XML 21 R18.htm IDEA: XBRL DOCUMENT v2.4.0.8
Product Warranty
 9 Months Ended
Sep. 30, 2013
Guarantees [Abstract]  
Product Warranty
Note 11. Product Warranty
The Company has a stated two-year warranty policy for its golf clubs, although the Company sometimes honors warranty claims after the two-year stated warranty period at the Company’s discretion. The Company’s policy is to accrue the estimated cost of satisfying future warranty claims at the time the sale is recorded. In estimating its future warranty obligations, the Company considers various relevant factors, including the Company’s stated warranty policies and practices, the historical frequency of claims, and the cost to replace or repair its products under warranty. The decrease in the future estimated warranty obligation is primarily due to an overall decrease in product returns combined with a decline in the cost to replace older product.
The following table provides a reconciliation of the activity related to the Company’s reserve for warranty expense (in thousands):
 
Three Months Ended 
 September 30,
 
Nine Months Ended 
 September 30,
 
2013
 
2012
 
2013
 
2012
Beginning balance
$
8,241

 
$
7,863

 
$
7,539

 
$
8,140

Provision
190

 
2,832

 
4,335

 
6,605

Claims paid/costs incurred
(1,665
)
 
(2,562
)
 
(5,108
)
 
(6,612
)
Ending balance
$
6,766

 
$
8,133

 
$
6,766

 
$
8,133