CONTINGENT LIABILITIES AND COMMITMENTS

3 Months Ended

Mar. 31, 2015

Commitments and Contingencies Disclosure [Abstract]

CONTINGENT LIABILITIES AND COMMITMENTS

CONTINGENT LIABILITIES AND COMMITMENTS

Litigation

The Company is currently involved in matters of litigation, including environmental contingencies, arising in the ordinary course of business.  The Company accrues for such matters when expenditures are probable and reasonably estimable.  Based upon information presently known, management is of the opinion that such litigation, either individually or in the aggregate, will not have a material adverse effect on the Company’s financial position, results of operations, or cash flows.

NOTE 5. CONTINGENT LIABILITIES AND COMMITMENTS (continued)

Warranty

The Company generally offers a warranty for all of its products.  The specific terms and conditions of those warranties vary depending upon the product.  The Company estimates the costs that may be incurred under its warranties and records a liability in the amount of such costs at the time product revenue is recognized.  Factors that affect the Company’s liability include historical product-failure experience and estimated repair costs for identified matters for each specific product category.  The Company periodically assesses the adequacy of its recorded warranty liabilities and adjusts the amounts as necessary.

Changes in the warranty reserve are as follows (in thousands):

Balance, as of December 31, 2014	$	8,180
Provision for warranty claims	1,730
Warranty claims paid	(1,619		)
Foreign currency translation adjustment	(68		)
Balance, as of March 31, 2015	$	8,223

Warranty expense for the three months ended March 31, 2015 and 2014 was $1.7 million and $1.6 million, respectively.