Condensed consolidated financial statement details Condensed consolidated financial statement details

3 Months Ended

Mar. 31, 2020

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Consolidated financial statement details

Condensed consolidated financial statement details

The following sections and tables provide details of selected balance sheet items.

Inventory

(in thousands)	March 31, 2020		December 31, 2019
Components	$	24,413	$	20,370
Finished goods	147,609		123,866
Total inventory	$	172,022	$	144,236

Property and equipment, net

(in thousands)	March 31, 2020			December 31, 2019
Leasehold improvements	$	50,740		$	50,736
Production, engineering and other equipment	45,833			45,649
Tooling	18,670			19,216
Computers and software	22,355			21,719
Furniture and office equipment	10,865			10,846
Tradeshow equipment and other	7,078			7,009
Construction in progress	45			45
Gross property and equipment	155,586			155,220
Less: Accumulated depreciation and amortization	(121,916		)	(118,681		)
Property and equipment, net	$	33,670		$	36,539

Intangible assets

	March 31, 2020
(in thousands)	Gross carrying value		Accumulated amortization			Net carrying value
Purchased technology	$	51,066	$	(47,156	)	$	3,910
Domain name	15		—			15
Total intangible assets	$	51,081	$	(47,156	)	$	3,925

	December 31, 2019
(in thousands)	Gross carrying value		Accumulated amortization			Net carrying value
Purchased technology	$	50,501	$	(45,269	)	$	5,232
Domain name	15		—			15
Total intangible assets	$	50,516	$	(45,269	)	$	5,247

Amortization expense was $1.9 million and $2.1 million for the three months ended March 31, 2020 and 2019, respectively. At March 31, 2020, expected amortization expense of intangible assets with definite lives for future periods was as follows:

(in thousands)	Total
Year ending December 31,
2020 (remaining 9 months)	$	2,711
2021	1,152
2022	47
	$	3,910

Other long-term assets

(in thousands)	March 31, 2020		December 31, 2019
Point of purchase (POP) displays	$	7,450	$	7,595
Long-term deferred tax assets	858		864
Deposits and other	6,705		7,002
Other long-term assets	$	15,013	$	15,461

Accrued expenses and other current liabilities

(in thousands)	March 31, 2020		December 31, 2019
Accrued payables	$	32,225	$	42,153
Accrued sales incentives	22,798		39,120
Employee related liabilities	6,943		20,494
Return liability	10,663		14,854
Warranty liability	7,350		9,899
Inventory received	7,936		5,737
Customer deposits	3,474		2,063
Purchase order commitments	2,077		1,710
Income taxes payable	977		1,166
Other	3,100		4,594
Accrued expenses and other current liabilities	$	97,543	$	141,790

Product warranty

	Three months ended March 31,
(in thousands)	2020			2019
Beginning balance	$	11,398		$	10,971
Charged to cost of revenue	1,717			6,149
Settlement of warranty claims	(4,161		)	(5,527		)
Warranty liability	$	8,954		$	11,593

At March 31, 2020 and December 31, 2019, $7.4 million and $9.9 million, respectively, of the warranty liability was recorded as a component of accrued expenses and other current liabilities, and $1.6 million and $1.5 million, respectively, was recorded as a component of other long-term liabilities.