Accrued Expenses and Other Current Liabilities

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



	January 31, 2017		July 31, 2016
Accrued wages and benefits	$	23,395,000	23,394,000
Accrued legal costs	19,909,000		32,469,000
Accrued warranty obligations	19,014,000		15,362,000
Accrued acquisition-related costs	—		2,119,000
Accrued contract costs	10,687,000		8,348,000
Accrued commissions and royalties	3,233,000		3,473,000
Other	12,557,000		12,869,000
Accrued expenses and other current liabilities	$	88,795,000	98,034,000

Accrued legal costs as of January 31, 2017 and July 31, 2016 include $14,758,000 and $28,112,000, respectively, related to estimated costs associated with certain TCS intellectual property matters. The amount accrued as of January 31, 2017 does not reflect our settlement position or amounts we actually may pay. Ongoing legal expenses associated with defending these legacy TCS intellectual property legal proceedings and their 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. During the three months ended January 31, 2017, we finalized our estimated fair value for this pre-acquisition contingent liability and, as a result, we recorded an increase of $4,200,000 to accrued warranty obligations. In aggregate, $10,595,000 of accrued warranty obligations as of January 31, 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 six months ended January 31, 2017 and 2016 were as follows:



	Six months ended January 31,
	2017			2016
Balance at beginning of period	$	15,362,000		8,638,000
Provision for warranty obligations	3,234,000			2,096,000
Adjustment to TCS pre-acquisition contingent liability	4,200,000			—
Charges incurred	(3,782,000		)	(2,110,000	)
Balance at end of period	$	19,014,000		8,624,000