Product Warranties

12 Months Ended

Dec. 31, 2016

14)

Product Warranties

The Company provides for the estimated costs to fulfill customer warranty obligations upon the recognition of the related revenue. While the Company engages in extensive product quality programs and processes, including actively monitoring and evaluating the quality of its component suppliers, the Company’s warranty obligation is affected by shipment volume, product failure rates, utilization levels, material usage and supplier warranties on parts delivered to the Company. Should actual product failure rates, utilization levels, material usage, or supplier warranties on parts differ from the Company’s estimates, revisions to the estimated warranty liability would be required. The product warranty liability is included in other current liabilities in the consolidated balance sheets.

Product warranty activities were as follows:


	Years Ended December 31,
	2016			2015
Beginning balance	$	5,205		$	6,266
Product warranty liability from Newport Merger		3,040			—
Provisions for product warranties		8,858			4,343
Direct charges to warranty liability		(8,685	)		(5,296	)
Foreign currency translation		(157	)		(108	)

Ending balance	$	8,261		$	5,205