Commitments and Contingencies

Warranties

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



	Fiscal Years Ended
	June 24, 2018			June 25, 2017			June 26, 2016
Balance at beginning of period		$27,919			$21,531			$13,968
Warranties accrued in current period	23,451			32,024			19,866
Recall costs accrued in current period	—			—			5,756
Expenditures	(16,730		)	(25,636		)	(18,059		)
Balance at end of period		$34,640			$27,919			$21,531

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 segment, 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 24, 2018, $18.9 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 June 2027. 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 $6.9 million, $7.0 million and $6.6 million for each of the fiscal years ended June 24, 2018, June 25, 2017 and June 26, 2016, 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 24, 2018 (under leases currently in effect) are as follows (in thousands):



Fiscal Years Ending	Minimum Rental Amount
June 30, 2019		$7,022
June 28, 2020	6,443
June 27, 2021	4,856
June 26, 2022	3,390
June 25, 2023	2,870
Thereafter	788
Total future minimum rental payments		$25,369

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.