NOTE 7. OTHER LONG-TERM LIABILITIES

Other long-term liabilities were $1,139 and $785 as of December 31, 2011 and 2010, respectively. The balances as of December 31, 2011 and 2010 relate to a pension liability of the benefit plan for the Company's European employees that, under U.S. GAAP, is considered to be a defined benefit plan. The Company also has an insurance policy, whereby; any underfunded amounts related to the pension liability are recoverable from the insurance company. The Company has recorded a receivable of $1,139 and $785 under other long-term assets for the underfunded amount as of December 31, 2011 and 2010, respectively.