Commitments and Contingencies

Warranties

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



	Fiscal Years Ended
	June 26, 2016			June 28, 2015			June 29, 2014
Balance at beginning of period		$13,968			$6,822			$6,171
Warranties accrued in current period	19,866			9,242			4,256
Recall costs accrued in current period	5,756			5,418			—
Changes in estimates for pre-existing warranties	—			—			907
Expenditures	(18,059		)	(7,514		)	(4,512		)
Balance at end of period		$21,531			$13,968			$6,822

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 26, 2016, $1.3 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 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 $6.6 million, $8.2 million and $5.8 million for each of the fiscal years ended June 26, 2016, June 28, 2015 and June 29, 2014, 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 26, 2016 (under leases currently in effect) are as follows (in thousands):



Fiscal Years Ending	Minimum Rental Amount
June 25, 2017		$4,850
June 24, 2018	2,974
June 30, 2019	1,663
June 28, 2020	1,269
June 27, 2021	577
Thereafter	26
Total future minimum rental payments		$11,359

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.