Summary of Significant Accounting Policies and Other Information (Tables)

3 Months Ended

Mar. 31, 2020

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 March 31,
	2020		2019
Customer A	15	%	17	%
Customer B	10	%	**
Customer C	14	%	**

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:

** Less than 10% of the total

Schedule of Inventory, Current

Inventories consist of the following:



(in thousands) Inventories	As of March 31, 2020			As of December 31, 2019
Raw materials	$	105,750		$	90,677
Work in process	4,426			2,007
Finished goods	18,641			19,119
Total inventories	128,817			111,803
Inventory allowance	(3,217		)	(2,964		)
Inventories, net	$	125,600		$	108,839

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



(in thousands)	For the Three Months Ended March 31,
Inventory Allowance	2020			2019
Balance at beginning of period	$	2,964		$	5,730
Charged to expense	526			314
Write-offs	(273		)	(235		)
Balance at end of period	$	3,217		$	5,809

Schedule of Other Accrued Liabilities

Other accrued liabilities consisted of the following:



(in thousands) Other Accrued Liabilities	As of March 31, 2020		As of December 31, 2019
Accrued product warranty	$	14,027	$	17,142
Litigation reserves ^*	5,420		5,020
Contract liabilities	36,670		26,898
Accrued compensation and benefits	6,515		6,599
Operating lease liabilities	3,732		3,789
Accrued interest expense	1,759		1,087
Other	7,475		5,495
Total	$	75,598	$	66,030

As of March 31, 2020 and December 31, 2019, litigation reserves primarily consisted of reserves related to ongoing government investigations and the settlement of the Federal Derivative Litigation. The Company concluded that insurance recovery was probable related to $2.2 million and $1.9 million of the litigation reserves as of March 31, 2020 and December 31, 2019, 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	2020			2019
Balance at beginning of period	$	25,501		$	23,101
Current year provision	2,325			1,467
Changes in estimates for preexisting warranties ^*	661			2,730
Payments made during the period	(3,926		)	(1,579		)
Balance at end of period	24,561			25,719
Less: Current portion	14,027			18,062
Noncurrent accrued product warranty	$	10,534		$	7,657

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 2020 and 2019, the Company recorded charges for changes in estimates of preexisting warranties of $0.7 million, or $0.03 per diluted share, and $2.7 million, or $0.12 per diluted share, respectively.

As of March 31, 2020

As of December 31, 2019

Customer A

Customer B

Customer C