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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. |
Standard | Description | Date of adoption | Effect on the financial statements or other significant matters | |||
Standards that are not yet adopted | ||||||
ASU 2014-09, Revenue from Contracts with Customers (Topic 606) | This standard is based on principles that govern the recognition of revenue at an amount to which an entity expects to be entitled when products and services are transferred to customers. In August 2015, the FASB deferred the effective date by one year while providing the option to adopt the standard on the original effective date of January 1, 2017. The standard may be adopted either retrospectively to each prior reporting period presented or as a cumulative effect adjustment as of the date of adoption. | January 1, 2018 | The Company is currently evaluating the impact the adoption of this standard will have on its consolidated financial statements and related disclosures. | |||
ASU 2015-16, Business Combinations (Topic 805): Simplifying the Accounting for Measurement Period Adjustments | Under the updated guidance, the acquirer in a business combination is required to recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. This new standard will be applied prospectively to adjustments to provisional amounts that occur after the effective date of this update. | January 1, 2016 | The Company does not believe the adoption of this standard will have a material impact to its consolidated financial statements. | |||
Standards that were adopted | ||||||
ASU 2015-17, Income Taxes (Topic 740): Balance Sheet Classifications of Deferred Taxes | This standard requires that deferred tax liabilities and assets be classified as noncurrent in a classified statement of financial position. The new guidance becomes effective for the Company on January 1, 2017, with early adoption permitted. | December 31, 2015 | The Company early adopted this standard, prospectively. Adoption resulted in a $22.2 million reduction to current assets and a corresponding increase in other long-term assets at December 31, 2015. Prior periods were not adjusted. Adoption had no impact on the Company’s results of operations. |
|
December 31, | |||||||
(in thousands) | 2015 | 2014 | |||||
Components | $ | 9,476 | $ | 4,324 | |||
Finished goods | 178,756 | 148,702 | |||||
Total inventory | $ | 188,232 | $ | 153,026 |
December 31, | |||||||
(in thousands) | 2015 | 2014 | |||||
Prepaid expenses | $ | 6,132 | $ | 3,905 | |||
Prepaid income taxes | 4,696 | 26,504 | |||||
Tenant allowance receivable | 4,249 | — | |||||
Prepaid licenses | 2,818 | 2,053 | |||||
Current deferred tax assets | — | 24,218 | |||||
Other current assets | 7,366 | 7,089 | |||||
Prepaid expenses and other current assets | $ | 25,261 | $ | 63,769 |
(dollars in thousands) | Useful life (in years) | December 31, 2015 | December 31, 2014 | ||||||
Leasehold improvements | 3–10 | $ | 40,841 | $ | 22,787 | ||||
Production, engineering and other equipment | 4 | 25,174 | 8,755 | ||||||
Tooling | 1–2 | 19,537 | 16,159 | ||||||
Computers and software | 2 | 14,581 | 9,731 | ||||||
Furniture and office equipment | 3 | 11,389 | 6,150 | ||||||
Construction in progress | 4,632 | 3,944 | |||||||
Tradeshow equipment and other | 2-5 | 4,136 | 3,830 | ||||||
Gross property and equipment | 120,290 | 71,356 | |||||||
Less: Accumulated depreciation and amortization | (50,240 | ) | (29,800) | ||||||
Property and equipment, net | $ | 70,050 | $ | 41,556 |
(in thousands) | Estimated useful life (in years) | Fair value | |||
Purchased technology | 4 - 6 years | $ | 25,676 | ||
In-process research and development (IPR&D) | 6,600 | ||||
Net liabilities assumed | (353 | ) | |||
Deferred income tax liabilities | (4,676 | ) | |||
Net assets acquired | 27,247 | ||||
Goodwill | 43,000 | ||||
Total fair value consideration | $ | 70,247 |
December 31, 2015 | |||||||||||
(in thousands) | Gross carrying value | Accumulated amortization | Net carrying value | ||||||||
Purchased technology and other amortizable assets | $ | 32,952 | $ | (8,540 | ) | $ | 24,412 | ||||
IPR&D and other non-amortizable assets | 6,615 | — | 6,615 | ||||||||
Total intangible assets | $ | 39,567 | $ | (8,540 | ) | $ | 31,027 |
December 31, 2014 | |||||||||||
(in thousands) | Gross carrying value | Accumulated amortization | Net carrying value | ||||||||
Purchased technology and other amortizable assets | $ | 7,275 | $ | (4,353 | ) | $ | 2,922 | ||||
Other non-amortizable assets | 15 | — | 15 | ||||||||
Total intangible assets | $ | 7,290 | $ | (4,353 | ) | $ | 2,937 |
(in thousands) | Total | |||
Year ending December 31, | ||||
2016 | $ | 5,956 | ||
2017 | 5,172 | |||
2018 | 4,780 | |||
2019 | 4,269 | |||
2020 | 3,365 | |||
Thereafter | 870 | |||
$ | 24,412 |
December 31, | |||||||
(in thousands) | 2015 | 2014 | |||||
POP displays | $ | 27,989 | $ | 18,743 | |||
Long-term deferred tax assets | 41,936 | 8,611 | |||||
Income tax receivable | 33,206 | — | |||||
Deposits and other | 8,430 | 8,706 | |||||
Other long-term assets | $ | 111,561 | $ | 36,060 |
December 31, | |||||||
(in thousands) | 2015 | 2014 | |||||
Accrued payables | $ | 64,831 | $ | 56,617 | |||
Excess purchase order commitments | 38,477 | 447 | |||||
Accrued sales incentive | 29,298 | 9,635 | |||||
Employee related liabilities | 26,491 | 28,959 | |||||
Warranty liability | 10,400 | 6,025 | |||||
Customer deposits | 8,877 | 4,903 | |||||
Income taxes payable | 7,536 | 2,732 | |||||
Other | 6,536 | 9,189 | |||||
Accrued liabilities | $ | 192,446 | $ | 118,507 |
|
December 31, 2015 | December 31, 2014 | |||||||||||||||||||||||
(in thousands) | Level 1 | Level 2 | Total | Level 1 | Level 2 | Total | ||||||||||||||||||
Cash equivalents (1): | ||||||||||||||||||||||||
Money market funds | $ | 51,059 | $ | — | $ | 51,059 | $ | 80,968 | $ | — | $ | 80,968 | ||||||||||||
Corporate debt securities | — | — | — | — | 2,000 | 2,000 | ||||||||||||||||||
Total cash equivalents | $ | 51,059 | $ | — | $ | 51,059 | $ | 80,968 | $ | 2,000 | $ | 82,968 | ||||||||||||
Marketable securities: | ||||||||||||||||||||||||
U.S. treasury securities | $ | — | $ | — | $ | — | $ | 1,994 | $ | — | $ | 1,994 | ||||||||||||
U.S. agency securities | — | 14,451 | 14,451 | — | 7,020 | 7,020 | ||||||||||||||||||
Commercial paper | — | 2,197 | 2,197 | — | 2,497 | 2,497 | ||||||||||||||||||
Corporate debt securities | — | 165,825 | 165,825 | — | 90,816 | 90,816 | ||||||||||||||||||
Municipal securities | — | 11,913 | 11,913 | — | — | — | ||||||||||||||||||
Total marketable securities | $ | — | $ | 194,386 | $ | 194,386 | $ | 1,994 | $ | 100,333 | $ | 102,327 |
December 31, | ||||||||
(in thousands) | 2015 | 2014 | ||||||
Less than one year | $ | 122,199 | $ | 58,764 | ||||
Greater than one year but less than two years | 72,187 | 43,563 | ||||||
Total | $ | 194,386 | $ | 102,327 |
|
(in thousands) | December 31, 2015 | |
Stock options outstanding | 13,081 | |
Restricted stock units outstanding | 4,638 | |
Common stock available for future grants | 20,084 | |
Total common stock shares reserved for issuance | 37,803 |
|
Options outstanding | ||||||||||||
(shares in thousands) | Shares | Weighted- average exercise price | Weighted- average remaining contractual term (in years) | Aggregate intrinsic value (in thousands) | ||||||||
Outstanding at December 31, 2014: | 25,134 | $ | 6.62 | 7.09 | $ | 1,425,339 | ||||||
Granted | 792 | 39.66 | ||||||||||
Exercised | (12,375 | ) | 2.01 | |||||||||
Forfeited/Cancelled | (470 | ) | 38.84 | |||||||||
Outstanding at December 31, 2015: | 13,081 | $ | 11.82 | 6.70 | $ | 108,846 | ||||||
Exercisable at December 31, 2015 | 8,449 | $ | 6.19 | 5.89 | $ | 103,696 | ||||||
Vested and expected to vest at December 31, 2015 | 12,858 | $ | 11.62 | 6.67 | $ | 108,681 |
Shares (in thousands) | Weighted- average grant date fair value | Aggregate intrinsic value (in thousands) | ||||||||
Non-vested shares at December 31, 2014 | 17 | $ | 6.30 | $ | 1,017 | |||||
Vested | (17) | |||||||||
Non-vested shares at December 31, 2015 | — |
(shares in thousands) | Shares | Weighted- average grant date fair value | ||||
Non-vested shares at December 31, 2013 | 270 | $ | 1.52 | |||
Granted | 5,573 | 22.01 | ||||
Vested | (1,533 | ) | 18.42 | |||
Forfeited | (3 | ) | 57.73 | |||
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 |
Year ended December 31, | |||||
2015 | 2014 | 2013 | |||
Volatility | 43%–54% | 54%–56% | 56%–60% | ||
Expected term (years) | 5.5–7.0 | 5.3–6.3 | 5.3–6.1 | ||
Risk-free interest rate | 1.6%–2.0% | 1.7%–2.0% | 0.8%–2.4% | ||
Dividend yield | —% | —% | —% |
Year ended December 31, | |||
2015 | 2014 | ||
Volatility | 39%–45% | 45.5% | |
Expected term (years) | 0.5 | 0.6 | |
Risk-free interest rate | 0.1%–0.2% | 0.1% | |
Dividend yield | —% | —% |
Year ended December 31, | |||||||||||
(in thousands) | 2015 | 2014 | 2013 | ||||||||
Cost of revenue | $ | 1,492 | $ | 835 | $ | 690 | |||||
Research and development | 18,024 | 11,640 | 3,003 | ||||||||
Sales and marketing | 13,762 | 10,428 | 5,670 | ||||||||
General and administrative | 47,402 | 48,496 | 1,524 | ||||||||
Total stock-based compensation expense, before income taxes | 80,680 | 71,399 | 10,887 | ||||||||
Total tax benefit recognized | (27,971 | ) | (19,471 | ) | (1,104 | ) | |||||
Total stock-based compensation expense, net of income taxes | $ | 52,709 | $ | 51,928 | $ | 9,783 |
|
Year ended December 31, | |||||||||||
(in thousands) | 2015 | 2014 | 2013 | ||||||||
Domestic | $ | 13,562 | $ | 114,937 | $ | 57,251 | |||||
Foreign | 39,023 | 66,038 | 34,078 | ||||||||
$ | 52,585 | $ | 180,975 | $ | 91,329 |
Year ended December 31, | |||||||||||
(in thousands) | 2015 | 2014 | 2013 | ||||||||
Current: | |||||||||||
Federal | $ | 18,548 | $ | 55,846 | $ | 28,856 | |||||
State | 3,007 | 6,075 | 1,634 | ||||||||
Foreign | 6,539 | 8,219 | 8,058 | ||||||||
Total current | 28,094 | 70,140 | 38,548 | ||||||||
Deferred: | |||||||||||
Federal | (11,211 | ) | (13,551 | ) | (7,268) | ||||||
State | (204 | ) | (3,369 | ) | (861) | ||||||
Foreign | (225 | ) | (333 | ) | 332 | ||||||
Total deferred | (11,640 | ) | (17,253 | ) | (7,797) | ||||||
Income tax expense | $ | 16,454 | $ | 52,887 | $ | 30,751 |
Year ended December 31, | ||||||||||||||||||||
2015 | 2014 | 2013 | ||||||||||||||||||
(in thousands, except percentage) | $ | % | $ | % | $ | % | ||||||||||||||
Reconciliation to statutory rate: | ||||||||||||||||||||
Tax at federal statutory rate | $ | 18,405 | 35.0 | % | $ | 63,341 | 35.0 | % | $ | 31,965 | 35.0 | % | ||||||||
State taxes, net of federal benefit | 1,454 | 2.8 | 4,911 | 2.7 | 2,344 | 2.6 | ||||||||||||||
Impact of foreign operations | 6,434 | 12.2 | (13,305 | ) | (7.4 | ) | (113 | ) | (0.1 | ) | ||||||||||
Stock-based compensation | 2,390 | 4.5 | 8,050 | 4.4 | 2,982 | 3.3 | ||||||||||||||
Tax credits | (21,891 | ) | (41.6 | ) | (10,616 | ) | (5.9 | ) | (5,637 | ) | (6.2 | ) | ||||||||
Change in valuation allowance | 8,555 | 16.3 | — | — | — | — | ||||||||||||||
Other | 1,107 | 2.1 | 506 | 0.4 | (790 | ) | (0.9 | ) | ||||||||||||
$ | 16,454 | 31.3 | % | $ | 52,887 | 29.2 | % | $ | 30,751 | 33.7 | % |
December 31, | |||||||
(in thousands) | 2015 | 2014 | |||||
Deferred tax assets: | |||||||
Net operating loss carryforwards | $ | 339 | $ | — | |||
Tax credit carryforwards | 9,372 | 2,347 | |||||
Stock-based compensation | 19,096 | 9,950 | |||||
Allowance for returns | 8,812 | 9,466 | |||||
Accruals and reserves | 20,398 | 14,484 | |||||
Total deferred tax assets | 58,017 | 36,247 | |||||
Valuation allowance | (8,555 | ) | — | ||||
Total deferred tax assets, net of valuation allowance | 49,462 | 36,247 | |||||
Deferred tax liabilities: | |||||||
Depreciation and amortization | (6,937 | ) | (3,418 | ) | |||
Intangible assets | (2,904 | ) | — | ||||
Total deferred tax liabilities | (9,841 | ) | (3,418 | ) | |||
Net deferred tax assets | $ | 39,621 | $ | 32,829 |
December 31, | |||||||||||
(in thousands) | 2015 | 2014 | 2013 | ||||||||
Gross balance at January 1 | $ | 16,558 | $ | 9,898 | $ | 4,439 | |||||
Gross increase related to current year tax positions | 19,948 | 6,401 | 5,280 | ||||||||
Gross increase related to prior year tax positions | 108 | 259 | 179 | ||||||||
Gross decrease related to prior year tax positions | (341) | — | 0 | ||||||||
$ | 36,273 | $ | 16,558 | $ | 9,898 |
|
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(in thousands) | Total | 2016 | 2017 | 2018 | 2019 | 2020 | Thereafter | ||||||||||||||||||||
Operating leases(1) | $ | 152,237 | $ | 16,597 | $ | 15,783 | $ | 19,582 | $ | 13,151 | $ | 16,602 | $ | 70,522 | |||||||||||||
Sponsorship commitments(2) | 19,186 | 9,889 | 3,986 | 2,591 | 2,720 | — | — | ||||||||||||||||||||
Other contractual commitments(3) | 4,574 | 3,153 | 1,421 | — | — | — | — | ||||||||||||||||||||
Capital equipment purchase commitments(4) | 5,086 | 5,086 | — | — | — | — | — | ||||||||||||||||||||
Total contractual cash obligations | $ | 181,083 | $ | 34,725 | $ | 21,190 | $ | 22,173 | $ | 15,871 | $ | 16,602 | $ | 70,522 |
(1) | The Company leases its facilities under long-term operating leases, which expire at various dates through 2027. |
(2) | The Company sponsors events, resorts and athletes as part of its marketing efforts. In many cases, the Company enters into multi-year agreements with event organizers, resorts and athletes. |
(3) | The Company purchases software licenses related to its financial and IT systems which require payments over multiple years. |
(4) | The Company enters into contracts to acquire equipment for tooling and molds as part of its manufacturing operations. In addition, the Company incurs purchase commitments related to the manufacturing of its point-of-purchase (POP) displays by third parties. |
Year ended December 31, | |||||||||||
(in thousands) | 2015 | 2014 | 2013 | ||||||||
Beginning balances | $ | 6,405 | $ | 3,870 | $ | 1,937 | |||||
Charged to cost of revenue | 25,377 | 10,268 | 7,380 | ||||||||
Settlements of warranty claims | (20,926 | ) | (7,733 | ) | (5,447) | ||||||
Ending balances | $ | 10,856 | $ | 6,405 | $ | 3,870 |
|
December 31, 2015 | December 31, 2014 | ||
Customer A | 40% | 17% | |
Customer B | 18% | 11% | |
Customer C | * | 14% |
Year ended December 31, | |||||||||||
(in thousands) | 2015 | 2014 | 2013 | ||||||||
Accounts receivable sold | $ | 194,223 | $ | 250,437 | $ | 71,066 | |||||
Factoring fees | 1,566 | 2,148 | 591 |
Year ended December 31, | |||||
2015 | 2014 | 2013 | |||
Customer D | 14% | 20% | 17% | ||
Customer A | 12% | * | * |
Year ended December 31, | |||||||||||
(in thousands) | 2015 | 2014 | 2013 | ||||||||
Americas | $ | 868,772 | $ | 890,352 | $ | 557,285 | |||||
Europe, Middle East and Africa (EMEA) | 535,260 | 371,197 | 322,226 | ||||||||
Asia and Pacific area countries (APAC) | 215,939 | 132,656 | 106,226 | ||||||||
$ | 1,619,971 | $ | 1,394,205 | $ | 985,737 |
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(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, 2015 | $ | 1,250 | $ | — | $ | 682 | $ | (532 | ) | $ | 1,400 | ||||||||
Year ended December 31, 2014 | 520 | — | 970 | (240 | ) | 1,250 | |||||||||||||
Year ended December 31, 2013 | 262 | — | 663 | (405 | ) | 520 | |||||||||||||
Allowance for sales returns: | |||||||||||||||||||
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 | |||||||||||||
Year ended December 31, 2013 | 9,077 | 24,156 | (18,881 | ) | — | 14,352 | |||||||||||||
Valuation allowance for deferred tax assets: | |||||||||||||||||||
Year ended December 31, 2015 | $ | — | $ | — | $ | 8,555 | $ | — | $ | 8,555 |
|
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. |
Standard | Description | Date of adoption | Effect on the financial statements or other significant matters | |||
Standards that are not yet adopted | ||||||
ASU 2014-09, Revenue from Contracts with Customers (Topic 606) | This standard is based on principles that govern the recognition of revenue at an amount to which an entity expects to be entitled when products and services are transferred to customers. In August 2015, the FASB deferred the effective date by one year while providing the option to adopt the standard on the original effective date of January 1, 2017. The standard may be adopted either retrospectively to each prior reporting period presented or as a cumulative effect adjustment as of the date of adoption. | January 1, 2018 | The Company is currently evaluating the impact the adoption of this standard will have on its consolidated financial statements and related disclosures. | |||
ASU 2015-16, Business Combinations (Topic 805): Simplifying the Accounting for Measurement Period Adjustments | Under the updated guidance, the acquirer in a business combination is required to recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. This new standard will be applied prospectively to adjustments to provisional amounts that occur after the effective date of this update. | January 1, 2016 | The Company does not believe the adoption of this standard will have a material impact to its consolidated financial statements. | |||
Standards that were adopted | ||||||
ASU 2015-17, Income Taxes (Topic 740): Balance Sheet Classifications of Deferred Taxes | This standard requires that deferred tax liabilities and assets be classified as noncurrent in a classified statement of financial position. The new guidance becomes effective for the Company on January 1, 2017, with early adoption permitted. | December 31, 2015 | The Company early adopted this standard, prospectively. Adoption resulted in a $22.2 million reduction to current assets and a corresponding increase in other long-term assets at December 31, 2015. Prior periods were not adjusted. Adoption had no impact on the Company’s results of operations. |
|
December 31, | |||||||
(in thousands) | 2015 | 2014 | |||||
Components | $ | 9,476 | $ | 4,324 | |||
Finished goods | 178,756 | 148,702 | |||||
Total inventory | $ | 188,232 | $ | 153,026 |
December 31, | |||||||
(in thousands) | 2015 | 2014 | |||||
Prepaid expenses | $ | 6,132 | $ | 3,905 | |||
Prepaid income taxes | 4,696 | 26,504 | |||||
Tenant allowance receivable | 4,249 | — | |||||
Prepaid licenses | 2,818 | 2,053 | |||||
Current deferred tax assets | — | 24,218 | |||||
Other current assets | 7,366 | 7,089 | |||||
Prepaid expenses and other current assets | $ | 25,261 | $ | 63,769 |
(dollars in thousands) | Useful life (in years) | December 31, 2015 | December 31, 2014 | ||||||
Leasehold improvements | 3–10 | $ | 40,841 | $ | 22,787 | ||||
Production, engineering and other equipment | 4 | 25,174 | 8,755 | ||||||
Tooling | 1–2 | 19,537 | 16,159 | ||||||
Computers and software | 2 | 14,581 | 9,731 | ||||||
Furniture and office equipment | 3 | 11,389 | 6,150 | ||||||
Construction in progress | 4,632 | 3,944 | |||||||
Tradeshow equipment and other | 2-5 | 4,136 | 3,830 | ||||||
Gross property and equipment | 120,290 | 71,356 | |||||||
Less: Accumulated depreciation and amortization | (50,240 | ) | (29,800) | ||||||
Property and equipment, net | $ | 70,050 | $ | 41,556 |
(in thousands) | Estimated useful life (in years) | Fair value | |||
Purchased technology | 4 - 6 years | $ | 25,676 | ||
In-process research and development (IPR&D) | 6,600 | ||||
Net liabilities assumed | (353 | ) | |||
Deferred income tax liabilities | (4,676 | ) | |||
Net assets acquired | 27,247 | ||||
Goodwill | 43,000 | ||||
Total fair value consideration | $ | 70,247 |
December 31, 2015 | |||||||||||
(in thousands) | Gross carrying value | Accumulated amortization | Net carrying value | ||||||||
Purchased technology and other amortizable assets | $ | 32,952 | $ | (8,540 | ) | $ | 24,412 | ||||
IPR&D and other non-amortizable assets | 6,615 | — | 6,615 | ||||||||
Total intangible assets | $ | 39,567 | $ | (8,540 | ) | $ | 31,027 |
December 31, 2014 | |||||||||||
(in thousands) | Gross carrying value | Accumulated amortization | Net carrying value | ||||||||
Purchased technology and other amortizable assets | $ | 7,275 | $ | (4,353 | ) | $ | 2,922 | ||||
Other non-amortizable assets | 15 | — | 15 | ||||||||
Total intangible assets | $ | 7,290 | $ | (4,353 | ) | $ | 2,937 |
(in thousands) | Total | |||
Year ending December 31, | ||||
2016 | $ | 5,956 | ||
2017 | 5,172 | |||
2018 | 4,780 | |||
2019 | 4,269 | |||
2020 | 3,365 | |||
Thereafter | 870 | |||
$ | 24,412 |
December 31, | |||||||
(in thousands) | 2015 | 2014 | |||||
POP displays | $ | 27,989 | $ | 18,743 | |||
Long-term deferred tax assets | 41,936 | 8,611 | |||||
Income tax receivable | 33,206 | — | |||||
Deposits and other | 8,430 | 8,706 | |||||
Other long-term assets | $ | 111,561 | $ | 36,060 |
December 31, | |||||||
(in thousands) | 2015 | 2014 | |||||
Accrued payables | $ | 64,831 | $ | 56,617 | |||
Excess purchase order commitments | 38,477 | 447 | |||||
Accrued sales incentive | 29,298 | 9,635 | |||||
Employee related liabilities | 26,491 | 28,959 | |||||
Warranty liability | 10,400 | 6,025 | |||||
Customer deposits | 8,877 | 4,903 | |||||
Income taxes payable | 7,536 | 2,732 | |||||
Other | 6,536 | 9,189 | |||||
Accrued liabilities | $ | 192,446 | $ | 118,507 |
|
December 31, 2015 | December 31, 2014 | |||||||||||||||||||||||
(in thousands) | Level 1 | Level 2 | Total | Level 1 | Level 2 | Total | ||||||||||||||||||
Cash equivalents (1): | ||||||||||||||||||||||||
Money market funds | $ | 51,059 | $ | — | $ | 51,059 | $ | 80,968 | $ | — | $ | 80,968 | ||||||||||||
Corporate debt securities | — | — | — | — | 2,000 | 2,000 | ||||||||||||||||||
Total cash equivalents | $ | 51,059 | $ | — | $ | 51,059 | $ | 80,968 | $ | 2,000 | $ | 82,968 | ||||||||||||
Marketable securities: | ||||||||||||||||||||||||
U.S. treasury securities | $ | — | $ | — | $ | — | $ | 1,994 | $ | — | $ | 1,994 | ||||||||||||
U.S. agency securities | — | 14,451 | 14,451 | — | 7,020 | 7,020 | ||||||||||||||||||
Commercial paper | — | 2,197 | 2,197 | — | 2,497 | 2,497 | ||||||||||||||||||
Corporate debt securities | — | 165,825 | 165,825 | — | 90,816 | 90,816 | ||||||||||||||||||
Municipal securities | — | 11,913 | 11,913 | — | — | — | ||||||||||||||||||
Total marketable securities | $ | — | $ | 194,386 | $ | 194,386 | $ | 1,994 | $ | 100,333 | $ | 102,327 |
December 31, | ||||||||
(in thousands) | 2015 | 2014 | ||||||
Less than one year | $ | 122,199 | $ | 58,764 | ||||
Greater than one year but less than two years | 72,187 | 43,563 | ||||||
Total | $ | 194,386 | $ | 102,327 |
|
(in thousands) | December 31, 2015 | |
Stock options outstanding | 13,081 | |
Restricted stock units outstanding | 4,638 | |
Common stock available for future grants | 20,084 | |
Total common stock shares reserved for issuance | 37,803 |
|
Options outstanding | ||||||||||||
(shares in thousands) | Shares | Weighted- average exercise price | Weighted- average remaining contractual term (in years) | Aggregate intrinsic value (in thousands) | ||||||||
Outstanding at December 31, 2014: | 25,134 | $ | 6.62 | 7.09 | $ | 1,425,339 | ||||||
Granted | 792 | 39.66 | ||||||||||
Exercised | (12,375 | ) | 2.01 | |||||||||
Forfeited/Cancelled | (470 | ) | 38.84 | |||||||||
Outstanding at December 31, 2015: | 13,081 | $ | 11.82 | 6.70 | $ | 108,846 | ||||||
Exercisable at December 31, 2015 | 8,449 | $ | 6.19 | 5.89 | $ | 103,696 | ||||||
Vested and expected to vest at December 31, 2015 | 12,858 | $ | 11.62 | 6.67 | $ | 108,681 |
Shares (in thousands) | Weighted- average grant date fair value | Aggregate intrinsic value (in thousands) | ||||||||
Non-vested shares at December 31, 2014 | 17 | $ | 6.30 | $ | 1,017 | |||||
Vested | (17) | |||||||||
Non-vested shares at December 31, 2015 | — |
(shares in thousands) | Shares | Weighted- average grant date fair value | ||||
Non-vested shares at December 31, 2013 | 270 | $ | 1.52 | |||
Granted | 5,573 | 22.01 | ||||
Vested | (1,533 | ) | 18.42 | |||
Forfeited | (3 | ) | 57.73 | |||
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 |
Year ended December 31, | |||||
2015 | 2014 | 2013 | |||
Volatility | 43%–54% | 54%–56% | 56%–60% | ||
Expected term (years) | 5.5–7.0 | 5.3–6.3 | 5.3–6.1 | ||
Risk-free interest rate | 1.6%–2.0% | 1.7%–2.0% | 0.8%–2.4% | ||
Dividend yield | —% | —% | —% |
Year ended December 31, | |||
2015 | 2014 | ||
Volatility | 39%–45% | 45.5% | |
Expected term (years) | 0.5 | 0.6 | |
Risk-free interest rate | 0.1%–0.2% | 0.1% | |
Dividend yield | —% | —% |
Year ended December 31, | |||||||||||
(in thousands) | 2015 | 2014 | 2013 | ||||||||
Cost of revenue | $ | 1,492 | $ | 835 | $ | 690 | |||||
Research and development | 18,024 | 11,640 | 3,003 | ||||||||
Sales and marketing | 13,762 | 10,428 | 5,670 | ||||||||
General and administrative | 47,402 | 48,496 | 1,524 | ||||||||
Total stock-based compensation expense, before income taxes | 80,680 | 71,399 | 10,887 | ||||||||
Total tax benefit recognized | (27,971 | ) | (19,471 | ) | (1,104 | ) | |||||
Total stock-based compensation expense, net of income taxes | $ | 52,709 | $ | 51,928 | $ | 9,783 |
|
Year ended December 31, | |||||||||||
(in thousands) | 2015 | 2014 | 2013 | ||||||||
Domestic | $ | 13,562 | $ | 114,937 | $ | 57,251 | |||||
Foreign | 39,023 | 66,038 | 34,078 | ||||||||
$ | 52,585 | $ | 180,975 | $ | 91,329 |
Year ended December 31, | |||||||||||
(in thousands) | 2015 | 2014 | 2013 | ||||||||
Current: | |||||||||||
Federal | $ | 18,548 | $ | 55,846 | $ | 28,856 | |||||
State | 3,007 | 6,075 | 1,634 | ||||||||
Foreign | 6,539 | 8,219 | 8,058 | ||||||||
Total current | 28,094 | 70,140 | 38,548 | ||||||||
Deferred: | |||||||||||
Federal | (11,211 | ) | (13,551 | ) | (7,268) | ||||||
State | (204 | ) | (3,369 | ) | (861) | ||||||
Foreign | (225 | ) | (333 | ) | 332 | ||||||
Total deferred | (11,640 | ) | (17,253 | ) | (7,797) | ||||||
Income tax expense | $ | 16,454 | $ | 52,887 | $ | 30,751 |
Year ended December 31, | ||||||||||||||||||||
2015 | 2014 | 2013 | ||||||||||||||||||
(in thousands, except percentage) | $ | % | $ | % | $ | % | ||||||||||||||
Reconciliation to statutory rate: | ||||||||||||||||||||
Tax at federal statutory rate | $ | 18,405 | 35.0 | % | $ | 63,341 | 35.0 | % | $ | 31,965 | 35.0 | % | ||||||||
State taxes, net of federal benefit | 1,454 | 2.8 | 4,911 | 2.7 | 2,344 | 2.6 | ||||||||||||||
Impact of foreign operations | 6,434 | 12.2 | (13,305 | ) | (7.4 | ) | (113 | ) | (0.1 | ) | ||||||||||
Stock-based compensation | 2,390 | 4.5 | 8,050 | 4.4 | 2,982 | 3.3 | ||||||||||||||
Tax credits | (21,891 | ) | (41.6 | ) | (10,616 | ) | (5.9 | ) | (5,637 | ) | (6.2 | ) | ||||||||
Change in valuation allowance | 8,555 | 16.3 | — | — | — | — | ||||||||||||||
Other | 1,107 | 2.1 | 506 | 0.4 | (790 | ) | (0.9 | ) | ||||||||||||
$ | 16,454 | 31.3 | % | $ | 52,887 | 29.2 | % | $ | 30,751 | 33.7 | % |
December 31, | |||||||
(in thousands) | 2015 | 2014 | |||||
Deferred tax assets: | |||||||
Net operating loss carryforwards | $ | 339 | $ | — | |||
Tax credit carryforwards | 9,372 | 2,347 | |||||
Stock-based compensation | 19,096 | 9,950 | |||||
Allowance for returns | 8,812 | 9,466 | |||||
Accruals and reserves | 20,398 | 14,484 | |||||
Total deferred tax assets | 58,017 | 36,247 | |||||
Valuation allowance | (8,555 | ) | — | ||||
Total deferred tax assets, net of valuation allowance | 49,462 | 36,247 | |||||
Deferred tax liabilities: | |||||||
Depreciation and amortization | (6,937 | ) | (3,418 | ) | |||
Intangible assets | (2,904 | ) | — | ||||
Total deferred tax liabilities | (9,841 | ) | (3,418 | ) | |||
Net deferred tax assets | $ | 39,621 | $ | 32,829 |
December 31, | |||||||||||
(in thousands) | 2015 | 2014 | 2013 | ||||||||
Gross balance at January 1 | $ | 16,558 | $ | 9,898 | $ | 4,439 | |||||
Gross increase related to current year tax positions | 19,948 | 6,401 | 5,280 | ||||||||
Gross increase related to prior year tax positions | 108 | 259 | 179 | ||||||||
Gross decrease related to prior year tax positions | (341) | — | 0 | ||||||||
$ | 36,273 | $ | 16,558 | $ | 9,898 |
|
(in thousands) | Total | 2016 | 2017 | 2018 | 2019 | 2020 | Thereafter | ||||||||||||||||||||
Operating leases(1) | $ | 152,237 | $ | 16,597 | $ | 15,783 | $ | 19,582 | $ | 13,151 | $ | 16,602 | $ | 70,522 | |||||||||||||
Sponsorship commitments(2) | 19,186 | 9,889 | 3,986 | 2,591 | 2,720 | — | — | ||||||||||||||||||||
Other contractual commitments(3) | 4,574 | 3,153 | 1,421 | — | — | — | — | ||||||||||||||||||||
Capital equipment purchase commitments(4) | 5,086 | 5,086 | — | — | — | — | — | ||||||||||||||||||||
Total contractual cash obligations | $ | 181,083 | $ | 34,725 | $ | 21,190 | $ | 22,173 | $ | 15,871 | $ | 16,602 | $ | 70,522 |
(1) | The Company leases its facilities under long-term operating leases, which expire at various dates through 2027. |
(2) | The Company sponsors events, resorts and athletes as part of its marketing efforts. In many cases, the Company enters into multi-year agreements with event organizers, resorts and athletes. |
(3) | The Company purchases software licenses related to its financial and IT systems which require payments over multiple years. |
(4) | The Company enters into contracts to acquire equipment for tooling and molds as part of its manufacturing operations. In addition, the Company incurs purchase commitments related to the manufacturing of its point-of-purchase (POP) displays by third parties. |
Year ended December 31, | |||||||||||
(in thousands) | 2015 | 2014 | 2013 | ||||||||
Beginning balances | $ | 6,405 | $ | 3,870 | $ | 1,937 | |||||
Charged to cost of revenue | 25,377 | 10,268 | 7,380 | ||||||||
Settlements of warranty claims | (20,926 | ) | (7,733 | ) | (5,447) | ||||||
Ending balances | $ | 10,856 | $ | 6,405 | $ | 3,870 |
|
Year ended December 31, | |||||||||||
(in thousands) | 2015 | 2014 | 2013 | ||||||||
Accounts receivable sold | $ | 194,223 | $ | 250,437 | $ | 71,066 | |||||
Factoring fees | 1,566 | 2,148 | 591 |
Year ended December 31, | |||||||||||
(in thousands) | 2015 | 2014 | 2013 | ||||||||
Americas | $ | 868,772 | $ | 890,352 | $ | 557,285 | |||||
Europe, Middle East and Africa (EMEA) | 535,260 | 371,197 | 322,226 | ||||||||
Asia and Pacific area countries (APAC) | 215,939 | 132,656 | 106,226 | ||||||||
$ | 1,619,971 | $ | 1,394,205 | $ | 985,737 |
December 31, 2015 | December 31, 2014 | ||
Customer A | 40% | 17% | |
Customer B | 18% | 11% | |
Customer C | * | 14% |
Year ended December 31, | |||||
2015 | 2014 | 2013 | |||
Customer D | 14% | 20% | 17% | ||
Customer A | 12% | * | * |
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