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Accrued Expenses and Other Current Liabilities
12 Months Ended
Jul. 31, 2021
Accrued Liabilities, Current [Abstract]  
Accrued Expenses and Other Current Liabilities Accrued Expenses and Other Current Liabilities
Accrued expenses and other current liabilities consist of the following at July 31, 2021 and 2020:
 20212020
Accrued wages and benefits$26,367,000 20,857,000 
Accrued warranty obligations17,600,000 15,200,000 
Accrued contract costs12,750,000 15,306,000 
Accrued acquisition-related costs9,222,000 7,014,000 
Accrued commissions and royalties5,342,000 4,621,000 
Accrued legal costs2,854,000 2,539,000 
Other15,466,000 19,624,000 
Accrued expenses and other current liabilities$89,601,000 85,161,000 

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 acquisition-related costs as of July 31, 2021 include $8,705,000 of contingent earn-out consideration related to our acquisition of UHP. See Note (2) - “Acquisitions - UHP Networks Inc.” for further discussion.

Accrued warranty obligations as of July 31, 2021 relate to estimated liabilities for assurance type 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, consideration of contractual obligations, future costs to resolve software issues 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.

Changes in our accrued warranty obligations during the fiscal years ended July 31, 2021 and 2020 were as follows:
 20212020
Balance at beginning of year$15,200,000 15,968,000 
Provision for warranty obligations4,360,000 2,277,000 
Additions (in connection with acquisitions)750,000 1,000,000 
Charges incurred(2,710,000)(4,347,000)
Reclassification of non-current liabilities— 302,000 
Balance at end of year$17,600,000 15,200,000