ZBRA » Topics » Note 12-Warranty

This excerpt taken from the ZBRA 10-Q filed Nov 8, 2006.

Note 12—Warranty

Zebra provides warranty coverage of up to one year on printers against defects in material and workmanship. A provision for warranty expense is recorded at the time of shipment and adjusted quarterly based on historical warranty experience. The following is a summary of Zebra’s accrued warranty obligation.

 

     Nine Months Ended
September 30, 2006
    Nine Months Ended
October 1, 2005
 

Balance at the beginning of the year

   $ 1,922     $ 1,691  

Warranty expense year-to-date

     3,876       4,417  

Warranty payments made year-to-date

     (3,773 )     (4,167 )
                

Balance at the end of the period

   $ 2,025     $ 1,941  
                

During the third quarter of 2005, Zebra began providing for environmental recycling reserves similar to warranty reserves. In the European Union, we have an obligation in the future to recycle printers. This reserve is based on all new printers sold after August 13, 2005, and printers sold prior to that date that are returned to us upon our sale of a new printer to a customer. The following is a summary of Zebra’s accrued recycling obligation.

 

     Nine Months Ended
September 30, 2006
   Nine Months Ended
October 1, 2005

Balance at the beginning of the year

   $ 632    $ —  

Recycling expense year-to-date

     1,005      318

Recycling payments made year-to-date

     —        —  

Exchange rate impact

     23      —  
             

Balance at the end of the period

   $ 1,660    $ 318
             
This excerpt taken from the ZBRA 10-Q filed Aug 4, 2005.
Note 13—Warranty. Zebra provides warranty coverage of up to one year on printers against defects in material and workmanship. A provision for warranty expense is recorded at the time of shipment and adjusted quarterly based on historical warranty experience. The following is a summary of Zebra’s accrued warranty obligation.

 

Warranty Reserve (in thousands)

 

Six Months Ended
July 2, 2005

 

Six Months Ended
July 3, 2004

 

Balance at beginning of period

 

$

1,691

 

$

1,351

 

Warranty expense during the period

 

3,184

 

1,804

 

Warranty payments made during the period

 

(2,077

)

(1,627

)

Balance at end of the period

 

$

2,798

 

$

1,528

 

 

16



 

This excerpt taken from the ZBRA 10-Q filed May 6, 2005.
Warranty. Zebra provides warranty coverage of up to one year on printers against defects in material and workmanship. A provision for warranty expense is recorded at the time of shipment and adjusted quarterly based on historical warranty experience. The following is a summary of Zebra’s accrued warranty obligation.

 

 

 

April 2, 2005

 

April 3, 2004

 

Accrued warranty — beginning balance

 

$

1,691

 

$

1,351

 

Add: warranty expense

 

2,262

 

956

 

Deduct: warranty payments

 

1,018

 

856

 

Accrued warranty — ending balance

 

$

2,935

 

$

1,451

 

 

During an internal product review, we discovered a discrepancy in the specifications of a product. As a result, we recorded an additional reserve of $1,138,000 for the estimated cost to correct this issue.

 

 

15



 

Warranty. Zebra provides warranty coverage of up to one year on printers against defects in material and workmanship. A provision for warranty expense is recorded at the time of shipment and adjusted quarterly based on historical warranty experience. The following is a summary of Zebra’s accrued warranty obligation during the years ended December 31, 2004 and 2003.

 

 

 

2004

 

2003

 

2002

 

Accrued warranty – beginning balance

 

$

1,351

 

$

1,090

 

$

1,021

 

Add:  warranty expense

 

3,209

 

3,095

 

2,564

 

Deduct:  warranty payments

 

2,869

 

2,834

 

2,495

 

Accrued warranty – ending balance

 

$

1,691

 

$

1,351

 

$

1,090

 

 

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