Note J – Warranty

The Company estimates warranty expense using quantitative measures based on historical warranty claim experience and evaluation of specific Customer warranty issues. Following is a reconciliation of warranty reserves for the three months ended October 31, 2012 and 2011 (thousands of dollars):


	October 31,
	2012			2011
Beginning balance	$	10,905		$	19,720
Accruals for warranties issued during the reporting period		1,411			791
Accruals related to pre-existing warranties (including changes in estimates)		(337	)		(535	)
Less settlements made during the period		(915	)		(3,841	)
Ending balance	$	11,064		$	16,135

There were no significant specific warranty matters accrued for in the periods ended October 31, 2012 or 2011. The Company's warranty matters are not expected to have a material impact on our results of operations, liquidity, or financial position.