diff --git a/lib/puppet/transaction/report.rb b/lib/puppet/transaction/report.rb
index f78b5aa21..6315973ba 100644
--- a/lib/puppet/transaction/report.rb
+++ b/lib/puppet/transaction/report.rb
@@ -1,156 +1,169 @@
 require 'puppet'
 require 'puppet/indirector'
 
 # A class for reporting what happens on each client.  Reports consist of
 # two types of data:  Logs and Metrics.  Logs are the output that each
 # change produces, and Metrics are all of the numerical data involved
 # in the transaction.
 class Puppet::Transaction::Report
   extend Puppet::Indirector
 
   indirects :report, :terminus_class => :processor
 
   attr_accessor :configuration_version
-  attr_reader :resource_statuses, :logs, :metrics, :host, :time, :kind
+  attr_reader :resource_statuses, :logs, :metrics, :host, :time, :kind, :status
 
   # This is necessary since Marshall doesn't know how to
   # dump hash with default proc (see below @records)
   def self.default_format
     :yaml
   end
 
   def <<(msg)
     @logs << msg
     self
   end
 
   def add_times(name, value)
     @external_times[name] = value
   end
 
   def add_metric(name, hash)
     metric = Puppet::Util::Metric.new(name)
 
     hash.each do |name, value|
       metric.newvalue(name, value)
     end
 
     @metrics[metric.name] = metric
     metric
   end
 
   def add_resource_status(status)
     @resource_statuses[status.resource] = status
   end
 
+  def compute_status(resource_metrics, change_metric)
+    if (resource_metrics[:failed] || 0) > 0
+      'failed'
+    elsif change_metric > 0
+      'changed'
+    else
+      'unchanged'
+    end
+  end
+
   def finalize_report
-    add_metric(:resources, calculate_resource_metrics)
+    resource_metrics = add_metric(:resources, calculate_resource_metrics)
     add_metric(:time, calculate_time_metrics)
-    add_metric(:changes, {:total => calculate_change_metric})
+    change_metric = calculate_change_metric
+    add_metric(:changes, {:total => change_metric})
     add_metric(:events, calculate_event_metrics)
+    @status = compute_status(resource_metrics, change_metric)
   end
 
   def initialize(kind, configuration_version=nil)
     @metrics = {}
     @logs = []
     @resource_statuses = {}
     @external_times ||= {}
     @host = Puppet[:certname]
     @time = Time.now
     @kind = kind
     @report_format = 2
     @puppet_version = Puppet.version
     @configuration_version = configuration_version
+    @status = 'failed' # assume failed until the report is finalized
   end
 
   def name
     host
   end
 
   # Provide a summary of this report.
   def summary
     ret = ""
 
     @metrics.sort { |a,b| a[1].label <=> b[1].label }.each do |name, metric|
       ret += "#{metric.label}:\n"
       metric.values.sort { |a,b|
         # sort by label
         if a[0] == :total
           1
         elsif b[0] == :total
           -1
         else
           a[1] <=> b[1]
         end
       }.each do |name, label, value|
         next if value == 0
         value = "%0.2f" % value if value.is_a?(Float)
         ret += "   %15s %s\n" % [label + ":", value]
       end
     end
     ret
   end
 
   # Based on the contents of this report's metrics, compute a single number
   # that represents the report. The resulting number is a bitmask where
   # individual bits represent the presence of different metrics.
   def exit_status
     status = 0
     status |= 2 if @metrics["changes"][:total] > 0
     status |= 4 if @metrics["resources"][:failed] > 0
     status
   end
 
   def to_yaml_properties
     (instance_variables - ["@external_times"]).sort
   end
 
   private
 
   def calculate_change_metric
     resource_statuses.map { |name, status| status.change_count || 0 }.inject(0) { |a,b| a+b }
   end
 
   def calculate_event_metrics
     metrics = Hash.new(0)
     metrics[:total] = 0
     resource_statuses.each do |name, status|
       metrics[:total] += status.events.length
       status.events.each do |event|
         metrics[event.status] += 1
       end
     end
 
     metrics
   end
 
   def calculate_resource_metrics
     metrics = Hash.new(0)
     metrics[:total] = resource_statuses.length
 
     resource_statuses.each do |name, status|
 
       Puppet::Resource::Status::STATES.each do |state|
         metrics[state] += 1 if status.send(state)
       end
     end
 
     metrics
   end
 
   def calculate_time_metrics
     metrics = Hash.new(0)
     resource_statuses.each do |name, status|
       type = Puppet::Resource.new(name).type
       metrics[type.to_s.downcase] += status.evaluation_time if status.evaluation_time
     end
 
     @external_times.each do |name, value|
       metrics[name.to_s.downcase] = value
     end
 
     metrics["total"] = metrics.values.inject(0) { |a,b| a+b }
 
     metrics
   end
 end
diff --git a/spec/unit/transaction/report_spec.rb b/spec/unit/transaction/report_spec.rb
index 5d270dad3..96d464b7a 100755
--- a/spec/unit/transaction/report_spec.rb
+++ b/spec/unit/transaction/report_spec.rb
@@ -1,275 +1,290 @@
 #!/usr/bin/env ruby
 
 require File.dirname(__FILE__) + '/../../spec_helper'
 
 require 'puppet/transaction/report'
 
 describe Puppet::Transaction::Report do
   before do
     Puppet::Util::Storage.stubs(:store)
   end
 
   it "should set its host name to the certname" do
     Puppet.settings.expects(:value).with(:certname).returns "myhost"
     Puppet::Transaction::Report.new("apply").host.should == "myhost"
   end
 
   it "should return its host name as its name" do
     r = Puppet::Transaction::Report.new("apply")
     r.name.should == r.host
   end
 
   it "should create an initialization timestamp" do
     Time.expects(:now).returns "mytime"
     Puppet::Transaction::Report.new("apply").time.should == "mytime"
   end
 
   it "should take a 'kind' as an argument" do
     Puppet::Transaction::Report.new("inspect").kind.should == "inspect"
   end
 
   it "should take a 'configuration_version' as an argument" do
     Puppet::Transaction::Report.new("inspect", "some configuration version").configuration_version.should == "some configuration version"
   end
 
   it "should be able to set configuration_version" do
     report = Puppet::Transaction::Report.new("inspect")
     report.configuration_version = "some version"
     report.configuration_version.should == "some version"
   end
 
   describe "when accepting logs" do
     before do
       @report = Puppet::Transaction::Report.new("apply")
     end
 
     it "should add new logs to the log list" do
       @report << "log"
       @report.logs[-1].should == "log"
     end
 
     it "should return self" do
       r = @report << "log"
       r.should equal(@report)
     end
   end
 
   describe "when accepting resource statuses" do
     before do
       @report = Puppet::Transaction::Report.new("apply")
     end
 
     it "should add each status to its status list" do
       status = stub 'status', :resource => "foo"
       @report.add_resource_status status
       @report.resource_statuses["foo"].should equal(status)
     end
   end
 
   describe "when using the indirector" do
     it "should redirect :find to the indirection" do
       @indirection = stub 'indirection', :name => :report
       Puppet::Transaction::Report.stubs(:indirection).returns(@indirection)
       @indirection.expects(:find)
       Puppet::Transaction::Report.find(:report)
     end
 
     it "should redirect :save to the indirection" do
       Facter.stubs(:value).returns("eh")
       @indirection = stub 'indirection', :name => :report
       Puppet::Transaction::Report.stubs(:indirection).returns(@indirection)
       report = Puppet::Transaction::Report.new("apply")
       @indirection.expects(:save)
       report.save
     end
 
     it "should default to the 'processor' terminus" do
       Puppet::Transaction::Report.indirection.terminus_class.should == :processor
     end
 
     it "should delegate its name attribute to its host method" do
       report = Puppet::Transaction::Report.new("apply")
       report.expects(:host).returns "me"
       report.name.should == "me"
     end
 
     after do
       Puppet::Util::Cacher.expire
     end
   end
 
   describe "when computing exit status" do
     it "should produce 2 if changes are present" do
       report = Puppet::Transaction::Report.new("apply")
       report.add_metric("changes", {:total => 1})
       report.add_metric("resources", {:failed => 0})
       report.exit_status.should == 2
     end
 
     it "should produce 4 if failures are present" do
       report = Puppet::Transaction::Report.new("apply")
       report.add_metric("changes", {:total => 0})
       report.add_metric("resources", {:failed => 1})
       report.exit_status.should == 4
     end
 
     it "should produce 6 if both changes and failures are present" do
       report = Puppet::Transaction::Report.new("apply")
       report.add_metric("changes", {:total => 1})
       report.add_metric("resources", {:failed => 1})
       report.exit_status.should == 6
     end
   end
 
-  describe "when calculating metrics" do
+  describe "before finalizing the report" do
+    it "should have a status of 'failed'" do
+      report = Puppet::Transaction::Report.new("apply")
+      report.status.should == 'failed'
+    end
+  end
+
+  describe "when finalizing the report" do
     before do
       @report = Puppet::Transaction::Report.new("apply")
     end
 
     def metric(name, value)
       if metric = @report.metrics[name.to_s]
         metric[value]
       else
         nil
       end
     end
 
     def add_statuses(count, type = :file)
       count.times do |i|
         status = Puppet::Resource::Status.new(Puppet::Type.type(type).new(:title => "/my/path#{i}"))
         yield status if block_given?
         @report.add_resource_status status
       end
     end
 
 
     [:time, :resources, :changes, :events].each do |type|
       it "should add #{type} metrics" do
         @report.finalize_report
         @report.metrics[type.to_s].should be_instance_of(Puppet::Transaction::Metric)
       end
     end
 
     describe "for resources" do
       it "should provide the total number of resources" do
         add_statuses(3)
 
         @report.finalize_report
         metric(:resources, :total).should == 3
       end
 
       Puppet::Resource::Status::STATES.each do |state|
         it "should provide the number of #{state} resources as determined by the status objects" do
           add_statuses(3) { |status| status.send(state.to_s + "=", true) }
 
           @report.finalize_report
           metric(:resources, state).should == 3
         end
       end
+
+      it "should mark the report as 'failed' if there are failing resources" do
+        add_statuses(1) { |status| status.failed = true }
+        @report.finalize_report
+        @report.status.should == 'failed'
+      end
     end
 
     describe "for changes" do
-      it "should provide the number of changes from the resource statuses" do
+      it "should provide the number of changes from the resource statuses and mark the report as 'changed'" do
         add_statuses(3) { |status| 3.times { status << Puppet::Transaction::Event.new(:status => 'success') } }
         @report.finalize_report
         metric(:changes, :total).should == 9
+        @report.status.should == 'changed'
       end
 
-      it "should provide a total even if there are no changes" do
+      it "should provide a total even if there are no changes, and mark the report as 'unchanged'" do
         @report.finalize_report
         metric(:changes, :total).should == 0
+        @report.status.should == 'unchanged'
       end
     end
 
     describe "for times" do
       it "should provide the total amount of time for each resource type" do
         add_statuses(3, :file) do |status|
           status.evaluation_time = 1
         end
         add_statuses(3, :exec) do |status|
           status.evaluation_time = 2
         end
         add_statuses(3, :mount) do |status|
           status.evaluation_time = 3
         end
 
         @report.finalize_report
 
         metric(:time, "file").should == 3
         metric(:time, "exec").should == 6
         metric(:time, "mount").should == 9
       end
 
       it "should add any provided times from external sources" do
         @report.add_times :foobar, 50
         @report.finalize_report
         metric(:time, "foobar").should == 50
       end
 
       it "should have a total time" do
         add_statuses(3, :file) do |status|
           status.evaluation_time = 1.25
         end
         @report.add_times :config_retrieval, 0.5
         @report.finalize_report
         metric(:time, "total").should == 4.25
       end
     end
 
     describe "for events" do
       it "should provide the total number of events" do
         add_statuses(3) do |status|
           3.times { |i| status.add_event(Puppet::Transaction::Event.new) }
         end
         @report.finalize_report
         metric(:events, :total).should == 9
       end
 
       it "should provide the total even if there are no events" do
         @report.finalize_report
         metric(:events, :total).should == 0
       end
 
       Puppet::Transaction::Event::EVENT_STATUSES.each do |status_name|
         it "should provide the number of #{status_name} events" do
           add_statuses(3) do |status|
             3.times do |i|
               event = Puppet::Transaction::Event.new
               event.status = status_name
               status.add_event(event)
             end
           end
 
           @report.finalize_report
           metric(:events, status_name).should == 9
         end
       end
     end
   end
 
   describe "when producing a summary" do
     before do
       resource = Puppet::Type.type(:notify).new(:name => "testing")
       catalog = Puppet::Resource::Catalog.new
       catalog.add_resource resource
       trans = catalog.apply
 
       @report = trans.report
       @report.finalize_report
     end
 
     %w{Changes Total Resources}.each do |main|
       it "should include information on #{main} in the summary" do
         @report.summary.should be_include(main)
       end
     end
   end
 
   describe "when outputting yaml" do
     it "should not include @external_times" do
       report = Puppet::Transaction::Report.new('apply')
       report.add_times('config_retrieval', 1.0)
       report.to_yaml_properties.should_not include('@external_times')
     end
   end
 end