NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(2) Supplemental Financial Information (Continued)

Warranty reserves:

Changes in Fleetwood’s product warranty liability during the fiscal years ended April 29, 2007 and April 30, 2006, are as follows:

  2007   2006
  (Amounts in thousands)
Balance at beginning of year    $ 67,123         $ 65,143     
Warranties issued and changes in the estimated liability during the
   period		   78,147     86,981  
Settlements made during the period   (76,091 )    (85,001 ) 
Balance at end of year $ 69,179   $ 67,123  

Consolidated insurance subsidiary:

The insurance subsidiary was formed primarily for the purpose of insuring products liability risks and, to a lesser extent, workers’ compensation risks of the parent company and its subsidiaries. Condensed financial information as of and for the fiscal years ended April 29, 2007, April 30, 2006, and April 24, 2005, for this subsidiary, excluding intercompany eliminations, is as follows:

  2007   2006   2005
  (Amounts in thousands)
Insurance subsidiary:
   Cash and investments		    $ 23,829         $ 22,920         $ 19,330     
   Other assets   12,595     15,406     19,385  
   Reserves for losses   27,649     32,039     33,353  
   Other liabilities   4,951     3,562     2,988  
   Net premiums   6,380     6,353     7,672  
   Underwriting gain (loss)   3,792     83     (716 ) 
   Investment income   1,279     767     429  

Other current liabilities:

Other current liabilities as of April 29, 2007 and April 30, 2006, consist of the following:

  2007   2006
  (Amounts in thousands)
Incentive programs    $ 29,296         $ 28,954     
Accrued litigation settlements   23,085     22,264  
Other   17,589     16,510  
  $ 69,970   $ 67,728  

Accumulated other comprehensive loss:

The following reflects the balances and activity, net of income taxes, for the components of accumulated other comprehensive loss for the periods:

  Benefit
Plans		   Foreign
Currency
Items		   Unrealized
Gains (Losses)
on Securities		   Accumulated
Other
Comprehensive
Income (Loss)
  (Amounts in thousands)
Balance April 25, 2004    $ —         $ (609 )           $ 46               $ (563 )       
   Foreign currency translation adjustment         1,994     —     1,994  
   Unrealized holding gains   —     —     28     28  
   Reclassification adjustment for gains included in net
      income, net of income taxes		   —     —     (32 )    (32 ) 
   Net change   —     1,994     (4 )    1,990  
Balance April 24, 2005   —     1,385     42     1,427  
   Foreign currency translation adjustment         1,951     —     1,951  
   Unrealized holding gains   —     —     59     59  
   Reclassification adjustment for gains included in net
      income, net of income taxes		   —     —     (43 )    (43 ) 
   Net change   —     1,951     16     1,967  
Balance April 30, 2006   —     3,336     58     3,394  
   Foreign currency translation adjustment   —     469     —     469  
   Defined benefit transition adjustment   (2,059 )    —     —     (2,059 ) 
   Unrealized holding gains   —     —     291     291  
   Reclassification adjustment for gains included in net
      income, net of income taxes		   —     —     (33 )    (33 ) 
   Net change   (2,059 )    469     258     (1,332 ) 
Balance April 29, 2007 $ (2,059 )  $ 3,805   $ 316   $ 2,062  

Supplemental cash flow disclosures:

Supplemental cash flow disclosures for each of the three fiscal years in the period ended April 29, 2007 are as follows:

  2007   2006   2005
  (Amounts in thousands)
Interest paid    $ 21,345         $ 71,937         $ 11,817     
Income taxes paid $ 2,464   $ 2,771   $ 4,845