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Revenue
 12 Months Ended
Dec. 31, 2019
Revenue from Contract with Customer [Abstract]  
Revenue REVENUE
Performance Obligations
The Company’s revenue is derived from sales of device accessories, including screen protection, power cases, power management, wireless charging, personal audio, mobile keyboards and protective cases; through its indirect channels, including retailers, distributors, televised home shopping channels and franchisees; and through its direct channels, including its website www.ZAGG.com, corporate-owned and franchise-owned mall kiosks, cellphone repair stores, and Company-branded stores. Such sales mostly contain promises to transfer manufactured products to customers, and in limited arrangement to provide services to customers, in which judgment is required to determine whether such promises are considered distinct performance obligations and should be accounted separately or combined into a single performance obligation. The products sold by the Company are considered distinct on their own and accounted for separately. In addition, warranties provided to customers are considered as assurance-type warranties under Topic 606 due to the fact that such warranties primarily provide exchange of products for repair and do not offer additional services to the customers and consequently, they are not accounted in separate performance obligations but combined with the promised products sold into a single performance obligation.
Revenue Recognition
When determining the transaction price, or in other words, the amount of revenue to be recognized, transaction price is based on the observable standalone selling prices charged to customers that are mutually agreed upon by both parties before any orders are authorized, reduced by estimated sales returns and discounts, which are considered as variable consideration under Topic 606. To estimate the amount of variable consideration for revenue adjustment, the Company uses the expected value method with inputs from a portfolio of data where significant judgment is applied. As concluded above, majority of products sold or services provided is either determined as a separate performance obligation or to be combined into a single performance obligation and therefore, no allocation of revenue across several performance obligations is required.
For substantially all of the Company's sales, the performance obligations are satisfied and revenues are recognized at a point in time when control of the products is transferred to customers, which generally occurs upon delivery to customers or to shipping carriers. Specifically, the Company's standard shipping terms for product sales are free on board (“FOB”) shipping point at which the Company recognizes revenues when the products are shipped. However, for certain customers, the contractual shipping terms are FOB destination in which revenues are recognized when the products are delivered as control is transferred to customers at such point.
The payment terms for the Company's customers vary by sales channels in which the products are sold. For products sold through the Company's direct channels, customers typically pay in full at a point of sale. For products sold through indirect channels and franchisees, customers are extended credit that have terms which are less than six months.
Promotional products given to customers or potential customers are recognized as a cost of sales. Cash incentives provided to the Company's customers are recognized as a reduction of the related sale price and, therefore are a reduction in revenues.
Disaggregation of Revenue from Contracts with Customers
In the following tables, revenue from contracts with customers are disaggregated by key product lines, key distribution channels, and key geographic regions.
The percentage of net sales related to the Company’s key product lines for the years ended December 31, 2019, 2018, and 2017, was approximately as follows:

For the Years Ended December 31,
201920182017
Protection (screen protection and cases)52%  57%  48%  
Power (power management and power cases)36%  32%  41%  
Audio5%  5%  5%  
Productivity (keyboards and other)7%  6%  6%  
The percentage of net sales related to the Company’s key distribution channels for the years ended December 31, 2019, 2018, and 2017, was approximately as follows:
For the Years Ended December 31,
201920182017
Indirect87%  88%  89%  
Website8%  8%  8%  
Franchisees5%  4%  3%  
The percentage of net sales related to the Company’s key geographic regions for the years ended December 31, 2019, 2018, and 2017, was approximately as follows:
For the Years Ended December 31,
201920182017
United States77%  84%  84%  
Europe13%  9%  9%  
Other10%  7%  7%  
Contract Balances
Timing of revenue recognition may differ from timing of invoicing to customers or timing of consideration received. The following table provides information about receivables, right of return assets, contract liabilities, refund liabilities, and warranty liabilities from the Company's contracts with customers as of December 31, 2019 and 2018:
December 31, 2019December 31, 2018
Receivables, which comprises the balance in accounts receivable, net of allowances$142,804  $156,667  
Right of return assets, which are included in prepaid expenses and other current assets2,177  999  
Refund liabilities, which are included in sales return liability39,790  49,786  
Warranty liabilities, which are included in sales return liability4,063  4,646  
Contract liabilities, which are included in accrued liabilities39  96  
The current balance of the right of return assets is the estimated amount of inventory to be returned that is expected to be resold. The current balance of refund liabilities is the expected amount of estimated sales returns, discounts and other credits from sales that have occurred. The current balance of warranty liabilities is the expected amount of warranty claim returns from sales that have occurred. The current balance of contract liabilities primarily relates to the advance consideration received from customers for products for which transfer of control has not yet occurred and therefore, revenue is deferred and will be recognized when the transfer of control has been completed.
During the year ended December 31, 2019, revenue recognized that was included in the contract liability balance as of December 31, 2018, was $69.
The following summarizes the activities in the Company’s warranty liabilities for the year ended December 31, 2019 and 2018:
December 31, 2019December 31, 2018
Balance at beginning of year$4,646  $4,189  
Additions11,047  14,292  
Warranty claims charged(11,629) (13,836) 
Foreign currency translation gain(1) 1  
Balance at end of year $4,063  $4,646  
Practical Expedients and Policy Elections
The Company applies the following practical expedients in its application of Topic 606:
•The Company does not adjust the transaction price for significant financing components for periods less than one year;
•The Company recognizes the incremental costs of obtaining contracts as an expense when incurred if the amortization period of the assets that the Company otherwise would have recognized is one year or less. These costs are included in selling, general, and administrative expenses;
•The Company recognizes the cost for shipping and handling as a fulfillment activity after control over products have transferred to the customer. For product sales, the standard shipping terms are FOB shipping point under which revenue is recorded when the product is shipped, net of estimated returns and discounts. Shipping and handling costs are included in cost of sales; and
•The Company does not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less and (ii) contracts for which the Company recognizes revenue at the amount to which it has the right to invoice for services performed.