Contingencies

9 Months Ended

Sep. 30, 2013

Commitments and Contingencies Disclosure [Abstract]

Contingencies

Contingencies

Fuel Tech issues a standard product warranty with the sale of its products to customers. Our recognition of warranty liability is based primarily on analyses of warranty claims experienced in the preceding years as the nature of our historical product sales for which we offer a warranty are substantially unchanged. This approach provides an aggregate warranty accrual that is historically aligned with actual warranty claims experienced.

Changes in the warranty liability for the nine months September 30, 2013, and 2012, are summarized below:

	Nine Months Ended   September 30,
	2013			2012
Aggregate product warranty liability at beginning of period	$	776		313
Net aggregate expense related to product warranties	208			710
Aggregate reductions for payments	(89		)	(240		)
Aggregate product warranty liability at end of period	$	895		$	783

 The Company was recently made aware by a property owner that certain environmental conditions may exist and certain related efforts have been undertaken at an industrial property located in Connecticut. The Company and a subsidiary of the Company each leased the industrial property for a limited period of time beginning in 1984 and potentially continuing into sometime in the early 1990s. The property owner has requested that we assume responsibility for these matters. We are in the process of evaluating this matter. At this stage we are unable to express an opinion with respect to the likelihood of an unfavorable outcome of this matter or to estimate the amount or range of potential loss should the outcome be unfavorable. Therefore, we have not provided any amount for these claims in our financial statements at September 30, 2013.