Quarterly report pursuant to Section 13 or 15(d)

Product Warranty Costs

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Product Warranty Costs
 3 Months Ended
Nov. 30, 2011
Product Warranty Costs [Abstract]  
Product Warranty Costs

Note 6. Product Warranty Costs

The Company generally offers its customers a warranty on products sold, although warranty periods vary by product type and application. The acquisition of Mastervolt during fiscal 2011 has increased the required warranty reserve, as this business has a longer base warranty period. The reserve for future warranty claims is based on historical claim rates and current warranty cost experience. The following is a rollforward of the accrued product warranty reserve (in thousands):

 

     Three Months Ended November 30,  
     2011     2010  

Beginning balances

    $ 23,707      $ 7,868   

Purchase accounting adjustment

      (5,719 )      —     

Provision for warranties

      2,491        1,359   

Warranty payments and costs incurred

      (2,903 )      (1,565 ) 

Impact of changes in foreign currency rates

      (1,109 )      105   
  

 

 

    

 

 

  

Ending balances

    $ 16,467      $ 7,767