Product Warranties

9 Months Ended

Apr. 30, 2016

Product Warranties

11. 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 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 April 30,						Nine Months Ended April 30,
	2016			2015			2016			2015
Beginning balance	$	106,260		$	102,048		$	108,206		$	94,938
Provision		33,853			31,995			85,369			88,225
Payments		(27,492	)		(26,685	)		(80,954	)		(80,469	)
Acquisitions		—			400			—			5,064
Ending balance	$	112,621		$	107,758		$	112,621		$	107,758