XML 28 R18.htm IDEA: XBRL DOCUMENT v3.8.0.1
Warranty Guarantees
6 Months Ended
May 04, 2018
Product Warranties Disclosures [Abstract]  
Warranty Guarantees
Warranty Guarantees

The company’s products are warranted to ensure customer confidence in design, workmanship, and overall quality. Warranty coverage is generally 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. Warranty expense is accrued at the time of sale based 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, the historical length of time between the sale and resulting warranty claim, and other minor factors. Special warranty reserves are also accrued for major rework campaigns. Service support outside of the warranty period is provided by authorized distributors and dealers at the customer's expense. The company sells extended warranty coverage on select products for a prescribed period after the original warranty period expires.

The changes in accrued warranties were as follows:
 
 
Three Months Ended
 
Six Months Ended
(Dollars in thousands)
 
May 4,
2018
 
May 5,
2017
 
May 4,
2018
 
May 5,
2017
Beginning balance
 
$
74,885

 
$
72,573

 
$
74,155

 
$
72,158

Warranty provisions
 
17,219

 
17,180

 
27,789

 
26,795

Warranty claims
 
(8,876
)
 
(8,507
)
 
(18,716
)
 
(18,301
)
Changes in estimates
 
1,040

 
747

 
1,040

 
1,341

Ending balance
 
$
84,268

 
$
81,993

 
$
84,268

 
$
81,993