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, 2013 and 2012 (thousands of dollars):


	October 31,
	2013	2012
Beginning balance	$ 10,526	$ 10,905
Accruals for warranties issued during the reporting period	1,096	1,411
Accruals related to pre-existing warranties (including changes in estimates)	230	(337)
Less settlements made during the period	(1,640)	(915)
Ending balance	$ 10,212	$ 11,064

There were no significant specific warranty matters accrued for in the periods ended October 31, 2013 or 2012. The Company’s warranty matters are not expected to have a material impact on our results of operations, liquidity, or financial position.