XML 32 R18.htm IDEA: XBRL DOCUMENT
v3.22.0.1

Note 11 - Product Warranty Obligations | 12 Months Ended
--- | ---
Dec. 31, 2021
Notes to Financial Statements |
Product Warranty Disclosure [Text Block] |
11. | Product Warranty Obligations
The Company records a liability for standard product warranty obligations accounted for as assurance warranties at the time of sale to a customer based upon historical warranty experience. The Company also records a liability for specific warranty matters when they become known and are reasonably estimable. The following is a tabular reconciliation of the Company’s standard product warranty liability accounted for as an assurance warranty:
|  | Year Ended December 31, |
|  | 2021 |  |  | 2020 |  |  | 2019 |
Balance at beginning of period |  | $ | 59,218 |  |  | $ | 49,316 |  |  | $ | 41,785 |
Product warranty reserve assumed in acquisition |  |  | 3,932 |  |  |  | 124 |  |  |  | 1,062 |
Payments |  |  | (42,682 | ) |  |  | (33,496 | ) |  |  | (26,096 | )
Provision for warranty issued |  |  | 69,280 |  |  |  | 42,093 |  |  |  | 32,060 |
Changes in estimates for pre-existing warranties |  |  | 4,465 |  |  |  | 1,181 |  |  |  | 505 |
Balance at end of period |  | $ | 94,213 |  |  | $ | 59,218 |  |  | $ | 49,316 |
The Company also sells extended warranty coverage for certain products, which it accounts for as a service warranty. The sales of extended warranties are recorded as deferred revenue, and typically have a duration of five to ten years. The deferred revenue related to extended warranty coverage is amortized over the duration of the extended warranty contract period, following the standard warranty period, using the straight-line method. The Company believes the straight-line method is appropriate because the performance obligation is satisfied based on the passage of time. The amortization of deferred revenue is recorded to net sales in the consolidated statements of comprehensive income. The following is a tabular reconciliation of the deferred revenue related to extended warranty coverage:
|  | Year Ended December 31, |
|  | 2021 |  |  | 2020 |  |  | 2019 |
Balance at beginning of period |  | $ | 89,788 |  |  | $ | 78,738 |  |  | $ | 68,340 |
Extended warranty contracts issued |  |  | 41,560 |  |  |  | 26,968 |  |  |  | 24,483 |
Amortization of extended warranty contracts |  |  | (19,701 | ) |  |  | (15,918 | ) |  |  | (14,085 | )
Balance at end of period |  | $ | 111,647 |  |  | $ | 89,788 |  |  | $ | 78,738 |
The timing of recognition of the Company’s deferred revenue balance related to extended warranties at December 31, 2021 is as follows:
2022 |  | $ | 21,210 |
2023 |  |  | 22,051 |
2024 |  |  | 19,282 |
2025 |  |  | 15,413 |
After 2025 |  |  | 33,691 |
Total |  | $ | 111,647 |
The Company has a post-sale extended warranty marketing program with a third party. In the program’s agreement, the Company is required to pay fees to the third-party service provider based on the number of extended warranty contracts that they sell, which it classifies as costs to obtain a contract. These fees are deferred and recorded as other assets in the consolidated balance sheets, and then amortized to net sales in the consolidated statements of comprehensive income over the same period that the underlying deferred revenue is recognized. The balance of deferred contract costs as of December 31, 2021 and 2020 was $8,479 and $6,869, respectively. Amortization of deferred contract costs recorded during the years ended December 31, 2021, 2020 and 2019 was $1,739, $1,303 and $869, respectively. Standard product warranty obligations and extended warranty related deferred revenues are included in the consolidated balance sheets as follows:
|  | December 31, |
|  | 2021 |  |  | 2020 |
Product warranty liability |  |  |  |  |  |  |  |
Current portion - other accrued liabilities |  | $ | 59,052 |  |  | $ | 37,417 |
Long-term portion - other long-term liabilities |  |  | 35,161 |  |  |  | 21,801 |
Total |  | $ | 94,213 |  |  | $ | 59,218 |
Deferred revenue related to extended warranties |  |  |  |  |  |  |  |
Current portion - other accrued liabilities |  | $ | 20,556 |  |  | $ | 18,857 |
Long-term portion - other long-term liabilities |  |  | 91,091 |  |  |  | 70,931 |
Total |  | $ | 111,647 |  |  | $ | 89,788 |

X
- References No definition available. + Details
Name: | us-gaap_DisclosureTextBlockAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for standard and extended product warranties and other product guarantee contracts, including a tabular reconciliation of the changes in the guarantor's aggregate product warranty liability for the reporting period. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 460 -URI http://asc.fasb.org/topic&trid=2155896 + Details
Name: | us-gaap_ProductWarrantyDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration