WARRANTY LIABILITY

9 Months Ended

Jun. 30, 2012

Product Warranty Disclosure [Text Block]

NOTE 18 – WARRANTY LIABILITY

Telephonics offers warranties against product defects for periods generally ranging from one to two years, depending on the specific product and terms of the customer purchase agreement. Typical warranties require Telephonics to repair or replace the defective products during the warranty period at no cost to the customer. At the time revenue is recognized, Griffon records a liability for warranty costs, estimated based on historical experience and periodically assesses its warranty obligations and adjusts the liability as necessary. ATT offers an express limited warranty for a period of ninety days on all products unless otherwise stated on the product or packaging from the date of original purchase.

Changes in Griffon’s warranty liability, included in Accrued liabilities, were as follows:

	Three Months Ended June 30,						Nine Months Ended June 30,
	2012			2011			2012			2011
Balance, beginning of period	$	10,356		$	6,513		$	7,963		$	6,719
Warranties issued and charges in estimated pre-existing warranties		579			1,154			5,525			2,830
Actual warranty costs incurred		(1,174	)		(988	)		(3,727	)		(2,870	)
Balance, end of period	$	9,761		$	6,679		$	9,761		$	6,679