NOTE N 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, 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
Accruals for warranties issued during the reporting period		5,002
Accruals related to pre-existing warranties (including changes in estimates)		(2,956	)
Less settlements made during the period		(10,861	)
Balance at July 31, 2012	$	10,905

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. These warranty matters are not expected to have a material impact on our results of operations, liquidity or financial position. There were no significant specific warranty matters accrued for in Fiscal 2012. The settlements made during Fiscal 2012 were primarily in relation to the three above mentioned matters.