Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Dec. 28, 2019 | Feb. 07, 2020 | Jun. 28, 2019 | |
Cover page. | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 28, 2019 | ||
Document Transition Report | false | ||
Entity File Number | 001-38713 | ||
Entity Registrant Name | YETI Holdings, Inc. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 45-5297111 | ||
Entity Address, Address Line One | 7601 Southwest Parkway | ||
Entity Address, City or Town | Austin | ||
Entity Address, State or Province | TX | ||
Entity Address, Postal Zip Code | 78735 | ||
City Area Code | 512 | ||
Local Phone Number | 394-9384 | ||
Title of 12(b) Security | Common Stock, par value $0.01 per share | ||
Trading Symbol | YETI | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 1,137,608,546 | ||
Entity Common Stock, Shares Outstanding | 86,786,443 | ||
Entity Central Index Key | 0001670592 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-28 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 28, 2019 | Dec. 29, 2018 |
Current assets | ||
Cash | $ 72,515 | $ 80,051 |
Accounts receivable, net | 82,688 | 59,328 |
Inventory | 185,700 | 145,423 |
Prepaid expenses and other current assets | 19,644 | 12,211 |
Total current assets | 360,547 | 297,013 |
Property and equipment, net | 82,610 | 74,097 |
Operating lease right-of-use assets | 37,768 | |
Goodwill | 54,293 | 54,293 |
Intangible assets, net | 90,850 | 80,019 |
Deferred income taxes | 1,082 | 7,777 |
Deferred charges and other assets | 2,389 | 1,014 |
Total assets | 629,539 | 514,213 |
Current liabilities | ||
Accounts payable | 83,823 | 68,737 |
Accrued expenses and other current liabilities | 42,088 | 53,022 |
Taxes payable | 3,329 | 6,390 |
Accrued payroll and related costs | 18,119 | 15,551 |
Operating lease liabilities | 7,768 | |
Current maturities of long-term debt | 15,185 | 43,638 |
Total current liabilities | 170,312 | 187,338 |
Long-term debt, net of current portion | 281,715 | 284,376 |
Operating lease liabilities, non-current | 42,200 | |
Other liabilities | 13,307 | 13,528 |
Total liabilities | 507,534 | 485,242 |
Commitments and contingencies (Note 14) | ||
Stockholders’ Equity | ||
Common stock, par value $0.01; 600,000 shares authorized; 86,774 and 84,196 shares outstanding at December 28, 2019 and December 29, 2018, respectively | 868 | 842 |
Preferred stock, par value $0.01; 30,000 shares authorized; no shares issued or outstanding | 0 | 0 |
Additional paid-in capital | 310,678 | 268,327 |
Accumulated deficit | (189,545) | (240,104) |
Accumulated other comprehensive income (loss) | 4 | (94) |
Total stockholders’ equity | 122,005 | 28,971 |
Total liabilities and stockholders’ equity | $ 629,539 | $ 514,213 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 28, 2019 | Dec. 29, 2018 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, authorized (in shares) | 600,000,000 | 600,000,000 |
Common stock, outstanding (in shares) | 86,774,000 | 84,196,000 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, authorized (in shares) | 30,000,000 | 30,000,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Preferred stock, outstanding (in shares) | 0 | 0 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 28, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Income Statement [Abstract] | |||||||||||
Net sales | $ 297,602 | $ 229,125 | $ 231,654 | $ 155,353 | $ 241,179 | $ 196,109 | $ 206,288 | $ 135,257 | $ 913,734 | $ 778,833 | $ 639,239 |
Cost of goods sold | 438,420 | 395,705 | 344,638 | ||||||||
Gross profit | $ 162,334 | $ 120,076 | $ 116,277 | $ 76,627 | $ 127,828 | $ 97,541 | $ 100,570 | $ 57,189 | 475,314 | 383,128 | 294,601 |
Selling, general, and administrative expenses | 385,543 | 280,972 | 230,634 | ||||||||
Operating income | 89,771 | 102,156 | 63,967 | ||||||||
Interest expense | (21,779) | (31,280) | (32,607) | ||||||||
Other (expense) income | (734) | (1,261) | 699 | ||||||||
Income before income taxes | 67,258 | 69,615 | 32,059 | ||||||||
Income tax expense | (16,824) | (11,852) | (16,658) | ||||||||
Net income | $ 50,434 | $ 57,763 | $ 15,401 | ||||||||
Net income per share | |||||||||||
Basic (in dollars per share) | $ 0.05 | $ 0.25 | $ 0.26 | $ 0.03 | $ 0.30 | $ 0.21 | $ 0.23 | $ (0.04) | $ 0.59 | $ 0.71 | $ 0.19 |
Diluted (in dollars per share) | $ 0.05 | $ 0.25 | $ 0.26 | $ 0.03 | $ 0.30 | $ 0.21 | $ 0.23 | $ (0.04) | $ 0.58 | $ 0.69 | $ 0.19 |
Weighted-average common shares outstanding | |||||||||||
Basic (in shares) | 85,088 | 81,777 | 81,479 | ||||||||
Diluted (in shares) | 86,347 | 83,519 | 82,972 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Net Income (Loss) Attributable to Parent [Abstract] | |||
Net income | $ 50,434 | $ 57,763 | $ 15,401 |
Other comprehensive income (loss) | |||
Foreign currency translation adjustments | 98 | (137) | 43 |
Total comprehensive income | $ 50,532 | $ 57,626 | $ 15,444 |
CONSOLIDATED STATEMENTS OF EQUI
CONSOLIDATED STATEMENTS OF EQUITY (DEFICIT) - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Accumulated Deficit | Accumulated Other Comprehensive Income (Loss) | Noncontrolling Interest |
Balance at beginning of the period (in shares) at Dec. 31, 2016 | 81,437 | |||||
Balance at beginning of the period at Dec. 31, 2016 | $ (95,101) | $ 814 | $ 211,474 | $ (309,575) | $ 0 | $ 2,186 |
Increase (decrease) in stockholders equity | ||||||
Stock-based compensation | 13,393 | 13,393 | ||||
Exercise of options (in shares) | 156 | |||||
Exercise of options | 99 | $ 1 | 98 | |||
Shares withheld related to net share settlement of stock-based compensation (in shares) | (58) | |||||
Shares withheld related to net share settlement of stock-based compensation | (2,018) | (2,018) | ||||
Adjustments related to the acquisition of Rambler On | (5,832) | (3,852) | (1,980) | |||
Acquisition of noncontrolling interest | 0 | 2,186 | (2,186) | |||
Dividends | (2,216) | (2,216) | ||||
Other comprehensive income (loss) | 43 | 43 | ||||
Net income | 15,401 | 15,401 | ||||
Balance at end of the period (in shares) at Dec. 30, 2017 | 81,535 | |||||
Balance at end of the period at Dec. 30, 2017 | (76,231) | $ 815 | 219,095 | (296,184) | 43 | 0 |
Increase (decrease) in stockholders equity | ||||||
Stock-based compensation | 13,247 | 13,247 | ||||
Exercise of options (in shares) | 560 | |||||
Exercise of options | 262 | $ 6 | 256 | |||
Shares withheld related to net share settlement of stock-based compensation (in shares) | (2) | |||||
Shares withheld related to net share settlement of stock-based compensation | (57) | (57) | ||||
Dividends | (1,683) | (1,683) | ||||
Other comprehensive income (loss) | (137) | (137) | ||||
Net income | 57,763 | 57,763 | ||||
Issuance of common stock upon initial public offering, net of offering costs (in shares) | 2,500 | |||||
Issuance of common stock upon initial public offering, net of offering costs | 37,774 | $ 25 | 37,749 | |||
Repurchase of common stock (in shares) | (397) | |||||
Repurchase of common stock | (1,967) | $ (4) | (1,963) | |||
Balance at end of the period (in shares) at Dec. 29, 2018 | 84,196 | |||||
Balance at end of the period at Dec. 29, 2018 | 28,971 | $ 842 | 268,327 | (240,104) | (94) | 0 |
Increase (decrease) in stockholders equity | ||||||
Stock-based compensation | 52,332 | 52,332 | ||||
Exercise of options (in shares) | 3,023 | |||||
Exercise of options | 3,561 | $ 30 | 3,531 | |||
Shares withheld related to net share settlement of stock-based compensation (in shares) | (445) | |||||
Shares withheld related to net share settlement of stock-based compensation | (13,516) | $ (4) | (13,512) | |||
Dividends | (375) | (375) | ||||
Other comprehensive income (loss) | 98 | 98 | ||||
Net income | 50,434 | 50,434 | ||||
Balance at end of the period (in shares) at Dec. 28, 2019 | 86,774 | |||||
Balance at end of the period at Dec. 28, 2019 | $ 122,005 | $ 868 | $ 310,678 | $ (189,545) | $ 4 | $ 0 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Cash Flows from Operating Activities: | |||
Net income | $ 50,434 | $ 57,763 | $ 15,401 |
Adjustments to reconcile net income to cash provided by operating activities: | |||
Depreciation and amortization | 28,959 | 24,777 | 20,769 |
Amortization of deferred financing fees | 2,189 | 3,425 | 2,950 |
Stock-based compensation | 52,332 | 13,247 | 13,393 |
Deferred income taxes | 15,615 | 2,226 | 8,500 |
Impairment of long-lived assets | 616 | 2,209 | 0 |
Loss on modification or extinguishment of debt | 643 | 694 | 0 |
Changes in operating assets and liabilities: | |||
Accounts receivable, net | (19,940) | 7,675 | (29,909) |
Inventory | (40,541) | 29,583 | 71,040 |
Other current assets | (6,798) | (5,089) | 17,915 |
Accounts payable and accrued expenses | 6,614 | 43,740 | 27,992 |
Taxes payable | (3,101) | (5,876) | (12,805) |
Other | (129) | 1,694 | 12,505 |
Net cash provided by operating activities | 86,893 | 176,068 | 147,751 |
Cash Flows from Investing Activities: | |||
Purchases of property and equipment | (32,077) | (20,860) | (42,197) |
Additions of intangibles, net | (16,614) | (11,027) | 4,926 |
Changes in notes receivables | 0 | 0 | 1,416 |
Cash paid to Rambler On for acquisition | 0 | 0 | (2,867) |
Proceeds from sale of long-lived assets | 0 | 165 | 0 |
Net cash used in investing activities | (48,691) | (31,722) | (38,722) |
Cash Flows from Financing Activities: | |||
Proceeds from borrowings on Term Loan A in connection with amendment | 66,238 | 0 | 0 |
Repayments of Term Loan A in connection with amendment | (64,250) | 0 | 0 |
Repayments of long-term debt | (34,875) | (151,788) | (45,550) |
Payments of deferred financing fees | (2,135) | 0 | (1,957) |
Changes in revolving line of credit | 0 | 0 | (20,000) |
Proceeds from employee stock transactions | 3,561 | 262 | 99 |
Taxes paid in connection with employee stock transactions | (13,516) | (57) | (2,018) |
Cash paid for repurchase of common stock | 0 | (1,967) | 0 |
Proceeds from issuance of common stock, net of offering costs | 0 | 38,083 | 0 |
Options Dividends | (636) | (2,523) | (2,811) |
Finance lease principal payment | 74 | 0 | 0 |
Net cash used in financing activities | (45,687) | (117,990) | (72,237) |
Non-cash Investing Activities: | |||
Changes related to acquisition of Rambler On | 0 | 0 | (4,432) |
Total non-cash investing activities | 0 | 0 | (4,432) |
Effect of exchange rate changes on cash | (51) | 45 | (1) |
Net (decrease) increase in cash | (7,536) | 26,401 | 32,359 |
Cash, beginning of period | 80,051 | 53,650 | 21,291 |
Cash, end of period | $ 72,515 | $ 80,051 | $ 53,650 |
ORGANIZATION AND SIGNIFICANT AC
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 28, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES | ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES Organization and Business YETI Holdings, Inc. acquired the operations of YETI Coolers, LLC ( “ 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 through our wholesale channel, including independent retailers, national, and regional accounts across a wide variety of end user markets, as well as through our direct-to-consumer channel ( “ DTC ” ), primarily our e-commerce website. We operate in the U.S., Canada, Australia, New Zealand, Europe, Hong Kong, China, and Japan. 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. Basis of Presentation and Principles of Consolidation The consolidated financial statements and accompanying notes are prepared in accordance with accounting principles generally accepted in the United States of America ( “ GAAP ” ) and the rules of the U.S. Securities and Exchange Commission ( “ SEC ” ). The consolidated financial statements include our accounts and those of our wholly-owned subsidiaries and variable interest entities ( “ VIEs ” ) of which we are the primary beneficiary. A VIE is required to be consolidated by its primary beneficiary which is generally defined as the party who has (a) the power to direct the activities of a VIE that most significantly impact the VIE’s economic performance and (b) the obligation to absorb losses of the VIE or the right to receive benefits that could potentially be significant to the VIE. We evaluate our relationships with VIEs on an ongoing basis to determine whether we are their primary beneficiary. Consolidated VIEs are presented as noncontrolling interests. Intercompany balances and transactions are eliminated in consolidation. In preparing the consolidated financial statements, we make estimates and judgments that affect the reported amounts of assets, liabilities, sales, expenses, and related disclosure of contingent assets and liabilities. We re-evaluate our estimates on an ongoing basis. Our estimates are based on historical experience and various other assumptions that we believe to be reasonable under the circumstances. Due to the uncertainty inherent in these estimates, actual results may differ from these estimates and could differ based upon other assumptions or conditions. Change of Fiscal Year End Effective January 1, 2017, we converted our fiscal year end from a calendar year ending December 31 to a 52- to 53-week 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. Fiscal year 2020 will be a 53-week period. This change did not have a material effect on our consolidated financial statements, and therefore we did not retrospectively adjust our financial statements. The consolidated financial results represent the fiscal years ending December 28, 2019 ( “ 2019 ” ), December 29, 2018 ( “ 2018 ” ), and December 30, 2017 ( “ 2017 ” ). Accounts Receivable Accounts receivable are carried at original invoice amount less an estimated allowance for doubtful accounts. We make ongoing estimates relating to our ability to collect our accounts receivable and maintain an allowance for estimated losses resulting from the inability of our customers to make required payments. In determining the amount of the allowance, we consider our historical level of credit losses and make judgments about the credit worthiness of our customers based on ongoing credit evaluations and their payment trends. Accounts receivable are uncollateralized customer obligations due under normal trade terms typically requiring payment within 30 to 90 days of sale. Receivables are written off when deemed uncollectible. Recoveries of trade receivables previously written off are recorded to income when received. Our allowance for doubtful accounts was $0.0 million as of December 28, 2019 and $0.1 million as of December 29, 2018, respectively. Advertising Advertising costs are expensed in the period in which the advertising occurs and included in selling, general and administrative expenses in our consolidated statements of operations. Advertising costs were $39.0 million, $27.5 million, and $26.5 million for 2019, 2018, and 2017, respectively. At December 28, 2019 and December 29, 2018, prepaid advertising costs were $0.4 million and $1.3 million, respectively. Cash We maintain our cash in bank deposit accounts which, at times, may exceed federally insured limits. We have not historically experienced any losses in such accounts. Comprehensive Income Our comprehensive income is determined based on net income adjusted for gains and losses on foreign currency translation adjustments. Concentration of Risk We are exposed to risk due to our concentration of business activity with certain third-party contract manufacturers of our products. For our hard coolers, soft coolers, Drinkware, and bags our two largest manufacturers comprised approximately 90%, 48%, 81%, and 79%, respectively, of our production volume during 2019. For our cargo, outdoor living, and pets products, two manufacturers accounted for all of the production of each product in 2019. Deferred Financing Fees Costs incurred upon the issuance of our debt instruments are capitalized and amortized over the life of the associated debt instrument on a straight-line basis, in a manner that approximates the effective interest method. If the debt instrument is retired before its scheduled maturity date, any remaining issuance costs associated with that debt instrument are expensed in the same period. Deferred financing fees related to our $450.0 million senior secured Credit Facility are reported in “ Long-term debt, net of current portion ” as a direct reduction of the carrying amount of our outstanding long-term debt. At December 28, 2019 and December 29, 2018, the amortization of deferred financing fees included in interest expense was $2.2 million and $3.4 million, respectively. 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 carries a variable interest rate that is based on the London Interbank Offered Rate ( “ LIBOR ” ). Foreign Currency Translation and Foreign Currency Transactions Adjustments resulting from translating foreign functional currency financial statements into U.S. dollars are included in the foreign currency translation adjustment, a component of accumulated other comprehensive income. For consolidation purposes, the assets and liabilities of our subsidiaries whose functional currency is not the U.S. dollar are translated into U.S. dollars using the exchange rate on the balance sheet date. Revenues and expenses are translated at average rates prevailing during the period. The gains and losses resulting from translation of financial statements of foreign subsidiaries are recorded as a separate component of accumulated other comprehensive income. Goodwill and Intangible Assets Goodwill and intangible assets are recorded at cost, or at their estimated fair values at the date of acquisition. We review goodwill and indefinite-lived intangible assets for impairment annually in the fourth quarter of each fiscal year or on an interim basis whenever events or changes in circumstances indicate the fair value of such assets may be below their carrying amount. In conducting our annual impairment test, we first review qualitative factors to determine whether it is more likely than not that the fair value of the asset is less than its carrying amount. If factors indicate that the fair value of the asset is less than its carrying amount, we perform a quantitative assessment of the asset, analyzing the expected present value of future cash flows to quantify the amount of impairment, if any. We perform our annual impairment tests in the fourth quarter of each fiscal year. For our annual goodwill impairment tests in the fourth quarters of 2019 and 2018, we performed a qualitative assessment to determine whether the fair value of goodwill was more likely than not less than the carrying value. Based on economic conditions and industry and market considerations, we determined that it was more likely than not that the fair value of goodwill was greater than its carrying value; therefore, the quantitative impairment test was not performed. Therefore, we did not record any goodwill impairment for the years 2019 and 2018. Our intangible assets consist of indefinite-lived intangible assets, including tradename, trademarks, trade dress, and definite-lived intangible assets such as customer relationships, trademarks, patents, non-compete agreements, and other intangibles assets, such as copyrights and domain name. Tradename, customer relationships, and non-compete agreements resulted from our acquisition of Coolers in 2012. We also capitalize the costs of acquired trademarks, trade dress, patents and other intangibles, such as copyrights and domain name assets. In addition, external legal costs incurred in the defense of our patents and trademarks are capitalized when we believe that the future economic benefit of the intangible asset will be increased, and a successful defense is probable. In the event of a successful defense, the settlements received are netted against the external legal costs that were capitalized. Capitalized patent and trademark defense costs are amortized over the remaining useful life of the asset. Where the defense of the patent and trademark maintains rather than increases the expected future economic benefits from the asset, the costs would generally be expensed as incurred. The external legal costs incurred and settlements received may not occur in the same period. Costs incurred during 2017, 2018, and 2019 primarily relate to external legal costs incurred in the defense of our patents and trademarks, net of settlements received. Income Taxes We provide for taxes at the enacted rate applicable for the appropriate tax jurisdictions. Deferred taxes are provided on an asset and liability method, which requires the recognition of deferred tax assets and liabilities for expected future consequences of temporary differences between the financial reporting and income tax bases of assets and liabilities using enacted tax rates. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Tax filing positions are evaluated, and we recognize the largest amount of tax benefit that is more likely than not to be sustained upon examination by the taxing authorities based on the technical merits of the tax position. Settlements with tax authorities, the expiration of statutes of limitations for particular tax positions, or obtaining new information on particular tax positions may cause a change to the effective tax rate. We recognize interest and penalties related to unrecognized tax benefits in the provision for income taxes in the consolidated statements of operations. On December 22, 2017, U.S. federal tax legislation, commonly referred to as the Tax Cuts and Jobs Act ( “ the Tax Act ” ), was signed into law, significantly reforming the U.S. Internal Revenue Code. The Tax Act had a substantial impact on our income tax expense for the year ended December 30, 2017, primarily due to the revaluation of our net deferred tax asset based on a prospective U.S. federal income tax rate of 21%. See Note 15 for further discussion. Inventories Inventories are comprised primarily of finished goods and are generally valued at the lower of weighted-average cost or net realizable value. Net realizable value is defined as the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. We make ongoing estimates relating to the net realizable value of inventories based upon our assumptions about future demand and market conditions. Property and Equipment We record property and equipment at their original acquisition costs and we depreciate them based on a straight-line method over their estimated useful lives. Expenditures for repairs and maintenance are expensed as incurred, while asset improvements that extend the useful life are capitalized. The useful lives for property and equipment are as follows: Leasehold improvements lesser of 10 years, remaining lease term, or estimated useful life of the asset Molds and tooling 3 - 5 years Furniture and equipment 3 - 7 years Computers and software 3 - 7 years Research and Development Costs Research and development costs are expensed as incurred. Employee compensation, including non-cash stock-based compensation expense, and miscellaneous supplies are included in research and development costs within selling, general, and administrative expenses. Research and development expenses were $20.5 million, $10.8 million, and $8.8 million, for 2019, 2018, and 2017, respectively. The increase in research and development costs in 2019 relates primarily to one-time non-cash stock-based compensation expense related to pre-IPO performance-based restricted stock units that vested and were fully recognized in the fourth quarter of 2019. See Note 11 for further discussion. Revenue Recognition As discussed in the “Recently Adopted Accounting Standards” section below, we adopted the new revenue recognition standard at the beginning of 2019. Revenue transactions associated with the sale of YETI branded coolers, equipment, drinkware, apparel and accessories comprise a single performance obligation, which consists of the sale of products to customers either through wholesale or DTC channels. Revenue is recognized when performance obligations are satisfied through the transfer of control of promised goods to the customers, based on the terms of sale. The transfer of control typically occurs at a point in time based on consideration of when the customer has an obligation to pay for the goods, and physical possession of, legal title to, and the risks and rewards of ownership of the goods has been transferred, and the customer has accepted the goods. Revenue from wholesale transactions is generally recognized at the time products are shipped based on contractual terms with the customer. Revenue from our DTC channel is generally recognized at the point of sale in our retail stores and at the time products are shipped for e-commerce transactions and corporate sales based on contractual terms with the customer. Revenue is recognized net of estimates of variable consideration, including product returns, customer discounts and allowances, sales incentive programs, and miscellaneous claims from customers. We determine these estimates based on contract terms, evaluations of historical experience, anticipated trends, and other factors. The actual amount of customer returns and customer allowances, which is inherently uncertain, may differ from our estimates. The duration of contractual arrangements with our customers is typically less than one year. Payment terms with wholesale customers vary depending on creditworthiness and other considerations, with the most common being net 30 days. Payment is due at the time of sale for retail store transactions and at the time of shipment for e-commerce transactions. Certain products that we sell include a limited warranty which does not meet the definition of a performance obligation within the context of the contract. Product warranty costs are estimated based on historical and anticipated trends and are recorded as cost of goods sold at the time revenue is recognized. Revenue from the sale of gift cards is initially deferred and recognized as a contract liability until the gift card is redeemed by the customer. We elected to account for shipping and handling as fulfillment activities, and not as separate performance obligations. Shipping and handling fees billed to customers are included in net sales. All shipping and handling activity costs are recognized as selling, general and administrative expenses at the time the related revenue is recognized. Sales taxes collected from customers and remitted directly to government authorities are excluded from net sales and cost of goods sold. Our terms of sale provide limited return rights. We may accept, and have at times accepted, returns outside our terms of sale at our sole discretion. We may also, at our sole discretion, provide our retail partners with sales discounts and allowances. We record estimated sales returns, discounts, and miscellaneous customer claims as reductions to net sales at the time revenues are recorded. We base our estimates upon historical experience and trends, and upon approval of specific returns or discounts. Actual returns and discounts in any future period are inherently uncertain and thus may differ from our estimates. If actual or expected future returns and discounts were significantly greater or lower than the reserves we had established, we would record a reduction or increase to net sales in the period in which we made such determination. For periods prior to adoption, revenue was recognized when persuasive evidence of an arrangement existed, and title and risks of ownership had passed to the customer, based on the terms of sale. Goods were usually shipped to customers with free-on-board (“FOB”) shipping point terms; however, our practice was to bear the responsibility of the delivery to the customer. In the case that product was lost or damaged in transit to the customer, we generally took the responsibility to provide new product. In effect, we applied a synthetic FOB destination policy and therefore recognized revenue when the product was delivered to the customer. For our national accounts, delivery of our products typically occurred at shipping point, as such customers took delivery at our distribution center. Segment Information We report our operations as a single reportable segment and manage our business as a single-brand consumer products business. This is supported by our operational structure, which includes sales, research, product design, operations, marketing, and administrative functions focused on the entire product suite rather than individual product categories. Our chief operating decision maker does not regularly review financial information for individual product categories, sales channels, or geographic regions that would allow decisions to be made about allocation of resources or performance. Shipping and Handling Costs Amounts charged to customers for shipping and handling are included in net sales. Our cost of goods sold includes inbound freight charges for product delivery from our third-party contract manufacturers. The cost of product shipment to our customers, which is included in selling, general and administrative expenses in our consolidated statements of operations, was $39.9 million, $30.2 million, and $25.9 million for 2019, 2018, and 2017, respectively. Stock-Based Compensation We award stock-based compensation to employees and directors under the YETI Holdings, Inc. 2018 Equity and Incentive Compensation Plan (the “ 2018 Plan ”) . We measure compensation expense for all stock-based awards at fair value on the date of grant and recognize compensation expense over the service period for awards expected to vest. We use the Black-Scholes-Merton (“Black-Scholes”) option pricing model to determine the fair value of stock option awards. If any of the assumptions used in the Black-Scholes model changes significantly, stock-based compensation expense for future option awards may differ materially compared with the awards granted previously. Costs relating to stock-based compensation are recognized in selling, general, and administrative expenses in our consolidated statements of operations, and forfeitures are recognized as they occur. See Note 11 for further discussion. Valuation of Long-Lived Assets We assess the recoverability of our long-lived assets, which include property and equipment, operating lease right-of-use-assets, and definite-lived intangible assets, for impairment whenever events or changes in circumstances indicate the carrying amount of such assets may not be recoverable. An impairment loss on our long-lived assets exists when the estimated undiscounted cash flows expected to result from the use of the asset and its eventual disposition are less than its carrying amount. If the carrying amount exceeds the sum of the undiscounted cash flows, an impairment charge is recognized based on the amount by which the carrying amount of the assets exceeds the estimated fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount or estimated fair value less costs to sell. Variable Interest Entities We evaluate our financial interests in business enterprises to determine if they represent VIEs of which we are the primary beneficiary. If such criteria are met (as discussed above in “ Basis of Presentation and Principles of Consolidation ” ), we reflect these entities as consolidated subsidiaries. In 2017, we acquired acquired Rambler On, which was a VIE, as discussed in Note 3. Warranty Warranty liabilities are recorded at the time of sale for the estimated costs that may be incurred under the terms of our limited warranty. We make and revise these estimates primarily based on the number of units under warranty, historical experience of warranty claims, and an estimated per unit replacement cost. The liability for warranties is included in accrued expenses in our consolidated balance sheets. The specific warranty terms and conditions vary depending upon the product sold, but are generally warranted against defects in material and workmanship ranging from three Emerging Growth Company Status We were an “ emerging growth company ” as defined in the Jumpstart Our Business Startups Act of 2012 ( “ JOBS Act). Under the JOBS Act, emerging growth companies can delay adopting new or revised financial accounting standards until such time as those standards apply to private companies. We elected to use the extended transition period for complying with the adoption of new or revised accounting standards and as a result of this election, our financial statements may not be comparable to companies that comply with public company effective dates. As of June 28, 2019, the last business day of our most recently completed second fiscal quarter, the market value of our common stock that was held by non-affiliates was greater than $700 million. As a result, we became a large accelerated filer and no longer qualified as an emerging growth company on December 28, 2019, the end of our current fiscal year. Accordingly, we no longer qualify for the provisions of the JOBS Act that allow companies to adopt new or revised accounting standards when required by private company accounting standards. Recently Adopted Accounting Pronouncements In February 2016, the Financial Accounting Standards Board ( “ FASB ” ) issued Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842) , a new accounting standard on leasing. The FASB subsequently issued updates to the standard to provide additional clarification on specific topics, including permitted transition methods. Collectively, the guidance is referred to as FASB Accounting Standards Codification (“ASC”) 842 (“ASC 842”). ASC 842 requires companies to recognize right-of-use (“ROU”) assets and corresponding lease liabilities on the balance sheet for leases with lease terms greater than twelve months, and also retains a dual model approach for assessing lease classification and recognizing expense. We adopted ASC 842 effective December 30, 2018, the first day of fiscal year 2019 using the modified retrospective transition method. We applied the transition provision for ASC 842 at our adoption date instead of at the earliest comparative period presented in our financial statements and, therefore, we recognized and measured leases existing at December 30, 2018, but without retrospective application. ASC 842 also requires enhanced disclosures regarding the amount, timing and uncertainty of cash flows arising from leases. The most significant impact was the recognition of ROU lease assets of $37.8 million and corresponding operating lease liabilities of $50.0 million and finance lease assets of $1.1 million and corresponding lease liabilities of $1.1 million, each as of December 28, 2019, on our balance sheet along with certain incremental disclosures. The difference between the operating lease ROU assets and operating lease liabilities primarily represents the existing deferred rent and tenant improvement allowance liabilities balance, resulting from historical straight-lining of operating leases, which were effectively reclassified upon adoption to reduce the measurement of leased assets. See Note 6 for further discussion. The impact of the adoption of ASC 842 on previously reported interim financial statements included the recognition of ROU assets and lease liabilities for operating leases. The adoption of ASC 842 had no impact to previously reported results of operations for any interim period. In July 2019, the FASB issued ASU 2019-07, Codification Updates to SEC Sections . ASU 2019-07 clarifies the disclosure and presentation requirements of a variety of codification topics by more closely aligning them with the SEC disclosure rules and regulations, eliminating redundancies and simplifying application of the codification. ASU 2019-07 is effective upon issuance and it did not have a material impact to our consolidated financial statements or related disclosures. In May 2018, the FASB issued ASU 2018-07, Compensation – Stock Compensation (Topic 718) , which conformed the current non-employee share-based accounting standard with employee share-based accounting. We elected to adopt this standard early, on June 30, 2019, the first day of the third quarter of 2019, and such adoption did not have a material impact on our consolidated financial statements or related disclosures. In the first quarter of 2019, we adopted ASC Topic 606, Revenue from Contracts with Customers (“ASC 606”), using the modified retrospective transition method and applying this approach to contracts not completed as of the date of adoption. ASC 606 establishes a single comprehensive model for entities to use in accounting for revenue under GAAP and requires companies to recognize revenue in a way that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASC 606 also requires certain disclosures regarding qualitative and quantitative information with respect to the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. The adoption of ASC 606 resulted in a net decrease of $0.5 million to accumulated deficit as of December 30, 2018. The cumulative effect adjustment primarily related to revenue that would have been recognized in the prior period for certain wholesale transactions and substantially all e-commerce transactions at the time of shipment, rather than upon delivery to the customer, based on our evaluation of the transfer of control of the goods. Comparative prior period information has not been restated and continues to be reported in accordance with accounting standards in effect for those periods. See Note 2 for additional revenue disclosures. Under ASC 606, an asset for the estimated cost of inventory expected to be returned is now recognized separately from the liability for sales-related reserves. This resulted in an increase in prepaid expenses and other current assets and an increase in accrued expenses and other current liabilities on our consolidated balance sheets as of December 28, 2019. As mentioned above, the adoption of ASC 606 impacted the timing of revenue recognized related to sales for certain wholesale transactions and substantially all e-commerce transactions, resulting in earlier recognition of such sales. Additionally, miscellaneous claims from customers are now recognized in net sales. Previously, these costs were recorded in selling, general and administrative expenses. The following tables compare consolidated financial statements reported in accordance with the requirements of ASC 606 to the amounts that would have been reported had the new standard not been applied (in thousands): Year Ended December 28, 2019 As Reported Impact of Adoption Balances without Adoption of ASC 606 Net sales $ 913,734 $ (2,091) $ 911,643 Cost of goods sold 438,420 (529) 437,891 Gross profit 475,314 (1,562) 473,752 Selling, general, and administrative expenses 385,543 451 385,994 Operating income 89,771 (2,013) 87,758 Interest expense (21,779) — (21,779) Other income (734) — (734) Income before income taxes 67,258 (2,013) 65,245 Income tax expense (16,824) 494 (16,330) Net income $ 50,434 $ (1,519) $ 48,915 December 28, 2019 As Reported Impact of Adoption Balances without Adoption of ASC 606 ASSETS Accounts receivable, net $ 82,688 $ (3,550) $ 79,138 Inventory 185,700 876 186,576 Prepaid expenses and other current assets 19,644 (197) 19,447 Deferred charges and other assets 2,389 2 2,391 LIABILITIES AND STOCKHOLDERS’ EQUITY Accrued expenses and other current liabilities 42,088 (850) 41,238 Taxes payable 3,329 — 3,329 Accumulated deficit (189,545) (2,019) (191,564) The adjustments above do not have an impact on net cash used in operating activities; however, they do impact the changes in operating assets and liabilities for the related accounts within the disclosure of operating activities on our consolidated statement of cash flows. Recent Accounting Guidance Not Yet Adopted In June 2016, the FASB issued ASU 2016-13, Measurement of Credit Losses on Financial Instruments , and also subsequently issued amendments to the initial guidance, in ASU 2018-19, ASU 2019-04, and ASU 2019-05. ASU 2016-13 replaces the current incurred loss impairment method with a method that reflects expected credit losses on financial instruments. In November 2018, the FASB issued update ASU 2018-19, clarifying the scope of ASU 2016-13. In April 2019, the FASB issued updated ASU 2019-04, clarifying that equity instruments without readily determinable fair values for which an entity has elected the measurement alternative should be remeasured to fair value as of the date that an observable transaction occurred. In May 2019, the FASB issued ASU 2019-05, which provides an option to irrevocably elect to measure certain individual financial assets at fair value instead of amortized cost. The new standard is effective for fiscal years beginning after December 15, 2019, and early adoption is permitted. Because we anticipate that we will no longer qualify as an emerging growth company as of December 28, 2019, we expect to adopt this standard in the first quarter of |
REVENUE
REVENUE | 12 Months Ended |
Dec. 28, 2019 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE | REVENUE Contract Balances Accounts receivable represent an unconditional right to receive consideration from a customer and are recorded at net invoiced amounts, less an estimated allowance for doubtful accounts. Contract liabilities are recorded when the customer pays consideration before the transfer of a good to the customer and thus represent our obligation to transfer the good to the customer at a future date. Our primary contract liabilities relate to payment advances for certain customized product transactions and gift cards. We recognize contract liabilities as revenue once all performance obligations have been satisfied. The following table provides information about accounts receivable and contract liabilities at the periods indicated (in thousands): December 28, 2019 At Adoption - December 30, 2018 (1) Accounts receivable, net $ 82,688 $ 60,336 Contract liabilities (4,499) (9,457) ________________________________________ (1) We adopted ASC 606 on December 30, 2018. See Note 1 for additional information. During the year ended December 28, 2019, we recognized $9.2 million of revenue that was previously included in the contract liability balance at the beginning of the period. The change in the contract liability balance primarily results from timing differences between the customer’s payment and our satisfaction of performance obligations. Disaggregation of Revenue The following table disaggregates our net sales by channel, product category, and geography for the periods indicated (in thousands): 2019 2018 (1) 2017 (1) Net Sales by Channel Wholesale $ 527,634 $ 491,431 $ 444,854 Direct-to-consumer 386,100 287,402 194,385 Total net sales $ 913,734 $ 778,833 $ 639,239 Net Sales by Category Coolers & Equipment $ 368,874 $ 331,224 $ 312,237 Drinkware 526,241 424,164 310,287 Other 18,619 23,445 16,715 Total net sales $ 913,734 $ 778,833 $ 639,239 Net Sales by Geographic Region United States $ 873,867 $ 761,880 $ 635,195 International 39,867 16,953 4,044 Total net sales $ 913,734 $ 778,833 $ 639,239 _________________________________________ (1) Prior year information is presented in accordance with accounting guidance in effect during that period and has not been updated to reflect the impact of ASC 606. See Note 1 for additional information. |
ACQUISITION
ACQUISITION | 12 Months Ended |
Dec. 28, 2019 | |
Business Combinations [Abstract] | |
ACQUISITION | ACQUISITIONS Intellectual Property Acquisition In March 2019, we acquired the intellectual property rights related to the YETI brand across several jurisdictions, primarily in Europe and Asia, for approximately $9.1 million, pursuant to certain purchase agreements we entered into with a European outdoor retailer. The intellectual property rights include trademark registrations and applications for YETI formative trademarks for goods and services, as well as domain names that include the YETI trademark. The purchase price has been allocated to trademarks. Rambler On Acquisition In May 2017, we acquired substantially all of the assets of Rambler On, at the time our exclusive drinkware customization partner, for $6.0 million in addition to assuming certain enumerated liabilities of Rambler On ( “ Rambler On Acquisition ” ). Intangible assets resulting from the acquisition of Rambler On LLC ( “ Rambler On ” ) in 2017 were $3.7 million. We paid the consideration for the Rambler On Acquisition by making total cash payments of $2.9 million and by issuing a promissory note to Rambler On for a principal amount of $3.0 million with a two years term and bearing interest at 5% per annum, payable in two equal installments on May 16, 2018 and May 16, 2019. Additionally, all of the outstanding notes between YETI and Rambler On prior to the Rambler On Acquisition were forgiven. See Notes 9 and 13 for additional information on the Rambler On promissory note. Prior to the Rambler On Acquisition, we did not have any ownership interest in Rambler On. In August 2016, we concluded that Rambler On was a VIE of which we were the primary beneficiary. In making this conclusion, we evaluated the activities that significantly impacted the economics of the VIE, including a number of secured promissory notes owed to us from Rambler On and the determination that Rambler On did not have sufficient resources to finance its activities without additional support from us. We consolidated Rambler On due to our conclusion that Rambler On was a VIE of which we are the primary beneficiary. |
PREPAID EXPENSES AND OTHER CURR
PREPAID EXPENSES AND OTHER CURRENT ASSETS | 12 Months Ended |
Dec. 28, 2019 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
PREPAID EXPENSES AND OTHER CURRENT ASSETS | PREPAID EXPENSES AND OTHER CURRENT ASSETS Prepaid expenses and other current assets include the following (in thousands): December 28, December 29, Prepaid expenses $ 15,052 $ 8,980 Prepaid taxes 1,374 308 Other 3,218 2,923 Total prepaid expenses and other current assets $ 19,644 $ 12,211 |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 12 Months Ended |
Dec. 28, 2019 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT | PROPERTY AND EQUIPMENT Property and equipment consisted of the following at the dates indicated (in thousands): December 28, December 29, Production molds, tooling, and equipment $ 56,375 $ 45,614 Furniture, fixtures, and equipment 7,721 5,752 Computers and software 52,930 41,209 Leasehold improvements 35,419 29,079 Finance leases 1,208 — Property and equipment — gross 153,653 121,654 Accumulated depreciation (71,043) (47,557) Property and equipment — net $ 82,610 $ 74,097 Depreciation expense was $23.2 million, $19.5 million, and $15.4 million for 2019, 2018, and 2017, respectively. Geographic Information Property and equipment, net by geographical region was as follows as of the dates indicated (in thousands): December 28, December 29, United States $ 70,672 $ 65,831 International 11,938 8,266 Property and equipment, net $ 82,610 $ 74,097 |
LEASES
LEASES | 12 Months Ended |
Dec. 28, 2019 | |
Leases [Abstract] | |
LEASES | LEASES We determine if an arrangement is or contains a lease at contract inception and determines its classification as an operating or finance lease at lease commencement. We lease certain retail locations, office space, distribution facilities, manufacturing space, and machinery and equipment. While the substantial majority of these leases are operating leases, certain machinery and equipment agreements are finance leases. As of December 28, 2019, the initial lease terms of the various leases range from one Operating lease assets represent the right to use an underlying asset for the lease term, and operating lease liabilities represent the obligation to make lease payments arising from the lease. These assets and liabilities are recognized based on the present value of future payments over the lease term at commencement date. We use our collateralized incremental borrowing rate based on the information available at commencement date, including lease term, in determining the present value of future payments. Our operating leases also typically require payment of real estate taxes, common area maintenance and insurance. These components compromise the majority of our variable lease cost and are excluded from the present value of our lease obligations. In instances where they are fixed, they are included due to our election to combine lease and non-lease components, with the exception of our distribution facility asset class. Operating lease assets include prepaid lease payments and initial direct costs and are reduced by lease incentives. Our lease terms generally do not include options to extend or terminate the lease unless it is reasonably certain that the option will be exercised. Fixed payments may contain predetermined fixed rent escalations. We recognize the related rent expense on a straight-line basis from the commencement date to the end of the lease term. The following table presents the assets and liabilities related to operating and finance leases (in thousands): Balance Sheet Location December 28, 2019 Assets: Operating lease assets Operating lease right-of-use assets $ 37,768 Finance lease assets Property, plant and equipment 1,120 Total lease assets $ 38,888 Liabilities: Current Operating lease liabilities Operating lease liabilities $ 7,768 Finance lease liabilities Current maturities of long-term debt 185 Non-current Operating lease liabilities Operating lease liabilities, non-current 42,200 Finance lease liabilities Long-term debt, net of current portion 950 Total lease liabilities $ 51,103 The following table presents the components of lease costs (in thousands): Year Ended December 28, 2019 Operating lease costs $ 8,002 Finance lease cost - amortization of right-of-use assets 88 Finance lease cost - interest on lease liabilities 30 Short-term lease cost 249 Variable lease cost 2,806 Sublease income (743) Total lease cost $ 10,432 The following table presents lease terms and discount rates: December 28, 2019 Weighted average remaining lease term: Operating leases 7.01 years Finance leases 4.68 years Weighted average discount rate: Operating leases 6.62 % Finance leases 6.24 % Minimum lease payments have not been reduced by minimum sublease rentals of $4.1 million due in the future under non-cancelable subleases. We received $0.7 million and $0.4 million in sublease income for 2019 and 2018, respectively. We did not receive any sublease income for 2017. The following table presents the minimum lease payment obligations of operating and finance lease liabilities (leases with terms in excess of one year) for the next five years and thereafter as of December 28, 2019 (in thousands): Operating Leases Finance Leases Total 2020 $ 10,261 $ 249 $ 10,510 2021 9,843 249 10,092 2022 7,505 249 7,754 2023 7,716 249 7,965 2024 7,474 330 7,804 Thereafter 20,048 — 20,048 Total lease payments 62,847 1,326 64,173 Less: Effect of discounting to net present value 12,879 191 13,070 Present value of lease liabilities $ 49,968 $ 1,135 $ 51,103 The following table presents supplemental cash flow information related to our leases (in thousands): December 28, 2019 Cash paid for amounts included in measurement of liabilities: Operating cash flows used in operating leases $ 8,469 Operating cash flows used in finance leases 30 Financing cash flows used in finance leases 74 Right-of-use assets obtained in exchange for new lease liabilities: Finance leases 1,208 Operating leases 10,015 Disclosures Related to Periods Prior to Adoption of ASC 842 The following table presents future minimum lease payment obligations under our non-cancelable operating leases with lease terms in excess of one year as of December 29, 2018, prior to the adoption of ASC 842 (in thousands): Operating Leases 2019 $ 4,670 2020 5,024 2021 4,405 2022 4,486 2023 4,627 Thereafter 23,047 Total lease payments $ 46,259 |
LEASES | LEASES We determine if an arrangement is or contains a lease at contract inception and determines its classification as an operating or finance lease at lease commencement. We lease certain retail locations, office space, distribution facilities, manufacturing space, and machinery and equipment. While the substantial majority of these leases are operating leases, certain machinery and equipment agreements are finance leases. As of December 28, 2019, the initial lease terms of the various leases range from one Operating lease assets represent the right to use an underlying asset for the lease term, and operating lease liabilities represent the obligation to make lease payments arising from the lease. These assets and liabilities are recognized based on the present value of future payments over the lease term at commencement date. We use our collateralized incremental borrowing rate based on the information available at commencement date, including lease term, in determining the present value of future payments. Our operating leases also typically require payment of real estate taxes, common area maintenance and insurance. These components compromise the majority of our variable lease cost and are excluded from the present value of our lease obligations. In instances where they are fixed, they are included due to our election to combine lease and non-lease components, with the exception of our distribution facility asset class. Operating lease assets include prepaid lease payments and initial direct costs and are reduced by lease incentives. Our lease terms generally do not include options to extend or terminate the lease unless it is reasonably certain that the option will be exercised. Fixed payments may contain predetermined fixed rent escalations. We recognize the related rent expense on a straight-line basis from the commencement date to the end of the lease term. The following table presents the assets and liabilities related to operating and finance leases (in thousands): Balance Sheet Location December 28, 2019 Assets: Operating lease assets Operating lease right-of-use assets $ 37,768 Finance lease assets Property, plant and equipment 1,120 Total lease assets $ 38,888 Liabilities: Current Operating lease liabilities Operating lease liabilities $ 7,768 Finance lease liabilities Current maturities of long-term debt 185 Non-current Operating lease liabilities Operating lease liabilities, non-current 42,200 Finance lease liabilities Long-term debt, net of current portion 950 Total lease liabilities $ 51,103 The following table presents the components of lease costs (in thousands): Year Ended December 28, 2019 Operating lease costs $ 8,002 Finance lease cost - amortization of right-of-use assets 88 Finance lease cost - interest on lease liabilities 30 Short-term lease cost 249 Variable lease cost 2,806 Sublease income (743) Total lease cost $ 10,432 The following table presents lease terms and discount rates: December 28, 2019 Weighted average remaining lease term: Operating leases 7.01 years Finance leases 4.68 years Weighted average discount rate: Operating leases 6.62 % Finance leases 6.24 % Minimum lease payments have not been reduced by minimum sublease rentals of $4.1 million due in the future under non-cancelable subleases. We received $0.7 million and $0.4 million in sublease income for 2019 and 2018, respectively. We did not receive any sublease income for 2017. The following table presents the minimum lease payment obligations of operating and finance lease liabilities (leases with terms in excess of one year) for the next five years and thereafter as of December 28, 2019 (in thousands): Operating Leases Finance Leases Total 2020 $ 10,261 $ 249 $ 10,510 2021 9,843 249 10,092 2022 7,505 249 7,754 2023 7,716 249 7,965 2024 7,474 330 7,804 Thereafter 20,048 — 20,048 Total lease payments 62,847 1,326 64,173 Less: Effect of discounting to net present value 12,879 191 13,070 Present value of lease liabilities $ 49,968 $ 1,135 $ 51,103 The following table presents supplemental cash flow information related to our leases (in thousands): December 28, 2019 Cash paid for amounts included in measurement of liabilities: Operating cash flows used in operating leases $ 8,469 Operating cash flows used in finance leases 30 Financing cash flows used in finance leases 74 Right-of-use assets obtained in exchange for new lease liabilities: Finance leases 1,208 Operating leases 10,015 Disclosures Related to Periods Prior to Adoption of ASC 842 The following table presents future minimum lease payment obligations under our non-cancelable operating leases with lease terms in excess of one year as of December 29, 2018, prior to the adoption of ASC 842 (in thousands): Operating Leases 2019 $ 4,670 2020 5,024 2021 4,405 2022 4,486 2023 4,627 Thereafter 23,047 Total lease payments $ 46,259 |
INTANGIBLE ASSETS
INTANGIBLE ASSETS | 12 Months Ended |
Dec. 28, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS | INTANGIBLE ASSETS Intangible assets consisted of the following at the dates indicated below (dollars in thousands): December 28, 2019 Useful Life Gross Carrying Amount Accumulated Amortization Net Carrying Amount Tradename Indefinite $ 31,363 $ — $ 31,363 Trade dress Indefinite 13,917 — 13,917 Trademarks (1) Indefinite 9,245 — 9,245 Customer relationships 11 years 42,205 (28,947) 13,258 Trademarks 6 - 30 years 19,872 (4,307) 15,565 Patents 4 - 25 years 7,407 (719) 6,688 Non-compete agreements 5 years 2,815 (2,815) — Other intangibles 15 years 1,041 (227) 814 Total intangible assets $ 127,865 $ (37,015) $ 90,850 _________________________________________ (1) During 2019, we acquired trademarks for $9.1 million. See Note 3 for additional information. December 29, 2018 Useful Life Gross Carrying Amount Accumulated Amortization Net Carrying Amount Tradename Indefinite $ 31,363 $ — $ 31,363 Trade dress Indefinite 13,466 — 13,466 Customer relationships 11 years 42,205 (25,110) 17,095 Trademarks 6 - 30 years 14,867 (2,696) 12,171 Patents 4 - 25 years 5,522 (461) 5,061 Non-compete agreements 5 years 2,815 (2,815) — Other intangibles 15 years 1,026 (163) 863 Total intangible assets $ 111,264 $ (31,245) $ 80,019 Amortization expense was $5.8 million, $5.3 million, and $5.4 million, for 2019, 2018, and 2017, respectively. Amortization expense related to intangible assets is expected to be $5.0 million for each of 2020, 2021, 2022, and 2023 and $3.3 million for 2024. |
ACCRUED EXPENSES AND OTHER CURR
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | 12 Months Ended |
Dec. 28, 2019 | |
Payables and Accruals [Abstract] | |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES Accrued expenses and other current liabilities consisted of the following at the dates indicated (in thousands): December 28, December 29, Accrued freight and other operating expenses $ 12,454 $ 13,175 Contract liabilities 4,499 9,457 Customer discounts, allowances, and returns 6,976 7,435 Advertising and marketing 3,300 5,355 Warranty reserve 6,584 4,533 Interest payable 420 459 Other 7,855 12,608 Total accrued expenses and other current liabilities $ 42,088 $ 53,022 |
LONG-TERM DEBT
LONG-TERM DEBT | 12 Months Ended |
Dec. 28, 2019 | |
Debt Disclosure [Abstract] | |
LONG-TERM DEBT | LONG-TERM DEBT Long-term debt consisted of the following at the dates indicated (in thousands): December 28, December 29, Term Loan A, due 2024 $ 300,000 $ 331,388 Finance lease debt 1,135 — Debt owed to Rambler On — 1,500 Total debt 301,135 332,888 Current maturities of long-term debt (15,000) (43,638) Current maturities of finance lease debt (185) — Total long-term debt 285,950 289,250 Unamortized deferred financing fees (4,235) (4,874) Total long-term debt, net $ 281,715 $ 284,376 At December 28, 2019 the future maturities of principal amounts of our debt obligations, excluding finance lease obligations, for the next five years and in total (see Note 6 for future maturities of finance lease obligations), consisted of the following (in thousands): Amount 2020 $ 15,000 2021 22,500 2022 22,500 2023 22,500 2024 217,500 Total $ 300,000 Credit Facility In May 2016, we entered into an agreement providing for the Credit Facility. The Credit Facility provided for: (a) a $100.0 million Revolving Credit Facility maturing on May 19, 2021 (“Revolving Credit Facility”); (b) a $445.0 million term loan A maturing on May 19, 2021 (“Term Loan A” and together with the Revolving Credit Facility, the “Credit Facility”); and (c) a $105.0 million term loan B maturing on May 19, 2022 (“Term Loan B”). All borrowings under our Credit Facility bear interest at a variable rate based on prime, federal funds, or LIBOR plus an applicable margin based on our total net leverage ratio. On July 15, 2017, we amended the Credit Facility to reset the net leverage ratio covenant for the period ending June 2017 and thereafter, and we incurred $2.0 million in additional deferred financing fees. On December 17, 2019, we further amended our Credit Facility which increased the remaining principal amount of Term Loan A from approximately $298.0 million to $300.0 million; increased the commitments under the revolving credit facility from $100.0 million to $150.0 million; extended the maturity date of both Term Loan A and the revolving credit facility from May 19, 2021 to December 17, 2024; revised the leverage ratios and reduced the interest rates spreads and commitment fee payable on the average daily unused amount of the revolving commitment; and revised the scheduled quarterly principal payments of Term Loan A to 1.25% of the remaining aggregate principal amount of Term Loan A for the first year, and 1.875% for the second year and thereafter until the maturity date. As a result of the amendment, we recognized a $0.6 million loss on modification and extinguishment of debt and we capitalized $2.1 million of new lender and third-party fees in the fourth quarter of 2019. As of December 28, 2019, we had no borrowings outstanding under our Revolving Credit Facility. The weighted average interest rate for borrowings under the Revolving Credit Facility was 0.33% at December 28, 2019. The Credit Facility also provides us with the ability to issue up to $20.0 million in letters of credit. 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 December 28, 2019, we had no outstanding letters of credit. The Credit Facility includes customary financial and non-financial covenants limiting, among other things, mergers and acquisitions; investments, loans, and advances; affiliate transactions; changes to capital structure and the business; additional indebtedness; additional liens; the payment of dividends; and the sale of assets, in each case, subject to certain customary exceptions. The Credit Facility contains customary events of default, including payment defaults, breaches of representations and warranties, covenant defaults, defaults under other material debt, events of bankruptcy and insolvency, failure of any guaranty or security document supporting the Credit Facility to be in full force and effect, and a change of control of our business. At December 28, 2019, we were in compliance with the covenants under our Credit Facility. Term Loan A The Term Loan A is a $300.0 million term loan facility, maturing on December 17, 2024. Principal payments of $3.8 million are due quarterly during 2020 and $5.6 million quarterly during 2021 to 2024 with the entire unpaid balance due at maturity. The interest rate on borrowings outstanding under the Term Loan A at December 28, 2019 was 3.99%. Extinguishment of Debt During the fourth quarter of 2018, we voluntarily repaid in full the $47.6 million principal amount and $0.6 million of accrued interest outstanding under our Term Loan B, using the net proceeds from our IPO plus additional cash on hand. As a result of the voluntary repayment of the Term Loan B prior to maturity of December 17, 2024, we recorded a loss from extinguishment of debt of $0.7 million relating to the write-off of unamortized financing fees associated with the Term Loan B. In May 2019, we repaid in full $1.5 million of remaining principal on the unsecured promissory note to Rambler On LLC and $0.1 million of accrued interest outstanding thereon, using cash on hand. |
BENEFIT PLAN
BENEFIT PLAN | 12 Months Ended |
Dec. 28, 2019 | |
Defined Contribution Plan [Abstract] | |
BENEFIT PLAN | BENEFIT PLANWe provide a 401(k)-defined contribution plan covering substantially all our employees, which allows for employee contributions and provides for an employer match. Our contributions totaled approximately $1.1 million, $1.0 million, and $0.7 million for 2019, 2018, and 2017, respectively. |
STOCK BASED COMPENSATION
STOCK BASED COMPENSATION | 12 Months Ended |
Dec. 28, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
STOCK BASED COMPENSATION | STOCK-BASED COMPENSATION In October 2018, the Board adopted the 2018 Plan and ceased granting awards under the YETI Holdings, Inc. 2012 Equity and Performance Incentive Plan, as amended and restated on June 20, 2018 (the “ 2012 Plan ”) . The 2018 Plan became effective with the completion of our IPO. 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 (a) that expire or terminate without being exercised or (b) that are forfeited under an award return to the 2018 Plan share reserve for future grant. Subject to adjustments as described above, the 2018 Plan provides for up to 4.8 million shares of authorized stock to be awarded as stock options, appreciation rights, restricted stock, restricted stock units ( “ RSUs ” ), performance shares, performance units, cash incentive awards, and certain other awards based on or related to shares of our common stock. The 2012 Plan provided for up to 8.8 million shares of authorized stock to be awarded as either stock options or RSUs. During 2019, we granted stock options and RSUs to various employees. The stock options have a ten year term and each of the stock options and RSUs vest in accordance with the following schedule: (a) one-third will vest on the first anniversary of the grant date, and (b) an additional one-sixth will vest on the first four six-month anniversaries of the initial vesting date. During 2019, we granted RSUs and deferred stock units (“DSUs”) to our non-employee members of the Board of Directors. The RSUs and DSUs vest immediately prior to our next annual meeting of our stockholders, subject to the non-employee director’s continued service through the applicable vesting date. However, both awards of RSUs and DSUs are subject to accelerated vesting in the event the non-employee director dies or becomes disabled or in the event of a change in control. We recognized non-cash stock-based compensation expense of $52.3 million, $13.2 million, and $13.4 million for 2019, 2018, and 2017, respectively. As of December 28, 2019, total unrecognized stock-based compensation expense for unvested options was $6.5 million and will be recognized over the next 3 years. In addition, as of December 28, 2019, total unrecognized stock-based compensation expense for unvested RSUs and DSUs was $5.1 million and $0.1 million, respectively, which will be recognized over the next 3 years. Stock-based Compensation Awards under the 2018 Plan Stock Options Fair Value The exercise price of options granted under the 2012 Plan and 2018 Plan is equal to the estimated fair market value of our common stock at the date of grant. Before our IPO in October 2018, we estimated the fair value of our common stock based on the appraisals performed by an independent valuation specialist. Subsequent to our IPO, we began using the market closing price for our common stock as reported on the New York Stock Exchange. 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. The expected option term assumption reflects the period for which we believe the option will remain outstanding. We elected to use the simplified method to determine the expected option term, which is the average of the option’s vesting and contractual term. Our computation of expected volatility is based on the historical volatility of selected comparable publicly-traded companies over a period equal to the expected term of the option. 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. The following assumptions were utilized to calculate the fair value of stock options granted during the periods indicated below: 2019 2018 2017 Expected option term 6 years 6 years 5 - 6 years Expected stock price volatility 27% - 35% 35% 30% Risk-free interest rate 1.64% - 2.53% 2.99% 2.05% - 2.18% Expected dividend yield –% –% –% Weighted average fair value at date of grant $7.67 $7.22 $10.84 A summary of the stock options is as follows for the periods indicated (in thousands, except per share data): Number of Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Balance, December 31, 2016 3,498 $ 4.10 5.99 Granted 77 53.51 Exercised (156) 0.65 Forfeited/cancelled (529) 5.71 Expired (6) 46.63 Balance, December 30, 2017 2,884 $ 5.22 6.10 Granted 761 18.00 Exercised (560) 0.47 Forfeited/cancelled (172) 47.91 Expired (24) 53.55 Balance, December 29, 2018 2,889 $ 6.56 6.48 Granted 601 23.59 Exercised (1,730) 2.06 Forfeited/cancelled (142) 20.88 Expired — — Balance, December 28, 2019 1,618 $ 16.44 8.12 $ 29,985 Exercisable, December 28, 2019 574 $ 8.48 6.50 $ 15,210 The total intrinsic value of stock options exercised was $46.7 million, $10.0 million, and $5.5 million for 2019, 2018, and 2017, respectively. The total fair value of stock options vested was $12.2 million, $15.2 million, and $17.7 million for 2019, 2018, and 2017, respectively. The following is a summary of our non-vested stock options for the periods indicated (in thousands, except per share data): Shares Under Outstanding Options Weighted Average Grant Date Fair Value Non-vested options at December 29, 2018 1,155 $ 14.25 Granted 601 7.67 Forfeited (142) 7.28 Vested (570) 21.47 Non-vested options at December 28, 2019 1,044 $ 7.47 Performance-Based Restricted Stock Units During 2018, our Board of Directors approved the grant of performance-based RSUs to various employees under the 2012 Plan. During 2018, 385,241 of those performance-based 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. 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. On November 12, 2019, we completed an underwritten secondary offering. Following the closing of this offering, Cortec Group Fund V, L.P. and its affiliates (collectively, “Cortec”) ceased to own more than 35% of the voting power of our outstanding common stock and as a result, the performance-based RSUs granted to various employees during 2018 fully vested pursuant to their terms. In connection with the vesting of the performance-based RSUs, we recognized non-cash stock-based compensation expense of $40.7 million for 2019. Non-Employee Director Restricted Stock Units and Deferred Stock Units On the date of each annual meeting of our stockholders, or on a pro rata basis upon initial election or appointment to our Board of Directors, each non-employee director is granted an award of RSUs with a value of $120,000 (based on our closing stock price on the date of grant). This award will vest in full in one installment on the earlier to occur of (1) the first anniversary of the date of grant and (2) immediately prior to the next annual meeting of our stockholders, subject to the director’s continued service through the applicable vesting date. Our non-employee directors are able to elect to defer all or part of the grant of RSUs in the form of DSUs, which will vest in full in one installment on the same basis as a non-employee director’s RSUs vest and will be settled in shares of our common stock on the earlier to occur of (1) the date specified by the non-employee director in his or her deferral election form and (2) the six-month anniversary of the non-employee director’s cessation of service on our Board of Directors. During any period of deferral, non-employee directors will accrue dividend equivalents on their DSUs as, if and when dividends are paid on shares of our common stock. The definitive terms regarding any DSUs will be set forth in the DSU award agreement and the accompanying deferral election form completed by the applicable director. The fair value of the RSUs is based on the closing price of our common stock on the award date. A summary of the performance-based RSUs, RSUs, and DSUs is as follows for the periods indicated (in thousands, except per share data): Performance-Based Restricted Stock Units Restricted Stock Units Deferred Stock Units Number of RSUs Weighted Average Grant Date Fair Value Number of RSUs Weighted Average Grant Date Fair Value Number of DSUs Weighted Average Grant Date Fair Value Balance, December 29, 2018 1,411 $ 31.74 7 $ 17 13 $ 17 Granted — — 338 23.69 10 24.80 Vested (1,284) 31.74 (10) 17.51 — — Forfeited/cancelled (127) 31.74 (39) 22.84 — — Balance, December 28, 2019 — $ — 296 $ 23.85 23 $ 20.39 |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 12 Months Ended |
Dec. 28, 2019 | |
Equity [Abstract] | |
STOCKHOLDERS' EQUITY | STOCKHOLDERS’ EQUITY Stockholders’ Equity Repurchase of Common Stock In March 2018, we purchased 0.4 million shares of our common stock at $4.95 per share from one of our stockholders for $2.0 million. We accounted for this purchase using the par value method, and subsequently retired these shares. Stock-Splits In October 2018, we effected a 0.397-for-1 reverse stock split of all outstanding shares of our common stock. Share and per share data disclosed for all periods has been retroactively adjusted to reflect the effects of this stock-split. This stock-split was effected prior to the completion of our IPO, discussed below. Capital Stock Increase In October 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. Following this increase our authorized capital stock of 630.0 million shares consisted of 600.0 million shares of common stock and 30.0 million shares of preferred stock. No shares were issued in connection with the increase in authorized capital stock. This capital stock increase occurred prior to the completion of our IPO, discussed below. Initial Public Offering On October 29, 2018, we completed our IPO of 16.0 million shares of our common stock, including 2.5 million shares of our common stock sold by us and 13.5 million shares of our common stock sold by selling stockholders. The underwriters were also granted an option to purchase up to an additional 2.4 million shares from the selling stockholders, at the public offering price, less the underwriting discount, for 30 days after October 24, 2018, which the underwriters exercised, in part, on November 28, 2018 by purchasing an additional 0.9 million shares of common stock at the public offering price of $18.00 per share, less the underwriting discount, from selling stockholders. We did not receive any proceeds from the sale of shares by selling stockholders. Based on our IPO price of $18.00 per share, we received net proceeds of $42.4 million after deducting underwriting discounts and commissions of $2.6 million. Additionally, we incurred offering costs of $4.6 million. On November 29, 2018, we used the proceeds plus additional cash on hand to repay our Term Loan B as described in Note 9. Special Dividend On May 17, 2016, we declared and paid a cash dividend of $5.54 per common share, as a partial return of capital to our stockholders, which totaled $451.3 million ( “ Special Dividend ” ). In connection with the Special Dividend, pursuant to anti-dilution provisions in the 2012 Equity and Performance Incentive Plan ( “ 2012 Plan ” ), the option strike price on outstanding options as of May 17, 2016, was reduced by the lesser of 70% of the original strike price and the per share amount of the Special Dividend. Any difference between the reduction in strike price and the per share amount of the Special Dividend was paid in cash immediately for vested options. For holders of unvested options as of May 17, 2016, we were required to pay a $7.9 million dividend which accrues over the requisite service period as the options vest ( “ Options Dividend ” ). We paid $0.6 million, $2.5 million, and $2.8 million related to the Options Dividend to vested option holders in 2019, 2018, and 2017, respectively. The Options Dividend was paid in full on September 28, 2019. |
RELATED PARTY AGREEMENTS
RELATED PARTY AGREEMENTS | 12 Months Ended |
Dec. 28, 2019 | |
Related Party Transactions [Abstract] | |
RELATED PARTY AGREEMENTS | RELATED-PARTY AGREEMENTS In 2012, we entered into a management services agreement with Cortec, our majority stockholder, that provides for a management fee to be based on 1.0% of total sales not to exceed $750,000 annually plus certain out-of-pocket expenses. During each of 2018 and 2017, we incurred fees and out-of-pocket expenses under this agreement of $0.08 million which were included in selling, general and administrative expenses within our consolidated statements of operations. This agreement was terminated in connection with our IPO in 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, brothers Roy and Ryan Seiders. The warehouse facility 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 within our consolidated statements of operations. In April 2016, we entered into an agreement with a minority stockholder (less than 1%), to provide strategic and financial advisory services for a fee of $3.0 million. The term of the agreement was fifteen months and the fee was due upon the consummation of a merger, sale, IPO, or other transaction. In 2016, we accrued the full amount payable under the agreement of $3.0 million in accrued liabilities, and subsequently reversed the full amount in August 2017 when the agreement term ended. No amounts were paid in 2016 or 2017. In July 2018, we entered into an agreement with the same minority stockholder, to provide strategic and financial advisory services for a fee of $2.0 million. The term of the agreement was the earlier of twelve months of the date of an IPO or similar sale of equity. Following our IPO, we paid the minority stockholder $2.0 million. two |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 28, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Future commitments under non-cancelable agreements at December 28, 2019 were as follows (in thousands): Fiscal Total 2019 2020 2021 2022 2023 Thereafter Other noncancelable agreements (1) $ 37,149 $ 17,807 $ 13,328 $ 3,616 $ 2,398 $ — $ — _________________________ (1) We have entered into commitments for service and maintenance agreements related to our management information systems, distribution contracts, advertising, sponsorships, and licensing agreements. As we are unable to reasonably predict the timing of settlement of liabilities related to unrecognized tax benefits and other noncurrent tax liabilities, the table above does not include $4.8 million, net, of such liabilities on our consolidated balance sheet as of December 28, 2019. We are involved in various claims and legal proceedings, some of which are covered by insurance. We believe that the existing claims and proceedings, and potential losses relating to such contingencies, will not have a material adverse effect on our consolidated financial position, results of operations, or cash flows. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 28, 2019 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES On December 22, 2017, the Tax Act was signed into law, significantly reforming the Code. The Tax Act, among other things, reduced the U.S. federal corporate tax rate from 35% to 21%, required companies to pay a one-time transition tax on earnings of certain foreign subsidiaries that were previously tax deferred, and put into effect the migration from a “ worldwide ” system of taxation to a territorial system. We recognized income tax expense of $5.7 million in 2017, primarily due to the revaluation of our net deferred tax asset based on a prospective U.S. federal income tax rate of 21%. We also recognized an immaterial one-time transition tax on our unremitted foreign earnings and profits. During 2018, we finalized the accounting for the enactment of the Tax Act, with an immaterial adjustment to the amount recorded in the year of enactment. The components of income before income taxes were as follows for the periods indicated (in thousands): Fiscal Year Ended December 28, December 29, December 30, Domestic $ 65,469 $ 69,209 $ 31,927 Foreign 1,789 406 132 Income before income taxes $ 67,258 $ 69,615 $ 32,059 The components of income tax expense were as follows for the periods indicated (in thousands): Fiscal Year Ended December 28, December 29, December 30, Current tax expense: U.S. federal $ 627 $ 7,190 $ 7,440 State 1,505 2,316 379 Foreign 526 247 46 Total current tax expense 2,658 9,753 7,865 Deferred tax expense (benefit): U.S. federal 12,911 3,298 8,915 State 1,304 (1,172) (114) Foreign (49) (27) (8) Total deferred tax expense 14,166 2,099 8,793 Total income tax expense $ 16,824 $ 11,852 $ 16,658 A reconciliation of income taxes computed at the statutory federal income tax rate of 21% in 2019 and 2018 and 35% in 2017 to the effective income tax rate is as follows for the periods indicated (in thousands): Fiscal Year Ended December 28, December 29, December 30, Income taxes at the statutory rate $ 14,124 $ 14,619 $ 11,223 Increase (decrease) resulting from: State income taxes, net of federal tax effect 2,989 2,030 212 Nondeductible expenses 203 248 180 Domestic production activities deduction — — (121) Research and development tax credits (2,157) (578) (656) Nontaxable income attributable to noncontrolling interest — — 223 Tax expense (benefit) related to stock-based compensation 950 (2,396) (803) Enactment of the Tax Act — — 5,737 Nondeductible interest expense — 4 637 Revaluation of deferred tax assets for state income taxes (92) (1,154) (36) Other 807 (921) 62 Income tax expense $ 16,824 $ 11,852 $ 16,658 Deferred tax assets and liabilities consisted of the following for the periods indicated (in thousands): Fiscal Year Ended December 28, December 29, Deferred tax assets: Accrued liabilities $ 4,482 $ 3,943 Allowances and other reserves 2,030 1,683 Inventory 1,929 5,472 Stock-based compensation 4,761 14,085 Operating lease liabilities 12,286 — Deferred rent — 2,657 Deferred interest 1,703 — Other 1,497 1,719 Total deferred tax assets $ 28,688 $ 29,559 Deferred tax liabilities: Operating lease assets $ (9,528) $ — Prepaid expenses (1,897) (782) Property and equipment (10,971) (8,433) Intangible assets (13,546) (11,857) Other (744) (710) Total deferred tax liabilities (36,686) (21,782) Net deferred tax (liabilities) assets $ (7,998) $ 7,777 Amounts included in the Consolidated Balance Sheets: Deferred income taxes $ 1,082 $ 7,777 Other liabilities (9,080) — Net deferred income tax (liabilities) assets $ (7,998) $ 7,777 We consider the undistributed earnings of our foreign subsidiaries to be indefinitely reinvested, and, accordingly, no taxes have been recognized on such earnings except for the transition tax recognized as part of the Tax Act. We continue to evaluate our plans for reinvestment or repatriation of unremitted foreign earnings. If we determine that all or a portion of our foreign earnings are no longer indefinitely reinvested, we may be subject to additional foreign withholding taxes and U.S. state income taxes. At December 28, 2019, we had unremitted earnings of foreign subsidiaries of $2.0 million. As of December 28, 2019, we had Texas research and development tax credit carryforwards of approximately $1.9 million, which if not utilized, will expire beginning in 2037. The following table summarizes the activity related to our unrecognized tax benefits for the periods indicated (excluding interest and penalties) (in thousands): Fiscal Year Ended December 28, December 29, Balance, beginning of year $ 2,381 $ 1,064 Gross increases related to current year tax positions 987 1,350 Gross increases related to prior year tax positions 37 — Gross decreases related to prior year tax positions — (14) Lapse of statute of limitations (47) (19) Balance, end of year $ 3,358 $ 2,381 If our positions are sustained by the relevant taxing authorities, approximately $3.4 million (excluding interest and penalties) of uncertain tax position liabilities as of December 28, 2019 would favorably impact our effective tax rate in future periods. We do not anticipate that the balance of gross unrecognized tax benefits will change significantly during the next twelve months. We include interest and penalties related to unrecognized tax benefits in our current provision for income taxes in the accompanying consolidated statements of operations. As of December 28, 2019, we had recognized a liability of $0.3 million for interest and penalties related to unrecognized tax benefits. We file income tax returns in the United States and various state jurisdictions. The tax years 2016 through 2019 remain open to examination in the United States, and the tax years 2015 through 2019 remain open to examination in Texas and most other state jurisdictions. The 2017 through 2019 tax years remain open to examination in foreign jurisdictions. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Dec. 28, 2019 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE Basic income per share is computed by dividing net income attributable to YETI Holdings, Inc. by the weighted-average number of common shares outstanding during the period. Diluted income per share includes the effect of all potentially dilutive securities, which include dilutive stock options and awards. The following table sets forth the calculation of earnings per share and weighted-average common shares outstanding at the dates indicated (in thousands, except per share data): Fiscal Year Ended December 28, December 29, December 30, Net income attributable to YETI Holdings, Inc. $ 50,434 $ 57,763 $ 15,401 Weighted average common shares outstanding — basic 85,088 81,777 81,479 Effect of dilutive securities 1,259 1,742 1,493 Weighted average common shares outstanding — diluted 86,347 83,519 82,972 Earnings per share attributable to YETI Holdings, Inc. Basic $ 0.59 $ 0.71 $ 0.19 Diluted $ 0.58 $ 0.69 $ 0.19 Outstanding options to purchase 0.8 million, 0.2 million, and 0.2 million shares of common stock were excluded from the calculations of diluted earnings per share in 2019, 2018, and 2017, respectively, because the effect of their inclusion would have been antidilutive to those years. In addition, 1.4 million shares of performance-based RSUs were excluded from the calculations of diluted earnings per share in 2018 because these units were not considered to be contingent outstanding shares. |
SUPPLEMENTAL STATEMENT OF CASH
SUPPLEMENTAL STATEMENT OF CASH FLOWS INFORMATION | 12 Months Ended |
Dec. 28, 2019 | |
Supplemental Cash Flow Information [Abstract] | |
SUPPLEMENTAL STATEMENT OF CASH FLOWS INFORMATION | SUPPLEMENTAL STATEMENT OF CASH FLOWS INFORMATION Supplemental cash flow information was as follows for the periods indication (in thousands): Year Ended December 28, December 29, December 30, Interest paid $ 19,396 $ 28,504 $ 29,879 Income taxes paid 3,524 16,347 20,640 Liabilities related to property and equipment outstanding at 2019, 2018, and 2017 of $1.0 million, $1.3 million, $0.9 million, respectively, are not included in “ Purchases of property and equipment ” within the consolidated statement of cash flows. Non-cash financing activities during 2019, 2018, and 2017 consisted of accrued dividends payable on unvested options, which were $0.4 million, $1.7 million, and $2.2 million, respectively. |
QUARTERLY FINANCIAL DATA (UNAUD
QUARTERLY FINANCIAL DATA (UNAUDITED) | 12 Months Ended |
Dec. 28, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
QUARTERLY FINANCIAL DATA (UNAUDITED) | QUARTERLY FINANCIAL DATA (UNAUDITED) Summarized quarterly financial data for the periods indicated is set forth below (in thousands, except per share amounts). Quarterly results were influenced by seasonal and other factors inherent in our business. First Quarter Second Quarter Third Quarter Fourth Quarter Total 2019 Net sales $ 155,353 $ 231,654 $ 229,125 $ 297,602 $ 913,734 Gross profit 76,627 116,277 120,076 162,334 475,314 Net income 2,167 22,223 21,302 4,742 50,434 Net income per share - basic $ 0.03 $ 0.26 $ 0.25 $ 0.05 $ 0.59 Net income per share - diluted $ 0.03 $ 0.26 $ 0.25 $ 0.05 $ 0.58 2018 Net sales $ 135,257 $ 206,288 $ 196,109 $ 241,179 $ 778,833 Gross profit 57,189 100,570 97,541 127,828 383,128 Net (loss) income (3,261) 18,825 17,030 25,169 57,763 Net (loss) income per share - basic $ (0.04) $ 0.23 $ 0.21 $ 0.30 $ 0.71 Net (loss) income per share - diluted $ (0.04) $ 0.23 $ 0.21 $ 0.30 $ 0.69 |
ORGANIZATION AND SIGNIFICANT _2
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 28, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Principles of Consolidation | Basis of Presentation and Principles of Consolidation The consolidated financial statements and accompanying notes are prepared in accordance with accounting principles generally accepted in the United States of America ( “ GAAP ” ) and the rules of the U.S. Securities and Exchange Commission ( “ SEC ” ). The consolidated financial statements include our accounts and those of our wholly-owned subsidiaries and variable interest entities ( “ VIEs ” ) of which we are the primary beneficiary. A VIE is required to be consolidated by its primary beneficiary which is generally defined as the party who has (a) the power to direct the activities of a VIE that most significantly impact the VIE’s economic performance and (b) the obligation to absorb losses of the VIE or the right to receive benefits that could potentially be significant to the VIE. We evaluate our relationships with VIEs on an ongoing basis to determine whether we are their primary beneficiary. Consolidated VIEs are presented as noncontrolling interests. Intercompany balances and transactions are eliminated in consolidation. In preparing the consolidated financial statements, we make estimates and judgments that affect the reported amounts of assets, liabilities, sales, expenses, and related disclosure of contingent assets and liabilities. We re-evaluate our estimates on an ongoing basis. Our estimates are based on historical experience and various other assumptions that we believe to be reasonable under the circumstances. Due to the uncertainty inherent in these estimates, actual results may differ from these estimates and could differ based upon other assumptions or conditions. |
Change of Fiscal Year End | Change of Fiscal Year End Effective January 1, 2017, we converted our fiscal year end from a calendar year ending December 31 to a 52- to 53-week 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. Fiscal year 2020 will be a 53-week period. This change did not have a material effect on our consolidated financial statements, and therefore we did not retrospectively adjust our financial statements. The consolidated financial results represent the fiscal years ending December 28, 2019 ( “ 2019 ” ), December 29, 2018 ( “ 2018 ” ), and December 30, 2017 ( “ 2017 ” ). |
Accounts Receivable | Accounts ReceivableAccounts receivable are carried at original invoice amount less an estimated allowance for doubtful accounts. We make ongoing estimates relating to our ability to collect our accounts receivable and maintain an allowance for estimated losses resulting from the inability of our customers to make required payments. In determining the amount of the allowance, we consider our historical level of credit losses and make judgments about the credit worthiness of our customers based on ongoing credit evaluations and their payment trends. Accounts receivable are uncollateralized customer obligations due under normal trade terms typically requiring payment within 30 to 90 days of sale. Receivables are written off when deemed uncollectible. |
Advertising | AdvertisingAdvertising costs are expensed in the period in which the advertising occurs and included in selling, general and administrative expenses in our consolidated statements of operations. |
Cash | Cash We maintain our cash in bank deposit accounts which, at times, may exceed federally insured limits. We have not historically experienced any losses in such accounts. |
Comprehensive Income | Comprehensive Income Our comprehensive income is determined based on net income adjusted for gains and losses on foreign currency translation adjustments. |
Concentration of Risk | Concentration of Risk We are exposed to risk due to our concentration of business activity with certain third-party contract manufacturers of our products. For our hard coolers, soft coolers, Drinkware, and bags our two largest manufacturers comprised approximately 90%, 48%, 81%, and 79%, respectively, of our production volume during 2019. For our cargo, outdoor living, and pets products, two manufacturers accounted for all of the production of each product in 2019. |
Deferred Financing Fees | Deferred Financing Fees Costs incurred upon the issuance of our debt instruments are capitalized and amortized over the life of the associated debt instrument on a straight-line basis, in a manner that approximates the effective interest method. If the debt instrument is retired before its scheduled maturity date, any remaining issuance costs associated with that debt instrument are expensed in the same period. Deferred financing fees related to our $450.0 million senior secured Credit Facility are reported in “ Long-term debt, net of current portion ” as a direct reduction of the carrying amount of our outstanding long-term debt. At December 28, 2019 and December 29, 2018, the amortization of deferred financing fees included in interest expense was $2.2 million and $3.4 million, respectively. |
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 carries a variable interest rate that is based on the London Interbank Offered Rate ( “ LIBOR ” ). |
Foreign Currency Translation and Foreign Currency Transactions | Foreign Currency Translation and Foreign Currency Transactions Adjustments resulting from translating foreign functional currency financial statements into U.S. dollars are included in the foreign currency translation adjustment, a component of accumulated other comprehensive income. |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill and intangible assets are recorded at cost, or at their estimated fair values at the date of acquisition. We review goodwill and indefinite-lived intangible assets for impairment annually in the fourth quarter of each fiscal year or on an interim basis whenever events or changes in circumstances indicate the fair value of such assets may be below their carrying amount. In conducting our annual impairment test, we first review qualitative factors to determine whether it is more likely than not that the fair value of the asset is less than its carrying amount. If factors indicate that the fair value of the asset is less than its carrying amount, we perform a quantitative assessment of the asset, analyzing the expected present value of future cash flows to quantify the amount of impairment, if any. We perform our annual impairment tests in the fourth quarter of each fiscal year. For our annual goodwill impairment tests in the fourth quarters of 2019 and 2018, we performed a qualitative assessment to determine whether the fair value of goodwill was more likely than not less than the carrying value. Based on economic conditions and industry and market considerations, we determined that it was more likely than not that the fair value of goodwill was greater than its carrying value; therefore, the quantitative impairment test was not performed. Therefore, we did not record any goodwill impairment for the years 2019 and 2018. Our intangible assets consist of indefinite-lived intangible assets, including tradename, trademarks, trade dress, and definite-lived intangible assets such as customer relationships, trademarks, patents, non-compete agreements, and other intangibles assets, such as copyrights and domain name. Tradename, customer relationships, and non-compete agreements resulted from our acquisition of Coolers in 2012. We also capitalize the costs of acquired trademarks, trade dress, patents and other intangibles, such as copyrights and domain name assets. In addition, external legal costs incurred in the defense of our patents and trademarks are capitalized when we believe that the future economic benefit of the intangible asset will be increased, and a successful defense is probable. In the event of a successful defense, the settlements received are netted against the external legal costs that were capitalized. Capitalized patent and trademark defense costs are amortized over the remaining useful life of the asset. Where the defense of the patent and trademark maintains rather than increases the expected future economic benefits from the asset, the costs would generally be expensed as incurred. The external legal costs incurred and settlements received may not occur in the same period. Costs incurred during 2017, 2018, and 2019 primarily relate to external legal costs incurred in the defense of our patents and trademarks, net of settlements received. |
Income Taxes | Income Taxes We provide for taxes at the enacted rate applicable for the appropriate tax jurisdictions. Deferred taxes are provided on an asset and liability method, which requires the recognition of deferred tax assets and liabilities for expected future consequences of temporary differences between the financial reporting and income tax bases of assets and liabilities using enacted tax rates. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Tax filing positions are evaluated, and we recognize the largest amount of tax benefit that is more likely than not to be sustained upon examination by the taxing authorities based on the technical merits of the tax position. Settlements with tax authorities, the expiration of statutes of limitations for particular tax positions, or obtaining new information on particular tax positions may cause a change to the effective tax rate. We recognize interest and penalties related to unrecognized tax benefits in the provision for income taxes in the consolidated statements of operations. On December 22, 2017, U.S. federal tax legislation, commonly referred to as the Tax Cuts and Jobs Act ( “ the Tax Act ” ), was signed into law, significantly reforming the U.S. Internal Revenue Code. The Tax Act had a substantial impact on our income tax expense for the year ended December 30, 2017, primarily due to the revaluation of our net deferred tax asset based on a prospective U.S. federal income tax rate of 21%. See Note 15 for further discussion. |
Inventories | Inventories Inventories are comprised primarily of finished goods and are generally valued at the lower of weighted-average cost or net realizable value. Net realizable value is defined as the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. We make ongoing estimates relating to the net realizable value of inventories based upon our assumptions about future demand and market conditions. |
Property and Equipment | Property and Equipment We record property and equipment at their original acquisition costs and we depreciate them based on a straight-line method over their estimated useful lives. Expenditures for repairs and maintenance are expensed as incurred, while asset improvements that extend the useful life are capitalized. The useful lives for property and equipment are as follows: Leasehold improvements lesser of 10 years, remaining lease term, or estimated useful life of the asset Molds and tooling 3 - 5 years Furniture and equipment 3 - 7 years Computers and software 3 - 7 years |
Research and Development Costs | Research and Development CostsResearch and development costs are expensed as incurred. Employee compensation, including non-cash stock-based compensation expense, and miscellaneous supplies are included in research and development costs within selling, general, and administrative expenses. |
Revenue Recognition | Revenue Recognition As discussed in the “Recently Adopted Accounting Standards” section below, we adopted the new revenue recognition standard at the beginning of 2019. Revenue transactions associated with the sale of YETI branded coolers, equipment, drinkware, apparel and accessories comprise a single performance obligation, which consists of the sale of products to customers either through wholesale or DTC channels. Revenue is recognized when performance obligations are satisfied through the transfer of control of promised goods to the customers, based on the terms of sale. The transfer of control typically occurs at a point in time based on consideration of when the customer has an obligation to pay for the goods, and physical possession of, legal title to, and the risks and rewards of ownership of the goods has been transferred, and the customer has accepted the goods. Revenue from wholesale transactions is generally recognized at the time products are shipped based on contractual terms with the customer. Revenue from our DTC channel is generally recognized at the point of sale in our retail stores and at the time products are shipped for e-commerce transactions and corporate sales based on contractual terms with the customer. Revenue is recognized net of estimates of variable consideration, including product returns, customer discounts and allowances, sales incentive programs, and miscellaneous claims from customers. We determine these estimates based on contract terms, evaluations of historical experience, anticipated trends, and other factors. The actual amount of customer returns and customer allowances, which is inherently uncertain, may differ from our estimates. The duration of contractual arrangements with our customers is typically less than one year. Payment terms with wholesale customers vary depending on creditworthiness and other considerations, with the most common being net 30 days. Payment is due at the time of sale for retail store transactions and at the time of shipment for e-commerce transactions. Certain products that we sell include a limited warranty which does not meet the definition of a performance obligation within the context of the contract. Product warranty costs are estimated based on historical and anticipated trends and are recorded as cost of goods sold at the time revenue is recognized. Revenue from the sale of gift cards is initially deferred and recognized as a contract liability until the gift card is redeemed by the customer. We elected to account for shipping and handling as fulfillment activities, and not as separate performance obligations. Shipping and handling fees billed to customers are included in net sales. All shipping and handling activity costs are recognized as selling, general and administrative expenses at the time the related revenue is recognized. Sales taxes collected from customers and remitted directly to government authorities are excluded from net sales and cost of goods sold. Our terms of sale provide limited return rights. We may accept, and have at times accepted, returns outside our terms of sale at our sole discretion. We may also, at our sole discretion, provide our retail partners with sales discounts and allowances. We record estimated sales returns, discounts, and miscellaneous customer claims as reductions to net sales at the time revenues are recorded. We base our estimates upon historical experience and trends, and upon approval of specific returns or discounts. Actual returns and discounts in any future period are inherently uncertain and thus may differ from our estimates. If actual or expected future returns and discounts were significantly greater or lower than the reserves we had established, we would record a reduction or increase to net sales in the period in which we made such determination. For periods prior to adoption, revenue was recognized when persuasive evidence of an arrangement existed, and title and risks of ownership had passed to the customer, based on the terms of sale. Goods were usually shipped to customers with free-on-board (“FOB”) shipping point terms; however, our practice was to bear the responsibility of the delivery to the customer. In the case that product was lost or damaged in transit to the customer, we generally took the responsibility to provide new product. In effect, we applied a synthetic FOB destination policy and therefore recognized revenue when the product was delivered to the customer. For our national accounts, delivery of our products typically occurred at shipping point, as such customers took delivery at our distribution center. |
Segment Information | Segment Information We report our operations as a single reportable segment and manage our business as a single-brand consumer products business. This is supported by our operational structure, which includes sales, research, product design, operations, marketing, and administrative functions focused on the entire product suite rather than individual product categories. Our chief operating decision maker does not regularly review financial information for individual product categories, sales channels, or geographic regions that would allow decisions to be made about allocation of resources or performance. |
Shipping and Handling Costs | Shipping and Handling CostsAmounts charged to customers for shipping and handling are included in net sales. Our cost of goods sold includes inbound freight charges for product delivery from our third-party contract manufacturers. |
Stock‑Based Compensation | Stock-Based Compensation We award stock-based compensation to employees and directors under the YETI Holdings, Inc. 2018 Equity and Incentive Compensation Plan (the “ 2018 Plan ”) |
Valuation of Long Lived Assets | Valuation of Long-Lived AssetsWe assess the recoverability of our long-lived assets, which include property and equipment, operating lease right-of-use-assets, and definite-lived intangible assets, for impairment whenever events or changes in circumstances indicate the carrying amount of such assets may not be recoverable. An impairment loss on our long-lived assets exists when the estimated undiscounted cash flows expected to result from the use of the asset and its eventual disposition are less than its carrying amount. If the carrying amount exceeds the sum of the undiscounted cash flows, an impairment charge is recognized based on the amount by which the carrying amount of the assets exceeds the estimated fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount or estimated fair value less costs to sell. |
Variable Interest Entities | Variable Interest Entities We evaluate our financial interests in business enterprises to determine if they represent VIEs of which we are the primary beneficiary. If such criteria are met (as discussed above in “ Basis of Presentation and Principles of Consolidation ” |
Warranty | WarrantyWarranty liabilities are recorded at the time of sale for the estimated costs that may be incurred under the terms of our limited warranty. We make and revise these estimates primarily based on the number of units under warranty, historical experience of warranty claims, and an estimated per unit replacement cost. The liability for warranties is included in accrued expenses in our consolidated balance sheets. The specific warranty terms and conditions vary depending upon the product sold, but are generally warranted against defects in material and workmanship ranging from three |
Emerging Growth Company Status | Emerging Growth Company Status We were an “ emerging growth company ” as defined in the Jumpstart Our Business Startups Act of 2012 ( “ JOBS Act). Under the JOBS Act, emerging growth companies can delay adopting new or revised financial accounting standards until such time as those standards apply to private companies. We elected to use the extended transition period for complying with the adoption of new or revised accounting standards and as a result of this election, our financial statements may not be comparable to companies that comply with public company effective dates. As of June 28, 2019, the last business day of our most recently completed second fiscal quarter, the market value of our common stock that was held by non-affiliates was greater than $700 million. As a result, we became a large accelerated filer and no longer qualified as an emerging growth company on December 28, 2019, the end of our current fiscal year. Accordingly, we no longer qualify for the provisions of the JOBS Act that allow companies to adopt new or revised accounting standards when required by private company accounting standards. |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements In February 2016, the Financial Accounting Standards Board ( “ FASB ” ) issued Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842) , a new accounting standard on leasing. The FASB subsequently issued updates to the standard to provide additional clarification on specific topics, including permitted transition methods. Collectively, the guidance is referred to as FASB Accounting Standards Codification (“ASC”) 842 (“ASC 842”). ASC 842 requires companies to recognize right-of-use (“ROU”) assets and corresponding lease liabilities on the balance sheet for leases with lease terms greater than twelve months, and also retains a dual model approach for assessing lease classification and recognizing expense. We adopted ASC 842 effective December 30, 2018, the first day of fiscal year 2019 using the modified retrospective transition method. We applied the transition provision for ASC 842 at our adoption date instead of at the earliest comparative period presented in our financial statements and, therefore, we recognized and measured leases existing at December 30, 2018, but without retrospective application. ASC 842 also requires enhanced disclosures regarding the amount, timing and uncertainty of cash flows arising from leases. The most significant impact was the recognition of ROU lease assets of $37.8 million and corresponding operating lease liabilities of $50.0 million and finance lease assets of $1.1 million and corresponding lease liabilities of $1.1 million, each as of December 28, 2019, on our balance sheet along with certain incremental disclosures. The difference between the operating lease ROU assets and operating lease liabilities primarily represents the existing deferred rent and tenant improvement allowance liabilities balance, resulting from historical straight-lining of operating leases, which were effectively reclassified upon adoption to reduce the measurement of leased assets. See Note 6 for further discussion. The impact of the adoption of ASC 842 on previously reported interim financial statements included the recognition of ROU assets and lease liabilities for operating leases. The adoption of ASC 842 had no impact to previously reported results of operations for any interim period. In July 2019, the FASB issued ASU 2019-07, Codification Updates to SEC Sections . ASU 2019-07 clarifies the disclosure and presentation requirements of a variety of codification topics by more closely aligning them with the SEC disclosure rules and regulations, eliminating redundancies and simplifying application of the codification. ASU 2019-07 is effective upon issuance and it did not have a material impact to our consolidated financial statements or related disclosures. In May 2018, the FASB issued ASU 2018-07, Compensation – Stock Compensation (Topic 718) , which conformed the current non-employee share-based accounting standard with employee share-based accounting. We elected to adopt this standard early, on June 30, 2019, the first day of the third quarter of 2019, and such adoption did not have a material impact on our consolidated financial statements or related disclosures. In the first quarter of 2019, we adopted ASC Topic 606, Revenue from Contracts with Customers (“ASC 606”), using the modified retrospective transition method and applying this approach to contracts not completed as of the date of adoption. ASC 606 establishes a single comprehensive model for entities to use in accounting for revenue under GAAP and requires companies to recognize revenue in a way that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASC 606 also requires certain disclosures regarding qualitative and quantitative information with respect to the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. The adoption of ASC 606 resulted in a net decrease of $0.5 million to accumulated deficit as of December 30, 2018. The cumulative effect adjustment primarily related to revenue that would have been recognized in the prior period for certain wholesale transactions and substantially all e-commerce transactions at the time of shipment, rather than upon delivery to the customer, based on our evaluation of the transfer of control of the goods. Comparative prior period information has not been restated and continues to be reported in accordance with accounting standards in effect for those periods. See Note 2 for additional revenue disclosures. Under ASC 606, an asset for the estimated cost of inventory expected to be returned is now recognized separately from the liability for sales-related reserves. This resulted in an increase in prepaid expenses and other current assets and an increase in accrued expenses and other current liabilities on our consolidated balance sheets as of December 28, 2019. As mentioned above, the adoption of ASC 606 impacted the timing of revenue recognized related to sales for certain wholesale transactions and substantially all e-commerce transactions, resulting in earlier recognition of such sales. Additionally, miscellaneous claims from customers are now recognized in net sales. Previously, these costs were recorded in selling, general and administrative expenses. The following tables compare consolidated financial statements reported in accordance with the requirements of ASC 606 to the amounts that would have been reported had the new standard not been applied (in thousands): Year Ended December 28, 2019 As Reported Impact of Adoption Balances without Adoption of ASC 606 Net sales $ 913,734 $ (2,091) $ 911,643 Cost of goods sold 438,420 (529) 437,891 Gross profit 475,314 (1,562) 473,752 Selling, general, and administrative expenses 385,543 451 385,994 Operating income 89,771 (2,013) 87,758 Interest expense (21,779) — (21,779) Other income (734) — (734) Income before income taxes 67,258 (2,013) 65,245 Income tax expense (16,824) 494 (16,330) Net income $ 50,434 $ (1,519) $ 48,915 December 28, 2019 As Reported Impact of Adoption Balances without Adoption of ASC 606 ASSETS Accounts receivable, net $ 82,688 $ (3,550) $ 79,138 Inventory 185,700 876 186,576 Prepaid expenses and other current assets 19,644 (197) 19,447 Deferred charges and other assets 2,389 2 2,391 LIABILITIES AND STOCKHOLDERS’ EQUITY Accrued expenses and other current liabilities 42,088 (850) 41,238 Taxes payable 3,329 — 3,329 Accumulated deficit (189,545) (2,019) (191,564) The adjustments above do not have an impact on net cash used in operating activities; however, they do impact the changes in operating assets and liabilities for the related accounts within the disclosure of operating activities on our consolidated statement of cash flows. |
Recent Accounting Guidance Not Yet Adopted | Recent Accounting Guidance Not Yet Adopted In June 2016, the FASB issued ASU 2016-13, Measurement of Credit Losses on Financial Instruments , and also subsequently issued amendments to the initial guidance, in ASU 2018-19, ASU 2019-04, and ASU 2019-05. ASU 2016-13 replaces the current incurred loss impairment method with a method that reflects expected credit losses on financial instruments. In November 2018, the FASB issued update ASU 2018-19, clarifying the scope of ASU 2016-13. In April 2019, the FASB issued updated ASU 2019-04, clarifying that equity instruments without readily determinable fair values for which an entity has elected the measurement alternative should be remeasured to fair value as of the date that an observable transaction occurred. In May 2019, the FASB issued ASU 2019-05, which provides an option to irrevocably elect to measure certain individual financial assets at fair value instead of amortized cost. The new standard is effective for fiscal years beginning after December 15, 2019, and early adoption is permitted. Because we anticipate that we will no longer qualify as an emerging growth company as of December 28, 2019, we expect to adopt this standard in the first quarter of fiscal year 2020 and are currently evaluating the impact that the adoption of this standard will have on our consolidated financial statements and related disclosures. In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment . This ASU removes Step 2 from the goodwill impairment test. The standard will be effective for us in the first quarter of our fiscal year 2020, although early adoption is permitted. We do not expect that the adoption of this ASU will have a significant impact on our consolidated financial statements. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820). This ASU eliminates, adds and modifies certain disclosure requirements for fair value measurements. Among the changes, entities will no longer be required to disclose the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy but will be required to disclose the range and weighted average used to develop significant unobservable inputs for Level 3 fair value measurements. ASU 2018-13 is effective for interim and annual reporting periods beginning after December 15, 2019, and early adoption is permitted. For non-public entities, this ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. The adoption of this standard is not expected to have a material effect on our consolidated financial statements. In August 2018, the FASB issued ASU 2018-15, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350) ( “ ASU 2018-15 ” ). The objective of ASU 2018-15 is to align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with those incurred to develop or obtain internal-use software. The guidance is effective for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. Early adoption is permitted. The amendments can be applied either retrospectively or prospectively. We do not expect the adoption of this standard to have a material impact on its consolidated financial statements. |
ORGANIZATION AND SIGNIFICANT _3
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Property and equipment estimated useful lives | The useful lives for property and equipment are as follows: Leasehold improvements lesser of 10 years, remaining lease term, or estimated useful life of the asset Molds and tooling 3 - 5 years Furniture and equipment 3 - 7 years Computers and software 3 - 7 years |
Schedule of unaudited condensed consolidated financial statements | The following tables compare consolidated financial statements reported in accordance with the requirements of ASC 606 to the amounts that would have been reported had the new standard not been applied (in thousands): Year Ended December 28, 2019 As Reported Impact of Adoption Balances without Adoption of ASC 606 Net sales $ 913,734 $ (2,091) $ 911,643 Cost of goods sold 438,420 (529) 437,891 Gross profit 475,314 (1,562) 473,752 Selling, general, and administrative expenses 385,543 451 385,994 Operating income 89,771 (2,013) 87,758 Interest expense (21,779) — (21,779) Other income (734) — (734) Income before income taxes 67,258 (2,013) 65,245 Income tax expense (16,824) 494 (16,330) Net income $ 50,434 $ (1,519) $ 48,915 December 28, 2019 As Reported Impact of Adoption Balances without Adoption of ASC 606 ASSETS Accounts receivable, net $ 82,688 $ (3,550) $ 79,138 Inventory 185,700 876 186,576 Prepaid expenses and other current assets 19,644 (197) 19,447 Deferred charges and other assets 2,389 2 2,391 LIABILITIES AND STOCKHOLDERS’ EQUITY Accrued expenses and other current liabilities 42,088 (850) 41,238 Taxes payable 3,329 — 3,329 Accumulated deficit (189,545) (2,019) (191,564) |
REVENUE (Tables)
REVENUE (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of accounts receivable and contract liabilities | The following table provides information about accounts receivable and contract liabilities at the periods indicated (in thousands): December 28, 2019 At Adoption - December 30, 2018 (1) Accounts receivable, net $ 82,688 $ 60,336 Contract liabilities (4,499) (9,457) ________________________________________ (1) We adopted ASC 606 on December 30, 2018. See Note 1 for additional information. |
Schedule of disaggregated net sales | The following table disaggregates our net sales by channel, product category, and geography for the periods indicated (in thousands): 2019 2018 (1) 2017 (1) Net Sales by Channel Wholesale $ 527,634 $ 491,431 $ 444,854 Direct-to-consumer 386,100 287,402 194,385 Total net sales $ 913,734 $ 778,833 $ 639,239 Net Sales by Category Coolers & Equipment $ 368,874 $ 331,224 $ 312,237 Drinkware 526,241 424,164 310,287 Other 18,619 23,445 16,715 Total net sales $ 913,734 $ 778,833 $ 639,239 Net Sales by Geographic Region United States $ 873,867 $ 761,880 $ 635,195 International 39,867 16,953 4,044 Total net sales $ 913,734 $ 778,833 $ 639,239 |
PREPAID EXPENSES AND OTHER CU_2
PREPAID EXPENSES AND OTHER CURRENT ASSETS (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Prepaid Expenses and Other Current Assets | Prepaid expenses and other current assets include the following (in thousands): December 28, December 29, Prepaid expenses $ 15,052 $ 8,980 Prepaid taxes 1,374 308 Other 3,218 2,923 Total prepaid expenses and other current assets $ 19,644 $ 12,211 |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Property, Plant and Equipment [Abstract] | |
Summary of property and equipment | Property and equipment consisted of the following at the dates indicated (in thousands): December 28, December 29, Production molds, tooling, and equipment $ 56,375 $ 45,614 Furniture, fixtures, and equipment 7,721 5,752 Computers and software 52,930 41,209 Leasehold improvements 35,419 29,079 Finance leases 1,208 — Property and equipment — gross 153,653 121,654 Accumulated depreciation (71,043) (47,557) Property and equipment — net $ 82,610 $ 74,097 Property and equipment, net by geographical region was as follows as of the dates indicated (in thousands): December 28, December 29, United States $ 70,672 $ 65,831 International 11,938 8,266 Property and equipment, net $ 82,610 $ 74,097 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Leases [Abstract] | |
Summary of Balance Sheet | The following table presents the assets and liabilities related to operating and finance leases (in thousands): Balance Sheet Location December 28, 2019 Assets: Operating lease assets Operating lease right-of-use assets $ 37,768 Finance lease assets Property, plant and equipment 1,120 Total lease assets $ 38,888 Liabilities: Current Operating lease liabilities Operating lease liabilities $ 7,768 Finance lease liabilities Current maturities of long-term debt 185 Non-current Operating lease liabilities Operating lease liabilities, non-current 42,200 Finance lease liabilities Long-term debt, net of current portion 950 Total lease liabilities $ 51,103 |
Summary of Lease Cost | The following table presents the components of lease costs (in thousands): Year Ended December 28, 2019 Operating lease costs $ 8,002 Finance lease cost - amortization of right-of-use assets 88 Finance lease cost - interest on lease liabilities 30 Short-term lease cost 249 Variable lease cost 2,806 Sublease income (743) Total lease cost $ 10,432 The following table presents lease terms and discount rates: December 28, 2019 Weighted average remaining lease term: Operating leases 7.01 years Finance leases 4.68 years Weighted average discount rate: Operating leases 6.62 % Finance leases 6.24 % The following table presents supplemental cash flow information related to our leases (in thousands): December 28, 2019 Cash paid for amounts included in measurement of liabilities: Operating cash flows used in operating leases $ 8,469 Operating cash flows used in finance leases 30 Financing cash flows used in finance leases 74 Right-of-use assets obtained in exchange for new lease liabilities: Finance leases 1,208 Operating leases 10,015 |
Schedule of Operating Lease Liability, Maturity | The following table presents the minimum lease payment obligations of operating and finance lease liabilities (leases with terms in excess of one year) for the next five years and thereafter as of December 28, 2019 (in thousands): Operating Leases Finance Leases Total 2020 $ 10,261 $ 249 $ 10,510 2021 9,843 249 10,092 2022 7,505 249 7,754 2023 7,716 249 7,965 2024 7,474 330 7,804 Thereafter 20,048 — 20,048 Total lease payments 62,847 1,326 64,173 Less: Effect of discounting to net present value 12,879 191 13,070 Present value of lease liabilities $ 49,968 $ 1,135 $ 51,103 |
Schedule of Finance Lease Liability, Maturity | The following table presents the minimum lease payment obligations of operating and finance lease liabilities (leases with terms in excess of one year) for the next five years and thereafter as of December 28, 2019 (in thousands): Operating Leases Finance Leases Total 2020 $ 10,261 $ 249 $ 10,510 2021 9,843 249 10,092 2022 7,505 249 7,754 2023 7,716 249 7,965 2024 7,474 330 7,804 Thereafter 20,048 — 20,048 Total lease payments 62,847 1,326 64,173 Less: Effect of discounting to net present value 12,879 191 13,070 Present value of lease liabilities $ 49,968 $ 1,135 $ 51,103 |
Schedule of Future Minimum Lease Payments and Commitments | The following table presents future minimum lease payment obligations under our non-cancelable operating leases with lease terms in excess of one year as of December 29, 2018, prior to the adoption of ASC 842 (in thousands): Operating Leases 2019 $ 4,670 2020 5,024 2021 4,405 2022 4,486 2023 4,627 Thereafter 23,047 Total lease payments $ 46,259 Future commitments under non-cancelable agreements at December 28, 2019 were as follows (in thousands): Fiscal Total 2019 2020 2021 2022 2023 Thereafter Other noncancelable agreements (1) $ 37,149 $ 17,807 $ 13,328 $ 3,616 $ 2,398 $ — $ — _________________________ (1) We have entered into commitments for service and maintenance agreements related to our management information systems, distribution contracts, advertising, sponsorships, and licensing agreements. |
INTANGIBLE ASSETS (Tables)
INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of our intangible assets | Intangible assets consisted of the following at the dates indicated below (dollars in thousands): December 28, 2019 Useful Life Gross Carrying Amount Accumulated Amortization Net Carrying Amount Tradename Indefinite $ 31,363 $ — $ 31,363 Trade dress Indefinite 13,917 — 13,917 Trademarks (1) Indefinite 9,245 — 9,245 Customer relationships 11 years 42,205 (28,947) 13,258 Trademarks 6 - 30 years 19,872 (4,307) 15,565 Patents 4 - 25 years 7,407 (719) 6,688 Non-compete agreements 5 years 2,815 (2,815) — Other intangibles 15 years 1,041 (227) 814 Total intangible assets $ 127,865 $ (37,015) $ 90,850 _________________________________________ (1) During 2019, we acquired trademarks for $9.1 million. See Note 3 for additional information. December 29, 2018 Useful Life Gross Carrying Amount Accumulated Amortization Net Carrying Amount Tradename Indefinite $ 31,363 $ — $ 31,363 Trade dress Indefinite 13,466 — 13,466 Customer relationships 11 years 42,205 (25,110) 17,095 Trademarks 6 - 30 years 14,867 (2,696) 12,171 Patents 4 - 25 years 5,522 (461) 5,061 Non-compete agreements 5 years 2,815 (2,815) — Other intangibles 15 years 1,026 (163) 863 Total intangible assets $ 111,264 $ (31,245) $ 80,019 |
ACCRUED EXPENSES AND OTHER CU_2
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities consisted of the following at the dates indicated (in thousands): December 28, December 29, Accrued freight and other operating expenses $ 12,454 $ 13,175 Contract liabilities 4,499 9,457 Customer discounts, allowances, and returns 6,976 7,435 Advertising and marketing 3,300 5,355 Warranty reserve 6,584 4,533 Interest payable 420 459 Other 7,855 12,608 Total accrued expenses and other current liabilities $ 42,088 $ 53,022 |
LONG-TERM DEBT (Tables)
LONG-TERM DEBT (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Debt Disclosure [Abstract] | |
Summary of long term debt | Long-term debt consisted of the following at the dates indicated (in thousands): December 28, December 29, Term Loan A, due 2024 $ 300,000 $ 331,388 Finance lease debt 1,135 — Debt owed to Rambler On — 1,500 Total debt 301,135 332,888 Current maturities of long-term debt (15,000) (43,638) Current maturities of finance lease debt (185) — Total long-term debt 285,950 289,250 Unamortized deferred financing fees (4,235) (4,874) Total long-term debt, net $ 281,715 $ 284,376 At December 28, 2019 the future maturities of principal amounts of our debt obligations, excluding finance lease obligations, for the next five years and in total (see Note 6 for future maturities of finance lease obligations), consisted of the following (in thousands): Amount 2020 $ 15,000 2021 22,500 2022 22,500 2023 22,500 2024 217,500 Total $ 300,000 |
STOCK BASED COMPENSATION (Table
STOCK BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Summary assumptions utilized to calculate fair value of stock options granted | The following assumptions were utilized to calculate the fair value of stock options granted during the periods indicated below: 2019 2018 2017 Expected option term 6 years 6 years 5 - 6 years Expected stock price volatility 27% - 35% 35% 30% Risk-free interest rate 1.64% - 2.53% 2.99% 2.05% - 2.18% Expected dividend yield –% –% –% Weighted average fair value at date of grant $7.67 $7.22 $10.84 |
Summary of the performance based RSUs, RSUs, and DSUs | A summary of the performance-based RSUs, RSUs, and DSUs is as follows for the periods indicated (in thousands, except per share data): Performance-Based Restricted Stock Units Restricted Stock Units Deferred Stock Units Number of RSUs Weighted Average Grant Date Fair Value Number of RSUs Weighted Average Grant Date Fair Value Number of DSUs Weighted Average Grant Date Fair Value Balance, December 29, 2018 1,411 $ 31.74 7 $ 17 13 $ 17 Granted — — 338 23.69 10 24.80 Vested (1,284) 31.74 (10) 17.51 — — Forfeited/cancelled (127) 31.74 (39) 22.84 — — Balance, December 28, 2019 — $ — 296 $ 23.85 23 $ 20.39 |
Stock Options | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Summary of stock options | A summary of the stock options is as follows for the periods indicated (in thousands, except per share data): Number of Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Balance, December 31, 2016 3,498 $ 4.10 5.99 Granted 77 53.51 Exercised (156) 0.65 Forfeited/cancelled (529) 5.71 Expired (6) 46.63 Balance, December 30, 2017 2,884 $ 5.22 6.10 Granted 761 18.00 Exercised (560) 0.47 Forfeited/cancelled (172) 47.91 Expired (24) 53.55 Balance, December 29, 2018 2,889 $ 6.56 6.48 Granted 601 23.59 Exercised (1,730) 2.06 Forfeited/cancelled (142) 20.88 Expired — — Balance, December 28, 2019 1,618 $ 16.44 8.12 $ 29,985 Exercisable, December 28, 2019 574 $ 8.48 6.50 $ 15,210 |
Non-vested stock options | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Summary of stock options | The following is a summary of our non-vested stock options for the periods indicated (in thousands, except per share data): Shares Under Outstanding Options Weighted Average Grant Date Fair Value Non-vested options at December 29, 2018 1,155 $ 14.25 Granted 601 7.67 Forfeited (142) 7.28 Vested (570) 21.47 Non-vested options at December 28, 2019 1,044 $ 7.47 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Lease Payments and Commitments | The following table presents future minimum lease payment obligations under our non-cancelable operating leases with lease terms in excess of one year as of December 29, 2018, prior to the adoption of ASC 842 (in thousands): Operating Leases 2019 $ 4,670 2020 5,024 2021 4,405 2022 4,486 2023 4,627 Thereafter 23,047 Total lease payments $ 46,259 Future commitments under non-cancelable agreements at December 28, 2019 were as follows (in thousands): Fiscal Total 2019 2020 2021 2022 2023 Thereafter Other noncancelable agreements (1) $ 37,149 $ 17,807 $ 13,328 $ 3,616 $ 2,398 $ — $ — _________________________ (1) We have entered into commitments for service and maintenance agreements related to our management information systems, distribution contracts, advertising, sponsorships, and licensing agreements. |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of components of income before income taxes | The components of income before income taxes were as follows for the periods indicated (in thousands): Fiscal Year Ended December 28, December 29, December 30, Domestic $ 65,469 $ 69,209 $ 31,927 Foreign 1,789 406 132 Income before income taxes $ 67,258 $ 69,615 $ 32,059 |
Schedule of components of income tax expense | The components of income tax expense were as follows for the periods indicated (in thousands): Fiscal Year Ended December 28, December 29, December 30, Current tax expense: U.S. federal $ 627 $ 7,190 $ 7,440 State 1,505 2,316 379 Foreign 526 247 46 Total current tax expense 2,658 9,753 7,865 Deferred tax expense (benefit): U.S. federal 12,911 3,298 8,915 State 1,304 (1,172) (114) Foreign (49) (27) (8) Total deferred tax expense 14,166 2,099 8,793 Total income tax expense $ 16,824 $ 11,852 $ 16,658 |
Schedule of reconciliation of income taxes | A reconciliation of income taxes computed at the statutory federal income tax rate of 21% in 2019 and 2018 and 35% in 2017 to the effective income tax rate is as follows for the periods indicated (in thousands): Fiscal Year Ended December 28, December 29, December 30, Income taxes at the statutory rate $ 14,124 $ 14,619 $ 11,223 Increase (decrease) resulting from: State income taxes, net of federal tax effect 2,989 2,030 212 Nondeductible expenses 203 248 180 Domestic production activities deduction — — (121) Research and development tax credits (2,157) (578) (656) Nontaxable income attributable to noncontrolling interest — — 223 Tax expense (benefit) related to stock-based compensation 950 (2,396) (803) Enactment of the Tax Act — — 5,737 Nondeductible interest expense — 4 637 Revaluation of deferred tax assets for state income taxes (92) (1,154) (36) Other 807 (921) 62 Income tax expense $ 16,824 $ 11,852 $ 16,658 |
Schedule of deferred tax assets and liabilities | Deferred tax assets and liabilities consisted of the following for the periods indicated (in thousands): Fiscal Year Ended December 28, December 29, Deferred tax assets: Accrued liabilities $ 4,482 $ 3,943 Allowances and other reserves 2,030 1,683 Inventory 1,929 5,472 Stock-based compensation 4,761 14,085 Operating lease liabilities 12,286 — Deferred rent — 2,657 Deferred interest 1,703 — Other 1,497 1,719 Total deferred tax assets $ 28,688 $ 29,559 Deferred tax liabilities: Operating lease assets $ (9,528) $ — Prepaid expenses (1,897) (782) Property and equipment (10,971) (8,433) Intangible assets (13,546) (11,857) Other (744) (710) Total deferred tax liabilities (36,686) (21,782) Net deferred tax (liabilities) assets $ (7,998) $ 7,777 Amounts included in the Consolidated Balance Sheets: Deferred income taxes $ 1,082 $ 7,777 Other liabilities (9,080) — Net deferred income tax (liabilities) assets $ (7,998) $ 7,777 |
Summary of unrecognized tax benefits (excluding interest and penalties) | The following table summarizes the activity related to our unrecognized tax benefits for the periods indicated (excluding interest and penalties) (in thousands): Fiscal Year Ended December 28, December 29, Balance, beginning of year $ 2,381 $ 1,064 Gross increases related to current year tax positions 987 1,350 Gross increases related to prior year tax positions 37 — Gross decreases related to prior year tax positions — (14) Lapse of statute of limitations (47) (19) Balance, end of year $ 3,358 $ 2,381 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of reconciliation of shares for basic and diluted net income per share | The following table sets forth the calculation of earnings per share and weighted-average common shares outstanding at the dates indicated (in thousands, except per share data): Fiscal Year Ended December 28, December 29, December 30, Net income attributable to YETI Holdings, Inc. $ 50,434 $ 57,763 $ 15,401 Weighted average common shares outstanding — basic 85,088 81,777 81,479 Effect of dilutive securities 1,259 1,742 1,493 Weighted average common shares outstanding — diluted 86,347 83,519 82,972 Earnings per share attributable to YETI Holdings, Inc. Basic $ 0.59 $ 0.71 $ 0.19 Diluted $ 0.58 $ 0.69 $ 0.19 |
SUPPLEMENTAL STATEMENT OF CAS_2
SUPPLEMENTAL STATEMENT OF CASH FLOWS INFORMATION (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Supplemental Cash Flow Information [Abstract] | |
Schedule of net effect of changes in operating assets and liabilities | Supplemental cash flow information was as follows for the periods indication (in thousands): Year Ended December 28, December 29, December 30, Interest paid $ 19,396 $ 28,504 $ 29,879 Income taxes paid 3,524 16,347 20,640 |
QUARTERLY FINANCIAL DATA (UNA_2
QUARTERLY FINANCIAL DATA (UNAUDITED) (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information | Summarized quarterly financial data for the periods indicated is set forth below (in thousands, except per share amounts). Quarterly results were influenced by seasonal and other factors inherent in our business. First Quarter Second Quarter Third Quarter Fourth Quarter Total 2019 Net sales $ 155,353 $ 231,654 $ 229,125 $ 297,602 $ 913,734 Gross profit 76,627 116,277 120,076 162,334 475,314 Net income 2,167 22,223 21,302 4,742 50,434 Net income per share - basic $ 0.03 $ 0.26 $ 0.25 $ 0.05 $ 0.59 Net income per share - diluted $ 0.03 $ 0.26 $ 0.25 $ 0.05 $ 0.58 2018 Net sales $ 135,257 $ 206,288 $ 196,109 $ 241,179 $ 778,833 Gross profit 57,189 100,570 97,541 127,828 383,128 Net (loss) income (3,261) 18,825 17,030 25,169 57,763 Net (loss) income per share - basic $ (0.04) $ 0.23 $ 0.21 $ 0.30 $ 0.71 Net (loss) income per share - diluted $ (0.04) $ 0.23 $ 0.21 $ 0.30 $ 0.69 |
ORGANIZATION AND SIGNIFICANT _4
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES - Fiscal year (Details) | 12 Months Ended |
Dec. 28, 2019 | |
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 - Accounts Receivable and Advertising (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Allowance for doubtful accounts receivable | $ 0 | $ 0.1 | |
Advertising expense | 39 | 27.5 | $ 26.5 |
Prepaid advertising | $ 0.4 | $ 1.3 | |
Minimum | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Accounts receivable uncollateralized customer obligations trading days | 30 days | ||
Maximum | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Accounts receivable uncollateralized customer obligations trading days | 90 days |
ORGANIZATION AND SIGNIFICANT _6
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES - Concentration of Risk and Deferred Financing Fees (Details) | 12 Months Ended | |
Dec. 28, 2019USD ($)item | Dec. 29, 2018USD ($) | |
Line of Credit Facility [Line Items] | ||
Amortization of deferred financing fees | $ | $ 2,200,000 | $ 3,400,000 |
Senior Secured Credit Facility | ||
Line of Credit Facility [Line Items] | ||
Amount outstanding | $ | $ 450,000,000 | |
Hard coolers | ||
Line of Credit Facility [Line Items] | ||
Number of manufacturers | item | 2 | |
Production volume (as percentage) | 90.00% | |
Soft coolers | ||
Line of Credit Facility [Line Items] | ||
Production volume (as percentage) | 48.00% | |
Drinkware | ||
Line of Credit Facility [Line Items] | ||
Production volume (as percentage) | 81.00% | |
Bags | ||
Line of Credit Facility [Line Items] | ||
Production volume (as percentage) | 79.00% | |
Outdoor living | ||
Line of Credit Facility [Line Items] | ||
Number of manufacturers | item | 2 |
ORGANIZATION AND SIGNIFICANT _7
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES - Property and Equipment (Details) | 12 Months Ended |
Dec. 28, 2019 | |
Leasehold improvements | |
Property and Equipment | |
Leasehold improvements | lesser of 10 years, remaining lease term, or estimated useful life of the asset |
Production molds and tooling | Minimum | |
Property and Equipment | |
Property, plant and equipment, useful life | 3 years |
Production molds and tooling | Maximum | |
Property and Equipment | |
Property, plant and equipment, useful life | 5 years |
Furniture, fixtures, and equipment | Minimum | |
Property and Equipment | |
Property, plant and equipment, useful life | 3 years |
Furniture, fixtures, and equipment | Maximum | |
Property and Equipment | |
Property, plant and equipment, useful life | 7 years |
Computers and software | Minimum | |
Property and Equipment | |
Property, plant and equipment, useful life | 3 years |
Computers and software | Maximum | |
Property and Equipment | |
Property, plant and equipment, useful life | 7 years |
ORGANIZATION AND SIGNIFICANT _8
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES - Research and Development Costs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Research and development expense | $ 20.5 | $ 10.8 | $ 8.8 |
ORGANIZATION AND SIGNIFICANT _9
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES - Segment Information (Details) | 12 Months Ended |
Dec. 28, 2019item | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of reportable segments | 1 |
ORGANIZATION AND SIGNIFICANT_10
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES - Shipping and Handling Costs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Cost of product shipment to customers | $ 39.9 | $ 30.2 | $ 25.9 |
ORGANIZATION AND SIGNIFICANT_11
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES - Warranty (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Warranty reserve | $ 6,584 | $ 4,533 | |
Warranty costs | $ 3,800 | $ 3,600 | $ 2,600 |
Minimum | |||
Warranty term | 3 years | ||
Maximum | |||
Warranty term | 5 years |
ORGANIZATION AND SIGNIFICANT_12
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES - Recently Adopted Accounting Pronouncements (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 28, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Income Statement [Abstract] | |||||||||||
Net sales | $ 297,602 | $ 229,125 | $ 231,654 | $ 155,353 | $ 241,179 | $ 196,109 | $ 206,288 | $ 135,257 | $ 913,734 | $ 778,833 | $ 639,239 |
Cost of goods sold | 438,420 | 395,705 | 344,638 | ||||||||
Gross profit | 162,334 | 120,076 | 116,277 | 76,627 | 127,828 | 97,541 | 100,570 | 57,189 | 475,314 | 383,128 | 294,601 |
Selling, general, and administrative expenses | 385,543 | 280,972 | 230,634 | ||||||||
Operating income | 89,771 | 102,156 | 63,967 | ||||||||
Interest expense | (21,779) | (31,280) | (32,607) | ||||||||
Other income | (734) | (1,261) | 699 | ||||||||
Income before income taxes | 67,258 | 69,615 | 32,059 | ||||||||
Income tax expense | (16,824) | (11,852) | (16,658) | ||||||||
Net income | 4,742 | $ 21,302 | $ 22,223 | $ 2,167 | 25,169 | $ 17,030 | $ 18,825 | $ (3,261) | 50,434 | 57,763 | $ 15,401 |
ASSETS | |||||||||||
Accounts receivable, net | 82,688 | 59,328 | 82,688 | 59,328 | |||||||
Inventory | 185,700 | 145,423 | 185,700 | 145,423 | |||||||
Prepaid expenses and other current assets | 19,644 | 12,211 | 19,644 | 12,211 | |||||||
Deferred charges and other assets | 2,389 | 1,014 | 2,389 | 1,014 | |||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||
Accrued expenses and other current liabilities | 42,088 | 53,022 | 42,088 | 53,022 | |||||||
Taxes payable | 3,329 | 6,390 | 3,329 | 6,390 | |||||||
Accumulated deficit | (189,545) | $ (240,104) | (189,545) | $ (240,104) | |||||||
Impact of Adoption | No. 2014-09 | |||||||||||
Income Statement [Abstract] | |||||||||||
Net sales | (2,091) | ||||||||||
Cost of goods sold | (529) | ||||||||||
Gross profit | (1,562) | ||||||||||
Selling, general, and administrative expenses | 451 | ||||||||||
Operating income | (2,013) | ||||||||||
Income before income taxes | (2,013) | ||||||||||
Income tax expense | 494 | ||||||||||
Net income | (1,519) | ||||||||||
ASSETS | |||||||||||
Accounts receivable, net | (3,550) | (3,550) | |||||||||
Inventory | 876 | 876 | |||||||||
Prepaid expenses and other current assets | (197) | (197) | |||||||||
Deferred charges and other assets | 2 | 2 | |||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||
Accrued expenses and other current liabilities | (850) | (850) | |||||||||
Taxes payable | 0 | 0 | |||||||||
Accumulated deficit | (2,019) | (2,019) | |||||||||
Balances without Adoption of ASC 606 | |||||||||||
Income Statement [Abstract] | |||||||||||
Net sales | 911,643 | ||||||||||
Cost of goods sold | 437,891 | ||||||||||
Gross profit | 473,752 | ||||||||||
Selling, general, and administrative expenses | 385,994 | ||||||||||
Operating income | 87,758 | ||||||||||
Interest expense | (21,779) | ||||||||||
Other income | (734) | ||||||||||
Income before income taxes | 65,245 | ||||||||||
Income tax expense | (16,330) | ||||||||||
Net income | 48,915 | ||||||||||
ASSETS | |||||||||||
Accounts receivable, net | 79,138 | 79,138 | |||||||||
Inventory | 186,576 | 186,576 | |||||||||
Prepaid expenses and other current assets | 19,447 | 19,447 | |||||||||
Deferred charges and other assets | 2,391 | 2,391 | |||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||
Accrued expenses and other current liabilities | 41,238 | 41,238 | |||||||||
Taxes payable | 3,329 | 3,329 | |||||||||
Accumulated deficit | $ (191,564) | $ (191,564) |
ORGANIZATION AND SIGNIFICANT_13
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES - Recently Adopted Accounting Pronouncements Narrative (Details) - USD ($) $ in Thousands | Dec. 28, 2019 | Mar. 30, 2019 | Dec. 29, 2018 |
Operating lease right-of-use assets | $ 37,768 | ||
Present value of lease liabilities | 49,968 | ||
Finance lease assets | 1,120 | ||
Present value of finance lease liabilities | 1,135 | ||
Decrease to accumulated deficit | (189,545) | $ (240,104) | |
No. 2016-02 | |||
Operating lease right-of-use assets | 37,800 | ||
Present value of lease liabilities | 50,000 | ||
Finance lease assets | 1,100 | ||
Present value of finance lease liabilities | $ 1,100 | ||
Revision Of Prior Period Accounting Standards Update Adjustment | |||
Decrease to accumulated deficit | $ 500 |
REVENUE - Contract Balances (De
REVENUE - Contract Balances (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 28, 2019 | Dec. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | ||
Accounts receivable, net | $ 82,688 | $ 60,336 |
Contract liabilities | (4,499) | $ (9,457) |
Contract with customer liability, revenue recognized | $ 9,200 |
REVENUE - Disaggregation of Rev
REVENUE - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 28, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | $ 297,602 | $ 229,125 | $ 231,654 | $ 155,353 | $ 241,179 | $ 196,109 | $ 206,288 | $ 135,257 | $ 913,734 | $ 778,833 | $ 639,239 |
Sales Revenue | Customer Concentration Risk | One Customer | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Customer concentration | 15.00% | 16.00% | 14.00% | ||||||||
Sales Revenue | Customer Concentration Risk | Amazon Marketplace | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Customer concentration | 13.00% | 10.00% | |||||||||
United States | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | $ 873,867 | $ 761,880 | $ 635,195 | ||||||||
International | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 39,867 | 16,953 | 4,044 | ||||||||
Coolers & Equipment | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 368,874 | 331,224 | 312,237 | ||||||||
Drinkware | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | $ 526,241 | 424,164 | 310,287 | ||||||||
Customer concentration | 81.00% | ||||||||||
Other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | $ 18,619 | 23,445 | 16,715 | ||||||||
Wholesale | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 527,634 | 491,431 | 444,854 | ||||||||
Direct-to-consumer | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | $ 386,100 | $ 287,402 | $ 194,385 |
ACQUISITION (Details)
ACQUISITION (Details) | 1 Months Ended | 12 Months Ended | |||
May 31, 2017USD ($)installment | Dec. 28, 2019USD ($) | Dec. 29, 2018USD ($) | Dec. 30, 2017USD ($) | Mar. 14, 2019USD ($) | |
Business Acquisition [Line Items] | |||||
Intellectual property rights related to YETI brand | $ 90,850,000 | $ 80,019,000 | |||
Cash paid | 0 | 0 | $ 2,867,000 | ||
Trademarks | |||||
Business Acquisition [Line Items] | |||||
Intellectual property rights related to YETI brand | $ 15,565,000 | $ 12,171,000 | |||
Trademarks | Europe and Asia | |||||
Business Acquisition [Line Items] | |||||
Intellectual property rights related to YETI brand | $ 9,100,000 | ||||
Rambler on LLC | |||||
Business Acquisition [Line Items] | |||||
Assets and liabilities acquired | $ 6,000,000 | ||||
Intangible assets | $ 3,700,000 | ||||
Cash paid | 2,900,000 | ||||
Principal amount | $ 3,000,000 | ||||
Term of debt | 2 years | ||||
Interest rate | 5.00% | ||||
Debt, number of installments | installment | 2 |
PREPAID EXPENSES AND OTHER CU_3
PREPAID EXPENSES AND OTHER CURRENT ASSETS (Details) - USD ($) $ in Thousands | Dec. 28, 2019 | Dec. 29, 2018 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Prepaid expenses | $ 15,052 | $ 8,980 |
Prepaid taxes | 1,374 | 308 |
Other | 3,218 | 2,923 |
Total prepaid expenses and other current assets | $ 19,644 | $ 12,211 |
PROPERTY AND EQUIPMENT (Details
PROPERTY AND EQUIPMENT (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Property and Equipment | |||
Property and equipment — gross | $ 153,653 | $ 121,654 | |
Accumulated depreciation | (71,043) | (47,557) | |
Property and equipment — net | 82,610 | 74,097 | |
Depreciation expense | 23,200 | 19,500 | $ 15,400 |
Property and equipment - geographic | 82,610 | 74,097 | |
United States | |||
Property and Equipment | |||
Property and equipment — net | 70,672 | 65,831 | |
Property and equipment - geographic | 70,672 | 65,831 | |
International | |||
Property and Equipment | |||
Property and equipment — net | 11,938 | 8,266 | |
Property and equipment - geographic | 11,938 | 8,266 | |
Production molds, tooling, and equipment | |||
Property and Equipment | |||
Property and equipment — gross | 56,375 | 45,614 | |
Furniture, fixtures, and equipment | |||
Property and Equipment | |||
Property and equipment — gross | 7,721 | 5,752 | |
Computers and software | |||
Property and Equipment | |||
Property and equipment — gross | 52,930 | 41,209 | |
Leasehold improvements | |||
Property and Equipment | |||
Property and equipment — gross | 35,419 | 29,079 | |
Finance leases | |||
Property and Equipment | |||
Property and equipment — gross | $ 1,208 | $ 0 |
LEASES (Details Textual)
LEASES (Details Textual) - USD ($) | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Lessee, Lease, Description [Line Items] | |||
Minimum lease payments sublease rentals | $ 4,100,000 | ||
Sublease Income (new guidance) | $ 743,000 | ||
Sublease income | $ 400,000 | $ 0 | |
Minimum | |||
Lessee, Lease, Description [Line Items] | |||
Lease term | 1 year | ||
Maximum | |||
Lessee, Lease, Description [Line Items] | |||
Lease term | 20 years |
LEASES - Balance Sheet (Details
LEASES - Balance Sheet (Details) - USD ($) $ in Thousands | Dec. 28, 2019 | Dec. 29, 2018 |
Assets: | ||
Operating lease assets | $ 37,768 | |
Finance lease assets | 1,120 | |
Total lease assets | 38,888 | |
Current | ||
Operating lease liabilities | 7,768 | |
Finance lease liabilities | 185 | $ 0 |
Non-current | ||
Operating lease liabilities, non-current | 42,200 | |
Finance lease liabilities | 950 | |
Total lease liabilities | $ 51,103 |
LEASES - Lease Cost (Details)
LEASES - Lease Cost (Details) $ in Thousands | 12 Months Ended |
Dec. 28, 2019USD ($) | |
Leases [Abstract] | |
Operating lease costs | $ 8,002 |
Finance lease cost - amortization of right-of-use assets | 88 |
Finance lease cost - interest on lease liabilities | 30 |
Short-term lease cost | 249 |
Variable lease cost | 2,806 |
Sublease income | (743) |
Lease, Cost, Total | $ 10,432 |
Weighted average remaining lease term: | |
Operating lease, weighted average remaining lease term | 7 years 3 days |
Finance lease, weighted average remaining lease term | 4 years 8 months 4 days |
Finance leases | |
Operating lease, weighted average discount rate, percent | 6.62% |
Finance lease, weighted average discount rate, percent | 6.24% |
LEASES - Future Minimum Lease P
LEASES - Future Minimum Lease Payments (Details) $ in Thousands | Dec. 28, 2019USD ($) |
Operating Leases | |
2020 | $ 10,261 |
2021 | 9,843 |
2022 | 7,505 |
2023 | 7,716 |
2024 | 7,474 |
Thereafter | 20,048 |
Total lease payments | 62,847 |
Less: Effect of discounting to net present value | 12,879 |
Present value of lease liabilities | 49,968 |
Finance Leases | |
2020 | 249 |
2021 | 249 |
2022 | 249 |
2023 | 249 |
2024 | 330 |
Thereafter | 0 |
Total lease payments | 1,326 |
Less: Effect of discounting to net present value | 191 |
Present value of lease liabilities | 1,135 |
2020 | 10,510 |
2021 | 10,092 |
2022 | 7,754 |
2023 | 7,965 |
2024 | 7,804 |
Thereafter | 20,048 |
Total lease payments | 64,173 |
Less: Effect of discounting to net present value | 13,070 |
Present value of lease liabilities | $ 51,103 |
LEASES - Supplemental Cash Flow
LEASES - Supplemental Cash Flow (Details) $ in Thousands | 12 Months Ended |
Dec. 28, 2019USD ($) | |
Leases [Abstract] | |
Operating cash flows used in operating leases | $ 8,469 |
Operating cash flows used in finance leases | 30 |
Financing cash flows used in finance leases | 74 |
Finance leases | 1,208 |
Operating leases | $ 10,015 |
LEASES - Future Minimum Rental
LEASES - Future Minimum Rental Payments (Details) $ in Thousands | Dec. 28, 2019USD ($) |
Leases [Abstract] | |
2019 | $ 4,670 |
2020 | 5,024 |
2021 | 4,405 |
2022 | 4,486 |
2023 | 4,627 |
Thereafter | 23,047 |
Total lease payments | $ 46,259 |
INTANGIBLE ASSETS (Details)
INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | Mar. 14, 2019 | |
Finite Lived And Indefinite Lived Intangible Assets By Major Class Line Items | ||||
Gross carrying amount | $ 127,865 | $ 111,264 | ||
Accumulated amortization | 37,015 | 31,245 | ||
Net carrying amount | 90,850 | 80,019 | ||
Net carrying amount, finite-lived | 90,850 | 80,019 | ||
Amortization expense | 5,800 | 5,300 | $ 5,400 | |
Customer relationships | ||||
Finite Lived And Indefinite Lived Intangible Assets By Major Class Line Items | ||||
Gross carrying amount, finite-lived | 42,205 | 42,205 | ||
Accumulated amortization | (28,947) | (25,110) | ||
Net carrying amount, finite-lived | $ 13,258 | $ 17,095 | ||
Useful Life | 11 years | 11 years | ||
Trademarks | ||||
Finite Lived And Indefinite Lived Intangible Assets By Major Class Line Items | ||||
Gross carrying amount, finite-lived | $ 19,872 | $ 14,867 | ||
Accumulated amortization | (4,307) | (2,696) | ||
Net carrying amount, finite-lived | $ 15,565 | 12,171 | ||
Trademarks | Europe and Asia | ||||
Finite Lived And Indefinite Lived Intangible Assets By Major Class Line Items | ||||
Net carrying amount, finite-lived | $ 9,100 | |||
Trademarks | Minimum | ||||
Finite Lived And Indefinite Lived Intangible Assets By Major Class Line Items | ||||
Useful Life | 6 years | |||
Trademarks | Maximum | ||||
Finite Lived And Indefinite Lived Intangible Assets By Major Class Line Items | ||||
Useful Life | 30 years | |||
Patents | ||||
Finite Lived And Indefinite Lived Intangible Assets By Major Class Line Items | ||||
Gross carrying amount, finite-lived | $ 7,407 | 5,522 | ||
Accumulated amortization | (719) | (461) | ||
Net carrying amount, finite-lived | $ 6,688 | 5,061 | ||
Patents | Minimum | ||||
Finite Lived And Indefinite Lived Intangible Assets By Major Class Line Items | ||||
Useful Life | 4 years | |||
Patents | Maximum | ||||
Finite Lived And Indefinite Lived Intangible Assets By Major Class Line Items | ||||
Useful Life | 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 | ||
Accumulated amortization | $ (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 | $ 1,041 | $ 1,026 | ||
Accumulated amortization | (227) | (163) | ||
Net carrying amount, finite-lived | $ 814 | $ 863 | ||
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 | ||
Net carrying amount | 31,363 | 31,363 | ||
Trade dress | ||||
Finite Lived And Indefinite Lived Intangible Assets By Major Class Line Items | ||||
Carrying amount, indefinite-lived | 13,917 | |||
Gross carrying amount, finite-lived | 13,466 | |||
Net carrying amount | 13,917 | |||
Net carrying amount, finite-lived | $ 13,466 | |||
Trademarks | ||||
Finite Lived And Indefinite Lived Intangible Assets By Major Class Line Items | ||||
Carrying amount, indefinite-lived | 9,245 | |||
Net carrying amount | $ 9,245 |
INTANGIBLE ASSETS - Amortizatio
INTANGIBLE ASSETS - Amortization Expenses (Details) $ in Millions | Dec. 28, 2019USD ($) |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |
2020 | $ 5 |
2021 | 5 |
2022 | 5 |
2023 | 5 |
2024 | $ 3.3 |
ACCRUED EXPENSES AND OTHER CU_3
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Details) - USD ($) $ in Thousands | Dec. 28, 2019 | Dec. 29, 2018 |
Payables and Accruals [Abstract] | ||
Accrued freight and other operating expenses | $ 12,454 | $ 13,175 |
Contract liabilities | 4,499 | 9,457 |
Customer discounts, allowances, and returns | 6,976 | 7,435 |
Advertising and marketing | 3,300 | 5,355 |
Warranty reserve | 6,584 | 4,533 |
Interest payable | 420 | 459 |
Other | 7,855 | 12,608 |
Total accrued expenses and other current liabilities | $ 42,088 | $ 53,022 |
LONG-TERM DEBT (Details)
LONG-TERM DEBT (Details) - USD ($) $ in Thousands | Dec. 28, 2019 | Dec. 29, 2018 |
Long Term Debt | ||
Total debt | $ 300,000 | |
Current maturities of long-term debt | (15,000) | $ (43,638) |
Current maturities of finance lease debt | (185) | 0 |
Total long-term debt | 285,950 | 289,250 |
Unamortized deferred financing fees | (4,235) | (4,874) |
Total long-term debt, net | 281,715 | 284,376 |
Future maturity requirements on long term debt | ||
2020 | 15,000 | |
2021 | 22,500 | |
2022 | 22,500 | |
2023 | 22,500 | |
2024 | 217,500 | |
Total debt | 300,000 | |
Finance lease | ||
Long Term Debt | ||
Total debt | 1,135 | 0 |
Future maturity requirements on long term debt | ||
Total debt | 1,135 | 0 |
Total Debt | ||
Long Term Debt | ||
Total debt | 301,135 | 332,888 |
Future maturity requirements on long term debt | ||
Total debt | 301,135 | 332,888 |
Term Loan A, due 2022 | Term Loan | ||
Long Term Debt | ||
Total debt | 300,000 | 331,388 |
Future maturity requirements on long term debt | ||
Total debt | 300,000 | 331,388 |
Debt owed to Rambler On | Unsecured promissory note | ||
Long Term Debt | ||
Total debt | 0 | 1,500 |
Future maturity requirements on long term debt | ||
Total debt | $ 0 | $ 1,500 |
LONG-TERM DEBT - Narrative (Det
LONG-TERM DEBT - Narrative (Details) - USD ($) | Jul. 15, 2017 | May 19, 2016 | May 31, 2019 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 28, 2019 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 17, 2019 | Dec. 16, 2019 |
Long Term Debt | |||||||||||
Loss on modification or extinguishment of debt | $ 643,000 | $ 694,000 | $ 0 | ||||||||
Weighted average interest rate | 0.33% | 0.33% | 0.33% | ||||||||
Interest rate on borrowings | 3.99% | ||||||||||
Interest paid | $ 19,396,000 | $ 28,504,000 | $ 29,879,000 | ||||||||
Debt owed to Rambler On | Unsecured promissory note | |||||||||||
Long Term Debt | |||||||||||
Interest paid | $ 100,000 | ||||||||||
Repayments of debt | $ 1,500,000 | ||||||||||
Loan B, due 2023 | |||||||||||
Long Term Debt | |||||||||||
Loss on modification or extinguishment of debt | $ (700,000) | ||||||||||
Voluntary debt repayments on principal | 47,600,000 | ||||||||||
Interest paid | $ 600,000 | ||||||||||
Revolving credit facility | |||||||||||
Long Term Debt | |||||||||||
Available borrowing capacity | $ 100,000,000 | $ 150,000,000 | $ 100,000,000 | ||||||||
Additional deferred financing fees incurred | $ 2,000,000 | ||||||||||
Term loan A | |||||||||||
Long Term Debt | |||||||||||
Available borrowing capacity | 300,000,000 | $ 300,000,000 | $ 298,000,000 | ||||||||
Loss on modification or extinguishment of debt | $ 600,000 | ||||||||||
Capitalized costs of new lender and third-party fees | 2,100,000 | ||||||||||
Term loan A | Maturity Period, Period One | |||||||||||
Long Term Debt | |||||||||||
Periodic payment interest | 1.25% | ||||||||||
Term loan A | Maturity Period, Period Two | |||||||||||
Long Term Debt | |||||||||||
Periodic payment interest | 1.875% | ||||||||||
Term loan A | Debt Instrument, Redemption, Period One | |||||||||||
Long Term Debt | |||||||||||
Principal payments due quarterly | 3,800,000 | ||||||||||
Term loan A | Debt Instrument, Redemption, Period Two | |||||||||||
Long Term Debt | |||||||||||
Principal payments due quarterly | 5,600,000 | ||||||||||
Term loan A | Original Credit Facility | |||||||||||
Long Term Debt | |||||||||||
Available borrowing capacity | 445,000,000 | ||||||||||
Term loan B | |||||||||||
Long Term Debt | |||||||||||
Available borrowing capacity | $ 105,000,000 | ||||||||||
Letters of credit | |||||||||||
Long Term Debt | |||||||||||
Available borrowing capacity | 20,000,000 | $ 20,000,000 | $ 20,000,000 | ||||||||
Outstanding balance | $ 0 | $ 0 | $ 0 |
BENEFIT PLAN (Details)
BENEFIT PLAN (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Defined Contribution Plan [Abstract] | |||
Employer contributions | $ 1.1 | $ 1 | $ 0.7 |
STOCK BASED COMPENSATION (Detai
STOCK BASED COMPENSATION (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation expense | $ 52.3 | $ 13.2 | $ 13.4 |
Total unrecognized compensation expense for unvested options | $ 6.5 | ||
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] | |||
Compensation expense | $ 40.7 | ||
Unreccognized stock-based compensation expense | 5.1 | ||
Deferred stock units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unreccognized stock-based compensation expense | $ 0.1 | ||
2012 Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares authorized to be awarded (in shares) | 8,800,000 | ||
2018 Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares authorized to be awarded (in shares) | 4,800,000 |
STOCK BASED COMPENSATION - Assu
STOCK BASED COMPENSATION - Assumptions of fair value of stock options (Details) | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Assumptions utilized to calculate fair value of stock options granted | |||
Expected option term | 6 years | ||
Expected stock price volatility, minimum | 27.00% | ||
Expected stock price volatility, maximum | 35.00% | ||
Expected stock price volatility | 35.00% | 30.00% | |
Risk-free interest rate, minimum | 1.64% | 2.05% | |
Risk-free interest rate, maximum | 2.53% | 2.18% | |
Risk-free interest rate | 2.99% | ||
Expected dividend yield | 0.00% | 0.00% | |
Minimum | |||
Assumptions utilized to calculate fair value of stock options granted | |||
Expected option term | 5 years | ||
Maximum | |||
Assumptions utilized to calculate fair value of stock options granted | |||
Expected option term | 6 years |
STOCK BASED COMPENSATION - Summ
STOCK BASED COMPENSATION - Summary of stock options (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
2012 Plan | Stock Options | ||||
Number of Options | ||||
Options outstanding at beginning (in shares) | 2,889 | 2,884 | 3,498 | |
Options granted (in shares) | 761 | 77 | ||
Options exercised (in shares) | (1,730) | (560) | (156) | |
Options forfeited, cancelled (in shares) | (142) | (172) | (529) | |
Options expired (in shares) | 0 | (24) | (6) | |
Options outstanding at ending (in shares) | 2,889 | 2,884 | 3,498 | |
Options exercisable (in shares) | 574 | |||
Weighted Average Exercise Price | ||||
Weighted average exercise price at beginning (in dollars per share) | $ 6.56 | $ 5.22 | $ 4.10 | |
Options granted (in dollars per share) | 18 | 53.51 | ||
Options exercised (in dollars per share) | 2.06 | 0.47 | 0.65 | |
Options forfeited, cancelled (in dollars per share) | 20.88 | 47.91 | 5.71 | |
Options expired (in dollars per share) | 0 | 53.55 | 46.63 | |
Weighted average exercise price at ending (in dollars per share) | $ 6.56 | $ 5.22 | $ 4.10 | |
Options exercisable (in dollars per share) | $ 8.48 | |||
Weighted average remaining contractual term (Years) | 6 years 5 months 23 days | 6 years 1 month 6 days | 5 years 11 months 26 days | |
Weighted average remaining contractual term of options exercisable (years) | 6 years 6 months | |||
Aggregate intrinsic value of options exercisable options | $ 15,210 | |||
Total intrinsic value of stock options exercised | 46,700 | $ 10,000 | $ 5,500 | |
Total fair value of stock options vested | $ 12,200 | $ 15,200 | $ 17,700 | |
2018 Plan | ||||
Number of Options | ||||
Options granted (in shares) | 601 | |||
2018 Plan | Stock Options | ||||
Number of Options | ||||
Options granted (in shares) | 601 | |||
Weighted Average Exercise Price | ||||
Options granted (in dollars per share) | $ 23.59 | |||
2012 and 2018 Plans | Stock Options | ||||
Number of Options | ||||
Options outstanding at ending (in shares) | 1,618 | |||
Weighted Average Exercise Price | ||||
Weighted average exercise price at ending (in dollars per share) | $ 16.44 | |||
Weighted average remaining contractual term (Years) | 8 years 1 month 13 days | |||
Aggregate intrinsic value of options outstanding options | $ 29,985 |
STOCK BASED COMPENSATION - Su_2
STOCK BASED COMPENSATION - Summary of non vested stock options (Details) - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
2012 Plan | |||
Shares Under Outstanding Options | |||
Non-Vested Options at beginning (in shares) | 1,155 | ||
Forfeited (in shares) | (142) | ||
Vested (in shares) | (570) | ||
Non-Vested Options at ending (in shares) | 1,155 | ||
Weighted Average Grant Date Fair Value | |||
Non-Vested Options at beginning (in dollars per share) | $ 14.25 | ||
Granted (in dollars per share) | $ 7.22 | $ 10.84 | |
Forfeited (per share) | 7.28 | ||
Vested (per share) | $ 21.47 | ||
Non-Vested Options at ending (in dollars per share) | $ 14.25 | ||
2018 Plan | |||
Shares Under Outstanding Options | |||
Granted (in shares) | 601 | ||
Weighted Average Grant Date Fair Value | |||
Granted (in dollars per share) | $ 7.67 | ||
2012 and 2018 Plans | |||
Shares Under Outstanding Options | |||
Non-Vested Options at ending (in shares) | 1,044 | ||
Weighted Average Grant Date Fair Value | |||
Non-Vested Options at ending (in dollars per share) | $ 7.47 |
STOCK BASED COMPENSATION - RSUs
STOCK BASED COMPENSATION - RSUs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation expense | $ 52,300 | $ 13,200 | $ 13,400 |
Restricted stock units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
RSUs granted (in shares) | 338,000 | ||
Compensation expense | $ 40,700 | ||
Restricted stock units (RSUs) | Board of Directors | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Value of granted RSUs | $ 120 | ||
2012 Plan | Restricted stock units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
RSUs granted (in shares) | 385,241 | ||
RSUs granted as replacement awards (in shares) | 104,411 |
STOCK BASED COMPENSATION - Perf
STOCK BASED COMPENSATION - Performance-based RSUs and DSUs (Details) shares in Thousands | 12 Months Ended |
Dec. 28, 2019$ / sharesshares | |
Performance-Based Restricted Stock Units | |
Number of Stock Units | |
Balance at the beginning (in shares) | shares | 1,411 |
Granted (in shares) | shares | 0 |
Vested (in shares) | shares | (1,284) |
Forfeited/cancelled (in shares) | shares | (127) |
Balance at the end (in shares) | shares | 0 |
Weighted Average Grant Date Fair Value | |
Balance at the beginning (in dollars per share) | $ / shares | $ 31.74 |
Granted (in dollars per share) | $ / shares | 0 |
Vested (in dollars per share) | $ / shares | 31.74 |
Forfeited/cancelled (in dollars per share) | $ / shares | 31.74 |
Balance at the end (in dollars per share) | $ / shares | $ 0 |
Restricted stock units (RSUs) | |
Number of Stock Units | |
Balance at the beginning (in shares) | shares | 7 |
Granted (in shares) | shares | 338 |
Vested (in shares) | shares | (10) |
Forfeited/cancelled (in shares) | shares | (39) |
Balance at the end (in shares) | shares | 296 |
Weighted Average Grant Date Fair Value | |
Balance at the beginning (in dollars per share) | $ / shares | $ 17 |
Granted (in dollars per share) | $ / shares | 23.69 |
Vested (in dollars per share) | $ / shares | 17.51 |
Forfeited/cancelled (in dollars per share) | $ / shares | 22.84 |
Balance at the end (in dollars per share) | $ / shares | $ 23.85 |
Deferred stock units | |
Number of Stock Units | |
Balance at the beginning (in shares) | shares | 13 |
Granted (in shares) | shares | 10 |
Vested (in shares) | shares | 0 |
Forfeited/cancelled (in shares) | shares | 0 |
Balance at the end (in shares) | shares | 23 |
Weighted Average Grant Date Fair Value | |
Balance at the beginning (in dollars per share) | $ / shares | $ 17 |
Granted (in dollars per share) | $ / shares | 24.80 |
Vested (in dollars per share) | $ / shares | 0 |
Forfeited/cancelled (in dollars per share) | $ / shares | 0 |
Balance at the end (in dollars per share) | $ / shares | $ 20.39 |
STOCKHOLDERS' EQUITY (Details)
STOCKHOLDERS' EQUITY (Details) $ / shares in Units, $ in Thousands | Nov. 28, 2018$ / sharesshares | Oct. 29, 2018USD ($)shares | May 17, 2016USD ($)$ / shares | Oct. 31, 2018shares | Mar. 31, 2018USD ($)$ / sharesshares | Dec. 28, 2019USD ($)shares | Dec. 29, 2018USD ($)shares | Dec. 30, 2017USD ($) | Oct. 24, 2018$ / shares |
Share Data | |||||||||
Shares repurchased (in shares) | 400,000 | ||||||||
Repurchase price per share (in dollars per share) | $ / shares | $ 4.95 | ||||||||
Cash paid for repurchase of common stock | $ | $ 2,000 | $ 0 | $ 1,967 | $ 0 | |||||
Reverse stock split ratio | 0.397 | ||||||||
Number of shares authorized (in shares) | 200,000,000 | 600,000,000 | 600,000,000 | ||||||
Number of preferred stock authorized (in shares) | 30,000,000 | ||||||||
Total number of shares authorized (in shares) | 630,000,000 | ||||||||
Number of shares authorized, preferred stock (in shares) | 30,000,000 | 30,000,000 | |||||||
Shares issued (in shares) | 0 | ||||||||
Option to purchase additional shares from selling stockholders, period | 30 days | ||||||||
Cash dividend paid (in dollars per share) | $ / shares | $ 5.54 | ||||||||
Dividend paid | $ | $ 451,300 | $ 600 | $ 2,500 | $ 2,800 | |||||
Percentage used to calculate the difference in strike price and dividend | 0.70 | ||||||||
Total dividends | $ | $ 7,900 | ||||||||
IPO | |||||||||
Share Data | |||||||||
Cumulative common stock sold (in shares) | 16,000,000 | ||||||||
Company's common stock sold (in shares) | 2,500,000 | ||||||||
Common stock sold by selling stockholders (in shares) | 13,500,000 | ||||||||
Public offering, shares issued price (in dollars per share) | $ / shares | $ 18 | ||||||||
Net proceeds after deducting underwriting discounts and commissions | $ | $ 42,400 | ||||||||
IPO underwriting discounts and commissions | $ | 2,600 | ||||||||
IPO offering costs incurred | $ | $ 4,600 | ||||||||
Additional allotment option | |||||||||
Share Data | |||||||||
Common stock sold by selling stockholders (in shares) | 900,000 | 2,400,000 | |||||||
Public offering, shares issued price (in dollars per share) | $ / shares | $ 18 |
RELATED PARTY AGREEMENTS (Detai
RELATED PARTY AGREEMENTS (Details) | May 16, 2017USD ($) | Jul. 31, 2018USD ($) | Apr. 30, 2016USD ($) | Dec. 28, 2019USD ($)warehouse | Dec. 29, 2018USD ($) | Dec. 30, 2017USD ($) | Dec. 31, 2012USD ($) |
Related-Party Agreements | |||||||
Management fee, percentage on total sales | 1.00% | ||||||
Annual threshold management fee | $ 750,000 | ||||||
Number of warehouse facility leased | warehouse | 1 | ||||||
Lease notice period | 30 days | ||||||
Lease rental expense | $ 8,700 | ||||||
Fee for strategic and financial advisory services | $ 2,000,000 | $ 3,000,000 | $ 0 | $ 0 | |||
Related party transaction, agreement term | 12 months | 15 months | |||||
Strategic and financial advisory services fees payable | 3,000,000 | ||||||
Debt owed to Rambler On | |||||||
Related-Party Agreements | |||||||
Principal amount | $ 3,000,000 | ||||||
Term of debt | 2 years | ||||||
Interest rate | 5.00% | ||||||
Selling, general, and administrative expenses | |||||||
Related-Party Agreements | |||||||
Fees and out of pocket expenses | $ 80,000 | $ 80,000 | $ 80,000 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Thousands | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 |
Total future minimum lease payments and commitments under non-cancelable agreements | |||
Total | $ 37,149 | ||
2019 | 17,807 | ||
2020 | 13,328 | ||
2021 | 3,616 | ||
2022 | 2,398 | ||
2023 | 0 | ||
Thereafter | 0 | ||
Unrecognized tax benefits | 3,358 | $ 2,381 | $ 1,064 |
Other liabilities | |||
Total future minimum lease payments and commitments under non-cancelable agreements | |||
Unrecognized tax benefits | $ 4,800 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Thousands | Dec. 22, 2017 | Dec. 21, 2017 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 |
Income Tax Disclosure [Abstract] | |||||
Corporate income tax rate | 21.00% | 35.00% | 21.00% | 21.00% | 35.00% |
Amount from income tax rate reconciliation | $ 0 | $ 0 | $ 5,737 | ||
Components of income before income taxes | |||||
Domestic | 65,469 | 69,209 | 31,927 | ||
Foreign | 1,789 | 406 | 132 | ||
Income before income taxes | $ 67,258 | $ 69,615 | $ 32,059 |
INCOME TAXES - Components of in
INCOME TAXES - Components of income tax expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Current tax expense: | |||
U.S. federal | $ 627 | $ 7,190 | $ 7,440 |
State | 1,505 | 2,316 | 379 |
Foreign | 526 | 247 | 46 |
Total current tax expense | 2,658 | 9,753 | 7,865 |
Deferred tax expense (benefit): | |||
U.S. federal | 12,911 | 3,298 | 8,915 |
State | 1,304 | (1,172) | (114) |
Foreign | (49) | (27) | (8) |
Total deferred tax expense | 14,166 | 2,099 | 8,793 |
Total income tax expense | $ 16,824 | $ 11,852 | $ 16,658 |
INCOME TAXES - Reconciliation o
INCOME TAXES - Reconciliation of income taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Income Tax Disclosure [Abstract] | |||
Income taxes at the statutory rate | $ 14,124 | $ 14,619 | $ 11,223 |
Increase (decrease) resulting from: | |||
State income taxes, net of federal tax effect | 2,989 | 2,030 | 212 |
Nondeductible expenses | 203 | 248 | 180 |
Domestic production activities deduction | 0 | 0 | (121) |
Research and development tax credits | (2,157) | (578) | (656) |
Nontaxable income attributable to noncontrolling interest | 0 | 0 | 223 |
Tax expense (benefit) related to stock-based compensation | 950 | (2,396) | (803) |
Enactment of the Tax Act | 0 | 0 | 5,737 |
Nondeductible interest expense | 0 | 4 | 637 |
Revaluation of deferred tax assets for state income taxes | (92) | (1,154) | (36) |
Other | 807 | (921) | 62 |
Total income tax expense | $ 16,824 | $ 11,852 | $ 16,658 |
INCOME TAXES - Components of de
INCOME TAXES - Components of deferred tax assets and liabilities (Details) - USD ($) $ in Thousands | Dec. 28, 2019 | Dec. 29, 2018 |
Deferred tax assets: | ||
Accrued liabilities | $ 4,482 | $ 3,943 |
Allowances and other reserves | 2,030 | 1,683 |
Inventory | 1,929 | 5,472 |
Stock-based compensation | 4,761 | 14,085 |
Operating lease liabilities | 12,286 | |
Deferred rent | 0 | 2,657 |
Deferred interest | 1,703 | 0 |
Other | 1,497 | 1,719 |
Total deferred tax assets | 28,688 | 29,559 |
Deferred tax liabilities: | ||
Operating lease assets | (9,528) | |
Prepaid expenses | (1,897) | (782) |
Property and equipment | (10,971) | (8,433) |
Intangible assets | (13,546) | (11,857) |
Other | (744) | (710) |
Total deferred tax liabilities | (36,686) | (21,782) |
Net deferred tax (liabilities) assets | 7,998 | |
Net deferred tax (liabilities) assets | 7,777 | |
Deferred income taxes | 1,082 | $ 7,777 |
Other liabilities | (9,080) | |
Unremitted earnings of foreign subsidiaries | $ 2,000 |
INCOME TAXES - Unrecognized tax
INCOME TAXES - Unrecognized tax benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 28, 2019 | |
Income Tax Disclosure [Abstract] | |||
Texas research and development tax credit carryforwards | $ 1,900 | ||
Unrecognized tax benefits (excluding interest and penalties) | |||
Balance, beginning of year | $ 2,381 | $ 1,064 | |
Gross increases related to current year tax positions | 987 | 1,350 | |
Gross increases related to prior year tax positions | 37 | 0 | |
Gross decreases related to prior year tax positions | 0 | (14) | |
Lapse of statute of limitations | (47) | (19) | |
Balance, end of year | 3,358 | 2,381 | |
Unrecognized tax benefits | $ 3,358 | $ 1,064 | 3,358 |
Liability of interest and penalties related to unrecognized tax benefits | $ 300 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 28, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Reconciliation of shares for basic and diluted net income per share | |||||||||||
Net income attributable to YETI Holdings, Inc. | $ 4,742 | $ 21,302 | $ 22,223 | $ 2,167 | $ 25,169 | $ 17,030 | $ 18,825 | $ (3,261) | $ 50,434 | $ 57,763 | $ 15,401 |
Weighted Average Number of Shares Outstanding Reconciliation [Abstract] | |||||||||||
Weighted average common shares outstanding—basic | 85,088 | 81,777 | 81,479 | ||||||||
Effect of dilutive securities | 1,259 | 1,742 | 1,493 | ||||||||
Weighted average common shares outstanding—diluted | 86,347 | 83,519 | 82,972 | ||||||||
Earnings Per Share, Basic and Diluted [Abstract] | |||||||||||
Basic (in dollars per share) | $ 0.05 | $ 0.25 | $ 0.26 | $ 0.03 | $ 0.30 | $ 0.21 | $ 0.23 | $ (0.04) | $ 0.59 | $ 0.71 | $ 0.19 |
Diluted (in dollars per share) | $ 0.05 | $ 0.25 | $ 0.26 | $ 0.03 | $ 0.30 | $ 0.21 | $ 0.23 | $ (0.04) | $ 0.58 | $ 0.69 | $ 0.19 |
EARNINGS PER SHARE - Anti-dilut
EARNINGS PER SHARE - Anti-dilutive (Details) - shares shares in Millions | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Restricted stock units (RSUs) | |||
Antidilutive Securities | |||
Dilutive earnings per shares | 1.4 | ||
Stock Options | |||
Antidilutive Securities | |||
Shares excluded from computation of diluted earnings per share | 0.8 | 0.2 | 0.2 |
SUPPLEMENTAL STATEMENT OF CAS_3
SUPPLEMENTAL STATEMENT OF CASH FLOWS INFORMATION (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Supplemental Cash Flow Information [Abstract] | |||
Interest paid | $ 19,396 | $ 28,504 | $ 29,879 |
Income taxes paid | 3,524 | 16,347 | 20,640 |
Liabilities related to property and equipment outstanding | (1,000) | 1,300 | 900 |
Accrued dividends payable on unvested options | $ 400 | $ 1,700 | $ 2,200 |
QUARTERLY FINANCIAL DATA (UNA_3
QUARTERLY FINANCIAL DATA (UNAUDITED) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 28, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Net sales | $ 297,602 | $ 229,125 | $ 231,654 | $ 155,353 | $ 241,179 | $ 196,109 | $ 206,288 | $ 135,257 | $ 913,734 | $ 778,833 | $ 639,239 |
Gross profit | 162,334 | 120,076 | 116,277 | 76,627 | 127,828 | 97,541 | 100,570 | 57,189 | 475,314 | 383,128 | 294,601 |
Net income | $ 4,742 | $ 21,302 | $ 22,223 | $ 2,167 | $ 25,169 | $ 17,030 | $ 18,825 | $ (3,261) | $ 50,434 | $ 57,763 | $ 15,401 |
Net income per share - basic (in dollars per share) | $ 0.05 | $ 0.25 | $ 0.26 | $ 0.03 | $ 0.30 | $ 0.21 | $ 0.23 | $ (0.04) | $ 0.59 | $ 0.71 | $ 0.19 |
Net income per share - diluted (in dollars per share) | $ 0.05 | $ 0.25 | $ 0.26 | $ 0.03 | $ 0.30 | $ 0.21 | $ 0.23 | $ (0.04) | $ 0.58 | $ 0.69 | $ 0.19 |
Uncategorized Items - yeti-2019
Label | Element | Value |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 500,000 |
Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 500,000 |