Other accrued liabilities consisted of the following components:

September 30,

2012

December 31,

2011

(in thousands)

Product warranty

$

293

$

396

Sales return reserve

65

81

Other taxes

116

100

Other

150

133

Other accrued liabilities

$

624

$

710

The changes in Data I/O's product warranty liability for the nine months ending September 30, 2012 are as follows:

September 30,

2012

(in thousands)

Liability, beginning balance

$

396

Net expenses

541

Warranty claims

(541

)

Accrual revisions

(103

)

Liability, ending balance

$

293