| Balance Sheet Components |
6. Balance sheet components
Accounts Receivable, Net of allowances—Accounts receivable, net of allowances, consisted of the following (in thousands):
|
|
|
As of |
|
|
|
|
March 31,
2020 |
|
|
December 31,
2019 |
|
|
Gross accounts receivable |
|
$ |
314,580 |
|
|
$ |
360,194 |
|
|
Allowance for sales returns |
|
|
(4,668 |
) |
|
|
(6,550 |
) |
|
Allowance for sales incentives |
|
|
(9,273 |
) |
|
|
(19,476 |
) |
|
Allowance for doubtful accounts |
|
|
(4,959 |
) |
|
|
(1,140 |
) |
|
Other allowances |
|
|
(319 |
) |
|
|
(355 |
) |
|
Total allowances |
|
|
(19,219 |
) |
|
|
(27,521 |
) |
|
Total Accounts Receivable—net of allowances |
|
$ |
295,361 |
|
|
$ |
332,673 |
|
Allowance for Sales Returns—Allowance for sales returns consisted of the following activities (in thousands):
|
|
|
Three Months Ended |
|
|
|
|
March 31, 2020 |
|
|
Balance, beginning of period |
|
$ |
(6,550 |
) |
|
Charged to revenue |
|
|
(2,727 |
) |
|
Utilization of sales return allowance |
|
|
4,609 |
|
|
Balance, end of period |
|
$ |
(4,668 |
) |
Allowance for Sales Incentives—Allowance for sales incentives consisted of the following activities (in thousands):
|
|
|
Three Months Ended |
|
|
|
|
March 31, 2020 |
|
|
Balance, beginning of period |
|
$ |
(19,476 |
) |
|
Charged to revenue |
|
|
(9,409 |
) |
|
Utilization of sales incentive allowance |
|
|
19,612 |
|
|
Balance, end of period |
|
$ |
(9,273 |
) |
Allowance for Doubtful Accounts—Allowance for doubtful accounts consisted of the following activities (in thousands):
|
|
|
Three Months Ended |
|
|
|
|
March 31, 2020 |
|
|
Balance, beginning of period |
|
$ |
(1,140 |
) |
|
Impact of adoption of ASU 2016-13 |
|
|
(1,066 |
) |
|
Adjusted balance, beginning of period |
|
|
(2,206 |
) |
|
Provision for doubtful accounts |
|
|
(3,788 |
) |
|
Adjustments for recovery and write-off |
|
|
1,035 |
|
|
Balance, end of period |
|
$ |
(4,959 |
) |
Property and Equipment, Net—Property and equipment, net consisted of the following (in thousands):
|
|
|
As of |
|
|
|
|
March 31,
2020 |
|
|
December 31,
2019 |
|
|
Computers and equipment |
|
$ |
27,315 |
|
|
$ |
23,834 |
|
|
Leasehold improvements |
|
|
132,757 |
|
|
|
93,239 |
|
|
Website and internal-use software |
|
|
6,510 |
|
|
|
6,510 |
|
|
Office equipment and furniture |
|
|
18,296 |
|
|
|
12,091 |
|
|
Total property and equipment |
|
|
184,878 |
|
|
|
135,674 |
|
|
Accumulated depreciation and amortization |
|
|
(36,814 |
) |
|
|
(32,412 |
) |
|
Property and Equipment, net |
|
$ |
148,064 |
|
|
$ |
103,262 |
|
Depreciation and amortization expense, for property and equipment assets, for the three months ended March 31, 2020 and 2019 was $4.7 million and $2.7 million, respectively.
Accounts Payable and Accrued Liabilities—Accounts payable and accrued liabilities consisted of the following (in thousands):
|
|
|
As of |
|
|
|
|
March 31,
2020 |
|
|
December 31,
2019 |
|
|
Accounts payable |
|
$ |
103,423 |
|
|
$ |
115,227 |
|
|
Payments due to content publishers |
|
|
65,508 |
|
|
|
57,376 |
|
|
Accrued cost of revenue |
|
|
58,270 |
|
|
|
58,149 |
|
|
Operating lease liability, current |
|
|
19,709 |
|
|
|
17,896 |
|
|
Accrued royalty expense |
|
|
8,713 |
|
|
|
18,040 |
|
|
Accrued payroll and related expenses |
|
|
16,162 |
|
|
|
14,522 |
|
|
Accrued inventory |
|
|
14,497 |
|
|
|
2,892 |
|
|
Content licensing liability |
|
|
14,502 |
|
|
|
1,679 |
|
|
Marketing, retail and merchandising costs |
|
|
3,831 |
|
|
|
7,624 |
|
|
Accrued capital expenditures |
|
|
1,852 |
|
|
|
350 |
|
|
Accrued legal fees |
|
|
2,889 |
|
|
|
3,158 |
|
|
Customer prepayments |
|
|
3,474 |
|
|
|
2,669 |
|
|
Taxes and related liabilities |
|
|
2,166 |
|
|
|
3,052 |
|
|
Other accrued expenses |
|
|
13,877 |
|
|
|
10,940 |
|
|
Total Accounts Payable and Accrued Liabilities |
|
$ |
328,873 |
|
|
$ |
313,574 |
|
Deferred Revenue—Deferred revenue consisted of the following (in thousands):
|
|
|
As of |
|
|
|
|
March 31,
2020 |
|
|
December 31,
2019 |
|
|
Platform, current |
|
$ |
16,594 |
|
|
$ |
18,234 |
|
|
Player, current |
|
|
21,863 |
|
|
|
21,627 |
|
|
Total deferred revenue, current |
|
|
38,457 |
|
|
|
39,861 |
|
|
Platform, non-current |
|
|
6,242 |
|
|
|
6,135 |
|
|
Player, non-current |
|
|
8,553 |
|
|
|
9,235 |
|
|
Total deferred revenue, non-current |
|
|
14,795 |
|
|
|
15,370 |
|
|
Total Deferred Revenue |
|
$ |
53,252 |
|
|
$ |
55,231 |
|
|