Product Warranty Costs

9 Months Ended

May 31, 2011

Product Warranty Costs

Product Warranty Costs

Note 7. Product Warranty Costs

The Company recognizes the cost associated with its product warranties at the time of sale. The amount recognized is based on sales, historical claims rates and current claim cost experience. The following is a reconciliation of the changes in accrued product warranty (in thousands):

	Nine Months Ended May 31,
	2011			2010
Beginning balance	$	7,868		$	7,978
Warranty reserves of acquired business		10,870			—
Provision for warranties		7,416			3,574
Warranty payments and costs incurred		(3,664	)		(3,941	)
Impact of changes in foreign currency rates		1,366			(426	)
Ending balance	$	23,856		$	7,185