Warranty Liabilities

12 Months Ended

Dec. 30, 2023

Product Warranties Disclosures [Abstract]

Warranty Liabilities

Warranty Liabilities

The Company's warranty liabilities are primarily related to watch products and are included in accrued expenses—other in the consolidated balance sheets. The Company's watch products are covered by limited warranties of various lengths against defects in materials or workmanship. The Company's warranty liability is estimated using historical warranty repair expense. As changes occur in sales volumes and warranty costs, the warranty accrual is adjusted as necessary. Due to the nature of smartwatch products, their warranty costs are usually more than traditional products. A shift in product mix from smartwatch to traditional products generally results in a decrease in the Company's warranty liabilities. Warranty liability activity consisted of the following (in thousands):

Fiscal Year	2023		2022		2021
Beginning balance	$	13,623	$	19,159	$	21,916
Settlements in cash or kind	(6,956)		(8,630)		(10,263)
Warranties issued and adjustments to preexisting warranties(1)	3,455		3,094		7,506
Ending balance	$	10,122	$	13,623	$	19,159

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(1)Changes in cost estimates related to preexisting warranties are aggregated with accruals for new standard warranties issued and foreign currency changes.