Product Warranties

3 Months Ended

Oct. 31, 2011

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:

		$66,3220		$66,3220
	Three Months Ended October 31, 2011		Three Months Ended October 31, 2010
Beginning balance	$	66,054	$	51,467
Provision		17,072		14,366
Payments		(16,804)		(13,538)
Heartland acquisition		–		10,179

Ending balance	$	66,322	$	62,474