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Warranty Reserve
 6 Months Ended
Oct. 31, 2012
Warranty Reserve [Abstract]  
Warranty Reserve

(10) Warranty Reserve:

We generally provide a lifetime warranty to the original purchaser of our new firearm products and provide warranties for retained liabilities for up to two years on the materials and workmanship in our security solutions projects, which includes products purchased by us from third-party manufacturers. We provide for estimated warranty obligations in the period in which we recognize the related revenue. We quantify and record an estimate for warranty-related costs based on our actual historical claims experience and current repair costs. We make adjustments to accruals as warranty claims data and historical experience warrant. Should we experience actual claims and repair costs that are higher than the estimated claims and repair costs used to calculate the provision, our operating results for the period or periods in which such returns or additional costs materialize would be adversely impacted.

On November 11, 2011, we initiated a recall of all Thompson/Center Arms Venture rifles manufactured since the product’s introduction in mid-2009. As of October 31, 2012, we had incurred $635,000 in recall costs and we estimate the remaining cost of this recall will be $875,000, which is included in the accrued warranty balance. Warranty expense for the six months ended October 31, 2012 and 2011 was $1.6 million and $3.9 million, respectively.

The following sets forth the change in accrued warranty, a portion of which is recorded as a non-current liability, in the six months ended October 31, 2012 and 2011 (in thousands):

 

                 
    October 31, 2012     October 31, 2011  

Beginning Balance

   $ 6,412     $ 4,213  

Warranties issued and adjustments to provisions

     1,599       3,879  

Warranty claims

     (1,898 )      (1,555 ) 
   

 

 

    

 

 

  

Ending Balance

   $ 6,113     $ 6,537