Summary of Significant Accounting Policies and Other Information (Tables)

3 Months Ended

Mar. 31, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

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:

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



	For the Three Months Ended March 31,
	2019		2018
Supplier A	16	%	16	%
Supplier B	**		15	%
Supplier C	12	%	**

** Less than 10% of the total

Schedule of Inventory, Current

Inventories consist of the following:



(in thousands)	As of March 31,			As of December 31,
Inventories	2019			2018
Raw materials	$	95,567		$	90,877
Work in process	4,361			2,390
Finished goods	23,682			18,077
Total inventories	123,610			111,344
Inventory allowance	(5,809		)	(5,730		)
Inventories, net	$	117,801		$	105,614

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



(in thousands)	For the Three Months Ended March 31,
Inventory Allowance	2019			2018
Balance at beginning of period	$	5,730		$	6,227
Charged to expense	314			(370		)
Write-offs	(235		)	(179		)
Balance at end of period	$	5,809		$	5,678

Schedule of Other Accrued Liabilities

Other accrued liabilities consisted of the following:



(in thousands)	As of March 31,		As of December 31,
Other Accrued Liabilities	2019		2018
Accrued product warranty	$	18,062	$	9,767
Litigation reserves ^*	15,985		16,139
Contract liabilities	7,862		4,897
Accrued compensation and benefits	6,341		4,520
Operating lease liabilities	3,704		—
Accrued interest expense	2,398		1,175
Other	7,902		9,202
Total	$	62,254	$	45,700

As of March 31, 2019 and December 31, 2018, 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 $13.4 million and $14.0 million of the litigation reserves as of March 31, 2019 and December 31, 2018, respectively, 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 Accrued Product Warranty

Accrued product warranty activities are presented below:



(in thousands)	For the Three Months Ended March 31,
Accrued Product Warranty	2019			2018
Balance at beginning of period	$	23,101		$	12,628
Current year provision	1,467			2,279
Changes in estimates for preexisting warranties ^*	2,730			3,842
Payments made during the period	(1,579		)	(1,348		)
Balance at end of period	25,719			17,401
Less: Current portion	18,062			8,693
Noncurrent accrued product warranty	$	7,657		$	8,708

Change in estimates for preexisting 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 2019, the Company recorded a charge for changes in estimates of preexisting warranties of $2.7 million or $0.12 per diluted share.

For the Three Months Ended March 31,

Customer A

Customer B