Note 2 Additional Financial Information Disclosure

The consolidated condensed balance sheet at December 31, 2010 was derived from amounts included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2010. Refer to the footnotes to the financial statements included in that report for a description of the Company’s accounting policies and for additional details of the Company’s financial condition. The details in those notes have not changed except as discussed below and as a result of normal adjustments in the interim.

Warranty and After-Sale Costs

The Company estimates and records provisions for warranties and other after-sale costs in the period in which the sale is recorded, based on a lag factor and historical warranty claim experience. After-sale costs represent a variety of activities outside of the written warranty policy, such as investigation of unanticipated problems after the customer has installed the product, or problems caused by water quality issues. The following table presents changes in the Company’s warranty and after-sale costs reserve for the three- and six-month periods ended June 30, 2011 and 2010.


	Three months						Six months
	ended						ended
	June 30,						June 30,
(In thousands)	2011			2010			2011			2010
Balance at beginning of period	$	911		$	969		$	889		$	907
Net additions charged to earnings		272			231			476			429
Costs incurred and adjustments		(251	)		(56	)		(433	)		(192	)

Balance at end of period	$	932		$	1,144		$	932		$	1,144