Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2020

Reconciliation of Allowance for Sales Returns

The following table provides a reconciliation of the activity related to the Company’s sales return reserve (in thousands):


	Years Ended December 31,
	2020		2019		2018
	(in thousands)
Beginning balance	$	29,043	$	24,522	$	15,470
Provision	106,178		95,094		52,088
Sales returns	(91,235)		(90,573)		(43,036)

Ending balance	$	43,986	$	29,043	$	24,522

Reconciliation of Reserve for Warranty Expense

The following table provides a reconciliation of the activity related to the Company’s accrued warranty expense:


	Years Ended December 31,
	2020		2019		2018
	(In thousands)
Beginning balance	$	9,636	$	7,610	$	6,657
Provision	7,926		8,311		9,437
Provision liability assumed from acquisition	—		2,208		—
Claims paid/costs incurred	(8,198)		(8,493)		(8,484)
Ending balance	$	9,364	$	9,636	$	7,610

Estimated Useful Lives

Depreciation is computed using the straight-line method over estimated useful lives generally as follows:


Buildings and improvements			10-30 years
Machinery and equipment			5-10 years
Furniture, computers and equipment			3-5 years
Internal-use software			3-5 years
Production molds			2-5 years

Other Income (Expense) Net

Other income, net primarily includes gains and losses on foreign currency forward contracts, cross-currency debt swap contracts and foreign currency transactions. The components of other income, net are as follows:


	Years Ended December 31,
	2020		2019		2018
	(In thousands)
Foreign currency forward contract gain, net	$	2,910	$	6,947	$	10,085
Foreign currency transaction gain (loss), net	9,024		(5,838)		(2,824)
Settlement of cross-currency swap contract (See Note 19)	11,046		—		—
Other	1,989		485		518
	$	24,969	$	1,594	$	7,779

Schedule of Accumulated Other Comprehensive Income (Loss)

The following table details the amounts reclassified from accumulated other comprehensive income to cost of goods sold, as well as changes in foreign currency translation for the years ended December 31, 2020, 2019 and 2018 (in thousands):


	Derivative Instruments		Foreign Currency Translation		Total
Accumulated other comprehensive loss, January 1, 2018	$	(328)	$	(5,838)	$	(6,166)
Change in derivative instruments	389		—		389
Net losses reclassified to cost of goods sold	(236)		—		(236)
Foreign currency translation adjustments	—		(7,969)		(7,969)
Income tax expense	282		—		282
Accumulated other comprehensive loss, December 31, 2018, after tax	107		(13,807)		(13,700)
Change in derivative instruments	2,811		—		2,811
Net gains reclassified to cost of goods sold	(1,165)		—		(1,165)
Net gains reclassified to other income (expense)	(2,756)				(2,756)
Net gains reclassified to interest expense	(4,475)				(4,475)
Foreign currency translation adjustments	—		(4,412)		(4,412)
Income tax expense	1,275		—		1,275
Accumulated other comprehensive loss, December 31, 2019, after tax	(4,203)		(18,219)		(22,422)
Change in derivative instruments	2,956		—		2,956
Net gains reclassified to cost of goods sold	(1,028)		—		(1,028)
Net gains reclassified to other income (expense)	(16,780)		—		(16,780)
Net losses reclassified to interest expense	2,122		—		2,122
Foreign currency translation adjustments	—		25,690		25,690
Income tax expense	2,916		—		2,916
Accumulated other comprehensive loss, December 31, 2020, after tax	$	(14,017)	$	7,471	$	(6,546)