Quarterly report pursuant to Section 13 or 15(d)

Commitments and Contingencies

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Commitments and Contingencies
 9 Months Ended
Sep. 30, 2017
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies
Commitments and Contingencies
 
On January 21, 2015, Cobalt Boats, LLC (Cobalt) filed a patent infringement lawsuit against the Company alleging that certain of the Company’s Sea Ray branded boats include a feature that infringes a Cobalt patent relating to a submersible swim step. On October 31, 2017, the US District Court in the Eastern District of Virginia entered an amended judgment on the jury verdict awarding total damages, including enhanced damages, in the amount of $5.4 million plus attorneys' fees of $2.5 million and applicable interest. The Company believes it has meritorious defenses and will pursue an appeal.

There were no other material changes during the three months and nine months ended September 30, 2017 to the financial commitments or the legal and environmental commitments that were discussed in Note 13 in the Notes to Consolidated Financial Statements in the 2016 Form 10-K. 

Product Warranties

The following activity related to product warranty liabilities was recorded in Accrued expenses during the nine months ended September 30, 2017 and October 1, 2016:
(in millions)
September 30,
2017
 
October 1,
2016
Balance at beginning of period
$
112.6

 
$
106.3

Payments made
(53.5
)
 
(50.7
)
Provisions/additions for contracts issued/sold
54.8

 
55.6

Aggregate changes for preexisting warranties
(1.1
)
 
(8.1
)
Foreign currency translation
2.3

 
0.8

Acquisitions
—

 
6.7

Other
(1.3
)
 
—

Balance at end of period
$
113.8

 
$
110.6



Additionally, end users of the Company's products may purchase a contract from the Company that extends product warranty beyond the standard period. For certain extended warranty contracts in which the Company retains the warranty or administration obligation, a deferred revenue liability is recorded based on the aggregate sales price for contracts sold. The liability is reduced and revenue is recognized on a straight-line basis over the contract period during which corresponding costs are expected to be incurred.

The following activity related to deferred revenue for extended product warranty contracts was recorded in Accrued expenses and Other long-term liabilities during the nine months ended September 30, 2017 and October 1, 2016:
(in millions)
September 30,
2017
 
October 1,
2016
Balance at beginning of period
$
90.6

 
$
78.3

Extended warranty contracts sold
39.3

 
28.6

Revenue recognized on existing extended warranty contracts
(23.8
)
 
(20.7
)
Foreign currency translation
1.1

 
(0.1
)
Acquisitions
—

 
2.6

Balance at end of period
$
107.2

 
$
88.7