5. WARRANTY COSTS

The Company recognizes the cost associated with its standard warranty on its products at the time of sale. The amount recognized is based on historical experience. The following is a reconciliation of the changes in accrued warranty costs for the three and nine months ended October 1, 2011 and October 2, 2010 (in thousands):


	Three Months Ended						Nine Months Ended
	October 1, 2011			October 2, 2010			October 1, 2011			October 2, 2010
Beginning balance	$	40,948		$	13,086		$	12,831		$	13,298
Deduct: Payments		(5,818	)		(3,293	)		(11,650	)		(10,194	)
Add: Provision		2,534			3,050			36,409			9,687
Acquisitions		3,897			117			3,897			135
Translation Adjustments		(117	)		42			(43	)		76

Ending balance	$	41,444		$	13,002		$	41,444		$	13,002

The accrued warranty costs for the nine months ended October 1, 2011 include an incremental $28.0 million provision due to a production flaw, which has been corrected, in certain standard motors produced in one of the Company's facilities during a limited period in 2011. The $28.0 million provision was the Company's best estimate of the warranty costs associated with the production flaw based on current analysis and is expected to be paid out within the next twelve months.

The accrued warranty costs are included with Other Accrued Expenses on the balance sheet.