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Product Warranties
 6 Months Ended
Jun. 30, 2014
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, system, or firmware 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,
 
2013
 
2014
 
2013
 
2014
Balance, beginning of period
$
2,743

 
$
3,244

 
$
4,455

 
$
2,965

Charges to operations
372

 
412

 
490

 
826

Deductions for payments made
(145
)
 
(175
)
 
(1,166
)
 
(350
)
Changes in estimates
(287
)
 
(118
)
 
(1,096
)
 
(78
)
Balance, end of period
$
2,683

 
$
3,363

 
$
2,683

 
$
3,363



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 in estimate. In addition, the decrease in deductions for payments made during the six months ended June 30, 2013 as compared to the six months ended June 30, 2014 relates to price concessions and rebates based on sales volumes issued in 2013 to a material customer related to a quality issue associated with certain power supply devices.