Warranties

3 Months Ended

Mar. 31, 2024

The Company’s Ergobaby, BOA and Velocity Outdoor operating segments estimate their exposure to warranty claims based on both current and historical product sales data and warranty costs incurred. The Company assesses the adequacy of its recorded warranty liability quarterly and adjusts the amount as necessary. Warranty liability is included in accrued expenses in the accompanying consolidated balance sheets. A reconciliation of the change in the carrying value of the Company’s warranty liability for the three months ended March 31, 2024 and the year ended December 31, 2023 is as follows (in thousands):


Warranty liability	Three months ended March 31, 2024		Year ended December 31, 2023

Beginning balance	$	1,375	$	1,530
Provision for warranties issued during the period	1,026		3,489
Fulfillment of warranty obligations	(626)		(3,644)
Ending balance	$	1,775	$	1,375