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Warranties
9 Months Ended
Jul. 31, 2018
Guarantees [Abstract]  
Warranties

Note 8. Warranties

The Company’s products generally carry explicit warranties that extend from several months to several years, based on terms that are generally accepted in the marketplace. Selected components (such as engines, transmissions, tires, etc.) included in the Company’s end products may include warranties from original equipment manufacturers (“OEM”). These OEM warranties are passed on to the end customer of the Company’s products, and the customer deals directly with the applicable OEM for any issues encountered on those components.

Changes in the Company’s warranty liability consisted of the following:

 

 

 

Nine Months Ended

 

 

 

July 31,

2018

 

 

July 29,

2017

 

Balance at beginning of period

 

$

40.2

 

 

$

38.8

 

Warranty provisions

 

 

13.2

 

 

 

21.5

 

Settlements made

 

 

(19.7

)

 

 

(25.9

)

Warranties for current year acquisitions

 

 

1.4

 

 

 

3.3

 

Changes in liability of pre-existing warranties

 

 

(1.7

)

 

 

(2.7

)

Balance at end of period

 

$

33.4

 

 

$

35.0

 

 

Accrued warranty is classified in the Company’s consolidated balance sheets as follows:

 

 

 

July 31,

2018

 

 

October 31,

2017

 

Current liabilities

 

$

19.6

 

 

$

26.0

 

Other long-term liabilities

 

 

13.8

 

 

 

14.2

 

Total warranty liability

 

$

33.4

 

 

$

40.2

 

 

Provisions for estimated warranty and other related costs are recorded at the time of sale and are periodically adjusted to reflect actual experience. Certain warranty and other related claims involve matters of dispute that ultimately are resolved by negotiation, arbitration or litigation. At times, warranty issues arise that are beyond the scope of the Company’s historical experience. The potential liability for these issues is evaluated on a case by case basis.