NOTE E - Warranty Costs
CAD’s Cross-branded writing instruments are sold with a full warranty of unlimited duration against mechanical failure. CAD's accessories are sold with a one-year warranty against mechanical failure and defects in workmanship and timepieces are warranted for a period of two years. Costa and Native sunglasses are sold with a lifetime warranty against defects in materials and workmanship. Estimated warranty costs are accrued at the time of sale. The most significant factors in the estimation of warranty cost liabilities include the operating efficiency and related cost of the service department, unit sales and the number of units that are eventually returned for warranty repair. The current portion of accrued warranty costs was $0.5 million at September 29, 2012 and December 31, 2011, and was recorded in accounts payable, accrued expenses and other liabilities. The following chart reflects the activity in aggregate accrued warranty costs:


(THOUSANDS OF DOLLARS)	THREE MONTHS ENDED				NINE MONTHS ENDED
	SEPTEMBER 29,		OCTOBER 1,		SEPTEMBER 29,		OCTOBER 1,
	2012		2011		2012		2011
Accrued Warranty Costs - Beginning of Period	$	1,887	$	1,862	$	1,892	$	1,998
Warranty costs paid		(67)		(432)		(205)		(572)
Warranty costs accrued		28		588		161		818
Impact of changes in estimates and assumptions		-		-		-		(226)
Accrued Warranty Costs - End of Period	$	1,848	$	2,018	$	1,848	$	2,018