Accrued expenses consisted of the following:


	July 3, 2026		January 2, 2026
Payroll and related expenses	$	29,569	$	32,743
Warranty	14,201		15,173
Current portion of lease liabilities	12,459		16,221
Accrued sales rebate	9,185		7,031
Income tax payable	8,600		7,354
Other accrued expenses	10,336		13,573
Total accrued expenses	$	84,350	$	92,095

The Company generally provides a limited warranty for products for a one-, two-, or three-year period beginning on: (i) in the case of OEM sales, the date the bike or powered vehicle is purchased from an authorized OEM where the product is incorporated as original equipment on the purchased bike or powered vehicle; (ii) in the case of aftermarket/non-OEM sales, the date the product is originally purchased from an authorized dealer; or (iii) in the case of upfitting sales, the date of the retail sale to an end customer. Activity related to warranties is as follows:


	For the three months ended				For the six months ended
	July 3, 2026		July 4, 2025		July 3, 2026		July 4, 2025
Beginning warranty liability	$	13,881	$	19,113	$	15,173	$	21,593
Charge to cost of sales	4,581		2,679		8,627		4,147

Costs incurred	(4,261)		(3,249)		(9,599)		(7,197)
Ending warranty liability	$	14,201	$	18,543	$	14,201	$	18,543