Warranties

The Company’s standard warranty is up to one year for parts and services and five years for new railcars. Factors affecting the Company’s warranty liability include the number of units sold, historical and anticipated rates of claims and historical and anticipated costs per claim. Fluctuations in the Company’s warranty provision and experience of warranty claims are the result of variations in these factors. The Company assesses the adequacy of its warranty liability based on changes in these factors.

The overall change in the Company’s warranty reserve is reflected on the condensed consolidated balance sheet in accrued expenses and taxes and is detailed as follows:



	Three Months Ended June 30,						Six Months Ended June 30,
	2013			2012			2013			2012
	(in thousands)
Liability, beginning of period	$	1,220		$	1,051		$	1,374		$	930
Provision for warranties issued during the year, net of adjustments	567			322			877			659
Adjustments to warranties issued during previous years	(43		)	137			(396		)	34
Warranty claims	(225		)	(224		)	(336		)	(337		)
Liability, end of period	$	1,519		$	1,286		$	1,519		$	1,286