Accrued expenses and other current liabilities



(in millions)	January 30, 2016		January 31, 2015
Accrued compensation	$	162.3	$	156.2
Other liabilities	36.0		37.9
Other taxes	45.1		43.0
Payroll taxes	11.5		11.6
Accrued expenses	243.4		233.7
Total accrued expenses and other current liabilities	$	498.3	$	482.4

The sales returns reserve, included in accrued expenses, is as follows:



(in millions)	Fiscal 2016			Fiscal 2015		Fiscal 2014
Sales return reserve, beginning of period	$	15.3		$	8.4	$	7.6
Net adjustment⁽¹⁾	$	(1.3	)	$	6.9	$	0.8
Sales return reserve, end of period	$	14.0		$	15.3	$	8.4

⁽¹⁾Net adjustment relates to sales returns previously provided for, changes in estimate and the impact of foreign exchange translation.

Sterling Jewelers and Zale Jewelry segments provide a product lifetime diamond guarantee as long as six-month inspections are performed and certified by an authorized store representative. Provided the customer has complied with the six-month inspection policy, the Company will replace, at no cost to the customer, any stone that chips, breaks or is lost from its original setting during normal wear. Management estimates the warranty accrual based on the lag of actual claims experience and the costs of such claims, inclusive of labor and material. Sterling Jewelers also provides a similar product lifetime guarantee on color gemstones. The warranty reserve for diamond and gemstone guarantee, included in accrued expenses and other current liabilities and other non-current liabilities, is as follows:



(in millions)	Fiscal 2016			Fiscal 2015			Fiscal 2014
Warranty reserve, beginning of period	$	44.9		$	19.1		$	18.5
Warranty obligations acquired	—			28.4			—
Warranty expense⁽¹⁾	10.8			7.4			7.4
Utilized⁽²⁾	(13.8		)	(10.0		)	(6.8		)
Warranty reserve, end of period	$	41.9		$	44.9		$	19.1

⁽¹⁾ Includes impact of acquisition accounting adjustment related to warranty obligations acquired in the Zale Acquisition.

⁽²⁾ Includes impact of foreign exchange translation.



(in millions)	January 30, 2016		January 31, 2015
Disclosed as:
Current liabilities⁽¹⁾	$	12.3	$	17.2
Non-current liabilities (see Note 22)	29.6		27.7
Total warranty reserve	$	41.9	$	44.9

⁽¹⁾ Included within accrued expenses above.