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 28, 2018

and

December 29, 2017:

	For the Quarter Ended						For the Two Quarters Ended
	December 28, 2018			December 29, 2017			December 28, 2018			December 29, 2017
Reserve balance, beginning of period	$	4,667		$	2,326		$	4,407		$	2,062
Current period expense and adjustments		128			723			857			1,381
Payments or credits to customers		(926	)		(589	)		(1,946	)		(1,022	)
Acquisition		-			-			557			-
Translation		(26	)		7			(32	)		46
Reserve balance, end of period	$	3,843		$	2,467		$	3,843		$	2,467

The current portion of the warranty accrual (

$3,309

and

$2,032

as of

December 28, 2018

and

December 29, 2017,

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

$534

and

$435

as of

December 28, 2018

and

December 29, 2017,

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