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Commitments and Contingencies
3 Months Ended
Mar. 31, 2018
Commitments And Contingencies Disclosure [Abstract]  
Commitments and Contingencies

13. Commitments and Contingencies

 

The following table summarizes the Company’s principal contractual commitments as of March 31, 2018 (in thousands):

 

 

 

Operating Leases

 

 

Purchase Commitments

 

 

Other Contractual Commitments

 

 

Total

 

2018 (remaining nine months)

 

$

1,455

 

 

$

13,574

 

 

$

68

 

 

$

15,097

 

2019

 

 

1,812

 

 

 

450

 

 

 

13

 

 

 

2,275

 

2020

 

 

1,612

 

 

 

450

 

 

 

13

 

 

 

2,075

 

2021

 

 

1,375

 

 

 

450

 

 

 

13

 

 

 

1,838

 

2022

 

 

578

 

 

 

450

 

 

 

13

 

 

 

1,041

 

Thereafter

 

 

37

 

 

 

 

 

 

13

 

 

 

50

 

Total

 

$

6,869

 

 

$

15,374

 

 

$

133

 

 

$

22,376

 

 

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.