Warranty Obligations

9 Months Ended

Oct. 02, 2011

Warranty Obligations and Contingencies [Abstract]

NOTE 7: Warranty Obligations

The Company warrants its hardware products to be free from defects in material and workmanship for periods primarily ranging from six months to two years from the time of sale based upon the product being purchased and the terms of the customer arrangement. Warranty obligations are evaluated and recorded at the time of sale since it is probable that customers will make claims under warranties related to products that have been sold and the amount of these claims can be reasonably estimated based upon historical costs to fulfill claims. Obligations may also be recorded subsequent to the time of sale whenever specific events or circumstances impacting product quality become known that would not have been taken into account using historical data. Warranty obligations are included in “Accrued expenses” on the Consolidated Balance Sheets.

The changes in the warranty obligations were as follows (in thousands):


Balance as of December 31, 2010	$	1,985
Provisions for warranties issued during the period		1,342
Fulfillment of warranty obligations		(1,236	)
Foreign exchange rate changes		19

Balance as of October 2, 2011	$	2,110