12. 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: As of December 31, 2011 2010 Standby letters of credit secured by restricted cash $ 1,660 $ 655 Standby letters of credit secured by Revolver   632 Guarantees of standby letters of credit established by a sales agent on behalf of Colt 804 804 At December 31, 2011 and 2010, we had unconditional purchase obligations related to capital expenditures for machinery and equipment of $2,102 and $950, respectively. We also had certain Industrial Cooperation Agreements, which stipulate terms of cooperation for commitment of offsetting business over five to six years for the foreign governments that are party to the related sales contracts. We generally settle our offset purchase commitment 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 December 31, 2011 and 2010,our remaining gross offset purchase commitments totaled $58,466 and $25,807, 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 $1,563 and $412 as of December 31, 2011 and 2010, respectively, based on our estimated cost of settling the remaining net offset purchase commitment. We are involved in various litigations, whi