Product Warranties

3 Months Ended

Apr. 02, 2022

Product Warranties Disclosures [Abstract]

Product Warranties

Product Warranties

The Corporation issues certain warranty policies on its workplace furnishings and residential building products that provide for repair or replacement of any covered product or component that fails during normal use because of a defect in design, materials, or workmanship. The duration of warranty policies on the Corporation's products varies based on the type of product. Allowances have been established for the anticipated future costs associated with the Corporation's warranty programs.

A warranty allowance is determined by recording a specific allowance for known warranty issues and an additional allowance for unknown claims expected to be incurred based on historical claims experience. Actual costs incurred could differ from the original estimates, requiring adjustments to the allowance. Activity associated with warranty obligations was as follows (in thousands):

	Three Months Ended
	April 2, 2022		April 3, 2021
Balance at beginning of period	$	16,041	$	16,109
Accruals for warranties issued during period	2,704		2,370
Settlements made during the period	(2,792)		(2,192)
Balance at end of period	$	15,953	$	16,287

The current and long-term portions of the allowance for estimated settlements are included within "Accounts payable and accrued expenses" and "Other Long-Term Liabilities", respectively, in the Condensed Consolidated Balance Sheets. The following table summarizes when these estimated settlements are expected to be paid (in thousands):

	April 2, 2022		January 1, 2022
Current	$	5,354	$	5,442
Long-term	10,599		10,599
Total	$	15,953	$	16,041