WARRANTIES

12 Months Ended

Dec. 31, 2011

NOTE 11—WARRANTIES

The Company provides for anticipated warranty costs at the time the associated revenue is recognized. Product warranty costs are estimated based upon the Company’s historical experience and the warranty period. The Company periodically reviews the adequacy of its warranty reserve and adjusts, if necessary, the warranty percentage and accrual based on actual experience and estimated costs to be incurred. In 2010, the Company experienced more warranty claims for instruments than expected. Information regarding the changes in the Company’s product warranty liability for the years ended December 31, 2011 and 2010 is as follows (in thousands):

	Amount
Balance at December 31, 2009	$	1,685
Additions charged to cost of product sales		2,673
Repairs and replacements		(3,509	)
Adjustments		644
Balance at December 31, 2010	$	1,493
Additions charged to cost of product sales		879
Repairs and replacements		(872	)
Balance at December 31, 2011	$	1,500