WARRANTY OBLIGATIONS

3 Months Ended

Mar. 31, 2022

Product Warranties Disclosures [Abstract]

The Company’s warranty activities were as follows:


	Three Months Ended March 31,
		2022		2021
		(In thousands)
Warranty obligations, beginning of period		$	73,377	$	45,913
Accruals for warranties issued during period		8,910		3,894

Changes in estimates		4,912		7,655
Settlements		(5,881)		(2,930)
Increase due to accretion expense		1,515		943

Other		746		(922)
Warranty obligations, end of period		83,579		54,553
Less: current portion		(23,960)		(14,303)
Non-current		$	59,619	$	40,250

Changes in Estimates

In the three months ended March 31, 2022, the Company recorded $4.9 million in warranty expense from change in estimates primarily related to increase in expedited freight costs and replacement costs for IQ batteries. In the three months ended March 31, 2021, the Company recorded a $6.3 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 $1.3 million in the three months ended March 31, 2021 related to unit costs for prior generation microinverter replacement mainly driven by tariffs.