Note 7 - Product Warranties

9 Months Ended

Jul. 02, 2016

Product Warranty Disclosure [Text Block]

. PRODUCT WARRANTIES

We offer warranties of various durations to our customers, depending on the specific product sold. The warranties require us to repair or replace non-performing products during the warranty period at no cost to the customer. At the time revenue is recognized for products covered by warranties, we record a liability for estimated costs that may be incurred under our warranties. The costs are estimated based on historical experience, including any specific warranty problems that have been identified and recovery of secondary warranty cost from component suppliers. The amounts shown below are presented net of any expected cost recovery from suppliers. Although historical warranty costs have been within our expectations, there can be no assurance that future warranty costs will not exceed historical amounts. We regularly evaluate the adequacy of the warranty liability and adjust the balance as necessary.

Changes in our product warranty liability for the nine months ended July 2, 2016 and June 27, 2015 are as follows:

	Nine Months Ended
	July 2, 2016			June 27, 2015
Accrued liability at beginning of period	$	291,980		$	257,860
Increase in reserve		186,090			197,850
Repairs and replacements		(163,025	)		(164,681	)
Accrued liability at end of period	$	315,045		$	291,029