CONTINGENT LIABILITIES AND COMMITMENTS

12 Months Ended

Dec. 31, 2011

CONTINGENT LIABILITIES AND COMMITMENTS

CONTINGENT LIABILITIES AND COMMITMENTS

12. CONTINGENT LIABILITIES AND COMMITMENTS

        The Company is currently involved in claims and 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 consolidated financial position, results of operations, or cash flows.

        The Company offers a warranty for all of its products. The specific terms and conditions of those warranties vary depending upon the product sold. 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. Adjustments to recorded reserves for pre-existing warranties are not material for each period presented.

        Changes in the Company's warranty reserve during the years ended December 31, 2011, 2010, and 2009 were as follows:

	2011			2010			2009
	(in thousands)
Balance, beginning of the year	$	8,090		$	9,773		$	11,528
Provision for warranty claims		7,007			4,808			5,295
Warranty claims paid		(6,950	)		(6,478	)		(7,260	)
Exchange rate impact		(1	)		(13	)		210
Balance, end of the year	$	8,146		$	8,090		$	9,773

        At December 31, 2011, the Company employed a total of 3,121 people. Approximately 12.9% of the employees were represented by unions at December 31, 2011. The Grand Rapids, Michigan plant is the only unionized plant within the U.S. and has an agreement with the Carpenters Union, Local 1615, of the United Brotherhood of Carpenters and Joiners of America, Affiliate of the Carpenters Industrial Council (the Union), covering approximately 210 hourly employees. The Collective Bargaining Agreement expires April 30, 2015. Certain workers in the facilities in Italy are also represented by unions.