Product Warranties

9 Months Ended

Apr. 30, 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 April 30,				Nine Months Ended April 30,
	2012		2011		2012		2011
Beginning balance	$	62,020	$	61,580	$	66,054	$	51,467
Provision		20,751		17,708		50,284		45,831
Payments		(15,333)		(14,790)		(48,900)		(42,979)
Heartland acquisition		–		–		–		10,179

Ending balance	$	67,438	$	64,498	$	67,438	$	64,498