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Note 7 - Product Warranty Obligations

9 Months Ended

Sep. 30, 2014

Product Warranties Disclosures [Abstract]

Product Warranty Disclosure [Text Block]

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 also sells extended warranty coverage for certain products. The sales of extended warranties are recorded as deferred revenue, and we recognize the revenue from sales of extended warranties over the life of the contracts. The Company’s product warranty obligations, including deferred revenue related to extended warranty coverage, are included in other accrued liabilities and other long-term liabilities in the condensed consolidated balance sheets.

The following is a tabular reconciliation of the product warranty liability, excluding the deferred revenue related to extended warranty coverage:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2014			2013			2014			2013

Balance at beginning of period	$	32,171		$	40,156		$	33,734		$	36,112
Product warranty reserve assumed in acquisition		193			-			193			-
Payments		(5,672	)		(4,571	)		(16,696	)		(14,167	)
Provision for warranties issued		5,595			7,607			17,623			27,947
Changes in estimates for pre-existing warranties		182			(5,600	)		(2,385	)		(12,300	)
Balance at end of period	$	32,469		$	37,592		$	32,469		$	37,592

The following is a tabular reconciliation of the deferred revenue related to extended warranty coverage:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2014			2013			2014			2013

Balance at beginning of period	$	25,679		$	16,729		$	23,092		$	13,473
Deferred revenue on extended warranty contracts sold		1,315			4,138			5,329			8,544
Amortization of deferred revenue on extended warranty contracts		(850	)		(600	)		(2,277	)		(1,750	)
Balance at end of period	$	26,144		$	20,267		$	26,144		$	20,267

Product warranty obligations and extended warranty related deferred revenues are included in the condensed consolidated balance sheets as follows:

	September 30,		December 31,
	2014		2013
Product warranty liability
Current portion - other accrued liabilities	$	24,961	$	26,080
Long-term portion - other long-term liabilities		7,508		7,654
Total	$	32,469	$	33,734

Deferred revenue related to extended warranty
Current portion - other accrued liabilities	$	6,377	$	3,325
Long-term portion - other long-term liabilities		19,767		19,767
Total	$	26,144	$	23,092