Most of our manufactured products are sold with warranties. Warranty periods, which vary by product components, generally range from 1 to 10 years; however, the warranty period for a limited number of specifically identified components in certain applications is a lifetime. The majority of the products sold have warranties on components which range from 1 to 3 years. The amount charged to expense for warranties is based on management’s assessment of the cost per service call and the number of service calls expected to be incurred to satisfy warranty obligations on the current net sales.

During the three months ended July 2, 2022, we recorded warranty expense at a rate of approximately 1.7% of sales, which was slightly lower than the rate during the three months ended July 3, 2021 of 1.9% of sales. Our warranty expense rate in the three months ended July 2, 2022 is a result of a decrease in the use of higher-cost contract labor we had used in the first quarter of 2022 to respond to warranty claims due to a currently tight labor market, whereas in the three months ended July 3, 2021, the wind-down of certain commercial business in the first quarter of 2021 resulted in warranty costs higher than those we would incur in the normal course of business.

During the six months ended July 2, 2022, we recorded warranty expense at a rate of approximately 2.1% of sales, which was about level with the six months ended July 3, 2021 of 2.2% of sales. Our warranty expense rate in the six months ended July 2, 2022 is a result of an increase in the use of higher-cost contract labor during the first quarter of 2022 to respond to warranty claims due to a currently tight labor market, whereas in the six months ended July 3, 2021, the wind-down of certain commercial business in the first quarter of 2021 resulted in warranty costs higher than those we would incur in the normal course of business.

The following table summarizes current period charges, adjustments to previous estimates, as well as settlements, which represent actual costs incurred during the period for the three and six months ended July 2, 2022 and July 3, 2021. The reserve is determined through specific identification and assessing our history. Of the accrued warranty reserve of $16.2 million at July 2, 2022, $13.8 million is classified within accrued expenses as current liabilities on the condensed consolidated balance sheet at July 2, 2022, with the remainder classified within other liabilities as non-current liabilities. Of the accrued warranty reserve of $13.5 million at January 1, 2022, $11.8 million is classified within accrued expenses as current liabilities on the condensed consolidated balance sheet at January 1, 2022, with the remainder classified within other liabilities as non-current liabilities.


	Beginning		Acquisition-		Charged								End of
Accrued Warranty	of Period		Related		to Expense		Adjustments			Settlements			Period
(in thousands)
Three months ended July 2, 2022	$	16,321	$	—	$	6,844	$	(237	)	$	(6,777	)	$	16,151

Three months ended July 3, 2021	$	9,643	$	189	$	5,343	$	(748	)	$	(4,968	)	$	9,459

Six months ended July 2, 2022	$	13,504	$	—	$	15,992	$	513		$	(13,858	)	$	16,151

Six months ended July 3, 2021	$	8,001	$	189	$	12,309	$	(359	)	$	(10,681	)	$	9,459