Product Warranties

6 Months Ended

Aug. 31, 2011

Commitments and Contingencies/Product Warranties [Abstract]

G. Product Warranties

The Company provides reserves for the estimated cost of product warranty-related claims at the time of sale, and periodically adjusts the provision to reflect actual experience related to its standard product warranty programs and its extended warranty programs. The amount of warranty liability accrued reflects management’s best estimate of the expected future cost of honoring Company obligations under its warranty plans. Additionally, from time to time, specific warranty accruals may be made if unforeseen technical problems arise. Meade^® brand products, principally telescopes and binoculars, are generally covered by a one-year limited warranty. Most of the Coronado^® products have limited five-year warranties. Included in the warranty accrual as of August 31, 2011 and February 28, 2011, is $0.5 million related to the Company’s former sport optics brands that were sold in 2008 and for which the Company agreed to retain certain warranty liabilities.

Changes in the warranty liability, which is included as a component of accrued liabilities on the accompanying Consolidated Balance Sheets, were as follows:


	Three Months Ended						Six Months Ended
	August 31,						August 31,
	2011			2010			2011			2010
	(In thousands)
Beginning balance	$	750		$	859		$	810		$	883
Warranty accrual		56			82			99			144
Labor and material usage		(43	)		(77	)		(146	)		(163	)

Ending balance	$	763		$	864		$	763		$	864