Fox Factory Holding (FOXF) 10-Q 1 Nov 17 2017 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 29, 2017	Oct. 27, 2017
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 29, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q3
Trading Symbol	FOXF
Entity Registrant Name	Fox Factory Holding Corp
Entity Central Index Key	1,424,929
Current Fiscal Year End Date	--12-29
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		37,542,051

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 29, 2017	Dec. 30, 2016
Current assets:
Cash and cash equivalents	$ 36,763	$ 35,280
Accounts receivable (net of allowances of $519 and $397 at September 29, 2017 and December 30, 2016, respectively)	69,262	61,617
Inventory	91,962	71,243
Prepaids and other current assets	15,611	14,772
Total current assets	213,598	182,912
Property, plant and equipment, net	37,515	32,262
Deferred tax assets	11,232	4,082
Goodwill	57,878	57,781
Intangibles, net	55,839	57,855
Other assets	590	708
Total assets	376,652	335,600
Current liabilities:
Accounts payable	47,326	36,240
Accrued expenses	27,306	34,435
Reserve for uncertain tax positions	6,872	7,204
Current portion of long-term debt	4,567	3,625
Current portion of contingent consideration	0	5,532
Total current liabilities	86,071	87,036
Long-term debt, less current portion	59,397	63,058
Deferred rent	614	569
Total liabilities	146,082	150,663
Commitments and contingencies (Note 6)
Stockholders’ equity
Preferred stock, $0.001 par value — 10,000 authorized and no shares issued or outstanding as of September 29, 2017 and December 30, 2016	0	0
Common stock, $0.001 par value — 90,000 authorized; 38,404 shares issued and 37,514 outstanding as of September 29, 2017; 37,781 shares issued and 36,891 outstanding as of December 30, 2016	38	37
Additional paid-in capital	111,794	108,049
Treasury stock, at cost; 890 common shares as of September 29, 2017 and December 30, 2016	(13,754)	(13,754)
Accumulated other comprehensive loss	(632)	(2,193)
Retained earnings	133,124	92,798
Total stockholders’ equity	230,570	184,937
Total liabilities and stockholders’ equity	$ 376,652	$ 335,600

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Sep. 29, 2017	Dec. 30, 2016
Statement of Financial Position [Abstract]
Accounts receivable, allowance for doubtful accounts	$ 519	$ 397
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized	90,000,000	90,000,000
Common stock, shares issued	38,404,000	37,781,000
Common stock, shares outstanding	37,514,000	36,891,000
Treasury stock, shares	890	890

Condensed Consolidated Statemen

Condensed Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 29, 2017	Sep. 30, 2016	Sep. 29, 2017	Sep. 30, 2016
Income Statement [Abstract]
Sales	$ 127,399	$ 109,011	$ 354,540	$ 291,522
Cost of sales	84,802	74,125	239,172	199,191
Gross profit	42,597	34,886	115,368	92,331
Operating expenses:
Sales and marketing	6,914	6,417	20,574	19,447
Research and development	5,547	4,724	15,011	13,698
General and administrative	9,061	7,129	25,263	20,159
Amortization of purchased intangibles	697	712	2,089	2,289
Fair value adjustment of contingent consideration and acquisition-related compensation	0	818	1,447	4,681
Total operating expenses	22,219	19,800	64,384	60,274
Income from operations	20,378	15,086	50,984	32,057
Other expense, net:
Interest expense	602	555	1,696	1,515
Other (income) expense, net	(181)	(507)	285	365
Other expense, net	421	48	1,981	1,880
Income before income taxes	19,957	15,038	49,003	30,177
Provision for income taxes	3,885	1,354	8,677	4,315
Net income	$ 16,072	$ 13,684	$ 40,326	$ 25,862
Earnings per share:
Basic (in dollars per share)	$ 0.43	$ 0.37	$ 1.08	$ 0.70
Diluted (in dollars per share)	$ 0.41	$ 0.36	$ 1.04	$ 0.69
Weighted average shares used to compute earnings per share:
Basic (in shares)	37,474	36,777	37,312	36,774
Diluted (in shares)	38,817	37,786	38,700	37,747

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 29, 2017	Sep. 30, 2016	Sep. 29, 2017	Sep. 30, 2016
Statement of Comprehensive Income [Abstract]
Net income	$ 16,072	$ 13,684	$ 40,326	$ 25,862
Other comprehensive (income) loss:
Foreign currency translation adjustments, net of tax effects	345	(187)	1,561	605
Other comprehensive (income) loss	345	(187)	1,561	605
Comprehensive income	$ 16,417	$ 13,497	$ 41,887	$ 26,467

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 29, 2017	Sep. 30, 2016
OPERATING ACTIVITIES:
Net income	$ 40,326	$ 25,862
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	7,325	6,612
Stock-based compensation	6,600	4,621
Deferred taxes	(7,135)	(4,481)
Change in fair value of contingent consideration	(150)	239
Cost of goods on acquired inventory step up	0	159
Changes in operating assets and liabilities:
Accounts receivable	(6,531)	(14,145)
Inventory	(19,844)	(9,356)
Income taxes payable	3,791	107
Prepaids and other assets	(2,981)	(4,900)
Accounts payable	10,128	6,393
Accrued expenses and deferred rent	(9,498)	133
Net cash provided by operating activities	22,031	11,244
INVESTING ACTIVITIES:
Purchases of property and equipment	(10,141)	(9,007)
Purchase of intangible assets	(84)	(198)
Net cash used in investing activities	(10,225)	(9,205)
FINANCING ACTIVITIES:
Proceeds from line of credit	0	29,500
Payments on line of credit	0	(12,500)
Payment of contingent consideration liability	(5,382)	(6,889)
Proceeds from issuance of debt, net of origination fees of $286	0	9,222
Repayment of debt	(2,812)	(2,584)
Repurchase of common stock	0	(7,948)
Cash from stock compensation program, net	(2,854)	(1,183)
Net cash (used in) provided by financing activities	(11,048)	7,618
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS	725	(908)
CHANGE IN CASH AND CASH EQUIVALENTS	1,483	8,749
CASH AND CASH EQUIVALENTS—Beginning of period	35,280	6,944
CASH AND CASH EQUIVALENTS—End of period	36,763	15,693
Cash paid during the period for:
Income taxes	11,946	11,423
Interest	1,485	1,236
Non-cash financing activity:
Refinancing of line of credit to term debt	$ 0	$ 18,500

Condensed Consolidated Stateme7

Condensed Consolidated Statements of Cash Flows (Parenthetical) $ in Thousands	9 Months Ended
	Sep. 30, 2016USD ($)
Statement of Cash Flows [Abstract]
Origination fees	$ 286

Description of Business, Basis

Description of Business, Basis of Presentation and Summary of Significant Accounting Policies	9 Months Ended
	Sep. 29, 2017
Accounting Policies [Abstract]
Description of Business, Basis of Presentation and Summary of Significant Accounting Policies	Description of the Business, Basis of Presentation and Summary of Significant Accounting Policies Fox Factory Holding Corp. (the "Company") designs and manufactures performance-defining ride dynamics products primarily for bicycles, on-road and off-road vehicles and trucks, side-by-side vehicles, all-terrain vehicles, snowmobiles, specialty vehicles and applications, and motorcycles. The Company is a direct supplier to leading power vehicle original equipment manufacturers ("OEMs"). Additionally, the Company supplies top bicycle OEMs and their contract manufacturers, and provides aftermarket products to retailers and distributors. Throughout this Form 10-Q, unless stated otherwise or as the context otherwise requires, the "Company," "FOX," "Fox Factory," "we," "us," "our," and "ours" refer to Fox Factory Holding Corp. and its wholly owned operating subsidiaries on a consolidated basis. Basis of Presentation - The accompanying condensed consolidated financial statements are unaudited. These unaudited interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted (“GAAP”) in the United States of America ("U.S.") and applicable rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. The year-end condensed balance sheet data was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the U.S. Certain information and footnote disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. Accordingly, these interim condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements for the fiscal year ended December 30, 2016 included in the Company’s Annual Report on Form 10-K as filed with the SEC. In management’s opinion, the unaudited interim condensed consolidated financial statements reflect all adjustments, which are of a normal and recurring nature, that are necessary for a fair presentation of financial results for the interim periods presented. Operating results for any quarter are not necessarily indicative of the results expected for the full fiscal year. The Company operates on a 52-53 week fiscal calendar. For 2017 and 2016, the Company's fiscal year will end or has ended on December 29, 2017 and December 30, 2016, respectively. The three and nine month periods ended September 29, 2017 and September 30, 2016 each included 13 weeks and 26 weeks. Principles of Consolidation - These condensed consolidated financial statements include the Company and its wholly owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. Summary of Significant Accounting Policies - There have been no changes to our significant accounting policies described in our Annual Report on Form 10-K for the fiscal year ended December 30, 2016 that have had a material impact on our condensed consolidated financial statements and related notes. Use of Estimates - The preparation of the Company’s condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. These estimates are based on information available as of the date of the financial statements; therefore, actual results could differ from management’s estimates. Certain Significant Risks and Uncertainties - The Company is subject to those risks common in manufacturing-driven markets, including, but not limited to, competitive forces, dependence on key personnel, customer demand for its products, the successful protection of its proprietary technologies, compliance with government regulations, and the possibility of not being able to obtain additional financing when needed. Fair Value Measurements - The Company uses the fair value hierarchy established in ASC Topic 820, Fair Value Measurements and Disclosures, which requires the valuation of assets and liabilities subject to fair value measurements using a three tiered approach and fair value measurement be classified and disclosed by the Company in one of the following three categories: Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; Level 2: Quoted prices for similar assets and liabilities in active markets, quoted prices for identical assets and liabilities in markets that are not active, or inputs which are observable, either directly or indirectly, for substantially the full term of the asset or liability; and Level 3: Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e. supported by little or no market activity). The carrying amount of the Company's financial instruments, including cash, receivables, accounts payable, and accrued liabilities approximate their fair values due to their short-term nature. Recent Accounting Pronouncements - In May 2014, the FASB and International Accounting Standards Board issued their converged standard on revenue recognition, Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers, updated in December 2016 with the release of ASU 2016-20. This standard outlines a single comprehensive model for companies to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. The core principle of the revenue model is that an entity recognizes revenue to depict the transfer of promised goods and services in an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods and services. In addition, the new standard requires that reporting companies disclose the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. This standard will be effective for fiscal years, and interim periods within those years, beginning the first quarter of fiscal year 2018. The Company can choose to apply this standard retrospectively for each prior reporting period presented or retrospectively with the cumulative effect of initially applying the standard recognized at the date of the initial application in retained earnings. The Company has not yet selected a transition method. We have established a cross-functional team to implement the guidance related to the recognition of revenue from contracts with customers. We are in the process of assessing our customer contracts, identifying contractual provisions that may result in a change in the timing or the amount of revenue recognized in comparison with current guidance, as well as assessing the enhanced disclosure requirements of the new guidance. Under the proposed requirements, the customized nature of some of our products combined with contractual provisions that provide us with an enforceable right to payment, may require us to recognize revenue prior to the product being shipped to the customer. We are also assessing pricing provisions contained in certain of our customer contracts which may represent variable consideration or may provide the customer with a material right, potentially resulting in a different allocation of the transaction price than under current guidance. In addition, we are evaluating how the new guidance may impact our accounting for contractually guaranteed reimbursements related to customer tooling, engineering services and pre-production costs. Under the current applicable guidance, these customer reimbursements are recorded as cost recovery offsets; whereas under the new standard these guaranteed recoveries may represent consideration from contracts with customers and be recorded as revenues. We continue to evaluate the impact this guidance will have on our financial statements. In July 2015, the FASB issued ASU 2015-11, Simplifying the Measurement of Inventory. The guidance applies to inventory that is measured using first-in, first-out (“FIFO”) or average cost. Under the guidance, an entity should measure inventory that is within scope at the lower of cost and net realizable value, which is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. The Company adopted ASU 2015-11 at the beginning of fiscal year 2017. The adoption of ASU 2015-11 did not have a material impact on the Company's consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases, which will supersede the existing guidance for lease accounting. This ASU will require lessees to recognize leases with durations greater than twelve months on the balance sheet. This guidance is effective for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years, and early adoption is permitted. The Company is currently assessing the impact this guidance will have on its consolidated financial statements. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments, which clarifies the presentation of certain transactions, including, but not limited to, contingent consideration payments made after a business combination and debt prepayment and extinguishment costs in the cash flow statement. This standard will be effective for fiscal years, and interim periods within those years, beginning the first quarter of fiscal year 2019. Early adoption is permitted. The Company is currently assessing the impact this guidance will have on its consolidated statement of cash flows. In October 2016, the FASB issued ASU 2016-16, Income Taxes: Intra Entity Transfer of Assets Other Than Inventory, which improves the accounting for the income tax consequences of intra entity transfers of assets other than inventory. This standard will be effective for fiscal years, and interim periods within those years, beginning the first quarter of fiscal year 2018. The Company is currently assessing the impact this guidance will have on its consolidated financial statements. In January 2017, the FASB issued ASU 2017-01, Business Combinations: Clarifying the Definition of a Business, which provides more guidance to an entity when they are assessing if transactions should be accounted for as acquisitions of assets or businesses. The clarification of the definition of a business impacts various areas of accounting such as acquisitions, disposals, goodwill, and consolidations. This standard will be effective for fiscal years, and interim periods within those years, beginning the first quarter of fiscal year 2018. The Company is currently assessing the impact this guidance will have on its consolidated financial statements. In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment, which removes the second step of the goodwill impairment test that would currently require the assessment of fair value of individual assets and liabilities of a reporting unit to measure goodwill impairments. Under ASU 2017-04, goodwill impairment will be the amount by which a reporting unit's carrying value exceeds its fair value. The Company adopted ASU 2017-04 effective for goodwill impairment tests performed on testing dates after January 1, 2017. The adoption of ASU 2017-14 did not have a material impact on the Company's consolidated financial statements. Reclassifications - Certain non-vendor liabilities have been reclassified from accounts payable to accrued expenses in the December 30, 2016 condensed consolidated balance sheet and the condensed consolidated statement of cash flows for the nine months ended September 30, 2016 in order to more accurately reflect the nature of the liability on a basis consistent with the financial statements as of and for the period ended September 29, 2017 .

Stockholders' Equity

Stockholders' Equity	9 Months Ended
	Sep. 29, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stockholders' Equity	Stockholders' Equity Stock Repurchase Program and Secondary Stock Offerings In February 2016, the Company's Board of Directors authorized the Company's 2016 stock repurchase program (the "2016 Repurchase Program"), permitting repurchases of up to an aggregate of $40,000 in shares of common stock. The plan expires on December 31, 2017, unless extended by the Company's Board of Directors. Shares of common stock repurchased under this program are accounted for as treasury stock under the cost method. In March 2016, Compass Group Diversified Holdings LLC ("Compass") sold 2,500 shares of the Company's common stock at a price of $15.895 per share less underwriting discounts and commissions, in a secondary public offering. The Company did not sell shares or receive any proceeds from the sales of shares by Compass. Concurrently, pursuant to the 2016 Repurchase Program and a stock repurchase agreement between Compass and the Company, the Company repurchased 500 shares of its common stock held by Compass for a total of $7,947 . In August 2016, selling stockholders, including Compass, sold 4,025 shares of the Company's common stock at a price of $18.00 per share, less underwriting discounts and commissions, in a secondary public offering. The total shares sold included 525 shares, which were also sold by certain selling stockholders, in connection with the underwriters' option to purchase additional shares. The Company did not sell shares or receive any proceeds from the sales of shares by the selling stockholders. In November 2016, the Company closed another secondary offering, whereby the selling stockholders, including Compass, sold an additional 4,025 shares of the Company's common stock at a price of $20.51 per share, less underwriting discounts and commissions. The total shares sold include 525 shares, which were also sold by certain selling stockholders, in connection with the underwriters' option to purchase additional shares. The Company did not sell shares or receive any proceeds from the sales of shares by the selling stockholders. In March 2017, the Company closed another secondary offering, whereby the selling stockholders, including Compass, sold an additional 5,574 shares of the Company's common stock at a price of $26.65 per share, less underwriting discounts and commissions. The total shares sold include 466 shares, which were also sold by certain selling stockholders, in connection with the underwriters' option to purchase additional shares. The Company did not sell shares or receive any proceeds from the sales of shares by the selling stockholders. As a result of the March 2017 secondary offering, Compass no longer holds any equity interest in the Company. The Company incurred approximately $113 of expenses in connection with the secondary offerings during the nine months ended September 29, 2017 . The Company incurred approximately $179 and $428 of expenses in connection with the offerings during the three and nine months ended September 30, 2016 , respectively. At September 29, 2017 , $32,052 remains available for repurchase under the 2016 Repurchase Program. The Company has repurchased 890 shares for a total of $13,754 under both the 2016 Repurchase Program and the prior repurchase program of the Company, which expired on December 31, 2015. Equity Incentive Plans The following table summarizes the allocation of stock-based compensation in the accompanying consolidated statements of income: For the three months ended For the nine months ended September 29, 2017 September 30, 2016 September 29, 2017 September 30, 2016 Cost of sales $ 99 $ 31 $ 278 $ 105 Sales and marketing 151 144 420 446 Research and development 127 84 305 266 General and administrative 1,934 1,270 5,597 3,804 Total $ 2,311 $ 1,529 $ 6,600 $ 4,621 The following table summarizes the activity for the Company's unvested restricted stock units ("RSU") for the nine months ended September 29, 2017 . Unvested RSUs Number of shares outstanding Weighted-average grant date fair value Unvested at December 30, 2016 811 $ 16.53 Granted 404 $ 31.26 Forfeited (47 ) $ 16.13 Vested (362 ) $ 16.90 Unvested at September 29, 2017 806 $ 23.76 During the nine months ended September 29, 2017 , 407 shares of common stock were issued due to the exercise of stock options, resulting in proceeds to the Company of approximately $ 2,260 . Options to purchase 9 and 14 shares of common stock were expired and forfeited, respectively, during the nine months ended September 29, 2017 . As of September 29, 2017, stock-based compensation expense related to stock options has been fully recognized. As of September 29, 2017 , the Company had approximately $15,292 of unrecognized stock-based compensation expense related to RSUs, which will be recognized over the remaining weighted-average vesting period of approximately 2.73 years.

Inventory

Inventory	9 Months Ended
	Sep. 29, 2017
Inventory Disclosure [Abstract]
Inventory	Inventory Inventory consisted of the following: September 29, 2017 2016 Raw materials $ 57,815 $ 46,679 Work-in-process 3,554 1,929 Finished goods 30,593 22,635 Total inventory $ 91,962 $ 71,243

Property, Plant and Equipment,

Property, Plant and Equipment, net	9 Months Ended
	Sep. 29, 2017
Property, Plant and Equipment [Abstract]
Property, Plant and Equipment, net	Property, Plant and Equipment, net Property, plant and equipment consisted of the following: September 29, 2017 2016 Machinery and manufacturing equipment $ 31,792 $ 28,752 Information systems, office equipment and furniture 5,889 7,449 Internal use computer software 8,224 5,337 Transportation equipment 3,050 2,531 Building and land 5,795 4,358 Leasehold improvements 8,391 8,083 Total 63,141 56,510 Less: accumulated depreciation and amortization (25,626 ) (24,248 ) Property, plant and equipment, net $ 37,515 $ 32,262

Accrued Expenses

Accrued Expenses	9 Months Ended
	Sep. 29, 2017
Payables and Accruals [Abstract]
Accrued Expenses	Accrued Expenses Accrued expenses consisted of the following: September 29, 2017 2016 Payroll and related expenses $ 10,861 $ 10,717 Management earn-out — 6,421 Warranty 5,133 4,593 Income tax payable 6,276 4,490 Other accrued expenses 5,036 8,214 Total $ 27,306 $ 34,435 Activity related to warranties is as follows: For the three months ended For the nine months ended September 29, 2017 September 30, 2016 September 29, 2017 September 30, 2016 Beginning warranty liability $ 5,077 $ 4,198 $ 4,593 $ 3,914 Charge to cost of sales 992 1,155 4,045 3,349 Costs incurred (936 ) (1,051 ) (3,505 ) (2,961 ) Ending warranty liability $ 5,133 $ 4,302 $ 5,133 $ 4,302

Debt

Debt	9 Months Ended
	Sep. 29, 2017
Debt Disclosure [Abstract]
Debt	Debt Second Amended and Restated Credit Facility In August 2013, the Company entered into a credit facility with Sun Trust Bank and other named lenders which has been periodically amended and restated; the last restatement occurred on May 11, 2016 and was further amended on August 11, 2016 and June 12, 2017 (as most recently amended and restated and as further amended, the “Second Amended and Restated Credit Facility”). The Second Amended and Restated Credit Facility, which matures on May 11, 2021, provides a revolving line of credit and a maturing secured term loan with a refinanced original principal balance of $75,000 . The term loan is subject to quarterly amortization payments. The Second Amended and Restated Credit Facility provides for interest at either a rate based on the London Interbank Offered Rate, or LIBOR, plus a margin ranging from 1.50% to 2.50% , or based on the prime rate offered by SunTrust Bank plus a margin ranging from 0.50% to 1.50% . At September 29, 2017 , the one month LIBOR and prime rates were 1.24% and 4.25% , respectively. At September 29, 2017 , our weighted average interest rate on outstanding borrowing was 2.83% . The Second Amended and Restated Credit Facility is secured by substantially all of the Company’s assets, restricts the Company's ability to make certain payments and engage in certain transactions, and also requires that the Company satisfy customary financial ratios. The Company was in compliance with the covenants as of September 29, 2017 . The following table summarizes the line of credit under the Second Amended and Restated Credit Facility: September 29, December 30, 2017 2016 Amount outstanding $ — $ — Available borrowing capacity $ 100,000 $ 100,000 Maximum borrowing capacity $ 100,000 $ 100,000 Maturity date May 11, 2021 As of September 29, 2017 , future principal payments for long-term debt, including the current portion, are summarized as follows: For fiscal year: 2017 (remaining three months) $ 938 2018 5,156 2019 5,625 2020 7,031 2021 45,625 Total 64,375 Debt issuance cost (411 ) Long-term debt, net of issuance cost 63,964 Less: current portion (4,567 ) Long-term debt less current portion $ 59,397

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 29, 2017
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Operating Leases - The Company has operating lease agreements for administrative, research and development, manufacturing and sales and marketing facilities and equipment that expire at various dates. The Company recognizes rent expense on a straight-line basis over the lease term and records the difference between cash rent payments and the recognition of rent expense as a deferred rent liability. See Note 12 - Related Party Agreements for additional information on related party operating leases. Indemnification Agreements - In the ordinary course of business, the Company may provide indemnifications of varying scope and terms to customers, vendors, lessors, business partners, and other parties with respect to certain matters, including, but not limited to, losses arising out of breach of such agreements, services to be provided by the Company or intellectual property infringement claims made by third parties. In addition, the Company has entered into indemnification agreements with directors and certain officers and employees that will require the Company, among other things, to indemnify them against certain liabilities that may arise by reason of their status or service as directors, officers or employees. While the outcome of these matters cannot be predicted with certainty, the Company does not believe that the outcome of any claims under indemnification arrangements will have a material effect on the Company’s results of operations, financial position or liquidity. Legal Proceedings - A lawsuit was filed on December 17, 2015 by SRAM Corporation (“SRAM”) in the U.S. District Court, Northern District of Illinois, against the Company’s wholly owned subsidiary, RFE Canada Holding Corp. (“RFE Canada”). The lawsuit alleges patent infringement of U.S. Patent number 9,182,027 ("'027 Patent") and violation of the Lanham Act. SRAM filed a second lawsuit in the same court against RFE Canada on May 16, 2016. That lawsuit alleges patent infringement of U.S patent number 9,291,250 ("'250 Patent"). The Company believes the lawsuits are without merit and intends to vigorously defend itself. As such, the Company has filed, before the U.S. Patent and Trademark Appeals Board ("PTAB"), for three separate Interparties Reviews ("IPR") of the '027 Patent and for an IPR of the '250 Patent. All of the Company-filed IPRs of the '027 patent have been instituted for trial by the PTAB and the IPR of the ‘250 patent is pending institution. In addition to instituting the Company’s IPR Petitions, the PTAB stayed a third party ex-parte re-exam of SRAM’s ‘027 Patent. In a separate action, the Company filed a lawsuit on January 29, 2016 in the U.S. District Court, Northern District of California against SRAM. That lawsuit alleges SRAM’s infringement of two separate Company-owned patents, specifically U.S. Patent numbers 6,135,434 and 6,557,674. A second lawsuit was filed by the Company on July 1, 2016 in the U.S. District Court, Northern District of California against SRAM alleging SRAM’s infringement of the Company’s U.S. Patent numbers 8,226,172 and 8,974,009. The SRAM lawsuits against the Company have been stayed by the Court in Illinois pending a PTAB determination in the Company-filed SRAM patent reviews. Meanwhile the Company-filed lawsuits have moved forward as scheduled by the courts. Due to the early stage of this lawsuit and the inherent uncertainties of litigation, the Company is not able to predict either the outcome or a range of reasonably possible losses, if any, at this time. Accordingly, no amounts have been recorded in the condensed consolidated financial statements for the settlement of these matters. Were an unfavorable ruling to occur, or if factors indicate that a loss is probable and reasonably estimable, the Company's business, financial condition or results of operations could be materially and adversely affected. The Company is involved in other legal matters that arise in the ordinary course of business. Based on information currently available, management does not believe that the ultimate resolution of these matters will have a material adverse effect on the Company's financial condition, results of operations or cash flows. Other Commitments - In 2017, the Company paid $5,382 for contingent consideration and $7,898 ( $10,500 Canadian dollars) for acquisition-related compensation, associated with two business combinations that were consummated in 2014. No other material contractual obligation has changed since the Company's Annual Report on Form 10-K for the fiscal year ended December 30, 2016 , as filed with the SEC on March 1, 2017 .

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Sep. 29, 2017
Fair Value Disclosures [Abstract]
Fair Value Measurements	Fair Value Measurements The following table presents the Company's hierarchy for its assets and liabilities measured at fair value on a recurring basis as of the following periods: September 29, 2017 December 30, 2016 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Liabilities: Credit facility $ — $ 63,964 $ — $ 63,964 $ — $ 66,683 $ — $ 66,683 Contingent consideration — — — — — — 5,532 5,532 Total liabilities measured at fair value $ — $ 63,964 $ — $ 63,964 $ — $ 66,683 $ 5,532 $ 72,215 There were no transfers of assets or liabilities between Level 1, Level 2, and Level 3 categories of the fair value hierarchy during the nine month period ended September 29, 2017 and the twelve month period ended December 30, 2016 . The Company used Level 2 inputs to determine the fair value of its Second Amended and Restated Credit Facility. As of September 29, 2017 and December 30, 2016 , the carrying amount of the principal under the Company’s Second Amended and Restated Credit Facility approximates fair value because it has a variable interest rate that reflects market changes in interest rates and changes in the Company’s net leverage ratio. The Company measured its contingent consideration liability arising from a prior acquisition using Level 3 inputs not observed in the market. The contingent consideration liability is associated with the achievement of adjusted EBITDA targets, and is estimated at each balance sheet date by considering among other factors, the acquired company's projected or actual results. The change in fair value is recorded as a component of fair value adjustment of contingent consideration and acquisition-related compensation in the accompanying condensed consolidated statements of income for the nine months ended September 29, 2017 . The following table provides a reconciliation of the beginning and ending balances for the Company's contingent consideration liability measured at fair value using Level 3 inputs: Contingent consideration liability (level 3 measurement) Balance at December 30, 2016 $ 5,532 Change in fair value (150 ) Payment of contingent consideration liability (5,382 ) Balance at September 29, 2017 $ —

Income Taxes

Income Taxes	9 Months Ended
	Sep. 29, 2017
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes For the three months ended For the nine months ended September 29, 2017 September 30, 2016 September 29, 2017 September 30, 2016 Provision for income taxes $ 3,885 $ 1,354 $ 8,677 $ 4,315 Effective tax rates 19.5 % 9.0 % 17.7 % 14.3 % Under ASC 740-30, the Company is not required to accrue U.S. income taxes on permanently reinvested unremitted earnings of Fox Switzerland and its Taiwan branch. The Company considers the following matters, among others, in evaluating its plans for indefinite reinvestment: (i) the financial requirements of both the Company and its foreign operations, both for the long term and for the short term; (ii) the ability to manage cash globally through royalty remittances and intercompany loans created in the licensing and transfer of assets to Fox Switzerland; (iii) the tax consequences of any decision to reinvest the earnings of Fox Switzerland, including any changes in U.S. tax law relating to the treatment of these unremitted earnings; and (iv) any U.S. and foreign government programs or regulations relating to the repatriation of these unremitted earnings. If unremitted earnings are no longer permanently reinvested, the Company would need to adjust the income tax provision in the period management makes such determination. For the three and nine months ended September 29, 2017 , the difference between the Company's effective tax rate and the 35% federal statutory rate resulted primarily from lower foreign tax rates on permanently reinvested earnings of the Company's foreign subsidiaries and $1,190 and $5,212 , respectively, from excess benefits related to the exercise of stock options and vesting of RSUs. These benefits were partially offset by state taxes and the impact of non-deductible costs. For the three and nine months ended September 30, 2016 , the difference between the Company's effective tax rate and the 35% federal statutory rate resulted primarily from lower foreign rates on permanently reinvested earnings of the Company's foreign subsidiaries, the reversal of certain tax reserves as a result of the conclusion of the Company's 2011 and 2012 California Franchise Tax Board audits and from the expiration of the statute of limitations in certain jurisdictions, the benefit of excess deductions on stock-based compensation, tax credits, and the benefit of cumulative translation losses upon the sale of the net assets of the Taiwan branch to Fox Switzerland. Tax credits that contributed to the favorable effective tax rate include a state tax credit of $488 , net of federal taxes, for the achievement of employment and investment milestones in connection with the expansion of the Company's facility in El Cajon, California. These benefits were partially offset by state taxes and the impact of non-deductible costs. The Company's federal tax returns for 2013 forward, state tax returns for 2012 forward, and foreign tax returns from 2014 forward are subject to examination by tax authorities. The Company's 2015 federal tax return is currently under examination by the Internal Revenue Service ("IRS") regarding the deductibility of amortization and depreciation deductions which were incurred as a result of the acquisition of the Company in 2008, among other issues. The Company believes it is reasonably possible that as a result of the IRS' examination, its federal and state uncertain tax position will be resolved in the next twelve months. Considering that this examination is in its early stages, the Company is currently unable to predict the outcome of the audit. The Company has obtained tax incentives in Switzerland that are effective through March 2019 that result in a rate reduction provided that the Company meets specified criteria. Upon expiration, the Company may renew the arrangement on demand, as long as the applicable law and operating criteria remain in place. The effect of the tax incentives were not material to the Company's income tax provision for the three and nine months ended September 29, 2017 or September 30, 2016 .

Earnings Per Share

Earnings Per Share	9 Months Ended
	Sep. 29, 2017
Earnings Per Share [Abstract]
Earnings Per Share	Earnings Per Share Basic earnings per share ("EPS") amounts are computed by dividing net income for the period by the weighted average number of common shares outstanding during the period. Diluted EPS amounts are computed by dividing net income for the period by the weighted average number of shares of common stock and potentially dilutive common stock outstanding during the period. Potentially dilutive common shares include shares issuable upon the exercise of outstanding stock options and vesting of RSUs, which are reflected in diluted earnings per share by application of the treasury stock method. The following table presents the calculation of basic and diluted earnings per share: For the three months ended For the nine months ended September 29, 2017 September 30, 2016 September 29, 2017 September 30, 2016 Net income $ 16,072 $ 13,684 $ 40,326 $ 25,862 Weighted average shares used to compute basic earnings per share 37,474 36,777 37,312 36,774 Dilutive effect of employee stock plans 1,343 1,009 1,388 973 Weighted average shares used to compute diluted earnings per share 38,817 37,786 38,700 37,747 Earnings per share: Basic $ 0.43 $ 0.37 $ 1.08 $ 0.70 Diluted $ 0.41 $ 0.36 $ 1.04 $ 0.69 The Company did not exclude any potentially dilutive shares from the calculation of diluted earnings per share for the three and nine months ended September 29, 2017 and September 30, 2016 , as none of these shares would have been antidilutive.

Segments

Segments	9 Months Ended
	Sep. 29, 2017
Segment Reporting [Abstract]
Segments	Segments The Company has determined that it has a single operating and reportable segment. The Company considers operating segments to be components of the Company in which separate financial information is available that is evaluated regularly by the Company’s chief operating decision maker in deciding how to allocate resources and in assessing performance. The chief operating decision maker for the Company is the Chief Executive Officer. The Chief Executive Officer reviews financial information presented on a consolidated basis for purposes of allocating resources and evaluating financial performance. The following table summarizes total sales generated by geographic location of the customer: For the three months ended For the nine months ended September 29, 2017 September 30, 2016 September 29, 2017 September 30, 2016 North America $ 75,170 $ 59,389 $ 212,157 $ 158,616 Asia 27,081 26,752 77,177 72,682 Europe 22,812 21,996 59,554 57,715 Rest of the world 2,336 874 5,652 2,509 Total sales $ 127,399 $ 109,011 $ 354,540 $ 291,522 Previously, the Company reported sales to U.S. customers on a standalone basis, while sales to customers in the rest of North America were included under the rest of the world caption. The Company has determined that the markets in North America share common economic characteristics and as such has combined sales to all North American countries, reclassifying our previously reported sales for the three and nine month periods ended September 30, 2016 for comparability. The following table summarizes total sales by product category: For the three months ended For the nine months ended September 29, 2017 September 30, 2016 September 29, 2017 September 30, 2016 Bike products $ 66,831 $ 61,372 $ 183,878 $ 169,499 Power vehicle products 60,568 47,639 170,662 122,023 Total sales $ 127,399 $ 109,011 $ 354,540 $ 291,522 The Company’s long-lived assets by geographic location are as follows: September 29, December 30, 2017 2016 United States $ 33,007 $ 29,344 International 4,508 2,918 Total long-lived assets $ 37,515 $ 32,262

Related Party Agreements

Related Party Agreements	9 Months Ended
	Sep. 29, 2017
Related Party Transactions [Abstract]
Related Party Agreements	Related Party Agreements In September 2014, the Company entered into an agreement with Compass to assist with compliance requirements pursuant to the Sarbanes-Oxley Act of 2002, as amended (the "Sarbanes-Oxley Act"). Fees paid for services provided for compliance associated with the audit of our fiscal 2015 financial statements were approximately $135 , including $72 expensed in the nine months ended September 30, 2016 . This agreement expired upon completion of the services related to fiscal year 2015. Fox Factory, Inc. has a triple-net building lease for its manufacturing and office facilities in Watsonville, California. The building is owned by Mr. Robert Fox. Rent expense under this lease was $179 and $658 for the three and nine months ended September 30, 2016 , respectively, and $179 and $536 for the three and nine months ended September 29, 2017 , respectively. The lease was amended effective April 2016 to extend the term through June 30, 2020 , with monthly rental payments of $60 , which are adjusted annually for a cost-of-living increase based upon the consumer price index.

Description of Business, Basi20

Description of Business, Basis of Presentation and Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 29, 2017
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation - The accompanying condensed consolidated financial statements are unaudited. These unaudited interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted (“GAAP”) in the United States of America ("U.S.") and applicable rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. The year-end condensed balance sheet data was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the U.S. Certain information and footnote disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. Accordingly, these interim condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements for the fiscal year ended December 30, 2016 included in the Company’s Annual Report on Form 10-K as filed with the SEC. In management’s opinion, the unaudited interim condensed consolidated financial statements reflect all adjustments, which are of a normal and recurring nature, that are necessary for a fair presentation of financial results for the interim periods presented. Operating results for any quarter are not necessarily indicative of the results expected for the full fiscal year.
Principles of Consolidation	Principles of Consolidation - These condensed consolidated financial statements include the Company and its wholly owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation.
Use of Estimates	Use of Estimates - The preparation of the Company’s condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. These estimates are based on information available as of the date of the financial statements; therefore, actual results could differ from management’s estimates.
Certain Significant Risks and Uncertainties	Certain Significant Risks and Uncertainties - The Company is subject to those risks common in manufacturing-driven markets, including, but not limited to, competitive forces, dependence on key personnel, customer demand for its products, the successful protection of its proprietary technologies, compliance with government regulations, and the possibility of not being able to obtain additional financing when needed.
Fair Value Measurements	Fair Value Measurements - The Company uses the fair value hierarchy established in ASC Topic 820, Fair Value Measurements and Disclosures, which requires the valuation of assets and liabilities subject to fair value measurements using a three tiered approach and fair value measurement be classified and disclosed by the Company in one of the following three categories: Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; Level 2: Quoted prices for similar assets and liabilities in active markets, quoted prices for identical assets and liabilities in markets that are not active, or inputs which are observable, either directly or indirectly, for substantially the full term of the asset or liability; and Level 3: Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e. supported by little or no market activity). The carrying amount of the Company's financial instruments, including cash, receivables, accounts payable, and accrued liabilities approximate their fair values due to their short-term nature.
Recent Accounting Pronouncements	Recent Accounting Pronouncements - In May 2014, the FASB and International Accounting Standards Board issued their converged standard on revenue recognition, Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers, updated in December 2016 with the release of ASU 2016-20. This standard outlines a single comprehensive model for companies to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. The core principle of the revenue model is that an entity recognizes revenue to depict the transfer of promised goods and services in an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods and services. In addition, the new standard requires that reporting companies disclose the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. This standard will be effective for fiscal years, and interim periods within those years, beginning the first quarter of fiscal year 2018. The Company can choose to apply this standard retrospectively for each prior reporting period presented or retrospectively with the cumulative effect of initially applying the standard recognized at the date of the initial application in retained earnings. The Company has not yet selected a transition method. We have established a cross-functional team to implement the guidance related to the recognition of revenue from contracts with customers. We are in the process of assessing our customer contracts, identifying contractual provisions that may result in a change in the timing or the amount of revenue recognized in comparison with current guidance, as well as assessing the enhanced disclosure requirements of the new guidance. Under the proposed requirements, the customized nature of some of our products combined with contractual provisions that provide us with an enforceable right to payment, may require us to recognize revenue prior to the product being shipped to the customer. We are also assessing pricing provisions contained in certain of our customer contracts which may represent variable consideration or may provide the customer with a material right, potentially resulting in a different allocation of the transaction price than under current guidance. In addition, we are evaluating how the new guidance may impact our accounting for contractually guaranteed reimbursements related to customer tooling, engineering services and pre-production costs. Under the current applicable guidance, these customer reimbursements are recorded as cost recovery offsets; whereas under the new standard these guaranteed recoveries may represent consideration from contracts with customers and be recorded as revenues. We continue to evaluate the impact this guidance will have on our financial statements. In July 2015, the FASB issued ASU 2015-11, Simplifying the Measurement of Inventory. The guidance applies to inventory that is measured using first-in, first-out (“FIFO”) or average cost. Under the guidance, an entity should measure inventory that is within scope at the lower of cost and net realizable value, which is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. The Company adopted ASU 2015-11 at the beginning of fiscal year 2017. The adoption of ASU 2015-11 did not have a material impact on the Company's consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases, which will supersede the existing guidance for lease accounting. This ASU will require lessees to recognize leases with durations greater than twelve months on the balance sheet. This guidance is effective for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years, and early adoption is permitted. The Company is currently assessing the impact this guidance will have on its consolidated financial statements. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments, which clarifies the presentation of certain transactions, including, but not limited to, contingent consideration payments made after a business combination and debt prepayment and extinguishment costs in the cash flow statement. This standard will be effective for fiscal years, and interim periods within those years, beginning the first quarter of fiscal year 2019. Early adoption is permitted. The Company is currently assessing the impact this guidance will have on its consolidated statement of cash flows. In October 2016, the FASB issued ASU 2016-16, Income Taxes: Intra Entity Transfer of Assets Other Than Inventory, which improves the accounting for the income tax consequences of intra entity transfers of assets other than inventory. This standard will be effective for fiscal years, and interim periods within those years, beginning the first quarter of fiscal year 2018. The Company is currently assessing the impact this guidance will have on its consolidated financial statements. In January 2017, the FASB issued ASU 2017-01, Business Combinations: Clarifying the Definition of a Business, which provides more guidance to an entity when they are assessing if transactions should be accounted for as acquisitions of assets or businesses. The clarification of the definition of a business impacts various areas of accounting such as acquisitions, disposals, goodwill, and consolidations. This standard will be effective for fiscal years, and interim periods within those years, beginning the first quarter of fiscal year 2018. The Company is currently assessing the impact this guidance will have on its consolidated financial statements. In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment, which removes the second step of the goodwill impairment test that would currently require the assessment of fair value of individual assets and liabilities of a reporting unit to measure goodwill impairments. Under ASU 2017-04, goodwill impairment will be the amount by which a reporting unit's carrying value exceeds its fair value. The Company adopted ASU 2017-04 effective for goodwill impairment tests performed on testing dates after January 1, 2017. The adoption of ASU 2017-14 did not have a material impact on the Company's consolidated financial statements.
Reclassifications	Reclassifications - Certain non-vendor liabilities have been reclassified from accounts payable to accrued expenses in the December 30, 2016 condensed consolidated balance sheet and the condensed consolidated statement of cash flows for the nine months ended September 30, 2016 in order to more accurately reflect the nature of the liability on a basis consistent with the financial statements as of and for the period ended September 29, 2017 .

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	9 Months Ended
	Sep. 29, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs	The following table summarizes the allocation of stock-based compensation in the accompanying consolidated statements of income: For the three months ended For the nine months ended September 29, 2017 September 30, 2016 September 29, 2017 September 30, 2016 Cost of sales $ 99 $ 31 $ 278 $ 105 Sales and marketing 151 144 420 446 Research and development 127 84 305 266 General and administrative 1,934 1,270 5,597 3,804 Total $ 2,311 $ 1,529 $ 6,600 $ 4,621
Schedule of Nonvested Restricted Stock Units Activity	The following table summarizes the activity for the Company's unvested restricted stock units ("RSU") for the nine months ended September 29, 2017 . Unvested RSUs Number of shares outstanding Weighted-average grant date fair value Unvested at December 30, 2016 811 $ 16.53 Granted 404 $ 31.26 Forfeited (47 ) $ 16.13 Vested (362 ) $ 16.90 Unvested at September 29, 2017 806 $ 23.76

Inventory (Tables)

Inventory (Tables)	9 Months Ended
	Sep. 29, 2017
Inventory Disclosure [Abstract]
Inventory	Inventory consisted of the following: September 29, 2017 2016 Raw materials $ 57,815 $ 46,679 Work-in-process 3,554 1,929 Finished goods 30,593 22,635 Total inventory $ 91,962 $ 71,243

Property, Plant and Equipment23

Property, Plant and Equipment, net (Tables)	9 Months Ended
	Sep. 29, 2017
Property, Plant and Equipment [Abstract]
Property, Plant and Equipment	Property, plant and equipment consisted of the following: September 29, 2017 2016 Machinery and manufacturing equipment $ 31,792 $ 28,752 Information systems, office equipment and furniture 5,889 7,449 Internal use computer software 8,224 5,337 Transportation equipment 3,050 2,531 Building and land 5,795 4,358 Leasehold improvements 8,391 8,083 Total 63,141 56,510 Less: accumulated depreciation and amortization (25,626 ) (24,248 ) Property, plant and equipment, net $ 37,515 $ 32,262

Accrued Expenses (Tables)

Accrued Expenses (Tables)	9 Months Ended
	Sep. 29, 2017
Payables and Accruals [Abstract]
Accrued Expenses	Accrued expenses consisted of the following: September 29, 2017 2016 Payroll and related expenses $ 10,861 $ 10,717 Management earn-out — 6,421 Warranty 5,133 4,593 Income tax payable 6,276 4,490 Other accrued expenses 5,036 8,214 Total $ 27,306 $ 34,435
Activity Related to Warranties	Activity related to warranties is as follows: For the three months ended For the nine months ended September 29, 2017 September 30, 2016 September 29, 2017 September 30, 2016 Beginning warranty liability $ 5,077 $ 4,198 $ 4,593 $ 3,914 Charge to cost of sales 992 1,155 4,045 3,349 Costs incurred (936 ) (1,051 ) (3,505 ) (2,961 ) Ending warranty liability $ 5,133 $ 4,302 $ 5,133 $ 4,302

Debt (Tables)

Debt (Tables)	9 Months Ended
	Sep. 29, 2017
Debt Disclosure [Abstract]
Summary of Amended & Restated 2013 Credit Facility	The following table summarizes the line of credit under the Second Amended and Restated Credit Facility: September 29, December 30, 2017 2016 Amount outstanding $ — $ — Available borrowing capacity $ 100,000 $ 100,000 Maximum borrowing capacity $ 100,000 $ 100,000 Maturity date May 11, 2021
Schedule of Future Principal Payments	As of September 29, 2017 , future principal payments for long-term debt, including the current portion, are summarized as follows: For fiscal year: 2017 (remaining three months) $ 938 2018 5,156 2019 5,625 2020 7,031 2021 45,625 Total 64,375 Debt issuance cost (411 ) Long-term debt, net of issuance cost 63,964 Less: current portion (4,567 ) Long-term debt less current portion $ 59,397

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Sep. 29, 2017
Fair Value Disclosures [Abstract]
Liabilities Measured at Fair Value on Recurring Basis	The following table presents the Company's hierarchy for its assets and liabilities measured at fair value on a recurring basis as of the following periods: September 29, 2017 December 30, 2016 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Liabilities: Credit facility $ — $ 63,964 $ — $ 63,964 $ — $ 66,683 $ — $ 66,683 Contingent consideration — — — — — — 5,532 5,532 Total liabilities measured at fair value $ — $ 63,964 $ — $ 63,964 $ — $ 66,683 $ 5,532 $ 72,215
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation	The following table provides a reconciliation of the beginning and ending balances for the Company's contingent consideration liability measured at fair value using Level 3 inputs: Contingent consideration liability (level 3 measurement) Balance at December 30, 2016 $ 5,532 Change in fair value (150 ) Payment of contingent consideration liability (5,382 ) Balance at September 29, 2017 $ —

Income Taxes (Tables)

Income Taxes (Tables)	9 Months Ended
	Sep. 29, 2017
Income Tax Disclosure [Abstract]
Schedule of Components of Provision for Income Taxes	For the three months ended For the nine months ended September 29, 2017 September 30, 2016 September 29, 2017 September 30, 2016 Provision for income taxes $ 3,885 $ 1,354 $ 8,677 $ 4,315 Effective tax rates 19.5 % 9.0 % 17.7 % 14.3 %

Earnings Per Share (Tables)

Earnings Per Share (Tables)	9 Months Ended
	Sep. 29, 2017
Earnings Per Share [Abstract]
Calculation of Basic and Diluted Earnings Per Share	The following table presents the calculation of basic and diluted earnings per share: For the three months ended For the nine months ended September 29, 2017 September 30, 2016 September 29, 2017 September 30, 2016 Net income $ 16,072 $ 13,684 $ 40,326 $ 25,862 Weighted average shares used to compute basic earnings per share 37,474 36,777 37,312 36,774 Dilutive effect of employee stock plans 1,343 1,009 1,388 973 Weighted average shares used to compute diluted earnings per share 38,817 37,786 38,700 37,747 Earnings per share: Basic $ 0.43 $ 0.37 $ 1.08 $ 0.70 Diluted $ 0.41 $ 0.36 $ 1.04 $ 0.69

Segments (Tables)

Segments (Tables)	9 Months Ended
	Sep. 29, 2017
Segment Reporting [Abstract]
Summary of Total Sales by Geographic Location of Customer	The following table summarizes total sales generated by geographic location of the customer: For the three months ended For the nine months ended September 29, 2017 September 30, 2016 September 29, 2017 September 30, 2016 North America $ 75,170 $ 59,389 $ 212,157 $ 158,616 Asia 27,081 26,752 77,177 72,682 Europe 22,812 21,996 59,554 57,715 Rest of the world 2,336 874 5,652 2,509 Total sales $ 127,399 $ 109,011 $ 354,540 $ 291,522
Revenue from External Customers by Products and Services	The following table summarizes total sales by product category: For the three months ended For the nine months ended September 29, 2017 September 30, 2016 September 29, 2017 September 30, 2016 Bike products $ 66,831 $ 61,372 $ 183,878 $ 169,499 Power vehicle products 60,568 47,639 170,662 122,023 Total sales $ 127,399 $ 109,011 $ 354,540 $ 291,522
Long-lived Assets by Geographic Location	The Company’s long-lived assets by geographic location are as follows: September 29, December 30, 2017 2016 United States $ 33,007 $ 29,344 International 4,508 2,918 Total long-lived assets $ 37,515 $ 32,262

Stockholders' Equity - Share Re

Stockholders' Equity - Share Repurchase Program and Secondary Stock Offerings (Details) - USD ($) $ / shares in Units, shares in Thousands	1 Months Ended				3 Months Ended	9 Months Ended		14 Months Ended
	Mar. 31, 2017	Nov. 30, 2016	Aug. 31, 2016	Mar. 31, 2016	Sep. 30, 2016	Sep. 29, 2017	Sep. 30, 2016	Dec. 31, 2015	Feb. 28, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Share repurchase program, authorized amount									$ 40,000,000
Class of Stock [Line Items]
Shares issued during period	5,574	4,025	4,025
Share price (in dollars per share)	$ 26.65	$ 20.51	$ 18
Shares repurchased during period (in shares)						500		890
Shares repurchased during period, amount						$ 7,947,000		$ 13,754,000
Offering expenses					$ 179,000	113,000	$ 428,000
Remaining authorized amount available for repurchase						$ 32,052,000
Over-Allotment Option
Class of Stock [Line Items]
Shares issued during period	466	525	525
Compass
Class of Stock [Line Items]
Shares issued during period				2,500
Share price (in dollars per share)				$ 15.895

Stockholders' Equity - Allocati

Stockholders' Equity - Allocation of Stock-based Compensation (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 29, 2017	Sep. 30, 2016	Sep. 29, 2017	Sep. 30, 2016
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Allocated share-based compensation expense	$ 2,311	$ 1,529	$ 6,600	$ 4,621
Cost of sales
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Allocated share-based compensation expense	99	31	278	105
Sales and marketing
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Allocated share-based compensation expense	151	144	420	446
Research and development
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Allocated share-based compensation expense	127	84	305	266
General and administrative
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Allocated share-based compensation expense	$ 1,934	$ 1,270	$ 5,597	$ 3,804

Stockholders' Equity - Unvested

Stockholders' Equity - Unvested RSU Activity (Details) - RSUs shares in Thousands	9 Months Ended
	Sep. 29, 2017$ / sharesshares
Number of shares outstanding
Unvested at beginning of period (in shares) | shares	811
Granted (in shares) | shares	404
Forfeited (in shares) | shares	(47)
Vested (in shares) | shares	(362)
Unvested at end of period (in shares) | shares	806
Weighted-average grant date fair value
Unvested at beginning of period (in dollars per share) | $ / shares	$ 16.53
Granted (in dollars per share) | $ / shares	31.26
Forfeited (in dollars per share) | $ / shares	16.13
Vested (in dollars per share) | $ / shares	16.90
Unvested at end of period (in dollars per share) | $ / shares	$ 23.76

Stockholders' Equity - Equity I

Stockholders' Equity - Equity Incentive Plans, Additional Information (Details) shares in Thousands, $ in Thousands	9 Months Ended
	Sep. 29, 2017USD ($)shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock issued due to exercise of stock options	407
Proceeds from exercise of stock options | $	$ 2,260
Options to purchase that expired (in shares)	9
Options forfeited in period (in shares)	14
RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized stock-based compensation expense | $	$ 15,292
Period for recognition of unrecognized stock-based compensation expense	2 years 8 months 23 days

Inventory (Details)

Inventory (Details) - USD ($) $ in Thousands	Sep. 29, 2017	Dec. 30, 2016
Inventory Disclosure [Abstract]
Raw materials	$ 57,815	$ 46,679
Work-in-process	3,554	1,929
Finished goods	30,593	22,635
Total inventory	$ 91,962	$ 71,243

Property, Plant and Equipment35

Property, Plant and Equipment, net (Details) - USD ($) $ in Thousands	Sep. 29, 2017	Dec. 30, 2016
Property, Plant and Equipment [Line Items]
Property, plant and equipment gross	$ 63,141	$ 56,510
Less: accumulated depreciation and amortization	(25,626)	(24,248)
Property, plant and equipment, net	37,515	32,262
Machinery and manufacturing equipment
Property, Plant and Equipment [Line Items]
Property, plant and equipment gross	31,792	28,752
Information systems, office equipment and furniture
Property, Plant and Equipment [Line Items]
Property, plant and equipment gross	5,889	7,449
Internal use computer software
Property, Plant and Equipment [Line Items]
Property, plant and equipment gross	8,224	5,337
Transportation equipment
Property, Plant and Equipment [Line Items]
Property, plant and equipment gross	3,050	2,531
Building and land
Property, Plant and Equipment [Line Items]
Property, plant and equipment gross	5,795	4,358
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property, plant and equipment gross	$ 8,391	$ 8,083

Accrued Expenses - Composition

Accrued Expenses - Composition of Accrued Expenses (Details) - USD ($) $ in Thousands	Sep. 29, 2017	Jun. 30, 2017	Dec. 30, 2016	Sep. 30, 2016	Jul. 01, 2016	Dec. 31, 2015
Payables and Accruals [Abstract]
Payroll and related expenses	$ 10,861		$ 10,717
Management earn-out	0		6,421
Warranty	5,133	$ 5,077	4,593	$ 4,302	$ 4,198	$ 3,914
Income tax payable	6,276		4,490
Other accrued expenses	5,036		8,214
Total	$ 27,306		$ 34,435

Accrued Expenses - Activity Rel

Accrued Expenses - Activity Related to Warranties (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 29, 2017	Sep. 30, 2016	Sep. 29, 2017	Sep. 30, 2016
Movement in Standard Product Warranty Accrual [Roll Forward]
Beginning warranty liability	$ 5,077	$ 4,198	$ 4,593	$ 3,914
Charge to cost of sales	992	1,155	4,045	3,349
Costs incurred	(936)	(1,051)	(3,505)	(2,961)
Ending warranty liability	$ 5,133	$ 4,302	$ 5,133	$ 4,302

Debt - Additional Information (

Debt - Additional Information (Details) - Amended and Restated 2013 Credit Facility - USD ($)	9 Months Ended
	Sep. 29, 2017	Aug. 31, 2013
Debt Instrument [Line Items]
Weighted average interest rate	2.83%
London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
LIBOR rate	1.24%
London Interbank Offered Rate (LIBOR) | Minimum
Debt Instrument [Line Items]
Basis spread on variable rate	1.50%
London Interbank Offered Rate (LIBOR) | Maximum
Debt Instrument [Line Items]
Basis spread on variable rate	2.50%
Prime Rate
Debt Instrument [Line Items]
Prime interest rate	4.25%
Prime Rate | Minimum
Debt Instrument [Line Items]
Basis spread on variable rate	0.50%
Prime Rate | Maximum
Debt Instrument [Line Items]
Basis spread on variable rate	1.50%
Term Loan
Debt Instrument [Line Items]
Term loan amount		$ 75,000,000

Debt - Summary of Amended & Res

Debt - Summary of Amended & Restated 2013 Credit Facility (Details) - USD ($)	Sep. 29, 2017	Dec. 30, 2016
Debt Disclosure [Abstract]
Amount outstanding	$ 0	$ 0
Available borrowing capacity	100,000,000	100,000,000
Maximum borrowing capacity	$ 100,000,000	$ 100,000,000

Debt - Future Payments for Long

Debt - Future Payments for Long-term Debt (Details) - USD ($) $ in Thousands	Sep. 29, 2017	Dec. 30, 2016
Debt Disclosure [Abstract]
2017 (remaining three months)	$ 938
2,018	5,156
2,019	5,625
2,020	7,031
2,021	45,625
Total	64,375
Debt issuance cost	(411)
Long-term debt, net of issuance cost	63,964
Less: current portion	(4,567)	$ (3,625)
Long-term debt less current portion	$ 59,397	$ 63,058

Commitments and Contingencies (

Commitments and Contingencies (Details) CAD in Thousands, $ in Thousands	Jan. 29, 2016patent	Sep. 29, 2017USD ($)patent_reviewbusiness_acquired	Sep. 29, 2017CADpatent_reviewbusiness_acquired	Sep. 30, 2016USD ($)
Loss Contingencies [Line Items]
Payment of contingent consideration liability | $		$ 5,382		$ 6,889
Acquisition related compensation		$ 7,898	CAD 10,500
Number of business combinations | business_acquired		2	2
Action Against SRAM Corporation
Loss Contingencies [Line Items]
Number of patent reviews | patent_review		3	3
Number of patents allegedly infringed upon | patent	2

Fair Value Measurements - Liabi

Fair Value Measurements - Liabilities at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands	Sep. 29, 2017	Dec. 30, 2016
Liabilities:
Total liabilities measured at fair value	$ 63,964	$ 72,215
Level 1
Liabilities:
Total liabilities measured at fair value	0	0
Level 2
Liabilities:
Total liabilities measured at fair value	63,964	66,683
Level 3
Liabilities:
Total liabilities measured at fair value	0	5,532
Recurring
Liabilities:
Credit facility	63,964	66,683
Contingent consideration	0	5,532
Recurring | Level 1
Liabilities:
Credit facility	0	0
Contingent consideration	0	0
Recurring | Level 2
Liabilities:
Credit facility	63,964	66,683
Contingent consideration	0	0
Recurring | Level 3
Liabilities:
Credit facility	0	0
Contingent consideration	$ 0	$ 5,532

Fair Value Measurements - Recon

Fair Value Measurements - Reconciliation of Contingent Consideration (Details) $ in Thousands	9 Months Ended
	Sep. 29, 2017USD ($)
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance at December 30, 2016	$ 5,532
Change in fair value	(150)
Payment of contingent consideration liability	(5,382)
Balance at September 29, 2017	$ 0

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 29, 2017	Sep. 30, 2016	Sep. 29, 2017	Sep. 30, 2016
Income Tax Disclosure [Abstract]
Provision for income taxes	$ 3,885	$ 1,354	$ 8,677	$ 4,315
Effective tax rates	19.50%	9.00%	17.70%	14.30%
Federal statutory rate (as a percent)	35.00%	35.00%	35.00%	35.00%
State
Income Tax Contingency [Line Items]
State tax credit, net of federal taxes		$ 488		$ 488
Stock Options
Income Tax Contingency [Line Items]
Benefit of excess deductions on stock-based compensation			$ 1,190
RSUs
Income Tax Contingency [Line Items]
Benefit of excess deductions on stock-based compensation			$ 5,212

Earnings Per Share - Calculatio

Earnings Per Share - Calculation of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 29, 2017	Sep. 30, 2016	Sep. 29, 2017	Sep. 30, 2016
Earnings Per Share [Abstract]
Net income	$ 16,072	$ 13,684	$ 40,326	$ 25,862
Weighted average shares used to compute basic earnings per share (in shares)	37,474	36,777	37,312	36,774
Dilutive effect of employee stock plans (in shares)	1,343	1,009	1,388	973
Weighted average shares used to compute diluted earnings per share (in shares)	38,817	37,786	38,700	37,747
Basic (in dollars per share)	$ 0.43	$ 0.37	$ 1.08	$ 0.70
Diluted (in dollars per share)	$ 0.41	$ 0.36	$ 1.04	$ 0.69

Earnings Per Share - Additional

Earnings Per Share - Additional Information (Details) - shares	3 Months Ended		9 Months Ended
	Sep. 29, 2017	Sep. 30, 2016	Sep. 29, 2017	Sep. 30, 2016
Earnings Per Share [Abstract]
Anti-dilutive shares excluded from calculation of diluted earnings per share	0	0	0	0

Segments - Summary of Total Sal

Segments - Summary of Total Sales by Geographic Location of Customer (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 29, 2017USD ($)	Sep. 30, 2016USD ($)	Sep. 29, 2017USD ($)segment	Sep. 30, 2016USD ($)
Segment Reporting [Abstract]
Number of operating segments | segment			1
Number of reportable segments | segment			1
Segment Reporting Information [Line Items]
Sales	$ 127,399	$ 109,011	$ 354,540	$ 291,522
North America
Segment Reporting Information [Line Items]
Sales	75,170	59,389	212,157	158,616
Asia
Segment Reporting Information [Line Items]
Sales	27,081	26,752	77,177	72,682
Europe
Segment Reporting Information [Line Items]
Sales	22,812	21,996	59,554	57,715
Rest of the world
Segment Reporting Information [Line Items]
Sales	$ 2,336	$ 874	$ 5,652	$ 2,509

Segments - Sales by Product Typ

Segments - Sales by Product Type (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 29, 2017	Sep. 30, 2016	Sep. 29, 2017	Sep. 30, 2016
Segment Reporting Information [Line Items]
Sales	$ 127,399	$ 109,011	$ 354,540	$ 291,522
Bikes
Segment Reporting Information [Line Items]
Sales	66,831	61,372	183,878	169,499
Power vehicles
Segment Reporting Information [Line Items]
Sales	$ 60,568	$ 47,639	$ 170,662	$ 122,023

Segments - Long-lived Assets by

Segments - Long-lived Assets by Geographic Location (Details) - USD ($) $ in Thousands	Sep. 29, 2017	Dec. 30, 2016
Segment Reporting Information [Line Items]
Long-lived assets	$ 37,515	$ 32,262
North America
Segment Reporting Information [Line Items]
Long-lived assets	33,007	29,344
International
Segment Reporting Information [Line Items]
Long-lived assets	$ 4,508	$ 2,918

Related Party Agreements (Detai

Related Party Agreements (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 29, 2017	Sep. 30, 2016	Sep. 29, 2017	Sep. 30, 2016	Dec. 31, 2015
Compass Group Diversified Holdings, LLC
Related Party Transaction [Line Items]
Annual fees for services				$ 72	$ 135
Founder and Minority Stockholder | Related Party Transactions
Related Party Transaction [Line Items]
Payments made under lease	$ 179	$ 179	$ 536	$ 658
Monthly rental payments			$ 60