PERKINELMER INC | 2013 | FY | 3

Warranty Reserves

The Company provides warranty protection for certain products usually for a period of one year beyond the date of sale. The majority of costs associated with warranty obligations include the replacement of parts and the time for service personnel to respond to repair and replacement requests. A warranty reserve is recorded based upon historical results, supplemented by management’s expectations of future costs. Warranty reserves are included in “Accrued expenses and other current liabilities” on the consolidated balance sheets.

A summary of warranty reserve activity for the fiscal years ended December 29, 2013, December 30, 2012 and January 1, 2012 is as follows:
 
 
(In thousands)
Balance at January 2, 2011
$
8,250

Provision charged to income
15,001

Payments
(15,154
)
Adjustments to previously provided warranties, net
926

Foreign currency translation and acquisitions
1,389

Balance at January 1, 2012
10,412

Provision charged to income
17,750

Payments
(18,022
)
Adjustments to previously provided warranties, net
801

Foreign currency translation and acquisitions
62

Balance at December 30, 2012
11,003

Provision charged to income
17,291

Payments
(17,116
)
Adjustments to previously provided warranties, net
(693
)
Foreign currency translation and acquisitions
49

Balance at December 29, 2013
$
10,534

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