Commitments and Contingent Liabilities

3 Months Ended

Sep. 30, 2022

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingent Liabilities

Commitments and Contingent Liabilities

Guarantees:

Standby letters of credit were issued to lessors and insurance institutions and can only be drawn upon in the event of our failure to pay our obligations to a beneficiary. As of September 30, 2022, we had a maximum financial exposure from unused standby letters of credit totaling $1.8 million.

We are not aware of circumstances that would require us to perform under these arrangements and believe that the resolution of any claims that might arise in the future, either individually or in the aggregate, would not materially affect our Condensed Consolidated Financial Statements. Accordingly, no liability has been recorded as of September 30, 2022 with respect to the standby letters of credit. We also enter into commercial letters of credit to facilitate payments to vendors and from customers.

Product Warranties:

We provide an assurance-type warranty that guarantees our product complies with agreed-upon specifications. This warranty is not sold separately and does not convey any additional services to the customer. We estimate product warranty liability at the time of sale based on historical repair or replacement cost trends in conjunction with the length of the warranty offered. Management refines the warranty liability periodically based on changes in historical cost trends and in certain cases where specific warranty issues become known. The product warranty liability is included on the Accrued Expenses and Other lines of our Condensed Consolidated Balance Sheets.

Changes in the product warranty accrual for the three months ended September 30, 2022 and 2021 were as follows:

	Three Months Ended
	September 30
(Amounts in Thousands)	2022		2021
Product Warranty Liability at the beginning of the period	$	2,530	$	2,861
Additions to warranty accrual (including changes in estimates)	1,196		18
Settlements made (in cash or in kind)	(1,055)		(376)
Product Warranty Liability at the end of the period	$	2,671	$	2,503