Accrued Expenses and Other Current Liabilities

Accrued expenses and other current liabilities consist of the following at:



	April 30, 2017		July 31, 2016
Accrued wages and benefits	$	23,300,000	23,394,000
Accrued legal costs	11,362,000		32,469,000
Accrued warranty obligations	18,223,000		15,362,000
Accrued acquisition-related costs	—		2,119,000
Accrued contract costs	6,240,000		8,348,000
Accrued commissions and royalties	3,118,000		3,473,000
Other	11,601,000		12,869,000
Accrued expenses and other current liabilities	$	73,844,000	98,034,000

Accrued legal costs as of April 30, 2017 and July 31, 2016 include $7,069,000 and $28,112,000, respectively, related to estimated costs associated with certain TCS intellectual property matters. Accrued legal costs as of April 30, 2017 include amounts payable for two TCS intellectual property matter settlements that have been finalized and an estimate of legal expenses and potential settlement costs related to one unresolved matter. The accrued potential settlement costs do not reflect the final amounts we may actually pay. Ongoing legal costs associated with defending the remaining legacy TCS intellectual property matter and its ultimate resolution could vary and have a material adverse effect on our future consolidated results of operations, financial position or cash flows. TCS intellectual property matters are discussed in more detail in Note (19) - "Legal Proceedings and Other Matters."

Accrued contract costs represent direct and indirect costs on contracts as well as estimates of amounts owed for invoices not yet received from vendors or reflected in accounts payable.

Accrued warranty obligations relate to estimated liabilities for warranty coverage that we provide to our customers. We generally provide warranty coverage for some of our products for a period of at least one year from the date of delivery. We record a liability for estimated warranty expense based on historical claims, product failure rates and other factors. Some of our product warranties are provided under long-term contracts, the costs of which are incorporated into our estimates of total contract costs.

Accrued warranty obligations include warranty obligations for a TCS 911 call handling software solution that was licensed to customers prior to our acquisition of TCS. In aggregate, $10,216,000 of accrued warranty obligations as of April 30, 2017 related to this contingent liability, net of charges incurred to date. This amount reflects a consideration of contractual obligations as well as an estimate of future costs to resolve software issues.

Changes in our product warranty liability during the nine months ended April 30, 2017 and 2016 were as follows:



	Nine months ended April 30,
	2017			2016
Balance at beginning of period	$	15,362,000		8,638,000
Provision for warranty obligations	4,147,000			3,183,000
Adjustment to TCS pre-acquisition contingent liability	4,200,000			154,000
Charges incurred	(5,486,000		)	(3,336,000	)
Balance at end of period	$	18,223,000		8,639,000