The Company offers its customers warranties on products sold based on product type and application. In general, these standard warranties range from two to ten years. The Company reviews its warranty liability quarterly. The Company's estimate for product warranties is based on an analysis of actual expenses by specific product line and estimated future costs related to warranty. Factors taken into consideration when evaluating the Company's warranty reserve are (i) historical claims for each product, (ii) the development stage of the product, (iii) volume increases, (iv) life of warranty, and (v) other factors. To the extent actual experience differs from the Company's estimate, the provision for product warranties will be adjusted in future periods.

A tabular presentation of the activity within the warranty accrual account for the nine months ended September 30, 2012 and October 2, 2011 is presented below, in millions:

	September 30, 2012			October 2, 2011

Beginning balance	$	31.4		$	21.4
Charges and costs accrued		27.7			14.2
Adjustments related to pre-existing warranties (including changes in estimates)		4.6			0.5
Less repair costs incurred		(15.4	)		(5.4	)
Change due to foreign currency		(0.2	)		(0.4	)

Ending balance	$	48.1		$	30.3

The increase in accrued warranties and repair costs from October 2, 2011 to September 30, 2012 is primarily due to the sales mix of increased commercial inverter sales that have higher repair costs and longer warranties. As of September 30, 2012 and January 1, 2012, $31.0 million and $21.8 million of the accrued warranties were included in Warranties, less Current Portion in the consolidated condensed balance sheets.

The Company offers its renewable energy customers extended warranty contracts with terms between five and ten years after the base warranty period expires and accounts for such warranty contracts in accordance with ASC 605-20-25. Deferred revenue related to such extended warranty contracts was $24.0 million and $18.9 million, as of September 30, 2012 and January 1, 2012, respectively, and was included as part of deferred revenue in the consolidated condensed balance sheets.