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Warranty Reserves
 6 Months Ended
Jun. 30, 2013
Warranty Reserves

7. Warranty Reserves

Reserves are provided for the estimated warranty costs when revenue is recognized. The costs of warranty obligations are estimated based on warranty policy or applicable contractual warranty, historical experience of known product failure rates and use of materials and service delivery charges incurred in correcting product failures. Specific warranty accruals may be made if unforeseen technical problems arise. If actual experience, relative to these factors, significantly differs from these estimates, additional warranty expense may be required.

The following table shows the changes in accrued warranty expense for the three and six months ended June 30, 2012 and 2013:

 

 

For the three months ended
June 30,

 

  

For the six months ended
June 30,

 

 

2012

 

 

2013

 

  

2012

 

 

2013

 

 

(Unaudited)

 

 

(Unaudited)

 

  

(Unaudited)

 

 

(Unaudited)

 

Beginning balance             

$

  142,396

  

 

$

  107,589

  

  

$

  135,708

  

 

$

  115,566

  

Additions             

 

  22,195

  

 

 

  12,149

  

  

 

  49,958

  

 

 

  31,721

  

Usage             

 

(24,284

) 

 

 

(13,035

) 

  

 

(45,359

) 

 

 

(40,584

) 

Ending balance             

$

  140,307

  

 

$

  106,703

  

  

$

  140,307

  

 

$

  106,703