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Commitments and Contingencies
3 Months Ended
Mar. 31, 2019
Commitments And Contingencies Disclosure [Abstract]  
Commitments and Contingencies

Note 16. Commitments and Contingencies

Legal Matters

The Company’s industry is characterized by frequent claims and litigation, including claims regarding intellectual property and product liability. As a result, the Company may be subject to various legal proceedings from time to time. The results of any current or future litigation cannot be predicted with certainty, and regardless of the outcome, litigation can have an adverse impact on us because of defense and settlement costs, diversion of management resources, and other factors. Any current litigation is considered immaterial and counter claims have been assessed as remote.

 

Product Warranty

The following is a summary of the Company’s general product warranty reserve for the periods indicated:

 

 

Three Months Ended March 31,

 

 

 

2019

 

 

2018

 

Beginning balance

 

$

63,461

 

 

$

37,156

 

Cost of warranty claims

 

 

(30,347

)

 

 

(2,247

)

Increase in warranty reserve

 

 

32,817

 

 

 

752

 

Ending balance

 

$

65,931

 

 

$

35,661

 

 

Warranty reserve is included in accrued liabilities in the accompanying condensed consolidated balance sheets as of March 31, 2019 and December 31, 2018. Expense relating to the recording of this reserve is recorded in cost of product and product-related services revenue within the accompanying condensed consolidated statements of operations.