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Deferred Warranty Revenue and Warranty Reserve
 12 Months Ended
Dec. 31, 2012
Deferred Warranty Revenue and Warranty Reserve [Abstract]  
Deferred Warranty Revenue and Warranty Reserve

Note 8 – Deferred Warranty Revenue and Warranty Reserve

Our standard practice is to provide a warranty on our DIGIPASS hardware for one to two years after the date of purchase. Customers may purchase extended warranties covering periods from one to four years after the standard warranty period. We defer the revenue associated with the extended warranty and recognize it into income on a straight-line basis over the extended warranty period. The estimated cost of providing warranty services during the extended warranty period is less than the revenue related to such warranty service.

Deferred warranty revenue at December 31, 2012, which will be recognized as revenue, is as follows:

 

         

Year

   Amount  

2013

   $ 35  

2014

     28  

2015

     26  

2016

     9  

2017

     5  
   

 

 

  

Total

   $ 103  
   

 

 

  

 

We maintain a reserve for the potential cost of future warranty claims related to products sold and recognized in revenue. The reserve is included in accrued expenses. Activity in the warranty reserve account during the three years ended December 31, 2012 was as follows:

 

                         
    2012     2011     2010  

Balance, beginning of period

   $ 36     $ 61     $ 150  

Provision for warranty claims

     139       59       105  

Product or cash issued to settle claims

     (130 )      (84 )      (194 ) 
   

 

 

    

 

 

    

 

 

  

Balance, end of period

   $ 45     $ 36     $ 61