WARRANTIES

Provisions of our sales agreements include product warranties customary to these types of agreements, ranging from 18 months to 24 months following installation for Precision Power products and 3 years to 10 years following installation for Inverter products. Our provision for the estimated cost of warranties is recorded when revenue is recognized. The warranty provision is based on historical experience by product, configuration and geographic region.

We establish accruals for warranty issues that are probable to result in future costs. Changes in product warranty accruals are as follows (in thousands):



	Three Months Ended June 30,						Six Months Ended June 30,
	2015			2014			2015			2014
Balances at beginning of period	$	32,117		$	20,650		$	36,121		$	22,067
Warranty liabilities acquired	—			19,684			—			19,684
Increases to accruals related to sales during the period	1,915			1,857			3,801			3,425
Warranty expenditures	(3,719		)	(4,652		)	(6,704		)	(7,606		)
Effect of changes in exchange rates	934			51			(1,971		)	20
Balances at end of period	$	31,247		$	37,590		$	31,247		$	37,590

As of June 30, 2015 $12.5 million is recorded in Current liabilities and $18.7 million is recorded in Long-term liabilities in our Condensed Consolidated Balance Sheet.