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Product Warranty
 12 Months Ended
Jul. 31, 2013
Product Warranty

10.  PRODUCT WARRANTY

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.

 

           2013                  2012                  2011        

Beginning balance

     $         73,280        $         66,054        $         51,467   

Provision

      93,374         74,491         61,922   

Payments

      (78,513)         (67,265)         (57,514)   

Heartland acquisition

      –         –         10,179   

Discontinued operations reclassification

      (3,891)         –         –   
  

 

 

     

 

 

     

 

 

  

Ending balance

     $ 84,250        $ 73,280       $ 66,054