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Product Warranties
6 Months Ended
Jun. 30, 2013
Product Warranties Disclosures [Abstract]  
Product Warranties
Product Warranties
Our standard warranty provides that if our systems do not function to published specifications, we will repair or replace the defective component or system without charge generally for a period of three years. We generally extend to our customers the warranties provided to us by our suppliers, and accordingly, the majority of our warranty obligations to customers are intended to be covered by corresponding supplier warranties. For warranty costs not covered by our suppliers, we provide for estimated warranty costs in the period the revenue is recognized. Estimated liabilities for product warranties are included in accrued expenses.
Our warranty accrual and cost activity is as follows (in thousands):
 
Three Months Ended
 
Six Months Ended
 
June 30,
 
June 30,
 
2012
 
2013
 
2012
 
2013
Balance, beginning of period
$
6,930

 
$
2,743

 
$
6,871

 
$
4,455

Charges to operations
106

 
372

 
474

 
490

Deductions for payments made
(2,199
)
 
(145
)
 
(2,508
)
 
(1,166
)
Changes in estimates
(58
)
 
(287
)
 
(58
)
 
(1,096
)
Balance, end of period
$
4,779

 
$
2,683

 
$
4,779

 
$
2,683


During the first quarter of 2013, we were able to negotiate more favorable rates with a third-party service provider. Accordingly, we adjusted our warranty accrual by $0.8 million to reflect this change.