(9) Commitments and Contingencies Limited warranty Our DriveCare ® limited warranty provides major mechanical and air-conditioning coverage on every used vehicle we sell. The limited warranty covers vehicles for 36 months or 36,000 miles, whichever comes first, and includes oil changes at Sears Automotive locations nationwide and 24/7 roadside assistance. The warranty is included in the sales price of the vehicle and is not sold as a separate product. A liability for the estimated cost of vehicle repairs under our warranty program is established at the time a used vehicle is sold by charging costs of used vehicles sold. We currently offer no warranty outside of our DriveCare ® limited warranty. The liability is evaluated for adequacy through an analysis based on the program's historical performance of cost incurred per unit sold, management's estimate of frequency of vehicles to be repaired and severity of claims, taking into account historical patterns and forecasted usage, the estimated cost of oil changes, and the estimated cost of roadside assistance, both of which are based on the program's historical performance and our expectation of future usage. The limited warranty accrual is recorded as a component of accrued expenses and other liabilities on the accompanying consolidated balance sheets for each period presented. The following table reflects activity in the warranty accrual for the periods indicated: Three Months Ended September 30, Nine Months Ended September 30, 2011 2010 2011 2010 (in thousands) Balance, Beginning of Period $ 25,184 $ 7,860 $ 17,936 $ 920 Warranty Expense 5,952 7,379 19,231 17,208 Warranty Claims Paid (4,116 ) (1,834 ) (10,147 ) (4,723 ) Balance, End of Period $ 27,020 $ 13,405 $ 27,020 $ 13,405 Lease commitments We previously closed dealerships and reconditioning centers and incurred store closing costs and recorded lease termination liabilities in accordance with ASC 420. At September 30, 2011, approximately $1.5 million remains in accrued expenses and other liabilities on the acc