(8) Accrued Expenses and Other Current Liabilities

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



	October 31, 2013		July 31, 2013
Accrued wages and benefits	$	8,092,000	11,526,000
Accrued warranty obligations	7,935,000		7,797,000
Accrued commissions and royalties	4,324,000		4,206,000
Accrued business acquisition payments	43,000		288,000
Other	5,789,000		6,075,000
Accrued expenses and other current liabilities	$	26,183,000	29,892,000

Accrued Warranty Obligations

We provide warranty coverage for most of our products for a period of at least one year from the date of shipment. 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.

Changes in our product warranty liability were as follows:



	Three months ended October 31,
	2013			2012
Balance at beginning of period	$	7,797,000		7,883,000
Provision for warranty obligations	1,983,000			2,237,000
Charges incurred	(1,845,000		)	(1,610,000	)
Balance at end of period	$	7,935,000		8,510,000

Accrued Business Acquisition Payments

In October 2010, we acquired the WAN optimization technology assets and assumed certain liabilities of Stampede for an estimated total purchase price of approximately $5,303,000, including the initial fair value of contingent earn-out payments which aggregated $3,803,000. Almost all of the purchase price for Stampede was allocated to the estimated fair value of technologies acquired and was assigned an estimated amortizable life of five years.

During the three months ended October 31, 2013, the fair value of the contingent earn-out liability was reduced by $239,000 and, in November 2013, we made our final payment of $43,000. During the three months ended October 31, 2012, the fair value of the contingent earn-out liability was reduced by $2,378,000. These adjustments are reflected as a reduction to selling, general and administrative expenses in our Condensed Consolidated Statement of Operations for the respective periods.

There was no interest accreted on the contingent earn-out liability for the three months ended October 31, 2013. Interest accreted on the contingent earn-out liability was $108,000 for the three months ended October 31, 2012. Total interest accreted through October 31, 2013 was $986,000. As of October 31, 2013, we paid $1,822,000 of the total purchase price in cash, including $322,000 of earn-out payments.