XML 108 R18.htm IDEA: XBRL DOCUMENT v3.20.1
Warranty Liability
3 Months Ended
Mar. 28, 2020
Product Warranties Disclosures [Abstract]  
Warranty Liability Warranty Liability
Warranty terms vary from one year to lifetime on certain window and door components. Warranties are normally limited to servicing or replacing defective components for the original customer. Product defects arising within six months of sale are classified as manufacturing defects and are not included in the current period expense below. Some warranties are transferable to subsequent owners and are either limited to 10 years from the date of manufacture or require pro-rata payments from the customer. A provision for estimated warranty costs is recorded at the time of sale based on historical experience and is periodically adjusted to reflect actual experience.
An analysis of our warranty liability is as follows:
(amounts in thousands)
March 28, 2020
 
March 30, 2019
Balance as of January 1
$
49,716

 
$
46,468

Current period expense
4,668

 
4,344

Liabilities assumed due to acquisition

 
79

Experience adjustments
1,902

 
904

Payments
(6,476
)
 
(5,602
)
Currency translation
(756
)
 
106

Balance at period end
49,054

 
46,299

Current portion
(20,397
)
 
(20,272
)
Long-term portion
$
28,657

 
$
26,027


The most significant component of our warranty liability is in the North America segment, which totaled $44.4 million at March 28, 2020, after discounting future estimated cash flows at rates between 0.76% and 4.75%. Without discounting, the liability would have been higher by approximately $3.0 million.