Accrued Expenses and Other Current Liabilities

3 Months Ended

Oct. 31, 2021

Accrued Expenses and Other Current Liabilities

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


	October 31, 2021		July 31, 2021
Accrued wages and benefits	$	23,599,000	26,367,000
Accrued warranty obligations	16,889,000		17,600,000
Accrued contract costs	13,682,000		12,750,000
Accrued acquisition-related costs	8,969,000		9,222,000
Accrued commissions and royalties	4,589,000		5,342,000
Accrued legal costs	2,596,000		2,854,000
Other	17,665,000		15,466,000
Accrued expenses and other current liabilities	$	87,989,000	89,601,000

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 acquisition-related costs as of October 31, 2021 and July 31, 2021 include $8,830,000 and $8,705,000, respectively, of contingent earn-out consideration related to our acquisition of UHP. See Note (2) - “Acquisitions - UHP Networks Inc.” for further discussion.

Accrued warranty obligations as of October 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 three months ended October 31, 2021 and 2020 were as follows:


	Three months ended October 31,
	2021		2020
Balance at beginning of period	$	17,600,000	15,200,000
Provision for warranty obligations	271,000		1,845,000

Charges incurred	(982,000)		(849,000)

Balance at end of period	$	16,889,000	16,196,000