XML 23 R17.htm IDEA: XBRL DOCUMENT

Note 10 - Product Warranty Obligations

9 Months Ended

Sep. 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 September 30,						Nine Months Ended September 30,
	2019			2018			2019			2018
Balance at beginning of period	$	45,324		$	38,660		$	41,785		$	35,422
Product warranty reserve assumed in acquisition		-			-			407			-
Payments		(7,576	)		(5,205	)		(18,867	)		(15,097	)
Provision for warranty issued		8,518			8,074			23,656			19,552
Changes in estimates for pre-existing warranties		230			(974	)		(485	)		678
Balance at end of period	$	46,496		$	40,555		$	46,496		$	40,555

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 to 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. 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 September 30,						Nine Months Ended September 30,
	2019			2018			2019			2018
Balance at beginning of period	$	74,517		$	63,007		$	68,340		$	57,854
Deferred revenue contracts issued		5,918			4,787			18,832			15,029
Amortization of deferred revenue contracts		(3,573	)		(2,873	)		(10,310	)		(7,962	)
Balance at end of period	$	76,862		$	64,921		$	76,862		$	64,921

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

Remainder of 2019	$	3,704
2020		15,250
2021		15,678
2022		13,831
2023		10,535
After 2023		17,864
Total	$	76,862

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

	September 30,		December 31,
	2019		2018
Product warranty liability
Current portion - other accrued liabilities	$	27,109	$	25,396
Long-term portion - other long-term liabilities		19,387		16,389
Total	$	46,496	$	41,785

Deferred revenue related to extended warranties
Current portion - other accrued liabilities	$	15,924	$	13,646
Long-term portion - other long-term liabilities		60,938		54,694
Total	$	76,862	$	68,340