XML 25 R14.htm IDEA: XBRL DOCUMENT v3.23.2
WARRANTY OBLIGATIONS
 6 Months Ended
Jun. 30, 2023
Product Warranties Disclosures [Abstract]  
WARRANTY OBLIGATIONS WARRANTY OBLIGATIONS
The Company’s warranty obligation activities were as follows:
Three Months Ended
June 30,		Six Months Ended
June 30,
2023202220232022
(In thousands)
Warranty obligations, beginning of period$146,034 $83,579 $131,446 $73,377 
Accruals for warranties issued during period16,344 11,311 32,515 20,221 
Changes in estimates(10,363)17,063 (6,635)21,975 
Settlements(5,092)(6,590)(13,986)(12,471)
Increase due to accretion expense3,907 1,828 7,452 3,343 
Change in discount rate(1)
31,797 (9,609)31,797 (9,609)
Other(1,912)(1,031)(1,874)(285)
Warranty obligations, end of period180,715 96,551 180,715 96,551 
Less: warranty obligations, current(36,686)(29,197)(36,686)(29,197)
Warranty obligations, non-current$144,029 $67,354 $144,029 $67,354 
(1)     See Note 7, “Fair Value Measurements” for additional information about the monetary impact for change in the discount rate.
Changes in Estimates
During the three months ended June 30, 2023, the Company recorded a $10.4 million decrease in warranty expense from change in estimates, of which $14.4 million related to a decrease in product replacement costs related to Enphase IQ™ Battery systems and $2.1 million related to decrease in product replacement costs for all other products, partially offset by $6.1 million for increasing the warranty period for the Enphase IQ Battery from 10 years to 15 years. During the three months ended June 30, 2022, the Company recorded $17.1 million in warranty expense from change in estimates, of which $13.3 million related to continuing analysis of field performance data and diagnostic root-cause failure analysis primarily for Enphase IQ Battery storage systems and $3.8 million due to an increase in labor reimbursement rates.
During the six months ended June 30, 2023, the Company recorded a $6.6 million decrease in warranty expense from change in estimates, of which $20.5 million related to a decrease in product replacement costs related to Enphase IQ Battery systems and $2.1 million related to decrease in product replacement costs for all other products, partially offset by $6.1 million for increasing the warranty period for the Enphase IQ Battery from 10 years to 15 years, and by $9.9 million related to continuing analysis of field performance data and diagnostic root-cause failure analysis primarily for Enphase IQ Battery storage systems and prior generation products. During the six months ended June 30, 2022, the Company recorded $22.0 million in warranty expense from change in estimates, of which $13.3 million related to continuing analysis of field performance data and diagnostic root-cause failure analysis primarily for Enphase IQ Battery storage systems, $4.9 million is related to an increase in expedited freight costs and replacement costs and $3.8 million due to an increase in labor reimbursement rates.