iRobot (IRBT) 10-Q 9 May 23 2023 Q1 Quarterly report Financial data

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%