Other Current Liabilities

6 Months Ended

Jun. 26, 2020

Accrued Liabilities, Current [Abstract]

Other Current Liabilities

Other Current Liabilities

Components of other current liabilities were (in thousands):

	June 26, 2020		December 27, 2019
Accrued self-insurance retentions	$	7,622	$	7,570
Accrued warranty and service liabilities	12,578		12,785
Accrued trade promotions	6,144		8,390
Payable for employee stock purchases	6,257		13,722
Customer advances and deferred revenue	50,281		33,138
Income taxes payable	16,839		8,706
Right of return refund liability	13,730		13,791
Operating lease liability, current	8,822		7,690
Loss reserve	24,608		—
Other	29,956		37,145
Total	$	176,837	$	142,937

In the second quarter, the Company entered into negotiations to sell its U.K.-based valve business (“Alco”). Based on the negotiations to sell, the Company revalued its investment in Alco, recording impairment charges of $35 million. A loss reserve was recognized within other current liabilities, representing $24 million of previously unrealized foreign currency translation losses recorded in accumulated other comprehensive income plus other disposal costs. The sale of Alco was completed in the third quarter, subject to post-closing adjustments.

A liability is established for estimated future warranty and service claims that relate to current and prior period sales. The Company estimates warranty costs based on historical claim experience and other factors including evaluating specific product warranty issues. Following is a summary of activity in accrued warranty and service liabilities (in thousands):

Balance, December 27, 2019	$	12,785
Assumed in business acquisition	155
Charged to expense	3,318
Margin on parts sales reversed	1,080
Reductions for claims settled	(4,760)
Balance, June 26, 2020	$	12,578

Deferred Revenue

Revenue is deferred when cash payments are received or due in advance of performance, including amounts which are refundable. This is also the case for services associated with certain product sales. The balance in the deferred revenue and customer advances was $50.3 million as of June 26, 2020 and $33.1 million as of December 27, 2019. Net sales for the year to date included $14.2 million in 2020 and $29.9 million in 2019 that related to deferred revenue as of the beginning of each period.