MDT » Topics » Note 7 - Warranty Obligation

This excerpt taken from the MDT 10-Q filed Mar 4, 2009.

Note 11 – Warranty Obligation

The Company offers a warranty on various products. The Company estimates the costs that may be incurred under its warranties and records a liability in the amount of such costs at the time the product is sold. Factors that affect the Company’s warranty liability include the number of units sold, historical and anticipated rates of warranty claims and cost per claim. The Company periodically assesses the adequacy of its recorded warranty liabilities and adjusts the amounts as necessary. The amount of the reserve recorded is equal to the costs to repair or otherwise satisfy the claim.

Changes in the Company’s product warranties during the nine months ended January 23, 2009 and January 25, 2008 consist of the following:

 

 

 

 

 

 

 

 

 

 

Nine months ended

 

 

 

January 23,
2009

 

January 25,
2008

 

Balance at the beginning of the period

 

$

43

 

$

34

 

Warranty claims provision

 

 

17

 

 

20

 

Settlements made

 

 

(23

)

 

(16

)

Balance at the end of the period

 

$

37

 

$

38

 

This excerpt taken from the MDT 10-Q filed Dec 3, 2008.

Note 11 – Warranty Obligation

The Company offers a warranty on various products. The Company estimates the costs that may be incurred under its warranties and records a liability in the amount of such costs at the time the product is sold. Factors that affect the Company’s warranty liability include the number of units sold, historical and anticipated rates of warranty claims and cost per claim. The Company periodically assesses the adequacy of its recorded warranty liabilities and adjusts the amounts as necessary. The amount of the reserve recorded is equal to the costs to repair or otherwise satisfy the claim.

Changes in the Company’s product warranties during the six months ended October 24, 2008 and October 26, 2007 consist of the following:

 

 

 

 

 

 

 

 

 

 

Six months ended

 

 

 

 

 

 

 

October 24,
2008

 

October 26,
2007

 

 

 

 

 

 

 

Balance at the beginning of the period

 

$

43

 

$

34

 

Warranty claims provision

 

 

12

 

 

16

 

Settlements made

 

 

(16

)

 

(11

)

 

 

   

 

   

 

Balance at the end of the period

 

$

39

 

$

39

 

 

 

   

 

   

 

17



This excerpt taken from the MDT 10-K filed Jun 24, 2008.
Warranty Obligation   The Company offers a warranty on various products. The Company estimates the costs that may be incurred under its warranties and records a liability in the amount of such costs at the time the product is sold. Factors that affect the Company’s warranty liability include the number of units sold, historical and anticipated rates of warranty claims, and cost per claim. The Company periodically assesses the adequacy of its recorded warranty liabilities and adjusts the amounts as necessary. The amount of the reserve recorded is equal to the costs to repair or otherwise satisfy the claim. The Company includes the covered costs associated with field actions, if any, in warranty expense.

 




39

 


 

Changes in the Company’s product warranty obligations during the years ended April 25, 2008 and April 27, 2007 consisted of the following:

 

Balance April 28, 2006

 

$

41

 

Warranty claims provision

 

 

27

 

Settlements made

 

 

(34

)

 

 

 

 

 

Balance April 27, 2007

 

 

34

 

Warranty claims provision

 

 

22

 

Settlements made

 

 

(13

)

 

 

 

 

 

Balance April 25, 2008

 

$

43

 

 

This excerpt taken from the MDT 10-K filed Jun 25, 2007.
Warranty Obligation   The Company offers a warranty on various products. The Company estimates the costs that may be incurred under its warranties and records a liability in the amount of such costs at the time the product is sold. Factors that affect the Company’s warranty liability include the number of units sold, historical and anticipated rates of warranty claims, and cost per claim. The Company periodically assesses the adequacy of its recorded warranty liabilities and adjusts the amounts as necessary. The amount of the reserve recorded is equal to the costs to repair or otherwise satisfy the claim. The Company includes the covered costs associated with field actions, if any, in warranty expense.

 

43



Table of Contents

Changes in the Company’s product warranty obligations during the years ended April 27, 2007 and April 28, 2006 consisted of the following:

 

Balance April 29, 2005

 

$

43

 

Warranty claims provision

 

 

47

 

Settlements made

 

 

(49

)

 

 

 

 

 

Balance April 28, 2006

 

 

41

 

Warranty claims provision

 

 

27

 

Settlements made

 

 

(34

)

 

 

 

 

 

Balance April 27, 2007

 

$

34

 

 

This excerpt taken from the MDT 10-Q filed Sep 6, 2006.

Note 7 — Warranty Obligation

The Company offers a warranty on various products. The Company estimates the costs that may be incurred under its warranties and records a liability in the amount of such costs at the time the product is sold. Factors that affect the Company’s warranty liability include the number of units sold, historical and anticipated rates of warranty claims and cost per claim. The Company periodically assesses the adequacy of its recorded warranty liabilities and adjusts the amounts as necessary. The amount of the reserve recorded is equal to the costs to repair or otherwise satisfy the claim. The Company includes the covered costs associated with field actions, if any, in warranty expense.

Changes in the Company’s product warranties during the three months ended July 28, 2006 and July 29, 2005 consisted of the following (dollars in millions):

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

 


 

 

 

July 28,
2006

 

July 29,
2005

 

 

 


 


 

Balance at the beginning of the period

 

$

41

 

$

43

 

Warranty claims provision

 

 

6

 

 

18

 

Settlements made

 

 

(11

)

 

(17

)

 

 



 



 

Balance at the end of the period

 

$

36

 

$

44

 

 

 



 



 


13


Table of Contents

This excerpt taken from the MDT 10-Q filed Mar 7, 2006.

Note 8 — Warranty Obligation

The Company offers a warranty on various products. The Company estimates the costs that may be incurred under its warranties and records a liability in the amount of such costs at the time the product is sold. Factors that affect the Company’s warranty liability include the number of units sold, historical and anticipated rates of warranty claims and cost per claim. The Company periodically assesses the adequacy of its recorded warranty liabilities and adjusts the amounts as necessary. The amount of the reserve recorded is equal to the costs to repair or otherwise satisfy the claim. The Company includes the covered costs associated with field actions, if any, in warranty expense.

Changes in the Company’s product warranties during the nine months ended January 27, 2006 and January 28, 2005 consisted of the following (dollars in millions):

Nine Months Ended
January 27,
2006

January 28,
2005

Balance at the beginning of the period     $ 42.9   $ 35.5  
     Warranties issued during the period    42.6    11.6  
     Settlements made during the period    (35.5 )  (18.0 )


Balance at the end of the period     $ 50.0   $ 29.1  




11



This excerpt taken from the MDT 10-Q filed Dec 6, 2005.

Note 8 — Warranty Obligation

The Company offers a warranty on various products. The Company estimates the costs that may be incurred under its warranties and records a liability in the amount of such costs at the time the product is sold. Factors that affect the Company’s warranty liability include the number of units sold, historical and anticipated rates of warranty claims and cost per claim. The Company periodically assesses the adequacy of its recorded warranty liabilities and adjusts the amounts as necessary. The amount of the reserve recorded is equal to the costs to repair or otherwise satisfy the claim.

Changes in the Company’s product warranties during the six months ended October 28, 2005 and October 29, 2004 consisted of the following (dollars in millions):

Six Months Ended

October 28,
2005
October 29,
2004


Balance at the beginning of the period     $ 42.9   $ 35.5  
     Warranties issued during the period    26.7    5.5  
     Settlements made during the period    (26.9 )  (11.3 )


Balance at the end of the period    $ 42.7   $ 29.7  




11



This excerpt taken from the MDT 10-Q filed Sep 1, 2005.

Note 8 — Warranty Obligation

The Company offers a warranty on various products. The Company estimates the costs that may be incurred under its warranties and records a liability in the amount of such costs at the time the product is sold. Factors that affect the Company’s warranty liability include the number of units sold, historical and anticipated rates of warranty claims and cost per claim. The Company periodically assesses the adequacy of its recorded warranty liabilities and adjusts the amounts as necessary. The amount of the reserve recorded is equal to the costs to repair or otherwise satisfy the claim.

Changes in the Company’s product warranties during the three months ended July 29, 2005 and July 30, 2004 consisted of the following (dollars in millions):

  Three Months Ended

July 29,
2005

July 30,
2004

Balance at the beginning of the period     $ 42.9   $ 35.5  
     Warranties issued during the period    17.6    3.5  
     Settlements made during the period    (16.8 )  (5.0 )


Balance at the end of the period     $ 43.7   $ 34.0  




9



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