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Note C - Warranty

9 Months Ended

Mar. 26, 2021

Product Warranty Disclosure [Text Block]

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 quarters and three quarters ended March 26, 2021 and March 27, 2020:

	For the Quarter Ended						For the Three Quarters Ended
	March 26, 2021			March 27, 2020			March 26, 2021			March 27, 2020
Reserve balance, beginning of period	$	4,474		$	5,775		$	4,460		$	3,736
Current period expense and adjustments		805			3,127			2,550			9,255
Payments or credits to customers		(995	)		(2,973	)		(2,814	)		(7,039	)
Translation		(28	)		(9	)		60			(32	)
Reserve balance, end of period	$	4,256		$	5,920		$	4,256		$	5,920

Included in expense in the three quarters ended March 26, 2021 and March 27, 2020 is a non-recurring warranty charge in the amount of $549 and $6,123, respectively, to accrue for estimated costs to resolve a unique product performance issue at certain installations.

The current portion of the warranty accrual ($3,314 and $5,053 as of March 26, 2021 and March 27, 2020, respectively) is reflected in accrued liabilities, while the long-term portion ($942 and $867 as of March 26, 2021 and March 27, 2020, respectively) is included in other long-term liabilities on the consolidated balance sheets.