Customer Related Liabilities

6 Months Ended

Jun. 30, 2025

Note 7 – Customer-Related Liabilities

Customer-related liabilities as of June 30, 2025 and December 31, 2024 primarily include liabilities for product warranty claims and deposits received on future orders. The Corporation provides a limited warranty on its products, known as an “assurance-type” warranty, and may issue credit notes or replace products free of charge for valid claims. A warranty is considered an assurance-type warranty if it provides the customer with assurance that the product will function as intended. Historically, warranty claims have been insignificant. The Corporation records a provision for estimated product warranties at the time the underlying sale is recorded. The provision is based on historical experience as a percentage of sales adjusted for probable and known claims.

Changes in the liability for product warranty claims consisted of the following:


	Three Months Ended June 30,						Six Months Ended June 30,
	2025			2024			2025			2024
Balance at beginning of the period	$	5,058		$	5,597		$	5,423		$	5,539
Satisfaction of warranty claims		(436	)		(292	)		(1,291	)		(686	)
Provision for warranty claims, net		691			(144	)		928			444
Other, primarily impact from changes in foreign currency exchange rates		266			14			519			(122	)
Balance at end of the period	$	5,579		$	5,175		$	5,579		$	5,175

Customer deposits represent amounts collected from, or invoiced to, a customer in advance of revenue recognition when necessary to secure the right to a specific product. The liability for customer deposits is reversed when the Corporation satisfies its performance obligations and control of the inventory transfers to the customer, typically when title transfers. The majority of performance obligations related to customer deposits are expected to be satisfied in less than one year. Performance obligations related to customer deposits expected to be satisfied beyond one year have been classified as a noncurrent liability on the condensed consolidated balance sheets.

Changes in customer deposits consisted of the following:


	Three Months Ended June 30,						Six Months Ended June 30,
	2025			2024			2025			2024
Balance at beginning of the period	$	23,085		$	18,198		$	21,503		$	13,078
Satisfaction of performance obligations		(9,411	)		(4,818	)		(19,247	)		(7,385	)
Receipt of additional deposits		3,420			5,429			14,789			13,133
Other, primarily impact from changes in foreign currency exchange rates		83			(2	)		132			(19	)
Balance at end of the period		17,177			18,807			17,177			18,807
Deposits - Other noncurrent liabilities		(3,613	)		(4,213	)		(3,613	)		(4,213	)
Deposits - Other current liabilities	$	13,564		$	14,594		$	13,564		$	14,594