Warranty Obligations

6 Months Ended

Jun. 30, 2011

Warranty Obligations

Warranty Obligations

6. Warranty Obligations

Caliper provides for estimated warranty expenses as a component of cost of revenue at the time product revenue is recognized.  Caliper offers a one-year limited warranty on most products, which is included in the selling price. Caliper’s standard limited warranty covers repair or replacement of defective goods, a preventative maintenance visit on certain products, and telephone-based technical support. Factors that affect Caliper’s warranty liability include the number of installed units, historical and anticipated rates of warranty claims, and cost per claim. Caliper periodically assesses the adequacy of its recorded warranty liabilities and adjusts amounts as necessary.

Changes in Caliper’s warranty obligation are as follows (in thousands):

	Six Months Ended June 30,
	2011			2010
Balance at beginning of period	$	1,416		$	1,557
Warranties issued during the period	1,422			964
Settlements and adjustments made during the period	(1,279		)	(1,225		)
Balance at end of period	$	1,559		$	1,296