Warranty Accruals

3 Months Ended

Nov. 30, 2018

Note 8 – 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:


	Three Months Ended November 30,
(In thousands)	2018			2017
Balance at beginning of period	$	27,395		$	20,737
Charged to cost of revenue, net		1,441			1,953
Payments		(2,184	)		(751	)
Currency translation effect		(388	)		13

Balance at end of period	$	26,264		$	21,952