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Commitments and Contingencies
 9 Months Ended
Nov. 30, 2013
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, 11, 12, and 14 provide additional information regarding certain of our significant 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 November 30,

 

Nine Months Ended November 30,

 

 

 

 

2013

 

 

2012

 

 

 

2013

 

 

2012

 

Beginning balance

 

 

$

21,357

 

 

$

21,860

 

 

$

23,150

 

 

$

26,665

 

Additions to the accrual

 

 

6,504

 

 

11,027

 

 

25,280

 

 

25,800

 

Reductions of the accrual - payments and credits issued

 

 

(5,770

)

 

(7,496)

 

 

(26,339

)

 

(27,074

)

Ending balance

 

 

$

22,091

 

 

$

25,391

 

 

$

22,091

 

 

$

25,391