Summary of Significant Accounting Policies and Other Information (Tables)

12 Months Ended

Dec. 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:


**	Less than 10% of the total

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

Schedule of Inventory, Current

Inventories consist of the following:



(in thousands)	As of December 31,
Inventories	2019			2018
Raw materials	$	90,677		$	90,877
Work in process	2,007			2,390
Finished goods	19,119			18,077
Total inventories	111,803			111,344
Inventory allowance	(2,964		)	(5,730		)
Inventories, net	$	108,839		$	105,614

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



(in thousands)	For the Year Ended December 31,
Inventory Allowance	2019			2018
Balance at beginning of period	$	5,730		$	6,227
Charged to expense	677			2,153
Write-offs	(3,443		)	(2,650		)
Balance at end of period	$	2,964		$	5,730

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	2019			2018
Leasehold improvements	$	6,745		$	6,405
Machinery and equipment	41,243			38,454
Construction in progress	1,679			1,241
Total property, plant and equipment, at cost	49,667			46,100
Accumulated depreciation	(26,473		)	(21,834		)
Property, plant and equipment, net	$	23,194		$	24,266

Schedule of Other Accrued Liabilities

Other accrued liabilities consisted of the following:



(in thousands)	As of December 31,
Other Accrued Liabilities	2019		2018
Accrued product warranty	$	17,142	$	9,767
Litigation reserves ^*	5,020		16,139
Contract liabilities	26,898		4,897
Accrued compensation and benefits	6,599		4,520
Operating lease liabilities	3,789		—
Accrued interest expense	1,087		1,175
Other	5,495		9,202
Total	$	66,030	$	45,700

As of December 31, 2019, litigation reserves primarily consisted of reserves related to ongoing government investigations and the settlement of the Federal Derivative Litigation. 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 $1.9 million and $14.0 million of the litigation reserves as of December 31, 2019 and 2018, respectively, and recognized full recovery of the settlement amounts in Prepaid expenses and other current assets. See Note 10. 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	2019			2018
Balance at beginning of year	$	23,102		$	12,628
Current year provision	10,349			15,840
Changes in estimates for preexisting warranties ^*	2,730			3,842
Payments made during the period	(10,680		)	(9,208		)
Balance at end of year	25,501			23,102
Less: Current portion	17,142			9,767
Noncurrent accrued product warranty	$	8,359		$	13,335

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 $2.7 million, or $0.13 per diluted share.

For the Year Ended December 31,

Customer A

Customer B