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Performance-Based Common Stock Warrants (Tables)
 9 Months Ended
Sep. 30, 2020
Equity [Abstract]  
Purchase Level and Number of Warrants That Will Vest The table below presents the purchase levels and potential number of warrants to vest in each period based upon achieving the purchase levels.
 Potential Warrants To Vest
Aggregate Level of Purchases by Comcast and AffiliatesJanuary 1, 2016 - December 31, 2017January 1, 2018 - December 31, 2019January 1, 2020 - December 31, 2021
$260 million100,000 100,000 75,000 
$300 million75,000 75,000 75,000 
$340 million75,000 75,000 75,000 
Maximum Potential Warrants Earned by Comcast250,000 250,000 225,000 
Assumptions Used in Valuation and Weighted Average Fair Value of Warrants
The assumptions we utilized in the Black-Scholes option pricing model and the resulting grant-date fair value of the warrants as of January 1, 2020 were the following:
Fair value$17.19 
Price of Universal Electronics Inc. common stock$52.21 
Risk-free interest rate1.62 %
Expected volatility48.86 %
Expected life in years3.00
Prior to the adoption of the new guidance on January 1, 2020, we adjusted the estimated weighted average fair value of the warrants each period. The assumptions we utilized in the Black-Scholes option pricing model and the resulting weighted average fair value of the warrants were the following:
Three Months Ended September 30, 2019Nine Months Ended September 30, 2019
Fair value$16.78 $16.78 
Price of Universal Electronics Inc. common stock$51.09 $51.09 
Risk-free interest rate1.56 %1.56 %
Expected volatility47.82 %47.82 %
Expected life in years3.253.25
Impact to Net Sales in Connection with Warrants and Related Income Tax Benefit
The impact to net sales recorded in connection with the warrants and the related income tax benefit were as follows:
Three Months Ended September 30,Nine Months Ended September 30,
(In thousands)2020201920202019
Reduction to net sales$187 $711 $525 $1,381 
Income tax benefit$47 $177 $131 $345