NOTE 5 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)	June 29,		December 29,
	2013		2012
Raw materials and purchased parts	$	64,627	$	65,766
Work in process	18,495		18,075
Finished goods	24,824		24,887
Short-term inventories	$	107,946	$	108,728

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

(In thousands)	June 29,		December 29,
	2013		2012
Raw materials and purchased parts	$	3,344	$	4,149
Finished goods	4,354		4,926
Long-term inventories	$	7,698	$	9,075

Accrued Warranty Obligations

Unless otherwise stated in the Company’s product literature or in its agreements with customers, products sold by the Company’s Photonics and Optics Groups 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 and laser beam profilers and dental CAD/CAM scanners, which generally carry a two-year warranty. Products of these groups sold to original equipment manufacturer (OEM) customers generally carry longer warranties, typically 15 to 19 months. Products sold by the Company’s Lasers Group carry warranties that vary by product and product component, but generally range from 90 days to two years. In certain cases, such warranties for Lasers Group products are limited by either a set time period or a maximum amount of hourly usage of the product, whichever occurs first. 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 $3.0 million and $3.4 million as of June 29, 2013 and December 29, 2012, respectively. As of June 29, 2013 and December 29, 2012, the amounts accrued for long-term warranty obligations were not material.

The activity in accrued warranty obligations was as follows:

	Six Months Ended
(In thousands)	June 29,			June 30,
	2013			2012
Balance at beginning of year	$	3,528		$	4,466
Additions charged to cost of sales	1,193			1,290
Additions from acquisitions	-			21
Warranty claims	(1,510		)	(1,749		)
Balance at end of period	$	3,211		$	4,028

Accrued Expenses and Other Current Liabilities

Accrued expenses and other current liabilities were as follows:

(In thousands)	June 29,		December 29,
	2013		2012
Deferred revenue	$	13,276	$	11,561
Deferred lease liability	5,538		5,445
Accrued and deferred taxes	2,485		3,866
Short-term accrued warranty obligations	3,036		3,421
Other	14,277		10,403
	$	38,612	$	34,696

Accumulated Other Comprehensive Loss

Accumulated other comprehensive loss consisted of the following:

(In thousands)	June 29,			December 29,
	2013			2012
Cumulative foreign currency translation losses	$	(6,167	)	$	(4,569	)
Unrecognized net pension losses	(3,020		)	(3,248		)
Unrealized gains on marketable securities	720			868
	$	(8,467	)	$	(6,949	)