PRODUCT WARRANTIES

3 Months Ended

May 31, 2017

Product Warranties Disclosures [Abstract]

PRODUCT WARRANTIES

NOTE 11 – PRODUCT WARRANTIES

The Company generally warrants its products against defects over periods ranging from 12 to 24 months, depending upon the product. An accrual for estimated future costs relating to products returned under warranty is recorded as an expense when products are shipped. At the end of each fiscal quarter, the Company adjusts its liability for warranty claims based on its actual warranty claims experience as a percentage of revenues for the preceding one to two years and also considers the impact of the known operational issues that may have a greater impact than historical trends. The warranty reserve is included in Other Current Liabilities in the unaudited consolidated balance sheets. Activity in the accrued warranty costs liability for the three months ended May 31, 2017 and 2016 is as follows (in thousands):

	Three Months Ended
	May 31,
	2017			2016
Balance at beginning of period	$	6,518		$	1,892
Amount assumed in acquisition of LoJack		-			1,883
Charged to costs and expenses		378			317
Deductions		(502	)		(577	)
Balance at end of period	$	6,394		$	3,515