Commitments and Contingencies

6 Months Ended

Jun. 30, 2017

Commitments And Contingencies Disclosure [Abstract]

11. Commitments and Contingencies

The following table summarizes the Company’s principal contractual commitments as of June 30, 2017 (in thousands):

	Operating Leases		Purchase Commitments		Other Contractual Commitments		Total
2017	$	636	$	11,492	$	35	$	12,163
2018		974		—		—		974
2019		864		—		—		864
2020		672		—		—		672
2021		417		—		—		417
Thereafter		35		—		—		35
Total	$	3,598	$	11,492	$	35	$	15,125

Purchase commitments for inventories are highly dependent upon forecasts of customer demand. Due to the uncertainty in demand from its customers, the Company may have to change, reschedule, or cancel purchases or purchase orders from its suppliers. These changes may lead to vendor cancellation charges on these purchases or contractual commitments.

The Company provides warranties on certain product sales for periods ranging from 12 to 24 months, and allowances for estimated warranty costs are recorded during the period of sale. The determination of such allowances requires the Company to make estimates of product return rates and expected costs to repair or to replace the products under warranty. The Company currently establishes warranty reserves based on historical warranty costs for each product line combined with liability estimates based on the prior 12 months’ sales activities. If actual return rates and/or repair and replacement costs differ significantly from the Company’s estimates, adjustments to recognize additional cost of sales may be required in future periods. Historically the warranty accrual and the expense amounts have been immaterial.