Summary of Significant Accounting Policies and Other Information (Tables)

9 Months Ended

Sep. 30, 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:



	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2019		2018		2019		2018
Customer A	11	%	15	%	15	%	16	%
Customer B	11	%	**		**		10	%
Customer C	15	%	13	%	12	%	**
Customer D	11	%	**		**		**

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 September 30,				For the Nine Months Ended September 30,
	2019		2018		2019		2018
Supplier A	29	%	19	%	20	%	18	%
Supplier B	12	%	15	%	12	%	15	%

** Less than 10% of the total

Schedule of Inventory, Current

Inventories consist of the following:



(in thousands)	As of September 30,			As of December 31,
Inventories	2019			2018
Raw materials	$	94,739		$	90,877
Work in process	3,079			2,390
Finished goods	21,120			18,077
Total inventories	118,938			111,344
Inventory allowance	(4,263		)	(5,730		)
Inventories, net	$	114,675		$	105,614

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



(in thousands)	For the Nine Months Ended September 30,
Inventory Allowance	2019			2018
Balance at beginning of period	$	5,730		$	6,227
Charged to expense	560			1,830
Write-offs	(2,027		)	(1,934		)
Balance at end of period	$	4,263		$	6,123

Schedule of Other Accrued Liabilities

Other accrued liabilities consisted of the following:



(in thousands)	As of September 30,		As of December 31,
Other Accrued Liabilities	2019		2018
Accrued product warranty	$	14,677	$	9,767
Litigation reserves ^*	7,695		16,139
Contract liabilities	15,959		4,897
Accrued compensation and benefits	6,670		4,520
Operating lease liabilities	3,860		—
Accrued interest expense	1,937		1,175
Other	7,004		9,202
Total	$	57,802	$	45,700

As of September 30, 2019, litigation reserves primarily consisted of reserves related to ongoing government investigations and for the settlement of the Federal Derivative Litigation and the Cohen matter. As of 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 $4.9 million and $14.0 million of the litigation reserves at September 30, 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 Product Warranty Liability

Accrued product warranty activities are presented below:



(in thousands)	For the Nine Months Ended September 30,
Accrued Product Warranty	2019			2018
Balance at beginning of period	$	23,102		$	12,628
Current year provision	7,706			9,385
Changes in estimates for preexisting warranties ^*	2,730			3,842
Payments made during the period	(7,244		)	(5,940		)
Balance at end of period	26,294			19,915
Less: current portion	14,677			10,589
Balance at end of period	$	11,617		$	9,326

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 $0.13 per diluted share.

As of September 30,

As of December 31,

Customer A

Customer B