Table:
|  |  | Fiscal Year Ended |  |
| --- | --- | --- | --- |
| (In thousands) | December 29, 2019 | December 30, 2018 | December 31, 2017 |
| Balance at the beginning of the period | $172,266 | $181,303 | $161,209 |
| Accruals for warranties issued during the period | 27,717 | 31,628 | 29,689 |
| Settlements and adjustments during the period | (61,538) | (40,665) | (9,595) |
| Balance at the end of the period | $138,445 | $172,266 | $181,303 |
Paragraphs:
Product Warranties
The following table summarizes accrued warranty activities for fiscal 2019, 2018 and 2017:
In some cases, we may offer customers the option to purchase extended warranties to ensure protection beyond the standard warranty period. In those circumstances, the warranty is considered a distinct service and we account for the extended warranty as a performance obligation and allocate a portion of the transaction price to that performance obligation. More frequently, customers do not purchase a warranty separately. In those situations, we account for the warranty as an assurance-type warranty, which provides customers with assurance that the product complies with agreed-upon specifications, and this does not represent a separate performance obligation. Such warranties are recorded separately as liabilities and presented within ‘‘accrued liabilities’’ and ‘‘other long-term liabilities’’ on our consolidated balance sheets (see Note 5. Balance Sheet Components).
Question:
In what situation is warranty accounted as an assurance-type warranty?
Answer: Customers do not purchase a warranty separately