Note 13. Commitments and Contingencies

Litigation: We are a party to legal proceedings and claims which arise during the ordinary course of business. For unresolved legal proceedings or claims, we do not believe there is a reasonable probability that any material loss will be incurred. Accordingly, no material accrual or disclosure of a potential range of loss has been made related to these matters. We do not expect the ultimate liability of these unresolved legal proceedings or claims to have a material effect on our financial position, liquidity or capital resources.

Warranties: Changes in our warranty obligation for the three months ended August 3, 2019 consisted of the following:



	August 3, 2019
Beginning accrued warranty obligations	$	24,470
Warranties issued during the period	3,545
Settlements made during the period	(2,510		)
Changes in accrued warranty obligations for pre-existing warranties during the period, including expirations	(55		)
Ending accrued warranty obligations	$	25,450

Performance guarantees: We have entered into standby letters of credit and surety bonds with financial institutions relating to the guarantee of our future performance on contracts, primarily construction-type contracts. As of August 3, 2019, we had outstanding letters of credit and surety bonds in the amount of $17,248 and $21,758, respectively. Performance guarantees are issued to certain customers to guarantee the operation and installation of the equipment and our ability to complete a contract. These performance guarantees have various terms but are generally one year. We enter into written agreements with our customers, and those agreements often contain indemnification provisions that require us to make the customer whole if certain acts or omissions by us cause the customer financial loss. We make efforts to negotiate reasonable caps and limitations on the recovery of such damages. As of August 3, 2019, we were not aware of any indemnification claim from a customer.

Purchase commitments: From time to time, we commit to purchase inventory, advertising, cloud-based information systems, information technology maintenance and support services, and various other products and services over periods that extend beyond one year. As of August 3, 2019, we were obligated under the following unconditional purchase commitments:



Fiscal years ending	Amount
2020	$	3,254
2021	4,485
2022	2,692
2023	1,820
2024	113
Thereafter	153
	$	12,517