Product Warranty

9 Months Ended

Sep. 30, 2023

Product Warranty

Product Warranty

Note 10.  Product Warranty

We generally offer a one-year warranty for all of our systems, the terms and conditions of which vary depending upon the product sold. For all systems sold, we accrue a liability for the estimated cost of standard warranty at the time of system shipment and defer the portion of systems revenue attributable to the fair value of non-standard warranty. Costs for non-standard warranty are expensed as incurred. Factors that affect our warranty liability include the number of installed units, historical and anticipated product failure rates, material usage and service labor costs. We periodically assess the adequacy of our recorded liability and adjust the amount as necessary.

The changes in our standard product warranty liability are as follows:

	Nine months ended
	September 30,
	2023		2022
	(in thousands)
Balance at January 1 (beginning of year)	$	10,487	$	6,924
Warranties issued during the period		9,072		7,454
Settlements made during the period		(7,746)		(4,633)
Changes in estimate of liability for pre-existing warranties during the period		2,043		(78)
Balance at September 30 (end of period)	$	13,856	$	9,667
Amount classified as current	$	11,464	$	8,482
Amount classified as long-term (within other long-term liabilities)		2,392		1,185
Total warranty liability	$	13,856	$	9,667