Warranty Obligations

9 Months Ended

Jun. 27, 2015

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 nine months ended June 27, 2015 and June 28, 2014 were as follows:



	Three Months Ended				Nine Months Ended
		June 27,		June 28,		June 27,		June 28,
		2015		2014		2015		2014
	(in thousands)
Beginning balance	$	5,325	$	5,120	$	4,286	$	4,694
Warranty provisions		1,323		1,335		4,603		5,299
Warranty claims		(1,976)		(1,672)		(4,511)		(5,065)
Adjustments to preexisting warranties		108		382		450		220
Currency translation		12		(1)		(36)		16
Ending balance	$	4,792	$	5,164	$	4,792	$	5,164