• Filing Date: 2017-08-09
  • Form Type: 10-Q
  • Description: Quarterly report
v3.7.0.1
ACCRUED WARRANTY
3 Months Ended
Jun. 30, 2017
Product Warranties Disclosures [Abstract]  
ACCRUED WARRANTY
ACCRUED WARRANTY
The changes in the accrued warranty balance were (in thousands):
 
Three Months Ended
 
June 30, 2017
 
June 30, 2016
Beginning balance
$
3,263

 
$
3,430

Additional warranties issued
1,412

 
1,998

Adjustments for warranties issued in prior fiscal years
(4
)
 
140

Settlements
(1,510
)
 
(2,124
)
Ending balance
$
3,161

 
$
3,444


We warrant our products against certain defects typically for a term of one to three years. A provision for estimated future costs and estimated returns for repair or replacement relating to warranty is recorded when products are shipped and revenue is recognized. Our estimate of future costs to satisfy warranty obligations is primarily based on historical trends and, if believed to be significantly different from historical trends, estimates of future failure rates and future costs of repair. Future costs of repair include materials consumed in the repair, labor and overhead amounts necessary to perform the repair. If we determine in a future period that either actual failure rates or actual costs of repair were to differ from our estimates, we record the impact of those differences in that future period.