. Product Warranty

Obligations

The Company records a liability for standard product warranty obligations accounted for as assurance warranties 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 following is a tabular reconciliation of the Company’s standard product warranty liability accounted for as an assurance warranty:

	Three Months Ended March 31,
	2019			2018
Balance at beginning of period	$	41,785		$	35,422
Product warranty reserve assumed in acquisition		212			-
Payments		(5,634	)		(4,985	)
Provision for warranty issued		6,960			5,203
Changes in estimates for pre-existing warranties		239			679
Balance at end of period	$	43,562		$	36,319

Additionally, the Company sells extended warranty coverage for certain products, which it accounts for as a service warranty. The sales of extended warranties are recorded as deferred revenue, and typically have a duration of

five

ten

years. The deferred revenue related to extended warranty coverage is amortized over the duration of the extended warranty contract period, following the standard warranty period, using the straight-line method. The Company believes the straight-line method is appropriate because the performance obligation is satisfied based on the passage of time. The amortization of deferred revenue is recorded to net sales in the condensed consolidated statements of comprehensive income. The following is a tabular reconciliation of the deferred revenue related to extended warranty coverage:

	Three Months Ended March 31,
	2019			2018
Balance at beginning of period	$	68,340		$	57,854
Deferred revenue contracts issued		5,800			4,716
Amortization of deferred revenue contracts		(3,296	)		(2,457	)
Balance at end of period	$	70,844		$	60,113

The timing of recognition of the Company’s deferred revenue balance related to extended warranties at

March 31, 2019

is as follows:

Remainder of 2019	$	10,433
2020		14,333
2021		13,157
2022		11,071
2023		8,173
After 2023		13,677
Total	$	70,844

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

	March 31,		December 31,
	2019		2018
Product warranty liability
Current portion - other accrued liabilities	$	25,559	$	25,396
Long-term portion - other long-term liabilities		18,003		16,389
Total	$	43,562	$	41,785

Deferred revenue related to extended warranties
Current portion - other accrued liabilities	$	13,930	$	13,646
Long-term portion - other long-term liabilities		56,914		54,694
Total	$	70,844	$	68,340