Product Warranty Costs

6 Months Ended

Feb. 28, 2021

Note 7. Product Warranty Costs

The Company generally offers its customers an assurance warranty on products sold, although warranty periods may vary by product type and application. The reserve for future warranty claims, which is recorded within the "Other current liabilities" line in the Condensed Consolidated Balance Sheets, is based on historical claim rates and current warranty cost experience. The following summarizes the changes in product warranty reserves for the six months ended February 28, 2021 and February 29, 2020, respectively (in thousands):


	Six Months Ended
	February 28, 2021		February 29, 2020
Beginning balance	$	892	$	1,145
Provision for warranties	704		135
Warranty payments and costs incurred	(609)		(418)
Warranty activity for divested businesses	—		(27)
Impact of changes in foreign currency rates	18		—
Ending balance	$	1,005	$	835