Document and Entity Information

9 Months Ended

Oct. 1, 2016

Oct. 31, 2016

Common Class A [Member]

Oct. 31, 2016

Common Class B [Member]

Entity Information [Line Items]

Entity Registrant Name

FITBIT INC

Entity Central Index Key

0001447599

Current Fiscal Year End Date

--12-31

Entity Filer Category

Non-accelerated Filer

Document Type

10-Q

Document Period End Date

Oct. 01, 2016

Document Fiscal Year Focus

2016

Document Fiscal Period Focus

Q3

Amendment Flag

false

Entity Common Stock, Shares Outstanding

170,120,929

53,627,962

Condensed Consolidated Balance Sheets (USD $)

In Thousands, unless otherwise specified

Oct. 1, 2016

Dec. 31, 2015

Current assets:

Cash and cash equivalents

$ 284,220

$ 535,846

Marketable securities

387,882

128,632

Accounts receivable, net

461,351

469,260

Inventories

214,955

178,146

Prepaid expenses and other current assets

86,372

43,530

Total current assets

1,434,780

1,355,414

Property and equipment, net

94,311

44,501

Goodwill

25,217

22,200

Intangible assets, net

14,578

12,216

Deferred tax assets

110,814

83,020

Other assets

10,526

1,758

Total assets

1,690,226

1,519,066

Current liabilities:

Accounts payable

253,138

260,842

Accrued liabilities

218,526

194,977

Deferred revenue

45,001

44,448

Fitbit Force recall reserve

1,494

5,122

Income taxes payable

1,231

2,868

Total current liabilities

519,390

508,257

Other liabilities

53,732

29,358

Total liabilities

573,122

537,615

Commitments and contingencies

Stockholders’ equity:

Class A and Class B common stock

22

21

Additional paid-in capital

832,257

737,820

Accumulated other comprehensive income (loss)

(1,590)

691

Retained earnings

286,415

242,919

Total stockholders’ equity

1,117,104

981,451

Total liabilities and stockholders’ equity

$ 1,690,226

$ 1,519,066

Condensed Consolidated Statements of Operations (USD $)

In Thousands, except Per Share data, unless otherwise specified

3 Months Ended

9 Months Ended

Oct. 1, 2016

Sep. 30, 2015

Oct. 1, 2016

Sep. 30, 2015

Income Statement [Abstract]

Revenue

$ 503,802

$ 409,262

$ 1,595,686

$ 1,146,428

Cost of revenue

263,144

213,249

876,304

593,664

Gross profit

240,658

196,013

719,382

552,764

Operating expenses:

Research and development

82,972

42,890

235,129

95,808

Sales and marketing

79,872

65,115

305,061

178,672

General and administrative

33,333

20,698

106,297

48,327

Change in contingent consideration

0

(7,704)

Total operating expenses

196,177

128,703

646,487

315,103

Operating income

44,481

67,310

72,895

237,661

Interest income (expense), net

970

(216)

2,391

(1,062)

Other income (expense), net

(1,037)

(744)

68

(59,129)

Income before income taxes

44,414

66,350

75,354

177,470

Income tax expense

18,294

20,500

31,900

65,958

Net income

26,120

45,834

43,496

111,512

Less: noncumulative dividends to preferred stockholders

0

(2,526)

Less: undistributed earnings to participating securities

0

(50,316)

Net income attributable to common stockholders—basic

26,120

45,834

43,496

58,670

Add: adjustments for undistributed earnings to participating securities

0

7,655

Net income attributable to common stockholders—diluted

$ 26,120

$ 45,834

$ 43,496

$ 66,325

Net income per share attributable to common stockholders:

Basic (in dollars per share)

$ 0.12

$ 0.22

$ 0.20

$ 0.57

Diluted (in dollars per share)

$ 0.11

$ 0.19

$ 0.18

$ 0.48

Shares used to compute net income per share attributable to common stockholders:

Basic (in shares)

222,412

206,657

219,079

102,741

Diluted (in shares)

243,687

243,660

242,652

136,985

Condensed Consolidated Statements of Comprehensive Income (USD $)

In Thousands, unless otherwise specified

3 Months Ended

9 Months Ended

Oct. 1, 2016

Sep. 30, 2015

Oct. 1, 2016

Sep. 30, 2015

Statement of Comprehensive Income [Abstract]

Net income

$ 26,120

$ 45,834

$ 43,496

$ 111,512

Cash flow hedges:

Change in unrealized gain (loss) on cash flow hedges, net of tax benefit (expense) of $155, $ —, $(1,315), and $ —, respectively

(221)

1,466

2,784

1,466

Less: reclassification for realized net gains included in net income, net of tax expense (benefit) of $ —, $ —, $509, and $ —, respectively

(2,850)

(548)

(4,828)

(548)

Net change, net of tax

(3,071)

918

(2,044)

918

Change in foreign currency translation adjustment, net of tax

(39)

40

(199)

125

Change in unrealized loss on available-for-sale investments, net of tax

(164)

(6)

(38)

(6)

Comprehensive income

$ 22,846

$ 46,786

$ 41,215

$ 112,549

Condensed Consolidated Statements of Comprehensive Income (Parenthetical) (USD $)

In Thousands, unless otherwise specified

3 Months Ended

9 Months Ended

Oct. 1, 2016

Sep. 30, 2015

Oct. 1, 2016

Sep. 30, 2015

Statement of Comprehensive Income [Abstract]

Change in unrealized gain (loss) on cash flow hedges, tax

$ 155

$ 0

$ (1,315)

$ 0

Reclassification for realized net gains included in net income, tax

$ 0

$ 509

$ 0

Condensed Consolidated Statements of Cash Flows (USD $)

In Thousands, unless otherwise specified

9 Months Ended

Oct. 1, 2016

Sep. 30, 2015

Cash Flows from Operating Activities

Net income

$ 43,496

$ 111,512

Adjustments to reconcile net income to net cash provided by operating activities:

Provision for inventory obsolescence

1,014

4,537

Depreciation

23,883

12,372

Write-off of property and equipment

762

0

Amortization of intangible assets

1,578

1,200

Revaluation of redeemable convertible preferred stock warrant liability

0

56,655

Stock-based compensation

58,175

25,684

Change in contingent consideration

0

(7,704)

Deferred income taxes

(27,794)

(32,288)

Excess of tax benefit from stock-based compensation

(25,542)

0

Other

(323)

(109)

Changes in operating assets and liabilities, net of acquisitions:

Accounts receivable

7,756

(5,500)

Inventories

(50,883)

(165,153)

Prepaid expenses and other assets

(38,788)

(4,664)

Fitbit Force recall reserve

(3,628)

(10,817)

Accounts payable

(13,125)

119,768

Accrued liabilities and other liabilities

43,285

30,657

Deferred revenue

554

17,520

Income taxes payable

19,756

(28,159)

Net cash provided by operating activities

40,176

125,480

Cash Flows from Investing Activities

Purchase of property and equipment

(66,798)

(17,748)

Purchases of marketable securities

(552,752)

(124,713)

Sales of marketable securities

45,011

12,070

Maturities of marketable securities

249,269

0

Acquisitions, net of cash acquired

(5,600)

(11,037)

Net cash used in investing activities

(330,870)

(141,428)

Cash Flows from Financing Activities

Payments of offering costs

(1,236)

(4,772)

Proceeds from issuance of common stock

18,316

940

Taxes paid related to net share settlement of restricted stock units

(3,228)

0

Excess of tax benefit from stock-based compensation

25,542

0

Net proceeds from initial public offering

0

420,885

Proceeds from issuance of debt and revolving credit facility, net debt discount

0

160,000

Repayment of debt

0

(294,503)

Net cash provided by financing activities

39,394

282,550

Net increase (decrease) in cash and cash equivalents

(251,300)

266,602

Effect of exchange rate on cash and cash equivalents

(326)

52

Cash and cash equivalents at beginning of period

535,846

195,626

Cash and cash equivalents at end of period

284,220

462,280

Supplemental Disclosure

Cash paid for interest

396

374

Cash paid for income taxes

28,008

120,774

Supplemental Disclosure of Non-Cash Investing and Financing Activity

Purchase of property and equipment included in accounts payable and accrued liabilities

18,177

6,344

Conversion of redeemable convertible preferred stock into Class B common stock

0

67,814

Reclassification of redeemable convertible preferred stock warrant liability to additional paid-in capital

0

72,452

Issuance of redeemable convertible preferred stock upon net exercise of redeemable convertible preferred stock warrants

0

56,678

Deferred offering costs included in accounts payable and accruals

0

354

Issuance of common stock in connection with acquisitions

$ 0

$ 13,317

Basis of Presentation and Summary of Significant Accounting Policies

The accompanying condensed consolidated financial statements are unaudited. The condensed consolidated balance sheet at December 31, 2015 has been derived from the audited financial statements of the Company. The accompanying condensed financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America, or U.S. GAAP, for interim financial information, and in management’s opinion, includes all adjustments, consisting of only normal recurring adjustments, necessary for the fair statement of the Company’s financial position, its results of operations, and cash flows for the interim periods presented. The results of operations for the three and nine months ended October 1, 2016 are not necessarily indicative of the results to be expected for the full fiscal year or any other period.

The accompanying condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto contained in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2015, filed with the Securities and Exchange Commission on February 29, 2016. There have been no significant changes in the Company’s accounting policies from those disclosed in its Annual Report on Form 10-K.

The Company’s fiscal year ends on December 31 of each year. In the first quarter of 2016, the Company adopted a 4-4-5 week quarterly calendar, which, for the 2016 fiscal year, is comprised of four fiscal quarters ending on April 2, 2016, July 2, 2016, October 1, 2016, and December 31, 2016. The Company did not adjust operating results for quarters prior to 2016. There were 91 and 92 days in the three months ended October 1, 2016 and September 30, 2015, respectively, and 275 and 273 days in the nine months ended October 1, 2016 and September 30, 2015, respectively.

The condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany transactions and balances have been eliminated.

Use of Estimates

The preparation of condensed consolidated financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported and disclosed in the condensed consolidated financial statements and accompanying notes. The primary estimates and assumptions made by management related to revenue recognition, reserves for sales returns and incentives, reserves for warranty, valuation of stock options, fair value of derivative assets and liabilities, allowance for doubtful accounts, inventory valuation, accruals for the Fitbit Force recall, fair value of goodwill and acquired tangible and intangible assets and liabilities assumed during acquisitions, the number of reporting segments, the recoverability of intangible assets and their useful lives, contingencies, and the valuations of deferred income tax assets and uncertain tax positions. Actual results could differ from those estimates, and such differences may be material to the condensed consolidated financial statements.

Non-Monetary Transaction

The Company entered into an agreement with a third party during the three months ended October 1, 2016 to exchange inventory for advertising credits and cash. The Company recorded the transaction based on the estimated fair value of the products exchanged. The Company recorded $15.0 million of revenue during the three months ended October 1, 2016 related to the transaction. The $13.0 million of unused advertising credits remaining as of October 1, 2016 were recorded in prepaid expenses and other current assets and other assets. Such credits are expected to be used over three years, and will be expensed as advertising services are received.

Out-of-Period Adjustment

During the first quarter of 2016, the Company identified an error, which resulted in an understatement of income tax expense by $3.0 million for the year ended December 31, 2015. The Company recorded an out-of-period adjustment to correct the error in the quarter ended April 2, 2016. The Company assessed the materiality of this error and concluded the error was not material to 2015 consolidated financial statements and is not expected to be material to 2016 consolidated financial statements, and therefore, the Company recorded the correction in the first quarter of 2016.

Recent Accounting Pronouncements

In May 2014, the Financial Accounting Standards Board, or FASB, issued ASU 2014-09 (ASC 606), Revenue from Contracts with Customers, which affects any entity that either enters into contracts with customers to transfer goods and services or enters into contracts for the transfer of nonfinancial assets. ASU 2014-09 will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. The standard’s core principle is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. In doing so, companies will need to use more judgment and make more estimates than under the currently effective guidance. These may include identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. ASU 2014-09 will become effective for the Company on January 1, 2018 and can be adopted either retrospectively to each prior reporting period presented or as a cumulative effect adjustment as of the date of adoption. In April 2016, the FASB issued ASU 2016-10, which clarifies guidance on identifying performance obligations and licensing implementation. The Company is currently evaluating the impact of this guidance on its consolidated financial statements and has not yet selected a transition method.

In February 2016, the FASB issued ASU 2016-02, Leases. This ASU requires lease assets and lease liabilities arising from leases, including operating leases, to be recognized on the balance sheet. ASU 2016-02 will become effective for the Company on January 1, 2019, and requires adoption using a modified retrospective approach. The Company is currently evaluating the impact of this guidance on its consolidated financial statements.

In March 2016, the FASB issued ASU 2016-09, Compensation — Stock Compensation (Topic 718). This ASU simplifies several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. ASU 2016-09 will become effective for the Company on January 1, 2017 and early adoption is permitted. The Company is currently evaluating the impact of this guidance on its consolidated financial statements.

In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. This ASU provides for a new impairment model which requires measurement and recognition of expected credit losses for most financial assets and certain other instruments. ASU 2016-13 will become effective for the Company on January 1, 2020 and early adoption is permitted. The Company is currently evaluating the impact of this guidance on its consolidated financial statements.

In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230). This ASU provides guidance intended to reduce diversity in practice in how certain transactions are classified in the statement of cash flows. ASU 2016-15 will become effective for the Company on January 1, 2018 and early adoption is permitted. The Company is currently evaluating the impact of this guidance on its consolidated financial statements.

Fair Value Measurements

The carrying values of the Company’s accounts receivable, accounts payable, and accrued liabilities approximated their fair values due to the short period of time to maturity or repayment.

The following tables set forth the Company’s financial instruments that were measured at fair value on a recurring basis by level within the fair value hierarchy (in thousands):



	October 1, 2016
	Level 1		Level 2		Total
Assets:
Money market funds	$	97,719	$	—	$	97,719
U.S. government agencies	—		86,748		86,748
Corporate debt securities	—		321,872		321,872
Derivative assets	—		6,882		6,882
Total	$	97,719	$	415,502	$	513,221
Liabilities:
Derivative liabilities	$	—	$	3,535	$	3,535



	December 31, 2015
	Level 1		Level 2		Total
Assets:
Money market funds	$	248,128	$	—	$	248,128
U.S. government agencies	—		113,314		113,314
Corporate debt securities	—		193,964		193,964
Derivative assets	—		6,002		6,002
Total	$	248,128	$	313,280	$	561,408
Liabilities:
Derivative liabilities	$	—	$	2,640	$	2,640

The fair value of the Company’s Level 1 financial instruments is based on quoted market prices in active markets for identical instruments. The fair value of the Company’s Level 2 financial instruments is based on observable inputs other than quoted prices in active markets for identical assets and liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data.

In addition, Level 2 assets and liabilities include derivative financial instruments associated with hedging activity, which are further discussed in Note 3. Derivative financial instruments are initially measured at fair value on the contract date and are subsequently remeasured to fair value at each reporting date using inputs such as spot rates, forward rates, and discount rates. There is not an active market for each hedge contract, but the inputs used to calculate the value of the instruments are tied to active markets.

There were no Level 3 assets or liabilities as of October 1, 2016 and December 31, 2015. There have been no transfers between fair value measurement levels during the three and nine months ended October 1, 2016 and September 30, 2015.

Financial Instruments

Cash, Cash Equivalents, and Marketable Securities

The Company’s marketable securities are classified as available-for-sale as of the balance sheet date and are reported at fair value with unrealized gains and losses reported, net of tax, as a separate component of accumulated other comprehensive income (loss) in stockholders’ equity. Because the Company views marketable securities as available to support current operations as needed, it has classified all available-for-sale securities as current assets. Realized gains or losses and other-than-temporary impairments, if any, on available-for-sale securities are reported in other income (expense), net as incurred.

Investments are reviewed periodically to identify potential other-than-temporary impairments. No impairment loss has been recorded on the securities included in the tables below because the Company believes that the decrease in fair value of these securities is temporary and expects to recover up to, or beyond, the initial cost of investment for these securities.

The following table sets forth cash, cash equivalents, and marketable securities as of October 1, 2016 (in thousands):



	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value		Cash and Cash Equivalents		Marketable Securities
Cash	$	165,763	$	—	$	—		$	165,763	$	165,763	$	—
Money market funds	97,719		—		—			97,719		97,719		—
U.S. government agencies	86,691		58		(1		)	86,748		—		86,748
Corporate debt securities	322,021		5		(154		)	321,872		20,738		301,134
Total	$	672,194	$	63	$	(155	)	$	672,102	$	284,220	$	387,882

The following table sets forth cash, cash equivalents, and marketable securities as of December 31, 2015 (in thousands):



	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value		Cash and Cash Equivalents		Marketable Securities
Cash	$	109,072	$	—	$	—		$	109,072	$	109,072	$	—
Money market funds	248,128		—		—			248,128		248,128		—
U.S. government agencies	113,315		3		(4		)	113,314		63,464		49,850
Corporate debt securities	194,018		1		(55		)	193,964		115,182		78,782
Total	$	664,533	$	4	$	(59	)	$	664,478	$	535,846	$	128,632

The gross unrealized gains or losses on marketable securities as of October 1, 2016 and December 31, 2015 were not material. There were no available-for-sale investments as of October 1, 2016 and December 31, 2015 that have been in a continuous unrealized loss position for greater than twelve months.

The following table classifies marketable securities by contractual maturities (in thousands):



	October 1, 2016		December 31, 2015
	October 1, 2016		December 31, 2015
Due in one year	$	362,322	$	128,632
Due in one to two years	25,560		—
Total	$	387,882	$	128,632

Derivative Financial Instruments

The Company operates in foreign countries, which exposes it to market risk associated with foreign currency exchange rate fluctuations between the U.S. dollar and various foreign currencies. In order to manage this risk, the Company may hedge a portion of its foreign currency exposures related to outstanding monetary assets and liabilities as well as forecasted revenues and expenses, using foreign currency exchange forward or option contracts. In general, the market risk related to these contracts is offset by corresponding gains and losses on the hedged transactions. The Company does not enter into derivative contracts for trading or speculative purposes.

Cash Flow Hedges

Beginning in the third quarter of 2015, the Company has entered into foreign currency derivative contracts designated as cash flow hedges to hedge certain forecasted revenue and expense transactions denominated in currencies other than the U.S. dollar. The Company’s cash flow hedges consist of forward contracts with maturities of 12 months or less.

The Company periodically assesses the effectiveness of its cash flow hedges. Effectiveness represents a derivative instrument’s ability to generate offsetting changes in cash flows related to the hedged risk. All elements of the hedged transaction are included in the effectiveness assessment. The Company records the gains or losses, net of tax, related to the effective portion of its cash flow hedges as a component of accumulated other comprehensive income (loss) in stockholders’ equity and subsequently reclassifies the gains or losses into revenue and operating expenses when the underlying hedged transactions are recognized. The Company records the gains or losses related to the ineffective portion of the cash flow hedges, if any, immediately in other income (expense), net. If the hedged transaction becomes probable of not occurring, the corresponding amounts in accumulated other comprehensive income (loss) would immediately be reclassified to other income (expense), net. Cash flows related to the Company’s cash flow hedging program are recognized as cash flows from operating activities in its statements of cash flows.

The Company had outstanding contracts with a total notional amount of $283.2 million and $63.3 million in cash flow hedges for forecasted revenue and expense transactions, respectively, as of October 1, 2016, and $254.1 million in cash flow hedges for forecasted revenue transactions as of December 31, 2015.

Balance Sheet Hedges

The Company enters into foreign exchange contracts to hedge certain monetary assets and liabilities that are denominated in currencies other than the functional currency of its subsidiaries. These foreign exchange contracts are carried at fair value, do not qualify for hedge accounting treatment, and are not designated as hedging instruments. Changes in the value of the foreign exchange contracts are recognized in other income (expense), net and offset the foreign currency gain or loss on the underlying net monetary assets or liabilities.

The Company had outstanding balance sheet hedges with a total notional amount of $141.0 million and $104.8 million as of October 1, 2016 and December 31, 2015, respectively.

Fair Value of Foreign Currency Derivatives

The foreign currency derivative contracts that were not settled at the end of the period are recorded at fair value, on a gross basis, in the condensed consolidated balance sheets. The following table presents the fair value of the Company’s foreign currency derivative contracts as of the periods presented (in thousands):



		October 1, 2016				December 31, 2015
	Balance Sheet Location	Fair Value Derivative Assets		Fair Value Derivative Liabilities		Fair Value Derivative Assets		Fair Value Derivative Liabilities
Cash flow designated hedges	Prepaid expenses and other current assets	$	1,403	$	—	$	3,116	$	—
Cash flow designated hedges	Accrued liabilities	—		2,438		—		1,327
Hedges not designated	Prepaid expenses and other current assets	5,479		—		2,886		—
Hedges not designated	Accrued liabilities	—		1,097		—		1,313
Total fair value of derivative instruments		$	6,882	$	3,535	$	6,002	$	2,640

Financial Statement Effect of Foreign Currency Derivative Contracts

The following table presents the pre-tax impact of the Company’s foreign currency derivative contracts on other comprehensive income, or OCI, and the condensed consolidated statements of operations for the periods presented (in thousands):



		Three Months Ended						Nine Months Ended
	Income Statement Location	October 1, 2016			September 30, 2015			October 1, 2016			September 30, 2015
Foreign exchange cash flow hedges
Gain (loss) recognized in OCI – effective portion		$	(560	)	$	1,466		$	975		$	1,466
Gain reclassified from OCI into income – effective portion	Revenue	3,060			580			1,511			580
Gain (loss) reclassified from OCI into income – effective portion	Operating expenses	(65		)	(32		)	2,343			(32		)
Gain (loss) recognized in income – ineffective portion	Other income (expense), net	76			104			(109		)	104

Foreign exchange balance sheet hedges
Gain (loss) recognized in income	Other income (expense), net	$	(477	)	$	3,705		$	3,567		$	6,009

As of October 1, 2016, all net derivative gains related to the Company’s cash flow hedges will be reclassified from OCI into net income within the next 12 months.

Offsetting of Foreign Currency Derivative Contracts

The Company presents its derivative assets and derivative liabilities at gross fair values in the condensed consolidated balance sheets. The Company generally enters into master netting arrangements, which mitigate credit risk by permitting net settlement of transactions with the same counterparty. The Company is not required to pledge, and is not entitled to receive, cash collateral related to these derivative instruments.

The following tables set forth the available offsetting of net derivative assets under the master netting arrangements as of October 1, 2016 and December 31, 2015 (in thousands):



	October 1, 2016
							Gross Amounts Not Offset in Condensed Consolidated Balance Sheets
	Gross Amounts of Recognized Assets		Gross Amounts Offset in the Condensed Consolidated Balance Sheets		Net Amounts Presented in Condensed Consolidated Balance Sheets		Financial Instruments		Cash Collateral Received		Net Amount
Foreign exchange contracts	$	6,882	$	—	$	6,882	$	3,528	$	—	$	3,354



	December 31, 2015
							Gross Amounts Not Offset in Condensed Consolidated Balance Sheets
	Gross Amounts of Recognized Assets		Gross Amounts Offset in the Condensed Consolidated Balance Sheets		Net Amounts Presented in Condensed Consolidated Balance Sheets		Financial Instruments		Cash Collateral Received		Net Amount
Foreign exchange contracts	$	6,002	$	—	$	6,002	$	2,100	$	—	$	3,902

The following tables set forth the available offsetting of net derivative liabilities under the master netting arrangements as of October 1, 2016 and December 31, 2015 (in thousands):



	October 1, 2016
							Gross Amounts Not Offset in Condensed Consolidated Balance Sheets
	Gross Amounts of Recognized Liabilities		Gross Amounts Offset in the Condensed Consolidated Balance Sheets		Net Amounts Presented in Condensed Consolidated Balance Sheets		Financial Instruments		Cash Collateral Pledged		Net Amount
Foreign exchange contracts	$	3,535	$	—	$	3,535	$	3,528	$	—	$	7



	December 31, 2015
							Gross Amounts Not Offset in Condensed Consolidated Balance Sheets
	Gross Amounts of Recognized Liabilities		Gross Amounts Offset in the Condensed Consolidated Balance Sheets		Net Amounts Presented in Condensed Consolidated Balance Sheets		Financial Instruments		Cash Collateral Pledged		Net Amount
Foreign exchange contracts	$	2,640	$	—	$	2,640	$	2,100	$	—	$	540

Balance Sheet Components

Revenue Reserve

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



	Three Months Ended						Nine Months Ended
	October 1, 2016			September 30, 2015			October 1, 2016			September 30, 2015
Beginning balances	$	80,277		$	35,265		$	74,045		$	26,559
Increases	46,654			46,990			166,205			100,342
Returns taken	(59,763		)	(41,043		)	(173,082		)	(85,689		)
Ending balances	$	67,168		$	41,212		$	67,168		$	41,212

Increases in the revenue returns reserve include provisions for open box returns and stock rotations.

Inventories

Inventories consisted of the following (in thousands):



	October 1, 2016		December 31, 2015
	October 1, 2016		December 31, 2015
Components	$	2,452	$	5,359
Finished goods	212,503		172,787
Total inventories	$	214,955	$	178,146

Prepaid Expenses and Other Current Assets

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



	October 1, 2016		December 31, 2015
	October 1, 2016		December 31, 2015
POP displays, net	$	28,721	$	9,990
Prepaid income taxes	12,539		11,889
Non-trade receivable	7,155		3,196
Derivative assets	6,882		6,002
Other	31,075		12,453
Total prepaid expenses and other current assets	$	86,372	$	43,530

Property and Equipment, Net

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



	October 1, 2016			December 31, 2015
	October 1, 2016			December 31, 2015
Tooling and manufacturing equipment	$	92,199		$	53,092
Furniture and office equipment	12,518			6,809
Purchased and internally-developed software	9,232			3,794
Leasehold improvements	25,931			8,388
Total property and equipment	139,880			72,083
Less: Accumulated depreciation and amortization	(45,569		)	(27,582		)
Property and equipment, net	$	94,311		$	44,501

Goodwill and Intangible Assets

The carrying amount of goodwill was $25.2 million and $22.2 million as of October 1, 2016 and December 31, 2015, respectively, and the increase in the carrying amount during the nine months ended October 1, 2016 was attributable to an acquisition in May 2016. See Note 11 for additional information.

The carrying amounts of the intangible assets as of October 1, 2016 and December 31, 2015 were as follows (in thousands, except useful life). In-process research and development is not amortized until the completion or abandonment of the related development.



	October 1, 2016							December 31, 2015							Weighted Average Remaining Useful Life (years)
	Gross		Accumulated Amortization			Net		Gross		Accumulated Amortization			Net		Weighted Average Remaining Useful Life (years)

Developed technology	$	12,640	$	(2,796	)	$	9,844	$	12,640	$	(1,442	)	$	11,198	5.5
Trademarks and other	1,278		(484		)	794		1,278		(260		)	1,018		3.5
Total finite-lived intangible assets subject to amortization, net	13,918		(3,280		)	10,638		13,918		(1,702		)	12,216
In-process research and development	3,940		—			3,940		—		—			—
Total intangible assets, net	$	17,858	$	(3,280	)	$	14,578	$	13,918	$	(1,702	)	$	12,216

Total amortization expense related to intangible assets was $0.5 million for each of the three months ended October 1, 2016 and September 30, 2015, and $1.6 million and $1.2 million for the nine months ended October 1, 2016 and September 30, 2015, respectively.

The estimated future amortization expense of acquired finite-lived intangible assets to be charged to cost of revenue and operating expenses after October 1, 2016, is as follows (in thousands):



	Cost of Revenue		Operating Expenses		Total

Remaining 2016	$	452	$	57	$	509
2017	1,806		230		2,036
2018	1,806		230		2,036
2019	1,806		230		2,036
2020	1,806		47		1,853
Thereafter	2,168		—		2,168
Total finite-lived intangible assets, net	$	9,844	$	794	$	10,638

Accrued Liabilities

Accrued liabilities consisted of the following (in thousands):



	October 1, 2016		December 31, 2015
	October 1, 2016		December 31, 2015
Product warranty	$	62,941	$	40,212
Accrued sales and marketing	27,938		33,389
Employee related liabilities	26,518		27,394
Accrued sales incentives	20,660		24,324
Accrued co-op advertising and marketing development funds	19,233		29,077
Inventory received but not billed	16,069		4,292
Accrued manufacturing expense and freight	14,536		10,723
Sales taxes and VAT payable	6,991		8,349
Derivative liabilities	3,535		2,640
Customer deposits	2,878		2,062
Accrued legal fees	2,555		3,138
Other	14,672		9,377
Accrued liabilities	$	218,526	$	194,977

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



	Three Months Ended						Nine Months Ended
	October 1, 2016			September 30, 2015			October 1, 2016			September 30, 2015
Beginning balances	$	76,841		$	31,063		$	40,212		$	20,098
Charged to cost of revenue	30,814			15,687			109,324			37,752
Changes related to pre-existing warranties	(18,727		)	(8,968		)	(19,214		)	(8,968		)
Settlement of claims	(25,987		)	(12,710		)	(67,381		)	(23,810		)
Ending balances	$	62,941		$	25,072		$	62,941		$	25,072


(1)	Does not include reserves established as a result of the recall of the Fitbit Force. See the section titled “—Fitbit Force Recall Reserve” for additional information regarding such reserves.

During the three and nine months ended October 1, 2016, changes related to pre-existing warranties resulted primarily from a reduction in the estimated cost of replacement units. During the three and nine months ended September 30, 2015, changes related to pre-existing warranties resulted from a reduction in the estimated number of units to be replaced and in the estimated cost of replacement units.

Fitbit Force Recall Reserve

In March 2014, the Company announced a recall for one of its products, the Fitbit Force, or Fitbit Force Recall. The product recall, which is regulated by the U.S. Consumer Product Safety Commission, covered all Fitbit Force units sold since the product was first introduced in October 2013. The product recall program has no expiration date.

As a result of the product recall, the Company established reserves that include cost estimates for customer refunds, logistics and handling fees for managing product returns and processing refunds, obsolescence of on-hand inventory, cancellation charges for existing purchase commitments and rework of component inventory with the contract manufacturer, write-offs of tooling and manufacturing equipment, and legal settlement costs.

Fitbit Force Recall reserve activities were as follows (in thousands):



	Three Months Ended						Nine Months Ended
	October 1, 2016			September 30, 2015			October 1, 2016			September 30, 2015
Beginning balances	$	2,148		$	12,894		$	5,122		$	22,476
Charged (benefit) to cost of revenue	—			—			—			(2,040		)
Charged (benefit) to general and administrative	—			20			—			(53		)
Settlement of claims	(654		)	(1,255		)	(3,628		)	(8,724		)
Ending balances	$	1,494		$	11,659		$	1,494		$	11,659

Accumulated Other Comprehensive Income (Loss)

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



	Unrealized Gains (Losses) on Cash Flow Hedges			Currency Translation Adjustments		Unrealized Gains (Losses) on Available-for-Sale Investments			Total
Balance at December 31, 2014	$	—		$	37	$	—		$	37
Other comprehensive income (loss) before reclassifications	1,466			125		(6		)	1,585
Amounts reclassified from AOCI	(548		)	—		—			(548		)
Other comprehensive income (loss)	918			125		(6		)	1,037
Balance at September 30, 2015	$	918		$	162	$	(6	)	$	1,074



	Unrealized Gains (Losses) on Cash Flow Hedges			Currency Translation Adjustments			Unrealized Gains (Losses) on Available-for-Sale Investments			Total
Balance at December 31, 2015	$	751		$	(5	)	$	(55	)	$	691
Other comprehensive income (loss) before reclassifications	2,784			(199		)	(38		)	2,547
Amounts reclassified from AOCI	(4,828		)	—			—			(4,828		)
Other comprehensive income (loss)	(2,044		)	(199		)	(38		)	(2,281		)
Balance at October 1, 2016	$	(1,293	)	$	(204	)	$	(93	)	$	(1,590	)

Long-Term Debt

2014 Credit Agreement

In August 2014, the Company entered into an amended and restated credit agreement, or Asset-Based Credit Facility, with a borrowing limit of $180.0 million. The Asset-Based Credit Facility allowed the Company to borrow up to the lesser of (i) $180.0 million, including up to $50.0 million for the issuance of letters of credit and up to $25.0 million for swing line loans and (ii) the borrowing base then in effect less the amount then outstanding under letters of credit and loans. During the nine months ended September 30, 2015, the effective interest rate on the revolving line of credit was 4.25%. The Asset-Based Credit Facility was terminated in December 2015.

2014 Revolving Credit and Guarantee Agreement

In August 2014, the Company entered into a revolving credit and guarantee agreement, or Cash Flow Facility. In October 2014, the Company amended the Cash Flow Facility to increase the borrowing limit under the Cash Flow Facility. The Cash Flow Facility allowed the Company to borrow up to $50.0 million, including up to $10.0 million for the issuance of letters of credit and up to $10.0 million for swing line loans. During the nine months ended September 30, 2015, the effective interest rate on the revolving line of credit was 3.59%. The Cash Flow Facility was terminated in December 2015.

2015 Credit Agreement

In December 2015, the Company entered into a second amended and restated credit agreement, or Senior Facility, to replace the existing Asset-Based Credit Facility and Cash Flow Facility. This Senior Facility allows the Company to borrow up to $250.0 million, including up to $50.0 million for the issuance of letters of credit and up to $25.0 million for swing line loans. Borrowings under the Senior Facility may be drawn as Alternate Base Rate, or ABR, loans or Eurodollar loans, and mature in December 2020. ABR loans bear interest at a variable rate equal to the applicable margin plus the highest of (i) the prime rate, (ii) the federal funds effective rate plus 0.5%, and (iii) the Eurodollar rate plus 1.0%, but in any case at a minimum rate of 3.25% per annum. Eurodollar loans bear interest at a variable rate based on the LIBOR rate and Eurodollar reserve requirements, but in any case at a minimum rate of 1.0% per annum.

The Company has the option to repay its borrowings under the Senior Facility without penalty prior to maturity. The Senior Facility requires the Company to comply with certain financial covenants, including maintaining a consolidated fixed charge coverage ratio of at least 1.15:1, and a consolidated leverage ratio of less than 3:1. The Senior Facility also requires the Company to comply with certain non-financial covenants. The Senior Facility contains customary covenants that restrict the Company’s ability to, among other things, incur additional indebtedness, sell certain assets, guarantee certain obligations of third parties, declare dividends or make certain distributions, and undergo a merger or consolidation or certain other transactions. The Company was in compliance with these covenants as of October 1, 2016. Obligations under the Senior Facility are collateralized by substantially all of the Company’s assets, excluding the Company’s intellectual property. As of October 1, 2016, there were no outstanding borrowings under the Senior Facility.

Letters of Credit

As of October 1, 2016 and December 31, 2015, the Company had outstanding letters of credit totaling $37.9 million and $17.1 million, respectively, issued to cover various security deposits on the Company’s facility leases.

Commitments and Contingencies

Leases

The Company leases office space in various locations with expiration dates between 2016 and 2024. The lease agreements often include leasehold improvement incentives, escalating lease payments, renewal provisions and other provisions which require the Company to pay taxes, insurance, maintenance costs or defined rent increases. Rent expense is recorded over the lease terms on a straight-line basis. In April 2016, the Company entered into a sublease to expand the Company’s existing headquarters. The lease expires in 2024. Future minimum payments under the leases as of October 1, 2016 were $305.2 million.

Legal Proceedings

Fitbit Force. In 2014, class action and personal injury lawsuits were filed against the Company based upon claims of allergic reactions from adhesives in the Fitbit Force, and alleged violations of various state false advertising and unfair competition statutes based on the Company’s sale and marketing of the Fitbit Force. The class action cases were settled in 2014. Certain personal injury complaints were filed in 2015, and the settlement of those claims is almost final. In the fourth quarter of 2015, the Company received proceeds from the insurance policies that apply to these claims and related legal fees, and the Company recorded an accrual for liabilities arising under these claims that was immaterial and falls within the amount of the insurance proceeds received.

Fitbit Zip, Fitbit One, Fitbit Flex, Fitbit Charge, Fitbit Charge HR, and Fitbit Surge. In 2014, one personal injury lawsuit was filed against the Company based upon claims of skin irritation from the Fitbit Flex. Additional lawsuits were filed in 2015 based upon claims of personal injury from the Fitbit Zip, Fitbit One, Fitbit Flex, Fitbit Charge, Fitbit Charge HR, and Fitbit Surge. Settlement of those claims is almost final. In the fourth quarter of 2015, the Company received proceeds from the insurance policies that apply to these claims and related legal fees, and the Company recorded an accrual for liabilities arising under these claims that was immaterial and falls within the amount of the insurance proceeds received.

Jawbone. On May 27, 2015, Aliphcom, Inc. d/b/a Jawbone, or Jawbone, filed a lawsuit in the Superior Court of California in the County of San Francisco against the Company and certain of its employees who were formerly employed by Jawbone, alleging trade secret misappropriation and unfair and unlawful business practices against all defendants, and alleging breach of contract and breach of implied covenant of good faith and fair dealing against the employee defendants. The complaint alleges, among other things, that prior to leaving Jawbone at various times in 2015, the employees downloaded Jawbone company documents and materials, including allegedly confidential and trade secret information, and that these employees are using such information in the development of the Company’s products. The complaint also alleges that the Company recruited those employees with the intent of using Jawbone’s proprietary information. The complaint seeks unspecified damages, including punitive damages and injunctive relief. On May 31, 2016, the Court granted a demurrer on the unfair business practices cause of action as to both the Company and the individual defendants. On June 23, 2016, Jawbone filed a Second Amended Complaint, adding an additional employee defendant and making additional allegations.

On June 10, 2015, Jawbone and BodyMedia, Inc., a wholly-owned subsidiary of Jawbone, or BodyMedia, filed a lawsuit against the Company in the U.S. District Court for the Northern District of California alleging that the Company infringes three U.S. patents held by them: U.S. Patent Nos. 8,446,275, 8,073,707, and 8,398,546. Jawbone and BodyMedia allege that these patents have been infringed by a substantial majority of the Company’s products.

On July 3, 2015, Jawbone and BodyMedia amended their complaint to add three additional U.S. patents to the infringement claims against the Company: U.S. Patent Nos. 8,529,811, 8,793,522, and 8,961,413. The complaint seeks unspecified compensatory damages and attorneys’ fees from the Company and to permanently enjoin the Company from making, manufacturing, using, selling, importing, or offering the Company’s products for sale. The lawsuit has been stayed pending the investigation in the ITC.

On July 7, 2015, Jawbone and BodyMedia filed a complaint with the ITC requesting an investigation into purported violations of the Tariff Act of 1930 by the Company and Flextronics International Ltd. and Flextronics Sales and Marketing (A-P) Ltd. The complaint alleges that the Company’s products infringe the same six U.S. patents at issue in action brought against the Company in federal court. The complaint makes the same allegations of trade secret misappropriation, unfair competition and unfair acts as a result of the Company’s hiring of the former Jawbone employees, as in the action brought against it and certain of the Company’s employees in the state case. The complaint seeks a limited exclusion order and a cease and desist order halting the importation and sale of the Company’s products that allegedly infringe upon Jawbone’s patents and misappropriate Jawbone’s trade secrets. The ITC instituted the investigation on August 17, 2015.

On February 8, 2016, Jawbone filed a motion for partial termination of the investigation as to the ‘522 patent after discovery showed the Company’s products do not actually practice the patent. On March 4, 2016, Jawbone filed a motion for partial termination of the investigation as to the ‘811 patent after a claim construction ruling that was favorable to the Company suggested non-infringement by the Company’s products. On March 4, 2016, the administrative law judge, or ALJ, issued an Initial Determination, or ID, that granted a Motion for Summary Determination as to the ‘546 and ‘275 patents on grounds they are ineligible subject matter under 35 U.S.C. § 101. The ID was affirmed by the ITC on April 4, 2016. On June 3, 2016, Jawbone filed a notice of appeal in the Federal Circuit. On April 28, 2016, the ALJ issued an ID that granted a Motion for Summary Determination as to the ‘707 and ‘413 patents on grounds they are ineligible subject matter under 35 U.S.C. § 101. The ID was affirmed by the ITC on June 2, 2016.

A trial on the trade secrets allegations took place from May 9 to May 17, 2016. On August 23, 2016, the ALJ issued an ID that concluded that the Company did not misappropriate any Jawbone trade secrets. On October 20, 2016, the ITC declined to review the ID, making it a Final Determination, and terminated the investigation in the ITC.

On September 3, 2015, the Company filed a complaint for patent infringement against Jawbone in the U.S. District Court for the District of Delaware, asserting that its activity trackers (UP Move, UP24, UP3, and UP4) infringe U.S. Patent Nos. 8,909,543, 9,031,812, and 9,042,971. On September 8, 2015, the Company filed a complaint for patent infringement against Jawbone in the U.S. District Court for the Northern District of California, asserting that its activity trackers infringe U.S. Patent Nos. 9,026,053, 9,084,923, and 9,106,307. On October 29, 2015, the Company filed a complaint for patent infringement against Jawbone in the United States District Court for the District of Delaware, asserting that its activity trackers infringe U.S. Patent Nos. 8,920,332, 8,868,377, and 9,089,760.

On November 2, 2015, the Company filed a complaint with the ITC requesting an investigation into violations of the Tariff Act of 1930 by Jawbone and Body Media. The complaint asserts that Jawbone’s products infringe U.S. Patent Nos. 8,920,332, 8,868,377, and 9,089,760. The complaint seeks a limited exclusion order and a cease and desist order halting the importation and sale of Jawbone’s products that the Company believes infringe upon its patents. The ITC instituted the investigation on December 1, 2015. On July 20, 2016, the ALJ issued an Initial Determination that granted a Motion for Summary Determination as to the ‘332, ‘377, and ‘760 patents on grounds they are ineligible subject matter under 35 U.S.C. § 101. As a result, the investigation was terminated and the August 4, 2016 trial date cancelled. On September 7, 2016, the ITC reviewed the Initial Determination and vacated the Initial Determination’s grant of summary determination as to the ‘332 and ‘377 patents. No new trial date has been scheduled.

The first case filed by the Company against Jawbone in the District of Delaware, as to the ’543, ’812, and ’971 patents, has been transferred to the Northern District of California. The second case filed by the Company against Jawbone in the District of Delaware, as to the ’332, ’377, and ’760 patents, has been stayed, pending a determination in the ITC on the same patents. In the case filed by the Company in the Northern District of California, on October 30, 2015, Jawbone answered and made an antitrust counterclaim, asserting that the Company’s infringement claims are somehow “sham litigation” and that by asserting these claims and hiring some of Jawbone’s employees, the Company is allegedly monopolizing a market of personal fitness trackers. In response to the Company’s motion to dismiss the antitrust counterclaim, on January 13, 2016, Jawbone amended its Answer and antitrust counterclaim. The Company moved to stay and bifurcate the antitrust claim, and on May 27, 2016, the Court granted the motion. On June 15, 2016, Jawbone filed a Motion for Summary Judgment, which the Company opposed. On July 12, 2016, Jawbone withdrew its motion.

The Company intends to vigorously defend and prosecute each of the Jawbone litigation matters and, based on its review, the Company believes it has valid defenses and claims with respect to each of these matters. However, litigation is inherently uncertain, and any judgment or injunctive relief entered against the Company or any adverse settlement could materially and adversely impact its business, financial condition, operating results, and prospects. Regarding the six matters still in the early stages of litigation, the Company is unable to estimate a reasonably possible loss or range of loss, if any, that may result from these matters. In addition, these litigation matters are complex, likely to involve significant management time and attention, and the cost of defending and prosecuting these matters is likely to be expensive, regardless of outcome.

Sleep Tracking. On May 8, 2015, a purported class action lawsuit was filed against the Company in the U.S. District Court for the Northern District of California, alleging that the sleep tracking function available in certain trackers does not perform as advertised. Plaintiffs seek class certification, restitution, an award of unspecified compensatory and punitive damages, an award of reasonable costs and expenses, including attorneys’ fees, and other further relief as the Court may deem just and proper. Plaintiffs have amended their complaint four times, and on January 15, 2016, the Company moved to dismiss the Fourth Amended Complaint. On July 15, 2016, the Court denied the motion to dismiss. Trial is currently scheduled for May 30, 2017.

The Company believes that the plaintiffs’ allegations are without merit, and intends to vigorously defend against the claims. Because the Company is in the early stages of this litigation matter, the Company is unable to estimate a reasonably possible loss or range of loss, if any, that may result from this matter.

Heart Rate Tracking. On January 6, 2016 and February 16, 2016, two purported class action lawsuits were filed against the Company in the U.S. District for the Northern District of California, alleging that the PurePulse heart rate tracking technology in the Fitbit Charge HR and Fitbit Surge do not consistently and accurately record users’ heart rates. Plaintiffs allege common law claims as well as violations of various states’ false advertising and unfair competition statutes based on the Company’s sale and marketing of the Fitbit Charge HR and Fitbit Surge. Plaintiffs seek class certification, injunctive and declaratory relief, restitution, an award of unspecified compensatory damages, exemplary damages, punitive damages, and statutory penalties and damages, an award of reasonable costs and expenses, including attorneys’ fees, and other further relief as the Court may deem just and proper. On April 15, 2016, the plaintiffs filed a Consolidated Master Class Action Complaint that combines the plaintiffs from the two previously filed complaints. On May 19, 2016, the plaintiffs filed an Amended Consolidated Master Class Action Complaint. Attached as an exhibit was a “study” commissioned by the plaintiffs and performed by two researchers at California State Polytechnic University, Pomona, which allegedly found that the Fitbit devices incorrectly measured heart rate by an average of 20 beats per minute during moderate to high exercise. The Company has not yet answered. On November 10, 2016, the parties have a hearing on whether the issue of arbitrability should be decided by the arbitrator.

The Company believes that the plaintiffs’ allegations are without merit, and intends to vigorously defend against the claims. Because the Company is in the early stages of this litigation matter, the Company is unable to estimate a reasonably possible loss or range of loss, if any, that may result from this matter.

Federal Securities Class Action. On January 11, 2016, a putative securities class action was filed in the U.S. District Court for the Northern District of California naming as defendants the Company and certain of its officers (the “Federal Securities Class Action”). On May 10, 2016, the Court appointed the Fitbit Investor Group (consisting of five individual investors) as lead plaintiff. The amended complaint, filed on July 1, 2016, names as defendants the Company, certain of its officers and directors, and certain financial institutions that acted as underwriters in connection with the Company’s June 2015 initial public offering, or IPO. Plaintiffs allege violations of the Securities Act of 1933, as amended, or the Securities Act, and the Securities Exchange Act of 1934, as amended, or the Exchange Act, based on alleged materially false and misleading statements about the Company’s products between October 27, 2014 and November 23, 2015. Plaintiffs seek to represent a class of persons who purchased or otherwise acquired the Company’s securities (i) on the open market between June 18, 2015 and May 19, 2016; and/or (ii) pursuant to or traceable to the IPO. Plaintiffs seek class certification, an award of unspecified compensatory damages, an award of reasonable costs and expenses, including attorneys’ fees, and other further relief as the Court may deem just and proper. The Company filed a motion to dismiss the Amended Complaint on July 29, 2016. On October 26, 2016, the Court denied the motion to dismiss.

The Company believes that the plaintiffs’ allegations are without merit, and intends to vigorously defend against the claims. Because the Company is in the early stages of this litigation matter, the Company is unable to estimate a reasonably possible loss or range of loss, if any, that may result from this matter.

State Securities Class Action. On April 28, 2016, a putative class action lawsuit alleging violations of the Securities Act was filed in the Superior Court of California, County of San Mateo, naming as defendants the Company, certain of its officers, its board members, the underwriters for the IPO, and a number of its investors (the “San Mateo Action”). On May 23, 2016, the Court granted plaintiff’s request to voluntarily dismiss the investor defendants. Plaintiff alleges that the IPO registration statement contained material misstatements about the Company’s products. Plaintiff seeks to represent a class of persons who purchased Fitbit common stock in and/or traceable to the IPO. Plaintiff seeks class certification, an award of unspecified compensatory damages, an award of reasonable costs and expenses, including attorneys’ fees, and other further relief as the Court may deem just and proper.

On May 17, 2016, a shareholder class action lawsuit was filed in the Superior Court of California, County of San Francisco alleging claims similar to those at issue in the San Mateo Action and the Federal Securities Class Action (the “San Francisco Action”). The complaint alleges violations of the Securities Act based on alleged material misstatements in the registration statements for the IPO and November 2015 follow-on public offering and names as defendants the Company, certain of its officers and directors, the underwriters for the Company’s public offerings, and two of the Company’s investors. Plaintiff seeks to represent a class of persons who acquired Fitbit common stock pursuant and/or traceable to the IPO and follow-on public offering.

The Company removed both the San Mateo Action and the San Francisco Action to the U.S. District Court for the Northern District of California. On July 27, 2016, the District Court remanded the actions back to state court. Defendants have not yet answered. On September 19, 2016, the San Mateo Action was transferred to the Superior Court of California, County of San Francisco.

The Company believes that the plaintiffs’ allegations in these actions are without merit, and intends to vigorously defend against the claims. Because the Company is in the early stages of this litigation matter, the Company is unable to estimate a reasonably possible loss or range of loss, if any, that may result from this matter.

Other. The Company is and, from time to time, may in the future become, involved in other legal proceedings in the ordinary course of business. The Company currently believes that the outcome of any of these existing legal proceedings, including the aforementioned cases, either individually or in the aggregate, will not have a material impact on the operating results, financial condition or cash flows of the Company. With respect to existing legal proceedings, the Company has either determined that the existence of a material loss is not reasonably possible or that it is unable to estimate a reasonably possible loss or range of loss. The Company may incur substantial legal fees, which are expensed as incurred, in defending against these legal proceedings.

Indemnifications

In the ordinary course of business, the Company enters into agreements that may include indemnification provisions. Pursuant to such agreements, the Company may indemnify, hold harmless and defend an indemnified party for losses suffered or incurred by the indemnified party. Some of the provisions will limit losses to those arising from third-party actions. In some cases, the indemnification will continue after the termination of the agreement. The maximum potential amount of future payments the Company could be required to make under these provisions is not determinable. To date, the Company has not incurred material costs to defend lawsuits or settle claims related to these indemnification provisions. The Company has also entered into indemnification agreements with its directors and officers that may require the Company to indemnify its directors and officers against liabilities that may arise by reason of their status or service as directors or officers to the fullest extent permitted by Delaware corporate law. The Company also currently has directors’ and officers’ insurance.

Stock Plan

Equity Incentive Plans

In May 2015, the Company’s board of directors and stockholders adopted and approved the 2015 Equity Incentive Plan, or 2015 Plan. The 2015 Plan became effective on June 16, 2015 and serves as the successor to the Amended and Restated 2007 Stock Plan, or 2007 Plan. The Company ceased granting awards under the 2007 Plan, and any outstanding stock options and restricted stock units, or RSUs, granted under the 2007 Plan will remain subject to the terms of the 2007 Plan. As of October 1, 2016, 7.6 million shares of Class A common stock were reserved and available for future issuance under the 2015 Plan.

Employee Stock Purchase Plan

In May 2015, the Company’s board of directors adopted the 2015 Employee Stock Purchase Plan, or 2015 ESPP, which became effective on June 17, 2015. A total of 3.8 million shares of Class A common stock were initially reserved for issuance under the 2015 ESPP. The 2015 ESPP allows eligible employees to purchase shares of the Company’s Class A common stock through payroll deductions at a price per share equal to 85% of the lesser of the fair market value of the Company’s Class A common stock (i) on the first trading day of the applicable offering period and (2) the last trading day of each purchase period in the applicable offering period. Except for the initial offering period, the 2015 ESPP provides for 6-month offering periods beginning in May and November of each year. The initial offering period began June 17, 2015 and ended in May 2016.

Stock Options

Stock option activity under the equity incentive plans was as follows:



	Stock Options Outstanding
	Number of Shares Subject to Stock Options		Weighted– Average Exercise Price		Aggregate Intrinsic Value
	(in thousands)				(in thousands)
Balance—December 31, 2015	44,362		$	3.20
Granted	955		$	14.06
Exercised	(7,537	)	$	1.14
Forfeited or canceled	(1,971	)	$	5.38
Balance—October 1, 2016	35,809		$	3.80	$	399,272

Stock options exercisable—October 1, 2016	20,163		$	2.32	$	253,846
Stock options vested and expected to vest—October 1, 2016	35,334		$	3.77	$	395,144

The aggregate intrinsic values of stock options outstanding, exercisable, vested and expected to vest as of October 1, 2016 were calculated as the difference between the exercise price of the stock options and the fair value of the Class A common stock of $14.84 as of September 30, 2016.

Restricted Stock Units

RSU activity under the equity incentive plans was as follows:



	RSUs Outstanding		Weighted- Average Grant Date Fair Value
	(in thousands)
Unvested balance—December 31, 2015	3,292		$	34.27
Granted	8,582		14.33
Vested	(632	)	32.77
Forfeited or canceled	(550	)	23.62
Unvested balance—October 1, 2016	10,692		18.91

Stock-Based Compensation Expense

Total stock-based compensation expense recognized was as follows (in thousands):



	Three Months Ended				Nine Months Ended
	October 1, 2016		September 30, 2015		October 1, 2016		September 30, 2015

Cost of revenue	$	1,014	$	1,351	$	3,407	$	2,622
Research and development	12,314		5,893		34,432		10,910
Sales and marketing	3,030		2,451		8,492		5,080
General and administrative	3,647		3,339		11,844		7,072
Total stock-based compensation expense	$	20,005	$	13,034	$	58,175	$	25,684

As of October 1, 2016, the total unrecognized stock-based compensation expense related to unvested stock options and RSUs, net of estimated forfeitures, was $226.4 million, which the Company expects to recognize over an estimated weighted average period of 3.1 years.

Income Taxes

The Company is subject to income tax in the United States as well as other tax jurisdictions in which it conducts business. Earnings from non-U.S. activities are subject to local country income tax. The Company does not provide for federal income taxes on the undistributed earnings of its foreign subsidiaries as such earnings are to be reinvested indefinitely.

For the three and nine months ended October 1, 2016, the Company recorded an expense for income taxes of $18.3 million and $31.9 million, respectively, for an effective tax rate of 41.2% and 42.3%, respectively. The effective tax rate for the nine months ended October 1, 2016 is higher than the statutory federal tax rate primarily due to the effect of an out-of-period adjustment recorded in the three months ended April 2, 2016, the mix of income between U.S. and foreign jurisdictions, unrecognized tax benefits, and a permanent domestic production activities deduction. For the three and nine months ended September 30, 2015, the Company recorded an expense for income taxes of $20.5 million and $66.0 million, respectively, for an effective tax rate of 30.9% and 37.2%, respectively. The effective tax rate for the nine months ended September 30, 2015 was higher than the statutory federal tax rate primarily due to certain permanent differences related to the change in fair value of the redeemable convertible preferred stock warrant liability and non-deductible stock-based compensation expense, partially offset by non-taxable income associated with contingent consideration from the FitStar acquisition and a permanent domestic production activities deduction.

Net Income per Share Attributable to Common Stockholders

Basic and diluted net income per share attributable to common stockholders is presented in conformity with the two-class method required for participating securities. Prior to the Company’s IPO in June 2015, the Company considered its redeemable convertible preferred stock to be participating securities. In accordance with the two-class method, earnings allocated to these participating securities and the related number of outstanding shares of the participating securities, which include contractual participation rights in undistributed earnings, have been excluded from the computation of basic and diluted net income per share attributable to common stockholders.

In connection with the IPO, the Company established two classes of authorized common stock: Class A common stock and Class B common stock. As a result, all then-outstanding shares of common stock were converted into shares of Class B common stock. The rights of the holders of Class A and Class B common stock are identical, except with respect to voting and conversion. Each share of Class A common stock is entitled to one vote per share and each share of Class B common stock is entitled to ten votes per share. Each share of Class B common stock is convertible at any time at the option of the stockholder into one share of Class A common stock, generally automatically converts into Class A common stock upon a transfer, and has no expiration date. The Company applies the two-class method of calculating earnings per share, or EPS, but as the dividend rights of both classes are identical, basic and diluted earnings per share are the same for both classes.

Undistributed earnings allocated to participating securities are subtracted from net income in determining net income attributable to common stockholders. Basic net income per share attributable to common stockholders is computed by dividing the net income attributable to common stockholders by the weighted-average number of common shares outstanding during the period. All participating securities are excluded from basic weighted-average common shares outstanding.

For the calculation of diluted EPS, net income attributable to common stockholders for basic EPS is adjusted by the effect of dilutive securities. Diluted net income per share attributable to common stockholders is computed by dividing the net income attributable to common stockholders by the weighted-average number of common shares outstanding, including all potentially dilutive common shares, if the effect of such shares is dilutive.

The following table sets forth the computation of the Company’s basic and diluted net income per share attributable to common stockholders (in thousands, except per share amounts):



	Three Months Ended				Nine Months Ended
	October 1, 2016		September 30, 2015		October 1, 2016		September 30, 2015
Numerator:
Net income	$	26,120	$	45,834	$	43,496	$	111,512
Less: noncumulative dividends to preferred stockholders	—		—		—		(2,526		)
Less: undistributed earnings to participating securities	—		—		—		(50,316		)
Net income attributable to common stockholders—basic	26,120		45,834		43,496		58,670
Add: adjustments to undistributed earnings to participating securities	—		—		—		7,655
Net income attributable to common stockholders—diluted	$	26,120	$	45,834	$	43,496	$	66,325

Denominator:
Weighted-average shares of common stock—basic for Class A and Class B	222,412		206,657		219,079		102,741
Effect of dilutive securities	21,275		37,003		23,573		34,244
Weighted-average shares of common stock—diluted for Class A and Class B	243,687		243,660		242,652		136,985
Net income per share attributable to common stockholders:
Basic	$	0.12	$	0.22	$	0.20	$	0.57
Diluted	$	0.11	$	0.19	$	0.18	$	0.48

The following potentially dilutive common shares were excluded from the computation of diluted net income per share for the periods presented because including them would have been anti-dilutive (in thousands):



	Three Months Ended		Nine Months Ended
	October 1, 2016	September 30, 2015	October 1, 2016	September 30, 2015

Stock options to purchase common stock	3,553	88	3,549	562
Restricted stock units	3,063	921	3,611	307
Redeemable convertible preferred stock	—	—	—	88,112
Redeemable convertible preferred stock warrants	—	—	—	1,231
Total	6,616	1,009	7,160	90,212

Significant Customer Information and Other Information

Retailer and Distributor Concentration

Retailers and distributors with revenue equal to or greater than 10% of total revenue for the three and nine months ended October 1, 2016 and September 30, 2015 were as follows:



	Three Months Ended				Nine Months Ended
	October 1, 2016		September 30, 2015		October 1, 2016		September 30, 2015

A	10	%	14	%	15	%	15	%
C	14		12		14		12
B	13		11		12		12

Retailers and distributors that accounted for equal to or greater than 10% of accounts receivable at October 1, 2016 and December 31, 2015 were as follows:



	October 1, 2016		December 31, 2015
	October 1, 2016		December 31, 2015

A	21	%	15	%
B	15		19
C	15		23

Geographic and Other Information

Revenue by geographic region, based on ship-to destinations, was as follows (in thousands):



	Three Months Ended				Nine Months Ended
	October 1, 2016		September 30, 2015		October 1, 2016		September 30, 2015

United States	$	361,239	$	270,814	$	1,158,116	$	848,789
Americas excluding United States	25,939		24,180		76,708		54,408
Europe, Middle East, and Africa	80,932		49,214		255,127		123,981
APAC	35,692		65,054		105,735		119,250
Total	$	503,802	$	409,262	$	1,595,686	$	1,146,428

As of October 1, 2016 and December 31, 2015, long-lived assets, which represent property and equipment, located outside the United States were $53.0 million and $28.9 million, respectively.

Acquisitions

2016 Acquisition

In May 2016, the Company completed a purchase of certain assets from a privately-held company, which was accounted for as a business combination, for total cash consideration of $7.0 million, of which $3.9 million was allocated to in-process research and development intangible assets, and $3.1 million to goodwill. This acquisition was not material to the Company’s condensed consolidated financial statements.

FitStar Acquisition — 2015

In March 2015, the Company acquired all of the outstanding securities of FitStar, a privately-held company, for aggregate acquisition consideration of $32.5 million, comprised of $13.3 million related to the issuance of 1,059,688 shares of the Company’s Class B common stock, $11.5 million of cash, and $7.7 million of contingent consideration. FitStar is a provider of interactive video-based exercise experiences on mobile devices and computers that utilize proprietary algorithms to adjust and customize workouts for individual users. The acquisition is expected to enhance the Company’s software and services offerings.

Under the acquisition agreement, the Company was obligated to issue additional common stock or pay cash to FitStar stockholders. The actual amount of any contingent consideration depended on market-based events that may occur in the future. The Company determined the fair market value of this contingent consideration to be $7.7 million as of the acquisition date using the Monte Carlo simulation method. The fair value of this liability was adjusted at each reporting period, and the change in fair value is included in total operating expenses on the condensed consolidated statements of operations. As a result of the Company’s IPO, the Company recorded a change in fair value of $7.7 million as a benefit and as of December 31, 2015, the fair value of the contingent consideration liability was zero. In addition, the terms related to the contingent consideration expired as of December 31, 2015 and no amounts were paid or shares issued for the contingent consideration.

The following table summarizes the fair value of assets acquired and liabilities assumed (in thousands):




Goodwill	$	22,157
Developed and core technology	12,640
Customer relationships	128
Trademarks	1,150
Assumed liabilities, net of assets	(3,552		)
Total	$	32,523

The amortization periods of the acquired developed technology, customer relationships, and trademarks are 7.0 years, 1.3 years, and 5.0 years, respectively. Goodwill is not deductible for tax purposes.

In addition, upon acquisition, the Company issued 308,216 additional shares of common stock valued at $4.2 million. The Company is also obligated to make cash payments up to $1.2 million. Both the common stock and the cash payments are additional consideration which is contingent upon former employees of FitStar continuing to be employed by the Company. As such, this additional consideration was not part of the purchase price and is recognized as post-acquisition compensation expense over the related requisite service period of three years. The Company also recorded acquisition-related transaction costs of $0.3 million, which were included in general and administrative expenses in the condensed consolidated statements of operations during the nine months ended September 30, 2015.

The results of operations for both acquired companies are included in the accompanying condensed consolidated statements of operations from the date of acquisition. Pro forma and historical results of operations for both acquired companies have not been presented because they are not material, either individually or in the aggregate, to the Company’s condensed consolidated financial statements.

Basis of Presentation and Summary of Significant Accounting Policies (Policies)

Basis of Presentation and Summary of Significant Accounting Policies

The accompanying condensed consolidated financial statements are unaudited. The condensed consolidated balance sheet at December 31, 2015 has been derived from the audited financial statements of the Company. The accompanying condensed financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America, or U.S. GAAP, for interim financial information, and in management’s opinion, includes all adjustments, consisting of only normal recurring adjustments, necessary for the fair statement of the Company’s financial position, its results of operations, and cash flows for the interim periods presented. The results of operations for the three and nine months ended October 1, 2016 are not necessarily indicative of the results to be expected for the full fiscal year or any other period.

The accompanying condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto contained in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2015, filed with the Securities and Exchange Commission on February 29, 2016. There have been no significant changes in the Company’s accounting policies from those disclosed in its Annual Report on Form 10-K.

The Company’s fiscal year ends on December 31 of each year. In the first quarter of 2016, the Company adopted a 4-4-5 week quarterly calendar, which, for the 2016 fiscal year, is comprised of four fiscal quarters ending on April 2, 2016, July 2, 2016, October 1, 2016, and December 31, 2016. The Company did not adjust operating results for quarters prior to 2016. There were 91 and 92 days in the three months ended October 1, 2016 and September 30, 2015, respectively, and 275 and 273 days in the nine months ended October 1, 2016 and September 30, 2015, respectively.

Principles of Consolidation

The condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany transactions and balances have been eliminated.

Use of Estimates

The preparation of condensed consolidated financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported and disclosed in the condensed consolidated financial statements and accompanying notes. The primary estimates and assumptions made by management related to revenue recognition, reserves for sales returns and incentives, reserves for warranty, valuation of stock options, fair value of derivative assets and liabilities, allowance for doubtful accounts, inventory valuation, accruals for the Fitbit Force recall, fair value of goodwill and acquired tangible and intangible assets and liabilities assumed during acquisitions, the number of reporting segments, the recoverability of intangible assets and their useful lives, contingencies, and the valuations of deferred income tax assets and uncertain tax positions. Actual results could differ from those estimates, and such differences may be material to the condensed consolidated financial statements.

Recent Accounting Pronouncements

In May 2014, the Financial Accounting Standards Board, or FASB, issued ASU 2014-09 (ASC 606), Revenue from Contracts with Customers, which affects any entity that either enters into contracts with customers to transfer goods and services or enters into contracts for the transfer of nonfinancial assets. ASU 2014-09 will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. The standard’s core principle is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. In doing so, companies will need to use more judgment and make more estimates than under the currently effective guidance. These may include identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. ASU 2014-09 will become effective for the Company on January 1, 2018 and can be adopted either retrospectively to each prior reporting period presented or as a cumulative effect adjustment as of the date of adoption. In April 2016, the FASB issued ASU 2016-10, which clarifies guidance on identifying performance obligations and licensing implementation. The Company is currently evaluating the impact of this guidance on its consolidated financial statements and has not yet selected a transition method.

In February 2016, the FASB issued ASU 2016-02, Leases. This ASU requires lease assets and lease liabilities arising from leases, including operating leases, to be recognized on the balance sheet. ASU 2016-02 will become effective for the Company on January 1, 2019, and requires adoption using a modified retrospective approach. The Company is currently evaluating the impact of this guidance on its consolidated financial statements.

In March 2016, the FASB issued ASU 2016-09, Compensation — Stock Compensation (Topic 718). This ASU simplifies several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. ASU 2016-09 will become effective for the Company on January 1, 2017 and early adoption is permitted. The Company is currently evaluating the impact of this guidance on its consolidated financial statements.

In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. This ASU provides for a new impairment model which requires measurement and recognition of expected credit losses for most financial assets and certain other instruments. ASU 2016-13 will become effective for the Company on January 1, 2020 and early adoption is permitted. The Company is currently evaluating the impact of this guidance on its consolidated financial statements.

In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230). This ASU provides guidance intended to reduce diversity in practice in how certain transactions are classified in the statement of cash flows. ASU 2016-15 will become effective for the Company on January 1, 2018 and early adoption is permitted. The Company is currently evaluating the impact of this guidance on its consolidated financial statements.

Fair Value Measurements (Tables)

Schedule of fair value of assets and liabilities measured on recurring basis

The following tables set forth the Company’s financial instruments that were measured at fair value on a recurring basis by level within the fair value hierarchy (in thousands):



	October 1, 2016
	Level 1		Level 2		Total
Assets:
Money market funds	$	97,719	$	—	$	97,719
U.S. government agencies	—		86,748		86,748
Corporate debt securities	—		321,872		321,872
Derivative assets	—		6,882		6,882
Total	$	97,719	$	415,502	$	513,221
Liabilities:
Derivative liabilities	$	—	$	3,535	$	3,535



	December 31, 2015
	Level 1		Level 2		Total
Assets:
Money market funds	$	248,128	$	—	$	248,128
U.S. government agencies	—		113,314		113,314
Corporate debt securities	—		193,964		193,964
Derivative assets	—		6,002		6,002
Total	$	248,128	$	313,280	$	561,408
Liabilities:
Derivative liabilities	$	—	$	2,640	$	2,640

Financial Instruments (Tables)

Schedule of available for sale securities including fair value and gross unrealized losses

The following table classifies marketable securities by contractual maturities (in thousands):



	October 1, 2016		December 31, 2015
	October 1, 2016		December 31, 2015
Due in one year	$	362,322	$	128,632
Due in one to two years	25,560		—
Total	$	387,882	$	128,632

The following table sets forth cash, cash equivalents, and marketable securities as of October 1, 2016 (in thousands):



	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value		Cash and Cash Equivalents		Marketable Securities
Cash	$	165,763	$	—	$	—		$	165,763	$	165,763	$	—
Money market funds	97,719		—		—			97,719		97,719		—
U.S. government agencies	86,691		58		(1		)	86,748		—		86,748
Corporate debt securities	322,021		5		(154		)	321,872		20,738		301,134
Total	$	672,194	$	63	$	(155	)	$	672,102	$	284,220	$	387,882

The following table sets forth cash, cash equivalents, and marketable securities as of December 31, 2015 (in thousands):



	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value		Cash and Cash Equivalents		Marketable Securities
Cash	$	109,072	$	—	$	—		$	109,072	$	109,072	$	—
Money market funds	248,128		—		—			248,128		248,128		—
U.S. government agencies	113,315		3		(4		)	113,314		63,464		49,850
Corporate debt securities	194,018		1		(55		)	193,964		115,182		78,782
Total	$	664,533	$	4	$	(59	)	$	664,478	$	535,846	$	128,632

Schedule of derivative instruments in statement of financial position, fair value

The following table presents the fair value of the Company’s foreign currency derivative contracts as of the periods presented (in thousands):



		October 1, 2016				December 31, 2015
	Balance Sheet Location	Fair Value Derivative Assets		Fair Value Derivative Liabilities		Fair Value Derivative Assets		Fair Value Derivative Liabilities
Cash flow designated hedges	Prepaid expenses and other current assets	$	1,403	$	—	$	3,116	$	—
Cash flow designated hedges	Accrued liabilities	—		2,438		—		1,327
Hedges not designated	Prepaid expenses and other current assets	5,479		—		2,886		—
Hedges not designated	Accrued liabilities	—		1,097		—		1,313
Total fair value of derivative instruments		$	6,882	$	3,535	$	6,002	$	2,640

Schedule of cash flow hedging instruments, statement of operations

The following table presents the pre-tax impact of the Company’s foreign currency derivative contracts on other comprehensive income, or OCI, and the condensed consolidated statements of operations for the periods presented (in thousands):



		Three Months Ended						Nine Months Ended
	Income Statement Location	October 1, 2016			September 30, 2015			October 1, 2016			September 30, 2015
Foreign exchange cash flow hedges
Gain (loss) recognized in OCI – effective portion		$	(560	)	$	1,466		$	975		$	1,466
Gain reclassified from OCI into income – effective portion	Revenue	3,060			580			1,511			580
Gain (loss) reclassified from OCI into income – effective portion	Operating expenses	(65		)	(32		)	2,343			(32		)
Gain (loss) recognized in income – ineffective portion	Other income (expense), net	76			104			(109		)	104

Foreign exchange balance sheet hedges
Gain (loss) recognized in income	Other income (expense), net	$	(477	)	$	3,705		$	3,567		$	6,009

Schedule of cash flow hedging instruments, comprehensive income

The following table presents the pre-tax impact of the Company’s foreign currency derivative contracts on other comprehensive income, or OCI, and the condensed consolidated statements of operations for the periods presented (in thousands):



		Three Months Ended						Nine Months Ended
	Income Statement Location	October 1, 2016			September 30, 2015			October 1, 2016			September 30, 2015
Foreign exchange cash flow hedges
Gain (loss) recognized in OCI – effective portion		$	(560	)	$	1,466		$	975		$	1,466
Gain reclassified from OCI into income – effective portion	Revenue	3,060			580			1,511			580
Gain (loss) reclassified from OCI into income – effective portion	Operating expenses	(65		)	(32		)	2,343			(32		)
Gain (loss) recognized in income – ineffective portion	Other income (expense), net	76			104			(109		)	104

Foreign exchange balance sheet hedges
Gain (loss) recognized in income	Other income (expense), net	$	(477	)	$	3,705		$	3,567		$	6,009

Schedule of offsetting of foreign currency derivative contracts

The following tables set forth the available offsetting of net derivative assets under the master netting arrangements as of October 1, 2016 and December 31, 2015 (in thousands):



	October 1, 2016
							Gross Amounts Not Offset in Condensed Consolidated Balance Sheets
	Gross Amounts of Recognized Assets		Gross Amounts Offset in the Condensed Consolidated Balance Sheets		Net Amounts Presented in Condensed Consolidated Balance Sheets		Financial Instruments		Cash Collateral Received		Net Amount
Foreign exchange contracts	$	6,882	$	—	$	6,882	$	3,528	$	—	$	3,354



	December 31, 2015
							Gross Amounts Not Offset in Condensed Consolidated Balance Sheets
	Gross Amounts of Recognized Assets		Gross Amounts Offset in the Condensed Consolidated Balance Sheets		Net Amounts Presented in Condensed Consolidated Balance Sheets		Financial Instruments		Cash Collateral Received		Net Amount
Foreign exchange contracts	$	6,002	$	—	$	6,002	$	2,100	$	—	$	3,902

The following tables set forth the available offsetting of net derivative liabilities under the master netting arrangements as of October 1, 2016 and December 31, 2015 (in thousands):



	October 1, 2016
							Gross Amounts Not Offset in Condensed Consolidated Balance Sheets
	Gross Amounts of Recognized Liabilities		Gross Amounts Offset in the Condensed Consolidated Balance Sheets		Net Amounts Presented in Condensed Consolidated Balance Sheets		Financial Instruments		Cash Collateral Pledged		Net Amount
Foreign exchange contracts	$	3,535	$	—	$	3,535	$	3,528	$	—	$	7



	December 31, 2015
							Gross Amounts Not Offset in Condensed Consolidated Balance Sheets
	Gross Amounts of Recognized Liabilities		Gross Amounts Offset in the Condensed Consolidated Balance Sheets		Net Amounts Presented in Condensed Consolidated Balance Sheets		Financial Instruments		Cash Collateral Pledged		Net Amount
Foreign exchange contracts	$	2,640	$	—	$	2,640	$	2,100	$	—	$	540

Balance Sheet Components (Tables)

Schedule of accounts receivable reserves

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



	Three Months Ended						Nine Months Ended
	October 1, 2016			September 30, 2015			October 1, 2016			September 30, 2015
Beginning balances	$	80,277		$	35,265		$	74,045		$	26,559
Increases	46,654			46,990			166,205			100,342
Returns taken	(59,763		)	(41,043		)	(173,082		)	(85,689		)
Ending balances	$	67,168		$	41,212		$	67,168		$	41,212

Schedule of inventories

Inventories consisted of the following (in thousands):



	October 1, 2016		December 31, 2015
	October 1, 2016		December 31, 2015
Components	$	2,452	$	5,359
Finished goods	212,503		172,787
Total inventories	$	214,955	$	178,146

Schedule of prepaid expenses and other current asset

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



	October 1, 2016		December 31, 2015
	October 1, 2016		December 31, 2015
POP displays, net	$	28,721	$	9,990
Prepaid income taxes	12,539		11,889
Non-trade receivable	7,155		3,196
Derivative assets	6,882		6,002
Other	31,075		12,453
Total prepaid expenses and other current assets	$	86,372	$	43,530

Schedule of property and equipment

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



	October 1, 2016			December 31, 2015
	October 1, 2016			December 31, 2015
Tooling and manufacturing equipment	$	92,199		$	53,092
Furniture and office equipment	12,518			6,809
Purchased and internally-developed software	9,232			3,794
Leasehold improvements	25,931			8,388
Total property and equipment	139,880			72,083
Less: Accumulated depreciation and amortization	(45,569		)	(27,582		)
Property and equipment, net	$	94,311		$	44,501

Schedule of intangible assets (excluding goodwill)

The carrying amounts of the intangible assets as of October 1, 2016 and December 31, 2015 were as follows (in thousands, except useful life). In-process research and development is not amortized until the completion or abandonment of the related development.



	October 1, 2016							December 31, 2015							Weighted Average Remaining Useful Life (years)
	Gross		Accumulated Amortization			Net		Gross		Accumulated Amortization			Net		Weighted Average Remaining Useful Life (years)

Developed technology	$	12,640	$	(2,796	)	$	9,844	$	12,640	$	(1,442	)	$	11,198	5.5
Trademarks and other	1,278		(484		)	794		1,278		(260		)	1,018		3.5
Total finite-lived intangible assets subject to amortization, net	13,918		(3,280		)	10,638		13,918		(1,702		)	12,216
In-process research and development	3,940		—			3,940		—		—			—
Total intangible assets, net	$	17,858	$	(3,280	)	$	14,578	$	13,918	$	(1,702	)	$	12,216

Schedule of estimated future amortization expense

The estimated future amortization expense of acquired finite-lived intangible assets to be charged to cost of revenue and operating expenses after October 1, 2016, is as follows (in thousands):



	Cost of Revenue		Operating Expenses		Total

Remaining 2016	$	452	$	57	$	509
2017	1,806		230		2,036
2018	1,806		230		2,036
2019	1,806		230		2,036
2020	1,806		47		1,853
Thereafter	2,168		—		2,168
Total finite-lived intangible assets, net	$	9,844	$	794	$	10,638

Schedule of accrued liabilities

Accrued liabilities consisted of the following (in thousands):



	October 1, 2016		December 31, 2015
	October 1, 2016		December 31, 2015
Product warranty	$	62,941	$	40,212
Accrued sales and marketing	27,938		33,389
Employee related liabilities	26,518		27,394
Accrued sales incentives	20,660		24,324
Accrued co-op advertising and marketing development funds	19,233		29,077
Inventory received but not billed	16,069		4,292
Accrued manufacturing expense and freight	14,536		10,723
Sales taxes and VAT payable	6,991		8,349
Derivative liabilities	3,535		2,640
Customer deposits	2,878		2,062
Accrued legal fees	2,555		3,138
Other	14,672		9,377
Accrued liabilities	$	218,526	$	194,977

Schedule of product warranty reserves

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



	Three Months Ended						Nine Months Ended
	October 1, 2016			September 30, 2015			October 1, 2016			September 30, 2015
Beginning balances	$	76,841		$	31,063		$	40,212		$	20,098
Charged to cost of revenue	30,814			15,687			109,324			37,752
Changes related to pre-existing warranties	(18,727		)	(8,968		)	(19,214		)	(8,968		)
Settlement of claims	(25,987		)	(12,710		)	(67,381		)	(23,810		)
Ending balances	$	62,941		$	25,072		$	62,941		$	25,072


(1)	Does not include reserves established as a result of the recall of the Fitbit Force. See the section titled “—Fitbit Force Recall Reserve” for additional information regarding such reserves.

Schedule of product recall reserves

Fitbit Force Recall reserve activities were as follows (in thousands):



	Three Months Ended						Nine Months Ended
	October 1, 2016			September 30, 2015			October 1, 2016			September 30, 2015
Beginning balances	$	2,148		$	12,894		$	5,122		$	22,476
Charged (benefit) to cost of revenue	—			—			—			(2,040		)
Charged (benefit) to general and administrative	—			20			—			(53		)
Settlement of claims	(654		)	(1,255		)	(3,628		)	(8,724		)
Ending balances	$	1,494		$	11,659		$	1,494		$	11,659

Schedule of accumulated other comprehensive income

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



	Unrealized Gains (Losses) on Cash Flow Hedges			Currency Translation Adjustments		Unrealized Gains (Losses) on Available-for-Sale Investments			Total
Balance at December 31, 2014	$	—		$	37	$	—		$	37
Other comprehensive income (loss) before reclassifications	1,466			125		(6		)	1,585
Amounts reclassified from AOCI	(548		)	—		—			(548		)
Other comprehensive income (loss)	918			125		(6		)	1,037
Balance at September 30, 2015	$	918		$	162	$	(6	)	$	1,074



	Unrealized Gains (Losses) on Cash Flow Hedges			Currency Translation Adjustments			Unrealized Gains (Losses) on Available-for-Sale Investments			Total
Balance at December 31, 2015	$	751		$	(5	)	$	(55	)	$	691
Other comprehensive income (loss) before reclassifications	2,784			(199		)	(38		)	2,547
Amounts reclassified from AOCI	(4,828		)	—			—			(4,828		)
Other comprehensive income (loss)	(2,044		)	(199		)	(38		)	(2,281		)
Balance at October 1, 2016	$	(1,293	)	$	(204	)	$	(93	)	$	(1,590	)

Stock Plan (Tables)

Schedule of stock option activity

Stock option activity under the equity incentive plans was as follows:



	Stock Options Outstanding
	Number of Shares Subject to Stock Options		Weighted– Average Exercise Price		Aggregate Intrinsic Value
	(in thousands)				(in thousands)
Balance—December 31, 2015	44,362		$	3.20
Granted	955		$	14.06
Exercised	(7,537	)	$	1.14
Forfeited or canceled	(1,971	)	$	5.38
Balance—October 1, 2016	35,809		$	3.80	$	399,272

Stock options exercisable—October 1, 2016	20,163		$	2.32	$	253,846
Stock options vested and expected to vest—October 1, 2016	35,334		$	3.77	$	395,144

Schedule of restricted stock unit activity

RSU activity under the equity incentive plans was as follows:



	RSUs Outstanding		Weighted- Average Grant Date Fair Value
	(in thousands)
Unvested balance—December 31, 2015	3,292		$	34.27
Granted	8,582		14.33
Vested	(632	)	32.77
Forfeited or canceled	(550	)	23.62
Unvested balance—October 1, 2016	10,692		18.91

Schedule of stock-based compensation expense

Total stock-based compensation expense recognized was as follows (in thousands):



	Three Months Ended				Nine Months Ended
	October 1, 2016		September 30, 2015		October 1, 2016		September 30, 2015

Cost of revenue	$	1,014	$	1,351	$	3,407	$	2,622
Research and development	12,314		5,893		34,432		10,910
Sales and marketing	3,030		2,451		8,492		5,080
General and administrative	3,647		3,339		11,844		7,072
Total stock-based compensation expense	$	20,005	$	13,034	$	58,175	$	25,684

Net Income per Share Attributable to Common Stockholders (Tables)

Schedule of basic and diluted net income (loss) per share

The following table sets forth the computation of the Company’s basic and diluted net income per share attributable to common stockholders (in thousands, except per share amounts):



	Three Months Ended				Nine Months Ended
	October 1, 2016		September 30, 2015		October 1, 2016		September 30, 2015
Numerator:
Net income	$	26,120	$	45,834	$	43,496	$	111,512
Less: noncumulative dividends to preferred stockholders	—		—		—		(2,526		)
Less: undistributed earnings to participating securities	—		—		—		(50,316		)
Net income attributable to common stockholders—basic	26,120		45,834		43,496		58,670
Add: adjustments to undistributed earnings to participating securities	—		—		—		7,655
Net income attributable to common stockholders—diluted	$	26,120	$	45,834	$	43,496	$	66,325

Denominator:
Weighted-average shares of common stock—basic for Class A and Class B	222,412		206,657		219,079		102,741
Effect of dilutive securities	21,275		37,003		23,573		34,244
Weighted-average shares of common stock—diluted for Class A and Class B	243,687		243,660		242,652		136,985
Net income per share attributable to common stockholders:
Basic	$	0.12	$	0.22	$	0.20	$	0.57
Diluted	$	0.11	$	0.19	$	0.18	$	0.48

Schedule of antidilutive securities excluded from earnings per share

The following potentially dilutive common shares were excluded from the computation of diluted net income per share for the periods presented because including them would have been anti-dilutive (in thousands):



	Three Months Ended		Nine Months Ended
	October 1, 2016	September 30, 2015	October 1, 2016	September 30, 2015

Stock options to purchase common stock	3,553	88	3,549	562
Restricted stock units	3,063	921	3,611	307
Redeemable convertible preferred stock	—	—	—	88,112
Redeemable convertible preferred stock warrants	—	—	—	1,231
Total	6,616	1,009	7,160	90,212

Significant Customer Information and Other Information (Tables)

Schedules of concentration of risk

Revenue by geographic region, based on ship-to destinations, was as follows (in thousands):



	Three Months Ended				Nine Months Ended
	October 1, 2016		September 30, 2015		October 1, 2016		September 30, 2015

United States	$	361,239	$	270,814	$	1,158,116	$	848,789
Americas excluding United States	25,939		24,180		76,708		54,408
Europe, Middle East, and Africa	80,932		49,214		255,127		123,981
APAC	35,692		65,054		105,735		119,250
Total	$	503,802	$	409,262	$	1,595,686	$	1,146,428

Retailers and distributors with revenue equal to or greater than 10% of total revenue for the three and nine months ended October 1, 2016 and September 30, 2015 were as follows:



	Three Months Ended				Nine Months Ended
	October 1, 2016		September 30, 2015		October 1, 2016		September 30, 2015

A	10	%	14	%	15	%	15	%
C	14		12		14		12
B	13		11		12		12

Retailers and distributors that accounted for equal to or greater than 10% of accounts receivable at October 1, 2016 and December 31, 2015 were as follows:



	October 1, 2016		December 31, 2015
	October 1, 2016		December 31, 2015

A	21	%	15	%
B	15		19
C	15		23

Acquisitions (Tables)

Schedule of fair value of assets acquired and liabilities assumed

The following table summarizes the fair value of assets acquired and liabilities assumed (in thousands):




Goodwill	$	22,157
Developed and core technology	12,640
Customer relationships	128
Trademarks	1,150
Assumed liabilities, net of assets	(3,552		)
Total	$	32,523

Basis of Presentation and Summary of Significant Accounting Policies - Non-Monetary Transaction (Details) (Advertising Barter Transactions [Member], USD $)

In Millions, unless otherwise specified

3 Months Ended

9 Months Ended

Oct. 1, 2016

Advertising Barter Transactions [Member]

Nonmonetary Transaction [Line Items]

Revenue recognized

$ 15.0

Remaining advertising credit

$ 13.0

Advertising credit, expected period of use (over)

3 years

Basis of Presentation and Summary of Significant Accounting Policies - Out of Period Adjustments (Details) (Understated Income Tax Expense [Member], USD $)

In Millions, unless otherwise specified

3 Months Ended

Apr. 2, 2016

Understated Income Tax Expense [Member]

Quantifying Misstatement in Current Year Financial Statements [Line Items]

Out-of-period adjustment

$ 3.0

Fair Value Measurements (Details) (USD $)

Oct. 1, 2016

Dec. 31, 2015

Assets:

Available for sale securities

$ 387,882,000

$ 128,632,000

Liabilities:

Derivative liabilities

3,535,000

2,640,000

U.S. government agencies [Member]

Assets:

Available for sale securities

86,748,000

49,850,000

Corporate debt securities [Member]

Assets:

Available for sale securities

301,134,000

78,782,000

Fair Value, Measurements, Recurring [Member]

Assets:

Money market funds

97,719,000

248,128,000

Derivative assets

6,882,000

6,002,000

Total

513,221,000

561,408,000

Liabilities:

Derivative liabilities

3,535,000

2,640,000

Fair Value, Measurements, Recurring [Member] |
U.S. government agencies [Member]

Assets:

Available for sale securities

86,748,000

113,314,000

Fair Value, Measurements, Recurring [Member] |
Corporate debt securities [Member]

Assets:

Available for sale securities

321,872,000

193,964,000

Fair Value, Measurements, Recurring [Member] |
Level 1 [Member]

Assets:

Money market funds

97,719,000

248,128,000

Derivative assets

0

Total

97,719,000

248,128,000

Liabilities:

Derivative liabilities

0

Fair Value, Measurements, Recurring [Member] |
Level 1 [Member] |
U.S. government agencies [Member]

Assets:

Available for sale securities

0

Fair Value, Measurements, Recurring [Member] |
Level 1 [Member] |
Corporate debt securities [Member]

Assets:

Available for sale securities

0

Fair Value, Measurements, Recurring [Member] |
Level 2 [Member]

Assets:

Money market funds

0

Derivative assets

6,882,000

6,002,000

Total

415,502,000

313,280,000

Liabilities:

Derivative liabilities

3,535,000

2,640,000

Fair Value, Measurements, Recurring [Member] |
Level 2 [Member] |
U.S. government agencies [Member]

Assets:

Available for sale securities

86,748,000

113,314,000

Fair Value, Measurements, Recurring [Member] |
Level 2 [Member] |
Corporate debt securities [Member]

Assets:

Available for sale securities

321,872,000

193,964,000

Fair Value, Measurements, Recurring [Member] |
Level 3 [Member]

Assets:

Total

0

Liabilities:

Derivative liabilities

$ 0

Financial Instruments - Amortized to fair value (Details) (USD $)

9 Months Ended

12 Months Ended

Oct. 1, 2016

Dec. 31, 2015

Sep. 30, 2015

Dec. 31, 2014

Schedule of Available-for-sale Securities [Line Items]

Impairment losses recorded on available-for-sale securities

$ 0

Cash and cash equivalents

284,220,000

535,846,000

462,280,000

195,626,000

Available-for-sale debt securities, gross unrealized gains

63,000

4,000

Available-for-sale debt securities, gross unrealized losses

(155,000)

(59,000)

Cash, cash equivalents, and available-for-sale securities, amortized cost

672,194,000

664,533,000

Cash, cash equivalents, available-for-sale securities, fair value

672,102,000

664,478,000

Total

387,882,000

128,632,000

U.S. government agencies [Member]

Schedule of Available-for-sale Securities [Line Items]

Cash and cash equivalents

63,464,000

Available-for-sale debt securities, amortized cost

86,691,000

113,315,000

Available-for-sale debt securities, gross unrealized gains

58,000

3,000

Available-for-sale debt securities, gross unrealized losses

(1,000)

(4,000)

Cash, cash equivalents, available-for-sale securities, fair value

86,748,000

113,314,000

Total

86,748,000

49,850,000

Corporate debt securities [Member]

Schedule of Available-for-sale Securities [Line Items]

Cash and cash equivalents

20,738,000

115,182,000

Available-for-sale debt securities, amortized cost

322,021,000

194,018,000

Available-for-sale debt securities, gross unrealized gains

5,000

1,000

Available-for-sale debt securities, gross unrealized losses

(154,000)

(55,000)

Cash, cash equivalents, available-for-sale securities, fair value

321,872,000

193,964,000

Total

301,134,000

78,782,000

Cash [Member]

Schedule of Available-for-sale Securities [Line Items]

Cash and cash equivalents

165,763,000

109,072,000

Money market funds [Member]

Schedule of Available-for-sale Securities [Line Items]

Cash and cash equivalents

$ 97,719,000

$ 248,128,000

Financial Instruments - Contractual maturity dates (Details) (USD $)

In Thousands, unless otherwise specified

Oct. 1, 2016

Dec. 31, 2015

Investments, Debt and Equity Securities [Abstract]

Due in one year

$ 362,322

$ 128,632

Due in one to two years

25,560

0

Total

$ 387,882

$ 128,632

Financial Instruments - Unrealized Loss Position (Details) (USD $)

9 Months Ended

12 Months Ended

Oct. 1, 2016

Dec. 31, 2015

Schedule of Available-for-sale Securities [Line Items]

Available-for-sale securities in continuous loss position for one year or more, gross unrealized losses

$ 0

Gross unrealized gains (losses)

$ 0

Financial Instruments - Additional Derivative Information (Details) (Foreign currency exchange contract [Member], USD $)

In Millions, unless otherwise specified

Oct. 1, 2016

Dec. 31, 2015

Not designated as hedging instrument [Member]

Derivative [Line Items]

Derivative, notional amount

$ 141.0

$ 104.8

Cash flow hedges [Member] |
Designated as hedging instrument [Member]

Derivative [Line Items]

Derivative, notional amount based on forecasted revenue

283.2

254.1

Derivative, notional amount based on forecasted expenses

$ 63.3

Financial Instruments - Financial Position, Fair Value (Details) (USD $)

In Thousands, unless otherwise specified

Oct. 1, 2016

Dec. 31, 2015

Derivatives, Fair Value [Line Items]

Fair Value Derivative Liabilities

$ 3,535

$ 2,640

Foreign currency exchange contract [Member]

Derivatives, Fair Value [Line Items]

Fair Value Derivative Assets

6,882

6,002

Fair Value Derivative Liabilities

3,535

2,640

Foreign currency exchange contract [Member] |
Designated as hedging instrument [Member] |
Prepaid expenses and other current assets [Member]

Derivatives, Fair Value [Line Items]

Fair Value Derivative Assets

1,403

3,116

Fair Value Derivative Liabilities

0

Foreign currency exchange contract [Member] |
Designated as hedging instrument [Member] |
Accrued liabilities [Member]

Derivatives, Fair Value [Line Items]

Fair Value Derivative Assets

0

Fair Value Derivative Liabilities

2,438

1,327

Foreign currency exchange contract [Member] |
Not designated as hedging instrument [Member] |
Prepaid expenses and other current assets [Member]

Derivatives, Fair Value [Line Items]

Fair Value Derivative Assets

5,479

2,886

Fair Value Derivative Liabilities

0

Foreign currency exchange contract [Member] |
Not designated as hedging instrument [Member] |
Accrued liabilities [Member]

Derivatives, Fair Value [Line Items]

Fair Value Derivative Assets

0

Fair Value Derivative Liabilities

$ 1,097

$ 1,313

Financial Instruments - Statement of Operations and Other Comprehensive Income (Details) (Foreign currency exchange contract [Member], USD $)

In Thousands, unless otherwise specified

3 Months Ended

9 Months Ended

Oct. 1, 2016

Sep. 30, 2015

Oct. 1, 2016

Sep. 30, 2015

Designated as hedging instrument [Member] |
Cash flow hedges [Member]

Derivative Instruments, Gain (Loss) [Line Items]

Gain (loss) recognized in OCI – effective portion

$ (560)

$ 1,466

$ 975

$ 1,466

Revenue [Member] |
Designated as hedging instrument [Member] |
Cash flow hedges [Member]

Derivative Instruments, Gain (Loss) [Line Items]

Gain (loss) reclassified from OCI into income – effective portion

3,060

580

1,511

580

Operating expenses [Member] |
Designated as hedging instrument [Member] |
Cash flow hedges [Member]

Derivative Instruments, Gain (Loss) [Line Items]

Gain (loss) reclassified from OCI into income – effective portion

(65)

(32)

2,343

(32)

Other Income (Expense), Net [Member] |
Designated as hedging instrument [Member] |
Cash flow hedges [Member]

Derivative Instruments, Gain (Loss) [Line Items]

Gain (loss) recognized in income – ineffective portion

76

104

(109)

104

Other Income (Expense), Net [Member] |
Not designated as hedging instrument [Member]

Derivative Instruments, Gain (Loss) [Line Items]

Gain (loss) recognized in income

$ (477)

$ 3,705

$ 3,567

$ 6,009

Financial Instruments - Offsetting of Foreign Currency Derivative Contracts (Details) (USD $)

Oct. 1, 2016

Dec. 31, 2015

Offsetting Liabilities [Line Items]

Gross Amounts of Recognized Liabilities

$ 3,535,000

$ 2,640,000

Gross Amounts Offset in the Condensed Consolidated Balance Sheets

0

Net Amounts Presented in Condensed Consolidated Balance Sheets

3,535,000

2,640,000

Gross Amounts Not Offset in Condensed Consolidated Balance Sheets, Financial Instruments

3,528,000

2,100,000

Gross Amounts Not Offset in Condensed Consolidated Balance Sheets, Cash Collateral Pledged

0

Net Amount

7,000

540,000

Foreign currency exchange contract [Member]

Offsetting Liabilities [Line Items]

Gross Amounts of Recognized Liabilities

3,535,000

2,640,000

Offsetting Assets [Line Items]

Gross Amounts of Recognized Assets

6,882,000

6,002,000

Gross Amounts Offset in the Condensed Consolidated Balance Sheets

0

Net Amounts Presented in Condensed Consolidated Balance Sheets

6,882,000

6,002,000

Gross Amounts Not Offset in Condensed Consolidated Balance Sheets, Financial Instruments

3,528,000

2,100,000

Gross Amounts Not Offset in Condensed Consolidated Balance Sheets, Cash Collateral Received

0

Net Amount

$ 3,354,000

$ 3,902,000

Balance Sheet Components - Account Receivable Reserves (Details) (Revenue Reserve [Member], USD $)

In Thousands, unless otherwise specified

3 Months Ended

9 Months Ended

Oct. 1, 2016

Sep. 30, 2015

Oct. 1, 2016

Sep. 30, 2015

Revenue Reserve [Member]

Movement in Valuation Allowances and Reserves [Roll Forward]

Beginning balances

$ 80,277

$ 35,265

$ 74,045

$ 26,559

Increases

46,654

46,990

166,205

100,342

Returns taken

(59,763)

(41,043)

(173,082)

(85,689)

Ending balances

$ 67,168

$ 41,212

$ 67,168

$ 41,212

Balance Sheet Components - Inventories (Details) (USD $)

In Thousands, unless otherwise specified

Oct. 1, 2016

Dec. 31, 2015

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Components

$ 2,452

$ 5,359

Finished goods

212,503

172,787

Total inventories

$ 214,955

$ 178,146

Balance Sheet Components - Prepaid Expenses and Other Current Assets (Details) (USD $)

In Thousands, unless otherwise specified

Oct. 1, 2016

Dec. 31, 2015

Organization, Consolidation and Presentation of Financial Statements [Abstract]

POP displays, net

$ 28,721

$ 9,990

Prepaid income taxes

12,539

11,889

Non-trade receivable

7,155

3,196

Derivative assets

6,882

6,002

Other

31,075

12,453

Total prepaid expenses and other current assets

$ 86,372

$ 43,530

Balance Sheet Components - Property and Equipment, Net (Details) (USD $)

In Thousands, unless otherwise specified

Oct. 1, 2016

Dec. 31, 2015

Property, Plant and Equipment [Line Items]

Total property and equipment

$ 139,880

$ 72,083

Less: Accumulated depreciation and amortization

(45,569)

(27,582)

Property and equipment, net

94,311

44,501

Tooling and manufacturing equipment [Member]

Property, Plant and Equipment [Line Items]

Total property and equipment

92,199

53,092

Furniture and office equipment [Member]

Property, Plant and Equipment [Line Items]

Total property and equipment

12,518

6,809

Purchased and internally-developed software [Member]

Property, Plant and Equipment [Line Items]

Total property and equipment

9,232

3,794

Leasehold improvements [Member]

Property, Plant and Equipment [Line Items]

Total property and equipment

$ 25,931

$ 8,388

Balance Sheet Components - Goodwill (Details) (USD $)

In Thousands, unless otherwise specified

Oct. 1, 2016

Dec. 31, 2015

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Goodwill

$ 25,217

$ 22,200

Balance Sheet Components - Intangible Assets (Details) (USD $)

In Thousands, unless otherwise specified

3 Months Ended

9 Months Ended

Oct. 1, 2016

Sep. 30, 2015

Oct. 1, 2016

Sep. 30, 2015

Dec. 31, 2015

Finite-Lived Intangible Assets [Line Items]

Gross

$ 13,918

Accumulated Amortization

(3,280)

(1,702)

Intangible assets, net

14,578

12,216

Net

10,638

12,216

Intangible Assets, Gross (Excluding Goodwill)

17,858

13,918

Amortization of intangible assets

500

1,578

1,200

Developed technology [Member]

Finite-Lived Intangible Assets [Line Items]

Gross

12,640

Accumulated Amortization

(2,796)

(1,442)

Net

9,844

11,198

Weighted Average Remaining Useful Life (years)

5 years 6 months 0 days

Trademarks and other [Member]

Finite-Lived Intangible Assets [Line Items]

Gross

1,278

Accumulated Amortization

(484)

(260)

Net

794

1,018

Weighted Average Remaining Useful Life (years)

3 years 6 months 0 days

In Process Research and Development [Member]

Finite-Lived Intangible Assets [Line Items]

Indefinite-Lived Intangible Assets (Excluding Goodwill)

$ 3,940

$ 0

Balance Sheet Components - Estimated Future Amortization Expense (Details) (USD $)

In Thousands, unless otherwise specified

Oct. 1, 2016

Dec. 31, 2015

Finite-Lived Intangible Assets [Line Items]

Remaining 2016

$ 509

2017

2,036

2018

2,036

2019

2,036

2020

1,853

Thereafter

2,168

Net

10,638

12,216

Cost of revenue [Member]

Finite-Lived Intangible Assets [Line Items]

Remaining 2016

452

2017

1,806

2018

1,806

2019

1,806

2020

1,806

Thereafter

2,168

Net

9,844

Operating expenses [Member]

Finite-Lived Intangible Assets [Line Items]

Remaining 2016

57

2017

230

2018

230

2019

230

2020

47

Thereafter

0

Net

$ 794

Balance Sheet Components - Accrued Liabilities (Details) (USD $)

In Thousands, unless otherwise specified

Oct. 1, 2016

Dec. 31, 2015

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Product warranty

$ 62,941

$ 40,212

Accrued sales and marketing

27,938

33,389

Employee related liabilities

26,518

27,394

Accrued sales incentives

20,660

24,324

Accrued co-op advertising and marketing development funds

19,233

29,077

Inventory received but not billed

16,069

4,292

Accrued manufacturing expense and freight

14,536

10,723

Sales taxes and VAT payable

6,991

8,349

Derivative liabilities

3,535

2,640

Customer deposits

2,878

2,062

Accrued legal fees

2,555

3,138

Other

14,672

9,377

Accrued liabilities

$ 218,526

$ 194,977

Balance Sheet Components - Product Warranty (Details) (USD $)

In Thousands, unless otherwise specified

3 Months Ended

9 Months Ended

Oct. 1, 2016

Sep. 30, 2015

Oct. 1, 2016

Sep. 30, 2015

Movement in Standard and Extended Product Warranty, Increase (Decrease) [Roll Forward]

Beginning balances

$ 76,841

$ 31,063

$ 40,212

$ 20,098

Charged to cost of revenue

30,814

15,687

109,324

37,752

Changes related to pre-existing warranties

(18,727)

(8,968)

(19,214)

(8,968)

Settlement of claims

(25,987)

(12,710)

(67,381)

(23,810)

Ending balances

$ 62,941

$ 25,072

$ 62,941

$ 25,072

Balance Sheet Components - Reserve Accounts (Details) (Product Recall Reserves [Member], USD $)

In Thousands, unless otherwise specified

3 Months Ended

9 Months Ended

Oct. 1, 2016

Sep. 30, 2015

Oct. 1, 2016

Sep. 30, 2015

Product Recall Reserves [Member]

Movement in Valuation Allowances and Reserves [Roll Forward]

Beginning balances

$ 2,148

$ 12,894

$ 5,122

$ 22,476

Charged (benefit) to cost of revenue

0

(2,040)

Charged (benefit) to general and administrative

0

20

0

(53)

Settlement of claims

(654)

(1,255)

(3,628)

(8,724)

Ending balances

$ 1,494

$ 11,659

$ 1,494

$ 11,659

Balance Sheet Components - Accumulated Other Comprehensive Income (Loss) (Details) (USD $)

In Thousands, unless otherwise specified

9 Months Ended

Oct. 1, 2016

Dec. 31, 2015

Oct. 1, 2016

Unrealized Gains (Losses) on Cash Flow Hedges [Member]

Sep. 30, 2015

Unrealized Gains (Losses) on Cash Flow Hedges [Member]

Oct. 1, 2016

Currency Translation Adjustments [Member]

Sep. 30, 2015

Currency Translation Adjustments [Member]

Oct. 1, 2016

Unrealized Gains (Losses) on Available-for-Sale Investments [Member]

Sep. 30, 2015

Unrealized Gains (Losses) on Available-for-Sale Investments [Member]

Oct. 1, 2016

AOCI Attributable to Parent [Member]

Sep. 30, 2015

AOCI Attributable to Parent [Member]

AOCI Attributable to Parent, Net of Tax [Roll Forward]

Balance, beginning of period

$ 1,117,104

$ 981,451

$ 751

$ 0

$ (5)

$ 37

$ (55)

$ 0

$ 691

$ 37

Other comprehensive income (loss) before reclassifications

2,784

1,466

(199)

125

(38)

(6)

2,547

1,585

Amounts reclassified from AOCI

(4,828)

(548)

0

(4,828)

(548)

Other comprehensive income (loss)

(2,044)

918

(199)

125

(38)

(6)

(2,281)

1,037

Balance, end of period

$ 1,117,104

$ 981,451

$ (1,293)

$ 918

$ (204)

$ 162

$ (93)

$ (6)

$ (1,590)

$ 1,074

Long-Term Debt (Details) (USD $)

12 Months Ended

Aug. 31, 2014

Line of Credit [Member]

2014 Credit Facility [Member]

Oct. 1, 2016

Line of Credit [Member]

2015 Credit Agreement [Member]

Dec. 31, 2015

Line of Credit [Member]

2015 Credit Agreement [Member]

Dec. 31, 2015

Line of Credit [Member]

2015 Credit Agreement [Member]

London Interbank Offered Rate (LIBOR) [Member]

Sep. 30, 2015

Revolving Credit Facility [Member]

2014 Credit Facility [Member]

Sep. 30, 2015

Revolving Credit Facility [Member]

2014 Revolving Credit And Guarantee Agreement [Member]

Oct. 31, 2014

Revolving Credit Facility [Member]

2014 Revolving Credit And Guarantee Agreement [Member]

Dec. 31, 2015

Revolving Credit Facility [Member]

2015 Credit Agreement [Member]

Dec. 31, 2015

Revolving Credit Facility [Member]

2015 Credit Agreement [Member]

Federal Funds Effective Rate [Member]

Dec. 31, 2015

Revolving Credit Facility [Member]

2015 Credit Agreement [Member]

Eurodollar [Member]

Oct. 1, 2016

Letter of Credit [Member]

Dec. 31, 2015

Letter of Credit [Member]

Aug. 31, 2014

Letter of Credit [Member]

2014 Credit Facility [Member]

Oct. 31, 2014

Letter of Credit [Member]

2014 Revolving Credit And Guarantee Agreement [Member]

Dec. 31, 2015

Letter of Credit [Member]

2015 Credit Agreement [Member]

Aug. 31, 2014

Swing Line Loan [Member]

2014 Credit Facility [Member]

Oct. 31, 2014

Swing Line Loan [Member]

2014 Revolving Credit And Guarantee Agreement [Member]

Dec. 31, 2015

Swing Line Loan [Member]

2015 Credit Agreement [Member]

Dec. 31, 2015

Minimum [Member]

Line of Credit [Member]

2015 Credit Agreement [Member]

Line of Credit Facility [Line Items]

Credit facility, borrowing capacity

$ 180,000,000.0

$ 250,000,000.0

$ 50,000,000.0

$ 10,000,000.0

$ 50,000,000.0

$ 25,000,000.0

$ 10,000,000.0

$ 25,000,000.0

Credit facility, effective interest rate

4.25%

3.59%

Credit facility, basis spread on variable rate

1.00%

0.50%

1.00%

Credit facility, minimal stated interest rate

3.25%

Credit facility, minimum fixed charge coverage ratio

1.15

Credit facility, minimum leverage ratio

3

Credit facility, amount outstanding

$ 0

$ 37,900,000

$ 17,100,000

Commitments and Contingencies - Narrative (Details) (USD $)

In Millions, unless otherwise specified

0 Months Ended

12 Months Ended

0 Months Ended

1 Months Ended

May 10, 2016

investor

Oct. 1, 2016

Dec. 31, 2014

Personal Injury Lawsuit [Member]

Pending Litigation [Member]

lawsuit

Jul. 7, 2015

Jawbone Patent Litigation [Member]

Pending Litigation [Member]

patent

Jul. 3, 2015

Jawbone Patent Litigation [Member]

Pending Litigation [Member]

patent

Jun. 10, 2015

Jawbone Patent Litigation [Member]

Pending Litigation [Member]

patent

May 19, 2016

PurePulse Class Action Lawsuit [Member]

Pending Litigation [Member]

researcher

Feb. 16, 2016

PurePulse Class Action Lawsuit [Member]

Pending Litigation [Member]

lawsuit

Loss Contingencies [Line Items]

Future minimum payments under leases

$ 305.2

Loss contingency, patents allegedly infringed

6

3

Loss contingency, additional patents allegedly infringed

3

Loss contingency, number of lawsuits filed

1

2

Loss contingency, number of researchers providing study for lawsuit

2

Loss contingency, individual investors named as lead plaintiffs

5

Stock Plan - Narrative (Details) (USD $)

In Millions, except Per Share data, unless otherwise specified

9 Months Ended

1 Months Ended

Oct. 1, 2016

Employee Stock Options And Restricted Stock Units [Member]

Sep. 30, 2016

Common Class A [Member]

Stock Options [Member]

Oct. 1, 2016

Common Class A [Member]

2015 Plan [Member]

Stock Options [Member]

May 31, 2015

Common Class A [Member]

2015 Employee Stock Purchase Plan [Member]

Stock Options [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Common stock reserved for future issuance (in shares)

7.6

3.8

Percent of share price available to employees

85.00%

Offering period

6 months

Fair value of exercise price (in dollars per share)

$ 14.84

Unrecognized compensation expense related to unvested options

$ 226.4

Unrecognized compensation expense related to unvested options, estimated weighted average period

3 years 1 month 15 days

Stock Plan - Stock Option Activity (Details) (USD $)

In Thousands, except Per Share data, unless otherwise specified

9 Months Ended

Oct. 1, 2016

Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]

Balance, beginning of period (in shares)

44,362

Granted (in shares)

955

Exercised (in shares)

(7,537)

Canceled (in shares)

(1,971)

Balance, end of period (in shares)

35,809

Options exercisable (in shares)

20,163

Options vested and expected to vest (in shares)

35,334

Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward]

Balance, weighted average exercise price, beginning of period (in dollars per share)

$ 3.20

Granted, weighted average exercise price (in dollars per share)

$ 14.06

Exercised, weighted average exercise price (in dollars per share)

$ 1.14

Canceled, weighted average exercise price (in dollars per share)

$ 5.38

Balance, weighted average exercise price, end of period (in dollars per share)

$ 3.80

Options exercisable, weighted average exercise price (in dollars per share)

$ 2.32

Options vested and expected to vest, weighted average exercise price (in dollars per share)

$ 3.77

Options outstanding, aggregate intrinsic value, end of period

$ 399,272

Options exercisable, aggregate intrinsic value

253,846

Options vested and expected to vest, aggregate intrinsic value

$ 395,144

Stock Plan - Restricted Stock Unit Activity (Details) (Restricted Stock Units (RSUs) [Member], USD $)

In Thousands, except Per Share data, unless otherwise specified

9 Months Ended

Oct. 1, 2016

Restricted Stock Units (RSUs) [Member]

Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]

Unvested balance—December 31, 2015 (in shares)

3,292

Granted (in shares)

8,582

Vested (in shares)

(632)

Forfeited or canceled (in shares)

(550)

Unvested balance—October 1, 2016 (in shares)

10,692

Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]

Unvested balance—December 31, 2015 (in dollars per share)

$ 34.27

Granted (in dollars per share)

$ 14.33

Vested (in dollars per share)

$ 32.77

Forfeited or canceled (in dollars per share)

$ 23.62

Unvested balance—October 1, 2016 (in dollars per share)

$ 18.91

Stock Plan - Stock Compensation Expense (Details) (USD $)

In Thousands, unless otherwise specified

3 Months Ended

9 Months Ended

Oct. 1, 2016

Sep. 30, 2015

Oct. 1, 2016

Sep. 30, 2015

Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]

Total stock-based compensation

$ 20,005

$ 13,034

$ 58,175

$ 25,684

Cost of revenue [Member]

Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]

Total stock-based compensation

1,014

1,351

3,407

2,622

Research and development [Member]

Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]

Total stock-based compensation

12,314

5,893

34,432

10,910

Sales and marketing [Member]

Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]

Total stock-based compensation

3,030

2,451

8,492

5,080

General and administrative [Member]

Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]

Total stock-based compensation

$ 3,647

$ 3,339

$ 11,844

$ 7,072

Income Taxes (Details) (USD $)

In Thousands, unless otherwise specified

3 Months Ended

9 Months Ended

Oct. 1, 2016

Sep. 30, 2015

Oct. 1, 2016

Sep. 30, 2015

Income Tax Disclosure [Abstract]

Income tax expense

$ 18,294

$ 20,500

$ 31,900

$ 65,958

Effective income tax rate

41.20%

30.90%

42.30%

37.20%

Net Income per Share Attributable to Common Stockholders - Narrative (Details)

Oct. 1, 2016

class

Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]

Number of classes of stock

2

Common Class A [Member]

Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]

Common stock, votes per share

1

Common Class B [Member]

Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]

Common stock, votes per share

10

Net Income per Share Attributable to Common Stockholders (Details) (USD $)

In Thousands, except Per Share data, unless otherwise specified

3 Months Ended

9 Months Ended

Oct. 1, 2016

Sep. 30, 2015

Oct. 1, 2016

Sep. 30, 2015

Numerator:

Net income

$ 26,120

$ 45,834

$ 43,496

$ 111,512

Less: noncumulative dividends to preferred stockholders

0

(2,526)

Less: undistributed earnings to participating securities

0

(50,316)

Net income attributable to common stockholders—basic

26,120

45,834

43,496

58,670

Add: adjustments to undistributed earnings to participating securities

0

7,655

Net income attributable to common stockholders—diluted

$ 26,120

$ 45,834

$ 43,496

$ 66,325

Denominator:

Weighted-average shares of common stock—basic (in shares)

222,412

206,657

219,079

102,741

Effect of dilutive securities (in shares)

21,275

37,003

23,573

34,244

Weighted-average shares of common stock—diluted (in shares)

243,687

243,660

242,652

136,985

Net income per share attributable to common stockholders:

Basic (in dollars per share)

$ 0.12

$ 0.22

$ 0.20

$ 0.57

Diluted (in dollars per share)

$ 0.11

$ 0.19

$ 0.18

$ 0.48

Net Income per Share Attributable to Common Stockholders - Antidilutive Securities (Details)

In Thousands, unless otherwise specified

3 Months Ended

9 Months Ended

Oct. 1, 2016

Sep. 30, 2015

Oct. 1, 2016

Sep. 30, 2015

Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]

Antidilutive securities excluded from computation of earnings per share, amount (in shares)

6,616

1,009

7,160

90,212

Redeemable convertible preferred stock and stock options to purchase common stock [Member] |
Common Stock [Member]

Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]

Antidilutive securities excluded from computation of earnings per share, amount (in shares)

3,553

88

3,549

562

Redeemable convertible preferred stock and stock options to purchase common stock [Member] |
Preferred Stock [Member]

Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]

Antidilutive securities excluded from computation of earnings per share, amount (in shares)

0

88,112

Restricted Stock Units (RSUs) [Member]

Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]

Antidilutive securities excluded from computation of earnings per share, amount (in shares)

3,063

921

3,611

307

Redeemable Convertible Preferred Stock Warrant [Member]

Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]

Antidilutive securities excluded from computation of earnings per share, amount (in shares)

0

1,231

Significant Customer Information and Other Information (Details) (USD $)

3 Months Ended

9 Months Ended

3 Months Ended

9 Months Ended

3 Months Ended

9 Months Ended

3 Months Ended

9 Months Ended

3 Months Ended

9 Months Ended

3 Months Ended

9 Months Ended

3 Months Ended

9 Months Ended

3 Months Ended

9 Months Ended

3 Months Ended

9 Months Ended

12 Months Ended

9 Months Ended

12 Months Ended

9 Months Ended

12 Months Ended

Oct. 1, 2016

Sep. 30, 2015

Oct. 1, 2016

Sep. 30, 2015

Oct. 1, 2016

Geographic Concentration Risk [Member]

Non-US [Member]

Dec. 31, 2015

Geographic Concentration Risk [Member]

Non-US [Member]

Oct. 1, 2016

Revenue [Member]

Customer Concentration Risk [Member]

Customer A [Member]

Sep. 30, 2015

Revenue [Member]

Customer Concentration Risk [Member]

Customer A [Member]

Oct. 1, 2016

Revenue [Member]

Customer Concentration Risk [Member]

Customer A [Member]

Sep. 30, 2015

Revenue [Member]

Customer Concentration Risk [Member]

Customer A [Member]

Oct. 1, 2016

Revenue [Member]

Customer Concentration Risk [Member]

Customer B [Member]

Sep. 30, 2015

Revenue [Member]

Customer Concentration Risk [Member]

Customer B [Member]

Oct. 1, 2016

Revenue [Member]

Customer Concentration Risk [Member]

Customer B [Member]

Sep. 30, 2015

Revenue [Member]

Customer Concentration Risk [Member]

Customer B [Member]

Oct. 1, 2016

Revenue [Member]

Customer Concentration Risk [Member]

Customer C [Member]

Sep. 30, 2015

Revenue [Member]

Customer Concentration Risk [Member]

Customer C [Member]

Oct. 1, 2016

Revenue [Member]

Customer Concentration Risk [Member]

Customer C [Member]

Sep. 30, 2015

Revenue [Member]

Customer Concentration Risk [Member]

Customer C [Member]

Oct. 1, 2016

Revenue [Member]

Geographic Concentration Risk [Member]

Sep. 30, 2015

Revenue [Member]

Geographic Concentration Risk [Member]

Oct. 1, 2016

Revenue [Member]

Geographic Concentration Risk [Member]

Sep. 30, 2015

Revenue [Member]

Geographic Concentration Risk [Member]

Oct. 1, 2016

Revenue [Member]

Geographic Concentration Risk [Member]

United States [Member]

Sep. 30, 2015

Revenue [Member]

Geographic Concentration Risk [Member]

United States [Member]

Oct. 1, 2016

Revenue [Member]

Geographic Concentration Risk [Member]

United States [Member]

Sep. 30, 2015

Revenue [Member]

Geographic Concentration Risk [Member]

United States [Member]

Oct. 1, 2016

Revenue [Member]

Geographic Concentration Risk [Member]

Americas excluding United States [Member]

Sep. 30, 2015

Revenue [Member]

Geographic Concentration Risk [Member]

Americas excluding United States [Member]

Oct. 1, 2016

Revenue [Member]

Geographic Concentration Risk [Member]

Americas excluding United States [Member]

Sep. 30, 2015

Revenue [Member]

Geographic Concentration Risk [Member]

Americas excluding United States [Member]

Oct. 1, 2016

Revenue [Member]

Geographic Concentration Risk [Member]

Europe, Middle East, and Africa [Member]

Sep. 30, 2015

Revenue [Member]

Geographic Concentration Risk [Member]

Europe, Middle East, and Africa [Member]

Oct. 1, 2016

Revenue [Member]

Geographic Concentration Risk [Member]

Europe, Middle East, and Africa [Member]

Sep. 30, 2015

Revenue [Member]

Geographic Concentration Risk [Member]

Europe, Middle East, and Africa [Member]

Oct. 1, 2016

Revenue [Member]

Geographic Concentration Risk [Member]

APAC [Member]

Sep. 30, 2015

Revenue [Member]

Geographic Concentration Risk [Member]

APAC [Member]

Oct. 1, 2016

Revenue [Member]

Geographic Concentration Risk [Member]

APAC [Member]

Sep. 30, 2015

Revenue [Member]

Geographic Concentration Risk [Member]

APAC [Member]

Oct. 1, 2016

Accounts Receivable [Member]

Customer Concentration Risk [Member]

Customer A [Member]

Dec. 31, 2015

Accounts Receivable [Member]

Customer Concentration Risk [Member]

Customer A [Member]

Oct. 1, 2016

Accounts Receivable [Member]

Customer Concentration Risk [Member]

Customer B [Member]

Dec. 31, 2015

Accounts Receivable [Member]

Customer Concentration Risk [Member]

Customer B [Member]

Oct. 1, 2016

Accounts Receivable [Member]

Customer Concentration Risk [Member]

Customer C [Member]

Dec. 31, 2015

Accounts Receivable [Member]

Customer Concentration Risk [Member]

Customer C [Member]

Concentration Risk [Line Items]

Concentration risk, percentage

10.00%

14.00%

15.00%

13.00%

11.00%

12.00%

14.00%

12.00%

14.00%

12.00%

21.00%

15.00%

19.00%

15.00%

23.00%

Revenue

$ 503,802,000

$ 409,262,000

$ 1,595,686,000

$ 1,146,428,000

$ 503,802,000

$ 409,262,000

$ 1,595,686,000

$ 1,146,428,000

$ 361,239,000

$ 270,814,000

$ 1,158,116,000

$ 848,789,000

$ 25,939,000

$ 24,180,000

$ 76,708,000

$ 54,408,000

$ 80,932,000

$ 49,214,000

$ 255,127,000

$ 123,981,000

$ 35,692,000

$ 65,054,000

$ 105,735,000

$ 119,250,000

Long-lived assets including property and equipment

$ 53,000,000

$ 28,900,000

Acquisitions - Narrative (Details) (USD $)

3 Months Ended

9 Months Ended

1 Months Ended

9 Months Ended

1 Months Ended

Oct. 1, 2016

Sep. 30, 2015

Oct. 1, 2016

Sep. 30, 2015

Dec. 31, 2015

May 31, 2016

Privately Held Company [Member]

May 31, 2016

Privately Held Company [Member]

In Process Research and Development [Member]

Mar. 31, 2015

FitStar, Inc [Member]

Dec. 31, 2015

FitStar, Inc [Member]

Mar. 31, 2015

FitStar, Inc [Member]

Post Acquisition Compensation Expense [Member]

Jun. 30, 2015

FitStar, Inc [Member]

Other expense, net [Member]

Sep. 30, 2015

FitStar, Inc [Member]

General and administrative [Member]

Post Acquisition Compensation Expense [Member]

Mar. 31, 2015

FitStar, Inc [Member]

Developed technology [Member]

Mar. 31, 2015

FitStar, Inc [Member]

Customer relationships [Member]

Mar. 31, 2015

FitStar, Inc [Member]

Trademarks [Member]

Mar. 31, 2015

FitStar, Inc [Member]

Common Stock [Member]

Mar. 31, 2015

FitStar, Inc [Member]

Common Stock [Member]

Post Acquisition Compensation Expense [Member]

Business Acquisition [Line Items]

Cash paid for acquisition

$ 7,000,000

$ 11,500,000

Intangibles acquired

3,900,000

12,640,000

128,000

1,150,000

Goodwill

25,217,000

22,200,000

3,100,000

22,157,000

Total consideration

32,500,000

Shares issued, amount

13,300,000

Shares issued (in shares)

1,059,688

308,216

Contingent consideration assumed in acquisition

7,700,000

Contingent consideration liability

7,700,000

0

Change in contingent consideration

0

(7,704,000)

7,700,000

Amortization period

7 years

1 year 3 months 18 days

5 years

Shares repurchased, amount

4,200,000

Business combination, contingent cash payments

1,200,000.0

Requisite service period

3 years

Transaction costs

$ 300,000

Acquisitions - Assets Acquired and Liabilities Assumed (Details) (USD $)

In Thousands, unless otherwise specified

Oct. 1, 2016

Dec. 31, 2015

Mar. 31, 2015

FitStar, Inc [Member]

Mar. 31, 2015

FitStar, Inc [Member]

Developed and core technology [Member]

Mar. 31, 2015

FitStar, Inc [Member]

Customer relationships [Member]

Mar. 31, 2015

FitStar, Inc [Member]

Trademarks [Member]

Business Acquisition [Line Items]

Goodwill

$ 25,217

$ 22,200

$ 22,157

Intangibles acquired

12,640

128

1,150

Assumed liabilities, net of assets

(3,552)

Total

$ 32,523