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Commitments, contingencies and guarantees | 12 Months Ended
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Dec. 31, 2020
Commitments and Contingencies Disclosure [Abstract] |
Commitments, contingencies and guarantees | Commitments, contingencies and guarantees Facility Leases. The Company leases its facilities under long-term operating leases, which expire at various dates through 2027. The components of net lease cost, which were recorded in operating expenses, were as follows:
|  |  | Year ended December 31,
(in thousands) |  |  |  |  | 2020 (1) |  | 2019 (1) |  | 2018 (2)
Operating lease cost (1) |  |  |  |  | $ | 14,815 |  |  | $ | 17,811 |  |  | $ | 13,649 |
Sublease income |  |  |  |  | (526) |  |  | (656) |  |  | (765) |
Right-of-use asset impairment cost |  |  |  |  | 12,460 |  |  | — |  |  | — |
Net lease cost |  |  |  |  | $ | 26,749 |  |  | $ | 17,155 |  |  | $ | 12,884 |
(1) Operating lease cost includes variable lease costs, which are immaterial. (2) Represents rent expense and sublease income under ASC 840, Leases. Supplemental cash flow information related to leases was as follows:
|  | Year ended December 31,
(in thousands) |  | 2020 |  | 2019
Cash paid for amounts included in the measurement of lease liabilities |  |  |  |
Operating cash flows from operating leases |  | $ | 14,310 |  |  | $ | 14,015 |
Right-of-use assets obtained in exchange for operating lease liabilities |  | 1,343 |  |  | 13,287 |
Operating lease modifications to decrease right-of-use assets |  | (2,251) |  |  | — |
Supplemental balance sheet information related to leases was as follows:
|  | December 31, 2020 |  | December 31, 2019
Weighted-average remaining lease term (in years) - operating leases |  | 5.53 |  | 6.44
Weighted-average discount rate - operating leases |  | 6.2% |  | 6.2%
As of December 31, 2020, maturities of operating lease liabilities were as follows:
(in thousands) |  | December 31, 2020
2021 |  | $ | 12,794 |
2022 |  | 12,945 |
2023 |  | 11,924 |
2024 |  | 11,519 |
2025 |  | 11,306 |
Thereafter |  | 12,626 |
Total lease payments |  | 73,114 |
Less: Imputed interest |  | (12,112) |
Present value of lease liabilities |  | $ | 61,002 |
Other Commitments. In the ordinary course of business, the Company enters into multi-year agreements to purchase sponsorships with event organizers, resorts and athletes as part of its marketing efforts; software licenses related to its financial and IT systems; debt agreements; and various other contractual commitments. As of December 31, 2020, future commitments were as follows:
(in thousands) | Total |  | 2021 |  | 2022 |  | 2023 |  | 2024 |  | 2025 |  | Thereafter
Sponsorship commitments | $ | 1,509 |  |  | $ | 1,059 |  |  | $ | 450 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Other contractual commitments | 27,526 |  |  | 19,165 |  |  | 6,361 |  |  | 1,882 |  |  | 118 |  |  | — |  |  | — |
Long-term debt (1) | 284,268 |  |  | 7,279 |  |  | 128,073 |  |  | 1,797 |  |  | 1,797 |  |  | 145,322 |  |  | — |
Total contractual cash obligations | $ | 313,303 |  |  | $ | 27,503 |  |  | $ | 134,884 |  |  | $ | 3,679 |  |  | $ | 1,915 |  |  | $ | 145,322 |  |  | $ | — |
(1) The Company's convertible senior notes are due in April 2022 and November 2025. The balances include accrued and unpaid interest as of December 31, 2020. Refer to Note 4 Financing Arrangements. Legal proceedings and investigations. On February 13, 2018 and February 27, 2018, two purported shareholder derivative lawsuits (the Consolidated Federal Derivative Actions) were filed in the United States District Court for the Northern District of California against certain of GoPro’s current and former directors and executive officers and naming the Company as a nominal defendant. The Consolidated Federal Derivative Actions are based on allegations similar to those in two now-resolved shareholder class actions - one filed in 2016 which was settled and received final approval of the Court on September 20, 2019, and the other filed in 2018 which had final judgment entered in favor of defendants on June 24, 2019, following the Court’s granting of defendants’ motion to dismiss. The Consolidated Federal Derivative Actions assert causes of action against the individual defendants for breach of fiduciary duty, and for making false and misleading statements about the Company’s business, operations and prospects in violation of Sections 10(b) and 14(a) of the Securities Exchange Act of 1934. The plaintiffs seek corporate reforms, disgorgement of profits from stock sales, and fees and costs. On June 15, 2020, defendants moved to dismiss the complaint. Different shareholders filed two similar purported shareholder derivative actions on October 30, 2018 and November 7, 2018 in the Delaware Court of Chancery (the Consolidated Delaware Derivative Actions). On April 28, 2020, the Court granted defendants’ motion to dismiss the Consolidated Delaware Derivative Actions with prejudice. On May 8, 2020, plaintiffs filed a notice of appeal. On February 3, 2021, the Delaware Supreme Court stayed the appeal pending final approval of the below described Settlement. Other shareholders filed similar purported shareholder derivative actions on December 26, 2018, February 15, 2019, and January 27, 2020 in the Delaware Court of Chancery. Those actions are either stayed or defendants’ time to respond to the complaint has not yet passed. Following settlement negotiations, an agreement in principle to settle all derivative claims on behalf of the Company (the Settlement) was reached by plaintiffs in the Consolidated Federal Derivative Actions, the Consolidated Delaware Derivative Actions, certain other plaintiffs (the Settling Plaintiffs), and the current and former executive officers and members of the Company’s Board. On February 9, 2021, the Settling Plaintiffs filed a motion for preliminary approval of the Settlement in the Consolidated Federal Derivative Actions. The Settlement is subject to court approval and is not expected to have a material impact on the Company’s consolidated financial statements. On January 5, 2015, Contour LLC filed a complaint against the Company in federal court in Utah alleging, among other things, patent infringement in relation to certain GoPro cameras. On November 30, 2015, Contour dismissed the Utah action. On November 30, 2015, Contour IP Holdings LLC (CIPH), a non-practicing entity re-filed a similar complaint in Delaware seeking unspecified damages. GoPro filed an inter partes review (IPR) at the United States Patent and Trademark Office. The case was transferred to the Northern District of California in July 2017 and was stayed pending the IPR proceedings. Upon conclusion of the IPRs, the District Court lifted the stay on October 1, 2019. Due to COVID-19 delays, the trial is now scheduled to commence on May 10, 2021. The Company believes that this matter lacks merit, and intends to vigorously defend against CIPH. The Company regularly evaluates the associated developments of the legal proceedings described above, as well as other legal proceedings that arise in the ordinary course of business. While litigation is inherently uncertain, based on the currently available information, the Company is unable to determine a loss or a range of loss, and does not believe the ultimate cost to resolve these matters will have a material adverse effect on its business, financial condition, cash flows or results of operations. Indemnifications. The Company has entered into indemnification agreements with its directors and executive officers which requires the Company to indemnify its directors and executive officers against liabilities that may arise by reason of their status or service. In addition, in the normal course of business, the Company enters into agreements that contain a variety of representations and warranties, and provide for general indemnification. The Company’s exposure under these agreements is unknown because it involves claims that may be made against the Company in the future, but have not yet been made. It is not possible to determine the maximum potential amount under these indemnification agreements due to the Company’s limited history with indemnification claims and the unique facts and circumstances involved in each particular agreement. As of December 31, 2020, the Company has not paid any claims nor has it been required to defend any action related to its indemnification obligations. However, the Company may record charges in the future as a result of these indemnification obligations.

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