WARRANTY LIABILITY

6 Months Ended

Mar. 31, 2013

Product Warranty Disclosure [Text Block]

NOTE 17 – 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 March 31,						Six Months Ended March 31,
	2013			2012			2013			2012
Balance, beginning of period	$	7,743		$	8,953		$	8,856		$	7,963
Warranties issued and changes in estimated pre-existing warranties		662			2,916			656			4,946
Actual warranty costs incurred		(981	)		(1,513	)		(2,088	)		(2,553	)
Balance, end of period	$	7,424		$	10,356		$	7,424		$	10,356