Company Quick10K Filing
Fitbit
Price6.52 EPS-1
Shares265 P/E-5
MCap1,730 P/FCF-11
Net Debt-334 EBIT-319
TEV1,395 TEV/EBIT-4
TTM 2019-12-31, in MM, except price, ratios
10-Q 2020-07-04 Filed 2020-08-06
10-Q 2020-04-04 Filed 2020-05-07
10-K 2019-12-31 Filed 2020-02-27
10-Q 2019-09-28 Filed 2019-11-07
10-Q 2019-06-29 Filed 2019-08-02
10-Q 2019-03-30 Filed 2019-05-03
10-K 2018-12-31 Filed 2019-03-01
10-Q 2018-09-29 Filed 2018-11-05
10-Q 2018-06-30 Filed 2018-08-06
10-Q 2018-03-31 Filed 2018-05-07
10-K 2017-12-31 Filed 2018-03-01
10-Q 2017-09-30 Filed 2017-11-06
10-Q 2017-07-01 Filed 2017-08-10
10-Q 2017-04-01 Filed 2017-05-05
10-K 2016-12-31 Filed 2017-03-01
10-Q 2016-10-01 Filed 2016-11-04
10-Q 2016-07-02 Filed 2016-08-04
10-Q 2016-04-02 Filed 2016-05-06
10-K 2015-12-31 Filed 2016-02-29
10-Q 2015-09-30 Filed 2015-11-02
10-Q 2015-06-30 Filed 2015-08-07
8-K 2020-08-05 Earnings, Exhibits
8-K 2020-05-21
8-K 2020-05-06
8-K 2020-02-19
8-K 2020-01-03
8-K 2019-11-06
8-K 2019-11-06
8-K 2019-11-01
8-K 2019-07-31
8-K 2019-05-23
8-K 2019-05-01
8-K 2019-03-09
8-K 2019-02-27
8-K 2018-11-16
8-K 2018-10-31
8-K 2018-08-01
8-K 2018-06-15
8-K 2018-05-31
8-K 2018-05-24
8-K 2018-05-02
8-K 2018-03-26
8-K 2018-03-15
8-K 2018-03-06
8-K 2018-02-26

FIT 10Q Quarterly Report

Part I. Financial Information
Item 1. Condensed Consolidated Financial Statements
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
Item 3. Quantitative and Qualitative Disclosures About Market Risk
Item 4. Controls and Procedures
Part II
Item 1. Legal Proceedings
Item 1A. Risk Factors
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
Item 6. Exhibit Index
EX-31.1 exhibit311q22020.htm
EX-31.2 exhibit312q22020.htm
EX-32.1 exhibit321q22020.htm
EX-32.2 exhibit322q22020.htm

Fitbit Earnings 2020-07-04

Balance SheetIncome StatementCash Flow
1.91.51.10.80.40.02015201720192021
Assets, Equity
0.80.60.40.20.0-0.22015201720192021
Rev, G Profit, Net Income
0.30.20.1-0.1-0.2-0.32015201720192021
Ops, Inv, Fin

fit-20200704
000144759912/312020Q2falseus-gaap:AccountingStandardsUpdate201905MemberP1Mus-gaap:OtherAssetsus-gaap:AccountsPayableAndAccruedLiabilitiesCurrentAndNoncurrent00014475992020-01-012020-07-04xbrli:shares0001447599us-gaap:CommonClassAMember2020-07-290001447599us-gaap:CommonClassBMember2020-07-29iso4217:USD00014475992020-07-0400014475992019-12-3100014475992020-04-052020-07-0400014475992019-03-312019-06-2900014475992019-01-012019-06-29iso4217:USDxbrli:shares0001447599us-gaap:CommonStockMember2020-04-040001447599us-gaap:AdditionalPaidInCapitalMember2020-04-040001447599us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-04-040001447599us-gaap:RetainedEarningsMember2020-04-0400014475992020-04-040001447599us-gaap:CommonStockMember2020-04-052020-07-040001447599us-gaap:AdditionalPaidInCapitalMember2020-04-052020-07-040001447599us-gaap:RetainedEarningsMember2020-04-052020-07-040001447599us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-04-052020-07-040001447599us-gaap:CommonStockMember2020-07-040001447599us-gaap:AdditionalPaidInCapitalMember2020-07-040001447599us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-07-040001447599us-gaap:RetainedEarningsMember2020-07-040001447599us-gaap:CommonStockMember2019-03-300001447599us-gaap:AdditionalPaidInCapitalMember2019-03-300001447599us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-03-300001447599us-gaap:RetainedEarningsMember2019-03-3000014475992019-03-300001447599us-gaap:CommonStockMember2019-03-312019-06-290001447599us-gaap:AdditionalPaidInCapitalMember2019-03-312019-06-290001447599us-gaap:RetainedEarningsMember2019-03-312019-06-290001447599us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-03-312019-06-290001447599us-gaap:CommonStockMember2019-06-290001447599us-gaap:AdditionalPaidInCapitalMember2019-06-290001447599us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-06-290001447599us-gaap:RetainedEarningsMember2019-06-2900014475992019-06-290001447599us-gaap:CommonStockMember2019-12-310001447599us-gaap:AdditionalPaidInCapitalMember2019-12-310001447599us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-12-310001447599us-gaap:RetainedEarningsMember2019-12-310001447599us-gaap:CommonStockMember2020-01-012020-07-040001447599us-gaap:AdditionalPaidInCapitalMember2020-01-012020-07-040001447599us-gaap:RetainedEarningsMember2020-01-012020-07-040001447599us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-01-012020-07-040001447599us-gaap:CommonStockMember2018-12-310001447599us-gaap:AdditionalPaidInCapitalMember2018-12-310001447599us-gaap:AccumulatedOtherComprehensiveIncomeMember2018-12-310001447599us-gaap:RetainedEarningsMember2018-12-3100014475992018-12-310001447599us-gaap:CommonStockMember2019-01-012019-06-290001447599us-gaap:AdditionalPaidInCapitalMember2019-01-012019-06-290001447599us-gaap:RetainedEarningsMember2019-01-012019-06-290001447599us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-01-012019-06-290001447599fit:GoogleLLCAndMagnoliophytaIncMemberfit:AgreementAndPlantOfMergerMembersrt:ScenarioForecastMember2020-12-310001447599srt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2020-07-040001447599us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2020-07-040001447599us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2020-07-040001447599us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2020-07-040001447599us-gaap:FairValueMeasurementsRecurringMember2020-07-040001447599us-gaap:FairValueInputsLevel1Memberus-gaap:USGovernmentAgenciesDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2020-07-040001447599us-gaap:USGovernmentAgenciesDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2020-07-040001447599us-gaap:FairValueInputsLevel3Memberus-gaap:USGovernmentAgenciesDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2020-07-040001447599us-gaap:USGovernmentAgenciesDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2020-07-040001447599us-gaap:FairValueInputsLevel1Memberus-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2020-07-040001447599us-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2020-07-040001447599us-gaap:FairValueInputsLevel3Memberus-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2020-07-040001447599us-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2020-07-040001447599us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2019-12-310001447599us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2019-12-310001447599us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2019-12-310001447599us-gaap:FairValueMeasurementsRecurringMember2019-12-310001447599us-gaap:FairValueInputsLevel1Memberus-gaap:USGovernmentAgenciesDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2019-12-310001447599us-gaap:USGovernmentAgenciesDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2019-12-310001447599us-gaap:FairValueInputsLevel3Memberus-gaap:USGovernmentAgenciesDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2019-12-310001447599us-gaap:USGovernmentAgenciesDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2019-12-310001447599us-gaap:FairValueInputsLevel1Memberus-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2019-12-310001447599us-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2019-12-310001447599us-gaap:FairValueInputsLevel3Memberus-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2019-12-310001447599us-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2019-12-310001447599us-gaap:CashMember2020-07-040001447599us-gaap:MoneyMarketFundsMember2020-07-040001447599us-gaap:USGovernmentAgenciesDebtSecuritiesMember2020-07-040001447599us-gaap:CorporateDebtSecuritiesMember2020-07-040001447599us-gaap:CashMember2019-12-310001447599us-gaap:MoneyMarketFundsMember2019-12-310001447599us-gaap:USGovernmentAgenciesDebtSecuritiesMember2019-12-310001447599us-gaap:CorporateDebtSecuritiesMember2019-12-310001447599us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:ForeignExchangeContractMember2019-12-310001447599us-gaap:NondesignatedMemberus-gaap:ForeignExchangeContractMemberus-gaap:PrepaidExpensesAndOtherCurrentAssetsMember2020-07-040001447599us-gaap:NondesignatedMemberus-gaap:ForeignExchangeContractMemberus-gaap:PrepaidExpensesAndOtherCurrentAssetsMember2019-12-310001447599us-gaap:NondesignatedMemberus-gaap:ForeignExchangeContractMemberus-gaap:AccruedLiabilitiesMember2020-07-040001447599us-gaap:NondesignatedMemberus-gaap:ForeignExchangeContractMemberus-gaap:AccruedLiabilitiesMember2019-12-310001447599us-gaap:ForeignExchangeContractMember2020-07-040001447599us-gaap:ForeignExchangeContractMember2019-12-310001447599fit:OtherIncomeExpenseNetMemberus-gaap:NondesignatedMemberus-gaap:ForeignExchangeContractMember2020-04-052020-07-040001447599fit:OtherIncomeExpenseNetMemberus-gaap:NondesignatedMemberus-gaap:ForeignExchangeContractMember2019-03-312019-06-290001447599fit:OtherIncomeExpenseNetMemberus-gaap:NondesignatedMemberus-gaap:ForeignExchangeContractMember2020-01-012020-07-040001447599fit:OtherIncomeExpenseNetMemberus-gaap:NondesignatedMemberus-gaap:ForeignExchangeContractMember2019-01-012019-06-290001447599srt:MinimumMember2020-01-012020-07-040001447599srt:MaximumMember2020-01-012020-07-040001447599us-gaap:AllowanceForCreditLossMember2020-04-040001447599us-gaap:AllowanceForCreditLossMember2019-03-300001447599us-gaap:AllowanceForCreditLossMember2019-12-310001447599us-gaap:AllowanceForCreditLossMember2018-12-310001447599us-gaap:AllowanceForCreditLossMember2020-04-052020-07-040001447599us-gaap:AllowanceForCreditLossMember2019-03-312019-06-290001447599us-gaap:AllowanceForCreditLossMember2020-01-012020-07-040001447599us-gaap:AllowanceForCreditLossMember2019-01-012019-06-290001447599us-gaap:AllowanceForCreditLossMember2020-07-040001447599us-gaap:AllowanceForCreditLossMember2019-06-290001447599us-gaap:EquipmentMember2020-07-040001447599us-gaap:EquipmentMember2019-12-310001447599us-gaap:FurnitureAndFixturesMember2020-07-040001447599us-gaap:FurnitureAndFixturesMember2019-12-310001447599us-gaap:SoftwareAndSoftwareDevelopmentCostsMember2020-07-040001447599us-gaap:SoftwareAndSoftwareDevelopmentCostsMember2019-12-310001447599us-gaap:LeaseholdImprovementsMember2020-07-040001447599us-gaap:LeaseholdImprovementsMember2019-12-310001447599us-gaap:DevelopedTechnologyRightsMember2020-07-040001447599us-gaap:DevelopedTechnologyRightsMember2019-12-310001447599us-gaap:CustomerRelationshipsMember2020-07-040001447599us-gaap:CustomerRelationshipsMember2019-12-310001447599fit:TrademarksAndOtherMember2020-07-040001447599fit:TrademarksAndOtherMember2019-12-310001447599us-gaap:CostOfSalesMember2020-07-040001447599us-gaap:OperatingExpenseMember2020-07-04xbrli:pure0001447599us-gaap:PurchaseCommitmentMember2020-07-040001447599fit:PurchaseCommitmenttoThirdPartyHostingProviderMember2020-07-040001447599fit:PurchaseCommitmentAccrualMember2020-07-040001447599us-gaap:PurchaseCommitmentMemberus-gaap:AccruedLiabilitiesMember2020-07-040001447599us-gaap:LetterOfCreditMember2020-07-040001447599us-gaap:LetterOfCreditMember2019-12-31fit:defendant0001447599fit:AliphcomInc.dbaJawboneMember2017-12-082017-12-080001447599fit:AliphcomInc.dbaJawboneMember2018-06-142018-06-1400014475992018-06-140001447599fit:SleepTrackingLitigationCaseMember2019-08-18fit:numberOfClaims0001447599fit:SleepTrackingLitigationCaseMember2019-10-162019-10-160001447599fit:SleepTrackingLitigationCaseMemberfit:AttorneysFeesAwardedMember2020-03-202020-03-200001447599fit:SleepTrackingLitigationCaseMemberfit:LitigationCostsMember2020-03-202020-03-200001447599fit:PurePulseClassActionLawsuitMember2018-05-012018-05-31fit:lawsuit00014475992016-01-012017-12-3100014475992019-04-252019-04-250001447599fit:WynitDistributionMemberus-gaap:CustomerConcentrationRiskMember2017-07-022017-09-300001447599fit:WynitDistributionMemberus-gaap:CustomerConcentrationRiskMember2017-09-300001447599fit:WynitDistributionMemberus-gaap:CustomerConcentrationRiskMember2017-10-012017-12-310001447599fit:WynitDistributionMemberus-gaap:CustomerConcentrationRiskMember2018-01-012018-03-3100014475992018-01-012018-12-310001447599fit:A2015EmployeeStockPurchasePlanMemberus-gaap:CommonClassAMember2020-07-040001447599us-gaap:CommonClassAMember2020-07-040001447599us-gaap:RestrictedStockUnitsRSUMember2019-12-310001447599us-gaap:RestrictedStockUnitsRSUMember2020-01-012020-07-040001447599us-gaap:RestrictedStockUnitsRSUMember2020-07-040001447599us-gaap:CostOfSalesMember2020-04-052020-07-040001447599us-gaap:CostOfSalesMember2019-03-312019-06-290001447599us-gaap:CostOfSalesMember2020-01-012020-07-040001447599us-gaap:CostOfSalesMember2019-01-012019-06-290001447599us-gaap:ResearchAndDevelopmentExpenseMember2020-04-052020-07-040001447599us-gaap:ResearchAndDevelopmentExpenseMember2019-03-312019-06-290001447599us-gaap:ResearchAndDevelopmentExpenseMember2020-01-012020-07-040001447599us-gaap:ResearchAndDevelopmentExpenseMember2019-01-012019-06-290001447599us-gaap:SellingAndMarketingExpenseMember2020-04-052020-07-040001447599us-gaap:SellingAndMarketingExpenseMember2019-03-312019-06-290001447599us-gaap:SellingAndMarketingExpenseMember2020-01-012020-07-040001447599us-gaap:SellingAndMarketingExpenseMember2019-01-012019-06-290001447599us-gaap:GeneralAndAdministrativeExpenseMember2020-04-052020-07-040001447599us-gaap:GeneralAndAdministrativeExpenseMember2019-03-312019-06-290001447599us-gaap:GeneralAndAdministrativeExpenseMember2020-01-012020-07-040001447599us-gaap:GeneralAndAdministrativeExpenseMember2019-01-012019-06-290001447599fit:EmployeeStockOptionsAndRestrictedStockUnitsMember2020-07-040001447599fit:EmployeeStockOptionsAndRestrictedStockUnitsMember2020-01-012020-07-040001447599fit:A2015EmployeeStockPurchasePlanMemberus-gaap:EmployeeStockOptionMemberus-gaap:CommonStockMember2020-04-052020-07-040001447599fit:A2015EmployeeStockPurchasePlanMemberus-gaap:EmployeeStockOptionMemberus-gaap:CommonStockMember2019-03-312019-06-290001447599fit:A2015EmployeeStockPurchasePlanMemberus-gaap:EmployeeStockOptionMemberus-gaap:CommonStockMember2020-01-012020-07-040001447599fit:A2015EmployeeStockPurchasePlanMemberus-gaap:EmployeeStockOptionMemberus-gaap:CommonStockMember2019-01-012019-06-290001447599us-gaap:RestrictedStockUnitsRSUMemberfit:A2015EmployeeStockPurchasePlanMemberus-gaap:CommonStockMember2020-04-052020-07-040001447599us-gaap:RestrictedStockUnitsRSUMemberfit:A2015EmployeeStockPurchasePlanMemberus-gaap:CommonStockMember2019-03-312019-06-290001447599us-gaap:RestrictedStockUnitsRSUMemberfit:A2015EmployeeStockPurchasePlanMemberus-gaap:CommonStockMember2020-01-012020-07-040001447599us-gaap:RestrictedStockUnitsRSUMemberfit:A2015EmployeeStockPurchasePlanMemberus-gaap:CommonStockMember2019-01-012019-06-290001447599fit:A2015EmployeeStockPurchasePlanMemberus-gaap:CommonStockMemberus-gaap:WarrantMember2020-04-052020-07-040001447599fit:A2015EmployeeStockPurchasePlanMemberus-gaap:CommonStockMemberus-gaap:WarrantMember2019-03-312019-06-290001447599fit:A2015EmployeeStockPurchasePlanMemberus-gaap:CommonStockMemberus-gaap:WarrantMember2020-01-012020-07-040001447599fit:A2015EmployeeStockPurchasePlanMemberus-gaap:CommonStockMemberus-gaap:WarrantMember2019-01-012019-06-290001447599fit:A2015EmployeeStockPurchasePlanMemberus-gaap:CommonStockMemberus-gaap:EmployeeStockMember2020-04-052020-07-040001447599fit:A2015EmployeeStockPurchasePlanMemberus-gaap:CommonStockMemberus-gaap:EmployeeStockMember2019-03-312019-06-290001447599fit:A2015EmployeeStockPurchasePlanMemberus-gaap:CommonStockMemberus-gaap:EmployeeStockMember2020-01-012020-07-040001447599fit:A2015EmployeeStockPurchasePlanMemberus-gaap:CommonStockMemberus-gaap:EmployeeStockMember2019-01-012019-06-290001447599fit:A2015EmployeeStockPurchasePlanMember2020-04-052020-07-040001447599fit:A2015EmployeeStockPurchasePlanMember2019-03-312019-06-290001447599fit:A2015EmployeeStockPurchasePlanMember2020-01-012020-07-040001447599fit:A2015EmployeeStockPurchasePlanMember2019-01-012019-06-290001447599fit:CustomerCMemberus-gaap:SalesRevenueNetMemberus-gaap:CustomerConcentrationRiskMember2020-04-052020-07-040001447599fit:CustomerCMemberus-gaap:SalesRevenueNetMemberus-gaap:CustomerConcentrationRiskMember2019-03-312019-06-290001447599fit:CustomerCMemberus-gaap:SalesRevenueNetMemberus-gaap:CustomerConcentrationRiskMember2020-01-012020-07-040001447599fit:CustomerCMemberus-gaap:AccountsReceivableMemberus-gaap:CustomerConcentrationRiskMember2020-01-012020-07-040001447599fit:CustomerCMemberus-gaap:AccountsReceivableMemberus-gaap:CustomerConcentrationRiskMember2019-01-012019-12-310001447599us-gaap:AccountsReceivableMemberus-gaap:CustomerConcentrationRiskMemberfit:CustomerDMember2019-01-012019-12-310001447599us-gaap:AccountsReceivableMemberus-gaap:CustomerConcentrationRiskMemberfit:CustomerEMember2019-01-012019-12-310001447599us-gaap:SalesRevenueNetMembercountry:USus-gaap:GeographicConcentrationRiskMember2020-04-052020-07-040001447599us-gaap:SalesRevenueNetMembercountry:USus-gaap:GeographicConcentrationRiskMember2019-03-312019-06-290001447599us-gaap:SalesRevenueNetMembercountry:USus-gaap:GeographicConcentrationRiskMember2020-01-012020-07-040001447599us-gaap:SalesRevenueNetMembercountry:USus-gaap:GeographicConcentrationRiskMember2019-01-012019-06-290001447599fit:AmericasExcludingUnitedStatesMemberus-gaap:SalesRevenueNetMemberus-gaap:GeographicConcentrationRiskMember2020-04-052020-07-040001447599fit:AmericasExcludingUnitedStatesMemberus-gaap:SalesRevenueNetMemberus-gaap:GeographicConcentrationRiskMember2019-03-312019-06-290001447599fit:AmericasExcludingUnitedStatesMemberus-gaap:SalesRevenueNetMemberus-gaap:GeographicConcentrationRiskMember2020-01-012020-07-040001447599fit:AmericasExcludingUnitedStatesMemberus-gaap:SalesRevenueNetMemberus-gaap:GeographicConcentrationRiskMember2019-01-012019-06-290001447599us-gaap:SalesRevenueNetMemberus-gaap:EMEAMemberus-gaap:GeographicConcentrationRiskMember2020-04-052020-07-040001447599us-gaap:SalesRevenueNetMemberus-gaap:EMEAMemberus-gaap:GeographicConcentrationRiskMember2019-03-312019-06-290001447599us-gaap:SalesRevenueNetMemberus-gaap:EMEAMemberus-gaap:GeographicConcentrationRiskMember2020-01-012020-07-040001447599us-gaap:SalesRevenueNetMemberus-gaap:EMEAMemberus-gaap:GeographicConcentrationRiskMember2019-01-012019-06-290001447599us-gaap:SalesRevenueNetMemberus-gaap:GeographicConcentrationRiskMembersrt:AsiaPacificMember2020-04-052020-07-040001447599us-gaap:SalesRevenueNetMemberus-gaap:GeographicConcentrationRiskMembersrt:AsiaPacificMember2019-03-312019-06-290001447599us-gaap:SalesRevenueNetMemberus-gaap:GeographicConcentrationRiskMembersrt:AsiaPacificMember2020-01-012020-07-040001447599us-gaap:SalesRevenueNetMemberus-gaap:GeographicConcentrationRiskMembersrt:AsiaPacificMember2019-01-012019-06-290001447599us-gaap:GeographicConcentrationRiskMemberus-gaap:NonUsMember2020-07-040001447599us-gaap:GeographicConcentrationRiskMemberus-gaap:NonUsMember2019-12-31
Table of Contents


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
____________________________________________
FORM 10-Q
____________________________________________
(Mark one)QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended July 4, 2020 
or
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ________________ to ________________
Commission file number: 001-37444
__________________________________________
FITBIT, INC.
(Exact name of registrant as specified in its charter)
____________________________________________
Delaware
20-8920744
(State or other jurisdiction of
incorporation or organization)
(I.R.S. Employer Identification No.)
199 Fremont Street,
14th Floor
San Francisco,
California
94105
(Address of principal executive offices)(Zip Code)
(415) 513-1000
(Registrant’s telephone number, including area code)
____________________________________________
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading symbolName of each exchange on which registered
Class A Common Stock, $0.0001 par valueFITThe New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
YesNo
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
YesNo

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer


Accelerated filer
Non-accelerated filerSmaller reporting company
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
YesNo

As of July 29, 2020, there were 242,126,620 shares of the registrant’s Class A common stock outstanding and 27,600,601 shares of the registrant’s Class B common stock outstanding.


Table of Contents

TABLE OF CONTENTS

 Page 
Number
 
   
  
     
 
Condensed Consolidated Balance Sheets—July 4, 2020 and December 31, 2019
     
 
Condensed Consolidated Statements of Operations—for the three and six months ended July 4, 2020 and June 29, 2019
     
 
Condensed Consolidated Statements of Stockholders’ Equity—for the three and six months ended July 4, 2020 and June 29, 2019
     
 
Condensed Consolidated Statements of Cash Flows—for the six months ended July 4, 2020 and June 29, 2019
     
 
     
     
     
     
  
     
     
     
 



Table of Contents

NOTE ABOUT FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which involve risks and uncertainties. All statements contained in this Quarterly Report on Form 10-Q other than statements of historical fact, including statements regarding our future results of operations and financial position, our business strategy and plans, and our objectives for future operations, are forward-looking statements. The words “believe,” “may,” “will,” “estimate,” “continue,” “anticipate,” “intend,” “expect,” “forecast,” and similar expressions are intended to identify forward-looking statements. Forward-looking statements contained in this Quarterly Report on Form 10-Q include, but are not limited to, statements about:

the expected timing and anticipated closing of our pending acquisition by Google LLC;
the impact of the recent COVID-19 pandemic on our business and our response to it;
our future revenue, cost of revenue, gross margin, operating expenses, including personnel costs, research and development expense, sales and marketing expense, and general and administrative expense;
continued investments in research and development, sales and marketing, and international expansion, and the impact of those investments;
competitors and competition in our markets;
our ability to anticipate and satisfy consumer preferences;
our smartwatches and their market acceptance and future potential;
our ability to develop and introduce new products and services, including recurring non-device revenue offerings, and improve our existing products and services;
our ability to grow and engage our user base;
our expectations to derive the substantial majority of our revenue from sales of devices;
trends in our quarterly operating results and other operating metrics;
the impact of tariffs or other restrictions placed on our products imported into the United States from other countries, including China;
the impact of changes in tax laws on our operating results;
the impact of tax relief or other government benefits enacted in response to the COVID-19 pandemic;
the impact of our adoption of accounting pronouncements;
our ability to forecast demand and manage inventory;
our ability to maintain and promote our brand and expand brand awareness;
our ability to detect, prevent, or fix defects;
our ability to obtain products and services from third-party suppliers, contract manufacturers, and logistics providers;
our ability to adequately assess and mitigate credit and other risks in our sales channels;
legal proceedings and the impact of such proceedings;
the effect of seasonality on our results of operations;
our ability to attract and retain highly skilled employees;
the impact of our acquisitions in enhancing the features and functionality of our devices;
the impact of foreign currency exchange rates;
the sufficiency of our existing cash and cash equivalent balances and cash flow from operations to meet our working capital and capital expenditure needs through the anticipated closing of the Merger transaction with Google; and
general market, political, economic and business conditions, including as may be impacted by the COVID-19 pandemic, and our ability to anticipate and respond to these conditions.

We caution you that the foregoing list does not contain all of the forward-looking statements made in this Quarterly Report on Form 10-Q.

You should not rely upon forward-looking statements as predictions of future events. We have based the forward-looking statements contained in this Quarterly Report on Form 10-Q primarily on our current expectations and projections about future events and trends that we believe may affect our business, financial condition, operating results, and prospects. The outcome of the events described in these forward-looking statements is subject to risks, uncertainties, and other factors described in the section titled “Risk Factors” and elsewhere in this Quarterly Report on Form 10-Q. Moreover, we operate in a very competitive and rapidly changing environment. New risks and uncertainties emerge from time to time, and it is not possible for us to predict all risks and uncertainties that could have an impact on the forward-looking statements contained in this Quarterly Report on Form 10-Q. We cannot assure you that the results, events, and circumstances reflected in the forward-looking statements will be achieved or occur, and actual results, events, or circumstances could differ materially from those described in the forward-looking statements.

3

Table of Contents

The forward-looking statements made in this Quarterly Report on Form 10-Q relate only to events as of the date on which the statements are made. We undertake no obligation to update any forward-looking statements made in this Quarterly Report on Form 10-Q to reflect events or circumstances after the date of this Quarterly Report on Form 10-Q or to reflect new information or the occurrence of unanticipated events, except as required by law. We may not actually achieve the plans, intentions, or expectations disclosed in our forward-looking statements and you should not place undue reliance on our forward-looking statements. Our forward-looking statements do not reflect the potential impact of any future acquisitions, mergers, dispositions, joint ventures, or investments we may make.
4

Table of Contents

PART I. FINANCIAL INFORMATION
Item 1. Condensed Consolidated Financial Statements

FITBIT, INC.
Condensed Consolidated Balance Sheets
(in thousands)
(unaudited)
 
 July 4, 2020
December 31, 2019
 
Assets
Current assets:
Cash and cash equivalents$343,476  $334,479  
Marketable securities104,755  184,023  
Accounts receivable, net215,394  435,269  
Inventories65,371  136,752  
Income tax receivable26,753  573  
Prepaid expenses and other current assets31,829  28,656  
Total current assets787,578  1,119,752  
Property and equipment, net78,552  82,756  
Operating lease right-of-use assets65,579  70,225  
Goodwill64,812  64,812  
Intangible assets, net9,668  16,746  
Deferred tax assets26,017  4,111  
Other assets10,269  9,684  
Total assets$1,042,475  $1,368,086  
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable$79,726  $194,626  
Accrued liabilities358,288  513,530  
Operating lease liabilities21,687  23,511  
Deferred revenue32,589  32,307  
Income taxes payable1,448  636  
Total current liabilities493,738  764,610  
Long-term deferred revenue 4,626  8,535  
Long-term operating lease liabilities61,410  67,902  
Other liabilities52,385  39,776  
Total liabilities612,159  880,823  
Commitments and contingencies (Note 6)
Stockholders’ equity:
Class A and Class B common stock27  26  
Additional paid-in capital1,153,520  1,126,827  
Accumulated other comprehensive income350  188  
Accumulated deficit(723,581) (639,778) 
Total stockholders’ equity 430,316  487,263  
Total liabilities and stockholders’ equity$1,042,475  $1,368,086  

The accompanying notes are an integral part of these condensed consolidated financial statements.
5

Table of Contents

FITBIT, INC.
Condensed Consolidated Statements of Operations
(in thousands, except per share amounts)
(unaudited)
 
 Three Months Ended
Six Months Ended
   
July 4, 2020
June 29, 2019
July 4, 2020
June 29, 2019
Revenue$261,272  $313,556  $449,430  $585,446  
Cost of revenue168,230  205,342  301,466  387,779  
Gross profit93,042  108,214  147,964  197,667  
Operating expenses:
   Research and development83,733  70,919  165,322  147,958  
   Sales and marketing65,470  83,060  122,431  151,676  
   General and administrative35,049  24,865  77,090  51,557  
Total operating expenses184,252  178,844  364,843  351,191  
Operating loss(91,210) (70,630) (216,879) (153,524) 
Interest income, net13  2,622  1,306  6,088  
Other income, net2,237  461  2,233  1,734  
Loss before income taxes(88,960) (67,547) (213,340) (145,702) 
Income tax expense (benefit)15,137  971  (129,537) 2,281  
Net loss$(104,097) $(68,518) $(83,803) $(147,983) 
Net loss per share:
Basic$(0.39) $(0.27) $(0.31) $(0.58) 
Diluted$(0.39) $(0.27) $(0.31) $(0.58) 
Shares used to compute net loss per share:
Basic267,872  256,160  266,742  254,659  
Diluted267,872  256,160  266,742  254,659  

 
The accompanying notes are an integral part of these condensed consolidated financial statements.
6

Table of Contents

FITBIT, INC.
Condensed Consolidated Statements of Comprehensive Loss
(in thousands)
(unaudited)
 Three Months Ended
Six Months Ended
 
July 4, 2020
June 29, 2019
July 4, 2020
June 29, 2019
Net loss(104,097) (68,518) $(83,803) $(147,983) 
Other comprehensive loss
Available-for-sale investments:
Change in unrealized gain on investments117  167  162  329  
Net change, net of tax117  167  162  329  
Comprehensive loss$(103,980) $(68,351) $(83,641) $(147,654) 

The accompanying notes are an integral part of these condensed consolidated financial statements.
7

Table of Contents

FITBIT, INC.
Condensed Consolidated Statements of Stockholders’ Equity
(in thousands, except share amounts)
(unaudited)
Three Months Ended July 4, 2020
 Class A and Class B Common StockAdditional
Paid-In
Capital
Accumulated
Other
Comprehensive
Income
Accumulated
Deficit
Total
Stockholders’
Equity
 SharesAmount
Balance at April 4, 2020
266,806,999  $26  $1,140,280  $233  $(619,484) $521,055  
Issuance of common stock2,777,381  1  544  —  —  545  
Stock-based compensation expense—  —  19,057  —  —  19,057  
Taxes related to net share settlement of restricted stock units—  —  (6,361) —  —  (6,361) 
Net loss—  —  —  —  (104,097) (104,097) 
Other comprehensive income—  —  —  117  —  117  
Balance at July 4, 2020
269,584,380  $27  $1,153,520  $350  $(723,581) $430,316  

Three Months Ended June 29, 2019
 Class A and Class B Common StockAdditional
Paid-In
Capital
Accumulated
Other
Comprehensive
Income (Loss)
Accumulated
Deficit
Total
Stockholders’
Equity
 SharesAmount
Balance at March 30, 2019
254,744,029  $25  $1,070,224  $96  $(398,532) $671,813  
Issuance of common stock3,395,423  —  5,881  —  —  5,881  
Stock-based compensation expense—  —  20,424  —  —  20,424  
Taxes related to net share settlement of restricted stock units—  —  (4,223) —  —  (4,223) 
Net loss—  —  —  —  (68,518) (68,518) 
Other comprehensive income—  —  —  167  —  167  
Balance at June 29, 2019
258,139,452  $25  $1,092,306  $263  $(467,050) $625,544  

The accompanying notes are an integral part of these condensed consolidated financial statements.
8

Table of Contents

FITBIT, INC.
Condensed Consolidated Statements of Stockholders’ Equity (Continued)
(in thousands, except share amounts)
(unaudited)
Six Months Ended July 4, 2020
 Class A and Class B Common StockAdditional
Paid-In
Capital
Accumulated
Other
Comprehensive
Income
Accumulated
Deficit
Total
Stockholders’
Equity
 SharesAmount
Balance at December 31, 2019
264,883,426  $26  $1,126,827  $188  $(639,778) $487,263  
Issuance of common stock4,700,954   1,002  —  —  1,003  
Stock-based compensation expense—  —  37,920  —  —  37,920  
Taxes related to net share settlement of restricted stock units—  —  (12,229) —  —  (12,229) 
Net loss—  —  —  —  (83,803) (83,803) 
Other comprehensive income—  —  —  162  —  162  
Balance at July 4, 2020
269,584,380  $27  $1,153,520  $350  $(723,581) $430,316  

Six Months Ended June 29, 2019
 Class A and Class B Common StockAdditional
Paid-In
Capital
Accumulated
Other
Comprehensive
Income (Loss)
Accumulated
Deficit
Total
Stockholders’
Equity
 SharesAmount
Balance at December 31, 2018
252,362,841  $25  $1,055,046  $(66) $(319,067) $735,938  
Issuance of common stock5,776,611  —  6,812  —  —  6,812  
Stock-based compensation expense—  —  41,093  —  —  41,093  
Taxes related to net share settlement of restricted stock units—  —  (10,645) —  —  (10,645) 
Net loss—  —  —  —  (147,983) (147,983) 
Other comprehensive income—  —  —  329  —  329  
Balance at June 29, 2019
258,139,452  $25  $1,092,306  $263  $(467,050) $625,544  

The accompanying notes are an integral part of these condensed consolidated financial statements.
9

Table of Contents

FITBIT, INC.
Condensed Consolidated Statements of Cash Flows
(in thousands)
(unaudited)
 
Six Months Ended
July 4, 2020
June 29, 2019
Cash Flows from Operating Activities
Net loss$(83,803) $(147,983) 
Adjustments to reconcile net loss to net cash used in operating activities:
Provision for doubtful accounts6,045  48  
Provision for excess and obsolete inventory13,260  4,122  
Depreciation 21,042  30,106  
Non-cash lease expense8,477  11,615  
Accelerated depreciation of property and equipment626  170  
Amortization of intangible assets7,078  4,121  
Stock-based compensation39,497  41,091  
Deferred income taxes(21,819) 134  
Other324  162  
Changes in operating assets and liabilities, net of acquisition:
Accounts receivable213,830  155,561  
Inventories56,544  (41,183) 
Prepaid expenses and other assets(5,753) 14,416  
Income taxes receivable(26,180) (409) 
Accounts payable(123,657) (100,517) 
Accrued liabilities and other liabilities(141,269) (97,964) 
Lease liabilities(10,900) (13,577) 
Deferred revenue(3,627) (3,475) 
Income taxes payable813  (514) 
Net cash used in operating activities
(49,472) (144,076) 
Cash Flows from Investing Activities
Purchase of property and equipment (8,550) (10,827) 
Purchases of marketable securities(59,735) (220,495) 
Sales of marketable securities  2,016  
Maturities of marketable securities139,365  239,429  
Net cash provided by investing activities
71,080  10,123  
Cash Flows from Financing Activities
Payment of financing lease liability(1,384) (937) 
Proceeds from issuance of common stock1,002  6,812  
Taxes paid related to net share settlement of restricted stock units(12,229) (10,649) 
Net cash used in financing activities
(12,611) (4,774) 
Net increase (decrease) in cash and cash equivalents
8,997  (138,727) 
Cash and cash equivalents at beginning of period334,479  473,956  
Cash and cash equivalents at end of period$343,476  $335,229  

The accompanying notes are an integral part of these condensed consolidated financial statements.
10

Table of Contents
FITBIT, INC.
Notes to Condensed Consolidated Financial Statements

1.    Basis of Presentation and Summary of Significant Accounting Policies
 
The accompanying condensed consolidated financial statements of Fitbit, Inc. (the “Company”) are unaudited. The condensed consolidated balance sheet at December 31, 2019 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 (“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 six months ended July 4, 2020 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, 2019, filed with the Securities and Exchange Commission (“SEC”) on February 27, 2020.

The Company’s fiscal year ends on December 31 of each year. The Company is on a 4-4-5 week quarterly calendar. There were 91 days in each of the three months ended July 4, 2020 and June 29, 2019.

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 are related to revenue recognition, reserves for sales returns and incentives, reserves for warranty, valuation of stock-based awards, fair value of derivative assets and liabilities, allowance for credit losses, inventory valuation, fair value of goodwill and acquired tangible and intangible assets and liabilities assumed during acquisitions, the recoverability of intangible assets and their useful lives, contingencies, and income taxes. Actual results could differ from those estimates, and such differences may be material to the condensed consolidated financial statements.

Google Acquisition

On November 1, 2019, the Company entered into an Agreement and Plan of Merger (the “Merger Agreement”) with Google LLC, a Delaware limited liability company (“Google”), and Magnoliophyta Inc., a Delaware corporation and wholly owned subsidiary of Google (the “Merger Sub”). Pursuant to the terms of, and subject to the conditions specified in, the Merger Agreement, the Merger Sub will merge with and into the Company, and the Company will become a wholly owned subsidiary of Google (the “Merger”). If the Merger is completed, Google will acquire all the shares of the Company’s Class A common stock and Class B common stock (together, the “Shares”) for $7.35 per share in cash, without interest (the “Merger Consideration”). All Shares underlying vested stock options and vested stock-based awards will be converted into the right to receive the Merger Consideration (or, in the case of stock options, the difference between the Merger Consideration and the applicable per share exercise price), less any applicable tax withholdings. Unvested stock options and stock-based awards will generally be converted into cash-based awards with an equivalent value based on the Merger Consideration and vesting schedule. Completion of the Merger is subject to customary closing conditions, including approval by the expiration or termination of any waiting periods or receipt of any requisite consents under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, approval under the antitrust laws of the European Union and other jurisdictions agreed by the parties, and satisfaction of other closing conditions. On August 4, 2020, the European Commission announced it has initiated a Phase II review of the transaction. The duration of a Phase II review cannot be foreseen with certainty. While we still expect to secure the necessary regulatory approvals and to close the transaction in 2020, the time frame may extend beyond that. The Merger was approved by the Company’s stockholders on January 3, 2020.

Risks and Uncertainties for COVID-19

The recent outbreak of the novel coronavirus COVID-19, which was declared a global pandemic by the World Health Organization in March 2020, adversely impacted our business in the first half of 2020. The pandemic and associated containment measures have caused disruptions in the development, manufacture, shipment, and sales of our products. During
11

Table of Contents
FITBIT, INC.
Notes to Condensed Consolidated Financial Statements (Continued)
the first half of 2020, the Company’s operating results were negatively impacted by decreased retail activity and retail store closures due to COVID-19. Operating results were also impacted by additional reserves for product returns, rebates and promotions, and price protection on certain products, primarily as a result of declining demand due to COVID-19. Additionally, operating results were impacted by allowances for credit losses as a result of COVID-19 and its potential impact.

The current circumstances are dynamic and unprecedented, and the impacts of the COVID-19 pandemic on our business operations, including the duration and severity of the effect on overall consumer demand, are highly uncertain and cannot be predicted. However, these impacts have had, and we expect will continue to have, a significant adverse effect on our operations, revenue, liquidity, financial conditions, and financial results. For further information regarding the impact of COVID-19 on the Company, see Part I, Item 2, Management’s Discussion and Analysis, and Part II, Item 1A, Risk Factors in this Quarterly Report on Form 10-Q.

Significant Accounting Policies

There have been no significant changes in the Company’s accounting policies from those disclosed in its Annual Report on Form 10-K filed with the SEC on February 27, 2020.

Recent Accounting Pronouncements

Accounting Pronouncements Not Yet Adopted

In December 2019, the Financial Accounting Standards Board (the “FASB”) issued ASU 2019-12, Simplifying the Accounting for Income Taxes. This guidance is effective for fiscal years and interim periods within those years beginning after December 15, 2020, with early adoption permitted. The Company is currently evaluating the impact this guidance may have on its consolidated financial statements and related disclosures.

Accounting Pronouncements Recently Adopted

In June 2016, the FASB issued ASU 2016-13, Financial Instruments–Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. ASU 2016-13 provides for a new impairment model which requires measurement and recognition of expected credit losses for most financial assets and certain other instruments, including but not limited to accounts receivable and available-for-sale debt securities. In April 2019, the FASB issued ASU No. 2019-04, Codification Improvements to Topic 326, Financial Instruments–Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments. This ASU clarifies and corrects guidance related to Topic 326, Topic 815, and Topic 825. In May 2019, the FASB issued ASU 2019-05, Financial Instruments-Credit Losses (Topic 326): Targeted Transition Relief. This ASU provides an option to irrevocably elect to measure certain individual financial assets at fair value instead of amortized cost. The Company adopted Topic 326 utilizing the modified retrospective method. Prior periods were not retrospectively adjusted. The cumulative effect upon adoption on the opening accumulated deficit balance was zero.

In January 2017, the FASB issued ASU 2017-04, Intangibles–Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. ASU 2017-04 simplifies the subsequent measurement of goodwill by eliminating the second step of the goodwill impairment test. The second step measures a goodwill impairment loss by comparing the implied fair value of a reporting unit’s goodwill with the carrying amount of that goodwill. Under ASU 2017-04, a company will record an impairment charge based on the excess of a reporting unit’s carrying amount over its fair value. ASU 2017-04 became effective for the Company on January 1, 2020. The adoption of this standard did not have a material impact on the Company’s consolidated financial statements.

In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework–Changes to the Disclosure Requirements for Fair Value Measurement. ASU 2018-13 modifies the disclosure requirements on fair value measurements and became effective for the Company on January 1, 2020. The adoption of this standard did not have a material impact on the Company’s consolidated financial statements.

In August 2018, the FASB issued ASU 2018-15, Intangibles–Goodwill and Other–Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. ASU 2018-15 clarifies the accounting for implementation costs in cloud computing arrangements and became effective for the Company on January 1, 2020. The adoption of this standard did not have a material impact on the Company’s consolidated financial statements.
12

Table of Contents
FITBIT, INC.
Notes to Condensed Consolidated Financial Statements (Continued)

2.    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):
 
 
July 4, 2020
 Level 1Level 2Level 3Total
Assets:
Money market funds$241,249  $  $  $241,249  
U.S. government agencies  24,083    24,083  
Corporate debt securities  80,672    80,672  
Total$241,249  $104,755  $  $346,004  
Liabilities:
Contingent consideration$  $  $1,889  $1,889  
Total$  $