Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Apr. 01, 2023 | Apr. 28, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Period End Date | Apr. 01, 2023 | |
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, $0.01 par value | |
Trading Symbol | IRBT | |
Security Exchange Name | NASDAQ | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | --12-30 | |
Entity Shell Company | false | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 27,594,072 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Apr. 01, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 47,915 | $ 117,949 |
Accounts receivable, net | 29,645 | 66,025 |
Inventory | 229,688 | 285,250 |
Other current assets | 56,987 | 59,076 |
Total current assets | 364,235 | 528,300 |
Property and equipment, net | 55,774 | 60,909 |
Operating lease right-of-use assets | 25,443 | 26,084 |
Deferred tax assets | 15,226 | 16,248 |
Goodwill | 169,570 | 167,724 |
Intangible Assets, Net | 10,919 | 11,260 |
Other assets | 23,460 | 24,918 |
Total assets | 664,627 | 835,443 |
Current liabilities: | ||
Accounts payable | 74,014 | 184,016 |
Accrued expenses | 100,902 | 98,959 |
Deferred revenue and customer advances | 12,084 | 13,208 |
Short-term notes payable | 27,000 | 0 |
Total current liabilities | 214,000 | 296,183 |
Operating lease liabilities | 31,581 | 33,247 |
Deferred tax liabilities | 526 | 931 |
Other long-term liabilities | 23,081 | 29,366 |
Total long-term liabilities | 55,188 | 63,544 |
Total liabilities | 269,188 | 359,727 |
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; 27,594 and 27,423 shares issued and outstanding, respectively | 276 | 274 |
Additional paid-in capital | 263,837 | 257,498 |
Retained earnings | 118,303 | 199,415 |
Accumulated other comprehensive income | 13,023 | 18,529 |
Total stockholders’ equity | 395,439 | 475,716 |
Total liabilities and stockholders’ equity | $ 664,627 | $ 835,443 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Common stock, shares outstanding | 27,594,000 | 27,423,000 |
Common stock, shares issued | 27,594,000 | 27,423,000 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, par value | $ 0.01 | $ 0.01 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Apr. 01, 2023 | Dec. 31, 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 | 27,594,000 | 27,423,000 |
Common stock, shares issued | 27,594,000 | 27,423,000 |
Consolidated Statements of Inco
Consolidated Statements of Income Statement - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Apr. 01, 2023 | Apr. 02, 2022 | |
Revenue | $ 160,292 | $ 291,969 |
Cost of product revenue | 123,459 | 183,633 |
Amortization of acquired intangible assets | 282 | 821 |
Total cost of revenue | 123,741 | 184,454 |
Gross profit | 36,551 | 107,515 |
Research and development | 41,934 | 42,529 |
Selling and marketing | 44,765 | 61,065 |
General and administrative | 30,971 | 26,698 |
Amortization of acquired intangible assets | 178 | 510 |
Total operating expenses | 117,848 | 130,802 |
Operating loss | (81,297) | (23,287) |
Other expense, net | (1,077) | (16,746) |
Loss before income taxes | (82,374) | (40,033) |
Income tax benefit | (1,262) | (9,627) |
Net loss | $ (81,112) | $ (30,406) |
Basic | $ (2.95) | $ (1.12) |
Diluted | $ (2.95) | $ (1.12) |
Basic | 27,467 | 27,051 |
Diluted | 27,467 | 27,051 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 01, 2023 | Apr. 02, 2022 | |
Net loss | $ (81,112) | $ (30,406) |
Other comprehensive income (loss), net of tax: | ||
Net foreign currency translation adjustments | 1,720 | (4,015) |
Net unrealized (losses) gains on cash flow hedges, net of tax | (1,823) | 7,653 |
Net gains on cash flow hedge reclassified into earnings, net of tax | (5,403) | (1,234) |
Total comprehensive loss | $ (86,618) | $ (28,002) |
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 (in shares) at Jan. 01, 2022 | 27,006,000 | ||||
Beginning balance at Jan. 01, 2022 | $ 716,723 | $ 270 | $ 222,653 | $ 485,710 | $ 8,090 |
Issuance of common stock under employee stock plans (in shares) | 797,000 | 23,000 | |||
Stock Issued During Period, Value, Stock Options Exercised | $ 0 | 797 | |||
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures (in shares) | 112,000 | ||||
Stock Issued During Period, Value, Restricted Stock Award, Net of Forfeitures | $ 0 | $ 1 | (1) | ||
APIC, Share-based Payment Arrangement, Increase for Cost Recognition | 7,208 | 7,208 | |||
Shares Paid for Tax Withholding for Share Based Compensation (in shares) | (25,000) | ||||
Stock Withheld to Cover Tax Withholding Requirements Upon Vesting to Restricted Stock Units Amount | (1,524) | $ 0 | (1,524) | ||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | 2,404 | ||||
Net loss | (30,406) | (30,406) | |||
Ending balance (in shares) at Apr. 02, 2022 | 27,116,000 | ||||
Ending balance at Apr. 02, 2022 | $ 695,202 | $ 271 | 229,133 | 455,304 | 10,494 |
Beginning balance (in shares) at Dec. 31, 2022 | 27,423,000 | 27,423,000 | |||
Beginning balance at Dec. 31, 2022 | $ 475,716 | $ 274 | 257,498 | 199,415 | 18,529 |
Issuance of common stock under employee stock plans (in shares) | 9,000 | ||||
Stock Issued During Period, Value, Stock Options Exercised | 9 | $ 0 | 9 | ||
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures (in shares) | 199,000 | ||||
Stock Issued During Period, Value, Restricted Stock Award, Net of Forfeitures | 0 | $ 2 | (2) | ||
APIC, Share-based Payment Arrangement, Increase for Cost Recognition | 7,932 | 7,932 | |||
Shares Paid for Tax Withholding for Share Based Compensation (in shares) | (37,000) | ||||
Stock Withheld to Cover Tax Withholding Requirements Upon Vesting to Restricted Stock Units Amount | (1,600) | $ 0 | (1,600) | ||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | (5,506) | (5,506) | |||
Net loss | $ (81,112) | (81,112) | |||
Ending balance (in shares) at Apr. 01, 2023 | 27,594,000 | 27,594,000 | |||
Ending balance at Apr. 01, 2023 | $ 395,439 | $ 276 | $ 263,837 | $ 118,303 | $ 13,023 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 01, 2023 | Apr. 02, 2022 | |
Cash flows from operating activities: | ||
Net loss | $ (81,112) | $ (30,406) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 7,542 | 11,241 |
Gain (Loss) on Investments | 0 | (16,835) |
Stock-based compensation | 7,932 | 7,208 |
Deferred income taxes, net | 647 | (15,571) |
Other | (3,562) | 1,539 |
Changes in operating assets and liabilities — (use) source | ||
Accounts receivable | 37,147 | 54,299 |
Inventory | 52,947 | (1,688) |
Other assets | 53 | (26,734) |
Accounts payable | (109,930) | (77,006) |
Accrued expenses and other liabilities | (6,171) | (42,032) |
Net cash used in operating activities | (94,507) | (102,315) |
Cash flows from investing activities: | ||
Additions of property and equipment | (1,456) | (3,113) |
Purchase of investments | (73) | (500) |
Sales and maturities of investments | 0 | 16,213 |
Net cash (used in) provided by investing activities | (1,529) | 12,600 |
Cash flows from financing activities: | ||
Proceeds from employee stock plans | 9 | 797 |
Income tax withholding payment associated with restricted stock vesting | (1,600) | (1,524) |
Proceeds from borrowings | 27,000 | 0 |
Net cash provided by (used in) financing activities | 25,409 | (727) |
Effect of exchange rate changes on cash and cash equivalents | 593 | 1,023 |
Net decrease in cash and cash equivalents | (70,034) | (89,419) |
Cash and cash equivalents, at beginning of period | 117,949 | 201,457 |
Cash and cash equivalents, at end of period | $ 47,915 | $ 112,038 |
Description of Business
Description of Business | 3 Months Ended |
Apr. 01, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business | Nature of the 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 | 3 Months Ended |
Apr. 01, 2023 | |
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 December 31, 2022, filed with the Securities and Exchange Commission on February 14, 2023. 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 three months ended April 1, 2023, the Company’s revenue declined 45% from the three months ended April 2, 2022 due in part by a scheduled shift of certain orders with a customer which occurred in the first quarter of 2022 and are scheduled to ship in the second quarter of 2023 for their annual promotional event. In addition, revenue was impacted by lower orders from retailers and distributors 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 of $81.3 million and operating cash outflows of $94.5 million for the three months ended April 1, 2023. As a result, the Company's cash and cash equivalents have declined from $117.9 million as of December 31, 2022 to $47.9 million as of April 1, 2023. As of April 1, 2023, the Company had $27.0 million in outstanding borrowings from its $100.0 million revolving line of credit, which expires on September 17, 2024. 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: • In August 2022, the Company initiated a restructuring of its operations designed to better realign its cost structure with near-term revenue and cash flow generation, advance key strategic priorities, increase efficiencies and improve its profitability going forward (the "August 2022 Restructuring Plan"). As part of the August 2022 Restructuring Plan, the Company reduced its workforce and terminated approximately 100 employees, which represented 8% of its workforce and eliminated a number of open positions entering the third quarter of 2022. As a follow-on action to the Company’s August 2022 Restructuring Plan and in anticipation that market conditions will remain challenging in 2023, the Company initiated a new restructuring program at the beginning of February 2023 and reduced its workforce by approximately 85 employees, which represented 7% of the Company's global workforce as of December 31, 2022 (the "February 2023 Restructuring Plan"). In addition to the reduction in force, iRobot’s 2023 operating plan incorporates scaled back working media and other demand-generation activities, limited investment in non-robotic product categories and minimal new hiring plans in 2023. At April 1, 2023, the Company had 1,156 employees, a total reduction of 216 employees since the end of fiscal 2021. In addition to the reduction of its headcount, the Company signed a sublease agreement for a portion of its headquarters during the fourth quarter of fiscal 2022 and plans to further consolidate its global facilities footprint during fiscal 2023. iRobot currently anticipates that its August 2022 and February 2023 restructuring actions will deliver net cost savings of approximately $42.0 million in 2023, including actions associated with the facilities consolidation. • Inventory has consumed a significant amount of cash and the Company continues to manage its inventory level carefully. As of April 1, 2023, the inventory balance was $229.7 million, or 169 days, a reduction of $55.6 million, from the end of fiscal 2022. In 2023, the Company will continue to manage its inventory to a level that aligns with current run rates of the business. As such, iRobot temporarily reduced robot production during the first quarter of 2023 from its contract manufacturing partners in China and Malaysia and began increasing production in April 2023. 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. Additional actions within the Company’s control to maintain its liquidity and operations include optimizing its production volumes with contract manufacturers by reducing inventory supply forecast for cancellable purchase orders, further reducing discretionary spending in all areas of the business, decreasing working media spending and realigning resources through ongoing attrition without rehiring activity. Should the Company 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 Adopted Accounting Standards In October 2021, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2021-08, "Business Combinations - Accounting for Contract Assets and Contract Liabilities from Contracts with Customers." The ASU improves the accounting for acquired revenue contracts with customers by providing specific guidance on recognition of contract asset and liability from revenue contracts in a business combination. The amendments to this ASU are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2022, with early adoption permitted. The Company adopted the standard in the first quarter of 2023 and the adoption had no impact on the Company's consolidated financial statements. Recently Issued Accounting Standards From time to time, new accounting pronouncements are issued by the FASB that are adopted by the Company as of the specified effective date. Unless otherwise discussed, the Company believes that recently issued standards, which are not yet effective, will not have a material impact on the Company’s consolidated financial statements upon adoption. Use of Estimates The preparation of these financial statements in conformity with GAAP requires the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities and revenue and expenses. These estimates and judgments, include but are not limited to, revenue recognition, including performance obligations, standalone selling price, variable consideration and other obligations such as sales incentives and product returns; allowance for credit losses; impairment of goodwill and long-lived assets; valuation of non-marketable equity investments; product warranties; inventory excess and obsolescence; loss contingencies; 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, 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 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. The Company reviews and adjusts the allowance for credit losses on a quarterly basis. Accounts receivable balances are written off against the allowance when the Company determines that the balances are not recoverable. As of April 1, 2023 and December 31, 2022, the Company had an allowance for credit losses of $2.7 million and $4.7 million, respectively. Tariff Refunds In March 2022, the Company was granted a temporary exclusion from Section 301 List 3 tariffs by the United States Trade Representative ("USTR"). This exclusion, which was subsequently extended until September 30, 2023, entitled the Company to a refund of approximately $32.0 million in tariffs paid. During the first quarter of 2022, the Company recognized a benefit of $11.7 million from tariff refunds as a reduction to cost of product revenue related to tariffs paid on products imported after October 12, 2021 and sold during fiscal 2021. As of April 1, 2023, the Company had received $28.0 million of the tariff refund and the outstanding refund receivable of $4.0 million is recorded in other current assets on the consolidated balance sheet. Inventory Inventory primarily consists of finished goods and, to a lesser extent, components, which are purchased from contract manufacturers. Inventory is stated at the lower of cost or net realizable value with cost being determined using the standard cost method, which approximates actual costs determined on the first-in, first-out basis. Inventory costs primarily consist of materials, inbound freight, import duties 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. The Company performs an assessment on a quarterly basis to assess whether triggering events for impairment exist and to identify any observable price changes. Changes in fair value of non-marketable equity investments are recorded in other expense, net on the consolidated statement of operations. At both April 1, 2023 and December 31, 2022, the Company's equity securities without readily determinable fair values totaled $15.1 million, and are included in other assets on the consolidated balance sheets. Restructuring Charges In August 2022, the Company initiated a restructuring of its operations designed to realign its cost structure with near-term revenue and cash flow generation, advance key strategy priorities, increase efficiencies and improve its profitability going forward. The August 2022 Restructuring Plan included a termination of approximately 100 employees and consolidation of certain facilities. As a result of the August 2022 Restructuring Plan, the Company recorded restructuring charges of $5.2 million for employee severance costs during the third quarter of 2022 and a non-cash impairment loss of $3.4 million for the consolidation of certain facilities during the fourth quarter of 2022. As a follow-on action to the Company’s August 2022 Restructuring Plan and in anticipation that market conditions remain challenging in 2023, the Company initiated a new restructuring program at the beginning of February 2023 to further reduce its workforce by approximately 85 employees, which represented 7% of the Company's global workforce as of December 31, 2022. During the three months ended April 1, 2023, the Company recorded restructuring charges of $3.7 million for employee severance and benefit costs related to the February 2023 Restructuring Plan. As of April 1, 2023, the Company had outstanding restructuring liability related to these plans of approximately $1.9 million and expects the remaining balance to be substantially paid during the second quarter of 2023. These restructuring charges are recorded in the consolidated statement of operations. Net Loss Per Share Basic loss per share is calculated using the Company's weighted-average outstanding common shares. Diluted loss 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 per share (in thousands, except per share amounts): Three Months Ended April 1, 2023 April 2, 2022 Net loss $ (81,112) $ (30,406) Weighted-average shares outstanding 27,467 27,051 Basic and diluted loss per share $ (2.95) $ (1.12) |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Apr. 01, 2023 | |
Revenue Recognition and Deferred Revenue [Abstract] | |
Revenue Recognition | Revenue Recognition The Company primarily derives its revenue from the sale of consumer robots and accessories. The Company sells products directly to consumers through online stores and indirectly through resellers and distributors. Revenue is recognized upon transfer of control of promised products or services to customers in an amount that reflects the consideration the Company expects to receive in exchange for those products or services. Revenue is allocated to distinct performance obligations and is recognized net of allowances for returns and other credits and incentives. Revenue is recognized only to the extent that it is probable that a significant reversal of revenue will not occur and when collection is considered probable. Taxes collected from customers, which are subsequently remitted to governmental authorities, are excluded from revenue. Shipping and handling expenses are considered fulfillment activities and are expensed as incurred. Frequently, the Company’s contracts with customers contain multiple promised goods or services. Such contracts may include any of the following, the consumer robot, downloadable app, cloud services, accessories on demand, potential future unspecified software upgrades, premium customer care and extended warranties. For these contracts, the Company accounts for the promises separately as individual performance obligations if they are distinct. Performance obligations are considered distinct if they are both capable of being distinct and distinct within the context of the contract. In determining whether performance obligations meet the criteria for being distinct, the Company considers a number of factors, such as the degree of interrelation and interdependence between obligations, and whether or not the good or service significantly modifies or transforms another good or service in the contract. The Company’s consumer robots are highly dependent on, and interrelated with, the embedded software and cannot function without the software. As such, the consumer robots are accounted for as a single performance obligation. The Company has determined that the app, cloud services and potential future unspecified software upgrades represent one performance obligation to the customer to enhance the functionality and interaction with the robot (referred to collectively as "Cloud Services"). Other services and support are considered distinct and therefore are treated as separate performance obligations. The Company allocates revenue to all distinct performance obligations based on their relative stand-alone selling prices ("SSPs"). When available, the Company uses observable prices to determine SSPs. When observable prices are not available, SSPs are established that reflect the Company’s best estimates of what the selling prices of the performance obligations would be if they were sold regularly on a stand-alone basis. The Company’s process for estimating SSPs without observable prices considers multiple factors that may vary depending upon the facts and circumstances related to each performance obligation including market data or the estimated cost of providing the products or services. The transaction price allocated to the robot is recognized as revenue at a point in time when control is transferred, generally as title and risk of loss pass, and when collection is considered probable. The transaction price allocated to the Cloud Services is deferred and recognized on a straight-line basis over the estimated term of the Cloud Services. Other services and support are recognized over their service periods. For contracts with a duration of greater than one year, the transaction price allocated to performance obligations that are unsatisfied as of April 1, 2023 and December 31, 2022 was $21.4 million and $23.2 million, respectively. The Company’s products generally carry a one-year or two-year limited warranty that promises customers that delivered products are as specified. The Company does not consider these assurance-type warranties as a separate performance obligation and therefore, the Company accounts for such warranties under ASC 460, "Guarantees." For contracts with the right to upgrade to a new product after a specified period of time, the Company accounts for this trade-in right as a guarantee obligation under ASC 460. The total transaction price is reduced by the full amount of the trade-in right's fair value and the remaining transaction price is allocated between the performance obligations within the contract. The Company provides limited rights of returns for direct-to-consumer sales generated through its online stores and certain resellers and distributors. The Company records an allowance for product returns based on specific terms and conditions included in the customer agreements or based on historical experience and the Company's expectation of future returns. In addition, the Company may provide other credits or incentives which are accounted for as variable consideration when estimating the amount of revenue to recognize. Where appropriate, these estimates take into consideration relevant factors such as the Company’s historical experience, current contractual requirements, specific known market events and forecasted inventory level in the channels. Overall, these reserves reflect the Company’s best estimates, and the actual amounts of consideration ultimately received may differ from the Company’s estimates. Returns and credits are estimated at the time of sale and updated at the end of each reporting period as additional information becomes available. As of April 1, 2023, the Company had reserves for product returns of $21.7 million and other credits and incentives of $56.8 million. As of December 31, 2022, the Company had reserves for product returns of $49.2 million and other credits and incentives of $106.5 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 months ended April 1, 2023 and April 2, 2022, changes to these estimates related to performance obligations satisfied in prior periods were not material. Disaggregation of Revenue The following table provides information about disaggregated revenue by geographical region (in thousands): Three Months Ended April 1, 2023 April 2, 2022 United States $ 71,986 $ 153,174 EMEA 46,681 65,661 Japan 32,894 50,521 Other 8,731 22,613 Total revenue $ 160,292 $ 291,969 Contract Balances The following table provides information about receivables and contract liabilities from contracts with customers (in thousands): April 1, 2023 December 31, 2022 Accounts receivable, net $ 24,891 $ 60,268 Unbilled receivables 5,284 6,569 Contract liabilities 21,741 24,140 The Company invoices customers based upon contractual billing schedules, and accounts receivable are recorded when the right to consideration becomes unconditional. Unbilled receivables represent revenue recognized in excess of billings. Contract liabilities include deferred revenue associated with the Cloud Services and extended warranty plans as well as prepayments received from customers in advance of product shipments. During the three months ended April 1, 2023 and |
Leases
Leases | 3 Months Ended |
Apr. 01, 2023 | |
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. At April 1, 2023, the Company's weighted average discount rate wa s 4.03%, while the weighted average remaining lease term w as 6.53 years. The components of lease expense were as follows (in thousands): Three Months Ended April 1, 2023 April 2, 2022 Operating lease cost $ 1,715 $ 851 Variable lease cost 825 918 Total lease cost $ 2,540 $ 1,769 Supplemental cash flow information related to leases was as follows (in thousands): Three Months Ended April 1, 2023 April 2, 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 2,008 $ 2,039 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ — $ — Maturities of operating lease liabilities were as follows as of April 1, 2023 (in thousands): Remainder of 2023 $ 5,279 2024 6,618 2025 5,794 2026 5,816 2027 5,890 Thereafter 13,048 Total minimum lease payments $ 42,445 Less: imputed interest 5,356 Present value of future minimum lease payments $ 37,089 Less: current portion of operating lease liabilities (Note 7) $ 5,508 Long-term lease liabilities $ 31,581 |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Apr. 01, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The Company’s financial assets and liabilities measured at fair value on a recurring basis were as follows (in thousands): Fair Value Measurements as of Level 1 Level 2 (1) Level 3 Assets: Money market funds $ 33,482 $ — $ — Derivative instruments (Note 9) — 1,878 — Total assets measured at fair value $ 33,482 $ 1,878 $ — Liabilities: Derivative instruments (Note 9) $ — $ 9,038 $ — Total liabilities measured at fair value $ — $ 9,038 $ — Fair Value Measurements as of Level 1 Level 2 (1) Level 3 Assets: Money market funds $ 79,005 $ — $ — Derivative instruments (Note 9) — 5,619 — Total assets measured at fair value $ 79,005 $ 5,619 $ — Liabilities: Derivative instruments (Note 9) $ — $ 13,793 $ — Total liabilities measured at fair value $ — $ 13,793 $ — (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. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 3 Months Ended |
Apr. 01, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets The following table summarizes the activity in the carrying amount of goodwill and intangible assets for the three months ended April 1, 2023 (in thousands): Goodwill Intangible assets Balance as of December 31, 2022 $ 167,724 $ 11,260 Amortization — (460) Effect of foreign currency translation 1,846 119 Balance as of April 1, 2023 $ 169,570 $ 10,919 |
Accrued Expenses
Accrued Expenses | 3 Months Ended |
Apr. 01, 2023 | |
Accrued Liabilities, Current [Abstract] | |
Accrued Expenses | Accrued Expenses Accrued expenses consisted of the following at (in thousands): April 1, 2023 December 31, 2022 Accrued warranty $ 24,618 $ 27,379 Accrued compensation and benefits 16,095 17,620 Accrued returns and sales incentives 14,909 1,312 Accrued merger related liabilities 11,791 10,895 Derivative liability 7,202 7,310 Current portion of operating lease liabilities 5,508 5,415 Accrued manufacturing and logistics cost 4,516 970 Accrued bonus 4,190 4,538 Accrued sales and other indirect taxes payable 2,898 7,683 Accrued income taxes 350 5,070 Accrued other 8,825 10,767 $ 100,902 $ 98,959 |
Working Capital Facility
Working Capital Facility | 3 Months Ended |
Apr. 01, 2023 | |
Debt Disclosure [Abstract] | |
Working Capital Facility | Working Capital Facility Credit Facility As of April 1, 2023, the Company had a $100.0 million secured revolving line of credit which expires in September 2024. On January 17, 2023, the Company entered into a Fourth Amendment (the "Fourth Amendment") to the Amended and Restated Credit Agreement (as amended, the "Credit Agreement") with Bank of America N.A., which reduced the amount of the facility from $150.0 million to $100.0 million and increased the interest rate of (1) Term SOFR Loans to 4.50%, (2) Base Rate Loans to 3.50%, and (3) unused Commitments (as defined in the Credit Agreement) to 3.50%. In addition, the Fourth Amendment established a borrowing base for the revolving facility equal to the total of 80% of eligible receivables, 50% of eligible inventory, and upon the satisfaction of certain conditions, up to 30% of eligible in-transit inventory, all subject to any applicable reserves. Additionally, the Fourth Amendment requires the Company to maintain $25.0 million of cash in the U.S. at all times, which is tested monthly, and replaced the requirement that the borrowing under the Credit Agreement be under $75.0 million (1) on December 30, 2022 and (2) for ten thirty As of April 1, 2023, the Company had outstanding borrowings of $27.0 million under the revolving credit facility, with $73.0 million available for borrowing. As of April 1, 2023, the Company was in compliance with the covenants under the Credit Agreement. |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 3 Months Ended |
Apr. 01, 2023 | |
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 have historically had a maturity of three years or less. During the first quarter of 2023, the Company terminated foreign currency forward contracts with a notional value of $151.7 million, resulting in a net cash payment of $2.5 million which was 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. At April 1, 2023 and December 31, 2022, the Company had outstanding cash flow hedges with a total notional value of $181.7 million and $362.9 million, respectively. The outstanding contracts have average maturities o f 1.5 years or less. The Company also enters into economic hedges that are not designated as hedges from an accounting standpoint to reduce foreign currency exchange risk related to short term trade receivables and payables. These contracts typically have maturities of twelve months or less. At April 1, 2023 and December 31, 2022, the Company had outstanding foreign currency economic hedges with a total notional value of $124.9 million and $242.0 million, respectively. The fair values of derivative instruments were as follows (in thousands): Fair Value Classification April 1, 2023 December 31, 2022 Derivatives not designated as hedging instruments: Foreign currency forward contracts Other current assets $ 1,878 $ 4,288 Foreign currency forward contracts Accrued expenses 1,525 3,249 Derivatives designated as cash flow hedges: Foreign currency forward contracts Other assets $ — $ 1,331 Foreign currency forward contracts Accrued expenses 5,677 4,061 Foreign currency forward contracts Long-term liabilities 1,836 6,483 (Loss) gain associated with derivative instruments not designated as hedging instruments were as follows (in thousands): Three Months Ended Classification April 1, 2023 April 2, 2022 (Loss) gain recognized in income Other expense, net $ (811) $ 2,064 The following tables reflect the effect of derivatives designated as cash flow hedging (in thousands): (Loss) gain recognized in OCI on Derivative (1) Three Months Ended April 1, 2023 April 2, 2022 Foreign currency forward contracts $ (1,823) $ 10,257 (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 April 1, 2023 April 2, 2022 Revenue Consolidated statements of operations in which the effects of cash flow hedging instruments are recorded $ 160,292 $ 291,969 Gain on cash flow hedging relationships: Foreign currency forward contracts: Amount of gain reclassified from AOCI into earnings $ 5,403 $ 1,639 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Apr. 01, 2023 | |
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. Outstanding Purchase Orders As of April 1, 2023, the Company had outstanding purchase orders aggregating approximately $228.7 million. The purchase orders are typically related to marketing and media spend and the purchase of inventory in the normal course of business. Included in these outstanding purchase orders is $82.5 million related to inventory purchases at the Company's contract manufacturers, of which $43.1 million are not cancellable without penalty. The Company utilizes contract manufacturers to build its products and accessories. These contract manufacturers acquire components and build products based on a forecasted production plan, which typically covers a rolling 24-month period. If the Company cancels all or part of the orders, or materially reduces forecasted orders, in certain circumstances the Company may be liable to its contract manufacturers for the cost of the excess components purchased by its contract manufacturers. During the first quarter of 2023, the Company paid $3.9 million to its contract manufacturers for such liabilities and recorded as inventory components. Guarantees and Indemnification Obligations The Company enters into standard indemnification agreements in the ordinary course of business. Pursuant to these agreements, the Company indemnifies and agrees to reimburse the indemnified party for losses incurred by the indemnified party, generally the Company’s customers, in connection with any patent, copyright, trade secret or other proprietary right infringement claim by any third party. The term of these indemnification agreements is generally perpetual any time after execution of the agreement. The maximum potential amount of future payments the Company could be required to make under these indemnification agreements is unlimited. The Company has never incurred costs to defend lawsuits or settle claims related to these indemnification agreements. As a result, the Company believes the estimated fair value of these agreements is minimal. Accordingly, the Company had no liabilities recorded for these agreements as of April 1, 2023 and December 31, 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 7) in the accompanying consolidated balance sheets. Activity related to the warranty accrual was as follows (in thousands): Three Months Ended April 1, 2023 April 2, 2022 Balance at beginning of period $ 27,379 $ 32,019 Provision 3,477 6,036 Warranty usage (6,238) (7,816) Balance at end of period $ 24,618 $ 30,239 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) | 3 Months Ended |
Apr. 01, 2023 | |
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. For the three months ended April 1, 2023 and April 2, 2022, the Company recorded an income tax benefit of $1.3 million and $9.6 million, respectively. The Company’s effective income tax rates were 1.5% and 24.0% for the three months ended April 1, 2023 and April 2, 2022, respectively. For the three months ended April 1, 2023, the effective income tax rate reflected the mix of geographic earnings as well as the impact of full valuation allowance against the Company's U.S. net deferred tax assets, which was initially established during the third quarter of 2022. |
Industry Segment, Geographic In
Industry Segment, Geographic Information and Significant Customers | 3 Months Ended |
Apr. 01, 2023 | |
Segment Reporting [Abstract] | |
Industry Segment, Geographic Information and Significant Customers | Industry Segment, Geographic Information and Significant Customers The Company operates as one operating segment. The Company's consumer robots are offered to consumers through a variety of distribution channels, including chain stores and other national retailers, through the Company's own website and app, dedicated e-commerce websites, the online arms of traditional retailers, and through value-added distributors and resellers worldwide. Significant Customers For the three months ended April 1, 2023 and April 2, 2022, the Company generated 12.0% and 26.6%, respectively, of total revenue from one of its retailers. The decrease in concentration is largely due to timing of certain orders with this customer, which occurred in the first quarter of 2022 and are scheduled to ship in the second quarter of 2023 for their annual promotional event. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Apr. 01, 2023 | |
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 December 31, 2022, filed with the Securities and Exchange Commission on February 14, 2023. |
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 FASB that are adopted by the Company as of the specified effective date. Unless otherwise discussed, the Company believes that recently issued standards, which are not yet effective, will not have a material impact on the Company’s consolidated financial statements upon adoption. |
Use of Estimates | Use of Estimates The preparation of these financial statements in conformity with GAAP requires the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities and revenue and expenses. These estimates and judgments, include but are not limited to, revenue recognition, including performance obligations, standalone selling price, variable consideration and other obligations such as sales incentives and product returns; allowance for credit losses; impairment of goodwill and long-lived assets; valuation of non-marketable equity investments; product warranties; inventory excess and obsolescence; loss contingencies; 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, 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 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. The Company reviews and adjusts the allowance for credit losses on a quarterly basis. Accounts receivable balances are written off against the allowance when the Company determines that the balances are not recoverable. As of April 1, 2023 and December 31, 2022, the Company had an allowance for credit losses of $2.7 million and $4.7 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 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 | 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. The Company performs an assessment on a quarterly basis to assess whether triggering events for impairment exist and to identify any observable price changes. Changes in fair value of non-marketable equity investments are recorded in other expense, net on the consolidated statement of operations. At both April 1, 2023 and December 31, 2022, the Company's equity securities without readily determinable fair values totaled $15.1 million, and are included in other assets on the consolidated balance sheets. |
Net (Loss) Income Per Share | Net Loss Per Share Basic loss per share is calculated using the Company's weighted-average outstanding common shares. Diluted loss 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 per share (in thousands, except per share amounts): Three Months Ended April 1, 2023 April 2, 2022 Net loss $ (81,112) $ (30,406) Weighted-average shares outstanding 27,467 27,051 Basic and diluted loss per share $ (2.95) $ (1.12) |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Apr. 01, 2023 | |
Accounting Policies [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table presents the calculation of both basic and diluted net loss per share (in thousands, except per share amounts): Three Months Ended April 1, 2023 April 2, 2022 Net loss $ (81,112) $ (30,406) Weighted-average shares outstanding 27,467 27,051 Basic and diluted loss per share $ (2.95) $ (1.12) |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Apr. 01, 2023 | |
Revenue Recognition and Deferred Revenue [Abstract] | |
Disaggregation of Revenue [Table Text Block] | Disaggregation of Revenue The following table provides information about disaggregated revenue by geographical region (in thousands): Three Months Ended April 1, 2023 April 2, 2022 United States $ 71,986 $ 153,174 EMEA 46,681 65,661 Japan 32,894 50,521 Other 8,731 22,613 Total revenue $ 160,292 $ 291,969 |
Contract with Customer, Asset and Liability [Table Text Block] | Contract Balances The following table provides information about receivables and contract liabilities from contracts with customers (in thousands): April 1, 2023 December 31, 2022 Accounts receivable, net $ 24,891 $ 60,268 Unbilled receivables 5,284 6,569 Contract liabilities 21,741 24,140 The Company invoices customers based upon contractual billing schedules, and accounts receivable are recorded when the right to consideration becomes unconditional. Unbilled receivables represent revenue recognized in excess of billings. Contract liabilities include deferred revenue associated with the Cloud Services and extended warranty plans as well as prepayments received from customers in advance of product shipments. During the three months ended April 1, 2023 and |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Apr. 01, 2023 | |
Leases [Abstract] | |
Lease, Cost [Table Text Block] | The components of lease expense were as follows (in thousands): Three Months Ended April 1, 2023 April 2, 2022 Operating lease cost $ 1,715 $ 851 Variable lease cost 825 918 Total lease cost $ 2,540 $ 1,769 |
Schedule of Leases, Supplemental Cash Flow [Table Text Block] | Supplemental cash flow information related to leases was as follows (in thousands): Three Months Ended April 1, 2023 April 2, 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 2,008 $ 2,039 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ — $ — |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | Maturities of operating lease liabilities were as follows as of April 1, 2023 (in thousands): Remainder of 2023 $ 5,279 2024 6,618 2025 5,794 2026 5,816 2027 5,890 Thereafter 13,048 Total minimum lease payments $ 42,445 Less: imputed interest 5,356 Present value of future minimum lease payments $ 37,089 Less: current portion of operating lease liabilities (Note 7) $ 5,508 Long-term lease liabilities $ 31,581 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Apr. 01, 2023 | |
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 $ 33,482 $ — $ — Derivative instruments (Note 9) — 1,878 — Total assets measured at fair value $ 33,482 $ 1,878 $ — Liabilities: Derivative instruments (Note 9) $ — $ 9,038 $ — Total liabilities measured at fair value $ — $ 9,038 $ — Fair Value Measurements as of Level 1 Level 2 (1) Level 3 Assets: Money market funds $ 79,005 $ — $ — Derivative instruments (Note 9) — 5,619 — Total assets measured at fair value $ 79,005 $ 5,619 $ — Liabilities: Derivative instruments (Note 9) $ — $ 13,793 $ — Total liabilities measured at fair value $ — $ 13,793 $ — (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. |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 3 Months Ended |
Apr. 01, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The following table summarizes the activity in the carrying amount of goodwill and intangible assets for the three months ended April 1, 2023 (in thousands): Goodwill Intangible assets Balance as of December 31, 2022 $ 167,724 $ 11,260 Amortization — (460) Effect of foreign currency translation 1,846 119 Balance as of April 1, 2023 $ 169,570 $ 10,919 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 3 Months Ended |
Apr. 01, 2023 | |
Accrued Liabilities, Current [Abstract] | |
Components of Accrued Expenses | Accrued expenses consisted of the following at (in thousands): April 1, 2023 December 31, 2022 Accrued warranty $ 24,618 $ 27,379 Accrued compensation and benefits 16,095 17,620 Accrued returns and sales incentives 14,909 1,312 Accrued merger related liabilities 11,791 10,895 Derivative liability 7,202 7,310 Current portion of operating lease liabilities 5,508 5,415 Accrued manufacturing and logistics cost 4,516 970 Accrued bonus 4,190 4,538 Accrued sales and other indirect taxes payable 2,898 7,683 Accrued income taxes 350 5,070 Accrued other 8,825 10,767 $ 100,902 $ 98,959 |
Derivative Instruments and He_2
Derivative Instruments and Hedging Activities (Tables) | 3 Months Ended |
Apr. 01, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments [Table Text Block] | The fair values of derivative instruments were as follows (in thousands): Fair Value Classification April 1, 2023 December 31, 2022 Derivatives not designated as hedging instruments: Foreign currency forward contracts Other current assets $ 1,878 $ 4,288 Foreign currency forward contracts Accrued expenses 1,525 3,249 Derivatives designated as cash flow hedges: Foreign currency forward contracts Other assets $ — $ 1,331 Foreign currency forward contracts Accrued expenses 5,677 4,061 Foreign currency forward contracts Long-term liabilities 1,836 6,483 |
Derivative Instruments, Gain (Loss) [Table Text Block] | (Loss) gain associated with derivative instruments not designated as hedging instruments were as follows (in thousands): Three Months Ended Classification April 1, 2023 April 2, 2022 (Loss) gain recognized in income Other expense, net $ (811) $ 2,064 Gain recognized in earnings on cash flow hedging instruments Three Months Ended April 1, 2023 April 2, 2022 Revenue Consolidated statements of operations in which the effects of cash flow hedging instruments are recorded $ 160,292 $ 291,969 Gain on cash flow hedging relationships: Foreign currency forward contracts: Amount of gain reclassified from AOCI into earnings $ 5,403 $ 1,639 |
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): (Loss) gain recognized in OCI on Derivative (1) Three Months Ended April 1, 2023 April 2, 2022 Foreign currency forward contracts $ (1,823) $ 10,257 (1) The amount represents the change in fair value of derivative contracts due to changes in spot rates. |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Apr. 01, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Activity Related to the Warranty Accrual | Activity related to the warranty accrual was as follows (in thousands): Three Months Ended April 1, 2023 April 2, 2022 Balance at beginning of period $ 27,379 $ 32,019 Provision 3,477 6,036 Warranty usage (6,238) (7,816) Balance at end of period $ 24,618 $ 30,239 |
Description of Business (Detail
Description of Business (Details) - $ / shares | Aug. 04, 2022 | Apr. 01, 2023 | Dec. 31, 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 | 1 Months Ended | 3 Months Ended | 12 Months Ended | 15 Months Ended | ||||||
Feb. 28, 2023 employee | Aug. 31, 2022 employee | Apr. 01, 2023 USD ($) employee shares | Dec. 31, 2022 USD ($) | Oct. 01, 2022 USD ($) employee | Apr. 02, 2022 USD ($) shares | Dec. 30, 2023 USD ($) | Apr. 01, 2023 USD ($) employee | Jan. 17, 2023 USD ($) | Mar. 31, 2022 USD ($) | |
Debt and Equity Securities, FV-NI [Line Items] | ||||||||||
Decrease in revenue | 45% | |||||||||
Operating loss | $ 81,297 | $ 23,287 | ||||||||
Decrease in operating activities | 94,507 | $ 102,315 | ||||||||
Cash and cash equivalents | 47,915 | $ 117,949 | $ 47,915 | |||||||
Short-term notes payable | $ 27,000 | 0 | $ 27,000 | |||||||
Number of positions eliminated | employee | 85 | 100 | 100 | |||||||
Percentage of workforce eliminated | 7% | 8% | ||||||||
Number of employees | employee | 1,156 | 1,156 | ||||||||
Decrease in number of employees | employee | 216 | |||||||||
Inventory | $ 229,688 | 285,250 | $ 229,688 | |||||||
Days in inventory | 169 days | |||||||||
Decrease in inventory | $ 55,600 | |||||||||
Allowance for credit loss | 2,700 | 4,700 | 2,700 | |||||||
Refund in tariffs paid | 4,000 | 4,000 | $ 32,000 | |||||||
Cash received from tariff refund | 28,000 | 28,000 | ||||||||
Equity securities without readily determinable fair value | 15,100 | 15,100 | 15,100 | |||||||
Restructuring charges | 3,700 | $ 5,200 | ||||||||
Non-cash impairment loss | $ 3,400 | |||||||||
Outstanding restructuring liability | $ 1,900 | 1,900 | ||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | shares | 1 | 0.8 | ||||||||
Forecast | ||||||||||
Debt and Equity Securities, FV-NI [Line Items] | ||||||||||
Decrease in operating expenses and cost of goods | $ 42,000 | |||||||||
Revolving Credit Facility | Line of Credit | ||||||||||
Debt and Equity Securities, FV-NI [Line Items] | ||||||||||
Unsecured revolving line of credit | $ 100,000 | $ 100,000 | $ 150,000 | |||||||
Roomba Robots | Imported After October, 12, 2021 | ||||||||||
Debt and Equity Securities, FV-NI [Line Items] | ||||||||||
Tariffs paid | $ 11,700 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Basic and Diluted Net Income Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Apr. 01, 2023 | Apr. 02, 2022 | |
Schedule Of Computation Of Basic And Diluted Earnings Per Common Share [Line Items] | ||
Net loss | $ (81,112) | $ (30,406) |
Basic | 27,467 | 27,051 |
Diluted | 27,467 | 27,051 |
Basic income per share | $ (2.95) | $ (1.12) |
Diluted income per share | $ (2.95) | $ (1.12) |
Revenue Recognition - Significa
Revenue Recognition - Significant Judgments (Details) - USD ($) $ in Millions | Apr. 01, 2023 | Dec. 31, 2022 |
Revenue Recognition and Deferred Revenue [Abstract] | ||
Revenue, Remaining Performance Obligation, Amount | $ 21.4 | $ 23.2 |
Refund liability, product returns | 21.7 | 49.2 |
Refund liability, other credits and incentives | $ 56.8 | $ 106.5 |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 01, 2023 | Apr. 02, 2022 | |
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 160,292 | $ 291,969 |
United States | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 71,986 | 153,174 |
EMEA | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 46,681 | 65,661 |
Japan | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 32,894 | 50,521 |
Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 8,731 | $ 22,613 |
Revenue Recognition - Contract
Revenue Recognition - Contract Balances (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Apr. 01, 2023 | Apr. 02, 2022 | Dec. 31, 2022 | |
Revenue Recognition and Deferred Revenue [Abstract] | |||
Accounts receivable, net | $ 24,891 | $ 60,268 | |
Unbilled receivables | 5,284 | 6,569 | |
Contract liabilities | 21,741 | $ 24,140 | |
Contract with Customer, Liability, Revenue Recognized | $ 4,200 | $ 4,700 |
Leases - Narrative (Details)
Leases - Narrative (Details) | Apr. 01, 2023 |
Leases [Abstract] | |
Weighted average discount rate | 4.03% |
Weighted average remaining lease term (in years) | 6 years 6 months 10 days |
Leases - Lease Cost (Details)
Leases - Lease Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 01, 2023 | Apr. 02, 2022 | |
Leases [Abstract] | ||
Operating Lease, Cost | $ 1,715 | $ 851 |
Variable Lease, Cost | 825 | 918 |
Lease, Cost | $ 2,540 | $ 1,769 |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 01, 2023 | Apr. 02, 2022 | |
Leases [Abstract] | ||
Document Period End Date | Apr. 01, 2023 | |
Operating Lease, Payments | $ 2,008 | $ 2,039 |
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | $ 0 | $ 0 |
Leases - Maturity of Operating
Leases - Maturity of Operating Lease Liability (Details) - USD ($) $ in Thousands | Apr. 01, 2023 | Dec. 31, 2022 |
Leases [Abstract] | ||
Remainder of 2023 | $ 5,279 | |
2024 | 6,618 | |
2025 | 5,794 | |
2026 | 5,816 | |
2027 | 5,890 | |
Thereafter | 13,048 | |
Total minimum lease payments | 42,445 | |
Less: imputed interest | 5,356 | |
Present value of future minimum lease payments | 37,089 | |
Current portion of operating lease liabilities | 5,508 | $ 5,415 |
Long-term lease liabilities | $ 31,581 | $ 33,247 |
Leases - Financial Statement Im
Leases - Financial Statement Impact of Adopting ASC 842 (Details) - USD ($) $ in Thousands | Apr. 01, 2023 | Dec. 31, 2022 |
Leases [Abstract] | ||
Operating lease right-of-use asset | $ 25,443 | $ 26,084 |
Present value of future minimum lease payments | $ 37,089 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value on a Recurring Basis (Details) - Fair Value, Recurring [Member] - USD ($) $ in Thousands | Apr. 01, 2023 | Dec. 31, 2022 | |
Fair Value, Inputs, Level 1 [Member] | |||
Assets: | |||
Total assets measured at fair value | $ 33,482 | $ 79,005 | |
Liabilities: | |||
Total liabilities measured at fair value | 0 | 0 | |
Fair Value, Inputs, Level 1 [Member] | Derivative Instrument | |||
Assets: | |||
Derivative instruments (Note 9) | 0 | 0 | |
Liabilities: | |||
Derivative instruments (Note 9) | 0 | 0 | |
Fair Value, Inputs, Level 1 [Member] | Money Market Funds | |||
Assets: | |||
Money market funds | 33,482 | 79,005 | |
Fair Value, Inputs, Level 2 [Member] | |||
Assets: | |||
Total assets measured at fair value | [1] | 1,878 | 5,619 |
Liabilities: | |||
Total liabilities measured at fair value | [1] | 9,038 | 13,793 |
Fair Value, Inputs, Level 2 [Member] | Derivative Instrument | |||
Assets: | |||
Derivative instruments (Note 9) | [1] | 1,878 | 5,619 |
Liabilities: | |||
Derivative instruments (Note 9) | [1] | 9,038 | 13,793 |
Fair Value, Inputs, Level 2 [Member] | Money Market Funds | |||
Assets: | |||
Money market funds | [1] | 0 | 0 |
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, Inputs, Level 3 [Member] | Derivative Instrument | |||
Assets: | |||
Derivative instruments (Note 9) | 0 | 0 | |
Liabilities: | |||
Derivative instruments (Note 9) | 0 | 0 | |
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. |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Schedule of Goodwill (Details) $ in Thousands | 3 Months Ended |
Apr. 01, 2023 USD ($) | |
Goodwill | |
Balance as of December 31, 2022 | $ 167,724 |
Effect of foreign currency translation | 1,846 |
Balance as of April 1, 2023 | 169,570 |
Intangible assets | |
Balance as of December 31, 2022 | 11,260 |
Amortization | (460) |
Effect of foreign currency translation | 119 |
Balance as of April 1, 2023 | $ 10,919 |
Accrued Expenses (Details)
Accrued Expenses (Details) - USD ($) $ in Thousands | Apr. 01, 2023 | Dec. 31, 2022 |
Accounts Payable, Current [Abstract] | ||
Accrued warranty | $ 24,618 | $ 27,379 |
Accrued compensation and benefits | 16,095 | 17,620 |
Accrued returns and sales incentives | 14,909 | 1,312 |
Accrued merger related liabilities | 11,791 | 10,895 |
Derivative liability | 7,202 | 7,310 |
Current portion of operating lease liabilities | 5,508 | 5,415 |
Accrued manufacturing and logistics cost | 4,516 | 970 |
Accrued bonus | 4,190 | 4,538 |
Accrued sales and other indirect taxes payable | 2,898 | 7,683 |
Accrued income taxes | 350 | 5,070 |
Accrued other | 8,825 | 10,767 |
Accrued expenses | $ 100,902 | $ 98,959 |
Working Capital Facility (Detai
Working Capital Facility (Details) - Revolving Credit Facility - Line of Credit - USD ($) $ in Millions | 3 Months Ended | 20 Months Ended | ||
Apr. 01, 2023 | Sep. 17, 2024 | Dec. 29, 2023 | Jan. 17, 2023 | |
Line of Credit Facility [Line Items] | ||||
Unsecured revolving line of credit | $ 100 | $ 150 | ||
Current borrowing capacity | $ 100 | |||
Fourth Amendment To Amended And Restated Credit Agreement | ||||
Line of Credit Facility [Line Items] | ||||
Interest rate, Term SOFR Loans | 4.50% | |||
Interest rate, base rate loans | 3.50% | |||
Interest rate, unused commitments | 3.50% | |||
Borrowing base, eligible receivables | 80% | |||
Borrowing base, eligible inventory | 50% | |||
Borrowing base, eligible in-transit inventory | 30% | |||
Minimum cash requirement | $ 25 | |||
Clean Down Provision, minimum borrowings | $ 75 | |||
Clean Down Provision, minimum term (in consecutive days) | 10 days | |||
Borrowings under revolving credit facility | $ 27 | |||
Available for borrowing under revolving credit facility | $ 73 | |||
Fourth Amendment To Amended And Restated Credit Agreement | Forecast | ||||
Line of Credit Facility [Line Items] | ||||
Clean Down Provision, minimum borrowings | $ 25 | |||
Clean Down Provision, minimum term (in consecutive days) | 30 days |
Derivative Instruments and He_3
Derivative Instruments and Hedging Activities - Schedule of Derivative Instruments (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 01, 2023 | Dec. 31, 2022 | |
Foreign Exchange Forward [Member] | ||
Derivative [Line Items] | ||
Derivative, Notional Amount, Terminated Contracts | $ 151,700 | |
Payments for derivative instruments | 2,500 | |
Designated as Hedging Instrument [Member] | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | $ 181,700 | $ 362,900 |
Derivative, Term of Contract | 1 year 6 months | |
Not Designated as Hedging Instrument [Member] | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | $ 124,900 | 242,000 |
Not Designated as Hedging Instrument [Member] | Maximum | ||
Derivative [Line Items] | ||
Derivative, Term of Contract | 12 months | |
Not Designated as Hedging Instrument [Member] | Foreign Exchange Forward [Member] | ||
Derivative [Line Items] | ||
Derivative instruments (Note 9) | $ 1,878 | 4,288 |
Derivative instruments (Note 9) | 1,525 | 3,249 |
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Foreign Exchange Forward [Member] | ||
Derivative [Line Items] | ||
Derivative instruments (Note 9) | 0 | 1,331 |
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Foreign Exchange Forward [Member] | Accrued Liabilities [Member] | ||
Derivative [Line Items] | ||
Derivative instruments (Note 9) | 5,677 | 4,061 |
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Foreign Exchange Forward [Member] | Other Noncurrent Liabilities [Member] | ||
Derivative [Line Items] | ||
Derivative instruments (Note 9) | $ 1,836 | $ 6,483 |
Derivative Instruments and He_4
Derivative Instruments and Hedging Activities (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Apr. 01, 2023 | Apr. 02, 2022 | ||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Revenue | $ 160,292 | $ 291,969 | |
Foreign Exchange Forward [Member] | Cash Flow Hedging [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) recognized in OCI on Derivative | [1] | (1,823) | 10,257 |
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | 5,403 | 1,639 | |
Other Nonoperating Income (Expense) [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | $ (811) | $ 2,064 | |
[1]The amount represents the change in fair value of derivative contracts due to changes in spot rates. |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Aug. 04, 2022 | Apr. 01, 2023 | |
Other Commitments [Line Items] | ||
Outstanding purchase orders | $ 228.7 | |
Outstanding purchase orders related to inventory | 82.5 | |
Noncancellable without penalty contractual obligation | 43.1 | |
Payments for contractual obligations | $ 3.9 | |
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 | |
Apr. 01, 2023 | Apr. 02, 2022 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||
Balance at beginning of period | $ 27,379 | $ 32,019 |
Provision | 3,477 | 6,036 |
Warranty usage | (6,238) | (7,816) |
Balance at end of period | $ 24,618 | $ 30,239 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Apr. 01, 2023 | Apr. 02, 2022 | Oct. 01, 2022 | |
Income Tax Disclosure [Abstract] | |||
Valuation allowance recorded against deferred tax assets | $ 57,500 | ||
Income tax benefit | $ (1,262) | $ (9,627) | |
Effective Income Tax Rate Reconciliation, Percent | 1.50% | 24% |
Industry Segment, Geographic _2
Industry Segment, Geographic Information and Significant Customers - Additional Information (Detail) - segment | 3 Months Ended | |
Apr. 01, 2023 | Apr. 02, 2022 | |
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 | 12% | 26.60% |