Product Warranty

6 Months Ended

Jun. 30, 2017

3. Product Warranty

The Company has defined warranties ranging from one to two years. Products covered by the defined warranty policies include certain Titleist golf products, FootJoy golf shoes and FootJoy golf outerwear. These product warranties generally obligate the Company to pay for the cost of replacement products, including the cost of shipping replacement products to its customers. The estimated cost of satisfying future warranty claims is accrued at the time the sale is recorded. In estimating future warranty obligations, the Company considers various factors, including its warranty policies and practices, the historical frequency of claims and the cost to replace or repair products under warranty.

The activity related to the Company’s warranty obligation for accrued warranty expense was as follows:


	Three months ended				Six months ended
	June 30,				June 30,
(in thousands)	2017		2016		2017		2016

Balance at beginning of period	$	3,764	$	3,595	$	3,526	$	3,345
Provision		1,234		1,527		2,320		2,798
Claims paid/costs incurred		(1,226)		(1,344)		(2,127)		(2,374)
Foreign currency translation		7		6		60		15
Balance at end of period	$	3,779	$	3,784	$	3,779	$	3,784