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WARRANTY OBLIGATIONS | 12 Months Ended
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Dec. 31, 2021
Product Warranties Disclosures [Abstract] |
WARRANTY OBLIGATIONS | WARRANTY OBLIGATIONS The Company’s warranty activities were as follows:
|  |  | Years Ended December 31,
|  |  |  |  | 2021 |  | 2020 |  | 2019
|  |  |  |  | (In thousands)
Warranty obligations, beginning of period |  |  |  |  | $ | 45,913 |  |  | $ | 37,098 |  |  | $ | 31,294 |
Accruals for warranties issued during period |  |  |  |  | 18,098 |  |  | 7,021 |  |  | 5,244 |
Changes in estimates |  |  |  |  | 19,414 |  |  | 9,954 |  |  | 8,591 |
Settlements |  |  |  |  | (15,073) |  |  | (12,811) |  |  | (10,881) |
Increase due to accretion expense |  |  |  |  | 4,654 |  |  | 3,255 |  |  | 2,326 |
Other |  |  |  |  | 371 |  |  | 1,396 |  |  | 524 |
Warranty obligations, end of period |  |  |  |  | 73,377 |  |  | 45,913 |  |  | 37,098 |
Less: current portion |  |  |  |  | (19,395) |  |  | (11,260) |  |  | (10,078) |
Non-current |  |  |  |  | $ | 53,982 |  |  | $ | 34,653 |  |  | $ | 27,020 |
Changes in Estimates On a quarterly basis, the Company uses the best and most complete underlying information available, following a consistent, systematic and rational methodology to determine its warranty obligations. The Company considers all available evidence to assess the reasonableness of all key assumptions underlying its estimated warranty obligations for each generation of microinverter. The changes in estimates discussed below resulted from consideration of new or additional information becoming available and subsequent developments. Changes in estimates included in the table above were comprised of the following: 2021 In 2021, the Company recorded $19.4 million in warranty expense from changes in estimates, of which $11.6 million relates to continuing analysis of field performance data and diagnostic root-cause failure analysis primarily relating to its prior generation products, and $7.8 million relates to the timing of cost reduction assumptions for replacement products as the Company prioritizes servicing current sales demand and the increase in component costs due to global supply constraints. 2020 In 2020, the Company recorded a $8.8 million increase to warranty expense based on continuing analysis of field performance data and diagnostic root-cause failure analysis primarily relating to its prior generation products. The Company also recorded additional warranty expense of $1.2 million related to unit costs for prior generation microinverter replacement driven by tariffs and labor reimbursement costs expected to be paid to third party installers performing replacement services. 2019 In 2019, the Company recorded a $5.5 million increase to warranty expense related to cost increases primarily driven by increased U.S. tariffs announced during 2019 for its products manufactured in China. The Company also recorded additional warranty expense of $3.1 million based on continuing analysis of field performance data and diagnostic root-cause failure analysis primarily relating to its second and third generation products, partially offset by improved failure rates for its IQ7 series.

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- 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
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