Quarterly report pursuant to Section 13 or 15(d)

Product Warranty Costs

 v2.3.0.11
Product Warranty Costs
 9 Months Ended
May 31, 2011
Product Warranty Costs  
Product Warranty Costs

Note 7. Product Warranty Costs

The Company recognizes the cost associated with its product warranties at the time of sale. The amount recognized is based on sales, historical claims rates and current claim cost experience. The following is a reconciliation of the changes in accrued product warranty (in thousands):

 

     Nine Months Ended May 31,  
     2011     2010  

Beginning balance

    $ 7,868      $ 7,978   

Warranty reserves of acquired business

      10,870        —     

Provision for warranties

      7,416        3,574   

Warranty payments and costs incurred

      (3,664 )      (3,941 ) 

Impact of changes in foreign currency rates

      1,366        (426 ) 
                

Ending balance

    $ 23,856      $ 7,185