GUARANTEES

The Company’s product warranty accrual reflects management’s best estimate of probable liability under its product warranties. Historical product claims data is used to estimate the cost of product warranties at the time revenue is recognized.

The Company recorded a $17.0 million reserve in the fourth quarter of 2015 for a commercial settlement with a large customer that requires ongoing quality monitoring. Changes in the product warranty accrual, which is recorded in “Accrued expenses”, for the years ended December 26, 2015 and December 27, 2014, were as follows:



	2015			2014
Balance, beginning of period	$	19,760		$	20,711
Payments made	(11,203		)	(13,900		)
Change in liability for warranties issued during the period	28,608			13,130
Change in liability for pre-existing warranties	(512		)	(181		)
Balance, end of period	$	36,653		$	19,760