Product Warranty

12 Months Ended

Dec. 31, 2024

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 product warranty liability are as follows:

	Year ended December 31,
	2024		2023		2022
	(in thousands)
Balance at January 1 (beginning of year)	$	16,757	$	10,487	$	6,924
Warranties issued during the period		11,263		12,893		10,597
Settlements made during the period		(12,160)		(10,230)		(6,798)
Changes in estimate of liability for pre-existing warranties during the period		(677)		3,607		(236)
Balance at December 31 (end of period)	$	15,183	$	16,757	$	10,487
Amount classified as current	$	13,022	$	14,098	$	8,299
Amount classified as long-term (within other long-term liabilities)		2,161		2,659		2,188
Total warranty liability	$	15,183	$	16,757	$	10,487