Supplemental Balance Sheet Information

6 Months Ended

Jul. 02, 2011

Supplemental Balance Sheet Information

Supplemental Balance Sheet Information

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)	July 2, 2011		January 1, 2011
Raw materials and purchased parts	$	60,684	$	54,704
Work in process		12,049		9,592
Finished goods		22,731		20,212
	$	95,464	$	84,508

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 Precision Technologies (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. 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 at the time revenue for that product is recognized. 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 $4.0 million and $4.1 million as of July 2, 2011 and January 1, 2011, respectively. As of July 2, 2011 and January 1, 2011, 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)	July 2, 2011			July 3, 2010
Balance at beginning of year	$	4,105		$	3,898
Additions charged to cost of sales		1,862			2,131
Warranty claims		(1,936	)		(2,607	)
Balance at end of period	$	4,031		$	3,422

Accrued Expenses and Other Current Liabilities

Accrued expenses and other current liabilities were as follows:

(In thousands)	July 2, 2011		January 1, 2011
Deferred revenue	$	11,801	$	11,294
Short-term accrued warranty obligations		3,952		4,066
Deferred lease liability		5,220		4,985
Other		9,909		8,071
	$	30,882	$	28,416

Accumulated Other Comprehensive Income

Accumulated other comprehensive income consisted of the following:

(In thousands)	July 2, 2011			January 1, 2011
Cumulative foreign currency translation gains	$	1,272		$	4,407
Unrecognized net pension losses		(1,131	)		(1,556	)
Unrealized gains on marketable securities		423			1,185
	$	564		$	4,036