Quarterly report pursuant to Section 13 or 15(d)

Product Warranties (Notes)

v3.6.0.2
Product Warranties (Notes)
 9 Months Ended
Dec. 31, 2016
Product Warranties Disclosures [Abstract]  
Product Warranties
Product Warranties
The Company’s products carry a limited warranty ranging from one to five years for the products within the IBW segment, typically one year for products within the ISMS segment, and one to seven years for products within the CNS segment. The specific terms and conditions of those warranties vary depending upon the customer and the products sold. Factors that affect the estimate of the Company’s warranty reserve include: the number of units shipped, anticipated rates of warranty claims, and cost per claim. The Company periodically assesses the adequacy of its recorded warranty liability and adjusts the reserve as necessary. The current portions of the warranty reserve are $228,000 and $229,000 as of December 31, 2016, and March 31, 2016, respectively, and are presented on the Condensed Consolidated Balance Sheets in Accrued expenses. The non-current portions of the warranty reserves are $242,000 and $207,000 as of December 31, 2016, and March 31, 2016, respectively, and are presented on the Condensed Consolidated Balance Sheets in Other non-current liabilities.
The following table presents the changes in the Company’s product warranty reserve:
 
Three months ended December 31,
 
Nine months ended December 31,
(in thousands)
2016
 
2015
 
2016
 
2015
Total product warranty reserve at the beginning of the period
$
460

 
$
520

 
$
436

 
$
505

Warranty expense to cost of revenue
12

 
75

 
80

 
229

Utilization
(2
)
 
(23
)
 
(46
)
 
(162
)
Total product warranty reserve at the end of the period
$
470

 
$
572

 
$
470

 
$
572