Supplemental Financial Information

12 Months Ended

Oct. 01, 2022

Condensed Financial Information [Abstract]

Supplemental Financial Information

3. Supplemental Financial Information

Accounts Receivable

Accounts receivable, net, consisted of the following at the dates indicated:

(in thousands)	October 1, 2022		October 2, 2021
Accounts receivable	$	12,634	$	10,067
Allowance for doubtful accounts	(100)		(100)
Accounts receivable, net	$	12,534	$	9,967

Product Warranties

The following table reflects activity in accrued warranty cost (current and long-term portion combined) for the fiscal years presented:

(in thousands)	2022		2021		2020
Balance at beginning of period	$	18,550	$	21,374	$	22,343
Add: current period accruals	7,348		6,920		8,980
Less: current period reductions of accrual	(9,928)		(9,744)		(9,949)
Balance at end of period	$	15,970	$	18,550	$	21,374

Extended Warranties

The following table reflects activity in deferred warranty income (current and long-term portions combined), for the sale of extended warranties of two years to five years, for the fiscal years presented:

(in thousands)	2022		2021		2020
Balance at beginning of period	$	20,144	$	22,588	$	24,045
Add: current period deferred income	6,847		6,192		7,298
Less: current period recognition of income	(8,196)		(8,636)		(8,755)
Balance at end of period	$	18,795	$	20,144	$	22,588

The outstanding balance of deferred warranty income in the table above is considered a "contract liability," and represents a performance obligation of the Company that we satisfy over the term of the arrangement but for which we have been paid in full at the time the warranty was sold. We expect to recognize $7.2 million of the outstanding contract liability in fiscal 2023, and the remaining balance thereafter.

Self-Insurance

The following table reflects the total accrued self-insurance liability, comprised of workers' compensation and health insurance related claims, at the dates indicated:

(in thousands)	October 1, 2022		October 2, 2021
Current portion	$	3,996	$	2,781
Long-term portion	1,794		1,732
Total accrued self-insurance	$	5,790	$	4,513

The current and long-term portions of the accrued self-insurance liability are included in accrued expenses and other liabilities, respectively, on the accompanying Consolidated Balance Sheets.

Shipping and Handling

Shipping and handling revenues recognized were $16.0 million, $13.4 million and $16.9 million for fiscal 2022, fiscal 2021 and fiscal 2020, respectively. The related cost of goods sold were $14.3 million, $11.7 million and $14.5 million for fiscal 2022, fiscal 2021 and fiscal 2020, respectively.

Derivative Instruments

We are charged variable rates of interest on our indebtedness outstanding under the Amended Credit Agreement (defined in Note 8) which exposes us to fluctuations in interest rates. On October 24, 2018, the Company entered into a four year interest rate collar with a $150.0 million notional value with an effective date of November 30, 2018. The collar was entered into in order to partially mitigate our exposure to interest rate fluctuations on our variable rate debt. The collar established a range where we paid the counterparty if the three month LIBOR rate fell below the established floor rate of 1.5%, and the counterparty paid us if the three month LIBOR rate exceeded the ceiling rate of 3.3%. The collar settled quarterly through the termination date of September 30, 2022. No payments or receipts were exchanged on the interest rate collar contracts unless interest rates rose above or fell below the contracted ceiling or floor rates. Throughout much of the fiscal year ended October 1, 2022, the three month LIBOR rate fell below the established floor, which required us to make $1.2 million in total cash payments to the counterparty.