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(in thousands) | September 30, 2015 | December 31, 2014 | |||||
Components | $ | 14,478 | $ | 4,324 | |||
Finished goods | 275,043 | 148,702 | |||||
Total inventory | $ | 289,521 | $ | 153,026 |
(in thousands) | Useful life (in years) | September 30, 2015 | December 31, 2014 | ||||||
Leasehold improvements | 3–7 | $ | 24,050 | $ | 22,787 | ||||
Computers, software, equipment and furniture | 2–4 | 42,936 | 24,636 | ||||||
Tooling | 1–2 | 19,876 | 16,159 | ||||||
Construction in progress | 19,507 | 3,944 | |||||||
Tradeshow equipment and other | 2-5 | 4,016 | 3,830 | ||||||
Total | 110,385 | 71,356 | |||||||
Less: Accumulated depreciation and amortization | (42,741 | ) | (29,800) | ||||||
Property and equipment, net | $ | 67,644 | $ | 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 |
September 30, 2015 | December 31, 2014 | ||||||||||||||
(in thousands) | Gross carrying amount | Accumulated amortization | Net carrying value | Net carrying value | |||||||||||
Purchased technology and other amortizable assets | $ | 32,951 | $ | (7,019 | ) | $ | 25,932 | $ | 2,922 | ||||||
IPR&D and other non-amortizable assets | 6,615 | — | 6,615 | 15 | |||||||||||
Total intangible assets | $ | 39,566 | $ | (7,019 | ) | $ | 32,547 | $ | 2,937 |
(in thousands) | Total | |||
Year ending December 31, | ||||
Remainder of 2015 | $ | 1,521 | ||
2016 | 5,956 | |||
2017 | 5,172 | |||
2018 | 4,779 | |||
2019 | 4,269 | |||
Thereafter | 4,235 | |||
$ | 25,932 |
|
September 30, 2015 | December 31, 2014 | |||||||||||||||||||||||
(in thousands) | Level 1 | Level 2 | Total | Level 1 | Level 2 | Total | ||||||||||||||||||
Cash equivalents (1): | ||||||||||||||||||||||||
Money market funds | $ | 12,173 | $ | — | $ | 12,173 | $ | 80,968 | $ | — | $ | 80,968 | ||||||||||||
Corporate debt securities | — | 100 | 100 | — | 2,000 | 2,000 | ||||||||||||||||||
Total cash equivalents | $ | 12,173 | $ | 100 | $ | 12,273 | $ | 80,968 | $ | 2,000 | $ | 82,968 | ||||||||||||
Marketable securities: | ||||||||||||||||||||||||
U.S. treasury securities | $ | 3,014 | $ | — | $ | 3,014 | $ | 1,994 | $ | — | $ | 1,994 | ||||||||||||
U.S. agency securities | — | 19,565 | 19,565 | — | 7,020 | 7,020 | ||||||||||||||||||
Commercial paper | — | 997 | 997 | — | 2,497 | 2,497 | ||||||||||||||||||
Corporate debt securities | — | 197,554 | 197,554 | — | — | — | ||||||||||||||||||
Municipal securities | — | 12,003 | 12,003 | — | 90,816 | 90,816 | ||||||||||||||||||
Total marketable securities | $ | 3,014 | $ | 230,119 | $ | 233,133 | $ | 1,994 | $ | 100,333 | $ | 102,327 |
|
Options outstanding | |||||||||||
(shares in thousands) | Shares | Weighted- average exercise price | Aggregate intrinsic value (in thousands) | ||||||||
Outstanding at December 31, 2014: | 25,134 | $ | 6.62 | $ | 1,425,339 | ||||||
Granted | 527 | 47.37 | |||||||||
Exercised | (12,027 | ) | 1.97 | ||||||||
Forfeited/Cancelled | (249 | ) | 18.65 | ||||||||
Outstanding at September 30, 2015: | 13,385 | $ | 12.19 | $ | 276,067 | ||||||
Exercisable at September 30, 2015 | 8,258 | $ | 5.48 | $ | 214,083 | ||||||
Vested and expected to vest at September 30, 2015 | 13,127 | $ | 11.94 | $ | 273,232 |
(shares in thousands) | Shares | Weighted- average grant date fair value | ||||
Non-vested shares at December 31, 2014 | 4,307 | $ | 21.98 | |||
Granted | 1,525 | 52.93 | ||||
Vested | (1,372 | ) | 16.53 | |||
Forfeited | (52 | ) | 69.51 | |||
Non-vested shares at September 30, 2015 | 4,408 | $ | 33.82 |
Three months ended | Nine months ended | ||||||||||||||
(in thousands) | September 30, 2015 | September 30, 2014 | September 30, 2015 | September 30, 2014 | |||||||||||
Stock-based compensation expense: | |||||||||||||||
Cost of revenue | $ | 410 | $ | 233 | $ | 1,043 | $ | 555 | |||||||
Research and development | 4,872 | 2,428 | 12,117 | 5,486 | |||||||||||
Sales and marketing | 3,516 | 3,225 | 9,514 | 6,293 | |||||||||||
General and administrative | 9,072 | 8,027 | 39,886 | 39,809 | |||||||||||
Total stock-based compensation expense | 17,870 | 13,913 | 62,560 | 52,143 | |||||||||||
Total tax benefit recognized | (7,323 | ) | (2,949 | ) | (22,867 | ) | (14,774 | ) | |||||||
Decrease in net income | $ | 10,547 | $ | 10,964 | $ | 39,693 | $ | 37,369 |
|
Three months ended | Nine months ended | ||||||||||||||
(dollars in thousands) | September 30, 2015 | September 30, 2014 | September 30, 2015 | September 30, 2014 | |||||||||||
Income tax expense (benefit) | $ | 8,474 | $ | (2,947 | ) | $ | 22,975 | $ | 2,574 | ||||||
Effective tax rate | 31.1 | % | (25.2 | )% | 24.6 | % | 30.6 | % |
|
|
(in thousands) | Total | 1 year (remaining 3 months in 2015) | 2-3 years (2016 and 2017) | 4-5 years (2018 and 2019) | More than 5 years (beyond 2019) | ||||||||||||||
Operating leases(1) | $ | 61,003 | $ | 4,121 | $ | 30,489 | $ | 18,979 | $ | 7,414 | |||||||||
Sponsorship commitments(2) | 11,277 | 2,694 | 8,571 | 12 | — | ||||||||||||||
Other contractual commitments(3) | 5,337 | 841 | 4,496 | — | — | ||||||||||||||
Capital equipment purchase commitments(4) | 10,048 | 10,048 | — | — | — | ||||||||||||||
Total contractual cash obligations | $ | 87,665 | $ | 17,704 | $ | 43,556 | $ | 18,991 | $ | 7,414 |
(1) | The Company leases its facilities under long-term operating leases, which expire at various dates through 2023. |
(2) | The Company sponsors sporting 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 and engages outside consultants to assist with upgrading or implementing 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. |
Three months ended | Nine months ended | ||||||||||||||
(in thousands) | September 30, 2015 | September 30, 2014 | September 30, 2015 | September 30, 2014 | |||||||||||
Beginning balances | $ | 8,719 | $ | 4,678 | $ | 6,405 | $ | 3,870 | |||||||
Charged to cost of revenue | 6,515 | 2,778 | 18,335 | 6,978 | |||||||||||
Settlements of warranty claims | (5,809 | ) | (2,073 | ) | (15,315 | ) | (5,465 | ) | |||||||
Ending balances | $ | 9,425 | $ | 5,383 | $ | 9,425 | $ | 5,383 |
|
September 30, 2015 | December 31, 2014 | ||
Customer A | 17% | 14% | |
Customer B | 16% | 17% | |
Customer C | 12% | * | |
Customer D | 10% | * | |
Customer E | * | 11% |
Three months ended | Nine months ended | ||||||
September 30, 2015 | September 30, 2014 | September 30, 2015 | September 30, 2014 | ||||
Customer A | 14% | 27% | 14% | 19% | |||
Customer B | 11% | * | * | * |
Three months ended | Nine months ended | ||||||||||||||
(in thousands) | September 30, 2015 | September 30, 2014 | September 30, 2015 | September 30, 2014 | |||||||||||
Americas | $ | 190,839 | $ | 204,893 | $ | 583,282 | $ | 482,769 | |||||||
Europe, Middle East and Africa (EMEA) | 156,639 | 56,068 | 432,904 | 207,285 | |||||||||||
Asia and Pacific area countries (APAC) | 52,862 | 19,010 | 167,182 | 70,238 | |||||||||||
$ | 400,340 | $ | 279,971 | $ | 1,183,368 | $ | 760,292 |
|
|
(in thousands) | September 30, 2015 | December 31, 2014 | |||||
Components | $ | 14,478 | $ | 4,324 | |||
Finished goods | 275,043 | 148,702 | |||||
Total inventory | $ | 289,521 | $ | 153,026 |
(in thousands) | Useful life (in years) | September 30, 2015 | December 31, 2014 | ||||||
Leasehold improvements | 3–7 | $ | 24,050 | $ | 22,787 | ||||
Computers, software, equipment and furniture | 2–4 | 42,936 | 24,636 | ||||||
Tooling | 1–2 | 19,876 | 16,159 | ||||||
Construction in progress | 19,507 | 3,944 | |||||||
Tradeshow equipment and other | 2-5 | 4,016 | 3,830 | ||||||
Total | 110,385 | 71,356 | |||||||
Less: Accumulated depreciation and amortization | (42,741 | ) | (29,800) | ||||||
Property and equipment, net | $ | 67,644 | $ | 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 |
September 30, 2015 | December 31, 2014 | ||||||||||||||
(in thousands) | Gross carrying amount | Accumulated amortization | Net carrying value | Net carrying value | |||||||||||
Purchased technology and other amortizable assets | $ | 32,951 | $ | (7,019 | ) | $ | 25,932 | $ | 2,922 | ||||||
IPR&D and other non-amortizable assets | 6,615 | — | 6,615 | 15 | |||||||||||
Total intangible assets | $ | 39,566 | $ | (7,019 | ) | $ | 32,547 | $ | 2,937 |
(in thousands) | Total | |||
Year ending December 31, | ||||
Remainder of 2015 | $ | 1,521 | ||
2016 | 5,956 | |||
2017 | 5,172 | |||
2018 | 4,779 | |||
2019 | 4,269 | |||
Thereafter | 4,235 | |||
$ | 25,932 |
|
September 30, 2015 | December 31, 2014 | |||||||||||||||||||||||
(in thousands) | Level 1 | Level 2 | Total | Level 1 | Level 2 | Total | ||||||||||||||||||
Cash equivalents (1): | ||||||||||||||||||||||||
Money market funds | $ | 12,173 | $ | — | $ | 12,173 | $ | 80,968 | $ | — | $ | 80,968 | ||||||||||||
Corporate debt securities | — | 100 | 100 | — | 2,000 | 2,000 | ||||||||||||||||||
Total cash equivalents | $ | 12,173 | $ | 100 | $ | 12,273 | $ | 80,968 | $ | 2,000 | $ | 82,968 | ||||||||||||
Marketable securities: | ||||||||||||||||||||||||
U.S. treasury securities | $ | 3,014 | $ | — | $ | 3,014 | $ | 1,994 | $ | — | $ | 1,994 | ||||||||||||
U.S. agency securities | — | 19,565 | 19,565 | — | 7,020 | 7,020 | ||||||||||||||||||
Commercial paper | — | 997 | 997 | — | 2,497 | 2,497 | ||||||||||||||||||
Corporate debt securities | — | 197,554 | 197,554 | — | — | — | ||||||||||||||||||
Municipal securities | — | 12,003 | 12,003 | — | 90,816 | 90,816 | ||||||||||||||||||
Total marketable securities | $ | 3,014 | $ | 230,119 | $ | 233,133 | $ | 1,994 | $ | 100,333 | $ | 102,327 |
|
Options outstanding | |||||||||||
(shares in thousands) | Shares | Weighted- average exercise price | Aggregate intrinsic value (in thousands) | ||||||||
Outstanding at December 31, 2014: | 25,134 | $ | 6.62 | $ | 1,425,339 | ||||||
Granted | 527 | 47.37 | |||||||||
Exercised | (12,027 | ) | 1.97 | ||||||||
Forfeited/Cancelled | (249 | ) | 18.65 | ||||||||
Outstanding at September 30, 2015: | 13,385 | $ | 12.19 | $ | 276,067 | ||||||
Exercisable at September 30, 2015 | 8,258 | $ | 5.48 | $ | 214,083 | ||||||
Vested and expected to vest at September 30, 2015 | 13,127 | $ | 11.94 | $ | 273,232 |
(shares in thousands) | Shares | Weighted- average grant date fair value | ||||
Non-vested shares at December 31, 2014 | 4,307 | $ | 21.98 | |||
Granted | 1,525 | 52.93 | ||||
Vested | (1,372 | ) | 16.53 | |||
Forfeited | (52 | ) | 69.51 | |||
Non-vested shares at September 30, 2015 | 4,408 | $ | 33.82 |
Three months ended | Nine months ended | ||||||||||||||
(in thousands) | September 30, 2015 | September 30, 2014 | September 30, 2015 | September 30, 2014 | |||||||||||
Stock-based compensation expense: | |||||||||||||||
Cost of revenue | $ | 410 | $ | 233 | $ | 1,043 | $ | 555 | |||||||
Research and development | 4,872 | 2,428 | 12,117 | 5,486 | |||||||||||
Sales and marketing | 3,516 | 3,225 | 9,514 | 6,293 | |||||||||||
General and administrative | 9,072 | 8,027 | 39,886 | 39,809 | |||||||||||
Total stock-based compensation expense | 17,870 | 13,913 | 62,560 | 52,143 | |||||||||||
Total tax benefit recognized | (7,323 | ) | (2,949 | ) | (22,867 | ) | (14,774 | ) | |||||||
Decrease in net income | $ | 10,547 | $ | 10,964 | $ | 39,693 | $ | 37,369 |
|
Three months ended | Nine months ended | ||||||||||||||
(dollars in thousands) | September 30, 2015 | September 30, 2014 | September 30, 2015 | September 30, 2014 | |||||||||||
Income tax expense (benefit) | $ | 8,474 | $ | (2,947 | ) | $ | 22,975 | $ | 2,574 | ||||||
Effective tax rate | 31.1 | % | (25.2 | )% | 24.6 | % | 30.6 | % |
|
(in thousands) | Total | 1 year (remaining 3 months in 2015) | 2-3 years (2016 and 2017) | 4-5 years (2018 and 2019) | More than 5 years (beyond 2019) | ||||||||||||||
Operating leases(1) | $ | 61,003 | $ | 4,121 | $ | 30,489 | $ | 18,979 | $ | 7,414 | |||||||||
Sponsorship commitments(2) | 11,277 | 2,694 | 8,571 | 12 | — | ||||||||||||||
Other contractual commitments(3) | 5,337 | 841 | 4,496 | — | — | ||||||||||||||
Capital equipment purchase commitments(4) | 10,048 | 10,048 | — | — | — | ||||||||||||||
Total contractual cash obligations | $ | 87,665 | $ | 17,704 | $ | 43,556 | $ | 18,991 | $ | 7,414 |
(1) | The Company leases its facilities under long-term operating leases, which expire at various dates through 2023. |
(2) | The Company sponsors sporting 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 and engages outside consultants to assist with upgrading or implementing 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. |
Three months ended | Nine months ended | ||||||||||||||
(in thousands) | September 30, 2015 | September 30, 2014 | September 30, 2015 | September 30, 2014 | |||||||||||
Beginning balances | $ | 8,719 | $ | 4,678 | $ | 6,405 | $ | 3,870 | |||||||
Charged to cost of revenue | 6,515 | 2,778 | 18,335 | 6,978 | |||||||||||
Settlements of warranty claims | (5,809 | ) | (2,073 | ) | (15,315 | ) | (5,465 | ) | |||||||
Ending balances | $ | 9,425 | $ | 5,383 | $ | 9,425 | $ | 5,383 |
|
Three months ended | Nine months ended | ||||||||||||||
(in thousands) | September 30, 2015 | September 30, 2014 | September 30, 2015 | September 30, 2014 | |||||||||||
Americas | $ | 190,839 | $ | 204,893 | $ | 583,282 | $ | 482,769 | |||||||
Europe, Middle East and Africa (EMEA) | 156,639 | 56,068 | 432,904 | 207,285 | |||||||||||
Asia and Pacific area countries (APAC) | 52,862 | 19,010 | 167,182 | 70,238 | |||||||||||
$ | 400,340 | $ | 279,971 | $ | 1,183,368 | $ | 760,292 |
September 30, 2015 | December 31, 2014 | ||
Customer A | 17% | 14% | |
Customer B | 16% | 17% | |
Customer C | 12% | * | |
Customer D | 10% | * | |
Customer E | * | 11% |
Three months ended | Nine months ended | ||||||
September 30, 2015 | September 30, 2014 | September 30, 2015 | September 30, 2014 | ||||
Customer A | 14% | 27% | 14% | 19% | |||
Customer B | 11% | * | * | * |
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