XML 26 R9.htm IDEA: XBRL DOCUMENT v2.4.0.6
WARRANTY RESERVE
 9 Months Ended
Sep. 29, 2012
WARRANTY RESERVE  
WARRANTY RESERVE

4. WARRANTY RESERVE

 

The Company’s warranty liabilities are primarily related to watch products. The Company’s FOSSIL® watch products sold in the U.S. are covered by a limited warranty against defects in materials or workmanship for a period of 11 years from the date of purchase. RELIC® watch products sold in the U.S. are covered by a comparable 12 year warranty, while certain other watches sold by the Company are covered by a comparable two year limited warranty. SKAGEN branded watches are covered by a lifetime warranty against defects due to faulty material or workmanship, subject to normal conditions of use. The changes in the Company’s warranty liability for the periods indicated were as follows (in thousands):

 

 

 

For the 39 Weeks
Ended

 

 

 

September 29,
2012

 

October 1,
2011

 

Beginning balance

 

$

10,996

 

$

8,534

 

Settlements in cash or kind

 

(4,591

)

(3,011

)

Warranties issued and adjustments (1)

 

6,561

 

5,061

 

Liabilities assumed in acquisition

 

595

 

0

 

Ending balance

 

$

13,561

 

$

10,584

 

 

(1)                  Changes in cost estimates related to pre-existing warranties are aggregated with accruals for newly issued warranties and foreign currency changes.