Quarterly report pursuant to Section 13 or 15(d)

5. Product Warranty

v3.5.0.2
5. Product Warranty
9 Months Ended
Oct. 01, 2016
Guarantees [Abstract]  
Product Warranty

We provide a warranty for the replacement or repair of certain defective units, which varies based on the product sold.  Our standard warranty policy requires us to repair or replace certain defective units at no cost to our customers. We estimate the costs that may be incurred under our warranty and record an accrual in the amount of such costs at the time we recognize product revenue. Factors that affect our warranty accrual for covered units include the number of units sold, historical and anticipated rates of warranty claims on these units, and the cost of such claims. We periodically assess the adequacy of our recorded warranty accrual and adjust the amounts as necessary.

 

Changes in our warranty accrual are as follows:

 

    Three Months Ended     Nine Months Ended  
    October 1, 2016     October 3, 2015     October 1, 2016     October 3, 2015  
Beginning Balance   $ 33     $ 33     $ 42     $ 30  
Standard accrual based on units sold     4       12       13       31  
Actual costs incurred     (3 )     (4 )     (12 )     (12 )
Periodic accrual adjustments     (4 )     (4 )     (13 )     (12 )
Ending Balance   $ 30     $ 37     $ 30     $ 37