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Product Warranty Reserve
9 Months Ended
Sep. 30, 2011
Product Warranty Reserve [Abstract] 
PRODUCT WARRANTY RESERVE

NOTE L – PRODUCT WARRANTY RESERVE

The Company records an accrual for estimated warranty costs to costs of products sold in the consolidated statements of income. These amounts are recorded in accrued expenses and other liabilities in the consolidated balance sheets. The Company records and accounts for its warranty reserve based on specific claim incidents. Should the Company become aware of a specific potential warranty claim for which liability is probable and reasonably estimable, a specific charge is recorded and accounted for accordingly. Adjustments are made quarterly to the accruals as claim information changes. During the second quarter of 2011, the Company accepted certified product from a supplier which later failed in the field. The Company has taken responsibility to expedite correcting the situation and as such, the Company had increased the warranty reserve by $1.8 million. As of September 30, 2011, $1.3 million has been paid related to this warranty claim.

The following is a rollforward of the product warranty reserve:

 

                 
    September 30, 2011     December 31, 2010  

Balance at the beginning of period

   $ 536     $ 209  

Additions charged to income

     1,923       403  

Warranty usage

     (1,532 )      (108 ) 

Currency translation

     (192 )      32  
   

 

 

    

 

 

  

End of period balance

   $ 735     $ 536