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WARRANTY OBLIGATIONS
 12 Months Ended
Dec. 31, 2024
Product Warranties Disclosures [Abstract]  
WARRANTY OBLIGATIONS WARRANTY OBLIGATIONS
The Company’s warranty obligation activities were as follows:
Years Ended December 31,
202420232022
(In thousands)
Warranty obligations, beginning of period$189,087 $131,446 $73,377 
Accruals for warranties issued during period27,544 51,866 48,703 
Expense (benefit) from changes in estimates1,082 (19,176)29,275 
Settlements(27,611)(27,216)(26,257)
Increase due to accretion expense11,010 13,821 9,631 
Change in discount rate(1)
(459)44,422 (9,609)
Other(7,764)(6,076)6,326 
Warranty obligations, end of period192,889 189,087 131,446 
Less: warranty obligations, current(34,656)(36,066)(35,556)
Warranty obligations, non-current$158,233 $153,021 $95,890 
(1)    Refer to Note 11, “Fair Value Measurements” for additional information about the monetary impact for changes 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:
2024
In 2024, the Company recorded $1.1 million in warranty expense from changes in estimates, of which $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, $6.0 million for continuing analysis of field performance data and diagnostic root-cause failure analysis primarily related to prior generation products, $5.8 million from increase in product replacement costs due to increase in freight costs 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. This expense was partially offset by a benefit from $17.0 million related to a decrease in product replacement costs primarily associated with Enphase IQ Battery storage 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, and $4.4 million related to continuing analysis of field performance data and diagnostic root-cause failure analysis for early generations of the IQ Battery.
2023
In 2023, the Company recorded $19.2 million in warranty benefit from changes in estimates, of which $27.3 million related to a decrease in product replacement costs related to Enphase IQ Battery storage systems and accessories as the Company expanded its network of field service technicians in the United States, Europe and Australia to provide direct homeowner assistance, and $8.8 million related to a decrease in product replacement costs for all other products. This benefit was partially offset by $8.6 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 as well as continuing analysis of field performance data and diagnostic root-cause failure analysis primarily for prior generation products and $8.3 million for increasing the warranty period for the IQ Battery from 10 years to 15 years.
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 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 due to an increase in labor reimbursement rates.