NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Warranty reserves:
Changes in the Company’s product warranty liability during the fiscal years ended April 30, 2006 and April 24, 2005, are as follows:
| 2006 | 2005 | ||||||
|---|---|---|---|---|---|---|---|
| (Amounts in thousands) | |||||||
| Balance at beginning of year | $ | 65,143 | $ | 53,921 | |||
| Warranties issued and changes in the estimated liability during the period |
86,981 | 102,210 | |||||
| Settlements made during the period | (85,001 | ) | (90,988 | ) | |||
| Balance at end of year | $ | 67,123 | $ | 65,143 | |||
Consolidated insurance subsidiary:
The insurance subsidiary was formed primarily for the purpose of insuring products liability risks of the parent company and its subsidiaries. Condensed financial information as of and for the fiscal years ended April 30, 2006, April 24, 2005, and April 25, 2004, for this subsidiary, excluding intercompany eliminations, is as follows:
| 2006 | 2005 | 2004 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| (Amounts in thousands) | |||||||||||
| Insurance subsidiary: Cash and investments |
$ | 22,920 | $ | 19,330 | $ | 18,595 | |||||
| Other assets | 15,406 | 19,385 | 20,489 | ||||||||
| Reserves for losses | 32,039 | 33,353 | 33,166 | ||||||||
| Other liabilities | 3,562 | 2,988 | 3,084 | ||||||||
| Net premiums | 6,353 | 7,672 | 5,401 | ||||||||
| Underwriting gain (loss) | 83 | (716 | ) | (867 | ) | ||||||
| Investment income | 767 | 429 | 349 | ||||||||
Other current liabilities:
Other current liabilities as of April 30, 2006 and April 24, 2005, consist of the following:
| 2006 | 2005 | ||||||
|---|---|---|---|---|---|---|---|
| (Amounts in thousands) | |||||||
| Dealer rebates | $ | 18,247 | $ | 16,261 | |||
| Accrued selling program expenses | 10,707 | 15,710 | |||||
| Accrued litigation settlements | 22,264 | 21,015 | |||||
| Other | 16,510 | 29,304 | |||||
| $ | 67,728 | $ | 82,290 | ||||
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:
| Foreign Currency Items |
Unrealized Gains (Losses) on Securities |
Accumulated Other Comprehensive Income (Loss) |
|||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| (Amounts in thousands) | |||||||||||
| Balance April 27, 2003 | $ | (2,069 | ) | $ | 3 | $ | (2,066 | ) | |||
| Foreign currency translation adjustment | 1,460 | — | 1,460 | ||||||||
| Unrealized holding gains | — | 64 | 64 | ||||||||
| Reclassification adjustment for gains included in net income, net of income taxes |
— | (21 | ) | (21 | ) | ||||||
| Net change | 1,460 | 43 | 1,503 | ||||||||
| 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 | |||||
Supplemental cash flow disclosures:
Supplemental cash flow disclosures for each of the three fiscal years in the period ended April 30, 2006 are as follows:
| 2006 | 2005 | 2004 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| (Amounts in thousands) | |||||||||||
| Interest paid | $ | 71,937 | $ | 11,817 | $ | 27,827 | |||||
| Income taxes paid | $ | 2,771 | $ | 4,845 | $ | 5,738 | |||||