Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 28, 2013

Summary of Activities for Discontinued Operations

On December 30, 2011, we entered into an agreement to sell our aesthetics business to Cutera, Inc. The operating results of our aesthetics business were therefore classified as discontinued operations, and the associated assets and liabilities were classified as discontinued operations for all periods presented under the requirements of ASC 360. The sale of the aesthetics business was completed on February 2, 2012.

	FY 2013 Year Ended		FY 2012 Year Ended			FY 2011 Year Ended
(in thousands)	December 28, 2013		December 29, 2012			December 31, 2011
Total revenues	$	—	$	1,630		$	10,840
Income (loss) from discontinued operations	$	—	$	(325	)	$	653
Gain on sales of aesthetics business	$	—	$	1,149		$	—
Income from discontinued operations, before income taxes	$	—	$	824		$	653
Income tax (benefit) expense	$	—	$	(784	)	$	184
Income from discontinued operations, net of tax	$	—	$	1,608		$	469

Reconciliation of the Changes in the Company's Deferred Revenue Balance

Revenue related to service contracts is deferred and recognized on a straight line basis over the period of the applicable service period. Costs associated with these service arrangements are recognized as incurred. A reconciliation of the changes in the Company’s deferred revenue balances for the years ended December 28, 2013 and December 29, 2012 are as follows (in thousands):

FY 2011: Balance, December 31, 2011	$	1,014
Additions to deferral		1,131
Revenue recognized		(1,141	)
FY 2012: Balance, December 29, 2012		1,004
Additions to deferral		1,383
Revenue recognized		(1,254	)
FY 2013: Balance, December 28, 2013	$	1,133

Reconciliation of the Changes in the Company's Warranty Liability

We provide reserves for the estimated cost of product warranties at the time revenue is recognized based on historical experience of known product failure rates and expected material and labor costs to provide warranty services. We generally provide a two-year warranty on our products. Additionally, from time to time, specific warranty accruals may be made if unforeseen technical problems arise. Alternatively, if estimates are determined to be greater than the actual amounts necessary, we may reverse a portion of such provisions in future periods. Warranty costs are reflected in the consolidated statements of operations as costs of revenues. A reconciliation of the changes in the Company’s warranty liability for the years ended December 28, 2013 and December 29, 2012 are as follows (in thousands):

FY 2011: Balance, December 31, 2011	$	556
Accruals for product warranties		173
Cost of warranty claims		(276	)
FY 2012: Balance, December 29, 2012		453
Accruals for product warranties		213
Cost of warranty claims		(198	)
FY 2013: Balance, December 28, 2013	$	468