Note G - Warranty

12 Months Ended

Jun. 30, 2024

Notes to Financial Statements

Product Warranty Disclosure [Text Block]

G. WARRANTY

The Company warrants all assembled products, parts (except component products or parts on which written warranties are issued by the respective manufacturers thereof and are furnished to the original customer, as to which the Company makes no warranty and assumes no liability) and service against defective materials or workmanship. Such warranty generally extends from periods ranging from 12 months to 24 months. The Company engages in extensive product quality programs and processes, including actively monitoring and evaluating the quality of its suppliers. However, its warranty obligation is affected by product failure rates, the number of units affected by the failure and the expense involved in satisfactorily addressing the situation. The warranty reserve is established based on the Company’s best estimate of the amounts necessary to settle future and existing claims on products sold as of the balance sheet date. When evaluating the adequacy of the reserve for warranty costs, management takes into consideration the term of the warranty coverage, historical claim rates and costs of repair, knowledge of the type and volume of new products and economic trends. While the Company believes that the warranty reserve is adequate and that the judgment applied is appropriate, such amounts estimated to be due and payable in the future could differ materially from what actually transpires. The following is a listing of the activity in the warranty reserve during the years ended June 30:

	2024			2023
Reserve balance, July 1	$	3,476		$	3,329
Current period expense and adjustments		5,850			2,451
Payments or credits to customers		(5,102	)		(2,268	)
Translation adjustment		(4	)		(36	)
Reserve balance, June 30	$	4,220		$	3,476

The current portion of the warranty accrual ($3,341 and $2,970 at June 30, 2024 and 2023, respectively) is reflected in accrued liabilities, while the long-term portion ($879 and $506 at June 30, 2024 and 2023, respectively) is included in other long-term liabilities on the consolidated balance sheets.