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PRODUCT WARRANTY
 12 Months Ended
Jul. 31, 2014
PRODUCT WARRANTY

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

 

           2014                  2013                  2012        

Beginning balance

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

Provision

      92,809         93,374         74,491   

Payments

      (87,402)         (78,513)         (67,265)   

Acquisitions

      5,281         –         –   

Discontinued operations reclassification

      –         (3,891)         –   
  

 

 

     

 

 

     

 

 

  

Ending balance

    $ 94,938       $ 84,250       $ 73,280