Product Warranties

Note 11: Product Warranties

We accrue an estimated liability for product warranties when we recognize revenue on the sale of warrantied products. We estimate future warranty claims on product sales based on sales volume and our historical claims experience and periodically adjust the provision to reflect changes in actual experience. We incorporate repair costs into our liability estimates, including materials, labor and overhead amounts necessary to perform repairs, and any costs associated with delivering repaired product to our customers. Over 90% of our warranty liability relates to our Wholesale reportable segment as we generally warrant our products against defects for one to three years on fabric and leather, from one to five years on cushions and padding, and provide a limited lifetime warranty on certain mechanisms and frames, unless otherwise noted in the warranty. Additionally, our Wholesale segment warranties cover labor costs relating to our parts for one year. We provide a limited lifetime warranty against defects on a majority of the Joybird products, which are a part of our Corporate and Other results. For all our manufacturer warranties, the warranty period begins when the consumer receives our product. We use considerable judgment in making our estimates, and we record differences between our actual and estimated costs when the differences are known.

A reconciliation of the changes in our product warranty liability is as follows:


(Amounts in thousands)	4/26/2025		4/27/2024
Balance as of the beginning of the year	$	28,909	$	30,984
Accruals during the year	34,336		33,227
Settlements during the year	(33,305)		(35,302)
Balance as of the end of the year (1)	$	29,940	$	28,909

(1)$22.4 million is recorded in accrued expenses and other current liabilities as of April 26, 2025 and April 27, 2024, while the remainder is included in other long-term liabilities.