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Warranty Reserves and Cost Per Hour Reserves
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Dec. 31, 2014
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| Warranty Reserves and Cost Per Hour Reserves | Warranty Reserves and Cost Per Hour Reserves Sales of Aircranes to third parties include limited warranty provisions that require the Company to remedy deficiencies in quality or performance of its products over a specified period of time, generally from two to five years depending on the type of part, component or airframe, including technical assistance services. Warranty reserves are established at the time that revenue is recognized at levels that represent the estimate of the costs that will be incurred to fulfill those warranty requirements and is included in accrued and other current liabilities in the consolidated financial statements. Warranty reserves may be adjusted periodically to sustain levels representing the estimate of the costs to fulfill those warranty requirements over the remaining life of the warranty. Warranty expense, net was zero, zero, and a $0.5 million benefit for the years ended December 31, 2014, 2013, and 2012, respectively. As of December 31, 2014 and December 31, 2013 warranty liability reserve was zero. All warranty periods expired at December 31, 2012. A summary of the warranty reserves related to sales of Aircranes consisted of the following (in thousands):
The Company offers CPH contracts pursuant to which the Company provides components and expendable supplies for a customer's aircraft at a fixed cost per flight hour. The Company estimates the total covered maintenance costs for the aircraft over the coverage period based on historical trends. The amount of the accrual is estimated on a per flight hour basis and recorded as the hours are flown on the aircraft. The timing of cash paid for repairs and maintenance on the aircraft will impact the balance of the accrual. Net CPH expense was zero, $0.7 million and $5.3 million for the years ended December 31, 2014, 2013, and 2012 respectively. As of December 31, 2014 and December 31, 2013 CPH liability was zero and $0.5 million, respectively. A summary of the CPH reserves is as follows (in thousands):
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