Nathan~
From what I know (which ain't much, fer sure) is they will normally replace it (under general warranty conditions of course, barring massive abuse, etc) with a comparable model. Sometimes there isn't another model that is similar enough to immediately replace it with, so an alternative could be offered. But, let me say also that you might be surprised at the skill of the repair and warranty department, and maybe the knife doesn't even need replacing after all......They do a bang up job....miracles, really..
Thats all I know..well, thats all I'm willing to divulge at this point, anyway!
*wink
Danelle