PRODUCT WARRANTIES

6 Months Ended

Nov. 30, 2021

PRODUCT WARRANTIES

8. PRODUCT WARRANTIES

8. PRODUCT WARRANTIES

 The Company provides for the estimated cost of product warranties at the time revenues are recognized on the products shipped. While the Company engages in extensive product quality programs and processes, including actively monitoring and evaluating the quality of its component suppliers, the Company’s warranty obligation is affected by product failure rates, material usage and service delivery costs incurred in correcting a product failure. Should actual product failure rates, material usage or service delivery costs differ from the Company’s estimates, revisions to the estimated warranty liability would be required.

 The standard warranty period is one year for systems and ninety days for parts and service.

 The following is a summary of changes in the Company’s liability for product warranties during the three and six months ended November 30, 2021 and 2020 (in thousands):

	Three Months Ended November 30,						Six Months Ended November 30,
	2021			2020			2021			2020
Balance at the beginning of the period	$	505		$	330		$	494		$	246
Accruals for warranties issued during the period		95			113			257			192
Adjustments to previously existing warranty accruals		72			11			72			87
Consumption of reserves		(257	)		(210	)		(408	)		(281	)
Balance at the end of the period	$	415		$	244		$	415		$	244

 The accrued warranty balance is included in accrued expenses on the accompanying condensed consolidated balance sheets.