We offer a manufacturer’s warranty for the majority of our hardware products. The specific terms and conditions of warranty vary depending upon the products sold and the country in which we do business. We estimate the warranty costs based on historical claims experience and record a liability in the amount of such estimates at the time product revenue is recognized. We regularly assess

the adequacy of our recorded warranty liabilities and adjust the amounts as necessary. Activity in the product warranty liability, which is included in other accrued expenses in the accompanying consolidated balance sheet, is as follows:


(In thousands)	2024			2023			2022
Balance, beginning of the year	$	1,072		$	834		$	730
Provision for Warranty Expense		1,181			2,077			2,174
Cost of Warranty Repairs		(1,542	)		(1,839	)		(2,070	)
Balance, end of the year	$	711		$	1,072		$	834

During fiscal 2022, we incurred incremental costs because of a product quality issue with one of our vendors. As the result of discussions with the vendor, which was responsible for the product quality issue, we entered into an agreement whereby the vendor paid us $975,000 as partial reimbursement of the costs we incurred in supporting our customers with respect to the product quality issue. For the period ended January 31, 2022, we recorded this payment to offset cost of revenue in our PI segment for the product lines effected to partially reverse the accounting impact when the original costs of the quality issues were incurred.