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Commitments and Contingencies
6 Months Ended
Jun. 30, 2019
Commitments And Contingencies Disclosure [Abstract]  
Commitments and Contingencies

17. Commitments and Contingencies

 

The following table summarizes the Company’s principal contractual commitments, excluding operating leases, as of June 30, 2019 (in thousands):

 

 

 

Purchase

Commitments

 

 

Other

Contractual

Commitments

 

 

Total

 

2019 (remaining six months)

 

$

12,251

 

 

$

108

 

 

$

12,359

 

2020

 

 

1,295

 

 

 

 

 

 

1,295

 

Total

 

$

13,546

 

 

$

108

 

 

$

13,654

 

 

 

 

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 36 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.