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Warranty Liabilities
12 Months Ended
Jan. 01, 2022
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 of various lengths against defects in materials or workmanship. The Company's warranty liability is estimated using historical warranty repair expense. As changes occur in sales volumes and warranty costs, the warranty accrual is adjusted as necessary. Due to the nature of smartwatch products, their warranty costs are usually more than traditional products. A shift in product mix from traditional to smartwatch products generally results in an increase in the Company's warranty liabilities. Warranty liability activity consisted of the following (in thousands):
Fiscal Year202120202019
Beginning balance$21,916 $23,095 $22,807 
Settlements in cash or kind(10,263)(14,843)(18,073)
Warranties issued and adjustments to preexisting warranties(1)
7,506 13,664 18,361 
Ending balance$19,159 $21,916 $23,095 
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(1)Changes in cost estimates related to preexisting warranties are aggregated with accruals for new standard warranties issued and foreign currency changes.