Commitments and Contingencies

6 Months Ended

Jun. 26, 2011

Commitments and Contingencies

Commitments and Contingencies

Note 14. Commitments and Contingencies

(a) Legal Matters

As of June 26, 2011, there have been no material developments in the Company’s legal proceedings since December 26, 2010. For additional information regarding the Company’s legal proceedings, see Item 3, “Legal Proceedings” in the Form 10-K.

From time to time, the Company may become involved in various claims, lawsuits and legal proceedings that arise in the ordinary course of business. However, litigation is subject to inherent uncertainties, and an adverse result in these or other matters may arise from time to time that may harm the Company’s business. The Company is currently not aware of any such legal proceedings or claims that it believes will have, individually or in the aggregate, a material adverse effect on the Company’s business, financial condition, operating results or cash flows.

(b) Warranty

Certain of the Company’s products, product finishes, and services are covered by a warranty to be free from defects in material and workmanship for periods ranging from one to ten years. Optional extended warranty contracts can also be purchased. The Company accrues a warranty liability for estimated costs to provide products, parts or services to repair or replace products in satisfaction of warranty obligations. Warranty revenues related to extended warranty contracts are amortized to income, over the life of the contract, using the straight-line method. Costs under extended warranty contracts are expensed as incurred.

The Company’s estimate of costs to service its warranty obligations is based upon historical experience and expectations of future conditions. To the extent that the Company experiences any changes in warranty claim activity or costs associated with servicing those claims, its warranty liability is adjusted accordingly.

Accrued product warranty and deferred warranty revenue activity is as follows (in millions):

	Six months ended
	June 27, 2010		June 26, 2011
Balance, at beginning of the period	$	0.5	$	1.9
Costs accrued and revenues deferred	—		0.4
Settlements made (in cash or kind) and revenues recognized	—		(0.4		)
Balance, at end of period	0.5		1.9
Less: Current portion	0.4		1.6
Noncurrent accrued product warranty and deferred warranty revenue	$	0.1	$	0.3