Accrued expenses consisted of the following:


	July 4, 2025		January 3, 2025
Payroll and related expenses	$	30,214	$	22,504
Warranty	18,543		21,593
Current portion of lease liabilities	16,600		16,683
Accrued sales rebate	10,459		7,852
Income tax payable	5,460		9,343
Other accrued expenses	9,320		13,452
Total accrued expenses	$	90,596	$	91,427

The Company generally provides a limited warranty for products for a one, two, or three-year period beginning on: (i) in the case of OEM sales, the date the bike or powered vehicle is purchased from an authorized OEM where the product is incorporated as original equipment on the purchased bike or powered vehicle; (ii) in the case of aftermarket/non-OEM sales, the date the product is originally purchased from an authorized dealer; or (iii) in the case of upfitting sales, the date of the retail sale to an end customer. Activity related to warranties is as follows:


	For the three months ended				For the six months ended
	July 4, 2025		June 28, 2024		July 4, 2025		June 28, 2024
Beginning warranty liability	$	19,113	$	19,327	$	21,593	$	20,001
Charge to cost of sales	2,679		5,546		4,147		9,489

Costs incurred	(3,249)		(4,180)		(7,197)		(8,797)
Ending warranty liability	$	18,543	$	20,693	$	18,543	$	20,693