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WARRANTY AND SERVICE CONTRACTS
 12 Months Ended
Dec. 31, 2012
WARRANTY AND SERVICE CONTRACTS [Abstract]  
WARRANTY AND SERVICE CONTRACTS
NOTE 5—WARRANTY AND SERVICE CONTRACTS
 
The Company has a direct field service organization in the United States. Internationally, the Company provides direct service support through its wholly-owned subsidiaries in Australia, Canada, France and Japan as well as through a network of distributors and third-party service providers in several other countries where it does not have a direct presence. The Company provides a warranty with its products, depending on the type of product. After the original warranty period, maintenance and support are offered on a service contract basis or on a time and materials basis. The Company currently provides for the estimated cost to repair or replace products under warranty at the time of sale.
 
Warranty Accrual (in thousands)
 
 
 
December 31,
 
 
 
2012
 
 
2011
 
Balance at beginning of year
 
$
1,121
 
 
$
796
 
Add: Accruals for warranties issued during the year
 
 
3,525
 
 
 
4,043
 
Less: Settlements made during the year
 
 
(3,434
)
 
 
(3,718
)
Balance at end of year
 
$
1,212
 
 
$
1,121
 
 
Deferred Service Contract Revenue (in thousands)
 
 
 
December 31,
 
 
 
2012
 
 
2011
 
Balance at beginning of year
 
$
5,838
 
 
$
6,765
 
Add: Payments received
 
 
14,112
 
 
 
8,332
 
Less: Revenue recognized
 
 
(11,411
)
 
 
(9,259
)
Balance at end of year
 
$
8,539
 
 
$
5,838
 
 
Costs incurred under service contracts amounted to $7.2 million in 2012, $4.6 million in 2011, and $4.3 million in 2010, and are recognized as incurred.