Warranties

3 Months Ended

Oct. 31, 2011

Warranties

Warranties

Note 9.                   Warranties

A summary of activity in the Company’s warranty reserves follows:

	Three Months Ended
	October 31,
	2011			2010
Beginning balance	$	2,083,000		$	1,181,000
Acquisitions	—			10,000
Provisions	953,000			611,000
Charges	(867,000		)	(515,000		)
Foreign currency translation	(2,000		)	—
Ending balance	$	2,167,000		$	1,287,000

The warranty provisions and charges for the three months ended October 31, 2011 and 2010 relate principally to the Company’s endoscopy and water purification products. The increase in the provisions and charges is primarily a function of the significant increase in sales volume of our Endoscopy capital equipment for the three months ended October 31, 2011, compared with the three months ended October 31, 2010, including certain warranty issues on new endoscopy products. Warranty reserves are included in accrued expenses in the Condensed Consolidated Balance Sheets.