NOTE 8. WARRANTIES

Warranty liabilities are reported as accrued expenses on our Consolidated Balance Sheets. A reconciliation of the changes in our product warranty accrual is as follows:

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2013			2012			2013			2012
	(in thousands)						(in thousands)
Balance at the beginning of period	$	3,094		$	3,432		$	3,432		$	3,800
Warranties issued	707			832			1,395			1,494
Warranty settlement costs	(706		)	(481		)	(1,328		)	(1,274		)
Changes in accruals for pre-existing warranties	(183		)	(207		)	(470		)	(551		)
Other adjustments (1)	331			—			331			—
Currency translation adjustment	6			(99		)	(111		)	8
Balance at the end of period	$	3,249		$	3,477		$	3,249		$	3,477

(1) Represents the warranty liabilities assumed in connection with the Forkardt acquisition. Refer to Note 2 - Acquisition for details.