WARRANTY OBLIGATIONS

3 Months Ended

Mar. 31, 2023

Product Warranties Disclosures [Abstract]

WARRANTY OBLIGATIONS

WARRANTY OBLIGATIONS

The Company’s warranty obligation activities were as follows:

		Three Months Ended March 31,
		2023		2022
	(In thousands)
Warranty obligations, beginning of period		$	131,446	$	73,377
Accruals for warranties issued during period		16,171		8,910
Changes in estimates		3,728		4,912
Settlements		(8,894)		(5,881)
Increase due to accretion expense		3,545		1,515
Other		38		746
Warranty obligations, end of period		146,034		83,579
Less: warranty obligations, current		(34,513)		(23,960)
Warranty obligations, non-current		$	111,521	$	59,619

Changes in Estimates

In the three months ended March 31, 2023, the Company recorded $3.7 million in warranty expense from change in estimates, of which $9.9 million related to continuing analysis of field performance data and diagnostic root-cause failure analysis primarily for Enphase IQ™ Battery storage systems and prior generation products, partially offset by $6.2 million related to a decrease in product replacement costs and labor reimbursement. In the three months ended March 31, 2022, the Company recorded $4.9 million in warranty expense from a change in estimates primarily related to increase in expedited freight costs and replacement costs for IQ batteries.