Product Warranties

3 Months Ended

Oct. 31, 2014

Product Warranties

12. 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. 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.

Changes in our product warranty reserves are as follows:

	Three Months Ended October  31,
	2014		2013
Beginning balance	$	94,938	$	84,250
Provision		29,461		22,492
Payments		(26,759)		(20,821)
Acquisitions		–		609
Ending balance	$	97,640	$	86,530