Balance Sheet Components (Tables)

6 Months Ended

Jul. 01, 2017

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of accounts receivable reserves

Revenue returns reserve activities were as follows (in thousands):

	Three Months Ended						Six Months Ended
	July 1, 2017			July 2, 2016			July 1, 2017			July 2, 2016
Beginning balances	$	68,317		$	55,875		$	98,851		$	74,045
Increases	48,285			85,335			89,911			119,550
Returns taken	(65,082		)	(60,933		)	(137,242		)	(113,318		)
Ending balances	$	51,520		$	80,277		$	51,520		$	80,277

Schedule of inventories

Inventories consisted of the following (in thousands):

	July 1, 2017		December 31, 2016
Components	$	5,270	$	1,035
Finished goods	136,234		229,352
Total inventories	$	141,504	$	230,387

Schedule of prepaid expenses and other current asset

Prepaid expenses and other current assets consisted of the following (in thousands):

	July 1, 2017		December 31, 2016
Prepaid income taxes	$	65,442	$	481
POP displays, net	5,436		22,804
Prepaid marketing	3,251		5,764
Derivative assets	361		10,625
Other	23,227		26,672
Total prepaid expenses and other current assets	$	97,717	$	66,346

Schedule of property and equipment

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

	July 1, 2017			December 31, 2016
Tooling and manufacturing equipment	$	50,736		$	60,944
Furniture and office equipment	16,416			14,424
Purchased and internally-developed software	14,648			12,032
Leasehold improvements	37,107			28,489
Total property and equipment	118,907			115,889
Less: Accumulated depreciation and amortization	(38,772		)	(39,336		)
Property and equipment, net	$	80,135		$	76,553

Schedule of intangible assets (excluding goodwill)

The carrying amounts of the intangible assets as of July 1, 2017 and December 31, 2016 were as follows (in thousands, except useful life). In-process research and development is not amortized until the completion or abandonment of the related development.

	July 1, 2017							December 31, 2016							Weighted Average Remaining Useful Life (years)
	Gross		Accumulated Amortization			Net		Gross		Accumulated Amortization			Net
Developed technology	$	26,092	$	(5,885	)	$	20,207	$	26,092	$	(3,247	)	$	22,845	4.2
Trademarks and other	1,150		(529		)	621		1,278		(542		)	736		2.8
Total finite-lived intangible assets subject to amortization, net	27,242		(6,414		)	20,828		27,370		(3,789		)	23,581
In-process research and development	3,940		—			3,940		3,940		—			3,940
Total intangible assets, net	$	31,182	$	(6,414	)	$	24,768	$	31,310	$	(3,789	)	$	27,521

Schedule of estimated future amortization expense

The estimated future amortization expense of acquired finite-lived intangible assets to be charged to cost of revenue and operating expenses after July 1, 2017 is as follows (in thousands):

	Cost of Revenue		Operating Expenses		Total
Remaining 2017	$	2,638	$	115	$	2,753
2018	5,276		230		5,506
2019	4,496		230		4,726
2020	3,716		46		3,762
2021	3,716		—		3,716
Thereafter	365		—		365
Total finite-lived intangible assets, net	$	20,207	$	621	$	20,828

Schedule of accrued liabilities

Accrued liabilities consisted of the following (in thousands):

	July 1, 2017		December 31, 2016
Product warranty	$	72,761	$	99,923
Accrued manufacturing expense and freight	60,826		75,579
Accrued sales incentives	64,281		74,181
Accrued sales and marketing	24,495		41,948
Accrued co-op advertising and marketing development funds	17,992		40,002
Sales taxes and VAT payable	20,263		8,891
Employee related liabilities	19,716		13,934
Inventory received but not billed	13,981		7,363
Accrued legal fees	10,336		3,963
Derivative liabilities	13,869		3,780
Other	28,997		20,997
Accrued liabilities	$	347,517	$	390,561

Schedule of product warranty reserves

Product warranty reserve activities were as follows (in thousands)⁽¹⁾:

	Three Months Ended						Six Months Ended
	July 1, 2017			July 2, 2016			July 1, 2017			July 2, 2016
Beginning balances	$	90,459		$	50,669		$	99,923		$	40,212
Charged to cost of revenue	(1,595		)	64,211			17,342			101,452
Changes related to pre-existing warranties	4,913			(487		)	2,473			(487		)
Settlement of claims	(21,016		)	(37,552		)	(46,977		)	(64,336		)
Ending balances	$	72,761		$	76,841		$	72,761		$	76,841

⁽¹⁾  Does not include reserves established as a result of the recall of the Fitbit Force. See the section titled “—Fitbit Force Recall Reserve” in the Company’s Annual Report on Form 10-K for additional information regarding such reserves.

Schedule of product recall reserves

The restructuring reserve activities were as follows (in thousands):

	Three Months Ended					Six Months Ended
	July 1, 2017			July 2, 2016		July 1, 2017			July 2, 2016
Beginning balance	$	2,352		$	—	$	—		$	—
Restructuring charges	—			—		6,375			—
Cash paid	(1,330		)	—		(4,625		)	—
Other - noncash	—			—		(728		)	—
Ending balance	$	1,022		$	—	$	1,022		$	—

Schedule of accumulated other comprehensive income

The components and activity of accumulated other comprehensive income (“AOCI”), net of tax, were as follows (in thousands):

	Unrealized Gains (Losses) on Cash Flow Hedges			Currency Translation Adjustments			Unrealized Gains (Losses) on Available-for-Sale Investments			Total
Balance at December 31, 2016	$	(477	)	$	(314	)	$	(187	)	$	(978	)
Other comprehensive income (loss) before reclassifications	(13,789		)	314			85			(13,390		)
Amounts reclassified from AOCI	1,647			—			(12		)	1,635
Other comprehensive income (loss)	(12,142		)	314			73			(11,755		)
Balance at July 1, 2017	$	(12,619	)	$	—		$	(114	)	$	(12,733	)