Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Apr. 02, 2022 | Apr. 29, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Period End Date | Apr. 2, 2022 | |
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, $0.01 par value | |
Trading Symbol | IRBT | |
Security Exchange Name | NASDAQ | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | --12-31 | |
Entity Shell Company | false | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 27,115,917 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Apr. 02, 2022 | Jan. 01, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 112,038 | $ 201,457 |
Short-term investments | 1,461 | 33,044 |
Accounts receivable, net | 105,573 | 160,642 |
Inventory | 331,085 | 333,296 |
Other current assets | 96,749 | 61,094 |
Total current assets | 646,906 | 789,533 |
Property and equipment, net | 71,877 | 78,887 |
Operating lease right-of-use assets | 31,262 | 37,609 |
Deferred tax assets | 50,995 | 37,945 |
Goodwill | 169,964 | 173,292 |
Intangible Assets, Net | 26,627 | 28,410 |
Other assets | 38,834 | 38,753 |
Total assets | 1,036,465 | 1,184,429 |
Current liabilities: | ||
Accounts payable | 172,908 | 251,298 |
Accrued expenses | 89,382 | 132,618 |
Deferred revenue and customer advances | 13,298 | 11,767 |
Total current liabilities | 275,588 | 395,683 |
Operating lease liabilities | 36,904 | 43,462 |
Deferred tax liabilities | 3,187 | 3,250 |
Other long-term liabilities | 25,584 | 25,311 |
Total long-term liabilities | 65,675 | 72,023 |
Total liabilities | 341,263 | 467,706 |
Commitments and contingencies (Note 9) | ||
Preferred stock, 5,000 shares authorized and none outstanding | 0 | 0 |
Common stock, $0.01 par value, 100,000 shares authorized; 27,116 and 27,006 shares issued and outstanding, respectively | 271 | 270 |
Additional paid-in capital | 229,133 | 222,653 |
Retained earnings | 455,304 | 485,710 |
Accumulated other comprehensive income | 10,494 | 8,090 |
Total stockholders’ equity | 695,202 | 716,723 |
Total liabilities and stockholders’ equity | $ 1,036,465 | $ 1,184,429 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Common stock, shares outstanding | 27,116,000 | 27,006,000 |
Common stock, shares issued | 27,116,000 | 27,006,000 |
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. 02, 2022 | Jan. 01, 2022 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares outstanding | 27,116,000 | 27,006,000 |
Common stock, shares issued | 27,116,000 | 27,006,000 |
Consolidated Statements of Inco
Consolidated Statements of Income Statement - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Apr. 02, 2022 | Apr. 03, 2021 | |
Revenue | $ 291,969 | $ 303,261 |
Cost of product revenue | 183,633 | 180,092 |
Amortization of acquired intangible assets | 821 | 225 |
Total cost of revenue | 184,454 | 180,317 |
Gross profit | 107,515 | 122,944 |
Research and development | 42,529 | 41,920 |
Selling and marketing | 61,065 | 50,990 |
General and administrative | 26,698 | 23,440 |
Amortization of acquired intangible assets | 510 | 205 |
Total operating expenses | 130,802 | 116,555 |
Operating (loss) income | (23,287) | 6,389 |
Other expense, net | (16,746) | (160) |
(Loss) income before income taxes | (40,033) | 6,229 |
Income tax benefit | (9,627) | (1,214) |
Net (loss) income | $ (30,406) | $ 7,443 |
Basic | $ (1.12) | $ 0.26 |
Diluted | $ (1.12) | $ 0.26 |
Basic | 27,051 | 28,257 |
Diluted | 27,051 | 29,086 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 02, 2022 | Apr. 03, 2021 | |
Net (loss) income | $ (30,406) | $ 7,443 |
Other comprehensive income: | ||
Net foreign currency translation adjustments | (4,015) | (5,883) |
Net unrealized gains on cash flow hedges, net of tax | 7,653 | 12,967 |
Net (gains) losses on cash flow hedge reclassified into earnings, net of tax | (1,234) | 391 |
Net unrealized losses on marketable securities, net of tax | 0 | (4) |
Total comprehensive (loss) income | $ (28,002) | $ 14,914 |
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 | 28,184,000 | ||||
Beginning balance | $ 804,434 | $ 282 | $ 205,256 | $ 599,389 | $ (493) |
Issuance of common stock under employee stock plans (in shares) | 2,589,000 | 67,000 | |||
Stock Issued During Period, Value, Stock Options Exercised | $ 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 | ||||
Adjustments to Additional Paid in Capital Directors Deferred Compensation | 21 | 21 | |||
Net (loss) income | $ 7,443 | 7,443 | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0 | ||||
Contract with Customer, Liability, Revenue Recognized | $ 7,300 | ||||
Effective Income Tax Rate Reconciliation, Percent | (19.50%) | ||||
Beginning Balance, Shares | 28,395,000 | ||||
Beginning balance | $ 823,984 | $ 284 | 209,890 | 606,832 | 6,978 |
Beginning Balance, Shares | 27,006,000 | 27,006,000 | |||
Beginning balance | $ 716,723 | $ 270 | 222,653 | 485,710 | 8,090 |
Issuance of common stock under employee stock plans (in shares) | 23,000 | ||||
Stock Issued During Period, Value, Stock Options Exercised | 797 | $ 0 | 797 | ||
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures (in shares) | 112,000 | ||||
Stock Issued During Period, Value, Restricted Stock Award, Net of Forfeitures | 0 | $ 1 | (1) | ||
APIC, Share-based Payment Arrangement, Increase for Cost Recognition | 7,208 | 7,208 | |||
Shares Paid for Tax Withholding for Share Based Compensation (in shares) | (25,000) | ||||
Stock Withheld to Cover Tax Withholding Requirements Upon Vesting to Restricted Stock Units Amount | (1,524) | $ 0 | (1,524) | ||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | 2,404 | 2,404 | |||
Net (loss) income | $ (30,406) | (30,406) | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 600,000 | ||||
Contract with Customer, Liability, Revenue Recognized | $ 4,700 | ||||
Effective Income Tax Rate Reconciliation, Percent | 24.00% | ||||
Beginning Balance, Shares | 27,116,000 | 27,116,000 | |||
Beginning balance | $ 695,202 | $ 271 | $ 229,133 | $ 455,304 | $ 10,494 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 02, 2022 | Apr. 03, 2021 | |
Cash flows from operating activities: | ||
Net (loss) income | $ (30,406) | $ 7,443 |
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities, net of the effects of acquisition: | ||
Depreciation and amortization | 11,241 | 7,501 |
Gain (Loss) on Investments | (16,835) | 0 |
Stock-based compensation | 7,208 | 6,782 |
Deferred income taxes, net | (15,571) | (95) |
Other | 1,539 | 1,582 |
Changes in operating assets and liabilities — (use) source | ||
Accounts receivable | 54,299 | 101,459 |
Inventory | (1,688) | (51,443) |
Other assets | (26,734) | 3,425 |
Accounts payable | (77,006) | (15,438) |
Accrued expenses and other liabilities | (42,032) | (32,522) |
Net cash (used in) provided by operating activities | (102,315) | 28,694 |
Cash flows from investing activities: | ||
Additions of property and equipment | (3,113) | (11,272) |
Purchase of investments | (500) | (8,664) |
Sales and maturities of investments | 16,213 | 63,644 |
Net cash provided by investing activities | 12,600 | 43,708 |
Cash flows from financing activities: | ||
Proceeds from employee stock plans | 797 | 2,589 |
Income tax withholding payment associated with restricted stock vesting | (1,524) | (4,756) |
Net cash used in financing activities | (727) | (2,167) |
Effect of exchange rate changes on cash and cash equivalents | 1,023 | (2,116) |
Net (decrease) increase in cash and cash equivalents | (89,419) | 68,119 |
Cash and cash equivalents, at beginning of period | 201,457 | 432,635 |
Cash and cash equivalents, at end of period | $ 112,038 | $ 500,754 |
Description of Business
Description of Business | 3 Months Ended |
Apr. 02, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business | Description of BusinessiRobot Corporation ("iRobot" or the "Company") designs, builds and sells robots and home innovations that make life better. The Company's portfolio of home robots and smart home devices features proprietary technologies for the connected home and advanced concepts in cleaning, mapping and navigation, human-robot interaction and physical solutions. iRobot's durable and high-performing robots are designed using the close integration of software, electronics and hardware. 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. 02, 2022 | |
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 1, 2022, filed with the Securities and Exchange Commission on February 15, 2022. 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 Issued Accounting Standards From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board 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, standalone selling price, variable consideration and other obligations such as sales incentives and product returns; allowance for credit losses; accounting for business combinations; impairment of goodwill and long-lived assets; valuation of non-marketable equity investments; product warranties; loss contingencies; accounting for stock-based compensation including performance-based assessments; and accounting for income taxes and related valuation allowances. The Company bases its estimates and assumptions on historical experience, market participant fair value considerations, projected future cash flows, current economic conditions, including impact from COVID-19 pandemic and the uncertainty imposed by the conflict between Russia and Ukraine, and various other factors that the Company believes are reasonable under the circumstances. Actual results and outcomes may differ from the Company’s estimates and assumptions. Short-Term Investments The Company's short term investments include marketable equity securities with readily determinable fair value and debt securities. The fair value of investments is determined based on quoted market prices at the reporting date for those instruments. 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. As of January 1, 2022, the Company held 1.6 million shares of Matterport, Inc. ("Matterport") from the Matterport merger in 2021 with shares received subject to time based contractual sales restrictions that expired in January 2022. During the three months ended April 2, 2022, the Company sold these Matterport shares and received net proceeds of $16.2 million and recognized a loss of $16.8 million during the period. In addition, during the three months ended April 2, 2022, the Company received an additional 0.2 million shares of Matterport upon achievement of conditions set forth in the merger agreement and recorded an unrealized gain of $1.5 million in other income (expense), net during the period. As of April 2, 2022 and January 1, 2022, the Company had $1.5 million and $33.0 million, respectively, in short term investments related to these shares. Subsequent to April 2, 2022, the Company sold the remaining Matterport shares and received net proceeds of $1.2 million and recognized a loss of $0.3 million during the second quarter of fiscal 2022. Allowance for Credit Losses The Company maintains an allowance for credit losses for accounts receivable using an expected loss model that requires the use of forward-looking information to calculate credit loss estimate. The expected loss methodology is developed through consideration of factors including, but not limited to, historical collection experience, current customer credit ratings, customer concentrations, current and future economic and market conditions and age of the receivable. As of April 2, 2022 and January 1, 2022, the Company had an allowance for credit losses of $4.1 million and $4.6 million, respectively. Tariff Refunds On March 23, 2022, the Company was granted a temporary exclusion from Section 301 List 3 tariffs by the United States Trade Representative ("USTR"). This exclusion eliminates the 25% tariff on Roomba products imported from China beginning on October 12, 2021 and continuing until December 31, 2022. This tariff exclusion entitles the Company to a refund of approximately $29.8 million in tariffs comprised of $11.7 million in tariffs paid on Roomba robots imported after October 12, 2021 and sold during fiscal 2021, $5.9 million for tariffs paid during the first quarter of 2022 and $12.2 million for on-hand inventory imported after October 12, 2021. While tariff refund claims are subject to the approval of U.S. Customs, the Company currently expects to recover the entire balance of $29.8 million within the next twelve months. The refund receivable is recorded in other current assets on the consolidated balance sheet. Inventory Inventory primarily consists of finished goods and, to a lesser extent, components, which are purchased from contract manufacturers. Inventory is stated at the lower of cost or net realizable value with cost being determined using the standard cost method, which approximates actual costs determined on the first-in, first-out basis. Inventory costs primarily consist of materials, inbound freight, import duties, tariffs, and other handling fees. The Company writes down its inventory for estimated obsolescence or excess inventory based upon assumptions around market conditions and estimates of future demand. Net realizable value is the estimated selling price less estimated costs of completion, disposal and transportation. Adjustments to reduce inventory to net realizable value are recognized in cost of revenue and have not been significant for the periods presented. 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 in orderly transactions for identical or similar investments of the same issuer. 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 Company monitors non-marketable equity investments for impairment indicators, such as deterioration in the investee's financial condition and business forecasts and lower valuations in recent or proposed financings. 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. Changes in fair value of non-marketable equity investments are recorded in other expense, net on the consolidated statement of operations. At April 2, 2022 and January 1, 2022, the Company's equity securities without readily determinable fair values totaled $15.3 million and $16.3 million, respectively, and are included in other assets on the consolidated balance sheets. Net (Loss) Income Per Share Basic income per share is calculated using the Company's weighted-average outstanding shares of common stock. 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 (loss) income per share (in thousands, except per share amounts): Three Months Ended April 2, 2022 April 3, 2021 Net (loss) income $ (30,406) $ 7,443 Basic weighted-average common shares outstanding 27,051 28,257 Dilutive effect of employee stock awards — 829 Diluted weighted-average common shares outstanding 27,051 29,086 Net (loss) income per share - Basic $ (1.12) $ 0.26 Net (loss) income per share - Diluted $ (1.12) $ 0.26 |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Apr. 02, 2022 | |
Revenue Recognition and Deferred Revenue [Abstract] | |
Revenue Recognition | 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 in an amount that reflects the consideration the Company expects to receive in exchange for those products or services. Revenue is allocated to distinct performance obligations and is recognized net of allowances for returns and other credits and incentives. 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. Frequently, the Company’s contracts with customers contain multiple promised goods or services. Such contracts may include any of the following, the consumer robot, downloadable app, cloud services, accessories on demand, potential future unspecified software upgrades, premium customer care and extended warranties. For these contracts, the Company accounts for the promises separately as individual performance obligations if they are distinct. Performance obligations are considered distinct if they are both capable of being distinct and distinct within the context of the contract. In determining whether performance obligations meet the criteria for being distinct, the Company considers a number of factors, such as the degree of interrelation and interdependence between obligations, and whether or not the good or service significantly modifies or transforms another good or service in the contract. 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. The Company has determined that the app, cloud services and potential future unspecified software upgrades represent one performance obligation to the customer to enhance the functionality and interaction with the robot (referred to collectively as "Cloud Services"). Other services and support are considered distinct and therefore are treated as separate performance obligations. The Company allocates revenue to all distinct performance obligations based on their relative stand-alone selling prices ("SSPs"). When available, the Company uses observable prices to determine SSPs. When observable prices are not available, SSPs are established that reflect the Company’s best estimates of what the selling prices of the performance obligations would be if they were sold regularly on a stand-alone basis. The Company’s process for estimating SSPs without observable prices considers multiple factors that may vary depending upon the facts and circumstances related to each performance obligation including, market data or the estimated cost of providing the products or services. The transaction price allocated to the robot is recognized as revenue at a point in time when control is transferred, generally as title and risk of loss pass, 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. Other services and support are recognized over their service periods. For contracts with a duration of greater than one year, the transaction price allocated to performance obligations that are unsatisfied as of April 2, 2022 and January 1, 2022 was $21.3 million and $20.9 million, respectively. 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." For contracts with the right to upgrade to a new product after a specified period of time, the Company accounts for this trade-in right as a guarantee obligation under ASC 460. The total transaction price is reduced by the full amount of the trade-in right's fair value and the remaining transaction price is allocated between the performance obligations within the contract. 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 2, 2022, the Company had reserves for product returns of $44.7 million and other credits and incentives of $63.7 million. As of January 1, 2022, the Company had reserves for product returns of $56.8 million and other credits and incentives of $101.6 million. The Company regularly evaluates the adequacy of its estimates for product returns and other credits and incentives. Future market conditions and product transitions may require the Company to take action to change such programs and related estimates. When the variables used to estimate these reserves change, or if actual results differ significantly from the estimates, the Company would be required to increase or reduce revenue to reflect the impact. During the three months ended April 2, 2022 and April 3, 2021, changes to these estimates related to performance obligations satisfied in prior periods were not material. Disaggregation of Revenue The following table provides information about disaggregated revenue by geographical region (in thousands): Three Months Ended April 2, 2022 April 3, 2021 United States $ 153,174 $ 114,772 EMEA 65,661 116,233 Japan 50,521 40,575 Other 22,613 31,681 Total revenue $ 291,969 $ 303,261 Contract Balances The following table provides information about receivables and contract liabilities from contracts with customers (in thousands): April 2, 2022 January 1, 2022 Accounts receivable, net $ 96,357 $ 155,659 Unbilled receivables 9,216 8,747 Contract liabilities 24,219 22,996 The Company invoices customers based upon contractual billing schedules, and accounts receivable are recorded when the right to consideration becomes unconditional. Unbilled receivables represent revenue recognized in excess of billings 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. During the three months ended April 2, 2022 and April 3, 2021, the Company recognized $4.7 million and $7.3 million, respectively, of the contract liability balance as revenue upon transfer of the products or services to customers. |
Leases
Leases | 3 Months Ended |
Apr. 02, 2022 | |
Leases [Abstract] | |
Leases | LeasesThe 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. The operating leases expire at various dates through 2030. The components of lease expense were as follows (in thousands): Three Months Ended April 2, 2022 April 3, 2021 Operating lease cost $ 851 $ 1,987 Variable lease cost 918 895 Total lease cost $ 1,769 $ 2,882 Supplemental cash flow information related to leases was as follows (in thousands): Three Months Ended April 2, 2022 April 3, 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 2,039 $ 2,279 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ — $ — At April 2, 2022, the Company's weighted average discount rate wa s 3.99% , while the weighted average remaining lease term w as 7.30 years. Maturities of operating lease liabilities were as follows as of April 2, 2022 (in thousands): Remainder of 2022 $ 5,687 2023 7,392 2024 6,099 2025 5,838 2026 5,858 Thereafter 18,976 Total minimum lease payments $ 49,850 Less: imputed interest 6,900 Present value of future minimum lease payments $ 42,950 Less: current portion of operating lease liabilities (Note 6) 6,046 Long-term lease liabilities $ 36,904 During January 2022, the Company amended its lease on the corporate headquarters to reduce square footage. The reduction decreased the Company's future right-of-use assets and lease liabilities by $5.6 million. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 3 Months Ended |
Apr. 02, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible 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 2, 2022 (in thousands): Goodwill Intangible assets Balance as of January 1, 2022 $ 173,292 $ 28,410 Purchase accounting adjustments (1,152) — Amortization — (1,331) Effect of foreign currency translation (2,176) (452) Balance as of April 2, 2022 $ 169,964 $ 26,627 |
Accrued Expenses
Accrued Expenses | 3 Months Ended |
Apr. 02, 2022 | |
Accrued Liabilities, Current [Abstract] | |
Accrued Expenses | Accrued Expenses Accrued expenses consisted of the following at (in thousands): April 2, 2022 January 1, 2022 Accrued warranty $ 30,239 $ 32,019 Accrued compensation and benefits 17,319 19,029 Accrued manufacturing and logistics cost 6,567 23,038 Current portion of operating lease liabilities 6,046 6,220 Accrued sales and other indirect taxes payable 4,922 9,599 Derivative liability 2,198 2,600 Accrued bonus 1,991 11,375 Accrued income taxes 642 1,788 Accrued other 19,458 26,950 $ 89,382 $ 132,618 |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 3 Months Ended |
Apr. 02, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities The Company enters into derivative instruments that are designated as cash flow hedges to reduce its exposure to foreign currency exchange risk in sales. These contracts typically have maturities o f three years or l ess. At April 2, 2022 and January 1, 2022, the Company had outstanding cash flow hedges with a total notional value of $497.6 million an d $423.3 million, respectively. The Company also enters into economic hedges that are not designated as hedges from an accounting standpoint to reduce foreign currency exchange risk related to short term trade receivables and payables. These contracts typically have maturities of twelve months or less. At April 2, 2022 and January 1, 2022, the Company had outstanding foreign currency economic hedges with a total notional value of $249.0 million and $325.4 million, respectively. The fair values of derivative instruments were as follows (in thousands): Fair Value Classification April 2, 2022 January 1, 2022 Derivatives not designated as hedging instruments: Foreign currency forward contracts Other current assets $ 9,807 $ 8,362 Foreign currency forward contracts Other assets 994 1,627 Foreign currency forward contracts Accrued expenses 2,198 2,377 Derivatives designated as cash flow hedges: Foreign currency forward contracts Other current assets $ 10,221 $ 4,110 Foreign currency forward contracts Other assets 11,549 9,610 Foreign currency forward contracts Accrued expenses — 223 Foreign currency forward contracts Long-term liabilities 74 407 Gain (loss) associated with derivative instruments not designated as hedging instruments were as follows (in thousands): Three Months Ended Classification April 2, 2022 April 3, 2021 Gain (loss) recognized in income Other expense, net $ 2,064 $ (10,013) The following tables reflect the effect of derivatives designated as cash flow hedging (in thousands): Gain recognized in OCI on Derivative (1) Three Months Ended April 2, 2022 April 3, 2021 Foreign currency forward contracts $ 10,257 $ 17,154 (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 2, 2022 April 3, 2021 Revenue Consolidated statements of operations in which the effects of cash flow hedging instruments are recorded $ 291,969 $ 303,261 Gain on cash flow hedging relationships: Foreign currency forward contracts: Amount of gain (loss) reclassified from AOCI into earnings $ 1,639 $ (517) |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Apr. 02, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 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 $ 11,606 $ — $ — Marketable equity securities, $0 at cost (2) 1,461 — — Derivative instruments (Note 7) — 32,571 — Total assets measured at fair value $ 13,067 $ 32,571 $ — Liabilities: Derivative instruments (Note 7) $ — $ 2,272 $ — Total liabilities measured at fair value $ — $ 2,272 $ — Fair Value Measurements as of Level 1 Level 2 (1) Level 3 Assets: Money market funds $ 33,003 $ — $ — Marketable equity securities, $23,286 at cost 33,044 — — Derivative instruments (Note 7) — 23,709 — Total assets measured at fair value $ 66,047 $ 23,709 $ — Liabilities: Derivative instruments (Note 7) $ — $ 3,007 $ — Total liabilities measured at fair value $ — $ 3,007 $ — (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 expense, net was $1.5 million for the three months ended April 2, 2022. Marketable equity securities are included in short-term investments on the consolidated balance sheet. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Apr. 02, 2022 | |
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. 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 had no liabilities recorded for these agreements as of April 2, 2022 and January 1, 2022, 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 2, 2022 April 3, 2021 Balance at beginning of period $ 32,019 $ 24,392 Provision 6,036 10,185 Warranty usage (7,816) (10,673) Balance at end of period $ 30,239 $ 23,904 |
Income Taxes (Notes)
Income Taxes (Notes) | 3 Months Ended |
Apr. 02, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income TaxesOrdinarily, the Company’s interim provision for income taxes is determined using an estimate of the annual effective tax rate. The Company records any changes affecting the estimated annual effective tax rate in the interim period in which the change occurs, including discrete tax items. However, for the first quarter of 2022, the Company concluded that the estimated annual effective tax rate method would not provide a reliable estimate of the Company’s overall annual effective tax rate due to the range of potential impacts of the ongoing global COVID-19 pandemic, heightened inflation and reduced consumer confidence stemming from the Russia-Ukraine war may have on its business and results of operations. Accordingly, the Company has computed the tax provision using the actual effective tax rate for the three months ended April 2, 2022. The Company recorded an income tax benefit of $9.6 million and $1.2 million for the three months ended April 2, 2022 and April 3, 2021, respectively. The $9.6 million income tax benefit for the three months ended April 2, 2022 resulted in an effective income tax rate of 24.0%. The $1.2 million income tax benefit for the three months ended April 3, 2021 resulted in an effective tax rate of (19.5)%. The change in effective income tax rate was primarily driven by a discrete tax item of excess stock-based compensation windfalls recognized for the three months ended April 3, 2021 compared to stock-based compensation shortfalls recognized during the current period. The Company's 24.0% effective rate of income tax for the three months ended April 2, 2022 was higher than the federal statutory tax rate of 21% primarily because of the recognition of R&D credits and the benefit associated with Foreign-Derived Intangible Income. |
Industry Segment, Geographic In
Industry Segment, Geographic Information and Significant Customers | 3 Months Ended |
Apr. 02, 2022 | |
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 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 2, 2022 and April 3, 2021, the Company generated 26.6% and 17.0%, respectively, of total revenue from one of its retailers. |
Subsequent Event (Notes)
Subsequent Event (Notes) | 3 Months Ended |
Apr. 02, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent Event Credit Facility On May 4, 2022, the Company entered into a Second Amendment to the Amended and Restated Credit Agreement (the "Credit Agreement") with Bank of America N.A. (the "Amendment") with an effective date of March 31, 2022. The Amendment waives the quarterly tested leverage and interest coverage covenants in the Credit Agreement for the first, second and third quarters of 2022. The interest coverage ratio calculation for the fourth quarter of 2022 was changed to a trailing nine months. Additionally, a new liquidity covenant was added for all of fiscal 2022. The Amendment also increases the borrowing rate under the facility for 2022 to LIBOR plus 1.5%. With this Amendment, as of April 2, 2022, the Company is in compliance with the covenants under the Credit Agreement. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Apr. 02, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Foreign Currency Translation | 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 1, 2022, filed with the Securities and Exchange Commission on February 15, 2022. |
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. |
Recently Issued Accounting Standards | Recently Issued Accounting Standards From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board 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, standalone selling price, variable consideration and other obligations such as sales incentives and product returns; allowance for credit losses; accounting for business combinations; impairment of goodwill and long-lived assets; valuation of non-marketable equity investments; product warranties; loss contingencies; accounting for stock-based compensation including performance-based assessments; and accounting for income taxes and related valuation allowances. The Company bases its estimates and assumptions on historical experience, market participant fair value considerations, projected future cash flows, current economic conditions, including impact from COVID-19 pandemic and the uncertainty imposed by the conflict between Russia and Ukraine, and various other factors that the Company believes are reasonable under the circumstances. Actual results and outcomes may differ from the Company’s estimates and assumptions. |
Allowance for Credit Losses | Allowance for Credit LossesThe Company maintains an allowance for credit losses for accounts receivable using an expected loss model that requires the use of forward-looking information to calculate credit loss estimate. The expected loss methodology is developed through consideration of factors including, but not limited to, historical collection experience, current customer credit ratings, customer concentrations, current and future economic and market conditions and age of the receivable. As of April 2, 2022 and January 1, 2022, the Company had an allowance for credit losses of $4.1 million and $4.6 million, respectively. |
Inventory | InventoryInventory primarily consists of finished goods and, to a lesser extent, components, which are purchased from contract manufacturers. Inventory is stated at the lower of cost or net realizable value with cost being determined using the standard cost method, which approximates actual costs determined on the first-in, first-out basis. Inventory costs primarily consist of materials, inbound freight, import duties, tariffs, and other handling fees. The Company writes down its inventory for estimated obsolescence or excess inventory based upon assumptions around market conditions and estimates of future demand. Net realizable value is the estimated selling price less estimated costs of completion, disposal and transportation. Adjustments to reduce inventory to net realizable value are recognized in cost of revenue and have not been significant for the periods presented. |
Short-Term and Strategic Investments | Short-Term Investments The Company's short term investments include marketable equity securities with readily determinable fair value and debt securities. The fair value of investments is determined based on quoted market prices at the reporting date for those instruments. 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. 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 in orderly transactions for identical or similar investments of the same issuer. 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 Company monitors non-marketable equity investments for impairment indicators, such as deterioration in the investee's financial condition and business forecasts and lower valuations in recent or proposed financings. 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. Changes in fair value of non-marketable equity investments are recorded in other expense, net on the consolidated statement of operations. At April 2, 2022 and January 1, 2022, the Company's equity securities without readily determinable fair values totaled $15.3 million and $16.3 million, respectively, and are included in other assets on the consolidated balance sheets. |
Net (Loss) Income Per Share | Net (Loss) Income Per Share Basic income per share is calculated using the Company's weighted-average outstanding shares of common stock. 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 (loss) income per share (in thousands, except per share amounts): Three Months Ended April 2, 2022 April 3, 2021 Net (loss) income $ (30,406) $ 7,443 Basic weighted-average common shares outstanding 27,051 28,257 Dilutive effect of employee stock awards — 829 Diluted weighted-average common shares outstanding 27,051 29,086 Net (loss) income per share - Basic $ (1.12) $ 0.26 Net (loss) income per share - Diluted $ (1.12) $ 0.26 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Apr. 02, 2022 | |
Accounting Policies [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table presents the calculation of both basic and diluted net (loss) income per share (in thousands, except per share amounts): Three Months Ended April 2, 2022 April 3, 2021 Net (loss) income $ (30,406) $ 7,443 Basic weighted-average common shares outstanding 27,051 28,257 Dilutive effect of employee stock awards — 829 Diluted weighted-average common shares outstanding 27,051 29,086 Net (loss) income per share - Basic $ (1.12) $ 0.26 Net (loss) income per share - Diluted $ (1.12) $ 0.26 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Apr. 02, 2022 | |
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 2, 2022 April 3, 2021 United States $ 153,174 $ 114,772 EMEA 65,661 116,233 Japan 50,521 40,575 Other 22,613 31,681 Total revenue $ 291,969 $ 303,261 |
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 2, 2022 January 1, 2022 Accounts receivable, net $ 96,357 $ 155,659 Unbilled receivables 9,216 8,747 Contract liabilities 24,219 22,996 The Company invoices customers based upon contractual billing schedules, and accounts receivable are recorded when the right to consideration becomes unconditional. Unbilled receivables represent revenue recognized in excess of billings 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. During the three months ended April 2, 2022 and April 3, 2021, the Company recognized $4.7 million and $7.3 million, respectively, of the contract liability balance as revenue upon transfer of the products or services to customers. |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Apr. 02, 2022 | |
Leases [Abstract] | |
Lease, Cost [Table Text Block] | The components of lease expense were as follows (in thousands): Three Months Ended April 2, 2022 April 3, 2021 Operating lease cost $ 851 $ 1,987 Variable lease cost 918 895 Total lease cost $ 1,769 $ 2,882 |
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 2, 2022 April 3, 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 2,039 $ 2,279 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 2, 2022 (in thousands): Remainder of 2022 $ 5,687 2023 7,392 2024 6,099 2025 5,838 2026 5,858 Thereafter 18,976 Total minimum lease payments $ 49,850 Less: imputed interest 6,900 Present value of future minimum lease payments $ 42,950 Less: current portion of operating lease liabilities (Note 6) 6,046 Long-term lease liabilities $ 36,904 During January 2022, the Company amended its lease on the corporate headquarters to reduce square footage. The reduction decreased the Company's future right-of-use assets and lease liabilities by $5.6 million. |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 3 Months Ended |
Apr. 02, 2022 | |
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 the three months ended April 2, 2022 (in thousands): Goodwill Intangible assets Balance as of January 1, 2022 $ 173,292 $ 28,410 Purchase accounting adjustments (1,152) — Amortization — (1,331) Effect of foreign currency translation (2,176) (452) Balance as of April 2, 2022 $ 169,964 $ 26,627 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 3 Months Ended |
Apr. 02, 2022 | |
Accrued Liabilities, Current [Abstract] | |
Components of Accrued Expenses | April 2, 2022 January 1, 2022 Accrued warranty $ 30,239 $ 32,019 Accrued compensation and benefits 17,319 19,029 Accrued manufacturing and logistics cost 6,567 23,038 Current portion of operating lease liabilities 6,046 6,220 Accrued sales and other indirect taxes payable 4,922 9,599 Derivative liability 2,198 2,600 Accrued bonus 1,991 11,375 Accrued income taxes 642 1,788 Accrued other 19,458 26,950 $ 89,382 $ 132,618 |
Derivative Instruments and He_2
Derivative Instruments and Hedging Activities (Tables) | 3 Months Ended |
Apr. 02, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments [Table Text Block] | The fair values of derivative instruments were as follows (in thousands): Fair Value Classification April 2, 2022 January 1, 2022 Derivatives not designated as hedging instruments: Foreign currency forward contracts Other current assets $ 9,807 $ 8,362 Foreign currency forward contracts Other assets 994 1,627 Foreign currency forward contracts Accrued expenses 2,198 2,377 Derivatives designated as cash flow hedges: Foreign currency forward contracts Other current assets $ 10,221 $ 4,110 Foreign currency forward contracts Other assets 11,549 9,610 Foreign currency forward contracts Accrued expenses — 223 Foreign currency forward contracts Long-term liabilities 74 407 |
Derivative Instruments, Gain (Loss) [Table Text Block] | Gain (loss) associated with derivative instruments not designated as hedging instruments were as follows (in thousands): Three Months Ended Classification April 2, 2022 April 3, 2021 Gain (loss) recognized in income Other expense, net $ 2,064 $ (10,013) Gain (loss) recognized in earnings on cash flow hedging instruments Three Months Ended April 2, 2022 April 3, 2021 Revenue Consolidated statements of operations in which the effects of cash flow hedging instruments are recorded $ 291,969 $ 303,261 Gain on cash flow hedging relationships: Foreign currency forward contracts: Amount of gain (loss) reclassified from AOCI into earnings $ 1,639 $ (517) |
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 recognized in OCI on Derivative (1) Three Months Ended April 2, 2022 April 3, 2021 Foreign currency forward contracts $ 10,257 $ 17,154 (1) The amount represents the change in fair value of derivative contracts due to changes in spot rates. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Apr. 02, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of Financial Assets and Liabilities Measured at Fair Value | 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 $ 11,606 $ — $ — Marketable equity securities, $0 at cost (2) 1,461 — — Derivative instruments (Note 7) — 32,571 — Total assets measured at fair value $ 13,067 $ 32,571 $ — Liabilities: Derivative instruments (Note 7) $ — $ 2,272 $ — Total liabilities measured at fair value $ — $ 2,272 $ — Fair Value Measurements as of Level 1 Level 2 (1) Level 3 Assets: Money market funds $ 33,003 $ — $ — Marketable equity securities, $23,286 at cost 33,044 — — Derivative instruments (Note 7) — 23,709 — Total assets measured at fair value $ 66,047 $ 23,709 $ — Liabilities: Derivative instruments (Note 7) $ — $ 3,007 $ — Total liabilities measured at fair value $ — $ 3,007 $ — (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 expense, net was $1.5 million for the three months ended April 2, 2022. Marketable equity securities are included in short-term investments on the consolidated balance sheet. |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Apr. 02, 2022 | |
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 2, 2022 April 3, 2021 Balance at beginning of period $ 32,019 $ 24,392 Provision 6,036 10,185 Warranty usage (7,816) (10,673) Balance at end of period $ 30,239 $ 23,904 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) shares in Thousands, $ in Thousands | Jan. 01, 2022 | May 05, 2022 | Jul. 02, 2022 | Apr. 02, 2022 | Apr. 03, 2021 | Mar. 23, 2022 |
Debt and Equity Securities, FV-NI [Line Items] | ||||||
Short-term investments | $ 33,044 | $ 1,461 | ||||
Allowance for credit loss | 4,600 | 4,100 | ||||
Refund on tariffs paid | $ 29,800 | |||||
Equity Securities without Readily Determinable Fair Value, Amount | $ 16,300 | $ 15,300 | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 600 | 0 | ||||
Roomba Robots | Imported After October, 12, 2021 | ||||||
Debt and Equity Securities, FV-NI [Line Items] | ||||||
Tariffs paid | 11,700 | |||||
Roomba Robots | Tariffs Paid Q1 2022 | ||||||
Debt and Equity Securities, FV-NI [Line Items] | ||||||
Tariffs paid | 5,900 | |||||
Roomba Robots | Inventory Imported October 12, 2021 And Held On Hand | ||||||
Debt and Equity Securities, FV-NI [Line Items] | ||||||
Tariffs paid | $ 12,200 | |||||
Matterport | ||||||
Debt and Equity Securities, FV-NI [Line Items] | ||||||
Equity securities received, restricted | 1,600 | |||||
Payments for (proceeds from) short-term investments | $ (16,200) | |||||
Loss on sale of investments | $ 16,800 | |||||
Additional shares received | 200 | |||||
Unrealized gain investment | $ 1,500 | |||||
Short-term investments | $ 33,000 | $ 1,500 | ||||
Matterport | Subsequent Event | ||||||
Debt and Equity Securities, FV-NI [Line Items] | ||||||
Payments for (proceeds from) short-term investments | $ (1,200) | |||||
Matterport | Subsequent Event | Forecast | ||||||
Debt and Equity Securities, FV-NI [Line Items] | ||||||
Loss on sale of investments | $ 300 |
Summary of Significant Accoun_5
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. 02, 2022 | Apr. 03, 2021 | |
Schedule Of Computation Of Basic And Diluted Earnings Per Common Share [Line Items] | ||
Net (loss) income | $ (30,406) | $ 7,443 |
Weighted-average shares outstanding | 27,051 | 28,257 |
Dilutive effect of employee stock options and restricted shares | 0 | 829 |
Diluted weighted-average shares outstanding | 27,051 | 29,086 |
Basic income per share | $ (1.12) | $ 0.26 |
Diluted income per share | $ (1.12) | $ 0.26 |
Revenue Recognition - Significa
Revenue Recognition - Significant Judgments (Details) - USD ($) $ in Millions | Apr. 02, 2022 | Jan. 01, 2022 |
Revenue Recognition and Deferred Revenue [Abstract] | ||
Revenue, Remaining Performance Obligation, Amount | $ 21.3 | $ 20.9 |
Refund liability, product returns | 44.7 | 56.8 |
Refund liability, other credits and incentives | $ 63.7 | $ 101.6 |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 02, 2022 | Apr. 03, 2021 | |
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 291,969 | $ 303,261 |
United States | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 153,174 | 114,772 |
EMEA | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 65,661 | 116,233 |
Japan | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 50,521 | 40,575 |
Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 22,613 | $ 31,681 |
Revenue Recognition - Contract
Revenue Recognition - Contract Balances (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Apr. 02, 2022 | Apr. 03, 2021 | Jan. 01, 2022 | |
Revenue Recognition and Deferred Revenue [Abstract] | |||
Accounts receivable, net | $ 96,357 | $ 155,659 | |
Unbilled receivables | 9,216 | 8,747 | |
Contract liabilities | 24,219 | $ 22,996 | |
Contract with Customer, Liability, Revenue Recognized | $ 4,700 | $ 7,300 |
Leases - Lease Cost (Details)
Leases - Lease Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 02, 2022 | Apr. 03, 2021 | |
Leases [Abstract] | ||
Operating Lease, Weighted Average Discount Rate, Percent | 3.99% | |
Operating Lease, Cost | $ 851 | $ 1,987 |
Variable Lease, Cost | 918 | 895 |
Lease, Cost | $ 1,769 | $ 2,882 |
Operating Lease, Weighted Average Remaining Lease Term | 7 years 3 months 18 days |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 02, 2022 | Apr. 03, 2021 | |
Leases [Abstract] | ||
Document Period End Date | Apr. 2, 2022 | |
Operating Lease, Payments | $ 2,039 | $ 2,279 |
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | $ 0 | $ 0 |
Leases - Maturity of Operating
Leases - Maturity of Operating Lease Liability (Details) - USD ($) $ in Thousands | Apr. 02, 2022 | Jan. 28, 2022 | Jan. 01, 2022 |
Leases [Abstract] | |||
Remainder of 2022 | $ 5,687 | ||
2023 | 7,392 | ||
2024 | 6,099 | ||
2025 | 5,838 | ||
2026 | 5,858 | ||
Thereafter | 18,976 | ||
Total minimum lease payments | 49,850 | ||
Less: imputed interest | 6,900 | ||
Present value of future minimum lease payments | 42,950 | ||
Current portion of operating lease liabilities | 6,046 | $ 6,220 | |
Long-term lease liabilities | $ 36,904 | $ 43,462 | |
Decrease to future right-of-use assets | $ 5,600 | ||
Decrease to future lease liabilities | $ 5,600 |
Leases - Financial Statement Im
Leases - Financial Statement Impact of Adopting ASC 842 (Details) - USD ($) $ in Thousands | Apr. 02, 2022 | Jan. 01, 2022 |
Leases [Abstract] | ||
Operating lease right-of-use asset | $ 31,262 | $ 37,609 |
Present value of future minimum lease payments | $ 42,950 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Schedule of Goodwill (Details) $ in Thousands | 3 Months Ended |
Apr. 02, 2022USD ($) | |
Goodwill | |
Balance as of January 1, 2022 | $ 173,292 |
Purchase accounting adjustments | (1,152) |
Effect of foreign currency translation | (2,176) |
Balance as of April 2, 2022 | 169,964 |
Intangible assets | |
Balance as of January 1, 2022 | 28,410 |
Purchase accounting adjustments | 0 |
Amortization | (1,331) |
Effect of foreign currency translation | (452) |
Balance as of April 2, 2022 | $ 26,627 |
Accrued Expenses (Details)
Accrued Expenses (Details) - USD ($) $ in Thousands | Apr. 02, 2022 | Jan. 01, 2022 |
Accounts Payable, Current [Abstract] | ||
Accrued manufacturing and logistics cost | $ 6,567 | $ 23,038 |
Accrued warranty | 30,239 | 32,019 |
Accrued compensation and benefits | 17,319 | 19,029 |
Accrued income taxes | 642 | 1,788 |
Accrued bonus | 1,991 | 11,375 |
Current portion of operating lease liabilities | 6,046 | 6,220 |
Accrued sales and other indirect taxes payable | 4,922 | 9,599 |
Derivative liability | 2,198 | 2,600 |
Accrued other | 19,458 | 26,950 |
Accrued expenses | $ 89,382 | $ 132,618 |
Derivative Instruments and He_3
Derivative Instruments and Hedging Activities - Schedule of Derivative Instruments (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 02, 2022 | Jan. 01, 2022 | |
Designated as Hedging Instrument [Member] | ||
Derivative [Line Items] | ||
Derivative, Term of Contract | 3 years | |
Derivative, Notional Amount | $ 497,600 | $ 423,300 |
Not Designated as Hedging Instrument [Member] | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | 249,000 | 325,400 |
Not Designated as Hedging Instrument [Member] | Accrued Liabilities [Member] | Foreign Exchange Forward [Member] | ||
Derivative [Line Items] | ||
Derivative instruments (Note 7) | 2,198 | 2,377 |
Not Designated as Hedging Instrument [Member] | Other Current Assets [Member] | Foreign Exchange Forward [Member] | ||
Derivative [Line Items] | ||
Derivative instruments (Note 7) | 9,807 | 8,362 |
Not Designated as Hedging Instrument [Member] | Other Noncurrent Assets [Member] | Foreign Exchange Forward [Member] | ||
Derivative [Line Items] | ||
Derivative instruments (Note 7) | 994 | 1,627 |
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Accrued Liabilities [Member] | Foreign Exchange Forward [Member] | ||
Derivative [Line Items] | ||
Derivative instruments (Note 7) | 0 | 223 |
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Other Noncurrent Liabilities [Member] | Foreign Exchange Forward [Member] | ||
Derivative [Line Items] | ||
Derivative instruments (Note 7) | 74 | 407 |
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Other Current Assets [Member] | Foreign Exchange Forward [Member] | ||
Derivative [Line Items] | ||
Derivative instruments (Note 7) | 10,221 | 4,110 |
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Other Noncurrent Assets [Member] | Foreign Exchange Forward [Member] | ||
Derivative [Line Items] | ||
Derivative instruments (Note 7) | $ 11,549 | $ 9,610 |
Derivative Instruments and He_4
Derivative Instruments and Hedging Activities (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Apr. 02, 2022 | Apr. 03, 2021 | ||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Revenue | $ 291,969 | $ 303,261 | |
Foreign Exchange Forward [Member] | Cash Flow Hedging [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) recognized in OCI on Derivative | [1] | 10,257 | 17,154 |
Other Nonoperating Income (Expense) [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | 2,064 | (10,013) | |
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 | $ 1,639 | $ (517) | |
[1] | The amount represents the change in fair value of derivative contracts due to changes in spot rates. |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value on a Recurring Basis (Details) - USD ($) | 3 Months Ended | |||
Apr. 02, 2022 | Jan. 01, 2022 | |||
Liabilities: | ||||
Unrealized gain on marketable equity securities | $ 1,500,000 | |||
Equity Securities | ||||
Assets: | ||||
Equity Securities, FV-NI, Cost | 0 | $ 23,286 | ||
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||||
Assets: | ||||
Total assets measured at fair value | 13,067,000 | 66,047,000 | ||
Liabilities: | ||||
Total liabilities measured at fair value | 0 | 0 | ||
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Equity Securities | ||||
Assets: | ||||
Fair value of securities | 1,461,000 | [1] | 33,044,000 | |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Derivative Instrument | ||||
Assets: | ||||
Derivative instruments (Note 7) | 0 | 0 | ||
Liabilities: | ||||
Derivative instruments (Note 7) | 0 | 0 | ||
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Money Market Funds | ||||
Assets: | ||||
Money market funds | 11,606,000 | 33,003,000 | ||
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Assets: | ||||
Total assets measured at fair value | [2] | 32,571,000 | 23,709,000 | |
Liabilities: | ||||
Total liabilities measured at fair value | [2] | 2,272,000 | 3,007,000 | |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Equity Securities | ||||
Assets: | ||||
Fair value of securities | [2] | 0 | [1] | 0 |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Derivative Instrument | ||||
Assets: | ||||
Derivative instruments (Note 7) | [2] | 32,571,000 | 23,709,000 | |
Liabilities: | ||||
Derivative instruments (Note 7) | [2] | 2,272,000 | 3,007,000 | |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Money Market Funds | ||||
Assets: | ||||
Money market funds | [2] | 0 | 0 | |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||||
Assets: | ||||
Total assets measured at fair value | 0 | 0 | ||
Liabilities: | ||||
Total liabilities measured at fair value | 0 | 0 | ||
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Equity Securities | ||||
Assets: | ||||
Fair value of securities | 0 | [1] | 0 | |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Derivative Instrument | ||||
Assets: | ||||
Derivative instruments (Note 7) | 0 | 0 | ||
Liabilities: | ||||
Derivative instruments (Note 7) | 0 | 0 | ||
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Money Market Funds | ||||
Assets: | ||||
Money market funds | $ 0 | $ 0 | ||
[1] | The related unrealized gain recorded in other expense, net was $1.5 million for the three months ended April 2, 2022. Marketable equity securities are included in short-term investments on the consolidated balance sheet. | |||
[2] | Level 2 fair value estimates are based on observable inputs other than quoted prices in active markets for identical assets and liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. |
Commitments and Contingencies -
Commitments and Contingencies - Activity Related to Warranty Accrual (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 02, 2022 | Apr. 03, 2021 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||
Balance at beginning of period | $ 32,019 | $ 24,392 |
Provision | 6,036 | 10,185 |
Warranty usage | (7,816) | (10,673) |
Balance at end of period | $ 30,239 | $ 23,904 |
Income Taxes (Details)
Income Taxes (Details) | 3 Months Ended | |
Apr. 02, 2022 | Apr. 03, 2021 | |
Income Tax Disclosure [Abstract] | ||
Effective Income Tax Rate Reconciliation, Percent | 24.00% | (19.50%) |
Industry Segment, Geographic _2
Industry Segment, Geographic Information and Significant Customers - Additional Information (Detail) - segment | 3 Months Ended | |
Apr. 02, 2022 | Apr. 03, 2021 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Number of Reportable Segments | 1 | |
Revenue Benchmark | Retail Customer | Customer Concentration Risk | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Concentration Risk, Percentage | 26.60% | 17.00% |
Subsequent Event (Details)
Subsequent Event (Details) | May 04, 2022 |
Subsequent Event | Credit Agreement | London Interbank Offered Rate (LIBOR) | |
Subsequent Event [Line Items] | |
Basis spread on variable rate | 1.50% |