Commitments and Contingencies

9 Months Ended

May 31, 2011

Commitments and Contingencies [Abstract]

Commitments and Contingencies

Note 6. Commitments and Contingencies

a. Legal Proceedings

     The Company is party to certain lawsuits in the ordinary course of business. The Company does not believe that these proceedings, individually or in the aggregate, will have a material adverse effect on the Company’s financial position, results of operations or cash flows.

b. Warranty Provision

     The Company maintains a provision for limited warranty repair of shipped products, which is established under the terms of specific manufacturing contract agreements. The warranty liability is included in accrued expenses on the Condensed Consolidated Balance Sheets. The warranty period varies by product and customer industry sector. The provision represents management’s estimate of probable liabilities, calculated as a function of sales volume and historical repair experience, for each product under warranty. The estimate is re-evaluated periodically for accuracy. A rollforward of the warranty liability for the nine months ended May 31, 2011 and 2010 is as follows (in thousands):

	Amount
Balance at August 31, 2010	$	10,828
Accruals for warranties		5,762
Warranty liabilities acquired		3,986
Settlements		(6,900	)
Balance at May 31, 2011	$	13,676

	Amount
Balance at August 31, 2009	$	14,280
Accruals for warranties		5,434
Settlements		(6,196	)
Balance at May 31, 2010	$	13,518