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Unformatted text preview: estimate. cost related to outstanding stock options and RSUs was $2.6 billion, which the Company expects to recognize
over a weighted-average period of 3.7 years. Contingent Liabilities Note 7 – Commitments and Contingencies
Accrued Warranty and Indemnification The Company offers a basic limited parts and labor warranty on its hardware products. The basic warranty period
for hardware products is typically one year from the date of purchase by the end-user. The Company also offers a
90-day basic warranty for its service parts used to repair the Company’s hardware products. The Company
provides currently for the estimated cost that may be incurred under its basic limited product warranties at the
time related revenue is recognized. Factors considered in determining appropriate accruals for product warranty
obligations include the size of the installed base of products subject to warranty protection, historical and
projected warranty claim rates, historical and projected cost-per-claim, and knowledge of specific product
failures that are outside of the Company’s typical experience. The Company assesses the adequacy of its
pre-existing warranty liabilities and adjusts the amounts as necessary based on actual experience and changes in
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This note was uploaded on 02/17/2014 for the course ACCTG 215 taught by Professor Wells during the Spring '08 term at University of Washington.
- Spring '08