Document, Entity and Informatio
Document, Entity and Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Jan. 31, 2017 | Jun. 30, 2016 | |
Class of Stock [Line Items] | |||
Entity Registrant Name | GoPro, Inc. | ||
Entity Central Index Key | 1,500,435 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 1,097,400,000 | ||
Common Class A [Member] | |||
Class of Stock [Line Items] | |||
Entity Common Stock, Shares Outstanding | 105,351,578 | ||
Common Class B [Member] | |||
Class of Stock [Line Items] | |||
Entity Common Stock, Shares Outstanding | 36,760,415 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Net operating loss carryforwards | $ 467,200 | |
Current assets: | ||
Cash and cash equivalents | 192,114 | $ 279,672 |
Marketable securities | 25,839 | 194,386 |
Accounts receivable, net | 164,553 | 145,692 |
Inventory | 167,192 | 188,232 |
Prepaid expenses and other current assets | 38,115 | 25,261 |
Total current assets | 587,813 | 833,243 |
Property and equipment, net | 76,509 | 70,050 |
Intangible assets, net | 33,530 | 31,027 |
Goodwill | 146,459 | 57,095 |
Other long-term assets | 78,329 | 111,561 |
Total assets | 922,640 | 1,102,976 |
Current liabilities: | ||
Accounts payable | 205,028 | 89,989 |
Accrued liabilities | 211,323 | 192,446 |
Deferred revenue | 14,388 | 12,742 |
Total current liabilities | 430,739 | 295,177 |
Long-term taxes payable | 26,386 | 21,770 |
Other long-term liabilities | 18,570 | 13,996 |
Total liabilities | 475,695 | 330,943 |
Commitments, contingencies and guarantees | ||
Stockholders’ equity: | ||
Preferred stock, $0.0001 par value, 5,000 shares authorized; none issued | 0 | 0 |
Common stock and additional paid-in capital, $0.0001 par value, 500,000 Class A shares authorized,104,647 and 100,596 shares issued and outstanding, respectively; 150,000 Class B shares authorized, 36,712 and 36,005 shares issued and outstanding, respectively | 757,226 | 663,311 |
Treasury stock, at cost, 1,545 and 1,545 shares, respectively | (35,613) | (35,613) |
Retained earnings (accumulated deficit) | (274,668) | 144,335 |
Total stockholders’ equity | 446,945 | 772,033 |
Total liabilities and stockholders’ equity | $ 922,640 | $ 1,102,976 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2016 | Dec. 31, 2015 |
Preferred Stock, par value (usd per share) | $ 0.0001 | $ 0.0001 |
Preferred Stock, Shares Authorized (shares) | 5,000,000 | 5,000,000 |
Preferred Stock, Shares Issued (shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Treasury Stock, Shares (shares) | 1,545,000 | 1,545,000 |
Common Class A [Member] | ||
Common Stock, Shares Authorized (shares) | 500,000,000 | 500,000,000 |
Common Stock, Shares, Issued (shares) | 104,647,000 | 100,596,000 |
Common stock, shares, outstanding (shares) | 104,647,000 | 100,596,000 |
Common Class B [Member] | ||
Common Stock, Shares Authorized (shares) | 150,000,000 | 150,000,000 |
Common Stock, Shares, Issued (shares) | 36,712,000 | 36,005,000 |
Common stock, shares, outstanding (shares) | 36,712,000 | 36,005,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Statement [Abstract] | |||
Revenue | $ 1,185,481 | $ 1,619,971 | $ 1,394,205 |
Cost of revenue | 723,561 | 946,757 | 766,970 |
Gross profit | 461,920 | 673,214 | 627,235 |
Operating expenses: | |||
Research and development | 358,902 | 241,694 | 151,852 |
Sales and marketing | 368,620 | 268,939 | 194,377 |
General and administrative | 107,367 | 107,833 | 93,971 |
Total operating expenses | 834,889 | 618,466 | 440,200 |
Operating income (loss) | (372,969) | 54,748 | 187,035 |
Other expense, net | (2,205) | (2,163) | (6,060) |
Income (loss) before income taxes | (375,174) | 52,585 | 180,975 |
Income tax expense | 43,829 | 16,454 | 52,887 |
Net income (loss) | (419,003) | 36,131 | 128,088 |
Less: net income allocable to participating securities | 0 | 0 | (16,512) |
Net income (loss) attributable to common stockholders—basic | (419,003) | 36,131 | 111,576 |
Add: net income allocable to dilutive participating securities | 0 | 0 | 2,277 |
Net income (loss) attributable to common stockholders—diluted | $ (419,003) | $ 36,131 | $ 113,853 |
Net income per share attributable to common stockholders - Basic (in dollars per share) | $ (3.01) | $ 0.27 | $ 1.07 |
Net income per share attributable to common stockholders - Diluted (in dollars per share) | $ (3.01) | $ 0.25 | $ 0.92 |
Weighted-average shares used to compute net income per share attributable to common stockholders - Basic (in shares) | 139,425 | 134,595 | 104,453 |
Weighted-average shares used to compute net income per share attributable to common stockholders - Diluted (in shares) | 139,425 | 146,486 | 123,630 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Statement of Cash Flows [Abstract] | |||
Net income (loss) | $ (419,003) | $ 36,131 | $ 128,088 |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||
Depreciation and amortization | 41,640 | 28,981 | 17,945 |
Stock-based compensation | 69,527 | 80,680 | 71,399 |
Excess tax benefit from stock-based compensation | (3,463) | (29,348) | (77,134) |
Deferred income taxes | 38,568 | (11,468) | (16,920) |
Non-cash restructuring charges | 17,601 | 0 | 0 |
Impairment of intangible assets | 7,088 | 0 | 0 |
Other | 7,574 | 5,427 | 1,865 |
Changes in operating assets and liabilities: | |||
Accounts receivable, net | (18,816) | 38,313 | (61,323) |
Inventory | 21,040 | (35,005) | (41,033) |
Prepaid expenses and other assets | (14,618) | (23,281) | (30,317) |
Accounts payable and other liabilities | 142,941 | 68,461 | 98,354 |
Deferred revenue | 2,168 | (1,280) | 5,998 |
Net cash provided by (used in) operating activities | (107,753) | 157,611 | 96,922 |
Investing activities: | |||
Purchases of property and equipment, net | (43,627) | (51,245) | (27,210) |
Purchases of marketable securities | 0 | (220,055) | (103,827) |
Maturities of marketable securities | 119,918 | 94,680 | 1,083 |
Sale of marketable securities | 47,348 | 30,048 | 0 |
Acquisitions, net of cash acquired | (104,353) | (65,405) | (3,950) |
Net cash provided by (used in) investing activities | 19,286 | (211,977) | (133,904) |
Financing activities: | |||
Proceeds from issuance of common stock, net | 2,775 | 22,833 | 300,097 |
Excess tax benefit from stock-based compensation | 3,463 | 29,348 | 77,134 |
Payment of deferred acquisition-related consideration | (950) | 0 | (2,000) |
Payment of credit facility issuance costs | (3,333) | 0 | 0 |
Payment of deferred public offering costs | 0 | (903) | (5,730) |
Repurchases of outstanding common stock | 0 | (35,613) | 0 |
Repayment of debt | 0 | 0 | (114,000) |
Net cash provided by financing activities | 1,955 | 15,665 | 255,501 |
Effect of exchange rate changes on cash and cash equivalents | (1,046) | (1,556) | 0 |
Net increase (decrease) in cash and cash equivalents | (87,558) | (40,257) | 218,519 |
Cash and cash equivalents at beginning of period | 279,672 | 319,929 | 101,410 |
Cash and cash equivalents at end of period | 192,114 | 279,672 | 319,929 |
Supplementary cash flow disclosure: | |||
Cash paid for interest | 0 | 0 | 1,853 |
Cash paid (refunded) for income taxes, net | 9,690 | (1,093) | 37,283 |
Non-cash investing and financing activities: | |||
Conversion of preferred stock to common stock, net | 0 | 0 | 77,198 |
Purchases of property and equipment included in accounts payable and accrued liabilities | 2,258 | 5,153 | 2,474 |
Reclass of deferred public offering costs to additional paid-in capital | $ 0 | $ 0 | $ 7,722 |
Consolidated Statements of Rede
Consolidated Statements of Redeemable Convertible Preferred Stock and Stockholders' Equity (Deficit) Statement - USD ($) shares in Thousands, $ in Thousands | Total | Special Termination Benefits [Member] | Preferred Stock [Member]Redeemable Convertible Preferred Stock [Member] | Common Stock and Additional Paid in Capital [Member] | Common Stock and Additional Paid in Capital [Member]Special Termination Benefits [Member] | Treasury Stock [Member] | Retained Earnings (accumulated deficit) [Member] |
Beginning Balance at Dec. 31, 2013 | $ (5,366) | $ 77,198 | $ 14,518 | $ 0 | $ (19,884) | ||
Beginning Balance (shares) at Dec. 31, 2013 | 30,523 | 81,420 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Issuance of common stock upon public offerings, net of offering costs | 286,247 | $ 286,247 | |||||
Issuance of common stock upon public offerings, net of offering costs (shares) | 10,188 | ||||||
Conversion of preferred stock to common stock upon initial public offering, net of issuance cost accretion | 77,198 | $ (77,198) | $ 77,198 | ||||
Conversion of preferred stock to common stock upon initial public offering, net of issuance cost accretion (shares) | (30,523) | 30,523 | |||||
Common stock issued under employee benefit plans, net of shares withheld for tax | 7,681 | $ 7,681 | |||||
Common stock issued under employee benefit plans, net of shares withheld for tax (shares) | 8,414 | ||||||
Retirement of common stock | (1,177) | $ (1,177) | |||||
Retirement of common stock (shares) | (1,430) | ||||||
Stock-based compensation expense | 71,399 | $ 71,399 | |||||
Excess tax benefit from stock-based compensation | 77,134 | 77,134 | |||||
Net income (loss) | 128,088 | 128,088 | |||||
Ending Balance at Dec. 31, 2014 | 641,204 | $ 0 | $ 533,000 | 0 | 108,204 | ||
Ending Balance (shares) at Dec. 31, 2014 | 0 | 129,115 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Common stock issued under employee benefit plans, net of shares withheld for tax | 36,413 | $ 36,413 | |||||
Common stock issued under employee benefit plans, net of shares withheld for tax (shares) | 14,249 | ||||||
Taxes paid related to net share settlements | (13,943) | $ (13,943) | |||||
Retirement of common stock (shares) | (5,218) | ||||||
Repurchase of outstanding common stock | (35,613) | (35,613) | |||||
Repurchase of outstanding common stock (shares) | (1,545) | ||||||
Stock-based compensation expense | 80,583 | $ 80,583 | |||||
Excess tax benefit from stock-based compensation | 27,258 | 27,258 | |||||
Net income (loss) | 36,131 | 36,131 | |||||
Ending Balance at Dec. 31, 2015 | 772,033 | $ 0 | $ 663,311 | (35,613) | 144,335 | ||
Ending Balance (shares) at Dec. 31, 2015 | 0 | 136,601 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Common stock issued under employee benefit plans, net of shares withheld for tax | 10,103 | $ 10,103 | |||||
Common stock issued under employee benefit plans, net of shares withheld for tax (shares) | 3,936 | ||||||
Taxes paid related to net share settlements | (6,889) | $ (6,889) | |||||
Shares issued to third-party vendor for services (Note 11) | 7,297 | $ 7,297 | |||||
Shares issued to third-party vendor for services (Note 11) (shares) | 822 | ||||||
Stock-based compensation expense | 69,499 | $ 15,566 | $ 69,499 | $ 15,566 | |||
Excess tax benefit from stock-based compensation | (1,661) | (1,661) | |||||
Net income (loss) | (419,003) | (419,003) | |||||
Ending Balance at Dec. 31, 2016 | $ 446,945 | $ 0 | $ 757,226 | $ (35,613) | $ (274,668) | ||
Ending Balance (shares) at Dec. 31, 2016 | 0 | 141,359 |
Summary of business and signifi
Summary of business and significant accounting policies | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Summary of significant accounting policies | Summary of business and significant accounting policies GoPro, Inc. (GoPro or the Company) makes mountable and wearable cameras, drones and accessories. The Company's products are sold globally through retailers, wholesale distributors and on the Company’s website. The Company's global corporate headquarters are located in San Mateo, California. Basis of presentation . The accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (GAAP). The Company's fiscal year ends on December 31, and its fiscal quarters end on March 31, June 30, and September 30. Principles of consolidation. These consolidated financial statements include all the accounts of the Company and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Use of estimates. The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the amounts reported and disclosed in the Company’s consolidated financial statements and accompanying notes. The Company bases its estimates and assumptions on historical experience and on various other factors that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results could differ materially from management's estimates. To the extent there are material differences between the estimates and the actual results, future results of operations could be affected. Comprehensive income (loss). For all periods presented, comprehensive income (loss) approximated net income (loss). Therefore, the consolidated statements of comprehensive income (loss) have been omitted. Prior period reclassifications. Reclassifications of certain prior period amounts in the consolidated financial statements have been made to conform to the current period presentation. Cash equivalents and marketable securities. Cash equivalents primarily consist of investments in money market funds with maturities of three months or less from the date of purchase. Marketable securities consist of commercial paper, U.S. agency securities, and corporate debt securities, and are classified as available-for-sale securities. The Company views these securities as available to support current operations and it has classified all available-for-sale securities as current assets. Available-for-sale securities are carried at fair value with unrealized gains and losses, if any, included in stockholders' equity. Unrealized losses are charged against other income (expense), net, for declines in fair value below the cost of an individual investment that is deemed to be other than temporary. The Company has not identified any marketable securities as other-than-temporarily impaired for the periods presented. The cost of securities sold is based upon a specific identification method. Accounts receivable and allowance for doubtful accounts. Accounts receivable are stated at invoice value less estimated allowances for returns and doubtful accounts. Allowances are recorded based on the Company's assessment of various factors, such as: historical experience, credit quality of its customers, age of the accounts receivable balances, geographic related risks, economic conditions and other factors that may affect a customer’s ability to pay. The allowance for doubtful accounts as of December 31, 2016 and 2015 was $1.3 million and $1.4 million , respectively. Inventory. Inventory consists of finished goods and component parts, which are purchased directly or from contract manufacturers. Inventory is stated at the lower of cost or market on a first-in, first-out basis. The Company writes down its inventory for estimated obsolescence or excess inventory equal to the difference between the cost of inventory and estimated market value. The Company’s assessment of market value is based upon assumptions around market conditions and estimated future demand for its products within a specified time horizon, generally 12 months. Adjustments to reduce inventory to net realizable value are recognized in cost of revenue. Point of purchase (POP) displays. The Company provides retailers with POP displays, generally free of charge, in order to facilitate the marketing of the Company’s products within retail stores. The POP displays contain a display that broadcasts video images taken by GoPro cameras with product placement available for cameras and accessories. POP display costs, less any fees charged, are capitalized as long-term assets and charged to sales and marketing expense over the expected period of benefit, which generally ranges from 24 to 36 months . Cash outflows and amortization related to POP displays are classified as operating activities in the consolidated statement of cash flows. Amortization was $19.6 million , $16.8 million and $18.0 million in 2016, 2015 and 2014, respectively. Property and equipment, net. Property and equipment are stated at cost and are depreciated using the straight-line method over the estimated useful life of the assets, ranging from one to ten years. Leasehold improvements are amortized over the shorter of the lease term or their expected useful life. Property and equipment pending installation, configuration or qualification are classified as construction in progress. Costs of maintenance and repairs that do not improve or extend the lives of the respective assets are expensed as incurred. Fair value measurements. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the reporting date. The Company estimates and categorizes the fair value of its financial assets by applying the following hierarchy: Level 1 Valuations based on quoted prices in active markets for identical assets or liabilities that the Company has the ability to directly access. Level 2 Valuations based on quoted prices for similar assets or liabilities; valuations for interest-bearing securities based on non-daily quoted prices in active markets; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable data for substantially the full term of the assets or liabilities. Level 3 Valuations based on inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. A financial instrument's level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. The fair value of Level 2 financial instruments is obtained from an independent pricing service, which may use quoted market prices for identical or comparable instruments or model driven valuations using observable market data or inputs corroborated by observable market data. Leases. The Company leases its office space and facilities under cancelable and non-cancelable operating leases. For leases that contain rent escalation or rent concession provisions, the Company recognizes rent expense on a straight-line basis over the term of the lease. The Company does not assume renewals in its determination of the lease term unless the renewals are deemed to be reasonably assured at lease inception. Goodwill and other intangible assets . Goodwill represents the excess of the purchase price over the fair value of the net assets acquired in a business combination. Acquired intangible assets other than goodwill are amortized over their useful lives unless the lives are determined to be indefinite. For intangible assets acquired in a business combination, the estimated fair values of the assets received are used to establish their recorded values. Valuation techniques consistent with the market approach, income approach and/or cost approach are used to measure fair value. Impairment of goodwill and long-lived assets. The Company performs an annual assessment of its goodwill during the fourth quarter of each calendar year or more frequently if indicators of potential impairment exist, such as an adverse change in business climate or a decline in the overall industry demand, that would indicate it is more likely than not that the fair value of its single reporting unit is less than its carrying value. There was no impairment of goodwill for any periods presented. For the annual impairment testing in 2016, the Company performed a quantitative analysis and determined the fair value of its single reporting unit exceeded the carrying value. Other indefinite-lived intangible assets are assessed for impairment at least annually. If their value carrying value exceeds the estimated fair value, the difference is recorded as an impairment. See Note 4 for information regarding impairment charges recorded for indefinite-lived intangible assets. Long-lived assets, such as property and equipment and intangible assets subject to amortization, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable. Recoverability of assets to be held and used is measured by comparing the carrying amount to the estimated future undiscounted cash flows expected to be generated by the asset group. If it is determined that an asset group is not recoverable, an impairment charge is recognized for the amount by which the carrying amount of the asset group exceeds its fair value. There was no material impairment of long-lived assets for any periods presented. Warranty. The Company records a liability for estimated product warranty costs at the time product revenue is recognized. The Company's standard warranty obligation to its end-users generally provides a 12 -month warranty coverage on all of its products except in the European Union where the Company provides a two -year warranty. The Company's estimate of costs to service its warranty obligations is based on its historical experience of repair and replacement of the associated products and expectations of future conditions. The warranty obligation is affected by product failure rates and the related use of materials, labor costs and freight incurred in correcting any product failure. Revenue recognition. Revenue is primarily comprised of product revenue, net of returns and sales incentives. The Company derives substantially all of its revenue from the sale of cameras, mounts and accessories and the related implied post contract support (PCS). The Company recognizes revenue when persuasive evidence of an arrangement exists, delivery has occurred, the sales price is fixed or determinable, and collectability is reasonably assured. For most of the Company's revenue, these criteria are met at the time the product is shipped. For customers who purchase products directly from the Company’s website, revenue is deferred until delivery to the customer's address because the Company retains a portion of the risk of loss on these sales during transit. The Company grants limited rights to return product for certain large retailers and distributors. The Company records reductions to revenue and cost of sales for expected future product returns at the time of sale based on analyses of historical return trends by customer class. Return trends are influenced by product life cycles, new product introductions, market acceptance of products, product sell-through, the type of customer, seasonality, and other factors. Return rates may fluctuate over time, but are sufficiently predictable to allow the Company to estimate expected future product returns. The Company's camera sales are multiple element arrangements that generally include the following two units of accounting: a) the hardware component (camera and/or accessories) and the embedded firmware essential to the functionality of the camera delivered at the time of sale, and b) the implied right for the customer to receive PCS. PCS includes the right to receive, on a when and if available basis, future unspecified firmware upgrades and features as well as bug fixes, email and telephone support. The Company accounts for each element separately and allocates revenue based on its best estimate of the selling price (BESP). The Company's process for determining BESP considers multiple factors that may vary over time depending upon the unique facts and circumstances related to each deliverable, including: the level of support provided to customers, estimated costs to provide the Company's support, the amount of time and cost that is allocated to the Company's efforts to develop the undelivered elements, and market trends in the pricing for similar offerings. The Company also offers several mobile and desktop applications at no charge to help users manage, edit, view and share their content. These applications are not essential to the functionality of the camera, therefore, are not accounted as a separate element of the arrangement. Revenue allocated to the delivered hardware and the related essential software is recognized at the time of sale provided the conditions for recognition of revenue have been met. Revenue allocated to PCS is deferred and recognized on a straight-line basis over the estimated term of the support period, which is estimated to be 15 months based on historical experience. Deferred revenue also includes amounts related to the Company’s GoPro Care and GoPro Plus fee-based service offerings. Sales incentives. The Company offers sales incentives through various programs, consisting primarily of cooperative advertising and marketing development fund programs. Sales incentives are recorded as a reduction to revenue in the period the incentives are offered to the Company’s customers or the related revenue is recognized, whichever is later. In addition, the Company offers price protection discounts to certain customers when camera device models are released or repriced and the customer has remaining inventory on hand. The Company calculates price protection discounts in the period that the price reduction goes into effect, and they are recorded as a reduction of revenue, based on the evaluation of inventory currently held by the customer subject to price protection. Shipping costs. Amounts billed to customers for shipping and handling are classified as revenue and the Company's related shipping and handling costs incurred are classified as cost of revenue. Sales taxes. Sales taxes collected from customers and remitted to respective governmental authorities are recorded as liabilities and not included in revenue. Advertising costs. Advertising costs consist of costs associated with print, television and ecommerce media advertisements and are expensed as incurred. The Company incurs promotional expenses resulting from payments under event, resort and athlete sponsorship contracts. These sponsorship arrangements are considered to be executory contracts and, as such, the costs are expensed as performance under the contract is received. The costs associated with preparation of sponsorship activities, including the supply of GoPro products, media team support, and activation fees are expensed as incurred. Prepayments made under sponsorship agreements are included in prepaid expenses or other long-term assets depending on the period to which the prepayment applies. Advertising costs were $106.0 million , $64.7 million and $47.2 million in 2016, 2015 and 2014, respectively. Stock-based compensation. The Company accounts for stock-based compensation in accordance with accounting guidance that requires all stock-based awards granted to employees and directors to be measured at fair value and recognized as an expense. The Company primarily issues restricted stock units. For service-based awards, stock-based compensation is recognized on a straight-line basis over the requisite service period, net of estimated forfeitures. For performance and market-based awards which also require a service period, the Company uses graded vesting over the longer of the derived service period or when the performance or market condition is satisfied. The Company recognizes a benefit from stock-based compensation as additional paid-in capital if an excess tax benefit is realized by following the with-and-without approach. The indirect effects of stock-based compensation deductions are reflected in the income tax provision for purposes of measuring the excess tax benefit at settlement of awards. Foreign currency. The U.S. dollar is the functional currency of the Company's foreign subsidiaries. The Company remeasures monetary assets or liabilities denominated in currencies other than the U.S. dollar using exchange rates prevailing on the balance sheet date, and non-monetary assets and liabilities at historical rates. Foreign currency remeasurement and transaction gains and losses are included in other expense, net and have not been material for any periods presented. Income taxes. The Company utilizes the asset and liability method for computing its income tax provision, under which deferred tax assets and liabilities are recognized for the expected future consequences of temporary differences between the financial reporting and tax bases of assets and liabilities using enacted tax rates. Management makes estimates, assumptions and judgments to determine the Company's provision for income taxes, deferred tax assets and liabilities, and any valuation losses recorded against deferred tax assets. The Company assesses the likelihood that its deferred tax assets will be recovered from future taxable income and, to the extent the Company believes recovery is not likely, establishes a valuation allowance. The Company recognizes the tax benefit from an uncertain tax position only if it is more likely than not the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized from such positions are then measured based on the largest benefit that has a greater than 50% likelihood of being realized upon settlement. Interest and penalties related to unrecognized tax benefits are recognized within income tax expense. Segment information. The Company operates as one operating segment as it only reports financial information on an aggregate and consolidated basis to its CEO, who is the Company’s chief operating decision maker. Recent accounting pronouncements Standard Description Expected date of adoption Effect on the financial statements or other significant matters Standards that are not yet adopted Revenue from Contracts with Customers Accounting Standards Update (ASU) No. 2014-09, 2016-08, 2016-10 and 2016-12 (Topic 606) The updated revenue standard establishes principles for recognizing revenue and develops a common revenue standard for all industries. Under the new model, recognition of revenue occurs when a customer obtains control of promised goods or services in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The new standard requires that entities disclose the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. Early adoption is permitted, but not earlier than the first quarter of 2017. The retrospective or cumulative effect transition method is permitted. January 1, 2018 The Company completed an initial analysis of the impact of the standard on its sales contract portfolio by reviewing its current accounting policies and practices to identify potential differences that would result from applying the requirements of the new standard to its sales contracts. The Company does not anticipate a material impact on its consolidated financial statements because the analysis of its contracts under the new standard supports the recognition of most of its revenue at the time product is shipped, consistent with its current revenue policy. Although the Company is continuing to review certain aspects of its policies and practices, it expects that, as a result of the adoption of the new guidance, the timing of recognizing certain sales incentives as a reduction of revenue will generally be earlier than under the existing guidance. The Company expects to utilize the modified retrospective transition method. Leases ASU No. 2016-02(Topic 842) This standard requires lessees to put most leases on their balance sheets but recognize the expenses on their income statements in a manner similar to current practice. Lessees would recognize a right-to-use asset and lease liability for all leases with terms of more than 12 months. Recognition, measurement and presentation of expenses will depend on classification as a finance or operating lease. The new standard should be applied on a modified retrospective basis. January 1, 2019 Although the Company is currently evaluating the impact that the adoption of this standard will have on its consolidated financial statements and related disclosures, the Company currently expects that most of its operating lease commitments will be subject to the new standard and recognized as operating lease liabilities and right-of-use assets upon adoption. Stock Compensation ASU No. 2016-09 (Topic 718) This standard simplifies certain aspects of the accounting for share-based payment transactions, including income taxes, classification of awards and classification on the statement of cash flows. The new guidance also allows an entity to make a policy election to account for forfeitures as they occur. Early adoption is permitted for an entity in any interim or annual period. January 1, 2017 The adoption of the standard resulted in a net cumulative-effect adjustment of $16.2 million to decrease accumulated deficit as of January 1, 2017, mostly related to the recognition of previously unrecognized excess tax benefits using the modified retrospective method. The previously unrecognized excess tax effects were recorded as a reduction to tax liabilities or an increase to deferred tax assets, which was fully offset by a valuation allowance. Without the valuation allowance, the Company’s deferred tax assets would have increased by $162.8 million. The Company elected to apply the change in presentation to the statements of cash flows prospectively and elected to account for forfeitures as they occur. Income Taxes ASU No. 2016-16 (Topic 740) This standard requires entities to recognize at the transaction date the income tax consequences of intra-entity asset transfers. Previous guidance requires the tax effects from intra-entity asset transfers to be deferred until that asset is sold to a third party or recovered through use. The updated standard is effective in annual and interim periods in fiscal years beginning after December 15, 2017, with early adoption permitted during the first interim period of a fiscal year, and requires a modified retrospective transition method. January 1, 2018 The Company is evaluating the impact that the adoption of this standard will have on its consolidated financial statements and related disclosures. Intangible - Goodwill and Other ASU No. 2017-04 (Topic 350) This standard simplifies the accounting for goodwill and removes Step 2 of the annual goodwill impairment test. Upon adoption, goodwill impairment will be determined based on the amount by which a reporting unit's carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. Early adoption permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017, and requires a prospective transition method. January 1, 2020 The Company is evaluating the impact that the adoption of this standard will have on its consolidated financial statements and related disclosures. |
Business Acquisitions
Business Acquisitions | 12 Months Ended |
Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business Acquisitions | Business Acquisitions In 2016, the Company completed acquisitions of two privately-held mobile editing application companies for total cash consideration of approximately $104 million . The aggregate allocation of the purchase prices primarily included $17.4 million of identifiable intangible assets, $3.4 million of net deferred tax liabilities and approximately $89 million of residual goodwill. Net tangible assets acquired were not material. In addition to the amounts above, aggregate deferred cash and stock compensation of up to approximately $35 million is payable to certain continuing employees subject to meeting specified future employment conditions. This amount is being recognized as compensation expense over the requisite service periods of up to four years from the respective acquisition dates, including approximately $22 million recognized in 2016. In 2015, the Company completed several acquisitions qualifying as business combinations for aggregate consideration of $70.2 million , the substantial majority of which was cash consideration. The aggregated allocation of the purchased prices primarily included $32.3 million of identifiable intangible assets, $4.7 million of net deferred tax liabilities and approximately $43.0 million of residual goodwill. Net liabilities assumed were not material. Goodwill is primarily attributable to expected synergies in the technologies that can be leveraged by the Company in future product offerings related to device and software related offerings. Goodwill is not expected to be deductible for U.S. income tax purposes. The operating results of the acquired companies have been included in the Company's consolidated financial statements for 2016 and 2015 from the date of acquisition. Actual and pro forma results of operations for these acquisitions have not been presented because they do not have a material impact to the Company's consolidated results of operations, either individually or in aggregate. |
Fair value measurements
Fair value measurements | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair value measurements | Fair value measurements The Company’s assets that are measured at fair value on a recurring basis within the fair value hierarchy are summarized as follows: December 31, 2016 December 31, 2015 (in thousands) Level 1 Level 2 Total Level 1 Level 2 Total Cash equivalents (1) : Money market funds $ 18,024 $ — $ 18,024 $ 51,059 $ — $ 51,059 Total cash equivalents $ 18,024 $ — $ 18,024 $ 51,059 $ — $ 51,059 Marketable securities: U.S. agency securities $ — $ 8,283 $ 8,283 $ — $ 14,451 $ 14,451 Commercial paper — — — — 2,197 2,197 Corporate debt securities — 15,226 15,226 — 165,825 165,825 Municipal securities — 2,330 2,330 — 11,913 11,913 Total marketable securities $ — $ 25,839 $ 25,839 $ — $ 194,386 $ 194,386 (1) Included in “cash and cash equivalents” in the accompanying consolidated balance sheets. Cash balances were $174.1 million and $228.6 million as of December 31, 2016 and December 31, 2015 , respectively. There were no transfers of financial assets between levels for the periods presented. The remaining contractual maturities of available-for-sale marketable securities are as follows: December 31, (in thousands) 2016 2015 Less than one year $ 25,839 $ 122,199 Greater than one year but less than two years — 72,187 Total $ 25,839 $ 194,386 At December 31, 2016 and 2015, the amortized cost of the Company's cash equivalents and marketable securities approximated their fair value and there were no material unrealized gains or losses, either individually or in the aggregate. For certain other financial assets and liabilities, including accounts receivable, accounts payable and other current liabilities, the carrying amounts approximate their fair value due to the relatively short maturity of these balances. |
Consolidated financial statemen
Consolidated financial statement details | 12 Months Ended |
Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Consolidated financial statement details | Consolidated financial statement details The following sections and tables provide details of selected balance sheet items. Inventory December 31, (in thousands) 2016 2015 Components $ 25,236 $ 9,476 Finished goods 141,956 178,756 Total inventory $ 167,192 $ 188,232 Property and equipment, net December 31, (in thousands) Useful life (in years) 2016 2015 Leasehold improvements 3–12 $ 48,103 $ 40,841 Production, engineering and other equipment 4 46,328 25,174 Tooling 1–2 23,742 19,537 Computers and software 2 18,750 14,581 Furniture and office equipment 3 12,530 11,389 Tradeshow equipment and other 2-5 7,578 4,136 Construction in progress 1,870 4,632 Gross property and equipment 158,901 120,290 Less: Accumulated depreciation and amortization (82,392 ) (50,240 ) Property and equipment, net $ 76,509 $ 70,050 Depreciation expense was $32.4 million , $24.8 million and $16.8 million in 2016, 2015 and 2014, respectively. The Company recorded accelerated depreciation charges in connection with plans to vacate certain leased office facilities as disclosed in Note 13. Intangible assets and goodwill December 31, 2016 (in thousands) Gross carrying value Accumulated amortization Net carrying value Purchased technology $ 47,001 $ (17,086 ) $ 29,915 In-process research and development (IPR&D) 3,615 — 3,615 Total intangible assets $ 50,616 $ (17,086 ) $ 33,530 December 31, 2015 (in thousands) Gross carrying value Accumulated Net carrying value Purchased technology $ 32,952 $ (8,540 ) $ 24,412 IPR&D 6,615 — 6,615 Total intangible assets $ 39,567 $ (8,540 ) $ 31,027 A summary of the Company’s IPR&D activity during 2016 is as follows: (in thousands) Total Balance at December 31, 2015 $ 6,615 IPR&D assets acquired 4,460 Technological feasibility achieved (1,150 ) Asset impairment (6,310 ) Balance at December 31, 2016 $ 3,615 Purchased technology acquired in 2016 had an estimated useful life of four years. The Company recorded impairment charges of $6.3 million to research and development expense for IPR&D assets abandoned in the third and fourth quarters of 2016. As of December 31, 2016 , technological feasibility has not been established for the remaining IPR&D assets, which have no alternative future use and, as such, continue to be accounted for as indefinite-lived intangible assets. Amortization expense was $9.1 million , $4.2 million and $1.1 million in 2016 , 2015 and 2014 , respectively. At December 31, 2016 , the expected amortization expense of intangible assets for future periods is as follows: (in thousands) Total Year ending December 31, 2017 $ 8,689 2018 8,297 2019 7,786 2020 4,273 2021 870 $ 29,915 The carrying amount of goodwill was $146.5 million and $57.1 million as of December 31, 2016 and 2015 , respectively. The increase in 2016 was entirely attributable to the acquisitions described above in Note 2. There was no impairment of goodwill for any periods presented. Other long-term assets December 31, (in thousands) 2016 2015 POP displays $ 27,592 $ 27,989 Long-term deferred tax assets 106 41,936 Income tax receivable 33,425 33,206 Deposits and other 17,206 8,430 Other long-term assets $ 78,329 $ 111,561 Accrued liabilities December 31, (in thousands) 2016 2015 Accrued payables $ 91,655 $ 60,738 Employee related liabilities (1) 42,577 27,535 Accrued sales incentives 40,070 29,298 Warranty liability 11,456 10,400 Customer deposits 4,381 8,877 Income taxes payable 2,756 7,536 Purchase order commitments 4,730 38,477 Other 13,698 9,585 Accrued liabilities $ 211,323 $ 192,446 (1) See Note 13 for amounts associated with restructuring liabilities. |
Financing Arrangements
Financing Arrangements | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Financing Arrangements | Financing Arrangements In March 2016, the Company entered into a Credit Agreement ("Credit Agreement") with JPMorgan Chase Bank, N.A., as administrative agent, Wells Fargo Bank, National Association, as co-agent, and the lender parties thereto. The Credit Agreement provides for a secured revolving credit facility ("Credit Facility") under which the Company may borrow up to an aggregate of $250 million and the Company and lenders may increase the total commitments under the Credit Facility to up to $300 million , subject to certain conditions. The Credit Facility will terminate, and all outstanding borrowings become due and payable, in March 2021. The amount that may be borrowed under the Credit Facility is based upon a borrowing base formula with respect to the Company’s inventory and accounts receivable balances. Borrowed funds accrue interest, at the Company’s election, based on an annual rate of (a) London Interbank Offered Rate ("LIBOR") or (b) the administrative agent’s base rate, plus an applicable margin of between 1.50% and 2.00% for LIBOR rate loans, and between 0.50% and 1.00% for base rate loans, depending on the level of utilization of the Credit Facility. The Company is required to pay a commitment fee on the unused portion of the Credit Facility of 0.25% or 0.375% per annum, based on the level of utilization of the Credit Facility. Amounts owing under the Credit Agreement and related credit documents are guaranteed by the Company and its material subsidiaries. The Company and its Cayman and Netherlands subsidiaries have also granted security interests in substantially all of their assets to collateralize these obligations. The Credit Agreement contains customary affirmative covenants, such as financial statement reporting requirements and delivery of borrowing base certificates, as well as customary covenants that limit the ability of the Company and its subsidiaries to, among other things, pay dividends, incur debt, create liens and encumbrances, make investments and redeem or repurchase stock. The Company is required to maintain a minimum fixed charge coverage ratio if and when the unborrowed availability under the Credit Facility is less than the greater of $25.0 million or 10.0% of the borrowing base at such time. The Credit Agreement contains customary events of default, such as the failure to pay obligations when due, initiation of bankruptcy or insolvency proceedings, defaults on certain other indebtedness, change of control or breach of representations and warranties or covenants. Upon an event of default, the lenders may, subject to customary cure rights, require the immediate payment of all amounts outstanding and foreclose on collateral. As of December 31, 2016, the Company may borrow up to approximately $150 million under the Credit Facility and was in compliance with all financial covenants contained in the Credit Agreement. No borrowings have been made from the Credit Facility to date. |
Stockholders' equity
Stockholders' equity | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
Stockholders' equity | Stockholders' equity Initial public offering. In July 2014, the Company completed its IPO in which the Company issued and sold 8.9 million shares of Class A common stock at a public offering price of $24.00 per share and the selling stockholders sold 11.6 million shares of Class A common stock, including 2.7 million shares upon the underwriters' option to purchase additional shares. The Company did not receive any proceeds from the sale of shares by the selling stockholders. The total net proceeds received by the Company from the IPO were $200.8 million after deducting underwriting discounts and commissions. Follow-on offering. In November 2014, the Company completed a follow-on offering in which the Company issued and sold 1.3 million shares of Class A common stock at a public offering price of $75.00 per share and the selling stockholders sold 10.6 million shares of Class A common stock, including 1.6 million shares upon the underwriters' option to purchase additional shares. The Company did not receive any proceeds from the sale of shares by the selling stockholders. The total net proceeds received by the Company from the follow-on offering were $93.2 million after deducting underwriting discounts and commissions. Redeemable convertible preferred stock. Prior to the Company's IPO, the Company had 30.5 million of Series A redeemable convertible preferred stock outstanding, which were convertible into shares of Class B common stock at a rate of 1 -for-1. Concurrent with the close of the IPO, those outstanding shares were converted into Class B common stock. Common stock. Following the Company's IPO, the Company had two classes of authorized common stock: Class A common stock with 500 million shares authorized and Class B common stock with 150 million shares authorized. As of December 31, 2016, 104.6 million shares of Class A stock were issued and outstanding and 36.7 million shares of Class B stock were issued and outstanding. The rights of the holders of Class A and Class B common stock are identical, except with respect to voting power and conversion rights. Each share of Class A common stock is entitled to one vote per share and each share of Class B common stock is entitled to ten votes per share. Each share of Class B common stock is convertible at any time at the option of the stockholder into one share of Class A common stock and has no expiration date. The Class B common stock is also convertible into Class A common stock on the same basis upon any transfer, whether or not for value, except for “permitted transfers” as defined in the Company’s restated certificate of incorporation. Each share of Class B common stock will convert automatically into one share of Class A common stock upon the date when the outstanding shares of Class B common stock represent less than 10% of the aggregate number of shares of common stock then outstanding. As of December 31, 2016, the Class B stock continued to represent greater than 10% of the overall outstanding shares. The Company had the following shares of common stock reserved for issuance upon the exercise of equity instruments as of December 31, 2016: (in thousands) December 31, 2016 Stock options outstanding 12,379 Restricted stock units outstanding 7,970 Common stock available for future grants 20,685 Total common stock shares reserved for issuance 41,034 Stock repurchase program . The stock repurchase program authorized by the Company’s board of directors in September 2015 to repurchase up to $300 million of the Company's Class A common stock expired on September 30, 2016 and has not been renewed. The repurchase program did not obligate the Company to acquire any specific number of shares. Under the program, the Company repurchased approximately 1.5 million shares of its common stock at an average price of $23.05 per share, for an aggregate purchase price of approximately $35.6 million . The Company holds the repurchased shares as treasury stock. CEO stock contributions. In the first half of 2015, the CEO contributed an aggregate 5.2 million common stock to the Company without consideration per the terms of a Contribution Agreement dated December 28, 2011, and amended on May 11, 2015. Under the original Contribution Agreement, the CEO agreed to contribute back to the Company from time-to-time the same number of shares of common stock as are issued to a certain Company employee upon the exercise of certain stock options held by such employee. Pursuant to this agreement, the CEO contributed back to the Company 0.5 million shares of Class B common stock from January 2015 through April 2015. In May 2015, the CEO contributed back to the Company 4.7 million shares of Class B common stock pursuant to the amended agreement, representing all of the then remaining shares subject to the contribution obligations. All of the shares contributed by the CEO were retired during the year. |
Employee benefit plans
Employee benefit plans | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Employee benefit plans | Employee benefit plans Equity incentive plans . The Company has outstanding equity grants from its three stock-based employee compensation plans: the 2014 Equity Incentive Plan (2014 Plan), the 2010 Equity Incentive Plan (2010 Plan) and the 2014 Employee Stock Purchase Plan (ESPP). In 2014, the Company terminated the authority to grant new awards under the 2010 Plan and no new options or awards have been granted under the 2010 Plan since June 2014. Outstanding options and awards under the 2010 Plan continue to be subject to the terms and conditions of the 2010 Plan. The 2014 Plan serves as the successor to the 2010 Plan and provides for the granting of incentive and nonqualified stock options, restricted stock awards (RSAs), restricted stock units (RSUs), stock appreciation rights, stock bonus awards and performance awards to qualified employees, non-employee directors and consultants. Options granted under the 2014 Plan generally expire within 10 years from the date of grant and generally vest over four years and are exercisable for shares of the Company's Class A stock. Options with performance or market-based conditions are generally subject to a required service period along with the performance or market condition. RSUs granted under the 2014 Plan generally vest annually over a four year period based upon continued service and are settled at vesting in shares of the Company's Class A common stock. The ESPP allows eligible employees to purchase shares of the Company's Class A common stock through payroll deductions at a price equal to 85% of the lesser of the fair market values of the stock as of the first date or the ending date of each six-month offering period. The 2014 Plan and the ESPP also provides for automatic annual increases in the number of shares reserved for future issuance. Employee retirement plan. The Company has a defined contribution retirement plan covering U.S. and other international full-time employees that provides for voluntary employee contributions from 1% to 86% of annual compensation, subject to a maximum limit allowed by Internal Revenue Service guidelines. The Company matches 100% of each employee’s contributions up to a maximum of 4% of the employee's eligible compensation. The Company's matching contributions to the plan were $7.2 million , $5.5 million and $2.7 million in 2016 , 2015 and 2014 , respectively. S tock options A summary of the Company’s stock option activity in 2016 is as follows: Options outstanding Shares (in thousands) Weighted- average Weighted- Aggregate Outstanding at December 31, 2015: 13,081 $ 11.82 6.70 $ 108,846 Granted 2,573 11.27 Exercised (1,733 ) 2.05 Forfeited/Cancelled (1,542 ) 19.07 Outstanding at December 31, 2016: 12,379 $ 12.17 5.97 $ 32,772 Vested and expected to vest at December 31, 2016 12,245 $ 12.12 5.95 $ 32,772 Exercisable at December 31, 2016 8,952 $ 10.37 5.36 $ 32,771 The weighted average grant date fair value of all options granted and assumed were $4.84 , $18.40 and $11.51 per share in 2016, 2015 and 2014, respectively. The total fair value of all options vested was $27.2 million , $26.9 million and $16.0 million in 2016, 2015 and 2014, respectively. The aggregate intrinsic value of the stock options outstanding as of December 31, 2016 represented the value of the Company's closing stock price on the last trading day of the year in excess of the exercise price multiplied by the number of options outstanding. Restricted stock units A summary of the Company’s RSU activity in 2016 and 2015 is as follows: Shares (in thousands) Weighted- average grant date fair value Non-vested shares at December 31, 2014 4,307 $ 21.98 Granted 2,170 44.00 Vested (1,735 ) 19.84 Forfeited (104 ) 63.47 Non-vested shares at December 31, 2015 4,638 32.15 Granted 7,354 12.10 Vested (2,075 ) 23.87 Forfeited (1,947 ) 22.85 Non-vested shares at December 31, 2016 7,970 $ 18.08 In June 2014, the Company granted an award of 4.5 million RSUs covering shares of the Company's Class B common stock to the Company's CEO (CEO RSUs), which included 1.5 million RSUs that vested immediately upon grant and 3.0 million RSUs that were subject to both a market-based vesting condition and a three-year service-based vesting condition. The market-based condition was achieved in January 2015. Stock-based compensation expense related to the CEO RSUs was $6.4 million , $29.4 million and $38.3 million for 2016 , 2015 and 2014 , respectively. Employee stock purchase plan In 2016 and 2015 , the Company issued 668,107 and 436,924 shares under its ESPP at weighted average prices of $9.15 and $26.88 , respectively. The weighted-average fair value of each right to purchase shares of the Company's Class A common stock granted under the ESPP was $3.99 , $15.76 and $7.16 in 2016, 2015 and 2014, respectively. Fair value disclosures The fair value of stock options granted and purchases under the Company's ESPP is estimated using the Black-Scholes option pricing model. Expected term of stock options granted was estimated based on the simplified method. Expected stock price volatility was estimated by taking the average historic price volatility for industry peers based on daily price observations over a period equivalent to the expected term. Risk-free interest rate was based on the yields of U.S. Treasury securities with maturities similar to the expected term. Dividend yield was zero as the Company does not have any history of, nor plans to make, dividend payments. The fair value of stock options granted was estimated as of the grant date using the following assumptions: Year ended December 31, 2016 2015 2014 Volatility 44%–45% 43%–54% 54%–56% Expected term (years) 5.2–6.1 5.5–7.0 5.3–6.3 Risk-free interest rate 1.2%–2.0% 1.6%–2.0% 1.7%–2.0% Dividend yield —% —% —% The fair value of stock purchase rights granted under the ESPP was estimated using the following assumptions: Year ended December 31, 2016 2015 2014 Volatility 43%–54% 39%–45% 45.5% Expected term (years) 0.5 0.5 0.6 Risk-free interest rate 0.4%–0.5% 0.1%–0.2% 0.1% Dividend yield —% —% —% During 2014, the Company used a Monte Carlo valuation model to calculate the fair value of the CEO RSUs subject to a market condition based on the following assumptions: expected term of 10 years, expected volatility of 50.9% , risk-free interest rate of 2.69% , and a grant date fair value of $18.40 for the underlying shares. Stock-based compensation expense. The following table summarizes stock-based compensation included in the consolidated statements of operations: Year ended December 31, (in thousands) 2016 2015 2014 Cost of revenue $ 1,616 $ 1,492 $ 835 Research and development 31,365 18,024 11,640 Sales and marketing 13,883 13,762 10,428 General and administrative 22,663 47,402 48,496 Total stock-based compensation expense $ 69,527 $ 80,680 $ 71,399 The income tax benefit related to stock-based compensation expense was zero , $28.0 million and $19.5 million for 2016 , 2015 and 2014 , respectively. There is no current year tax benefit due to a full valuation allowance on U.S. net deferred tax assets (see Note 9 below). At December 31, 2016 , total unearned stock-based compensation of $116.3 million related to stock options, RSUs and ESPP shares is expected to be recognized over a weighted average period of 2.6 years. |
Net income (loss) per share
Net income (loss) per share | 12 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
Net income (loss) per share | Basic net income per share attributable to common stockholders is computed by dividing the net income attributable to common stockholders by the weighted-average number of common shares outstanding during the period. All participating securities are excluded from basic weighted average common shares outstanding. The Company considers shares issued upon the early exercise of options subject to repurchase and non-vested restricted shares to be participating securities, because holders of such shares have a non-forfeitable right to dividends. Additionally, prior to the Company's IPO and their conversion, the Company considered its redeemable convertible preferred stock to be participating securities due to their non-cumulative dividend rights. Diluted net income per share attributable to common stockholders is computed by dividing the net income attributable to common stockholders by the weighted-average number of common shares outstanding, including all potentially dilutive common shares. Undistributed earnings are allocated based on the contractual participation rights of Class A and Class B as if the earnings for the year have been distributed. As the liquidation and dividend rights are identical, the undistributed earnings are allocated on a proportionate basis. The computation of the diluted net income per share of Class A common stock assumes the conversion of Class B common stock. The following table presents the calculations of basic and diluted net income (loss) per share: Year ended December 31, (in thousands, except per share data) 2016 2015 2014 Numerator: Allocation of net income (loss) $ (419,003 ) $ 36,131 $ 128,088 Less: net income allocable to participating securities — — 16,512 Net income (loss) attributable to common stockholders—basic (419,003 ) 36,131 111,576 Add: net income allocable to dilutive participating securities — — 2,277 Net income (loss) attributable to common stockholders—diluted $ (419,003 ) $ 36,131 $ 113,853 Denominator: Weighted-average common shares—basic for Class A and Class B common stock 139,425 134,595 104,453 Stock options, RSU's and ESPP shares — 11,891 19,177 Weighted-average common shares—diluted for Class A and Class B common stock 139,425 146,486 123,630 Net income (loss) per share attributable to common stockholders: Basic $ (3.01 ) $ 0.27 $ 1.07 Diluted $ (3.01 ) $ 0.25 $ 0.92 The following potentially dilutive shares were not included in the calculation of diluted shares outstanding as the effect would have been anti-dilutive: Year ended December 31, (in thousands) 2016 2015 2014 Stock options, RSUs and ESPP shares 21,000 2,681 15,921 |
Income taxes
Income taxes | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income taxes | Income taxes Income before income taxes consisted of the following: Year ended December 31, (in thousands) 2016 2015 2014 Domestic $ (200,595 ) $ 13,562 $ 114,937 Foreign (174,579 ) 39,023 66,038 $ (375,174 ) $ 52,585 $ 180,975 Income tax expense consisted of the following: Year ended December 31, (in thousands) 2016 2015 2014 Current: Federal $ (2,925 ) $ 18,548 $ 55,846 State (356 ) 3,007 6,075 Foreign 8,542 6,539 8,219 Total current 5,261 28,094 70,140 Deferred: Federal 37,573 (11,211 ) (13,551 ) State 4,436 (204 ) (3,369 ) Foreign (3,441 ) (225 ) (333 ) Total deferred 38,568 (11,640 ) (17,253 ) Income tax expense $ 43,829 $ 16,454 $ 52,887 As of December 31, 2016, $3.3 million of earnings had been indefinitely reinvested outside the U.S., primarily in active non-U.S. business operations. We do not intend to repatriate these earnings to fund U.S. operations and, accordingly, we do not provide for U.S. federal income and foreign withholding tax on these earnings. Year ended December 31, 2016 2015 2014 (in thousands, except percentage) $ % $ % $ % Reconciliation to statutory rate: Tax at federal statutory rate $ (131,311 ) (35.0 )% $ 18,405 35.0 % $ 63,341 35.0 % Change in valuation allowance 101,878 27.2 8,555 16.3 — — Impact of foreign operations 84,491 22.5 6,434 12.2 (13,305 ) (7.4 ) Stock-based compensation 15,718 4.2 2,390 4.5 8,050 4.4 State taxes, net of federal benefit (14,195 ) (3.8 ) 1,454 2.8 4,911 2.7 Tax credits (12,992 ) (3.5 ) (21,891 ) (41.6 ) (10,616 ) (5.9 ) Other 240 0.1 1,107 2.1 506 0.4 Income tax provision at effective tax rate $ 43,829 11.7 % $ 16,454 31.3 % $ 52,887 29.2 % The lower effective tax rates of 2016 compared to 2015 resulted from a significant benefit on pre-tax book losses, offset by the establishment of a valuation allowance on all U.S. federal and state net deferred tax assets and by income taxes paid at lower rates in profitable foreign jurisdictions (primarily wholly owned subsidiaries in Europe). The provision for income taxes in each period has differed from the tax computed at U.S. federal statutory tax rates due to change in valuation allowance, the effect of non-U.S. operations, deductible and non-deductible stock-based compensation expense, states taxes, federal research and development tax credits, and other adjustments. The higher effective tax rate for 2015 compared to 2014 was due to higher U.S. taxable income and lower international taxable income, which resulted from incurring a higher proportion of our 2015 operating expenses in foreign jurisdictions. Additionally, the effective tax rate for 2015 was lower than the federal statutory rate of 35% primarily due to benefits from research and development tax credits. Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company’s deferred tax assets and liabilities were as follows: December 31, (in thousands) 2016 2015 Deferred tax assets: Net operating loss carryforwards $ 30,193 $ 339 Tax credit carryforwards 22,341 9,372 Stock-based compensation 26,656 19,096 Allowance for returns 6,336 8,812 Accruals and reserves 26,587 20,398 Total deferred tax assets 112,113 58,017 Valuation allowance (110,433 ) (8,555 ) Total deferred tax assets, net of valuation allowance 1,680 49,462 Deferred tax liabilities: Depreciation and amortization (1,714 ) (6,937 ) Intangible assets (2,540 ) (2,904 ) Total deferred tax liabilities (4,254 ) (9,841 ) Net deferred tax assets (liabilities) $ (2,574 ) $ 39,621 Recognition of deferred tax assets is appropriate when realization of such assets is more likely than not. Based upon the weight of available evidence, the Company believes it is not more likely that not that the U.S. deferred tax assets will be realized. Accordingly, a full valuation allowance is established against U.S. deferred tax assets. The foreign deferred tax assets in each jurisdiction are minimal and are supported by taxable income or in the case of acquired companies, by the future reversal of deferred tax liabilities. It is more likely than not that the Company's foreign deferred tax assets will be realized and thus, no valuation allowance is required on foreign deferred tax assets. The Company will continue to assess the realizability of the deferred tax assets in each of the applicable jurisdictions going forward. The Company's valuation allowance increased by $101.9 million to $110.4 million as of December 31, 2016 , primarily due to the establishment of a full valuation allowance on all U.S. federal and state deferred tax assets. As of December 31, 2015 , the Company had established a valuation allowance of $8.6 million for state research tax credits. As of December 31, 2016, the Company’s federal, California and other state net operating loss carryforwards for income tax purposes were $467.2 million , $201.5 million and $207.3 million , respectively and federal and California state tax credit carryforwards were $32.5 million and $27.9 million , respectively. If not utilized, federal loss, federal credit and California loss carryforwards will begin to expire from 2030 to 2036, while other state loss carryforwards will begin to expire from 2019 to 2036. California tax credits may be carried forward indefinitely. Under the provisions of §382 of the Internal Revenue Code, a change of control may impose an annual limitation on the amount of the Company’s net operating loss and tax credit carryforwards that can be used to reduce future tax liabilities. Of the Company’s total $467.2 million federal and state net operating loss carryforwards, approximately $8 million was from one of our 2016 acquisitions. These acquired tax attributes are subject to an annual limitation of $1.7 million per year for federal purposes and will begin to expire in the year 2034, if not utilized. Uncertain income tax positions. The Company had gross unrecognized tax benefits of $56.9 million , $36.3 million and $16.6 million , as of December 31, 2016 , 2015 and 2014 , respectively. For fiscal 2016, 2015 and 2014, total unrecognized income tax benefits in an amount of $24.1 million , $31.0 million and $16.6 million , respectively, if recognized, would reduce income tax expense after considering the impact of the change in valuation allowance in the U.S. A material portion of our gross unrecognized tax benefits, if recognized, would increase the Company’s net operating loss carryforward, which would be offset by a full valuation allowance based on present circumstances. These unrecognized tax benefits relate primarily to unresolved matters with taxing authorities regarding the Company’s transfer pricing positions and tax positions based on the Company’s interpretation of certain U.S. trial and appellate court decisions, which remain subject to appeal and therefore could be overturned in future periods. The Company’s existing tax positions will continue to generate an increase in unrecognized tax benefits in subsequent periods. Management believes events that could occur in the next 12 months and cause a material change in unrecognized tax benefits include, but are not limited to, the completion of examinations by the U.S. or foreign taxing authorities and the expiration of statute of limitations on the Company's tax returns. Although the completion, settlement and closure of any audits is uncertain, it is reasonably possible that the total amount of unrecognized tax benefits will materially increase within the next 12 months. However, given the number of years remaining that are subject to examination, the range of the reasonably possible change cannot be estimated reliably. A reconciliation of the beginning and ending amount of the unrecognized income tax benefits are as follows: December 31, (in thousands) 2016 2015 2014 Gross balance at January 1 $ 36,273 $ 16,558 $ 9,898 Gross increase related to current year tax positions 20,594 19,948 6,401 Gross increase related to prior year tax positions 130 108 259 Gross decrease related to prior year tax positions (88 ) (341 ) — $ 56,909 $ 36,273 $ 16,558 The Company’s policy is to account for interest and penalties related to income tax liabilities within the provision for income taxes. The balances of accrued interest and penalties recorded in the balance sheets and provision for income taxes were not material for any period presented. The Company files income tax returns in the U.S. and non-U.S. jurisdictions. The Company is subject to federal, state and foreign income tax examinations for calendar tax years ending 2012 through 2015. The tax authorities could choose to audit the tax years beyond the statute of limitation period due to tax attribute carryforwards from prior years, making adjustments only to carryforward attributes. The Company is currently under examination by the Internal Revenue Service for the 2012 through 2015 tax years. At this time, the Company is not able to estimate the potential impact that the examination may have on income tax expense. If the examination is resolved unfavorably, there is a possibility it may have a material negative impact on the Company's results of operations. |
Related party transactions
Related party transactions | 12 Months Ended |
Dec. 31, 2016 | |
Related Party Transactions [Abstract] | |
Related party transactions | Related party transactions The Company incurs costs for Company-related chartered aircraft fees for the use of the CEO’s private plane. The Company recorded expense of $0.5 million , $0.7 million and $0.6 million in 2016, 2015 and 2014, respectively. As of December 31, 2016 and 2015, the Company had accounts payable associated with these aircraft fees of zero and $0.1 million , respectively. In 2013, the Company entered into a three -year agreement, which was amended in July 2016 to continue through the end of 2016, with a company affiliated with the son of one of the members of the Company's board of directors to acquire certain naming rights to a kart racing facility. As consideration for these naming rights, the Company paid $0.6 million over the three year period. As of December 31, 2016 , the Company has recorded cumulative expense of $0.6 million , and has also provided 100 GoPro cameras at no cost each year. As of December 31, 2016 and 2015, the Company had no accounts payable associated with this agreement. In 2016, the Company obtained services from a vendor whose CEO is also one of the members of the Company's board of directors. The Company recorded expense of $0.4 million in 2016. As of December 31, 2016, the Company had accounts payable associated with this vendor of $0.3 million . The Company has agreements for certain contract manufacturing and engineering services with a vendor affiliated with one of the Company's investors. The Company made payments of zero , $0.2 million and $12.2 million to this vendor in 2016, 2015 and 2014, respectively. As of December 31, 2016 and 2015 , the Company had no accounts payable associated with this vendor. In June 2014, the CEO purchased seven automobiles from the Company for a total purchase price of $0.3 million , which was equal to the deemed fair value of the automobiles purchased. There have been no additional purchases in 2016 and 2015. In the second quarter of 2013, the Company loaned one of its executive officers $0.2 million pursuant to a demand payment loan that did not bear interest, which was fully repaid in March, 2014. See Notes 6 and 7 above for information regarding CEO RSUs and Class B common stock contributed by the CEO back to the Company. |
Commitments, contingencies and
Commitments, contingencies and guarantees | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments, contingencies and guarantees | Commitments, contingencies and guarantees The Company enters into multi-year agreements to lease facilities, purchase sponsorships with event organizers, resorts and athletes as part of its marketing efforts; software licenses related to its financial and IT systems; and various other contractual commitments. In May 2016, the Company entered into a 3.5 year agreement with Red Bull GmbH (Red Bull) that includes content production, distribution and cross-promotion. As part of the agreement, the Company issued unregistered restricted shares of its Class A common stock to Red Bull with a fair value of approximately $7 million , which is being expensed ratably over one-year as a component of sales and marketing expense. Over the term of the agreement, Red Bull will also receive cash consideration, which is included in the other contractual commitments section of the table below. The following table summarizes the Company's total undiscounted future expected obligations under multi-year agreements with terms longer than one year: (in thousands) Total 2017 2018 2019 2020 2021 Thereafter Operating leases (1) $ 139,511 $ 16,972 $ 20,345 $ 13,896 $ 17,157 $ 16,770 $ 54,371 Sponsorship commitments (2) 14,500 7,449 4,134 2,917 — — — Other contractual commitments (3) 39,189 11,744 14,723 12,722 — — — Total contractual cash obligations $ 193,200 $ 36,165 $ 39,202 $ 29,535 $ 17,157 $ 16,770 $ 54,371 (1) The Company leases its facilities under long-term operating leases, which expire at various dates through 2027. (2) The Company enters into multi-year sponsorship agreements with event organizers, resorts and athletes as part of its marketing efforts. (3) The Company enters into other contractual commitments, including the multi-year agreement with Red Bull, as well as software licenses related to the Company's financial and IT systems which require payments over several years. In 2016, the Company entered into sub-lease agreements for its office facilities that decreased the Company’s total future minimum lease payments by sub-lease rentals of approximately $6 million , which approximates the corresponding remaining lease rentals. Rent expense was $19.8 million , $12.2 million and $7.3 million for 2016 , 2015 and 2014 , respectively. Product warranty The following table summarizes the warranty liability activity: Year ended December 31, (in thousands) 2016 2015 2014 Beginning balances $ 10,856 $ 6,405 $ 3,870 Charged to cost of revenue 19,272 25,377 10,268 Settlements of warranty claims (18,183 ) (20,926 ) (7,733 ) Ending balances $ 11,945 $ 10,856 $ 6,405 At December 31, 2016 , $11.5 million of the warranty liability was recorded as an element of accrued liabilities and $0.5 million was recorded as an element of other long-term liabilities. Legal proceedings. From time to time, the Company is involved in legal proceedings in the ordinary course of business. Due to inherent uncertainties of litigation, the Company cannot accurately predict the ultimate outcome of these matters. The Company is unable at this time to determine whether the outcome of the litigation would have a material impact on the results of operations, financial condition or cash flows of the Company. Indemnifications. In the normal course of business, the Company enters into agreements that contain a variety of representations and warranties and provide for general indemnification. The Company’s exposure under these agreements is unknown because it involves claims that may be made against the Company in the future, but have not yet been made. It is not possible to determine the maximum potential amount under these indemnification agreements due to the Company’s limited history with indemnification claims and the unique facts and circumstances involved in each particular agreement. As of December 31, 2016, the Company has not paid any claims nor has it been required to defend any action related to its indemnification obligations. However, the Company may record charges in the future as a result of these indemnification obligations. |
Concentrations of risk and geog
Concentrations of risk and geographic information | 12 Months Ended |
Dec. 31, 2016 | |
Risks and Uncertainties [Abstract] | |
Concentrations of risk and segment information | Concentrations of risk and geographic information Customer concentration . Financial instruments, which potentially subject the Company to concentrations of credit risk, consist principally of trade receivables. The Company's management 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. Customers who represented 10% or more of the Company's net accounts receivable balance were as follows: December 31, (in thousands) 2016 2015 Customer A 15% * Customer B 27% 40% Customer C * 18% * Less than 10% of total 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) 2016 2015 2014 Accounts receivable sold $ 167,769 $ 194,223 $ 250,437 Factoring fees 1,266 1,566 2,148 Customers who represented 10% or more of the Company's total revenue were as follows: Year ended December 31, 2016 2015 2014 Customer A 17% 14% 20% Customer B 11% 12% * * Less than 10% of total revenue for the period indicated 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's management 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 . Geographic information Revenue by geographic region, based on ship-to destinations, was as follows: Year ended December 31, (in thousands) 2016 2015 2014 Americas $ 619,784 $ 868,772 $ 890,352 EMEA 366,352 535,260 371,197 APAC 199,345 215,939 132,656 Total revenue $ 1,185,481 $ 1,619,971 $ 1,394,205 Revenue in the United States, which is included in the Americas geographic region, was $554.9 million , $769.2 million and $796.0 million for 2016 , 2015 and 2014 , 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, 2016 and 2015 long-lived assets, which represent gross property and equipment, located outside the United States, primarily in Hong Kong and China, were $76.6 million and $47.6 million , respectively. |
Restructuring charges
Restructuring charges | 12 Months Ended |
Dec. 31, 2016 | |
Restructuring and Related Activities [Abstract] | |
Restructuring charges | Restructuring charges and other exit costs First quarter 2016 restructuring. On January 12, 2016, the Company approved a restructuring that provided for a reduction in the Company’s global workforce of approximately 7% . The Company incurred aggregate restructuring expenses of $6.5 million in the first quarter of 2016, which primarily included cash-based severance costs. The plan was substantially completed as of March 31, 2016 and all costs have been paid. Fourth quarter 2016 restructuring On November 29, 2016, the Company approved a restructuring to reduce future operating expenses and achieve its goal of returning to profitability. The restructuring provided for a reduction of the Company's global workforce of approximately 15% , the closure of the Company’s entertainment group to concentrate on its core business, and the consolidation of certain leased office facilities. The Company estimates that it will incur total aggregate charges of approximately $40 million for the restructuring. The Company expects actions associated with the restructuring will be substantially completed in the first half of 2017. Restructuring charges of approximately $36.6 million were recorded in the fourth quarter of 2016, which was comprised of the following: (in thousands) Amount Employee severance pay and related costs (1) $ 18,893 Non-cash acceleration of stock-based compensation expense (1) 15,566 Non-cancelable leases, accelerated depreciation and other charges 2,122 Total restructuring charges $ 36,581 (1) Includes total charges of $11.4 million (including $8.8 million for accelerated equity awards) associated with the departure of the Company's former President. The following table provides a summary of the Company's restructuring activities in the fourth quarter of 2016 and the related liabilities recorded in accrued liabilities on the consolidated balance sheet. The Company expects to pay out its restructuring liability for severance in the first half of 2017. (in thousands) Severance Other Total Restructuring liability as of October 1, 2016 $ — $ — $ — Restructuring charges 18,893 879 19,772 Cash paid (8,440 ) — (8,440 ) Non-cash settlements (793 ) — (793 ) Restructuring liability as of December 31, 2016 $ 9,660 $ 879 $ 10,539 Restructuring charges The following table summarizes total 2016 restructuring charges in the consolidated statements of operations: (in thousands) Amount Cost of revenue $ 497 Research and development 17,197 Sales and marketing 12,064 General and administrative 13,331 Total restructuring charges $ 43,089 Other exit costs. In addition to the restructuring actions above, in the second and third quarters of 2016, the Company committed to plans to vacate and sublet certain leased office facilities. Changes in estimated useful life of associated leasehold improvements and office equipment are expected to result in accelerated depreciation expense of approximately $10 million , including $6.0 million recorded in 2016 and $ 4.0 million ratably over an estimated remaining period of 8 months. |
Valuation and Qualifying Accoun
Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2016 | |
Valuation and Qualifying Accounts [Abstract] | |
Schedule of Valuation and Qualifying Accounts Disclosure [Text Block] | VALUATION AND QUALIFYING ACCOUNTS For the years ended December 31, 2016, 2015 and 2014 (in thousands) Balance at Beginning of Year Charges to Revenue Charges to Expense Deductions/Write-offs Balance at End of Year Allowance for doubtful accounts receivable: Year ended December 31, 2016 $ 1,400 $ — $ 40 $ (159 ) $ 1,281 Year ended December 31, 2015 1,250 — 682 (532 ) 1,400 Year ended December 31, 2014 520 — 970 (240 ) 1,250 Allowance for sales returns: Year ended December 31, 2016 $ 26,280 $ 35,136 $ (41,378 ) $ — $ 20,038 Year ended December 31, 2015 25,747 48,182 (47,649 ) — 26,280 Year ended December 31, 2014 14,352 39,011 (27,616 ) — 25,747 Valuation allowance for deferred tax assets: Year ended December 31, 2016 $ 8,555 $ — $ 101,878 $ — $ 110,433 Year ended December 31, 2015 — — 8,555 — 8,555 |
Summary of business and signi21
Summary of business and significant accounting policies (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Basis of presentation | Basis of presentation . The accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (GAAP). The Company's fiscal year ends on December 31, and its fiscal quarters end on March 31, June 30, and September 30. |
Principles of consolidation | Principles of consolidation. These consolidated financial statements include all the accounts of the Company and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. |
Use of estimates | Use of estimates. The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the amounts reported and disclosed in the Company’s consolidated financial statements and accompanying notes. The Company bases its estimates and assumptions on historical experience and on various other factors that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results could differ materially from management's estimates. To the extent there are material differences between the estimates and the actual results, future results of operations could be affected. |
Comprehensive income (loss) | Comprehensive income (loss). For all periods presented, comprehensive income (loss) approximated net income (loss). Therefore, the consolidated statements of comprehensive income (loss) have been omitted |
Prior period reclassifications | Prior period reclassifications. Reclassifications of certain prior period amounts in the consolidated financial statements have been made to conform to the current period presentation. |
Cash equivalents and marketable securities | Cash equivalents and marketable securities. Cash equivalents primarily consist of investments in money market funds with maturities of three months or less from the date of purchase. Marketable securities consist of commercial paper, U.S. agency securities, and corporate debt securities, and are classified as available-for-sale securities. The Company views these securities as available to support current operations and it has classified all available-for-sale securities as current assets. Available-for-sale securities are carried at fair value with unrealized gains and losses, if any, included in stockholders' equity. Unrealized losses are charged against other income (expense), net, for declines in fair value below the cost of an individual investment that is deemed to be other than temporary. The Company has not identified any marketable securities as other-than-temporarily impaired for the periods presented. The cost of securities sold is based upon a specific identification method. |
Accounts receivable and allowance for doubtful accounts | Accounts receivable and allowance for doubtful accounts. Accounts receivable are stated at invoice value less estimated allowances for returns and doubtful accounts. Allowances are recorded based on the Company's assessment of various factors, such as: historical experience, credit quality of its customers, age of the accounts receivable balances, geographic related risks, economic conditions and other factors that may affect a customer’s ability to pay. |
Inventory | Inventory. Inventory consists of finished goods and component parts, which are purchased directly or from contract manufacturers. Inventory is stated at the lower of cost or market on a first-in, first-out basis. The Company writes down its inventory for estimated obsolescence or excess inventory equal to the difference between the cost of inventory and estimated market value. The Company’s assessment of market value is based upon assumptions around market conditions and estimated future demand for its products within a specified time horizon, generally 12 months. Adjustments to reduce inventory to net realizable value are recognized in cost of revenue. |
Point of purchase (POP) displays | Point of purchase (POP) displays. The Company provides retailers with POP displays, generally free of charge, in order to facilitate the marketing of the Company’s products within retail stores. The POP displays contain a display that broadcasts video images taken by GoPro cameras with product placement available for cameras and accessories. POP display costs, less any fees charged, are capitalized as long-term assets and charged to sales and marketing expense over the expected period of benefit, which generally ranges from 24 to 36 months . Cash outflows and amortization related to POP displays are classified as operating activities in the consolidated statement of cash flows. |
Property and equipment, net | Property and equipment, net. Property and equipment are stated at cost and are depreciated using the straight-line method over the estimated useful life of the assets, ranging from one to ten years. Leasehold improvements are amortized over the shorter of the lease term or their expected useful life. Property and equipment pending installation, configuration or qualification are classified as construction in progress. Costs of maintenance and repairs that do not improve or extend the lives of the respective assets are expensed as incurred. |
Fair value measurements | Fair value measurements. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the reporting date. The Company estimates and categorizes the fair value of its financial assets by applying the following hierarchy: Level 1 Valuations based on quoted prices in active markets for identical assets or liabilities that the Company has the ability to directly access. Level 2 Valuations based on quoted prices for similar assets or liabilities; valuations for interest-bearing securities based on non-daily quoted prices in active markets; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable data for substantially the full term of the assets or liabilities. Level 3 Valuations based on inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. A financial instrument's level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. The fair value of Level 2 financial instruments is obtained from an independent pricing service, which may use quoted market prices for identical or comparable instruments or model driven valuations using observable market data or inputs corroborated by observable market data. |
Leases | Leases. The Company leases its office space and facilities under cancelable and non-cancelable operating leases. For leases that contain rent escalation or rent concession provisions, the Company recognizes rent expense on a straight-line basis over the term of the lease. The Company does not assume renewals in its determination of the lease term unless the renewals are deemed to be reasonably assured at lease inception. |
Goodwill and other intangible assets | Goodwill and other intangible assets . Goodwill represents the excess of the purchase price over the fair value of the net assets acquired in a business combination. Acquired intangible assets other than goodwill are amortized over their useful lives unless the lives are determined to be indefinite. For intangible assets acquired in a business combination, the estimated fair values of the assets received are used to establish their recorded values. Valuation techniques consistent with the market approach, income approach and/or cost approach are used to measure fair value. |
Impairment of goodwill | Impairment of goodwill and long-lived assets. The Company performs an annual assessment of its goodwill during the fourth quarter of each calendar year or more frequently if indicators of potential impairment exist, such as an adverse change in business climate or a decline in the overall industry demand, that would indicate it is more likely than not that the fair value of its single reporting unit is less than its carrying value. There was no impairment of goodwill for any periods presented. For the annual impairment testing in 2016, the Company performed a quantitative analysis and determined the fair value of its single reporting unit exceeded the carrying value. Other indefinite-lived intangible assets are assessed for impairment at least annually. If their value carrying value exceeds the estimated fair value, the difference is recorded as an impairment. See Note 4 for information regarding impairment charges recorded for indefinite-lived intangible assets. Long-lived assets, such as property and equipment and intangible assets subject to amortization, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable. Recoverability of assets to be held and used is measured by comparing the carrying amount to the estimated future undiscounted cash flows expected to be generated by the asset group. If it is determined that an asset group is not recoverable, an impairment charge is recognized for the amount by which the carrying amount of the asset group exceeds its fair value. There was no material impairment of long-lived assets for any periods presented. |
Impairment of long-lived assets | Impairment of goodwill and long-lived assets. The Company performs an annual assessment of its goodwill during the fourth quarter of each calendar year or more frequently if indicators of potential impairment exist, such as an adverse change in business climate or a decline in the overall industry demand, that would indicate it is more likely than not that the fair value of its single reporting unit is less than its carrying value. There was no impairment of goodwill for any periods presented. For the annual impairment testing in 2016, the Company performed a quantitative analysis and determined the fair value of its single reporting unit exceeded the carrying value. Other indefinite-lived intangible assets are assessed for impairment at least annually. If their value carrying value exceeds the estimated fair value, the difference is recorded as an impairment. See Note 4 for information regarding impairment charges recorded for indefinite-lived intangible assets. Long-lived assets, such as property and equipment and intangible assets subject to amortization, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable. Recoverability of assets to be held and used is measured by comparing the carrying amount to the estimated future undiscounted cash flows expected to be generated by the asset group. If it is determined that an asset group is not recoverable, an impairment charge is recognized for the amount by which the carrying amount of the asset group exceeds its fair value. There was no material impairment of long-lived assets for any periods presented. |
Warranty | Warranty. The Company records a liability for estimated product warranty costs at the time product revenue is recognized. The Company's standard warranty obligation to its end-users generally provides a 12 -month warranty coverage on all of its products except in the European Union where the Company provides a two -year warranty. The Company's estimate of costs to service its warranty obligations is based on its historical experience of repair and replacement of the associated products and expectations of future conditions. The warranty obligation is affected by product failure rates and the related use of materials, labor costs and freight incurred in correcting any product failure. |
Revenue recognition | Revenue recognition. Revenue is primarily comprised of product revenue, net of returns and sales incentives. The Company derives substantially all of its revenue from the sale of cameras, mounts and accessories and the related implied post contract support (PCS). The Company recognizes revenue when persuasive evidence of an arrangement exists, delivery has occurred, the sales price is fixed or determinable, and collectability is reasonably assured. For most of the Company's revenue, these criteria are met at the time the product is shipped. For customers who purchase products directly from the Company’s website, revenue is deferred until delivery to the customer's address because the Company retains a portion of the risk of loss on these sales during transit. The Company grants limited rights to return product for certain large retailers and distributors. The Company records reductions to revenue and cost of sales for expected future product returns at the time of sale based on analyses of historical return trends by customer class. Return trends are influenced by product life cycles, new product introductions, market acceptance of products, product sell-through, the type of customer, seasonality, and other factors. Return rates may fluctuate over time, but are sufficiently predictable to allow the Company to estimate expected future product returns. The Company's camera sales are multiple element arrangements that generally include the following two units of accounting: a) the hardware component (camera and/or accessories) and the embedded firmware essential to the functionality of the camera delivered at the time of sale, and b) the implied right for the customer to receive PCS. PCS includes the right to receive, on a when and if available basis, future unspecified firmware upgrades and features as well as bug fixes, email and telephone support. The Company accounts for each element separately and allocates revenue based on its best estimate of the selling price (BESP). The Company's process for determining BESP considers multiple factors that may vary over time depending upon the unique facts and circumstances related to each deliverable, including: the level of support provided to customers, estimated costs to provide the Company's support, the amount of time and cost that is allocated to the Company's efforts to develop the undelivered elements, and market trends in the pricing for similar offerings. The Company also offers several mobile and desktop applications at no charge to help users manage, edit, view and share their content. These applications are not essential to the functionality of the camera, therefore, are not accounted as a separate element of the arrangement. Revenue allocated to the delivered hardware and the related essential software is recognized at the time of sale provided the conditions for recognition of revenue have been met. Revenue allocated to PCS is deferred and recognized on a straight-line basis over the estimated term of the support period, which is estimated to be 15 months based on historical experience. Deferred revenue also includes amounts related to the Company’s GoPro Care and GoPro Plus fee-based service offerings. |
Sales incentives | Sales incentives. The Company offers sales incentives through various programs, consisting primarily of cooperative advertising and marketing development fund programs. Sales incentives are recorded as a reduction to revenue in the period the incentives are offered to the Company’s customers or the related revenue is recognized, whichever is later. In addition, the Company offers price protection discounts to certain customers when camera device models are released or repriced and the customer has remaining inventory on hand. The Company calculates price protection discounts in the period that the price reduction goes into effect, and they are recorded as a reduction of revenue, based on the evaluation of inventory currently held by the customer subject to price protection. |
Shipping costs | Shipping costs. Amounts billed to customers for shipping and handling are classified as revenue and the Company's related shipping and handling costs incurred are classified as cost of revenue. |
Sales taxes | Sales taxes. Sales taxes collected from customers and remitted to respective governmental authorities are recorded as liabilities and not included in revenue. |
Advertising costs | Advertising costs. Advertising costs consist of costs associated with print, television and ecommerce media advertisements and are expensed as incurred. The Company incurs promotional expenses resulting from payments under event, resort and athlete sponsorship contracts. These sponsorship arrangements are considered to be executory contracts and, as such, the costs are expensed as performance under the contract is received. The costs associated with preparation of sponsorship activities, including the supply of GoPro products, media team support, and activation fees are expensed as incurred. Prepayments made under sponsorship agreements are included in prepaid expenses or other long-term assets depending on the period to which the prepayment applies. |
Stock-based compensation | Stock-based compensation. The Company accounts for stock-based compensation in accordance with accounting guidance that requires all stock-based awards granted to employees and directors to be measured at fair value and recognized as an expense. The Company primarily issues restricted stock units. For service-based awards, stock-based compensation is recognized on a straight-line basis over the requisite service period, net of estimated forfeitures. For performance and market-based awards which also require a service period, the Company uses graded vesting over the longer of the derived service period or when the performance or market condition is satisfied. The Company recognizes a benefit from stock-based compensation as additional paid-in capital if an excess tax benefit is realized by following the with-and-without approach. The indirect effects of stock-based compensation deductions are reflected in the income tax provision for purposes of measuring the excess tax benefit at settlement of awards. |
Foreign currency | Foreign currency. The U.S. dollar is the functional currency of the Company's foreign subsidiaries. The Company remeasures monetary assets or liabilities denominated in currencies other than the U.S. dollar using exchange rates prevailing on the balance sheet date, and non-monetary assets and liabilities at historical rates. Foreign currency remeasurement and transaction gains and losses are included in other expense, net and have not been material for any periods presented. |
Income taxes | Income taxes. The Company utilizes the asset and liability method for computing its income tax provision, under which deferred tax assets and liabilities are recognized for the expected future consequences of temporary differences between the financial reporting and tax bases of assets and liabilities using enacted tax rates. Management makes estimates, assumptions and judgments to determine the Company's provision for income taxes, deferred tax assets and liabilities, and any valuation losses recorded against deferred tax assets. The Company assesses the likelihood that its deferred tax assets will be recovered from future taxable income and, to the extent the Company believes recovery is not likely, establishes a valuation allowance. The Company recognizes the tax benefit from an uncertain tax position only if it is more likely than not the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized from such positions are then measured based on the largest benefit that has a greater than 50% likelihood of being realized upon settlement. Interest and penalties related to unrecognized tax benefits are recognized within income tax expense. |
Segment information | Segment information. The Company operates as one operating segment as it only reports financial information on an aggregate and consolidated basis to its CEO, who is the Company’s chief operating decision maker. |
Recent accounting pronouncements | Recent accounting pronouncements Standard Description Expected date of adoption Effect on the financial statements or other significant matters Standards that are not yet adopted Revenue from Contracts with Customers Accounting Standards Update (ASU) No. 2014-09, 2016-08, 2016-10 and 2016-12 (Topic 606) The updated revenue standard establishes principles for recognizing revenue and develops a common revenue standard for all industries. Under the new model, recognition of revenue occurs when a customer obtains control of promised goods or services in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The new standard requires that entities disclose the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. Early adoption is permitted, but not earlier than the first quarter of 2017. The retrospective or cumulative effect transition method is permitted. January 1, 2018 The Company completed an initial analysis of the impact of the standard on its sales contract portfolio by reviewing its current accounting policies and practices to identify potential differences that would result from applying the requirements of the new standard to its sales contracts. The Company does not anticipate a material impact on its consolidated financial statements because the analysis of its contracts under the new standard supports the recognition of most of its revenue at the time product is shipped, consistent with its current revenue policy. Although the Company is continuing to review certain aspects of its policies and practices, it expects that, as a result of the adoption of the new guidance, the timing of recognizing certain sales incentives as a reduction of revenue will generally be earlier than under the existing guidance. The Company expects to utilize the modified retrospective transition method. Leases ASU No. 2016-02(Topic 842) This standard requires lessees to put most leases on their balance sheets but recognize the expenses on their income statements in a manner similar to current practice. Lessees would recognize a right-to-use asset and lease liability for all leases with terms of more than 12 months. Recognition, measurement and presentation of expenses will depend on classification as a finance or operating lease. The new standard should be applied on a modified retrospective basis. January 1, 2019 Although the Company is currently evaluating the impact that the adoption of this standard will have on its consolidated financial statements and related disclosures, the Company currently expects that most of its operating lease commitments will be subject to the new standard and recognized as operating lease liabilities and right-of-use assets upon adoption. Stock Compensation ASU No. 2016-09 (Topic 718) This standard simplifies certain aspects of the accounting for share-based payment transactions, including income taxes, classification of awards and classification on the statement of cash flows. The new guidance also allows an entity to make a policy election to account for forfeitures as they occur. Early adoption is permitted for an entity in any interim or annual period. January 1, 2017 The adoption of the standard resulted in a net cumulative-effect adjustment of $16.2 million to decrease accumulated deficit as of January 1, 2017, mostly related to the recognition of previously unrecognized excess tax benefits using the modified retrospective method. The previously unrecognized excess tax effects were recorded as a reduction to tax liabilities or an increase to deferred tax assets, which was fully offset by a valuation allowance. Without the valuation allowance, the Company’s deferred tax assets would have increased by $162.8 million. The Company elected to apply the change in presentation to the statements of cash flows prospectively and elected to account for forfeitures as they occur. Income Taxes ASU No. 2016-16 (Topic 740) This standard requires entities to recognize at the transaction date the income tax consequences of intra-entity asset transfers. Previous guidance requires the tax effects from intra-entity asset transfers to be deferred until that asset is sold to a third party or recovered through use. The updated standard is effective in annual and interim periods in fiscal years beginning after December 15, 2017, with early adoption permitted during the first interim period of a fiscal year, and requires a modified retrospective transition method. January 1, 2018 The Company is evaluating the impact that the adoption of this standard will have on its consolidated financial statements and related disclosures. Intangible - Goodwill and Other ASU No. 2017-04 (Topic 350) This standard simplifies the accounting for goodwill and removes Step 2 of the annual goodwill impairment test. Upon adoption, goodwill impairment will be determined based on the amount by which a reporting unit's carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. Early adoption permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017, and requires a prospective transition method. January 1, 2020 The Company is evaluating the impact that the adoption of this standard will have on its consolidated financial statements and related disclosures. |
Summary of business and signi22
Summary of business and significant accounting policies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Schedule of recent accounting pronouncements | Recent accounting pronouncements Standard Description Expected date of adoption Effect on the financial statements or other significant matters Standards that are not yet adopted Revenue from Contracts with Customers Accounting Standards Update (ASU) No. 2014-09, 2016-08, 2016-10 and 2016-12 (Topic 606) The updated revenue standard establishes principles for recognizing revenue and develops a common revenue standard for all industries. Under the new model, recognition of revenue occurs when a customer obtains control of promised goods or services in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The new standard requires that entities disclose the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. Early adoption is permitted, but not earlier than the first quarter of 2017. The retrospective or cumulative effect transition method is permitted. January 1, 2018 The Company completed an initial analysis of the impact of the standard on its sales contract portfolio by reviewing its current accounting policies and practices to identify potential differences that would result from applying the requirements of the new standard to its sales contracts. The Company does not anticipate a material impact on its consolidated financial statements because the analysis of its contracts under the new standard supports the recognition of most of its revenue at the time product is shipped, consistent with its current revenue policy. Although the Company is continuing to review certain aspects of its policies and practices, it expects that, as a result of the adoption of the new guidance, the timing of recognizing certain sales incentives as a reduction of revenue will generally be earlier than under the existing guidance. The Company expects to utilize the modified retrospective transition method. Leases ASU No. 2016-02(Topic 842) This standard requires lessees to put most leases on their balance sheets but recognize the expenses on their income statements in a manner similar to current practice. Lessees would recognize a right-to-use asset and lease liability for all leases with terms of more than 12 months. Recognition, measurement and presentation of expenses will depend on classification as a finance or operating lease. The new standard should be applied on a modified retrospective basis. January 1, 2019 Although the Company is currently evaluating the impact that the adoption of this standard will have on its consolidated financial statements and related disclosures, the Company currently expects that most of its operating lease commitments will be subject to the new standard and recognized as operating lease liabilities and right-of-use assets upon adoption. Stock Compensation ASU No. 2016-09 (Topic 718) This standard simplifies certain aspects of the accounting for share-based payment transactions, including income taxes, classification of awards and classification on the statement of cash flows. The new guidance also allows an entity to make a policy election to account for forfeitures as they occur. Early adoption is permitted for an entity in any interim or annual period. January 1, 2017 The adoption of the standard resulted in a net cumulative-effect adjustment of $16.2 million to decrease accumulated deficit as of January 1, 2017, mostly related to the recognition of previously unrecognized excess tax benefits using the modified retrospective method. The previously unrecognized excess tax effects were recorded as a reduction to tax liabilities or an increase to deferred tax assets, which was fully offset by a valuation allowance. Without the valuation allowance, the Company’s deferred tax assets would have increased by $162.8 million. The Company elected to apply the change in presentation to the statements of cash flows prospectively and elected to account for forfeitures as they occur. Income Taxes ASU No. 2016-16 (Topic 740) This standard requires entities to recognize at the transaction date the income tax consequences of intra-entity asset transfers. Previous guidance requires the tax effects from intra-entity asset transfers to be deferred until that asset is sold to a third party or recovered through use. The updated standard is effective in annual and interim periods in fiscal years beginning after December 15, 2017, with early adoption permitted during the first interim period of a fiscal year, and requires a modified retrospective transition method. January 1, 2018 The Company is evaluating the impact that the adoption of this standard will have on its consolidated financial statements and related disclosures. Intangible - Goodwill and Other ASU No. 2017-04 (Topic 350) This standard simplifies the accounting for goodwill and removes Step 2 of the annual goodwill impairment test. Upon adoption, goodwill impairment will be determined based on the amount by which a reporting unit's carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. Early adoption permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017, and requires a prospective transition method. January 1, 2020 The Company is evaluating the impact that the adoption of this standard will have on its consolidated financial statements and related disclosures. |
Fair value measurements (Tables
Fair value measurements (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Assets measured at fair value on a recurring basis | The Company’s assets that are measured at fair value on a recurring basis within the fair value hierarchy are summarized as follows: December 31, 2016 December 31, 2015 (in thousands) Level 1 Level 2 Total Level 1 Level 2 Total Cash equivalents (1) : Money market funds $ 18,024 $ — $ 18,024 $ 51,059 $ — $ 51,059 Total cash equivalents $ 18,024 $ — $ 18,024 $ 51,059 $ — $ 51,059 Marketable securities: U.S. agency securities $ — $ 8,283 $ 8,283 $ — $ 14,451 $ 14,451 Commercial paper — — — — 2,197 2,197 Corporate debt securities — 15,226 15,226 — 165,825 165,825 Municipal securities — 2,330 2,330 — 11,913 11,913 Total marketable securities $ — $ 25,839 $ 25,839 $ — $ 194,386 $ 194,386 (1) Included in “cash and cash equivalents” in the accompanying consolidated balance sheets. Cash balances were $174.1 million and $228.6 million as of December 31, 2016 and December 31, 2015 , respectively. |
Available-for-sale Securities | The remaining contractual maturities of available-for-sale marketable securities are as follows: December 31, (in thousands) 2016 2015 Less than one year $ 25,839 $ 122,199 Greater than one year but less than two years — 72,187 Total $ 25,839 $ 194,386 |
Consolidated financial statem24
Consolidated financial statement details (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Inventory | Inventory December 31, (in thousands) 2016 2015 Components $ 25,236 $ 9,476 Finished goods 141,956 178,756 Total inventory $ 167,192 $ 188,232 |
Property, Plant and Equipment | Property and equipment, net December 31, (in thousands) Useful life (in years) 2016 2015 Leasehold improvements 3–12 $ 48,103 $ 40,841 Production, engineering and other equipment 4 46,328 25,174 Tooling 1–2 23,742 19,537 Computers and software 2 18,750 14,581 Furniture and office equipment 3 12,530 11,389 Tradeshow equipment and other 2-5 7,578 4,136 Construction in progress 1,870 4,632 Gross property and equipment 158,901 120,290 Less: Accumulated depreciation and amortization (82,392 ) (50,240 ) Property and equipment, net $ 76,509 $ 70,050 |
Schedule of Finite-Lived Intangible Assets | Intangible assets and goodwill December 31, 2016 (in thousands) Gross carrying value Accumulated amortization Net carrying value Purchased technology $ 47,001 $ (17,086 ) $ 29,915 In-process research and development (IPR&D) 3,615 — 3,615 Total intangible assets $ 50,616 $ (17,086 ) $ 33,530 December 31, 2015 (in thousands) Gross carrying value Accumulated Net carrying value Purchased technology $ 32,952 $ (8,540 ) $ 24,412 IPR&D 6,615 — 6,615 Total intangible assets $ 39,567 $ (8,540 ) $ 31,027 A summary of the Company’s IPR&D activity during 2016 is as follows: (in thousands) Total Balance at December 31, 2015 $ 6,615 IPR&D assets acquired 4,460 Technological feasibility achieved (1,150 ) Asset impairment (6,310 ) Balance at December 31, 2016 $ 3,615 |
Schedule of Future Amortization | At December 31, 2016 , the expected amortization expense of intangible assets for future periods is as follows: (in thousands) Total Year ending December 31, 2017 $ 8,689 2018 8,297 2019 7,786 2020 4,273 2021 870 $ 29,915 |
Schedule of Other Assets | Other long-term assets December 31, (in thousands) 2016 2015 POP displays $ 27,592 $ 27,989 Long-term deferred tax assets 106 41,936 Income tax receivable 33,425 33,206 Deposits and other 17,206 8,430 Other long-term assets $ 78,329 $ 111,561 |
Schedule of Accrued Liabilities | Accrued liabilities December 31, (in thousands) 2016 2015 Accrued payables $ 91,655 $ 60,738 Employee related liabilities (1) 42,577 27,535 Accrued sales incentives 40,070 29,298 Warranty liability 11,456 10,400 Customer deposits 4,381 8,877 Income taxes payable 2,756 7,536 Purchase order commitments 4,730 38,477 Other 13,698 9,585 Accrued liabilities $ 211,323 $ 192,446 |
Stockholders' equity (Tables)
Stockholders' equity (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
Disclosure of share-based compensation arrangements by share-based payment award | The Company had the following shares of common stock reserved for issuance upon the exercise of equity instruments as of December 31, 2016: (in thousands) December 31, 2016 Stock options outstanding 12,379 Restricted stock units outstanding 7,970 Common stock available for future grants 20,685 Total common stock shares reserved for issuance 41,034 |
Employee benefit plans (Tables)
Employee benefit plans (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Share-based Compensation, Stock Options, Activity | A summary of the Company’s stock option activity in 2016 is as follows: Options outstanding Shares (in thousands) Weighted- average Weighted- Aggregate Outstanding at December 31, 2015: 13,081 $ 11.82 6.70 $ 108,846 Granted 2,573 11.27 Exercised (1,733 ) 2.05 Forfeited/Cancelled (1,542 ) 19.07 Outstanding at December 31, 2016: 12,379 $ 12.17 5.97 $ 32,772 Vested and expected to vest at December 31, 2016 12,245 $ 12.12 5.95 $ 32,772 Exercisable at December 31, 2016 8,952 $ 10.37 5.36 $ 32,771 |
Schedule of Share-based Compensation, Restricted Stock Units Award Activity | A summary of the Company’s RSU activity in 2016 and 2015 is as follows: Shares (in thousands) Weighted- average grant date fair value Non-vested shares at December 31, 2014 4,307 $ 21.98 Granted 2,170 44.00 Vested (1,735 ) 19.84 Forfeited (104 ) 63.47 Non-vested shares at December 31, 2015 4,638 32.15 Granted 7,354 12.10 Vested (2,075 ) 23.87 Forfeited (1,947 ) 22.85 Non-vested shares at December 31, 2016 7,970 $ 18.08 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | The fair value of stock options granted was estimated as of the grant date using the following assumptions: Year ended December 31, 2016 2015 2014 Volatility 44%–45% 43%–54% 54%–56% Expected term (years) 5.2–6.1 5.5–7.0 5.3–6.3 Risk-free interest rate 1.2%–2.0% 1.6%–2.0% 1.7%–2.0% Dividend yield —% —% —% |
Schedule of Share-based Payment Award, Equity Instruments Other Than Options, Valuation Assumptions | The fair value of stock purchase rights granted under the ESPP was estimated using the following assumptions: Year ended December 31, 2016 2015 2014 Volatility 43%–54% 39%–45% 45.5% Expected term (years) 0.5 0.5 0.6 Risk-free interest rate 0.4%–0.5% 0.1%–0.2% 0.1% Dividend yield —% —% —% |
Allocation of Stock-based Compensation Expense | The following table summarizes stock-based compensation included in the consolidated statements of operations: Year ended December 31, (in thousands) 2016 2015 2014 Cost of revenue $ 1,616 $ 1,492 $ 835 Research and development 31,365 18,024 11,640 Sales and marketing 13,883 13,762 10,428 General and administrative 22,663 47,402 48,496 Total stock-based compensation expense $ 69,527 $ 80,680 $ 71,399 |
Net income (loss) per share (Ta
Net income (loss) per share (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
Schedule of Net Income per Share, Basic and Diluted | The following table presents the calculations of basic and diluted net income (loss) per share: Year ended December 31, (in thousands, except per share data) 2016 2015 2014 Numerator: Allocation of net income (loss) $ (419,003 ) $ 36,131 $ 128,088 Less: net income allocable to participating securities — — 16,512 Net income (loss) attributable to common stockholders—basic (419,003 ) 36,131 111,576 Add: net income allocable to dilutive participating securities — — 2,277 Net income (loss) attributable to common stockholders—diluted $ (419,003 ) $ 36,131 $ 113,853 Denominator: Weighted-average common shares—basic for Class A and Class B common stock 139,425 134,595 104,453 Stock options, RSU's and ESPP shares — 11,891 19,177 Weighted-average common shares—diluted for Class A and Class B common stock 139,425 146,486 123,630 Net income (loss) per share attributable to common stockholders: Basic $ (3.01 ) $ 0.27 $ 1.07 Diluted $ (3.01 ) $ 0.25 $ 0.92 |
Schedule of Antidilutive Securities Excluded from Computation of Net Income per Share | The following potentially dilutive shares were not included in the calculation of diluted shares outstanding as the effect would have been anti-dilutive: Year ended December 31, (in thousands) 2016 2015 2014 Stock options, RSUs and ESPP shares 21,000 2,681 15,921 |
Income taxes (Tables)
Income taxes (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income before Income Tax, Domestic and Foreign | Income before income taxes consisted of the following: Year ended December 31, (in thousands) 2016 2015 2014 Domestic $ (200,595 ) $ 13,562 $ 114,937 Foreign (174,579 ) 39,023 66,038 $ (375,174 ) $ 52,585 $ 180,975 |
Schedule of Components of Income Tax Expense (Benefit) | Income tax expense consisted of the following: Year ended December 31, (in thousands) 2016 2015 2014 Current: Federal $ (2,925 ) $ 18,548 $ 55,846 State (356 ) 3,007 6,075 Foreign 8,542 6,539 8,219 Total current 5,261 28,094 70,140 Deferred: Federal 37,573 (11,211 ) (13,551 ) State 4,436 (204 ) (3,369 ) Foreign (3,441 ) (225 ) (333 ) Total deferred 38,568 (11,640 ) (17,253 ) Income tax expense $ 43,829 $ 16,454 $ 52,887 |
Schedule of Effective Income Tax Rate Reconciliation | Year ended December 31, 2016 2015 2014 (in thousands, except percentage) $ % $ % $ % Reconciliation to statutory rate: Tax at federal statutory rate $ (131,311 ) (35.0 )% $ 18,405 35.0 % $ 63,341 35.0 % Change in valuation allowance 101,878 27.2 8,555 16.3 — — Impact of foreign operations 84,491 22.5 6,434 12.2 (13,305 ) (7.4 ) Stock-based compensation 15,718 4.2 2,390 4.5 8,050 4.4 State taxes, net of federal benefit (14,195 ) (3.8 ) 1,454 2.8 4,911 2.7 Tax credits (12,992 ) (3.5 ) (21,891 ) (41.6 ) (10,616 ) (5.9 ) Other 240 0.1 1,107 2.1 506 0.4 Income tax provision at effective tax rate $ 43,829 11.7 % $ 16,454 31.3 % $ 52,887 29.2 % |
Schedule of Deferred Tax Assets and Liabilities | Significant components of the Company’s deferred tax assets and liabilities were as follows: December 31, (in thousands) 2016 2015 Deferred tax assets: Net operating loss carryforwards $ 30,193 $ 339 Tax credit carryforwards 22,341 9,372 Stock-based compensation 26,656 19,096 Allowance for returns 6,336 8,812 Accruals and reserves 26,587 20,398 Total deferred tax assets 112,113 58,017 Valuation allowance (110,433 ) (8,555 ) Total deferred tax assets, net of valuation allowance 1,680 49,462 Deferred tax liabilities: Depreciation and amortization (1,714 ) (6,937 ) Intangible assets (2,540 ) (2,904 ) Total deferred tax liabilities (4,254 ) (9,841 ) Net deferred tax assets (liabilities) $ (2,574 ) $ 39,621 |
Summary of Income Tax Contingencies | A reconciliation of the beginning and ending amount of the unrecognized income tax benefits are as follows: December 31, (in thousands) 2016 2015 2014 Gross balance at January 1 $ 36,273 $ 16,558 $ 9,898 Gross increase related to current year tax positions 20,594 19,948 6,401 Gross increase related to prior year tax positions 130 108 259 Gross decrease related to prior year tax positions (88 ) (341 ) — $ 56,909 $ 36,273 $ 16,558 |
Commitments, contingencies an29
Commitments, contingencies and guarantees (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Other Commitments | The following table summarizes the Company's total undiscounted future expected obligations under multi-year agreements with terms longer than one year: (in thousands) Total 2017 2018 2019 2020 2021 Thereafter Operating leases (1) $ 139,511 $ 16,972 $ 20,345 $ 13,896 $ 17,157 $ 16,770 $ 54,371 Sponsorship commitments (2) 14,500 7,449 4,134 2,917 — — — Other contractual commitments (3) 39,189 11,744 14,723 12,722 — — — Total contractual cash obligations $ 193,200 $ 36,165 $ 39,202 $ 29,535 $ 17,157 $ 16,770 $ 54,371 (1) The Company leases its facilities under long-term operating leases, which expire at various dates through 2027. (2) The Company enters into multi-year sponsorship agreements with event organizers, resorts and athletes as part of its marketing efforts. (3) The Company enters into other contractual commitments, including the multi-year agreement with Red Bull, as well as software licenses related to the Company's financial and IT systems which require payments over several years. |
Schedule of Product Warranty Liability Activity | The following table summarizes the warranty liability activity: Year ended December 31, (in thousands) 2016 2015 2014 Beginning balances $ 10,856 $ 6,405 $ 3,870 Charged to cost of revenue 19,272 25,377 10,268 Settlements of warranty claims (18,183 ) (20,926 ) (7,733 ) Ending balances $ 11,945 $ 10,856 $ 6,405 |
Concentrations of risk and ge30
Concentrations of risk and geographic information (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Concentration Risk [Line Items] | |
Schedule of Accounts, Notes, Loans and Financing Receivable | The following table summarizes the Company's accounts receivables sold, without recourse, and factoring fees paid: Year ended December 31, (in thousands) 2016 2015 2014 Accounts receivable sold $ 167,769 $ 194,223 $ 250,437 Factoring fees 1,266 1,566 2,148 |
Schedule of Revenue by Geographic Region | Revenue by geographic region, based on ship-to destinations, was as follows: Year ended December 31, (in thousands) 2016 2015 2014 Americas $ 619,784 $ 868,772 $ 890,352 EMEA 366,352 535,260 371,197 APAC 199,345 215,939 132,656 Total revenue $ 1,185,481 $ 1,619,971 $ 1,394,205 |
Accounts Receivable [Member] | |
Concentration Risk [Line Items] | |
Schedules of Customer Concentration by Risk Factor | Customers who represented 10% or more of the Company's net accounts receivable balance were as follows: December 31, (in thousands) 2016 2015 Customer A 15% * Customer B 27% 40% Customer C * 18% * Less than 10% of total accounts receivable for the period indicated |
Sales Revenue [Member] | |
Concentration Risk [Line Items] | |
Schedules of Customer Concentration by Risk Factor | Customers who represented 10% or more of the Company's total revenue were as follows: Year ended December 31, 2016 2015 2014 Customer A 17% 14% 20% Customer B 11% 12% * * Less than 10% of total revenue for the period indicated |
Restructuring charges (Tables)
Restructuring charges (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Costs | Restructuring charges of approximately $36.6 million were recorded in the fourth quarter of 2016, which was comprised of the following: (in thousands) Amount Employee severance pay and related costs (1) $ 18,893 Non-cash acceleration of stock-based compensation expense (1) 15,566 Non-cancelable leases, accelerated depreciation and other charges 2,122 Total restructuring charges $ 36,581 (1) Includes total charges of $11.4 million (including $8.8 million for accelerated equity awards) associated with the departure of the Company's former President. The following table summarizes total 2016 restructuring charges in the consolidated statements of operations: (in thousands) Amount Cost of revenue $ 497 Research and development 17,197 Sales and marketing 12,064 General and administrative 13,331 Total restructuring charges $ 43,089 |
Schedule of Restructuring Reserve by Type of Cost | The following table provides a summary of the Company's restructuring activities in the fourth quarter of 2016 and the related liabilities recorded in accrued liabilities on the consolidated balance sheet. The Company expects to pay out its restructuring liability for severance in the first half of 2017. (in thousands) Severance Other Total Restructuring liability as of October 1, 2016 $ — $ — $ — Restructuring charges 18,893 879 19,772 Cash paid (8,440 ) — (8,440 ) Non-cash settlements (793 ) — (793 ) Restructuring liability as of December 31, 2016 $ 9,660 $ 879 $ 10,539 |
Summary of business and signi32
Summary of business and significant accounting policies (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Property, Plant and Equipment [Line Items] | |||
Allowance for doubtful accounts | $ 1.3 | $ 1.4 | |
Amortization of long-term assets | $ 19.6 | 16.8 | $ 18 |
Warranty Period | 12 months | ||
Advertising expense | $ 106 | $ 64.7 | $ 47.2 |
Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Long-term assets amortization period | 24 months | ||
Useful life | 1 year | ||
Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Long-term assets amortization period | 36 months | ||
Useful life | 10 years | ||
European Union [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Warranty Period | 2 years | ||
New Accounting Pronouncement, Early Adoption, Effect [Member] | Accounting Standards Update 2016-09 [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Deferred income tax assets | $ 162.1 | ||
New Accounting Pronouncement, Early Adoption, Effect [Member] | Retained Earnings [Member] | Accounting Standards Update 2016-09 [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Cumulative effect of new accounting principle in period of adoption | $ 16.2 |
(Details)
(Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016USD ($)business_acquisition | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Business Acquisition [Line Items] | |||
Cash consideration | $ 104,353 | $ 65,405 | $ 3,950 |
Goodwill | 146,459 | 57,095 | |
Allocated share-based compensation expense | $ (69,499) | (80,583) | $ (71,399) |
Series of Individually Immaterial Business Acquisitions [Member] | |||
Business Acquisition [Line Items] | |||
Number of businesses acquired | business_acquisition | 2 | ||
Cash consideration | $ 104,000 | 70,200 | |
Identifiable intangible assets | 17,400 | 32,300 | |
Net deferred tax liabilities | 3,400 | 4,700 | |
Goodwill | 89,000 | $ 43,000 | |
Deferred cash and stock compensation | $ 35,000 | ||
Award requisite service period | 4 years | ||
Allocated share-based compensation expense | $ 22,000 |
Fair value measurements (Detail
Fair value measurements (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | $ 25,839 | $ 194,386 |
Cash | 174,100 | 228,600 |
Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 18,024 | 51,059 |
Marketable securities | 25,839 | 194,386 |
Marketable securities with contractual maturity of one year or less | 25,839 | 122,199 |
Marketable securities with contractual maturity of one to two years | 0 | 72,187 |
Fair Value, Measurements, Recurring [Member] | US Agency Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 8,283 | 14,451 |
Fair Value, Measurements, Recurring [Member] | Commercial Paper [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 2,197 |
Fair Value, Measurements, Recurring [Member] | Corporate Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 15,226 | 165,825 |
Fair Value, Measurements, Recurring [Member] | Municipal Notes [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 2,330 | 11,913 |
Fair Value, Measurements, Recurring [Member] | Money Market Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 18,024 | 51,059 |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 18,024 | 51,059 |
Marketable securities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | US Agency Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | Commercial Paper [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | Corporate Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | Municipal Notes [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | Money Market Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 18,024 | 51,059 |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Marketable securities | 25,839 | 194,386 |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | US Agency Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 8,283 | 14,451 |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Commercial Paper [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 2,197 |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Corporate Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 15,226 | 165,825 |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Municipal Notes [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 2,330 | 11,913 |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Money Market Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | $ 0 | $ 0 |
Consolidated financial statem35
Consolidated financial statement details - Inventory (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Components | $ 25,236 | $ 9,476 |
Finished goods | 141,956 | 178,756 |
Total inventory | $ 167,192 | $ 188,232 |
Consolidated financial statem36
Consolidated financial statement details - Property and Equipment, Net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Property, Plant and Equipment [Line Items] | |||
Gross property and equipment | $ 158,901 | $ 120,290 | |
Less: Accumulated depreciation and amortization | (82,392) | (50,240) | |
Property and equipment, net | 76,509 | 70,050 | |
Depreciation | 32,400 | 24,800 | $ 16,800 |
Leasehold Improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Gross property and equipment | 48,103 | 40,841 | |
Production, engineering and other equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Gross property and equipment | $ 46,328 | 25,174 | |
Useful life | 4 years | ||
Tooling [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Gross property and equipment | $ 23,742 | 19,537 | |
Computers and software [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Gross property and equipment | $ 18,750 | 14,581 | |
Useful life | 2 years | ||
Furniture and office equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Gross property and equipment | $ 12,530 | 11,389 | |
Useful life | 3 years | ||
Tradeshow Equipment and other [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Gross property and equipment | $ 7,578 | 4,136 | |
Construction in Progress [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Gross property and equipment | $ 1,870 | $ 4,632 | |
Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Useful life | 1 year | ||
Minimum [Member] | Leasehold Improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Useful life | 3 years | ||
Minimum [Member] | Tooling [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Useful life | 1 year | ||
Minimum [Member] | Tradeshow Equipment and other [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Useful life | 2 years | ||
Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Useful life | 10 years | ||
Maximum [Member] | Leasehold Improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Useful life | 12 years | ||
Maximum [Member] | Tooling [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Useful life | 2 years | ||
Maximum [Member] | Tradeshow Equipment and other [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Useful life | 5 years |
Consolidated financial statem37
Consolidated financial statement details - Intangible Assets and Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | |
Finite-Lived Intangible Assets, Net [Abstract] | |||||
Gross carrying value | $ 47,001 | $ 32,952 | |||
Accumulated amortization | (17,086) | (8,540) | |||
Net carrying value | 29,915 | 24,412 | |||
Indefinite lived intangible assets | $ 6,615 | $ 6,615 | 3,615 | 6,615 | |
Intangible Assets, Gross (Excluding Goodwill) | 50,616 | 39,567 | |||
Intangible assets, net | 33,530 | 31,027 | |||
Indefinite-lived Intangible Assets [Roll Forward] | |||||
Balance at December 31, 2015 | 6,615 | ||||
IPR&D assets acquired | 4,460 | ||||
Technological feasibility achieved | (1,150) | ||||
Asset impairment | (6,310) | ||||
Balance at December 31, 2016 | $ 3,615 | 6,615 | |||
Estimated useful life (in years) | 4 years | ||||
Amortization of intangible assets | $ 9,100 | $ 4,200 | $ 1,100 | ||
Goodwill | $ 146,459 | $ 57,095 |
Consolidated financial statem38
Consolidated financial statement details - Future Amortization (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
2,017 | $ 8,689 | |
2,018 | 8,297 | |
2,019 | 7,786 | |
2,020 | 4,273 | |
2,021 | 870 | |
Net carrying value | $ 29,915 | $ 24,412 |
Consolidated financial statem39
Consolidated financial statement details - Goodwill (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Business Combination, Goodwill [Abstract] | ||
Goodwill | $ 146,459 | $ 57,095 |
Consolidated financial statem40
Consolidated financial statement details - Other Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
POP displays | $ 27,592 | $ 27,989 |
Long-term deferred tax assets | 106 | 41,936 |
Income tax receivable | 33,425 | 33,206 |
Deposits and other | 17,206 | 8,430 |
Other long-term assets | $ 78,329 | $ 111,561 |
Consolidated financial statem41
Consolidated financial statement details - Accrued Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Accrued payables | $ 91,655 | $ 60,738 |
Employee related liabilities | 42,577 | 27,535 |
Accrued sales incentives | 40,070 | 29,298 |
Warranty liability | 11,456 | 10,400 |
Customer deposits | 4,381 | 8,877 |
Income taxes payable | 2,756 | 7,536 |
Purchase order commitments | 4,730 | 38,477 |
Other | 13,698 | 9,585 |
Total accrued liabilities | $ 211,323 | $ 192,446 |
Financing Arrangements (Details
Financing Arrangements (Details) - Revolving Credit Facility [Member] - USD ($) | 1 Months Ended | |
Mar. 31, 2016 | Dec. 31, 2016 | |
Line of Credit Facility [Line Items] | ||
Credit agreement, current borrowing capacity | $ 250,000,000 | |
Credit agreement, maximum borrowing capacity | 300,000,000 | |
Minimum fixed charge coverage ratio, minimum balance | $ 25,000,000 | |
Minimum fixed charge coverage ratio, minimum percent | 10.00% | |
Borrowing capacity at quarter end | $ 150,000,000 | |
Amount outstanding | $ 0 | |
Minimum [Member] | ||
Line of Credit Facility [Line Items] | ||
Unused capacity commitment fee | 0.25% | |
Maximum [Member] | ||
Line of Credit Facility [Line Items] | ||
Unused capacity commitment fee | 0.375% | |
London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | ||
Line of Credit Facility [Line Items] | ||
Basis spread on variable rate | 1.50% | |
London Interbank Offered Rate (LIBOR) [Member] | Maximum [Member] | ||
Line of Credit Facility [Line Items] | ||
Basis spread on variable rate | 2.00% | |
Base Rate [Member] | Minimum [Member] | ||
Line of Credit Facility [Line Items] | ||
Basis spread on variable rate | 0.50% | |
Base Rate [Member] | Maximum [Member] | ||
Line of Credit Facility [Line Items] | ||
Basis spread on variable rate | 1.00% |
Stockholders' equity (Details)
Stockholders' equity (Details) | 1 Months Ended | 4 Months Ended | 6 Months Ended | 12 Months Ended | |||||||
Sep. 30, 2015USD ($)$ / sharesshares | May 31, 2015shares | Nov. 30, 2014USD ($)$ / sharesshares | Jul. 31, 2014USD ($)$ / sharesshares | Apr. 30, 2015shares | Jun. 30, 2015shares | Dec. 31, 2016voteshares | Dec. 31, 2015USD ($)shares | Sep. 30, 2016shares | Dec. 31, 2014shares | Jun. 30, 2014shares | |
Class of Stock [Line Items] | |||||||||||
Stock options outstanding (shares) | 12,379,000 | 13,081,000 | |||||||||
Common stock available for future grants (shares) | 41,034,000 | ||||||||||
Authorized amount | $ | $ 300,000,000 | ||||||||||
Treasury stock acquired (shares) | 1,500,000 | ||||||||||
Treasury stock acquired (usd per share) | $ / shares | $ 23.05 | ||||||||||
Treasury stock acquired | $ | $ 35,600,000 | $ 35,613,000 | |||||||||
Common Class A [Member] | |||||||||||
Class of Stock [Line Items] | |||||||||||
Common stock conversion ratio | 1 | ||||||||||
Common stock authorized (shares) | 500,000,000 | 500,000,000 | 500,000,000 | ||||||||
Common stock issued (shares) | 104,600,000 | 100,596,000 | 104,647,000 | ||||||||
Common stock outstanding (shares) | 104,600,000 | 100,596,000 | 104,647,000 | ||||||||
Common stock votes per share | vote | 1 | ||||||||||
Series A Preferred Stock [Member] | |||||||||||
Class of Stock [Line Items] | |||||||||||
Redeemable convertible preferred stock outstanding (shares) | 30,500,000 | ||||||||||
Common stock conversion ratio | 1 | ||||||||||
Common Class B [Member] | |||||||||||
Class of Stock [Line Items] | |||||||||||
Common stock authorized (shares) | 150,000,000 | 150,000,000 | 150,000,000 | ||||||||
Common stock issued (shares) | 36,700,000 | 36,005,000 | 36,712,000 | ||||||||
Common stock outstanding (shares) | 36,700,000 | 36,005,000 | 36,712,000 | ||||||||
Common stock votes per share | vote | 10 | ||||||||||
Conversion ratio once outstanding shares are less than 10% of aggregate shares outstanding | 1 | ||||||||||
IPO [Member] | Common Class A [Member] | |||||||||||
Class of Stock [Line Items] | |||||||||||
Stock issued during period (shares) | 8,900,000 | ||||||||||
Share price (usd per share) | $ / shares | $ 24 | ||||||||||
Underwriters public offering (shares) | 11,600,000 | ||||||||||
Over allotment option in underwritten public offering (shares) | 2,700,000 | ||||||||||
Proceeds from issuance initial public offering | $ | $ 200,800,000 | ||||||||||
Follow-on Offering [Member] | Common Class A [Member] | |||||||||||
Class of Stock [Line Items] | |||||||||||
Stock issued during period (shares) | 1,300,000 | ||||||||||
Share price (usd per share) | $ / shares | $ 75 | ||||||||||
Underwriters public offering (shares) | 10,600,000 | ||||||||||
Over allotment option in underwritten public offering (shares) | 1,600,000 | ||||||||||
Proceeds from issuance initial public offering | $ | $ 93,200,000 | ||||||||||
Restricted Stock Units (RSUs) [Member] | |||||||||||
Class of Stock [Line Items] | |||||||||||
Restricted stock units outstanding (shares) | 7,970,000 | 4,638,000 | 4,307,000 | ||||||||
Restricted Stock and Early-exercised Options [Member] | |||||||||||
Class of Stock [Line Items] | |||||||||||
Common stock available for future grants (shares) | 20,685,000 | ||||||||||
Chief Executive Officer (CEO) [Member] | Common Class B [Member] | |||||||||||
Class of Stock [Line Items] | |||||||||||
Shares contributed to company without consideration (shares) | 4,700,000 | 500,000 | 5,200,000 |
Employee benefit plans - Narrat
Employee benefit plans - Narrative (Details) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Jun. 30, 2014shares | Dec. 31, 2016USD ($)plan$ / sharesshares | Dec. 31, 2015USD ($)$ / sharesshares | Dec. 31, 2014USD ($)$ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of stock-based employee compensation plans | plan | 3 | |||
Defined contribution plan minimum annual contributions per employee | 1.00% | |||
Defined contribution plan maximum annual contributions per employee | 86.00% | |||
Employer matching contribution, percent of match | 100.00% | |||
Employer matching contribution, percent of employees' gross pay | 4.00% | |||
Contributions by employer | $ | $ 7,200 | $ 5,500 | $ 2,700 | |
Options granted in period, weighted average grant date fair value (usd per share) | $ / shares | $ 4.84 | $ 18.40 | $ 11.51 | |
Fair value of options vested | $ | $ 27,200 | $ 26,900 | $ 16,000 | |
Allocated share-based compensation expense | $ | $ (69,499) | $ (80,583) | (71,399) | |
ESPP stock issued during period (shares) | shares | 668,107 | 436,924 | ||
ESPP weighted average purchase price of shares purchased (usd per share) | $ / shares | $ 9.15 | $ 26.88 | ||
Unearned stock-based compensation, expected recognition period | 2 years 7 months 3 days | |||
RSUs [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares granted (shares) | shares | 7,354,000 | 2,170,000 | ||
Weighted average price of shares granted (usd per share) | $ / shares | $ 12.10 | $ 44 | ||
RSUs [Member] | Chief Executive Officer (CEO) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares granted (shares) | shares | 4,500,000 | |||
RSUs [Member] | Vested Immediately [Member] | Chief Executive Officer (CEO) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares granted (shares) | shares | 1,500,000 | |||
Allocated share-based compensation expense | $ | $ 6,400 | $ 29,400 | $ 38,300 | |
RSUs [Member] | Share-based Compensation Award, Tranche Two [Member] | Chief Executive Officer (CEO) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares granted (shares) | shares | 3,000,000 | |||
Employee Stock Purchase Plan Shares [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Purchase price of common stock as percentage of fair value of Company common stock (percent) | 85.00% | |||
Weighted average price of shares granted (usd per share) | $ / shares | $ 3.99 | $ 15.76 | $ 7.16 | |
Stock Options, ESPP and Restricted Stock Units (RSUs) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unearned stock-based compensation costs | $ | $ 116,300 | |||
2014 Equity Incentive Plans [Member] | Stock Options [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expiration period | 10 years | |||
Award vesting period | 4 years | |||
2014 Equity Incentive Plans [Member] | RSUs [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period | 4 years |
Employee benefit plans - Stock
Employee benefit plans - Stock Option Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Shares (in thousands) | ||
Outstanding at beginning of period (shares) | 13,081 | |
Granted (shares) | 2,573 | |
Exercised (shares) | (1,733) | |
Forfeited/Cancelled (shares) | (1,542) | |
Outstanding at end of period (shares) | 12,379 | 13,081 |
Weighted- average exercise price | ||
Outstanding at beginning of period (in dollars per share) | $ 11.82 | |
Granted (usd per share) | 11.27 | |
Exercised (usd per share) | 2.05 | |
Forfeited/Cancelled (usd per share) | 19.07 | |
Outstanding at end of period (in dollars per share) | $ 12.17 | $ 11.82 |
Weighted- average remaining contractual term (in years) | 5 years 11 months 19 days | 6 years 8 months 12 days |
Aggregate intrinsic value (in thousands) | $ 32,772 | $ 108,846 |
Vested and expected to vest (shares) | 12,245 | |
Vested and expected to vest - Weighted average exercise price (in dollars per share) | $ 12.12 | |
Vested and expected to vest - Weighted average remaining contractual term | 5 years 11 months 12 days | |
Vested and expected to vest - Aggregate intrinsic value | $ 32,772 | |
Exercisable (shares) | 8,952 | |
Exercisable - Weighted average exercise price (in dollars per share) | $ 10.37 | |
Exercisable - Weighted-average remaining contractual term | 5 years 4 months 10 days | |
Exercisable - Aggregate intrinsic value | $ 32,771 |
Employee benefit plans - Restri
Employee benefit plans - Restricted Stock Units Activity (Details) - RSUs [Member] - $ / shares shares in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Shares (in thousands) | ||
Non-vested shares at beginning of period (shares) | 4,638 | 4,307 |
Granted (shares) | 7,354 | 2,170 |
Vested (shares) | (2,075) | (1,735) |
Forfeited (shares) | (1,947) | (104) |
Non-vested shares at end of period (shares) | 7,970 | 4,638 |
Weighted- average grant date fair value | ||
Non-vested shares at beginning of period (in dollars per share) | $ 32.15 | $ 21.98 |
Weighted average price of shares granted (usd per share) | 12.10 | 44 |
Weighted average price of shares vested (usd per share) | 23.87 | 19.84 |
Weighted average price of shares forfeited (usd per share) | 22.85 | 63.47 |
Non-vested shares at end of period (in dollars per share) | $ 18.08 | $ 32.15 |
Employee benefit plans - Fair V
Employee benefit plans - Fair Value Assumptions for Stock Options (Details) - Employee Stock Option [Member] | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate, minimum | 1.20% | 1.60% | 1.70% |
Risk-free interest rate, maximum | 2.00% | 2.00% | 2.00% |
Dividend yield | 0.00% | 0.00% | 0.00% |
Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Volatility | 44.00% | 43.00% | 54.00% |
Expected term (years) | 5 years 2 months 12 days | 5 years 6 months | 5 years 3 months 18 days |
Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Volatility | 45.00% | 54.00% | 56.00% |
Expected term (years) | 6 years 1 month 6 days | 7 years | 6 years 3 months 18 days |
Employee benefit plans - Fair48
Employee benefit plans - Fair Value Assumptions for Restricted Stock Units and ESPP (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Employee Stock Purchase Plan Shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Volatility | 46.00% | ||
Expected term (years) | 6 months | 6 months | 7 months 6 days |
Risk-free interest rate, minimum | 0.40% | 0.10% | 1.00% |
Risk-free interest rate, maximum | 0.50% | 0.20% | |
Dividend yield | 0.00% | 0.00% | 0.00% |
Employee Stock Purchase Plan Shares [Member] | Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Volatility | 43.00% | 39.00% | |
Employee Stock Purchase Plan Shares [Member] | Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Volatility | 54.00% | 45.00% | |
Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Volatility | 50.90% | ||
Expected term (years) | 10 years | ||
Risk-free interest rate, minimum | 2.69% | ||
Grant date fair value (usd per share) | $ 18.40 |
Employee benefit plans - Alloca
Employee benefit plans - Allocation of Stock-based Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock-based compensation expense | $ 69,527 | $ 80,680 | $ 71,399 |
Total tax benefit recognized | 0 | (28,000) | (19,500) |
Cost of Revenue [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock-based compensation expense | 1,616 | 1,492 | 835 |
Research and Development [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock-based compensation expense | 31,365 | 18,024 | 11,640 |
Selling and Marketing [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock-based compensation expense | 13,883 | 13,762 | 10,428 |
General and Administrative [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock-based compensation expense | $ 22,663 | $ 47,402 | $ 48,496 |
Net income (loss) per share - B
Net income (loss) per share - Basic and Diluted Net Income per Share Attributable to Common Stockholders (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Numerator: | |||
Net income (loss) | $ (419,003) | $ 36,131 | $ 128,088 |
Less: net income allocable to participating securities | 0 | 0 | 16,512 |
Net income (loss) attributable to common stockholders—basic | (419,003) | 36,131 | 111,576 |
Add: net income allocable to dilutive participating securities | 0 | 0 | 2,277 |
Net income (loss) attributable to common stockholders—diluted | $ (419,003) | $ 36,131 | $ 113,853 |
Denominator: | |||
Weighted-average common shares—basic for Class A and Class B common stock (shares) | 139,425 | 134,595 | 104,453 |
Effect of potentially dilutive shares (shares) | 0 | 11,891 | 19,177 |
Weighted-average common shares—diluted for Class A and Class B common stock (shares) | 139,425 | 146,486 | 123,630 |
Net income per share attributable to common stockholders - Basic (in dollars per share) | $ (3.01) | $ 0.27 | $ 1.07 |
Net income per share attributable to common stockholders - Diluted (in dollars per share) | $ (3.01) | $ 0.25 | $ 0.92 |
Net income (loss) per share - A
Net income (loss) per share - Antidilutive Securities Excluded from Computation of Net Income per Share (Details) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Earnings Per Share [Abstract] | |||
Antidilutive securities excluded from computation of earnings per share (shares) | 21,000 | 2,681 | 15,921 |
Income taxes - Income Before In
Income taxes - Income Before Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ (200,595) | $ 13,562 | $ 114,937 |
Foreign | (174,579) | 39,023 | 66,038 |
Income (loss) before income taxes | $ (375,174) | $ 52,585 | $ 180,975 |
Income taxes - Income Tax Expen
Income taxes - Income Tax Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Current: | |||
Federal | $ (2,925) | $ 18,548 | $ 55,846 |
State | (356) | 3,007 | 6,075 |
Foreign | 8,542 | 6,539 | 8,219 |
Total current | 5,261 | 28,094 | 70,140 |
Deferred: | |||
Federal | 37,573 | (11,211) | (13,551) |
State | 4,436 | (204) | (3,369) |
Foreign | (3,441) | (225) | (333) |
Total deferred | 38,568 | (11,640) | (17,253) |
Income tax expense | $ 43,829 | $ 16,454 | $ 52,887 |
Income taxes - Reconciliation t
Income taxes - Reconciliation to Federal Statutory Rate (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Amount [Abstract] | |||
Tax at federal statutory rate | $ (131,311) | $ 18,405 | $ 63,341 |
Change in valuation allowance | 101,878 | 8,555 | 0 |
Impact of foreign operations | 84,491 | 6,434 | (13,305) |
Stock-based compensation | 15,718 | 2,390 | 8,050 |
State taxes, net of federal benefit | (14,195) | 1,454 | 4,911 |
Tax credits | (12,992) | (21,891) | (10,616) |
Other | 240 | 1,107 | 506 |
Income tax expense | $ 43,829 | $ 16,454 | $ 52,887 |
Percent [Abstract] | |||
Tax at federal statutory rate | (35.00%) | 35.00% | 35.00% |
Change in valuation allowance | 27.20% | 16.30% | 0.00% |
Impact of foreign operations | 22.50% | 12.20% | (7.40%) |
Impact of foreign operations | 4.20% | 4.50% | 4.40% |
State taxes, net of federal benefit | (3.80%) | 2.80% | 2.70% |
Tax credits | (3.50%) | (41.60%) | (5.90%) |
Other | 0.10% | 2.10% | 0.40% |
Income tax provision at effective tax rate | 11.70% | 31.30% | 29.20% |
Income taxes - Deferred Tax Ass
Income taxes - Deferred Tax Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Deferred tax assets: | ||
Net operating loss carryforwards | $ 30,193 | $ 339 |
Tax credit carryforwards | 22,341 | 9,372 |
Stock-based compensation | 26,656 | 19,096 |
Allowance for returns | 6,336 | 8,812 |
Accruals and reserves | 26,587 | 20,398 |
Total deferred tax assets | 112,113 | 58,017 |
Valuation allowance | (110,433) | (8,555) |
Total deferred tax assets, net of valuation allowance | 1,680 | 49,462 |
Deferred tax liabilities: | ||
Depreciation and amortization | (1,714) | (6,937) |
Intangible assets | (2,540) | (2,904) |
Total deferred tax liabilities | (4,254) | (9,841) |
Net deferred tax liability | $ (2,574) | |
Net deferred tax assets | $ 39,621 |
Income taxes - Unrecognized Inc
Income taxes - Unrecognized Income Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Reconciliation of Unrecognized Tax Benefits | |||
Unrecognized Tax Benefits, beginning balance | $ 36,273 | $ 16,558 | $ 9,898 |
Gross increase related to current year tax positions | 20,594 | 19,948 | 6,401 |
Gross increase related to prior year tax positions | 130 | 108 | 259 |
Gross decrease related to prior year tax positions | (88) | (341) | 0 |
Unrecognized Tax Benefits, ending balance | $ 56,909 | $ 36,273 | $ 16,558 |
Income taxes - Narrative (Detai
Income taxes - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Operating Loss Carryforwards [Line Items] | ||||
Earnings indefinitely reinvested outside the U.S. | $ 3,300 | |||
Tax at federal statutory rate | (35.00%) | 35.00% | 35.00% | |
Change in valuation allowance | $ 101,878 | $ 8,555 | $ 0 | |
Valuation allowance | 110,433 | 8,555 | ||
Operating loss carryforwards, federal | 467,200 | |||
Net operating loss carryforwards | 467,200 | |||
Net operating loss carryforward from acquisitions | 8,000 | |||
Operating loss carryforwards, subject to expiration | 1,700 | |||
Unrecognized tax benefits | 56,909 | 36,273 | 16,558 | $ 9,898 |
Unrecognized tax benefits that would impact effective tax rate | 24,100 | 31,000 | $ 16,600 | |
California | ||||
Operating Loss Carryforwards [Line Items] | ||||
Operating loss carryforwards, state | 201,500 | |||
States Other Than California | ||||
Operating Loss Carryforwards [Line Items] | ||||
Operating loss carryforwards, state | $ 207,300 | |||
Federal | ||||
Operating Loss Carryforwards [Line Items] | ||||
Tax credit carryforward | 32,500 | |||
State | ||||
Operating Loss Carryforwards [Line Items] | ||||
Tax credit carryforward | $ 27,900 |
Related party transactions (Det
Related party transactions (Details) | 1 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Jun. 30, 2014USD ($)Automobile | Sep. 30, 2015USD ($) | Dec. 31, 2016USD ($)Device | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Jun. 30, 2013USD ($) | |
Chief Executive Officer (CEO) [Member] | Related Party Transaction, Chartered Aircraft Expenses [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Expense for services rendered | $ 500,000 | $ 700,000 | $ 600,000 | ||||
Accounts payable to related party | 0 | 100,000 | |||||
Chief Executive Officer (CEO) [Member] | Related Party Transaction, Automobiles Purchased [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Number of automobiles purchased by related party | Automobile | 7 | ||||||
Revenue from related parties | $ 300,000 | ||||||
Immediate Family Member of Member of the Board [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Naming rights agreement, period | 3 years | ||||||
Payments to be made to related party for naming rights | $ 600,000 | ||||||
Aggregate payments to related party for naming rights | $ 600,000 | ||||||
Number of devices provided to related party at no cost | Device | 100 | ||||||
Company Affiliated with Investors [Member] | Related Party Transaction, Contract Manufacturing Agreement [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Expense for services rendered | $ 0 | ||||||
Accounts payable to related party | $ 0 | 0 | |||||
Payments to related party vendor | 0 | $ 200,000 | $ 12,200,000 | ||||
Director [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Expense for services rendered | 400,000 | ||||||
Accounts payable to related party | $ 300,000 | ||||||
Executive Officer [Member] | Related Party Transaction, Demand Payment Loan [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Loan amount to executive officer pursuant to demand loan payment | $ 200,000 |
Commitments, contingencies an59
Commitments, contingencies and guarantees - Narrative (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
May 31, 2016 | Jun. 30, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Long-term Purchase Commitment [Line Items] | |||||
Issuance of common stock upon public offerings, net of offering costs | $ 286,247,000 | ||||
Product warranty accrual, current | $ 11,456,000 | $ 10,400,000 | |||
Product warranty accrual, noncurrent | 500,000 | ||||
Red Bull [Member] | |||||
Long-term Purchase Commitment [Line Items] | |||||
Agreement term | 3 years 6 months | ||||
Facilities Lease [Member] | |||||
Long-term Purchase Commitment [Line Items] | |||||
Future minimum sublease rentals | 6,000,000 | ||||
Rent expense | $ 19,800,000 | $ 12,200,000 | $ 7,300,000 | ||
Restricted Stock [Member] | Common Class A [Member] | Red Bull [Member] | |||||
Long-term Purchase Commitment [Line Items] | |||||
Issuance of common stock upon public offerings, net of offering costs | $ 7,000,000 |
Commitments, contingencies an60
Commitments, contingencies and guarantees - Contractual Commitments (Details) $ in Thousands | Dec. 31, 2016USD ($) |
Operating Leases, Future Minimum Payments Due | |
Total | $ 139,511 |
2,017 | 16,972 |
2,018 | 20,345 |
2,019 | 13,896 |
2,020 | 17,157 |
2,021 | 16,770 |
Thereafter | 54,371 |
Other Commitments | |
Total | 39,189 |
2,017 | 11,744 |
2,018 | 14,723 |
2,019 | 12,722 |
2,020 | 0 |
2,021 | 0 |
Thereafter | 0 |
Contractual Obligation, Fiscal Year Maturity [Abstract] | |
Total | 193,200 |
2,017 | 36,165 |
2,018 | 39,202 |
2,019 | 29,535 |
2,020 | 17,157 |
2,021 | 16,770 |
Thereafter | 54,371 |
Sponsorship commitment [Member] | |
Other Commitments | |
Total | 14,500 |
2,017 | 7,449 |
2,018 | 4,134 |
2,019 | 2,917 |
2,020 | 0 |
2,021 | 0 |
Thereafter | $ 0 |
Commitments, contingencies an61
Commitments, contingencies and guarantees - Schedule of Product Warranty Liability Activity (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | |||
Beginning balances | $ 10,856 | $ 6,405 | $ 3,870 |
Settlements of warranty claims | (18,183) | (20,926) | (7,733) |
Charged to cost of revenue | 19,272 | 25,377 | 10,268 |
Ending balances | $ 11,945 | $ 10,856 | $ 6,405 |
Concentrations of risk and ge62
Concentrations of risk and geographic information - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Revenue, Major Customer [Line Items] | |||
Revenue | $ 1,185,481 | $ 1,619,971 | $ 1,394,205 |
United States [Member] | |||
Revenue, Major Customer [Line Items] | |||
Revenue | 554,900 | 769,200 | $ 796,000 |
Outside the United States [Member] | |||
Revenue, Major Customer [Line Items] | |||
Long-lived assets | $ 76,600 | $ 47,600 |
Concentrations of risk and ge63
Concentrations of risk and geographic information - Schedule of Customer Concentration by Risk Factor (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Concentration Risk [Line Items] | |||
Accounts receivable sold | $ 167,769 | $ 194,223 | $ 250,437 |
Factoring fees | $ 1,266 | $ 1,566 | $ 2,148 |
Customer Concentration Risk [Member] | Accounts Receivable [Member] | Customer A [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk | 15.00% | ||
Customer Concentration Risk [Member] | Accounts Receivable [Member] | Customer B [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk | 27.00% | 40.00% | |
Customer Concentration Risk [Member] | Accounts Receivable [Member] | Customer C [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk | 18.00% | ||
Customer Concentration Risk [Member] | Sales Revenue [Member] | Customer A [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk | 17.00% | 14.00% | 20.00% |
Customer Concentration Risk [Member] | Sales Revenue [Member] | Customer B [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk | 11.00% | 12.00% |
Concentrations of risk and ge64
Concentrations of risk and geographic information - Schedule of Revenue by Geographic Segment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Segment Reporting Information [Line Items] | |||
Revenue | $ 1,185,481 | $ 1,619,971 | $ 1,394,205 |
Americas [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenue | 619,784 | 868,772 | 890,352 |
Europe, Middle East and Africa [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenue | 366,352 | 535,260 | 371,197 |
Asia and Pacific Area Countries [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenue | $ 199,345 | $ 215,939 | $ 132,656 |
Restructuring charges (Details)
Restructuring charges (Details) - USD ($) $ in Thousands | Nov. 29, 2016 | Jan. 12, 2016 | Dec. 31, 2016 | Mar. 31, 2016 | Dec. 31, 2016 |
Restructuring Cost and Reserve [Line Items] | |||||
Expected percent of positions eliminated | 15.00% | 7.00% | |||
Expected cost | $ 40,000 | $ 40,000 | |||
Restructuring charges | 36,581 | $ 6,500 | $ 43,089 | ||
Employee Severance and Pay Related Costs [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | 18,893 | ||||
Non-cash Acceleration of Stock-based Compensation Expense [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | 15,566 | ||||
Non-cancelable Leases, Accelerated Depreciation and Other Charges [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | 2,122 | ||||
President [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | 11,400 | ||||
President [Member] | Non-cash Acceleration of Stock-based Compensation Expense [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | $ 8,800 |
Restructuring charges - Restruc
Restructuring charges - Restructuring Liability (Details) $ in Thousands | 3 Months Ended |
Dec. 31, 2016USD ($) | |
Restructuring Reserve [Roll Forward] | |
Restructuring liability as of October 1, 2016 | $ 0 |
Restructuring charges | 19,772 |
Cash paid | (8,440) |
Non-cash settlements | (793) |
Restructuring liability as of December 31, 2016 | 10,539 |
Employee Severance [Member] | |
Restructuring Reserve [Roll Forward] | |
Restructuring liability as of October 1, 2016 | 0 |
Restructuring charges | 18,893 |
Cash paid | (8,440) |
Non-cash settlements | (793) |
Restructuring liability as of December 31, 2016 | 9,660 |
Other Restructuring [Member] | |
Restructuring Reserve [Roll Forward] | |
Restructuring liability as of October 1, 2016 | 0 |
Restructuring charges | 879 |
Non-cash settlements | 0 |
Restructuring liability as of December 31, 2016 | $ 879 |
Restructuring charges - Restr67
Restructuring charges - Restructuring Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2016 | Mar. 31, 2016 | Dec. 31, 2016 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | $ 36,581 | $ 6,500 | $ 43,089 |
Accelerated depreciation, expected cost | 10,000 | 10,000 | |
Accelerated depreciation | 6,000 | ||
Accelerated depreciation, expected cost not yet recognized | $ 4,000 | $ 4,000 | |
Accelerated depreciation, expected cost, period for recognition | 8 months | ||
Cost of Revenue [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | $ 497 | ||
Research and Development [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 17,197 | ||
Sales and Marketing [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 12,064 | ||
General and Administrative [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | $ 13,331 |
Valuation and Qualifying Acco68
Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | $ 1,400 | ||
Balance at End of Year | 1,300 | $ 1,400 | |
Allowance for Doubtful Accounts Receivable [Member] | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | 1,400 | 1,250 | $ 520 |
Charges to Revenue | 0 | 0 | 0 |
Charges to Expense | 40 | 682 | 970 |
Deductions/Write-offs | (159) | (532) | (240) |
Balance at End of Year | 1,281 | 1,400 | 1,250 |
Allowance for Sales Returns [Member] | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | 26,280 | 25,747 | 14,352 |
Charges to Revenue | 35,136 | 48,182 | 39,011 |
Charges to Expense | (41,378) | (47,649) | (27,616) |
Deductions/Write-offs | 0 | 0 | 0 |
Balance at End of Year | 20,038 | 26,280 | 25,747 |
Valuation Allowance of Deferred Tax Assets [Member] | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | 8,555 | 0 | |
Charges to Revenue | 0 | 0 | |
Charges to Expense | 101,878 | 8,555 | |
Deductions/Write-offs | 0 | 0 | |
Balance at End of Year | $ 110,433 | $ 8,555 | $ 0 |