Note C - Warranty

9 Months Ended

Mar. 31, 2023

Notes to Financial Statements

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 ended March 31, 2023 and March 25, 2022:

	For the Quarter Ended						For the Three Quarters Ended
	March 31, 2023			March 25, 2022			March 31, 2023			March 25, 2022
Reserve balance, beginning of period	$	4,145		$	3,483		$	3,329		$	4,369
Current period expense and adjustments		371			339			2,052			658
Payments or credits to customers		(510	)		(518	)		(1,381	)		(1,688	)
Translation		12			(27	)		18			(62	)
Reserve balance, end of period	$	4,018		$	3,277		$	4,018		$	3,277

The current portion of the warranty accrual ($3,503 and $2,757 as of March 31, 2023 and March 25, 2022, respectively) is reflected in accrued liabilities, while the long-term portion ($515 and $520 as of March 31, 2023 and March 25, 2022, respectively) is included in other long-term liabilities on the consolidated balance sheets.