Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Apr. 03, 2021 | Apr. 30, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Period End Date | Apr. 3, 2021 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Central Index Key | 0001159167 | |
Entity File Number | 001-36414 | |
Entity Registrant Name | iROBOT CORPORATION | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 77-0259335 | |
Amendment Flag | false | |
Entity Address, Address Line One | 8 Crosby Drive | |
Entity Address, City or Town | Bedford | |
Entity Address, State or Province | MA | |
Entity Address, Postal Zip Code | 01730 | |
City Area Code | 781 | |
Local Phone Number | 430-3000 | |
Title of 12(b) Security | Common Stock, $0.01 par value | |
Trading Symbol | IRBT | |
Security Exchange Name | NASDAQ | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | --01-01 | |
Entity Shell Company | false | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 28,094,994 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Apr. 03, 2021 | Jan. 02, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 500,754 | $ 432,635 |
Short term investments | 0 | 51,081 |
Accounts receivable, net | 67,918 | 170,526 |
Inventory | 233,113 | 181,756 |
Other current assets | 41,369 | 45,223 |
Total current assets | 843,154 | 881,221 |
Property and equipment, net | 80,402 | 76,584 |
Operating lease right-of-use assets | 42,086 | 43,682 |
Deferred tax assets | 33,408 | 33,404 |
Goodwill | 123,273 | 125,872 |
Intangible assets, net | 9,312 | 9,902 |
Other assets | 26,256 | 19,063 |
Total assets | 1,157,891 | 1,189,728 |
Current liabilities: | ||
Accounts payable | 150,769 | 165,779 |
Accrued expenses | 105,810 | 131,388 |
Deferred revenue and customer advances | 7,294 | 10,400 |
Total current liabilities | 263,873 | 307,567 |
Operating lease liabilities | 48,738 | 50,485 |
Deferred tax liabilities | 584 | 705 |
Other long-term liabilities | 20,712 | 26,537 |
Total long-term liabilities | 70,034 | 77,727 |
Total liabilities | 333,907 | 385,294 |
Commitments and contingencies (Note 10) | ||
Preferred stock, 5,000 shares authorized and none outstanding | 0 | 0 |
Common stock, $0.01 par value, 100,000 shares authorized; 28,395 and 28,184 shares issued and outstanding, respectively | 284 | 282 |
Additional paid-in capital | 209,890 | 205,256 |
Retained earnings | 606,832 | 599,389 |
Accumulated other comprehensive income (loss) | 6,978 | (493) |
Total stockholders’ equity | 823,984 | 804,434 |
Total liabilities and stockholders’ equity | $ 1,157,891 | $ 1,189,728 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Common stock, shares outstanding | 28,395,000 | 28,184,000 |
Common stock, shares issued | 28,395,000 | 28,184,000 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, par value | $ 0.01 | $ 0.01 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Unaudited) (Parenthetical) - shares | Apr. 03, 2021 | Jan. 02, 2021 |
Preferred stock, shares outstanding | 0 | 0 |
Consolidated Statements of Inco
Consolidated Statements of Income Statement - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Apr. 03, 2021 | Mar. 28, 2020 | |
Revenue | $ 303,261 | $ 192,535 |
Cost of product revenue | 180,092 | 114,295 |
Amortization of acquired intangible assets | 225 | 285 |
Total cost of revenue | 180,317 | 114,580 |
Gross profit | 122,944 | 77,955 |
Research and development | 41,920 | 36,759 |
Selling and marketing | 50,990 | 36,594 |
General and administrative | 23,440 | 24,573 |
Amortization of acquired intangible assets | 205 | 254 |
Total operating expenses | 116,555 | 98,180 |
Operating income (loss) | 6,389 | (20,225) |
Other expense, net | (160) | (19) |
Income (loss) before income taxes | 6,229 | (20,244) |
Income tax benefit | (1,214) | (2,109) |
Net income (loss) | $ 7,443 | $ (18,135) |
Basic | $ 0.26 | $ (0.64) |
Diluted | $ 0.26 | $ (0.64) |
Basic | 28,257 | 28,297 |
Diluted | 29,086 | 28,297 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 03, 2021 | Mar. 28, 2020 | |
Net income (loss) | $ 7,443 | $ (18,135) |
Other comprehensive income (loss): | ||
Net foreign currency translation adjustments | (5,883) | (914) |
Net unrealized gains on cash flow hedges, net of tax | 12,967 | 5,674 |
Net losses (gains) on cash flow hedge reclassified into earnings, net of tax | 391 | (1,468) |
Net unrealized losses on marketable securities, net of tax | (4) | (17) |
Total comprehensive income (loss) | $ 14,914 | $ (14,860) |
Consolidated Statement of Share
Consolidated Statement of Shareholders' Equity Statement - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] |
Beginning Balance, Shares | 28,352,000 | ||||
Beginning balance | $ 652,069 | $ 284 | $ 196,455 | $ 452,321 | $ 3,009 |
Issuance of common stock under employee stock plans (in shares) | 934,000 | 40,000 | |||
Stock Issued During Period, Value, Stock Options Exercised | $ 0 | 934 | |||
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures (in shares) | 193,000 | ||||
Stock Issued During Period, Value, Restricted Stock Award, Net of Forfeitures | $ 0 | $ 2 | (2) | ||
APIC, Share-based Payment Arrangement, Increase for Cost Recognition | 5,191 | 5,191 | |||
Shares Paid for Tax Withholding for Share Based Compensation (in shares) | (45,000) | ||||
Stock Withheld to Cover Tax Withholding Requirements Upon Vesting to Restricted Stock Units Amount | (1,816) | $ 0 | (1,816) | ||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | 3,275 | ||||
Adjustments to Additional Paid in Capital Directors Deferred Compensation | 21 | 21 | |||
Net income (loss) | (18,135) | (18,135) | |||
Stock repurchased and retired during period (in shares) | (664,000) | ||||
Value of stock repurchased | (25,000) | $ (7) | (24,993) | ||
Beginning Balance, Shares | 27,876,000 | ||||
Beginning balance | $ 616,539 | $ 279 | 175,790 | 434,186 | 6,284 |
Beginning Balance, Shares | 28,184,000 | 28,184,000 | |||
Beginning balance | $ 804,434 | $ 282 | 205,256 | 599,389 | (493) |
Issuance of common stock under employee stock plans (in shares) | 67,000 | ||||
Stock Issued During Period, Value, Stock Options Exercised | 2,589 | $ 1 | 2,588 | ||
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures (in shares) | 185,000 | ||||
Stock Issued During Period, Value, Restricted Stock Award, Net of Forfeitures | 0 | $ 2 | (2) | ||
APIC, Share-based Payment Arrangement, Increase for Cost Recognition | 6,782 | 6,782 | |||
Shares Paid for Tax Withholding for Share Based Compensation (in shares) | (41,000) | ||||
Stock Withheld to Cover Tax Withholding Requirements Upon Vesting to Restricted Stock Units Amount | (4,756) | $ (1) | (4,755) | ||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | 7,471 | 7,471 | |||
Adjustments to Additional Paid in Capital Directors Deferred Compensation | 21 | 21 | |||
Net income (loss) | $ 7,443 | 7,443 | |||
Beginning Balance, Shares | 28,395,000 | 28,395,000 | |||
Beginning balance | $ 823,984 | $ 284 | $ 209,890 | $ 606,832 | $ 6,978 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 03, 2021 | Mar. 28, 2020 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 7,443 | $ (18,135) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation and amortization | 7,501 | 7,459 |
Stock-based compensation | 6,782 | 5,191 |
Deferred income taxes, net | (95) | (528) |
Other | 1,582 | 1,531 |
Changes in operating assets and liabilities — (use) source | ||
Accounts receivable | 101,459 | 108,825 |
Inventory | (51,443) | 9,848 |
Other assets | 3,425 | (5,612) |
Accounts payable | (15,438) | (41,440) |
Accrued expenses and other liabilities | (32,522) | (26,405) |
Net cash provided by operating activities | 28,694 | 40,734 |
Cash flows from investing activities: | ||
Additions of property and equipment | (11,272) | (7,310) |
Purchases of investments | (8,664) | (1,560) |
Sales and maturities of investments | 63,644 | 3,500 |
Net cash provided by (used in) investing activities | 43,708 | (5,370) |
Cash flows from financing activities: | ||
Proceeds from employee stock plans | 2,589 | 934 |
Income tax withholding payment associated with restricted stock vesting | (4,756) | (1,816) |
Stock repurchases | 0 | 25,000 |
Net cash used in financing activities | (2,167) | (25,882) |
Effect of exchange rate changes on cash and cash equivalents | (2,116) | (106) |
Net increase in cash and cash equivalents | 68,119 | 9,376 |
Cash and cash equivalents, at beginning of period | 432,635 | 239,392 |
Cash and cash equivalents, at end of period | $ 500,754 | $ 248,768 |
Description of Business
Description of Business | 3 Months Ended |
Apr. 03, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business | Description of BusinessiRobot Corporation ("iRobot" or the "Company") designs and builds robots that empower people to do more. iRobot's consumer robots help people find smarter ways to clean and accomplish more in their daily lives. The Company's portfolio of floor cleaning robots features proprietary technologies for the connected home and advanced concepts in cleaning, mapping and navigation, human-robot interaction and physical solutions. Leveraging this portfolio, the Company's engineers are building an ecosystem of robots to help realize the smart home's potential. The Company’s revenue is primarily generated from product sales 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. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Apr. 03, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies 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 unaudited consolidated financial statements in conformity with accounting principles generally accepted in the United States of America ("GAAP"). In the opinion of management, all adjustments necessary to the unaudited interim consolidated financial statements have been made to state fairly the Company's financial position. Interim results are not necessarily indicative of results for the full fiscal year or any future periods. The information included in this Form 10-Q should be read in conjunction with the Company's audited consolidated financial statements and notes thereto included in its Annual Report on Form 10-K for the fiscal year ended January 2, 2021, filed with the Securities and Exchange Commission on February 16, 2021. 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. Recently Adopted Accounting Standards In December 2019, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("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 adopted the standard in the first quarter of 2021 and the adoption had no impact on the Company's consolidated financial statements. Recently Issued Accounting Standards From time to time, new accounting pronouncements are issued by FASB that are adopted by the Company as of the specified effective date. Unless otherwise discussed, the Company believes that recently issued standards, which are not yet effective, will not have a material impact on the Company’s consolidated financial statements upon adoption. 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. As of April 3, 2021, the impact of the COVID-19 pandemic remains dynamic and the nature and extent of its full impact on the Company's financial and operational results will depend on several factors, including but not limited to, the duration and severity of the pandemic, advances in treatment and prevention, as well as the macroeconomic impact resulting from global responses to slow the spread of the pandemic. As a result, certain of our estimates and assumptions, including the allowance for credit losses and the valuation of non-marketable equity securities, including our impairment assessment, require increased judgment and carry a higher degree of variability and volatility, which could result in material changes to our estimates in future periods. Credit Losses The 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. The Company recorded its estimate of credit losses, resulting in a decrease to the reserve and bad debt expense, of $2.1 million during the three months ended April 3, 2021. As of April 3, 2021 and January 2, 2021, the Company had an allowance for credit losses of $2.7 million and $4.8 million, respectively. 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 April 3, 2021 and January 2, 2021. 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 April 3, 2021 and January 2, 2021, the Company's equity securities without readily determinable fair values totaled $17.5 million and $17.4 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 second quarter of 2020. The Teladoc shares received were subject to time based contractual sales restrictions which expired in January 2021. These shares were 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 three months ended April 3, 2021, the Company received net proceeds of $51.5 million related to the sale of Teladoc shares with gross proceeds of $60.1 million, net of settlement payment of $8.6 million for the related economic hedge. Net Income Per Share Basic 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. The following table presents the calculation of both basic and diluted net income (loss) per share (in thousands, except per share amounts): Three Months Ended April 3, 2021 March 28, 2020 Net income (loss) $ 7,443 $ (18,135) Basic weighted-average common shares outstanding 28,257 28,297 Dilutive effect of employee stock awards 829 — Diluted weighted-average common shares outstanding 29,086 28,297 Net income (loss) per share - Basic $ 0.26 $ (0.64) Net income (loss) per share - Diluted $ 0.26 $ (0.64) |
Revenue Recognition (Notes)
Revenue Recognition (Notes) | 3 Months Ended |
Apr. 03, 2021 | |
Revenue Recognition and Deferred Revenue [Abstract] | |
Revenue from Contract with Customer [Text Block] | 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 April 3, 2021 and January 2, 2021 was $13.1 million and $11.5 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 online 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 April 3, 2021, the Company has reserves for product returns of $51.8 million and other credits and incentives of $78.3 million. As of January 2, 2021, the Company had reserves for product returns of $64.3 million and other credits and incentives of $142.2 million. Revenue recognized during the three months ended April 3, 2021 and March 28, 2020 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): Three Months Ended April 3, 2021 March 28, 2020 United States $ 114,772 $ 81,967 EMEA 116,233 66,659 Japan 40,575 26,464 Other 31,681 17,445 Total revenue $ 303,261 $ 192,535 Contract Balances The following table provides information about receivables and contract liabilities from contracts with customers (in thousands): April 3, 2021 January 2, 2021 Accounts receivable, net $ 67,918 $ 170,526 Contract liabilities 14,986 17,700 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 three months ended April 3, 2021 and March 28, 2020, the Company recognize d $7.3 million an |
Leases (Notes)
Leases (Notes) | 3 Months Ended |
Apr. 03, 2021 | |
Leases [Abstract] | |
Lessee, Operating Leases [Text Block] | 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 April 3, 2021, the Company's weighted average discount rate wa s 3.57% , while the weighted average remaining lease term was 8.14 ye ars. The components of lease expense were as follows (in thousands): Three Months Ended April 3, 2021 March 28, 2020 Operating lease cost $ 1,987 $ 2,355 Variable lease cost 895 1,122 Total lease cost $ 2,882 $ 3,477 Supplemental cash flow information related to leases was as follows (in thousands): Three Months Ended April 3, 2021 March 28, 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 2,279 $ 2,021 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ — $ — Maturities of operating lease liabilities were as follows as of April 3, 2021 (in thousands): Remainder of 2021 $ 5,896 2022 8,590 2023 7,651 2024 6,595 2025 6,621 Thereafter 28,562 Total minimum lease payments $ 63,915 Less: imputed interest 8,955 Present value of future minimum lease payments $ 54,960 Less: current portion of operating lease liabilities (Note 6) 6,222 Long-term lease liabilities $ 48,738 |
Goodwill, Other Intangible Asse
Goodwill, Other Intangible Assets and Other Assets | 3 Months Ended |
Apr. 03, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill, Other Intangible Assets and Other Assets | Goodwill and Other Intangible Assets The following table summarizes the activity in the carrying amount of goodwill and intangible assets for the three months ended April 3, 2021 (in thousands): Goodwill Intangible assets Balance as of January 2, 2021 $ 125,872 $ 9,902 Amortization — (430) Effect of foreign currency translation (2,599) (160) Balance as of April 3, 2021 $ 123,273 $ 9,312 |
Accrued Expenses
Accrued Expenses | 3 Months Ended |
Apr. 03, 2021 | |
Accrued Liabilities, Current [Abstract] | |
Accrued Expenses | Accrued Expenses Accrued expenses consisted of the following at (in thousands): April 3, 2021 January 2, 2021 Accrued warranty $ 23,904 $ 24,392 Accrued manufacturing and logistics cost 19,374 20,093 Accrued compensation and benefits 17,452 17,635 Accrued bonus 6,817 31,523 Current portion of operating lease liabilities 6,222 6,315 Accrued income taxes 6,136 3,806 Accrued sales and other indirect taxes payable 5,631 15,480 Accrued other 20,274 12,144 $ 105,810 $ 131,388 |
Derivative Instruments (Notes)
Derivative Instruments (Notes) | 3 Months Ended |
Apr. 03, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities Disclosure [Text Block] | Derivative Instruments and Hedging Activities The Company operates internationally and, in the normal course of business, is exposed to fluctuations in foreign currency exchange rates. The foreign currency exposures typically arise from transactions denominated in currencies other than the functional currency of the Company's operations, primarily the British Pound, Canadian Dollar, Euro and Japanese Yen. The Company uses derivative instruments that are designated in cash flow hedge relationships to reduce or eliminate the effects of foreign exchange rate change on sales. These contracts typically have maturities o f three years or less. At April 3, 2021 and January 2, 2021, the Company had outstanding cash flow hedges with a total notional value of $397.8 million and $431.9 million, respectively. The Company also enters into economic hedges that are not designated as hedges from an accounting standpoint to reduce or eliminate the effects of foreign exchange rate changes typically related to short term trade receivables and payables. These contracts typically have maturities of twelve months or less. At April 3, 2021 and January 2, 2021, the Company had outstanding foreign currency economic hedges with a total notional value of $140.5 million a nd $192.2 million, respectively. As described in Note 2, during July 2020, the Company entered into a forward sale contract as an economic hedge to reduce the Company's exposure to stock price fluctuations on one of its marketable equity securities. The contract had a maturity date of January 2021 and was settled during the three months ended April 3, 2021. The total notional value of this economic hedge was $51.5 million at January 2, 2021. The fair values of derivative instruments are as follows (in thousands): Fair Value Classification April 3, 2021 January 2, 2021 Derivatives not designated as hedging instruments: Foreign currency forward contracts Other current assets $ 1,258 $ 261 Foreign currency forward contracts Accrued expenses 764 2,176 Forward sale contract Accrued expenses — 3,904 Derivatives designated as cash flow hedges: Foreign currency forward contracts Other current assets $ 6,073 $ 362 Foreign currency forward contracts Other assets 5,750 679 Foreign currency forward contracts Accrued expenses 1,124 2,092 Foreign currency forward contracts Long-term liabilities 2,633 8,554 Gains (losses) associated with derivative instruments not designated as hedging instruments are as follows (in thousands): Three Months Ended Classification April 3, 2021 March 28, 2020 Loss recognized in income Other expense, net $ (10,013) $ (545) The following tables reflect the effect of derivatives designated as cash flow hedging (in thousands): Gain (loss) recognized in OCI on Derivative (1) Three Months Ended April 3, 2021 March 28, 2020 Foreign currency forward contracts $ 17,154 $ 7,566 (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 Three Months Ended April 3, 2021 March 28, 2020 Revenue Consolidated statements of operations in which the effects of cash flow hedging instruments are recorded $ 303,261 $ 192,535 (Loss) gain on cash flow hedging relationships: Foreign currency forward contracts: Amount of (loss) gain reclassified from AOCI into earnings $ (517) $ 1,957 |
Fair Value Measurements (Notes)
Fair Value Measurements (Notes) | 3 Months Ended |
Apr. 03, 2021 | |
Fair Value Footnote [Abstract] | |
Fair Value Disclosures [Text Block] | 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 Level 1 Level 2 (1) Level 3 Assets: Money market funds $ 338,868 $ — $ — Derivative instruments (Note 7) — 13,081 — Total assets measured at fair value $ 338,868 $ 13,081 $ — Liabilities: Derivative instruments (Note 7) $ — $ 4,521 $ — Total liabilities measured at fair value $ — $ 4,521 $ — Fair Value Measurements as of Level 1 Level 2 (1) Level 3 Assets: Money market funds $ 47,529 $ — $ — Marketable equity securities, $46,578 at cost 47,576 — — Corporate and government bonds, $3,498 at cost — 3,505 — Derivative instruments (Note 7) — 5,206 — Total assets measured at fair value $ 95,105 $ 8,711 $ — Liabilities: Derivative instruments (Note 7) $ — $ 12,822 $ — Total liabilities measured at fair value $ — $ 12,822 $ — (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. |
Stockholders Equity (Notes)
Stockholders Equity (Notes) | 3 Months Ended |
Apr. 03, 2021 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders' Equity 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 5, 2021. On March 11, 2021, the Company entered into a Rule 10b5-1 plan to repurchase $50.0 million of common stock in the aggregate beginning April 12, 2021 and ending September 5, 2021. The Company repurchased 446,954 shares of its common stock at an average price of $111.85, totaling $50.0 million during the second quarter of 2021. As of May 6, 2021, $125.0 million remained available for future repurchases under the program. 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 | 3 Months Ended |
Apr. 03, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 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. On March 15, 2021, the Court granted the Company’s motion to dismiss and therefore dismissed the Securities Class Action. 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. On May 4, 2021, the parties filed a joint stipulation with the U.S. District Court for the District of Massachusetts seeking dismissal of this case. 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 April 3, 2021 and January 2, 2021, 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 6) in the accompanying consolidated balance sheets. Activity related to the warranty accrual was as follows (in thousands): Three Months Ended April 3, 2021 March 28, 2020 Balance at beginning of period $ 24,392 $ 13,856 Provision 10,185 4,475 Warranty usage (10,673) (4,333) Balance at end of period $ 23,904 $ 13,998 |
Income Taxes (Notes)
Income Taxes (Notes) | 3 Months Ended |
Apr. 03, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | Income Taxes The Company’s effective income tax rate for the three months ended April 3, 2021 and March 28, 2020, was (19.5)% and 10.4%, respectively. The change in the effective income tax rate was primarily due to the recognition of a discrete tax benefit related to stock-based compensation during the period compared to a discrete tax expense during prior year. The Company's effective income tax rate of (19.5)% for the three months ended April 3, 2021 differed from the federal statutory tax rate of 21% primarily due to the recognition of a discrete tax benefit related to stock-based compensation. |
Industry Segment, Geographic In
Industry Segment, Geographic Information and Significant Customers | 3 Months Ended |
Apr. 03, 2021 | |
Segment Reporting [Abstract] | |
Industry Segment, Geographic Information and Significant Customers | Industry Segment, Geographic Information and Significant Customers The Company operates as one operating segment. The Company's consumer robots products 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. Significant Customers For the three months ended April 3, 2021 and March 28, 2020, the Company generated 17.0% and 13.4% of total revenue, respectively, from one of its retailers. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Apr. 03, 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 unaudited consolidated financial statements in conformity with accounting principles generally accepted in the United States of America ("GAAP"). In the opinion of management, all adjustments necessary to the unaudited interim consolidated financial statements have been made to state fairly the Company's financial position. Interim results are not necessarily indicative of results for the full fiscal year or any future periods. The information included in this Form 10-Q should be read in conjunction with the Company's audited consolidated financial statements and notes thereto included in its Annual Report on Form 10-K for the fiscal year ended January 2, 2021, filed with the Securities and Exchange Commission on February 16, 2021. |
Recent Accounting Pronouncements | Recently Adopted Accounting Standards In December 2019, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("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 adopted the standard in the first quarter of 2021 and the adoption had no impact on the Company's consolidated financial statements. Recently Issued Accounting Standards From time to time, new accounting pronouncements are issued by FASB that are adopted by the Company as of the specified effective date. Unless otherwise discussed, the Company believes that recently issued standards, which are not yet effective, will not have a material impact on the Company’s consolidated financial statements upon adoption. |
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. As of April 3, 2021, the impact of the COVID-19 pandemic remains dynamic and the nature and extent of its full impact on the Company's financial and operational results will depend on several factors, including but not limited to, the duration and severity of the pandemic, advances in treatment and prevention, as well as the macroeconomic impact resulting from global responses to slow the spread of the pandemic. As a result, certain of our estimates and assumptions, including the allowance for credit losses and the valuation of non-marketable equity securities, including our impairment assessment, require increased |
Credit Losses | Credit Losses The 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. The Company recorded its estimate of credit losses, resulting in a decrease to the reserve and bad debt expense, of $2.1 million during the three months ended April 3, 2021. As of April 3, 2021 and January 2, 2021, the Company had an allowance for credit losses of $2.7 million and $4.8 million, respectively. |
Inventory, Policy | 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 April 3, 2021 and January 2, 2021. |
Investment, Policy [Policy Text Block] | 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 April 3, 2021 and January 2, 2021, the Company's equity securities without readily determinable fair values totaled $17.5 million and $17.4 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 second quarter of 2020. The Teladoc shares received were subject to time based contractual sales restrictions which expired in January 2021. These shares were 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 three months ended April 3, 2021, the Company received net proceeds of $51.5 million related to the sale of Teladoc shares with gross proceeds of $60.1 million, net of settlement payment of $8.6 million for the related economic hedge. |
Net Income Per Share | Net Income Per Share Basic 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. The following table presents the calculation of both basic and diluted net income (loss) per share (in thousands, except per share amounts): Three Months Ended April 3, 2021 March 28, 2020 Net income (loss) $ 7,443 $ (18,135) Basic weighted-average common shares outstanding 28,257 28,297 Dilutive effect of employee stock awards 829 — Diluted weighted-average common shares outstanding 29,086 28,297 Net income (loss) per share - Basic $ 0.26 $ (0.64) Net income (loss) per share - Diluted $ 0.26 $ (0.64) |
Fiscal Period, Policy | 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. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Apr. 03, 2021 | |
Accounting Policies [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table presents the calculation of both basic and diluted net income (loss) per share (in thousands, except per share amounts): Three Months Ended April 3, 2021 March 28, 2020 Net income (loss) $ 7,443 $ (18,135) Basic weighted-average common shares outstanding 28,257 28,297 Dilutive effect of employee stock awards 829 — Diluted weighted-average common shares outstanding 29,086 28,297 Net income (loss) per share - Basic $ 0.26 $ (0.64) Net income (loss) per share - Diluted $ 0.26 $ (0.64) |
Revenue Recognition Disaggregat
Revenue Recognition Disaggregation of Revenue (Tables) | 3 Months Ended |
Apr. 03, 2021 | |
Revenue Recognition and Deferred Revenue [Abstract] | |
Disaggregation of Revenue [Table Text Block] | Disaggregation of Revenue The following table provides information about disaggregated revenue by geographical region (in thousands): Three Months Ended April 3, 2021 March 28, 2020 United States $ 114,772 $ 81,967 EMEA 116,233 66,659 Japan 40,575 26,464 Other 31,681 17,445 Total revenue $ 303,261 $ 192,535 |
Revenue Recognition Contract Ba
Revenue Recognition Contract Balances (Tables) | 3 Months Ended |
Apr. 03, 2021 | |
Revenue Recognition and Deferred Revenue [Abstract] | |
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): April 3, 2021 January 2, 2021 Accounts receivable, net $ 67,918 $ 170,526 Contract liabilities 14,986 17,700 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 three months ended April 3, 2021 and March 28, 2020, the Company recognize d $7.3 million an |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Apr. 03, 2021 | |
Leases [Abstract] | |
Lease, Cost [Table Text Block] | The components of lease expense were as follows (in thousands): Three Months Ended April 3, 2021 March 28, 2020 Operating lease cost $ 1,987 $ 2,355 Variable lease cost 895 1,122 Total lease cost $ 2,882 $ 3,477 |
Schedule of Leases, Supplemental Cash Flow [Table Text Block] | Supplemental cash flow information related to leases was as follows (in thousands): Three Months Ended April 3, 2021 March 28, 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 2,279 $ 2,021 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ — $ — |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | Maturities of operating lease liabilities were as follows as of April 3, 2021 (in thousands): Remainder of 2021 $ 5,896 2022 8,590 2023 7,651 2024 6,595 2025 6,621 Thereafter 28,562 Total minimum lease payments $ 63,915 Less: imputed interest 8,955 Present value of future minimum lease payments $ 54,960 Less: current portion of operating lease liabilities (Note 6) 6,222 Long-term lease liabilities $ 48,738 |
Goodwill, Other Intangible As_2
Goodwill, Other Intangible Assets and Other Assets (Tables) | 3 Months Ended |
Apr. 03, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill [Table Text Block] | The following table summarizes the activity in the carrying amount of goodwill and intangible assets for the three months ended April 3, 2021 (in thousands): Goodwill Intangible assets Balance as of January 2, 2021 $ 125,872 $ 9,902 Amortization — (430) Effect of foreign currency translation (2,599) (160) Balance as of April 3, 2021 $ 123,273 $ 9,312 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 3 Months Ended |
Apr. 03, 2021 | |
Accrued Liabilities, Current [Abstract] | |
Components of Accrued Expenses | April 3, 2021 January 2, 2021 Accrued warranty $ 23,904 $ 24,392 Accrued manufacturing and logistics cost 19,374 20,093 Accrued compensation and benefits 17,452 17,635 Accrued bonus 6,817 31,523 Current portion of operating lease liabilities 6,222 6,315 Accrued income taxes 6,136 3,806 Accrued sales and other indirect taxes payable 5,631 15,480 Accrued other 20,274 12,144 $ 105,810 $ 131,388 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 3 Months Ended |
Apr. 03, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments [Table Text Block] | The fair values of derivative instruments are as follows (in thousands): Fair Value Classification April 3, 2021 January 2, 2021 Derivatives not designated as hedging instruments: Foreign currency forward contracts Other current assets $ 1,258 $ 261 Foreign currency forward contracts Accrued expenses 764 2,176 Forward sale contract Accrued expenses — 3,904 Derivatives designated as cash flow hedges: Foreign currency forward contracts Other current assets $ 6,073 $ 362 Foreign currency forward contracts Other assets 5,750 679 Foreign currency forward contracts Accrued expenses 1,124 2,092 Foreign currency forward contracts Long-term liabilities 2,633 8,554 |
Derivative Instruments, Gain (Loss) [Table Text Block] | Gains (losses) associated with derivative instruments not designated as hedging instruments are as follows (in thousands): Three Months Ended Classification April 3, 2021 March 28, 2020 Loss recognized in income Other expense, net $ (10,013) $ (545) Gain (loss) recognized in earnings on cash flow hedging instruments Three Months Ended April 3, 2021 March 28, 2020 Revenue Consolidated statements of operations in which the effects of cash flow hedging instruments are recorded $ 303,261 $ 192,535 (Loss) gain on cash flow hedging relationships: Foreign currency forward contracts: Amount of (loss) gain reclassified from AOCI into earnings $ (517) $ 1,957 |
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) [Table Text Block] | The following tables reflect the effect of derivatives designated as cash flow hedging (in thousands): Gain (loss) recognized in OCI on Derivative (1) Three Months Ended April 3, 2021 March 28, 2020 Foreign currency forward contracts $ 17,154 $ 7,566 (1) The amount represents the change in fair value of derivative contracts due to changes in spot rates. |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Apr. 03, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Activity Related to the Warranty Accrual | Activity related to the warranty accrual was as follows (in thousands): Three Months Ended April 3, 2021 March 28, 2020 Balance at beginning of period $ 24,392 $ 13,856 Provision 10,185 4,475 Warranty usage (10,673) (4,333) Balance at end of period $ 23,904 $ 13,998 |
Industry Segment, Geographic _2
Industry Segment, Geographic Information and Significant Customers (Tables) | 3 Months Ended |
Apr. 03, 2021 | |
Segment Reporting [Abstract] | |
Segment Information about Revenue, Cost of Revenue, Gross Margin and Income before Income Taxes | The Company operates as one operating segment. |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies Credit Losses (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 03, 2021 | Jan. 02, 2021 | |
Credit Loss [Abstract] | ||
Financing Receivable, Allowance for Credit Loss, Period Increase (Decrease) | $ 2.1 | |
Financing Receivable, Allowance for Credit Loss | $ 2.7 | $ 4.8 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies Other Assets (Details) - USD ($) shares in Millions, $ in Millions | Jul. 01, 2020 | Apr. 03, 2021 | Jan. 02, 2021 |
Equity and cost method investments [Abstract] | |||
Equity Securities without Readily Determinable Fair Value, Amount | $ 17.5 | $ 17.4 | |
Gain (Loss) on Sale of Equity Investments | $ 38.6 | ||
Equity securities received, restricted | 0.2 | ||
Payments for (proceeds from) short-term investments | 51.5 | ||
Proceeds from sale of short-term investments | 60.1 | ||
Payments to Acquire Short-term Investments | $ 8.6 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Basic and Diluted Net Income Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Apr. 03, 2021 | Mar. 28, 2020 | |
Schedule Of Computation Of Basic And Diluted Earnings Per Common Share [Line Items] | ||
Document Period End Date | Apr. 3, 2021 | |
Net income (loss) | $ 7,443 | $ (18,135) |
Weighted-average shares outstanding | 28,257 | 28,297 |
Dilutive effect of employee stock options and restricted shares | 829 | 0 |
Diluted weighted-average shares outstanding | 29,086 | 28,297 |
Basic income per share | $ 0.26 | $ (0.64) |
Diluted income per share | $ 0.26 | $ (0.64) |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0 | 800 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies Subsequent Event (Details) shares in Millions, $ in Millions | Jul. 01, 2020USD ($)shares |
Subsequent Event [Line Items] | |
Equity securities received, restricted | shares | 0.2 |
Gain (Loss) on Sale of Equity Investments | $ | $ 38.6 |
Revenue Recognition Significant
Revenue Recognition Significant Judgments (Details) - USD ($) $ in Millions | Apr. 03, 2021 | Jan. 02, 2021 |
Revenue Recognition and Deferred Revenue [Abstract] | ||
Revenue, Remaining Performance Obligation, Amount | $ 13.1 | $ 11.5 |
Refund liability, product returns | 51.8 | 64.3 |
Refund liability, other credits and incentives | $ 78.3 | $ 142.2 |
Revenue Recognition Disaggreg_2
Revenue Recognition Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 03, 2021 | Mar. 28, 2020 | |
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 303,261 | $ 192,535 |
UNITED STATES | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 114,772 | 81,967 |
EMEA [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 116,233 | 66,659 |
All Other Regions [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 31,681 | 17,445 |
JAPAN | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 40,575 | $ 26,464 |
Revenue Recognition Contract _2
Revenue Recognition Contract Balances (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Apr. 03, 2021 | Mar. 28, 2020 | Jan. 02, 2021 | |
Revenue Recognition and Deferred Revenue [Abstract] | |||
Revenue, Remaining Performance Obligation, Amount | $ 13,100 | $ 11,500 | |
Accounts Receivable, after Allowance for Credit Loss, Current | 67,918 | 170,526 | |
Contract with Customer, Liability, Revenue Recognized | 7,300 | $ 3,600 | |
Contract with Customer, Liability | $ 14,986 | $ 17,700 |
Leases Lease Cost (Details)
Leases Lease Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 03, 2021 | Mar. 28, 2020 | |
Leases [Abstract] | ||
Operating Lease, Weighted Average Discount Rate, Percent | 3.57% | |
Operating Lease, Cost | $ 1,987 | $ 2,355 |
Variable Lease, Cost | 895 | 1,122 |
Lease, Cost | $ 2,882 | $ 3,477 |
Operating Lease, Weighted Average Remaining Lease Term | 8 years 1 month 20 days |
Leases Supplemental Cash Flow (
Leases Supplemental Cash Flow (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 03, 2021 | Mar. 28, 2020 | |
Leases [Abstract] | ||
Document Period End Date | Apr. 3, 2021 | |
Operating Lease, Payments | $ 2,279 | $ 2,021 |
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | $ 0 | $ 0 |
Leases Maturity of Operating Le
Leases Maturity of Operating Lease LIability (Details) - USD ($) $ in Thousands | Apr. 03, 2021 | Jan. 02, 2021 |
Leases [Abstract] | ||
Remainder of 2021 | $ 5,896 | |
2022 | 8,590 | |
2023 | 7,651 | |
2024 | 6,595 | |
2025 | 6,621 | |
Thereafter | 28,562 | |
Total minimum lease payments | 63,915 | |
Less: imputed interest | 8,955 | |
Present value of future minimum lease payments | 54,960 | |
Current portion of operating lease liabilities | 6,222 | $ 6,315 |
Long-term lease liabilities | $ 48,738 | $ 50,485 |
Leases Financial Statement Impa
Leases Financial Statement Impact of Adopting ASC 842 (Details) - USD ($) $ in Thousands | Apr. 03, 2021 | Jan. 02, 2021 |
Leases [Abstract] | ||
Operating lease right-of-use asset | $ 42,086 | $ 43,682 |
Present value of future minimum lease payments | $ 54,960 |
Goodwill, Other Intangible As_3
Goodwill, Other Intangible Assets and Other Assets - Other Intangible Assets (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 03, 2021 | Jan. 02, 2021 | |
Intangible assets | ||
Intangible Assets, Net | $ 9,312 | $ 9,902 |
Amortization of Acquired Intangible Assets | $ 430 |
Goodwill, Other Intangible As_4
Goodwill, Other Intangible Assets and Other Assets Schedule of goodwill (Details) $ in Thousands | 3 Months Ended |
Apr. 03, 2021USD ($) | |
Goodwill | |
Balance as of January 2, 2021 | $ 125,872 |
Effect of foreign currency translation | (2,599) |
Balance as of April 3, 2021 | 123,273 |
Intangible assets | |
Balance as of January 2, 2021 | 9,902 |
Amortization | (430) |
Effect of foreign currency translation | (160) |
Balance as of April 3, 2021 | $ 9,312 |
Accrued Expenses (Details)
Accrued Expenses (Details) - USD ($) $ in Thousands | Apr. 03, 2021 | Jan. 02, 2021 |
Accounts Payable, Current [Abstract] | ||
Accrued warranty | $ 23,904 | $ 24,392 |
Accrued Manufacturing and Logistics Costs | 19,374 | 20,093 |
Accrued compensation and benefits | 17,452 | 17,635 |
Accrued bonus | 6,817 | 31,523 |
Current portion of operating lease liabilities | 6,222 | 6,315 |
Accrued income taxes | 6,136 | 3,806 |
Accrued sales and other indirect taxes payable | 5,631 | 15,480 |
Accrued other | 20,274 | 12,144 |
Accrued expenses | $ 105,810 | $ 131,388 |
Derivative Instruments Schedule
Derivative Instruments Schedule of Derivative Instruments (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 03, 2021 | Jan. 02, 2021 | |
Designated as Hedging Instrument [Member] | ||
Derivative [Line Items] | ||
Derivative, Term of Contract | 3 years | |
Derivative, Notional Amount | $ 397,800 | $ 431,900 |
Not Designated as Hedging Instrument [Member] | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | 140,500 | 192,200 |
Not Designated as Hedging Instrument [Member] | Equity Securities [Member] | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | 51,500 | |
Not Designated as Hedging Instrument [Member] | Accrued Liabilities [Member] | Foreign Exchange Forward [Member] | ||
Derivative [Line Items] | ||
Derivative Liability | 764 | 2,176 |
Not Designated as Hedging Instrument [Member] | Accrued Liabilities [Member] | Derivative, Forward Price | ||
Derivative [Line Items] | ||
Derivative Liability | 0 | 3,904 |
Not Designated as Hedging Instrument [Member] | Other Current Assets [Member] | Foreign Exchange Forward [Member] | ||
Derivative [Line Items] | ||
Derivative Asset | 1,258 | 261 |
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Accrued Liabilities [Member] | Foreign Exchange Forward [Member] | ||
Derivative [Line Items] | ||
Derivative Liability | 1,124 | 2,092 |
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Other Noncurrent Liabilities [Member] | Foreign Exchange Forward [Member] | ||
Derivative [Line Items] | ||
Derivative Liability | 2,633 | 8,554 |
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Other Current Assets [Member] | Foreign Exchange Forward [Member] | ||
Derivative [Line Items] | ||
Derivative Asset | 6,073 | 362 |
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Other Noncurrent Assets [Member] | Foreign Exchange Forward [Member] | ||
Derivative [Line Items] | ||
Derivative Asset | $ 5,750 | $ 679 |
Derivative Instruments (Details
Derivative Instruments (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Apr. 03, 2021 | Mar. 28, 2020 | ||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Revenue | $ 303,261 | $ 192,535 | |
Foreign Exchange Forward [Member] | Cash Flow Hedging [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, before Tax | [1] | 17,154 | 7,566 |
Other Nonoperating Income (Expense) [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | (10,013) | (545) | |
Sales [Member] | Foreign Exchange Forward [Member] | Cash Flow Hedging [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | $ (517) | $ 1,957 | |
[1] | The amount represents the change in fair value of derivative contracts due to changes in spot rates. |
Fair Value Measurements Fair Va
Fair Value Measurements Fair Value on a Recurring Basis (Details) - USD ($) | Apr. 03, 2021 | Jan. 02, 2021 | |
Equity Securities [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity Securities, FV-NI, Cost | $ 46,578 | ||
Bonds | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt Securities, Available-for-sale, Amortized Cost | 3,498 | ||
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Money Market Funds, at Carrying Value | $ 338,868,000 | ||
Available-for-sale Securities | 0 | ||
Derivative Asset | 0 | 0 | |
Assets, Fair Value Disclosure | 338,868,000 | 95,105,000 | |
Derivative Liability | 0 | 0 | |
Financial and Nonfinancial Liabilities, Fair Value Disclosure | 0 | 0 | |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Equity Securities [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity Securities, FV-NI | 47,576,000 | ||
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Money Market Funds | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and Cash Equivalents, Fair Value Disclosure | 47,529,000 | ||
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Money Market Funds, at Carrying Value | [1] | 0 | |
Available-for-sale Securities | [1] | 3,505,000 | |
Derivative Asset | [1] | 13,081,000 | 5,206,000 |
Assets, Fair Value Disclosure | [1] | 13,081,000 | 8,711,000 |
Derivative Liability | [1] | 4,521,000 | 12,822,000 |
Financial and Nonfinancial Liabilities, Fair Value Disclosure | [1] | 4,521,000 | 12,822,000 |
Equity Securities, FV-NI | 0 | ||
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Money Market Funds | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and Cash Equivalents, Fair Value Disclosure | 0 | ||
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Money Market Funds, at Carrying Value | 0 | ||
Available-for-sale Securities | 0 | ||
Derivative Asset | 0 | 0 | |
Assets, Fair Value Disclosure | 0 | 0 | |
Derivative Liability | 0 | 0 | |
Financial and Nonfinancial Liabilities, Fair Value Disclosure | $ 0 | 0 | |
Equity Securities, FV-NI | 0 | ||
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Money Market Funds | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and Cash Equivalents, Fair Value Disclosure | $ 0 | ||
[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. |
Stockholders Equity (Details)
Stockholders Equity (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | ||||
May 06, 2021 | Apr. 03, 2021 | Jun. 27, 2020 | Mar. 28, 2020 | Sep. 05, 2021 | Feb. 27, 2018 | |
Class of Stock [Line Items] | ||||||
Authorized amount | $ 25,000 | $ 200,000 | ||||
Average cost per share (in dollars per share) | $ 37.65 | |||||
Payments for repurchase | $ 0 | $ 25,000 | ||||
Stock repurchased and retired during period (in shares) | 663,602 | |||||
Value of stock repurchased | $ 25,000 | $ 25,000 | ||||
Subsequent Event [Member] | ||||||
Class of Stock [Line Items] | ||||||
Shares repurchased (in shares) | 446,954 | |||||
Average cost per share (in dollars per share) | $ 111.85 | |||||
Payments for repurchase | $ 50,000 | |||||
Remaining authorized amount | $ 125,000 | |||||
Forecast | ||||||
Class of Stock [Line Items] | ||||||
Authorized amount | $ 50,000 |
Commitments and Contingencies -
Commitments and Contingencies - Activity Related to Warranty Accrual (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 03, 2021 | Mar. 28, 2020 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||
Balance at beginning of period | $ 24,392 | $ 13,856 |
Provision | 10,185 | 4,475 |
Warranty usage | (10,673) | (4,333) |
Balance at end of period | $ 23,904 | $ 13,998 |
Income Taxes (Details)
Income Taxes (Details) | 3 Months Ended | |
Apr. 03, 2021 | Mar. 28, 2020 | |
Income Tax Disclosure [Abstract] | ||
Effective Income Tax Rate Reconciliation, Percent | (19.50%) | 10.40% |
Industry Segment, Geographic _3
Industry Segment, Geographic Information and Significant Customers - Segment Information about Revenue, Cost of Revenue, Gross Margin and Income before Income Taxes (Detail) $ in Thousands | 3 Months Ended | |
Apr. 03, 2021USD ($)segment | Mar. 28, 2020USD ($) | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Number of Reportable Segments | segment | 1 | |
Total cost of revenue | $ 180,317 | $ 114,580 |
Gross profit | 122,944 | 77,955 |
Research and development | 41,920 | 36,759 |
Selling and marketing | 50,990 | 36,594 |
General and administrative | 23,440 | 24,573 |
Other income, net | $ (160) | $ (19) |
Customer Concentration Risk [Member] | Revenue Benchmark [Member] | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Concentration Risk, Percentage | 17.00% | 13.40% |
Industry Segment, Geographic _4
Industry Segment, Geographic Information and Significant Customers - Additional Information (Detail) - segment | 3 Months Ended | |
Apr. 03, 2021 | Mar. 28, 2020 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Number of Reportable Segments | 1 | |
Document Period End Date | Apr. 3, 2021 | |
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Concentration Risk, Percentage | 17.00% | 13.40% |