Quarterly report pursuant to Section 13 or 15(d)

ACCRUED WARRANTY

v2.4.0.6
ACCRUED WARRANTY
9 Months Ended
Dec. 31, 2012
Product Warranties Disclosures [Abstract]  
Product Warranty Disclosure [Text Block]

NOTE 5: ACCRUED WARRANTY

The quarterly and year-to-date changes in the accrued warranty balance were (in thousands):

Three Months Ended Nine Months Ended
December 31,
2012
December 31,
2011
December 31,
2012
December 31,
2011
Beginning balance       $       7,904       $       7,113       $       7,586       $       7,034
       Additional warranties issued 2,037 2,427 7,240 7,123
       Adjustments for warranties issued in prior fiscal years 364 483 954 1,247
       Settlements (2,559 ) (2,943 ) (8,034 ) (8,324 )
Ending balance $ 7,746 $ 7,080 $ 7,746 $ 7,080
 

We generally warrant our products against defects for 1 to 3 years. A provision for estimated future costs and estimated returns for credit relating to warranty is recorded when products are shipped and revenue recognized. Our estimate of future costs to satisfy warranty obligations is primarily based on historical trends and, if believed to be significantly different from historical trends, estimates of future failure rates and future costs of repair including materials consumed in the repair and labor and overhead amounts necessary to perform the repair. If future actual failure rates differ from our estimates, we record the impact in subsequent periods. If future actual costs to repair were to differ significantly from our estimates, we record the impact of these unforeseen cost differences in subsequent periods.