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WARRANTY OBLIGATIONS | 9 Months Ended
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Sep. 30, 2024
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,
| 2024 |  | 2023 |  | 2024 |  | 2023 |  |
| (In thousands)
Warranty obligations, beginning of period | $ | 177,179 |  |  | $ | 180,715 |  |  | $ | 189,087 |  |  | $ | 131,446 |  |  |
Accruals for warranties issued during period | 7,763 |  |  | 12,477 |  |  | 20,285 |  |  | 44,992 |  |  |
Expense (benefit) from changes in estimates | 4,584 |  |  | (1,983) |  |  | (8,052) |  |  | (8,618) |  |  |
Settlements | (6,615) |  |  | (6,283) |  |  | (21,114) |  |  | (20,269) |  |  |
Increase due to accretion expense | 2,649 |  |  | 3,157 |  |  | 8,244 |  |  | 10,609 |  |  |
Change in discount rate(1) | — |  |  | 2,811 |  |  | 759 |  |  | 34,608 |  |  |
Other | (1,328) |  |  | (2,028) |  |  | (4,977) |  |  | (3,902) |  |  |
Warranty obligations, end of period | 184,232 |  |  | 188,866 |  |  | 184,232 |  |  | 188,866 |  |  |
Less: warranty obligations, current | (35,755) |  |  | (40,750) |  |  | (35,755) |  |  | (40,750) |  |  |
Warranty obligations, non-current | $ | 148,477 |  |  | $ | 148,116 |  |  | $ | 148,477 |  |  | $ | 148,116 |  |  |
(1) Refer to Note 7, “Fair Value Measurements” for additional information about the monetary impact for change in the discount rate. Changes in Estimates In the three months ended September 30, 2024, the Company recorded $4.6 million in warranty expense from changes in estimates, of which $8.4 million related to the Company proactively addressing certain component defects in a specific population of products that did not meet the Company’s high quality standards, $0.5 million related to increasing the warranty term to 20 years for microinverter units sold in Mexico, Columbia, Panama, Costa Rica, and nine Caribbean countries, partially offset by $4.3 million related to a decrease in product replacement costs for Enphase IQ Battery systems and related accessories as the Company expanded its network of field service technicians in the United States to provide direct homeowner assistance. In the three months ended September 30, 2023, the Company recorded $2.0 million in warranty benefit from changes in estimates, of which $9.2 million related to a decrease in product replacement costs for Enphase IQ Battery systems and related accessories as the Company expanded its network of field service technicians in the United States, Europe and Australia to provide direct homeowner assistance. This benefit was partially offset by $6.0 million related to the Company proactively addressing certain component defects in a specific population of products that did not meet the Company’s high quality standards, $0.7 million for continuing analysis of field performance data and diagnostic root-cause failure analysis for prior generation products, as well as $0.5 million related to an increase in product replacement costs for all other products. In the nine months ended September 30, 2024, the Company recorded $8.1 million in warranty benefit from changes in estimates, of which $15.5 million related to a decrease in product replacement costs primarily associated with Enphase IQ Battery systems and related accessories as the Company expanded its network of field service technicians in the United States, Europe, Australia to provide direct homeowner assistance, and $4.4 million related to continuing analysis of field performance data and diagnostic root-cause failure analysis for early generations of IQ Battery. This benefit was partially offset by $10.2 million related to the Company proactively addressing certain component defects in a specific population of products that did not meet the Company’s high quality standards, $1.1 million for continuing analysis of field performance data and diagnostic root-cause failure analysis for all other products, as well as $0.5 million related to increasing the warranty term to 20 years for microinverter units sold in Mexico, Columbia, Panama, Costa Rica and nine Caribbean countries. In the nine months ended September 30, 2023, the Company recorded $8.6 million in warranty benefit from changes in estimates, of which $29.7 million related to a decrease in product replacement costs related to Enphase IQ Battery systems and accessories as the Company expanded network of field service technicians in the United States, Europe and Australia to provide direct homeowner assistance, and $1.6 million related to a decrease in product replacement costs for all other products. This benefit was partially offset by $11.9 million related to the Company proactively addressing certain component defects in a specific population of products that did not meet the Company's high quality standards, $6.1 million for increasing the warranty period for Enphase IQ Battery from 10 years to 15 years, as well as $4.7 million related to continuing analysis of field performance data and diagnostic root-cause failure analysis primarily for prior generation products.

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