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 $17,000 provision 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 31, 2016 and December 26, 2015, were as follows:



	2016			2015
Balance, beginning of period	$	36,653		$	19,760
Payments made	(20,355		)	(11,203		)
Change in liability for warranties issued during the period	9,565			28,608
Change in liability for pre-existing warranties	675			(512		)
Balance, end of period	$	26,538		$	36,653