Merchandise Warranties

9 Months Ended

Sep. 30, 2022

Product Warranties Disclosures [Abstract]

Merchandise Warranties

Merchandise WarrantiesThe Company warrants certain merchandise to be free of defects in both construction materials and workmanship from the date the performance obligation was fulfilled to the client for three to ten years depending on the merchandise category. The Company accounts for merchandise warranties by accruing an estimated liability when we recognize revenue on the sale of warrantied merchandise. We estimate future warranty claims based on claim experience which includes materials and labor costs to perform the repairs or replace products. We use judgment in making our estimates. We record differences between our estimated and actual costs when the differences are known.

A reconciliation of the changes in our limited merchandise warranty liability is as follows (amounts in thousands):

	Nine months ended September 30,				Three months ended September 30,
	2022		2021		2022		2021
Balance as of beginning of period	$	4,724	$	3,326	$	5,412	$	3,868
Accruals during the period	8,285		5,652		3,181		2,138
Settlements during the period	(7,152)		(4,712)		(2,736)		(1,740)
Balance as of end of the period(1)	$	5,857	$	4,266	$	5,857	$	4,266

(1) $3.4 million and $2.7 million were recorded in accrued other expenses at September 30, 2022 and December 31, 2021, respectively. The remainder is recorded in other long-term liabilities on our condensed consolidated balance sheets.

We recorded accruals during the periods presented in the table above, primarily to reflect charges that relate to limited merchandise warranties issued during the respective periods.