Accounts Receivable

12 Months Ended

Dec. 31, 2017

Receivables [Abstract]

Accounts Receivable

3. Accounts Receivable

Accounts receivable as of December 31, 2017 and 2016 consisted of the following (in thousands):

	December 31,
	2017			2016
Accounts receivable	$	86,167		$	63,116
Notes receivable		7,425			281
Less:
Allowances for doubtful accounts		(94	)		(83	)
Sales return reserves		(628	)		(1,107	)
Low yield compensation reserve		(844	)		(432	)
Accounts receivable, net	$	92,026		$	61,775

Changes in allowance for doubtful accounts for the years ended December 31, 2017, 2016 and 2015 are as follows (in thousands):

	Year Ended December 31,
	2017			2016			2015
Beginning balance	$	(83	)	$	(236	)	$	(263	)
Reversal		—			148			3
Translation adjustments		(11	)		5			24
Ending balance	$	(94	)	$	(83	)	$	(236	)

Changes in sales return reserves for the years ended December 31, 2017, 2016 and 2015 are as follows (in thousands):

	Year Ended December 31,
	2017			2016			2015
Beginning balance	$	(1,107	)	$	(1,481	)	$	(787	)
Provision		(40	)		(26	)		(1,586	)
Usage		626			361			851
Translation adjustments		(107	)		39			41
Ending balance	$	(628	)	$	(1,107	)	$	(1,481	)

Changes in low yield compensation reserve for the years ended December 31, 2017, 2016 and 2015 are as follows (in thousands):

	Year Ended December 31,
	2017			2016			2015
Beginning balance	$	(432	)	$	(480	)	$	(1,100	)
Reversal (Provision)		(362	)		(29	)		69
Usage		22			63			512
Translation adjustments		(72	)		14			39
Ending balance	$	(844	)	$	(432	)	$	(480	)

The Company has entered into an agreement to sell selected trade accounts receivable to a financial institution from time to time since March 2012. After the sale, the Company does not retain any interest in the receivables and the applicable financial institution collects these accounts receivable directly from the customer. The proceeds from the sales of these accounts receivable totaled $18,973 thousand, $25,146 thousand and $57,185 for the years ended December 31, 2017, 2016 and 2015, respectively, and these sales resulted in pre-tax losses of $55 thousand, $78 thousand and $114 thousand for the years ended December 31, 2017, 2016 and 2015, respectively, which are included in selling, general and administrative expenses in the consolidated statements of operations. Net proceeds of the accounts receivable sale program are recognized in the consolidated statements of cash flows as part of operating cash flows.

The Company uses receivable discount programs with certain customers. These discount arrangements allow the Company to accelerate collection of customers’ receivables.