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Accrued Liabilities
 3 Months Ended
Jan. 31, 2012
Accrued Liabilities [Abstract]  
Accrued Liabilities

Note 8. Accrued Liabilities

Accrued liabilities at January 31, 2012 and October 31, 2011 consisted of the following:

 

                 
    January 31,
2012		     October 31,
2011		  

Accrued payroll and employee benefits (1)

   $ 2,647     $ 4,672  

Accrued contract and operating costs (2 )

     246       88  

Reserve for product warranty cost (3 )

     1,297       1,134  

Reserve for long-term service agreement costs (4 )

     11,187       11,096  

Reserve for B1200 repair and upgrade program ( 5 )

     5,342       7,949  

Accrued taxes, legal, professional and other ( 6 )

     2,284       1,955  
   

 

 

    

 

 

  
    $ 23,003     $ 26,894  
   

 

 

    

 

 

  

 

(1) Balance relates to amounts owed to employees for compensation and benefits as of the end of the period.
(2) Balance includes estimated losses accrued on product sales contracts and amounts estimated as owed to customers related to contract performance.
(3) Activity in the reserve for product warranty costs for the three months ended January 31, 2012 included additions for estimates of potential future warranty obligations of $0.4 million on contracts in the warranty period and reserve reductions related to actual warranty spend and reversals to income of $0.2 million as contracts progress through the warranty period or are beyond the warranty period.
(4) As of January 31, 2012, the loss reserve on service agreement contracts totaled $8.6 million compared to $8.9 million as of October 31, 2011. Also included in this line item is a reserve for performance guarantees penalties under the terms of our customer contracts, which based on our ongoing analysis of historical fleet performance totaled $2.6 million and $2.2 million as of January 31, 2012 and October 31, 2011, respectively.
(5) For the three months ended January 31, 2012, the Company incurred actual repair and upgrade costs of approximately $2.6 million.
(6) Balance includes accrued sales, use and payroll taxes as well as accrued legal, professional and other expenses as of the end of the period.