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ACCRUED WARRANTY
9 Months Ended
Mar. 31, 2015
Product Warranties Disclosures [Abstract]  
ACCRUED WARRANTY
ACCRUED WARRANTY
The Company offers warranties on certain products, generally for a period of one year, and records a liability for the estimated future costs associated with potential warranty claims. The warranty costs are reflected in the Company’s consolidated statement of operations within cost of revenues. The warranties are typically in effect for 12 months from the distributor’s purchase date of the product. The Company’s estimate of future warranty costs is largely based on historical factors including product failure rates, material usage, and service delivery cost incurred in replacing products. In certain circumstances, the Company may have recourse from its contract manufacturers for replacement cost of defective products, which it also factors into its warranty liability assessment.


Warranty obligations, included in other current liabilities, were as follows (in thousands):
 
Nine Months Ended March 31,
 
2015
 
2014
Beginning balance
$
2,850

 
$
2,913

Accruals for warranties issued during the period
3,253

 
3,287

Warranty costs incurred during the period
(2,953
)
 
(3,250
)
 
$
3,150

 
$
2,950