Commitments and Contingencies
|6 Months Ended|
Jun. 30, 2021
|Commitments and Contingencies Disclosure [Abstract]|
|Commitments and Contingencies||Commitments and Contingencies
Inventory Purchase and Other Contractual Obligations
As of June 30, 2021, future minimum payments under inventory purchase and other obligations are as follows:
Other obligations consist of contractual payments due for software licenses.
Our inventory purchase obligations and other obligations increased by $73.8 million to $195.5 million as of June 30, 2021, from $121.7 million as of December 31, 2020 primarily as a result of increased orders of inventory placed with our vendors during the period, partially offset by a decrease in software license obligations (Note 3).
Jointly Funded Research and Development
In the second quarter of 2021, the Company entered into a contract for a jointly funded research and development project to develop technology that may be commercialized into a product in the future. As the Company may be required to repay all or a portion of the funds provided by the other party under certain conditions, total funds received to date from the other party of $3.8 million has been recorded in other long-term liabilities. Additional amounts under the contract are tied to certain milestones and will also be recorded as a long-term liability as payment due under such milestones are received. The Company currently expects to de-recognize the liability when the contingencies associated with the repayment conditions have been resolved.
From time to time, the Company is subject to threats of litigation or actual litigation in the ordinary course of business, some of which may be material. The Company believes that there are no currently pending litigation matters that, if determined adversely to the Company’s interests, would have a material effect on the Company’s financial position, results of operations, or cash flows or that would not be covered by the Company’s existing liability insurance.
The entire disclosure for commitments and contingencies.
Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef