Warranty

9 Months Ended

Sep. 30, 2023

Intevac provides for the estimated cost of warranty when revenue is recognized. Intevac’s warranty is subject to contract terms and, for its systems, the warranty typically ranges between 12 and 24 months from customer acceptance. During this warranty period any defective non-consumable parts are replaced and installed at no charge to the customer. Intevac uses estimated repair or replacement costs along with its historical warranty experience to determine its warranty obligation. The provision for the estimated future costs of warranty is based upon historical cost and product performance experience. Intevac exercises judgment in determining the underlying estimates.

On the condensed consolidated balance sheets, the short-term portion of the warranty provision is included in other accrued liabilities, while the long-term portion, if any, is included in other noncurrent liabilities. The expense associated with product warranties issued or adjusted is included in cost of net revenues on the condensed consolidated statements of operations.

The following table displays the activity in the warranty provision account for the three and nine months ended September 30, 2023 and October 1, 2022:


	Three Months Ended						Nine Months Ended
	September 30, 2023			October 1, 2022			September 30, 2023			October 1, 2022

	(In thousands)
Opening balance	$	181		$	214		$	163		$	346
Expenditures incurred under warranties		(36	)		(60	)		(201	)		(286	)
Accruals for product warranties issued during the reporting period		67			63			239			135
Adjustments to previously existing warranty accruals		(10	)		9			1			31

Closing balance	$	202		$	226		$	202		$	226

The following table displays the balance sheet classification of the warranty provision account at September 30, 2023 and at December 31, 2022.


	September 30, 2023		De ce mber 31, 2022

	(In thousands)
Other accrued liabilities	$	173	$	163
Other noncurrent liabilities		29		—

Total warranty provision	$	202	$	163