Concentrations of risk and geographic information

12 Months Ended

Dec. 31, 2020

Concentrations of risk and segment information

Concentrations of risk and geographic information

Concentration of risk. Financial instruments which potentially subject the Company to concentration of credit risk includes cash and cash equivalents, restricted cash, marketable securities, accounts receivable, and derivative instruments, including the Capped Calls associated with the 2025 Notes. The Company places cash and cash-equivalents with high-credit-quality financial institutions, however the Company maintains cash balances in excess of the FDIC insurance limits. The Company believes that credit risk for accounts receivable is mitigated by the Company’s credit evaluation process, relatively short collection terms and dispersion of its customer base. The Company generally does not require collateral and losses on trade receivables have historically been within management’s expectations. The Company believes its’ counterparty credit risk related to its’ derivative instruments is mitigated by transacting with major financial institutions with high credit ratings.

Customers who represented 10% or more of the Company’s net accounts receivable balance were as follows:


	December 31, 2020	December 31, 2019
Customer A	23%	11%
Customer B	15%	15%
Customer C	12%	*

* Less than 10% of net accounts receivable for the period indicated.

The following table summarizes the Company’s accounts receivables sold, without recourse, and factoring fees paid:


	Year ended December 31,
(in thousands)		2020		2019		2018
Accounts receivable sold		$	99,410	$	120,728	$	126,220
Factoring fees		678		1,509		1,639

Third-party customers who represented 10% or more of the Company’s total revenue were as follows:


	Year ended December 31,
		2020	2019	2018
Customer A		10%	11%	13%

Supplier concentration. The Company relies on third parties for the supply and manufacture of its products, some of which are sole-source suppliers. The Company believes that outsourcing manufacturing enables greater

scale and flexibility. As demand and product lines change, the Company periodically evaluates the need and advisability of adding manufacturers to support its operations. In instances where a supply and manufacture agreement does not exist or suppliers fail to perform their obligations, the Company may be unable to find alternative suppliers or satisfactorily deliver its products to its customers on time, if at all. The Company also relies on third parties with whom it outsources supply chain activities related to inventory warehousing, order fulfillment, distribution and other direct sales logistics. In instances where an outsourcing agreement does not exist or these third parties fail to perform their obligations, the Company may be unable to find alternative partners or satisfactorily deliver its products to its customers on time.

Geographic information

Revenue by geographic region was as follows:


	Year ended December 31,					2020 vs 2019		2019 vs 2018
(in thousands)		2020		2019		2018		% Change		% Change
Americas		$	483,331	$	523,975	$	494,797	(8)	%	6	%
Europe, Middle East and Africa (EMEA)		218,670		359,187		366,438		(39)		(2)
Asia and Pacific (APAC)		189,924		311,489		287,102		(39)		8
Total revenue		$	891,925	$	1,194,651	$	1,148,337	(25)	%	4	%

Revenue from the United States, which is included in the Americas geographic region, was $428.3 million, $429.9 million and $401.1 million for 2020, 2019 and 2018, respectively. No other individual country exceeded 10% of total revenue for any period presented. The Company does not disclose revenue by product category as it does not track sales incentives and other revenue adjustments by product category to report such data.

As of December 31, 2020 and 2019, long-lived assets, which represent net property and equipment, located outside the United States, primarily in Hong Kong and mainland China, were $6.9 million and $11.0 million, respectively.