Warranty Guarantees

6 Months Ended

May 01, 2020

Product Warranties Disclosures [Abstract]

Warranty Guarantees

10 Warranty Guarantees

The company’s products are warranted to provide assurance that the product will function as expected and to ensure customer confidence in design, workmanship, and overall quality. Warranty coverage is generally provided for specified periods of time and on select products’ hours of usage, and generally covers parts, labor, and other expenses for non-maintenance repairs. Warranty coverage generally does not cover operator abuse or improper use. An authorized company distributor or dealer must perform warranty work. Distributors and dealers submit claims for warranty reimbursement and are credited for the cost of repairs, labor, and other expenses as long as the repairs meet the company's prescribed standards. Service support outside of the warranty period is provided by authorized distributors and dealers at the customer's expense. In addition to the standard warranties offered by the company on its products, the company also sells separately priced extended warranty coverage on select products for a prescribed period after the original warranty period expires.

The company recognizes expense and provides an accrual for estimated future warranty costs at the time of sale and also establishes accruals for major rework campaigns. Warranty accruals are based primarily on the estimated number of products under warranty, historical average costs incurred to service warranty claims, the trend in the historical ratio of claims to sales, and the historical length of time between the sale and resulting warranty claim. The company periodically assesses the adequacy of its warranty accruals based on changes in these factors and records any necessary adjustments if actual claims experience indicates that adjustments are necessary. For additional information on the contract liabilities associated with the company's separately priced extended warranties, refer to Note 4, Revenue.

The changes in accrued warranties were as follows:

	Three Months Ended						Six Months Ended
(Dollars in thousands)	May 1, 2020			May 3, 2019			May 1, 2020			May 3, 2019
Beginning balance	$	96,623		$	76,745		$	96,604		$	76,214
Provisions	17,072			17,946			31,103			28,502
Acquisitions	2,557			14,272			2,557			14,272
Claims	(16,927		)	(11,356		)	(31,630		)	(22,171		)
Changes in estimates	3,559			(1,855		)	4,250			(1,065		)
Ending balance	$	102,884		$	95,752		$	102,884		$	95,752