Accrued Expenses and Other Current Liabilities

6 Months Ended

Jun. 30, 2022

Accrued Expenses and Other Current Liabilities Abstract

Accrued Expenses and Other Current Liabilities

9. Accrued expenses and other current liabilities

Accrued expenses and other current liabilities consisted of the following:

(in thousands)	June 30, 2022		December 31, 2021
Accrued cost of revenue	$	14,415	$	43,185
Accrued compensation		5,248		981
Other accrued expenses		10,187		3,694
Total accrued expenses	$	29,850	$	47,860
Warranty reserves	$	6,290	$	4,032
Current portion of operating lease liability		444		452
Non-federal tax obligations		339		172
Total other current liabilities	$	7,073	$	4,656

Other accrued expenses include amounts due for (i) the acquisition of HX Tracker, (ii) legal and other costs associated with outstanding legal matters and (iii) other professional services.

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 expected remediation activities or reliability improvements.

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

	Three months ended June 30,						Six months ended June 30,
(in thousands)	2022			2021			2022			2021
Balance at beginning of period	$	9,236		$	6,359		$	9,346		$	6,811
Warranties issued during the period(a)		3,668			554			4,184			2,108
Settlements made during the period		(959	)		(1,072	)		(1,380	)		(2,891	)
Changes in liability for pre-existing warranties		(501	)		(294	)		(706	)		(481	)
Balance at end of period	$	11,444		$	5,547		$	11,444		$	5,547
Accrued warranty balance reported in:
Other current liabilities	$	6,290		$	1,742		$	6,290		$	1,742
Other non-current liabilities		5,154			3,805			5,154			3,805
Balance at end of period	$	11,444		$	5,547		$	11,444		$	5,547
(a) - Inclusive of accruals for expected remediation activities