Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Jan. 02, 2021 | Feb. 19, 2021 | Jun. 26, 2020 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Jan. 2, 2021 | ||
Current Fiscal Year End Date | --01-02 | ||
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 | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 2,450,144,266 | ||
Entity Common Stock, Shares Outstanding | 87,175,205 | ||
Documents Incorporated by Reference | Portions of the Proxy Statement for the registrant’s 2021 Annual Meeting of Stockholders, to be filed with the Securities and Exchange Commission no later than 120 days after January 2, 2021, are incorporated by reference in Part III herein. | ||
Entity Central Index Key | 0001670592 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jan. 02, 2021 | Dec. 28, 2019 |
Current assets | ||
Cash | $ 253,283 | $ 72,515 |
Accounts receivable, net | 65,417 | 82,688 |
Inventory | 140,111 | 185,700 |
Prepaid expenses and other current assets | 17,686 | 19,644 |
Total current assets | 476,497 | 360,547 |
Property and equipment, net | 78,075 | 82,610 |
Operating lease right-of-use assets | 34,090 | 37,768 |
Goodwill | 54,293 | 54,293 |
Intangible assets, net | 92,078 | 90,850 |
Deferred income taxes | 1,062 | 1,082 |
Deferred charges and other assets | 972 | 2,389 |
Total assets | 737,067 | 629,539 |
Current liabilities | ||
Accounts payable | 123,621 | 83,823 |
Accrued expenses and other current liabilities | 89,068 | 42,088 |
Taxes payable | 18,316 | 3,329 |
Accrued payroll and related costs | 25,810 | 18,119 |
Operating lease liabilities | 8,247 | 7,768 |
Current maturities of long-term debt | 22,697 | 15,185 |
Total current liabilities | 287,759 | 170,312 |
Long-term debt, net of current portion | 111,017 | 281,715 |
Operating lease liabilities, non-current | 36,546 | 42,200 |
Other liabilities | 13,327 | 13,307 |
Total liabilities | 448,649 | 507,534 |
Commitments and contingencies (Note 13) | ||
Stockholders’ Equity | ||
Common stock, par value $0.01; 600,000 shares authorized; 87,128 and 86,774 shares outstanding at January 2, 2021 and December 28, 2019, respectively | 871 | 868 |
Preferred stock, par value $0.01; 30,000 shares authorized; no shares issued or outstanding | 0 | 0 |
Additional paid-in capital | 321,678 | 310,678 |
Accumulated deficit | (33,744) | (189,545) |
Accumulated other comprehensive (loss) income | (387) | 4 |
Total stockholders’ equity | 288,418 | 122,005 |
Total liabilities and stockholders’ equity | $ 737,067 | $ 629,539 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jan. 02, 2021 | Dec. 28, 2019 |
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) | 87,128,000 | 86,774,000 |
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 | 12 Months Ended | ||
Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | |
Income Statement [Abstract] | |||
Net sales | $ 1,091,721 | $ 913,734 | $ 778,833 |
Cost of goods sold | 462,918 | 438,420 | 395,705 |
Gross profit | 628,803 | 475,314 | 383,128 |
Selling, general, and administrative expenses | 414,570 | 385,543 | 280,972 |
Operating income | 214,233 | 89,771 | 102,156 |
Interest expense | (9,155) | (21,779) | (31,280) |
Other income (expense) | 123 | (734) | (1,261) |
Income before income taxes | 205,201 | 67,258 | 69,615 |
Income tax expense | (49,400) | (16,824) | (11,852) |
Net income | $ 155,801 | $ 50,434 | $ 57,763 |
Net income per share | |||
Basic (in dollars per share) | $ 1.79 | $ 0.59 | $ 0.71 |
Diluted (in dollars per share) | $ 1.77 | $ 0.58 | $ 0.69 |
Weighted-average common shares outstanding | |||
Basic (in shares) | 86,978 | 85,088 | 81,777 |
Diluted (in shares) | 87,847 | 86,347 | 83,519 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | |
Net Income (Loss) Attributable to Parent [Abstract] | |||
Net income | $ 155,801 | $ 50,434 | $ 57,763 |
Other comprehensive (loss) income | |||
Foreign currency translation adjustments | (391) | 98 | (137) |
Total comprehensive income | $ 155,410 | $ 50,532 | $ 57,626 |
CONSOLIDATED STATEMENTS OF EQUI
CONSOLIDATED STATEMENTS OF EQUITY (DEFICIT) - USD ($) shares in Thousands, $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment | Common Stock | Additional Paid-In Capital | Accumulated Deficit | Accumulated DeficitCumulative Effect, Period of Adoption, Adjustment | Accumulated Other Comprehensive Income (Loss) |
Increase (decrease) in stockholders equity | |||||||
Adoption of new accounting standard | $ (76,231) | $ 815 | $ 219,095 | $ (296,184) | $ 43 | ||
Balance at beginning of the period (in shares) at Dec. 30, 2017 | 81,535 | ||||||
Balance at beginning of the period at Dec. 30, 2017 | (76,231) | $ 815 | 219,095 | (296,184) | 43 | ||
Increase (decrease) in stockholders equity | |||||||
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 | ||||
Stock-based compensation | 13,247 | 13,247 | |||||
Common stock issued under employee benefit plans (in shares) | 560 | ||||||
Common stock issued under employee benefit plans | 262 | $ 6 | 256 | ||||
Common stock withheld related to net share settlement of stock-based compensation (in shares) | (2) | ||||||
Common stock withheld related to net share settlement of stock-based compensation | (57) | (57) | |||||
Repurchase of common stock (in shares) | (397) | ||||||
Repurchase of common stock | (1,967) | $ (4) | (1,963) | ||||
Adoption of new accounting standard | 28,971 | $ 500 | $ 842 | 268,327 | (240,104) | $ 500 | (94) |
Dividends | (1,683) | (1,683) | |||||
Other comprehensive income (loss) | (137) | (137) | |||||
Net income | 57,763 | 57,763 | |||||
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 | 500 | $ 842 | 268,327 | (240,104) | 500 | (94) |
Increase (decrease) in stockholders equity | |||||||
Adoption of new accounting standard | 28,971 | 500 | $ 842 | 268,327 | (240,104) | 500 | (94) |
Stock-based compensation | 52,332 | 52,332 | |||||
Common stock issued under employee benefit plans (in shares) | 3,023 | ||||||
Common stock issued under employee benefit plans | 3,561 | $ 30 | 3,531 | ||||
Common stock withheld related to net share settlement of stock-based compensation (in shares) | (445) | ||||||
Common stock withheld related to net share settlement of stock-based compensation | (13,516) | $ (4) | (13,512) | ||||
Adoption of new accounting standard | 122,005 | $ 500 | $ 868 | 310,678 | (189,545) | $ 500 | 4 |
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 | ||
Increase (decrease) in stockholders equity | |||||||
Adoption of new accounting standard | 122,005 | $ 868 | 310,678 | (189,545) | 4 | ||
Stock-based compensation | 9,009 | 9,009 | |||||
Common stock issued under employee benefit plans (in shares) | 383 | ||||||
Common stock issued under employee benefit plans | 3,022 | $ 4 | 3,018 | ||||
Common stock withheld related to net share settlement of stock-based compensation (in shares) | (29) | ||||||
Common stock withheld related to net share settlement of stock-based compensation | (1,028) | $ (1) | (1,027) | ||||
Adoption of new accounting standard | 288,418 | $ 871 | 321,678 | (33,744) | (387) | ||
Other comprehensive income (loss) | (391) | (391) | |||||
Net income | 155,801 | 155,801 | |||||
Balance at end of the period (in shares) at Jan. 02, 2021 | 87,128 | ||||||
Balance at end of the period at Jan. 02, 2021 | 288,418 | $ 871 | 321,678 | (33,744) | (387) | ||
Increase (decrease) in stockholders equity | |||||||
Adoption of new accounting standard | $ 288,418 | $ 871 | $ 321,678 | $ (33,744) | $ (387) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | |
Cash Flows from Operating Activities: | |||
Net income | $ 155,801 | $ 50,434 | $ 57,763 |
Adjustments to reconcile net income to cash provided by operating activities: | |||
Depreciation and amortization | 30,535 | 28,959 | 24,777 |
Amortization of deferred financing fees | 935 | 2,189 | 3,425 |
Stock-based compensation | 9,009 | 52,332 | 13,247 |
Deferred income taxes | (3,827) | 15,615 | 2,226 |
Impairment of long-lived assets | 1,051 | 616 | 2,209 |
Loss on prepayment, modification, or extinguishment of debt | 1,064 | 643 | 694 |
Other | (74) | 0 | 0 |
Changes in operating assets and liabilities: | |||
Accounts receivable, net | 16,353 | (19,940) | 7,675 |
Inventory | 46,052 | (40,541) | 29,583 |
Other current assets | 1,982 | (6,798) | (5,089) |
Accounts payable and accrued expenses | 89,125 | 6,614 | 43,740 |
Taxes payable | 14,943 | (3,101) | (5,876) |
Other | 3,478 | (129) | 1,694 |
Net cash provided by operating activities | 366,427 | 86,893 | 176,068 |
Cash Flows from Investing Activities: | |||
Purchases of property and equipment | (15,566) | (32,077) | (20,860) |
Additions of intangibles, net | (7,378) | (16,614) | (11,027) |
Proceeds from sale of long-lived assets | 0 | 0 | 165 |
Net cash used in investing activities | (22,944) | (48,691) | (31,722) |
Cash Flows from Financing Activities: | |||
Borrowings under revolving line of credit | 50,000 | 0 | 0 |
Repayments under revolving credit facility | (50,000) | 0 | 0 |
Repayments of long‑term debt | (165,000) | (34,875) | (151,788) |
Proceeds from employee stock transactions | 3,022 | 3,561 | 262 |
Taxes paid in connection with employee stock transactions | (1,028) | (13,516) | (57) |
Finance lease principal payment | (185) | (74) | 0 |
Repayments of Term Loan A in connection with amendment | 0 | (64,250) | 0 |
Proceeds from borrowings in connection with amendment | 0 | 66,238 | 0 |
Payments of deferred financing fees | 0 | (2,135) | 0 |
Dividends | 0 | (636) | (2,523) |
Cash paid for repurchase of common stock | 0 | 0 | (1,967) |
Proceeds from issuance of common stock, net of offering costs | 0 | 0 | 38,083 |
Net cash used in financing activities | (163,191) | (45,687) | (117,990) |
Effect of exchange rate changes on cash | 476 | (51) | 45 |
Net increase (decrease) in cash | 180,768 | (7,536) | 26,401 |
Cash, beginning of period | 72,515 | 80,051 | 53,650 |
Cash, end of period | $ 253,283 | $ 72,515 | $ 80,051 |
ORGANIZATION AND SIGNIFICANT AC
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Jan. 02, 2021 | |
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 ( “ DTC ” ) channel, primarily our e-commerce website. We operate in the U.S., Canada, Australia, New Zealand, Europe, Hong Kong, China, Singapore, 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. Intercompany balances and transactions are eliminated in consolidation. Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires our management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses during the reporting period and disclosure of contingent assets and liabilities at the date of the consolidated financial statements. Estimates and assumptions about future events and their effects cannot be made with certainty, including the potential impacts and duration of the COVID-19 pandemic. Estimates may change as new events occur, when additional information becomes available and if our operating environment changes. Actual results could differ from our estimates. Fiscal Year End We have a 52- to 53-week fiscal year that ends 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 was a 53-week period and fiscal years 2019 and 2018 spanned 52 weeks each. The consolidated financial results represent the fiscal years ended January 2, 2021 ( “ 2020 ” ), December 28, 2019 ( “ 2019 ” ), and December 29, 2018 ( “ 2018 ” ). Accounts Receivable Accounts receivable are carried at original invoice amount less estimated credit losses. Upon initial recognition of a receivable, we estimate credit losses over the contractual term of the receivable and establish an allowance for credit losses based on historical experience, current available information, and expectations of future economic conditions. We mitigate credit loss risk from accounts receivable by assessing customers for credit worthiness, including ongoing credit evaluations and their payment trends. Credit risk is limited due to ongoing monitoring, high geographic customer distribution, and low concentration of risk. As the risk of loss is determined to be similar based on the credit risk factors, we aggregate receivables on a collective basis when assessing credit losses. 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 credit losses was $1.3 million as of January 2, 2021 and nominal as of December 28, 2019, 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 $42.9 million, $39.0 million, and $27.5 million for 2020, 2019, and 2018, respectively. At January 2, 2021 and December 28, 2019, prepaid advertising costs were $0.9 million and $0.4 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 hard coolers, soft coolers, Drinkware, bags, outdoor living and pet products, our two largest manufacturers comprised approximately 88%, 85%, 77%, 83%, and 95%, respectively, of our production volume during 2020. For cargo, two manufacturers accounted for all of the production in 2020. 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 January 2, 2021 and December 28, 2019, the amortization of deferred financing fees included in interest expense was $0.9 million and $2.2 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 2020 and 2019, 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 2020 and 2019. 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, and other intangibles assets, such as copyrights and domain name. 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. Capitalized costs incurred during 2018, 2019, and 2020 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. 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 $11.2 million, $20.5 million, and $10.8 million, for 2020, 2019, and 2018, 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 10 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 1 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 $62.7 million, $39.9 million, and $30.2 million for 2020, 2019, and 2018, respectively. Stock-Based Compensation Stock-based compensation awards granted to employees and directors are measured at fair value and recognized as an expense. Compensation expense equal to the fair value of performance-based awards that are expected to vest is estimated and recorded over the period the grants are earned, which is the vesting period. Compensation expense estimates are updated periodically. The vesting of the performance-based restricted stock units is also contingent upon the attainment of predetermined performance goals. Depending on the estimated probability of attainment of those performance goals, the compensation expense recognized related to the awards could increase or decrease over the remaining vesting period. We use a Black-Scholes option-pricing model to calculate the fair value of options. This model requires various judgmental assumptions including volatility, forfeiture rates and expected option life. No stock options were granted in 2020. 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 10 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. 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 Recently Adopted Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Codification (“ASC”) 842, Leases (“ASC 842”), to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. 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. The impact of the adoption of ASC 842 on previously reported interim financial statements included the recognition of right-of-use (“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. See Note 5 for further discussion. 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. This ASC 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. 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. 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, which were not material. Additionally, miscellaneous claims from customers are now recognized in net sales. Previously, these costs were recorded in selling, general and administrative expenses. In June 2016, the FASB issued Accounting Standards Update (“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, ASU 2019-05, ASU 2020-02. 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. ASU 2020-02 provides updated guidance on how an entity should measure credit losses on financial instruments. We adopted this standard in the first quarter of fiscal year 2020. The adoption of this standard did not have a material impact 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. The adoption of this ASU did not have a material impact on our consolidated financial statements and related disclosures. 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. We adopted this standard in the first quarter of fiscal year 2020. The adoption of this standard did not have a material impact on our consolidated financial statements and related disclosures. 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 amendments can be applied either retrospectively or prospectively. We adopted this standard in the first quarter of fiscal year 2020. The adoption of this standard did not have a material impact on our consolidated financial statements and related disclosures. Recent Accounting Guidance Not Yet Adopted |
REVENUE
REVENUE | 12 Months Ended |
Jan. 02, 2021 | |
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): January 2, 2021 December 28, 2019 Accounts receivable, net $ 65,417 $ 82,688 Contract liabilities (11,074) (4,499) During the year ended January 2, 2021, we recognized $4.2 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): 2020 2019 2018 (1) Net Sales by Channel: Wholesale $ 510,861 $ 527,634 $ 491,431 Direct-to-consumer 580,860 386,100 287,402 Total net sales $ 1,091,721 $ 913,734 $ 778,833 Net Sales by Category: Coolers & Equipment $ 446,585 $ 368,874 $ 331,224 Drinkware 628,566 526,241 424,164 Other 16,570 18,619 23,445 Total net sales $ 1,091,721 $ 913,734 $ 778,833 Net Sales by Geographic Region: United States $ 1,025,393 $ 873,867 $ 761,880 International 66,328 39,867 16,953 Total net sales $ 1,091,721 $ 913,734 $ 778,833 _________________________________________ (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. For 2019, and 2018, our largest single customer represented approximately 15%, and 16% of gross sales, respectively. In 2020, 2019, and 2018 Amazon Marketplace accounted for 14%, 13%, and 10% of gross sales, respectively. No other customer accounted for more than 10% of gross sales in 2020, 2019 or 2018. |
PREPAID EXPENSES AND OTHER CURR
PREPAID EXPENSES AND OTHER CURRENT ASSETS | 12 Months Ended |
Jan. 02, 2021 | |
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): January 2, December 28, Prepaid expenses $ 12,174 $ 15,052 Prepaid taxes 433 1,374 Other 5,079 3,218 Total prepaid expenses and other current assets $ 17,686 $ 19,644 |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 12 Months Ended |
Jan. 02, 2021 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT | PROPERTY AND EQUIPMENT Property and equipment consisted of the following at the dates indicated (in thousands): January 2, December 28, Production molds, tooling, and equipment $ 60,331 $ 56,375 Furniture, fixtures, and equipment 8,204 7,721 Computers and software 63,343 52,930 Leasehold improvements 37,933 35,419 Finance leases 1,208 1,208 Property and equipment, gross 171,019 153,653 Accumulated depreciation (92,944) (71,043) Property and equipment, net $ 78,075 $ 82,610 Depreciation expense was $24.6 million, $23.2 million, and $19.5 million for 2020, 2019, and 2018, respectively. Geographic Information Property and equipment, net by geographical region was as follows as of the dates indicated (in thousands): January 2, December 28, United States $ 65,509 $ 70,672 International 12,566 11,938 Property and equipment, net $ 78,075 $ 82,610 |
LEASES
LEASES | 12 Months Ended |
Jan. 02, 2021 | |
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 January 2, 2021, 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 comprise 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 January 2, 2021 Assets: Operating lease assets Operating lease right-of-use assets $ 34,090 Finance lease assets Property, plant and equipment 909 Total lease assets $ 34,999 Liabilities: Current Operating lease liabilities Operating lease liabilities $ 8,247 Finance lease liabilities Current maturities of long-term debt 197 Non-current Operating lease liabilities Operating lease liabilities, non-current 36,546 Finance lease liabilities Long-term debt, net of current portion 753 Total lease liabilities $ 45,743 The following table presents the components of lease costs (in thousands): Fiscal Year Ended January 2, 2021 Operating lease costs $ 9,599 Finance lease cost - amortization of right-of-use assets 211 Finance lease cost - interest on lease liabilities 64 Short-term lease cost 185 Variable lease cost 3,349 Sublease income (757) Total lease cost $ 12,651 The following table presents lease terms and discount rates: January 2, 2021 Weighted average remaining lease term: Operating leases 6.15 years Finance leases 3.66 years Weighted average discount rate: Operating leases 6.42 % Finance leases 6.24 % Minimum lease payments have not been reduced by minimum sublease rentals of $3.2 million due in the future under non-cancelable subleases. We received $0.8 million, $0.7 million, and $0.4 million in sublease income for 2020, 2019, and 2018, respectively. 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 January 2, 2021 (in thousands): Operating Leases Finance Leases Total 2021 $ 10,852 $ 249 $ 11,101 2022 7,752 249 8,001 2023 8,044 249 8,293 2024 7,759 330 8,089 2025 7,035 — 7,035 Thereafter 13,268 — 13,268 Total lease payments 54,710 1,077 55,787 Less: Effect of discounting to net present value 9,917 127 10,044 Present value of lease liabilities $ 44,793 $ 950 $ 45,743 The following table presents supplemental cash flow information related to our leases (in thousands): January 2, 2021 Cash paid for amounts included in measurement of liabilities: Operating cash flows used in operating leases $ 11,097 Operating cash flows used in finance leases 64 Financing cash flows used in finance leases 185 Right-of-use assets obtained in exchange for new lease liabilities: Operating leases 2,831 |
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 January 2, 2021, 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 comprise 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 January 2, 2021 Assets: Operating lease assets Operating lease right-of-use assets $ 34,090 Finance lease assets Property, plant and equipment 909 Total lease assets $ 34,999 Liabilities: Current Operating lease liabilities Operating lease liabilities $ 8,247 Finance lease liabilities Current maturities of long-term debt 197 Non-current Operating lease liabilities Operating lease liabilities, non-current 36,546 Finance lease liabilities Long-term debt, net of current portion 753 Total lease liabilities $ 45,743 The following table presents the components of lease costs (in thousands): Fiscal Year Ended January 2, 2021 Operating lease costs $ 9,599 Finance lease cost - amortization of right-of-use assets 211 Finance lease cost - interest on lease liabilities 64 Short-term lease cost 185 Variable lease cost 3,349 Sublease income (757) Total lease cost $ 12,651 The following table presents lease terms and discount rates: January 2, 2021 Weighted average remaining lease term: Operating leases 6.15 years Finance leases 3.66 years Weighted average discount rate: Operating leases 6.42 % Finance leases 6.24 % Minimum lease payments have not been reduced by minimum sublease rentals of $3.2 million due in the future under non-cancelable subleases. We received $0.8 million, $0.7 million, and $0.4 million in sublease income for 2020, 2019, and 2018, respectively. 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 January 2, 2021 (in thousands): Operating Leases Finance Leases Total 2021 $ 10,852 $ 249 $ 11,101 2022 7,752 249 8,001 2023 8,044 249 8,293 2024 7,759 330 8,089 2025 7,035 — 7,035 Thereafter 13,268 — 13,268 Total lease payments 54,710 1,077 55,787 Less: Effect of discounting to net present value 9,917 127 10,044 Present value of lease liabilities $ 44,793 $ 950 $ 45,743 The following table presents supplemental cash flow information related to our leases (in thousands): January 2, 2021 Cash paid for amounts included in measurement of liabilities: Operating cash flows used in operating leases $ 11,097 Operating cash flows used in finance leases 64 Financing cash flows used in finance leases 185 Right-of-use assets obtained in exchange for new lease liabilities: Operating leases 2,831 |
INTANGIBLE ASSETS
INTANGIBLE ASSETS | 12 Months Ended |
Jan. 02, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS | INTANGIBLE ASSETS Intangible assets consisted of the following at the dates indicated below (dollars in thousands): January 2, 2021 Useful Life Gross Carrying Amount Accumulated Amortization Net Carrying Amount Tradename Indefinite $ 31,363 $ — $ 31,363 Trade dress Indefinite 14,197 — 14,197 Trademarks Indefinite 13,514 — 13,514 Customer relationships 11 years 42,205 (32,783) 9,422 Trademarks 6 - 30 years 19,514 (5,982) 13,532 Patents 4 - 25 years 10,369 (1,072) 9,297 Other intangibles 15 years 1,045 (292) 753 Total intangible assets $ 132,207 $ (40,129) $ 92,078 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 Indefinite 9,245 — 9,245 Customer relationships 11 years 42,205 (28,947) 13,258 Trademarks (1) 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) Includes the acquisition of $9.1 million in trademarks during 2019, as discussed below. Amortization expense was $5.9 million, $5.8 million, and $5.3 million, for 2020, 2019, and 2018, respectively. Amortization expense related to intangible assets is expected to be $4.9 million for 2021 and 2022, $4.8 million for 2023, $3.4 million for 2024, and $2.1 million for 2025. 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. |
ACCRUED EXPENSES AND OTHER CURR
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | 12 Months Ended |
Jan. 02, 2021 | |
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): January 2, December 28, Accrued freight and distribution costs $ 22,047 $ 12,454 Contract liabilities 11,074 4,499 Customer discounts, allowances, and returns 10,920 6,976 Advertising and marketing 12,675 3,300 Warranty reserve 8,936 6,584 Accrued capital expenditures 4,967 48 Interest payable 89 420 Other 18,360 7,807 Total accrued expenses and other current liabilities $ 89,068 $ 42,088 |
LONG-TERM DEBT
LONG-TERM DEBT | 12 Months Ended |
Jan. 02, 2021 | |
Debt Disclosure [Abstract] | |
LONG-TERM DEBT | LONG-TERM DEBT Long-term debt consisted of the following at the dates indicated (in thousands): January 2, December 28, Term Loan A, due 2024 $ 135,000 $ 300,000 Finance lease debt 950 1,135 Total debt 135,950 301,135 Current maturities of long-term debt (22,500) (15,000) Current maturities of finance lease debt (197) (185) Total long-term debt 113,253 285,950 Unamortized deferred financing fees (2,236) (4,235) Total long-term debt, net $ 111,017 $ 281,715 At January 2, 2021, the future maturities of principal amounts of our debt obligations, excluding finance lease obligations, for the next four years and in total (see Note 5 for future maturities of finance lease obligations), consisted of the following (in thousands): Amount 2021 22,500 2022 22,500 2023 22,500 2024 67,500 Total $ 135,000 Credit Facility In May 2016, we entered into senior secured credit agreement that 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 (c) a $105.0 million term loan B maturing on May 19, 2022 (“Term Loan B”) (together with the amendments described below, the “Credit Facility”). Borrowings made under the Credit Facility bear interest at a variable rate based on the LIBOR plus an applicable margin. The applicable margin for LIBOR rate borrowings is determined by reference to a pricing grid, based on the ratio of our net leverage ratio, and ranges from 1.75% to 2.75%. Additionally, a commitment fee of between 0.175% and 0.375% also determined by reference to the pricing grid, is payable on the average daily unused amounts under the Revolving Credit Facility. 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. In March 2020, we drew down $50.0 million from our $150.0 million Revolving Credit Facility. This action was a precautionary measure to enhance our liquidity position and to increase available cash on hand in response to the COVID-19 pandemic. During the second quarter of 2020, we repaid in full the $50.0 million borrowed under the Revolving Credit Facility. The weighted average interest rate was 2.92% for borrowings under the Revolving Credit Facility. As of January 2, 2021, we had no borrowings outstanding under our Revolving Credit Facility. 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 January 2, 2021, we had no outstanding letters of credit. The weighted average interest rate on borrowings outstanding under the Term Loan A at January 2, 2021 and December 28, 2019 was 2.72% and 6.05%, respectively. 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 January 2, 2021, 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 were due quarterly during 2020 and $5.6 million are due quarterly during 2021 to 2024 with the entire unpaid balance due at maturity. In 2020, we made $150.0 million in voluntary payments on our Term Loan A from excess cash on hand, and as a result we recorded a $1.1 million loss on prepayments of debt. Extinguishment of Term Loan B 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. Extinguishment of Rambler On LLC Promissory Note 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. See Note 12 for additional information. |
BENEFIT PLAN
BENEFIT PLAN | 12 Months Ended |
Jan. 02, 2021 | |
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, $1.1 million, and $1.0 million for 2020, 2019, and 2018, respectively. |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 12 Months Ended |
Jan. 02, 2021 | |
Share-based Payment Arrangement [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. 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 (“RSAs”), 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. Stock options, RSUs, and RSAs granted generally have a three-year vesting period and vest one-third on the first anniversary of the grant date, and an additional one-sixth vest on each of the first four six-month anniversaries of the initial vesting date. Stock options have a ten year term. Performance-based restricted stock awards (“PBRSs”) vest three years from the grant date, subject to the attainment of certain predetermined performance goals and the grantee remaining employed during the vesting period. Depending on the estimated probability of attainment of those performance goals, the compensation expense recognized related to the awards could increase or decrease over the remaining vesting period. Deferred stock units (“DSUs”) are issued to non-employee directors in lieu of RSU or certain cash compensation at the election of the grantee. DSUs generally vest one year from the grant date. We recognized non-cash stock-based compensation expense of $9.0 million, $52.3 million, and $13.2 million for 2020, 2019, and 2018, respectively. As of January 2, 2021, total unrecognized stock-based compensation expense of $17.0 million for all stock-based compensation plans is expected to be recognized over a weighted-average period of 1.7 years. 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 Expected option term 6 years 6 years Expected stock price volatility 27% - 35% 35% Risk-free interest rate 1.64% - 2.53% 2.99 Expected dividend yield –% –% Weighted average fair value at date of grant $7.67 $7.22 No stock options were granted in 2020. 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 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 Balance, December 28, 2019 1,618 $ 16.44 8.12 Exercised (247) 12.23 Forfeited/cancelled (117) 21.56 Balance, January 2, 2021 1,254 $ 16.79 7.22 $ 64,781 Exercisable, January 2, 2021 715 $ 14.07 6.66 $ 38,917 The total intrinsic value of stock options exercised was $6.7 million, $46.7 million, and $10.0 million for 2020, 2019, and 2018, respectively. The total grant date fair value of stock options vested was $2.9 million, $12.2 million, and $15.2 million for 2020, 2019, and 2018, 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 28, 2019 1,044 $ 7.47 Granted — — Forfeited (117) 7.81 Vested (388) 7.41 Non-vested options at January 2, 2021 539 $ 7.44 Stock-based activity, excluding options, for the year ended January 2, 2020 is summarized below (in thousands, except per share data): Performance-Based Restricted Stock Awards Restricted Stock Units, Restricted Stock Awards, and Deferred Stock Units Number of PBRSs Weighted Average Grant Date Fair Value Number of RSUs, RSAs, and DSUs Weighted Average Grant Date Fair Value Nonvested, December 28, 2019 — $ — 319 $ 23.61 Granted 166 32.84 404 33.88 Vested/released — — (136) 23.62 Forfeited/expired (20) 32.84 (114) 29.34 Nonvested, January 2, 2021 146 $ 32.84 473 $ 30.99 As of January 2, 2021, the weighted average remaining contractual term of PBRSs was 2.12 years and the aggregate intrinsic value of PBRSs expected to vest was $5.2 million. The weighted average remaining contractual term of RSUs, RSAs, and DSUs was 1.74 years and the aggregate intrinsic value of RSUs, RSAs, and DSUs was $17.7 million as of January 2. 2021. The following table summarizes additional information about PBRSs, RSUs, RSAs, and DSUs (in thousands, except per share data): Fiscal Year Ended (1) January 2, December 28, December 29, Weighted average grant date fair value per share of awards granted $ 33.58 $ 23.72 $ 17.00 Total grant date fair value of awards vested (2) $ 3,215 $ 168 — Intrinsic value of awards vested (2) $ 5,271 $ 345 — _________________________________________ (1) Excludes performance-based RSUs activity. See below for further discussion. (2) Excludes approximately 10,500 and 13,000 DSUs that vested but were not released in 2020 and 2019, respectively. Performance-Based Restricted Stock Units During 2018, our Board of Directors approved the grant of performance-based RSUs (“PRSUs”) to various employees under the 2012 Plan. During 2018, 385,241 of those PRSUs were granted as replacement awards in exchange for 104,411 out-of-the-money stock options, which were cancelled. 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”), our largest stockholder at the time, ceased to own more than 35% of the voting power of our outstanding common stock and as a result, the PRSUs granted to various employees during 2018 fully vested pursuant to their terms. In connection with the vesting of the PRSUs, we recognized non-cash stock-based compensation expense of $40.7 million for 2019. The grant date fair value of PRSUs was $31.74 per unit, and the intrinsic value of PRSUs that vested was $38.1 million. |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 12 Months Ended |
Jan. 02, 2021 | |
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 8. 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 and $2.5 million related to the Options Dividend to vested option holders in 2019 and 2018, respectively. The Options Dividend was paid in full on September 28, 2019. |
RELATED PARTY AGREEMENTS
RELATED PARTY AGREEMENTS | 12 Months Ended |
Jan. 02, 2021 | |
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 2018, 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 May 2017, we acquired substantially all of the assets and certain liabilities from Rambler On LLC ( “ Rambler On ” two |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Jan. 02, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Future commitments under non-cancelable agreements at January 2, 2021 were as follows (in thousands): Fiscal Year Total 2021 2022 2023 2024 2025 Thereafter Other noncancelable agreements (1) $ 111,892 $ 37,897 $ 24,293 $ 19,469 $ 12,108 $ 12,364 $ 5,761 _________________________ (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 $8.7 million, net, of such liabilities on our consolidated balance sheet as of January 2, 2021. 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 |
Jan. 02, 2021 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The components of income before income taxes were as follows for the periods indicated (in thousands): Fiscal Year Ended January 2, December 28, December 29, Domestic $ 201,919 $ 65,469 $ 69,209 Foreign 3,282 1,789 406 Income before income taxes $ 205,201 $ 67,258 $ 69,615 The components of income tax expense were as follows for the periods indicated (in thousands): Fiscal Year Ended January 2, December 28, December 29, Current tax expense: U.S. federal $ 41,884 $ 627 $ 7,190 State 10,619 1,505 2,316 Foreign 829 526 247 Total current tax expense 53,332 2,658 9,753 Deferred tax expense (benefit): U.S. federal (3,332) 12,911 3,298 State (538) 1,304 (1,172) Foreign (62) (49) (27) Total deferred tax expense (3,932) 14,166 2,099 Total income tax expense $ 49,400 $ 16,824 $ 11,852 A reconciliation of income taxes computed at the federal statutory income tax rate of 21% to the effective income tax rate is as follows for the periods indicated (in thousands): Fiscal Year Ended January 2, December 28, December 29, Income taxes at the statutory rate $ 43,092 $ 14,124 $ 14,619 Increase (decrease) resulting from: State income taxes, net of federal tax effect 7,816 2,989 2,030 Nondeductible expenses 63 203 248 Research and development tax credits (580) (2,157) (578) Tax expense (benefit) related to stock-based compensation (611) 950 (2,396) Nondeductible interest expense — — 4 Revaluation of deferred tax assets for state income taxes 2 (92) (1,154) Other (382) 807 (921) Income tax expense $ 49,400 $ 16,824 $ 11,852 Deferred tax assets and liabilities consisted of the following for the periods indicated (in thousands): Fiscal Year Ended January 2, December 28, Deferred tax assets: Accrued liabilities $ 6,857 $ 4,482 Allowances and other reserves 2,979 2,030 Inventory 5,012 1,929 Stock-based compensation 4,796 4,761 Operating lease liabilities 10,714 12,286 Deferred interest — 1,703 Other 2,360 1,497 Total deferred tax assets $ 32,718 $ 28,688 Deferred tax liabilities: Operating lease assets $ (8,222) $ (9,528) Prepaid expenses (644) (1,897) Property and equipment (11,425) (10,971) Intangible assets (15,843) (13,546) Other (745) (744) Total deferred tax liabilities (36,879) (36,686) Net deferred tax liabilities $ (4,161) $ (7,998) Amounts included in the Consolidated Balance Sheets: Deferred income taxes $ 1,062 $ 1,082 Other liabilities (5,223) (9,080) Net deferred income tax liabilities $ (4,161) $ (7,998) On December 22, 2017, U.S. federal 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, 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. 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. 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 January 2, 2021, we had unremitted earnings of foreign subsidiaries of $6.9 million. The Tax Act introduced new provisions for U.S. taxation of certain global intangible low-taxed income (“GILTI”). We elected to account for the tax on GILTI as a period cost and therefore have not recorded deferred taxes related to GILTI on our foreign subsidiaries. As of January 2, 2021, 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 January 2, December 28, Balance, beginning of year $ 3,358 $ 2,381 Gross increases related to current year tax positions 4,522 987 Gross increases related to prior year tax positions — 37 Gross decreases related to prior year tax positions (65) — Lapse of statute of limitations (565) (47) Balance, end of year $ 7,250 $ 3,358 If our positions are sustained by the relevant taxing authorities, approximately $7.3 million (excluding interest and penalties) of uncertain tax position liabilities as of January 2, 2021 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 January 2, 2021, we had recognized a liability of $0.6 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 2017 through 2020 remain open to examination in the United States, and the tax years 2016 through 2020 remain open to examination in Texas and most other state jurisdictions. The 2017 through 2020 tax years remain open to examination in foreign jurisdictions. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Jan. 02, 2021 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE Basic income per share is computed by dividing net income 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 January 2, December 28, December 29, Net income $ 155,801 $ 50,434 $ 57,763 Weighted average common shares outstanding — basic 86,978 85,088 81,777 Effect of dilutive securities 869 1,259 1,742 Weighted average common shares outstanding — diluted 87,847 86,347 83,519 Earnings per share Basic $ 1.79 $ 0.59 $ 0.71 Diluted $ 1.77 $ 0.58 $ 0.69 Outstanding stock-based awards representing 0.2 million, 0.8 million, and 0.2 million shares of common stock were excluded from the calculations of diluted earnings per share in 2020, 2019, and 2018, 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 |
Jan. 02, 2021 | |
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): Fiscal Year Ended January 2, December 28, December 29, Interest paid $ 8,358 $ 19,396 $ 28,504 Income taxes paid 36,306 3,524 16,347 Liabilities related to property and equipment outstanding at 2020, 2019, and 2018 of $5.3 million, $1.0 million, $1.3 million, respectively, are not included in “ Purchases of property and equipment ” within the consolidated statement of cash flows. Non-cash financing activities during 2019, and 2018 consisted of accrued dividends payable on unvested options, which were $0.4 million and $1.7 million, respectively. No dividends were accrued in 2020. |
QUARTERLY FINANCIAL DATA (UNAUD
QUARTERLY FINANCIAL DATA (UNAUDITED) | 12 Months Ended |
Jan. 02, 2021 | |
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 2020 Net sales $ 174,412 $ 246,938 $ 294,603 $ 375,768 $ 1,091,721 Gross profit 92,458 137,525 173,976 224,844 628,803 Net income 8,480 33,482 51,445 62,394 155,801 Net income per share - basic $ 0.10 $ 0.39 $ 0.59 $ 0.72 $ 1.79 Net income per share - diluted $ 0.10 $ 0.38 $ 0.58 $ 0.71 $ 1.77 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 (loss) income 2,167 22,223 21,302 4,742 50,434 Net (loss) income per share - basic $ 0.03 $ 0.26 $ 0.25 $ 0.05 $ 0.59 Net (loss) income per share - diluted $ 0.03 $ 0.26 $ 0.25 $ 0.05 $ 0.58 |
ORGANIZATION AND SIGNIFICANT _2
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Jan. 02, 2021 | |
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 ” |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires our management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses during the reporting period and disclosure of contingent assets and liabilities at the date of the consolidated financial statements. Estimates and assumptions about future events and their effects cannot be made with certainty, including the potential impacts and duration of the COVID-19 pandemic. Estimates may change as new events occur, when additional information becomes available and if our operating environment changes. Actual results could differ from our estimates. |
Fiscal Year End | Fiscal Year End We have a 52- to 53-week fiscal year that ends 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 was a 53-week period and fiscal years 2019 and 2018 spanned 52 weeks each. The consolidated financial results represent the fiscal years ended January 2, 2021 ( “ 2020 ” ), December 28, 2019 ( “ 2019 ” ), and December 29, 2018 ( “ 2018 ” ). |
Accounts Receivable | Accounts ReceivableAccounts receivable are carried at original invoice amount less estimated credit losses. Upon initial recognition of a receivable, we estimate credit losses over the contractual term of the receivable and establish an allowance for credit losses based on historical experience, current available information, and expectations of future economic conditions. We mitigate credit loss risk from accounts receivable by assessing customers for credit worthiness, including ongoing credit evaluations and their payment trends. Credit risk is limited due to ongoing monitoring, high geographic customer distribution, and low concentration of risk. As the risk of loss is determined to be similar based on the credit risk factors, we aggregate receivables on a collective basis when assessing credit losses. 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 hard coolers, soft coolers, Drinkware, bags, outdoor living and pet products, our two largest manufacturers comprised approximately 88%, 85%, 77%, 83%, and 95%, respectively, of our production volume during 2020. For cargo, two manufacturers accounted for all of the production in 2020. |
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 January 2, 2021 and December 28, 2019, the amortization of deferred financing fees included in interest expense was $0.9 million and $2.2 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. 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 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 2020 and 2019, 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 2020 and 2019. 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, and other intangibles assets, such as copyrights and domain name. 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. Capitalized costs incurred during 2018, 2019, and 2020 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. |
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 1 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 Stock-based compensation awards granted to employees and directors are measured at fair value and recognized as an expense. Compensation expense equal to the fair value of performance-based awards that are expected to vest is estimated and recorded over the period the grants are earned, which is the vesting period. Compensation expense estimates are updated periodically. The vesting of the performance-based restricted stock units is also contingent upon the attainment of predetermined performance goals. Depending on the estimated probability of attainment of those performance goals, the compensation expense recognized related to the awards could increase or decrease over the remaining vesting period. We use a Black-Scholes option-pricing model to calculate the fair value of options. This model requires various judgmental assumptions including volatility, forfeiture rates and expected option life. No stock options were granted in 2020. 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 10 for further discussion. |
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. |
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 |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Codification (“ASC”) 842, Leases (“ASC 842”), to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. 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. The impact of the adoption of ASC 842 on previously reported interim financial statements included the recognition of right-of-use (“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. See Note 5 for further discussion. 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. This ASC 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. 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. 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, which were not material. Additionally, miscellaneous claims from customers are now recognized in net sales. Previously, these costs were recorded in selling, general and administrative expenses. In June 2016, the FASB issued Accounting Standards Update (“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, ASU 2019-05, ASU 2020-02. 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. ASU 2020-02 provides updated guidance on how an entity should measure credit losses on financial instruments. We adopted this standard in the first quarter of fiscal year 2020. The adoption of this standard did not have a material impact 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. The adoption of this ASU did not have a material impact on our consolidated financial statements and related disclosures. 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. We adopted this standard in the first quarter of fiscal year 2020. The adoption of this standard did not have a material impact on our consolidated financial statements and related disclosures. 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 amendments can be applied either retrospectively or prospectively. We adopted this standard in the first quarter of fiscal year 2020. The adoption of this standard did not have a material impact on our consolidated financial statements and related disclosures. |
Recent Accounting Guidance Not Yet Adopted | Recent Accounting Guidance Not Yet Adopted In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848) : Facilitation of the Effects of Reference Rate Reform on Financial Reporting. This ASU provides an optional expedient and exceptions for applying generally accepted accounting principles to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. In response to the concerns about structural risks of interbank offered rates (“IBORs”) and, particularly, the risk of cessation of the LIBOR, regulators in several jurisdictions around the world have undertaken reference rate reform initiatives to identify alternative reference rates that are more observable or transaction based and less susceptible to manipulation. The ASU provides companies with optional guidance to ease the potential accounting burden associated with transitioning away from reference rates that are expected to be discontinued. The ASU can be adopted no later than December 1, 2022 (fiscal year 2023) with early adoption permitted. We are evaluating the effect of adopting this new accounting guidance. |
ORGANIZATION AND SIGNIFICANT _3
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Jan. 02, 2021 | |
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 |
REVENUE (Tables)
REVENUE (Tables) | 12 Months Ended |
Jan. 02, 2021 | |
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): January 2, 2021 December 28, 2019 Accounts receivable, net $ 65,417 $ 82,688 Contract liabilities (11,074) (4,499) |
Schedule of disaggregated net sales | The following table disaggregates our net sales by channel, product category, and geography for the periods indicated (in thousands): 2020 2019 2018 (1) Net Sales by Channel: Wholesale $ 510,861 $ 527,634 $ 491,431 Direct-to-consumer 580,860 386,100 287,402 Total net sales $ 1,091,721 $ 913,734 $ 778,833 Net Sales by Category: Coolers & Equipment $ 446,585 $ 368,874 $ 331,224 Drinkware 628,566 526,241 424,164 Other 16,570 18,619 23,445 Total net sales $ 1,091,721 $ 913,734 $ 778,833 Net Sales by Geographic Region: United States $ 1,025,393 $ 873,867 $ 761,880 International 66,328 39,867 16,953 Total net sales $ 1,091,721 $ 913,734 $ 778,833 _________________________________________ (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. |
PREPAID EXPENSES AND OTHER CU_2
PREPAID EXPENSES AND OTHER CURRENT ASSETS (Tables) | 12 Months Ended |
Jan. 02, 2021 | |
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): January 2, December 28, Prepaid expenses $ 12,174 $ 15,052 Prepaid taxes 433 1,374 Other 5,079 3,218 Total prepaid expenses and other current assets $ 17,686 $ 19,644 |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 12 Months Ended |
Jan. 02, 2021 | |
Property, Plant and Equipment [Abstract] | |
Summary of property and equipment | Property and equipment consisted of the following at the dates indicated (in thousands): January 2, December 28, Production molds, tooling, and equipment $ 60,331 $ 56,375 Furniture, fixtures, and equipment 8,204 7,721 Computers and software 63,343 52,930 Leasehold improvements 37,933 35,419 Finance leases 1,208 1,208 Property and equipment, gross 171,019 153,653 Accumulated depreciation (92,944) (71,043) Property and equipment, net $ 78,075 $ 82,610 Property and equipment, net by geographical region was as follows as of the dates indicated (in thousands): January 2, December 28, United States $ 65,509 $ 70,672 International 12,566 11,938 Property and equipment, net $ 78,075 $ 82,610 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Jan. 02, 2021 | |
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 January 2, 2021 Assets: Operating lease assets Operating lease right-of-use assets $ 34,090 Finance lease assets Property, plant and equipment 909 Total lease assets $ 34,999 Liabilities: Current Operating lease liabilities Operating lease liabilities $ 8,247 Finance lease liabilities Current maturities of long-term debt 197 Non-current Operating lease liabilities Operating lease liabilities, non-current 36,546 Finance lease liabilities Long-term debt, net of current portion 753 Total lease liabilities $ 45,743 |
Summary of Lease Cost | The following table presents the components of lease costs (in thousands): Fiscal Year Ended January 2, 2021 Operating lease costs $ 9,599 Finance lease cost - amortization of right-of-use assets 211 Finance lease cost - interest on lease liabilities 64 Short-term lease cost 185 Variable lease cost 3,349 Sublease income (757) Total lease cost $ 12,651 The following table presents lease terms and discount rates: January 2, 2021 Weighted average remaining lease term: Operating leases 6.15 years Finance leases 3.66 years Weighted average discount rate: Operating leases 6.42 % Finance leases 6.24 % The following table presents supplemental cash flow information related to our leases (in thousands): January 2, 2021 Cash paid for amounts included in measurement of liabilities: Operating cash flows used in operating leases $ 11,097 Operating cash flows used in finance leases 64 Financing cash flows used in finance leases 185 Right-of-use assets obtained in exchange for new lease liabilities: Operating leases 2,831 |
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 January 2, 2021 (in thousands): Operating Leases Finance Leases Total 2021 $ 10,852 $ 249 $ 11,101 2022 7,752 249 8,001 2023 8,044 249 8,293 2024 7,759 330 8,089 2025 7,035 — 7,035 Thereafter 13,268 — 13,268 Total lease payments 54,710 1,077 55,787 Less: Effect of discounting to net present value 9,917 127 10,044 Present value of lease liabilities $ 44,793 $ 950 $ 45,743 |
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 January 2, 2021 (in thousands): Operating Leases Finance Leases Total 2021 $ 10,852 $ 249 $ 11,101 2022 7,752 249 8,001 2023 8,044 249 8,293 2024 7,759 330 8,089 2025 7,035 — 7,035 Thereafter 13,268 — 13,268 Total lease payments 54,710 1,077 55,787 Less: Effect of discounting to net present value 9,917 127 10,044 Present value of lease liabilities $ 44,793 $ 950 $ 45,743 |
INTANGIBLE ASSETS (Tables)
INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Jan. 02, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Finite-Lived Intangible Assets | Intangible assets consisted of the following at the dates indicated below (dollars in thousands): January 2, 2021 Useful Life Gross Carrying Amount Accumulated Amortization Net Carrying Amount Tradename Indefinite $ 31,363 $ — $ 31,363 Trade dress Indefinite 14,197 — 14,197 Trademarks Indefinite 13,514 — 13,514 Customer relationships 11 years 42,205 (32,783) 9,422 Trademarks 6 - 30 years 19,514 (5,982) 13,532 Patents 4 - 25 years 10,369 (1,072) 9,297 Other intangibles 15 years 1,045 (292) 753 Total intangible assets $ 132,207 $ (40,129) $ 92,078 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 Indefinite 9,245 — 9,245 Customer relationships 11 years 42,205 (28,947) 13,258 Trademarks (1) 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) Includes the acquisition of $9.1 million in trademarks during 2019, as discussed below. |
ACCRUED EXPENSES AND OTHER CU_2
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables) | 12 Months Ended |
Jan. 02, 2021 | |
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): January 2, December 28, Accrued freight and distribution costs $ 22,047 $ 12,454 Contract liabilities 11,074 4,499 Customer discounts, allowances, and returns 10,920 6,976 Advertising and marketing 12,675 3,300 Warranty reserve 8,936 6,584 Accrued capital expenditures 4,967 48 Interest payable 89 420 Other 18,360 7,807 Total accrued expenses and other current liabilities $ 89,068 $ 42,088 |
LONG-TERM DEBT (Tables)
LONG-TERM DEBT (Tables) | 12 Months Ended |
Jan. 02, 2021 | |
Debt Disclosure [Abstract] | |
Summary of long term debt | Long-term debt consisted of the following at the dates indicated (in thousands): January 2, December 28, Term Loan A, due 2024 $ 135,000 $ 300,000 Finance lease debt 950 1,135 Total debt 135,950 301,135 Current maturities of long-term debt (22,500) (15,000) Current maturities of finance lease debt (197) (185) Total long-term debt 113,253 285,950 Unamortized deferred financing fees (2,236) (4,235) Total long-term debt, net $ 111,017 $ 281,715 At January 2, 2021, the future maturities of principal amounts of our debt obligations, excluding finance lease obligations, for the next four years and in total (see Note 5 for future maturities of finance lease obligations), consisted of the following (in thousands): Amount 2021 22,500 2022 22,500 2023 22,500 2024 67,500 Total $ 135,000 |
STOCK BASED COMPENSATION (Table
STOCK BASED COMPENSATION (Tables) | 12 Months Ended |
Jan. 02, 2021 | |
Share-based Payment Arrangement [Abstract] | |
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 Expected option term 6 years 6 years Expected stock price volatility 27% - 35% 35% Risk-free interest rate 1.64% - 2.53% 2.99 Expected dividend yield –% –% Weighted average fair value at date of grant $7.67 $7.22 |
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 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 Balance, December 28, 2019 1,618 $ 16.44 8.12 Exercised (247) 12.23 Forfeited/cancelled (117) 21.56 Balance, January 2, 2021 1,254 $ 16.79 7.22 $ 64,781 Exercisable, January 2, 2021 715 $ 14.07 6.66 $ 38,917 |
Summary of non-vested 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 28, 2019 1,044 $ 7.47 Granted — — Forfeited (117) 7.81 Vested (388) 7.41 Non-vested options at January 2, 2021 539 $ 7.44 |
Summary of PBRSs, RSUs, RSAs, and DSUs | Stock-based activity, excluding options, for the year ended January 2, 2020 is summarized below (in thousands, except per share data): Performance-Based Restricted Stock Awards Restricted Stock Units, Restricted Stock Awards, and Deferred Stock Units Number of PBRSs Weighted Average Grant Date Fair Value Number of RSUs, RSAs, and DSUs Weighted Average Grant Date Fair Value Nonvested, December 28, 2019 — $ — 319 $ 23.61 Granted 166 32.84 404 33.88 Vested/released — — (136) 23.62 Forfeited/expired (20) 32.84 (114) 29.34 Nonvested, January 2, 2021 146 $ 32.84 473 $ 30.99 The following table summarizes additional information about PBRSs, RSUs, RSAs, and DSUs (in thousands, except per share data): Fiscal Year Ended (1) January 2, December 28, December 29, Weighted average grant date fair value per share of awards granted $ 33.58 $ 23.72 $ 17.00 Total grant date fair value of awards vested (2) $ 3,215 $ 168 — Intrinsic value of awards vested (2) $ 5,271 $ 345 — _________________________________________ (1) Excludes performance-based RSUs activity. See below for further discussion. (2) Excludes approximately 10,500 and 13,000 DSUs that vested but were not released in 2020 and 2019, respectively. |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Jan. 02, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Commitments | Future commitments under non-cancelable agreements at January 2, 2021 were as follows (in thousands): Fiscal Year Total 2021 2022 2023 2024 2025 Thereafter Other noncancelable agreements (1) $ 111,892 $ 37,897 $ 24,293 $ 19,469 $ 12,108 $ 12,364 $ 5,761 _________________________ (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 |
Jan. 02, 2021 | |
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 January 2, December 28, December 29, Domestic $ 201,919 $ 65,469 $ 69,209 Foreign 3,282 1,789 406 Income before income taxes $ 205,201 $ 67,258 $ 69,615 |
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 January 2, December 28, December 29, Current tax expense: U.S. federal $ 41,884 $ 627 $ 7,190 State 10,619 1,505 2,316 Foreign 829 526 247 Total current tax expense 53,332 2,658 9,753 Deferred tax expense (benefit): U.S. federal (3,332) 12,911 3,298 State (538) 1,304 (1,172) Foreign (62) (49) (27) Total deferred tax expense (3,932) 14,166 2,099 Total income tax expense $ 49,400 $ 16,824 $ 11,852 |
Schedule of reconciliation of income taxes | A reconciliation of income taxes computed at the federal statutory income tax rate of 21% to the effective income tax rate is as follows for the periods indicated (in thousands): Fiscal Year Ended January 2, December 28, December 29, Income taxes at the statutory rate $ 43,092 $ 14,124 $ 14,619 Increase (decrease) resulting from: State income taxes, net of federal tax effect 7,816 2,989 2,030 Nondeductible expenses 63 203 248 Research and development tax credits (580) (2,157) (578) Tax expense (benefit) related to stock-based compensation (611) 950 (2,396) Nondeductible interest expense — — 4 Revaluation of deferred tax assets for state income taxes 2 (92) (1,154) Other (382) 807 (921) Income tax expense $ 49,400 $ 16,824 $ 11,852 |
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 January 2, December 28, Deferred tax assets: Accrued liabilities $ 6,857 $ 4,482 Allowances and other reserves 2,979 2,030 Inventory 5,012 1,929 Stock-based compensation 4,796 4,761 Operating lease liabilities 10,714 12,286 Deferred interest — 1,703 Other 2,360 1,497 Total deferred tax assets $ 32,718 $ 28,688 Deferred tax liabilities: Operating lease assets $ (8,222) $ (9,528) Prepaid expenses (644) (1,897) Property and equipment (11,425) (10,971) Intangible assets (15,843) (13,546) Other (745) (744) Total deferred tax liabilities (36,879) (36,686) Net deferred tax liabilities $ (4,161) $ (7,998) Amounts included in the Consolidated Balance Sheets: Deferred income taxes $ 1,062 $ 1,082 Other liabilities (5,223) (9,080) Net deferred income tax liabilities $ (4,161) $ (7,998) |
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 January 2, December 28, Balance, beginning of year $ 3,358 $ 2,381 Gross increases related to current year tax positions 4,522 987 Gross increases related to prior year tax positions — 37 Gross decreases related to prior year tax positions (65) — Lapse of statute of limitations (565) (47) Balance, end of year $ 7,250 $ 3,358 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Jan. 02, 2021 | |
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 January 2, December 28, December 29, Net income $ 155,801 $ 50,434 $ 57,763 Weighted average common shares outstanding — basic 86,978 85,088 81,777 Effect of dilutive securities 869 1,259 1,742 Weighted average common shares outstanding — diluted 87,847 86,347 83,519 Earnings per share Basic $ 1.79 $ 0.59 $ 0.71 Diluted $ 1.77 $ 0.58 $ 0.69 |
SUPPLEMENTAL STATEMENT OF CAS_2
SUPPLEMENTAL STATEMENT OF CASH FLOWS INFORMATION (Tables) | 12 Months Ended |
Jan. 02, 2021 | |
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): Fiscal Year Ended January 2, December 28, December 29, Interest paid $ 8,358 $ 19,396 $ 28,504 Income taxes paid 36,306 3,524 16,347 |
QUARTERLY FINANCIAL DATA (UNA_2
QUARTERLY FINANCIAL DATA (UNAUDITED) (Tables) | 12 Months Ended |
Jan. 02, 2021 | |
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 2020 Net sales $ 174,412 $ 246,938 $ 294,603 $ 375,768 $ 1,091,721 Gross profit 92,458 137,525 173,976 224,844 628,803 Net income 8,480 33,482 51,445 62,394 155,801 Net income per share - basic $ 0.10 $ 0.39 $ 0.59 $ 0.72 $ 1.79 Net income per share - diluted $ 0.10 $ 0.38 $ 0.58 $ 0.71 $ 1.77 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 (loss) income 2,167 22,223 21,302 4,742 50,434 Net (loss) income per share - basic $ 0.03 $ 0.26 $ 0.25 $ 0.05 $ 0.59 Net (loss) income per share - diluted $ 0.03 $ 0.26 $ 0.25 $ 0.05 $ 0.58 |
ORGANIZATION AND SIGNIFICANT _4
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES - Fiscal year (Details) | 12 Months Ended |
Jan. 02, 2021 | |
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 | ||
Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Allowance for doubtful accounts receivable | $ 1.3 | ||
Advertising expense | 42.9 | $ 39 | $ 27.5 |
Prepaid advertising | $ 0.9 | $ 0.4 | |
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 | |
Jan. 02, 2021USD ($)manufacturer | Dec. 28, 2019USD ($) | |
Line of Credit Facility [Line Items] | ||
Amortization of deferred financing fees | $ | $ 900,000 | $ 2,200,000 |
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 | manufacturer | 2 | |
Production volume (as percentage) | 88.00% | |
Soft coolers | ||
Line of Credit Facility [Line Items] | ||
Production volume (as percentage) | 85.00% | |
Drinkware | ||
Line of Credit Facility [Line Items] | ||
Production volume (as percentage) | 77.00% | |
Bags | ||
Line of Credit Facility [Line Items] | ||
Production volume (as percentage) | 83.00% | |
Outdoor living | ||
Line of Credit Facility [Line Items] | ||
Number of manufacturers | manufacturer | 2 | |
Production volume (as percentage) | 95.00% |
ORGANIZATION AND SIGNIFICANT _7
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES - Property and Equipment (Details) | 12 Months Ended |
Jan. 02, 2021 | |
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 | ||
Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Research and development expense | $ 11.2 | $ 20.5 | $ 10.8 |
ORGANIZATION AND SIGNIFICANT _9
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES - Segment Information (Details) | 12 Months Ended |
Jan. 02, 2021manufacturer | |
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 | ||
Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Cost of product shipment to customers | $ 62.7 | $ 39.9 | $ 30.2 |
ORGANIZATION AND SIGNIFICANT_11
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES - Warranty (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | |
Warranty reserve | $ 8,936 | $ 6,584 | |
Warranty costs | $ 5,100 | $ 3,800 | $ 3,600 |
Minimum | |||
Warranty term | 3 years | ||
Maximum | |||
Warranty term | 5 years |
REVENUE - Contract Balances (De
REVENUE - Contract Balances (Details) - USD ($) $ in Thousands | Jan. 02, 2021 | Dec. 28, 2019 |
Revenue from Contract with Customer [Abstract] | ||
Accounts receivable, net | $ 65,417 | $ 82,688 |
Contract liabilities | $ (11,074) | $ (4,499) |
REVENUE - Narrative (Details)
REVENUE - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | |
Disaggregation of Revenue [Line Items] | |||
Contract with customer liability, revenue recognized | $ 4.2 | ||
Sales Revenue | Customer Concentration Risk | One Customer | |||
Disaggregation of Revenue [Line Items] | |||
Customer concentration | 15.00% | 16.00% | |
Sales Revenue | Customer Concentration Risk | Amazon Marketplace | |||
Disaggregation of Revenue [Line Items] | |||
Customer concentration | 14.00% | 13.00% | 10.00% |
REVENUE - Disaggregation of Rev
REVENUE - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 02, 2021 | Sep. 26, 2020 | Jun. 27, 2020 | Mar. 28, 2020 | Dec. 28, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | |
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | $ 375,768 | $ 294,603 | $ 246,938 | $ 174,412 | $ 297,602 | $ 229,125 | $ 231,654 | $ 155,353 | $ 1,091,721 | $ 913,734 | $ 778,833 |
United States | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 1,025,393 | 873,867 | 761,880 | ||||||||
International | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 66,328 | 39,867 | 16,953 | ||||||||
Coolers & Equipment | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 446,585 | 368,874 | 331,224 | ||||||||
Drinkware | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 628,566 | 526,241 | 424,164 | ||||||||
Other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 16,570 | 18,619 | 23,445 | ||||||||
Wholesale | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 510,861 | 527,634 | 491,431 | ||||||||
Direct-to-consumer | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | $ 580,860 | $ 386,100 | $ 287,402 |
PREPAID EXPENSES AND OTHER CU_3
PREPAID EXPENSES AND OTHER CURRENT ASSETS (Details) - USD ($) $ in Thousands | Jan. 02, 2021 | Dec. 28, 2019 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Prepaid expenses | $ 12,174 | $ 15,052 |
Prepaid taxes | 433 | 1,374 |
Other | 5,079 | 3,218 |
Total prepaid expenses and other current assets | $ 17,686 | $ 19,644 |
PROPERTY AND EQUIPMENT (Details
PROPERTY AND EQUIPMENT (Details) - USD ($) $ in Thousands | Jan. 02, 2021 | Dec. 28, 2019 |
Property and Equipment | ||
Property and equipment, gross | $ 171,019 | $ 153,653 |
Accumulated depreciation | (92,944) | (71,043) |
Property and equipment, net | 78,075 | 82,610 |
Property and equipment - geographic | 78,075 | 82,610 |
United States | ||
Property and Equipment | ||
Property and equipment, net | 65,509 | 70,672 |
Property and equipment - geographic | 65,509 | 70,672 |
International | ||
Property and Equipment | ||
Property and equipment, net | 12,566 | 11,938 |
Property and equipment - geographic | 12,566 | 11,938 |
Production molds, tooling, and equipment | ||
Property and Equipment | ||
Property and equipment, gross | 60,331 | 56,375 |
Furniture, fixtures, and equipment | ||
Property and Equipment | ||
Property and equipment, gross | 8,204 | 7,721 |
Computers and software | ||
Property and Equipment | ||
Property and equipment, gross | 63,343 | 52,930 |
Leasehold improvements | ||
Property and Equipment | ||
Property and equipment, gross | 37,933 | 35,419 |
Finance leases | ||
Property and Equipment | ||
Property and equipment, gross | $ 1,208 | $ 1,208 |
PROPERTY AND EQUIPMENT - Narrat
PROPERTY AND EQUIPMENT - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation expense | $ 24.6 | $ 23.2 | $ 19.5 |
LEASES - Narrative (Details)
LEASES - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | |
Lessee, Lease, Description [Line Items] | |||
Minimum lease payments sublease rentals | $ 3,200 | ||
Sublease income (new guidance) | $ 757 | $ 700 | |
Sublease income | $ 400 | ||
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 | Jan. 02, 2021 | Dec. 28, 2019 |
Assets: | ||
Operating lease assets | $ 34,090 | $ 37,768 |
Finance lease assets | 909 | |
Total lease assets | 34,999 | |
Current | ||
Operating lease liabilities | 8,247 | 7,768 |
Finance lease liabilities | 197 | 185 |
Non-current | ||
Operating lease liabilities, non-current | 36,546 | $ 42,200 |
Finance lease liabilities | 753 | |
Total lease liabilities | $ 45,743 |
LEASES - Lease Cost (Details)
LEASES - Lease Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 02, 2021 | Dec. 28, 2019 | |
Leases [Abstract] | ||
Operating lease costs | $ 9,599 | |
Finance lease cost - amortization of right-of-use assets | 211 | |
Finance lease cost - interest on lease liabilities | 64 | |
Short-term lease cost | 185 | |
Variable lease cost | 3,349 | |
Sublease Income | (757) | $ (700) |
Total lease cost | $ 12,651 | |
Weighted average remaining lease term: | ||
Operating leases (in years) | 6 years 1 month 24 days | |
Finance leases (in years) | 3 years 7 months 28 days | |
Weighted average discount rate: | ||
Operating leases (as a percent) | 6.42% | |
Finance leases (as a percent) | 6.24% |
LEASES - Future Minimum Lease P
LEASES - Future Minimum Lease Payments (Details) $ in Thousands | Jan. 02, 2021USD ($) |
Operating Leases | |
2021 | $ 10,852 |
2022 | 7,752 |
2023 | 8,044 |
2024 | 7,759 |
2025 | 7,035 |
Thereafter | 13,268 |
Total lease payments | 54,710 |
Less: Effect of discounting to net present value | 9,917 |
Present value of lease liabilities | 44,793 |
Finance Leases | |
2021 | 249 |
2022 | 249 |
2023 | 249 |
2024 | 330 |
2025 | 0 |
Thereafter | 0 |
Total lease payments | 1,077 |
Less: Effect of discounting to net present value | 127 |
Present value of lease liabilities | 950 |
Total | |
2021 | 11,101 |
2022 | 8,001 |
2023 | 8,293 |
2024 | 8,089 |
2025 | 7,035 |
Thereafter | 13,268 |
Total lease payments | 55,787 |
Less: Effect of discounting to net present value | 10,044 |
Present value of lease liabilities | $ 45,743 |
LEASES - Supplemental Cash Flow
LEASES - Supplemental Cash Flow (Details) $ in Thousands | 12 Months Ended |
Jan. 02, 2021USD ($) | |
Leases [Abstract] | |
Operating cash flows used in operating leases | $ 11,097 |
Operating cash flows used in finance leases | 64 |
Financing cash flows used in finance leases | 185 |
Operating leases | $ 2,831 |
INTANGIBLE ASSETS (Details)
INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 02, 2021 | Dec. 28, 2019 | Mar. 14, 2019 | |
Finite Lived And Indefinite Lived Intangible Assets By Major Class Line Items | |||
Gross carrying amount | $ 132,207 | $ 127,865 | |
Accumulated Amortization | (40,129) | (37,015) | |
Net carrying amount, indefinite-lived | 92,078 | 90,850 | |
Net carrying amount, finite-lived | 92,078 | 90,850 | |
Intellectual property rights related to YETI brand | 92,078 | 90,850 | |
Trademarks | |||
Finite Lived And Indefinite Lived Intangible Assets By Major Class Line Items | |||
Gross carrying amount, finite-lived | 19,514 | 19,872 | |
Accumulated Amortization | (5,982) | (4,307) | |
Net carrying amount, finite-lived | 13,532 | 15,565 | |
Intellectual property rights related to YETI brand | $ 13,532 | $ 15,565 | |
Customer relationships | |||
Finite Lived And Indefinite Lived Intangible Assets By Major Class Line Items | |||
Useful Life | 11 years | 11 years | |
Gross carrying amount, finite-lived | $ 42,205 | $ 42,205 | |
Accumulated Amortization | (32,783) | (28,947) | |
Net carrying amount, finite-lived | 9,422 | 13,258 | |
Intellectual property rights related to YETI brand | 9,422 | 13,258 | |
Patents | |||
Finite Lived And Indefinite Lived Intangible Assets By Major Class Line Items | |||
Gross carrying amount, finite-lived | 10,369 | 7,407 | |
Accumulated Amortization | (1,072) | (719) | |
Net carrying amount, finite-lived | 9,297 | 6,688 | |
Intellectual property rights related to YETI brand | $ 9,297 | $ 6,688 | |
Non-compete agreements | |||
Finite Lived And Indefinite Lived Intangible Assets By Major Class Line Items | |||
Useful Life | 5 years | ||
Gross carrying amount, finite-lived | $ 2,815 | ||
Accumulated Amortization | (2,815) | ||
Net carrying amount, finite-lived | 0 | ||
Intellectual property rights related to YETI brand | $ 0 | ||
Other intangibles | |||
Finite Lived And Indefinite Lived Intangible Assets By Major Class Line Items | |||
Useful Life | 15 years | 15 years | |
Gross carrying amount, finite-lived | $ 1,045 | $ 1,041 | |
Accumulated Amortization | (292) | (227) | |
Net carrying amount, finite-lived | 753 | 814 | |
Intellectual property rights related to YETI brand | 753 | 814 | |
Europe and Asia | Trademarks | |||
Finite Lived And Indefinite Lived Intangible Assets By Major Class Line Items | |||
Net carrying amount, finite-lived | $ 9,100 | ||
Intellectual property rights related to YETI brand | $ 9,100 | ||
Tradename | |||
Finite Lived And Indefinite Lived Intangible Assets By Major Class Line Items | |||
Gross carrying amount, indefinite-lived | 31,363 | 31,363 | |
Net carrying amount, indefinite-lived | 31,363 | 31,363 | |
Trade dress | |||
Finite Lived And Indefinite Lived Intangible Assets By Major Class Line Items | |||
Gross carrying amount, indefinite-lived | 14,197 | ||
Gross carrying amount, finite-lived | 13,917 | ||
Net carrying amount, indefinite-lived | 14,197 | ||
Net carrying amount, finite-lived | 13,917 | ||
Intellectual property rights related to YETI brand | 13,917 | ||
Trademarks | |||
Finite Lived And Indefinite Lived Intangible Assets By Major Class Line Items | |||
Gross carrying amount, indefinite-lived | 13,514 | ||
Gross carrying amount, finite-lived | 9,245 | ||
Net carrying amount, indefinite-lived | $ 13,514 | ||
Net carrying amount, finite-lived | 9,245 | ||
Intellectual property rights related to YETI brand | $ 9,245 | ||
Minimum | Trademarks | |||
Finite Lived And Indefinite Lived Intangible Assets By Major Class Line Items | |||
Useful Life | 6 years | 6 years | |
Minimum | Patents | |||
Finite Lived And Indefinite Lived Intangible Assets By Major Class Line Items | |||
Useful Life | 4 years | 4 years | |
Maximum | Trademarks | |||
Finite Lived And Indefinite Lived Intangible Assets By Major Class Line Items | |||
Useful Life | 30 years | 30 years | |
Maximum | Patents | |||
Finite Lived And Indefinite Lived Intangible Assets By Major Class Line Items | |||
Useful Life | 25 years | 25 years |
INTANGIBLE ASSETS - Amortizatio
INTANGIBLE ASSETS - Amortization Expenses (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | Mar. 14, 2019 | |
Finite Lived And Indefinite Lived Intangible Assets By Major Class Line Items | ||||
Intellectual property rights related to YETI brand | $ 92,078 | $ 90,850 | ||
Amortization expense | 5,900 | 5,800 | $ 5,300 | |
2021 | 4,900 | |||
2022 | 4,900 | |||
2023 | 4,800 | |||
2024 | 3,400 | |||
2025 | 2,100 | |||
Trademarks | ||||
Finite Lived And Indefinite Lived Intangible Assets By Major Class Line Items | ||||
Intellectual property rights related to YETI brand | $ 13,532 | $ 15,565 | ||
Europe and Asia | Trademarks | ||||
Finite Lived And Indefinite Lived Intangible Assets By Major Class Line Items | ||||
Intellectual property rights related to YETI brand | $ 9,100 |
ACCRUED EXPENSES AND OTHER CU_3
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Details) - USD ($) $ in Thousands | Jan. 02, 2021 | Dec. 28, 2019 |
Payables and Accruals [Abstract] | ||
Accrued freight and distribution costs | $ 22,047 | $ 12,454 |
Contract liabilities | 11,074 | 4,499 |
Customer discounts, allowances, and returns | 10,920 | 6,976 |
Advertising and marketing | 12,675 | 3,300 |
Warranty reserve | 8,936 | 6,584 |
Accrued capital expenditures | 4,967 | 48 |
Interest payable | 89 | 420 |
Other | 18,360 | 7,807 |
Total accrued expenses and other current liabilities | $ 89,068 | $ 42,088 |
LONG-TERM DEBT (Details)
LONG-TERM DEBT (Details) - USD ($) $ in Thousands | Jan. 02, 2021 | Dec. 28, 2019 |
Long Term Debt | ||
Total debt | $ 135,000 | |
Current maturities of long-term debt | (22,500) | $ (15,000) |
Current maturities of finance lease debt | (197) | (185) |
Total long-term debt | 113,253 | 285,950 |
Unamortized deferred financing fees | (2,236) | (4,235) |
Total long-term debt, net | 111,017 | 281,715 |
Future maturity requirements on long term debt | ||
2021 | 22,500 | |
2022 | 22,500 | |
2023 | 22,500 | |
2024 | 67,500 | |
Total debt | 135,000 | |
Finance lease debt | ||
Long Term Debt | ||
Total debt | 950 | 1,135 |
Future maturity requirements on long term debt | ||
Total debt | 950 | 1,135 |
Total debt | ||
Long Term Debt | ||
Total debt | 135,950 | 301,135 |
Future maturity requirements on long term debt | ||
Total debt | 135,950 | 301,135 |
Term Loan A, due 2024 | Term Loan | ||
Long Term Debt | ||
Total debt | 135,000 | 300,000 |
Future maturity requirements on long term debt | ||
Total debt | $ 135,000 | $ 300,000 |
LONG-TERM DEBT - Narrative (Det
LONG-TERM DEBT - Narrative (Details) - USD ($) | Jul. 15, 2017 | May 19, 2016 | Mar. 31, 2020 | May 31, 2019 | Jun. 27, 2020 | Dec. 28, 2019 | Dec. 29, 2018 | Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 17, 2019 | Dec. 16, 2019 |
Long Term Debt | ||||||||||||
Additional deferred financing fees incurred | $ 50,000,000 | $ 0 | $ 0 | |||||||||
Loss on prepayment, modification, or extinguishment of debt | 1,064,000 | 643,000 | 694,000 | |||||||||
Borrowings under revolving line of credit | 50,000,000 | 0 | 0 | |||||||||
Interest paid | $ 8,358,000 | $ 19,396,000 | $ 28,504,000 | |||||||||
Loan B, due 2023 | ||||||||||||
Long Term Debt | ||||||||||||
Loss on prepayment, modification, or extinguishment of debt | $ 700,000 | |||||||||||
Voluntary debt repayments on principal | 47,600,000 | |||||||||||
Interest paid | $ 600,000 | |||||||||||
Debt owed to Rambler On | Unsecured promissory note | ||||||||||||
Long Term Debt | ||||||||||||
Interest paid | $ 100,000 | |||||||||||
Repayments of debt | $ 1,500,000 | |||||||||||
Revolving credit facility | ||||||||||||
Long Term Debt | ||||||||||||
Additional deferred financing fees incurred | $ 2,000,000 | |||||||||||
Revolving credit facility | Line of Credit | ||||||||||||
Long Term Debt | ||||||||||||
Available borrowing capacity | $ 100,000,000 | $ 150,000,000 | $ 100,000,000 | |||||||||
Borrowings under revolving line of credit | $ 50,000,000 | |||||||||||
Extinguishment of debt, amount | $ 50,000,000 | |||||||||||
Weighted average interest rate | 2.92% | |||||||||||
Outstanding balance | $ 0 | |||||||||||
Revolving credit facility | Line of Credit | Minimum | ||||||||||||
Long Term Debt | ||||||||||||
Commitment fee percentage | 0.175% | |||||||||||
Revolving credit facility | Line of Credit | Minimum | London Interbank Offered Rate (LIBOR) | ||||||||||||
Long Term Debt | ||||||||||||
Basis spread on variable rate (as a percentage) | 1.75% | |||||||||||
Revolving credit facility | Line of Credit | Maximum | ||||||||||||
Long Term Debt | ||||||||||||
Commitment fee percentage | 0.375% | |||||||||||
Revolving credit facility | Line of Credit | Maximum | London Interbank Offered Rate (LIBOR) | ||||||||||||
Long Term Debt | ||||||||||||
Basis spread on variable rate (as a percentage) | 2.75% | |||||||||||
Term loan A | ||||||||||||
Long Term Debt | ||||||||||||
Available borrowing capacity | 300,000,000 | |||||||||||
Loss on prepayment, modification, or extinguishment of debt | $ 600,000 | $ 1,100,000 | ||||||||||
Capitalized costs of new lender and third-party fees | $ 2,100,000 | |||||||||||
Interest rate on borrowings | 2.72% | 6.05% | ||||||||||
Voluntary debt repayments on principal | $ 150,000,000 | |||||||||||
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 | Line of Credit | ||||||||||||
Long Term Debt | ||||||||||||
Available borrowing capacity | $ 300,000,000 | $ 298,000,000 | ||||||||||
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 |
BENEFIT PLAN (Details)
BENEFIT PLAN (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | |
Defined Contribution Plan [Abstract] | |||
Employer contributions | $ 1.1 | $ 1.1 | $ 1 |
STOCK BASED COMPENSATION - Narr
STOCK BASED COMPENSATION - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Non-cash stock-based compensation expense | $ 9,009 | $ 52,332 | $ 13,247 |
Compensation expense | $ 17,000 | 40,700 | |
Unrecognized compensation expense for unvested options, recognition period | 1 year 8 months 12 days | ||
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period (in years) | 3 years | ||
Total intrinsic value of stock options exercised | $ 6,700 | 46,700 | 10,000 |
Total fair value of stock options vested | $ 2,900 | $ 12,200 | $ 15,200 |
Stock Options | Share-based Payment Arrangement, Tranche One | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting rights, percentage | 0.33% | ||
Stock Options | Share-based Payment Arrangement, Tranche Two | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting rights, percentage | 0.16% | ||
Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period (in years) | 3 years | ||
Restricted Stock Units (RSUs) | Share-based Payment Arrangement, Tranche One | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting rights, percentage | 0.33% | ||
Restricted Stock Units (RSUs) | Share-based Payment Arrangement, Tranche Two | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting rights, percentage | 0.16% | ||
Restricted Stock Awards (RSAs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period (in years) | 3 years | ||
Restricted Stock Awards (RSAs) | Share-based Payment Arrangement, Tranche One | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting rights, percentage | 0.33% | ||
Restricted Stock Awards (RSAs) | Share-based Payment Arrangement, Tranche Two | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting rights, percentage | 0.16% | ||
Performance-Based Restricted Stock Units (PRSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period (in years) | 3 years | ||
Weighted average grant date fair value (in dollars per share) | $ 31.74 | ||
Fair value of equity instruments other than options vested | $ 38,100 | ||
Deferred Stock Units (DSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period (in years) | 1 year | ||
2018 Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares authorized to be awarded (in shares) | 4,800,000 | ||
2012 Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares authorized to be awarded (in shares) | 8,800,000 | ||
2012 Plan | Performance-Based Restricted Stock Units (PRSUs) | |||
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 - Assu
STOCK BASED COMPENSATION - Assumptions of fair value of stock options (Details) - $ / shares | 12 Months Ended | ||
Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | |
Assumptions utilized to calculate fair value of stock options granted | |||
Expected option term | 6 years | 6 years | |
Expected stock price volatility, minimum | 27.00% | ||
Expected stock price volatility, maximum | 35.00% | ||
Expected stock price volatility | 35.00% | ||
Risk-free interest rate, minimum | 1.64% | ||
Risk-free interest rate, maximum | 2.53% | ||
Risk-free interest rate | 2.99% | ||
Expected dividend yield | 0.00% | 0.00% | |
Weighted average grant date fair value per option granted (in dollars per share) | $ 0 | $ 7.67 | $ 7.22 |
STOCK BASED COMPENSATION - Summ
STOCK BASED COMPENSATION - Summary of stock options (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |||
Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Number of Options | ||||
Options granted (in shares) | 0 | |||
Stock Options | ||||
Number of Options | ||||
Options outstanding at beginning (in shares) | 1,618 | 2,889 | 2,884 | |
Options granted (in shares) | 0 | 601 | 761 | |
Options exercised (in shares) | (247) | (1,730) | (560) | |
Options forfeited, cancelled (in shares) | (117) | (142) | (172) | |
Options expired (in shares) | (24) | |||
Options outstanding at ending (in shares) | 1,254 | 1,618 | 2,889 | 2,884 |
Options exercisable (in shares) | 715 | |||
Weighted Average Exercise Price | ||||
Weighted average exercise price at beginning (in dollars per share) | $ 16.44 | $ 6.56 | $ 5.22 | |
Options granted (in dollars per share) | 23.59 | 18 | ||
Options exercised (in dollars per share) | 12.23 | 2.06 | 0.47 | |
Options forfeited, cancelled (in dollars per share) | 21.56 | 20.88 | 47.91 | |
Options expired (in dollars per share) | 53.55 | |||
Weighted average exercise price at ending (in dollars per share) | 16.79 | $ 16.44 | $ 6.56 | $ 5.22 |
Options exercisable (in dollars per share) | $ 14.07 | |||
Weighted average remaining contractual term (Years) | 7 years 2 months 19 days | 8 years 1 month 13 days | 6 years 5 months 23 days | 6 years 1 month 6 days |
Weighted average remaining contractual term of options exercisable (years) | 6 years 7 months 28 days | |||
Aggregate intrinsic value of options outstanding options | $ 64,781 | |||
Aggregate intrinsic value of options exercisable options | $ 38,917 |
STOCK BASED COMPENSATION - Su_2
STOCK BASED COMPENSATION - Summary of non vested stock options (Details) - $ / shares shares in Thousands | 12 Months Ended | ||
Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | |
Shares Under Outstanding Options | |||
Non-Vested Options at beginning (in shares) | 1,044 | ||
Granted (in shares) | 0 | ||
Forfeited (in shares) | (117) | ||
Vested (in shares) | (388) | ||
Non-Vested Options at ending (in shares) | 539 | 1,044 | |
Weighted Average Grant Date Fair Value | |||
Non-Vested Options at beginning (in dollars per share) | $ 7.47 | ||
Granted (in dollars per share) | 0 | $ 7.67 | $ 7.22 |
Forfeited (in dollars per share) | 7.81 | ||
Vested (in dollars per share) | 7.41 | ||
Non-Vested Options at ending (in dollars per share) | $ 7.44 | $ 7.47 |
STOCK BASED COMPENSATION - PBRS
STOCK BASED COMPENSATION - PBRSs, RSUs, RSAs, and DSUs (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | |
Performance-Based Restricted Stock Units | |||
Number of Stock Units | |||
Balance at the beginning (in shares) | 0 | ||
Granted (in shares) | 166,000 | ||
Vested (in shares) | 0 | ||
Forfeited/cancelled (in shares) | (20,000) | ||
Balance at the end (in shares) | 146,000 | 0 | |
Weighted Average Grant Date Fair Value | |||
Balance at the beginning (in dollars per share) | $ 0 | ||
Granted (in dollars per share) | 32.84 | ||
Vested (in dollars per share) | 0 | ||
Forfeited/cancelled (in dollars per share) | 32.84 | ||
Balance at the end (in dollars per share) | $ 32.84 | $ 0 | |
Weighted average remaining contractual terms | 2 years 1 month 13 days | ||
Weighted average grant date fair value (in dollars per share) | $ 32.84 | ||
Aggregate intrinsic value | $ 5,200 | ||
Vested (in shares) | 0 | ||
Restricted Stock Units, Restricted Stock Awards, and Deferred Stock Units | |||
Number of Stock Units | |||
Balance at the beginning (in shares) | 319,000 | ||
Granted (in shares) | 404,000 | ||
Vested (in shares) | (136,000) | ||
Forfeited/cancelled (in shares) | (114,000) | ||
Balance at the end (in shares) | 473,000 | 319,000 | |
Weighted Average Grant Date Fair Value | |||
Balance at the beginning (in dollars per share) | $ 23.61 | ||
Granted (in dollars per share) | 33.88 | ||
Vested (in dollars per share) | 23.62 | ||
Forfeited/cancelled (in dollars per share) | 29.34 | ||
Balance at the end (in dollars per share) | $ 30.99 | $ 23.61 | |
Weighted average remaining contractual terms | 1 year 8 months 26 days | ||
Weighted average grant date fair value (in dollars per share) | $ 33.88 | ||
Aggregate intrinsic value | $ 17,700 | ||
Vested (in shares) | 136,000 | ||
PBRSs, RSUs, RSAs, and DSUs | |||
Weighted Average Grant Date Fair Value | |||
Granted (in dollars per share) | $ 33.58 | 23.72 | $ 17 |
Weighted average grant date fair value (in dollars per share) | $ 33.58 | $ 23.72 | $ 17 |
Fair value of equity instruments other than options vested | $ 3,215 | $ 168 | $ 0 |
Aggregate intrinsic value | $ 5,271 | $ 345 | $ 0 |
Deferred Stock Units (DSUs) | |||
Number of Stock Units | |||
Vested (in shares) | (10,500) | (13,000) | |
Weighted Average Grant Date Fair Value | |||
Vested (in shares) | 10,500 | 13,000 |
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 | Jan. 02, 2021USD ($)shares | Dec. 28, 2019USD ($)shares | Dec. 29, 2018USD ($) | Oct. 24, 2018$ / 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 | $ 0 | $ 1,967 | |||||
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 | ||||||
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, 2018USD ($) | Jul. 31, 2018USD ($) | May 31, 2017USD ($) | Apr. 30, 2016USD ($) | Jan. 02, 2021USD ($)facility | Dec. 28, 2019USD ($) | Dec. 29, 2018USD ($) | Dec. 30, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2012USD ($) |
Related-Party Agreements | ||||||||||
Management fee, percentage on total sales | 1.00% | |||||||||
Annual threshold management fee | $ 750,000 | |||||||||
Number of warehouse facility leased | facility | 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 | |||||||||
Rambler on LLC | ||||||||||
Related-Party Agreements | ||||||||||
Assets and liabilities acquired | $ 6,000,000 | |||||||||
Cash paid | $ 2,900,000 | |||||||||
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 | Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 |
Total future minimum lease payments and commitments under non-cancelable agreements | |||
Total | $ 111,892 | ||
2021 | 37,897 | ||
2022 | 24,293 | ||
2023 | 19,469 | ||
2024 | 12,108 | ||
2025 | 12,364 | ||
Thereafter | 5,761 | ||
Unrecognized tax benefits | 7,250 | $ 3,358 | $ 2,381 |
Other liabilities | |||
Total future minimum lease payments and commitments under non-cancelable agreements | |||
Unrecognized tax benefits | $ 8,700 |
INCOME TAXES - Components of in
INCOME TAXES - Components of income before income taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | |
Components of income before income taxes | |||
Domestic | $ 201,919 | $ 65,469 | $ 69,209 |
Foreign | 3,282 | 1,789 | 406 |
Income before income taxes | $ 205,201 | $ 67,258 | $ 69,615 |
INCOME TAXES - Components of _2
INCOME TAXES - Components of income tax expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | |
Current tax expense: | |||
U.S. federal | $ 41,884 | $ 627 | $ 7,190 |
State | 10,619 | 1,505 | 2,316 |
Foreign | 829 | 526 | 247 |
Total current tax expense | 53,332 | 2,658 | 9,753 |
Deferred tax expense (benefit): | |||
U.S. federal | (3,332) | 12,911 | 3,298 |
State | (538) | 1,304 | (1,172) |
Foreign | (62) | (49) | (27) |
Total deferred tax expense | (3,932) | 14,166 | 2,099 |
Total income tax expense | $ 49,400 | $ 16,824 | $ 11,852 |
INCOME TAXES - Reconciliation o
INCOME TAXES - Reconciliation of income taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | |
Income Tax Disclosure [Abstract] | |||
Income taxes at the statutory rate | $ 43,092 | $ 14,124 | $ 14,619 |
Increase (decrease) resulting from: | |||
State income taxes, net of federal tax effect | 7,816 | 2,989 | 2,030 |
Nondeductible expenses | 63 | 203 | 248 |
Research and development tax credits | (580) | (2,157) | (578) |
Tax expense (benefit) related to stock-based compensation | (611) | 950 | (2,396) |
Nondeductible interest expense | 0 | 0 | 4 |
Revaluation of deferred tax assets for state income taxes | 2 | (92) | (1,154) |
Other | (382) | 807 | (921) |
Total income tax expense | $ 49,400 | $ 16,824 | $ 11,852 |
INCOME TAXES - Components of de
INCOME TAXES - Components of deferred tax assets and liabilities (Details) - USD ($) $ in Thousands | Jan. 02, 2021 | Dec. 28, 2019 |
Deferred tax assets: | ||
Accrued liabilities | $ 6,857 | $ 4,482 |
Allowances and other reserves | 2,979 | 2,030 |
Inventory | 5,012 | 1,929 |
Stock-based compensation | 4,796 | 4,761 |
Operating lease liabilities | 10,714 | 12,286 |
Deferred interest | 0 | 1,703 |
Other | 2,360 | 1,497 |
Total deferred tax assets | 32,718 | 28,688 |
Deferred tax liabilities: | ||
Operating lease assets | (8,222) | (9,528) |
Prepaid expenses | (644) | (1,897) |
Property and equipment | (11,425) | (10,971) |
Intangible assets | (15,843) | (13,546) |
Other | (745) | (744) |
Total deferred tax liabilities | (36,879) | (36,686) |
Net deferred tax liabilities | (4,161) | (7,998) |
Deferred income taxes | 1,062 | 1,082 |
Other liabilities | $ (5,223) | $ (9,080) |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | |
Income Tax Disclosure [Abstract] | |||
Corporate income tax rate | 21.00% | 21.00% | 21.00% |
Unremitted earnings of foreign subsidiaries | $ 6,900 | ||
Texas research and development tax credit carryforwards | 1,900 | ||
Unrecognized tax benefits | 7,250 | $ 3,358 | $ 2,381 |
Liability of interest and penalties related to unrecognized tax benefits | $ 600 |
INCOME TAXES - Unrecognized tax
INCOME TAXES - Unrecognized tax benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 02, 2021 | Dec. 28, 2019 | |
Unrecognized tax benefits (excluding interest and penalties) | ||
Balance, beginning of year | $ 3,358 | $ 2,381 |
Gross increases related to current year tax positions | 4,522 | 987 |
Gross increases related to prior year tax positions | 0 | 37 |
Gross decreases related to prior year tax positions | (65) | 0 |
Lapse of statute of limitations | (565) | (47) |
Balance, end of year | $ 7,250 | $ 3,358 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 02, 2021 | Sep. 26, 2020 | Jun. 27, 2020 | Mar. 28, 2020 | Dec. 28, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | |
Reconciliation of shares for basic and diluted net income per share | |||||||||||
Net income | $ 62,394 | $ 51,445 | $ 33,482 | $ 8,480 | $ 4,742 | $ 21,302 | $ 22,223 | $ 2,167 | $ 155,801 | $ 50,434 | $ 57,763 |
Weighted Average Number of Shares Outstanding Reconciliation [Abstract] | |||||||||||
Weighted average common shares outstanding - basic (in shares) | 86,978 | 85,088 | 81,777 | ||||||||
Effective of dilutive securities (in shares) | 869 | 1,259 | 1,742 | ||||||||
Weighted average common shares outstanding - diluted (in shares) | 87,847 | 86,347 | 83,519 | ||||||||
Earnings per share | |||||||||||
Basic (in dollars per share) | $ 0.72 | $ 0.59 | $ 0.39 | $ 0.10 | $ 0.05 | $ 0.25 | $ 0.26 | $ 0.03 | $ 1.79 | $ 0.59 | $ 0.71 |
Diluted (in dollars per share) | $ 0.71 | $ 0.58 | $ 0.38 | $ 0.10 | $ 0.05 | $ 0.25 | $ 0.26 | $ 0.03 | $ 1.77 | $ 0.58 | $ 0.69 |
EARNINGS PER SHARE - Anti-dilut
EARNINGS PER SHARE - Anti-dilutive (Details) - shares shares in Millions | 12 Months Ended | ||
Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | |
Restricted Stock Units (RSUs) | |||
Antidilutive Securities | |||
Dilutive earnings per shares (in shares) | 1.4 | ||
Stock Options | |||
Antidilutive Securities | |||
Shares excluded from computation of diluted earnings per share (in shares) | 0.2 | 0.8 | 0.2 |
SUPPLEMENTAL STATEMENT OF CAS_3
SUPPLEMENTAL STATEMENT OF CASH FLOWS INFORMATION (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | |
Supplemental Cash Flow Information [Abstract] | |||
Interest paid | $ 8,358 | $ 19,396 | $ 28,504 |
Income taxes paid | $ 36,306 | $ 3,524 | $ 16,347 |
SUPPLEMENTAL STATEMENT OF CAS_4
SUPPLEMENTAL STATEMENT OF CASH FLOWS INFORMATION - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | |
Supplemental Cash Flow Information [Abstract] | |||
Liabilities related to property and equipment outstanding | $ 5.3 | $ 1 | $ 1.3 |
Accrued dividends payable on unvested options | $ 0 | $ 0.4 | $ 1.7 |
QUARTERLY FINANCIAL DATA (UNA_3
QUARTERLY FINANCIAL DATA (UNAUDITED) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 02, 2021 | Sep. 26, 2020 | Jun. 27, 2020 | Mar. 28, 2020 | Dec. 28, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Net sales | $ 375,768 | $ 294,603 | $ 246,938 | $ 174,412 | $ 297,602 | $ 229,125 | $ 231,654 | $ 155,353 | $ 1,091,721 | $ 913,734 | $ 778,833 |
Gross profit | 224,844 | 173,976 | 137,525 | 92,458 | 162,334 | 120,076 | 116,277 | 76,627 | 628,803 | 475,314 | 383,128 |
Net income | $ 62,394 | $ 51,445 | $ 33,482 | $ 8,480 | $ 4,742 | $ 21,302 | $ 22,223 | $ 2,167 | $ 155,801 | $ 50,434 | $ 57,763 |
Net income per share - basic (in dollars per share) | $ 0.72 | $ 0.59 | $ 0.39 | $ 0.10 | $ 0.05 | $ 0.25 | $ 0.26 | $ 0.03 | $ 1.79 | $ 0.59 | $ 0.71 |
Net income per share - diluted (in dollars per share) | $ 0.71 | $ 0.58 | $ 0.38 | $ 0.10 | $ 0.05 | $ 0.25 | $ 0.26 | $ 0.03 | $ 1.77 | $ 0.58 | $ 0.69 |