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Liability for Warranty Returns
3 Months Ended
Mar. 31, 2021
Product Warranties Disclosures [Abstract]  
Liability for Warranty Returns

18. LIABILITY FOR WARRANTY RETURNS

Our products generally include warranties of 90 days to five years for product defects. We accrue for warranty returns at the time of product shipment based on our historical return rate and estimate of the cost to repair or replace the defective products. We engage in extensive product quality programs and processes, including actively monitoring and evaluating the quality of our component suppliers. The increasing complexity of our products may cause warranty incidences, when they arise, to be more costly. Estimates regarding future warranty obligations may change due to product failure rates, material usage and other rework costs incurred in correcting a product failure. In addition, from time to time, specific warranty accruals may be recorded if unforeseen problems arise. Should our actual experience relative to these factors be worse than our estimates, we will be required to record additional warranty expense. The liability for warranty obligations totaled $6.5 million and $7.1 million as of March 31, 2021 and December 31, 2020, respectively, and is included in accrued expenses and other liabilities in the Condensed Consolidated Balance Sheets. During the three months ended March 31, 2021, we had a reversal of prior provisions related to warranty expirations, the impact of which is reflected in the table below.

 

A reconciliation of warranty expense and related write-off activity is as follows:

 

 

 

Three Months Ended

 

 

 

March 31,

 

(In thousands)

 

2021

 

 

2020

 

Balance at beginning of period

 

$

7,146

 

 

$

8,394

 

Plus: Amounts charged to cost and expenses

 

 

(231

)

 

 

(55

)

Less: Deductions

 

 

(443

)

 

 

(704

)

Balance at end of period

 

$

6,472

 

 

$

7,635