Product Warranties

3 Months Ended

Sep. 30, 2015

Product Warranties Disclosures [Abstract]

Effective for model year 2016, the Company began providing a limited warranty for a period up to five years for both Malibu and Axis brand boats. For model years prior to 2016, the Company provided a limited warranty for a period of up to three years for its Malibu brand boats and two years for its Axis products. The Company’s standard warranties require the Company or its dealers to repair or replace defective products during such warranty period at no cost to the consumer. The Company estimates the costs that may be incurred under its basic limited warranty and records as a liability in the amount of such costs at the time the product revenue is recognized. Factors that affect the Company’s warranty liability include the number of units sold, historical and anticipated rates of warranty claims and cost per claim. The Company assesses the adequacy of its recorded warranty liabilities by brand on a quarterly basis and adjusts the amounts as necessary. The Company utilizes historical claims trends and analytical tools to assist in determining the appropriate warranty liability.

Changes in the Company’s product warranty liability were as follows:



	As of September 30, 2015			As of June 30, 2015
Beginning balance	$	6,610		$	6,164
Add: Additions to warranty provision	1,123			3,210
Additions for Australian acquisition	—			308
Adjustments to preexisting warranties	96			(514		)
Less: Warranty claims paid	(649		)	(2,558		)
Ending balance	$	7,180		$	6,610