XML 24 R14.htm IDEA: XBRL DOCUMENT v3.23.3
WARRANTY OBLIGATIONS
 9 Months Ended
Sep. 30, 2023
Product Warranties Disclosures [Abstract]  
WARRANTY OBLIGATIONS WARRANTY OBLIGATIONS
The Company’s warranty obligation activities were as follows:
Three Months Ended
September 30,		Nine Months Ended
September 30,
2023202220232022
(In thousands)
Warranty obligations, beginning of period$180,715 $96,551 $131,446 $73,377 
Accruals for warranties issued during period12,477 13,370 44,992 33,591 
Changes in estimates(1,983)927 (8,618)22,902 
Settlements(6,283)(6,539)(20,269)(19,010)
Increase due to accretion expense3,157 2,952 10,609 6,295 
Change in discount rate(1)
2,811 — 34,608 (9,609)
Other(2,028)(1,381)(3,902)(1,666)
Warranty obligations, end of period188,866 105,880 188,866 105,880 
Less: warranty obligations, current(40,750)(32,350)(40,750)(32,350)
Warranty obligations, non-current$148,116 $73,530 $148,116 $73,530 
(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 September 30, 2023, the Company recorded a $2.0 million decrease in warranty expense from change in estimates, of which $9.2 million related to decrease in product replacement costs for Enphase IQTM Battery storage systems and related accessories, partially offset for continuing analysis of field performance data and diagnostic root-cause failure analysis totaling $6.0 million for IQTM System Controller and $0.7 million of prior generation products, as well as $0.5 million related to increase in product replacement costs for all other products. During the three months ended September 30, 2022, the Company recorded $0.9 million in warranty expense from change in estimates related to continuing analysis of field performance data and diagnostic root-cause failure analysis primarily for Enphase IQ Battery storage systems.
During the nine months ended September 30, 2023, the Company recorded a $8.6 million decrease in warranty expense from change in estimates, of which $29.7 million related to a decrease in product replacement costs related to Enphase IQ Battery storage systems and accessories and $1.6 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 $16.6 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 nine months ended September 30, 2022, the Company recorded $22.9 million in warranty expense from change in estimates, of which $14.0 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, $4.9 million is related to an increase in expedited freight costs and replacement costs and $4.0 million due to an increase in labor reimbursement rates.