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ACCRUED WARRANTY
9 Months Ended
Sep. 24, 2011
ACCRUED WARRANTY

9. ACCRUED WARRANTY

The Company warrants its products against defect for 12 months. A provision for estimated future costs and estimated returns for credit relating to warranty is recorded in the period when product is shipped and revenue recognized, and is updated as additional information becomes available. The Company’s estimate of future costs to satisfy warranty obligations is based primarily on historical warranty expense experienced and a provision for potential future product failures. The Company’s accrued warranty was $1.4 million as of September 24, 2011 and $1.3 million as of December 25, 2010. Changes in the accrued warranty for the nine month period ended September 24, 2011 is as follows:

 

     September 24,
2011		  

Beginning Balance

    $ 1,300,000   

Additions

      1,186,000   

Claim and reversals

      (1,106,000 ) 
  

 

 

  

Ending Balance

    $ 1,380,000