Accrued Expenses and Other Current Liabilities

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



	October 31, 2016		July 31, 2016
Accrued wages and benefits	$	24,113,000	23,394,000
Accrued legal costs	31,442,000		32,469,000
Accrued warranty obligations	14,984,000		15,362,000
Accrued acquisition-related costs	1,375,000		2,119,000
Accrued contract costs	8,909,000		8,348,000
Accrued commissions and royalties	2,918,000		3,473,000
Other	12,939,000		12,869,000
Accrued expenses and other current liabilities	$	96,680,000	$	98,034,000

Accrued legal costs as of October 31, 2016 and July 31, 2016 include $26,992,000 and $28,112,000, respectively, related to the preliminary estimated fair value associated with the pre-acquisition contingencies for certain TCS intellectual property matters as discussed in more detail in Note (19) - "Legal Proceedings and Other Matters." Accrued contract costs represents 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 acquisition-related costs as of October 31, 2016 and July 31, 2016 include change-in control payments and professional fees for financial and legal advisors.

Accrued warranty obligations relate to estimated liabilities for 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 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. Accrued warranty costs as of October 31, 2016 include $6,848,000 for pre-acquisition contingent liabilities related to TCS's 911 call handling software solution. The preliminary estimated fair value associated with TCS's 911 call handling software was determined using unobservable Level 3 inputs and was based on a review of contractual obligations and preliminary estimates of costs to enhance the software, which reflect significant management estimates and assumptions. Changes in our product warranty liability during the three months ended October 31, 2016 and 2015 were as follows:



	Three months ended October 31,
	2016			2015
Balance at beginning of period	$	15,362,000		8,638,000
Provision for warranty obligations	1,083,000			1,200,000
Charges incurred	(1,461,000		)	(1,136,000	)
Balance at end of period	$	14,984,000		8,702,000