iRobot (IRBT) 10-Q 10 Nov 22 2022 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Oct. 01, 2022	Oct. 28, 2022
Cover [Abstract]
Document Type	10-Q
Document Period End Date	Oct. 01, 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	Q3
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		27,351,440

Consolidated Balance Sheets (Un

Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Oct. 01, 2022	Jan. 01, 2022
Current assets:
Cash and cash equivalents	$ 89,588	$ 201,457
Short-term investments	0	33,044
Accounts receivable, net	133,055	160,642
Inventory	419,088	333,296
Other current assets	84,067	61,094
Total current assets	725,798	789,533
Property and equipment, net	67,173	78,887
Operating lease right-of-use assets	28,520	37,609
Deferred tax assets	8,223	37,945
Goodwill	159,531	173,292
Intangible Assets, Net	10,948	28,410
Other assets	38,089	38,753
Total assets	1,038,282	1,184,429
Current liabilities:
Accounts payable	233,169	251,298
Accrued expenses	84,359	132,618
Deferred revenue and customer advances	12,875	11,767
Short-term notes payable	90,000	0
Total current liabilities	420,403	395,683
Operating lease liabilities	33,246	43,462
Deferred tax liabilities	1,013	3,250
Other long-term liabilities	21,841	25,311
Total long-term liabilities	56,100	72,023
Total liabilities	476,503	467,706
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; 27,349 and 27,006 shares issued and outstanding, respectively	274	270
Additional paid-in capital	247,656	222,653
Retained earnings	283,517	485,710
Accumulated other comprehensive income	30,332	8,090
Total stockholders’ equity	561,779	716,723
Total liabilities and stockholders’ equity	$ 1,038,282	$ 1,184,429
Preferred stock, shares authorized	5,000,000	5,000,000
Common stock, shares outstanding	27,349,000	27,006,000
Common stock, shares issued	27,349,000	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	Oct. 01, 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	27,349,000	27,006,000
Common stock, shares issued	27,349,000	27,006,000

Consolidated Statements of Inco

Consolidated Statements of Income Statement - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 01, 2022	Oct. 02, 2021	Oct. 01, 2022	Oct. 02, 2021
Revenue	$ 278,191	$ 440,682	$ 825,511	$ 1,109,539
Cost of product revenue	200,947	277,703	558,111	684,190
Amortization of acquired intangible assets	837	225	2,533	675
Total cost of revenue	201,784	277,928	560,644	684,865
Gross profit	76,407	162,754	264,867	424,674
Research and development	41,425	40,262	125,893	120,859
Selling and marketing	60,273	59,055	197,355	186,722
General and administrative	31,508	22,688	84,585	72,587
Amortization of acquired intangible assets	11,568	251	12,603	661
Total operating expenses	144,774	122,256	420,436	380,829
Operating (loss) income	(68,367)	40,498	(155,569)	43,845
Other (expense) income, net	(979)	26,585	(19,906)	26,139
(Loss) income before income taxes	(69,346)	67,083	(175,475)	69,984
Income tax expense	59,020	9,867	26,718	8,083
Net (loss) income	$ (128,366)	$ 57,216	$ (202,193)	$ 61,901
Basic	$ (4.71)	$ 2.09	$ (7.44)	$ 2.22
Diluted	$ (4.71)	$ 2.06	$ (7.44)	$ 2.17
Basic	27,264	27,413	27,159	27,923
Diluted	27,264	27,803	27,159	28,475

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 01, 2022	Oct. 02, 2021	Oct. 01, 2022	Oct. 02, 2021
Net (loss) income	$ (128,366)	$ 57,216	$ (202,193)	$ 61,901
Other comprehensive income:
Net foreign currency translation adjustments	(6,047)	(3,974)	(17,422)	(8,743)
Net unrealized gains on cash flow hedges, net of tax	18,278	5,181	50,865	18,113
Net gains on cash flow hedge reclassified into earnings, net of tax	(7,151)	(878)	(11,201)	(1,420)
Net unrealized losses on marketable securities, net of tax	0	0	0	(4)
Total comprehensive (loss) income	$ (123,286)	$ 57,545	$ (179,951)	$ 69,847

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)		122,000
Stock Issued During Period, Value, Stock Options Exercised	5,157	$ 1	5,156
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures (in shares)		338,000
Stock Issued During Period, Value, Restricted Stock Award, Net of Forfeitures	0	$ 3	(3)
APIC, Share-based Payment Arrangement, Increase for Cost Recognition	16,195		16,195
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	(5,161)	$ 0	(5,161)
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent	7,946		7,946
Adjustments to Additional Paid in Capital Directors Deferred Compensation	64		64
Net (loss) income	$ 61,901			61,901
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	100,000
Effective Income Tax Rate Reconciliation, Percent	11.50%
Stock repurchased and retired during period (in shares)	(1,645,000)
Value of stock repurchased	$ (150,000)	$ (16)	(5,915)	(144,069)
Beginning Balance, Shares		28,050,000
Beginning balance	$ 781,232	$ 281	216,375	557,452	7,124
Issuance of common stock under employee stock plans (in shares)	27,000	1,000
Stock Issued During Period, Value, Stock Options Exercised		$ 0	27
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures (in shares)		105,000
Stock Issued During Period, Value, Restricted Stock Award, Net of Forfeitures	$ 0	$ 1	(1)
APIC, Share-based Payment Arrangement, Increase for Cost Recognition	2,073		2,073
Shares Paid for Tax Withholding for Share Based Compensation (in shares)		(4,000)
Stock Withheld to Cover Tax Withholding Requirements Upon Vesting to Restricted Stock Units Amount	(362)	$ 0	(362)
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent	329
Adjustments to Additional Paid in Capital Directors Deferred Compensation	21		21
Net (loss) income	$ 57,216			57,216
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	200,000
Effective Income Tax Rate Reconciliation, Percent	14.70%
Stock repurchased and retired during period (in shares)		(1,198,000)
Value of stock repurchased	$ (100,000)	$ (12)	(2,541)	(97,447)
Beginning Balance, Shares		26,954,000
Beginning balance	$ 740,536	$ 270	215,592	517,221	7,453
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)		89,000
Stock Issued During Period, Value, Stock Options Exercised	3,274	$ 1	3,273
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures (in shares)		284,000
Stock Issued During Period, Value, Restricted Stock Award, Net of Forfeitures	0	$ 3	(3)
APIC, Share-based Payment Arrangement, Increase for Cost Recognition	23,508		23,508
Shares Paid for Tax Withholding for Share Based Compensation (in shares)		(30,000)
Stock Withheld to Cover Tax Withholding Requirements Upon Vesting to Restricted Stock Units Amount	(1,775)	$ 0	(1,775)
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent	22,242				22,242
Net (loss) income	$ (202,193)			(202,193)
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	900,000
Effective Income Tax Rate Reconciliation, Percent	(15.20%)
Beginning Balance, Shares		27,229,000
Beginning balance	$ 676,776	$ 272	239,369	411,883	25,252
Issuance of common stock under employee stock plans (in shares)		5,000
Stock Issued During Period, Value, Stock Options Exercised	186	$ 0	186
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures (in shares)		118,000
Stock Issued During Period, Value, Restricted Stock Award, Net of Forfeitures	0	$ 2	(2)
APIC, Share-based Payment Arrangement, Increase for Cost Recognition	8,277		8,277
Shares Paid for Tax Withholding for Share Based Compensation (in shares)		(3,000)
Stock Withheld to Cover Tax Withholding Requirements Upon Vesting to Restricted Stock Units Amount	(174)	$ 0	(174)
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent	5,080				5,080
Net (loss) income	$ (128,366)			(128,366)
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	900,000
Effective Income Tax Rate Reconciliation, Percent	(85.10%)
Beginning Balance, Shares	27,349,000	27,349,000
Beginning balance	$ 561,779	$ 274	$ 247,656	$ 283,517	$ 30,332

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Oct. 01, 2022	Oct. 02, 2021
Cash flows from operating activities:
Net (loss) income	$ (202,193)	$ 61,901
Adjustments to reconcile net (loss) income to net cash used in operating activities:
Depreciation and amortization	39,078	23,978
Gain (Loss) on Investments	(18,828)	26,929
Stock-based compensation	23,508	16,195
Deferred income taxes, net	13,090	(8,190)
Other	4,209	4,496
Changes in operating assets and liabilities — (use) source, excluding effects of acquisition
Accounts receivable	23,767	(71,368)
Inventory	(85,447)	(173,986)
Other assets	31,268	(5,851)
Accounts payable	(24,054)	93,530
Accrued expenses and other liabilities	(54,649)	(4,551)
Net cash used in operating activities	(212,595)	(90,775)
Cash flows from investing activities:
Additions of property and equipment	(8,895)	(25,302)
Purchase of investments	(3,150)	(9,641)
Sales and maturities of investments	17,723	63,976
Net cash provided by investing activities	5,678	29,033
Cash flows from financing activities:
Proceeds from employee stock plans	3,274	5,157
Income tax withholding payment associated with restricted stock vesting	(1,775)	(5,161)
Stock repurchases	0	(150,000)
Proceeds from borrowings	90,000	0
Net cash provided by (used in) financing activities	91,499	(150,004)
Effect of exchange rate changes on cash and cash equivalents	3,549	(2,877)
Net decrease in cash and cash equivalents	(111,869)	(214,623)
Cash and cash equivalents, at beginning of period	201,457	432,635
Cash and cash equivalents, at end of period	$ 89,588	$ 218,012

Description of Business

Description of Business	9 Months Ended
	Oct. 01, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Description of Business	Description of Business iRobot 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. Merger Agreement On August 4, 2022, the Company entered into an Agreement and Plan of Merger (the "Merger Agreement") by and among the Company, Amazon.com, Inc., a Delaware corporation ("Parent" or "Amazon") and Martin Merger Sub, Inc., a Delaware corporation and a wholly owned subsidiary of Parent ("Merger Sub"), pursuant to which Merger Sub will merge with and into the Company (the "Merger"), with the Company surviving the Merger as a wholly owned subsidiary of Parent. As a result of the Merger, each share of common stock of the Company, par value $0.01 per share ("Common Stock"), outstanding immediately prior to the effective time of the Merger (the "Effective Time") (subject to certain exceptions, including shares of Common Stock owned by the Company, Merger Sub, Parent or any of their respective direct or indirect wholly owned subsidiaries and shares of Common Stock owned by stockholders of the Company who have validly demanded and not withdrawn appraisal rights in accordance with Section 262 of the General Corporation Law of the State of Delaware) will, at the Effective Time, automatically be cancelled and converted into the right to receive $61.00 in cash, without interest and subject to applicable withholding taxes. If the Merger is consummated, the Company’s Common Stock will be delisted from the Nasdaq Stock Market LLC and deregistered under the Securities Exchange Act of 1934.

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Oct. 01, 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. Liquidity The accompanying unaudited consolidated financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the continuity of operations, realization of assets, and liquidation of liabilities in the normal course of business. The Company has a long history of profitable operations, positive operating cash flows and substantial liquidity that was further strengthened during the first year of the COVID-19 pandemic as consumer demand for iRobot's products increased considerably. For the nine months ended October 1, 2022, the Company’s revenue declined 26% from the nine months ended October 2, 2021 primarily due to lower orders from retailers and distributors in the United States and EMEA largely resulting from a decline in consumer sentiment, and resultant spending, driven by high inflation, rising interest rates, rising energy costs, the potential recessionary outlook and geopolitical instability, which was exacerbated by the Russia-Ukraine war. The lower revenue has resulted in operating losses for each of the first three quarters of 2022 totaling $155.6 million and operating cash outflows have exceeded cash inflows during this period. As a result, the Company's cash and cash equivalents and short-term investments have declined from $234.5 million as of January 1, 2022 to $89.6 million as of October 1, 2022 and the Company has incurred $90.0 million in outstanding borrowings from its $150.0 million unsecured revolving line of credit. Outstanding borrowings are due to be repaid under the Credit Agreement (as defined below) by June 2023 when the line of credit expires. On October 28, 2022, the Company entered into a Third Amendment (the "Third Amendment") to the Amended and Restated Credit Agreement (the "Credit Amendment") with Bank of America N.A. (the "Lender"), which temporarily increases the commitments under the facility to $200.0 million for the time period from October 28, 2022 to December 29, 2022 (see Note 7 for additional details about our Credit Agreement). Following the execution of the Third Amendment, the Company has initiated discussions with the Lender about extending the length of the credit facility by up to 24 months. There can be no assurance that any such negotiations to further amend the terms and conditions of the Company’s credit facility will be successful. Management has considered and assessed its ability to continue as a going concern for the one year from the date that the unaudited consolidated financial statements are issued. Management’s assessment included the preparation of cash flow forecasts taking into account actions already implemented. Management considered additional actions within its control that it would implement, if necessary, to maintain liquidity and operations in the ordinary course. Management has already undertaken the following actions to improve profitability and operating cash flows and align the organization to the lower revenue level: • During August 2022, the Company initiated a restructuring of its operations designed to better align its cost structure with near-term revenue and cash flow generation, advance key strategic priorities, increase efficiencies and improve its profitability going forward. As part of this restructuring, the Company reduced its workforce and terminated approximately 100 employees, which represents 8% of its workforce and eliminated a number of open positions entering the third quarter of 2022. The Company ended the third quarter of 2022 with 1,316 employees, a reduction of 122 employees since the end of the second quarter of 2022. In addition to the reduction of its headcount, the Company plans to consolidate its global facilities footprint, which includes taking action to resize its global headquarters by the end of 2022. iRobot currently anticipates that its second-half 2022 restructuring actions will deliver net cost savings in the range of approximately $5 million to $6 million in the fourth quarter of 2022 with approximately $30 million in net 2023 cost savings, including actions associated with the facilities consolidation. • The Company continued to limit hiring, reduced discretionary spending, managed the timing of payments to suppliers, recalibrated short-term incentive compensation and further lowered its investment in working media. At present, it remains difficult to forecast precisely when, or if, consumer spending for iRobot's products will improve. As a result, management’s efforts to manage the business currently factors in the loss of a customer, which represents approximately 4% of year-to-date fiscal 2022 revenue, believed to be caused by the pending Merger into scenarios that range from relatively unchanged market conditions to further deterioration in market conditions. In addition, due to the uncertainty of timing on the close of the Merger, its impact on liquidity is not considered in the Company's liquidity plan. Additional actions within its control that management would implement, if necessary, to maintain liquidity and operations without using its $150.0 million revolving credit facility include: • Lowering personnel costs by carefully managing the size of the workforce and realigning resources through ongoing attrition and limited, if any, new hiring activity; • Further reducing discretionary spending in all areas of the business; • Decreasing working media spending; • Executing on plans to reduce the global facilities footprint through subleasing agreements; • Carefully managing the timing of payments to suppliers as well as working to amend agreements with certain suppliers to further extend the timing of payments; • Optimizing its production volumes with contract manufacturers by reducing inventory supply forecast for cancelable purchase orders; • Adjusting the timing and scope of new non-robotic product launches and development projects; and • Deferring or eliminating certain capital expenditures. While management estimates such actions will be sufficient to allow it to maintain liquidity and its operations in the ordinary course for at least 12 months from the issuance of these financial statements, there can be no assurance the Company will generate sufficient future cash flows from operations due to potential factors, including, but not limited to, further inflation, the continued rising interest rates, ongoing recessionary conditions or continued reduced demand for the Company’s products. If the Company is not successful in increasing demand for its products, or if macroeconomic conditions further constrain consumer demand, the Company may continue to experience adverse impacts to revenue and profitability. Should the Company be unable to refinance its existing credit facility, or require further funding in the future, there can be no assurance that it will be able to obtain additional debt financing on terms acceptable to the Company, or at all. The consolidated financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classification of liabilities that may result from the outcome of these uncertainties. 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 (expense) income, net at the end of each reporting period. As of January 1, 2022, the Company had $33.0 million in short term investments made up of 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 first quarter of 2022, the Company sold these Matterport shares and received net proceeds of $16.2 million. In addition, the Company received an additional 0.2 million shares of Matterport during the first quarter of 2022 upon achievement of conditions set forth in the merger agreement, and sold these shares during the second quarter of 2022 for net proceeds of $1.2 million. During the nine months ended October 1, 2022, the Company recognized losses of $17.1 million in other (expense) income, net related to the sales of Matterport shares. As of October 1, 2022, the Company did not have any short term investments. 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 October 1, 2022 and January 1, 2022, the Company had an allowance for credit losses of $5.3 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 and entitles the Company to a refund of approximately $32.0 million in tariffs paid. During the first quarter of 2022, the Company recognized $11.7 million of refunds as operating income (reduction to cost of product revenue) related to tariffs paid on Roomba robots imported after October 12, 2021 and sold during fiscal 2021. As of October 1, 2022, the Company had received $1.6 million of the tariff refund and the outstanding refund receivable of $30.4 million is recorded in other current assets on the consolidated balance sheet. While the outstanding tariff refund claims remain subject to the approval of U.S. Customs, the Company expects to recover the entire refund balance within the next twelve months. 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) income, net on the consolidated statement of operations. At October 1, 2022 and January 1, 2022, the Company's equity securities without readily determinable fair values totaled $16.0 million and $16.3 million, respectively, and are included in other assets on the consolidated balance sheets. Restructuring Charges During August 2022, the Company initiated a restructuring of its operations designed to better align its cost structure with near-term revenue and cash flow generation ("August 2022 restructuring"). The Company recorded restructuring charges of $5.0 million for employee severance and benefit costs related to the termination of approximately 100 employees during the three months ended October 1, 2022. The Company made severance and benefit payments of approximately $1.9 million during the three months ended October 1, 2022 resulting from the restructuring, and expects the remaining balance to be substantially paid during the fourth quarter of 2022. These restructuring charges are recorded in the consolidated statement of operations. 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 Nine Months Ended October 1, 2022 October 2, 2021 October 1, 2022 October 2, 2021 Net (loss) income $ (128,366) $ 57,216 $ (202,193) $ 61,901 Basic weighted-average common shares outstanding 27,264 27,413 27,159 27,923 Dilutive effect of employee stock awards — 390 — 552 Diluted weighted-average common shares outstanding 27,264 27,803 27,159 28,475 Net (loss) income per share - Basic $ (4.71) $ 2.09 $ (7.44) $ 2.22 Net (loss) income per share - Diluted $ (4.71) $ 2.06 $ (7.44) $ 2.17

Revenue Recognition

Revenue Recognition	9 Months Ended
	Oct. 01, 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 October 1, 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 October 1, 2022, the Company had reserves for product returns of $41.1 million and other credits and incentives of $68.3 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 increases or reduces revenue to reflect the impact. During the three and nine months ended October 1, 2022 and October 2, 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 Nine Months Ended October 1, 2022 October 2, 2021 October 1, 2022 October 2, 2021 United States $ 147,075 $ 216,542 $ 439,626 $ 528,138 EMEA 52,454 132,130 174,037 339,918 Japan 53,187 66,823 142,637 154,652 Other 25,475 25,187 69,211 86,831 Total revenue $ 278,191 $ 440,682 $ 825,511 $ 1,109,539 Contract Balances The following table provides information about receivables and contract liabilities from contracts with customers (in thousands): October 1, 2022 January 1, 2022 Accounts receivable, net $ 126,606 $ 155,659 Unbilled receivables 7,862 8,747 Contract liabilities 22,696 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 and trade-in liability recognized in excess of billings. Contract liabilities include deferred revenue associated with the Cloud Services, extended warranty plans and prepayments received from customers in advance of product shipments. During the three months ended October 1, 2022 and October 2, 2021, the Company recognized $5.7 million and $6.6 million, respectively, of the contract liability balance as revenue upon transfer of the products or services to customers. During the nine months ended October 1, 2022 and October 2, 2021, the Company recognized $10.7 million and $10.5 million, respectively, of the contract liability balance as revenue upon transfer of the product or services to customers.

Leases

Leases	9 Months Ended
	Oct. 01, 2022
Leases [Abstract]
Leases	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. The operating leases expire at various dates through 2030. The components of lease expense were as follows (in thousands): Three Months Ended Nine Months Ended October 1, 2022 October 2, 2021 October 1, 2022 October 2, 2021 Operating lease cost $ 1,761 $ 2,181 $ 4,775 $ 6,315 Variable lease cost 861 837 2,789 2,765 Total lease cost $ 2,622 $ 3,018 $ 7,564 $ 9,080 Supplemental cash flow information related to leases was as follows (in thousands): Three Months Ended Nine Months Ended October 1, 2022 October 2, 2021 October 1, 2022 October 2, 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 1,995 $ 2,150 $ 6,028 $ 6,529 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ — $ — $ — $ — At October 1, 2022, the Company's weighted average discount rate wa s 4.03%, while the weighted average remaining lease term w as 7.01 years. Maturities of operating lease liabilities were as follows as of October 1, 2022 (in thousands): Remainder of 2022 $ 1,529 2023 7,236 2024 5,968 2025 5,723 2026 5,753 Thereafter 18,884 Total minimum lease payments $ 45,093 Less: imputed interest 6,027 Present value of future minimum lease payments $ 39,066 Less: current portion of operating lease liabilities (Note 6) $ 5,820 Long-term lease liabilities $ 33,246

Goodwill and Other Intangible A

Goodwill and Other Intangible Assets	9 Months Ended
	Oct. 01, 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 nine months ended October 1, 2022 (in thousands): Goodwill Intangible assets Balance as of January 1, 2022 $ 173,292 $ 28,410 Purchase accounting adjustments (583) — Amortization — (15,136) Effect of foreign currency translation (13,178) (2,326) Balance as of October 1, 2022 $ 159,531 $ 10,948 During the three months ended October 1, 2022, the Company evaluated its goodwill and long-lived assets, including intangible assets, for indicators of impairment given recent and anticipated unfavorable changes in the macroeconomic environment on the Company's short-term forecasts as well as the Company's negative operating cash flows and operating losses. As a result, the Company determined indicators of impairment existed for the asset group associated with the Company's acquisition of Aeris Cleantec AG and performed an undiscounted cash flow analysis. Based on this undiscounted cash flow analysis, the Company determined that the cash flows expected to be generated by this asset group over the estimated remaining useful life were not sufficient to recover the carrying value of the asset group. As a result, the Company was required to perform Step 3 of the impairment test and determine the fair value of the asset group utilizing the income approach which is based on a discounted cash flow analysis. The Company concluded that the fair value of the asset group was below its carrying value and recorded an $11.1 million impairment loss on these intangible assets. The impairment loss is recorded in amortization of acquired intangible assets under operating expenses on the consolidated statement of operations. In connection with this analysis, the Company also evaluated goodwill for impairment using a qualitative analysis and determined goodwill was not impaired. As part of this analysis, the Company assessed goodwill using an entity valuation, which was derived based on the attribution of the agreed-upon purchase price for the Merger.

Accrued Expenses

Accrued Expenses	9 Months Ended
	Oct. 01, 2022
Accrued Liabilities, Current [Abstract]
Accrued Expenses	Accrued Expenses Accrued expenses consisted of the following at (in thousands): October 1, 2022 January 1, 2022 Accrued warranty $ 25,820 $ 32,019 Accrued compensation and benefits 16,543 19,029 Current portion of operating lease liabilities 5,820 6,220 Accrued sales and other indirect taxes payable 5,181 9,599 Derivative liability 4,514 2,600 Accrued bonus 3,684 11,375 Restructuring-related liabilities 3,239 — Accrued manufacturing and logistics cost 2,969 23,038 Accrued income taxes 2,879 1,788 Accrued other 13,710 26,950 $ 84,359 $ 132,618

Working Capital Facility

Working Capital Facility	9 Months Ended
	Oct. 01, 2022
Debt Disclosure [Abstract]
Working Capital Facility	Working Capital Facility Credit Facility The Company has a $150.0 million unsecured revolving line of credit which expires in June 2023. On May 4, 2022, the Company entered into a Second Amendment with an effective date of March 31, 2022 (the "Second Amendment") to the "Credit Agreement". The Second Amendment waived 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 Second Amendment also increased the borrowing rate under the facility for 2022 to LIBOR plus 1.5%. On October 28, 2022, the Company entered into the Third Amendment. The Third Amendment temporarily increases the commitments under the facility to $200.0 million for the time period from October 28, 2022 to December 29, 2022. On December 30, 2022, the commitment will be reduced by $50.0 million and will return to the previous $150.0 million. In addition, the Third Amendment replaces the quarterly tested leverage and interest coverage covenants with a new minimum cash requirement of $25.0 million to be tested on October 31, 2022 and November 30, 2022. The Third Amendment also requires that the borrowing under the Credit Agreement must be below $75.0 million on December 30, 2022 and for ten The Third Amendment changes the borrowing rate under the Credit Agreement to SOFR plus 1.5% plus a credit spread adjustment of 0.1%. In connection with the Third Amendment, the Company entered into a security and pledge agreement granting the Lender a security interest in substantially all of its U.S. assets. As of October 1, 2022, the Company had outstanding borrowings of $90.0 million under the revolving credit facility, with $60.0 million available for borrowing. As of October 1, 2022, the Company was in compliance with the covenants under the Credit Agreement.

Derivative Instruments and Hedg

Derivative Instruments and Hedging Activities	9 Months Ended
	Oct. 01, 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 less. At October 1, 2022 and January 1, 2022, the Company had outstanding cash flow hedges with a total notional value of $380.8 million and $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 October 1, 2022 and January 1, 2022, the Company had outstanding foreign currency economic hedges with a total notional value of $283.4 million and $325.4 million, respectively. During the three months ended October 1, 2022, the appreciation of the U.S. dollar resulted in the Company’s foreign currency forward contracts being substantially in-the-money. Given the increased cash value of the hedges and the Company’s overall desire to strengthen its cash position, the Company terminated the contracts during the three months ended October 1, 2022, resulting in cash proceeds of $51.7 million which were recognized within cash used in operating activities in the consolidated statement of cash flows. Amounts previously recorded in AOCI were frozen at the time of termination, and will be recognized in earnings when the original forecasted transaction occurs. In conjunction with the termination of the existing contracts, the Company entered into new foreign currency forward contracts with the same notional values and value dates. The fair values of derivative instruments were as follows (in thousands): Fair Value Classification October 1, 2022 January 1, 2022 Derivatives not designated as hedging instruments: Foreign currency forward contracts Other current assets $ 16,251 $ 8,362 Foreign currency forward contracts Other assets — 1,627 Foreign currency forward contracts Accrued expenses 4,514 2,377 Derivatives designated as cash flow hedges: Foreign currency forward contracts Other current assets $ 4,568 $ 4,110 Foreign currency forward contracts Other assets 11,667 9,610 Foreign currency forward contracts Accrued expenses — 223 Foreign currency forward contracts Long-term liabilities — 407 Gain (loss) associated with derivative instruments not designated as hedging instruments were as follows (in thousands): Three Months Ended Nine Months Ended Classification October 1, 2022 October 2, 2021 October 1, 2022 October 2, 2021 Gain (loss) recognized in income Other (expense) income, net $ 1,475 $ (1,606) $ 7,707 $ (11,229) 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 Nine Months Ended October 1, 2022 October 2, 2021 October 1, 2022 October 2, 2021 Foreign currency forward contracts $ 24,219 $ 6,851 $ 67,680 $ 23,959 (1) The amount represents the change in fair value of derivative contracts due to changes in spot rates. Gain recognized in earnings on cash flow hedging instruments Three Months Ended Nine Months Ended October 1, 2022 October 2, 2021 October 1, 2022 October 2, 2021 Revenue Revenue Consolidated statements of operations in which the effects of cash flow hedging instruments are recorded $ 278,191 $ 440,682 $ 825,511 $ 1,109,539 Gain on cash flow hedging relationships: Foreign currency forward contracts: Amount of gain reclassified from AOCI into earnings $ 9,503 $ 1,161 $ 14,885 $ 1,878

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Oct. 01, 2022
Fair Value Disclosures [Abstract]
Fair Value Measurements	Fair Value Measurements Fair Value Measurements - Recurring Basis The Company’s financial assets and liabilities measured at fair value on a recurring basis were as follows (in thousands): Fair Value Measurements as of Level 1 Level 2 (1) Level 3 Assets: Money market funds $ 56,841 $ — $ — Derivative instruments (Note 8) — 32,486 — Total assets measured at fair value $ 56,841 $ 32,486 $ — Liabilities: Derivative instruments (Note 8) $ — $ 4,514 $ — Total liabilities measured at fair value $ — $ 4,514 $ — 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 8) — 23,709 — Total assets measured at fair value $ 66,047 $ 23,709 $ — Liabilities: Derivative instruments (Note 8) $ — $ 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. Fair Value Measurements - Nonrecurring Basis The Company measures the fair value of certain assets on a nonrecurring basis when events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. During the three months ended October 1, 2022, in connection with the long-lived assets impairment analysis, certain intangible assets were measured and written down to fair value on a nonrecurring basis as a result of impairment. The fair value measurements were determined using a discounted cash flow method with unobservable inputs and were classified within Level 3 of the fair value hierarchy. The fair value of the remaining intangible assets was $5.5 million. The Company recognized an impairment charge of $11.1 million related to intangible assets on its consolidated statement of operations. See Note 5, Goodwill and Other Intangible Assets , for additional information.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Oct. 01, 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 October 1, 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 Nine Months Ended October 1, 2022 October 2, 2021 October 1, 2022 October 2, 2021 Balance at beginning of period $ 26,814 $ 24,718 $ 32,019 $ 24,392 Provision 4,035 10,913 14,071 31,334 Warranty usage (5,029) (7,570) (20,270) (27,665) Balance at end of period $ 25,820 $ 28,061 $ 25,820 $ 28,061 Merger Contingencies On August 4, 2022, the Company entered into the Merger Agreement with Amazon.com, Inc., subject to the terms of which Amazon has agreed to acquire the Company. The Merger is conditioned upon, among other things, the expiration of the applicable waiting period (and any extension thereof) under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended ("HSR Act"), certain other approvals, clearances or expirations of waiting periods under other antitrust laws and foreign investment laws, and other customary closing conditions. On September 19, 2022, the Company and Amazon each received a request for additional information and documentary material (the "Second Request") from the Federal Trade Commission ("FTC") in connection with the FTC's review of the transactions contemplated by the Merger Agreement. The effect of the Second Request is to extend the waiting period imposed by the HSR Act, until 30 days after the Company and Amazon have substantially complied with the Second Request, unless that period is extended voluntarily by the parties or terminated sooner by the FTC. The Company and Amazon continue to work cooperatively with the FTC staff in its review of the Merger. Completion of the Merger remains subject to the expiration or termination of the waiting period under the HSR Act. At a special meeting of stockholders of the Company on October 17, 2022, stockholders approved the Merger. In connection with the transaction, the Company expects to incur professional fees and expenses of approximately $30.0 million that are contingent upon consummation of the Merger.

Income Taxes (Notes)

Income Taxes (Notes)	9 Months Ended
	Oct. 01, 2022
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes 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. The Company also records the tax effects of certain discrete items during the interim period in which they occur. Such discrete items include the tax effects of changes in a valuation allowance. In assessing the recoverability of its deferred tax assets, the Company evaluates all available evidence, both positive and negative, to assess whether it is more likely than not that sufficient future taxable income will be generated to permit use of existing deferred tax assets in each taxpaying jurisdiction. For any deferred tax asset that exceeds the amount for which it is more likely than not that the Company will realize a benefit, the Company establishes a valuation allowance. During the three months ended October 1, 2022, the Company concluded that, based on its evaluation of available positive and negative evidence, it is no longer more likely than not that its net U.S. federal and state deferred tax assets are recoverable. In determining the recoverability of its U.S. deferred tax assets, the Company considered its forecasted cumulative loss projected for the three-year period ended December 31, 2022, as well as the current macroeconomic trends, and expected future reversals of existing taxable temporary differences. Such objective negative evidence limits the Company's ability to consider other subjective evidence, such as its projections for future growth. Given the weight of objectively verifiable historical losses from the Company's U.S. operations, the Company recorded a valuation allowance on all of its U.S. federal and state deferred tax assets resulting in a charge of $57.5 million during the three months ended October 1, 2022. The Company expects to continue to record a valuation allowance against these assets until sufficient positive evidence exists to support its reversal. The Company recorded an income tax expense of $59.0 million and $9.9 million for the three months ended October 1, 2022 and October 2, 2021, respectively. The $59.0 million income tax expense for the three months ended October 1, 2022 resulted in an effective income tax rate of (85.1)%. The $9.9 million income tax expense for the three months ended October 2, 2021 resulted in an effective tax rate of 14.7%. The change in the effective income tax rate was primarily driven by the $57.5 million valuation allowance recorded against the Company's U.S. net deferred tax assets during the current fiscal quarter. The Company's (85.1)% effective rate of income tax for the three months ended October 1, 2022 was higher than the federal statutory tax rate of 21% primarily because of the valuation allowance recorded against its U.S. deferred tax assets. The Company recorded an income tax expense of $26.7 million and $8.1 million for the nine months ended October 1, 2022 and October 2, 2021, respectively. The $26.7 million income tax expense for the nine months ended October 1, 2022 resulted in an effective tax rate of (15.2)%. The $8.1 million income tax expense for the nine months ended October 2, 2021 resulted in an effective tax rate of 11.5%. The change in the effective income tax rate was primarily due to the valuation allowance recorded during the current year compared to the recognition of discrete tax benefits related to stock-based compensation during the nine months ended October 2, 2021.

Industry Segment, Geographic In

Industry Segment, Geographic Information and Significant Customers	9 Months Ended
	Oct. 01, 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 October 1, 2022 and October 2, 2021, the Company generated 25.0% and 26.6%, respectively, of total revenue from one of its retailers. For the nine months ended October 1, 2022 and October 2, 2021, the Company generated 26.2% and 25.9%, respectively, of total revenue from one of its retailers.

Stock-Based Compensation

Stock-Based Compensation	9 Months Ended
	Oct. 01, 2022
Equity [Abstract]
Stock-Based Compensation	Stock-Based Compensation Employee Stock Purchase Plan In May 2017, the Company’s stockholders approved the 2017 Employee Stock Purchase Plan ("ESPP"). Eligible employees may purchase the Company’s common stock through payroll deductions at a price equal to 85% of the lower of the fair market values of the stock as of the beginning or the end of six-month offering periods beginning November 15 and May 15 of each year. An employee’s payroll deductions under the ESPP are limited to 15% of the employee’s compensation, up to $4,000 each period, for the purchase of common stock not to exceed 1,000 shares per offering period. As of October 1, 2022, there were 452,345 shares reserved for future issuance under the ESPP. The current offering period under the ESPP is scheduled to close on November 15, 2022 unless the closing of the Merger occurs sooner (the "Final Offering"), and under the terms of the Merger Agreement, no additional offering period may be commenced. Each participant’s contributions under the ESPP shall be used to purchase shares of the Company’s common stock in accordance with the terms of the ESPP at the end of the Final Offering, and the Company will terminate the ESPP immediately prior to, but contingent upon the occurrence of, the closing of the Merger.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Oct. 01, 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 October 1, 2022 and January 1, 2022, the Company had an allowance for credit losses of $5.3 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 (expense) 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) income, net on the consolidated statement of operations. At October 1, 2022 and January 1, 2022, the Company's equity securities without readily determinable fair values totaled $16.0 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 Nine Months Ended October 1, 2022 October 2, 2021 October 1, 2022 October 2, 2021 Net (loss) income $ (128,366) $ 57,216 $ (202,193) $ 61,901 Basic weighted-average common shares outstanding 27,264 27,413 27,159 27,923 Dilutive effect of employee stock awards — 390 — 552 Diluted weighted-average common shares outstanding 27,264 27,803 27,159 28,475 Net (loss) income per share - Basic $ (4.71) $ 2.09 $ (7.44) $ 2.22 Net (loss) income per share - Diluted $ (4.71) $ 2.06 $ (7.44) $ 2.17

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Tables)	9 Months Ended
	Oct. 01, 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 Nine Months Ended October 1, 2022 October 2, 2021 October 1, 2022 October 2, 2021 Net (loss) income $ (128,366) $ 57,216 $ (202,193) $ 61,901 Basic weighted-average common shares outstanding 27,264 27,413 27,159 27,923 Dilutive effect of employee stock awards — 390 — 552 Diluted weighted-average common shares outstanding 27,264 27,803 27,159 28,475 Net (loss) income per share - Basic $ (4.71) $ 2.09 $ (7.44) $ 2.22 Net (loss) income per share - Diluted $ (4.71) $ 2.06 $ (7.44) $ 2.17

Revenue Recognition (Tables)

Revenue Recognition (Tables)	9 Months Ended
	Oct. 01, 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 Nine Months Ended October 1, 2022 October 2, 2021 October 1, 2022 October 2, 2021 United States $ 147,075 $ 216,542 $ 439,626 $ 528,138 EMEA 52,454 132,130 174,037 339,918 Japan 53,187 66,823 142,637 154,652 Other 25,475 25,187 69,211 86,831 Total revenue $ 278,191 $ 440,682 $ 825,511 $ 1,109,539
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): October 1, 2022 January 1, 2022 Accounts receivable, net $ 126,606 $ 155,659 Unbilled receivables 7,862 8,747 Contract liabilities 22,696 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 and trade-in liability recognized in excess of billings. Contract liabilities include deferred revenue associated with the Cloud Services, extended warranty plans and prepayments received from customers in advance of product shipments. During the three months ended October 1, 2022 and October 2, 2021, the Company recognized $5.7 million and $6.6 million, respectively, of the contract liability balance as revenue upon transfer of the products or services to customers. During the nine months ended October 1, 2022 and October 2, 2021, the Company recognized $10.7 million and $10.5 million, respectively, of the contract liability balance as revenue upon transfer of the product or services to customers.

Leases (Tables)

Leases (Tables)	9 Months Ended
	Oct. 01, 2022
Leases [Abstract]
Lease, Cost [Table Text Block]	The components of lease expense were as follows (in thousands): Three Months Ended Nine Months Ended October 1, 2022 October 2, 2021 October 1, 2022 October 2, 2021 Operating lease cost $ 1,761 $ 2,181 $ 4,775 $ 6,315 Variable lease cost 861 837 2,789 2,765 Total lease cost $ 2,622 $ 3,018 $ 7,564 $ 9,080
Schedule of Leases, Supplemental Cash Flow [Table Text Block]	Supplemental cash flow information related to leases was as follows (in thousands): Three Months Ended Nine Months Ended October 1, 2022 October 2, 2021 October 1, 2022 October 2, 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 1,995 $ 2,150 $ 6,028 $ 6,529 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 October 1, 2022 (in thousands): Remainder of 2022 $ 1,529 2023 7,236 2024 5,968 2025 5,723 2026 5,753 Thereafter 18,884 Total minimum lease payments $ 45,093 Less: imputed interest 6,027 Present value of future minimum lease payments $ 39,066 Less: current portion of operating lease liabilities (Note 6) $ 5,820 Long-term lease liabilities $ 33,246

Goodwill and Other Intangible_2

Goodwill and Other Intangible Assets (Tables)	9 Months Ended
	Oct. 01, 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 nine months ended October 1, 2022 (in thousands): Goodwill Intangible assets Balance as of January 1, 2022 $ 173,292 $ 28,410 Purchase accounting adjustments (583) — Amortization — (15,136) Effect of foreign currency translation (13,178) (2,326) Balance as of October 1, 2022 $ 159,531 $ 10,948

Accrued Expenses (Tables)

Accrued Expenses (Tables)	9 Months Ended
	Oct. 01, 2022
Accrued Liabilities, Current [Abstract]
Components of Accrued Expenses	Accrued expenses consisted of the following at (in thousands): October 1, 2022 January 1, 2022 Accrued warranty $ 25,820 $ 32,019 Accrued compensation and benefits 16,543 19,029 Current portion of operating lease liabilities 5,820 6,220 Accrued sales and other indirect taxes payable 5,181 9,599 Derivative liability 4,514 2,600 Accrued bonus 3,684 11,375 Restructuring-related liabilities 3,239 — Accrued manufacturing and logistics cost 2,969 23,038 Accrued income taxes 2,879 1,788 Accrued other 13,710 26,950 $ 84,359 $ 132,618

Derivative Instruments and He_2

Derivative Instruments and Hedging Activities (Tables)	9 Months Ended
	Oct. 01, 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 October 1, 2022 January 1, 2022 Derivatives not designated as hedging instruments: Foreign currency forward contracts Other current assets $ 16,251 $ 8,362 Foreign currency forward contracts Other assets — 1,627 Foreign currency forward contracts Accrued expenses 4,514 2,377 Derivatives designated as cash flow hedges: Foreign currency forward contracts Other current assets $ 4,568 $ 4,110 Foreign currency forward contracts Other assets 11,667 9,610 Foreign currency forward contracts Accrued expenses — 223 Foreign currency forward contracts Long-term liabilities — 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 Nine Months Ended Classification October 1, 2022 October 2, 2021 October 1, 2022 October 2, 2021 Gain (loss) recognized in income Other (expense) income, net $ 1,475 $ (1,606) $ 7,707 $ (11,229) Gain recognized in earnings on cash flow hedging instruments Three Months Ended Nine Months Ended October 1, 2022 October 2, 2021 October 1, 2022 October 2, 2021 Revenue Revenue Consolidated statements of operations in which the effects of cash flow hedging instruments are recorded $ 278,191 $ 440,682 $ 825,511 $ 1,109,539 Gain on cash flow hedging relationships: Foreign currency forward contracts: Amount of gain reclassified from AOCI into earnings $ 9,503 $ 1,161 $ 14,885 $ 1,878
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 Nine Months Ended October 1, 2022 October 2, 2021 October 1, 2022 October 2, 2021 Foreign currency forward contracts $ 24,219 $ 6,851 $ 67,680 $ 23,959 (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)	9 Months Ended
	Oct. 01, 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 $ 56,841 $ — $ — Derivative instruments (Note 8) — 32,486 — Total assets measured at fair value $ 56,841 $ 32,486 $ — Liabilities: Derivative instruments (Note 8) $ — $ 4,514 $ — Total liabilities measured at fair value $ — $ 4,514 $ — 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 8) — 23,709 — Total assets measured at fair value $ 66,047 $ 23,709 $ — Liabilities: Derivative instruments (Note 8) $ — $ 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.

Commitments and Contingencies (

Commitments and Contingencies (Tables)	9 Months Ended
	Oct. 01, 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 Nine Months Ended October 1, 2022 October 2, 2021 October 1, 2022 October 2, 2021 Balance at beginning of period $ 26,814 $ 24,718 $ 32,019 $ 24,392 Provision 4,035 10,913 14,071 31,334 Warranty usage (5,029) (7,570) (20,270) (27,665) Balance at end of period $ 25,820 $ 28,061 $ 25,820 $ 28,061

Description of Business (Detail

Description of Business (Details) - $ / shares	Aug. 04, 2022	Oct. 01, 2022	Jan. 01, 2022
Business Acquisition [Line Items]
Common stock, par value (in dollars per share)		$ 0.01	$ 0.01
Amazon.com, Inc. and Martin Merger Sub, Inc.
Business Acquisition [Line Items]
Common stock, par value (in dollars per share)	$ 0.01
Cash portion, cash per share for common stock converted (in dollars per share)	$ 61

Summary of Significant Accoun_4

Summary of Significant Accounting Policies - Additional Information (Details) $ in Thousands, shares in Millions		3 Months Ended					9 Months Ended		12 Months Ended
	Jan. 01, 2022 USD ($) shares	Dec. 31, 2022 USD ($)	Oct. 01, 2022 USD ($) employee shares	Jul. 02, 2022 USD ($)	Apr. 02, 2022 USD ($) shares	Oct. 02, 2021 USD ($) shares	Oct. 01, 2022 USD ($) employee shares	Oct. 02, 2021 USD ($) shares	Dec. 30, 2023 USD ($)	Dec. 30, 2022 USD ($)	Oct. 28, 2022 USD ($)	Mar. 23, 2022 USD ($)
Debt and Equity Securities, FV-NI [Line Items]
Decrease in revenue							26%
Operating (loss) income			$ (68,367)			$ 40,498	$ (155,569)	$ 43,845
Cash, cash equivalents and short-term investments	$ 234,500		$ 89,600				$ 89,600
Number of positions eliminated | employee			100
Percentage of workforce eliminated			8%
Number of employees | employee			1,316				1,316
Decrease in employees | employee			122				122
Percentage of year to date revenue related to customer loss							4%
Short-term investments	33,044		$ 0				$ 0
Allowance for credit loss	4,600		5,300				5,300
Refund in tariffs paid			30,400				30,400					$ 32,000
Cash received from tariff refund			1,600				1,600
Equity Securities without Readily Determinable Fair Value, Amount	$ 16,300		16,000				$ 16,000
Restructuring charges			5,000
Payments for restructuring charges			$ 1,900
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | shares			0.9			0.2	0.9	0.1
Forecast
Debt and Equity Securities, FV-NI [Line Items]
Decrease in operating expenses and cost of goods									$ 30,000
Forecast | Minimum
Debt and Equity Securities, FV-NI [Line Items]
Decrease in operating expenses and cost of goods		$ 5,000
Forecast | Maximum
Debt and Equity Securities, FV-NI [Line Items]
Decrease in operating expenses and cost of goods		$ 6,000
Revolving Credit Facility | Line of Credit
Debt and Equity Securities, FV-NI [Line Items]
Borrowings under revolving credit facility			$ 90,000				$ 90,000
Unsecured revolving line of credit			$ 150,000				150,000
Revolving Credit Facility | Line of Credit | Forecast
Debt and Equity Securities, FV-NI [Line Items]
Unsecured revolving line of credit										$ 150,000
Revolving Credit Facility | Line of Credit | Subsequent Event
Debt and Equity Securities, FV-NI [Line Items]
Current borrowing capacity											$ 200,000
Roomba Robots | Imported After October, 12, 2021
Debt and Equity Securities, FV-NI [Line Items]
Tariffs paid					$ 11,700
Matterport
Debt and Equity Securities, FV-NI [Line Items]
Equity securities received, restricted | shares	1.6
Proceeds from short-term investments				$ 1,200	$ 16,200
Loss on sale of investments							$ 17,100
Additional shares received | shares					0.2

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		9 Months Ended
	Oct. 01, 2022	Oct. 02, 2021	Oct. 01, 2022	Oct. 02, 2021
Schedule Of Computation Of Basic And Diluted Earnings Per Common Share [Line Items]
Net (loss) income	$ (128,366)	$ 57,216	$ (202,193)	$ 61,901
Weighted-average shares outstanding	27,264	27,413	27,159	27,923
Dilutive effect of employee stock options and restricted shares	0	390	0	552
Diluted weighted-average shares outstanding	27,264	27,803	27,159	28,475
Basic income per share	$ (4.71)	$ 2.09	$ (7.44)	$ 2.22
Diluted income per share	$ (4.71)	$ 2.06	$ (7.44)	$ 2.17

Revenue Recognition - Significa

Revenue Recognition - Significant Judgments (Details) - USD ($) $ in Millions	Oct. 01, 2022	Jan. 01, 2022
Revenue Recognition and Deferred Revenue [Abstract]
Revenue, Remaining Performance Obligation, Amount	$ 21.3	$ 20.9
Refund liability, product returns	41.1	56.8
Refund liability, other credits and incentives	$ 68.3	$ 101.6

Revenue Recognition - Disaggreg

Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 01, 2022	Oct. 02, 2021	Oct. 01, 2022	Oct. 02, 2021
Disaggregation of Revenue [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	$ 278,191	$ 440,682	$ 825,511	$ 1,109,539
United States
Disaggregation of Revenue [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	147,075	216,542	439,626	528,138
EMEA
Disaggregation of Revenue [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	52,454	132,130	174,037	339,918
Japan
Disaggregation of Revenue [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	53,187	66,823	142,637	154,652
Other
Disaggregation of Revenue [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	$ 25,475	$ 25,187	$ 69,211	$ 86,831

Revenue Recognition - Contract

Revenue Recognition - Contract Balances (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 01, 2022	Oct. 02, 2021	Oct. 01, 2022	Oct. 02, 2021	Jan. 01, 2022
Revenue Recognition and Deferred Revenue [Abstract]
Accounts receivable, net	$ 126,606		$ 126,606		$ 155,659
Unbilled receivables	7,862		7,862		8,747
Contract liabilities	22,696		22,696		$ 22,996
Contract with Customer, Liability, Revenue Recognized	$ 5,700	$ 6,600	$ 10,700	$ 10,500

Leases - Lease Cost (Details)

Leases - Lease Cost (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 01, 2022	Oct. 02, 2021	Oct. 01, 2022	Oct. 02, 2021
Leases [Abstract]
Operating Lease, Weighted Average Discount Rate, Percent	4.03%		4.03%
Operating Lease, Cost	$ 1,761	$ 2,181	$ 4,775	$ 6,315
Variable Lease, Cost	861	837	2,789	2,765
Lease, Cost	$ 2,622	$ 3,018	$ 7,564	$ 9,080
Operating Lease, Weighted Average Remaining Lease Term	7 years 3 days		7 years 3 days

Leases - Supplemental Cash Flow

Leases - Supplemental Cash Flow (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 01, 2022	Oct. 02, 2021	Oct. 01, 2022	Oct. 02, 2021
Leases [Abstract]
Document Period End Date			Oct. 01, 2022
Operating Lease, Payments	$ 1,995	$ 2,150	$ 6,028	$ 6,529
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability	$ 0	$ 0	$ 0	$ 0

Leases - Maturity of Operating

Leases - Maturity of Operating Lease Liability (Details) - USD ($) $ in Thousands	Oct. 01, 2022	Jan. 01, 2022
Leases [Abstract]
Remainder of 2022	$ 1,529
2023	7,236
2024	5,968
2025	5,723
2026	5,753
Thereafter	18,884
Total minimum lease payments	45,093
Less: imputed interest	6,027
Present value of future minimum lease payments	39,066
Current portion of operating lease liabilities	5,820	$ 6,220
Long-term lease liabilities	$ 33,246	$ 43,462

Leases - Financial Statement Im

Leases - Financial Statement Impact of Adopting ASC 842 (Details) - USD ($) $ in Thousands	Oct. 01, 2022	Jan. 01, 2022
Leases [Abstract]
Operating lease right-of-use asset	$ 28,520	$ 37,609
Present value of future minimum lease payments	$ 39,066

Goodwill and Other Intangible_3

Goodwill and Other Intangible Assets - Schedule of Goodwill (Details) $ in Thousands	9 Months Ended
	Oct. 01, 2022 USD ($)
Goodwill
Balance as of January 1, 2022	$ 173,292
Purchase accounting adjustments	(583)
Effect of foreign currency translation	(13,178)
Balance as of October 1, 2022	159,531
Intangible assets
Balance as of January 1, 2022	28,410
Purchase accounting adjustments	0
Amortization	(15,136)
Effect of foreign currency translation	(2,326)
Balance as of October 1, 2022	$ 10,948

Goodwill and Other Intangible_4

Goodwill and Other Intangible Assets - Additional Information (Details) $ in Millions	3 Months Ended
	Oct. 01, 2022 USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
Impairment loss on intangible assets	$ 11.1
Goodwill impairment loss	$ 0

Accrued Expenses (Details)

Accrued Expenses (Details) - USD ($) $ in Thousands	Oct. 01, 2022	Jan. 01, 2022
Accounts Payable, Current [Abstract]
Accrued warranty	$ 25,820	$ 32,019
Accrued compensation and benefits	16,543	19,029
Current portion of operating lease liabilities	5,820	6,220
Accrued sales and other indirect taxes payable	5,181	9,599
Derivative liability	4,514	2,600
Accrued bonus	3,684	11,375
Restructuring-related liabilities	3,239	0
Accrued manufacturing and logistics cost	2,969	23,038
Accrued income taxes	2,879	1,788
Accrued other	13,710	26,950
Accrued expenses	$ 84,359	$ 132,618

Working Capital Facility (Detai

Working Capital Facility (Details) - USD ($) $ in Millions			3 Months Ended
	Oct. 28, 2022	May 04, 2022	Apr. 01, 2023	Dec. 30, 2022	Oct. 01, 2022
Credit Agreement | London Interbank Offered Rate (LIBOR)
Line of Credit Facility [Line Items]
Basis spread on variable rate		1.50%
Third Amendment To Amended And Restated Credit Agreement | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Subsequent Event
Line of Credit Facility [Line Items]
Basis spread on variable rate	1.50%
Credit spread adjustment	0.10%
Revolving Credit Facility | Line of Credit
Line of Credit Facility [Line Items]
Unsecured revolving line of credit					$ 150
Borrowings under revolving credit facility					90
Revolving Credit Facility | Line of Credit | Subsequent Event
Line of Credit Facility [Line Items]
Current borrowing capacity	$ 200
Minimum cash requirement	$ 25
Revolving Credit Facility | Line of Credit | Forecast
Line of Credit Facility [Line Items]
Unsecured revolving line of credit				$ 150
Decrease to borrowing capacity				(50)
Clean Down Provision, minimum borrowings				$ 75
Clean Down Provision, minimum term (in consecutive days)			10 days
Revolving Credit Facility | Line of Credit | Credit Agreement
Line of Credit Facility [Line Items]
Borrowings under revolving credit facility					90
Available for borrowing under revolving credit facility					$ 60

Derivative Instruments and He_3

Derivative Instruments and Hedging Activities - Schedule of Derivative Instruments (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Oct. 01, 2022	Oct. 01, 2022	Jan. 01, 2022
Derivative [Line Items]
Proceeds from derivative instruments	$ 51,700
Designated as Hedging Instrument [Member]
Derivative [Line Items]
Derivative, Term of Contract		3 years
Derivative, Notional Amount	380,800	$ 380,800	$ 423,300
Not Designated as Hedging Instrument [Member]
Derivative [Line Items]
Derivative, Notional Amount	283,400	283,400	325,400
Not Designated as Hedging Instrument [Member] | Accrued Liabilities [Member] | Foreign Exchange Forward [Member]
Derivative [Line Items]
Derivative instruments (Note 8)	4,514	4,514	2,377
Not Designated as Hedging Instrument [Member] | Other Current Assets [Member] | Foreign Exchange Forward [Member]
Derivative [Line Items]
Derivative instruments (Note 8)	16,251	16,251	8,362
Not Designated as Hedging Instrument [Member] | Other Noncurrent Assets [Member] | Foreign Exchange Forward [Member]
Derivative [Line Items]
Derivative instruments (Note 8)	0	0	1,627
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Accrued Liabilities [Member] | Foreign Exchange Forward [Member]
Derivative [Line Items]
Derivative instruments (Note 8)	0	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 8)	0	0	407
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Other Current Assets [Member] | Foreign Exchange Forward [Member]
Derivative [Line Items]
Derivative instruments (Note 8)	4,568	4,568	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 8)	$ 11,667	$ 11,667	$ 9,610

Derivative Instruments and He_4

Derivative Instruments and Hedging Activities (Details) - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
		Oct. 01, 2022	Oct. 02, 2021	Oct. 01, 2022	Oct. 02, 2021
Derivative Instruments, Gain (Loss) [Line Items]
Revenue		$ 278,191	$ 440,682	$ 825,511	$ 1,109,539
Foreign Exchange Forward [Member] | Cash Flow Hedging [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) recognized in OCI on Derivative	[1]	24,219	6,851	67,680	23,959
Other Nonoperating Income (Expense) [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net		1,475	(1,606)	7,707	(11,229)
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		$ 9,503	$ 1,161	$ 14,885	$ 1,878
[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 ($)		Oct. 01, 2022	Jan. 01, 2022
Equity Securities
Assets:
Equity Securities, FV-NI, Cost			$ 23,286
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member]
Assets:
Total assets measured at fair value		$ 56,841,000	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			33,044,000
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Derivative Instrument
Assets:
Derivative instruments (Note 8)		0	0
Liabilities:
Derivative instruments (Note 8)		0	0
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Money Market Funds
Assets:
Money market funds		56,841,000	33,003,000
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]
Assets:
Total assets measured at fair value	[1]	32,486,000	23,709,000
Liabilities:
Total liabilities measured at fair value	[1]	4,514,000	3,007,000
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Equity Securities
Assets:
Fair value of securities	[1]		0
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Derivative Instrument
Assets:
Derivative instruments (Note 8)	[1]	32,486,000	23,709,000
Liabilities:
Derivative instruments (Note 8)	[1]	4,514,000	3,007,000
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Money Market Funds
Assets:
Money market funds	[1]	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
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Derivative Instrument
Assets:
Derivative instruments (Note 8)		0	0
Liabilities:
Derivative instruments (Note 8)		0	0
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Money Market Funds
Assets:
Money market funds		$ 0	$ 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.

Fair Value Measurements - Addit

Fair Value Measurements - Additional Information (Details) $ in Millions	3 Months Ended
	Oct. 01, 2022 USD ($)
Fair Value Disclosures [Abstract]
Fair value of remaining intangible assets	$ 5.5
Impairment loss on intangible assets	$ 11.1

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Detail) $ in Millions	Aug. 04, 2022 USD ($)
Amazon.com, Inc.
Other Commitments [Line Items]
Expected professional fees and expenses to be incurred	$ 30

Commitments and Contingencies_2

Commitments and Contingencies - Activity Related to Warranty Accrual (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 01, 2022	Oct. 02, 2021	Oct. 01, 2022	Oct. 02, 2021
Movement in Standard Product Warranty Accrual [Roll Forward]
Balance at beginning of period	$ 26,814	$ 24,718	$ 32,019	$ 24,392
Provision	4,035	10,913	14,071	31,334
Warranty usage	(5,029)	(7,570)	(20,270)	(27,665)
Balance at end of period	$ 25,820	$ 28,061	$ 25,820	$ 28,061

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 01, 2022	Oct. 02, 2021	Oct. 01, 2022	Oct. 02, 2021
Income Tax Disclosure [Abstract]
Valuation allowance recorded against deferred tax assets	$ 57,500		$ 57,500
Income tax expense	$ 59,020	$ 9,867	$ 26,718	$ 8,083
Effective Income Tax Rate Reconciliation, Percent	(85.10%)	14.70%	(15.20%)	11.50%

Industry Segment, Geographic _2

Industry Segment, Geographic Information and Significant Customers - Additional Information (Detail) - segment	3 Months Ended		9 Months Ended
	Oct. 01, 2022	Oct. 02, 2021	Oct. 01, 2022	Oct. 02, 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	25%	26.60%	26.20%	25.90%

Stock-Based Compensation (Detai

Stock-Based Compensation (Details) - Employee Stock - USD ($)	1 Months Ended
	May 31, 2017	Oct. 01, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Purchase price of common stock percent	85%
Offering period (in months)	6 months
Maximum percentage of salary	15%
Maximum dollar amount	$ 4,000
Maximum number of shares per employee (in shares)	1,000
Number of shares available for grant (in shares)		452,345