GoPro, Inc. Consolidated Balance Sheets December 31, 2019 December 31, 2018 . $ (in thousands, except par values) Assets Current assets: Cash and cash equivalents Marketable securities Accounts receivable, net Inventory Prepaid expenses and other current assets Total current assets Property and equipment, net Operating lease right-of-use assets Intangible assets, net Goodwill Other long-term assets Total assets 150,301 14,847 200,634 144,236 25,958 535,976 36,539 53,121 5,247 146,459 15,461 792,803 152,095 45,417 129,216 116,458 30,887 474,073 46,567 13,065 146,459 18,195 698,359 $ Liabilities and Stockholders' Equity . $ 148,478 135,892 Current liabilities: Accounts payable Accrued expenses and other current liabilities Short-term operating lease liabilities Deferred revenue Total current liabilities Long-term taxes payable Long-term debt Long-term operating lease liabilities Other long-term liabilities Total liabilities 160,695 141,790 9,099 15,467 327,051 13,726 148,810 62,961 6,726 559,274 15,129 299,499 19,553 138,992 28,203 486,247 Commitments, contingencies and guarantees (Note 9) Stockholders' equity: Preferred stock. $0.0001 par value, 5,000 shares authorized; none issued Common stock and additional paid-in capital, $0.0001 par value, 500,000 Class A shares authorized, 117,922 and 105,170 shares issued and outstanding, respectively; 150,000 Class B shares authorized, 28,897 and 35,897 shares issued and outstanding, respectively Treasury stock, at cost, 10,710 and 10,710 shares, respectively Accumulated deficit Total stockholders' equity Total liabilities and stockholders' equity 930,875 (113,613) (583,733) 233,529 792,803 894,755 (113,613) (569,030) 212,112 698,359 S The accompanying notes are an integral part of these consolidated financial statements. 62 GoPro, Inc. Notes to Consolidated Financial Statements Accrued expenses and other current liabilities $ (in thousands) Accrued payables (1) Accrued sales incentives Employee related liabilities (1) Return liability Warranty liability Inventory received Customer deposits Purchase order commitments Income taxes payable Other Accrued expenses and other current liabilities December 31, 2019 42,153 39,120 20,494 14,854 9,899 5,737 2,063 1,710 1,166 4,594 141,790 December 31, 2018 34,696 40,918 19,775 13,100 9,604 5,061 3,105 2,015 1,948 5,670 135,892 $ (1) See Note 11 Restructuring charges for amounts associated with restructuring liabilities. Product warranty (in thousands) Beginning balance Charged to cost of revenue Settlement of warranty claims Warranty liability Year ended December 31, 2019 2018 10,971 S 10,373 $ 16,933 24,725 (16,506) (24,127) 11,398 $ 10,971 $ 2017 11,945 20,139 (21,711) 10,373 $ At December 31, 2019 and 2018, $9.9 million and $9.6 million of the warranty liability was recorded as a component of accrued expenses and other current liabilities, respectively, and $1.5 million and $1.4 million was recorded as a component of other long-term liabilities, respectively. 4. Financing Arrangements Credit Facility In March 2016, the Company entered into a Credit Agreement (Credit Agreement) with certain banks which provides for a secured revolving credit facility (Credit Facility) under which the Company may borrow up to an aggregate amount of $250.0 million. The Company and its lenders may increase the total commitments under the Credit Facility to up to an aggregate amount of $300.0 million, subject to certain conditions. The Credit Facility will terminate and any outstanding borrowings become due and payable in March 2021. The amount that may be borrowed under the Credit Facility is determined at periodic intervals and is based upon the Company's inventory and accounts receivable balances. Borrowed funds accrue interest based on an annual rate of (a) London Interbank Offered Rate (LIBOR) or (b) the administrative agent's base rate, plus an applicable margin of between 1.50% and 2.00% for LIBOR rate loans, and between 0.50% and 1.00% for base rate loans. The Company is required to pay a commitment fee on the unused portion of the Credit Facility of 0.25% or 0.375% per annum, based on the level of utilization of the Credit Facility. Amounts owed under the Credit Agreement and related credit documents are guaranteed by GoPro, Inc. and its material subsidiaries. GoPro, Inc. and its Netherlands subsidiary have also granted security interests in substantially all of their assets to collateralize this obligation. The Credit Agreement contains customary covenants, such as financial statement reporting requirements and limiting the ability of the Company and its subsidiaries to pay dividends or incur debt, create liens and encumbrances, make investments, and redeem or repurchase stock. The Company is required to maintain a 76 Question 7 According to the Accrued liabilities note, the company had $9,899 (in thousands) in accrued warranties that was unpaid at the most recent balance sheet date, O a. True Ob. False Question 6 GoPro owed is vendors and suppliers $160,695 (in thousands) for purchases made on credit at the most recent balance sheet date. O True O False