Commitments and Contingencies

Warranties

The following table summarizes the changes in the Company’s product warranty liabilities (in thousands):



	Fiscal Years Ended
	June 25, 2017			June 26, 2016			June 28, 2015
Balance at beginning of period		$21,531			$13,968			$6,822
Warranties accrued in current period	32,024			19,866			9,242
Recall costs accrued in current period	—			5,756			5,418
Expenditures	(25,636		)	(18,059		)	(7,514		)
Balance at end of period		$27,919			$21,531			$13,968

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 Company accrues estimated costs related to product recalls based on a formal campaign soliciting repair or return of that product when they are deemed probable and reasonably estimable. The warranty reserves, which are primarily related to Lighting Products, are evaluated quarterly 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 25, 2017, $14.3 million of the Company’s product warranty liabilities were classified as long-term.

In June 2015, the Company issued a voluntary recall of its linear LED T8 replacement lamps due to the hazard of overheating and melting. The Company expects the majority of the costs of the recall to be recoverable from insurance proceeds resulting in an immaterial impact to the Company's financial results.

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 April 2024. 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 $7.0 million, $6.6 million and $8.2 million for each of the fiscal years ended June 25, 2017, June 26, 2016 and June 28, 2015, 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 25, 2017 (under leases currently in effect) are as follows (in thousands):



Fiscal Years Ending	Minimum Rental Amount
June 24, 2018		$4,905
June 30, 2019	3,364
June 28, 2020	2,892
June 27, 2021	1,350
June 26, 2022	692
Thereafter	1,259
Total future minimum rental payments		$14,462

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. The outcomes in these matters are not reasonably estimable.