Product Warranties

6 Months Ended

Jun. 30, 2017

Guarantees and Product Warranties [Abstract]

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.

Product warranty activities were as follows:


	Six Months Ended June 30,
	2017			2016
Beginning of period	$	8,261		$	5,205
Assumed product warranty liability from Newport Merger		—			3,040
Provision for product warranties		7,555			2,991
Direct charges to warranty liability		(6,210	)		(3,202	)
Foreign currency translation		126			8

End of period⁽¹⁾	$	9,732		$	8,042

⁽¹⁾	Short-term product warranty of $9,293 and long-term product warranty of $439 as of June 30, 2017, are included within other current liabilities and other liabilities, respectively, within the accompanying condensed consolidated balance sheet.