Balance Sheet Components (Tables)

6 Months Ended

Jun. 30, 2018

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of deferred revenue

Changes in the total short-term and long-term deferred revenue balance were as follows (in thousands):

	Three Months Ended			Six Months Ended
	June 30, 2018			June 30, 2018
Beginning balances	$	36,448		$	42,432
Deferral of revenue	8,328			15,708
Recognition of deferred revenue	(11,941		)	(25,305		)
Ending balances	$	32,835		$	32,835

Schedule of accounts receivable reserves

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

	Three Months Ended						Six Months Ended
	June 30, 2018			July 1, 2017			June 30, 2018			July 1, 2017
Beginning balances	$	82,612		$	68,317		$	109,872		$	98,851
Increases	36,929			48,285			63,001			89,911
Write-offs/Returns taken	(44,545		)	(65,082		)	(97,877		)	(137,242		)
Ending balances	$	74,996		$	51,520		$	74,996		$	51,520

Schedule of inventories

Inventories consisted of the following (in thousands):

	June 30, 2018		December 31, 2017
Components	11,687		3,825
Finished goods	128,743		120,070
Total inventories	$	140,430	$	123,895

Schedule of prepaid expenses and other current asset

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

	June 30, 2018		December 31, 2017
POP displays, net	$	10,345	$	14,750
Prepaid marketing	2,768		6,074
Derivative assets	5,464		—
Prepaid expenses	14,482		24,204
Insurance receivable	—		37,300
Other	30,168		14,941
Total prepaid expenses and other current assets	$	63,227	$	97,269

Schedule of property and equipment

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

	June 30, 2018			December 31, 2017
Tooling and manufacturing equipment	$	76,119		$	66,854
Furniture and office equipment	22,509			20,942
Purchased and internally-developed software	20,346			18,112
Leasehold improvements	63,787			58,431
Total property and equipment	182,761			164,339
Less: Accumulated depreciation and amortization	(72,576		)	(59,431		)
Property and equipment, net	$	110,185		$	104,908

Schedule of goodwill

	Goodwill
Balance at December 31, 2017	$	51,036
Goodwill acquired	10,022
Balance at June 30, 2018	$	61,058

Schedule of intangible assets (excluding goodwill)

	June 30, 2018							December 31, 2017							Weighted Average Remaining Useful Life (years)
	Gross		Accumulated Amortization			Net		Gross		Accumulated Amortization			Net
Developed technology	$	35,988	$	(12,249	)	$	23,739	$	30,588	$	(8,738	)	$	21,850	3.4
Customer relationships	3,918		(308		)	3,610		—		—			—		6.4
Trademarks and other	1,150		(759		)	391		1,278		(772		)	506		0.6
Total intangible assets, net	$	41,056	$	(13,316	)	$	27,740	$	31,866	$	(9,510	)	$	22,356

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 June 30, 2018 was as follows (in thousands):

	Cost of Revenue		Operating Expenses		Total
Remaining 2018	$	3,735	$	386	$	4,121
2019	6,690		771		7,461
2020	5,910		588		6,498
2021	5,910		541		6,451
2022	1,236		541		1,777
Thereafter	258		1,174		1,432
Total finite-lived intangible assets, net	$	23,739	$	4,001	$	27,740

Schedule of accrued liabilities

Accrued liabilities consisted of the following (in thousands):

	June 30, 2018		December 31, 2017
Product warranty	$	50,468	$	87,882
Accrued revenue reserve from returns	74,996		—
Accrued manufacturing expense and freight	34,493		41,901
Accrued sales incentives	87,756		111,592
Accrued sales and marketing	24,693		44,401
Accrued research and development	4,819		8,983
Accrued co-op advertising and marketing development funds	19,521		30,408
Employee-related liabilities	23,054		33,266
Sales taxes and VAT payable	26,127		21,340
Inventory received but not billed	4,615		10,526
Accrued legal settlements and fees	4,819		36,693
Derivative liabilities	736		2,138
Other	20,961		23,007
Accrued liabilities	$	377,058	$	452,137

Schedule of product warranty reserves

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

	Three Months Ended						Six Months Ended
	June 30, 2018			July 1, 2017			June 30, 2018			July 1, 2017
Beginning balances	$	71,975		$	90,459		$	87,882		$	99,923
Charged to cost of revenue	(8,486		)	(1,595		)	(10,967		)	17,342
Changes related to pre-existing warranties	(4,469		)	4,913			(7,872		)	2,473
Settlement of claims	(8,552		)	(21,016		)	(18,575		)	(46,977		)
Ending balances	$	50,468		$	72,761		$	50,468		$	72,761

⁽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 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, 2017	$	66		$	—	$	(75	)	$	(9	)
Other comprehensive income (loss) before reclassifications	5,912			—		(208		)	5,704
Amounts reclassified from AOCI	(1,028		)	—		12			(1,016		)
Other comprehensive income (loss)	4,884			—		(196		)	4,688
Balance at June 30, 2018	$	4,950		$	—	$	(271	)	$	4,679