I took a moment to read through CLCT's 10-k from June 30, 2013
Some fun facts regarding Collectors Universe:
Payments made out via their conditional warranty:
$779k in 2010
$379k in 2011
$502k in 2012
They currently have $1.155 million reserved for future warranty claims.
There is no mention of the Wagner t206 meaning:
They do not have any particular reserve for said card and (assuming they told their auditors about the situation) they are not concerned about a future claim.
I'm assuming the claim would be upwards of $1 million so it would have been disclosed.
Here is what they write about their reserves:
Quote:
Service Warranties
We generally issue an authenticity or grading warranty with every coin and trading card authenticated or graded by us. Under the terms of the warranty, in general, if a coin or trading card that was graded by us later receives a lower grade upon resubmission to us for grading, we are obligated under our warranty either to purchase the coin or trading card at the price paid by the then-owner of the coin or trading card or, instead, at the customer’s option, to pay the difference in value of the item between its original grade as compared with its lower grade. Similarly, if a coin or trading card that has been authenticated by us is later determined not to have been authentic, we are obligated under our warranty to purchase the coin or trading card at the price that the then-owner paid for that collectible. We accrue for estimated warranty costs based on historical claims experience, and we monitor the adequacy of the warranty reserves on an ongoing basis. If warranty claims were to increase in relation to historical trends and experience, management would increase the warranty reserves and incur additional charges that would have the effect of reducing income in those periods during which the warranty reserve is increased. Before returning an authenticated or graded coin or trading card to our customer, we place the coin or trading card in a tamper-evident, clear plastic holder that encapsulates a label identifying the collectible as having been authenticated and graded by us. The warranty is voided in the event the plastic holder has been broken or damaged or shows signs of tampering.
We do not provide a warranty with respect to our opinions regarding the authenticity or quality of autographs.
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Keep in mind all this information also involves their coin and stamp authentication services as well.