XML 30 R10.htm IDEA: XBRL DOCUMENT v3.3.1.900
Warranty Liabilities
12 Months Ended
Jan. 02, 2016
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 against defects in materials or workmanship. The Company's FOSSIL® watch products sold in the U.S. are covered for a period of 11 years, the Company's RELIC® watch products sold in the U.S. are covered for a period of 12 years, and the Company's SKAGEN branded watches are covered by a lifetime warranty.  Generally, all other products sold in the U.S. and internationally are covered by a comparable one to two year warranty. The Company's warranty liability is estimated using historical warranty repair expense. As changes in warranty costs are experienced, the warranty accrual is adjusted as necessary. Warranty liability activity consisted of the following (in thousands):
Fiscal Year
2015
 
2014
 
2013
Beginning balance
$
13,500

 
$
15,658

 
$
13,383

Settlements in cash or kind
(9,310
)
 
(12,313
)
 
(10,672
)
Warranties issued and adjustments to preexisting warranties(1)
9,435

 
10,155

 
12,607

Liabilities assumed in acquisition
44

 

 
340

Ending balance
$
13,669

 
$
13,500

 
$
15,658

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