Product Warranty Liabilities

3 Months Ended

Mar. 31, 2015

8.	Product Warranty Liabilities

The Company provides for the estimated cost of product warranties at the time revenue is recognized based primarily on historical return rates, estimates of the eligible tire population and the value of tires to be replaced. The following table summarizes the activity in the Company’s product warranty liabilities:


	2014			2015
Reserve at January 1	$	30,853		$	14,005
Additions		5,906			2,994
Payments		(5,115	)		(3,986	)

Reserve at March 31	$	31,644		$	13,013

The CCT portion of the warranty accrual consisted of a January 1, 2014 reserve of $16,807, and additions to the reserve of $2,399 and payments of $2,137 for the period ended March 31, 2014.