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Warranty Obligations
6 Months Ended
Mar. 28, 2015
Warranty Obligations [Abstract]  
Warranty Obligations

4. Warranty Obligations

 

Sales of the Company’s products and systems are subject to limited warranty obligations that are included in customer contracts. For sales that include installation services, warranty obligations typically extend for a period of twelve to twenty-four months from the date of either shipment or acceptance. Product obligations typically extend for a period of twelve to twenty-four months from the date of purchase. Under the terms of these warranties, the Company is obligated to repair or replace any components or assemblies it deems defective due to workmanship or materials. The Company reserves the right to reject warranty claims where it determines that failure is due to normal wear, customer modifications, improper maintenance, or misuse. The Company records general warranty provisions based on an estimated warranty expense percentage applied to current period revenue. The percentage applied reflects historical warranty claims experience over the preceding twelve-month period. Both the experience percentage and the warranty liability are evaluated on an ongoing basis for adequacy. In addition, warranty provisions are also recognized for certain nonrecurring product claims that are individually significant. Warranty provisions and claims for the three and six months ended March 28, 2015 and March 29, 2014 were as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Six Months Ended

 

 

March 28,

 

 

March 29,

 

 

March 28,

 

 

March 29,

 

 

2015

 

 

2014

 

 

2015

 

 

2014

 

(in thousands)

Beginning balance

$

5,188 

 

$

5,308 

 

$

4,286 

 

$

4,694 

Warranty provisions

 

1,145 

 

 

1,801 

 

 

3,280 

 

 

3,964 

Warranty claims

 

(1,039)

 

 

(1,826)

 

 

(2,535)

 

 

(3,393)

Adjustments to preexisting warranties

 

63 

 

 

(162)

 

 

342 

 

 

(162)

Currency translation

 

(32)

 

 

(1)

 

 

(48)

 

 

17 

Ending balance

$

5,325 

 

$

5,120 

 

$

5,325 

 

$

5,120