Warranty

The Company recognizes the cost associated with its standard warranty on Engines and 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):



	Nine Months Ended
	April 1, 2012			March 27, 2011
Beginning Balance	$	45,995		$	41,945
Payments	(19,994		)	(21,860		)
Provision for Current Year Warranties	23,377			25,977
Changes in Estimates	(3,847		)	724
Ending Balance	$	45,531		$	46,786