Commitments And Contingencies

12 Months Ended

Jul. 31, 2012

Commitments And Contingencies [Abstract]

Commitments And Contingencies

NOTE O Commitments and Contingencies

          Operating Leases The Company enters into operating leases primarily for office and warehouse facilities, production and non-production equipment, automobiles, and computer equipment. Total expense recorded under operating leases for the periods ended July 31, 2012 and 2011 were $26.8 million and $24.3 million, respectively. Future commitments under operating leases are: $11.8 million in Fiscal 2013, $7.7 million in Fiscal 2014, $4.1 million in Fiscal 2015, $1.7 million in Fiscal 2016, $0.8 million in Fiscal 2017, and $0.4 million thereafter.

          Litigation The Company records provisions with respect to identified claims or lawsuits when it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. Claims and lawsuits are reviewed quarterly and provisions are taken or adjusted to reflect the status of a particular matter. The Company believes the recorded reserves in its consolidated financial statements are adequate in light of the probable and estimable outcomes. The recorded liabilities were not material to the Company's financial position, results of operations, or liquidity and the Company does not believe that any of the currently identified claims or litigation will materially affect its financial position, results of operations, or liquidity.

          The Company has reached a preliminary agreement to settle the class action lawsuits filed in 2008 alleging that 12 filter manufacturers, including the Company, engaged in a conspiracy to fix prices, rig bids, and allocate U.S. Customers for aftermarket automotive filters. The U.S. cases have been consolidated into a single multi-district litigation in the Northern District of Illinois. The Company denies any liability and has vigorously defended the claims raised in these lawsuits. The settlement will fully resolve all claims brought against the Company in the lawsuits and the Company does not admit any liability or wrongdoing. The settlement is still subject to Court approval and will not have a material impact on the Company's financial position, results of operations, or liquidity.