Product Warranties

6 Months Ended

Jan. 31, 2012

10.

Product Warranties

The Company generally provides retail customers of its products with a one-year warranty covering defects in material or workmanship, with longer warranties of up to five years on certain structural components. The Company records a liability based on its best estimate of the amounts necessary to settle future and existing claims on products sold as of the balance sheet date. Factors used in estimating the warranty liability include a history of units sold, existing dealer inventory, average cost incurred and a profile of the distribution of warranty expenditures over the warranty period. Management believes that the warranty reserve is adequate. However, actual claims incurred could differ from estimates, requiring adjustments to the reserves. Warranty reserves are reviewed and adjusted on a quarterly basis.

Changes in our product warranty reserves are as follows:


	Three Months Ended January 31,				Six Months Ended January 31,
	2012		2011		2012		2011
Beginning balance	$	66,322		$ 62,474	$	66,054	$	51,467
Provision		12,461		13,757		29,533		28,123
Payments		(16,763)		(14,651)		(33,567)		(28,189)
Heartland acquisition		–		–		–		10,179

Ending balance	$	62,020		$ 61,580	$	62,020	$	61,580