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WARRANTY OBLIGATIONS | 12 Months Ended
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Dec. 31, 2023
Product Warranties Disclosures [Abstract] |
WARRANTY OBLIGATIONS | WARRANTY OBLIGATIONS The Company’s warranty obligation activities were as follows:
|  |  | Years Ended December 31,
|  |  |  |  | 2023 |  | 2022 |  | 2021
|  |  |  |  | (In thousands)
Warranty obligations, beginning of period |  |  |  |  | $ | 131,446 |  |  | $ | 73,377 |  |  | $ | 45,913 |
Accruals for warranties issued during period |  |  |  |  | 51,866 |  |  | 48,703 |  |  | 18,098 |
Expense (benefit) from changes in estimates |  |  |  |  | (19,176) |  |  | 29,275 |  |  | 19,414 |
Settlements |  |  |  |  | (27,216) |  |  | (26,257) |  |  | (15,073) |
Increase due to accretion expense |  |  |  |  | 13,821 |  |  | 9,631 |  |  | 4,654 |
Change in discount rate(1) |  |  |  |  | 44,422 |  |  | (9,609) |  |  | 2,512 |
Other |  |  |  |  | (6,076) |  |  | 6,326 |  |  | (2,141) |
Warranty obligations, end of period |  |  |  |  | 189,087 |  |  | 131,446 |  |  | 73,377 |
Less: warranty obligations, current |  |  |  |  | (36,066) |  |  | (35,556) |  |  | (19,395) |
Warranty obligations, non-current |  |  |  |  | $ | 153,021 |  |  | $ | 95,890 |  |  | $ | 53,982 |
(1) Refer to Note 11, “Fair Value Measurements” for additional information about the monetary impact for change in the discount rate. 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: 2023 In 2023, the Company recorded $19.2 million in warranty benefit from change in estimates, of which $27.3 million related to a decrease in product replacement costs related to Enphase IQ Battery storage systems and accessories and $8.8 million related to decrease in product replacement costs for all other products, partially offset by $8.3 million for increasing the warranty period for the Enphase IQ Battery from 10 years to 15 years, and by $8.6 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. 2022 In 2022, the Company recorded $29.3 million in warranty expense from changes in estimates, of which $18.3 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, $7.0 million related to an increase in expedited freight costs and replacement costs, and $4.0 million was due to an increase in labor reimbursement rates. 2021 In 2021, the Company recorded $19.4 million in warranty expense from changes in estimates, of which $11.6 million related to continuing analysis of field performance data and diagnostic root-cause failure analysis, primarily relating to its prior generation products, and $7.8 million related to the timing of cost reduction assumptions for replacement products as the Company prioritized servicing current sales demand and the increase in component costs due to global supply constraints.

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