Note 9 - Product Warranty Obligations

12 Months Ended

Dec. 31, 2015

Product Warranty Disclosure [Text Block]

9. 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. Additionally, the Company sells extended warranty coverage for certain products. The sales of extended warranties are recorded as deferred revenue, which is recognized over the life of the contracts.

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

	Year Ended December 31,
	2015			2014			2013

Balance at beginning of year	$	30,909		$	33,734		$	36,111
Product warranty reserve assumed in acquisition		351			360			600
Payments		(21,686	)		(20,975	)		(19,084	)
Provision for warranties issued		20,823			22,890			33,707
Changes in estimates for pre-existing warranties		(200	)		(5,100	)		(17,600	)
Balance at end of year	$	30,197		$	30,909		$	33,734

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

	Year Ended December 31,
	2015			2014			2013

Balance at beginning of year	$	27,193		$	23,092		$	13,474
Deferred revenue contracts assumed in acquisition		291			-			-
Deferred revenue contracts sold		5,978			7,343			11,998
Amortization of deferred revenue contracts		(4,501	)		(3,242	)		(2,380	)
Balance at end of year	$	28,961		$	27,193		$	23,092

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

	December 31,
	201 5		201 4
Product warranty liability
Current portion - other accrued liabilities	$	21,726	$	24,143
Long-term portion - other long-term liabilities		8,471		6,766
Total	$	30,197	$	30,909

Deferred revenue related to extended warranty
Current portion - other accrued liabilities	$	6,026	$	4,519
Long-term portion - other long-term liabilities		22,935		22,674
Total	$	28,961	$	27,193