Commitments and Contingencies Product Warranties The Companys standard manufacturer's warranty period to consumers for TiVo-enabled DVRs is 90 days for parts and labor from the date of consumer purchase, and from 91 - 365 days for parts only. Within the limited warranty period, consumers are offered a no-charge exchange for TiVo-enabled DVRs returned due to product defect, within 90 days from the date of consumer purchase. Thereafter, consumers may exchange a TiVo-enabled DVR with a product defect for a variable charge. The Company also offers a warranty through its Continual Care program which extends the one-year warranty for parts only to customers who use the latest BOLT and Roamio DVRs for as long as such customers maintain an active TiVo service subscription. The Company recognizes costs associated with the Continual Care warranties at the time of the DVR sale. As of December31, 2016 , the accrued warranty was $0.5 million and is included in Accounts payable and accrued expenses in the Consolidated Balance Sheets . Customers who purchase a TiVo service subscription for the lifetime of the DVR are able to purchase separately priced optional two -year and three -year extended warranties. The Company defers and amortizes revenue and costs associated with the sales of these extended warranties over the warranty period or until a warranty is redeemed. Additionally, the Company offers its MSO customers separately priced optional three -year extended warranties. The Company recognizes the revenues associated with the sale of these MSO extended warranties over the second and third year of the warranty period. As of December31, 2016 , the extended warranty deferred revenue and deferred cost were $2.0 million and $0.2 million , respectively. The Companys extended warranty deferred revenue is included in Deferred revenue and extended warranty deferred costs are included in Other Assets in the Consolidated Balance Sheets . Purchase Commitments In August 2016, Rovi entered into a 10 -year patent license agreement wi