Product Warranties

12 Months Ended

Dec. 30, 2011

9. 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 for periods ranging from 90 days 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. The decline in accruals for product warranties during 2010 represents a lower cost per unit of repair, lower anticipated rates of warranty claims and lower out of the ordinary warranty claims. 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:


	12/30/11			12/31/10			1/1/10
Balance—beginning of year	$	19.4		$	31.4		$	39.3
Accruals for product warranties		7.8			6.1			12.1
Settlements		(4.6	)		(4.6	)		(7.6	)
Other adjustments to accruals for product warranties		(5.6	)		(13.5	)		(12.4	)

Balance—end of year	$	17.0		$	19.4		$	31.4


Balance sheet classification at end of year
Other accrued liabilities	$	7.9	$	7.5	$	13.7
Other long-term liabilities		9.1		11.9		17.7

Total product warranty liabilities	$	17.0	$	19.4	$	31.4