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Current Liabilities
 9 Months Ended
Sep. 28, 2013
Accounts Payable and Accrued Liabilities, Current [Abstract]  
Current Liabilities
Current Liabilities

Deferred Services Income

A portion of our revenue is generated from service contracts. Payments from certain of these service contracts are collected in advance. As such, revenues from these service contracts are deferred and recognized ratably over the contract period for time-based service contracts, or as service hours are delivered for contracts based on a purchased quantity of hours.

Changes in our deferred service revenue for the three and nine month periods ended September 28, 2013 and September 29, 2012 were as follows:
 
 
Three Months Ended
 
Nine Months Ended
(In thousands)
September 28,
2013
 
September 29,
2012
 
September 28,
2013
 
September 29,
2012
Balance, beginning of the period
$
7,398

 
$
5,602

 
$
6,062

 
$
4,991

Additions
508

 
1,478

 
4,784

 
5,332

Revenue recognized
(1,089
)
 
(1,153
)
 
(4,029
)
 
(4,396
)
Balance, end of the period
$
6,817

 
$
5,927

 
$
6,817

 
$
5,927

Balance sheets classification
 
 
 
 
 
 
 
Deferred service income-short term
$
5,362

 
$
4,636

 
 
 
 
Deferred service income-long term
1,455

 
1,291

 
 
 
 
Balance, end of period
$
6,817

 
$
5,927

 
 
 
 


Other current liabilities

Other current liabilities consisted of the following at September 28, 2013 and December 31, 2012: 
(In thousands)
September 28,
2013
 
December 31,
2012
Salaries and benefits
$
7,903

 
$
10,359

Warranty accrual
1,449

 
2,273

Advanced billings
2,349

 
29

Accrued taxes-other
359

 
—

Capital lease, current portion
—

 
15

Other
1,748

 
2,184

Balance, end of the period
$
13,808

 
$
14,860



Warranty Accrual

We generally warrant our new and refurbished products for material and labor to repair the product for periods of twelve months and three months, respectively, from the date of system acceptance. Accordingly, an accrual for the estimated cost of the warranty is recorded at the time the product is shipped. Extended warranty terms, if granted, result in deferral of revenue equating to our standard pricing for similar service contracts. Recognition of the related warranty cost is deferred until product revenue is recognized. Factors that affect our warranty liability include the number of installed units, historical and anticipated rates of warranty claims and cost per claim. We periodically assess the adequacy of our recorded warranty liabilities and adjust the amounts as necessary. We believe our warranty accrual as of September 28, 2013 is sufficient to satisfy our outstanding obligations as of that date.

Changes in our warranty accrual for the three and nine month periods ended September 28, 2013 and September 29, 2012 were as follows:
 
 
Three Months Ended
 
Nine Months Ended
(In thousands)
September 28,
2013
 
September 29,
2012
 
September 28,
2013
 
September 29,
2012
Balance, beginning of the period
$
1,873

 
$
2,795

 
$
2,273

 
$
2,398

Liabilities accrued for warranties issued
160

 
730

 
1,140

 
2,797

Warranty claims paid and utilized
(608
)
 
(793
)
 
(1,935
)
 
(2,075
)
Changes in accrued warranty liabilities
24

 
53

 
(29
)
 
(335
)
Balance, end of the period
$
1,449

 
$
2,785

 
$
1,449

 
$
2,785



Advanced Billings

On occasion, we require, or our customers pay, a deposit in advance of order shipment. These amounts are classified as advanced billings until the related order ships. The balance of $2.3 million of advanced billings was from multiple customers as of September 28, 2013. There was an insignificant amount of advance payments received as of December 31, 2012.