Product Warranties

3 Months Ended

Mar. 31, 2017

10)	Product Warranties

The Company records 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:


	Three Months Ended March 31,
	2017			2016
Beginning of period	$	8,261		$	5,205
Provision for product warranties		3,014			783
Direct charges to warranty liability		(2,857	)		(984	)
Foreign currency translation		67			35

End of period	$	8,485		$	5,039