Warranty reserve liability

12 Months Ended

Dec. 31, 2023

Guarantees and Product Warranties [Abstract]

Warranty reserve liability

Warranty reserve liability

We reserve estimated exposures on known claims, as well as on a portion of anticipated claims, for product warranty and rework cost, based on historical product liability claims. Claim costs are deducted from the accrual when paid. Factors that could have an impact on the warranty accrual in any given period include the following: changes in manufacturing quality, changes in product costs, changes in product mix and any significant changes in sales volume.

A rollforward of our warranty liability is as follows:

(In thousands)	2023		2022		2021
Balance at beginning of period	$	8,312	$	9,398	$	212
Warranty reserve acquired in the acquisition of Global Cooling	—		—		3,353
Provision for warranties⁽¹⁾	3,351		4,463		10,989
Settlements of warranty claims⁽¹⁾	(3,805)		(5,549)		(5,156)
Balance at end of period	$	7,858	$	8,312	$	9,398

(1)Both the Provision for warranties and Settlements of warranty claims balances include reclassifications of $1.6 million and $1.1 million for the years ended December 31, 2022 and 2021, respectively, to reflect changes in warranty utilization on pre-existing claims.