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Note 10 - Product Warranty Obligations

6 Months Ended

Jun. 30, 2019

Product Warranty Disclosure [Text Block]

10. 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 June 30,						Six Months Ended June 30,
	2019			2018			2019			2018
Balance at beginning of period	$	43,562		$	36,319		$	41,785		$	35,422
Product warranty reserve assumed in acquisition		195			-			407			-
Payments		(5,657	)		(4,907	)		(11,291	)		(9,892	)
Provision for warranty issued		8,178			6,275			15,138			11,478
Changes in estimates for pre-existing warranties		(954	)		973			(715	)		1,652
Balance at end of period	$	45,324		$	38,660		$	45,324		$	38,660

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 of5 to 10 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. Revenue is recognized on extended warranty contracts when the revenue recognition criteria are met, resulting in ratable recognition over the contract term. 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 June 30,						Six Months Ended June 30,
	2019			2018			2019			2018
Balance at beginning of period	$	70,844		$	60,113		$	68,340		$	57,854
Deferred revenue contracts issued		7,114			5,526			12,914			10,242
Amortization of deferred revenue contracts		(3,441	)		(2,632	)		(6,737	)		(5,089	)
Balance at end of period	$	74,517		$	63,007		$	74,517		$	63,007

The timing of recognition of the Company’s deferred revenue balance related to extended warranties at June 30, 2019 is as follows:

Remainder of 2019	$	7,708
2020		15,097
2021		14,998
2022		12,660
2023		9,405
After 2023		14,649
Total	$	74,517

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

	June 30,		December 31,
	2019		2018
Product warranty liability
Current portion - other accrued liabilities	$	26,948	$	25,396
Long-term portion - other long-term liabilities		18,376		16,389
Total	$	45,324	$	41,785

Deferred revenue related to extended warranties
Current portion - other accrued liabilities	$	13,925	$	13,646
Long-term portion - other long-term liabilities		60,592		54,694
Total	$	74,517	$	68,340