Generally, the company's products are covered from the date of sale to the customer by warranties against defects in material and workmanship for various periods depending on the product. Certain components carry a lifetime warranty. A provision for estimated warranty cost is recorded at the time of sale based upon actual experience. The company continuously assesses the adequacy of its product warranty accrual and makes adjustments as needed. Historical analysis is primarily used to determine the company's warranty reserves. Claims history is reviewed and provisions are adjusted as needed. However, the company does consider other events, such as a product recall, which could warrant additional warranty reserve provision. The increase in the liability for pre-existing warranties in 2013 is primarily the result of product recalls. The warranty accrual as of September 30, 2013 includes anticipated warranty expense related to the power wheelchair joystick recall of $3,800,000, provided for during the second quarter of 2013, which primarily impacted the Asia/Pacific segment. No change was made in the warranty accrual related to the power wheelchair joystick recall during the quarter ended September 30, 2013.

The following is a reconciliation of the changes in accrued warranty costs for the reporting period (in thousands):




Balance as of January 1, 2013	$	21,451
Warranties provided during the period	7,843
Settlements made during the period	(8,741		)
Changes in liability for pre-existing warranties during the period, including expirations	4,467
Balance as of September 30, 2013	$	25,020