Commitments And Contingencies

12 Months Ended

Aug. 31, 2011

Commitments And Contingencies

Commitments And Contingencies

9. Commitments and Contingencies

a. Lease Agreements

The Company leases certain facilities under non-cancelable operating leases. Lease agreements may contain lease escalation clauses and purchase or renewal options. The Company recognizes scheduled lease escalation clauses over the course of the applicable lease term on a straight-line basis in the Consolidated Statements of Operations. The future minimum lease payments under non-cancelable operating leases at August 31, 2011 are as follows (in thousands):

Fiscal Year Ending August 31,	Amount
2012	$	56,271
2013		38,472
2014		27,827
2015		22,197
2016		16,135
Thereafter		41,459
Total minimum lease payments	$	202,361

Total operating lease expense was approximately $61.7 million, $50.7 million, and $59.7 million for fiscal years 2011, 2010 and 2009, respectively.

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 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 is as follows (in thousands):

	Amount
Balance at August 31, 2008	$	9,877
Accruals for warranties during the year		9,017
Settlements made during the year		(4,614	)
Balance at August 31, 2009	$	14,280
Accruals for warranties during the year		3,112
Settlements made during the year		(6,564	)
Balance at August 31, 2010	$	10,828
Accruals for warranties during the year		6,909
Warranty liabilities acquired		3,986
Settlements made during the year		(8,209	)
Balance at August 31, 2011	$	13,514

c. 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.