Commitments and Contingencies

9 Months Ended

Nov. 30, 2014

Commitments and Contingencies

Commitments and Contingencies

Note 4 – Commitments and Contingencies

We are involved in various legal claims and proceedings in the normal course of operations. We believe the outcome of these matters will not have a material adverse effect on our consolidated financial position, results of operations or liquidity.

Notes 8, 10, 11, 12, 13, and 14 provide additional information regarding certain of our significant commitments and certain significant contingencies we have provided for in the accompanying consolidated condensed financial statements.

Our products are under warranty against defects in material and workmanship for periods ranging from two to five years. We estimate our warranty accrual using historical trends and believe that these trends are the most reliable method by which we can estimate our warranty liability.  The following table summarizes the activity in our warranty accrual for the periods covered below:

ACCRUAL FOR WARRANTY RETURNS

(in thousands)

	Three Months Ended November 30,						Nine Months Ended November 30,
	2014 (1)			2013			2014 (2)				2013
Beginning balance	$	22,492		$	21,357		$	19,269		$		23,150
Additions to the accrual	16,574			12,931			46,088			38,041
Reductions of the accrual - payments and credits issued	(13,821		)	(12,197		)	(40,112		)	(39,100			)
Ending balance	$	25,245		$	22,091		$	25,245		$		22,091

(1) For the fiscal quarter ended November 30, 2014, the table includes accrual additions of $2.18 million and related payments and credits of $2.37 million attributed to Healthy Directions.

(2) For the nine months ended November 30, 2014, the table includes additions to the accrual of $5.37 million and related payments and credits of $4.20 million attributed to Healthy Directions.