Warranty Obligations

6 Months Ended

Apr. 02, 2016

NOTE 4WARRANTY OBLIGATIONS

Sales of our products and systems are subject to limited warranty obligations that are included in customer contracts. For sales that include installation services, warranty obligations generally extend for a period of twelve months from the date of either shipment or acceptance based on the contract terms. Product obligations generally extend for a period of twelve months from the date of purchase. Under the terms of these warranties, we are obligated to repair or replace any components or assemblies deemed defective due to workmanship or materials. We reserve the right to reject warranty claims where it is determined that failure is due to normal wear, customer modifications, improper maintenance or misuse. We record general warranty provisions based on an estimated warranty expense percentage applied to current period revenue. The percentage applied reflects our 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. Warranty provisions are also recognized for certain unanticipated product claims that are individually significant.

Warranty provisions and claims were as follows:


	Three Months Ended				Six Months Ended
		April 2,		March 28,		April 2,		March 28,
(in thousands)		2016		2015		2016		2015
Beginning balance	$	4,302	$	5,188	$	4,695	$	4,286
Warranty claims		(1,246)		(1,039)		(2,681)		(2,535)
Warranty provisions		1,811		1,145		2,856		3,280
Adjustments to preexisting warranties		-		63		-		342
Currency translation		5		(32)		2		(48)
Ending balance	$	4,872	$	5,325	$	4,872	$	5,325