XML 29 R10.htm IDEA: XBRL DOCUMENT v3.21.2
Supplemental Financial Information
 12 Months Ended
Oct. 02, 2021
Condensed Financial Information [Abstract]  
Supplemental Financial Information
3. Supplemental Financial Information

Accounts Receivable

Accounts receivable, net, consisted of the following at the dates indicated:
(in thousands)
October 2, 2021October 3, 2020
Accounts receivable$10,067 $7,723 
Allowance for doubtful accounts(100)(100)
Accounts receivable, net $9,967 $7,623 

Product Warranties

The following table reflects activity in accrued warranty cost (current and long-term portion combined) for the fiscal years presented:
(in thousands)202120202019
Balance at beginning of period$21,374 $22,343 $22,646 
Add: current period accruals6,920 8,980 10,869 
Less: current period reductions of accrual(9,744)(9,949)(11,172)
Balance at end of period$18,550 $21,374 $22,343 

Extended Warranties

The following table reflects activity in deferred warranty income (current and long-term portions combined), for the sale of extended warranties of two years to five years, for the fiscal years presented:
(in thousands)202120202019
Balance at beginning of period$22,588 $24,045 $23,191 
   Add: current period deferred income6,192 7,298 9,238 
   Less: current period recognition of income(8,636)(8,755)(8,384)
Balance at end of period$20,144 $22,588 $24,045 

The outstanding balance of deferred warranty income in the table above is considered a "contract liability," and represents a performance obligation of the Company that we satisfy over the term of the arrangement but for which we have been paid in full at the time the warranty was sold. We expect to recognize $7.8 million of the outstanding contract liability in fiscal 2022, and the remaining balance thereafter.
Self-Insurance

The following table reflects the total accrued self-insurance liability, comprised of workers' compensation and health insurance related claims, at the dates indicated:
(in thousands)October 2, 2021October 3, 2020
Current portion$2,781 $2,993 
Long-term portion1,732 1,962 
Total accrued self-insurance$4,513 $4,955 

The current and long-term portions of the accrued self-insurance liability are included in accrued expenses and other liabilities, respectively, on the accompanying Consolidated Balance Sheets.

Shipping and Handling

Shipping and handling revenues recognized were $13.4 million, $16.9 million and $19.4 million for fiscal 2021, fiscal 2020 and fiscal 2019, respectively. The related cost of goods sold were $11.7 million, $14.5 million and $17.0 million for fiscal 2021, fiscal 2020 and fiscal 2019, respectively.

Derivative Instruments

We are charged variable rates of interest on our indebtedness outstanding under the Amended Credit Agreement (defined in Note 8) which exposes us to fluctuations in interest rates. On October 24, 2018, the Company entered into a four year interest rate collar with a $150.0 million notional value with an effective date of November 30, 2018. The collar was entered into in order to partially mitigate our exposure to interest rate fluctuations on our variable rate debt. The collar establishes a range where we will pay the counterparty if the three month LIBOR rate falls below the established floor rate of 1.5%, and the counterparty will pay us if the three month LIBOR rate exceeds the ceiling rate of 3.3%. The collar settles quarterly through the termination date of September 30, 2022. No payments or receipts are exchanged on the interest rate collar contracts unless interest rates rise above or fall below the contracted ceiling or floor rates. Throughout the fiscal year ended October 2, 2021, the three month LIBOR rate fell below the established floor, which required us to make $2.0 million in total cash payments to the counterparty.

Changes in the interest rate collar fair value are recorded in interest expense as the collar does not qualify for hedge accounting. At October 2, 2021, the fair value of the interest rate collar contract was $2.0 million and is included in "other current liabilities" on the Consolidated Balance Sheets. The fair value of the interest rate collar is a Level 2 fair value measurement, based on quoted prices of similar items in active markets.