The Company records provisions when it is probable a liability has been incurred and the amount of the loss can be reasonably estimated. Claims and litigation are reviewed quarterly and provisions are taken or adjusted to reflect the status of a particular matter. The Company believes the estimated liability in its Consolidated Financial Statements for claims or litigation is adequate and appropriate for the probable and estimable outcomes. Liabilities recorded were not material to the Company’s financial position, results of operations or liquidity. The Company believes it is remote that the settlement of any of the currently identified claims or litigation will be materially in excess of what is accrued.

The Company is party to agreements that include deferred payment provisions representing potential milestone payments for former owners of acquired businesses. The provisions are made up of two general types of arrangements, contingent compensation and contingent consideration. A contingent compensation arrangement is contingent on the former owner’s future employment with the Company and the related amounts are recognized over the required employment period. A contingent consideration agreement is contingent on the achievement of certain revenue and manufacturing milestones, regardless of the former owners’ employment status. Contingent consideration was recorded as purchase consideration at the time of the initial acquisition based on the fair value of the estimated liability.


		Arrangement Liability				Maximum Payout (1)
	Balance Sheet Location	July 31, 2026		July 31, 2025		July 31, 2026		July 31, 2025		Expires in
Contingent compensation arrangements

Other	Accrued employee compensation and related taxes	$	0.2	$	0.2	$	0.2	$	0.2	FY27
Contingent consideration liability
Purilogics (2)	Other current liabilities, other long-term liabilities	$	9.0	$	9.8	$	20.0	$	21.0	FY27
Other (3)	Other current liabilities	$	—	$	1.5	$	—	$	1.5	FY26

(2)The decrease in the Purilogics’ contingent consideration liability in fiscal 2026 was primarily driven by a $1.0 million milestone payment, partially offset by a $0.2 million increase in the fair value based on the probability of achieving certain milestones during the twelve months ended July 31, 2026. The total contingent consideration paid as of July 31, 2026 was $6.0 million, of which $1.0 million was paid during fiscal 2026 and $5.0 million was paid during fiscal 2025 and 2024.

The Company estimates warranty expense on certain products at the time of sale using quantitative measures based on historical warranty claim experience and evaluation of specific customer warranty issues. The Company’s accrued warranty reserves were $6.7 million and $6.9 million as of July 31, 2026 and 2025, respectively. During the years ended July 31, 2026 and 2025, no accruals were recorded for any specific warranty matters that were individually or collectively material. During the year ended July 31, 2025, there was a $4.1 million specific reserve settled for one customer.