Warranty

The Company recognizes the cost associated with its standard warranty on Engines and Products at the time of sale. The amount recognized is based on historical failure rates and current claim cost experience. The following is a reconciliation of the changes in accrued warranty costs for the reporting period (in thousands):



	Six Months Ended
	December 30, 2012			January 1, 2012
Beginning Balance	$	46,013		$	45,995
Payments	(14,760		)	(13,911		)
Provision for Current Year Warranties	13,724			14,696
Changes in Estimates	519			(1,145		)
Ending Balance	$	45,496		$	45,635