Accrued Expenses and Other Current Liabilities

6 Months Ended

Jan. 31, 2021

Accrued Expenses and Other Current Liabilities

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


	January 31, 2021		July 31, 2020
Accrued wages and benefits	$	26,623,000	20,857,000
Accrued contract costs	13,240,000		15,306,000
Accrued warranty obligations	16,674,000		15,200,000
Accrued legal costs	2,986,000		2,539,000
Accrued commissions and royalties	5,225,000		4,621,000
Accrued acquisition plan expenses	3,376,000		7,014,000
Other	11,061,000		19,624,000
Accrued expenses and other current liabilities	$	79,185,000	85,161,000

Accrued contract costs represent 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 warranty obligations as of January 31, 2021 relate to estimated liabilities for assurance type 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, consideration of contractual obligations, future costs to resolve software issues 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 accrued warranty obligations during the six months ended January 31, 2021 and 2020 were as follows:


	Six months ended January 31,
	2021		2020
Balance at beginning of period	$	15,200,000	15,968,000
Provision for warranty obligations	2,329,000		1,937,000
Additions (in connection with acquisitions)	500,000		1,000,000
Charges incurred	(1,355,000)		(2,479,000)
Reclassification from non-current liabilities	—		302,000
Balance at end of period	$	16,674,000	16,728,000