Product Warranty

12 Months Ended

Jul. 31, 2011

Product Warranty

Product Warranty

M.   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.

	Year Ended			Year Ended			Year Ended
	July 31, 2011			July 31, 2010			July 31, 2009
Beginning Balance		$            51,467			$          41,717			$        61,743
Provision		61,922			57,314			32,236
Payments		(57,514	)		(47,564	)		(52,262	)
Heartland acquisition		10,179			–			–
Ending Balance		$            66,054			$          51,467			$          41,717