SUPPLEMENTAL BALANCE SHEET INFORMATION

9 Months Ended

Sep. 29, 2012

SUPPLEMENTAL BALANCE SHEET INFORMATION

SUPPLEMENTAL BALANCE SHEET INFORMATION

NOTE 6        SUPPLEMENTAL BALANCE SHEET INFORMATION

Inventories

Inventories that are expected to be sold within one year are classified as current inventories and are included in inventories in the accompanying consolidated balance sheets.  Such inventories were as follows:

(In thousands)	September 29,		December 31,
	2012		2011
Raw materials and purchased parts	$	66,827	$	65,054
Work in process	18,320		19,257
Finished goods	25,793		28,657
Short-term inventories	110,940		112,968

Inventories that are not expected to be sold within one year are classified as long-term inventories and are included in other assets in the accompanying consolidated balance sheets.  Such inventories were as follows:

(In thousands)	September 29,		December 31,
	2012		2011
Raw materials and purchased parts	$	3,650	$	3,306
Work in process	-		-
Finished goods	5,630		6,119
Long-term inventories	9,280		9,425

Accrued Warranty Obligations

Unless otherwise stated in the Company’s product literature or in its agreements with customers, products sold by the Company’s PPT Division generally carry a one-year warranty from the original invoice date on all product materials and workmanship, other than filters and gratings products, which generally carry a 90-day warranty.  Products of this division sold to original equipment manufacturer (OEM) customers generally carry longer warranties, typically 15 to 19 months.  Products sold by the Company’s Lasers Division carry warranties that vary by product and product component, but that generally range from 90 days to two years.  In certain cases, such warranties for Lasers Division products are limited by either a set time period or a maximum amount of usage of the product, whichever occurs first.  Products sold by the Company’s Ophir Division generally carry a one-year warranty, except for laser beam profilers and dental CAD/CAM scanners, which generally carry a two-year warranty.  Defective products will be either repaired or replaced, generally at the Company’s option, upon meeting certain criteria.  The Company accrues a provision for the estimated costs that may be incurred for warranties relating to a product (based on historical experience) as a component of cost of sales.  Short-term accrued warranty obligations, which expire within one year, are included in accrued expenses and other current liabilities and long-term warranty obligations are included in deferred income taxes and other liabilities in the accompanying consolidated balance sheets.  Short-term warranty obligations were $3.5 million and $4.3 million as of September 29, 2012 and December 31, 2011, respectively.  As of September 29, 2012 and December 31, 2011, the amounts accrued for long-term warranty obligations were not material.

The activity in accrued warranty obligations was as follows:

	Nine Months Ended
(In thousands)	September 29,			October 1,
	2012			2011
Balance at beginning of year	$	4,466		$	4,105
Additions charged to cost of sales	2,011			2,853
Additions from acquisitions	21			838
Warranty claims	(2,881		)	(2,922		)
Balance at end of period	$	3,617		$	4,874

Accrued Expenses and Other Current Liabilities

Accrued expenses and other current liabilities were as follows:

(In thousands)	September 29,		December 31,
	2012		2011
Deferred revenue	$	10,794	$	12,383
Accrued and deferred tax liabilities	10,316		4,379
Deferred lease liability	5,221		5,201
Short-term accrued warranty obligations	3,525		4,342
Other	12,104		13,495
	$	41,960	$	39,800

Accumulated Other Comprehensive Loss

Accumulated other comprehensive loss consisted of the following:

(In thousands)	September 29,			December 31,
	2012			2011
Cumulative foreign currency translation losses	$	(6,295	)	$	(5,804	)
Unrecognized net pension losses	(909		)	(1,005		)
Unrealized gains on marketable securities	700			820
	$	(6,504	)	$	(5,989	)