Commitments and Contingencies

6 Months Ended

Jul. 04, 2015

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Commitments and Contingencies

Sales Returns

The activity in the sales returns liability account was as follows (in thousands):

	Six Months Ended
	July 4, 2015			June 28, 2014
Balance at beginning of year	$	15,262		$	9,433
Additions that reduce net sales	40,076			32,923
Deductions from reserves	(42,659		)	(33,162		)
Balance at end of period	$	12,679		$	9,194

Warranty Liabilities

The activity in the accrued warranty liabilities account was as follows (in thousands): 

	Six Months Ended
	July 4, 2015			June 28, 2014
Balance at beginning of year	$	5,824		$	4,153
Additions charged to costs and expenses for current-year sales	4,869			3,237
Deductions from reserves	(4,177		)	(3,231		)
Changes in liability for pre-existing warranties during the current year, including expirations	421			274
Balance at end of period	$	6,937		$	4,433

Legal Proceedings

We are involved from time to time in various legal proceedings arising in the ordinary course of our business, including primarily commercial, product liability, employment and intellectual property claims. In accordance with generally accepted accounting principles in the United States, we record a liability in our consolidated financial statements with respect to any of these matters when it is both probable that a liability has been incurred and the amount of the liability can be reasonably estimated. With respect to currently pending legal proceedings, we have not established an estimated range of reasonably possible additional losses either because we believe that we have valid defenses to claims asserted against us or the proceeding has not advanced to a stage of discovery that would enable us to establish an estimate. We currently do not expect the outcome of these matters to have a material effect on our consolidated results of operations, financial position or cash flows. Litigation, however, is inherently unpredictable, and it is possible that the ultimate outcome of one or more claims asserted against us could adversely impact our consolidated results of operations, financial position or cash flows. We expense legal costs as incurred.