Warranties

The Company’s warranty policy is included in its terms of sale and states that there are no rights of return, and that a refund may be made at Adept’s discretion, and only if there is an identified fault in the product and the customer has complied with Adept’s approved maintenance schedules and procedures, and the product has not been subject to abuse. The Company provides for the estimated cost of product warranties at the time revenue is recognized. While the Company engages in extensive product quality programs and processes, including actively monitoring and evaluating the quality of its components suppliers, the Company’s warranty obligation is affected by product failure rates, material usage and service labor and delivery costs incurred in correcting a product failure. Should actual product failure rates, material usage, service labor or delivery costs differ from the Company’s estimates, revisions to the estimated warranty liability would be required.

Changes in the Company’s warranty liability for the three-month periods ending October 1, 2011 and September 25, 2010 are as follows (in thousands):



	Three Months Ended
(unaudited)	October 1, 2011			September 25, 2010
Balance at beginning of period	$	1,116		$	1,328
Provision for warranties issued	210			(43		)
Warranty claims	(166		)	(243		)
Balance at end of period	$	1,160		$	1,042