11.

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 reserves are adequate. However, actual claims incurred could differ from estimates, requiring adjustments to the reserves. Warranty reserves are reviewed and adjusted as necessary on at least a quarterly basis.

Changes in our product warranty reserves for continuing operations are as follows:


	Three Months Ended January 31,				Six Months Ended January 31,
	2014		2013		2014		2013
Beginning balance	$	86,530	$	74,191	$	84,250	$	69,604
Provision		18,701		19,588		41,193		42,945
Payments		(21,097)		(18,748)		(41,918)		(37,518)
Acquisitions		–		–		609		–

Ending balance	$	84,134	$	75,031	$	84,134	$	75,031