REVENUE

9 Months Ended

Sep. 30, 2020

Revenue from Contract with Customer [Abstract]

REVENUE

REVENUE

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 three and nine months ended September 30, 2020, and 2019, was approximately as follows:

	For the Three Months Ended		For the Nine Months Ended
	September 30, 2020	September 30, 2019	September 30, 2020	September 30, 2019
Protection (screen protection and cases)	63%	59%	60%	57%
Power (power management and power cases)	26%	31%	28%	31%
Productivity (keyboards and other)	6%	7%	9%	8%
Audio	5%	3%	3%	4%

During the three and nine months ended September 30, 2020, the Company revised the online channel to include sales to a key direct-to-consumer customer whose sales were included within the indirect channel in prior periods. The Company also made the same change to 2019 net sales by key distribution channels to make the net sales comparable. The percentage of net sales related to the Company’s key distribution channels for the three and nine months ended September 30, 2020, and 2019, was approximately as follows:

	For the Three Months Ended		For the Nine Months Ended
	September 30, 2020	September 30, 2019	September 30, 2020	September 30, 2019
Indirect channel	84%	86%	82%	82%
Online	12%	9%	14%	12%
Franchisees	4%	5%	4%	6%

The percentage of net sales related to the Company’s key geographic regions for the three and nine months ended September 30, 2020, and 2019, was approximately as follows:

	For the Three Months Ended		For the Nine Months Ended
	September 30, 2020	September 30, 2019	September 30, 2020	September 30, 2019
United States	74%	79%	78%	75%
Europe	19%	12%	16%	13%
Other	7%	9%	6%	12%

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 September 30, 2020, and December 31, 2019:

	September 30, 2020		December 31, 2019
Receivables, which comprises the balance in accounts receivable, net of allowances	$	91,196	$	142,804
Right of return assets, which are included in prepaid expenses and other current assets	431		2,177
Refund liabilities, which are included in sales return liability	23,175		39,790
Warranty liabilities, which are included in sales return liability	2,493		4,063
Contract liabilities, which are included in accrued liabilities	30		39

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.

The following table summarizes the activities in the Company’s warranty liabilities for the nine months ended September 30, 2020, and 2019:

	For the Nine Months Ended
	September 30, 2020		September 30, 2019
Balance at beginning of period	$	4,063	$	4,646
Accrual for product warranty	3,372		7,858
Warranty claims charged	(4,943)		(8,581)
Foreign currency translation gain	1		—
Balance at end of period	$	2,493	$	3,923