Product Warranty

3 Months Ended

Jul. 01, 2011

Note 7 — Product Warranty

The Company provides limited warranties on its products for periods of up to five years. The Company records a liability for its warranty obligations when products are shipped or they are included in long-term construction contracts based upon an estimate of expected warranty costs. Amounts expected to be incurred within twelve months are classified as a current liability. For mature products, the warranty cost estimates are based on historical experience with the particular product. For newer products that do not have a history of warranty cost, the Company bases its estimates on its experience with the technology involved and the type of failures that may occur. It is possible that the Company’s underlying assumptions will not reflect the actual experience and in that case, future adjustments will be made to the recorded warranty obligation. The following table reflects the change in the Company’s warranty accrual during the three months ended July 1, 2011 and July 2, 2010.


	Three Months Ended
	July 1, 2011			July 2, 2010
	(In thousands)
Balance, beginning of period	$	12,942		$	11,208
Change in liability for warranties issued in period		1,619			2,393
Settlements made (in cash or in kind) during the period		(1,903	)		(1,357	)

Balance, end of period	$	12,658		$	12,244