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These excerpts taken from the WDC 10-K filed Aug 20, 2008. Product
Warranty Liability
Changes in the warranty accrual for 2008, 2007 and 2006 were as
follows (in millions):
Accrued warranty also includes amounts classified in non-current
liabilities of $24 million at June 27, 2008 and
$17 million at June 29, 2007.
Product Warranty Liability Changes in the warranty accrual for 2008, 2007 and 2006 were as follows (in millions):
Accrued warranty also includes amounts classified in non-current liabilities of $24 million at June 27, 2008 and $17 million at June 29, 2007. This excerpt taken from the WDC 10-K filed Aug 28, 2007. Product
Warranty Liability
The warranty provision considers estimated product failure rates
and trends, estimated repair or replacement costs and estimated
costs for customer compensatory claims related to product
quality issues, if any. Management uses a statistical warranty
tracking model to help estimate and exercise judgment in
determining the underlying estimates. Management reviews the
warranty accrual quarterly for products shipped in prior periods
and which are still under warranty. Any changes in the estimates
underlying the accrual may result in adjustments that impact
current period gross margin and income. Such changes are
generally a result of differences between forecasted and actual
return rate experience and costs to repair. Changes in the
warranty accrual for the years ended June 29, 2007,
June 30, 2006 and July 1, 2005 were as follows (in
millions):
Accrued warranty also includes amounts classified in non-current
liabilities of $17 million at June 29, 2007 and
$18 million at June 30, 2006.
This excerpt taken from the WDC 10-K filed Nov 20, 2006. Product
Warranty Liability
The Company records an accrual for estimated warranty costs when
revenue is recognized. Warranty covers costs of repair or
replacement of the hard drive over the warranty period, which
generally ranges from one to five years. This accrual is based
on estimated future returns within the warranty period and costs
to repair, using factory test data, historical field returns and
current average repair costs by product type. Return rate and
repair cost estimates are reviewed
Table of Contents
WESTERN
DIGITAL CORPORATION
NOTES TO
CONSOLIDATED FINANCIAL
STATEMENTS — (Continued)
quarterly and updated to reflect the impact of current results
on prior expectations. If actual product return trends or costs
to repair returned products demonstrate significant differences
from expectations, a change in the warranty accrual is made.
Changes in the warranty accrual for the years ended
June 30, 2006, July 1, 2005 and July 2, 2004 were
as follows (in millions):
Accrued warranty also includes amounts classified in non-current
liabilities of $17.8 million at June 30, 2006,
$16.7 million at July 1, 2005, and $10.4 million
at July 2, 2004.
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