Note 10 - Commitments and Contingencies A summary of standby letters of credit issued principally in connection with performance and warranty bonds established for the benefit of certain international customers is as follows: September 30, 2012 December 31, 2011 Standby letters of credit secured by restricted cash $ 1,273 $ 1,660 Standby letters of credit under Credit Agreement 1,683   Guarantees of standby letters of credit established by a sales agent on behalf of Colt 702 804 At September 30, 2012 and December 31, 2011, we had unconditional purchase obligations related to capital expenditures for machinery and equipment of $1,606 and $2,102, respectively. We also had certain Industrial Cooperation Agreements, which stipulate our commitments to provide offsetting business to certain countries that have purchased our products. We generally settle our offset purchase commitments under Industrial Cooperation Agreements through on-going business and/or cooperating with other contractors on their spending during the related period. Additionally, we identify future purchases and other satisfaction plans for the remainder of the offset purchase commitment period and should there be a projected net purchase commitment after such consideration, we accrue the estimated cost to settle the offset purchase commitment. Our remaining gross offset purchase commitment is the total amount of offset purchase commitments reduced for claims submitted and approved by the governing agencies. At September 30, 2012 and December 31, 2011, our remaining gross offset purchase commitments totaled $50,585 and $58,466, respectively. We have evaluated our settlement of our remaining gross offset purchase commitments through probable planned spending and other probable satisfaction plans to determine our net offset purchase commitment. We have accrued $1,628 and $1,563 as of September 30, 2012 and December 31, 2011, respectively, based on our estimated cost of settling the remaining net offset purchase commitment. We are involved in various le