Warranty Guarantees

6 Months Ended

May 03, 2019

Product Warranties Disclosures [Abstract]

Warranty Guarantees

Warranty Guarantees

The company’s products are warranted to provide assurance that the product will function as expected and to ensure customer confidence in design, workmanship, and overall quality. Warranty coverage is generally provided 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. In addition to the standard warranties offered by the company on its products, the company also sells separately priced extended warranty coverage on select products for a prescribed period after the original warranty period expires. For additional information on the contract liabilities associated with the company's separately priced extended warranties, refer to Note 4, Revenue.

The changes in accrued warranties were as follows:

	Three Months Ended						Six Months Ended
(Dollars in thousands)	May 3, 2019			May 4, 2018			May 3, 2019			May 4, 2018
Beginning balance	$	76,745		$	74,885		$	76,214		$	74,155
Provisions	17,946			17,219			28,502			27,789
Acquisitions	14,272			—			14,272			—
Claims	(11,356		)	(8,876		)	(22,171		)	(18,716		)
Changes in estimates	(1,855		)	1,040			(1,065		)	1,040
Ending balance	$	95,752		$	84,268		$	95,752		$	84,268