Accrued Expenses and Other Current Liabilities

9 Months Ended

Apr. 30, 2024

Accrued Expenses and Other Current Liabilities

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


	April 30, 2024		July 31, 2023
Accrued wages and benefits	$	18,060,000	21,994,000
Accrued contract costs	21,395,000		19,041,000
Accrued warranty obligations	6,992,000		8,285,000

Accrued commissions and royalties	4,948,000		4,659,000
Accrued legal costs	2,800,000		688,000
Other	10,674,000		12,323,000
Accrued expenses and other current liabilities	$	64,869,000	66,990,000

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 warranty obligations as of April 30, 2024 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 nine months ended April 30, 2024 and 2023 were as follows:


	Nine months ended April 30,
	2024		2023
Balance at beginning of period	$	8,285,000	9,420,000
Provision for warranty obligations	768,000		1,756,000
Adjustments for changes in estimates	(393,000)		(1,500,000)
Charges incurred	(1,250,000)		(1,436,000)

PST Divestiture	(418,000)		—
Balance at end of period	$	6,992,000	8,240,000