Extended Maintenance Contracts

3 Months Ended

Mar. 31, 2024

Extended Maintenance Contracts

Extended Maintenance Contracts

3. Extended Maintenance Contracts

On a quarterly basis, we evaluate any potential losses related to our extended maintenance contracts for sales of equipment, related infrastructure and other that have been sold. The following table shows the roll forward of balances in

the accrual for loss contracts, including changes due to the provision for loss accrual, releases to service cost of sales, increase to loss accrual related to warrants, and foreign currency translation adjustment (in thousands):

	Three months ended		Year ended
	March 31, 2024		December 31, 2023
Beginning balance	$	137,853	$	81,066
Provision for loss accrual		15,111		85,375
Releases to service cost of sales		(11,936)		(29,713)
Increase to loss accrual related to customer warrants		634		971
Foreign currency translation adjustment		(93)		154
Ending balance	$	141,569	$	137,853

The Company increased its loss accrual to $141.6 million for the three months ended March 31, 2024 primarily due to continued cost increases of GenDrive labor, parts and related overhead coupled with new GenDrive contracts entered into requiring provisions to be set up. As a result, the Company increased its estimated projected costs.