Quarterly report pursuant to Section 13 or 15(d)

Reserve for Product Warranties

Reserve for Product Warranties
3 Months Ended
Mar. 31, 2014
Reserve for Product Warranties [Abstract]  
Reserve for Product Warranties

8 - Reserve for Product Warranties

We provide a warranty on all medical device products that is generally one year in length. We also sell extended service agreements on our medical device products that are generally over one year in length. Service for domestic customers is provided by Company-owned service centers that perform all service, repair, and calibration services. Service for international customers is provided by a combination of Company-owned facilities and vendors on a contract basis.

We have accrued a warranty reserve, included in accrued liabilities on the accompanying balance sheets, for the expected future costs of servicing products during the initial warranty period. We base the liability on actual warranty costs incurred to service those products. On new products, additions to the reserve are based on a combination of factors including the percentage of service department labor applied to warranty repairs, as well as actual service department costs, and other judgments, such as the degree to which the product incorporates new technology. The reserve is reduced as costs are incurred to honor existing warranty obligations.

The details of activity in the warranty reserve are as follows (in thousands):


Three Months Ended March 31,







Balance, beginning of period



Acquisition warranty assumed



Warranty accrued for the period



Repairs for the period



Balance, end of period