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Summary of Significant Accounting Policies and Other Information (Tables)
 12 Months Ended
Dec. 31, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Revenue from External Customers by Geographic Areas
The following table summarizes net sales by end market:
(in thousands)
 
For the Year Ended December 31,
 
 
 
 
 
 
2015
 
2014
End Market
 
2017
 
2016
 
(Restated)
 
(Restated)
Industrial
 
$
190,724

 
$
164,245

 
$
174,203

 
$
155,935

Energy
 
159,008

 
115,367

 
137,190

 
191,528

Transportation
 
66,884

 
59,853

 
50,994

 
117

Total
 
$
416,616

 
$
339,465

 
$
362,387

 
$
347,580

The following table summarizes net sales by geographic area:
(in thousands)
 
For the Year Ended December 31,
 
 
 
 
 
 
2015
 
2014
Geographic Area
 
2017
 
2016
 
(Restated)
 
(Restated)
North America
 
$
355,268

 
$
304,621

 
$
327,479

 
$
323,474

Pacific Rim
 
42,221

 
22,827

 
25,356

 
17,719

Europe
 
14,205

 
11,065

 
9,552

 
5,705

Other
 
4,922

 
952

 
—

 
682

Total
 
$
416,616

 
$
339,465

 
$
362,387

 
$
347,580
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 Year Ended December 31,
 
 
 
 
 
 
2015
 
2014
 
 
2017
 
2016
 
(Restated)
 
(Restated)
Customer A
 
16
%
 
17
%
 
16
%
 
10
%
Customer B
 
10
%
 
**

 
**

 
**

Customer C
 
**

 
12
%
 
**

 
10
%
The following table presents customers individually accounting for more than 10% of the Company’s consolidated accounts receivable:
 
 
As of December 31,
 
 
 
 
 
 
2015
 
2014
 
 
2017
 
2016
 
(Restated)
 
(Restated)
Customer A
 
18
%
 
**

 
17
%
 
15
%
Customer B
 
13
%
 
**

 
**

 
**

Customer C
 
**

 
**

 
12
%
 
**

Customer D
 
**

 
30
%
 
**

 
**

Customer E
 
**

 
**

 
**

 
16
%
Customer F
 
**

 
**

 
**

 
11
%
Customer G
 
**

 
**

 
10
%
 
11
%
The following table presents suppliers individually accounting for more than 10% of the Company’s purchases:
 
 
For the Year Ended December 31,
 
 
 
 
 
 
2015
 
2014
 
 
2017
 
2016
 
(Restated)
 
(Restated)
Supplier A
 
21
%
 
13
%
 
11
%
 
15
%
Supplier B
 
**

 
**

 
18
%
 
21
%
**    Less than 10% of the total
Schedule of Inventory, Current
Inventories consist of the following:
(in thousands)
 
As of December 31,
 
 
 
 
 
 
2015
 
2014
Inventories
 
2017
 
2016
 
(Restated)
 
(Restated)
Raw materials
 
$
71,732

 
$
70,498

 
$
102,912

 
$
92,360

Work in process
 
4,535

 
9,270

 
12,315

 
6,021

Finished goods
 
16,684

 
30,862

 
52,136

 
11,904

Total Inventories
 
92,951

 
110,630

 
167,363

 
110,285

Inventory allowance
 
(6,227
)
 
(10,082
)
 
(5,268
)
 
(4,035
)
Inventories, net
 
$
86,724

 
$
100,548

 
$
162,095

 
$
106,250

Activity in the Company’s inventory allowance was as follows:
(in thousands)
 
For the Year Ended December 31,
 
 
 
 
 
 
2015
 
2014
Inventory Allowance
 
2017
 
2016
 
(Restated)
 
(Restated)
Balance at beginning of period
 
$
10,082

 
$
5,268

 
$
4,035

 
$
2,982

Charged to expense
 
421

 
5,341

 
1,712

 
1,856

Write-offs
 
(4,276
)
 
(527
)
 
(479
)
 
(803
)
Balance at end of year
 
$
6,227

 
$
10,082

 
$
5,268

 
$
4,035
Schedule of Other Current Assets
Prepaid expenses and other current assets consist of the following:
(in thousands)
 
As of December 31,
 
 
 
 
 
 
2015
 
2014
Prepaid Expenses and Other Current Assets
 
2017
 
2016
 
(Restated)
 
(Restated)
Insurance proceeds receivable
 
$
10,563

 
$
8,500

 
$
—

 
$
—

Prepaid expenses
 
3,710

 
4,072

 
2,578

 
4,840

Other
 
86

 
1,072

 
125

 
—

Total
 
$
14,359

 
$
13,644

 
$
2,703

 
$
4,840
Property, Plant and Equipment
Estimated useful lives by each type of asset category are as follows:
 
 
Years
Buildings
 
Up to 39
Leasehold improvements
 
Lesser of (i) expected useful life of improvement or (ii) life of lease (including likely extension thereof)
Machinery and equipment
 
1 to 10
Property, plant and equipment by type were as follows:
(in thousands)
 
As of December 31,
 
 
 
 
 
 
2015
 
2014
Property, Plant and Equipment
 
2017
 
2016
 
(Restated)
 
(Restated)
Land
 
$
—

 
$
—

 
$
260

 
$
260

Buildings
 
—

 
—

 
1,471

 
1,471

Leasehold improvements
 
6,320

 
6,199

 
6,450

 
3,333

Machinery and equipment
 
27,379

 
24,490

 
23,523

 
17,500

Construction in progress
 
2,036

 
2,084

 
2,466

 
3,566

Total property, plant and equipment, at cost
 
35,735

 
32,773

 
34,170

 
26,130

Accumulated depreciation
 
(16,775
)
 
(12,646
)
 
(11,361
)
 
(8,176
)
Property, plant and equipment, net
 
$
18,960

 
$
20,127

 
$
22,809

 
$
17,954
Schedule of Other Accrued Liabilities
Other accrued liabilities consisted of the following:
(in thousands)
 
As of December 31,
 
 
 
 
 
 
2015
 
2014
Other Accrued Liabilities
 
2017
 
2016
 
(Restated)
 
(Restated)
Warranty
 
$
12,628

 
$
10,200

 
$
4,429

 
$
2,428

Litigation reserves *
 
12,137

 
10,287

 
3

 
—

Deferred revenue
 
2,822

 
1,818

 
3,564

 
4,602

Accrued compensation and benefits
 
2,593

 
3,975

 
3,825

 
5,476

Professional services
 
1,974

 
1,509

 
544

 
500

Income taxes payable
 
375

 
131

 
107

 
2,973

Other
 
5,833

 
4,587

 
5,374

 
2,203

Total
 
$
38,362

 
$
32,507

 
$
17,846

 
$
18,182

*
Litigation reserves primarily consist of accruals for the settlement of the Securities Litigation as of December 31, 2017 and 2016 as well as the tentative settlement of the Federal Derivative Litigation as of December 31, 2017. The Company concluded that insurance recovery was probable and recognized full recovery of the settlement amounts in “Prepaid expenses and other assets”. See Note 10. Commitments and Contingencies for additional information.
Schedule of Product Warranty Liability
Accrued product warranty activities are presented below:
(in thousands)
 
For the Year Ended December 31,
 
 
 
 
 
 
2015
 
2014
Accrued Product Warranty
 
2017
 
2016
 
(Restated)
 
(Restated)
Balance at beginning of year
 
$
10,200

 
$
4,429

 
$
2,428

 
$
1,274

Current year provision
 
5,405

 
5,716

 
2,953

 
1,348

Acquisitions
 
—

 
—

 
963

 
1,600

Changes in estimates for preexisting warranties *
 
—

 
1,894

 
—

 
—

Payments made during the period
 
(2,977
)
 
(1,839
)
 
(1,915
)
 
(1,794
)
Balance at end of year
 
$
12,628

 
$
10,200

 
$
4,429

 
$
2,428

*
Change in estimates for pre-existing 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 2016, the Company recorded charges for adjustments for changes in estimates of $1.9 million ($1.2 million, net of tax), or $0.11 per diluted share.