Note 6 - Product Warranty Obligations

6 Months Ended

Jun. 30, 2014

Product Warranties Disclosures [Abstract]

Product Warranty Disclosure [Text Block]

6. Product Warranty Obligations

The Company records a liability for product warranty obligations at the time of sale to a customer based upon historical warranty experience. The Company also records a liability for specific warranty matters when they become known and are reasonably estimable. The Company also sells extended warranty coverage for certain products. The sales of extended warranties are recorded as deferred revenue, and we recognize the revenue from sales of extended warranties over the life of the contracts. The Company’s product warranty obligations, including deferred revenue related to extended warranty coverage, are included in other accrued liabilities and other long-term liabilities in the condensed consolidated balance sheets.

The following is a tabular reconciliation of the product warranty liability, excluding the deferred revenue related to extended warranty coverage:

	Three Months Ended June 30,						Six Months Ended June 30,
	2014			2013			2014			2013
Balance at beginning of period	$	31,907		$	40,207		$	33,734		$	36,112
Payments		(4,076	)		(3,903	)		(11,024	)		(9,596	)
Provision for warranties issued		5,764			9,352			12,028			20,340
Changes in estimates for pre-existing warranties		(1,424	)		(5,500	)		(2,567	)		(6,700	)
Balance at end of period	$	32,171		$	40,156		$	32,171		$	40,156

The following is a tabular reconciliation of the deferred revenue related to extended warranty coverage:

	Three Months Ended June 30,						Six Months Ended June 30,
	2014			2013			2014			2013
Balance at beginning of period	$	24,632		$	15,042		$	23,092		$	13,473
Deferred revenue on extended warranty contracts sold		1,795			2,268			4,014			4,406
Amortization of deferred revenue on extended warranty contracts		(748	)		(581	)		(1,427	)		(1,150	)
Balance at end of period	$	25,679		$	16,729		$	25,679		$	16,729

Product warranty obligations and warranty related deferred revenues are included in the condensed consolidated balance sheets as follows:

	June 30,		December 31,
	2014		2013
Product warranty liability
Current portion - other accrued liabilities	$	25,331	$	26,080
Long-term portion - other long-term liabilities		6,840		7,654
Total	$	32,171	$	33,734
Deferred revenue related to extended warranty
Current portion - other accrued liabilities	$	5,912	$	3,325
Long-term portion - other long-term liabilities		19,767		19,767
Total	$	25,679	$	23,092