Note 8 - Warranties

9 Months Ended

Mar. 31, 2017

Notes to Financial Statements

Product Warranty Disclosure [Text Block]

8)

     Warranties

The expected cost associated with warranty obligations on our products is recorded as a component of cost of sales when the revenue is recognized. The Company’s estimate of warranty cost is based on contract terms and historical warranty loss experience that is periodically adjusted for recent actual experience. Since warranty estimates are forecasts based on the best available information, claims costs

may

differ from amounts provided. Adjustments to initial obligations for warranties are made as changes in the obligations become reasonably estimable.

The changes in warranty reserve, which are recorded as a component of accrued liabilities, as of

March

31,

2017

and year ended

June

30,

2016,

were as follows (in thousands):

	March 31, 2017			June 30, 2016
Balance at beginning of year	$	9,085		$	7,436
Acquisitions and other		295			(5	)
Warranty expense		6,817			13,503
Warranty claims		(6,460	)		(11,849	)
Balance at end of period	$	9,737		$	9,085