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Note F - Warranty

12 Months Ended

Jun. 30, 2021

Product Warranty Disclosure [Text Block]

F. WARRANTY

The Company warrants all assembled products, parts (except component products or parts on which written warranties are issued by the respective manufacturers thereof and are furnished to the original customer, as to which the Company makes no warranty and assumes no liability) and service against defective materials or workmanship. Such warranty generally extends from periods ranging from 12 months to 24 months. The Company engages in extensive product quality programs and processes, including actively monitoring and evaluating the quality of its suppliers. However, its warranty obligation is affected by product failure rates, the number of units affected by the failure and the expense involved in satisfactorily addressing the situation. The warranty reserve is established based on the Company’s best estimate of the amounts necessary to settle future and existing claims on products sold as of the balance sheet date. When evaluating the adequacy of the reserve for warranty costs, management takes into consideration the term of the warranty coverage, historical claim rates and costs of repair, knowledge of the type and volume of new products and economic trends. While the Company believes that the warranty reserve is adequate and that the judgment applied is appropriate, such amounts estimated to be due and payable in the future could differ materially from what actually transpires. The following is a listing of the activity in the warranty reserve during the years ended June 30:

	2021			2020

Reserve balance, July 1	$	4,460		$	3,736
Current period expense and adjustments		3,590			10,369
Payments or credits to customers		(3,742	)		(9,629	)
Translation adjustment		61			(16	)
Reserve balance, June 30	$	4,369		$	4,460

Included in current period expense and adjustments in the year ended June 30, 2020 is a non-recurring warranty charge in the amount of $6,233 to accrue for estimated costs to resolve a unique product performance issue at certain installations.

The current portion of the warranty accrual ($3,448 and $3,520 for fiscal 2021 and 2020, respectively) is reflected in accrued liabilities, while the long-term portion ($921 and $940 for fiscal 2021 and 2020, respectively) is included in other long-term liabilities on the consolidated balance sheets.