NOTE E - Warranty Costs

Costa and Native sunglasses are sold with a lifetime warranty against defects in materials and workmanship. Estimated warranty costs are accrued at the time of sale. The most significant factors in the estimation of warranty cost liabilities include the operating efficiency and related cost of the repair department, unit sales and the number of units that are eventually returned for warranty repair. The current portion of accrued warranty costs was $0.2 million at September 28, 2013 and December 29, 2012, and was recorded in accounts payable, accrued expenses and other liabilities. The following chart reflects the activity in aggregate accrued warranty costs:


(THOUSANDS OF DOLLARS)	THREE MONTHS ENDED				NINE MONTHS ENDED
	SEPTEMBER 28,		SEPTEMBER 29,		SEPTEMBER 28,		SEPTEMBER 29,
	2013		2012		2013		2012
Accrued Warranty Costs - Beginning of Period	$	1,728	$	1,887	$	1,712	$	1,892
Warranty costs paid		(106)		(67)		(369)		(205)
Warranty costs accrued		255		28		534		161
Warranty liability sold		(1,249)		-		(1,249)		-
Accrued Warranty Costs - End of Period	$	628	$	1,848	$	628	$	1,848