Warranty

12 Months Ended

Jul. 31, 2011

Warranty

Warranty

NOTE M Warranty

          The Company provides for warranties on certain products. In addition, the Company may incur specific Customer warranty issues. Following is a reconciliation of warranty reserves (in thousands of dollars):

Balance at July 31, 2009	$	9,215
Accruals for warranties issued during the reporting period		12,389
Accruals related to pre-existing warranties (including changes in estimates)		(1,244	)
Less settlements made during the period		(4,653	)
Balance at July 31, 2010	$	15,707
Accruals for warranties issued during the reporting period		8,406
Accruals related to pre-existing warranties (including changes in estimates)		7,735
Less settlements made during the period		(12,128	)
Balance at July 31, 2011	$	19,720

          During Fiscal 2011, the increase in warranty accruals was primarily due to three specific warranty matters: one in the Company's Retrofit Emissions Product group for $3.6 million, one in the Company's Off-Road Products group for $1.8 million, and one in the On-Road Product group for $4.1 million. These warranty accruals were partially offset by supplier and insurance recoveries of $4.2 million. During Fiscal 2010, the Company increased warranty accruals due to a specific warranty matter in our Retrofit Emissions Products group and recorded an expense of $6.2 million for this matter.