Warranty

The Company recognizes the cost associated with its standard warranty on Engines and Power Products at the time of sale. The amount recognized is based on historical failure rates and current claim cost experience. The following is a reconciliation of the changes in accrued warranty costs for the reporting period (in thousands):



	Three Months Ended
	October 2, 2011			September 26, 2010
Beginning Balance	$	45,995		$	41,945
Payments	(7,816		)	(7,737		)
Provision for Current Year Warranties	6,674			6,979
Changes in Estimates	(126		)	14
Ending Balance	$	44,727		$	41,201