Archived Copies of Warranty Week
December 2002 to Today
- Nine-Month Car & RV Warranty Trends: Warranty claims and accruals are up for U.S.-based consumer vehicle companies. This industry wasn't hit as hard as many others in the pandemic, but things seem to be back to normal, despite recalls and technological challenges.January 26, 2023
- Nine-Month New Home Warranty Report: Claims, accruals, and reserves continue to see a pattern of steady growth, despite many economists' predictions of an impending recession. Accruals per home sold continue to increase, though inflation and rising home prices mean that the accrual rate per dollar of revenue has decreased.January 19, 2023
- Worldwide Heavy Equipment Warranty Report: Claims were down a bit in 2021, but accruals rose significantly, as did product revenue. The industry's average claims and accruals rates both fell in relation to total revenue, but the combined warranty reserve fund balances of the 56 companies we're tracking in this industry grew 11% to a record $10.81 billion.January 12, 2023
- Worldwide Aviation & Jet Engine Warranty Report: Claims were down for the aircraft but up for the engines, while warranty accruals and reserve balances were up considerably for both groups. But warranty metrics in the aviation industry are still far below the peaks they set several years ago, before the pandemic caused demand for air travel to nearly cease.December 15, 2022
- Worldwide Auto Warranty Expenses: Most auto manufacturers have filed their latest annual reports, so the totals are in for 2021: $45.9 B in claims paid, a 2.4% claims rate, $54.0 B in accruals made, a 2.8% accrual rate, $128.4 B in reserves held, and $653 in accruals made per vehicle sold. Claims and accrual totals changed little last year, but because sales rebounded in 2021, the expense rates fell.October 6, 2022
- Nineteenth Annual Product Warranty Report: While the erratic nature of accruals continued in 2021, claims totals remained stable. But warranty reserves hit a new record high late in the year, and expense rates briefly set a new low record early in the year. Manufacturer's warranty expenses are sorted into 18 industries and three major sectors: vehicles, electronics, and building trades.March 24, 2022
- Warranty Snapshots of the Top 100 Providers: So far this year, most of the largest warranty providers have paid out more in claims and set aside more in accruals than they did last year. But when product sales are factored in, most companies saw their warranty expense rates fall, because sales rose somewhat faster than expenses did.December 9, 2021
- Nine-Month Truck, RV & Car Warranty Trends: While the pandemic left a clear mark on sales and warranty accruals last year, the downturn was brief and the recovery was fast. So far in 2021, other events such as safety recalls and environmental warranty problems seem to have had more of a noticeable effect on their warranty metrics.November 18, 2021
- Mid-Year U.S. Truck Industry Warranty Metrics: During the lockdowns, sales were down and so were accruals for the top truck makers. But warranty claims barely changed, and were actually down more this year than last. And while extended warranty sales fell precipitously in 2020, they're still not back up to the record levels we saw in 2019.September 30, 2021
- Mid-Year New Home Warranty Report: Some homebuilders hit the bullseye every quarter with their warranty accruals. Others oscillate wildly, allocating way too much one quarter and next to nothing the next. And while new home sales are soaring, warranty expenses are not, suggesting either exemplary levels of quality or more inefficiency. gyrations.September 23, 2021
- Mid-Year U.S. Auto Warranty Expenses: As if the pandemic wasn't enough of a challenge, the top U.S.-based automakers also now face a spike in recall costs that have driven up their warranty accruals dramatically, not only at the end of 2020 but also in the middle of 2021. The result is alarming warranty expense levels not seen before, but easy to spot in these charts.September 16, 2021
- Worldwide Heavy Equipment Warranty Report: Claims were up a bit last year but warranty accruals fell significantly, as did product revenue. As a result, the industry's claims rate was also up a bit while the average accrual rate fell. And the combined warranty reserve fund balances of the 52 companies we're tracking in this category grew five percent to a record $9.81 billion.September 9, 2021
- Worldwide Auto Warranty Expenses: Last year, claims fell -10% to $43.9 billion while accruals rose +4% to $51.0 billion. And with some additional adjustments along the way, that drove worldwide warranty reserves up to a new record balance of $114.9 billion. And because sales fell so fast, the average claims rate rose to 2.8% last year, while the average accrual rate jumped to 3.3%.September 2, 2021
- Japanese Automaker Warranty Expenses: Sales revenue fell and so did claims, but warranty accruals actually rose last year. Because of the pandemic, unit sales fell to their lowest level of the last ten years. But while claims are down, accruals are up, as Japanese manufacturers seemingly prepare for increased costs down the road.August 5, 2021
- Warranty Expenses vs. Product Sales & Net Income: We're adding a new metric into the mix: net income. When manufacturers boost warranty accruals, net income suffers. And when warranty expenses drop, net income rises. But is there really a correlation between net income and warranty accruals? Or perhaps warranty reserves and net income?April 8, 2021
- Eighteenth Annual Product Warranty Report: When the pandemic began a year ago, shopping and work patterns changed radically, as many people found it hard to leave their homes or get to work. One would have expected a deep dive in warranty claims early on, but there was an even deeper drop in warranty accruals in the middle of the year, and a much higher makeup effort towards the end of the year.March 25, 2021
- RV Warranty Update: Severely damaged during the Great Recession, the RV industry actually grew last year, and the survivors of that downturn a decade ago have also learned how to keep their warranty expenses under control, despite the health emergency. Winnebago, in fact, raised its warranty accruals in 2020 by exactly the same proportion as sales.March 4, 2021
- Truck & Heavy Equipment Warranties: As the lockdowns grew, some manufacturers reduced their warranty accruals drastically in the spring of 2020, but claims remained about the same anyhow. Some got it right, but most reduced their accruals by too much, while a few cut accruals even though sales rose.February 25, 2021
- Nine-Month 2020 Warranty Report: So far this year, warranty claims are down -10%; accruals are down -15%, and warranted product sales are down -7%. But a few industries such as Security Systems and Computer Peripherals are actually up on all fronts, while the warranty metrics of Aerospace and Computers are way down.December 17, 2020
- Warranty Snapshots of the Top 100 Providers: So far this year, claims are down significantly and accruals are down by significantly more. But warranted product sales are down by only -7%, which for a pandemic is not terrible. And because of the interplay between those metrics, warranty expense rates are down only slightly overall.December 10, 2020
- High-Tech Electronics Warranty Snapshots: While the pandemic of 2020 affects everyone all over the world, not every company or industry has been equally affected by all the stay-at-home orders. Product sales and warranty accruals traditionally move up or down together, but that's not happening to every company or every industry this year. Instead, some are up and some are down, with no visible pattern.December 3, 2020
- Truck, RV & Car Warranty Snapshots: The pandemic lockdowns hit the consumer vehicle makers hardest, and the farm equipment makers the least, as one would expect when commuting to the office is forbidden and food becomes an essential business. The good news is that the downturn may have hit bottom in the second quarter, with third-quarter data pointing towards a V-shaped recovery, as both sales and warranty accruals rise proportionally for many companies.November 12, 2020
- US Auto Warranty Expenses: During the Great Recession, vehicle sales fell faster than accruals but slower than claims, so claims rates slowly rose while accrual rates slowly fell. During this pandemic, however, claims rates jumped quickly, while accrual rates are holding steady. But sales are plunging just like they did 12 years ago.September 24, 2020
- Worldwide Auto Warranty Expenses: Now that most of the world's automakers publish their warranty expenses in their annual reports, it is possible to tally a global total for the industry. In 2019, claims were up but accruals and reserves were down, as were the number of vehicles sold and the product revenue they brought in worldwide.September 10, 2020
- Asian Auto Warranty Expenses: While the Japanese and Indian car manufacturers had plenty of time to react to the global pandemic in their most recent fiscal years (which ended in March), the Korean and Chinese companies also seem to have seen it coming. Warranty accruals are down along with sales, and so are reserves, while claims are up. But the Chinese warranty metrics remain baffling.September 3, 2020
- Appliance Warranty Expense Report: While the HVAC industry is known for its long warranties and low warranty expense rates, the household appliance industry is known for its volatility. In 2019, claims fell and accruals rose, but the big news is the jump in expense rates seen in early 2020, caused by a recall in Europe.June 4, 2020
- Telecom Equipment Warranty Report: Warranty claims, accruals and reserves rose a bit from record low levels in 2018, but the long-term decline in the telecom network hardware industry continues unabated. Several mergers contributed to the recent increases, while some of the largest industry players continue to increase reliability, cut costs, and drive down their warranty expense rates.May 14, 2020
- Computer Warranty Report: Warranty accruals and reserves rose for the first time in years, but the long-term decline in the computer hardware industry continues nevertheless. Apple and HP see only minor changes in their warranty metrics. But some of the top disk drive makers are seeing expenses rise significantly.April 30, 2020
- Aerospace Warranty Report: The big story was Boeing, which was caught in the perfect storm of rising expenses and falling sales. But across the industry, warranty claims and accruals were up after years of slow declines. And expense rates rose as well, though not as high as the levels they were at a decade ago.April 23, 2020
- Seventeenth Annual Product Warranty Report: For a variety of reasons, claims and accruals continue to grow in the vehicle sector and shrink in the electronics sector. But sales have grown faster, so the overall share of manufacturing revenue going towards warranty expenses remains below 1.5%. Warranty reserves, meanwhile, came close to setting a new high water mark late in 2019, after years of declines.April 16, 2020
- Product Warranty Sectors: By dividing all warranty-issuing companies into three groups -- vehicles, buildings, and electronics -- we can look at trends over time in terms of claims, accruals, reserves, and the percentage of sales revenue spent on warranty expenses. And we can also see that those expense rates have recently taken an upturn for some of them after years of declines.January 23, 2020
- U.S. Commercial Vehicle Makers: The warranty expense data in their latest financial reports suggest that the top U.S.-based truck, bus, construction equipment, and agricultural vehicle makers are doing just fine, with relatively stable amounts of claims and accruals, after several reported noticeable expense spikes in previous years.December 19, 2019
- Worldwide Aviation Warranty Expense Report: Warranty accruals were up last year, but warranty claims continued to fall. It's still too early for the cost of grounding of the 737 Max to show up in the data, but why are Boeing's warranty costs always much larger than Airbus? Meanwhile, Bombardier and Dassault saw significant spikes in their warranty expenses last year, while Gulfstream and Embraer saw slight declines.October 10, 2019
- Worldwide Automotive Warranty Expenses: With reliable warranty expense data in hand from 24 of the world's largest carmakers, we have calculated some worldwide metrics: $46 billion in claims, $50 billion in accruals, $115 billion in reserves, 2.14% average claims rate, 2.53% average accrual rate, and $543 in accruals per unit sold.August 22, 2019
- Top Chinese Automaker Warranty Expenses: Claims jumped but accruals fell. Automotive revenue rose but unit sales declined. The warranty metrics of the top Chinese OEMs are puzzling, and the amount of accruals they each set aside per vehicle sold is impossibly low. Something is just not right with these numbers.August 1, 2019
- Homebuilder Warranty Report: All the metrics were up in 2018, and the growth continued into the first quarter of 2019. Claims and accruals are back to pre-recession levels, and warranty reserves hit a new record high. Meanwhile, the level of warranty expenses per new home sold show some curious and sudden spikes for some builders and long-term stability for others.June 13, 2019
- Semiconductor Warranty Report: Companies that make the tools and equipment used to manufacture semiconductors and printed circuit boards spend more on claims, set aside more accruals, and shell out a larger chunk of their revenue on warranty expenses than do their customers who make the actual devices. But the companies that make the devices keep more warranty reserves on hand than do the companies that supply them with tools and equipment.May 9, 2019
- Aerospace Warranty Report: Claims and accruals continue to fall for the top aerospace OEMs, though the warranty expense rates of aerospace suppliers has been rising for two years now. And the recent acquisition of Rockwell Collins by United Technologies has made the industry's largest warranty provider even bigger.March 28, 2019
- Japanese Auto Warranties: While Toyota, Nissan and Honda dominate, six other companies also pay claims and make accruals for cars, trucks and buses made in Japan, or made elsewhere by a Japanese company. And while none besides Toyota & Honda report all their warranty metrics, most leave enough clues for outside observers to plug the holes with estimates.October 11, 2018
- Solar Equipment Warranty Expense Rates: It's a bit of an actuarial nightmare. Relatively young companies in new and unproven industries issue very long warranties for which multiple years or even decades can pass before claims arise in volume. But eventually, products mature and claims exceed accruals, and reserves begin to deplete. Then the actuaries break the bad news: it's time to raise rates.August 30, 2018
- Mobile Home Warranty Expenses: While much of the industry collapsed a decade ago, the five large manufacturers that remained in business have made a steady comeback. Last year, claims and accruals finally surpassed their pre-recession peaks, even while most of the remaining manufacturers have been able to keep those expenses steady as a percentage of sales.August 9, 2018
- Warranty Accruals per Vehicle Sold: Once again, Tesla comes out with the most expensive warranty while Hyundai is the least costly. But the warranty cost rankings of the passenger car and light truck manufacturers in between have shifted somewhat, with the Asian carmakers seeing their accrual rates per vehicle rise and the North American manufacturers seeing their warranty costs drop.July 19, 2018
- Homebuilding Warranty Report: Warranty expenses are rising but so are new home prices, keeping the average amount of money accrued industry-wide after each closing relatively steady, and allowing the accrual rate as a percentage of revenue to actually decline a bit. But many homebuilders continue to raise and reduce their warranty accruals rather impulsively, and sometimes skip them altogether.June 28, 2018
- Automotive Supplier Warranty Report: Of all the companies that supply parts and components to the car and truck manufacturers, those making engines, axles and transmissions pay the most claims and see the highest warranty expense rates. Last year, in fact, they broke records for claims paid, accruals made, and reserves held.April 12, 2018
- Top 100 Warranty Providers of 2017: While total claims and accruals fell last year, some companies saw their warranty costs soar. By comparing each company to itself over time, we can spot the most and least improved warranty providers. And we can also spot the accounting eccentricities of those few that act like nobody's watching.March 15, 2018
- The 80/20 Rule of Product Warranties: Almost 80% of all the warranty claims and accruals reported by U.S.-based companies come from only 20 companies. Upwards of 500 other manufacturers account for only 20% of the total. But the expenses of the largest warranty providers are also a higher share of their sales revenue.November 16, 2017
- Construction Equipment Warranties: While most of the top industry players are diverse manufacturers of a wide variety of products, some make little besides construction and mining equipment. And these "pure plays" can provide us with clues about the typical warranty expenses of those manufacturers that don't include any details about their claims and accruals in their financial statements.August 17, 2017
- New Home Warranty Report: With products such as single-family homes, it's possible to measure warranty accruals not only per dollar of revenue, but also per unit sold. And then it becomes clear which companies have mastered their warranty cost estimation process and which are still making it up as they go along.June 8, 2017
- Telecom Equipment Warranty Report: Claims and accruals have fallen dramatically in the past decade, both in terms of dollars and as a percentage of sales. Mergers and bankruptcies were a major factor, but so were cost-cutting efforts. Now, however, expenses are rising again and sales aren't, so expense rates are creeping upwards.May 18, 2017
- Sports Equipment & Consumer Electronics Warranty Report: While they're not the top sources of warranty expenses, there is a lot of warranty activity in these industries. So rather than bury their claims and accruals in the "other" category, let's take a look at the warranty costs of everything from karaoke machines to golf clubs.June 9, 2016
- Thirteenth Annual Product Warranty Report: As the latest charts clearly show, American manufacturers are spending less on warranty than they used to. But is it because of better products, less costly repairs, or fewer sales? Now that the 2015 warranty expense data collection is almost complete, it's time to figure out why claims and accruals are declining.March 24, 2016
- Declining Accruals in Detroit: This news can't wait for summer: Ford and General Motors set aside less in warranty accruals per vehicle sold last year than ever before. Thanks to a well-timed coincidence of rising sales, falling warranty costs, rising reliability, and reduced recalls, the top two passenger car and light truck makers in Detroit are cutting their warranty expenses to just a few hundred dollars per vehicle sold.February 25, 2016
- Warranty Accruals for New Homes: When a new home is sold, the builder sets aside a specific amount of money in the form of warranty accruals to cover its predicted warranty costs. Some builders do a consistently good job, accruing roughly the same amount per home sold from one season to the next. But others raise and lower their accrual rates over incredible ranges that seem to have little to do with predicted warranty costs.August 13, 2015
- European Auto Warranty Report: In this initial piece of a two-part series, we look at the claims rates and accruals-per-vehicle rates of five of the top European automotive OEMs. Whether we count in euro or dollars, some of them have the most expensive factory warranties in the world. But a few have managed to cut those costs over the past decade.July 9, 2015
- New Home Warranty Accruals: While the average homebuilder sets aside about one percent of revenue to cover warranty costs, the average new home is expected to cost around $2,500 over the life of its warranty. Luxury homes will cost more, but even some average-priced units have high warranty costs. It all depends on the builder.December 18, 2014
- Chrysler's & Tesla's Warranty Adjustments: Compared to GM and Ford, their recent mid-course corrections to their warranty expense rates are modest. But for others, the relative size of these adjustments compared to regular accruals can be an early warning indicator of trouble ahead.November 13, 2014
- GM's & Ford's Warranty Adjustments: Both automakers have recently run into trouble, and have had to add hundreds of millions of dollars to their warranty reserve funds to pay for all the unexpected warranty work. But because it's unexpected, it doesn't show up on charts that track only the "regular" warranty accruals.November 6, 2014
- Warranty Accruals for New Homes: Sometimes they set aside too much and sometimes they set aside too little. All but a few homebuilders seem to lack any sense of aim when it comes to determining how much to accrue for each new home they sell.July 24, 2014
- Warranty Accruals per Vehicle: Though currency fluctuations are a major factor, in 2013 both GM and Ford accrued less per vehicle sold than any of the European or Japanese OEMs. And though BMW and Daimler command a higher price per vehicle, they've accrued less and less per unit over the past decade as they continue to cut warranty costs.July 17, 2014
- Automotive Warranty Report: For the first nine months of 2013, claims are up a bit from 2012 levels while accruals are down. More importantly, the percentage of revenue spent on warranty work is down as well. That means manufacturers expect to see lower warranty costs in the future, as they make more reliable vehicles that cost less to repair.January 9, 2014
- Warranty Accruals per Vehicle: The German OEMs still have the highest warranty costs worldwide, but the Japanese carmakers are no longer unopposed at the bottom. Both Fiat and Ford are cutting their warranty costs to within range of longtime low-cost leader Honda. And Toyota is well on its way to getting back to normal.July 11, 2013
- New Home Warranties: Sales are rising and so are some warranty expenses. Builders and their suppliers, slammed by the recession, are getting back to normal. But who is figuring out their accruals per home and why are they doing it so badly?April 18, 2013
- Top 100 Warranty Providers of 2012: While most of the largest manufacturers continued to reduce their warranty costs last year, some saw dramatic increases. Here are the top up and down percentage changes of the year for three warranty metrics: claims, accruals, and reserves.March 14, 2013
- Top 100 Warranty Providers of 2011: While most of the largest manufacturers continued to reduce their warranty costs last year, some saw dramatic rises. Here are the top percentage increases and decreases of the year for claims, accruals, and reserves.March 15, 2012
- New Home & RV Warranties: When sales were falling, builders cut their warranty accruals. But, worried by claims payments that didn't fall as fast, they didn't cut accruals enough. So now some have built up excess levels of warranty reserves that may be in the multiple millions of dollars for at least 10 homebuilders.January 5, 2012
- Solar Warranties, Part 1: They can last up to 25 years, but what does that really mean when the technology is changing so fast? And even if a company really expects to pay claims in 2036, how do they prepare for them now by making the right amount of accruals at the time of sale?December 1, 2011
- Sports Equipment Warranties: Though the uniforms and hats might be apparel, the equipment used for many team sports and outdoor activities carries product warranties. More importantly, the companies making the gear manage those warranties with accruals and warranty reserve funds, just like any other manufacturer.August 4, 2011
- Warranty Accruals per Vehicle: While we can't say who builds a better car, we can figure out which automakers are budgeting for the lowest warranty costs per vehicle. Worldwide, Honda leads and Daimler lags, but the order of the six OEMs between them is somewhat surprising.July 7, 2011
- Warranty Reserves vs. Accruals, Part Two: A handful of computer, electronics and data networking companies have gotten very good at controlling their warranty funds, both in terms of how much they set aside and how much they keep on hand. Others just take their best guess and hope it all turns out well.June 23, 2011
- Warranty Reserves vs. Accruals, Part One: With 32 quarters of data, it's becoming easier to see which companies carefully calibrate their warranty budgets and which make it up as they go along. Here are the "scores" for the top three in each of six industries.June 16, 2011
- Top 100 Warranty Providers of 2010: The biggest warranty providers also seem to be the most stable. Those that saw the greatest annual changes in warranty claims, accruals or reserves tended to be a bit smaller, whether the changes were up or down.March 18, 2011
- HVAC & Appliance Warranties: Both claims and accruals have taken a nosedive this year. But that's good news if it's the result of increased quality and reduced cost, rather than merely a symptom of slowing sales. The problem is, it's hard for external observers to tell the difference.October 7, 2010
- Computer Warranty
Claims & Accruals: No news is good news as the computer industry's top warranty providers turn in predictable warranty expense reports. Despite economic turmoil, new product launches and multiple recent acquisitions, claims and accrual rates just aren't changing much.September 16, 2010 - Warranty Accruals per Vehicle: Multiple readers said something wasn't quite right with the warranty data in last week's newsletter. So this week we're diving into the deep end, probing to see if it's possible for both accruals and prices to fall as fast as the math says they are.July 15, 2010
- Auto OEM Accruals per Vehicle: Measured as a percentage of revenue or as an amount of money set aside per vehicle sold, warranty accruals have declined dramatically for Ford and GM. Some warranty metrics even put Ford slightly ahead of Toyota, though Honda remains the low-cost champ.July 8, 2010
- Warranty Claims & Accruals
by Industry: There's been a massive divergence between claims and accrual rates, and it can't all be blamed on the recession. It looks more like some companies are managing earnings by reducing their accrual rates to make their numbers. As claims rates soar, accruals fall.April 15, 2010 - Seventh Annual Warranty Report,
Totals & Averages: Claims are down. But accruals are down by more, and it looks like they're down by more than they should be. Ten charts provide a snapshot of the warranty landscape as manufacturers enter the recovery phase.April 8, 2010 - Auto Part Supplier Warranties: Claims are up a bit but sales are down a lot. And while most suppliers have reduced accruals proportionally, at least one seems to have taken an accrual holiday.June 25, 2009
- Annual Warranty Totals & Averages: While claims were up slightly in 2008, both warranty reserves and accruals actually plunged last year. And as sales fall, the percentage of product revenue spent on claims has risen. With no less than 21 charts, we detail the industry totals and averages for the past six years.May 7, 2009
- Homebuilders' Warranty Accruals: Rather than looking at warranty costs as a percentage of sales, would it be valid to calculate warranty costs per home? Using such a metric makes some homebuilders look very precise and consistent, while others look like they're just guessing how much to accrue per home.April 23, 2009
- Computer Warranty Trends: While other industries are seeing claim rates rise and accrual rates fall, warranty providers in the computer industry are seeing claims rise slightly and accruals rise a lot. And it's not so easy to blame those changes on sales declines, or to link them with quality increases.March 26, 2009
- Warranty Cost Cutting: The warranty reserve balance rises and falls, along with claims and accruals, in reaction to changes in sales volumes and product quality. But merely measuring the balance doesn't provide as much insight as does using it to measure a company's capacity to pay claims.November 26, 2008
- Telecom Equipment Warranties: Claims are up slightly and accruals are down slightly, as are total warranty reserves. But within the telecom sector are a handful of companies that have seen warranty costs fall significantly in the past five years.October 9, 2008
- Top 100 Warranty Providers: Compared to a year ago, much has changed in terms of warranty claims, accruals, and reserves. Key ratios suggest that some companies are enjoying vastly reduced repair costs thanks to quality gains. However, for the largest manufacturers, the percentage of sales they spend on warranty hasn't changed much.September 5, 2008
- Warranty Cost per Vehicle: If one has a figure for warranty accruals and for annual sales, one can quickly calculate an estimate of what a given automaker expects to spend on warranty claims over the life of its vehicles. And better yet, all the complexities of warranty durations, local currencies, labor and parts cost are built into the estimate.July 16, 2008
- Automotive Warranties: In terms of warranty accruals, vehicle makers are setting aside less funds in 2008 than they did a year ago, while their suppliers are setting aside more. But before one concludes that supplier recovery efforts are the primary reason, let's allow some time for recent litigation and asset sales to be fully reflected in the numbers.July 10, 2008
- Five-Year Warranty Trends, Part Three: Measured in dollars, claims were up by only $400 million last year (+1.4% since 2006) while accruals rose $1.5 billion (+5.5%) since 2006. But Microsoft's Xbox 360 debacle accounted for much of those increases in a year that saw warranty expenses decrease or remain the same for manufacturers in many industries.April 10, 2008
- Computer & Peripheral Warranties: At midyear, it looks like many of the major brand names continue to cut their warranty expenses, as do many of their suppliers. But soon Dell will restate its warranty accruals and that could erase the declines completely. Or will it add to them?September 18, 2007
- Mid-Year Warranty Report: Numerous companies continue to fine-tune their warranty spending, reacting to claims rate fluctuations by modifying accruals. While warranty spending by one company can't be compared to another's, we can compare a company to itself over time, by way of a series of top ten lists.August 15, 2007
- New Home Warranties: While sales are declining, warranty accruals are declining even faster. Is it because of warranty cost cutting? Could it be better quality construction? Or are they simply putting less aside and hoping that nobody notices? Also, a letter to the editor about compliance with state laws on service contracts.August 8, 2007
- Warranty Claims vs. Accruals: Using a few key warranty metrics, it's becoming easier to tell when a given company is managing its claims and accruals responsibly. It's also becoming easier to tell when things run off the rails, even if a company makes no specific disclosures of a crisis.November 8, 2006
- Warranty Marksmanship: Companies that accurately predict warranty claims and maintain adequate warranty reserves are at the top of their game. And now it's possible to compare their aim by looking at a chart that compares reserves to accruals.May 16, 2006
- Warranty Claims & Accruals: Ten quarters of data for the top ten U.S.-based warranty providers show just how variable and seasonal claims rates can be for some companies and how consistent they've been for others.August 23, 2005
- Home Warranty Claims & Accruals: Homebuilding, heating and cooling each have their peak seasons. But do warranty claims for new homes and HVAC units also have a peak season? Recent data suggests that claims actually peak later in the year, months after sales do.August 31, 2004
- Computer Warranty Claims & Accruals: The companies whose brand names go on the front of the computer continue to pay the lion's share of warranty claims. Makers of disk drives, printed circuits, semiconductors, and most types of peripherals see a significantly smaller share of warranty claims.August 24, 2004
- Warranty Claims & Accruals: While some U.S. manufacturers are still preparing their latest financial statements, most of the largest warranty providers have already announced their second quarter claims and accruals. While some of the top 50 are spending more on warranty than a year ago, most are spending less, and a few are spending a lot less.August 17, 2004
- The Warranty Cushion: Very large companies put aside proportionally more to pay warranty claims than either mid-sized or small companies, while very small companies allow their reserve fund ratios to rise and fall. The difference between them is their skill at the arts of warranty estimation and accruals.June 8, 2004
- Warranty Measures: Matching warranty claims and accruals to reserves has always been a balancing act. Now it must be done in public, making it harder to conceal raids on the reserve fund or spikes in claims. But it's also easier to see how a company's quality improvements and claims reductions can translate to bottom-line gains by reducing the need for reserves.May 25, 2004
- Warranty Claims: While some U.S. manufacturers are still preparing their latest financial statements, most of the largest warranty providers have already announced their first quarter claims and accruals. Half of the top 50 are spending more on warranty than a year ago while half are spending less.May 18, 2004
- Warranty in the IT Industry: Readers ask for more details on warranty claims and accruals in the computer, telecom, semiconductor, disk drive, and peripherals industry sectors.January 12, 2004
- Warranty Claims & Accruals: In some industries, warranty claims and accrual rates move together in parallel. In others, they each seem to have a mind of their own. This week we take a look at nine months of warranty claims totals and the percentages of sales they represent in nine different industries.December 15, 2003
- Ford's Warranty Reserves: Standard & Poor's cut Ford Motor Company's credit rating from BBB to BBB-, citing write-offs at Ford Europe, reduced warranty accruals, and lowered reserves for bad loans by Ford Credit. But were those reduced warranty accruals justified by reduced claims costs?November 17, 2003
- The Warranty Week 500 Most of the major players in warranty claims management recently reported details about their warranty reserve funds, claims and accruals during the second quarter. Here are the summary results.September 8, 2003
- The Warranty Reserve Fund: Now that warranty accruals and warranty claims numbers are in the public domain, it's time to look at the differences in warranty reserve fund sizes and the estimates that are used to produce these differences.July 7, 2003