Note L Product Warranty Reserve

6 Months Ended

Jun. 30, 2011

Note L Product Warranty Reserve [Abstract]

NOTE L — PRODUCT WARRANTY RESERVE

The Company records an accrual for estimated warranty costs to costs of products sold in the consolidated statements of income. These amounts are recorded in accrued expenses and other liabilities in the consolidated balance sheets. The Company records and accounts for its warranty reserve based on specific claim incidents. Should the Company become aware of a specific potential warranty claim for which liability is probable and reasonably estimable, a specific charge is recorded and accounted for accordingly. Adjustments are made quarterly to the accruals as claim information changes. During the second quarter of 2011, the Company accepted certified product from a supplier which later failed in the field. The Company has taken responsibility to expedite correcting the situation and as such, the Company has increased the warranty reserve by $1.8 million.

The following is a rollforward of the product warranty reserve:


	June 30, 2011			December 31, 2010
Balance at the beginning of period	$	536		$	209
Additions charged to income		1,898			403
Warranty usage		(363	)		(108	)
Currency translation		13			32

End of period balance	$	2,084		$	536