Note 6 - Contingencies

6 Months Ended

Jun. 30, 2017

Notes to Financial Statements

Contingencies Disclosure [Text Block]

NOTE

6

–CONTINGENCIES

Accrued Warranty

We provide for the estimated costs of hardware warranties at the time the related revenue is recognized. We estimate the costs based on historical and projected product failure rates, historical and projected repair costs, and knowledge of specific product failures (if any). The specific hardware warranty terms and conditions for tape libraries generally include parts and labor over a

three

-year period. The warranty for power supplies is generally

three

years. We regularly re-evaluate our estimates to assess the adequacy of the recorded warranty liabilities and adjust the amounts as necessary.

Activity in the liability for product warranty, which is included in other accrued liabilities in the condensed consolidated balance sheets for the periods presented, is as follows (in thousands):

	Six Months Ended June 30, 2017			Year Ended December 31, 201 6
	(unaudited)
Beginning balance	$	236		$	187
Cost of warranty claims		(26	)		(157	)
Accruals for product warranties		34			206
Ending balance	$	244		$	236