Operations and Significant Accounting Policies (Policies)

9 Months Ended

Oct. 01, 2011

Operations and Significant Accounting Policies

Revenue Recognition and Product Warranty

We recognize revenue from product sales to customers and distributors when evidence of an arrangement exists, and title has passed (generally upon shipment) or services have been rendered, the selling price (including pricing discounts) has been fixed or has become determinable, collectability is reasonably assured and there are no further obligations to customers or distributors.

The majority of our products are covered by up to a one-year limited manufacturer’s warranty. Estimated contractual warranty obligations are recorded when related sales are recognized and any additional amounts are recorded when such costs are probable, can be reasonably estimated and are included in “Cost of product sales.” The change in accrued warranty expense from continuing operations is summarized in the following table:

	Three Months Ended						Nine Months Ended
	October 1,2011			October 2,2010			October 1,2011			October 2,2010
	(in thousands)
Balance at beginning of period	$	2,993		$	1,747		$	3,057		$	1,706
Accruals for warranties issued	514			2,765			1,968			4,696
Settlements made	(613		)	(1,395		)	(2,131		)	(3,285		)
Balance at end of period	$	2,894		$	3,117		$	2,894		$	3,117