The 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.


	Six months ended				Three months ended
	June 30,				June 30,
	2026		2025		2026		2025
Balance as of beginning of period	$	8,482	$	7,627	$	8,367	$	7,671
Accruals during the period	7,282		6,811		3,981		3,862
Settlements during the period	(7,024)		(6,381)		(3,608)		(3,476)
Balance as of end of the period	$	8,740	$	8,057	$	8,740	$	8,057

We recorded accruals in cost of goods sold within the condensed consolidated statements of comprehensive income during the periods presented in the table above, primarily to reflect charges that relate to warranties issued during the respective periods.