Warranty

3 Months Ended

Mar. 28, 2020

Intevac provides for the estimated cost of warranty when revenue is recognized. Intevac’s warranty is subject to contract terms and, for its HDD manufacturing, DCP manufacturing and solar cell manufacturing systems, the warranty typically ranges between 12 and 24 months from customer acceptance. During this warranty period any defective

non-consumable

parts are replaced and installed at no charge to the customer. Intevac uses estimated repair or replacement costs along with its historical warranty experience to determine its warranty obligation. The provision for the estimated future costs of warranty is based upon historical cost and product performance experience. Intevac exercises judgment in determining the underlying estimates.

On the condensed consolidated balance sheets, the short-term portion of the warranty provision is included in other accrued liabilities, while the long-term portion is included in other long-term liabilities. The expense associated with product warranties issued or adjusted is included in cost of net revenues on the condensed consolidated statements of operations.

The following table displays the activity in the warranty provision account for the three-month periods ended March 28, 2020 and March 30, 2019.


	Three Months Ended
	March 28, 2020			March 30, 2019
	(In thousands)
Opening balance	$	1,022		$	997
Expenditures incurred under warranties		(120	)		(167	)
Accruals for product warranties issued during the reporting period		25			324
Adjustments to previously existing warranty accruals		(202	)		143

Closing balance	$	725		$	1,297

The following table displays the balance sheet classification of the warranty provision account at March

, 20

and at December 28, 2019.


	March 28 ,		December 28,
	2020		2019
	(In thousands)
Other accrued liabilities	$	582	$	846
Other long-term liabilities		143		176

Total warranty provision	$	725	$	1,022