C. Warranty

The Company engages in extensive product quality programs and processes, including actively monitoring and evaluating the quality of its suppliers. However, its warranty obligation is affected by product failure rates, the number of units affected by the failure and the expense involved in satisfactorily addressing the situation. The warranty reserve is established based on our best estimate of the amounts necessary to settle future and existing claims on products sold as of the balance sheet date. When evaluating the adequacy of the reserve for warranty costs, management takes into consideration the term of the warranty coverage, historical claim rates and costs of repair, knowledge of the type and volume of new products and economic trends. While we believe the warranty reserve is adequate and that the judgment applied is appropriate, such amounts estimated to be due and payable in the future could differ materially from what actually transpires. The following is a listing of the activity in the warranty reserve for the quarter and

two

quarters ended

December

30,

2016

and

December

25,

2015:

	For the Quarter Ended						For the Two Quarters Ended
	December 30, 2016			December 25, 2015			December 30, 2016			December 25, 2015
Reserve balance, beginning of period	$	3,036		$	4,220		$	3,607		$	5,245
Current period expense		61			402			243			99
Payments or credits to customers		(506	)		(540	)		(1,268	)		(1,261	)
Translation		(49	)		(33	)		(40	)		(34	)
Reserve balance, end of period	$	2,542		$	4,049		$	2,542		$	4,049

The current portion of the warranty accrual

($2,063

and

$2,888

as of

December

30,

2016

and

December

25,

2015,

respectively) is reflected in accrued liabilities, while the long-term portion

($479

and

$1,161

as of

December

30,

2016

and

December

25,

2015,

respectively) is included in other long-term liabilities on the consolidated balance sheets.