Note M - Contingencies

3 Months Ended

Mar. 31, 2013

Commitments and Contingencies Disclosure [Text Block]

Note M:                      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, which is included in other accrued liabilities on the accompanying balance sheets, for the three months March 31, 2013, and 2012, are summarized below:

	Three Months Ended March 31,
	2013			2012
Aggregate product warranty liability at beginning of period	$	776		$	313
Net aggregate expense related to product warranties		(10	)		120
Aggregate reductions for payments		(20	)		(100	)
Aggregate product warranty liability at end of period	$	746		$	333