Accrued Expenses and Other Current Liabilities

3 Months Ended

Oct. 31, 2022

Accrued Expenses and Other Current Liabilities

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


	October 31, 2022		July 31, 2022
Accrued wages and benefits	$	26,282,000	25,675,000
Accrued warranty obligations	9,394,000		9,420,000
Accrued contract costs	17,149,000		15,921,000

Accrued commissions and royalties	6,393,000		5,697,000
Accrued legal costs	2,724,000		2,514,000
Other	13,499,000		13,435,000
Accrued expenses and other current liabilities	$	75,441,000	72,662,000

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 October 31, 2022 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 three months ended October 31, 2022 and 2021 were as follows:


	Three months ended October 31,
	2022		2021
Balance at beginning of period	$	9,420,000	17,600,000
Provision for warranty obligations	409,000		271,000

Charges incurred	(435,000)		(982,000)


Balance at end of period	$	9,394,000	16,889,000