Commitments and Contingencies
Litigation: We are a party to legal proceedings and claims which arise during the ordinary course of business. We review our legal proceedings and claims, regulatory reviews and inspections, and other legal matters on an ongoing basis and follow appropriate accounting guidance when making accrual and disclosure decisions. We establish accruals for those contingencies when the incurrence of a loss is probable and can be reasonably estimated, and we disclose the amount accrued and the amount of a reasonably possible loss in excess of the amount accrued if such disclosure is necessary for our financial statements to not be misleading. We do not record an accrual when the likelihood of loss being incurred is probable, but the amount cannot be reasonably estimated, or when the loss is believed to be only reasonably possible or remote, although disclosures will be made for material matters as required by ASC 450-20, Contingencies - Loss Contingencies. Our assessment of whether a loss is reasonably possible or probable is based on our assessment and consultation with legal counsel regarding the ultimate outcome of the matter following all appeals.
For other unresolved legal proceedings or claims, we do not believe there is a reasonable probability that any material loss would be incurred. Accordingly, no material accrual or disclosure of a potential range of loss has been made related to these matters. We do not expect the ultimate liability of these unresolved legal proceedings or claims to have a material effect on our financial position, liquidity, or capital resources.
Warranties: See “Note 1. Nature of Business and Summary of Significant Accounting Policies” for more information regarding warranties.
Changes in our warranty obligation for the fiscal years ended April 26, 2025 and April 27, 2024 consisted of the following:
| | | | | | | | | | | |
| April 26, 2025 | | April 27, 2024 |
| Beginning accrued warranty obligations | $ | 37,928 | | | $ | 32,541 | |
| Warranties issued during the period | 13,733 | | | 14,422 | |
| Settlements made during the period | (13,795) | | | (12,600) | |
| Changes in accrued warranty obligations for pre-existing warranties during the period, including expirations | (2,036) | | | 3,565 | |
| Ending accrued warranty obligations | $ | 35,830 | | | $ | 37,928 | |
Performance guarantees: We have entered into standby letters of credit, bank guarantees, and surety bonds with financial institutions relating to the guarantee of our future performance on contracts, primarily construction-type contracts. As of April 26, 2025, we had $57,792 of bonded work outstanding and $3,393 in letters of credit outstanding. Performance guarantees are issued to certain customers to guarantee the operation and installation of the equipment and our ability to complete a contract. These performance guarantees have various terms but are generally one year. We enter into written agreements with our customers, and those agreements often contain indemnification provisions that require us to make the customer whole if certain acts or omissions by us cause the customer financial loss. We make efforts to negotiate reasonable caps and limitations on the recovery of such damages. As of April 26, 2025, we were not aware of any indemnification claim from a customer.
Purchase commitments: From time to time, we commit to purchase inventory, advertising, cloud-based information systems, information technology maintenance and support services, and various other products and services over periods that extend beyond one year. As of April 26, 2025, we were obligated under the following unconditional purchase commitments:
| | | | | | | | |
| Fiscal years ending | | Amount |
| 2026 | | $ | 11,413 | |
| 2027 | | 7,931 | |
| 2028 | | 87 | |
| 2029 | | 50 | |
| 2030 | | 50 | |
| Thereafter | | 50 | |
| | $ | 19,581 | |