Other Accrued Expenses

3 Months Ended

Sep. 25, 2011

8. Other Accrued Expenses

Other accrued expenses were comprised of the following as of (in thousands):

	September 25, 2011		June 26, 2011
Sales returns	$	37,217	$	34,112
Accrued accounting and legal costs		11,320		9,943
Deferred revenue		16,383		16,329
Accrued employee benefits		4,088		3,733
Accrued warranty		3,446		3,457
Accrued utilities		2,501		1,840
Accrued repurchase obligation		2,743		3,099
Accrued sales and other taxes		4,162		2,829
Accrued enterprise resource planning system costs		6,321		8,110
Severance liability		155		214
Other		12,438		13,736
Total other accrued expenses	$	100,774	$	97,402

Warranty

The Company records warranty liabilities at the time of sale for the estimated costs that may be incurred under the terms of its warranty agreements. The specific warranty terms and conditions vary depending upon the product sold and the country in which the Company does business. In general, for standard products, the Company will replace defective parts not meeting the Company’s published specifications at no cost to the customers. Factors that affect the liability include historical and anticipated failure rates of products sold, and cost per claim to satisfy the warranty obligation. If actual results differ from the estimates, the Company revises its estimated warranty liability to reflect such changes.

The following table details the changes in the Company’s warranty reserve for the three months ended September 25, 2011, which is included in other accrued expenses (in thousands):

Accrued warranty, June 26, 2011	$	3,457
Accruals for warranties issued during the period		1,085
Changes in estimates related to pre-existing warranties		575
Warranty claim settlements		(1,671	)
Accrued warranty, September 25, 2011	$	3,446