Quarterly report pursuant to Section 13 or 15(d)

Product Warranty Costs

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Product Warranty Costs
 6 Months Ended
Feb. 29, 2012
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 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 product warranty reserve (in thousands):

 

     Six Months Ended  
     February 29,
2012		     February 28,
2011		  

Beginning balance

    $ 23,707      $ 7,868   

Purchase accounting adjustments

      (7,726 )      —     

Warranty reserves of acquired business

      43        10,870   

Provision for warranties

      5,393        4,802   

Warranty payments and costs incurred

      (5,640 )      (2,450 ) 

Impact of changes in foreign currency rates

      (1,109 )      652   
  

 

 

    

 

 

  

Ending balance

    $ 14,668      $ 21,742