|
Delaware
|
|
77-0629474
|
|
(State or other jurisdiction of incorporation or organization)
|
|
(I.R.S. Employer Identification No.)
|
|
3000 Clearview Way
|
|
|
|
San Mateo,
|
California
|
|
94402
|
(Address of principal executive offices)
|
|
(Zip Code)
|
(650)
|
332-7600
|
Title of each class
|
Trading Symbol(s)
|
Name of each exchange on which registered
|
Class A Common Stock
|
GPRO
|
NASDAQ Global Select Market
|
|
|
|
Page
|
PART I
|
||
Item 1.
|
||
Item 1A.
|
||
Item 1B.
|
||
Item 2.
|
||
Item 3.
|
||
Item 4.
|
||
|
|
|
PART II
|
||
Item 5.
|
||
Item 6.
|
||
Item 7.
|
||
Item 7A.
|
||
Item 8.
|
||
Item 9.
|
||
Item 9A.
|
||
Item 9B.
|
|
|
|
|
|
PART III
|
||
Item 10.
|
||
Item 11.
|
||
Item 12.
|
||
Item 13.
|
||
Item 14.
|
||
|
|
|
PART IV
|
||
Item 15.
|
||
Item 16.
|
||
|
||
|
|
|
•
|
HERO8 Black is our flagship camera launched in the Fall of 2019, featuring enhanced HyperSmooth 2.0 image stabilization, TimeWarp Video 2.0, built-in mounting, live streaming, cloud connectivity, voice control, improved audio and touch display. HyperSmooth 2.0 image stabilization includes dramatically improved pitch axis stabilization, a new Boost mode for absolute maximum stabilization, and powerful in-app horizon leveling that provides gimbal-like stability. TimeWarp Video 2.0 automatically applies a high-speed, ‘magic-carpet-ride’ effect to videos, while live streaming enables users to share content in real time to Facebook, Twitch, YouTube, Vimeo and other social media platforms. Our HERO8 Black camera is powered by GoPro’s custom designed GP1 processor and is the most powerful and performance featured GoPro camera to date. We also introduced three new accessories for the HERO8 Black camera, called Mods, which enables users to transform their HERO8 Black camera into a production powerhouse. The Media Mod delivers shotgun-mic performance with an integrated directional microphone, the Light Mod illuminates a scene and the Display Mod allows users to perfectly frame themselves during self-capture. We also continue to offer our HERO7 Black and HERO7 Silver cameras which were launched in the Fall of 2018. Our cameras are compatible with our ecosystem of mountable and wearable accessories, and feature automatic uploading capabilities for photos and videos to GoPro Plus, our subscription service.
|
•
|
MAX is our newest 360-degree waterproof camera launched in the Fall of 2019, featuring MAX HyperSmooth image stabilization, 360-degree MAX TimeWarp Video, MAX SuperView, PowerPano, built-in mounting, high-quality audio, live streaming, voice control and a front facing touch display. MAX HyperSmooth provides the highest performance video stabilization yet, while MAX SuperView provides the widest field of view ever from a GoPro camera. PowerPano allows users to capture a 6.2mp, 270-degree panoramic photo with the push of a button and creates an artifact-free shot of action or movement. Our MAX camera features six built-in microphones that allows users to capture immersive 360-degree audio, directional audio for vlogging and the best stereo sound ever from a GoPro.
|
•
|
GoPro Plus is our subscription service that provides a camera protection plan and enables subscribers to easily access, edit and share content. GoPro Plus includes unlimited cloud storage supporting source video and photo quality, as well as discounts on accessories, camera replacement and damage protection. Our HERO5 Black and newer cameras can automatically upload photos and videos to a subscriber’s GoPro Plus account at the highest possible quality.
|
•
|
GoPro App is a mobile app that seamlessly uploads a user’s GoPro photos and video clips to a smartphone. Our GoPro app now incorporates a video editing solution, which includes an improved multi-clip workflow that enables the GoPro app to better identify meaningful moments in users footage, and suggest story compilations of photos and videos. In addition, the GoPro app allows users to mix and match filters for a highly-customizable editing experience and offers an expanded library of soundtracks and support.
|
•
|
difficulties in staffing and managing foreign operations;
|
•
|
burdens of complying with a wide variety of laws and regulations, including environmental, packaging and labeling;
|
•
|
adverse tax effects and foreign exchange controls making it difficult to repatriate earnings and cash;
|
•
|
changes to the taxation of undistributed foreign earnings;
|
•
|
the effect of foreign currency exchange rates and interest rates, including any fluctuations caused by uncertainties relating to the U.K. leaving the European Union (“Brexit”);
|
•
|
political, economic instability, or social unrest in a specific country or region in which we operate, including, for example, the effects of “Brexit,” which could have an adverse impact on our operations in that location;
|
•
|
organized crime activity, including those in Mexico;
|
•
|
terrorist activities and natural disasters;
|
•
|
quarantines or other disruptions to our operations resulting from future pandemics or other widespread public health problems;
|
•
|
trade restrictions;
|
•
|
differing employment practices and laws and labor disruptions;
|
•
|
the imposition of government controls;
|
•
|
lesser degrees of intellectual property protection;
|
•
|
tariffs and customs duties and the classifications of our goods by applicable governmental bodies;
|
•
|
a legal system subject to undue influence or corruption; and
|
•
|
a business culture in which illegal sales practices may be prevalent.
|
•
|
our board of directors is not currently classified, but at such time as all shares of our Class B common stock have been converted into shares of our Class A common stock, our board of directors will be classified into three classes of directors with staggered three-year terms;
|
•
|
so long as any shares of our Class B common stock are outstanding, special meetings of our stockholders may be called by the holders of 10% of the outstanding voting power of all then outstanding shares of stock, a majority of our board of directors, the chairman of our board of directors or our chief executive officer;
|
•
|
when no shares of our Class B common stock are outstanding, only the chairman of our board of directors, our chief executive officer or a majority of our board of directors will be authorized to call a special meeting of stockholders;
|
•
|
our stockholders may only take action at a meeting of stockholders and not by written consent;
|
•
|
vacancies on our board of directors may be filled only by our board of directors and not by stockholders;
|
•
|
directors may be removed from office with or without cause so long as our board of directors is not classified, and thereafter directors may be removed from office only for cause;
|
•
|
our restated certificate of incorporation provides for a dual class common stock structure in which holders of our Class B common stock have the ability to control the outcome of matters requiring stockholder approval, even if they own significantly less than a majority of the outstanding shares of our Class A and Class B common stock, including the election of directors and significant corporate transactions, such as a merger or other sale of our company or its assets;
|
•
|
our restated certificate of incorporation authorizes undesignated preferred stock, the terms of which may be established, and shares of which may be issued, by our board of directors without stockholder approval and which may contain voting, liquidation, dividend and other rights superior to those of our Class A and Class B common stock; and
|
•
|
advance notice procedures apply for stockholders to nominate candidates for election as directors or to bring matters before an annual meeting of stockholders.
|
•
|
heighten our vulnerability to adverse general economic conditions and heightened competitive pressures;
|
•
|
require us to dedicate a larger portion of our cash flow from operations to interest payments, limiting the availability of cash for other purposes;
|
•
|
limit our flexibility in planning for, or reacting to, changes in our business and industry; and
|
•
|
impair our ability to obtain additional financing in the future for working capital, capital expenditures, acquisitions, general corporate purposes or other purposes.
|
|
Year ended December 31,
|
||||||||||||||||||
(dollars in thousands, except per share amounts)
|
2019
|
|
2018 (1)
|
|
2017 (1)
|
|
2016 (1)
|
|
2015 (1)
|
||||||||||
Consolidated statements of operations data:
|
|
|
|
|
|
|
|
|
|
||||||||||
Revenue
|
$
|
1,194,651
|
|
|
$
|
1,148,337
|
|
|
$
|
1,179,741
|
|
|
$
|
1,185,481
|
|
|
$
|
1,619,971
|
|
Gross profit
|
$
|
412,789
|
|
|
$
|
361,434
|
|
|
$
|
384,530
|
|
|
$
|
461,920
|
|
|
$
|
673,214
|
|
Gross margin
|
34.6
|
%
|
|
31.5
|
%
|
|
32.6
|
%
|
|
39.0
|
%
|
|
41.6
|
%
|
|||||
Operating income (loss)
|
$
|
(2,333
|
)
|
|
$
|
(93,962
|
)
|
|
$
|
(163,460
|
)
|
|
$
|
(372,969
|
)
|
|
$
|
54,748
|
|
Net income (loss)
|
$
|
(14,642
|
)
|
|
$
|
(109,034
|
)
|
|
$
|
(182,873
|
)
|
|
$
|
(419,003
|
)
|
|
$
|
36,131
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income (loss) per share:
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic
|
$
|
(0.10
|
)
|
|
$
|
(0.78
|
)
|
|
$
|
(1.32
|
)
|
|
$
|
(3.01
|
)
|
|
$
|
0.27
|
|
Diluted
|
$
|
(0.10
|
)
|
|
$
|
(0.78
|
)
|
|
$
|
(1.32
|
)
|
|
$
|
(3.01
|
)
|
|
$
|
0.25
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Other financial information:
|
|
|
|
|
|
|
|
|
|
||||||||||
Adjusted EBITDA (2)
|
$
|
71,958
|
|
|
$
|
21,778
|
|
|
$
|
(31,368
|
)
|
|
$
|
(192,807
|
)
|
|
$
|
179,309
|
|
Non-GAAP net income (loss) (3)
|
$
|
35,255
|
|
|
$
|
(31,909
|
)
|
|
$
|
(95,867
|
)
|
|
$
|
(201,247
|
)
|
|
$
|
111,564
|
|
Non-GAAP diluted income (loss) per share
|
$
|
0.24
|
|
|
$
|
(0.23
|
)
|
|
$
|
(0.69
|
)
|
|
$
|
(1.44
|
)
|
|
$
|
0.76
|
|
(1)
|
The Company adopted Accounting Standards Update (ASU) 2016-02, Leases (Topic 842) on January 1, 2019, and adopted ASU 2014-09, Revenue from Contracts with Customers (Topic 606), and ASU 2016-16 Income Taxes - Intra-Entity Transfers of Assets Other Than Inventory on January 1, 2018. Prior periods were not adjusted for the adoption of these standards.
|
(2)
|
We define adjusted EBITDA as net income (loss) adjusted to exclude the impact of: provision for income taxes, interest income, interest expense, depreciation and amortization, point of purchase (POP) display amortization, stock-based compensation, impairment charges and restructuring costs.
|
(3)
|
We define non-GAAP net income as net income (loss) adjusted to exclude stock-based compensation, acquisition-related costs, restructuring costs, non-cash interest expense, gain on sale and license of intellectual property and income tax adjustments. Acquisition-related costs include the amortization of acquired intangible assets and impairment write-downs (if applicable), as well as third-party transaction costs for legal and other professional services.
|
(1)
|
The Company adopted Accounting Standards Update (ASU) 2016-02, Leases (Topic 842) on January 1, 2019, and adopted ASU 2014-09, Revenue from Contracts with Customers (Topic 606), and ASU 2016-16 Income Taxes - Intra-Entity Transfers of Assets Other Than Inventory on January 1, 2018. Prior periods were not adjusted for the adoption of these standards.
|
•
|
Overview. Discussion of our business and overall analysis of financial and other highlights affecting the Company in order to provide context for the remainder of MD&A.
|
•
|
Components of Our Results of Operations. Description of the items contained in each operating revenue and expense caption in the consolidated statements of operations.
|
•
|
Results of Operations. Analysis of our financial results comparing 2019 to 2018 is presented below. An analysis of our financial results comparing 2018 to 2017 can be found under “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Part II, Item 7 in our Annual Report on Form 10-K for the fiscal year ended December 31, 2018, filed with the SEC on February 15, 2019, which is available free of charge on the SEC’s website at www.sec.gov and our Investor Relations website at https://investor.gopro.com.
|
•
|
Liquidity and Capital Resources. Analysis of changes in our balance sheets and cash flows, and discussion of our financial condition and potential sources of liquidity.
|
•
|
Contractual Commitments. Overview of our contractual obligations, including expected payment schedule and indemnifications as of December 31, 2019.
|
•
|
Critical Accounting Policies and Estimates. Accounting estimates that we believe are important to understanding the assumptions and judgments incorporated in our reported financial results and forecasts.
|
•
|
Non-GAAP Financial Measures. A reconciliation and discussion of our GAAP to non-GAAP financial measures.
|
(units and dollars in thousands, except per share amounts)
|
Q4 2019
|
|
Q4 2018
|
|
% Change
|
|
FY 2019
|
|
FY 2018
|
|
% Change
|
||||||||||
Revenue
|
$
|
528,345
|
|
|
$
|
377,378
|
|
|
40
|
%
|
|
$
|
1,194,651
|
|
|
$
|
1,148,337
|
|
|
4
|
%
|
Camera units shipped (1)
|
1,857
|
|
|
1,413
|
|
|
31
|
%
|
|
4,260
|
|
|
4,337
|
|
|
(2
|
)%
|
||||
Gross margin (2)
|
38.2
|
%
|
|
37.7
|
%
|
|
50 bps
|
|
|
34.6
|
%
|
|
31.5
|
%
|
|
310 bps
|
|
||||
Operating expenses
|
$
|
105,725
|
|
|
$
|
109,150
|
|
|
(3
|
)%
|
|
$
|
415,122
|
|
|
$
|
455,396
|
|
|
(9
|
)%
|
Net income (loss)
|
$
|
95,820
|
|
|
$
|
31,671
|
|
|
203
|
%
|
|
$
|
(14,642
|
)
|
|
$
|
(109,034
|
)
|
|
(87
|
)%
|
Diluted net income (loss) per share
|
$
|
0.65
|
|
|
$
|
0.22
|
|
|
195
|
%
|
|
$
|
(0.10
|
)
|
|
$
|
(0.78
|
)
|
|
(87
|
)%
|
Cash provided by (used in) operations
|
$
|
88,251
|
|
|
$
|
48,413
|
|
|
82
|
%
|
|
$
|
(24,444
|
)
|
|
$
|
(42,434
|
)
|
|
(42
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Other financial information:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Adjusted EBITDA (3)
|
$
|
112,092
|
|
|
$
|
58,807
|
|
|
91
|
%
|
|
$
|
71,958
|
|
|
$
|
21,778
|
|
|
230
|
%
|
Non-GAAP net income (loss) (4)
|
$
|
102,498
|
|
|
$
|
42,356
|
|
|
142
|
%
|
|
$
|
35,255
|
|
|
$
|
(31,909
|
)
|
|
(210
|
)%
|
Non-GAAP income (loss) per share
|
$
|
0.70
|
|
|
$
|
0.30
|
|
|
133
|
%
|
|
$
|
0.24
|
|
|
$
|
(0.23
|
)
|
|
(204
|
)%
|
(1)
|
Represents the number of camera units that are shipped during a reporting period, including camera units that are shipped with drones, net of any returns. Camera units shipped does not include drones sold without a camera, mounts or accessories.
|
(2)
|
One basis point (bps) is equal to 1/100th of 1%.
|
(3)
|
We define adjusted EBITDA as net income (loss) adjusted to exclude the impact of: provision for income taxes, interest income, interest expense, depreciation and amortization, point of purchase (POP) display amortization, stock-based compensation, impairment charges, and restructuring and other costs.
|
(4)
|
We define non-GAAP net income (loss) as net income (loss) adjusted to exclude stock-based compensation, acquisition-related costs, restructuring and other costs, non-cash interest expense, gain on sale and license of intellectual property and income tax adjustments. Acquisition-related costs include the amortization of acquired intangible assets and impairment write-downs (if applicable), as well as third-party transaction costs for legal and other professional services.
|
|
Year ended December 31,
|
|||||||||||||||||||
(dollars in thousands)
|
2019
|
|
2018
|
|
2017
|
|||||||||||||||
Revenue
|
$
|
1,194,651
|
|
|
100
|
%
|
|
$
|
1,148,337
|
|
|
100
|
%
|
|
$
|
1,179,741
|
|
|
100
|
%
|
Cost of revenue
|
781,862
|
|
|
65
|
|
|
786,903
|
|
|
69
|
|
|
795,211
|
|
|
67
|
|
|||
Gross profit
|
412,789
|
|
|
35
|
|
|
361,434
|
|
|
31
|
|
|
384,530
|
|
|
33
|
|
|||
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Research and development
|
142,894
|
|
|
12
|
|
|
167,296
|
|
|
15
|
|
|
229,265
|
|
|
19
|
|
|||
Sales and marketing
|
206,431
|
|
|
17
|
|
|
222,096
|
|
|
19
|
|
|
236,581
|
|
|
20
|
|
|||
General and administrative
|
65,797
|
|
|
6
|
|
|
66,004
|
|
|
6
|
|
|
82,144
|
|
|
7
|
|
|||
Total operating expenses
|
415,122
|
|
|
35
|
|
|
455,396
|
|
|
40
|
|
|
547,990
|
|
|
46
|
|
|||
Operating loss
|
(2,333
|
)
|
|
—
|
|
|
(93,962
|
)
|
|
(9
|
)
|
|
(163,460
|
)
|
|
(13
|
)
|
|||
Other income (expense):
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Interest expense
|
(19,229
|
)
|
|
(2
|
)
|
|
(18,683
|
)
|
|
(1
|
)
|
|
(13,660
|
)
|
|
(1
|
)
|
|||
Other income, net
|
2,492
|
|
|
—
|
|
|
4,970
|
|
|
—
|
|
|
733
|
|
|
—
|
|
|||
Total other expense, net
|
(16,737
|
)
|
|
(2
|
)
|
|
(13,713
|
)
|
|
(1
|
)
|
|
(12,927
|
)
|
|
(1
|
)
|
|||
Loss before income taxes
|
(19,070
|
)
|
|
(2
|
)
|
|
(107,675
|
)
|
|
(10
|
)
|
|
(176,387
|
)
|
|
(14
|
)
|
|||
Income tax (benefit) expense
|
(4,428
|
)
|
|
(1
|
)
|
|
1,359
|
|
|
—
|
|
|
6,486
|
|
|
1
|
|
|||
Net loss
|
$
|
(14,642
|
)
|
|
(1
|
)%
|
|
$
|
(109,034
|
)
|
|
(10
|
)%
|
|
$
|
(182,873
|
)
|
|
(15
|
)%
|
(camera units and dollars in thousands, except average selling price)
|
Year ended December 31,
|
|
2019 vs 2018
|
|
2018 vs 2017
|
||||||||||||
2019
|
|
2018
|
|
2017
|
|
% Change
|
|
% Change
|
|||||||||
Camera units shipped
|
4,260
|
|
|
4,337
|
|
|
4,303
|
|
|
(2
|
)%
|
|
1
|
%
|
|||
|
|
|
|
|
|
|
|
|
|
||||||||
Average selling price
|
$
|
280
|
|
|
$
|
265
|
|
|
$
|
274
|
|
|
6
|
|
|
(3
|
)
|
|
|
|
|
|
|
|
|
|
|
||||||||
Direct channel
|
$
|
548,322
|
|
|
$
|
551,095
|
|
|
$
|
634,888
|
|
|
(1
|
)
|
|
(13
|
)
|
Percentage of revenue
|
45.9
|
%
|
|
48.0
|
%
|
|
53.8
|
%
|
|
|
|
|
|||||
Distribution channel
|
$
|
646,329
|
|
|
$
|
597,242
|
|
|
$
|
544,853
|
|
|
8
|
|
|
10
|
|
Percentage of revenue
|
54.1
|
%
|
|
52.0
|
%
|
|
46.2
|
%
|
|
|
|
|
|||||
Total revenue
|
$
|
1,194,651
|
|
|
$
|
1,148,337
|
|
|
$
|
1,179,741
|
|
|
4
|
%
|
|
(3
|
)%
|
|
|
|
|
|
|
|
|
|
|
||||||||
Americas
|
$
|
523,975
|
|
|
$
|
494,797
|
|
|
$
|
582,917
|
|
|
6
|
%
|
|
(15
|
)%
|
Percentage of revenue
|
43.9
|
%
|
|
43.1
|
%
|
|
49.4
|
%
|
|
|
|
|
|||||
Europe, Middle East and Africa (EMEA)
|
$
|
359,187
|
|
|
$
|
366,438
|
|
|
$
|
333,454
|
|
|
(2
|
)
|
|
10
|
|
Percentage of revenue
|
30.0
|
%
|
|
31.9
|
%
|
|
28.3
|
%
|
|
|
|
|
|||||
Asia and Pacific (APAC)
|
$
|
311,489
|
|
|
$
|
287,102
|
|
|
$
|
263,370
|
|
|
8
|
|
|
9
|
|
Percentage of revenue
|
26.1
|
%
|
|
25.0
|
%
|
|
22.3
|
%
|
|
|
|
|
|||||
Total revenue
|
$
|
1,194,651
|
|
|
$
|
1,148,337
|
|
|
$
|
1,179,741
|
|
|
4
|
%
|
|
(3
|
)%
|
|
Year ended December 31,
|
|
2019 vs 2018
|
|
2018 vs 2017
|
||||||||||||
(dollars in thousands)
|
2019
|
|
2018
|
|
2017
|
|
% Change
|
|
% Change
|
||||||||
Cost of revenue
|
$
|
772,088
|
|
|
$
|
772,136
|
|
|
$
|
786,657
|
|
|
—
|
%
|
|
(2
|
)%
|
Stock-based compensation
|
1,902
|
|
|
1,954
|
|
|
1,935
|
|
|
(3
|
)
|
|
1
|
|
|||
Acquisition-related costs
|
7,818
|
|
|
11,434
|
|
|
5,985
|
|
|
(32
|
)
|
|
91
|
|
|||
Restructuring costs
|
54
|
|
|
1,379
|
|
|
634
|
|
|
(96
|
)
|
|
118
|
|
|||
Total cost of revenue
|
$
|
781,862
|
|
|
$
|
786,903
|
|
|
$
|
795,211
|
|
|
(1
|
)%
|
|
(1
|
)%
|
Gross margin
|
34.6
|
%
|
|
31.5
|
%
|
|
32.6
|
%
|
|
310 bps
|
|
|
(110) bps
|
|
|
Year ended December 31,
|
|
2019 vs 2018
|
|
2018 vs 2017
|
||||||||||||
(dollars in thousands)
|
2019
|
|
2018
|
|
2017
|
|
% Change
|
|
% Change
|
||||||||
Research and development
|
$
|
125,142
|
|
|
$
|
134,866
|
|
|
$
|
191,182
|
|
|
(7
|
)%
|
|
(29
|
)%
|
Stock-based compensation
|
17,167
|
|
|
19,636
|
|
|
24,963
|
|
|
(13
|
)
|
|
(21
|
)
|
|||
Acquisition-related costs
|
—
|
|
|
—
|
|
|
3,028
|
|
|
—
|
|
|
(100
|
)
|
|||
Restructuring costs
|
585
|
|
|
12,794
|
|
|
10,092
|
|
|
(95
|
)
|
|
27
|
|
|||
Total research and development
|
$
|
142,894
|
|
|
$
|
167,296
|
|
|
$
|
229,265
|
|
|
(15
|
)%
|
|
(27
|
)%
|
Percentage of revenue
|
12.0
|
%
|
|
14.6
|
%
|
|
19.4
|
%
|
|
|
|
|
|
Year ended December 31,
|
|
2019 vs 2018
|
|
2018 vs 2017
|
||||||||||||
(dollars in thousands)
|
2019
|
|
2018
|
|
2017
|
|
% Change
|
|
% Change
|
||||||||
Sales and marketing
|
$
|
198,074
|
|
|
$
|
207,346
|
|
|
$
|
219,036
|
|
|
(4
|
)%
|
|
(5
|
)%
|
Stock-based compensation
|
8,043
|
|
|
9,459
|
|
|
10,498
|
|
|
(15
|
)
|
|
(10
|
)
|
|||
Restructuring costs
|
314
|
|
|
5,291
|
|
|
7,047
|
|
|
(94
|
)
|
|
(25
|
)
|
|||
Total sales and marketing
|
$
|
206,431
|
|
|
$
|
222,096
|
|
|
$
|
236,581
|
|
|
(7
|
)%
|
|
(6
|
)%
|
Percentage of revenue
|
17.3
|
%
|
|
19.3
|
%
|
|
20.1
|
%
|
|
|
|
|
|
Year ended December 31,
|
|
2019 vs 2018
|
|
2018 vs 2017
|
||||||||||||
(dollars in thousands)
|
2019
|
|
2018
|
|
2017
|
|
% Change
|
|
% Change
|
||||||||
General and administrative
|
$
|
55,220
|
|
|
$
|
52,865
|
|
|
$
|
65,788
|
|
|
4
|
%
|
|
(20
|
)%
|
Stock-based compensation
|
10,076
|
|
|
9,838
|
|
|
13,859
|
|
|
2
|
|
|
(29
|
)
|
|||
Acquisition-related costs
|
—
|
|
|
22
|
|
|
(22
|
)
|
|
(100
|
)
|
|
(200
|
)
|
|||
Restructuring costs
|
501
|
|
|
3,279
|
|
|
2,519
|
|
|
(85
|
)
|
|
30
|
|
|||
Total general and administrative
|
$
|
65,797
|
|
|
$
|
66,004
|
|
|
$
|
82,144
|
|
|
—
|
%
|
|
(20
|
)%
|
Percentage of revenue
|
5.5
|
%
|
|
5.7
|
%
|
|
7.0
|
%
|
|
|
|
|
|
Year ended December 31,
|
|
2019 vs 2018
|
|
2018 vs 2017
|
||||||||||||
(dollars in thousands)
|
2019
|
|
2018
|
|
2017
|
|
% Change
|
|
% Change
|
||||||||
Interest expense
|
$
|
(19,229
|
)
|
|
$
|
(18,683
|
)
|
|
$
|
(13,660
|
)
|
|
3
|
%
|
|
37
|
%
|
Other income, net
|
2,492
|
|
|
4,970
|
|
|
733
|
|
|
(50
|
)
|
|
578
|
|
|||
Total other expense, net
|
$
|
(16,737
|
)
|
|
$
|
(13,713
|
)
|
|
$
|
(12,927
|
)
|
|
22
|
%
|
|
6
|
%
|
|
Year ended December 31,
|
|
2019 vs 2018
|
|
2018 vs 2017
|
||||||||||||
(dollars in thousands)
|
2019
|
|
2018
|
|
2017
|
|
% Change
|
|
% Change
|
||||||||
Income tax (benefit) expense
|
$
|
(4,428
|
)
|
|
$
|
1,359
|
|
|
$
|
6,486
|
|
|
(426
|
)%
|
|
(79
|
)%
|
Effective tax rate
|
23.2
|
%
|
|
(1.3
|
)%
|
|
(3.7
|
)%
|
|
|
|
|
|
Three months ended
|
||||||||||||||||||||||||||||||
(dollars in thousands, except per share amounts)
|
Dec. 31,
2019
|
|
Sept. 30,
2019 |
|
June 30,
2019
|
|
March 31,
2019 |
|
Dec. 31,
2018
|
|
Sept. 30,
2018 |
|
June 30,
2018
|
|
March 31,
2018 |
||||||||||||||||
Revenue
|
$
|
528,345
|
|
|
$
|
131,169
|
|
|
$
|
292,429
|
|
|
$
|
242,708
|
|
|
$
|
377,378
|
|
|
$
|
285,936
|
|
|
$
|
282,677
|
|
|
$
|
202,346
|
|
Gross profit
|
201,825
|
|
|
28,432
|
|
|
102,185
|
|
|
80,347
|
|
|
142,117
|
|
|
91,032
|
|
|
83,369
|
|
|
44,916
|
|
||||||||
Operating expenses (1)
|
105,725
|
|
|
99,630
|
|
|
109,132
|
|
|
100,635
|
|
|
109,150
|
|
|
112,386
|
|
|
114,205
|
|
|
119,655
|
|
||||||||
Net income (loss)
|
$
|
95,820
|
|
|
$
|
(74,810
|
)
|
|
$
|
(11,287
|
)
|
|
$
|
(24,365
|
)
|
|
$
|
31,671
|
|
|
$
|
(27,089
|
)
|
|
$
|
(37,269
|
)
|
|
$
|
(76,347
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Net income (loss) per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Basic
|
$
|
0.65
|
|
|
$
|
(0.51
|
)
|
|
$
|
(0.08
|
)
|
|
$
|
(0.17
|
)
|
|
$
|
0.22
|
|
|
$
|
(0.19
|
)
|
|
$
|
(0.27
|
)
|
|
$
|
(0.55
|
)
|
Diluted
|
$
|
0.65
|
|
|
$
|
(0.51
|
)
|
|
$
|
(0.08
|
)
|
|
$
|
(0.17
|
)
|
|
$
|
0.22
|
|
|
$
|
(0.19
|
)
|
|
$
|
(0.27
|
)
|
|
$
|
(0.55
|
)
|
(1)
|
Included in operating expenses were restructuring charges of $1.7 million for the quarter ended June 30, 2019, $4.0 million for the quarter ended September 30, 2018, and $16.7 million for the quarter ended March 31, 2018.
|
(dollars in thousands)
|
December 31, 2019
|
|
December 31, 2018
|
||||
Cash and cash equivalents
|
$
|
150,301
|
|
|
$
|
152,095
|
|
Marketable securities
|
14,847
|
|
|
45,417
|
|
||
Total cash, cash equivalents and marketable securities
|
$
|
165,148
|
|
|
$
|
197,512
|
|
Percentage of total assets
|
21
|
%
|
|
28
|
%
|
•
|
We expect that operating expenses and inventory purchases will constitute a material use of our cash balances. We intend to continue to manage our operating activities in line with our existing cash and available financial resources.
|
•
|
In March 2016, we entered into a credit agreement with a syndicate of banks that provided for a secured revolving credit facility under which we could borrow up to an aggregate of $250.0 million. Our credit facility terminates in March 2021. (See Note 4 Financing Arrangements, in the Notes to Consolidated Financial Statements for additional information.)
|
•
|
We have completed acquisitions in the past and we may evaluate additional possible acquisitions of, or strategic investments in, businesses, products and technologies that are complementary to our business, which may require the use of cash.
|
|
Year ended December 31,
|
|
2019 vs 2018
|
|
2018 vs 2017
|
||||||||||||
(in thousands)
|
2019
|
|
2018
|
|
2017
|
|
% Change
|
|
% Change
|
||||||||
Net cash provided by (used in):
|
|
|
|
|
|
|
|
|
|
|
|||||||
Operating activities
|
$
|
(24,444
|
)
|
|
$
|
(42,434
|
)
|
|
$
|
(36,853
|
)
|
|
(42
|
)%
|
|
15
|
%
|
Investing activities
|
$
|
22,771
|
|
|
$
|
(6,235
|
)
|
|
$
|
(43,097
|
)
|
|
(465
|
)%
|
|
(86
|
)%
|
Financing activities
|
$
|
(1,044
|
)
|
|
$
|
(1,481
|
)
|
|
$
|
88,594
|
|
|
(30
|
)%
|
|
(102
|
)%
|
•
|
the comparability of our on-going operating results over the periods presented;
|
•
|
the ability to identify trends in our underlying business; and
|
•
|
the comparison of our operating results against analyst financial models and operating results of other public companies that supplement their GAAP results with non-GAAP financial measures.
|
•
|
adjusted EBITDA does not reflect tax payments that reduce cash available to us;
|
•
|
adjusted EBITDA excludes depreciation and amortization and, although these are non-cash charges, the property and equipment being depreciated and amortized often will have to be replaced in the future, and adjusted EBITDA does not reflect any cash capital expenditure requirements for such replacements;
|
•
|
adjusted EBITDA excludes the amortization of POP display assets because it is a non-cash charge, and is treated similarly to depreciation of property and equipment and amortization of acquired intangible assets;
|
•
|
adjusted EBITDA and non-GAAP net income (loss) exclude the impairment of intangible assets because it is a non-cash charge that is inconsistent in amount and frequency;
|
•
|
adjusted EBITDA and non-GAAP net income (loss) exclude restructuring and other related costs which primarily include severance-related costs, stock-based compensation expenses, facilities consolidation charges recorded in connection with restructuring actions announced in the fourth quarter of 2016, first quarter of 2017 and first quarter of 2018, and the related ongoing operating lease cost of those facilities recorded under ASC 842. These expenses do not reflect expected future operating expenses and do not contribute to a meaningful evaluation of current operating performance or comparisons to the operating performance in other periods;
|
•
|
adjusted EBITDA and non-GAAP net income (loss) exclude stock-based compensation expense related to equity awards granted primarily to our workforce. We exclude stock-based compensation expense because we believe that the non-GAAP financial measures excluding this item provide meaningful supplemental information regarding operational performance. In particular, we note that companies calculate stock-based compensation expense for the variety of award types that they employ using different valuation methodologies and subjective assumptions. These non-cash charges are not factored into our internal evaluation of net income (loss) as we believe their inclusion would hinder our ability to assess core operational performance;
|
•
|
non-GAAP net income (loss) excludes acquisition-related costs including the amortization of acquired intangible assets (primarily consisting of acquired technology), the impairment of acquired intangible assets (if applicable), as well as third-party transaction costs incurred for legal and other professional services. These costs are not factored into our evaluation of potential acquisitions, or of our performance after completion of the acquisitions, because these costs are not related to our core operating performance or reflective of ongoing operating results in the period, and the frequency and amount of such costs are inconsistent and vary significantly based on the timing and magnitude of our acquisition transactions and the maturities of the businesses being acquired. Although we exclude the amortization of acquired intangible assets from our non-
|
•
|
non-GAAP net income (loss) excludes non-cash interest expense. In connection with the issuance of the Convertible Senior Notes in April 2017, we are required to recognize non-cash interest expense in accordance with the authoritative accounting guidance for convertible debt that may be settled in cash;
|
•
|
non-GAAP net income (loss) excludes a gain on the sale and license of intellectual property. This gain is not related to our core operating performance or reflective of ongoing operating results in the period, and the frequency and amount of such gains are inconsistent;
|
•
|
non-GAAP net income (loss) includes income tax adjustments. We utilize a cash-based non-GAAP tax expense approach (based upon expected annual cash payments for income taxes) for evaluating operating performance as well as for planning and forecasting purposes. This non-GAAP tax approach eliminates the effects of period specific items, which can vary in size and frequency and does not necessarily reflect our long-term operations. Historically, we computed a non-GAAP tax rate based on non-GAAP pre-tax income on a quarterly basis, which considered the income tax effects of the adjustments above; and
|
•
|
other companies may calculate these non-GAAP financial measures differently than we do, limiting their usefulness as comparative measures.
|
|
Three months ended December 31,
|
||||||
(in thousands)
|
2019
|
|
2018
|
||||
Net income
|
$
|
95,820
|
|
|
$
|
31,671
|
|
Income tax (benefit) expense
|
(3,928
|
)
|
|
1,655
|
|
||
Interest expense, net
|
5,032
|
|
|
4,470
|
|
||
Depreciation and amortization
|
6,445
|
|
|
7,290
|
|
||
POP display amortization
|
1,666
|
|
|
2,788
|
|
||
Stock-based compensation
|
7,028
|
|
|
9,716
|
|
||
Restructuring and other costs
|
29
|
|
|
1,217
|
|
||
Adjusted EBITDA
|
$
|
112,092
|
|
|
$
|
58,807
|
|
|
Year ended December 31,
|
||||||||||||||||||
(in thousands)
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
||||||||||
Net income (loss)
|
$
|
(14,642
|
)
|
|
$
|
(109,034
|
)
|
|
$
|
(182,873
|
)
|
|
$
|
(419,003
|
)
|
|
$
|
36,131
|
|
Income tax (benefit) expense
|
(4,428
|
)
|
|
1,359
|
|
|
6,486
|
|
|
43,829
|
|
|
16,454
|
|
|||||
Interest expense
|
17,872
|
|
|
17,278
|
|
|
12,804
|
|
|
1,401
|
|
|
234
|
|
|||||
Depreciation and amortization
|
26,268
|
|
|
35,063
|
|
|
41,478
|
|
|
41,639
|
|
|
28,981
|
|
|||||
POP display amortization
|
7,504
|
|
|
13,482
|
|
|
19,190
|
|
|
19,623
|
|
|
16,829
|
|
|||||
Stock-based compensation
|
37,188
|
|
|
40,887
|
|
|
51,255
|
|
|
69,527
|
|
|
80,680
|
|
|||||
Impairment of intangible assets
|
—
|
|
|
—
|
|
|
—
|
|
|
7,088
|
|
|
—
|
|
|||||
Restructuring costs
|
2,196
|
|
|
22,743
|
|
|
20,292
|
|
|
43,089
|
|
|
—
|
|
|||||
Adjusted EBITDA
|
$
|
71,958
|
|
|
$
|
21,778
|
|
|
$
|
(31,368
|
)
|
|
$
|
(192,807
|
)
|
|
$
|
179,309
|
|
|
Three months ended December 31,
|
||||||
(in thousands, except per share data)
|
2019
|
|
2018
|
||||
Net income
|
$
|
95,820
|
|
|
$
|
31,671
|
|
Stock-based compensation
|
7,028
|
|
|
9,716
|
|
||
Acquisition-related costs
|
1,864
|
|
|
2,101
|
|
||
Restructuring and other costs
|
29
|
|
|
1,217
|
|
||
Non-cash interest expense
|
2,354
|
|
|
2,124
|
|
||
Gain on sale and license of intellectual property
|
—
|
|
|
(5,000
|
)
|
||
Income tax adjustments
|
(4,597
|
)
|
|
527
|
|
||
Non-GAAP net income
|
$
|
102,498
|
|
|
$
|
42,356
|
|
|
|
|
|
||||
GAAP diluted net income per share
|
$
|
0.65
|
|
|
$
|
0.22
|
|
Non-GAAP diluted net income per share
|
$
|
0.70
|
|
|
$
|
0.30
|
|
|
|
|
|
||||
Shares for diluted net income per share
|
147,052
|
|
|
143,401
|
|
|
Year ended December 31,
|
||||||||||||||||||
(in thousands)
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
||||||||||
Net income (loss)
|
$
|
(14,642
|
)
|
|
$
|
(109,034
|
)
|
|
$
|
(182,873
|
)
|
|
$
|
(419,003
|
)
|
|
$
|
36,131
|
|
Stock-based compensation
|
37,188
|
|
|
40,887
|
|
|
51,255
|
|
|
69,527
|
|
|
80,680
|
|
|||||
Acquisition-related costs
|
7,818
|
|
|
11,456
|
|
|
8,991
|
|
|
17,346
|
|
|
5,370
|
|
|||||
Restructuring costs
|
2,196
|
|
|
22,743
|
|
|
20,292
|
|
|
43,089
|
|
|
—
|
|
|||||
Non-cash interest expense
|
8,987
|
|
|
8,112
|
|
|
5,345
|
|
|
—
|
|
|
—
|
|
|||||
Gain on sale and license of intellectual property
|
—
|
|
|
(5,000
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Income tax adjustments (1)
|
(6,292
|
)
|
|
(1,073
|
)
|
|
1,123
|
|
|
87,794
|
|
|
(10,617
|
)
|
|||||
Non-GAAP net income (loss)
|
$
|
35,255
|
|
|
$
|
(31,909
|
)
|
|
$
|
(95,867
|
)
|
|
$
|
(201,247
|
)
|
|
$
|
111,564
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
GAAP diluted net income (loss) per share
|
$
|
(0.10
|
)
|
|
$
|
(0.78
|
)
|
|
$
|
(1.32
|
)
|
|
$
|
(3.01
|
)
|
|
$
|
0.25
|
|
Non-GAAP diluted net income (loss) per share
|
$
|
0.24
|
|
|
$
|
(0.23
|
)
|
|
$
|
(0.69
|
)
|
|
$
|
(1.44
|
)
|
|
$
|
0.76
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
GAAP shares for diluted net income (loss) per share
|
144,891
|
|
|
139,495
|
|
|
138,056
|
|
|
139,425
|
|
|
146,486
|
|
|||||
Add: effect of dilutive shares
|
1,580
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Non-GAAP shares for diluted net income (loss) per share
|
146,471
|
|
|
139,495
|
|
|
138,056
|
|
|
139,425
|
|
|
146,486
|
|
(1)
|
Beginning in the first quarter of 2017, we implemented a cash-based non-GAAP expense approach (based upon expected annual cash payments for income taxes) for evaluating operating performance as well as for planning and forecasting purposes. This non-GAAP approach eliminates the effects of period specific items, which can vary in size and frequency and does not necessarily reflect our long-term operations. Historically, we computed a non-GAAP tax rate based on non-GAAP pre-tax income on a quarterly basis, which considered the income tax effects of the adjustments above.
|
|
Page
|
(in thousands, except par values)
|
December 31, 2019
|
|
December 31, 2018
|
||||
Assets
|
|
|
|
||||
Current assets:
|
|
|
|
||||
Cash and cash equivalents
|
$
|
150,301
|
|
|
$
|
152,095
|
|
Marketable securities
|
14,847
|
|
|
45,417
|
|
||
Accounts receivable, net
|
200,634
|
|
|
129,216
|
|
||
Inventory
|
144,236
|
|
|
116,458
|
|
||
Prepaid expenses and other current assets
|
25,958
|
|
|
30,887
|
|
||
Total current assets
|
535,976
|
|
|
474,073
|
|
||
Property and equipment, net
|
36,539
|
|
|
46,567
|
|
||
Operating lease right-of-use assets
|
53,121
|
|
|
—
|
|
||
Intangible assets, net
|
5,247
|
|
|
13,065
|
|
||
Goodwill
|
146,459
|
|
|
146,459
|
|
||
Other long-term assets
|
15,461
|
|
|
18,195
|
|
||
Total assets
|
$
|
792,803
|
|
|
$
|
698,359
|
|
|
|
|
|
||||
Liabilities and Stockholders’ Equity
|
|
|
|
||||
Current liabilities:
|
|
|
|
||||
Accounts payable
|
$
|
160,695
|
|
|
$
|
148,478
|
|
Accrued expenses and other current liabilities
|
141,790
|
|
|
135,892
|
|
||
Short-term operating lease liabilities
|
9,099
|
|
|
—
|
|
||
Deferred revenue
|
15,467
|
|
|
15,129
|
|
||
Total current liabilities
|
327,051
|
|
|
299,499
|
|
||
Long-term taxes payable
|
13,726
|
|
|
19,553
|
|
||
Long-term debt
|
148,810
|
|
|
138,992
|
|
||
Long-term operating lease liabilities
|
62,961
|
|
|
—
|
|
||
Other long-term liabilities
|
6,726
|
|
|
28,203
|
|
||
Total liabilities
|
559,274
|
|
|
486,247
|
|
||
|
|
|
|
||||
Commitments, contingencies and guarantees (Note 9)
|
|
|
|
|
|||
|
|
|
|
||||
Stockholders’ equity:
|
|
|
|
||||
Preferred stock, $0.0001 par value, 5,000 shares authorized; none issued
|
—
|
|
|
—
|
|
||
Common stock and additional paid-in capital, $0.0001 par value, 500,000 Class A shares authorized, 117,922 and 105,170 shares issued and outstanding, respectively; 150,000 Class B shares authorized, 28,897 and 35,897 shares issued and outstanding, respectively
|
930,875
|
|
|
894,755
|
|
||
Treasury stock, at cost, 10,710 and 10,710 shares, respectively
|
(113,613
|
)
|
|
(113,613
|
)
|
||
Accumulated deficit
|
(583,733
|
)
|
|
(569,030
|
)
|
||
Total stockholders’ equity
|
233,529
|
|
|
212,112
|
|
||
Total liabilities and stockholders’ equity
|
$
|
792,803
|
|
|
$
|
698,359
|
|
|
Year ended December 31,
|
||||||||||
(in thousands, except per share data)
|
2019
|
|
2018
|
|
2017
|
||||||
Revenue
|
$
|
1,194,651
|
|
|
$
|
1,148,337
|
|
|
$
|
1,179,741
|
|
Cost of revenue
|
781,862
|
|
|
786,903
|
|
|
795,211
|
|
|||
Gross profit
|
412,789
|
|
|
361,434
|
|
|
384,530
|
|
|||
Operating expenses:
|
|
|
|
|
|
||||||
Research and development
|
142,894
|
|
|
167,296
|
|
|
229,265
|
|
|||
Sales and marketing
|
206,431
|
|
|
222,096
|
|
|
236,581
|
|
|||
General and administrative
|
65,797
|
|
|
66,004
|
|
|
82,144
|
|
|||
Total operating expenses
|
415,122
|
|
|
455,396
|
|
|
547,990
|
|
|||
Operating loss
|
(2,333
|
)
|
|
(93,962
|
)
|
|
(163,460
|
)
|
|||
Other income (expense):
|
|
|
|
|
|
||||||
Interest expense
|
(19,229
|
)
|
|
(18,683
|
)
|
|
(13,660
|
)
|
|||
Other income, net
|
2,492
|
|
|
4,970
|
|
|
733
|
|
|||
Total other expense, net
|
(16,737
|
)
|
|
(13,713
|
)
|
|
(12,927
|
)
|
|||
Loss before income taxes
|
(19,070
|
)
|
|
(107,675
|
)
|
|
(176,387
|
)
|
|||
Income tax (benefit) expense
|
(4,428
|
)
|
|
1,359
|
|
|
6,486
|
|
|||
Net loss
|
$
|
(14,642
|
)
|
|
$
|
(109,034
|
)
|
|
$
|
(182,873
|
)
|
|
|
|
|
|
|
||||||
Basic and diluted net loss per share
|
$
|
(0.10
|
)
|
|
$
|
(0.78
|
)
|
|
$
|
(1.32
|
)
|
|
|
|
|
|
|
||||||
Weighted-average number of shares outstanding, basic and diluted
|
144,891
|
|
|
139,495
|
|
|
138,056
|
|
|
Common stock and additional paid-in capital
|
|
Treasury stock
|
|
Accumulated
deficit
|
|
Stockholders’ equity
|
||||||||||
(in thousands)
|
Shares
|
Amount
|
|
Amount
|
|
|
|||||||||||
Balances at December 31, 2016
|
141,359
|
|
$
|
757,226
|
|
|
$
|
(35,613
|
)
|
|
$
|
(274,668
|
)
|
|
$
|
446,945
|
|
Common stock issued under employee benefit plans, net of shares withheld for tax
|
4,807
|
|
9,732
|
|
|
—
|
|
|
—
|
|
|
9,732
|
|
||||
Taxes paid related to net share settlements
|
—
|
|
(12,118
|
)
|
|
—
|
|
|
—
|
|
|
(12,118
|
)
|
||||
Stock-based compensation expense
|
—
|
|
54,037
|
|
|
—
|
|
|
—
|
|
|
54,037
|
|
||||
Repurchase of common stock under Prepaid Forward contract
|
(9,166
|
)
|
(1
|
)
|
|
(78,000
|
)
|
|
—
|
|
|
(78,001
|
)
|
||||
Issuance of Convertible Note
|
—
|
|
45,211
|
|
|
—
|
|
|
—
|
|
|
45,211
|
|
||||
Cumulative effect of adoption of new accounting standard
|
—
|
|
365
|
|
|
—
|
|
|
15,407
|
|
|
15,772
|
|
||||
Net loss
|
—
|
|
—
|
|
|
—
|
|
|
(182,873
|
)
|
|
(182,873
|
)
|
||||
Balances at December 31, 2017
|
137,000
|
|
854,452
|
|
|
(113,613
|
)
|
|
(442,134
|
)
|
|
298,705
|
|
||||
Common stock issued under employee benefit plans, net of shares withheld for tax
|
4,067
|
|
5,099
|
|
|
—
|
|
|
—
|
|
|
5,099
|
|
||||
Taxes paid related to net share settlements
|
—
|
|
(6,650
|
)
|
|
—
|
|
|
—
|
|
|
(6,650
|
)
|
||||
Stock-based compensation expense
|
—
|
|
41,854
|
|
|
—
|
|
|
—
|
|
|
41,854
|
|
||||
Cumulative effect of adoption of new accounting standard
|
—
|
|
—
|
|
|
—
|
|
|
(17,862
|
)
|
|
(17,862
|
)
|
||||
Net loss
|
—
|
|
—
|
|
|
—
|
|
|
(109,034
|
)
|
|
(109,034
|
)
|
||||
Balances at December 31, 2018
|
141,067
|
|
894,755
|
|
|
(113,613
|
)
|
|
(569,030
|
)
|
|
212,112
|
|
||||
Common stock issued under employee benefit plans, net of shares withheld for tax
|
5,751
|
|
5,553
|
|
|
—
|
|
|
—
|
|
|
5,553
|
|
||||
Taxes paid related to net share settlements
|
—
|
|
(6,618
|
)
|
|
—
|
|
|
—
|
|
|
(6,618
|
)
|
||||
Stock-based compensation expense (Note 6)
|
—
|
|
37,185
|
|
|
—
|
|
|
—
|
|
|
37,185
|
|
||||
Cumulative effect of adoption of new accounting standard (Note 1)
|
—
|
|
—
|
|
|
—
|
|
|
(61
|
)
|
|
(61
|
)
|
||||
Net loss
|
—
|
|
—
|
|
|
—
|
|
|
(14,642
|
)
|
|
(14,642
|
)
|
||||
Balances at December 31, 2019
|
146,818
|
|
$
|
930,875
|
|
|
$
|
(113,613
|
)
|
|
$
|
(583,733
|
)
|
|
$
|
233,529
|
|
|
Year ended December 31,
|
||||||||||
(in thousands)
|
2019
|
|
2018
|
|
2017
|
||||||
Operating activities:
|
|
|
|
|
|
||||||
Net loss
|
$
|
(14,642
|
)
|
|
$
|
(109,034
|
)
|
|
$
|
(182,873
|
)
|
Adjustments to reconcile net loss to net cash used in operating activities:
|
|
|
|
|
|
||||||
Depreciation and amortization
|
26,268
|
|
|
35,063
|
|
|
41,478
|
|
|||
Non-cash operating lease cost
|
6,990
|
|
|
—
|
|
|
—
|
|
|||
Stock-based compensation
|
37,188
|
|
|
40,887
|
|
|
51,255
|
|
|||
Deferred income taxes
|
(32
|
)
|
|
(389
|
)
|
|
(2,527
|
)
|
|||
Non-cash restructuring charges
|
(199
|
)
|
|
6,282
|
|
|
7,315
|
|
|||
Non-cash interest expense
|
8,987
|
|
|
8,112
|
|
|
5,345
|
|
|||
Gain on sale and license of intellectual property
|
—
|
|
|
(5,000
|
)
|
|
—
|
|
|||
Other
|
(1,182
|
)
|
|
1,696
|
|
|
4,094
|
|
|||
Changes in operating assets and liabilities:
|
|
|
|
|
|
||||||
Accounts receivable, net
|
(71,269
|
)
|
|
(16,460
|
)
|
|
52,278
|
|
|||
Inventory
|
(27,778
|
)
|
|
34,093
|
|
|
16,641
|
|
|||
Prepaid expenses and other assets
|
7,486
|
|
|
35,390
|
|
|
9,303
|
|
|||
Accounts payable and other liabilities
|
3,210
|
|
|
(70,400
|
)
|
|
(44,411
|
)
|
|||
Deferred revenue
|
529
|
|
|
(2,674
|
)
|
|
5,249
|
|
|||
Net cash used in operating activities
|
(24,444
|
)
|
|
(42,434
|
)
|
|
(36,853
|
)
|
|||
|
|
|
|
|
|
||||||
Investing activities:
|
|
|
|
|
|
||||||
Purchases of property and equipment, net
|
(8,348
|
)
|
|
(11,004
|
)
|
|
(24,061
|
)
|
|||
Purchases of marketable securities
|
(43,636
|
)
|
|
(57,731
|
)
|
|
(52,318
|
)
|
|||
Maturities of marketable securities
|
56,888
|
|
|
57,500
|
|
|
21,659
|
|
|||
Sale of marketable securities
|
17,867
|
|
|
—
|
|
|
11,623
|
|
|||
Proceeds from the sale and license of intellectual property
|
—
|
|
|
5,000
|
|
|
—
|
|
|||
Net cash provided by (used in) investing activities
|
22,771
|
|
|
(6,235
|
)
|
|
(43,097
|
)
|
|||
|
|
|
|
|
|
||||||
Financing activities:
|
|
|
|
|
|
||||||
Proceeds from issuance of common stock
|
5,574
|
|
|
5,169
|
|
|
9,751
|
|
|||
Taxes paid related to net share settlement of equity awards
|
(6,618
|
)
|
|
(6,650
|
)
|
|
(12,118
|
)
|
|||
Proceeds from issuance of convertible senior notes
|
—
|
|
|
—
|
|
|
175,000
|
|
|||
Prepayment of forward stock repurchase transaction
|
—
|
|
|
—
|
|
|
(78,000
|
)
|
|||
Payment of deferred acquisition-related consideration
|
—
|
|
|
—
|
|
|
(75
|
)
|
|||
Payment of debt issuance costs
|
—
|
|
|
—
|
|
|
(5,964
|
)
|
|||
Proceeds from borrowings
|
20,000
|
|
|
—
|
|
|
—
|
|
|||
Repayment of borrowings
|
(20,000
|
)
|
|
—
|
|
|
—
|
|
|||
Net cash provided by (used in) financing activities
|
(1,044
|
)
|
|
(1,481
|
)
|
|
88,594
|
|
|||
Effect of exchange rate changes on cash and cash equivalents
|
923
|
|
|
(259
|
)
|
|
1,746
|
|
|||
Net change in cash and cash equivalents
|
(1,794
|
)
|
|
(50,409
|
)
|
|
10,390
|
|
|||
Cash and cash equivalents at beginning of period
|
152,095
|
|
|
202,504
|
|
|
192,114
|
|
|||
Cash and cash equivalents at end of period
|
$
|
150,301
|
|
|
$
|
152,095
|
|
|
$
|
202,504
|
|
|
|
|
|
|
|
||||||
Supplementary cash flow disclosure:
|
|
|
|
|
|
Cash paid for interest
|
$
|
6,179
|
|
|
$
|
6,125
|
|
|
$
|
3,114
|
|
Cash paid (refunded) for income taxes, net
|
$
|
176
|
|
|
$
|
(32,090
|
)
|
|
$
|
8,370
|
|
Non-cash investing and financing activities:
|
|
|
|
|
|
||||||
Purchases of property and equipment included in accounts payable and accrued liabilities
|
$
|
316
|
|
|
$
|
223
|
|
|
$
|
5,785
|
|
Level 1
|
Valuations based on quoted prices in active markets for identical assets or liabilities that the Company has the ability to directly access.
|
Level 2
|
Valuations based on quoted prices for similar assets or liabilities; valuations for interest-bearing securities based on non-daily quoted prices in active markets; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable data for substantially the full term of the assets or liabilities.
|
Level 3
|
Valuations based on inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.
|
•
|
Operating leases were previously not recorded on the Company’s consolidated balance sheets.
|
•
|
The Company calculated a liability for future costs to be incurred under a lease for its remaining term without economic benefit to the Company upon determination of a cease-use date. The fair value of the liability was determined based on remaining lease payments, estimated sublease income and the effects of any prepaid or deferred items recognized under the lease.
|
•
|
The Company recognized revenue when persuasive evidence of an arrangement existed, delivery had occurred, the sales price was fixed and determinable and collectability was reasonably assured.
|
•
|
The Company allocated the transaction price based on its best estimate of the selling price (BESP). The Company’s process for determining BESP was materially the same as its’ current allocation of the transaction price to each performance obligations.
|
•
|
Sales incentives were recorded as a reduction to revenue in the period the incentives were offered to customers ore the related revenue was recognized, whichever was later.
|
Standard
|
|
Description
|
|
Company’s date of adoption
|
|
Effect on the consolidated financial statements or other significant matters
|
Standards that were adopted
|
|
|
|
|
||
Leases
ASU No.
2016-02,
2018-10,
2018-11, 2019-01, (ASC 842)
|
|
This standard replaces existing lease guidance for lessees and requires operating leases to be recognized on the balance sheet. Under the new standard, lessees recognize a lease liability for the present value of future lease payments and a corresponding right-to-use asset.
|
|
January 1, 2019
|
|
The new standard was applied using a modified retrospective approach. Prior periods were not retrospectively adjusted.
The Company completed its analysis of the impact of the standard by reviewing its lease agreements to identify changes resulting from applying the requirements of the new standard. The Company elected to utilize a package of practical expedients, which among other things, allowed the Company to maintain its existing classification of its current leases. The Company also elected the hindsight practical expedient to determine a reasonably certain lease term for existing leases. Additionally, the Company made a policy election to maintain its previous lease accounting for leases with an initial term of 12 months or less. Furthermore, the Company made the policy election to not separate non-lease components from lease components. The Company’s analysis of its lease agreements under the new standard resulted in the recognition of lease liabilities of $88.4 million and lease assets of $60.1 million on its consolidated balance sheet as of January 1, 2019. The new standard did not have a material impact on the Company’s consolidated income statement and consolidated statement of cash flows.
|
(in thousands)
|
Balance at
December 31, 2018
|
|
Adjustment due to ASC 842
|
|
Balance at
January 1, 2019
|
||||||
Operating lease right-of-use assets
|
$
|
—
|
|
|
$
|
60,111
|
|
|
$
|
60,111
|
|
Property and equipment, net (1)
|
46,567
|
|
|
(57
|
)
|
|
46,510
|
|
|||
Accrued expenses and other current liabilities (2)
|
135,892
|
|
|
(4,332
|
)
|
|
131,560
|
|
|||
Short-term operating lease liabilities
|
—
|
|
|
10,812
|
|
|
10,812
|
|
|||
Long-term operating lease liabilities
|
—
|
|
|
77,545
|
|
|
77,545
|
|
|||
Other long-term liabilities (2)
|
28,203
|
|
|
(23,900
|
)
|
|
4,303
|
|
|||
Accumulated deficit
|
(569,030
|
)
|
|
(61
|
)
|
|
(569,091
|
)
|
(1)
|
Represents the reclassification of leasehold acquisition costs to operating lease right-of-use assets.
|
(2)
|
Represents the reclassification of deferred rent, tenant incentives and accrued cease-use charges to operating lease right-of-use assets.
|
Standard
|
|
Description
|
|
Expected date of adoption
|
|
Effect on the consolidated financial statements or other significant matters
|
Standards not yet adopted
|
|
|
|
|
||
Intangible - Goodwill and Other
ASU No. 2017-04 (Topic 350)
|
|
This standard simplifies the accounting for goodwill and removes Step 2 of the annual goodwill impairment test. Upon adoption, goodwill impairment will be determined based on the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017, and requires use of a prospective transition method.
|
|
January 1, 2020
|
|
The Company does not expect that the adoption of this standard will have a material impact on its consolidated financial statements and related disclosures.
|
Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments
ASU No. 2016-13
(Topic 326)
|
|
The standard changes the impairment model for most financial assets and replaces the existing incurred loss model with a current expected credit loss (CECL) model. The standard should be applied on a modified retrospective approach.
|
|
January 1, 2020
|
|
The Company’s allowance for doubtful accounts and valuation of available-for-sale securities are subject to this standard. The Company has finalized its analysis of adopting this standard and concluded the standard will not have a material impact on its consolidated financial statements and related disclosures.
|
|
December 31, 2019
|
|
December 31, 2018
|
||||||||||||||||||||
(in thousands)
|
Level 1
|
|
Level 2
|
|
Total
|
|
Level 1
|
|
Level 2
|
|
Total
|
||||||||||||
Cash equivalents (1):
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Money market funds
|
$
|
4,413
|
|
|
$
|
—
|
|
|
$
|
4,413
|
|
|
$
|
10,901
|
|
|
$
|
—
|
|
|
$
|
10,901
|
|
Commercial paper
|
—
|
|
|
—
|
|
|
—
|
|
|
7,577
|
|
|
—
|
|
|
7,577
|
|
||||||
Total cash equivalents
|
$
|
4,413
|
|
|
$
|
—
|
|
|
$
|
4,413
|
|
|
$
|
18,478
|
|
|
$
|
—
|
|
|
$
|
18,478
|
|
Marketable securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. treasury securities
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
6,336
|
|
|
$
|
6,336
|
|
Commercial paper
|
—
|
|
|
—
|
|
|
—
|
|
|
20,657
|
|
|
—
|
|
|
20,657
|
|
||||||
Corporate debt securities
|
—
|
|
|
14,847
|
|
|
14,847
|
|
|
—
|
|
|
18,424
|
|
|
18,424
|
|
||||||
Total marketable securities
|
$
|
—
|
|
|
$
|
14,847
|
|
|
$
|
14,847
|
|
|
$
|
20,657
|
|
|
$
|
24,760
|
|
|
$
|
45,417
|
|
(1)
|
Included in cash and cash equivalents in the accompanying consolidated balance sheets. Cash balances were $145.9 million and $133.6 million as of December 31, 2019 and 2018, respectively.
|
(in thousands)
|
December 31, 2019
|
|
December 31, 2018
|
||||
Components
|
$
|
20,370
|
|
|
$
|
19,205
|
|
Finished goods
|
123,866
|
|
|
97,253
|
|
||
Total inventory
|
$
|
144,236
|
|
|
$
|
116,458
|
|
(in thousands)
|
Useful life
(in years)
|
|
December 31, 2019
|
|
December 31, 2018
|
||||
Leasehold improvements
|
1–9
|
|
$
|
50,736
|
|
|
$
|
66,198
|
|
Production, engineering and other equipment
|
1-4
|
|
45,649
|
|
|
43,019
|
|
||
Tooling
|
1–2
|
|
19,216
|
|
|
17,808
|
|
||
Computers and software
|
2
|
|
21,719
|
|
|
20,865
|
|
||
Furniture and office equipment
|
3
|
|
10,846
|
|
|
14,969
|
|
||
Tradeshow equipment and other
|
2–5
|
|
7,009
|
|
|
7,009
|
|
||
Construction in progress
|
|
|
45
|
|
|
80
|
|
||
Gross property and equipment
|
|
|
155,220
|
|
|
169,948
|
|
||
Less: Accumulated depreciation and amortization
|
|
|
(118,681
|
)
|
|
(123,381
|
)
|
||
Property and equipment, net
|
|
|
$
|
36,539
|
|
|
$
|
46,567
|
|
|
Useful life
(in months)
|
|
December 31, 2019
|
||||||||||
(in thousands)
|
|
|
Gross carrying value
|
|
Accumulated amortization
|
|
Net carrying value
|
||||||
Purchased technology
|
20-72
|
|
$
|
50,501
|
|
|
$
|
(45,269
|
)
|
|
$
|
5,232
|
|
Domain name
|
|
|
15
|
|
|
—
|
|
|
15
|
|
|||
Total intangible assets
|
|
|
$
|
50,516
|
|
|
$
|
(45,269
|
)
|
|
$
|
5,247
|
|
|
Useful life
(in months)
|
|
December 31, 2018
|
||||||||||
(in thousands)
|
|
|
Gross carrying value
|
|
Accumulated amortization
|
|
Net carrying value
|
||||||
Purchased technology
|
20-72
|
|
$
|
50,501
|
|
|
$
|
(37,451
|
)
|
|
$
|
13,050
|
|
Domain name
|
|
|
15
|
|
|
—
|
|
|
15
|
|
|||
Total intangible assets
|
|
|
$
|
50,516
|
|
|
$
|
(37,451
|
)
|
|
$
|
13,065
|
|
(in thousands)
|
December 31, 2019
|
|
December 31, 2018
|
||||
Point of purchase (POP) displays
|
$
|
7,595
|
|
|
$
|
9,130
|
|
Long-term deferred tax assets
|
864
|
|
|
945
|
|
||
Deposits and other
|
7,002
|
|
|
8,120
|
|
||
Other long-term assets
|
$
|
15,461
|
|
|
$
|
18,195
|
|
(in thousands)
|
December 31, 2019
|
|
December 31, 2018
|
||||
Accrued payables (1)
|
$
|
42,153
|
|
|
$
|
34,696
|
|
Accrued sales incentives
|
39,120
|
|
|
40,918
|
|
||
Employee related liabilities (1)
|
20,494
|
|
|
19,775
|
|
||
Return liability
|
14,854
|
|
|
13,100
|
|
||
Warranty liability
|
9,899
|
|
|
9,604
|
|
||
Inventory received
|
5,737
|
|
|
5,061
|
|
||
Customer deposits
|
2,063
|
|
|
3,105
|
|
||
Purchase order commitments
|
1,710
|
|
|
2,015
|
|
||
Income taxes payable
|
1,166
|
|
|
1,948
|
|
||
Other
|
4,594
|
|
|
5,670
|
|
||
Accrued expenses and other current liabilities
|
$
|
141,790
|
|
|
$
|
135,892
|
|
(1)
|
See Note 11 Restructuring charges for amounts associated with restructuring liabilities.
|
|
Year ended December 31,
|
||||||||||
(in thousands)
|
2019
|
|
2018
|
|
2017
|
||||||
Beginning balance
|
$
|
10,971
|
|
|
$
|
10,373
|
|
|
$
|
11,945
|
|
Charged to cost of revenue
|
16,933
|
|
|
24,725
|
|
|
20,139
|
|
|||
Settlement of warranty claims
|
(16,506
|
)
|
|
(24,127
|
)
|
|
(21,711
|
)
|
|||
Warranty liability
|
$
|
11,398
|
|
|
$
|
10,971
|
|
|
$
|
10,373
|
|
•
|
during any calendar quarter beginning after the calendar quarter ending on September 30, 2017, if the last reported sale price of Class A common stock for at least 20 trading days (whether or not consecutive) during the last 30 consecutive trading days of the immediately preceding fiscal quarter is greater than or equal to 130% of the conversion price of the Notes on each applicable trading day;
|
•
|
during the five-business day period following any five consecutive trading day period in which the trading price for the Notes is less than 98% of the product of the last reported sale price of Class A common stock and the conversion rate for the Notes on each such trading day; or
|
•
|
upon the occurrence of specified corporate events.
|
(in thousands)
|
December 31, 2019
|
|
Stock options outstanding
|
3,963
|
|
Restricted stock units outstanding
|
8,225
|
|
Performance stock units outstanding
|
788
|
|
Common stock available for future grants
|
32,358
|
|
Total common stock shares reserved for issuance
|
45,334
|
|
|
Shares
(in thousands)
|
|
Weighted-average
exercise price |
|
Weighted-average remaining contractual term (in years)
|
|
Aggregate intrinsic value
(in thousands) |
|||||
Outstanding at December 31, 2018
|
5,993
|
|
|
$
|
7.28
|
|
|
5.44
|
|
$
|
7,897
|
|
Granted
|
527
|
|
|
7.42
|
|
|
|
|
|
|||
Exercised
|
(2,158
|
)
|
|
0.75
|
|
|
|
|
|
|||
Forfeited/Cancelled
|
(399
|
)
|
|
14.29
|
|
|
|
|
|
|||
Outstanding at December 31, 2019
|
3,963
|
|
|
$
|
10.16
|
|
|
6.35
|
|
$
|
374
|
|
|
|
|
|
|
|
|
|
|||||
Vested and expected to vest at December 31, 2019
|
3,963
|
|
|
$
|
10.16
|
|
|
6.35
|
|
$
|
374
|
|
Exercisable at December 31, 2019
|
2,987
|
|
|
$
|
11.25
|
|
|
5.56
|
|
$
|
370
|
|
|
Shares
(in thousands)
|
|
Weighted-average grant date fair value
|
|||
Non-vested shares at December 31, 2018
|
7,217
|
|
|
$
|
8.15
|
|
Granted
|
6,104
|
|
|
5.70
|
|
|
Vested
|
(3,925
|
)
|
|
8.90
|
|
|
Forfeited
|
(1,171
|
)
|
|
7.25
|
|
|
Non-vested shares at December 31, 2019
|
8,225
|
|
|
$
|
6.11
|
|
|
Shares
(in thousands)
|
|
Weighted-average grant date fair value
|
|||
Non-vested shares at December 31, 2018
|
300
|
|
|
$
|
5.76
|
|
Granted
|
819
|
|
|
7.51
|
|
|
Forfeited
|
(331
|
)
|
|
5.93
|
|
|
Non-vested shares at December 31, 2019
|
788
|
|
|
$
|
7.51
|
|
|
Year ended December 31,
|
||||
|
2019
|
|
2018
|
|
2017
|
Volatility
|
50%-52%
|
|
51%
|
|
44%-49%
|
Expected term (years)
|
6.1
|
|
5.4-6.1
|
|
5.3-5.8
|
Risk-free interest rate
|
1.5%-2.2%
|
|
2.7%-3.0%
|
|
1.8%-2.1%
|
Dividend yield
|
—%
|
|
—%
|
|
—%
|
|
Year ended December 31,
|
||||
|
2019
|
|
2018
|
|
2017
|
Volatility
|
41%-54%
|
|
48%-53%
|
|
33%-36%
|
Expected term (years)
|
0.5
|
|
0.5
|
|
0.5
|
Risk-free interest rate
|
1.9%-2.5%
|
|
1.8%-2.2%
|
|
0.7%-1.2%
|
Dividend yield
|
—%
|
|
—%
|
|
—%
|
|
Year ended December 31,
|
||||||||||
(in thousands)
|
2019
|
|
2018
|
|
2017
|
||||||
Cost of revenue
|
$
|
1,902
|
|
|
$
|
1,954
|
|
|
$
|
1,935
|
|
Research and development
|
17,167
|
|
|
19,636
|
|
|
24,963
|
|
|||
Sales and marketing
|
8,043
|
|
|
9,459
|
|
|
10,498
|
|
|||
General and administrative
|
10,076
|
|
|
9,838
|
|
|
13,859
|
|
|||
Total stock-based compensation expense
|
$
|
37,188
|
|
|
$
|
40,887
|
|
|
$
|
51,255
|
|
|
Year ended December 31,
|
||||||||||
(in thousands, except per share data)
|
2019
|
|
2018
|
|
2017
|
||||||
Numerator:
|
|
|
|
|
|
||||||
Net loss
|
$
|
(14,642
|
)
|
|
$
|
(109,034
|
)
|
|
$
|
(182,873
|
)
|
|
|
|
|
|
|
||||||
Denominator:
|
|
|
|
|
|
||||||
Weighted-average common shares—basic and diluted for Class A and Class B common stock
|
144,891
|
|
|
139,495
|
|
|
138,056
|
|
|||
|
|
|
|
|
|
||||||
Basic and diluted net loss per share
|
$
|
(0.10
|
)
|
|
$
|
(0.78
|
)
|
|
$
|
(1.32
|
)
|
|
Year ended December 31,
|
|||||||
(in thousands)
|
2019
|
|
2018
|
|
2017
|
|||
Anti-dilutive stock-based awards
|
13,039
|
|
|
15,356
|
|
|
19,022
|
|
|
Year ended December 31,
|
||||||||||
(in thousands)
|
2019
|
|
2018
|
|
2017
|
||||||
United States
|
$
|
(28,233
|
)
|
|
$
|
(110,318
|
)
|
|
$
|
(123,325
|
)
|
Foreign
|
9,163
|
|
|
2,643
|
|
|
(53,062
|
)
|
|||
|
$
|
(19,070
|
)
|
|
$
|
(107,675
|
)
|
|
$
|
(176,387
|
)
|
|
Year ended December 31,
|
||||||||||
(in thousands)
|
2019
|
|
2018
|
|
2017
|
||||||
Current
|
|
|
|
|
|
||||||
Federal
|
$
|
(52
|
)
|
|
$
|
(2,821
|
)
|
|
$
|
(1,857
|
)
|
State
|
48
|
|
|
175
|
|
|
240
|
|
|||
Foreign
|
(4,391
|
)
|
|
4,394
|
|
|
10,631
|
|
|||
Total current
|
(4,395
|
)
|
|
1,748
|
|
|
9,014
|
|
|||
Deferred
|
|
|
|
|
|
||||||
Federal
|
—
|
|
|
248
|
|
|
(248
|
)
|
|||
Foreign
|
(33
|
)
|
|
(637
|
)
|
|
(2,280
|
)
|
|||
Total deferred
|
(33
|
)
|
|
(389
|
)
|
|
(2,528
|
)
|
|||
Income tax (benefit) expense
|
$
|
(4,428
|
)
|
|
$
|
1,359
|
|
|
$
|
6,486
|
|
|
Year ended December 31,
|
|||||||||||||||||||
|
2019
|
|
2018
|
|
2017
|
|||||||||||||||
(dollars in thousands)
|
$
|
|
%
|
|
$
|
|
%
|
|
$
|
|
%
|
|||||||||
Reconciliation to statutory rate
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Tax at federal statutory rate
|
$
|
(4,005
|
)
|
|
21.0
|
%
|
|
$
|
(22,612
|
)
|
|
21.0
|
%
|
|
$
|
(61,735
|
)
|
|
35.0
|
%
|
Change in valuation allowance
|
4,717
|
|
|
(24.7
|
)
|
|
42,772
|
|
|
(39.7
|
)
|
|
(36,497
|
)
|
|
20.7
|
|
|||
DTA rate change impact due to TCJA
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
73,423
|
|
|
(41.6
|
)
|
|||
Impact of foreign operations
|
(3,949
|
)
|
|
20.7
|
|
|
3,285
|
|
|
(3.1
|
)
|
|
34,039
|
|
|
(19.3
|
)
|
|||
Stock-based compensation
|
1,731
|
|
|
(9.1
|
)
|
|
10,974
|
|
|
(10.2
|
)
|
|
12,001
|
|
|
(6.8
|
)
|
|||
State income taxes, net of federal benefit
|
1,872
|
|
|
(9.8
|
)
|
|
(2,997
|
)
|
|
2.8
|
|
|
(6,469
|
)
|
|
3.7
|
|
|||
Impact of IRS audit
|
—
|
|
|
—
|
|
|
(9,687
|
)
|
|
9.0
|
|
|
—
|
|
|
—
|
|
|||
Restructuring adjustment
|
—
|
|
|
—
|
|
|
(18,694
|
)
|
|
17.4
|
|
|
—
|
|
|
—
|
|
|||
Tax credits
|
(5,123
|
)
|
|
26.8
|
|
|
(5,996
|
)
|
|
5.6
|
|
|
(9,957
|
)
|
|
5.6
|
|
|||
Permanent tax adjustments
|
305
|
|
|
(1.6
|
)
|
|
3,786
|
|
|
(3.5
|
)
|
|
—
|
|
|
—
|
|
|||
Other
|
24
|
|
|
(0.1
|
)
|
|
528
|
|
|
(0.6
|
)
|
|
1,681
|
|
|
(1.0
|
)
|
|||
Income tax provision at effective tax rate
|
$
|
(4,428
|
)
|
|
23.2
|
%
|
|
$
|
1,359
|
|
|
(1.3
|
)%
|
|
$
|
6,486
|
|
|
(3.7
|
)%
|
|
Year ended December 31,
|
||||||
(in thousands)
|
2019
|
|
2018
|
||||
Deferred tax assets:
|
|
|
|
||||
Net operating loss carryforwards
|
$
|
163,832
|
|
|
$
|
166,281
|
|
Tax credit carryforwards
|
75,624
|
|
|
70,189
|
|
||
Stock-based compensation
|
5,710
|
|
|
6,414
|
|
||
Allowance for returns
|
4,150
|
|
|
3,147
|
|
||
Intangible assets
|
5,384
|
|
|
4,591
|
|
||
Depreciation and amortization
|
—
|
|
|
609
|
|
||
Accruals and reserves
|
23,857
|
|
|
20,975
|
|
||
Total deferred tax assets
|
278,557
|
|
|
272,206
|
|
||
Valuation allowance
|
(277,693
|
)
|
|
(271,374
|
)
|
||
Net deferred tax assets, net of valuation allowance
|
$
|
864
|
|
|
$
|
832
|
|
|
Year ended December 31,
|
||||||||||
(in thousands)
|
2019
|
|
2018
|
|
2017
|
||||||
Balance at January 1
|
$
|
32,556
|
|
|
$
|
58,584
|
|
|
$
|
56,909
|
|
Increase related to current year tax positions
|
250
|
|
|
483
|
|
|
20,002
|
|
|||
Decrease related to tax rate change for current year tax positions
|
—
|
|
|
—
|
|
|
(2,299
|
)
|
|||
Increase related to prior year tax positions
|
—
|
|
|
445
|
|
|
—
|
|
|||
Decrease related to prior year tax positions
|
(5,628
|
)
|
|
(26,956
|
)
|
|
(3,927
|
)
|
|||
Decrease related to tax rate change for prior year tax positions
|
—
|
|
|
—
|
|
|
(12,101
|
)
|
|||
|
$
|
27,178
|
|
|
$
|
32,556
|
|
|
$
|
58,584
|
|
|
Year ended December 31,
|
||||||||||
(in thousands)
|
2019 (1)
|
|
2018 (2)
|
|
2017 (2)
|
||||||
Operating lease cost
|
$
|
17,811
|
|
|
$
|
13,649
|
|
|
$
|
19,128
|
|
Sublease income
|
(656
|
)
|
|
(765
|
)
|
|
(677
|
)
|
|||
Net lease cost
|
$
|
17,155
|
|
|
$
|
12,884
|
|
|
$
|
18,451
|
|
(1)
|
Operating lease cost includes variable lease costs, which are immaterial.
|
(2)
|
Represents rent expense and sublease income under ASC 840, Leases.
|
(in thousands)
|
|
Year ended December 31, 2019
|
||
Cash paid for amounts included in the measurement of lease liabilities
|
|
|
||
Operating cash flows from operating leases
|
|
$
|
14,015
|
|
Right-of-use assets obtained in exchange for new operating lease liabilities
|
|
13,287
|
|
|
|
December 31, 2019
|
Weighted-average remaining lease term (in years) - operating leases
|
|
6.44
|
Weighted-average discount rate - operating leases
|
|
6.2%
|
(in thousands)
|
|
December 31, 2019
|
||
2020
|
|
$
|
13,339
|
|
2021
|
|
13,651
|
|
|
2022
|
|
12,803
|
|
|
2023
|
|
12,035
|
|
|
2024
|
|
11,897
|
|
|
Thereafter
|
|
25,065
|
|
|
Total lease payments
|
|
88,790
|
|
|
Less: Imputed interest
|
|
(16,722
|
)
|
|
Present value of lease liabilities
|
|
$
|
72,068
|
|
(in thousands)
|
|
December 31, 2018
|
||
2019
|
|
$
|
14,845
|
|
2020
|
|
17,654
|
|
|
2021
|
|
17,763
|
|
|
2022
|
|
17,552
|
|
|
2023
|
|
17,052
|
|
|
Thereafter
|
|
22,951
|
|
|
Total lease payments
|
|
$
|
107,817
|
|
(in thousands)
|
Total
|
|
2020
|
|
2021
|
|
2022
|
|
2023
|
|
2024
|
|
Thereafter
|
||||||||||||||
Sponsorship commitments
|
$
|
3,215
|
|
|
$
|
1,682
|
|
|
$
|
1,083
|
|
|
$
|
450
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Other contractual commitments
|
36,614
|
|
|
22,006
|
|
|
12,867
|
|
|
1,741
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Long-term debt (1)
|
175,000
|
|
|
—
|
|
|
—
|
|
|
175,000
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Total contractual cash obligations
|
$
|
214,829
|
|
|
$
|
23,688
|
|
|
$
|
13,950
|
|
|
$
|
177,191
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
(1)
|
The Company's convertible senior notes are due April 2022. Refer to Note 4 Financing Arrangements.
|
|
December 31, 2019
|
|
December 31, 2018
|
Customer A
|
15%
|
|
*
|
Customer B
|
11%
|
|
11%
|
Customer C
|
*
|
|
12%
|
|
Year ended December 31,
|
||||||||||
(in thousands)
|
2019
|
|
2018
|
|
2017
|
||||||
Accounts receivable sold
|
$
|
120,728
|
|
|
$
|
126,220
|
|
|
$
|
178,300
|
|
Factoring fees
|
1,509
|
|
|
1,639
|
|
|
1,630
|
|
|
Year ended December 31,
|
||||
|
2019
|
|
2018
|
|
2017
|
Customer A
|
11%
|
|
13%
|
|
15%
|
|
Year ended December 31,
|
|
2019 vs 2018
|
|
2018 vs 2017
|
||||||||||||
(in thousands)
|
2019
|
|
2018
|
|
2017
|
|
% Change
|
|
% Change
|
||||||||
Americas
|
$
|
523,975
|
|
|
$
|
494,797
|
|
|
$
|
582,917
|
|
|
6
|
%
|
|
(15
|
)%
|
Europe, Middle East and Africa (EMEA)
|
359,187
|
|
|
366,438
|
|
|
333,454
|
|
|
(2
|
)
|
|
10
|
|
|||
Asia and Pacific (APAC)
|
311,489
|
|
|
287,102
|
|
|
263,370
|
|
|
8
|
|
|
9
|
|
|||
Total revenue
|
$
|
1,194,651
|
|
|
$
|
1,148,337
|
|
|
$
|
1,179,741
|
|
|
4
|
%
|
|
(3
|
)%
|
|
Year ended December 31,
|
||||||||||
(in thousands)
|
2019
|
|
2018
|
|
2017
|
||||||
Cost of revenue
|
$
|
54
|
|
|
$
|
1,379
|
|
|
$
|
634
|
|
Research and development
|
585
|
|
|
12,794
|
|
|
10,092
|
|
|||
Sales and marketing
|
314
|
|
|
5,291
|
|
|
7,047
|
|
|||
General and administrative
|
501
|
|
|
3,279
|
|
|
2,519
|
|
|||
Total restructuring charges
|
$
|
1,454
|
|
|
$
|
22,743
|
|
|
$
|
20,292
|
|
(in thousands)
|
Severance
|
|
Other
|
|
Total
|
||||||
Restructuring liability as of December 31, 2017
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Restructuring charges
|
14,107
|
|
|
3,686
|
|
|
17,793
|
|
|||
Cash paid
|
(12,460
|
)
|
|
(1,988
|
)
|
|
(14,448
|
)
|
|||
Non-cash settlements
|
(528
|
)
|
|
(1,299
|
)
|
|
(1,827
|
)
|
|||
Restructuring liability as of December 31, 2018
|
1,119
|
|
|
399
|
|
|
1,518
|
|
|||
Restructuring charges
|
—
|
|
|
8
|
|
|
8
|
|
|||
Cash paid
|
(1,095
|
)
|
|
(25
|
)
|
|
(1,120
|
)
|
|||
Non-cash reductions
|
(24
|
)
|
|
(264
|
)
|
|
(288
|
)
|
|||
Restructuring liability as of December 31, 2019
|
$
|
—
|
|
|
$
|
118
|
|
|
$
|
118
|
|
(in thousands)
|
Severance
|
|
Other
|
|
Total
|
||||||
Restructuring liability as of December 31, 2016
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Restructuring charges (1)
|
10,312
|
|
|
6,654
|
|
|
16,966
|
|
|||
Cash paid
|
(9,509
|
)
|
|
(151
|
)
|
|
(9,660
|
)
|
|||
Non-cash reductions
|
(803
|
)
|
|
(2,953
|
)
|
|
(3,756
|
)
|
|||
Restructuring liability as of December 31, 2017
|
—
|
|
|
3,550
|
|
|
3,550
|
|
|||
Restructuring charges (1)
|
—
|
|
|
4,783
|
|
|
4,783
|
|
|||
Cash paid
|
—
|
|
|
(3,293
|
)
|
|
(3,293
|
)
|
|||
Non-cash charges
|
—
|
|
|
627
|
|
|
627
|
|
|||
Restructuring liability as of December 31, 2018
|
—
|
|
|
5,667
|
|
|
5,667
|
|
|||
Restructuring charges (1)
|
—
|
|
|
1,395
|
|
|
1,395
|
|
|||
Cash paid
|
—
|
|
|
(2,257
|
)
|
|
(2,257
|
)
|
|||
Non-cash reductions
|
—
|
|
|
(335
|
)
|
|
(335
|
)
|
|||
Restructuring liability as of December 31, 2019
|
$
|
—
|
|
|
$
|
4,470
|
|
|
$
|
4,470
|
|
(1)
|
Includes lease termination charges, which is included in accrued expenses and other current liabilities, and other long-term liabilities in the accompanying consolidated balance sheets, and totaled $4.5 million as of December 31, 2019.
|
(in thousands)
|
Severance
|
|
Other
|
|
Total
|
||||||
Restructuring liability as of December 31, 2016
|
$
|
9,660
|
|
|
$
|
879
|
|
|
$
|
10,539
|
|
Restructuring charges
|
2,134
|
|
|
1,055
|
|
|
3,189
|
|
|||
Cash paid
|
(11,411
|
)
|
|
(1,884
|
)
|
|
(13,295
|
)
|
|||
Non-cash settlements
|
17
|
|
|
—
|
|
|
17
|
|
|||
Restructuring liability as of December 31, 2017
|
400
|
|
|
50
|
|
|
450
|
|
|||
Restructuring charges
|
143
|
|
|
—
|
|
|
143
|
|
|||
Cash paid
|
(244
|
)
|
|
—
|
|
|
(244
|
)
|
|||
Restructuring liability as of December 31, 2018
|
299
|
|
|
50
|
|
|
349
|
|
|||
Restructuring charges
|
51
|
|
|
—
|
|
|
51
|
|
|||
Cash paid
|
(78
|
)
|
|
—
|
|
|
(78
|
)
|
|||
Non-cash reductions
|
—
|
|
|
(50
|
)
|
|
(50
|
)
|
|||
Restructuring liability as of December 31, 2019
|
$
|
272
|
|
|
$
|
—
|
|
|
$
|
272
|
|
(in thousands)
|
Balance at Beginning of Year
|
|
Charges to Revenue
|
|
Charges (Benefits) to Expense
|
|
Charges to Other Accounts - Equity
|
|
Deductions/Write-offs
|
|
Balance at End of Year
|
||||||||||||
Allowance for doubtful accounts receivable:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Year ended December 31, 2019
|
$
|
500
|
|
|
$
|
—
|
|
|
$
|
616
|
|
|
$
|
—
|
|
|
$
|
(286
|
)
|
|
$
|
830
|
|
Year ended December 31, 2018
|
750
|
|
|
—
|
|
|
199
|
|
|
—
|
|
|
(449
|
)
|
|
500
|
|
||||||
Year ended December 31, 2017
|
1,281
|
|
|
—
|
|
|
(263
|
)
|
|
—
|
|
|
(268
|
)
|
|
750
|
|
||||||
Valuation allowance for deferred tax assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Year ended December 31, 2019
|
$
|
271,374
|
|
|
$
|
—
|
|
|
$
|
4,717
|
|
|
$
|
1,602
|
|
|
$
|
—
|
|
|
$
|
277,693
|
|
Year ended December 31, 2018
|
226,458
|
|
|
—
|
|
|
42,772
|
|
|
2,144
|
|
|
—
|
|
|
271,374
|
|
||||||
Year ended December 31, 2017
|
110,433
|
|
|
—
|
|
|
(36,497
|
)
|
|
152,522
|
|
|
—
|
|
|
226,458
|
|
1.
|
Financial Statements
|
2.
|
Financial Statement Schedules
|
3.
|
Exhibit Listing
|
Exhibit
|
|
|
Incorporated by Reference
|
Filed
|
|||
Number
|
|
Exhibit Title
|
Form
|
File No.
|
Exhibit
|
Filing Date
|
Herewith
|
|
Restated Certificate of Incorporation of the Registrant, with Certificate of Change of Registered Agent and/or Registered Office
|
10-K
|
001-36514
|
3.01
|
February 15, 2019
|
|
|
|
Amended and Restated Bylaws of the Registrant.
|
S-1
|
333-200038
|
3.02
|
November 10, 2014
|
|
|
|
Form of Registrant’s Class A common stock certificate.
|
S-1
|
333-196083
|
4.01
|
May 19, 2014
|
|
|
|
Description of Registrant’s Securities Registered Under Section 12 of the Exchange Act
|
|
|
|
|
X
|
|
|
Form of Indemnity Agreement by and between the Registrant and each of its directors and executive officers.
|
S-1
|
333-196083
|
10.01
|
May 19, 2014
|
|
|
|
Form of Change in Control Severance Agreement.
|
S-1
|
333-196083
|
10.09
|
May 19, 2014
|
|
|
|
2010 Equity Incentive Plan, as amended, and form of stock option agreement and restricted stock unit agreement.
|
S-1
|
333-196083
|
10.02
|
May 19, 2014
|
|
|
|
2014 Equity Incentive Plan, as amended, and forms thereunder.
|
10-Q
|
001-36514
|
10.03
|
July 29, 2016
|
|
|
|
2014 Employee Stock Purchase Plan and forms thereunder.
|
S-1/A
|
333-196083
|
10.04
|
June 11, 2014
|
|
|
|
Executive Severance Policy.
|
10-K
|
001-36514
|
10.06
|
February 15, 2019
|
|
|
|
Employment Letter to Nicholas Woodman from the Registrant, dated June 2, 2014.
|
S-1/A
|
333-196083
|
10.16
|
June 11, 2014
|
|
|
|
Waiver Agreement dated January 1, 2018 by and between Nicholas Woodman and the Registrant.
|
10-K
|
001-36514
|
10.17
|
February 16, 2018
|
|
|
|
Offer Letter to Eve Saltman from the Registrant, dated March 7, 2018.
|
10-Q
|
001-36514
|
10.02
|
May 4, 2018
|
|
|
|
Offer Letter to Brian McGee from the Registrant, dated September 3, 2015.
|
10-K
|
001-36514
|
10.12
|
February 16, 2017
|
|
|
|
Offer Letter to Sandor Barna from the Registrant, dated July 8, 2015
|
10-K
|
001-36514
|
10.11
|
February 15, 2019
|
|
|
|
Officer Letter to Sandor Barna from the Registrant, dated February 12, 2018
|
10-Q
|
001-36514
|
10.01
|
May 4, 2018
|
|
|
|
Office Lease Agreement, dated as of November 1, 2011, by and between Locon San Mateo, LLC and the Registrant, as amended, and other leases for the Registrant’s headquarters.
|
S-1
|
333-196083
|
10.12
|
May 19, 2014
|
|
|
|
Eighth amendment to Office Lease Agreement, by and between RAR2 - Clearview Business Park Owner QRS, LLC and the Registrant, dated February 24, 2016.
|
10-K
|
001-36514
|
10.15
|
February 16, 2017
|
|
|
Ninth amendment to Office Lease Agreement, by and between RAR2 - Clearview Business Park Owner QRS, LLC and the Registrant, dated August 3, 2016.
|
10-K
|
001-36514
|
10.16
|
February 16, 2017
|
|
|
|
Credit Agreement by and among Registrant, the Lenders party thereto and JPMorgan Chase Bank, N.A. dated March 25, 2016.
|
10-Q
|
001-36514
|
10.17
|
May 6, 2016
|
|
|
|
Forward Stock Purchase Transaction, dated April 6, 2017, between the Company and JPMorgan Chase Bank, National Association.
|
8-K
|
001-36514
|
10.1
|
April 7, 2017
|
|
|
|
First Amendment, dated August 12, 2016, to Office Lease Agreement dated November 1, 2011, between the Company and RAR2-Clearview Business Park Owner, LLC.
|
10-Q
|
001-36514
|
10.02
|
August 4, 2017
|
|
|
|
Tenth amendment to Office Lease Agreement by and between HG Clearview Owner LLC and the Registrant, dated April 30, 2019
|
10-Q
|
001-36514
|
10.01
|
May 10, 2019
|
|
|
|
Amendment No. 1, dated June 28, 2019, to Credit Agreement by and among Registrant, the Lenders party thereto and JPMorgan Chase Bank, N.A. dated March 25, 2016
|
|
|
|
|
X
|
|
|
Amendment No. 2, dated September 27, 2019, to Credit Agreement by and among Registrant, the Lenders party thereto and JPMorgan Chase Bank, N.A. dated March 25, 2016
|
|
|
|
|
X
|
|
|
List of Subsidiaries.
|
|
|
|
|
X
|
|
|
Consent of Independent Registered Public Accounting Firm.
|
|
|
|
|
X
|
|
|
Power of Attorney (included on the signature page to this Annual Report on Form 10-K).
|
|
|
|
|
X
|
|
|
Certification of Principal Executive Officer Required Under Rule 13(a)-14(a) and 15(d)-14(a) of the Securities Exchange Act of 1934, as amended.
|
|
|
|
|
X
|
|
|
Certification of Principal Financial Officer Required Under Rule 13(a)-14(a) and 15(d)-14(a) of the Securities Exchange Act of 1934, as amended.
|
|
|
|
|
X
|
|
|
Certification of the Chief Executive Officer and Chief Financial Officer Pursuant to 18 U.S.C. Section 1350.
|
|
|
|
|
X
|
|
101.INS
|
|
Inline XBRL Instance Document
|
|
|
|
|
X
|
101.SCH
|
|
Inline XBRL Taxonomy Extension Schema
|
|
|
|
|
X
|
101.CAL
|
|
Inline XBRL Taxonomy Extension Calculation Linkbase
|
|
|
|
|
X
|
101.LAB
|
|
Inline XBRL Taxonomy Extension Label Linkbase
|
|
|
|
|
X
|
101.PRE
|
|
Inline XBRL Taxonomy Extension Presentation Linkbase
|
|
|
|
|
X
|
101.DEF
|
|
Inline XBRL Taxonomy Extension Definition Linkbase
|
|
|
|
|
X
|
104
|
|
Inline XBRL For the cover page of this Annual Report on Form 10-K, included in the Exhibit 101 Inline XBRL Document Set
|
|
|
|
|
X
|
|
|
GoPro, Inc.
|
|
|
(Registrant)
|
|
|
|
|
|
|
|
|
|
|
|
|
Dated:
|
February 14, 2020
|
By: /s/ Nicholas Woodman
|
|
|
Nicholas Woodman
Chief Executive Officer
(Principal Executive Officer)
|
|
|
|
|
|
|
|
|
|
|
|
|
Dated:
|
February 14, 2020
|
By: /s/ Brian McGee
|
|
|
Brian McGee
Chief Financial Officer and Chief Operating Officer (Principal Financial Officer) |
|
Name
|
|
Title
|
|
Date
|
|
|
|
|
|
|
By:
|
/s/ Nicholas Woodman
|
|
Chief Executive Officer and Chairman
|
|
February 14, 2020
|
|
Nicholas Woodman
|
|
(Principal Executive Officer)
|
|
|
|
|
|
|
|
|
By:
|
/s/ Brian McGee
|
|
Chief Financial Officer and Chief Operating Officer
|
|
February 14, 2020
|
|
Brian McGee
|
|
(Principal Financial and Accounting Officer)
|
|
|
|
|
|
|
|
|
By:
|
/s/ Tyrone Ahmad-Taylor
|
|
Director
|
|
February 14, 2020
|
|
Tyrone Ahmad-Taylor
|
|
|
|
|
|
|
|
|
|
|
By:
|
/s/ Kenneth Goldman
|
|
Director
|
|
February 14, 2020
|
|
Kenneth Goldman
|
|
|
|
|
|
|
|
|
|
|
By:
|
/s/ Peter Gotcher
|
|
Director
|
|
February 14, 2020
|
|
Peter Gotcher
|
|
|
|
|
|
|
|
|
|
|
By:
|
/s/ James Lanzone
|
|
Director
|
|
February 14, 2020
|
|
James Lanzone
|
|
|
|
|
|
|
|
|
|
|
By:
|
/s/ Alexander Lurie
|
|
Director
|
|
February 14, 2020
|
|
Alexander Lurie
|
|
|
|
|
|
|
|
|
|
|
By:
|
/s/ Susan Lyne
|
|
Director
|
|
February 14, 2020
|
|
Susan Lyne
|
|
|
|
|
|
|
|
|
|
|
By:
|
/s/ Frederic Welts
|
|
Director
|
|
February 14, 2020
|
|
Frederic Welts
|
|
|
|
|
|
|
|
|
|
|
By:
|
/s/ Lauren Zalaznick
|
|
Director
|
|
February 14, 2020
|
|
Lauren Zalaznick
|
|
|
|
|
•
|
before such date, the board of directors of the corporation approved either the business combination or the transaction that resulted in the stockholder becoming an interested stockholder;
|
•
|
upon closing of the transaction that resulted in the stockholder becoming an interested stockholder, the interested stockholder owned at least 85% of the voting stock of the corporation outstanding at the time the transaction began, excluding for purposes of determining the voting stock outstanding (but not the outstanding voting stock owned by the interested stockholder) those shares owned (i) by persons who are directors and also officers and (ii) employee stock plans in which employee participants do not have the right to determine confidentially whether shares held subject to the plan will be tendered in a tender or exchange offer; or
|
•
|
on or after such date, the business combination is approved by the board of directors and authorized at an annual or special meeting of the stockholders, and not by written consent, by the affirmative vote of at least 66 2/3% of the outstanding voting stock that is not owned by the interested stockholder.
|
•
|
Dual class common stock. Our restated certificate of incorporation provides for a dual class common stock structure pursuant to which holders of our Class B common stock have the ability to control the outcome of matters requiring stockholder approval, even if they own significantly less than a majority of the shares of our outstanding Class A and Class B common stock, including the election of directors and significant corporate transactions, such as a merger or other sale of our company or its assets, and current investors, executives and employees with the ability to exercise significant influence over those matters.
|
•
|
Board of directors vacancies. Our restated certificate of incorporation and amended and restated bylaws authorize only our board of directors to fill vacant directorships. In addition, the number of directors constituting our board of directors may be set only by resolution adopted by a majority vote of our entire board of directors. These provisions prevent a stockholder from increasing the size of our board of directors and gaining control of our board of directors by filling the resulting vacancies with its own nominees.
|
•
|
Classified board. Our board of directors is not classified. However, our restated certificate of incorporation and amended and restated bylaws provide that our board of directors will be classified into three classes of directors at such time as all shares of our Class B common stock have been converted into shares of our Class A common stock. Directors may be removed from office with or without cause so long as any shares of our Class B common stock are outstanding, and thereafter directors may be removed from office only for cause and only by the affirmative vote of the holders of 66 2/3% of the voting power of the then outstanding shares of voting stock. The existence of a classified board could delay a successful tender offeror from obtaining majority control of our board of directors, and the prospect of that delay might deter a potential offeror.
|
•
|
Supermajority requirements for bylaws and certificate of incorporation amendments. Our restated certificate of incorporation further provides that the affirmative vote of holders of at least 66 2/3% of the voting power of all of the then outstanding shares of voting stock is required to amend certain provisions of our restated certificate of incorporation, including provisions relating to the classified board, the size of the board of directors, removal of directors, special meetings, actions by written consent and designation of our preferred stock. In addition, the affirmative vote of holders of 75% of the voting power of each of our Class A common stock and Class B common stock, voting separately by class, is required to amend the provisions of our restated certificate of incorporation relating to the terms of our Class A common stock and our Class B common stock. The affirmative vote of holders of at least 66 2/3% of the voting power of all of the then outstanding shares of voting stock is required to amend or repeal our amended and restated bylaws, although our amended and restated bylaws may be amended by a simple majority vote of our board of directors.
|
•
|
Stockholder action; special meeting of stockholders. Our restated certificate of incorporation provides that our stockholders may not take action by written consent, but may only take action at annual or special meetings of our stockholders. Stockholders are not permitted to cumulate their votes for the election of directors. Our restated certificate of incorporation and our amended and restated bylaws further provide that so long as any shares of our Class B common stock are outstanding, special meetings of our stockholders may be called by the holders of 10% of the outstanding voting power of all then-outstanding shares of stock, a majority of our board of directors, the chairman of our board of directors, our chief executive officer or our president, and thereafter special meetings of our stockholders may be called only by a majority of our board of directors, the chairman of our board of directors, our chief executive officer or our president.
|
•
|
Advance notice requirements for stockholder proposals and director nominations. Our amended and restated bylaws provides advance notice procedures for stockholders seeking to bring business before our annual meeting of stockholders, or to nominate candidates for election as directors at our annual meeting of stockholders. Our amended and restated bylaws also specify certain requirements regarding the form and content of a stockholder’s notice. These provisions may preclude our stockholders from bringing matters before our annual meeting of stockholders or from making nominations for directors at our annual meeting of stockholders.
|
•
|
Issuance of undesignated preferred stock. Our board of directors has the authority, without further action by the stockholders, to issue up to 5,000,000 shares of undesignated preferred stock with rights and preferences, including voting rights, designated from time to time by our board of directors. The existence of authorized but unissued shares of preferred stock enables our board of directors to render more difficult or to discourage an attempt to obtain control of us by means of a merger, tender offer, proxy contest or otherwise.
|
GOPRO, INC.,
|
|
by
|
|
|
/s/ Brian Timothy McGee
|
|
Name: Brian Timothy McGee
|
|
Title: Executive Vice President,
Chief Financial Officer
|
GOPRO COÖPERATIEF U.A.,
|
|
by
|
|
|
/s/ Brian Timothy McGee
|
|
Name: Brian Timothy McGee
|
|
Title: Executive Vice President,
Chief Financial Officer
|
JPMORGAN CHASE BANK, N.A., individually and as the Administrative Agent,
|
|
by
|
|
|
/s/ Anna Kostenko
|
|
Name: Anna Kostenko
|
|
Title: Vice President
|
Wells Fargo Bank, National Association:
|
|
by
|
|
|
/s/ Moses Harris
|
|
Name: Moses Harris
|
|
Title: Authorized Signatory
|
Wells Fargo Bank, National Association,
London Branch
|
|
by
|
|
|
|
|
Name: Patricia Del Busto
|
|
Title: Authorized Signatory
|
Name of Institution: WELLS FARGO BANK
N.A., LONDON BRANCH
|
|
by
|
|
|
/s/ Patricia Del Busto
|
|
Name: PATRICIA DEL BUSTO
|
|
Title: AUTHORIZED SIGNATORY
|
For any Lender requiring a second
signature block:
|
|
by
|
|
|
Name:
|
|
Title:
|
Name of Institution: BARCLAYS BANK PLC
|
|
by
|
|
|
/s/ May Huang
|
|
Name: May Huang
|
|
Title: Assistant Vice President
|
Name of Institution: Citibank, N.A.
|
|
by
|
|
|
/s/ David L. Smith
|
|
Name: David L. Smith
|
|
Title: Vice President and Director
|
Name of Institution: Morgan Stanley Senior Funding, Inc.
|
|
by
|
|
|
/s/ Justin Burton
|
|
Name: Justin Burton
|
|
Title: Vice President
|
Name of Institution: SILICON VALLEY BANK
|
|
by
|
|
|
/s/ Kyle Larrabee
|
|
Name: Kyle Larrabee
|
|
Title: Vice President
|
For any Lender requiring a second
|
|
signature block:
|
|
by
|
|
|
|
|
Name:
|
|
Title:
|
|
TABLE OF CONTENTS
|
|
|
|
|
Page
|
|
|
|
|
|
|
ARTICLE I
|
|
|
|
|
|
|
|
Definitions
|
|
|
|
|
|
|
SECTION 1.01.
|
Defined Terms ...............................................................................................
|
6
|
|
SECTION 1.02.
|
Classification of Loans and Borrowings .......................................................
|
69
|
|
SECTION 1.03.
|
Terms Generally ............................................................................................
|
69
|
|
SECTION 1.04.
|
Accounting Terms; GAAP; Pro Forma Calculations ....................................
|
70
|
|
SECTION 1.05.
|
Currency Translation .....................................................................................
|
71
|
|
SECTION 1.06.
|
Senior Indebtedness .......................................................................................
|
7172
|
|
|
|
|
|
|
ARTICLE II
|
|
|
|
|
|
|
|
The Credits
|
|
|
|
|
|
|
SECTION 2.01.
|
Commitments ................................................................................................
|
72
|
|
SECTION 2.02.
|
Loans and Borrowings ..................................................................................
|
7273
|
|
SECTION 2.03.
|
Requests for Borrowings ...............................................................................
|
73
|
|
SECTION 2.04.
|
Protective Advances ......................................................................................
|
74
|
|
SECTION 2.05.
|
Letters of Credit ............................................................................................
|
7576
|
|
SECTION 2.06.
|
Funding of Borrowings .................................................................................
|
83
|
|
SECTION 2.07.
|
Interest Elections ...........................................................................................
|
84
|
|
SECTION 2.08.
|
Termination and Reduction of Commitments ...............................................
|
85
|
|
SECTION 2.09.
|
Repayment of Loans; Evidence of Debt; Cash Dominion Period .................
|
86
|
|
SECTION 2.10.
|
Prepayment of Loans .....................................................................................
|
88
|
|
SECTION 2.11.
|
Fees ................................................................................................................
|
89
|
|
SECTION 2.12.
|
Interest ...........................................................................................................
|
90
|
|
SECTION 2.13.
|
Alternate Rate of Interest ..............................................................................
|
91
|
|
SECTION 2.14.
|
Increased Costs .............................................................................................
|
91
|
|
SECTION 2.15.
|
Break Funding Payments ..............................................................................
|
9293
|
|
SECTION 2.16.
|
Taxes .............................................................................................................
|
93
|
|
SECTION 2.17.
|
Payments Generally; Pro Rata Treatment; Sharing of Setoffs ......................
|
9798
|
|
SECTION 2.18.
|
Mitigation Obligations; Replacement of Lenders .........................................
|
100101
|
|
SECTION 2.19.
|
Defaulting Lenders ........................................................................................
|
101102
|
|
SECTION 2.20.
|
Incremental Commitments ............................................................................
|
103104
|
|
SECTION 2.21.
|
Secured Cash Management Services Obligations and Secured
|
|
|
|
Hedging Obligations .....................................................................................
|
106
|
|
SECTION 2.22.
|
Dutch Borrower Agent ..................................................................................
|
106
|
|
|
|
|
|
|
ARTICLE III
|
|
|
|
|
|
|
|
Representations and Warranties
|
|
|
|
|
|
|
SECTION 3.01.
|
Organization; Powers ....................................................................................
|
107
|
|
SECTION 3.02.
|
Authorization; Enforceability ........................................................................
|
107108
|
|
SECTION 3.03.
|
Governmental Approvals; Absence of Conflicts ...........................................
|
108
|
|
SECTION 3.04.
|
Financial Condition; No Material Adverse Change ......................................
|
108
|
|
SECTION 3.05.
|
Properties .......................................................................................................
|
109
|
|
SECTION 3.06.
|
Litigation and Environmental Matters ..........................................................
|
109
|
|
SECTION 3.07.
|
Compliance with Laws and Agreements .......................................................
|
109110
|
|
SECTION 3.08.
|
Investment Company Status ..........................................................................
|
110
|
|
SECTION 3.09.
|
Taxes ..............................................................................................................
|
110
|
|
SECTION 3.10.
|
ERISA ...........................................................................................................
|
110
|
|
SECTION 3.11.
|
Subsidiaries and Joint Ventures; Disqualified Equity Interests .....................
|
110
|
|
SECTION 3.12.
|
Insurance .......................................................................................................
|
111
|
|
SECTION 3.13.
|
Solvency ........................................................................................................
|
111
|
|
SECTION 3.14.
|
Disclosure .....................................................................................................
|
111
|
|
SECTION 3.15.
|
Inventory Vendor Purchase Agreements; Intercompany
|
|
|
|
Inventory Title Transfer Agreements .............................................................
|
112
|
|
SECTION 3.16.
|
Collateral Matters ..........................................................................................
|
112
|
|
SECTION 3.17.
|
Federal Reserve Regulations .........................................................................
|
113
|
|
SECTION 3.18.
|
Anti-Corruption Laws and Sanctions ............................................................
|
113
|
|
SECTION 3.19.
|
Choice of Law Provisions .............................................................................
|
113
|
|
SECTION 3.20.
|
No Immunity .................................................................................................
|
114
|
|
SECTION 3.21.
|
Proper Form; No Recordation .......................................................................
|
114
|
|
SECTION 3.22.
|
Ranking of Obligations .................................................................................
|
115
|
|
SECTION 3.23.
|
Centre of Main Interest .................................................................................
|
115
|
|
|
|
|
|
|
ARTICLE IV
|
|
|
|
|
|
|
|
Conditions
|
|
|
|
|
|
|
SECTION 4.01.
|
Effective Date ................................................................................................
|
115
|
|
SECTION 4.02.
|
Each Credit Event ..........................................................................................
|
117
|
|
|
|
|
|
|
ARTICLE V
|
|
|
|
|
|
|
|
Affirmative Covenants
|
|
|
|
|
|
|
SECTION 5.01.
|
Financial Statements and Other Information ................................................
|
118
|
|
SECTION 5.02.
|
Notices of Material Events ............................................................................
|
122
|
|
SECTION 5.03.
|
Additional Subsidiaries .................................................................................
|
123
|
|
SECTION 5.04.
|
Information Regarding Loan Parties .............................................................
|
123
|
|
SECTION 5.05.
|
Existence; Conduct of Business ....................................................................
|
124
|
|
SECTION 5.06.
|
Payment of Taxes ..........................................................................................
|
124
|
|
SECTION 5.07.
|
Maintenance of Properties .............................................................................
|
124
|
|
SECTION 5.08.
|
Insurance .......................................................................................................
|
124125
|
|
SECTION 5.09.
|
Books and Records; Inspection and Audit Rights; Field
|
|
|
|
Examinations and Appraisals ....................................................................
|
125
|
|
SECTION 5.10.
|
Compliance with Laws ..................................................................................
|
126
|
|
SECTION 5.11.
|
Location of Inventory ....................................................................................
|
126
|
|
SECTION 5.12.
|
Deposit Accounts ...........................................................................................
|
127
|
|
SECTION 5.13.
|
Use of Proceeds and Letters of Credit ...........................................................
|
129
|
|
SECTION 5.14.
|
Further Assurances ........................................................................................
|
129
|
|
SECTION 5.15.
|
Post-Closing Matters .....................................................................................
|
129130
|
|
|
|
|
|
|
ARTICLE VI
|
|
|
|
|
|
|
|
Negative Covenants
|
|
|
|
|
|
|
SECTION 6.01.
|
Indebtedness ..................................................................................................
|
130
|
|
SECTION 6.02.
|
Liens ..............................................................................................................
|
132
|
|
SECTION 6.03.
|
Fundamental Changes; Business Activities ...................................................
|
135
|
|
SECTION 6.04.
|
Investments, Loans, Advances, Guarantees and Acquisitions ......................
|
135136
|
|
SECTION 6.05.
|
Asset Sales .....................................................................................................
|
138
|
|
SECTION 6.06.
|
Sale/Leaseback Transactions .........................................................................
|
140
|
|
SECTION 6.07.
|
Hedging Agreements .....................................................................................
|
141
|
|
SECTION 6.08.
|
Restricted Payments; Certain Payments of Indebtedness .............................
|
141
|
|
SECTION 6.09.
|
Transactions with Affiliates ...........................................................................
|
143
|
|
SECTION 6.10.
|
Restrictive Agreements .................................................................................
|
143144
|
|
SECTION 6.11.
|
Amendment of Organizational Documents ...................................................
|
145
|
|
SECTION 6.12.
|
Financial Covenant ........................................................................................
|
145
|
|
SECTION 6.13.
|
Fiscal Year .....................................................................................................
|
145
|
|
|
ARTICLE VII
|
|
|
|
|
|
|
|
Events of Default
|
|
|
|
|
|
|
|
ARTICLE VIII
|
|
|
|
|
|
|
|
The Administrative Agent
|
|
|
|
|
|
|
|
ARTICLE IX
|
|
|
|
|
|
|
|
Miscellaneous
|
|
|
|
|
|
|
SECTION 9.01.
|
Notices ...........................................................................................................
|
155
|
|
SECTION 9.02.
|
Waivers; Amendments ...................................................................................
|
157
|
|
SECTION 9.03.
|
Expenses; Indemnity; Damage Waiver .........................................................
|
160
|
|
SECTION 9.04.
|
Successors and Assigns .................................................................................
|
162
|
|
SECTION 9.05.
|
Survival .........................................................................................................
|
166167
|
|
SECTION 9.06.
|
Counterparts; Integration; Effectiveness; Electronic Execution ...................
|
167
|
|
SECTION 9.07.
|
Severability ....................................................................................................
|
167168
|
|
SECTION 9.08.
|
Right of Setoff ...............................................................................................
|
168
|
|
SECTION 9.09.
|
Governing Law; Jurisdiction; Consent to Service of Process .......................
|
168169
|
|
SECTION 9.10.
|
WAIVER OF JURY TRIAL ..........................................................................
|
169170
|
|
SECTION 9.11.
|
Headings ........................................................................................................
|
170
|
|
SECTION 9.12.
|
Confidentiality ...............................................................................................
|
170
|
|
SECTION 9.13.
|
Interest Rate Limitation .................................................................................
|
171
|
|
SECTION 9.14.
|
Release of Liens and Guarantees ..................................................................
|
171
|
|
SECTION 9.15.
|
USA PATRIOT Act Notice ............................................................................
|
172
|
|
SECTION 9.16.
|
No Fiduciary Relationship ............................................................................
|
172
|
|
SECTION 9.17.
|
Non-Public Information ................................................................................
|
172173
|
|
SECTION 9.18.
|
Judgment Currency .......................................................................................
|
173
|
|
SECTION 9.19.
|
Excluded Swap Obligations ..........................................................................
|
173174
|
|
[FORM OF]
|
BORROWING BASE CERTIFICATE
|
GoPro, Inc.
|
||||||
Borrowing Base - Eligible Accounts
|
||||||
For Period Ending [ ]
|
|
|
|
|
||
In US$
|
|
|
|
|
||
|
|
|
|
GoPro Coöperatief U.A.
|
|
|
|
|
|
U.S. Loan Parties
|
Netherlands
|
Hong Kong
|
Total
|
|
|
|
|
|
|
|
Gross accounts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less ineligibles:
|
1
|
|
|
|
|
|
|
Past Due > 60 PDD, > 90 PID
|
a
|
|
|
|
|
|
Past due credits
|
a
|
|
|
|
|
|
Cross-age 50%
|
b
|
|
|
|
|
|
Intercompany, affiliate
|
c
|
|
|
|
|
|
Ineligible A/R Jurisdiction
|
d
|
|
|
|
|
|
Government
|
e
|
|
|
|
|
|
Concentration cap- 15% for non-IG; 25% for IG
|
f
|
|
|
|
|
|
Bankruptcy, liquidation
|
g
|
|
|
|
|
|
Debtor sold all assets
|
h
|
|
|
|
|
|
Uncollectible payment
|
i
|
|
|
|
|
|
Without necessary NBAR
|
j
|
|
|
|
|
|
Sanctioned Person
|
k
|
|
|
|
|
|
Contra; counterclaim, deduction, dispute
|
l
|
|
|
|
|
|
Nonordinary course reductions, new invoice for partial payment
|
m
|
|
|
|
|
|
Credit card sales, cash on delivery, cash deposit sales
|
n
|
|
|
|
|
|
Ineligible currency
|
o
|
|
|
|
|
|
Foreign currency exchange revaluation accrual
|
o
|
|
|
|
|
|
No perfected security interest; subject to other Liens
|
p
|
|
|
|
|
|
No invoice; reinvoiced; restructured
|
q
|
|
|
|
|
|
Progress billing; retainage invoices; subj to security, deposit, advance
|
r
|
|
|
|
|
|
Nonordinary course, payments of interest
|
s
|
|
|
|
|
|
Non-delivered, unperformed services, FOB Destination, not-final sale
|
t
|
|
|
|
|
|
Bill-and-hold, consignment, contigent sale, guaranteed sale
|
u
|
|
|
|
|
|
Chattel paper, promissory note
|
v
|
|
|
|
|
|
Breach of covenants/reps/warranties
|
w
|
|
|
|
|
|
Non-compliant with applicable laws
|
x
|
|
|
|
|
|
Other Person has ownership interest
|
y
|
|
|
|
|
|
Agreements governed by laws of ineligible jurisdictions
|
z
|
|
|
|
|
|
Ban on assignment
|
aa
|
|
|
|
|
|
Extended retention of title
|
bb
|
|
|
|
|
|
Best Buy Factoring
|
cc
|
|
|
|
|
|
Acquired A/R non-diligenced > 10% cap
|
dd
|
|
|
|
|
|
Other ineligibles
|
|
|
|
|
|
Total ineligibles
|
|
|
|
|
|
|
Eligible accounts, before dilution
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dilution % > 5% per most recent field exam
|
|
|
|
|
|
|
Dilution reserve
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Eligible accounts before advance rate
|
|
|
|
|
|
|
Advance rate
|
|
|
|
|
|
|
Available Accounts, before Reserves
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1Eligible Accounts definition
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Specified Foreign Eligible Accounts (within US Available AR above)
|
|
|
|
|
|
GoPro, Inc.
|
||||||
Borrowing Base - Eligible FG Inventory
|
||||||
For Period Ending [ ]
|
|
|
|
|
|
|
In US$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GoPro Coöperatief U.A.
|
|
|
|
|
|
U.S. Loan Parties
|
Netherlands
|
Hong Kong
|
Total
|
|
|
|
|
|
|
|
Gross FG inventory
|
|
|
|
|
|
|
Add: FOB Destination
|
|
|
|
|
|
|
Add: In-transit FG
|
|
|
|
|
|
|
Adjusted gross FG inventory
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ineligibles:
|
1
|
|
|
|
|
|
|
No title; others have ownership interest
|
a
|
|
|
|
|
|
No possession
|
b
|
|
|
|
|
|
Located in an ineligible inventory jurisdiction
|
c
|
|
|
|
|
|
Located at an ineligible site
|
c
|
|
|
|
|
|
Moduslink - Singapore
|
c
|
|
|
|
|
|
Moduslink - Czech Republic
|
c
|
|
|
|
|
|
Moduslink - China
|
c
|
|
|
|
|
|
Kolar-France
|
c
|
|
|
|
|
|
<$150,000 at a location
|
d
|
|
|
|
|
|
Ineligible intransit: not shipped from/to Eligible Jurisdictions
|
e
|
|
|
|
|
|
Other In-transit ineligibles:
|
|
|
|
|
|
|
Not yet paid for
|
e. b
|
|
|
|
|
|
Not insured
|
e. c
|
|
|
|
|
|
Subject to negotiable BOLs
|
e. d
|
|
|
|
|
|
Common carrier affiliate
|
e. e
|
|
|
|
|
|
Customs broker affiliate
|
e. f
|
|
|
|
|
|
Located in leased location, 3rd party warehouse, DC
|
f
|
|
|
|
|
|
Consigned
|
g
|
|
|
|
|
|
Subject to negotiable Bill of Lading
|
h
|
|
|
|
|
|
No perfected security interest; subject to other Liens
|
i
|
|
|
|
|
|
Supplies, spare parts, packaging, display items, samples
|
j
|
|
|
|
|
|
Returned, rejected by customers
|
k
|
|
|
|
|
|
Damaged, defective, obsolete, excess, unsalable
|
l
|
|
|
|
|
|
Returning to vendor
|
m
|
|
|
|
|
|
Non-conforming to governmental standards
|
n
|
|
|
|
|
|
Bill and hold
|
o
|
|
|
|
|
|
Subj to IP, licenses, royalties, impeding Agt's ability to sell
|
p
|
|
|
|
|
|
Breach of covenants/reps/warranties
|
q
|
|
|
|
|
|
Seller assert reclamation rights
|
r
|
|
|
|
|
|
Retention of title
|
s
|
|
|
|
|
|
Acquired Inventory non-diligenced > 10% cap
|
t
|
|
|
|
|
|
Other
|
|
|
|
|
|
Total ineligibles
|
|
|
|
|
|
|
Eligible FG inventory before advance rate
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lesser of (a) and (b):
|
|
|
|
|
|
|
|
(a) Advance rate
|
|
|
|
|
|
|
NOLV% per most recent appraisal2
|
|
|
|
|
|
|
(b) NOLV at3
|
|
|
|
|
|
|
|
|
|
|
|
|
Available FG inventory, before Reserves
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1Eligible Inventory and Eligible In-Transit Inventory Definitions
|
|
|
|
|
|
|
2NOLV rates subject to change per latest third party appraisal
|
|
|
|
|
|
|
390% of NOLV is used during high period (July 1 to December 31)
|
|
|
|
|
|
GoPro, Inc.
|
||||||
Borrowing Base - Eligible Aerial Inventory
|
||||||
For Period Ending [ ]
|
|
|
|
|
|
|
In US$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GoPro Coöperatief U.A.
|
|
|
|
|
|
U.S. Loan Parties
|
Netherlands
|
Hong Kong
|
Total
|
|
|
|
|
|
|
|
Gross Aerial inventory
|
|
|
|
|
|
|
Add: FOB Destination
|
|
|
|
|
|
|
Add: In-transit Aerial inventory
|
|
|
|
|
|
|
Adjusted gross Aerial inventory
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ineligibles:
|
1
|
|
|
|
|
|
|
No title; others have ownership interest
|
a
|
|
|
|
|
|
No possession
|
b
|
|
|
|
|
|
Located in an ineligible inventory jurisdiction
|
c
|
|
|
|
|
|
Located at an ineligible site
|
c
|
|
|
|
|
|
Moduslink - Singapore
|
c
|
|
|
|
|
|
Moduslink - Czech Republic
|
c
|
|
|
|
|
|
Moduslink - China
|
c
|
|
|
|
|
|
Kolar-France
|
c
|
|
|
|
|
|
<$150,000 at a location
|
d
|
|
|
|
|
|
Ineligible intransit: not shipped from/to Eligible Jurisdictions
|
e
|
|
|
|
|
|
Other In-transit ineligibles:
|
|
|
|
|
|
|
Not yet paid for
|
e. b
|
|
|
|
|
|
Not insured
|
e. c
|
|
|
|
|
|
Subject to negotiable BOLs
|
e. d
|
|
|
|
|
|
Common carrier affiliate
|
e. e
|
|
|
|
|
|
Customs broker affiliate
|
e. f
|
|
|
|
|
|
Located in leased location, 3rd party warehouse, DC
|
f
|
|
|
|
|
|
Consigned
|
g
|
|
|
|
|
|
Subject to negotiable Bill of Lading
|
h
|
|
|
|
|
|
No perfected security interest; subject to other Liens
|
i
|
|
|
|
|
|
Supplies, spare parts, packaging, display items, samples
|
j
|
|
|
|
|
|
Returned, rejected by customers
|
k
|
|
|
|
|
|
Damaged, defective, obsolete, excess, unsalable
|
l
|
|
|
|
|
|
Returning to vendor
|
m
|
|
|
|
|
|
Non-conforming to governmental standards
|
n
|
|
|
|
|
|
Bill and hold
|
o
|
|
|
|
|
|
Subj to IP, licenses, royalties, impeding Agt's ability to sell
|
p
|
|
|
|
|
|
Breach of covenants/reps/warranties
|
q
|
|
|
|
|
|
Seller assert reclamation rights
|
r
|
|
|
|
|
|
Retention of title
|
s
|
|
|
|
|
|
Acquired Inventory non-diligenced > 10% cap
|
t
|
|
|
|
|
|
Other
|
|
|
|
|
|
Total ineligibles
|
|
|
|
|
|
|
Eligible Aerial inventory before advance rate
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lesser of (a) and (b):
|
|
|
|
|
|
|
|
(a) Advance rate
|
|
|
|
|
|
|
NOLV% per most recent appraisal2
|
|
|
|
|
|
|
(b) NOLV at3
|
|
|
|
|
|
|
|
|
|
|
|
|
Available Aerial inventory, before Reserves3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1Eligible Inventory and Eligible In-Transit Inventory Definitions
|
|
|
|
|
|
|
2NOLV rates subject to change per latest third party appraisal
|
|
|
|
|
|
|
3Drone and new inventory subject to total BB cap per credit agreement
|
|
|
|
|
|
GoPro, Inc.
|
||||||
Borrowing Base - Eligible Bulk Inventory
|
||||||
For Period Ending [ ]
|
|
|
|
|
|
|
In US$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GoPro Coöperatief U.A.
|
|
|
|
|
|
U.S. Loan Parties
|
Netherlands
|
Hong Kong
|
Total
|
|
|
|
|
|
|
|
Gross Bulk inventory
|
|
|
|
|
|
|
Add: FOB Destination
|
|
|
|
|
|
|
Add: In-transit Bulk
|
|
|
|
|
|
|
Adjusted gross Bulk inventory
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ineligibles:
|
1
|
|
|
|
|
|
|
No title; others have ownership interest
|
a
|
|
|
|
|
|
No possession
|
b
|
|
|
|
|
|
Located in an ineligible inventory jurisdiction
|
c
|
|
|
|
|
|
Located at an ineligible site
|
c
|
|
|
|
|
|
Moduslink - Singapore
|
c
|
|
|
|
|
|
Moduslink - Czech Republic
|
c
|
|
|
|
|
|
Moduslink - China
|
c
|
|
|
|
|
|
Kolar-France
|
c
|
|
|
|
|
|
<$150,000 at a location
|
d
|
|
|
|
|
|
Ineligible intransit: not shipped from/to Eligible Jurisdictions
|
e
|
|
|
|
|
|
Other In-transit ineligibles:
|
|
|
|
|
|
|
Not yet paid for
|
e. b
|
|
|
|
|
|
Not insured
|
e. c
|
|
|
|
|
|
Subject to negotiable BOLs
|
e. d
|
|
|
|
|
|
Common carrier affiliate
|
e. e
|
|
|
|
|
|
Customs broker affiliate
|
e. f
|
|
|
|
|
|
Located in leased location, 3rd party warehouse, DC
|
f
|
|
|
|
|
|
Consigned
|
g
|
|
|
|
|
|
Subject to negotiable Bill of Lading
|
h
|
|
|
|
|
|
No perfected security interest; subject to other Liens
|
i
|
|
|
|
|
|
Supplies, spare parts, packaging, display items, samples
|
j
|
|
|
|
|
|
Returned, rejected by customers
|
k
|
|
|
|
|
|
Damaged, defective, obsolete, excess, unsalable
|
l
|
|
|
|
|
|
Returning to vendor
|
m
|
|
|
|
|
|
Non-conforming to governmental standards
|
n
|
|
|
|
|
|
Bill and hold
|
o
|
|
|
|
|
|
Subj to IP, licenses, royalties, impeding Agt's ability to sell
|
p
|
|
|
|
|
|
Breach of covenants/reps/warranties
|
q
|
|
|
|
|
|
Seller assert reclamation rights
|
r
|
|
|
|
|
|
Retention of title
|
s
|
|
|
|
|
|
Acquired Inventory non-diligenced > 10% cap
|
t
|
|
|
|
|
|
Other
|
|
|
|
|
|
Total ineligibles
|
|
|
|
|
|
|
Eligible Bulk inventory before advance rate
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lesser of (a) and (b):
|
|
|
|
|
|
|
|
(a) Advance rate
|
|
|
|
|
|
|
NOLV% per most recent appraisal2
|
|
|
|
|
|
|
(b) NOLV at3
|
|
|
|
|
|
|
|
|
|
|
|
|
Available Bulk inventory, before Reserves
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1Eligible Inventory and Eligible In-Transit Inventory Definitions
|
|
|
|
|
|
|
2NOLV rates subject to change per latest third party appraisal
|
|
|
|
|
|
|
390% of NOLV is used during high period (July 1 to December 31)
|
|
|
|
|
|
GoPro, Inc.
|
||||||
Borrowing Base - Eligible Components Inventory
|
||||||
For Period Ending [ ]
|
|
|
|
|
|
|
In US$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GoPro Coöperatief U.A.
|
|
|
|
|
|
U.S. Loan Parties
|
Netherlands
|
Hong Kong
|
Total
|
|
|
|
|
|
|
|
Gross Components inventory
|
|
|
|
|
|
|
Add: FOB Destination
|
|
|
|
|
|
|
Add: In-transit Components
|
|
|
|
|
|
|
Adjusted gross Components inventory
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ineligibles:
|
1
|
|
|
|
|
|
|
No title; others have ownership interest
|
a
|
|
|
|
|
|
No possession
|
b
|
|
|
|
|
|
Located in an ineligible inventory jurisdiction
|
c
|
|
|
|
|
|
Located at an ineligible site
|
c
|
|
|
|
|
|
Moduslink - Singapore
|
c
|
|
|
|
|
|
Moduslink - Czech Republic
|
c
|
|
|
|
|
|
Moduslink - China
|
c
|
|
|
|
|
|
Kolar-France
|
c
|
|
|
|
|
|
<$150,000 at a location
|
d
|
|
|
|
|
|
Ineligible intransit: not shipped from/to Eligible Jurisdictions
|
e
|
|
|
|
|
|
Other In-transit ineligibles:
|
|
|
|
|
|
|
Not yet paid for
|
e. b
|
|
|
|
|
|
Not insured
|
e. c
|
|
|
|
|
|
Subject to negotiable BOLs
|
e. d
|
|
|
|
|
|
Common carrier affiliate
|
e. e
|
|
|
|
|
|
Customs broker affiliate
|
e. f
|
|
|
|
|
|
Located in leased location, 3rd party warehouse, DC
|
f
|
|
|
|
|
|
Consigned
|
g
|
|
|
|
|
|
Subject to negotiable Bill of Lading
|
h
|
|
|
|
|
|
No perfected security interest; subject to other Liens
|
i
|
|
|
|
|
|
Supplies, spare parts, packaging, display items, samples
|
j
|
|
|
|
|
|
Returned, rejected by customers
|
k
|
|
|
|
|
|
Damaged, defective, obsolete, excess, unsalable
|
l
|
|
|
|
|
|
Returning to vendor
|
m
|
|
|
|
|
|
Non-conforming to governmental standards
|
n
|
|
|
|
|
|
Bill and hold
|
o
|
|
|
|
|
|
Subj to IP, licenses, royalties, impeding Agt's ability to sell
|
p
|
|
|
|
|
|
Breach of covenants/reps/warranties
|
q
|
|
|
|
|
|
Seller assert reclamation rights
|
r
|
|
|
|
|
|
Retention of title
|
s
|
|
|
|
|
|
Acquired Inventory non-diligenced > 10% cap
|
t
|
|
|
|
|
|
Other
|
|
|
|
|
|
Total ineligibles
|
|
|
|
|
|
|
Eligible Components inventory before advance rate
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lesser of (a) and (b):
|
|
|
|
|
|
|
|
(a) Advance rate
|
|
|
|
|
|
|
NOLV% per most recent appraisal2
|
|
|
|
|
|
|
(b) NOLV at3
|
|
|
|
|
|
|
|
|
|
|
|
|
Available Components inventory, before Reserves
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1Eligible Inventory and Eligible In-Transit Inventory Definitions
|
|
|
|
|
|
|
2NOLV rates subject to change per latest third party appraisal
|
|
|
|
|
|
|
390% of NOLV is used during high period (July 1 to December 31)
|
|
|
|
|
|
GOPRO, INC.,
|
|
by
|
/s/ Brian Timothy McGee
|
|
Name: Brian Timothy McGee
Title: Executive Vice President & CFO
|
GOPRO COÖPERATIEF U.A.,
|
|
by
|
|
|
Name: Virginia Crowe
Title: Managing Director
|
GOPRO, INC.,
|
|
by
|
|
|
Name:
Title:
|
GOPRO COÖPERATIEF U.A.,
|
|
by
|
/s/ Virginia Crowe
|
|
Name: Virginia Crowe
Title: Managing Director
|
by
|
/s/ Tony Yung
|
|
Name: Tony Yung
Title: Executive Director
|
SIGNATURE PAGE TO
|
AMENDMENT NO. 2 RELATING TO
|
THE CREDIT AGREEMENT OF
|
GOPRO, INC.
|
Name of Institution: Wells Fargo Bank, NA
|
|
by
|
/s/ Moses Harris
|
|
Name: Moses Harris
Title: Authorized Signatory
|
For any Lender requiring a second
|
|
signature block:
|
|
by
|
|
|
Name:
Title:
|
SIGNATURE PAGE TO
|
AMENDMENT NO. 2 RELATING TO
|
THE CREDIT AGREEMENT OF
|
GOPRO, INC.
|
Name of Institution:
|
|
|
|
Wells Fargo Bank National Association, London
|
|
Branch
|
|
by
|
/s/ Patricia Del Busto
|
|
Name: Patricia Del Busto
|
|
Title: Authorized Signatory
|
For any Lender requiring a second
|
|
signature block:
|
|
by
|
|
|
Name:
|
|
Title:
|
SIGNATURE PAGE TO
|
AMENDMENT NO. 2 RELATING TO
|
THE CREDIT AGREEMENT OF
|
GOPRO, INC.
|
Name of Institution:
|
|
|
|
by
|
/s/ Martin Corrigan
|
|
Name: Martin Corrigan
|
|
Title: Vice President
|
SIGNATURE PAGE TO
|
AMENDMENT NO. 2 RELATING TO
|
THE CREDIT AGREEMENT OF
|
GOPRO, INC.
|
Name of Institution:
|
|
|
|
by
|
Citibank, N.A. /s/ Shane V. Azzara
|
|
Name: Shane V. Azzara
|
|
Title: Vice President & Managing Director
|
SIGNATURE PAGE TO
|
AMENDMENT NO. 2 RELATING TO
|
THE CREDIT AGREEMENT OF
|
GOPRO, INC.
|
Morgan Stanley Senior Funding, Inc.,
|
|
|
|
by
|
/s/ Justin Burton
|
|
Name: Justin Burton
|
|
Title: Authorized Signatory
|
SIGNATURE PAGE TO
|
AMENDMENT NO. 2 RELATING TO
|
THE CREDIT AGREEMENT OF
|
GOPRO, INC.
|
Name of Institution: Silicon Valley Bank
|
|
|
|
by
|
/s/ Alex Grotevant
|
|
Name: Alex Grotevant
|
|
Title: Vice President
|
For any Lender requiring a second
|
|
signature block:
|
|
by
|
|
|
Name:
|
|
Title:
|
|
TABLE OF CONTENTS
|
|
|
|
|
|
|
Page
|
|
|
|
|
ARTICLE I
|
|
|
|
|
|
Definitions
|
|
|
|
|
SECTION 1.01.
|
Defined Terms ...............................................................................................
|
6
|
SECTION 1.02.
|
Classification of Loans and Borrowings .......................................................
|
6970
|
SECTION 1.03.
|
Terms Generally ............................................................................................
|
6970
|
SECTION 1.04.
|
Accounting Terms; GAAP; Pro Forma Calculations ....................................
|
7071
|
SECTION 1.05.
|
Currency Translation .....................................................................................
|
7172
|
SECTION 1.06.
|
Senior Indebtedness .......................................................................................
|
7273
|
|
|
|
|
ARTICLE II
|
|
|
|
|
|
The Credits
|
|
|
|
|
SECTION 2.01.
|
Commitments ................................................................................................
|
7273
|
SECTION 2.02.
|
Loans and Borrowings ..................................................................................
|
73
|
SECTION 2.03.
|
Requests for Borrowings ..............................................................................
|
7374
|
SECTION 2.04.
|
Protective Advances ......................................................................................
|
7475
|
SECTION 2.05.
|
Letters of Credit ............................................................................................
|
76
|
SECTION 2.06.
|
Funding of Borrowings .................................................................................
|
8384
|
SECTION 2.07.
|
Interest Elections ...........................................................................................
|
8384
|
SECTION 2.08.
|
Termination and Reduction of Commitments ...............................................
|
8485
|
SECTION 2.09.
|
Repayment of Loans; Evidence of Debt; Cash Dominion Period .................
|
8586
|
SECTION 2.10.
|
Prepayment of Loans .....................................................................................
|
8889
|
SECTION 2.11.
|
Fees ................................................................................................................
|
8990
|
SECTION 2.12.
|
Interest ...........................................................................................................
|
9091
|
SECTION 2.13.
|
Alternate Rate of Interest ..............................................................................
|
9192
|
SECTION 2.14.
|
Increased Costs ..............................................................................................
|
9192
|
SECTION 2.15.
|
Break Funding Payments ..............................................................................
|
93
|
SECTION 2.16.
|
Taxes ..............................................................................................................
|
9394
|
SECTION 2.17.
|
Payments Generally; Pro Rata Treatment; Sharing of Setoffs ......................
|
98
|
SECTION 2.18.
|
Mitigation Obligations; Replacement of Lenders .........................................
|
101
|
SECTION 2.19.
|
Defaulting Lenders ........................................................................................
|
102
|
SECTION 2.20.
|
Incremental Commitments ............................................................................
|
104
|
SECTION 2.21.
|
Secured Cash Management Services Obligations and Secured
|
|
|
Hedging Obligations .................................................................................
|
106107
|
SECTION 2.22.
|
Dutch Borrower Agent ..................................................................................
|
106107
|
|
|
|
|
ARTICLE III
|
|
|
|
|
|
Representations and Warranties
|
|
|
|
|
SECTION 3.01.
|
Organization; Powers ....................................................................................
|
107108
|
SECTION 3.02.
|
Authorization; Enforceability .......................................................................
|
108
|
SECTION 3.03.
|
Governmental Approvals; Absence of Conflicts ..........................................
|
108109
|
SECTION 3.04.
|
Financial Condition; No Material Adverse Change ......................................
|
108109
|
SECTION 3.05.
|
Properties .......................................................................................................
|
109110
|
SECTION 3.06.
|
Litigation and Environmental Matters ..........................................................
|
109110
|
SECTION 3.07.
|
Compliance with Laws and Agreements .......................................................
|
110
|
SECTION 3.08.
|
Investment Company Status ..........................................................................
|
110111
|
SECTION 3.09.
|
Taxes ..............................................................................................................
|
110111
|
SECTION 3.10.
|
ERISA ...........................................................................................................
|
110111
|
SECTION 3.11.
|
Subsidiaries and Joint Ventures; Disqualified Equity Interests .....................
|
110111
|
SECTION 3.12.
|
Insurance .......................................................................................................
|
111112
|
SECTION 3.13.
|
Solvency ........................................................................................................
|
111112
|
SECTION 3.14.
|
Disclosure ......................................................................................................
|
111112
|
SECTION 3.15.
|
Inventory Vendor Purchase Agreements; Intercompany
|
|
|
Inventory Title Transfer Agreements .........................................................
|
112113
|
SECTION 3.16.
|
Collateral Matters ..........................................................................................
|
112113
|
SECTION 3.17.
|
Federal Reserve Regulations .........................................................................
|
113114
|
SECTION 3.18.
|
Anti-Corruption Laws and Sanctions ............................................................
|
113114
|
SECTION 3.19.
|
Choice of Law Provisions .............................................................................
|
113114
|
SECTION 3.20.
|
No Immunity .................................................................................................
|
114115
|
SECTION 3.21.
|
Proper Form; No Recordation .......................................................................
|
114115
|
SECTION 3.22.
|
Ranking of Obligations .................................................................................
|
115116
|
SECTION 3.23.
|
Centre of Main Interest .................................................................................
|
115116
|
|
|
|
|
ARTICLE IV
|
|
|
|
|
|
Conditions
|
|
|
|
|
SECTION 4.01.
|
Effective Date ................................................................................................
|
115116
|
SECTION 4.02.
|
Each Credit Event ..........................................................................................
|
117118
|
|
|
|
|
ARTICLE V
|
|
|
|
|
|
Affirmative Covenants
|
|
|
|
|
SECTION 5.01.
|
Financial Statements and Other Information ................................................
|
118119
|
SECTION 5.02.
|
Notices of Material Events ............................................................................
|
122123
|
SECTION 5.03.
|
Additional Subsidiaries .................................................................................
|
123124
|
SECTION 5.04.
|
Information Regarding Loan Parties .............................................................
|
123124
|
SECTION 5.05.
|
Existence; Conduct of Business ....................................................................
|
124125
|
SECTION 5.06.
|
Payment of Taxes ..........................................................................................
|
124125
|
SECTION 5.07.
|
Maintenance of Properties .............................................................................
|
124125
|
SECTION 5.08.
|
Insurance .......................................................................................................
|
125
|
|
SECTION 5.09.
|
Books and Records; Inspection and Audit Rights; Field
|
|
|
|
Examinations and Appraisals ....................................................................
|
125126
|
|
SECTION 5.10.
|
Compliance with Laws ..................................................................................
|
126127
|
|
SECTION 5.11.
|
Location of Inventory ....................................................................................
|
126127
|
|
SECTION 5.12.
|
Deposit Accounts ...........................................................................................
|
127128
|
|
SECTION 5.13.
|
Use of Proceeds and Letters of Credit ...........................................................
|
129130
|
|
SECTION 5.14.
|
Further Assurances ........................................................................................
|
129130
|
|
SECTION 5.15.
|
Post-Closing Matters .....................................................................................
|
130
|
|
|
|
|
|
|
ARTICLE VI
|
|
|
|
|
|
|
|
Negative Covenants
|
|
|
|
|
|
|
SECTION 6.01.
|
Indebtedness ..................................................................................................
|
130131
|
|
SECTION 6.02.
|
Liens ..............................................................................................................
|
132133
|
|
SECTION 6.03.
|
Fundamental Changes; Business Activities ...................................................
|
135136
|
|
SECTION 6.04.
|
Investments, Loans, Advances, Guarantees and Acquisitions ......................
|
136
|
|
SECTION 6.05.
|
Asset Sales .....................................................................................................
|
138139
|
|
SECTION 6.06.
|
Sale/Leaseback Transactions .........................................................................
|
140141
|
|
SECTION 6.07.
|
Hedging Agreements .....................................................................................
|
141142
|
|
SECTION 6.08.
|
Restricted Payments; Certain Payments of Indebtedness .............................
|
141142
|
|
SECTION 6.09.
|
Transactions with Affiliates ...........................................................................
|
143144
|
|
SECTION 6.10.
|
Restrictive Agreements .................................................................................
|
144
|
|
SECTION 6.11.
|
Amendment of Organizational Documents ...................................................
|
145146
|
|
SECTION 6.12.
|
Financial Covenant ........................................................................................
|
145146
|
|
SECTION 6.13.
|
Fiscal Year .....................................................................................................
|
145146
|
|
ARTICLE VII
|
|
|
|
|
|
|
|
Events of Default
|
|
|
|
|
|
|
|
ARTICLE VIII
|
|
|
|
|
|
|
|
The Administrative Agent
|
|
|
|
|
|
|
|
ARTICLE IX
|
|
|
|
|
|
|
|
Miscellaneous
|
|
|
|
|
|
|
SECTION 9.01.
|
Notices ...........................................................................................................
|
155156
|
|
SECTION 9.02.
|
Waivers; Amendments ...................................................................................
|
157158
|
|
SECTION 9.03.
|
Expenses; Indemnity; Damage Waiver .........................................................
|
160161
|
|
SECTION 9.04.
|
Successors and Assigns .................................................................................
|
162163
|
|
SECTION 9.05.
|
Survival .........................................................................................................
|
167
|
|
SECTION 9.06.
|
Counterparts; Integration; Effectiveness; Electronic Execution ...................
|
167168
|
|
SECTION 9.07.
|
Severability ....................................................................................................
|
168169
|
|
SECTION 9.08.
|
Right of Setoff ...............................................................................................
|
168169
|
|
SECTION 9.09.
|
Governing Law; Jurisdiction; Consent to Service of Process .......................
|
169
|
|
SECTION 9.10.
|
WAIVER OF JURY TRIAL ..........................................................................
|
170
|
|
SECTION 9.11.
|
Headings ........................................................................................................
|
170171
|
|
SECTION 9.12.
|
Confidentiality ...............................................................................................
|
170171
|
|
SECTION 9.13.
|
Interest Rate Limitation .................................................................................
|
171172
|
|
SECTION 9.14.
|
Release of Liens and Guarantees ..................................................................
|
171172
|
|
SECTION 9.15.
|
USA PATRIOT Act Notice ............................................................................
|
172173
|
|
SECTION 9.16.
|
No Fiduciary Relationship ............................................................................
|
172173
|
|
SECTION 9.17.
|
Non-Public Information ................................................................................
|
173
|
|
SECTION 9.18.
|
Judgment Currency .......................................................................................
|
173174
|
SECTION 9.19.
|
Excluded Swap Obligations...........................................................................
|
174175
|
SECTION 9.20.
|
Acknowledgement and Consent to Bail-In of EEA Financial
|
|
|
Institutions .................................................................................................
|
175176
|
|
|
EXHIBIT 21.01
|
|
|
|
|
|
|
List of Subsidiaries
|
||
|
|
|
|
|
|
Name
|
|
Jurisdiction of Incorporation
|
GoPro Australia Pty Ltd
|
|
Australia
|
GoPro do Brasil Participações Ltda.
|
|
Brazil
|
GoPro Philippines Ltd.
|
|
Cayman Islands
|
GoPro Technology (Shenzhen) Limited
|
|
China
|
GoPro Trading (Shanghai) Limited
|
|
China
|
GoPro Technology France SAS
|
|
France
|
GoPro GmbH
|
|
Germany
|
GoPro Hong Kong Limited
|
|
Hong Kong
|
GoPro GK
|
|
Japan
|
GoPro Coöperatief U.A.
|
|
The Netherlands
|
GoPro Holding B.V.
|
|
The Netherlands
|
GoPro International B.V.
|
|
The Netherlands
|
GoPro Bucharest S.R.L.
|
|
Romania
|
GoPro Media (UK) Ltd.
|
|
United Kingdom
|
GoPro Care, Inc.
|
|
United States
|
GoPro Care Services, Inc.
|
|
United States
|
GoPro Holdco, Inc.
|
|
United States
|
GoPro Mobility (U.S.), LLC
|
|
United States
|
|
|
|
|
|
|
|
|
|
Date:
|
February 14, 2020
|
/s/ Nicholas Woodman
|
|
|
Nicholas Woodman
Chief Executive Officer
(Principal Executive Officer)
|
Date:
|
February 14, 2020
|
/s/ Brian McGee
|
|
|
Brian McGee
Chief Financial Officer and Chief Operating Officer (Principal Financial Officer) |
By: /s/ Nicholas Woodman
|
Nicholas Woodman
Chief Executive Officer
(Principal Executive Officer)
|
February 14, 2020
|
By: /s/ Brian McGee
|
Brian McGee
Chief Financial Officer and Chief Operating Officer (Principal Financial Officer) |
February 14, 2020
|