Summary of Significant Accounting Policies and Other Information (Tables)

12 Months Ended

Dec. 31, 2018

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of Adjustment Effects within Consolidated Balance Sheet and Cash Flows

The effects of the adjustments on the line items within the Company’s Consolidated Balance Sheet at December 31, 2017 and Consolidated Statement of Cash Flows for the year ended December 31, 2017, are as follows:

Consolidated Balance Sheet



(in thousands)	December 31, 2017 (As Previously Reported)		Adjustment			December 31, 2017 (As Revised)
Other accrued liabilities	$	38,362	$	(4,042	)	$	34,320
Total current liabilities	126,654		(4,042		)	122,612
Other noncurrent liabilities	8,351		4,042			12,393

Consolidated Statement of Cash Flows



	Year-Ended
(in thousands)	December 31, 2017 (As Previously Reported)			Adjustment			December 31, 2017 (As Revised)
Changes in operating assets and liabilities:
Accrued expenses	$	6,029		$	1,810		$	7,839
Other noncurrent liabilities	(5,260		)	(1,810		)	(7,070		)

The effects of the adjustments on the line items within the Company’s unaudited Consolidated Balance Sheet and Statement of Cash Flows as of and for the three-month period ended March 31, 2017, the six-month period ended June 30, 2017, and the nine-month period ended September 30, 2017, are as follows:

Consolidated Balance Sheet (unaudited)



(in thousands)	March 31, 2017 (As Previously Reported)		Adjustment			March 31, 2017 (As Revised)
Other accrued liabilities	$	35,234	$	(6,425	)	$	28,809
Total current liabilities	119,318		(6,425		)	112,893
Other noncurrent liabilities	13,328		6,425			19,753



(in thousands)	June 30, 2017 (As Previously Reported)		Adjustment			June 30, 2017 (As Revised)
Other accrued liabilities	$	35,379	$	(5,269	)	$	30,110
Total current liabilities	116,281		(5,269		)	111,012
Other noncurrent liabilities	12,438		5,269			17,707



(in thousands)	September 30, 2017 (As Previously Reported)		Adjustment			September 30, 2017 (As Revised)
Other accrued liabilities	$	41,393	$	(4,098	)	$	37,295
Total current liabilities	136,940		(4,098		)	132,842
Other noncurrent liabilities	13,312		4,098			17,410

Consolidated Statement of Cash Flows (unaudited)



	Three Months Ended
(in thousands)	March 31, 2017 (As Previously Reported)			Adjustment			March 31, 2017 (As Revised)
Changes in operating assets and liabilities:
Accrued expenses	$	2,432		$	(571	)	$	1,861
Other noncurrent liabilities	(121		)	571			450



	Six Months Ended
(in thousands)	June 30, 2017 (As Previously Reported)			Adjustment			June 30, 2017 (As Revised)
Changes in operating assets and liabilities:
Accrued expenses	$	3,242		$	584		$	3,826
Other noncurrent liabilities	(894		)	(584		)	(1,478		)



	Nine Months Ended
(in thousands)	September 30, 2017 (As Previously Reported)			Adjustment			September 30, 2017 (As Revised)
Changes in operating assets and liabilities:
Accrued expenses	$	8,867		$	1,755		$	10,622
Other noncurrent liabilities	(821		)	(1,755		)	(2,576		)

Schedules of Concentration of Risk, by Risk Factor

The following table presents customers individually accounting for more than 10% of the Company’s net sales:

The following table presents customers individually accounting for more than 10% of the Company’s accounts receivable:



	As of December 31,
	2018		2017
Customer A	15	%	18	%
Customer B	**		13	%
Customer C	25	%	**

The following table presents suppliers individually accounting for more than 10% of the Company’s purchases:


**	Less than 10% of the total

Schedule of Inventory, Current

Inventories consist of the following:



(in thousands)	As of December 31,
Inventories	2018			2017
Raw materials	$	90,877		$	71,732
Work in process	2,390			4,535
Finished goods	18,077			16,684
Total inventories	111,344			92,951
Inventory allowance	(5,730		)	(6,227		)
Inventories, net	$	105,614		$	86,724

Activity in the Company’s inventory allowance was as follows:



(in thousands)	For the Year Ended December 31,
Inventory Allowance	2018			2017
Balance at beginning of period	$	6,227		$	10,082
Charged to expense	2,153			421
Write-offs	(2,650		)	(4,276		)
Balance at end of year	$	5,730		$	6,227

Schedule of Other Current Assets

Prepaid expenses and other current assets consist of the following:



(in thousands)	As of December 31,
Prepaid Expenses and Other Current Assets	2018		2017
Insurance proceeds receivable	$	15,989	$	10,563
Prepaid expenses	3,260		3,710
Contract assets	2,926		—
Other	742		86
Total	$	22,917	$	14,359

Property, Plant and Equipment

Estimated useful lives by each type of asset category are as follows:



		Years
Buildings		Up to 39
Leasehold improvements		Lesser of (i) expected useful life of improvement or (ii) life of lease (including likely extension thereof)
Machinery and equipment		1 to 10

Property, plant and equipment by type were as follows:



(in thousands)	As of December 31,
Property, Plant and Equipment	2018			2017
Leasehold improvements	$	6,405		$	6,320
Machinery and equipment	38,454			27,379
Construction in progress	1,241			2,036
Total property, plant and equipment, at cost	46,100			35,735
Accumulated depreciation	(21,834		)	(16,775		)
Property, plant and equipment, net	$	24,266		$	18,960

Schedule of Other Accrued Liabilities

Other accrued liabilities consisted of the following:



(in thousands)	As of December 31,
Other Accrued Liabilities	2018		2017 (As Revised)
Accrued product warranty^*	$	9,767	$	8,585
Litigation reserves ^**	16,139		12,137
Contract liabilities (deferred revenue)	4,897		2,822
Accrued compensation and benefits	4,520		2,593
Professional services	27		1,974
Accrued interest expense	1,175		686
Other	9,175		5,535
Total	$	45,700	$	34,332


*	The Company recorded adjustments to reflect a portion of the accrued product warranty liability previously in Other accrued expenses at December 31, 2017 to correct the presentation error and to conform to the current period presentation. See above for additional discussion of the adjustment.

As of December 31, 2018 and 2017, litigation reserves primarily consisted of accruals for the settlement of the Securities Litigation, Federal Derivative Litigation, and the Cohen matter. The Company concluded that insurance recovery was probable related to $14.0 million of the litigation reserves and recognized full recovery of the settlement amounts in Prepaid expenses and other current assets. See Note 9. Commitments and Contingencies for additional information.

Schedule of Product Warranty Liability

Accrued product warranty activities are presented below:



(in thousands)	For the Year Ended December 31,
Accrued Product Warranty	2018			2017
Balance at beginning of year	$	12,628		$	10,200
Current year provision	15,840			5,405
Changes in estimates for preexisting warranties ^*	3,842			—
Payments made during the period	(9,208		)	(2,977		)
Balance at end of year	$	23,102		$	12,628
Less: Current portion	9,767			8,585
Noncurrent accrued product warranty	13,335			4,043

Change in estimates for pre-existing warranties reflect changes in the Company’s estimate of warranty costs for products sold in prior periods. Such adjustments typically occur when claims experience deviates from historic and expected trends. The Company’s warranty liability is generally affected by failure rates, repair costs and the timing of failures. Future events and circumstances related to these factors could materially change the estimates and require adjustments to the warranty liability. In addition, new product launches require a greater use of judgment in developing estimates until historical experience becomes available. In the first quarter of 2018, the Company recorded charges for changes in estimates of $3.8 million, or $0.21 per diluted share.

For the Year Ended December 31,

Customer A

Customer B