YETI (YETI) 10-Q 6 Dec 18 2018 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 29, 2018	Dec. 06, 2018
Document and Entity Information [Abstract]
Entity Registrant Name	YETI Holdings, Inc.
Entity Central Index Key	1,670,592
Document Type	10-Q
Document Period End Date	Sep. 29, 2018
Amendment Flag	false
Current Fiscal Year End Date	--12-29
Entity Current Reporting Status	No
Entity Filer Category	Non-accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Common Stock, Shares Outstanding		84,196,079
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q3

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 29, 2018	Dec. 30, 2017
Current assets
Cash	$ 52,100	$ 53,650
Accounts receivable, net	61,915	67,152
Inventory	157,669	175,098
Prepaid expenses and other current assets	12,957	7,134
Total current assets	284,641	303,034
Property and equipment, net	72,405	73,783
Goodwill	54,293	54,293
Intangible assets, net	81,113	74,302
Deferred income taxes	9,088	10,004
Deferred charges and other assets	1,052	1,011
Total assets	502,592	516,427
Current liabilities
Accounts payable	76,851	40,342
Accrued expenses and other current liabilities	44,674	45,862
Taxes payable	6,185	12,280
Accrued payroll and related costs	11,201	6,364
Current maturities of long-term debt	47,050	47,050
Total current liabilities	185,961	151,898
Long-term debt, net of current portion	340,743	428,632
Other liabilities	13,047	12,128
Total liabilities	539,751	592,658
Commitments and contingencies
Equity
Common stock, par value $0.01; 400,000 shares authorized; 81,147 and 81,535 shares outstanding at September 29, 2018 and December 30, 2017, respectively	811	815
Additional paid-in capital	227,159	219,095
Accumulated deficit	(265,113)	(296,184)
Accumulated other comprehensive (loss) income	(16)	43
Total stockholders’ deficit	(37,159)	(76,231)
Total liabilities and stockholders’ equity	$ 502,592	$ 516,427

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Thousands	Sep. 29, 2018	Dec. 30, 2017
Condensed Consolidated Balance Sheets
Common stock, par value	$ 0.01	$ 0.01
Common stock, authorized	400,000	400,000
Common stock, outstanding	81,147	81,535

Condensed Consolidated Income S

Condensed Consolidated Income Statements - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 29, 2018	Sep. 30, 2017	Sep. 29, 2018	Sep. 30, 2017
Condensed Consolidated Income Statements
Net sales	$ 196,109	$ 183,032	$ 537,654	$ 437,140
Type of Revenue	us-gaap:ProductMember	us-gaap:ProductMember	us-gaap:ProductMember	us-gaap:ProductMember
Cost of goods sold	$ 98,568	$ 100,840	$ 282,354	$ 235,662
Gross profit	97,541	82,192	255,300	201,478
Selling, general, and administrative expenses	69,417	57,473	190,746	161,381
Operating income	28,124	24,719	64,554	40,097
Interest expense	(7,755)	(8,351)	(24,474)	(23,961)
Other (expense) income	(214)	111	(325)	1,261
Income before income taxes	20,155	16,479	39,755	17,397
Income tax expense	(3,125)	(5,208)	(7,161)	(5,970)
Net income	$ 17,030	$ 11,271	$ 32,594	$ 11,427
Net income per share
Basic	$ 0.21	$ 0.14	$ 0.40	$ 0.14
Diluted	$ 0.21	$ 0.14	$ 0.39	$ 0.14
Weighted average common shares outstanding
Basic	81,147	81,479	81,238	81,460
Diluted	82,924	82,988	82,946	83,015

Condensed Consolidated Statemen

Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 29, 2018	Sep. 30, 2017	Sep. 29, 2018	Sep. 30, 2017
Condensed Consolidated Statements of Comprehensive Income
Net income	$ 17,030	$ 11,271	$ 32,594	$ 11,427
Other comprehensive (loss) income
Foreign currency translation adjustments	(2)	34	(59)	51
Total comprehensive income	$ 17,028	$ 11,305	$ 32,535	$ 11,478

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Deficit - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 29, 2018	Sep. 30, 2017	Sep. 29, 2018	Sep. 30, 2017
Increase (decrease) in stockholders equity
Balance at beginning of the period			$ (76,231)	$ (95,101)
Balance at beginning of the period (shares)			81,535
Stock-based compensation			$ 10,031	9,186
Exercise of options			53	99
Taxes paid in connection with exercise of stock options			(57)	(2,018)
Adjustments related to the acquisition of Rambler On				(5,832)
Repurchase of Company stock			(1,967)
Dividends			(1,523)	(1,572)
Other comprehensive income (loss)			(59)	51
Net income	$ 17,030	$ 11,271	32,594	11,427
Balance at end of the period	$ (37,159)	(83,760)	$ (37,159)	(83,760)
Balance at end of the period (shares)	81,147		81,147
Common Stock
Increase (decrease) in stockholders equity
Balance at beginning of the period			$ 815	$ 814
Balance at beginning of the period (shares)			81,535	81,437
Exercise of options				$ 1
Exercise of options (shares)			11	156
Taxes paid in connection with exercise of stock options (shares)			(2)	(58)
Repurchase of Company stock			$ (4)
Repurchase of Company stock (shares)			(397)
Balance at end of the period	$ 811	$ 815	$ 811	$ 815
Balance at end of the period (shares)	81,147	81,535	81,147	81,535
Additional Paid-In Capital
Increase (decrease) in stockholders equity
Balance at beginning of the period			$ 219,095	$ 211,474
Stock-based compensation			10,031	9,186
Exercise of options			53	98
Taxes paid in connection with exercise of stock options			(57)	(2,018)
Adjustments related to the acquisition of Rambler On				(3,852)
Repurchase of Company stock			(1,963)
Balance at end of the period	$ 227,159	$ 214,888	227,159	214,888
Accumulated Deficit
Increase (decrease) in stockholders equity
Balance at beginning of the period			(296,184)	(309,575)
Adjustments related to the acquisition of Rambler On				(1,980)
Acquisition of noncontrolling interest				2,186
Dividends			(1,523)	(1,572)
Net income			32,594	11,427
Balance at end of the period	(265,113)	(299,514)	(265,113)	(299,514)
Accumulated Other Comprehensive Income (Loss)
Increase (decrease) in stockholders equity
Balance at beginning of the period			43
Other comprehensive income (loss)			(59)	51
Balance at end of the period	$ (16)	$ 51	$ (16)	51
Noncontrolling Interest
Increase (decrease) in stockholders equity
Balance at beginning of the period				2,186
Acquisition of noncontrolling interest				$ (2,186)

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 29, 2018	Sep. 30, 2017
Cash Flows from Operating Activities:
Net income	$ 32,594	$ 11,427
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation and amortization	18,218	15,171
Amortization of deferred loan costs	2,774	1,661
Stock-based compensation	10,031	9,186
Deferred income taxes	916	13,410
Impairment of long-lived assets	598
Gain on disposal of long-lived assets	(20)
Changes in operating assets and liabilities:
Accounts receivable, net	5,197	(29,676)
Inventory	17,373	18,950
Income tax receivable		(257)
Other current assets	(3,104)	14,436
Accounts payable and accrued expenses	39,261	13,234
Taxes payable	(6,099)	(6,907)
Other	1,095	10,484
Net cash provided by operating activities	118,834	71,119
Cash Flows from Investing Activities:
Additions to property and equipment	(13,339)	(40,470)
(Additions) reductions to intangible assets, net	(10,752)	4,968
Changes in notes receivables		596
Cash paid to Rambler On for acquisition		(2,000)
Proceeds from sale of long-lived assets	165
Net cash used in investing activities	(23,926)	(36,906)
Cash Flows from Financing Activities:
Changes in revolving line of credit		20,000
Repayments of long-term debt	(90,663)	(34,163)
Payments of deferred financing fees		(1,957)
Cash paid for repurchase of common stock	(1,967)
Proceeds from employee stock transactions	53	99
Taxes paid in connection with exercise of stock options	(57)	(2,018)
Dividends	(2,523)	(2,812)
Payments of offering costs	(1,315)
Net cash used in financing activities	(96,472)	(20,851)
Effect of exchange rate changes on cash	14	83
Net change in cash	(1,550)	13,445
Cash, beginning of period	53,650	21,291
Cash, end of period	$ 52,100	$ 34,736

Organization and Significant Ac

Organization and Significant Accounting Policies	9 Months Ended
	Sep. 29, 2018
Organization and Significant Accounting Policies
Organization and Significant Accounting Policies	Note 1—Organization and Significant Accounting Policies Organization and Business YETI Holdings, Inc. acquired the operations of YETI Coolers, LLC (“YETI Coolers”) on June 15, 2012. We are headquartered in Austin, Texas, and are a designer, marketer, and distributor of premium products for the outdoor and recreation market which are sold under the YETI ® brand. We sell our products to independent retailers and national accounts across a wide variety of end user markets as well as through our direct‑to‑consumer channel (“DTC”), primarily our e‑commerce presence. In addition to YETI Coolers, YETI Australia Pty Ltd, YETI Canada Limited, YETI Hong Kong Limited, and YETI Outdoor Products Company Limited were established and consolidated as wholly‑owned foreign entities in January 2017, February 2017, March 2017, and June 2017, respectively. Furthermore, YETI’s exclusive customization partner, Rambler On was previously consolidated as a VIE since August 2016, and on May 15, 2017, YETI Custom Drinkware, LLC (“YCD”) acquired the assets and liabilities of Rambler On. We consolidate YCD as a wholly‑owned subsidiary. The terms “we,” “us,” “our,” and “the Company” as used herein and unless otherwise stated or indicated by context, refer to YETI Holdings, Inc. and its subsidiaries. Initial Public Offering On October 24, 2018, the Company completed its initial public offering (the "IPO") of 16,000,000 shares of our common stock, including 2,500,000 shares of our common stock sold by the Company and 13,500,000 shares of our common stock sold by selling stockholders. The underwriters were also granted an option to purchase up to an additional 2,400,000 shares from the selling stockholders, at the public offering price, less the underwriting discount, for 30 days after October 24, 2018. The shares were sold at the IPO price of $18.00 per share for net proceeds of $42.4 million to the Company, after deducting underwriting discounts and commissions of $2.6 million. The Company did not receive any proceeds from the sale of shares of common stock by the selling stockholders. Additionally, offering costs incurred by the Company are expected to total approximately $4. 4 million. Basis of Presentation and Principles of Consolidation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and do not include all of the information and notes required for complete financial statements. These financial statements should be read in conjunction with our most recent annual audited consolidated financial statements for the year ended December 30, 2017 included in the prospectus filed pursuant to Rule 424(b) under the Securities Act of 1933 with the United States Securities and Exchange Commission on October 25, 2018 (the “Final Prospectus”). In the opinion of management, the accompanying unaudited condensed consolidated financial statements contain all normal and recurring adjustments necessary to fairly present the consolidated financial position, results of operations and cash flows for the interim periods presented. Operating results for the three and nine months ended September 29, 2018 are not necessarily indicative of results that may be expected for any other interim period or for the year ending December 29, 2018. The unaudited consolidated financial statements include our accounts and those of our wholly owned subsidiaries. Intercompany balances and transactions have been eliminated in consolidation. We operate on a “52‑53 week” fiscal year ending on the Saturday closest in proximity to December 31, such that each quarterly period will be 13 weeks in length, except during a 53‑week year when the fourth quarter will be 14 weeks. The unaudited consolidated financial results represent the three and nine months ended September 29, 2018 and September 30, 2017. Stock Split On October 12, 2018, the Company effected a 0.397-for-1 reverse stock split of all outstanding shares of the Company’s common stock. All share and per share information presented in the condensed consolidated financial statements and accompanying footnotes has been retroactively adjusted for all periods presented for the effects of the stock split. Fair Value of Financial Instruments For financial assets and liabilities recorded at fair value on a recurring or non‑recurring basis, fair value is the price we would receive to sell an asset, or pay to transfer a liability, in an orderly transaction with a market participant at the measurement date. In the absence of such data, fair value is estimated using internal information consistent with what market participants would use in a hypothetical transaction. In determining fair value, observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect our market assumptions; preference is given to observable inputs. These two types of inputs create the following fair value hierarchy: Level 1: Quoted prices for identical instruments in active markets. Level 2: Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model‑derived valuations whose inputs are observable or whose significant value drivers are observable. Level 3: Significant inputs to the valuation model are unobservable. Our financial instruments consist principally of cash, accounts receivable, accounts payable, and bank indebtedness. The carrying amount of cash, accounts receivable, and accounts payable, approximates fair value due to the short‑term maturity of these instruments. The carrying amount of our long‑term bank indebtedness approximates fair value based on Level 2 inputs since the Credit Facility (as defined below) carries a variable interest rate that is based on London Interbank Offered Rate (“LIBOR”). Recently Issued Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014‑09, “ Revenue from Contracts with Customers: (Topic 606) .” The new guidance establishes a single comprehensive model for entities to use in accounting for revenue and supersedes the most current revenue recognition guidance. It introduces a five-step process for revenue recognition that focuses on transfer of control, as opposed to transfer of risk and rewards under current guidance. It also requires significantly expanded disclosures regarding revenues. We have begun a detailed evaluation of the impact of our adoption of ASU 2014-09; however, given the nature of our business, we do not believe there will be a material impact in how or when revenue is recorded and that the impacts will primarily be related to increased disclosures. We do expect the adoption and consequent changes to our procedures and methodologies to require adjustments to our internal controls over financial reporting. As interpretations of the new rules continue to evolve, we will continue to monitor developments and expect to finalize our conclusions in the fourth quarter of 2018. We plan to adopt this standard in the first quarter of 2019. Providing we ultimately conclude that the impacts of adoption are immaterial, we would expect to use the modified retrospective method. Under this method, we would recognize the cumulative effect of the changes in retained earnings at the date of adoption but would not restate prior years. On July 2018, the FASB issued ASU No. 2018‑11, “ Leases—Targeted Improvements .” The standard is effective for interim and annual reporting periods beginning after December 15, 2018. Under ASU 2018‑11, adopters may take a prospective approach, rather than a retrospective approach as initially prescribed, when transitioning to ASU 2016‑02. The most significant impact of ASU 2018‑11 is relief in the comparative reporting requirements for initial adoption. Instead of recording the cumulative impact of all comparative reporting periods presented within opening retained earnings of the earliest period presented, we will now assess the facts and circumstances of all leasing contracts as of December 29, 2019, the beginning of our fiscal 2020. For lessors, ASU 2018‑11 adds an optional practical expedient permitting lessors, under certain circumstances, not to separate the lease and non‑lease components by class of underlying assets, but rather to account for them as a single combined component, and further clarifies the accounting treatment for such a combined component. We are in the process of evaluating the effect the guidance will have on our existing accounting policies and the consolidated financial statements, but we expect there will be an increase in assets and liabilities on the consolidated balance sheets at adoption due to the recording of right‑of‑use assets and corresponding lease liabilities, which may be material.

Share Data

Share Data	9 Months Ended
	Sep. 29, 2018
Share Data
Share Data	Note 2—Share Data The number of common shares outstanding totaled 81.1 million and 81.5 million at September 29, 2018 and December 30, 2017, respectively. Basic income per share is computed by dividing income available to common stockholders by the weighted‑average number of common shares outstanding during the period. Diluted income per share includes the additional effect of all potentially dilutive securities, which includes dilutive share options granted under stock‑based compensation plans. A reconciliation of shares for basic and diluted net income per share is set forth below (in thousands, except per share data): Three Months Ended Nine Months Ended September 29, September 30, September 29, September 30, 2018 2017 2018 2017 Net income $ 17,030 $ 11,271 $ 32,594 $ 11,427 Weighted average common shares outstanding—basic 81,147 81,479 81,238 81,460 Effect of dilutive securities 1,777 1,509 1,708 1,555 Weighted average common shares outstanding—diluted 82,924 82,988 82,946 83,015 Earnings per share Basic $ 0.21 $ 0.14 $ 0.40 $ 0.14 Diluted $ 0.21 $ 0.14 $ 0.39 $ 0.14 Effects of potentially dilutive securities are presented only in periods in which they are dilutive. Stock options representing 0.1 million and 0.2 million shares of common stock were outstanding for both the three and nine months ended September 29, 2018 and September 30, 2017, respectively, but were excluded from the computation of diluted earnings per share as their effect would be anti‑dilutive. On May 17, 2016, our Board of Directors approved a dividend. In connection with the dividend, pursuant to anti‑dilution provisions in the 2012 Equity and Performance Incentive Plan (as amended and restated June 20, 2018), the “2012 Plan”, the option strike price on outstanding options was reduced by the lesser of 70% of the original strike price or the per share amount of the dividend. Any difference between the reduction in strike price and dividend was paid in cash immediately for vested options. For holders of unvested options as of May 17, 2016, we will pay a dividend which accrues over the requisite service period as the options vest. We paid $2.4 million and $2.7 million to vested option holders in the three months ended September 29, 2018 and September 30, 2017, respectively. We paid $2.5 million and $2.8 million to vested option holders in the nine months ended September 29, 2018 and September 30, 2017, respectively. We will pay the remaining $0.6 million of the original $7.9 million to holders of unvested options in fiscal year 2019. At September 29, 2018, $0.1 million was accrued. The payment of future dividends is subject to restrictions under the Credit Facility we entered into in May 2016 with certain lenders and Bank of America, N.A., as administrative agent, as amended, which we refer to as the “Credit Facility.”

Repurchase of Common Stock

Repurchase of Common Stock	9 Months Ended
	Sep. 29, 2018
Repurchase of Common Stock
Repurchase of Common Stock	Note 3—Repurchase of Common Stock On March 5, 2018, we purchased 0.4 million shares of our common stock at $4.95 per share from one of our stockholders. The purchase price was below our current market value and did not trigger the requirements of ASC 505‑30‑20‑2, “ Allocation of Repurchase Price to Other Elements of the Repurchase Transaction .” We accounted for this purchase using the par value method, and subsequently retired these shares.

Property and Equipment

Property and Equipment	9 Months Ended
	Sep. 29, 2018
Property and Equipment
Property and Equipment	Note 4—Property and Equipment Property and equipment consisted of the following (in thousands): September 29, December 30, 2018 2017 Production molds and tooling $ 43,378 $ 41,188 Furniture, fixtures, and equipment 6,571 5,590 Computers and software 36,097 28,774 Leasehold improvements 27,606 26,154 Property and equipment—gross 113,652 101,706 Accumulated depreciation (41,247) (27,923) Property and equipment—net $ 72,405 $ 73,783 For the three months ended September 29, 2018 and September 30, 2017, depreciation expense totaled $5.0 million and $4.6 million, respectively. Depreciation expense totaled $14.3 million and $11.1 million for the nine months ended September 29, 2018 and September 30, 2017, respectively.

Intangible Assets

Intangible Assets	9 Months Ended
	Sep. 29, 2018
Intangible Assets
Intangible Assets	Note 5—Intangible Assets The following is a summary of our intangible assets as of September 29, 2018 (in thousands): Gross Net Carrying Accumulated Carrying Useful Amount Amortization Amount Life Tradename $ 31,363 $ — $ 31,363 Indefinite Customer relationships 42,205 (24,151) 18,054 11 years Trademarks 13,663 (2,360) 11,303 6 - 30 years Trade dress 14,832 — 14,832 Indefinite Patents 5,090 (404) 4,686 4 - 25 years Non-compete agreements 2,815 (2,815) — 5 years Other intangibles 1,021 (146) 875 15 years Total intangible assets $ 110,989 $ (29,876) $ 81,113 The following is a summary of our intangible assets as of December 30, 2017 (in thousands): Gross Net Carrying Accumulated Carrying Useful Amount Amortization Amount Life Tradename $ 31,363 $ — $ 31,363 Indefinite Customer relationships 42,205 (21,273) 20,932 11 years Trademarks 10,627 (1,494) 9,133 6 - 30 years Trade dress 8,336 — 8,336 Indefinite Patents 3,868 (256) 3,612 4 - 25 years Non-compete agreements 2,815 (2,815) — 5 years Other intangibles 1,024 (98) 926 15 years Total intangible assets $ 100,238 $ (25,936) $ 74,302 For the three months ended September 29, 2018 and September 30, 2017, amortization expense totaled $1.4 million and $1.2 million, respectively. Amortization expense totaled $3.9 million and $4.1 million for the nine months ended September 29, 2018 and 2017, respectively. In February 2017, a binding settlement was reached in the United States District Court related to lawsuits brought by the Company against RTIC Coolers. Under the terms of the agreement, RTIC Coolers was required to make a financial payment to the Company; to cease sales of all products subject to the lawsuit—this includes hard‑sided coolers, soft‑sided coolers, and Drinkware; and to redesign all products in question. In accordance with our policy on intangible assets, amounts received under the settlement agreement were credited against the carrying value of the related intangible asset.

Long term Debt

Long term Debt	9 Months Ended
	Sep. 29, 2018
Long term Debt
Long term Debt	Note 6—Long‑term Debt Long‑term debt consisted of the following (dollars in thousands): September 29, December 30, 2018 2017 Term Loan A, due 2021 $ 344,875 $ 378,250 Term Loan B, due 2022 47,637 103,425 Debt owed to Rambler On 1,500 3,000 Total debt 394,012 484,675 Current maturities of long‑term debt (47,050) (47,050) Total long‑term debt 346,962 437,625 Unamortized deferred financing fees (6,219) (8,993) Total long‑term debt, net $ 340,743 $ 428,632 Per the terms of the Rambler On purchase agreement (see Note 9), the Company issued Rambler On an unsecured promissory note on May 16, 2017 for the principal amount of $3.0 million with a term of two years (payable 50% on the first anniversary and 50% on the second anniversary with 5% interest). As of September 29, 2018, we had $1.5 million outstanding and classified as short‑term debt. As of September 29, 2018, we had issued $20.0 million in letters of credit with a 4.0% annual fee to supplement our supply chain finance program. While our issuance of letters of credit does not increase our borrowings outstanding under our revolving credit facility, it does reduce the amount available. As of September 29, 2018, we were in compliance with all covenants under the Credit Facility, which governs our term loan A and term loan B.

Income Taxes

Income Taxes	9 Months Ended
	Sep. 29, 2018
Income Taxes
Income Taxes	Note 7—Income Taxes Income tax expense was $3.1 million and $5.2 million for the three months ended September 29, 2018 and September 30, 2017, respectively. The effective tax rate for the three months ended September 29, 2018 was 16% compared to 32% for the three months ended September 30, 2017. The decrease in income tax expense and the effective tax rate was primarily due to the reduction in the U.S. corporate income tax rate from 35% to 21%, enacted as part of the Tax Cuts and Jobs Act (“the Act”), and the revaluation of deferred tax assets for state income taxes. Income tax expense was $7.2 million for the nine months ended September 29, 2018 compared to $6.0 million for the nine months ended September 30, 2017. The increase in income tax expense is due to higher income before income taxes. The effective tax rate for the nine months ended September 29, 2018 was 18% compared to 34% for the nine months ended September 30, 2017. The decrease in the effective tax rate was primarily due to the reduction in the U.S. corporate income tax rate from 35% to 21%, enacted as part of the Act, and the revaluation of deferred tax assets for state income taxes. For interim periods, our income tax expense and resulting effective tax rate are based upon an estimated annual effective tax rate adjusted for the effects of items required to be treated as discrete to the period, including changes in tax laws, changes in estimated exposures for uncertain tax positions, and other items. We considered the provisions of the Act in calculating the estimated annual effective tax rate.

Stock Based Compensation

Stock Based Compensation	9 Months Ended
	Sep. 29, 2018
Stock Based Compensation
Stock Based Compensation	Note 8—Stock‑Based Compensation We have an incentive plan, the 2012 Plan , which provides for up to 8.8 million shares of authorized stock to be awarded as stock options, in the form of incentive stock options or nonqualified stock options, or restricted stock units (“RSUs”). The exercise price of options granted under the 2012 Plan is equal to the estimated fair market value of our common stock at the date of grant. The fair value of RSUs granted under the plan is equal to the estimated fair market value of our common stock on the date of grant. Forfeitures are recorded as they occur, and compensation expense previously recognized for an award that was forfeited is reversed in the period of the forfeiture. We estimate the fair value of stock options on the date of grant using a Black‑Scholes option‑pricing valuation model, which uses the expected option term, stock price volatility, and the risk‑free interest rate. At the time that the outstanding awards were granted, there was no active market for our common shares, and as such, volatility was estimated in accordance with Accounting Standards Codification 718 Compensation—Stock Compensation (“ASC 718”), using the historical closing values of comparable publicly held entities. The expected option term assumption reflects the period for which we believe the option will remain outstanding. This assumption is based upon the historical and expected behavior of our employees and may vary based upon the behavior of different groups of employees. The risk‑free interest rate reflects the U.S. Treasury yield curve for a similar instrument with the same expected term in effect at the time of the grant. On June 20 and 29, 2018, our Board of Directors approved the grant of an aggregate of 1,407,583 RSUs to various employees and directors, which approvals became effective on June 23 and July 2, 2018, respectively. Of the aggregate RSUs approved on June 20 and 29, 2018, 9,160 RSUs were cancelled prior to issuance. On August 22, 2018 our Board of Directors approved the grant of 27,480 RSUs to one employee, which approval became effective on August 25, 2018. As of September 29, 2018, 1,425,903 RSUs had been granted, 1,410,718 RSUs were outstanding, and 15,185 had been forfeited under the 2012 Plan. The RSUs vest upon the occurrence of a change of control and the achievement of certain EBITDA targets for calendar years 2018 and 2019, provided that if a change of control occurs prior to the date on which our Board of Directors certifies that the applicable EBITDA target has been achieved, all RSUs that have not already been forfeited will become nonforfeitable and shares of our common stock will be delivered to the applicable grantee within 30 days of the RSUs becoming nonforfeitable. 385,241 of those RSUs were granted as replacement awards in exchange for 104,411 out‑of‑the‑money stock options which were cancelled. The concurrent cancellation and replacement was a modification for accounting purposes, which GAAP requires continued recognition of the cancelled awards’ fair value plus the recognition of the new awards’ fair value for any awards likely to vest. Any incremental compensation cost resulting from the modification will not be recognized prior to the consummation of a change in control as GAAP deems satisfaction of a change in control contingency to be unlikely. We recognized $2.9 million and $2.7 million for the three months ended September 29, 2018 and September 30, 2017, respectively, of compensation expense in the accompanying consolidated statements of operations. For the nine months ended September 29, 2018 and September 30, 2017 we recognized $10.0 million and $9.2 million, respectively, of compensation expense in the accompanying consolidated statements of operations. As of September 29, 2018, total unrecognized compensation expense for unvested options totaled $9.8 million, and will be recognized over the next three years. As of September 29, 2018, total unrecognized compensation expense for unvested RSUs totaled $44.8 million, and will be recognized upon consummation of a change in control.

Variable Interest Entities and

Variable Interest Entities and Acquisition of Assets and Liabilities	9 Months Ended
	Sep. 29, 2018
Variable Interest Entities and Acquisition of Assets and Liabilities
Variable Interest Entities and Acquisition of Assets and Liabilities	Note 9—Variable Interest Entities and Acquisition of Assets and Liabilities In July 2016, we entered into a secured promissory note with our exclusive Drinkware customization partner, Rambler On, to assist them with the acquisition of new equipment as they expanded their operations. Under the terms of the note, we advanced to Rambler On up to $7.0 million for the acquisition of new equipment. The advancement period of the note ran through May 2017, at which time the note balance would convert to a 5 year note with principal and interest due monthly. The note accrued interest at 5.0%, was scheduled to mature in July 2022, and was secured by all the assets of Rambler On. Additionally, in November 2016, we converted a portion of our accounts receivable from Rambler On’s account receivable into a secured promissory note of $7.7 million. This note accrued interest at 5.0% with interest payments due monthly. The secured promissory note was scheduled to mature in November 2017. In 2016, we determined we held a variable interest in Rambler On based on our assessment that Rambler On did not have sufficient resources to carry out its principal activities without our support. We examined specific criteria and determined that we are the primary beneficiary of the VIE and therefore were required to consolidate Rambler On; however, we had no obligation to provide financial support to Rambler On. On May 16, 2017, an agreement was entered into by Rambler On and YCD, whereby YCD acquired substantially all assets and liabilities of Rambler On for $6.0 million. We paid the consideration for the acquisition by making a cash payment to Rambler On of $2.0 million on the closing in May 2017 and subsequently paying $0.9 million following the determination of the final assets sold as part of the acquisition in October 2017. In addition, we issued a promissory note to Rambler On for a principal amount of $3.0 million with a two‑year term and bearing interest at 5% per annum, payable in two equal installments on May 16, 2018 and May 16, 2019. As part of the acquisition, all of the notes outstanding prior to May 16, 2017 between the Company and Rambler On were forgiven. We consolidated Rambler On effective August 1, 2016, and YCD effective May 16, 2017; therefore, the financial results of Rambler On and YCD have been included in our consolidated financial statements since those dates. All intercompany balances have been eliminated since fiscal year-end 2016.

Related Party Agreements

Related Party Agreements	9 Months Ended
	Sep. 29, 2018
Related Party Agreements
Related Party Agreements	Note 10—Related‑Party Agreements We have entered into a management services agreement with Cortec Group Fund V, L.P. and its affiliates (“Cortec”), our majority stockholder, that provides for a management fee to be based on 1.0% of total sales, not to exceed $0.8 million annually, plus certain out‑of‑pocket expenses. During each of the nine months ended September 29, 2018 and September 30, 2017, we incurred fees and out‑of‑pocket expenses under this agreement totaling approximately $0.8 million, which were included in selling, general, and administrative expenses. We incurred no expense for these management fees during the three months ended September 29, 2018 and September 30, 2017. This agreement was terminated on October 24, 2018 and no further payments are due to Cortec. We lease warehouse and office facilities under various operating leases. One warehouse facility is leased from an entity owned by our Founders, Roy and Ryan Seiders. The lease, which is month to month and can be cancelled upon 30 days written notice, requires monthly payments of $8,700 and is included in selling, general, and administrative expenses.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 29, 2018
Commitments and Contingencies
Commitments and Contingencies	Note 11—Commitments and Contingencies In August 2018, we entered into two new operating leases for space to be used for two new retail locations. One lease agreement is for a first floor and basement of a building in Chicago, Illinois, with an exterior footprint of approximately 5,538 square feet. The term of the lease is 120 months, and the monthly payments over the lease term are approximately $45,000. The second lease agreement is for a building in Charleston, South Carolina, totaling approximately 5,039 square feet. The term of the lease is 120 months, and the monthly payments over the lease term are approximately $28,000. In August 2018, we sublet 29,881 square feet of our Austin, Texas headquarters to a third party. The lease term is approximately 6 years and expires on July 31, 2024. The monthly receipts over the lease term are approximately $72,000. There were no other significant changes to the contractual obligations reported in our most recent annual audited consolidated financial statements for the year ended December 30, 2017 other than those which occur in the normal course of business. We are subject to various claims and legal actions that arise in the ordinary course of business. Management believes that the final disposition of such matters will not have a material adverse effect on our financial position, results of operations, or cash flows.

Subsequent Events

Subsequent Events	9 Months Ended
	Sep. 29, 2018
Subsequent Events
Subsequent Events	Note 12—Subsequent Events On October 12, 2018, the Board of Directors approved a 0.397‑for‑1 reverse stock split, that occurred prior to the completion of our IPO. All share and per share data have been retroactively adjusted to give effect to the reverse stock split (see Note 1). On October 12, 2018, the Board of Directors approved an increase in our authorized capital stock of 200.0 million shares of common stock and 30.0 million shares of preferred stock, which occurred prior to the completion of our IPO. No shares were issued in connection with the increase in authorized capital stock. On October 24, 2018, the Company completed the IPO of its common stock (see Note 1). In October 2018, the Board adopted the 2018 Equity Incentive Plan (the "2018 Plan") and ceased granting awards under the 2012 Plan. The 2018 Plan became effective in connection with the IPO. The Company reserved 4,764,000 shares of its common stock for issuance under the 2018 Plan. Any remaining shares available for issuance under the 2012 Plan as of our IPO effectiveness date are not available for future issuance. However, shares subject to stock awards granted under the 2012 Plan (i) that expire or terminate without being exercised, (ii) that are forfeited under an award, or (iii) that are transferred, surrendered, or relinquished upon the payment of any exercise price by the transfer to us of our common stock or upon satisfaction of any withholding amount, return to the 2018 Plan share reserve for future grant. On October 24, 2018, in connection with the IPO, the Company granted 761,031 time-based stock options at an exercise price of $18.00 per share to senior executives. The stock options vest in substantially equal installments on the anniversary of the grant date over a four-year period through October 2022 and expire 10 years from the date of grant. In addition, two non-employee directors serving on the Board of Directors were granted 16,693 RSUs, per their compensation agreement, with the award granted on the effective date of our IPO, or October 24, 2018. These non-employee directors elected to defer 13,388 of the RSUs in the form of deferred stock units (“DSUs”). The RSU awards will vest in full in one installment on the earlier to occur of (i) the first anniversary of the pricing of the IPO or (ii) immediately prior to our first annual meeting of our stockholders at which directors are elected, subject to the director’s continued service through the applicable vesting date. The DSU awards will vest in full in one installment on the same basis as a non-employee director’s RSUs will vest and will be settled in shares of our common stock on the earlier to occur of (i) the first anniversary of the pricing of the IPO or (ii) immediately prior to our first annual meeting of our stockholders at which directors are elected. However, the DSUs will be subject to accelerated vesting if either of the following occur (i) death or disability or (ii) a change in control. During the period of deferral, non-employee directors will accrue dividend equivalents on their deferred stock units as, if and when dividends are paid on shares of our common stock. The definitive terms regarding any deferred stock units will be set forth in the DSU award agreement and the accompanying deferral election form completed by the applicable director. On November 28, 2018, the underwriters exercised, in part, their option to purchase an additional 918,830 shares of common stock at the public offering price of $18.00 per share, less the underwriting discount, from selling stockholders. The Company did not receive any proceeds from the sale of shares by selling stockholders. On November 29, 2018, we made voluntary principal payments on our term loan A and term loan B in the amount of $2.4 million and $47.6 million, respectively, using the net proceeds from our IPO and additional cash on hand. After the voluntary debt payments, we had outstanding borrowings of $342.5 million and $0 under our term loan A and term loan B, respectively.

Organization and Significant _2

Organization and Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 29, 2018
Organization and Significant Accounting Policies
Initial public offering	Initial Public Offering On October 24, 2018, the Company completed its initial public offering (the "IPO") of 16,000,000 shares of our common stock, including 2,500,000 shares of our common stock sold by the Company and 13,500,000 shares of our common stock sold by selling stockholders. The underwriters were also granted an option to purchase up to an additional 2,400,000 shares from the selling stockholders, at the public offering price, less the underwriting discount, for 30 days after October 24, 2018. The shares were sold at the IPO price of $18.00 per share for net proceeds of $42.4 million to the Company, after deducting underwriting discounts and commissions of $2.6 million. The Company did not receive any proceeds from the sale of shares of common stock by the selling stockholders. Additionally, offering costs incurred by the Company are expected to total approximately $4. 4 million.
Basis of Presentation and Principles of Consolidation	Basis of Presentation and Principles of Consolidation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and do not include all of the information and notes required for complete financial statements. These financial statements should be read in conjunction with our most recent annual audited consolidated financial statements for the year ended December 30, 2017 included in the prospectus filed pursuant to Rule 424(b) under the Securities Act of 1933 with the United States Securities and Exchange Commission on October 25, 2018 (the “Final Prospectus”). In the opinion of management, the accompanying unaudited condensed consolidated financial statements contain all normal and recurring adjustments necessary to fairly present the consolidated financial position, results of operations and cash flows for the interim periods presented. Operating results for the three and nine months ended September 29, 2018 are not necessarily indicative of results that may be expected for any other interim period or for the year ending December 29, 2018. The unaudited consolidated financial statements include our accounts and those of our wholly owned subsidiaries. Intercompany balances and transactions have been eliminated in consolidation. We operate on a “52‑53 week” fiscal year ending on the Saturday closest in proximity to December 31, such that each quarterly period will be 13 weeks in length, except during a 53‑week year when the fourth quarter will be 14 weeks. The unaudited consolidated financial results represent the three and nine months ended September 29, 2018 and September 30, 2017.
Stock split	Stock Split On October 12, 2018, the Company effected a 0.397-for-1 reverse stock split of all outstanding shares of the Company’s common stock. All share and per share information presented in the condensed consolidated financial statements and accompanying footnotes has been retroactively adjusted for all periods presented for the effects of the stock split.
Fair Value of Financial Instruments	Fair Value of Financial Instruments For financial assets and liabilities recorded at fair value on a recurring or non‑recurring basis, fair value is the price we would receive to sell an asset, or pay to transfer a liability, in an orderly transaction with a market participant at the measurement date. In the absence of such data, fair value is estimated using internal information consistent with what market participants would use in a hypothetical transaction. In determining fair value, observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect our market assumptions; preference is given to observable inputs. These two types of inputs create the following fair value hierarchy: Level 1: Quoted prices for identical instruments in active markets. Level 2: Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model‑derived valuations whose inputs are observable or whose significant value drivers are observable. Level 3: Significant inputs to the valuation model are unobservable. Our financial instruments consist principally of cash, accounts receivable, accounts payable, and bank indebtedness. The carrying amount of cash, accounts receivable, and accounts payable, approximates fair value due to the short‑term maturity of these instruments. The carrying amount of our long‑term bank indebtedness approximates fair value based on Level 2 inputs since the Credit Facility (as defined below) carries a variable interest rate that is based on London Interbank Offered Rate (“LIBOR”).
Recently Issued Accounting Pronouncements	Recently Issued Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014‑09, “ Revenue from Contracts with Customers: (Topic 606) .” The new guidance establishes a single comprehensive model for entities to use in accounting for revenue and supersedes the most current revenue recognition guidance. It introduces a five-step process for revenue recognition that focuses on transfer of control, as opposed to transfer of risk and rewards under current guidance. It also requires significantly expanded disclosures regarding revenues. We have begun a detailed evaluation of the impact of our adoption of ASU 2014-09; however, given the nature of our business, we do not believe there will be a material impact in how or when revenue is recorded and that the impacts will primarily be related to increased disclosures. We do expect the adoption and consequent changes to our procedures and methodologies to require adjustments to our internal controls over financial reporting. As interpretations of the new rules continue to evolve, we will continue to monitor developments and expect to finalize our conclusions in the fourth quarter of 2018. We plan to adopt this standard in the first quarter of 2019. Providing we ultimately conclude that the impacts of adoption are immaterial, we would expect to use the modified retrospective method. Under this method, we would recognize the cumulative effect of the changes in retained earnings at the date of adoption but would not restate prior years. On July 2018, the FASB issued ASU No. 2018‑11, “ Leases—Targeted Improvements .” The standard is effective for interim and annual reporting periods beginning after December 15, 2018. Under ASU 2018‑11, adopters may take a prospective approach, rather than a retrospective approach as initially prescribed, when transitioning to ASU 2016‑02. The most significant impact of ASU 2018‑11 is relief in the comparative reporting requirements for initial adoption. Instead of recording the cumulative impact of all comparative reporting periods presented within opening retained earnings of the earliest period presented, we will now assess the facts and circumstances of all leasing contracts as of December 29, 2019, the beginning of our fiscal 2020. For lessors, ASU 2018‑11 adds an optional practical expedient permitting lessors, under certain circumstances, not to separate the lease and non‑lease components by class of underlying assets, but rather to account for them as a single combined component, and further clarifies the accounting treatment for such a combined component. We are in the process of evaluating the effect the guidance will have on our existing accounting policies and the consolidated financial statements, but we expect there will be an increase in assets and liabilities on the consolidated balance sheets at adoption due to the recording of right‑of‑use assets and corresponding lease liabilities, which may be material.

Share Data (Tables)

Share Data (Tables)	9 Months Ended
	Sep. 29, 2018
Share Data
Schedule of reconciliation of shares for basic and diluted net income per share	A reconciliation of shares for basic and diluted net income per share is set forth below (in thousands, except per share data): Three Months Ended Nine Months Ended September 29, September 30, September 29, September 30, 2018 2017 2018 2017 Net income $ 17,030 $ 11,271 $ 32,594 $ 11,427 Weighted average common shares outstanding—basic 81,147 81,479 81,238 81,460 Effect of dilutive securities 1,777 1,509 1,708 1,555 Weighted average common shares outstanding—diluted 82,924 82,988 82,946 83,015 Earnings per share Basic $ 0.21 $ 0.14 $ 0.40 $ 0.14 Diluted $ 0.21 $ 0.14 $ 0.39 $ 0.14

Property and Equipment (Tables)

Property and Equipment (Tables)	9 Months Ended
	Sep. 29, 2018
Property and Equipment
Summary of property and equipment	Property and equipment consisted of the following (in thousands): September 29, December 30, 2018 2017 Production molds and tooling $ 43,378 $ 41,188 Furniture, fixtures, and equipment 6,571 5,590 Computers and software 36,097 28,774 Leasehold improvements 27,606 26,154 Property and equipment—gross 113,652 101,706 Accumulated depreciation (41,247) (27,923) Property and equipment—net $ 72,405 $ 73,783

Intangible Assets (Tables)

Intangible Assets (Tables)	9 Months Ended
	Sep. 29, 2018
Intangible Assets
Summary of our intangible assets	The following is a summary of our intangible assets as of September 29, 2018 (in thousands): Gross Net Carrying Accumulated Carrying Useful Amount Amortization Amount Life Tradename $ 31,363 $ — $ 31,363 Indefinite Customer relationships 42,205 (24,151) 18,054 11 years Trademarks 13,663 (2,360) 11,303 6 - 30 years Trade dress 14,832 — 14,832 Indefinite Patents 5,090 (404) 4,686 4 - 25 years Non-compete agreements 2,815 (2,815) — 5 years Other intangibles 1,021 (146) 875 15 years Total intangible assets $ 110,989 $ (29,876) $ 81,113 The following is a summary of our intangible assets as of December 30, 2017 (in thousands): Gross Net Carrying Accumulated Carrying Useful Amount Amortization Amount Life Tradename $ 31,363 $ — $ 31,363 Indefinite Customer relationships 42,205 (21,273) 20,932 11 years Trademarks 10,627 (1,494) 9,133 6 - 30 years Trade dress 8,336 — 8,336 Indefinite Patents 3,868 (256) 3,612 4 - 25 years Non-compete agreements 2,815 (2,815) — 5 years Other intangibles 1,024 (98) 926 15 years Total intangible assets $ 100,238 $ (25,936) $ 74,302

Long term Debt (Tables)

Long term Debt (Tables)	9 Months Ended
	Sep. 29, 2018
Long term Debt
Summary of long term debt	Long‑term debt consisted of the following (dollars in thousands): September 29, December 30, 2018 2017 Term Loan A, due 2021 $ 344,875 $ 378,250 Term Loan B, due 2022 47,637 103,425 Debt owed to Rambler On 1,500 3,000 Total debt 394,012 484,675 Current maturities of long‑term debt (47,050) (47,050) Total long‑term debt 346,962 437,625 Unamortized deferred financing fees (6,219) (8,993) Total long‑term debt, net $ 340,743 $ 428,632

Organization and Significant _3

Organization and Significant Accounting Policies - Initial public offering (Details) - Subsequent Event - USD ($) $ / shares in Units, $ in Millions	Nov. 28, 2018	Oct. 24, 2018
IPO
Initial public offering
Cumulative common stock sold		16,000,000
Company's common stock sold		2,500,000
Common stock sold by selling stockholders		13,500,000
Public offering, shares issued price (per share)		$ 18
Net proceeds after deducting underwriting discounts and commissions		$ 42.4
IPO underwriting discounts and commissions		2.6
IPO offering costs incurred		$ 4.4
Additional allotment option
Initial public offering
Common stock sold by selling stockholders	918,830	2,400,000
Option to purchase additional shares from selling stockholders, period		30 days
Public offering, shares issued price (per share)	$ 18

Organization and Significant _4

Organization and Significant Accounting Policies - Fiscal year (Details)	9 Months Ended
	Sep. 29, 2018
Minimum
Length of fiscal year	364 days
Length of fiscal quarter	91 days
Maximum
Length of fiscal year	371 days
Length of fiscal quarter	98 days

Organization and Significant _5

Organization and Significant Accounting Policies - Stock split (Details)	Oct. 12, 2018
Subsequent Event
Stock split
Reverse stock split ratio	0.397

Share Data (Details)

Share Data (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 29, 2018	Sep. 30, 2017	Sep. 29, 2018	Sep. 30, 2017	Dec. 30, 2017
Share Data
Common stock, outstanding	81,147		81,147		81,535
Reconciliation of shares for basic and diluted net income per share
Net income	$ 17,030	$ 11,271	$ 32,594	$ 11,427
Weighted average common shares outstanding—basic	81,147	81,479	81,238	81,460
Effect of dilutive securities	1,777	1,509	1,708	1,555
Weighted average common shares outstanding—diluted	82,924	82,988	82,946	83,015
Basic	$ 0.21	$ 0.14	$ 0.40	$ 0.14
Diluted	$ 0.21	$ 0.14	$ 0.39	$ 0.14

Share Data - Anti-dilutive (Det

Share Data - Anti-dilutive (Details) - shares shares in Millions	3 Months Ended		9 Months Ended
	Sep. 29, 2018	Sep. 30, 2017	Sep. 29, 2018	Sep. 30, 2017
Stock Options
Antidilutive Securities
Shares excluded from computation of diluted earnings per share	0.1	0.1	0.2	0.2

Share Data - Narrative (Details

Share Data - Narrative (Details) $ in Millions	May 17, 2016	Sep. 29, 2018USD ($)	Sep. 30, 2017USD ($)	Sep. 29, 2018USD ($)	Sep. 30, 2017USD ($)
Share Data
Percentage used to calculate the difference in strike price and dividend	70
Stock Options
Share Data
Dividend paid		$ 2.4	$ 2.7	$ 2.5	$ 2.8
Dividend payable		0.6		0.6
Total dividends				7.9
Dividend accrued		$ 0.1		$ 0.1

Repurchase of Common Stock (Det

Repurchase of Common Stock (Details) shares in Millions	Mar. 05, 2018$ / sharesshares
Repurchase of Common Stock
Shares repurchased | shares	0.4
Repurchase price per share | $ / shares	$ 4.95

Property and Equipment (Details

Property and Equipment (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 29, 2018	Sep. 30, 2017	Sep. 29, 2018	Sep. 30, 2017	Dec. 30, 2017
Property, Plant and Equipment [Line Items]
Property and equipment—gross	$ 113,652		$ 113,652		$ 101,706
Accumulated depreciation	(41,247)		(41,247)		(27,923)
Property and equipment—net	72,405		72,405		73,783
Depreciation expense	5,000	$ 4,600	14,300	$ 11,100
Production molds and tooling
Property, Plant and Equipment [Line Items]
Property and equipment—gross	43,378		43,378		41,188
Furniture, fixtures, and equipment
Property, Plant and Equipment [Line Items]
Property and equipment—gross	6,571		6,571		5,590
Computers and software
Property, Plant and Equipment [Line Items]
Property and equipment—gross	36,097		36,097		28,774
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property and equipment—gross	$ 27,606		$ 27,606		$ 26,154

Intangible Assets (Details)

Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 29, 2018	Sep. 30, 2017	Sep. 29, 2018	Sep. 30, 2017	Dec. 30, 2017
Finite Lived And Indefinite Lived Intangible Assets By Major Class Line Items
Accumulated amortization	$ (29,876)		$ (29,876)		$ (25,936)
Gross carrying amount	110,989		110,989		100,238
Net carrying amount	81,113		81,113		74,302
Amortization expense	1,400	$ 1,200	3,900	$ 4,100
Trademarks
Finite Lived And Indefinite Lived Intangible Assets By Major Class Line Items
Gross carrying amount, finite-lived	13,663		13,663		10,627
Accumulated amortization	(2,360)		(2,360)		(1,494)
Net carrying amount, finite-lived	11,303		$ 11,303		$ 9,133
Trademarks | Minimum
Finite Lived And Indefinite Lived Intangible Assets By Major Class Line Items
Useful Life			6 years		6 years
Trademarks | Maximum
Finite Lived And Indefinite Lived Intangible Assets By Major Class Line Items
Useful Life			30 years		30 years
Customer relationships
Finite Lived And Indefinite Lived Intangible Assets By Major Class Line Items
Gross carrying amount, finite-lived	42,205		$ 42,205		$ 42,205
Accumulated amortization	(24,151)		(24,151)		(21,273)
Net carrying amount, finite-lived	18,054		$ 18,054		$ 20,932
Useful Life			11 years		11 years
Patents
Finite Lived And Indefinite Lived Intangible Assets By Major Class Line Items
Gross carrying amount, finite-lived	5,090		$ 5,090		$ 3,868
Accumulated amortization	(404)		(404)		(256)
Net carrying amount, finite-lived	4,686		$ 4,686		$ 3,612
Patents | Minimum
Finite Lived And Indefinite Lived Intangible Assets By Major Class Line Items
Useful Life			4 years		4 years
Patents | Maximum
Finite Lived And Indefinite Lived Intangible Assets By Major Class Line Items
Useful Life			25 years		25 years
Non-compete agreements
Finite Lived And Indefinite Lived Intangible Assets By Major Class Line Items
Gross carrying amount, finite-lived	2,815		$ 2,815		$ 2,815
Accumulated amortization	(2,815)		$ (2,815)		$ (2,815)
Useful Life			5 years		5 years
Other intangibles
Finite Lived And Indefinite Lived Intangible Assets By Major Class Line Items
Gross carrying amount, finite-lived	1,021		$ 1,021		$ 1,024
Accumulated amortization	(146)		(146)		(98)
Net carrying amount, finite-lived	875		$ 875		$ 926
Useful Life			15 years		15 years
Tradename
Finite Lived And Indefinite Lived Intangible Assets By Major Class Line Items
Carrying amount, indefinite-lived	31,363		$ 31,363		$ 31,363
Trade dress
Finite Lived And Indefinite Lived Intangible Assets By Major Class Line Items
Carrying amount, indefinite-lived	$ 14,832		$ 14,832		$ 8,336

Long term Debt (Details)

Long term Debt (Details) - USD ($) $ in Thousands	Sep. 29, 2018	Dec. 30, 2017
Debt Instrument [Line Items]
Total debt	$ 394,012	$ 484,675
Current maturities of long-term debt	(47,050)	(47,050)
Total long-term debt	346,962	437,625
Unamortized deferred financing fees	(6,219)	(8,993)
Total long-term debt, net	340,743	428,632
Term Loan A, due 2021
Debt Instrument [Line Items]
Total debt	344,875	378,250
Term Loan B, due 2022
Debt Instrument [Line Items]
Total debt	47,637	103,425
Debt owed to Rambler On
Debt Instrument [Line Items]
Total debt	$ 1,500	$ 3,000

Long term Debt - Unsecured prom

Long term Debt - Unsecured promissory note (Details) - Debt owed to Rambler On - USD ($) $ in Millions	May 16, 2017	Sep. 29, 2018
Debt Instrument [Line Items]
Principal amount	$ 3
Term of debt	2 years
Percentage of principal repayment on first anniversary	50.00%
Percentage of principal repayment on second anniversary	50.00%
Interest rate	5.00%
Short term debt		$ 1.5

Long term Debt - Supply chain f

Long term Debt - Supply chain finance program (Details) - Letter of credit $ in Millions	9 Months Ended
	Sep. 29, 2018USD ($)
Debt Instrument [Line Items]
Letters of credit outstanding	$ 20
Annual fee percentage	4.00%

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 29, 2018	Sep. 30, 2017	Sep. 29, 2018	Sep. 30, 2017	Dec. 30, 2017
Income Taxes
Income tax expense	$ 3,125	$ 5,208	$ 7,161	$ 5,970
Effective Income tax rate	16.00%	32.00%	18.00%	34.00%
Corporate income tax rate			21.00%		35.00%

Stock Based Compensation (Detai

Stock Based Compensation (Details) shares in Millions	Sep. 29, 2018shares
2012 Equity and Performance Incentive Plan
Stock Based Compensation
Shares authorized to be awarded	8.8

Stock Based Compensation - RSUs

Stock Based Compensation - RSUs (Details) - USD ($) $ in Millions	Aug. 25, 2018	Jun. 29, 2018	Jun. 20, 2018	Sep. 29, 2018	Sep. 30, 2017	Sep. 29, 2018	Sep. 30, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share based compensation expenses				$ 2.9	$ 2.7	$ 10	$ 9.2
Unrecognized compensation expense for unvested options				$ 9.8		$ 9.8
Unrecognized compensation expense for unvested options, recognition period						3 years
Restricted stock units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares approved for grant		1,407,583	1,407,583
RSUs outstanding				1,410,718		1,410,718
Period in which the common stock be delivered to grantee once RSUs become nonforfeitables						30 days
RSUs granted	27,480					1,425,903
RSUs granted as replacement awards						385,241
Options cancelled		9,160	9,160			104,411
Unrecognized compensation expense				$ 44.8		$ 44.8
2012 Equity and Performance Incentive Plan | Restricted stock units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options cancelled						15,185

Variable Interest Entities an_2

Variable Interest Entities and Acquisition of Assets and Liabilities (Details) $ in Thousands	May 16, 2017USD ($)installment	Oct. 31, 2017USD ($)	May 31, 2017USD ($)	Jul. 31, 2016USD ($)	Sep. 30, 2017USD ($)	Nov. 30, 2016USD ($)
Variable Interest Entity [Line Items]
Cash paid					$ 2,000
YCD
Variable Interest Entity [Line Items]
Assets and liabilities acquired	$ 6,000
Cash paid		$ 900	$ 2,000
Principal amount	$ 3,000
Term of debt	2 years
Interest rate	5.00%
Debt, number of installments | installment	2
Rambler On
Variable Interest Entity [Line Items]
Amount advanced				$ 7,000
Term of promissory note				5 years
Note accrued interest rate				5.00%
Accounts receivable converted to promissory note						$ 7,700

Related Party Agreements (Detai

Related Party Agreements (Details)	3 Months Ended		9 Months Ended
	Sep. 29, 2018USD ($)	Sep. 30, 2017USD ($)	Sep. 29, 2018USD ($)warehouse	Sep. 30, 2017USD ($)
Related-Party Agreements
Management fee, percentage on total sales			1.00%
Annual threshold management fee			$ 800,000
Management fee expenses	$ 0	$ 0
Number of warehouse facility leased | warehouse			1
Lease notice period			30 days
Lease rental expense			$ 8,700
Selling, general, and administrative expenses
Related-Party Agreements
Fees and out of pocket expenses			$ 800,000	$ 800,000

Commitments and Contingencies (

Commitments and Contingencies (Details)	1 Months Ended
	Aug. 31, 2018USD ($)ft²leaselocation
ILLINOIS
Commitments and Contingencies
Number of operating leases | lease	2
Number of new retail locations | location	2
Area of property | ft²	5,538
Term of lease	120 months
Lease rent expense | $	$ 45,000
SOUTH CAROLINA
Commitments and Contingencies
Area of property | ft²	5,039
Term of lease	120 months
Lease rent expense | $	$ 28,000
TEXAS | Sublease
Commitments and Contingencies
Area of property | ft²	29,881
Term of sublease	6 years
Sublease income | $	$ 72,000

Subsequent Events (Details)

Subsequent Events (Details)	Nov. 29, 2018USD ($)	Nov. 28, 2018$ / sharesshares	Oct. 24, 2018$ / sharesshares	Oct. 12, 2018shares	Oct. 31, 2018shares	Sep. 29, 2018USD ($)	Dec. 30, 2017USD ($)
Subsequent Events
Outstanding borrowings | $						$ 346,962,000	$ 437,625,000
Subsequent Event
Subsequent Events
Reverse stock split ratio				0.397
Increase in common stock shares authorized				200,000,000
Increase In Preferred Stock Shares Authorized				30,000,000
Shares issued				0
Subsequent Event | Restricted stock units (RSUs) | Non-employee director serving on the Board of Directors
Subsequent Events
Options granted (in shares)			16,693
Subsequent Event | Deferred stock units (DSUs) | Non-employee director serving on the Board of Directors
Subsequent Events
Options granted (in shares)			13,388
Subsequent Event | 2018 Plan
Subsequent Events
Shares reserved for future issuance					4,764,000
Subsequent Event | 2018 Plan | Time-based stock options
Subsequent Events
Options granted (in shares)			761,031
Exercise price per share | $ / shares			$ 18
Vesting period (in years)			4 years
Expiration period (in years)			10 years
Subsequent Event | Additional allotment option
Subsequent Events
Common stock sold by selling stockholders		918,830	2,400,000
Public offering, shares issued price (per share) | $ / shares		$ 18
Subsequent Event | Term Loan A, due 2021
Subsequent Events
Voluntary debt payments on principal | $	$ 2,400,000
Outstanding borrowings | $	342,500,000
Subsequent Event | Term Loan B, due 2022
Subsequent Events
Voluntary debt payments on principal | $	47,600,000
Outstanding borrowings | $	$ 0