The Corporation issues certain warranty policies on its Workplace Furnishings and Residential Building Products that provide for repair or replacement of any covered product or component that fails during normal use because of a defect in design, materials, or workmanship. The duration of warranty policies on the Corporation’s products varies based on the type of product. Allowances have been established for the anticipated future costs associated with the Corporation’s warranty programs.

A warranty allowance is determined by recording a specific allowance for known warranty issues and an additional allowance for unknown claims expected to be incurred based on historical claims experience. Actual claims incurred could differ materially from the original estimates, requiring adjustments to the allowance.


	Six Months Ended
	July 4, 2026		June 28, 2025
Balance at beginning of period	$	48.2	$	17.5

Accruals for warranties issued	17.5		6.8

Settlements	(16.3)		(6.7)

Accruals included in acquisition / divestiture	0.6		(0.4)
Balance at end of period	$	50.0	$	17.2

The increase in activity and balances during the current-year period was due to the acquisition of Steelcase during December 2025, see "Note 3. Acquisitions and Divestitures".

The current and long-term portions of the allowance for estimated settlements are included within "Accounts payable and accrued expenses" and "Other Long-Term Liabilities," respectively, in the Condensed Consolidated Balance Sheets. The following table summarizes when these estimated settlements are expected to be paid:


	July 4, 2026		January 3, 2026
Current - in the next twelve months	$	19.8	$	19.3
Long-term - beyond one year	30.3		28.9
Total	$	50.0	$	48.2