Annual report pursuant to Section 13 and 15(d)

Product Warranties

v3.3.0.814
Product Warranties
12 Months Ended
Mar. 31, 2015
Product Warranties Disclosures [Abstract]  
Product Warranties
Product Warranties:
The Company’s products in the CSG segment carry a limited warranty ranging from one to seven years and one to five years for the product within the IBW segment. The specific terms and conditions of those warranties vary depending upon the customer and the product sold. Factors that enter into the estimate of the Company’s warranty reserve include: the number of units shipped historically, anticipated rates of warranty claims, and cost per claim. The Company periodically assesses the adequacy of its recorded warranty liability and adjusts the reserve as necessary. In fiscal year 2013, the Company recorded a $303,000 warranty obligation for pre-acquisition sales made by ANTONE related to a specific product failure. A corresponding indemnification claim for this warranty obligation was adjusted in the valuation of the contingent consideration related to the ANTONE acquisition (see Note 2, Note 6, and Note 13). The current portions of the warranty reserve were $383,000 and $286,000 as of March 31, 2015, and 2014, respectively, and are presented on the Consolidated Balance Sheets as accrued expenses. The long-term portions of the warranty reserve were $122,000 and $42,000 as of March 31, 2015, and 2014, respectively, and are presented on the Consolidated Balance Sheets as other long-term liabilities.
The following table presents the changes in our product warranty reserve:
 
Fiscal Year Ended March 31,
(in thousands)
2015
 
2014
 
2013
Total product warranty reserve at the beginning of the period
$
328

 
$
152

 
$
243

Warranty reserves from business acquisitions

 
149

 
25

Specific pre-acquisition ANTONE product warranty in excess of acquired limit

 

 
303

Warranty expense (reversal)
446

 
183

 
(45
)
Utilization
(269
)
 
(156
)
 
(374
)
Total product warranty reserve at the end of the period
$
505

 
$
328

 
$
152