-bottom: 2px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; margin-left: 9pt; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">International</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">505</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">621</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">660</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 64%; padding-bottom: 4px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; margin-left: 18pt; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Total</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 double 4px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">2,272</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 double 4px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">2,169</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 double 4px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">2,241</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #FFFFFF;">&#160;</td></tr></table><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div><div style="text-align: justify; line-height: 10.25pt; font-family: 'Times New Roman', Times, serif; font-size: 10pt;">Sales to international customers were 20%, 14%, and 20% of total sales in 2018, 2017, and 2016 respectively.&#160;&#160;Sales to Europe represented 56%, 44%, and 56%, sales to the Pacific Rim (which includes Australia and Asia) represented 36%, 32%, and 34%, and sales to Canada represented 6%, 18%, and 8% of total international sales in 2018, 2017, and 2016 respectively.&#160;&#160;International long-lived assets consist of net fixed assets located at our foreign subsidiary in the UK as well as our contract manufacturers in China, Thailand, Malaysia and Mexico.</div><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div></div> 7203000 7561000 6907000 P2Y P5Y 37400 147300 5.24 0 609000 629000 611000 7.16 8.31 7.63 8.64 13.65 13.69 <div style="font-family: 'Times New Roman', Times, serif; font-size: 9pt;"><div style="text-align: left; line-height: 10.25pt; font-family: 'Times New Roman', Times, serif; font-size: 10pt;">The following summarizes information about equity awards outstanding that are vested and expect to vest and equity awards that are exercisable at December 31, 2018:</div><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div><table cellpadding="0" cellspacing="0" style="font-family: 'Times New Roman', Times, serif; font-size: 9pt; width: 100%;"><tr><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="14" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Equity Awards Vested and Expected to Vest</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="14" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Equity Awards That Are Exercisable</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="2" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Awards</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="2" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Average Price*</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="2" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Aggregate Intrinsic Value</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="2" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Remaining Term**</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="2" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Awards</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="2" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Average Price*</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="2" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Aggregate Intrinsic Value</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="2" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Remaining Term**</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 20%; background-color: #CCEEFF;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Stock Options</font></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 7%; background-color: #CCEEFF;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">1,004,293</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 7%; background-color: #CCEEFF;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">9.00</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 7%; background-color: #CCEEFF;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">1,051</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 7%; background-color: #CCEEFF;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">6.1</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 7%; background-color: #CCEEFF;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">562,252</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 7%; background-color: #CCEEFF;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">8.38</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 7%; background-color: #CCEEFF;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">656</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 7%; background-color: #CCEEFF;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">4.7</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 20%; background-color: #FFFFFF;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Restricted stock units</font></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 7%; background-color: #FFFFFF;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">82,692</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 7%; background-color: #FFFFFF;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#8211;</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 7%; background-color: #FFFFFF;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">743</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 7%; background-color: #FFFFFF;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">1.9</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 7%; background-color: #FFFFFF;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#8211;</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 7%; background-color: #FFFFFF;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#8211;</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 7%; background-color: #FFFFFF;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#8211;</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 7%; background-color: #FFFFFF;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#8211;</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td></tr></table><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div><div style="text-align: left; line-height: 10.25pt;"><div><table cellpadding="0" cellspacing="0" class="DSPFListTable" style="font-family: 'Times New Roman', Times, serif; font-size: 9pt; width: 100%;"><tr><td style="width: 18pt; vertical-align: top; align: right;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">*</font></td><td style="width: auto; vertical-align: top; text-align: left;"><div><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">weighted average exercise price per share</font></div></td></tr></table></div></div><div style="text-align: left; line-height: 10.25pt;"><div><table cellpadding="0" cellspacing="0" class="DSPFListTable" style="font-family: 'Times New Roman', Times, serif; font-size: 9pt; width: 100%;"><tr><td style="width: 18pt; vertical-align: top; align: right;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">**</font></td><td style="width: auto; vertical-align: top; text-align: left;"><div><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">weighted-average contractual remaining term in years</font></div></td></tr></table></div></div><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div></div> 0.043 0.026 0.045 0.012 0.021 0.027 0.362 0.380 0.388 6000 280000 958000 495291 8.38 0 2500 562252 8.21 8.13 9.00 9.82 919639 101275 98600 1004293 6140 2000 1400000 82692 1004293 <div style="font-family: 'Times New Roman', Times, serif; font-size: 9pt;"><div style="text-align: justify; line-height: 10.25pt; font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; font-style: italic;">Share-based payments:</font><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold;">&#160;</font>At December 31, 2018, we have share-based employee compensation plans, which are described more fully in Note 10 - Stock incentive plans.&#160;&#160;We account for those plans under the recognition and measurement principles of ASC 718, &#8220;Compensation &#8211; Stock Compensation.&#8221;&#160;&#160;Share-based compensation expense is measured at the grant date, based on the estimated fair value of the award, and is recognized as expense over the employee&#8217;s requisite service period.&#160;</div><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div><div style="text-align: justify; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">We use the Black-Scholes option-pricing model to calculate the fair value of share based awards.&#160;&#160;The key assumptions for this valuation method include the expected term of the option, stock price volatility, risk-free interest rate, dividend yield, market price of our underlying stock and exercise price.&#160;&#160;Many of these assumptions are judgmental and highly sensitive in the determination of compensation expense.&#160;&#160;Beginning in the first quarter of 2017, we recognize forfeitures as they occur.</font></div><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div><div style="text-align: justify; line-height: 11.05pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">In May&#160;2017, the FASB&#160;issued ASU&#160;No. 2017-09, "Compensation-Stock Compensation: Scope of modification accounting".&#160; ASU&#160;2017-09 provides guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718.&#160; ASU&#160;No. 2017-09 is effective for fiscal years beginning after December&#160;15, 2017.&#160; The amendments are applied prospectively to an award modified on or after the adoption date.&#160; We adopted this guidance in the first quarter of 2018 and the adoption has not resulted in a change to our financial statements.</font></div></div> 0 9.00 743000 1051000 <div style="font-family: 'Times New Roman', Times, serif; font-size: 9pt;"><div style="text-align: justify; line-height: 10.25pt; font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; font-style: italic;">Warranty:</font>&#160;&#160;We generally warrant our products for up to 24 months and record the estimated cost of such product warranties at the time the sale is recorded.&#160;&#160;Estimated warranty costs are based upon actual past experience of product repairs and the related estimated cost of labor and material to make the necessary repairs.</div><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div><div style="text-align: left; line-height: 10.25pt; font-family: 'Times New Roman', Times, serif; font-size: 10pt;">The following table summarizes the activity recorded in the accrued product warranty liability:</div><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div><table cellpadding="0" cellspacing="0" style="font-family: 'Times New Roman', Times, serif; font-size: 9pt; width: 100%;"><tr><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="10" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Year Ended December 31,</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;"><div style="text-align: justify; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">(In thousands)</font></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="2" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">2018</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="2" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">2017</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="2" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">2016</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 64%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Balance, beginning of period</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">267</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">267</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">277</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 64%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Warranties issued</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">269</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">259</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">254</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 64%; padding-bottom: 2px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Warranty settlements</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">(263</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">)</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">(259</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">)</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">(264</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">)</font></div></div></td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 64%; padding-bottom: 4px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Balance, end of period</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 double 4px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">273</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 double 4px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">267</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 double 4px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">267</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #FFFFFF;">&#160;</td></tr></table><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div><div style="text-align: justify; line-height: 10.25pt; font-family: 'Times New Roman', Times, serif; font-size: 10pt;">$192 thousand and $186 thousand of the accrued product warranty liability were classified as current in Accrued liabilities at December 31, 2018 and 2017, respectively.&#160;&#160;The remaining $81 thousand of the accrued product warranty liability as of December 31, 2018 and 2017 is classified as long-term in Other liabilities.</div><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div></div> 5000000 3750 166600 58146 33935 58146 0 0 1043000 0 1000 2000 415000 0 0 23000 0 416000 0 0 23000 1041000 0 0 10700 23578 8663 2000000 3929000 32110000 0 0 0 0 0 -51000 0 0 0 0 -51000 0 0 0 0 0 0 0 156410 463378 36465 4044842 156410 499843 27567000 26014000 112000 25728000 -80000 22956000 -26181000 28921000 29701000 24756000 -32110000 27515000 -30110000 112000 -82000 24157000 31353000 -109000 -29752000 32129000 -99000 115000 114000 24109000 <div style="font-family: 'Times New Roman', Times, serif; font-size: 9pt;"><div style="text-align: left; line-height: 10.25pt; font-family: 'Times New Roman', Times, serif; font-size: 10pt;">As of December 31, 2018 a valuation allowance of $390 thousand has been established for foreign net operating loss carryforwards that are not expected to be used.&#160;The following table summarizes the activity recorded in the valuation allowance on the deferred tax assets:</div><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div><table cellpadding="0" cellspacing="0" style="font-family: 'Times New Roman', Times, serif; font-size: 9pt; width: 100%;"><tr><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="10" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Year Ended December 31,</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;"><div style="text-align: justify; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-style: italic;">(In thousands)</font></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="2" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">2018</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="2" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">2017</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="2" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">2016</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 64%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Balance, beginning of period</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">328</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">423</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">340</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 64%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Additions charged to income tax provision</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">62</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">67</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">83</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 64%; padding-bottom: 2px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Reductions credited to income tax provision</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#8211;</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">(162</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">)</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#8211;</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 64%; padding-bottom: 4px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Balance, end of period</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 double 4px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">390</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 double 4px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">328</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 double 4px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">423</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #FFFFFF;">&#160;</td></tr></table><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div></div> <div style="font-family: 'Times New Roman', Times, serif; font-size: 9pt;"><div style="text-align: justify; line-height: 10.25pt; font-family: 'Times New Roman', Times, serif; font-size: 10pt;">At both December 31, 2018 and 2017, we had $104 thousand of total gross unrecognized tax benefits that, if recognized, would favorably affect the effective income tax rate in any future periods.&#160;&#160;We are not aware of any events that could occur within the next twelve months that could cause a significant change in the total amount of unrecognized tax benefits.&#160;&#160;A tabular reconciliation of the gross amounts of unrecognized tax benefits at the beginning and end of the year is as follows:</div><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div><table cellpadding="0" cellspacing="0" style="font-family: 'Times New Roman', Times, serif; font-size: 9pt; width: 100%;"><tr><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="6" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">December 31,</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;"><div style="text-align: justify; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-style: italic;">(In thousands)</font></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="2" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">2018</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td><td colspan="2" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;"><div style="text-align: center; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">2017</font></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; padding-bottom: 2px;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 76%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="text-align: justify; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Unrecognized tax benefits as of January 1</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">104</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">111</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #CCEEFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 76%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Tax positions taken during the current period</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">28</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">24</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; background-color: #FFFFFF;">&#160;</td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 76%; padding-bottom: 2px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="text-align: left; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Lapse of statute of limitations</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">(28</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">)</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 2px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">(31</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px; background-color: #CCEEFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">)</font></div></div></td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 76%; padding-bottom: 4px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="text-align: justify; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">Unrecognized tax benefits as of December 31</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 double 4px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">104</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="vertical-align: bottom; width: 1%; padding-bottom: 4px; background-color: #FFFFFF;">&#160;</td><td colspan="1" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">$</font></div></div></td><td colspan="1" valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 double 4px; background-color: #FFFFFF;"><div style="line-height: 14.4pt;"><div style="line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">104</font></div></div></td><td colspan="1" nowrap="nowrap" valign="bottom" style="text-align: left; vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px; background-color: #FFFFFF;">&#160;</td></tr></table><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div></div> 0 0 <div style="font-family: 'Times New Roman', Times, serif; font-size: 9pt;"><div style="text-align: justify; line-height: 10.25pt; font-family: 'Times New Roman', Times, serif; font-size: 10pt; font-weight: bold;">13. Stock repurchase program</div><div style="text-align: justify; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div><div style="text-align: justify; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">On March 1, 2018, our Board of Directors approved a new stock repurchase program (the "2018 Stock Repurchase Program").&#160; Under the 2018 Stock Repurchase Program, we are authorized to repurchase up to $5 million of our outstanding shares of common stock from time to time in the open market at prevailing market prices based on market conditions, share price and other factors.&#160; The 2018 Stock Repurchase Program expires on December 31, 2019, if we do not discontinue the repurchase program prior to such time.&#160; We use the cost method to account for treasury stock purchases, under which the price paid for the stock is charged to the treasury stock account.&#160;&#160;Repurchases of our common stock are accounted for as of the settlement date.&#160; From the start of the 2018 Stock Repurchase Program on March 1, 2018 through December 31, 2018, we repurchased 156,410 shares of our common stock for approximately $2.0 million at an average price per share of $12.79.&#160;</font></div><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div><div style="text-align: justify; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">During 2016 and 2017, under a prior repurchase program that was in place from February 25, 2016 through December 31, 2017, we purchased 499,843 shares of our common stock for $3.9 million at an average price of $7.86 per share.&#160; From January 1, 2005 through December 31, 2018, we repurchased a total of 4,044,842 shares of common stock for $32.1 million, at an average price of $7.94 per share.</font></div><div style="text-align: justify; line-height: 10.25pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif;">&#160;</font></div></div> 3571000 3571000 2000000 0 0 2000000 0 0 0 0 0 0 0 0 358000 0 0 358000 12.79 7.94 7.86 30110000 32110000 3888432 4044842 0 104000 104000 28000 31000 104000 111000 104000 24000 28000 <div style="font-family: 'Times New Roman', Times, serif; font-size: 9pt;"><div style="text-align: justify; line-height: 10.25pt; font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold; font-style: italic;">Use of estimates</font><font style="font-size: 10pt; font-family: 'Times New Roman', Times, serif; font-weight: bold;">:</font>&#160;&#160;The preparations of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (&#8220;GAAP&#8221;) requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses, and disclosure of contingent assets and liabilities as of the date of the Consolidated Financial Statements and the reported amounts of sales and expenses during the reporting period. Actual results could differ from those estimates.</div><div style="line-height: 10.25pt;"><br style="line-height: 10.25pt;" /></div></div> 328000 340000 423000 390000 0 0 162000 62000 67000 83000 7444000 7423000 7610000 7759000 7592000 7655000 50000 79000 P24M 1315000 0 10000000 12500000 -0.005 0.007 -0.012 2 1