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Warranty Liabilities
12 Months Ended
Dec. 31, 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. Historically, the Company's FOSSIL® and RELIC® watch products sold in the U.S. have been covered for warranty periods of 11 years and 12 years, respectively, and SKAGEN brand watches have been covered by a lifetime warranty. Beginning in 2017, these brands will be covered by a two year 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
2016
 
2015
 
2014
Beginning balance
$
13,669

 
$
13,500

 
$
15,658

Settlements in cash or kind
(9,616
)
 
(9,310
)
 
(12,313
)
Warranties issued and adjustments to preexisting warranties(1)
11,368

 
9,435

 
10,155

Liabilities assumed in acquisition

 
44

 

Ending balance
$
15,421

 
$
13,669

 
$
13,500

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