Warranty Costs

In the normal course of business the company issues product warranties for specific product lines and provides for the estimated future warranty cost in the period in which the sale is recorded. The estimate of warranty cost is based on contract terms and historical warranty loss experience that is periodically adjusted for recent actual experience. Because warranty estimates are forecasts that are based on the best available information, actual claims costs may differ from amounts provided. Adjustments to initial obligations for warranties are made as changes in the obligations become reasonably estimable.

A rollforward of the warranty reserve is as follows:



	Six Months Ended
	Jul 2, 2016
	(in thousands)
Balance as of January 2, 2016	$	37,901
Warranty reserve related to acquisitions	—
Warranty expense	22,868
Warranty claims	(23,721		)
Balance as of July 2, 2016	$	37,048