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 consolidated balance sheets in accrued expenses and taxes and is detailed as follows:



	Years Ended December 31,
	2013			2012			2011
	(in thousands)
Liability, beginning of year	$	1,374		$	930		$	1,151
Provision for warranties issued during the year, net of adjustments	1,453			1,318			1,098
Provision for warranties issued in previous years, net of adjustments	(788		)	199			(466		)
Warranty claims	(654		)	(1,073		)	(853		)
Liability, end of year	$	1,385		$	1,374		$	930