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Commitments and Contingencies
 3 Months Ended
May 31, 2012
Commitments and Contingencies  
Commitments and Contingencies

Note 3 – Commitments and Contingencies

 

We are involved in various legal claims and proceedings in the normal course of operations. We believe the outcome of these matters will not have a material adverse effect on our consolidated financial position, results of operations or liquidity.

 

Notes (7), (9), (10), (11), and (14) provide additional information regarding certain of our significant long-term commitments and certain significant contingencies we have provided for in the accompanying consolidated condensed financial statements.

 

Our products are under warranty against defects in material and workmanship for periods ranging from two to five years. We estimate our warranty accrual using historical trends and believe that these trends are the most reliable method by which we can estimate our warranty liability.  The following table summarizes the activity in our warranty accrual for the periods covered in the accompanying consolidated condensed statements of income:

 

ACCRUAL FOR WARRANTY RETURNS

(in thousands)

 

 

 

Three Months Ended May 31,

 

 

 

 

2012

 

2011

 

 

 

 

 

 

 

Beginning balance

 

$

26,665

 

$

24,021

 

Additions to the accrual

 

6,874

 

7,110

 

Reductions of the accrual - payments and credits issued

 

(10,226

)

(6,762

)

Ending balance

 

$

23,313

 

$

24,369