Note 14 - Guarantees

6 Months Ended

Jun. 26, 2021

Notes to Financial Statements

Commitments Contingencies and Guarantees [Text Block]

14. Guarantees

Product Warranty

Our products are generally sold with warranty periods that range from 12 to 36 months following sale or acceptance. The product warranty promises customers that delivered products are as specified in the contract (an “assurance-type warranty”). Therefore, we account for such product warranties under ASC 460, and not as a separate performance obligation. Parts and labor are covered under the terms of the warranty agreement. The warranty provision is based on historical and projected experience by product and configuration.

Changes in accrued warranty were as follows (in thousands):

	Three Months Ended						Six Months Ended
	June 26,			June 27,			June 26,			June 27,
	2021			2020			2021			2020
Balance at beginning of period	$	7,138		$	6,268		$	6,382		$	6,155
Warranty expense accruals		3,243			1,044			5,652			2,935
Warranty payments		(1,895	)		(1,316	)		(3,548	)		(3,094	)
Liability transferred (1)		(945	)		-			(945	)		-
Balance at end of period	$	7,541		$	5,996		$	7,541		$	5,996

(1) Warranty liability transferred in connection with the sale of our PCB Test business.

Accrued warranty amounts expected to be incurred after one year are included in noncurrent other accrued liabilities in the condensed consolidated balance sheet. These amounts totaled $0.6 million and $0.3 million at June 26, 2021 and December 26, 2020, respectively.