9.  Accrual for Loss Contracts Related to Service

 

In 2015, the Company determined that its projected estimated service costs related to certain extended maintenance contracts exceeded future revenues and recorded a provision for loss contracts related to service.  During the nine months ended September 30, 2016, the Company renegotiated one of its service contracts.  As a result, the projected costs over the remaining life of the amended contract were estimated to be reduced and the Company recognized a gain within cost of revenue where the original charge was recorded.

 

The following table summarizes activity related to the accrual for loss contracts related to service during the nine months ended September 30, 2016 (in thousands):