text: Property, plant, and equipment are carried at cost. Depreciation has 
  ***P R O D U C T W A R R A N T I E S***
  been computed using the straight-line method over estimated useful 
  The Company issues certain warranty policies on its furniture and 
  lives: land improvements, 10–20 years; buildings, 10–40 years; and 
  hearth products that provide for repair or replacement of any covered 
  machinery and equipment, 3–12 years. 
  product or component that fails during normal use because of a defect 
  
  in design, materials, or workmanship. A warranty reserve is determined  ***L O N G - L I V E D A S S E T S***
  
  Long-lived assets are reviewed for impairment as events or changes in  by recording a specific reserve for known warranty issues and an addi- 
  
  circumstances occur indicating that the amount of the asset reflected in  tional reserve for unknown claims that are expected to be incurred 
  
  the Company’s balance sheet may not be recoverable. An estimate of  based on historical claims experience. Actual claims incurred could dif- 
  
  undiscounted cash flows produced by the asset, or the appropriate  fer from the original estimates, requiring adjustments to the reserve. 
  
  group of assets, is compared to the carrying value to determine whether 