XML 99 R21.htm IDEA: XBRL DOCUMENT v2.4.0.8
Commitments and Contingencies
 12 Months Ended
Jun. 29, 2014
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies
Commitments and Contingencies

Warranties
The following table summarizes the changes in the Company’s product warranty liabilities (in thousands): 
 
Fiscal Years Ended
 
June 29,
2014
 
June 30,
2013
 
June 24,
2012
Balance at beginning of period

$6,171

 

$5,513

 

$2,235

Acquisition-related warranties
—

 
—

 
5,623

Warranties accrued in current period
4,256

 
1,533

 
1,055

Changes in estimates for pre-existing warranties
907

 
71

 
(878
)
Expenditures
(4,512
)
 
(946
)
 
(2,522
)
Balance at end of period

$6,822

 

$6,171

 

$5,513


Product warranties are estimated and recognized at the time the Company recognizes revenue. The warranty periods range from 90 days to 10 years. The Company accrues warranty liabilities at the time of sale, based on historical and projected incident rates and expected future warranty costs. The warranty reserves, which are primarily related to Lighting Products, are evaluated on a quarterly basis based on various factors including historical warranty claims, assumptions about the frequency of warranty claims, and assumptions about the frequency of product failures derived from quality testing, field monitoring and the Company’s reliability estimates. As of June 29, 2014, $1.0 million of the Company’s product warranty liabilities were classified as long-term.

Lease Commitments
The Company primarily leases manufacturing, office, housing and warehousing space under the terms of non-cancelable operating leases. These leases expire at various times through May 2022. The Company recognizes net rent expense on a straight-line basis over the life of the lease. Rent expense associated with these operating leases totaled approximately $5.8 million, $4.8 million and $4.6 million for each of the fiscal years ended June 29, 2014, June 30, 2013 and June 24, 2012, respectively. Certain agreements require that the Company pay property taxes and general property maintenance in addition to the minimum rental payments.
Future minimum rental payments as of June 29, 2014 (under leases currently in effect) are as follows (in thousands): 
Fiscal Years Ending
Minimum Rental
Amount
June 28, 2015

$5,840

June 26, 2016
3,711

June 25, 2017
2,731

June 24, 2018
1,344

June 30, 2019
422

Thereafter
102

Total future minimum rental payments

$14,150



Litigation
The Company is currently a party to various legal proceedings.  While management presently believes that the ultimate outcome of such proceedings, individually and in the aggregate, will not materially harm the Company’s financial position, cash flows, or overall trends in results of operations, legal proceedings are subject to inherent uncertainties, and unfavorable rulings could occur.  An unfavorable ruling could include money damages or, in matters for which injunctive relief or other conduct remedies may be sought, an injunction prohibiting the Company from selling one or more products at all or in particular ways.  Were unfavorable final outcomes to occur, there exists the possibility of a material adverse impact on the Company’s business, results of operation, financial position and overall trends.  Unless otherwise indicated, the outcomes in these matters are not reasonably estimable.