Quarterly report pursuant to Section 13 or 15(d)

Product Warranty Costs

v2.4.0.8
Product Warranty Costs
 9 Months Ended
May 31, 2013
Guarantees [Abstract]  
Product Warranty Costs
Product Warranty Costs
The Company generally offers its customers a warranty on products they purchase, although warranty periods vary by product type and application. During the nine months ended May 31, 2012, the warranty reserve was reduced by $7.7 million, the result of a purchase accounting adjustment to Mastervolt’s initial estimated warranty reserve. 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):
 
 
Nine Months Ended
 
 
May 31,
2013
 
May 31,
2012
Beginning balances
 
$
12,869

 
$
23,707

Purchase accounting adjustments
 
—

 
(7,726
)
Warranty reserves of acquired businesses
 
—

 
237

Provision for warranties
 
5,093

 
8,444

Warranty payments and costs incurred
 
(8,158
)
 
(8,567
)
Discontinued operations reclassification
 
(4,769
)
 
—

Impact of changes in foreign currency rates
 
280

 
(2,043
)
Ending balances
 
$
5,315

 
$
14,052