NOTE 6. Balance Sheet Items

Inventories.

Inventories (net of reserves of $7.5 million and $7.8 million at March 28, 2015 and December 27, 2014, respectively) were as follows:


	March 28,		December 27,
(in thousands)	2015		2014
Work-in-progress	$	16,838	$	17,438
Finished goods		18,847		20,511
	$	35,685	$	37,949

Product warranties.

The Company provides a limited warranty on most of its standard products and accrues for the estimated cost at the time of shipment. The Company estimates its warranty costs based on historical failure rates and related repair or replacement costs and periodically reassess these estimates as actual warranty activities occur. The changes in the Company’s accrued warranty obligations from December 27, 2014 to March 28, 2015, and from December 28, 2013 to March 29, 2014 were as follows:


	Three Months Ended
	March 28,		March 29,
(in thousands)	2015		2014
Balance, beginning of the period	$	1,756	$	2,163
Accrual for new warranties issued		246		124
Reduction for payments and product replacements		(134)		(195)
Adjustments related to revisions and changes in estimate of warranty accrual		—		(88)
Balance, end of the period	$	1,868	$	2,004

The Company’s accrual for warranty obligations is included in Accrued liabilities in the interim Condensed Consolidated Balance Sheet.