Note 6 - Valuation Accounts

12 Months Ended

Dec. 31, 2012

Schedule of Valuation and Qualifying Accounts Disclosure [Text Block]

6.               VALUATION ACCOUNTS:

Valuation and allowance accounts include the following (in thousands):

	Balance Beginning of Year		Net Charged to  Costs and Expenses			Acquisitions		Net Write- Offs			Balance End of Year
2012
Reserve for accounts receivable	$	480	$	922				$	(862	)	$	540
Reserve for warranty receivable		480		334					(370	)		444
Reserve for parts inventory		3,406		1,546					(1,609	)		3,343
Reserve for commercial vehicle inventory		1,624		12,944					(7,729	)		6,839
2011
Reserve for accounts receivable	$	1,040	$	627				$	(1,187	)	$	480
Reserve for warranty receivable		279		336					(135	)		480
Reserve for parts inventory		2,055		1,909		$	650		(1,208	)		3,406
Reserve for commercial vehicle inventory		1,275		5,807					(5,458	)		1,624
2010
Reserve for accounts receivable	$	204	$	1,645				$	(809	)	$	1,040
Reserve for warranty receivable		553		794					(1,068	)		279
Reserve for parts inventory		1,956		1,360		$	43		(1,304	)		2,055
Reserve for construction equipment inventory		1,497		(1,497	)				–			–
Reserve for commercial vehicle inventory		2,909		4,024					(5,658	)		1,275

Allowance for Doubtful Receivables

The Company sells a majority of its customer accounts receivable on a non-recourse basis to a third party that is responsible for qualifying the customer for credit at the point of sale.  If the third party approves the customer for credit, then the third party assumes all credit risk related to the transaction.  The Company provides an allowance for doubtful receivables after considering historical loss experience and other factors that might affect the collection of accounts

receivable.

The Company provides an allowance for uncollectible warranty receivables. The Company evaluates the collectability of its warranty claims receivable based on a combination of factors, including aging and correspondence with the applicable manufacturer. Management reviews the warranty claims receivable aging and adjusts the allowance based on historical experience. The Company records charge-offs related to warranty receivables on an as-needed basis.

Inventory

The Company provides a reserve for obsolete and slow moving parts. The reserve is reviewed and, if necessary, adjustments are made on a quarterly basis. The Company relies on historical information to support its reserve. Once the inventory is written down, the Company does not adjust the reserve balance until the inventory is sold.

The valuation for new and used commercial vehicle inventory is based on specific identification. A detail of new and used commercial vehicle inventory is reviewed and, if necessary, adjustments to the value of specific vehicles are made on a quarterly basis.