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 October 3, 2020, we recorded warranty expense at a rate of approximately 1.7% of sales, which was on par with the rate in the three months ended September 28, 2019 of 1.8% of sales. During the nine months ended October 3, 2020, we recorded warranty expense at a rate of approximately 1.7% of sales, which was also on par with the rate in the nine months ended September 28, 2019 of 1.7% of sales.

The following table summarizes current period charges, adjustments to previous estimates, if necessary, as well as settlements, which represent actual costs incurred during the period for the three and nine months ended October 3, 2020, and September 28, 2019. The change in the warranty reserve for the nine months ended October 3, 2020 includes $2.5 million relating to the acquisition of NewSouth, including an adjustment of $0.9 million in the three months ended October 3, 2020. See note 6 for additional information. The reserve is determined through specific identification and assessing Company history. Expected future obligations are discounted to a current value using a risk-free rate for obligations with similar maturities. Of the accrued warranty reserve of $7.7 million at October 3, 2020, $6.2 million is classified within accrued expenses on the condensed consolidated balance sheet at October 3, 2020, with the remainder classified within other liabilities.

	Beginning		Acquisition-		Charged								End of
Accrued Warranty	of Period		Related		to Expense		Adjustments			Settlements			Period
(in thousands)
Three months ended October 3, 2020	$	7,267	$	918	$	4,049	$	(3	)	$	(4,519	)	$	7,712

Three months ended September 28, 2019	$	5,980	$	—	$	3,600	$	660		$	(3,381	)	$	6,859

Nine months ended October 3, 2020	$	6,244	$	2,510	$	11,503	$	30		$	(12,575	)	$	7,712

Nine months ended September 28, 2019	$	6,149	$	—	$	9,595	$	868		$	(9,753	)	$	6,859