Current Liabilities

Deferred Services Income

A portion of our revenue is generated from service contracts. Payments from certain of these service contracts are collected in advance. As such, revenues from these service contracts are deferred and recognized ratably over the contract period for time-based service contracts, or as service hours are delivered for contracts based on a purchased quantity of hours.

Changes in our deferred service revenue were as follows:



	Three Months Ended
(In thousands)	April 2, 2016			April 4, 2015
Balance, beginning of the period	$	4,011		$	5,233
Additions	1,179			1,346
Revenue recognized	(1,016		)	(1,330		)
Balance, end of the period	$	4,174		$	5,249
Balance sheets classification
Deferred service income-short term	$	4,174		$	4,730
Deferred service income-long term	—			519
Balance, end of the period	$	4,174		$	5,249

Other current liabilities

Other current liabilities consisted of the following:



(In thousands)	April 2, 2016		December 31, 2015
Salaries and benefits	$	7,979	$	6,417
Warranty accrual	1,670		1,586
Advanced billings	1,360		543
Capital lease, current portion	843		831
Other	2,323		2,769
Balance, end of the period	$	14,175	$	12,146

Warranty Accrual

We generally warrant our new and refurbished products for material and labor to repair the product for periods of twelve months and three months, respectively, from the date of system acceptance. Accordingly, an accrual for the estimated cost of the warranty is recorded at the time the product is shipped. Extended warranty terms, if granted, result in deferral of revenue equating to our standard pricing for similar service contracts. Recognition of the related warranty cost is deferred until product revenue is recognized. Factors that affect our warranty liability include the number of installed units, historical and anticipated rates of warranty claims and cost per claim. We periodically assess the adequacy of our recorded warranty liabilities and adjust the amounts as necessary. We believe our warranty accrual as of April 2, 2016 is sufficient to satisfy our outstanding obligations as of that date.

Changes in our warranty accrual were as follows:



	Three Months Ended
(In thousands)	April 2, 2016			April 4, 2015
Balance, beginning of the period	$	1,586		$	1,501
Liabilities accrued for warranties issued	653			615
Warranty claims paid and utilized	(548		)	(629		)
Changes in accrued warranty liabilities	(21		)	250
Balance, end of the period	$	1,670		$	1,737