Other Accrued Expenses

3 Months Ended

Sep. 23, 2012

8. Other Accrued Expenses

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

	September 23, 2012		June 24, 2012
Sales returns	$	32,014	$	32,185
Accrued accounting and legal costs		10,674		10,192
Deferred revenue		9,047		13,634
Accrued warranty		1,675		2,190
Accrued utilities		2,164		2,625
Accrued repurchase obligation		1,641		3,240
Accrued sales and other taxes		3,025		1,862
Accrued subcontractor costs		2,450		3,386
Accrued rent		4,639		4,381
Other		8,416		9,469
Total other accrued expenses	$	75,745	$	83,164

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 23, 2012, which is included in other accrued expenses (in thousands):

Accrued warranty, June 24, 2012	$	2,190
Accruals for warranties issued during the period		355
Changes in estimates related to pre-existing warranties		(560	)
Warranty claim settlements		(310	)
Accrued warranty, September 23, 2012	$	1,675