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WARRANTY COSTS AND OTHER CONTINGENCIES | 3 Months Ended
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Mar. 31, 2015
WARRANTY COSTS AND OTHER CONTINGENCIES |
WARRANTY COSTS AND OTHER CONTINGENCIES |
6. | WARRANTY COSTS AND OTHER CONTINGENCIES
Warranty Costs For our Chaparral products, Marine Products provides a lifetime limited structural hull warranty against defects in material and workmanship for the original purchaser, and a five-year limited structural hull warranty for one subsequent owner. Additionally, a non-transferable five-year limited structural deck warranty against defects in materials and workmanship is available to the original owner. Warranties on additional items are provided for periods of one to five years. For our Robalo products, Marine Products provides a transferable ten-year limited structural hull warranty against defects in material and workmanship to the original owner, and a five-year limited hull warranty to one subsequent owner. Additionally, Marine Products provides a transferable one-year limited warranty on other components. The manufacturers of the engines included on our boats provide various engine warranties as well. An analysis of the warranty accruals for the three months ended March 31, 2015 and 2014 is as follows:
(in thousands) |  | 2015 |  |  | 2014 |
Balance at beginning of period |  | $ | 3,836 |  |  | $ | 3,410 |
Less: Payments made during the period |  |  | (374 | ) |  |  | (309 | )
Add: Warranty provision for the period |  |  | 829 |  |  |  | 731 |
Changes to warranty provision for prior periods |  |  | (443 | ) |  |  | 70 |
Balance at March 31 |  | $ | 3,848 |  |  | $ | 3,902 |
The warranty accruals are reflected in accrued expenses and other liabilities on the consolidated balance sheets. Repurchase Obligations The Company is a party to various agreements with first party lenders that provide floor plan financing to qualifying dealers whereby the Company guarantees varying amounts of debt on boats in dealer inventory. The Company’s obligation under these guarantees becomes effective in the case of a default under the financing arrangement between the dealer and the first party lender. The agreements provide for the return of repossessed boats to the Company in new and unused condition subject to normal wear and tear as defined, in exchange for the Company’s assumption of specified percentages of the debt obligation on those boats, up to certain contractually determined dollar limits by the lenders. The Company had no material repurchases of inventory during the three months ended March 31, 2015 or during the three months ended March 31, 2014. Management continues to monitor the risk of defaults and resulting repurchase obligations based in part on information provided by third-party floor plan lenders and will adjust the guarantee liability at the end of each reporting period based on information reasonably available at that time. The Company currently has an agreement with one of the floor plan lenders whereby the contractual repurchase limit is to not exceed 16 percent of the amount of the average net receivables financed by the floor plan lender for dealers during the prior 12 month period, which was $8.2 million as of March 31, 2015. The Company has contractual repurchase agreements with additional lenders with an aggregate maximum repurchase obligation of approximately $6.5 million with various expiration and cancellation terms of less than one year, for an aggregate repurchase obligation with all floor plan financing institutions of approximately $14.7 million as of March 31, 2015.

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- Definition The entire disclosure for standard and extended product warranties and other product guarantee contracts, including a tabular reconciliation of the changes in the guarantor's aggregate product warranty liability for the reporting period. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 460 -SubTopic 10 -Section 50 -Paragraph 8 -URI http://asc.fasb.org/extlink&oid=6398077&loc=d3e12565-110249 + Details
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