Warranty Accruals

6 Months Ended

Feb. 28, 2018

Warranty Accruals

Note 7 – Warranty Accruals

Warranty costs are estimated and charged to operations to cover a defined warranty period. The estimated warranty cost is based on the history of warranty claims for each particular product type. For new product types without a warranty history, preliminary estimates are based on historical information for similar product types. The warranty accruals, included in Accounts payable and accrued liabilities on the Consolidated Balance Sheets, are reviewed periodically and updated based on warranty trends and expirations of warranty periods.

Warranty accrual activity:

(In thousands)	Three Months Ended February 28,						Six Months Ended February 28,
	2018			2017			2018			2017
Balance at beginning of period	$	21,952		$	11,737		$	20,737		$	12,159
Charged to cost of revenue, net		5,646			3,288			7,599			3,645
Payments		(1,089	)		(495	)		(1,840	)		(1,132	)
Currency translation effect		468			52			481			(90	)
Balance at end of period	$	26,977		$	14,582		$	26,977		$	14,582