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Warranty Accruals
6 Months Ended
Feb. 28, 2019
Warranty Accruals
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

February 28,
 
 
Six Months Ended

February 28,
 
(In thousands)
 
2019
 
 
2018
 
 
2019
 
 
2018
 
Balance at beginning of period
 
$
26,264
 
 
$
21,952
 
 
$
27,395
 
 
$
20,737
 
Charged to cost of revenue, net
 
 
1,412
 
 
 
5,646
 
 
 
2,853
 
 
 
7,599
 
Payments
 
 
(2,612
)
 
 
(1,089
)
 
 
(4,796
)
 
 
(1,840
)
Currency translation effect
 
 
(70
)
 
 
468
 
 
 
(458
)
 
 
481
 
Balance at end of period
 
$
24,994
 
 
$
26,977
 
 
$
24,994
 
 
$
26,977