Accrued Expenses and Other Current Liabilities

3 Months Ended

Mar. 31, 2022

Accrued Expenses and Other Current Liabilities Abstract

Accrued Expenses and Other Current Liabilities

8. Accrued expenses and other current liabilities

Accrued expenses and other current liabilities consisted of the following:

(in thousands)	March 31, 2022		December 31, 2021
Accrued cost of revenue	$	22,623	$	43,185
Accrued compensation		4,507		981
Other accrued expenses		3,518		3,694
Total accrued expenses	$	30,648	$	47,860
Warranty reserves	$	3,771	$	4,032
Current portion of operating lease liability		451		452
Non-federal tax obligations		301		172
Other		—		—
Total other current liabilities	$	4,523	$	4,656

We provide standard warranties on our hardware products to customers. The liability amount is based on actual historical warranty spending activity by type of product, customer and geographic region, modified by any known differences such as the impact of reliability improvements.

Activity by period in the Company's warranty accruals was as follows:

	Three months ended March 31,
(in thousands)	2022			2021
Balance at beginning of period	$	9,346		$	6,811
Warranties issued during the period		516			1,554
Settlements made during the period		(421	)		(1,819	)
Changes in liability for pre-existing warranties		(205	)		(187	)
Balance at end of period	$	9,236		$	6,359
Accrued warranty balance reported in:
Other current liabilities	$	3,771		$	2,891
Other non-current liabilities		5,465			3,468
Balance at end of period	$	9,236		$	6,359