Balance Sheet Components

9 Months Ended

Sep. 30, 2019

Balance Sheet Related Disclosures [Abstract]

4. Balance sheet components

Accounts Receivable, Net of allowances—Accounts receivable, net of allowances, consisted of the following (in thousands):

	September 30, 2019			December 31, 2018
Gross accounts receivable	$	209,149		$	204,975
Allowance for sales returns		(4,438	)		(7,335	)
Allowance for sales incentives		(8,378	)		(13,750	)
Other allowances		(289	)		(812	)
Total allowances		(13,105	)		(21,897	)
Total Accounts Receivable—net of allowances	$	196,044		$	183,078

Allowance for Sales Returns—Allowance for sales returns consisted of the following activities (in thousands):

	September 30, 2019			December 31, 2018
Balance, beginning of period	$	(7,335	)	$	(6,907	)
Charged to revenue		(9,519	)		(17,396	)
Utilization of sales return reserve		12,416			16,968
Balance, end of period	$	(4,438	)	$	(7,335	)

Allowance for Sales Incentives—Allowance for sales incentives consisted of the following activities (in thousands):

	September 30, 2019			December 31, 2018
Balance, beginning of period	$	(13,750	)	$	(10,442	)
Charged to revenue		(26,947	)		(50,958	)
Utilization of sales incentive reserve		32,319			47,650
Balance, end of period	$	(8,378	)	$	(13,750	)

Property and Equipment, Net—Property and equipment, net consisted of the following (in thousands):

	September 30, 2019			December 31, 2018
Computers and equipment	$	21,642		$	16,056
Leasehold improvements		54,294			18,396
Website and internal-use software		6,457			6,423
Office equipment and furniture		7,864			4,069
Total property and equipment		90,257			44,944
Accumulated depreciation and amortization		(28,379	)		(19,680	)
Property and Equipment, net	$	61,878		$	25,264

Depreciation and amortization expense, for property and equipment assets, for the three months ended September 30, 2019 and 2018 was $3.4 million and $2.1 million, respectively. Depreciation and amortization expense, for property and equipment assets, for the nine months ended September 30, 2019 and 2018 was $8.8 million and $5.4 million, respectively.

Accounts Payable and Accrued Liabilities—Accounts payable and accrued liabilities consisted of the following (in thousands):

	September 30, 2019		December 31, 2018
Accounts payable	$	77,416	$	56,576
Payments due to content publishers		55,096		32,463
Accrued cost of revenue		33,889		22,830
Operating lease liability, current		16,600		—
Accrued royalty expense		11,239		7,939
Accrued payroll and related expenses		11,074		12,217
Accrued inventory		10,497		6,008
Accrued capital expenditures		5,973		—
Marketing, retail and merchandising costs		5,777		—
Accrued legal fees		4,298		—
Customer prepayments		2,376		3,124
Taxes and related liabilities		1,160		1,314
Other accrued expenses		6,124		6,091
Total Accounts Payable and Accrued Liabilities	$	241,519	$	148,562

Deferred Revenue—Deferred revenue consisted of the following (in thousands):

	September 30, 2019		December 31, 2018
Platform, current	$	17,541	$	28,569
Player, current		18,371		16,873
Total deferred revenue, current		35,912		45,442
Platform, non-current		6,221		12,783
Player, non-current		6,711		6,811
Total deferred revenue, non-current		12,932		19,594
Total Deferred Revenue	$	48,844	$	65,036