Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Jan. 02, 2021 | Jan. 29, 2021 | Dec. 28, 2019 | |
Document and Entity Information [Abstract] | |||
Title of 12(b) Security | Common Stock, $0.01 par value | ||
Trading Symbol | IRBT | ||
Security Exchange Name | NASDAQ | ||
Entity Address, State or Province | MA | ||
Entity Incorporation, State or Country Code | DE | ||
Document Transition Report | false | ||
Document Annual Report | true | ||
Common Stock, Shares, Outstanding | 28,183,668 | 28,352,390 | |
Entity Registrant Name | iROBOT CORPORATION | ||
Entity Central Index Key | 0001159167 | ||
Document Type | 10-K | ||
Entity File Number | 001-36414 | ||
Document Period End Date | Jan. 2, 2021 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | --01-02 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 2.3 | ||
Entity Common Stock, Shares Outstanding | 28,199,143 | ||
Entity Tax Identification Number | 77-0259335 | ||
Entity Address, Address Line One | 8 Crosby Drive | ||
Entity Address, City or Town | Bedford | ||
Entity Address, Postal Zip Code | 01730 | ||
City Area Code | 781 | ||
Local Phone Number | 430-3000 | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
ICFR Auditor Attestation Flag | true |
Cover
Cover | 12 Months Ended |
Jan. 02, 2021 | |
Cover [Abstract] | |
Documents Incorporated by Reference | The registrant intends to file a definitive Proxy Statement pursuant to Regulation 14A within 120 days of the end of the fiscal year ended January 2, 2021. Portions of such Proxy Statement are incorporated by reference into Part III of this Form 10-K. |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jan. 02, 2021 | Dec. 28, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 432,635 | $ 239,392 |
Short term investments | 51,081 | 17,032 |
Accounts receivable, net | 170,526 | 146,161 |
Inventory | 181,756 | 157,347 |
Other current assets | 45,223 | 34,285 |
Total current assets | 881,221 | 594,217 |
Property and equipment, net | 76,584 | 75,988 |
Operating lease right-of-use assets | 43,682 | 47,478 |
Deferred tax assets | 33,404 | 41,791 |
Goodwill | 125,872 | 118,732 |
Intangible assets, net | 9,902 | 12,352 |
Other assets | 19,063 | 30,195 |
Total assets | 1,189,728 | 920,753 |
Current liabilities: | ||
Accounts payable | 165,779 | 116,185 |
Accrued expenses | 131,388 | 81,768 |
Deferred revenue and customer advances | 10,400 | 4,549 |
Total current liabilities | 307,567 | 202,502 |
Operating lease liabilities | 50,485 | 54,928 |
Deferred tax liabilities | 705 | 912 |
Other long-term liabilities | 26,537 | 10,342 |
Total long-term liabilities | 77,727 | 66,182 |
Total liabilities | 385,294 | 268,684 |
Commitments and contingencies (Note 13) | ||
Preferred stock, 5,000 shares authorized and none outstanding | 0 | 0 |
Common stock, $0.01 par value; 100,000 shares authorized; 28,184 and 28,352 shares issued and outstanding, respectively | 282 | 284 |
Additional paid-in capital | 205,256 | 196,455 |
Retained earnings | 599,389 | 452,321 |
Accumulated other comprehensive (loss) income | (493) | 3,009 |
Total stockholders’ equity | 804,434 | 652,069 |
Total liabilities and stockholders’ equity | $ 1,189,728 | $ 920,753 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Jan. 02, 2021 | Dec. 28, 2019 |
Statement of Financial Position [Abstract] | ||
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 28,183,668 | 28,352,390 |
Common stock, shares outstanding | 28,183,668 | 28,352,390 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | |
Revenue | $ 1,430,390 | $ 1,214,010 | $ 1,092,584 |
Cost of product revenue | 758,241 | 658,362 | 518,612 |
Amortization of acquired intangible assets | 1,920 | 11,721 | 18,544 |
Total cost of revenue | 760,161 | 670,083 | 537,156 |
Gross profit | 670,229 | 543,927 | 555,428 |
Operating expenses: | |||
Research and development | 156,670 | 141,607 | 140,629 |
Selling and marketing | 265,475 | 231,548 | 210,411 |
General and administrative | 100,770 | 83,103 | 97,501 |
Amortization of acquired intangible assets | 992 | 1,051 | 1,065 |
Total operating expenses | 523,907 | 457,309 | 449,606 |
Operating income | 146,322 | 86,618 | 105,822 |
Other income, net | 41,593 | 12,215 | 2,800 |
Income before income taxes | 187,915 | 98,833 | 108,622 |
Income tax expense | 40,847 | 13,533 | 20,630 |
Net income | $ 147,068 | $ 85,300 | $ 87,992 |
Net income per share: | |||
Basic | $ 5.23 | $ 3.04 | $ 3.18 |
Diluted | $ 5.14 | $ 2.97 | $ 3.07 |
Number of shares used in per share calculations: | |||
Basic | 28,101 | 28,097 | 27,692 |
Diluted | 28,618 | 28,735 | 28,640 |
Consolidated Statement of Compr
Consolidated Statement of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 147,068 | $ 85,300 | $ 87,992 |
Other comprehensive income: | |||
Net foreign currency translation adjustments | 14,045 | (3,435) | (5,896) |
Net unrealized (losses) gains on cash flow hedges, net of tax | (13,932) | 12,363 | (327) |
Net gains on cash flow hedge reclassified into earnings, net of tax | (3,587) | (1,418) | (499) |
Net unrealized (losses) gains on marketable securities, net of tax | (28) | 247 | (18) |
Total comprehensive income | $ 143,566 | $ 93,057 | $ 81,252 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment | Common Stock | Additional Paid-in Capital | Retained Earnings (Accumulated Deficit) | Retained Earnings (Accumulated Deficit)Cumulative Effect, Period of Adoption, Adjustment | Accumulated Other Comprehensive Income (Loss) |
Beginning balance, shares at Dec. 30, 2017 | 27,945,000 | ||||||
Beginning balance at Dec. 30, 2017 | $ 470,327 | $ 1,040 | $ 279 | $ 190,067 | $ 277,989 | $ 1,040 | $ 1,992 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Issuance of common stock under employee stock plans | 239,830 | 285,000 | |||||
Issuance of common stock under employee stock plans | $ 10,366 | $ 3 | 10,363 | ||||
Vesting of restricted stock units | 408,000 | ||||||
Vesting of restricted stock units | 0 | $ 4 | (4) | ||||
Stock-based compensation | 25,804 | 25,804 | |||||
Stock withheld to cover tax withholdings requirements upon restricted stock vesting | (51,000) | ||||||
Stock withheld to cover tax withholdings requirements upon restricted stock vesting | (3,532) | $ 0 | (3,532) | ||||
Other comprehensive loss | (6,740) | (6,740) | |||||
Directors' deferred compensation | $ 65 | 65 | |||||
Stock repurchases | (799,000) | ||||||
Stock repurchases | $ (50,000) | $ (8) | (49,992) | ||||
Net income (loss) | 87,992 | 87,992 | |||||
Ending balance, shares at Dec. 29, 2018 | 27,788,000 | ||||||
Ending balance at Dec. 29, 2018 | $ 535,322 | $ 278 | 172,771 | 367,021 | (4,748) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Issuance of common stock under employee stock plans | 127,024 | 187,000 | |||||
Issuance of common stock under employee stock plans | $ 7,147 | $ 2 | 7,145 | ||||
Vesting of restricted stock units | 436,000 | ||||||
Vesting of restricted stock units | 0 | $ 5 | (5) | ||||
Stock-based compensation | 23,744 | 23,744 | |||||
Stock withheld to cover tax withholdings requirements upon restricted stock vesting | (59,000) | ||||||
Stock withheld to cover tax withholdings requirements upon restricted stock vesting | (7,277) | $ (1) | (7,276) | ||||
Other comprehensive loss | 7,757 | 7,757 | |||||
Directors' deferred compensation | 76 | 76 | |||||
Net income (loss) | $ 85,300 | 85,300 | |||||
Ending balance, shares at Dec. 28, 2019 | 28,352,390 | 28,352,000 | |||||
Ending balance at Dec. 28, 2019 | $ 652,069 | $ 284 | 196,455 | 452,321 | 3,009 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Issuance of common stock under employee stock plans | 88,292 | 151,000 | |||||
Issuance of common stock under employee stock plans | $ 5,584 | $ 1 | 5,583 | ||||
Vesting of restricted stock units | 391,000 | ||||||
Vesting of restricted stock units | 0 | $ 4 | (4) | ||||
Stock-based compensation | 29,975 | 29,975 | |||||
Stock withheld to cover tax withholdings requirements upon restricted stock vesting | 46,000 | ||||||
Stock withheld to cover tax withholdings requirements upon restricted stock vesting | 1,845 | $ 0 | 1,845 | ||||
Other comprehensive loss | (3,502) | (3,502) | |||||
Directors' deferred compensation | 85 | 85 | |||||
Stock repurchases | (664,000) | ||||||
Stock repurchases | (25,000) | $ (7) | (24,993) | ||||
Net income (loss) | $ 147,068 | 147,068 | |||||
Ending balance, shares at Jan. 02, 2021 | 28,183,668 | 28,184,000 | |||||
Ending balance at Jan. 02, 2021 | $ 804,434 | $ 282 | $ 205,256 | $ 599,389 | $ (493) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | |
Cash flows from operating activities: | |||
Net income | $ 147,068 | $ 85,300 | $ 87,992 |
Adjustments to reconcile net income to net cash provided by operating activities, net of the effects of acquisition: | |||
Depreciation and amortization | 34,762 | 37,159 | 36,574 |
Gain on equity investment | (43,817) | (8,439) | 0 |
Stock-based compensation | 29,975 | 23,744 | 25,804 |
Deferred income taxes, net | 13,837 | (11,118) | (10,848) |
Other | 6,467 | 7,267 | 1,837 |
Changes in operating assets and liabilities — (use) source | |||
Accounts receivable | (21,893) | 13,064 | (23,920) |
Inventory | (24,535) | 7,307 | (58,546) |
Other assets | (15,804) | (3,310) | (8,533) |
Accounts payable | 48,699 | (20,536) | 22,470 |
Accrued expenses and other liabilities | 57,289 | (386) | (1,145) |
Net cash provided by operating activities | 232,048 | 130,052 | 71,685 |
Cash flows from investing activities: | |||
Additions of property and equipment | (31,599) | (35,337) | (32,422) |
Change in other assets | (4,150) | (5,436) | (2,363) |
Proceeds from sale of equity investments | 0 | 9,787 | 856 |
Cash paid for business acquisition, net of cash acquired | 0 | (2,817) | 0 |
Purchases of investments | 0 | 0 | (6,438) |
Sales and maturities of investments | 13,500 | 12,880 | 14,000 |
Net cash used in investing activities | (22,249) | (20,923) | (26,367) |
Cash flows from financing activities: | |||
Proceeds from employee stock plans | 5,584 | 7,147 | 10,366 |
Income tax withholding payment associated with restricted stock vesting | (1,845) | (7,277) | (3,532) |
Stock repurchases | (25,000) | 0 | (50,000) |
Net cash used in financing activities | (21,261) | (130) | (43,166) |
Effect of exchange rate changes on cash and cash equivalents | 4,705 | 20 | (414) |
Net increase in cash and cash equivalents | 193,243 | 109,019 | 1,738 |
Cash and cash equivalents, at beginning of period | 239,392 | 130,373 | 128,635 |
Cash and cash equivalents, at end of period | 432,635 | 239,392 | 130,373 |
Supplemental disclosure of cash flow information | |||
Cash paid for income taxes | $ 19,929 | $ 22,582 | $ 39,517 |
Nature of the Business
Nature of the Business | 12 Months Ended |
Jan. 02, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of the Business | 1. Nature of the Business |
Revenue Recognition (Notes)
Revenue Recognition (Notes) | 12 Months Ended |
Jan. 02, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer | 3. Revenue Recognition The Company primarily derives its revenue from the sale of consumer robots and accessories. The Company sells products directly to consumers through online stores and indirectly through resellers and distributors. Revenue is recognized upon transfer of control of promised products or services to customers, generally as title and risk of loss pass, in an amount that reflects the consideration the Company expects to receive in exchange for those products or services. Revenue is recognized only to the extent that it is probable that a significant reversal of revenue will not occur and when collection is considered probable. Taxes collected from customers, which are subsequently remitted to governmental authorities, are excluded from revenue. Shipping and handling expenses are considered fulfillment activities and are expensed as incurred. The Company's consumer robots are highly dependent on, and interrelated with, the embedded software and cannot function without the software. As such, the consumer robots are accounted for as a single performance obligation, and the revenue is recognized at a point in time when the control is transferred to distributors, resellers or directly to end customers through online stores. For certain consumer robots with Wi-Fi capability ("connected robots"), each sale represents an arrangement with multiple promises consisting of the robot, downloadable free app, cloud services and potential future unspecified software upgrades. The Company has determined that the app, cloud services and potential future unspecified software upgrades represent one promised service to the customer to enhance the functionality and interaction with the robot (referred to collectively as "Cloud Services"). For contracts that contain multiple performance obligations, the transaction price is allocated to each performance obligation based on a relative standalone selling price ("SSP"). The Company estimates SSP for items that are not sold separately, using market data if available or analysis of the cost of providing the products or services plus a reasonable margin. The transaction price allocated to the robots is recognized as revenue at a point in time when control is transferred and when collection is considered probable. The transaction price allocated to the Cloud Services is deferred and recognized on a straight-line basis over the estimated term of the Cloud Services. For contracts with a duration of greater than one year, the transaction price allocated to performance obligations that are unsatisfied as of January 2, 2021 and December 28, 2019 was $11.5 million and $4.0 million, respectively . The Company does not disclose the value of unsatisfied performance obligations for contracts with an original expected duration of one year or less. The Company’s products generally carry a one-year or two-year limited warranty that promises customers that delivered products are as specified. The Company does not consider these assurance-type warranties as a separate performance obligation and therefore, the Company accounts for such warranties under ASC 460, "Guarantees." During the fourth quarter of 2020, the Company began offering its customers the option to purchase an extended warranty for a fee. Amounts paid for the extended warranty plans are deferred and recognized as revenue on a straight-line basis over the service period. The Company provides limited rights of returns for direct-to-consumer sales generated through its on-line stores and certain resellers and distributors. The Company records an allowance for product returns based on specific terms and conditions included in the customer agreements or based on historical experience and the Company's expectation of future returns. In addition, the Company may provide other credits or incentives which are accounted for as variable consideration when estimating the amount of revenue to recognize. Where appropriate, these estimates take into consideration relevant factors such as the Company’s historical experience, current contractual requirements, specific known market events and forecasted inventory level in the channels. Overall, these reserves reflect the Company’s best estimates, and the actual amounts of consideration ultimately received may differ from the Company’s estimates. Returns and credits are estimated at the time of sale and updated at the end of each reporting period as additional information becomes available. As of January 2, 2021, the Company has reserves for product returns of $64.3 million and other credits and incentives of $142.2 million. As of December 28, 2019, the Company had reserves for product returns of $55.2 million and other credits and incentives of $134.0 million. Revenue recognized during the years ended January 2, 2021 and December 28, 2019 related to performance obligations satisfied in a prior period was not material. Disaggregation of Revenue The following table provides information about disaggregated revenue by geographical region (in thousands): January 2, 2021 December 28, 2019 December 29, 2018 United States $ 744,648 $ 603,618 $ 560,995 EMEA 386,007 357,760 311,659 Japan 193,304 160,875 132,813 Other 106,431 91,757 87,117 Total revenue $ 1,430,390 $ 1,214,010 $ 1,092,584 Contract Balances The following table provides information about receivables and contract liabilities from contracts with customers (in thousands): January 2, 2021 December 28, 2019 Accounts receivable, net $ 170,526 $ 146,161 Contract liabilities 17,700 6,991 The Company invoices customers based upon contractual billing schedules, and accounts receivable are recorded when the right to consideration becomes unconditional. Contract liabilities include deferred revenue associated with the Cloud Services and extended warranty plans as well as prepayments received from customers in advance of product shipments. The change in the opening and closing balances of the Company’s contract assets and contract liabilities primarily results from the timing difference between the Company’s performance and the customer’s payment. During the years ended January 2, 2021 and December 28, 2019, the Company recogni zed $5.5 million |
Leases (Notes)
Leases (Notes) | 12 Months Ended |
Jan. 02, 2021 | |
Leases [Abstract] | |
Lessee, Operating Leases [Text Block] | 4. Leases The Company's leasing arrangements primarily consist of operating leases for its facilities which include corporate, sales and marketing and research and development offices and equipment under various non-cancelable lease arrangements. For leases with terms greater than 12 months, the Company records the related right-of-use asset and lease obligation at the present value of lease payments over the term. Leases with an initial term of 12 months or less are not recorded on the balance sheet. Lease expense is recognized on a straight-line basis over the lease term. The Company's leases typically include rental escalation clauses, renewal options and/or termination options that are factored into the determination of lease payments when appropriate. The Company does not separate lease and nonlease components of contracts and excludes all variable lease payments from the measurement of right-of-use assets and lease liabilities. The Company's variable lease payments generally include usage based nonlease components. The Company's lease agreements do not contain any residual value guarantees or restrictive covenants. The Company's existing leases do not provide a readily determinable implicit rate. Therefore, the Company estimates its incremental borrowing rate to discount the lease payments based on information available at December 30, 2018 (date of initial application) or the lease commencement date for new leases post adoption. At January 2, 2021, the Company's weighted average discount rate was 3.56% , while the weighted average remaining lease term was 8.30 years . The components of lease expense were as follows (in thousands): January 2, 2021 December 28, 2019 Operating lease cost $ 9,363 $ 8,777 Variable lease cost 3,583 4,096 Total lease cost $ 12,946 $ 12,873 Supplemental cash flow information related to leases was as follows (in thousands): January 2, 2021 December 28, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 9,862 $ 9,540 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 2,310 $ 53,227 Maturities of operating lease liabilities were as follows as of January 2, 2021 (in thousands): 2021 $ 8,226 2022 8,633 2023 7,647 2024 6,590 2025 6,612 Thereafter 28,539 Total minimum lease payments $ 66,247 Less: imputed interest 9,447 Present value of future minimum lease payments $ 56,800 Less: current portion of operating lease liabilities (Note 7) 6,315 Long-term lease liabilities $ 50,485 Financial Statement Impact of Adopting ASC 842 The Company adopted ASC 842 effective December 30, 2018 using the alternative transition method. Under this alternative transition method, a company is permitted to use its effective date as the date of initial application without restating comparative period financial statements. The Company elected the package of practical expedients permitted under the transition guidance, which allowed the Company to carryforward its historical assessments of (1) whether contracts are or contain leases, (2) lease classification and (3) initial direct costs. In addition, the Company elected the practical expedient to use hindsight in determining lease term. The adoption of the new standard resulted in the recognition of right-of-use assets and lease liabilities of approximately $52.8 million and $67.3 million, respectively. The standard did not materially impact the Company's consolidated income or cash flows. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Jan. 02, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | 5. Property and Equipment Property and equipment consists of the following (in thousands): January 2, December 28, Computer and equipment $ 13,617 $ 13,588 Furniture and fixtures 8,394 6,494 Machinery and tooling 80,715 79,213 Leasehold improvements 36,459 39,538 Business applications software 19,185 17,933 Other 1,642 — Subtotal 160,012 156,766 Less: accumulated depreciation 83,428 80,778 Property and equipment, net $ 76,584 $ 75,988 As of January 2, 2021 and December 28, 2019, the net book value of capitalized internal-use software costs was $6.5 million and $6.8 million, respectively, which are included within business applications software. Depreciation expense for the years ended January 2, 2021, December 28, 2019 and December 29, 2018 was $31.9 million, $24.4 million, and $17.0 million, respectively, which included amortization expense of $2.1 million, $1.5 million and $1.2 million, respectively, for capitalized internal-use software. |
Goodwill and other intangible a
Goodwill and other intangible assets | 12 Months Ended |
Jan. 02, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and other intangible assets | 6. Goodwill and other intangible assets The following table summarizes the activity in the carrying amount of goodwill and intangible assets for fiscal years 2020 and 2019 (in thousands): Balance as of December 29, 2018 $ 118,896 Acquisition 2,050 Effect of foreign currency translation (2,214) Balance as of December 28, 2019 118,732 Effect of foreign currency translation 7,140 Balance as of January 2, 2021 $ 125,872 Intangible assets consisted of the following (in thousands): January 2, 2021 December 28, 2019 Cost Accumulated Net Cost Accumulated Net Completed technology $ 28,100 $ 26,525 $ 1,575 $ 28,100 $ 24,605 $ 3,495 Tradename 100 100 — 100 100 — Customer relationships 11,728 3,401 8,327 11,095 2,302 8,793 Reacquired distribution rights 34,318 34,318 — 31,680 31,680 — Non-competition agreements 280 280 — 256 192 64 Total $ 74,526 $ 64,624 $ 9,902 $ 71,231 $ 58,879 $ 12,352 Amortization expense related to acquired intangible assets was $2.9 million, $12.8 million and $19.6 million for the fiscal years ended January 2, 2021, December 28, 2019 and December 29, 2018, respectively. The estimated future amortization expense related to current intangible assets in each of the five succeeding fiscal years is expected to be as follows (in thousands): Cost of Revenue Operating Expenses Total 2021 $ 900 $ 823 $ 1,723 2022 675 823 1,498 2023 — 823 823 2024 — 823 823 2025 — 823 823 Thereafter — 4,212 4,212 Total $ 1,575 $ 8,327 $ 9,902 |
Accrued Expenses
Accrued Expenses | 12 Months Ended |
Jan. 02, 2021 | |
Accrued Liabilities, Current [Abstract] | |
Accrued Expenses | 7. Accrued Expenses Accrued expenses consist of the following (in thousands): January 2, December 28, Accrued bonus $ 31,523 $ 12,541 Accrued warranty 24,392 13,856 Accrued manufacturing and logistics cost 20,093 14,383 Accrued compensation and benefits 17,635 13,331 Accrued sales and other indirect taxes payable 15,480 12,440 Current portion of operating lease liabilities 6,315 6,843 Accrued income taxes 3,806 3,378 Accrued other 12,144 4,996 $ 131,388 $ 81,768 |
Working Capital Facilities
Working Capital Facilities | 12 Months Ended |
Jan. 02, 2021 | |
Debt Disclosure [Abstract] | |
Revolving Line of Credit | 8. Working Capital Facility Credit Facility In June 2018, the Company entered into a new agreement with Bank of America, N.A., increasing the amount of the unsecured revolving line of credit from $75.0 million to $150.0 million and extending the term of the credit facility to June 2023. As of January 2, 2021, the Company had no outstanding borrowings under the revolving credit facility. The revolving line of credit is available to fund working capital and other corporate purposes. The interest on loans under the credit facility accrues, at the Company's election, at either (1) LIBOR plus a margin, currently equal to 1.0%, based on the Company's ratio of indebtedness to Adjusted EBITDA (the "Eurodollar Rate"), or (2) the lender’s base rate. The lender’s base rate is equal to the highest of (1) the federal funds rate plus 0.5%, (2) the lender’s prime rate and (3) the Eurodollar Rate plus 1.0%. In the event that LIBOR is discontinued as expected in 2021, the Company expects the interest rates for its debt following such event will be based on either alternate base rates or agreed upon replacement rates. While the Company does not expect a LIBOR discontinuation would affect its ability to borrow or maintain already outstanding borrowings, it could result in higher interest rates. The credit facility contains customary terms and conditions for credit facilities of this type, including restrictions on the Company's ability to incur or guarantee additional indebtedness, create liens, enter into transactions with affiliates, make loans or investments, sell assets, pay dividends or make distributions on, or repurchase, its stock, and consolidate or merge with other entities. In addition, the Company is required to meet certain financial covenants customary with this type of agreement, including maintaining a maximum ratio of indebtedness to Adjusted EBITDA and a minimum specified interest coverage ratio. The credit facility contains customary events of default, including for payment defaults, breaches of representations, breaches of affirmative or negative covenants, cross defaults to other material indebtedness, bankruptcy and failure to discharge certain judgments. If a default occurs and is not cured within any applicable cure period or is not waived, the Company's obligations under the credit facility may be accelerated. As of January 2, 2021, the Company was in compliance with all covenants under the revolving credit facility. Lines of Credit The Company has an unsecured letter of credit facility with Bank of America, N.A., available to fund letters of credit up to an aggregate outstanding amount of $5.0 million. As of January 2, 2021, the Company had letters of credit outstanding of $0.7 million under the letter of credit facility and other lines of credit with Bank of America, N.A. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Jan. 02, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 10. Fair Value Measurements The Company’s financial assets and liabilities measured at fair value on a recurring basis were as follows (in thousands): Fair Value Measurements as of January 2, 2021 Level 1 Level 2 (1) Level 3 Assets: Money market funds $ 47,529 $ — $ — Marketable equity securities, $46,578 at cost (2) 47,576 — — Corporate bonds, $3,498 at cost (3) — 3,505 — Derivative instruments (Note 9) — 5,206 — Total assets measured at fair value $ 95,105 $ 8,711 $ — Liabilities: Derivative instruments (Note 9) $ — $ 12,822 $ — Total liabilities measured at fair value $ — $ 12,822 $ — The Company’s financial assets and liabilities measured at fair value on a recurring basis were as follows (in thousands): Fair Value Measurements as of December 28, 2019 Level 1 Level 2 (1) Level 3 Assets: Corporate and government bonds, $17,016 at cost $ — $ 17,032 $ — Derivative instruments (Note 9) — 15,314 — Total assets measured at fair value $ — $ 32,346 $ — Liabilities: Derivative instruments (Note 9) $ — $ 758 $ — Total liabilities measured at fair value $ — $ 758 $ — (1) Level 2 fair value estimates are 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 for substantially the full term of the assets or liabilities. (2) The related unrealized gain recorded in Other income, net was $1.0 million for the fiscal year ended January 2, 2021. Marketable equity securities are included in short term investments on the consolidated balance sheet. (3) As of January 2, 2021, the Company’s investment had a maturity date of March 2021. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Jan. 02, 2021 | |
Equity [Abstract] | |
Stockholders' Equity | 11. Stockholders' Equity Preferred Stock The Company has authorized 5,000,000 shares of undesignated preferred stock with a par value of $0.01 per share. None of the preferred shares were issued and outstanding at January 2, 2021 and December 28, 2019. Common Stock Common stockholders are entitled to one vote for each share held and to receive dividends if and when declared by the Company's board of directors and subject to and qualified by the rights of holders of the preferred stock. Upon dissolution or liquidation of the Company, holders of common stock will be entitled to receive all available assets subject to any preferential rights of any then outstanding preferred stock. Share Repurchase Activity The Company's Board of Directors approved a stock repurchase program authorizing up to $200.0 million in share repurchases from time to time until September 2021. On March 10, 2020, the Company entered into a Rule 10b5-1 plan to repurchase $25.0 million of common stock in the aggregate beginning March 13, 2020 and ending April 30, 2020. The Company repurchased 663,602 shares of its common stock at an average price of $37.65, totaling $25.0 million in March 2020. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Jan. 02, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 13. Commitments and Contingencies Legal Proceedings From time to time and in the ordinary course of business, the Company is subject to various claims, charges and litigation. The outcome of litigation cannot be predicted with certainty and some lawsuits, claims or proceedings may be disposed of unfavorably to us, which could materially affect our financial condition or results of operations. For the following litigation matters, a liability is not probable or the amount cannot be reasonably estimated and therefore accruals have not been made. On October 24, 2019, purported Company shareholder Miramar Firefighters’ Pension Fund filed a putative class action in the U.S. District Court for the Southern District of New York against the Company and certain of its directors and officers, captioned Miramar Firefighters’ Pension Fund v. iRobot Corporation, et al., No. 1:19-cv-09837. The case has been transferred to the U.S. District Court for the District of Massachusetts. A similar case captioned Campbell v. iRobot Corporation, et al., No. 1:19-cv-12483 was also filed in the U.S. District Court for the Southern District of New York and subsequently transferred to the U.S. District Court for the District of Massachusetts. On January 24, 2020, the Court consolidated the Miramar and Campbell cases (the consolidated cases together, the "Securities Class Action") and appointed a lead plaintiff and lead plaintiff's Counsel. On April 3, 2020, the plaintiff filed an amended complaint alleging violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder based on allegedly false and misleading statements and omissions concerning the impact of competition and Section 301 tariffs on the Company’s financial performance, and the Company has filed a motion to dismiss the case. A hearing was held on the Company’s motion to dismiss on September 17, 2020, and the Company is currently awaiting a ruling on its motion to dismiss. On December 20, 2019, purported Company shareholders David Katz and Thomas Wightman, derivatively on behalf of iRobot Corporation, filed a complaint in the U.S. District Court for Southern District of New York against the Company and certain of its directors and officers, captioned David Katz and Thomas Wightman, on behalf of iRobot Corporation v. iRobot Corporation, et al., No. 1:19-cv-11692. The complaint alleges breaches of fiduciary duties, unjust enrichment, violations of Sections 10(b) and 20(a) of the Exchange Act and Rule 10b-5 thereunder based on allegedly false and misleading statements and omissions concerning the Company's acquisitions of Sales on Demand Corporation and Robopolis SAS and the Company's subsequent financial performance. The complaint seeks, among other things, unspecified compensatory damages, including interest, in connection with the Company's allegedly inflated stock price, attorneys' fees and costs, and unspecified equitable/injunctive relief. This case has been transferred to the U.S. District Court for the District of Massachusetts. Similarly, additional derivative litigations -- namely: Robert Truman, on behalf of iRobot Corporation v. iRobot Corporation, et al., No. 1:20-cv-10034; Alexa Ruhfass, on behalf of iRobot Corporation v. iRobot Corporation, et al., No. 1:20-cv-10133; and William Tasco, derivatively on behalf of iRobot Corporation v. iRobot Corporation, et al., No. 1:20-cv-10253 - were filed in the U.S. District Court for the District of Massachusetts. All of these cases have been consolidated in a case captioned as In re iRobot Corporation Derivative litigation, No. 1:20-cv-10034, and have been stayed pending a ruling on the motion to dismiss in the Securities Class Action. Outstanding Purchase Orders At January 2, 2021, we had outstanding purchase orders aggregating approximately $341.9 million. The purchase orders, the majority of which are with our contract manufacturers for the purchase of inventory in the normal course of business, are for manufacturing and non-manufacturing related goods and services, and are generally cancellable without penalty. In circumstances where we determine that we have financial exposure associated with any of these commitments, we record a liability in the period in which that exposure is identified. Guarantees and Indemnification Obligations The Company enters into standard indemnification agreements in the ordinary course of business. Pursuant to these agreements, the Company indemnifies and agrees to reimburse the indemnified party for losses incurred by the indemnified party, generally the Company’s customers, in connection with any patent, copyright, trade secret or other proprietary right infringement claim by any third party. The term of these indemnification agreements is generally perpetual any time after execution of the agreement. The maximum potential amount of future payments the Company could be required to make under these indemnification agreements is unlimited. The Company has never incurred costs to defend lawsuits or settle claims related to these indemnification agreements. As a result, the Company believes the estimated fair value of these agreements is minimal. Accordingly, the Company has no liabilities recorded for these agreements as of January 2, 2021 and December 28, 2019, respectively. Warranty The Company provides warranties on most products and has established a reserve for warranty obligations based on estimated warranty costs. The reserve is included as part of accrued expenses (Note 7) in the accompanying consolidated balance sheets. Activity related to the warranty accrual was as follows (in thousands): Fiscal Year Ended January 2, December 28, December 29, Balance at beginning of period $ 13,856 $ 11,964 $ 11,264 Provision 28,884 14,091 10,798 Warranty usage (18,348) (12,199) (10,098) Balance at end of period $ 24,392 $ 13,856 $ 11,964 |
Employee Benefits (Notes)
Employee Benefits (Notes) | 12 Months Ended |
Jan. 02, 2021 | |
Retirement Benefits [Abstract] | |
Employee Benefits | 14. Employee Benefits The Company sponsors a retirement plan under Section 401(k) of the Internal Revenue Code (the "Retirement Plan"). Eligible US employees may make tax-deferred contributions, and the Company, at its sole discretion, and subject to the limits prescribed by the IRS, may make either a nonelective contribution on behalf of all eligible employees or a matching contribution on behalf of all plan participants. The Company elected to make a matching contribution of approximately $3.0 million, $2.9 million and $2.8 million for the plan years ended January 2, 2021, December 28, 2019 and December 29, 2018, respectively. The employer contribution represents a matching contribution at a rate of 50% of each employee’s first six percent contribution. Accordingly, each employee participating is entitled up to a maximum of three percent of his or her eligible annual payroll. |
Income Taxes
Income Taxes | 12 Months Ended |
Jan. 02, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 15. Income Taxes Income (loss) before provision for income taxes was as follows (in thousands): Fiscal Year Ended January 2, December 28, December 29, Domestic $ 166,973 $ 84,225 $ 113,078 Foreign 20,942 14,608 (4,456) Income before income taxes $ 187,915 $ 98,833 $ 108,622 The components of income tax expense were as follows (in thousands): Fiscal Year Ended January 2, December 28, December 29, Current Federal $ 13,593 $ 13,366 $ 17,627 State 2,724 5,004 3,676 Foreign 10,451 6,941 10,732 Total current income tax provision $ 26,768 $ 25,311 $ 32,035 Deferred Federal $ 14,695 $ (9,345) $ (2,475) State 2,552 (1,783) (1,149) Foreign (3,168) (650) (7,781) Total deferred income tax provision 14,079 (11,778) (11,405) Total income tax provision $ 40,847 $ 13,533 $ 20,630 On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act ("CARES Act") was enacted in response to the COVID-19 pandemic. The CARES Act contains several income and payroll tax provisions, such as the deduction and deferral of employer portion of certain payroll taxes, repeal of the 80% limitation with respect to net operating losses arising in taxable years 2018, 2019, and 2020, and additional depreciation deductions related to qualified improvement property. The Company has concluded that the current provisions of the CARES Act, enacted to date, did not have a material impact on the Company's financial results during fiscal 2020. The reconciliation of statutory federal income tax to actual tax expense is as follows (in thousands): Fiscal Year Ended January 2, December 28, December 29, Statutory federal income tax $ 39,462 $ 20,755 $ 22,812 State taxes (net of federal benefit) 4,834 3,999 4,312 Federal and state credits (6,702) (8,152) (5,638) Excess tax expense (benefits) relating to stock-based compensation 313 (6,468) (6,529) Tax Cuts and Jobs Act of 2017 — — 2,127 Foreign-derived intangible income deduction (3,360) (4,180) (2,678) EMEA business restructuring — — 2,292 Executive compensation 718 2,081 745 Tax impact of foreign earnings 1,458 1,986 1,336 Change in valuation allowance 3,817 2,678 348 Other 307 834 1,503 $ 40,847 $ 13,533 $ 20,630 The components of net deferred tax assets were as follows (in thousands): January 2, December 28, Deferred tax assets Revenue reserves $ 20,564 $ 21,355 Accruals and other liabilities 14,357 8,225 Operating lease liabilities 12,429 14,117 Tax credits and net operating loss carryforwards 12,748 8,814 Stock-based compensation 4,868 4,981 Other 3,793 5,068 Gross deferred tax assets 68,759 62,560 Valuation allowance (7,643) (3,826) Total deferred tax assets 61,116 58,734 Deferred tax liabilities Intangible assets 3,341 3,838 Operating lease right-of-use assets 11,443 13,249 Marketable equity securities 10,676 — Other 2,957 768 Total deferred tax liabilities 28,417 17,855 Net deferred tax assets $ 32,699 $ 40,879 The Company intends to continue to invest all of its unremitted foreign earnings, as well as the capital in its foreign subsidiaries, indefinitely outside of the U.S. At January 2, 2021, the Company has unremitted foreign earnings and any unrecognized deferred tax liability on these unremitted earnings would be immaterial. The Company has federal net operating loss carryforwards of $1.7 million as of January 2, 2021. The Company has foreign net operating loss carryforwards of $3.5 million as of January 2, 2021 that have no expiration period. The Company has state research and development credit carryforwards of $16.3 million and $13.1 million as of January 2, 2021 and December 28, 2019, respectively, which expire from 2028 to 2036. Under the Internal Revenue Code and state law, certain substantial changes in the Company’s ownership could result in an annual limitation on the amount of these tax carryforwards which can be utilized in future years. As of January 2, 2021, December 28, 2019 and December 29, 2018, the Company had a valuation allowance of $7.6 million, $3.8 million and $1.1 million, respectively, for state research and development credit carryforwards and certain foreign deferred tax assets for which the Company believes do not meet the "more likely than not" criteria for recognition. A summary of the Company’s adjustments to its gross unrecognized tax benefits in the current year is as follows (in thousands): Fiscal Year Ended January 2, 2021 December 28, December 29, Balance at beginning of period $ 7,121 $ 7,119 $ 4,590 Increase for tax positions related to the current year 765 770 2,891 Increase for tax positions related to acquisition — — 1,493 Increase (decrease) for tax positions related to prior years 1,231 (768) 407 Decrease for settlements with applicable taxing authorities — — (2,262) Decrease for lapses of statute of limitations (558) — — Balance at end of period $ 8,559 $ 7,121 $ 7,119 The Company accrues interest and, if applicable, penalties for any uncertain tax positions as a component of income tax expense. As of January 2, 2021, December 28, 2019 and December 29, 2018 there were no material accrued interest or penalties. The Company does not expect a significant change in the amount of unrecognized tax benefits within the next 12 months. If all of the Company's unrecognized tax benefits as of January 2, 2021 were to become recognizable in the future, it would record a $9.5 million benefit, inclusive of interest, to the income tax provision. |
Industry Segment, Geographic In
Industry Segment, Geographic Information and Significant Customers | 12 Months Ended |
Jan. 02, 2021 | |
Segment Reporting [Abstract] | |
Industry Segment, Geographic Information and Significant Customers | The Company operates as one operating segment. The Company's consumer robots are offered to consumers through a variety of distribution channels, including chain stores and other national retailers, through the Company's own website and app, dedicated e-commerce websites, the online arms of traditional retailers, and through value-added distributors and resellers worldwide. Geographic Information For the fiscal years ended January 2, 2021, December 28, 2019 and December 29, 2018, sales to non-U.S. customers accounted for 47.9%, 50.3% and 48.7% of total revenue, respectively. The following table provides information about revenue by geographical region (in thousands): January 2, 2021 December 28, 2019 December 29, 2018 Domestic $ 744,648 $ 603,618 $ 560,995 International 685,742 610,392 531,589 Total $ 1,430,390 $ 1,214,010 $ 1,092,584 Significant Customers |
Quarterly Information (Unaudite
Quarterly Information (Unaudited) | 12 Months Ended |
Jan. 02, 2021 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Information (Unaudited) | 17. Quarterly Information (Unaudited) The following information has been derived from unaudited consolidated financial statements that, in the opinion of management, include all recurring adjustments necessary for a fair statement of such information (in thousands, except per share amounts): Fiscal Quarter Ended January 2, September 26, June 27, March 28, December 28, September 28, June 29, March 30, Revenue $ 544,827 $ 413,145 $ 279,883 $ 192,535 $ 426,778 $ 289,399 $ 260,172 $ 237,661 Gross profit 215,421 198,841 178,012 77,955 169,370 136,841 118,170 119,546 Net income (loss) 13,335 93,252 58,616 (18,135) 20,041 35,532 7,207 22,520 Diluted income (loss) per share $ 0.46 $ 3.27 $ 2.07 $ (0.64) $ 0.70 $ 1.24 $ 0.25 $ 0.78 |
Summary of Significant Accounti
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Jan. 02, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation and Foreign Currency Translation The accompanying consolidated financial statements include those of iRobot and its subsidiaries, after elimination of all intercompany balances and transactions. iRobot has prepared the accompanying consolidated financial statements in conformity with accounting principles generally accepted in the United States of America ("GAAP"). For the Company's subsidiaries that transact in a functional currency other than the U.S. dollar, assets and liabilities are translated into U.S. dollars at period-end foreign exchange rates. Revenues and expenses are translated into U.S. dollars at the average foreign exchange rates for the period. Translation adjustments are excluded from the determination of net income and are recorded in accumulated other comprehensive income (loss), a separate component of stockholders' equity. |
Fiscal Year-End | The Company operates and reports using a 52-53 week fiscal year ending on the Saturday closest to December 31. Accordingly, the Company’s fiscal quarters end on the Saturday that falls closest to the last day of the third month of each quarter. The fiscal year ended January 2, 2021 ("fiscal 2020") was a 53-week fiscal year. The fiscal years ended December 28, 2019 ("fiscal 2019") and December 29, 2018 ("fiscal 2018") were 52-week fiscal years. |
Use of Estimates | Use of Estimates The preparation of these financial statements in conformity with GAAP requires the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities and revenue and expenses. These estimates and judgments, include but are not limited to, revenue recognition, including performance obligations, variable consideration and other obligations such as product returns and incentives; allowance for credit losses; product warranties; valuation of goodwill and acquired intangible assets; valuation of non-marketable equity investments; evaluating loss contingencies; accounting for stock-based compensation including performance-based assessments; and accounting for income taxes and related valuation allowances. The Company bases these estimates and judgments on historical experience, market participant fair value considerations, projected future cash flows and various other factors that the Company believes are reasonable under the circumstances. Actual results may differ from the Company’s estimates. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid investments with maturity of three months or less at the time of purchase to be cash and cash equivalents. The Company invests its excess cash primarily in money market funds or demand deposit accounts of major financial institutions. Accordingly, its cash and cash equivalents are subject to minimal credit and market risk. At January 2, 2021 and December 28, 2019, cash and cash equivalents totaled $432.6 million and $239.4 million, respectively. These cash and cash equivalents are carried at cost, which approximates fair value. |
Short Term Investments | Short Term Investments The Company's short term investments include debt securities and marketable equity securities with readily determinable fair value. The Company’s investments in debt securities are classified as available-for-sale and are recorded at fair value with any unrealized gain or loss recorded as an element of stockholders’ equity. The change in fair value of the Company's investments in marketable equity securities is recognized as unrealized gains and losses in other income, net at the end of each reporting period. The fair value of investments is determined based on quoted market prices at the reporting date for those instruments. Investments consisted of the following (in thousands): January 2, December 28, Cost Fair Cost Fair Corporate and government bonds $ 3,498 $ 3,505 $ 17,016 $ 17,032 Marketable equity securities 46,578 47,576 — — Total short term investments $ 50,076 $ 51,081 $ 17,016 $ 17,032 As of January 2, 2021, the Company’s bond investment had a maturity date of March 2021. The Company invests primarily in investment grade securities and limits the amount of investment in any single issuer. |
Credit Losses | Credit LossesThe Company is exposed to credit losses primarily through sales of its products. The Company assesses each customer's ability to pay by conducting a credit review which includes consideration of established credit ratings or an internal assessment of the customer's creditworthiness based on an analysis of their financial information when a credit rating is not available. The Company monitors the credit exposure through active review of customer balances. The Company's expected loss methodology for accounts receivable is developed through consideration of factors including, but not limited to, historical collection experience, current customer credit ratings, current and future economic and market conditions and age of the receivable. Although the Company historically has not experienced significant credit losses as it relates to trade accounts receivable, the COVID-19 pandemic has caused uncertainty in some customer accounts. |
Accounts receivable allowances | Accounts receivable allowances Allowance for product returns : The Company records an allowance for product returns based on specific terms and conditions included in the customer agreements or based on historical experience and the Company's expectation of future returns. Allowance for other credits and incentives: The Company records an allowance related to customer incentives such as discounts, promotions, price protection and other support programs. The allowance is based on specific terms and conditions included in customer agreements, specific programs and historical experience. |
Inventory | Inventory Inventory is stated at the lower of cost or net realizable value with cost being determined using the first-in, first-out method. The Company writes down its inventory for estimated obsolescence or excess inventory based upon assumptions around market conditions and estimates of future demand. Adjustments to reduce inventory to net realizable value are recognized in cost of revenue and have not been significant for the periods presented. Inventory primarily consists of finished goods at January 2, 2021 and December 28, 2019. |
Warranty | Warranty The Company generally provides a one-year warranty on all of its products except in countries where a two-year warranty is required against defects in materials and workmanship. The Company's standard warranty provides for repair or replacement of the associated products during the warranty period. The Company records estimated warranty costs in the period the related revenue is recognized based on historical experience, expectations of future costs to repair or replace and knowledge of specific product failures outside the Company's historical experience. Actual results could differ from these estimates, which could cause increases or decreases to the warranty reserves in future periods. |
Property and Equipment | Property and Equipment Property and equipment are recorded at cost and depreciated using the straight-line method over the estimated useful lives as follows: Estimated Useful Life Computer and equipment 2-5 years Furniture and fixtures 5 Machinery and tooling 2-5 Business applications software 3-7 Leasehold improvements Lesser of economic benefit period or term of lease Expenditures for additions and betterments of property and equipment are capitalized. Expenditures for repairs and maintenance are charged to expense as incurred. As assets are retired or sold, the related cost and accumulated depreciation are removed from the accounts and any resulting gain or loss is recognized. |
Goodwill and Other Long-Lived Assets | Goodwill and Other Long-Lived Assets Goodwill represents the excess of the purchase price in a business combination over the fair value of the net tangible and intangible assets acquired. Goodwill is not amortized but rather is assessed for impairment at the reporting unit level annually during the fourth quarter of each fiscal year or more frequently if the Company believes indicators of impairment exist. Goodwill impairment, if any, is determined by comparing the reporting unit's fair value to its carrying value. An impairment loss is recognized in an amount equal to the excess of the reporting unit's carrying value over its fair value, up to the amount of goodwill allocated to the reporting unit. Other long-lived assets primarily consist of property and equipment, operating lease right-of-use assets and intangible assets. The Company periodically evaluates the recoverability of other long-lived assets whenever events and changes in circumstances, such as reductions in demand or significant economic slowdowns in the industry, indicate that the carrying amount of an asset may not be fully recoverable. When indicators of impairment are present, the carrying values of the asset group are evaluated in relation to the future undiscounted cash flows of the underlying business. The net book value of the underlying asset is adjusted to fair value if the sum of the expected discounted cash flows is less than book value. Fair values are based on estimates of market prices and assumptions concerning the amount and timing of estimated future cash flows and assumed discount rates, reflecting varying degrees of perceived risk. The impairment assessment of goodwill and other long-lived assets involves significant estimates and assumptions, which may be unpredictable and inherently uncertain. These estimates and assumptions include identification of reporting units and asset groups, long-term growth rates, profitability, estimated useful lives, comparable market multiples, and discount rates. Any changes in these assumptions could impact the result of the impairment assessment. There was no impairment of goodwill or other long-lived assets during fiscal 2020, 2019 and 2018. |
Other Assets | Strategic Investments The Company holds non-marketable equity securities as part of its strategic investments portfolio. The Company classifies the majority of these securities as equity securities without readily determinable fair values and measures these investments at cost, less any impairment, adjusted for observable price changes. These investments are valued using significant unobservable inputs or data in an inactive market and the valuation requires the Company's judgment due to the absence of market prices and inherent lack of liquidity. The estimated fair value is based on quantitative and qualitative factors including, but not limited to, subsequent financing activities by the investee and projected discounted cash flows. At January 2, 2021 and December 28, 2019, the Company's equity securities without readily determinable fair values totaled $17.4 million and $21.0 million, respectively, and are included in other assets on the consolidated balance sheets. On July 1, 2020, Teladoc Health, Inc. ("Teladoc") closed on its previously announced acquisition of InTouch Health, of which the Company held non-marketable equity securities. In exchange for its shares of InTouch Health, the Company received 0.2 million shares of Teladoc and recorded a gain of $38.6 million to other income, net during the fiscal year ended January 2, 2021. The Teladoc shares received are subject to time based contractual sales restrictions which expire in January 2021. These shares are accounted for as marketable equity securities and measured at fair value with unrealized gains and losses recognized in other income, net at the end of each reporting period. As a result, the Company entered into an economic hedge in July 2020 to reduce the Company's exposure to stock price fluctuations during the restricted period. During the fiscal year ended January 2, 2021, the Company recorded a net gain of $4.9 million from the remeasurements of Teladoc shares and related hedge. As of January 2, 2021, the shares in Teladoc were valued at $47.6 million and are recorded in short term investments on the consolidated balance sheet. Subsequent to fiscal 2020, the Company received net proceeds of $51.5 million related to the sale of Teledoc shares and settlement of the related hedge during January 2021. |
Financial Instruments and Hedging Activities | Financial Instruments and Hedging Activities The Company utilizes derivative instruments to partially offset its financial risks to foreign exchange risk. The Company does not engage in speculative hedging activity. In order to account for a derivative instrument as a cash flow hedge, specific criteria must be met, including: (i) ensuring at the inception of the hedge that formal documentation exists for both the hedging relationship and the entity’s risk management objective and strategy for undertaking the hedge and (ii) at the inception of the hedge and on an ongoing basis, the hedging relationship is expected to be highly effective in achieving offsetting changes in fair value attributed to the hedged risk during the period that the hedge is designated. Cash flow hedge amounts that are included in the assessment of hedge effectiveness are deferred in accumulated other comprehensive income (loss) until the hedged item is recognized in earnings. Deferred gains and losses associated with cash flow hedges are recognized as a component of net sales in the same period as the related revenue is recognized. Absent meeting these criteria, changes in fair value are recognized in other income, net, in the consolidated statements of income. The Company may also enter into non-designated foreign currency contracts to offset a portion of the foreign currency exchange gains and losses generated by the remeasurement of certain assets and liabilities denominated in non-functional currencies. Changes in fair value are recognized in other income, net, in the consolidated statements of income. |
Fair Value Measurements | Fair Value Measurements The Company accounts for certain assets and liabilities at fair value. The fair value is established based on a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers include: • Level 1 - observable inputs such as quoted prices for identical instruments in active markets; • Level 2 - inputs other than quoted prices in active markets that are either directly or indirectly observable; and • Level 3 - unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. |
Stock-Based Compensation | Stock-Based Compensation The Company accounts for stock-based compensation through recognition of the fair value of the stock-based compensation as a charge against earnings. The fair value for time-based restricted stock units and performance-based restricted stock units is based on the closing share price of the Company's common stock on the date of grant. For performance-based restricted stock units, the compensation cost is recognized based on the number of units expected to vest upon the achievement of the performance conditions. The Company recognizes stock-based compensation as an expense on a straight-line basis, over the requisite service period. The Company accounts for forfeitures as they occur, rather than applying an estimated forfeiture rate. |
Business Combinations | |
Research and Development | Research and Development Costs incurred in the research and development of the Company’s products are expensed as incurred. |
Advertising Expense | Advertising ExpenseThe Company expenses advertising costs as they are incurred. During the years ended January 2, 2021, December 28, 2019 and December 29, 2018 advertising expense totaled $145.2 million, $125.0 million and $114.0 million, respectively, and are recorded within the selling and marketing expenses in its consolidated statements of income. |
Income Taxes | Income TaxesDeferred tax assets and liabilities are determined based on the difference between the financial statement and tax basis using enacted tax rates in effect in the years in which those temporary differences are expected to be recovered or settled in each jurisdiction. A valuation allowance is provided if, based upon the weight of available evidence, it is more likely than not that the related benefits will not be realized. The Company regularly reviews the deferred tax assets for recoverability considering historical profitability, projected future taxable income, future reversals of existing taxable temporary differences, as well as feasible tax planning strategies in each jurisdiction. |
Concentration of Credit Risk and Significant Customers | Concentration of Credit Risk and Significant Customers Financial instruments which potentially expose the Company to concentrations of credit risk consist of accounts receivable and cash and cash equivalents. Management believes its credit policies are prudent and reflect normal industry terms and business risk. At January 2, 2021, one customer accounted for 17.6% of the Company's accounts receivable balance. At December 28, 2019, two customers accounted for a total of 26.6% of the Company's accounts receivable balance. For the fiscal years ended January 2, 2021, December 28, 2019, and December 29, 2018, there was one customer that accounted for 10% or more of total revenue, representing 22.7%, 21.3% and 17.3%, of the Company's total revenue, respectively. The Company maintains its cash in bank deposit accounts and money market funds at high quality financial institutions. The individual balances, at times, may exceed federally insured limits. These deposits may be redeemed upon demand, and management believes that the financial institutions that hold the Company’s cash and cash equivalents are financially sound and, accordingly, minimal credit risk exists with respect to cash and cash equivalents. |
Net Income Per Share | Net Income Per ShareBasic income per share is calculated using the Company's weighted-average outstanding common shares. Diluted income per share is calculated using the Company's weighted-average outstanding common shares including the dilutive effect of stock awards as determined under the treasury stock method. |
Recent Accounting Pronouncements | Recently Adopted Accounting Standards In June 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2016-13, "Measurement of Credit Losses on Financial Instruments," which amends the impairment model by requiring entities to use a forward-looking approach based on expected losses rather than incurred losses to estimate credit losses on certain types of financial instruments. The Company adopted the standard effective December 29, 2019 which resulted in no adjustment to the allowance for credit losses upon adoption. See the description of the Company’s "Credit Losses" accounting policy above. In August 2018, the FASB issued ASU No. 2018-13, "Fair Value Measurement: Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement." The amendment modifies disclosure requirements related to fair value measurement. The Company adopted this standard effective December 29, 2019 which did not have a material impact on the Company's consolidated financial statements and related disclosures. In August 2018, the FASB issued ASU No. 2018-15, "Intangibles - Goodwill and Other - Internal-Use Software." The new standard aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal use software license). The Company adopted the standard using the prospective method effective December 29, 2019 which did not have a material impact on the Company's consolidated financial statements. Recently Issued Accounting Standards In December 2019, the FASB issued ASU No. 2019-12, "Income Taxes - Simplifying the Accounting for Income Taxes." The ASU simplifies the accounting for income taxes by removing certain exceptions to the general principles as well as clarifying and amending existing guidance to improve consistent application. The amendments to this ASU are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020, with early adoption permitted. Depending on the amendment, adoption may be applied on the retrospective, modified retrospective or prospective basis. The Company will adopt the ASU effective January 3, 2021, and has concluded that there is no impact to the consolidated financial statements upon adoption. |
Revenue Recognition | The Company primarily derives its revenue from the sale of consumer robots and accessories. The Company sells products directly to consumers through online stores and indirectly through resellers and distributors. Revenue is recognized upon transfer of control of promised products or services to customers, generally as title and risk of loss pass, in an amount that reflects the consideration the Company expects to receive in exchange for those products or services. Revenue is recognized only to the extent that it is probable that a significant reversal of revenue will not occur and when collection is considered probable. Taxes collected from customers, which are subsequently remitted to governmental authorities, are excluded from revenue. Shipping and handling expenses are considered fulfillment activities and are expensed as incurred. The Company's consumer robots are highly dependent on, and interrelated with, the embedded software and cannot function without the software. As such, the consumer robots are accounted for as a single performance obligation, and the revenue is recognized at a point in time when the control is transferred to distributors, resellers or directly to end customers through online stores. For certain consumer robots with Wi-Fi capability ("connected robots"), each sale represents an arrangement with multiple promises consisting of the robot, downloadable free app, cloud services and potential future unspecified software upgrades. The Company has determined that the app, cloud services and potential future unspecified software upgrades represent one promised service to the customer to enhance the functionality and interaction with the robot (referred to collectively as "Cloud Services"). For contracts that contain multiple performance obligations, the transaction price is allocated to each performance obligation based on a relative standalone selling price ("SSP"). The Company estimates SSP for items that are not sold separately, using market data if available or analysis of the cost of providing the products or services plus a reasonable margin. The transaction price allocated to the robots is recognized as revenue at a point in time when control is transferred and when collection is considered probable. The transaction price allocated to the Cloud Services is deferred and recognized on a straight-line basis over the estimated term of the Cloud Services. For contracts with a duration of greater than one year, the transaction price allocated to performance obligations that are unsatisfied as of January 2, 2021 and December 28, 2019 was $11.5 million and $4.0 million, respectively . The Company does not disclose the value of unsatisfied performance obligations for contracts with an original expected duration of one year or less. The Company’s products generally carry a one-year or two-year limited warranty that promises customers that delivered products are as specified. The Company does not consider these assurance-type warranties as a separate performance obligation and therefore, the Company accounts for such warranties under ASC 460, "Guarantees." During the fourth quarter of 2020, the Company began offering its customers the option to purchase an extended warranty for a fee. Amounts paid for the extended warranty plans are deferred and recognized as revenue on a straight-line basis over the service period. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Jan. 02, 2021 | |
Accounting Policies [Abstract] | |
Components of Short-term Investments | January 2, December 28, Cost Fair Cost Fair Corporate and government bonds $ 3,498 $ 3,505 $ 17,016 $ 17,032 Marketable equity securities 46,578 47,576 — — Total short term investments $ 50,076 $ 51,081 $ 17,016 $ 17,032 |
Activity related to accounts receivable allowances | Activity related to accounts receivable allowances was as follows (in thousands): Fiscal Year Ended January 2, December 28, December 29, Allowance for product returns Balance at beginning of period $ 55,191 $ 53,920 $ 42,693 Provision 68,028 69,488 67,391 Deduction (58,876) (68,217) (56,164) Balance at end of period $ 64,343 $ 55,191 $ 53,920 Allowance for other credits and incentives Balance at beginning of period $ 134,046 $ 97,737 $ 61,359 Adjustment related to adoption of ASC 606 — — 1,192 Provision 285,139 284,084 196,858 Deduction (277,012) (247,775) (161,672) Balance at end of period $ 142,173 $ 134,046 $ 97,737 |
Property and equipment | Property and equipment are recorded at cost and depreciated using the straight-line method over the estimated useful lives as follows: Estimated Useful Life Computer and equipment 2-5 years Furniture and fixtures 5 Machinery and tooling 2-5 Business applications software 3-7 Leasehold improvements Lesser of economic benefit period or term of lease Property and equipment consists of the following (in thousands): January 2, December 28, Computer and equipment $ 13,617 $ 13,588 Furniture and fixtures 8,394 6,494 Machinery and tooling 80,715 79,213 Leasehold improvements 36,459 39,538 Business applications software 19,185 17,933 Other 1,642 — Subtotal 160,012 156,766 Less: accumulated depreciation 83,428 80,778 Property and equipment, net $ 76,584 $ 75,988 |
Basic and diluted net income per share | The following table presents the calculation of both basic and diluted net income per share (in thousands, except per share amounts): Fiscal Year Ended January 2, December 28, December 29, Net income $ 147,068 $ 85,300 $ 87,992 Weighted-average shares outstanding 28,101 28,097 27,692 Dilutive effect of employee stock plans 517 638 948 Diluted weighted-average shares outstanding 28,618 28,735 28,640 Basic income per share $ 5.23 $ 3.04 $ 3.18 Diluted income per share $ 5.14 $ 2.97 $ 3.07 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Jan. 02, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue [Table Text Block] | Disaggregation of Revenue The following table provides information about disaggregated revenue by geographical region (in thousands): January 2, 2021 December 28, 2019 December 29, 2018 United States $ 744,648 $ 603,618 $ 560,995 EMEA 386,007 357,760 311,659 Japan 193,304 160,875 132,813 Other 106,431 91,757 87,117 Total revenue $ 1,430,390 $ 1,214,010 $ 1,092,584 |
Contract with Customer, Asset and Liability [Table Text Block] | Contract Balances The following table provides information about receivables and contract liabilities from contracts with customers (in thousands): January 2, 2021 December 28, 2019 Accounts receivable, net $ 170,526 $ 146,161 Contract liabilities 17,700 6,991 The Company invoices customers based upon contractual billing schedules, and accounts receivable are recorded when the right to consideration becomes unconditional. Contract liabilities include deferred revenue associated with the Cloud Services and extended warranty plans as well as prepayments received from customers in advance of product shipments. The change in the opening and closing balances of the Company’s contract assets and contract liabilities primarily results from the timing difference between the Company’s performance and the customer’s payment. During the years ended January 2, 2021 and December 28, 2019, the Company recogni zed $5.5 million |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Jan. 02, 2021 | |
Leases [Abstract] | |
Lease, Cost [Table Text Block] | The components of lease expense were as follows (in thousands): January 2, 2021 December 28, 2019 Operating lease cost $ 9,363 $ 8,777 Variable lease cost 3,583 4,096 Total lease cost $ 12,946 $ 12,873 |
Schedule of Leases, Supplemental Cash Flow [Table Text Block] | Supplemental cash flow information related to leases was as follows (in thousands): January 2, 2021 December 28, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 9,862 $ 9,540 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 2,310 $ 53,227 |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | Maturities of operating lease liabilities were as follows as of January 2, 2021 (in thousands): 2021 $ 8,226 2022 8,633 2023 7,647 2024 6,590 2025 6,612 Thereafter 28,539 Total minimum lease payments $ 66,247 Less: imputed interest 9,447 Present value of future minimum lease payments $ 56,800 Less: current portion of operating lease liabilities (Note 7) 6,315 Long-term lease liabilities $ 50,485 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Jan. 02, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property and equipment | Property and equipment are recorded at cost and depreciated using the straight-line method over the estimated useful lives as follows: Estimated Useful Life Computer and equipment 2-5 years Furniture and fixtures 5 Machinery and tooling 2-5 Business applications software 3-7 Leasehold improvements Lesser of economic benefit period or term of lease Property and equipment consists of the following (in thousands): January 2, December 28, Computer and equipment $ 13,617 $ 13,588 Furniture and fixtures 8,394 6,494 Machinery and tooling 80,715 79,213 Leasehold improvements 36,459 39,538 Business applications software 19,185 17,933 Other 1,642 — Subtotal 160,012 156,766 Less: accumulated depreciation 83,428 80,778 Property and equipment, net $ 76,584 $ 75,988 |
Goodwill and other intangible_2
Goodwill and other intangible assets (Tables) | 12 Months Ended |
Jan. 02, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of goodwill | The following table summarizes the activity in the carrying amount of goodwill and intangible assets for fiscal years 2020 and 2019 (in thousands): Balance as of December 29, 2018 $ 118,896 Acquisition 2,050 Effect of foreign currency translation (2,214) Balance as of December 28, 2019 118,732 Effect of foreign currency translation 7,140 Balance as of January 2, 2021 $ 125,872 |
Other intangible assets | Intangible assets consisted of the following (in thousands): January 2, 2021 December 28, 2019 Cost Accumulated Net Cost Accumulated Net Completed technology $ 28,100 $ 26,525 $ 1,575 $ 28,100 $ 24,605 $ 3,495 Tradename 100 100 — 100 100 — Customer relationships 11,728 3,401 8,327 11,095 2,302 8,793 Reacquired distribution rights 34,318 34,318 — 31,680 31,680 — Non-competition agreements 280 280 — 256 192 64 Total $ 74,526 $ 64,624 $ 9,902 $ 71,231 $ 58,879 $ 12,352 |
Estimated future amortization expense related to current intangible assets | The estimated future amortization expense related to current intangible assets in each of the five succeeding fiscal years is expected to be as follows (in thousands): Cost of Revenue Operating Expenses Total 2021 $ 900 $ 823 $ 1,723 2022 675 823 1,498 2023 — 823 823 2024 — 823 823 2025 — 823 823 Thereafter — 4,212 4,212 Total $ 1,575 $ 8,327 $ 9,902 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 12 Months Ended |
Jan. 02, 2021 | |
Accrued Liabilities, Current [Abstract] | |
Components of accrued expenses | Accrued expenses consist of the following (in thousands): January 2, December 28, Accrued bonus $ 31,523 $ 12,541 Accrued warranty 24,392 13,856 Accrued manufacturing and logistics cost 20,093 14,383 Accrued compensation and benefits 17,635 13,331 Accrued sales and other indirect taxes payable 15,480 12,440 Current portion of operating lease liabilities 6,315 6,843 Accrued income taxes 3,806 3,378 Accrued other 12,144 4,996 $ 131,388 $ 81,768 |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities (Tables) | 12 Months Ended |
Jan. 02, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of fair values of derivative instruments | The fair values of derivative instruments are as follows (in thousands): Fair Value Classification January 2, 2021 December 28, 2019 Derivatives not designated as hedging instruments: Foreign currency forward contracts Other current assets $ 261 $ 1,855 Foreign currency forward contracts Accrued expenses 2,176 297 Forward sale contract Other current assets 3,904 — Derivatives designated as cash flow hedges: Foreign currency forward contracts Other current assets $ 362 $ 4,347 Foreign currency forward contracts Other assets 679 9,112 Foreign currency forward contracts Accrued expenses 2,092 47 Foreign currency forward contracts Long-term liabilities 8,554 414 |
Schedule of derivative instruments gain (loss) | Gains (losses) associated with derivative instruments not designated as hedging instruments are as follows (in thousands): Fiscal year ended Classification January 2, 2021 December 28, 2019 Gain (loss) recognized in income Other income, net $ (188) $ 89 The following tables reflect the effect of derivatives designated as cash flow hedging for the years ended (in thousands): Gain (loss) recognized in OCI on Derivative (1) Fiscal year ended January 2, 2021 December 28, 2019 Foreign currency forward contracts $ (18,504) $ 16,483 (1) The amount represents the change in fair value of derivative contracts due to changes in spot rates. Gain (loss) recognized in earnings on cash flow hedging instruments January 2, 2021 December 28, 2019 Revenue Revenue Consolidated statements of income in which the effects of cash flow hedging instruments are recorded $ 1,430,390 $ 1,214,010 Gain or (loss) on cash flow hedging relationships: Foreign currency forward contracts: Amount of gain (loss) reclassified from AOCI into earnings $ 4,783 $ 1,889 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Jan. 02, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of financial assets and liabilities measured at fair value on a recurring basis | The Company’s financial assets and liabilities measured at fair value on a recurring basis were as follows (in thousands): Fair Value Measurements as of January 2, 2021 Level 1 Level 2 (1) Level 3 Assets: Money market funds $ 47,529 $ — $ — Marketable equity securities, $46,578 at cost (2) 47,576 — — Corporate bonds, $3,498 at cost (3) — 3,505 — Derivative instruments (Note 9) — 5,206 — Total assets measured at fair value $ 95,105 $ 8,711 $ — Liabilities: Derivative instruments (Note 9) $ — $ 12,822 $ — Total liabilities measured at fair value $ — $ 12,822 $ — The Company’s financial assets and liabilities measured at fair value on a recurring basis were as follows (in thousands): Fair Value Measurements as of December 28, 2019 Level 1 Level 2 (1) Level 3 Assets: Corporate and government bonds, $17,016 at cost $ — $ 17,032 $ — Derivative instruments (Note 9) — 15,314 — Total assets measured at fair value $ — $ 32,346 $ — Liabilities: Derivative instruments (Note 9) $ — $ 758 $ — Total liabilities measured at fair value $ — $ 758 $ — (1) Level 2 fair value estimates are 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 for substantially the full term of the assets or liabilities. (2) The related unrealized gain recorded in Other income, net was $1.0 million for the fiscal year ended January 2, 2021. Marketable equity securities are included in short term investments on the consolidated balance sheet. (3) As of January 2, 2021, the Company’s investment had a maturity date of March 2021. |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Jan. 02, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Share based compensation expense by classification | Stock-based compensation breaks down by expense classification as follows (in thousands): Fiscal Year Ended January 2, December 28, December 29, Cost of revenue $ 1,511 $ 1,486 $ 1,407 Research and development 10,655 9,186 7,494 Selling and marketing 3,700 3,323 2,842 General and administrative 14,109 9,749 14,061 Total $ 29,975 $ 23,744 $ 25,804 |
Summary of stock option plan activity | The following table summarizes stock option activity for fiscal years 2020, 2019 and 2018: Number of Weighted Average Weighted Average Aggregate Outstanding at December 30, 2017 712,954 $ 34.34 Granted — — Exercised (239,830) 33.40 Canceled (10,863) 46.20 Outstanding at December 29, 2018 462,261 34.55 Granted — — Exercised (127,024) 32.95 Canceled (12,329) 37.03 Outstanding at December 28, 2019 322,908 35.08 Granted — — Exercised (88,292) 31.40 Canceled (1,938) 45.89 Outstanding at January 2, 2021 232,678 $ 36.39 1.75 years $10.21 million Vested and expected to vest at January 2, 2021 232,678 $ 36.39 1.75 years $10.21 million Exercisable as of January 2, 2021 232,116 $ 36.34 1.75 years $10.20 million _________________________ (1) The aggregate intrinsic value on the table above represents the difference between the Company's closing stock price on January 2, 2021 of $80.29 and the exercise price of the underlying in-the-money option. |
Activities relating to time based restricted stock units | The following table summarizes the time-based restricted stock unit activity for fiscal years 2020, 2019 and 2018: Number of Weighted Average Outstanding at December 30, 2017 938,453 $ 51.24 Granted 307,614 81.55 Vested (351,816) 47.30 Forfeited (38,362) 60.62 Outstanding at December 29, 2018 855,889 63.32 Granted 407,325 79.91 Vested (358,119) 54.89 Forfeited (85,863) 76.85 Outstanding at December 28, 2019 819,232 73.83 Granted 493,908 61.53 Vested (318,079) 67.95 Forfeited (101,028) 75.20 Outstanding at January 2, 2021 894,033 $ 68.97 |
Activities relating to performance based restricted stock units | The following table summarizes the performance-based restricted stock unit activity for fiscal years 2020, 2019 and 2018: Number of Weighted Average Outstanding at December 20, 2017 242,061 $ 43.97 Granted 91,538 68.41 Vested (56,259) 34.30 Forfeited (3,221) 45.71 Outstanding at December 29, 2018 274,119 54.10 Granted 70,827 122.20 Vested (78,943) 33.33 Forfeited (49,772) 78.29 Outstanding at December 28, 2019 216,231 78.42 Granted 130,284 46.77 Vested (71,734) 61.44 Forfeited (45,129) 75.17 Outstanding at January 2, 2021 229,652 $ 66.41 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Jan. 02, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Activity related to the warranty accrual | Activity related to the warranty accrual was as follows (in thousands): Fiscal Year Ended January 2, December 28, December 29, Balance at beginning of period $ 13,856 $ 11,964 $ 11,264 Provision 28,884 14,091 10,798 Warranty usage (18,348) (12,199) (10,098) Balance at end of period $ 24,392 $ 13,856 $ 11,964 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jan. 02, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of income (loss) before provision for income taxes | Income (loss) before provision for income taxes was as follows (in thousands): Fiscal Year Ended January 2, December 28, December 29, Domestic $ 166,973 $ 84,225 $ 113,078 Foreign 20,942 14,608 (4,456) Income before income taxes $ 187,915 $ 98,833 $ 108,622 |
Components of income tax expense | The components of income tax expense were as follows (in thousands): Fiscal Year Ended January 2, December 28, December 29, Current Federal $ 13,593 $ 13,366 $ 17,627 State 2,724 5,004 3,676 Foreign 10,451 6,941 10,732 Total current income tax provision $ 26,768 $ 25,311 $ 32,035 Deferred Federal $ 14,695 $ (9,345) $ (2,475) State 2,552 (1,783) (1,149) Foreign (3,168) (650) (7,781) Total deferred income tax provision 14,079 (11,778) (11,405) Total income tax provision $ 40,847 $ 13,533 $ 20,630 |
Reconciliation of the expected tax (benefit) expense | The reconciliation of statutory federal income tax to actual tax expense is as follows (in thousands): Fiscal Year Ended January 2, December 28, December 29, Statutory federal income tax $ 39,462 $ 20,755 $ 22,812 State taxes (net of federal benefit) 4,834 3,999 4,312 Federal and state credits (6,702) (8,152) (5,638) Excess tax expense (benefits) relating to stock-based compensation 313 (6,468) (6,529) Tax Cuts and Jobs Act of 2017 — — 2,127 Foreign-derived intangible income deduction (3,360) (4,180) (2,678) EMEA business restructuring — — 2,292 Executive compensation 718 2,081 745 Tax impact of foreign earnings 1,458 1,986 1,336 Change in valuation allowance 3,817 2,678 348 Other 307 834 1,503 $ 40,847 $ 13,533 $ 20,630 |
Components of net deferred tax assets | The components of net deferred tax assets were as follows (in thousands): January 2, December 28, Deferred tax assets Revenue reserves $ 20,564 $ 21,355 Accruals and other liabilities 14,357 8,225 Operating lease liabilities 12,429 14,117 Tax credits and net operating loss carryforwards 12,748 8,814 Stock-based compensation 4,868 4,981 Other 3,793 5,068 Gross deferred tax assets 68,759 62,560 Valuation allowance (7,643) (3,826) Total deferred tax assets 61,116 58,734 Deferred tax liabilities Intangible assets 3,341 3,838 Operating lease right-of-use assets 11,443 13,249 Marketable equity securities 10,676 — Other 2,957 768 Total deferred tax liabilities 28,417 17,855 Net deferred tax assets $ 32,699 $ 40,879 |
Schedule of adjustments to uncertain tax position | A summary of the Company’s adjustments to its gross unrecognized tax benefits in the current year is as follows (in thousands): Fiscal Year Ended January 2, 2021 December 28, December 29, Balance at beginning of period $ 7,121 $ 7,119 $ 4,590 Increase for tax positions related to the current year 765 770 2,891 Increase for tax positions related to acquisition — — 1,493 Increase (decrease) for tax positions related to prior years 1,231 (768) 407 Decrease for settlements with applicable taxing authorities — — (2,262) Decrease for lapses of statute of limitations (558) — — Balance at end of period $ 8,559 $ 7,121 $ 7,119 |
Industry Segment, Geographic _2
Industry Segment, Geographic Information and Significant Customers Revenue by geography (Tables) | 12 Months Ended |
Jan. 02, 2021 | |
Schedule of revenue by geography [Line Items] | |
Schedule of revenue by geography [Table Text Block] | The following table provides information about revenue by geographical region (in thousands): January 2, 2021 December 28, 2019 December 29, 2018 Domestic $ 744,648 $ 603,618 $ 560,995 International 685,742 610,392 531,589 Total $ 1,430,390 $ 1,214,010 $ 1,092,584 |
Quarterly Information (Unaudi_2
Quarterly Information (Unaudited) (Tables) | 12 Months Ended |
Jan. 02, 2021 | |
Quarterly Financial Information Disclosure [Abstract] | |
Details of Quarterly Information (Unaudited) | The following information has been derived from unaudited consolidated financial statements that, in the opinion of management, include all recurring adjustments necessary for a fair statement of such information (in thousands, except per share amounts): Fiscal Quarter Ended January 2, September 26, June 27, March 28, December 28, September 28, June 29, March 30, Revenue $ 544,827 $ 413,145 $ 279,883 $ 192,535 $ 426,778 $ 289,399 $ 260,172 $ 237,661 Gross profit 215,421 198,841 178,012 77,955 169,370 136,841 118,170 119,546 Net income (loss) 13,335 93,252 58,616 (18,135) 20,041 35,532 7,207 22,520 Diluted income (loss) per share $ 0.46 $ 3.27 $ 2.07 $ (0.64) $ 0.70 $ 1.24 $ 0.25 $ 0.78 |
- Short Term Investments (Detai
- Short Term Investments (Details) - USD ($) $ in Thousands | Jan. 02, 2021 | Dec. 28, 2019 |
Components of available for sale securities | ||
Short-term investments, cost | $ 50,076 | $ 17,016 |
Short-term investments, fair value | 51,081 | 17,032 |
Corporate and government bonds | ||
Components of available for sale securities | ||
Debt securities, cost | 3,498 | 17,016 |
Debt securities, fair value | 3,505 | 17,032 |
Marketable equity securities | ||
Components of available for sale securities | ||
Equity securities, cost | $ 46,578 | 0 |
Equity securities, fair value | $ 0 |
- Accounts Receivable Allowance
- Accounts Receivable Allowances (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | |
Allowance for other credits and incentives [Member] | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of period | $ 134,046 | $ 97,737 | $ 61,359 |
Adjustment related to adoption of ASC 606 | 0 | 0 | 1,192 |
Provision | 285,139 | 284,084 | 196,858 |
Deduction | (277,012) | (247,775) | (161,672) |
Balance at end of period | 142,173 | 134,046 | 97,737 |
Allowance for product returns [Member] | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of period | 55,191 | 53,920 | 42,693 |
Provision | 68,028 | 69,488 | 67,391 |
Deduction | (58,876) | (68,217) | (56,164) |
Balance at end of period | $ 64,343 | $ 55,191 | $ 53,920 |
- Property and Equipment (Detai
- Property and Equipment (Details) | 12 Months Ended |
Jan. 02, 2021 | |
Leasehold improvements | |
Property, Plant and Equipment [Line Items] | |
Capital Leases and Leasehold Improvements Terms | Lesser of economic benefit period or term of lease |
Furniture and fixtures | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 5 years |
Minimum | Computer and equipment | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 2 years |
Minimum | Machinery and tooling | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 2 years |
Minimum | Tooling | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 2 years |
Minimum | Business applications software | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 3 years |
Maximum | Computer and equipment | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 5 years |
Maximum | Machinery and tooling | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 5 years |
Maximum | Tooling | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 5 years |
Maximum | Business applications software | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 7 years |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies Other assets (Details) - USD ($) $ in Thousands, shares in Millions | Jul. 01, 2020 | Jan. 31, 2021 | Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 |
Security Owned Not Readily Marketable [Line Items] | |||||
Equity Securities without Readily Determinable Fair Value, Amount | $ 17,400 | $ 21,000 | |||
Gain (Loss) on Sale of Equity Investments | $ 38,600 | 43,817 | $ 8,439 | $ 0 | |
Number of shares (in shares) | 0.2 | ||||
Marketable Securities, Unrealized Gain (Loss) | 4,900 | ||||
Equity securities, FV-NI, restricted | $ 47,600 | ||||
Subsequent Event | |||||
Security Owned Not Readily Marketable [Line Items] | |||||
Proceeds from sale of short-term investments | $ 51,500 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies Income taxes (Details) - USD ($) $ in Thousands | Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 |
Income taxes [Abstract] | |||
Valuation allowance | $ 7,643 | $ 3,826 | $ 1,100 |
- Net Income Per Share (Details
- Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 02, 2021 | Sep. 26, 2020 | Jun. 27, 2020 | Mar. 28, 2020 | Dec. 28, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | |
Basic and Diluted Net Income Per Share | |||||||||||
Net income | $ 13,335 | $ 93,252 | $ 58,616 | $ (18,135) | $ 20,041 | $ 35,532 | $ 7,207 | $ 22,520 | $ 147,068 | $ 85,300 | $ 87,992 |
Weighted-average shares outstanding | 28,101 | 28,097 | 27,692 | ||||||||
Dilutive effect of employee stock plans | 517 | 638 | 948 | ||||||||
Diluted weighted-average shares outstanding | 28,618 | 28,735 | 28,640 | ||||||||
Basic | $ 5.23 | $ 3.04 | $ 3.18 | ||||||||
Diluted | $ 0.46 | $ 3.27 | $ 2.07 | $ (0.64) | $ 0.70 | $ 1.24 | $ 0.25 | $ 0.78 | $ 5.14 | $ 2.97 | $ 3.07 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Narrative (Details) - USD ($) $ in Thousands, shares in Millions | Jul. 01, 2020 | Jan. 31, 2021 | Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | Apr. 24, 2020 | Dec. 30, 2017 |
Accounting Policies [Line Items] | |||||||
Equity Securities without Readily Determinable Fair Value, Amount | $ 17,400 | $ 21,000 | |||||
Allowance for credit loss, period increase (decrease) | 3,600 | ||||||
Allowance for credit loss | 4,800 | 1,200 | |||||
Receivable for recovery of import duties, net | 9,900 | $ 57,000 | |||||
Recovery of import duties | 36,500 | ||||||
Proceeds from recovery of import duties | 47,100 | ||||||
Advertising Expense | 145,200 | 125,000 | $ 114,000 | ||||
Valuation allowance | $ 7,643 | $ 3,826 | $ 1,100 | ||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 0.2 | 0.2 | 0 | ||||
Number of shares (in shares) | 0.2 | ||||||
Equity securities, FV-NI, restricted | $ 47,600 | ||||||
Subsequent Event | |||||||
Accounting Policies [Line Items] | |||||||
Proceeds from sale of short-term investments | $ 51,500 | ||||||
Customer Concentration Risk | Accounts Receivable | One Customer [Member] | |||||||
Accounting Policies [Line Items] | |||||||
Concentration risk percentage | 17.60% | ||||||
Customer Concentration Risk | Accounts Receivable | Two Customers [Member] | |||||||
Accounting Policies [Line Items] | |||||||
Concentration risk percentage | 26.60% | ||||||
Customer Concentration Risk | Revenue | Amazon [Member] | |||||||
Accounting Policies [Line Items] | |||||||
Concentration risk percentage | 22.70% | 21.30% | 17.30% | ||||
Allowance for product returns | |||||||
Accounting Policies [Line Items] | |||||||
Valuation allowances and reserves | $ 64,343 | $ 55,191 | $ 53,920 | $ 42,693 |
Revenue Recognition - Performan
Revenue Recognition - Performance Obligations (Details) - USD ($) $ in Millions | Jan. 02, 2021 | Dec. 28, 2019 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-12-29 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Performance obligation, amount | $ 4 | |
Expected timing of satisfaction, period | 1 year | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-03 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Performance obligation, amount | $ 11.5 | |
Expected timing of satisfaction, period | 1 year |
Revenue Recognition Significant
Revenue Recognition Significant Judgments (Details) - USD ($) $ in Millions | Jan. 02, 2021 | Dec. 28, 2019 |
Revenue from Contract with Customer [Abstract] | ||
Refund liability, product returns | $ 64.3 | $ 55.2 |
Refund liability, other credits and incentives | $ 142.2 | $ 134 |
Revenue Recognition Disaggregat
Revenue Recognition Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 02, 2021 | Sep. 26, 2020 | Jun. 27, 2020 | Mar. 28, 2020 | Dec. 28, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | |
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | $ 544,827 | $ 413,145 | $ 279,883 | $ 192,535 | $ 426,778 | $ 289,399 | $ 260,172 | $ 237,661 | $ 1,430,390 | $ 1,214,010 | $ 1,092,584 |
UNITED STATES | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue from Contract with Customer, Excluding Assessed Tax | 744,648 | 603,618 | 560,995 | ||||||||
EMEA [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue from Contract with Customer, Excluding Assessed Tax | 386,007 | 357,760 | 311,659 | ||||||||
All Other Regions [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue from Contract with Customer, Excluding Assessed Tax | 106,431 | 91,757 | 87,117 | ||||||||
JAPAN | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 193,304 | $ 160,875 | $ 132,813 |
Revenue Recognition Contract Ba
Revenue Recognition Contract Balances (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 02, 2021 | Dec. 28, 2019 | |
Revenue from Contract with Customer [Abstract] | ||
Accounts receivable, net | $ 170,526 | $ 146,161 |
Contract with Customer, Liability | 17,700 | 6,991 |
Contract with Customer, Liability, Revenue Recognized | $ 5,500 | $ 5,800 |
Leases (Details)
Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | |
Lessee, Lease, Description [Line Items] | |||
Operating Lease, Weighted Average Discount Rate, Percent | 3.56% | ||
Operating Lease, Weighted Average Remaining Lease Term | 8 years 3 months 18 days | ||
Operating Lease, Cost | $ 9,363 | $ 8,777 | |
Variable Lease, Cost | 3,583 | 4,096 | |
Operating Leases, Rent Expense, Net | 12,946 | 12,873 | |
Operating Lease, Payments | 9,862 | 9,540 | |
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | $ 2,310 | $ 53,227 | |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | us-gaap:AccruedLiabilitiesCurrent | us-gaap:AccruedLiabilitiesCurrent | |
Operating lease right-of-use assets | $ 43,682 | $ 47,478 | |
Present value of future minimum lease payments | $ 56,800 | ||
Cumulative Effect, Period of Adoption, Adjustment | |||
Lessee, Lease, Description [Line Items] | |||
Operating lease right-of-use assets | $ 52,800 | ||
Present value of future minimum lease payments | $ 67,300 |
Leases Maturity of Operating Le
Leases Maturity of Operating Lease Liability (Details) - USD ($) $ in Thousands | Jan. 02, 2021 | Dec. 28, 2019 |
Leases [Abstract] | ||
Lessee, Operating Lease, Liability, Payments, Due Next Twelve Months | $ 8,226 | |
Lessee, Operating Lease, Liability, Payments, Due Year Two | 8,633 | |
Lessee, Operating Lease, Liability, Payments, Due Year Three | 7,647 | |
Lessee, Operating Lease, Liability, Payments, Due Year Four | 6,590 | |
Lessee, Operating Lease, Liability, Payments, Due Year Five | 6,612 | |
Lessee, Operating Lease, Liability, Payments, Due after Year Five | 28,539 | |
Lessee, Operating Lease, Liability, Payments, Due | 66,247 | |
Lessee, Operating Lease, Liability, Undiscounted Excess Amount | 9,447 | |
Present value of future minimum lease payments | 56,800 | |
Current portion of operating lease liabilities | 6,315 | $ 6,843 |
Operating lease liabilities | $ 50,485 | $ 54,928 |
Property and Equipment 1 (Detai
Property and Equipment 1 (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | |
Property, Plant and Equipment [Line Items] | |||
Subtotal | $ 160,012 | $ 156,766 | |
Less: accumulated depreciation | 83,428 | 80,778 | |
Property and equipment, net | 76,584 | 75,988 | |
Capitalized Computer Software, Net | 6,500 | 6,800 | |
Depreciation | 31,900 | 24,400 | $ 17,000 |
Capitalized Computer Software, Amortization | 2,100 | 1,500 | $ 1,200 |
Computer and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Subtotal | 13,617 | 13,588 | |
Furniture and fixtures | |||
Property, Plant and Equipment [Line Items] | |||
Subtotal | 8,394 | 6,494 | |
Machinery and tooling | |||
Property, Plant and Equipment [Line Items] | |||
Subtotal | 80,715 | 79,213 | |
Leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Subtotal | 36,459 | 39,538 | |
Business applications software | |||
Property, Plant and Equipment [Line Items] | |||
Subtotal | 19,185 | 17,933 | |
Other | |||
Property, Plant and Equipment [Line Items] | |||
Subtotal | $ 1,642 | $ 0 |
Goodwill and other intangible_3
Goodwill and other intangible assets - Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 02, 2021 | Dec. 28, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Goodwill, Acquired During Period | $ 2,050 | |
Goodwill [Roll Forward] | ||
Goodwill | $ 118,732 | 118,896 |
Effect of foreign currency translation | 7,140 | (2,214) |
Goodwill | $ 125,872 | $ 118,732 |
Goodwill and other intangible_4
Goodwill and other intangible assets - Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | |
Finite-Lived Intangible Assets, Net [Abstract] | |||
Cost | $ 74,526 | $ 71,231 | |
Accumulated Amortization | 64,624 | 58,879 | |
Net | 9,902 | 12,352 | |
Amortization of Intangible Assets | 2,900 | 12,800 | $ 19,600 |
Completed technology | |||
Finite-Lived Intangible Assets, Net [Abstract] | |||
Cost | 28,100 | 28,100 | |
Accumulated Amortization | 26,525 | 24,605 | |
Net | 1,575 | 3,495 | |
Tradename | |||
Finite-Lived Intangible Assets, Net [Abstract] | |||
Cost | 100 | 100 | |
Accumulated Amortization | 100 | 100 | |
Net | 0 | 0 | |
Customer relationships | |||
Finite-Lived Intangible Assets, Net [Abstract] | |||
Cost | 11,728 | 11,095 | |
Accumulated Amortization | 3,401 | 2,302 | |
Net | 8,327 | 8,793 | |
Reacquired distribution rights | |||
Finite-Lived Intangible Assets, Net [Abstract] | |||
Cost | 34,318 | 31,680 | |
Accumulated Amortization | 34,318 | 31,680 | |
Net | 0 | 0 | |
Non-competition agreements | |||
Finite-Lived Intangible Assets, Net [Abstract] | |||
Cost | 280 | 256 | |
Accumulated Amortization | 280 | 192 | |
Net | $ 0 | $ 64 |
Goodwill and other intangible_5
Goodwill and other intangible assets - Future Amortization Expense (Details) - USD ($) $ in Thousands | Jan. 02, 2021 | Dec. 28, 2019 |
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | $ 1,723 | |
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 1,498 | |
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 823 | |
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 823 | |
Finite-Lived Intangible Assets, Amortization Expense, Year Five | 823 | |
Finite-Lived Intangible Assets, Amortization Expense, after Year Five | 4,212 | |
Net | 9,902 | $ 12,352 |
Cost of revenue | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | 900 | |
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 675 | |
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 0 | |
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 0 | |
Finite-Lived Intangible Assets, Amortization Expense, Year Five | 0 | |
Finite-Lived Intangible Assets, Amortization Expense, after Year Five | 0 | |
Net | 1,575 | |
Operating Expense [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | 823 | |
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 823 | |
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 823 | |
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 823 | |
Finite-Lived Intangible Assets, Amortization Expense, Year Five | 823 | |
Finite-Lived Intangible Assets, Amortization Expense, after Year Five | 4,212 | |
Net | $ 8,327 |
Accrued Expenses (Details)
Accrued Expenses (Details) - USD ($) $ in Thousands | Jan. 02, 2021 | Dec. 28, 2019 |
Components of accrued expenses | ||
Accrued bonus | $ 31,523 | $ 12,541 |
Accrued warranty | 24,392 | 13,856 |
Accrued compensation and benefits | 17,635 | 13,331 |
Accrued sales and other indirect taxes payable | 15,480 | 12,440 |
Accrued manufacturing and logistics cost | 20,093 | 14,383 |
Current portion of operating lease liabilities | 6,315 | 6,843 |
Accrued income taxes | 3,806 | 3,378 |
Accrued other | 12,144 | 4,996 |
Accrued expenses, total | $ 131,388 | $ 81,768 |
Working Capital Facilities (Det
Working Capital Facilities (Details) $ in Thousands, ¥ in Millions | 12 Months Ended | ||
Jan. 02, 2021USD ($) | Jan. 02, 2021JPY (¥) | Dec. 30, 2017USD ($) | |
Debt Disclosure [Abstract] | |||
Letters of Credit Outstanding, Amount | $ 700 | ||
Revolving Line of Credit (Textual) [Abstract] | |||
Maximum amount available for borrowing under credit facility | $ 150,000 | $ 75,000 | |
Interest on loans under the credit facility | at either (1) LIBOR plus a margin, currently equal to 1.0%, based on the Company's ratio of indebtedness to Adjusted EBITDA (the "Eurodollar Rate"), or (2) the lender's base rate. | ||
Interest rate above the LIBOR Daily Floating Rate or the Prime Rate of Lender under condition one | 1.00% | 1.00% | |
Interest Rate Above the Federal Fund Rate Under Condition Two | 0.50% | 0.50% | |
Interest rate above the LIBOR rate plus under condition two | 1.00% | 1.00% | |
Line of Credit Facility, Amount Outstanding | $ 0 | ||
Letter of credit facility, maximum borrowing | $ 5,000 | ||
Line of credit, maximum amount | ¥ | ¥ 220 |
Derivative Instruments and He_2
Derivative Instruments and Hedging Activities - Fair Value of Derivatives (Details) - USD ($) | 12 Months Ended | |
Jan. 02, 2021 | Dec. 28, 2019 | |
Derivatives not designated as hedging instruments: | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Notional Amount | $ 192,200,000 | $ 116,500,000 |
Foreign currency forward contracts | Derivatives not designated as hedging instruments: | Other current assets | ||
Derivative, Fair Value, Net [Abstract] | ||
Derivative Asset | 261,000 | 1,855,000 |
Foreign currency forward contracts | Derivatives not designated as hedging instruments: | Accrued expenses | ||
Derivative, Fair Value, Net [Abstract] | ||
Derivative Liability | 2,176,000 | 297,000 |
Derivatives not designated as hedging instruments: | Marketable equity securities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Notional Amount | 51,500,000 | |
Forward Contracts | Derivatives not designated as hedging instruments: | Other current assets | ||
Derivative, Fair Value, Net [Abstract] | ||
Derivative Liability | 3,904,000 | 0 |
Cash flow hedge | Derivatives designated as cash flow hedges: | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Notional Amount | 431,900,000 | 424,600,000 |
Cash flow hedge | Foreign currency forward contracts | Derivatives designated as cash flow hedges: | Other current assets | ||
Derivative, Fair Value, Net [Abstract] | ||
Derivative Asset | 362,000 | 4,347,000 |
Cash flow hedge | Foreign currency forward contracts | Derivatives designated as cash flow hedges: | Other assets | ||
Derivative, Fair Value, Net [Abstract] | ||
Derivative Asset | 679,000 | 9,112,000 |
Cash flow hedge | Foreign currency forward contracts | Derivatives designated as cash flow hedges: | Accrued expenses | ||
Derivative, Fair Value, Net [Abstract] | ||
Derivative Liability | 2,092,000 | 47,000 |
Cash flow hedge | Foreign currency forward contracts | Derivatives designated as cash flow hedges: | Other Noncurrent Liabilities [Member] | ||
Derivative, Fair Value, Net [Abstract] | ||
Derivative Liability | $ 8,554,000 | $ 414,000 |
Maximum | Derivatives not designated as hedging instruments: | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Term of Contract | 12 months | |
Maximum | Cash flow hedge | Derivatives designated as cash flow hedges: | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Term of Contract | 3 years |
Derivative Instruments and He_3
Derivative Instruments and Hedging Activities - Gain (Loss) on Derivatives (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 02, 2021 | Sep. 26, 2020 | Jun. 27, 2020 | Mar. 28, 2020 | Dec. 28, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||||
Revenue | $ 544,827 | $ 413,145 | $ 279,883 | $ 192,535 | $ 426,778 | $ 289,399 | $ 260,172 | $ 237,661 | $ 1,430,390 | $ 1,214,010 | $ 1,092,584 |
Cost of Goods and Services Sold | 760,161 | 670,083 | $ 537,156 | ||||||||
Other income, net | |||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||||
Gain (loss) recognized in income | (188) | 89 | |||||||||
Foreign currency forward contracts | Cash flow hedge | |||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||||
Effective portion, Gain (loss) recognized in OCI on Derivative | (18,504) | 16,483 | |||||||||
Foreign currency forward contracts | Revenue | Cash flow hedge | |||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||||
Effective portion, Gain (loss) reclassified from accumulated OCI into income | $ 4,783 | $ 1,889 | |||||||||
Derivatives designated as cash flow hedges: | Maximum | Cash flow hedge | |||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||||
Derivative, Term of Contract | 3 years |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 02, 2021 | Dec. 28, 2019 | |
Liabilities: | ||
Equity securities, unrealized gain | $ 1,000 | |
Marketable equity securities | ||
Assets: | ||
Marketable securities, cost | 46,578 | $ 0 |
Marketable equity securities | 0 | |
Corporate and government bonds | ||
Assets: | ||
Corporate and government bonds, cost | 3,498 | 17,016 |
Recurring | Level 1 | ||
Assets: | ||
Corporate and government bonds | 0 | 0 |
Derivative instruments (Note 9) | 0 | 0 |
Total assets measured at fair value | 95,105 | 0 |
Liabilities: | ||
Derivative instruments (Note 9) | 0 | 0 |
Total liabilities measured at fair value | 0 | 0 |
Recurring | Level 1 | Marketable equity securities | ||
Assets: | ||
Marketable equity securities | 47,576 | |
Recurring | Level 1 | Money market funds | ||
Assets: | ||
Money market funds | 47,529 | |
Recurring | Level 2 | ||
Assets: | ||
Marketable equity securities | 0 | |
Corporate and government bonds | 3,505 | 17,032 |
Derivative instruments (Note 9) | 5,206 | 15,314 |
Total assets measured at fair value | 8,711 | 32,346 |
Liabilities: | ||
Derivative instruments (Note 9) | 12,822 | 758 |
Total liabilities measured at fair value | 12,822 | 758 |
Recurring | Level 2 | Money market funds | ||
Assets: | ||
Money market funds | 0 | |
Recurring | Level 3 | ||
Assets: | ||
Marketable equity securities | 0 | |
Corporate and government bonds | 0 | 0 |
Derivative instruments (Note 9) | 0 | 0 |
Total assets measured at fair value | 0 | 0 |
Liabilities: | ||
Derivative instruments (Note 9) | 0 | 0 |
Total liabilities measured at fair value | 0 | $ 0 |
Recurring | Level 3 | Money market funds | ||
Assets: | ||
Money market funds | $ 0 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Jun. 27, 2020USD ($)$ / sharesshares | Jan. 02, 2021USD ($)vote$ / sharesshares | Dec. 29, 2018USD ($)shares | Dec. 28, 2019$ / sharesshares | Feb. 27, 2018USD ($) | |
Equity [Abstract] | |||||
Preferred stock, shares authorized | 5,000,000 | 5,000,000 | |||
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | |||
Preferred stock, shares issued | 0 | 0 | |||
Preferred stock, shares outstanding | 0 | 0 | |||
Common stock, votes per share | vote | 1 | ||||
Stock repurchase program, authorized amount | $ | $ 25,000 | $ 200,000 | |||
Stock repurchases (in shares) | 663,602 | 799,000 | |||
Treasury Stock Acquired, Average Cost Per Share | $ / shares | $ 37.65 | ||||
Stock repurchases | $ | $ 25,000 | $ 25,000 | $ 50,000 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) $ in Thousands | May 21, 2020shares | Jan. 02, 2021USD ($)planshares | Dec. 28, 2019USD ($) | Dec. 29, 2018USD ($) | May 23, 2018shares |
Number of plans | plan | 3 | ||||
Number of additional shares authorized (in shares) | 745,000 | ||||
Number of shares available for grant | 1,562,092 | ||||
Share-based Payment Arrangement, Expense | $ | $ 29,975 | $ 23,744 | $ 25,804 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 2,495,000 | 1,750,000 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock Options Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 0 | 0 | 0 |
Document Period End Date | Jan. 2, 2021 | ||
Compensation not yet recognized, options | $ 10 | ||
Summary of stock option plan activity | |||
Number of Shares, Beginning Balance | 322,908 | 462,261 | 712,954 |
Number of Shares, Exercised | (88,292) | (127,024) | (239,830) |
Number of Shares, Canceled | (1,938) | (12,329) | (10,863) |
Number of Shares, Ending Balance | 232,678 | 322,908 | 462,261 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | |||
Weighted Average Exercise Price, Beginning Balance (in dollars per share) | $ 35.08 | $ 34.55 | $ 34.34 |
Weighted Average Exercise Price, Granted (in dollars per share) | 0 | 0 | 0 |
Weighted Average Exercise Price, Exercised (in dollars per share) | 31.40 | 32.95 | 33.40 |
Weighted Average Exercise Price, Canceled (in dollars per share) | 45.89 | 37.03 | 46.20 |
Weighted Average Exercise Price, Ending Balance (in dollars per share) | $ 36.39 | $ 35.08 | $ 34.55 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | |||
Number of Shares, Vested and expected to vest | 232,678 | ||
Number of Shares, Exercisable | 232,116 | ||
Weighted Average Exercise Price, Vested and expected to vest (in dollars per share) | $ 36.39 | ||
Weighted Average Exercise Price, Exercisable (in dollars per share) | $ 36.34 | ||
Weighted Average Remaining Contractual Term, Vested and expected to vest | 1 year 9 months | ||
Weighted Average Remaining Contractual Term, Ending Balance | 1 year 9 months | ||
Weighted Average Remaining Contractual Term, Exercisable | 1 year 9 months | ||
Aggregate Intrinsic Value, Ending Balance | $ 10,210 | ||
Aggregate Intrinsic Value, Vested and expected to vest | 10,210 | ||
Aggregate Intrinsic Value, Exercisable | $ 10,200 | ||
Share price (in dollars per share) | $ 80.29 | ||
Employee Stock Option | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average remaining recognition period | 2 months 4 days | ||
Employee Stock Option | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 4 years | ||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 5 years | ||
Employee Stock Option | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years | ||
Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Terms of Award | four year | ||
Weighted average remaining recognition period | 2 years 8 months 8 days |
Stock-Based Compensation - St_2
Stock-Based Compensation - Stock Options Assumptions (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options, exercises in period, intrinsic value | $ 2.6 | $ 8.9 | $ 14.9 |
Stock-Based Compensation - RSUs
Stock-Based Compensation - RSUs and PSUs (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Share price (in dollars per share) | $ 80.29 | ||
Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation cost not yet recognized | $ 49.4 | ||
Weighted average remaining recognition period | 2 years 8 months 8 days | ||
Activities relating to restricted stock awards | |||
Number of Shares Underlying Restricted Stock, Beginning Balance | 819,232 | 855,889 | 938,453 |
Number of Shares Underlying Restricted Stock, Granted | 493,908 | 407,325 | 307,614 |
Number of Shares Underlying Restricted Stock, Vested | (318,079) | (358,119) | (351,816) |
Number of Shares Underlying Restricted Stock, Forfeited | (101,028) | (85,863) | (38,362) |
Number of Shares Underlying Restricted Stock, Ending Balance | 894,033 | 819,232 | 855,889 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Weighted Average Grant Date Fair Value, Beginning Balance (in dollars per share) | $ 73.83 | $ 63.32 | $ 51.24 |
Weighted Average Grant Date Fair Value, Granted (in dollars per share) | 61.53 | 79.91 | 81.55 |
Weighted Average Grant Date Fair Value, Vested (in dollars per share) | 67.95 | 54.89 | 47.30 |
Weighted Average Grant Date Fair Value, Forfeited (in dollars per share) | 75.20 | 76.85 | 60.62 |
Weighted Average Grant Date Fair Value, Ending Balance (in dollars per share) | $ 68.97 | $ 73.83 | $ 63.32 |
Outstanding, aggregate intrinsic value | $ 71.8 | ||
Outstanding, weighted average remaining contractual term | 1 year 6 months 29 days | ||
Share-based Compensation Arrangement by Share-based Payment Award, Terms of Award | four year | ||
Performance Based Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation cost not yet recognized | $ 9.1 | ||
Weighted average remaining recognition period | 1 year 6 months | ||
Activities relating to restricted stock awards | |||
Number of Shares Underlying Restricted Stock, Beginning Balance | 216,231 | 274,119 | 242,061 |
Number of Shares Underlying Restricted Stock, Granted | 130,284 | 70,827 | 91,538 |
Number of Shares Underlying Restricted Stock, Vested | (71,734) | (78,943) | (56,259) |
Number of Shares Underlying Restricted Stock, Forfeited | (45,129) | (49,772) | (3,221) |
Number of Shares Underlying Restricted Stock, Ending Balance | 229,652 | 216,231 | 274,119 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Weighted Average Grant Date Fair Value, Beginning Balance (in dollars per share) | $ 78.42 | $ 54.10 | $ 43.97 |
Weighted Average Grant Date Fair Value, Granted (in dollars per share) | 46.77 | 122.20 | 68.41 |
Weighted Average Grant Date Fair Value, Vested (in dollars per share) | 61.44 | 33.33 | 34.30 |
Weighted Average Grant Date Fair Value, Forfeited (in dollars per share) | 75.17 | 78.29 | 45.71 |
Weighted Average Grant Date Fair Value, Ending Balance (in dollars per share) | $ 66.41 | $ 78.42 | $ 54.10 |
Outstanding, aggregate intrinsic value | $ 18.4 | ||
Outstanding, weighted average remaining contractual term | 1 year 6 months | ||
Performance Based Restricted Stock Units | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting rights percentage | 0.00% | ||
Performance Based Restricted Stock Units | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting rights percentage | 200.00% |
Stock-Based Compensation - ESPP
Stock-Based Compensation - ESPP (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||
May 31, 2017 | Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Maximum percentage of salary | 15.00% | |||
Maximum dollar amount | $ 4,000 | |||
Maximum number of shares per employee | 1,000 | |||
Number of shares available for grant | 1,562,092 | |||
Purchase price of common stock percent | 85.00% | |||
Employee Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares available for grant | 508,667 | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount | $ 1,000,000 | $ 1,100,000 | $ 1,000,000 |
Stock-Based Compensation Stock
Stock-Based Compensation Stock comp expense classification (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | |
Share-based Payment Arrangement, Expense | $ 29,975 | $ 23,744 | $ 25,804 |
Share-based Payment Arrangement, Noncash Expense | 29,975 | 23,744 | 25,804 |
Cost of revenue | |||
Share-based Payment Arrangement, Expense | 1,511 | 1,486 | 1,407 |
Research and Development Expense [Member] | |||
Share-based Payment Arrangement, Expense | 10,655 | 9,186 | 7,494 |
Selling and Marketing Expense [Member] | |||
Share-based Payment Arrangement, Expense | 3,700 | 3,323 | 2,842 |
General and Administrative Expense [Member] | |||
Share-based Payment Arrangement, Expense | $ 14,109 | $ 9,749 | $ 14,061 |
Commitments and Contingencies_2
Commitments and Contingencies (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 02, 2021 | Dec. 28, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Rental expense under operating leases | $ 12,946 | $ 12,873 |
Summary of future minimum rental payments under operating leases | ||
Contractual Obligation | $ 341,900 |
Commitments and Contingencies_3
Commitments and Contingencies (Details 1) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | |
Activity related to the warranty accrual | |||
Balance at beginning of period | $ 13,856 | $ 11,964 | $ 11,264 |
Provision | 28,884 | 14,091 | 10,798 |
Warranty usage | (18,348) | (12,199) | (10,098) |
Balance at end of period | $ 24,392 | $ 13,856 | $ 11,964 |
Employee Benefits (Details)
Employee Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | |
Retirement Benefits [Abstract] | |||
Defined Contribution Plan, Cost | $ 3 | $ 2.9 | $ 2.8 |
Defined Contribution Plan, Employer Matching Contribution, Percent of Match | 50.00% | ||
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay | 6.00% | ||
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Percent | 3.00% |
Income Taxes - Income (Loss) Be
Income Taxes - Income (Loss) Before Provision For Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ 166,973 | $ 84,225 | $ 113,078 |
Foreign | 20,942 | 14,608 | (4,456) |
Income before income taxes | $ 187,915 | $ 98,833 | $ 108,622 |
Income Taxes - Components of In
Income Taxes - Components of Income Tax Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | |
Current | |||
Federal | $ 13,593 | $ 13,366 | $ 17,627 |
State | 2,724 | 5,004 | 3,676 |
Foreign | 10,451 | 6,941 | 10,732 |
Total current income tax provision | 26,768 | 25,311 | 32,035 |
Deferred | |||
Federal | 14,695 | (9,345) | (2,475) |
State | 2,552 | (1,783) | (1,149) |
Foreign | (3,168) | (650) | (7,781) |
Total deferred income tax provision | 14,079 | (11,778) | (11,405) |
Total income tax provision | $ 40,847 | $ 13,533 | $ 20,630 |
Income Taxes - Effective Income
Income Taxes - Effective Income Tax Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | |
Reconciliation of the expected tax (benefit) expense | |||
Statutory federal income tax | $ 39,462 | $ 20,755 | $ 22,812 |
State taxes (net of federal benefit) | 4,834 | 3,999 | 4,312 |
Federal and state credits | (6,702) | (8,152) | (5,638) |
Excess tax expense (benefits) relating to stock-based compensation | 313 | (6,468) | (6,529) |
Tax Cuts and Jobs Act of 2017 | 0 | 0 | 2,127 |
Foreign-derived intangible income deduction | (3,360) | (4,180) | 2,678 |
EMEA business restructuring | 0 | 0 | 2,292 |
Executive compensation | 718 | 2,081 | 745 |
Tax impact of foreign earnings | 1,458 | 1,986 | 1,336 |
Change in valuation allowance | 3,817 | 2,678 | 348 |
Unrecognized Tax Benefits, Decrease Resulting from Prior Period Tax Positions | (768) | ||
Other | 307 | 834 | 1,503 |
Total income tax provision | $ 40,847 | $ 13,533 | $ 20,630 |
Income Taxes - Net Deferred Tax
Income Taxes - Net Deferred Tax Assets (Details) - USD ($) $ in Thousands | Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 |
Deferred tax assets | |||
Revenue reserves | $ 20,564 | $ 21,355 | |
Accruals and other liabilities | 14,357 | 8,225 | |
Operating lease liabilities | 12,429 | 14,117 | |
Tax credits and net operating loss carryforwards | 12,748 | 8,814 | |
Stock-based compensation | 4,868 | 4,981 | |
Other | 3,793 | 5,068 | |
Gross deferred tax assets | 68,759 | 62,560 | |
Valuation allowance | (7,643) | (3,826) | $ (1,100) |
Total deferred tax assets | 61,116 | 58,734 | |
Deferred tax liabilities | |||
Intangible assets | 3,341 | 3,838 | |
Operating lease right-of-use assets | 11,443 | 13,249 | |
Marketable equity securities | 10,676 | 0 | |
Other | 2,957 | 768 | |
Total deferred tax liabilities | 28,417 | 17,855 | |
Net deferred tax assets | $ 32,699 | $ 40,879 |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | |
Company's adjustments to its uncertain tax position | |||
Balance at beginning of period | $ 7,121 | $ 7,119 | $ 4,590 |
Increase for tax positions related to the current year | 765 | 770 | 2,891 |
Increase for tax positions related to acquisition | 0 | 0 | 1,493 |
Increase (decrease) for tax positions related to prior years | (768) | ||
Increase for tax positions related to prior years | 1,231 | 407 | |
Decrease for settlements with applicable taxing authorities | 0 | 0 | (2,262) |
Decrease for lapses of statute of limitations | (558) | 0 | 0 |
Balance at end of period | $ 8,559 | $ 7,121 | $ 7,119 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) | Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 |
Tax Credit Carryforward [Line Items] | |||
Operating loss carryforwards | $ 1,700,000 | $ 3,500,000 | |
Valuation allowance | 7,643,000 | 3,826,000 | $ 1,100,000 |
Income tax penalties and interest accrued | 0 | 0 | $ 0 |
Unrecognized tax benefits that would impact effective tax rate | 9,500,000 | ||
State and Local Jurisdiction | |||
Tax Credit Carryforward [Line Items] | |||
Tax credit carryforward | $ 16,300,000 | $ 13,100,000 |
Industry Segment, Geographic _3
Industry Segment, Geographic Information and Significant Customers (Details Textual) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 02, 2021USD ($) | Sep. 26, 2020USD ($) | Jun. 27, 2020USD ($) | Mar. 28, 2020USD ($) | Dec. 28, 2019USD ($) | Sep. 28, 2019USD ($) | Jun. 29, 2019USD ($) | Mar. 30, 2019USD ($) | Jan. 02, 2021USD ($)segment | Dec. 28, 2019USD ($) | Dec. 29, 2018USD ($) | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Number of operating segments | segment | 1 | ||||||||||
Revenue | $ 544,827 | $ 413,145 | $ 279,883 | $ 192,535 | $ 426,778 | $ 289,399 | $ 260,172 | $ 237,661 | $ 1,430,390 | $ 1,214,010 | $ 1,092,584 |
Customer Concentration Risk | Revenue | Amazon [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Concentration risk percentage | 22.70% | 21.30% | 17.30% | ||||||||
Non-US [Member] | Geographic Concentration Risk | Revenue | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Concentration risk percentage | 47.90% | 50.30% | 48.70% | ||||||||
Domestic Destination [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue | $ 744,648 | $ 603,618 | $ 560,995 | ||||||||
Geographic Distribution, Foreign [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenue | $ 685,742 | $ 610,392 | $ 531,589 |
Quarterly Information (Unaudi_3
Quarterly Information (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 02, 2021 | Sep. 26, 2020 | Jun. 27, 2020 | Mar. 28, 2020 | Dec. 28, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenue | $ 544,827 | $ 413,145 | $ 279,883 | $ 192,535 | $ 426,778 | $ 289,399 | $ 260,172 | $ 237,661 | $ 1,430,390 | $ 1,214,010 | $ 1,092,584 |
Details of Quarterly Information (Unaudited) | |||||||||||
Gross profit | 215,421 | 198,841 | 178,012 | 77,955 | 169,370 | 136,841 | 118,170 | 119,546 | 670,229 | 543,927 | 555,428 |
Net income (loss) | $ 13,335 | $ 93,252 | $ 58,616 | $ (18,135) | $ 20,041 | $ 35,532 | $ 7,207 | $ 22,520 | $ 147,068 | $ 85,300 | $ 87,992 |
Diluted | $ 0.46 | $ 3.27 | $ 2.07 | $ (0.64) | $ 0.70 | $ 1.24 | $ 0.25 | $ 0.78 | $ 5.14 | $ 2.97 | $ 3.07 |
Maturity of Operating Lease Lia
Maturity of Operating Lease Liability (Details) (Details) $ in Thousands | Jan. 02, 2021USD ($) |
Leases [Abstract] | |
Lessee, Operating Lease, Liability, Payments, Due Next Twelve Months | $ 8,226 |