I spent some time digging into this after being told that a ward would need to go without a copier for several months because there was no budget to replace the copier which had gone out of warranty and no longer functioned.
One other note about the warranty is that the Church contracts do not allow a copier that is out-of-warranty to be repaired.
Typically, through the policy definitions, as the Copier Administration put it to me, FM purchases a new copier with an extended warranty for a total of 3 years, and succeeding years after 3, they budget and purchase additional 1 year warranties for 2 additional years. In the 5th year they budget to have a replacement copier.
However, in practice, I've not known an FM group (I deal with 2 of them now) to put this into practice. Each year, both of my FM groups 'hope and pray' that a copier doesn't go bad, and if it does, it comes out of limited funds and generally means something else doesn't get done. I am sitting on 6 copiers in my stake in their 7th year and as we brought it up this year to schedule replacements, we were told they were used until they no longer functioned.
“A long habit of not thinking a thing wrong, gives it a superficial appearance of being right, and raises at first a formidable outcry in defense of custom.”
― Thomas Paine, Common Sense