Note 8 - Product Warranty Obligations

9 Months Ended

Sep. 30, 2015

Notes to Financial Statements

Product Warranty Disclosure [Text Block]

8

. 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. Additionally, the Company sells extended warranty coverage for certain products. The sales of extended warranties are recorded as deferred revenue, which is recognized over the life of the contracts.

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

	Three Months E nded September 30 ,						Nine Months Ended September 30,
	201 5			201 4			2015			2014
Balance at beginning of period	$	28,185		$	32,171		$	30,909		$	33,734
Product warranty reserve assumed in acquisition		351			193			351			193
Payments		(5,812	)		(5,672	)		(16,345	)		(16,696	)
Provision for warranties issued		6,033			5,595			15,062			17,623
Changes in estimates for pre-existing warranties		105			182			(1,115	)		(2,385	)
Balance at end of period	$	28,862		$	32,469		$	28,862		$	32,469

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

	Three Months E nded September 30 ,						Nine Months Ended September 30,
	201 5			201 4			2015			2014
Balance at beginning of period	$	27,241		$	25,679		$	27,193		$	23,092
Deferred revenue on extended warranty contracts assumed in acquisition		291			-			291			-
Deferred revenue on extended warranty contracts sold		1,694			1,315			3,884			5,329
Amortization of deferred revenue on extended warranty contracts		(1,138	)		(850	)		(3,280	)		(2,277	)
Balance at end of period	$	28,088		$	26,144		$	28,088		$	26,144

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

	September 30 ,		December 31,
	201 5		201 4
Product warranty liability
Current portion - other accrued liabilities	$	21,577	$	24,143
Long-term portion - other long-term liabilities		7,285		6,766
Total	$	28,862	$	30,909
Deferred revenue related to extended warranty
Current portion - other accrued liabilities	$	5,178	$	4,519
Long-term portion - other long-term liabilities		22,910		22,674
Total	$	28,088	$	27,193