that the Company can secure reliable and cost effective  inventory sourcing to support and better position itself  for growth, the Company is continuously evaluating  additional internal manufacturing expansion, as well as  additional outside sources of products. The Company  believes its financial position will provide sufficient  funds should an appropriate investment opportunity  arise and thereby, assist the Company in improving  customer satisfaction and in maintaining or increasing  market share. Based upon plans for new product intro- ductions, product mixes, capacity restraints on certain  product lines and equipment upgrades, the Company  anticipates that year 2005 capital expenditures for the  manufacturing facilities will be $12-16 million. Inflation did not have a material effect on net sales or net income in fiscal years 2002 through 2004. A significant  increase in inflation could affect future performance. In November 2004, the Emerging Issues Task Force  (EITF) reached a consensus on EITF Issue No. 03-13,  Applying the Conditions in Paragraph 42 of FASB Statement No. 144, “Accounting for the Impairment or Disposal of  Long-Lived Assets,” in Determining Whether to Report  Discontinued Operations . The consensus provides guid- ance in determining: (a) which cash flows should be  taken into consideration when assessing whether the  cash flows of the disposal component have been or will  be eliminated from the ongoing operations of the entity,  The Company does not have any transactions, arrange- ments and other relationships with unconsolidated entities that will affect our liquidity or capital resources.  We have no special purpose entities that provided off- balance sheet financing, liquidity or market or credit  risk support, nor do we engage in leasing, hedging (except for the interest rate swap agreement), or research and development services, that could expose us to liability that is not reflected on the face of the  financial statements. The following table represents the Company’s contrac- tual obligations as of December 31, 2004: (b) the types of involvement ongoing between the  disposal component and the entity disposing of the  component that constitute continuing involvement in  the operations of the disposal component, and  (c) the appropriate (re)assessment period for purposes of  assessing whether the criteria in paragraph 42 have been  met. The consensus was ratified by the FASB at their  November 30, 2004 meeting and should be applied to a  component of an enterprise that is either disposed of or  classified as held for sale in fiscal periods beginning after  December 15, 2004. The Company does not anticipate  a material impact on the financial statements from the  adoption of this consensus.  Recently Issued Accounting Pronouncements and Proposed Accounting Changes Contractual Obligations Off-Balance Sheet Arrangements  Payments due by period (in thousands) Contractual  Less than  More than Obligations  Total  1 year  1-3 years  3-5 years  5 years Long-term debt  $11,347  $ 3,514  $ 7,250  $ 583  $ 0 Capital leases  2,777  230  460  460  1,627 Operating leases  13,498  3,461  6,420  3,617  0 Purchase obligations  2,927  2,927  0  0  0 Total obligations  $30,549  $10,132  $14,130  $4,660  $1,627 25