v3.19.1
COMMITMENTS AND CONTINGENT LIABILITIES
3 Months Ended
Mar. 31, 2019
Commitments and Contingencies Disclosure [Abstract]  
COMMITMENTS AND CONTINGENT LIABILITIES
NOTE 8:-
COMMITMENTS AND CONTINGENT LIABILITIES

a.
Guarantees:

As of March 31, 2019 (unaudited), contingent liabilities exist regarding guarantees in the amount of $13,353, $1,938, $55 and $176 in respect of bank loans, office rent lease agreements, customs transactions and credit card limits, respectively.
 
b.
Contractual purchase obligations:
 
The Company has contractual obligations to purchase goods and raw materials. These contractual purchase obligations relate to inventories held by contract manufacturers and purchase orders initiated by the contract manufacturers and suppliers, which cannot be canceled without penalty. The Company utilizes third parties to manufacture its products. In addition, it acquires raw materials or other goods and services, including product components, by issuing to suppliers authorizations to purchase based on its projected demand and manufacturing needs.

As of March 31, 2019 (unaudited), the Company had non-cancellable purchase obligations totaling approximately $242,551 out of which the Company already recorded a provision for loss in the amount of $2,061.

As of March 31, 2019 (unaudited), the Company had contractual obligations for capital expenditures totaling approximately $30,183. These commitments reflect purchases of automated assembly lines and other machinery related to the Company’s manufacturing.

c.
Legal claims:

From time to time, the Company may be involved in various claims and legal proceedings. The Company reviews the status of each matter and assesses its potential financial exposure. If the potential loss from any claim or legal proceeding is considered probable and the amount can be reasonably estimated, the Company accrues a liability for the estimated loss. These accruals are reviewed at least quarterly and adjusted to reflect the impact of negotiations, settlements, rulings, advice of legal counsel and other information and events pertaining to a particular matter.

In June 2018, the Company was served with a complaint from a trustee of a former customer that filed for bankruptcy in the US. The lawsuit seeks to recover approximately $2,481 based on theories of preferential and fraudulent transfers. During the three months ended March 31, 2019 (unaudited), the Company entered into mediation process which has not yet settled. As of March 31, 2019 (unaudited), the Company has recorded an adequate provision in expectation of a settlement.