Product Warranties

9 Months Ended

Oct. 02, 2021

Product Warranties Disclosures [Abstract]

Product Warranties

Product Warranties

The Corporation issues certain warranty policies on its workplace furnishings and residential building products that provide for repair or replacement of any covered product or component that fails during normal use because of a defect in design, materials, or workmanship. Allowances have been established for the anticipated future costs associated with the Corporation's warranty programs.

A warranty allowance is determined by recording a specific allowance for known warranty issues and an additional allowance for unknown claims expected to be incurred based on historical claims experience.  Actual costs incurred could differ from the original estimates, requiring adjustments to the allowance.  Activity associated with warranty obligations was as follows (in thousands):

	Nine Months Ended
	October 2, 2021		September 26, 2020
Balance at beginning of period	$	16,109	$	15,865
Accruals for warranties issued during period	6,580		5,483
Adjustments related to pre-existing warranties	—		(272)
Settlements made during the period	(5,411)		(6,013)
Balance at end of period	$	17,278	$	15,063

The current and long-term portions of the allowance for estimated settlements are included within "Accounts payable and accrued expenses" and "Other Long-Term Liabilities", respectively, in the Condensed Consolidated Balance Sheets. The following table summarizes when these estimated settlements are expected to be paid (in thousands):

	October 2, 2021		January 2, 2021
Current - in the next twelve months	$	6,080	$	5,918
Long-term - beyond one year	11,198		10,191
Total	$	17,278	$	16,109