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   &lt;div align="left" style="font-size: 10pt; margin-top: 12pt"&gt;&lt;b&gt;Note 8. Guarantees&lt;/b&gt;
   &lt;/div&gt;
   &lt;div align="left" style="font-size: 10pt; margin-top: 6pt"&gt;&lt;i&gt;Warranty&lt;/i&gt;
   &lt;/div&gt;
   &lt;div align="left" style="font-size: 10pt; margin-top: 6pt"&gt;ARRIS provides warranties of various lengths to customers based on the specific product and the
   terms of individual agreements. The Company provides for the estimated cost of product warranties
   based on historical trends, the embedded base of product in the field, failure rates, and repair
   costs at the time revenue is recognized. Expenses related to product defects and unusual product
   warranty problems are recorded in the period that the problem is identified. While the Company
   engages in extensive product quality programs and processes, including actively monitoring and
   evaluating the quality of its suppliers, the estimated warranty obligation could be affected by
   changes in ongoing product failure rates, material usage and service delivery costs incurred in
   correcting a product failure, as well as specific product failures outside of ARRIS&amp;#8217; baseline
   experience. If actual product failure rates, material usage or service delivery costs differ from
   estimates, revisions (which could be material) would be recorded to the warranty liability.
   &lt;/div&gt;
   &lt;div align="left" style="font-size: 10pt; margin-top: 6pt"&gt;The Company offers extended warranties and support service agreements on certain products. Revenue
   from these agreements is deferred at the time of the sale and recognized on a straight-line basis
   over the contract period. Costs of services performed under these types of contracts are charged
   to expense as incurred, which approximates the timing of the revenue stream.
   &lt;/div&gt;
   &lt;div align="left" style="font-size: 10pt; margin-top: 6pt"&gt;Information regarding the changes in ARRIS&amp;#8217; aggregate product warranty liabilities for the six
   months ended June&amp;#160;30, 2010 was as follows (in thousands):
   &lt;/div&gt;
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   &lt;div style="margin-left:15px; text-indent:-15px"&gt;Balance at December&amp;#160;31, 2009
   &lt;/div&gt;&lt;/td&gt;
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       &lt;td align="right"&gt;7,679&lt;/td&gt;
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   &lt;div style="margin-left:15px; text-indent:-15px"&gt;Accruals related to warranties (including changes in estimates)
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       &lt;td align="right"&gt;1,330&lt;/td&gt;
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   &lt;div style="margin-left:15px; text-indent:-15px"&gt;Balance at June&amp;#160;30, 2010
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       &lt;td align="right"&gt;6,689&lt;/td&gt;
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 -Publisher FASB
 -Name FASB Interpretation (FIN)
 -Number 45
 -Paragraph 14
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