Product Warranty Obligations

9 Months Ended

Sep. 30, 2013

Product Warranty Obligations [Abstract]

7. Product Warranty Obligations

The Company records a liability for product warranty obligations at the time of sale to a customer based upon historical warranty experience. The Company also records a liability for specific warranty matters when they become known and are reasonably estimable. The Company’s product warranty obligations are included in other accrued liabilities and other long-term liabilities in the condensed consolidated balance sheets. The Company recognizes the revenue from sales of extended warranties over the life of the contracts.

Changes in product warranty obligations are as follows:

	For the three months ended September 30,						For the nine months ended September 30,
	2013			2012			2013			2012
Balance at beginning of period	$	56,885		$	41,388		$	49,585		$	34,380
Payments, net of extended warranty receipts		(433	)		(3,285	)		(5,624	)		(10,603	)
Charged to operations		1,407			8,018			13,898			22,344
Balance at end of period	$	57,859		$	46,121		$	57,859		$	46,121

In 2013, as a result of improved warranty experience, warranty claims as a percent of sales has improved significantly, resulting in a favorable adjustment to warranty reserve with a corresponding favorable adjustment to warranty expense, in the amount of $5,600 and $12,300 for the three and nine month periods ending September 30, 2013, respectively.

The product warranty obligations are included in the condensed consolidated balance sheets as follows:

	September 30,		December 31,
	2013		2012
Other accrued liabilities	$	36,709	$	28,752
Other long-term liabilities		21,150		20,833
Balance at end of period	$	57,859	$	49,585