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Liability for Warranty Returns
9 Months Ended
Sep. 30, 2022
Product Warranties Disclosures [Abstract]  
Liability for Warranty Returns

19. LIABILITY FOR WARRANTY RETURNS

The Company's products generally include warranties of 90 days to five years for product defects. The Company accrues for warranty returns at the time of product shipment based on its historical return rate and estimate of the cost to repair or replace the defective products. The Company engages in extensive product quality programs and processes, including actively monitoring and evaluating the quality of its component suppliers. The increasing complexity of the Company's 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 the Company's actual experience relative to these factors be worse than its estimates, the Company will be required to record additional warranty expense. The liability for warranty obligations totaled $8.6 million and $5.4 million as of September 30, 2022 and December 31, 2021, respectively, and is included in accrued expenses and other liabilities in the Condensed Consolidated Balance Sheets. During the three months ended September 30, 2021, the Company had a net reversal of prior provisions related to warranty expirations the impact of which is reflected in the table below. The warranty expense and write-off activity for the three and nine months ended September 30, 2022 and 2021 are summarized as follows:

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30,

 

 

September 30,

 

(In thousands)

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Balance at beginning of period

 

$

4,842

 

 

$

5,997

 

 

$

5,403

 

 

$

7,146

 

Plus: ADVA acquisition

 

 

3,756

 

 

 

 

 

 

3,756

 

 

 

 

Plus: Amounts charged to cost and expenses

 

 

616

 

 

 

472

 

 

 

1,727

 

 

 

253

 

Less: Deductions

 

 

(613

)

 

 

(822

)

 

 

(2,285

)

 

 

(1,752

)

Balance at end of period

 

$

8,601

 

 

$

5,647

 

 

$

8,601

 

 

$

5,647