Product Warranties

9 Months Ended

Apr. 30, 2011

Product Warranties [Abstract]

Product Warranties

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. A significant increase in dealer shop rates, the cost of parts or the frequency of claims could have a material adverse impact on the Company’s operating results for the period or periods in which such claims or additional costs materialize. 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 as necessary on a quarterly basis.

Changes in our product warranty reserves are as follows:

	Three Months Ended						Nine Months Ended
	April 30,						April 30,
	2011			2010			2011			2010
Beginning Balance	$	61,580		$	43,123		$	51,467		$	41,717
Provisions		17,708			17,602			45,831			42,239
Payments		(14,790	)		(12,091	)		(42,979	)		(35,322	)
Acquisition		—			—			10,179			—
Ending Balance	$	64,498		$	48,634		$	64,498		$	48,634