Product Warranties

6 Months Ended

Jul. 01, 2011

7. Product Warranties

We provide warranties for all of our products. The specific terms and conditions of those warranties vary depending on the product. We provide a basic limited warranty, including parts and labor, for all products except access products for periods ranging from 90 days to 5 years. The basic limited warranty for access products covers parts and labor for periods ranging from 2 to 6 years.

The estimate of warranty liability involves many factors, including the number of units shipped, historical and anticipated rates of warranty claims, and cost per claim. We periodically assess the adequacy of the recorded warranty liability and adjust the amounts as necessary. Other adjustments to accruals for product warranties represent reductions due to favorable experience to previous estimates.

We classify the portion of warranty liability that we expect to incur in the next 12 months as a current liability. We classify the portion of warranty liability that we expect to incur more than 12 months in the future as a long-term liability. Product warranty liabilities are as follows:


	Second Quarter						Six Months
	7/1/11			7/2/10			7/1/11			7/2/10
Balance – beginning of period	$	21.2		$	28.9		$	19.4		$	31.4
Accruals for product warranties		2.1			1.5			4.9			3.9
Settlements		(1.9	)		(0.7	)		(2.3	)		(2.9	)
Other adjustments to accruals for product warranties		(1.4	)		(2.3	)		(2.0	)		(5.0	)

Balance – end of period	$	20.0		$	27.4		$	20.0		$	27.4


	Balance at 7/1/11		Balance at 7/2/10
Balance sheet classification - end of period
Other accrued liabilities	$	8.7	$	10.5
Other long-term liabilities		11.3		16.9

Total product warranty liabilities	$	20.0	$	27.4