Product Warranty Reserve

12 Months Ended

Dec. 31, 2013

Note O – 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 took responsibility to expedite correcting the situation and as such, the Company increased the warranty reserve by $1.8 million during the second quarter of 2011.

The following is a rollforward of the product warranty reserve:


	2013			2012			2011
Balance at January 1	$	1,229		$	824		$	536
Additions charged to income		443			1,384			1,968
Warranty usage		(475	)		(983	)		(1,467	)
Currency translation		(57	)		4			(213	)

Balance at December 31	$	1,140		$	1,229		$	824