COVER PAGE
COVER PAGE - USD ($) | 12 Months Ended | ||
Dec. 30, 2023 | Feb. 15, 2024 | Jun. 30, 2023 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 30, 2023 | ||
Current Fiscal Year End Date | --12-30 | ||
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 | ||
Document Financial Statement Error Correction [Flag] | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 2,644,447,229 | ||
Entity Common Stock, Shares Outstanding | 86,933,474 | ||
Documents Incorporated by Reference | Portions of the Proxy Statement for the registrant’s 2023 Annual Meeting of Stockholders, to be filed with the Securities and Exchange Commission no later than 120 days after December 30, 2023, are incorporated by reference in Part III herein. | ||
Entity Central Index Key | 0001670592 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY |
Audit Information
Audit Information | 12 Months Ended |
Dec. 30, 2023 | |
Audit Information [Abstract] | |
Auditor Name | PricewaterhouseCoopers LLP |
Auditor Location | Austin, Texas |
Auditor Firm ID | 238 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 30, 2023 | Dec. 31, 2022 |
Current assets | ||
Cash | $ 438,960 | $ 234,741 |
Accounts receivable, net | 95,774 | 79,446 |
Inventory | 337,208 | 371,412 |
Prepaid expenses and other current assets | 42,463 | 33,321 |
Total current assets | 914,405 | 718,920 |
Property and equipment, net | 130,714 | 124,587 |
Operating lease right-of-use assets | 77,556 | 55,406 |
Goodwill | 54,293 | 54,293 |
Intangible assets, net | 117,629 | 99,429 |
Other assets | 2,595 | 24,130 |
Total assets | 1,297,192 | 1,076,765 |
Current liabilities | ||
Accounts payable | 190,392 | 140,818 |
Accrued expenses and other current liabilities | 130,026 | 211,399 |
Taxes payable | 33,489 | 15,289 |
Accrued payroll and related costs | 23,141 | 4,847 |
Operating lease liabilities | 14,726 | 12,076 |
Current maturities of long-term debt | 6,579 | 24,611 |
Total current liabilities | 398,353 | 409,040 |
Long-term debt, net of current portion | 78,645 | 71,741 |
Operating lease liabilities, non-current | 76,163 | 55,649 |
Other liabilities | 20,421 | 13,858 |
Total liabilities | 573,582 | 550,288 |
Commitments and contingencies (Note 11) | ||
Stockholders’ Equity | ||
Common stock, par value $0.01; 600,000,000 shares authorized; 88,592,761 and 86,916,210 shares issued and outstanding at December 30, 2023, respectively, and 88,107,787 and 86,431,236 shares issued and outstanding at December 31, 2022, respectively | 886 | 881 |
Treasury stock, at cost; 1,676,551 shares | (100,025) | (100,025) |
Preferred stock, par value $0.01; 30,000,000 shares authorized; no shares issued or outstanding | 0 | 0 |
Additional paid-in capital | 386,377 | 357,490 |
Retained earnings | 438,436 | 268,551 |
Accumulated other comprehensive loss | (2,064) | (420) |
Total stockholders’ equity | 723,610 | 526,477 |
Total liabilities and stockholders’ equity | $ 1,297,192 | $ 1,076,765 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 30, 2023 | Dec. 31, 2022 |
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, shares, issued (in shares) | 88,592,761 | 88,107,787 |
Common stock, outstanding (in shares) | 86,916,210 | 86,431,236 |
Treasury stock, shares (in shares) | 1,676,551 | 1,676,551 |
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 | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Income Statement [Abstract] | |||
Net sales | $ 1,658,713 | $ 1,595,222 | $ 1,410,989 |
Cost of goods sold | 715,527 | 831,821 | 594,876 |
Gross profit | 943,186 | 763,401 | 816,113 |
Selling, general, and administrative expenses | 717,728 | 637,040 | 541,175 |
Operating income | 225,458 | 126,361 | 274,938 |
Interest expense, net | (942) | (4,466) | (3,339) |
Other income (expense), net | 1,430 | (5,718) | (3,189) |
Income before income taxes | 225,946 | 116,177 | 268,410 |
Income tax expense | (56,061) | (26,484) | (55,808) |
Net income | $ 169,885 | $ 89,693 | $ 212,602 |
Net income per share | |||
Basic (in dollars per share) | $ 1.96 | $ 1.04 | $ 2.43 |
Diluted (in dollars per share) | $ 1.94 | $ 1.03 | $ 2.40 |
Weighted-average common shares outstanding | |||
Basic (in shares) | 86,717 | 86,521 | 87,425 |
Diluted (in shares) | 87,403 | 87,195 | 88,666 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 169,885 | $ 89,693 | $ 212,602 |
Other comprehensive (loss) income | |||
Foreign currency translation adjustments | (1,644) | (773) | 740 |
Total comprehensive income | $ 168,241 | $ 88,920 | $ 213,342 |
CONSOLIDATED STATEMENTS OF EQUI
CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Treasury Stock | Retained Earnings (Accumulated Deficit) | Accumulated Other Comprehensive Income (Loss) |
Balance at beginning of the period (in shares) at Jan. 02, 2021 | 87,128,000 | |||||
Balance at beginning of the period at Jan. 02, 2021 | $ 288,418 | $ 871 | $ 321,678 | $ 0 | $ (33,744) | $ (387) |
Balance at beginning of the period (in shares) at Jan. 02, 2021 | 0 | |||||
Increase (decrease) in stockholders equity | ||||||
Stock-based compensation | 15,474 | 15,474 | ||||
Common stock issued under employee benefit plans (in shares) | 641,000 | |||||
Common stock issued under employee benefit plans | 4,095 | $ 6 | 4,089 | |||
Common stock withheld related to net share settlement of stock-based compensation (in shares) | (42,000) | |||||
Common stock withheld related to net share settlement of stock-based compensation | (3,506) | (3,506) | ||||
Other comprehensive income (loss) | 740 | 740 | ||||
Net income | 212,602 | 212,602 | ||||
Balance at end of the period (in shares) at Jan. 01, 2022 | 87,727,000 | |||||
Balance at end of the period at Jan. 01, 2022 | 517,823 | $ 877 | 337,735 | $ 0 | 178,858 | 353 |
Balance at end of the period (in shares) at Jan. 01, 2022 | 0 | |||||
Increase (decrease) in stockholders equity | ||||||
Stock-based compensation | 17,799 | 17,799 | ||||
Common stock issued under employee benefit plans (in shares) | 413,000 | |||||
Common stock issued under employee benefit plans | 3,821 | $ 4 | 3,817 | |||
Common stock withheld related to net share settlement of stock-based compensation (in shares) | (32,000) | |||||
Common stock withheld related to net share settlement of stock-based compensation | (1,861) | (1,861) | ||||
Repurchase of common stock (in shares) | (1,677,000) | |||||
Repurchase of common stock | (100,025) | $ (100,025) | ||||
Other comprehensive income (loss) | (773) | (773) | ||||
Net income | 89,693 | 89,693 | ||||
Balance at end of the period (in shares) at Dec. 31, 2022 | 88,108,000 | |||||
Balance at end of the period at Dec. 31, 2022 | $ 526,477 | $ 881 | 357,490 | $ (100,025) | 268,551 | (420) |
Balance at end of the period (in shares) at Dec. 31, 2022 | (1,676,551) | (1,677,000) | ||||
Increase (decrease) in stockholders equity | ||||||
Stock-based compensation | $ 29,800 | 29,800 | ||||
Common stock issued under employee benefit plans (in shares) | 546,000 | |||||
Common stock issued under employee benefit plans | 1,573 | $ 5 | 1,568 | |||
Common stock withheld related to net share settlement of stock-based compensation (in shares) | (61,000) | |||||
Common stock withheld related to net share settlement of stock-based compensation | (2,481) | (2,481) | ||||
Repurchase of common stock | 0 | |||||
Other comprehensive income (loss) | (1,644) | (1,644) | ||||
Net income | 169,885 | 169,885 | ||||
Balance at end of the period (in shares) at Dec. 30, 2023 | 88,593,000 | |||||
Balance at end of the period at Dec. 30, 2023 | $ 723,610 | $ 886 | $ 386,377 | $ (100,025) | $ 438,436 | $ (2,064) |
Balance at end of the period (in shares) at Dec. 30, 2023 | (1,676,551) | (1,677,000) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Cash Flows from Operating Activities: | |||
Net income | $ 169,885 | $ 89,693 | $ 212,602 |
Adjustments to reconcile net income to cash provided by operating activities: | |||
Depreciation and amortization | 46,434 | 39,847 | 32,070 |
Amortization of deferred financing fees | 604 | 601 | 679 |
Stock-based compensation | 29,800 | 17,799 | 15,474 |
Deferred income taxes | 25,561 | (403) | 5,147 |
Impairment of long-lived assets | 2,927 | 1,229 | 2,473 |
Loss on prepayment, modification, or extinguishment of debt | 330 | 0 | 0 |
Product recalls | 1,895 | 97,176 | 0 |
Other | (6,163) | 2,039 | 1,022 |
Changes in operating assets and liabilities: | |||
Accounts receivable, net | (15,683) | 30,448 | (44,681) |
Inventory | 33,675 | (91,624) | (179,803) |
Other current assets | (7,933) | (2,187) | (10,587) |
Accounts payable and accrued expenses | (15,144) | (86,242) | 112,773 |
Taxes payable | 18,156 | 439 | (3,781) |
Other | 1,598 | 2,079 | 3,132 |
Net cash provided by operating activities | 285,942 | 100,894 | 146,520 |
Cash Flows from Investing Activities: | |||
Purchases of property and equipment | (50,672) | (45,929) | (56,121) |
Additions of intangibles, net | (22,152) | (10,981) | (9,635) |
Net cash used in investing activities | (72,824) | (56,910) | (65,756) |
Cash Flows from Financing Activities: | |||
Repayments of long‑term debt | (7,734) | (22,500) | (22,500) |
Proceeds from employee stock transactions | 1,573 | 3,821 | 4,095 |
Taxes paid in connection with employee stock transactions | (2,481) | (1,861) | (3,506) |
Finance lease principal payment | (2,130) | (2,063) | (1,108) |
Repurchase of common stock | 0 | (100,025) | 0 |
Payments of deferred financing fees | (2,824) | 0 | 0 |
Net cash used in financing activities | (13,596) | (122,628) | (23,019) |
Effect of exchange rate changes on cash | 4,697 | 1,196 | 1,161 |
Net increase (decrease) in cash | 204,219 | (77,448) | 58,906 |
Cash, beginning of period | 234,741 | 312,189 | 253,283 |
Cash, end of period | 438,960 | 234,741 | 312,189 |
Supplemental cash flow information:: | |||
Interest paid | 6,688 | 2,961 | 2,365 |
Income taxes paid, net of refunds | 14,131 | 58,822 | 58,819 |
Supplemental non-cash investing activity: | |||
Property and equipment additions included in accounts payable and accrued expenses | $ 2,647 | $ 3,801 | $ 9,865 |
ORGANIZATION AND SIGNIFICANT AC
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES | ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES Organization and Business Headquartered in Austin, Texas, YETI Holdings, Inc. is a global designer, retailer, and distributor of innovative outdoor products. From coolers and drinkware to bags and apparel, YETI products are built to meet the unique and varying needs of diverse outdoor pursuits, whether in the remote wilderness, at the beach, or anywhere life takes you. 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 on YETI.com, country and region-specific YETI websites, YETI Authorized on the Amazon Marketplace, our corporate sales program, and our retail stores. We operate in the U.S., Canada, Australia, New Zealand, Europe, Hong Kong, China, Singapore, and Japan. The terms “we,” “us,” “our,” “YETI” 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. Certain prior period amounts have been reclassified to conform to current period presentation. Out-of-Period Adjustment During the first quarter of 2022, we recognized $6.4 million in cost of goods sold for inbound freight expense recorded as an out-of-period adjustment. The adjustment was not considered material to the interim or annual consolidated financial statements for the year ended December 31, 2022 or the financial statements of any previously filed interim or annual periods. 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. 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- or 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 years 2023, 2022 and 2021 were 52-week periods. The consolidated financial results presented herein represent the fiscal years ended December 30, 2023 (“2023”), December 31, 2022 (“2022”), and January 1, 2022 (“2021”). 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. As of December 30, 2023 and December 31, 2022, one customer accounted for 12% and 14% of our total accounts receivable, net, respectively. Our allowance for credit losses was $0.5 million as of December 30, 2023 and $0.7 million as of December 31, 2022, 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 $75.5 million, $68.1 million, and $61.9 million for 2023, 2022, and 2021, respectively. At each of December 30, 2023 and December 31, 2022, prepaid advertising costs were $0.5 million. Benefit Plan We 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 $2.0 million, $1.5 million, and $1.2 million for 2023, 2022, and 2021, 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 coolers & equipment products, our two largest manufacturers comprised approximately 44% of our production volume during 2023. For drinkware, our two largest manufacturers comprised approximately 73% of our production volume during 2023. 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 Credit Facility (as defined in Note 8. Long-term Debt) 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 each of December 30, 2023 and December 31, 2022, the amortization of deferred financing fees included in interest expense was $0.6 million. 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 Secured Overnight Financing Rate (“SOFR”). 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 2023 and 2022, 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 2023 and 2022. 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, other intangibles, such as copyrights and domain name assets, and patent and trademark defense costs. Definite-lived intangible assets are amortized on a straight-line basis over their estimated useful lives. See Note 6 for the estimated useful lives of our definite-lived intangible assets. 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. Where the defense of the patent and trademark maintains rather than increases the expected future economic benefits from the asset, the costs are expensed as incurred. The external legal costs incurred and settlements received may not occur in the same period. Capitalized costs incurred during 2023, 2022, and 2021 primarily relate to external legal costs incurred in the defense of our patents and trademarks, net of settlements received. Income Taxes We provide for income 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, consisting primarily of finished goods and an immaterial level of component parts, are valued at the lower of cost or net realizable value. Cost is determined using weighted-average costs, including all costs incurred to deliver inventory to our distribution facilities, such as inbound freight, import duties and tariffs. 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. At December 30, 2023 and December 31, 2022, inventory reserves were $2.2 million and $37.3 million, respectively. The balance at December 31, 2022 primarily consisted of reserves related to unsalable inventory on-hand in connection with our voluntary recalls. The decrease in the inventory reserve is primarily related to the physical scrapping of the unsalable recalled inventory. In connection with our voluntary recalls, we recorded an inventory write-off, or reserve, of $34.1 million for the year ended December 31, 2022. See Note 11 for further discussion of our voluntary recalls. 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. We capitalize direct internal and external costs related to software used for internal purposes. 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 Related-Party Agreements 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 that are reflected in our consolidated statements of operations. Research and Development Costs Research and development costs are expensed as incurred and consist primarily of employee compensation, including non-cash stock-based compensation expense, and miscellaneous supplies. Research and development costs are recorded in selling, general, and administrative expenses. Research and development expenses were $15.5 million, $15.4 million, and $13.7 million, for 2023, 2022, and 2021, respectively. Revenue Recognition Revenue transactions associated with the sale of our products 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. 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. 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 $125.4 million, $114.8 million, and $89.7 million for 2023, 2022, and 2021, respectively. Stock-Based Compensation Stock-based compensation awards granted to employees and non-employee directors are measured at fair value. Stock-based compensation expense is recognized on a straight-line basis over the requisite service period. Stock-based compensation expense equal to the fair value of performance-based awards that are expected to vest is estimated and recognized on a straight-line basis over the performance period of the awards. Compensation expense estimates are updated periodically. The vesting of the performance-based awards 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. The grant date fair value of restricted stock units, restricted stock awards, and deferred stock units is based on the closing price of our common stock on the award date. The grant date fair value of performance-based awards is estimated on the award date using a Monte Carlo simulation model. For certain of the awards granted, the grant date fair value was calculated using the Finnerty model, as the after-tax portion of these awards is subject to a holding period of one year after the vesting date. The grant date fair value of each stock option granted is estimated on the award date using the Black-Scholes model. The Monte Carlo simulation model, Finnerty model, and Black-Scholes model require various judgmental assumptions including volatility, forfeiture rates and expected option life. No stock options were granted in 2023, 2022, and 2021. 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 9 for further discussion. Supplier Finance Program Obligations During 2018, we entered into an agreement with a financial institution to facilitate a supplier finance program (“SFP”) which provides certain suppliers the option, at their sole discretion, to participate in the program and sell their receivables due from us for early payment. Participating eligible suppliers negotiate the terms directly with the financial institution and we have no involvement in establishing those terms nor are we a party to these agreements. Our payments associated with the invoices from the suppliers participating in the SFP are made to the financial institution according to the original invoice. The outstanding payment obligations under the SFP recorded within accounts payable in our consolidated balance sheets at December 30, 2023 and December 31, 2022 were $77.3 million and $70.7 million, respectively. 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 and other current liabilities 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 March 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. The ASU is intended to ease the potential accounting and financial reporting burden of reference rate reform, including the expected market transition from the London Interbank Offering Rate (“LIBOR”) and other interbank offered rates to alternative reference rates. The guidance provides optional expedients and scope exceptions for transactions if certain criteria are met. These transactions include contract modifications, hedge accounting, and the sale or transfer of debt securities classified as held-to-maturity. We adopted this ASU in the first quarter of 2023. Adoption of this new standard did not have a material impact on our consolidated financial statements. In September 2022, the FASB issued ASU 2022-04, Liabilities-Supplier Finance Programs (Topic 405-50) - Disclosure of Supplier Finance Program Obligations, which requires disclosures intended to enhance the transparency of supplier finance programs. The ASU requires buyers in a supplier finance program to disclose sufficient information about the program to allow a user of financial statements to understand the program’s nature, activity during the period, changes from period to period, and potential magnitude. The ASU is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, except for the amendment on rollforward information, which is effective for fiscal years beginning after December 15, 2023. We adopted provisions of this ASU in the first quarter of 2023, with the exception of the amendment on rollforward information, which will be adopted in the first quarter of 2024. Adoption of the new standard did not have a material impact on our consolidated financial statements. Recent Accounting Guidance Not Yet Adopted In November 2023, the FASB issued Accounting Standards Update (ASU) 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. The new standard requires enhanced disclosures about significant segment expenses and other segment items and requires companies to provide all annual disclosures about segments in interim periods. All disclosure requirements under ASU 2023-07 are also required for public entities with a single reportable segment. The ASU is effective for the Company’s Annual Report on Form 10-K for the fiscal year ending December 28, 2024, and subsequent interim periods, with early adoption permitted. We are currently evaluating the impact of adopting this ASU on our consolidated financial statements and related disclosures. In December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures.” The amendments in this update are intended to enhance the transparency and decision usefulness of income tax disclosures primarily through changes to the rate reconciliation and income taxes paid information. This update is effective for annual periods beginning after December 15, 2024, with early adoption permitted. We are currently evaluating the ASU to determine its impact on our consolidated financial statements and related disclosures. |
REVENUE
REVENUE | 12 Months Ended |
Dec. 30, 2023 | |
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 credit losses. 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 contract liabilities include advance cash deposits received from customers for certain customized product orders and unredeemed gift card liabilities. As products are shipped and control transfers, we recognize contract liabilities as revenue. During the second quarter of 2023, we began issuing gift cards as remedies in connection with our voluntary recalls. We recognize sales from gift cards as they are redeemed for products. As of December 30, 2023, $4.5 million of our contract liabilities represented unredeemed gift card liabilities. See Note 11 for further discussion of our recalls. The following table provides information about accounts receivable and contract liabilities at the periods indicated (in thousands): December 30, 2023 December 31, Accounts receivable, net $ 95,774 $ 79,446 Contract liabilities (22,437) (7,702) During the year ended December 30, 2023, we recognized $7.7 million of revenue that was previously included in the contract liability balance at the beginning of the period. Disaggregation of Revenue The following table disaggregates our net sales by channel, product category, and geography for the periods indicated (in thousands): 2023 (1) 2022 (1) 2021 Net Sales by Channel: Wholesale $ 661,000 $ 677,517 $ 626,259 Direct-to-consumer 997,713 917,705 784,730 Total net sales $ 1,658,713 $ 1,595,222 $ 1,410,989 Net Sales by Category: Coolers & Equipment $ 597,511 $ 612,525 $ 551,861 Drinkware 1,022,982 947,221 832,428 Other 38,220 35,476 26,700 Total net sales $ 1,658,713 $ 1,595,222 $ 1,410,989 Net Sales by Geographic Region (2) : United States $ 1,398,925 $ 1,394,026 $ 1,267,701 International 259,788 201,196 143,288 Total net sales $ 1,658,713 $ 1,595,222 $ 1,410,989 _______________________________________ (1) Includes the impact from the recall reserve adjustment. See Note 11 for further discussion of our recalls. (2) Net sales by geographic region is based upon on end-consumer location. Customers that accounted for 10% or more of gross sales were as follows: 2023 2022 2021 Customer A * 11% 10% _______________________________________ * Gross sales were less than 10% and no other customer exceeded 10% of gross sales. |
PREPAID EXPENSES AND OTHER CURR
PREPAID EXPENSES AND OTHER CURRENT ASSETS | 12 Months Ended |
Dec. 30, 2023 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
PREPAID EXPENSES AND OTHER CURRENT ASSETS | PREPAID EXPENSES AND OTHER CURRENT ASSETS Prepaid expenses and other current assets include the following (in thousands): December 30, December 31, Prepaid expenses $ 21,165 $ 18,149 Prepaid taxes 15,089 10,222 Other 6,209 4,950 Total prepaid expenses and other current assets $ 42,463 $ 33,321 |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 12 Months Ended |
Dec. 30, 2023 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT | PROPERTY AND EQUIPMENT Property and equipment consisted of the following at the dates indicated (in thousands): December 30, December 31, Production molds, tooling, and equipment $ 112,478 $ 101,363 Furniture, fixtures, and equipment 16,605 12,884 Computers and software 100,803 90,103 Leasehold improvements 55,556 45,523 Finance leases 11,361 10,736 Property and equipment, gross 296,803 260,609 Accumulated depreciation (166,089) (136,022) Property and equipment, net $ 130,714 $ 124,587 Depreciation expense was $41.2 million, $32.8 million, and $25.7 million for 2023, 2022, and 2021, respectively. Geographic Information Property and equipment, net by geographical region was as follows as of the dates indicated (in thousands): December 30, December 31, United States $ 84,564 $ 83,011 International 46,150 41,576 Property and equipment, net $ 130,714 $ 124,587 |
LEASES
LEASES | 12 Months Ended |
Dec. 30, 2023 | |
Leases [Abstract] | |
LEASES | LEASES We determine if an arrangement is or contains a lease at contract inception and determine its classification as an operating or finance lease at lease commencement. We lease certain retail locations, office space, distribution facilities, manufacturing space, and machinery and equipment. While the substantial majority of these leases are operating leases, certain machinery and equipment agreements are finance leases. As of December 30, 2023, 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 facilities. Operating lease assets include prepaid lease payments and initial direct costs and are reduced by lease incentives. Our lease terms generally do not include options to extend or terminate the lease unless it is reasonably certain that the option will be exercised. Fixed payments may contain predetermined fixed rent escalations. We recognize the related rent expense on a straight-line basis from the commencement date to the end of the lease term. The following table presents the assets and liabilities related to operating and finance leases (in thousands): Balance Sheet Location December 30, 2023 December 31, 2022 Assets: Operating lease assets Operating lease right-of-use assets $ 77,556 $ 55,406 Finance lease assets Property and equipment, net 6,295 7,533 Total lease assets $ 83,851 $ 62,939 Liabilities: Current Operating lease liabilities Operating lease liabilities $ 14,726 $ 12,076 Finance lease liabilities Current maturities of long-term debt 2,360 2,111 Non-current Operating lease liabilities Operating lease liabilities, non-current 76,163 55,649 Finance lease liabilities Long-term debt, net of current portion 3,445 5,198 Total lease liabilities $ 96,694 $ 75,034 The following table presents the components of lease costs (in thousands): Fiscal Year Ended December 30, 2023 December 31, 2022 January 1, 2022 Operating lease costs $ 14,889 $ 12,943 12,312 Finance lease cost - amortization of right-of-use assets 1,862 1,860 1,046 Finance lease cost - interest on lease liabilities 138 182 139 Short-term lease cost 246 67 366 Variable lease cost 5,537 4,645 3,822 Sublease income (747) (743) (743) Total lease cost $ 21,925 $ 18,954 $ 16,942 The following table presents lease terms and discount rates: December 30, 2023 December 31, 2022 Weighted average remaining lease term: Operating leases 6.38 years 5.90 years Finance leases 4.01 years 4.73 years Weighted average discount rate: Operating leases 4.87 % 4.76 % Finance leases 2.50 % 2.20 % Minimum lease payments have not been reduced by minimum sublease rentals of $0.9 million due in the future under non-cancelable subleases. We received $0.7 million in sublease income for each of 2023, 2022, and 2021. The following table presents the minimum lease payment obligations of operating and finance lease liabilities (leases with terms in excess of one year) for the next five years and thereafter as of December 30, 2023 (in thousands): Operating Leases Finance Leases Total 2024 $ 18,571 $ 2,300 $ 20,871 2025 21,236 2,360 23,596 2026 17,612 1,011 18,623 2027 13,280 176 13,456 2028 9,427 156 9,583 Thereafter 27,153 — 27,153 Total lease payments 107,279 6,003 113,282 Less: Effect of discounting to net present value 16,390 198 16,588 Present value of lease liabilities $ 90,889 $ 5,805 $ 96,694 The following table presents supplemental cash flow information related to our leases (in thousands): December 30, 2023 December 31, 2022 January 1, 2022 Cash paid for amounts included in measurement of liabilities: Operating cash flows used in operating leases $ 15,047 $ 13,387 $ 13,146 Operating cash flows used in finance leases 137 182 139 Financing cash flows used in finance leases 2,131 2,063 1,108 Right-of-use assets obtained in exchange for new lease liabilities: Operating leases 35,497 12,083 30,234 Finance leases 625 17 9,517 To support the continued growth of our business, we entered into a service agreement with a third-party logistics provider to operate a new distribution facility in Memphis, Tennessee with approximately 970,000 square feet. The service agreement commenced at the end of the second quarter of 2021. The initial term of the agreement is 5 years. We began distributing from this facility in the third quarter of 2021, and we exited our distribution facility in Dallas, Texas in the fourth quarter of 2021. |
LEASES | LEASES We determine if an arrangement is or contains a lease at contract inception and determine its classification as an operating or finance lease at lease commencement. We lease certain retail locations, office space, distribution facilities, manufacturing space, and machinery and equipment. While the substantial majority of these leases are operating leases, certain machinery and equipment agreements are finance leases. As of December 30, 2023, 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 facilities. Operating lease assets include prepaid lease payments and initial direct costs and are reduced by lease incentives. Our lease terms generally do not include options to extend or terminate the lease unless it is reasonably certain that the option will be exercised. Fixed payments may contain predetermined fixed rent escalations. We recognize the related rent expense on a straight-line basis from the commencement date to the end of the lease term. The following table presents the assets and liabilities related to operating and finance leases (in thousands): Balance Sheet Location December 30, 2023 December 31, 2022 Assets: Operating lease assets Operating lease right-of-use assets $ 77,556 $ 55,406 Finance lease assets Property and equipment, net 6,295 7,533 Total lease assets $ 83,851 $ 62,939 Liabilities: Current Operating lease liabilities Operating lease liabilities $ 14,726 $ 12,076 Finance lease liabilities Current maturities of long-term debt 2,360 2,111 Non-current Operating lease liabilities Operating lease liabilities, non-current 76,163 55,649 Finance lease liabilities Long-term debt, net of current portion 3,445 5,198 Total lease liabilities $ 96,694 $ 75,034 The following table presents the components of lease costs (in thousands): Fiscal Year Ended December 30, 2023 December 31, 2022 January 1, 2022 Operating lease costs $ 14,889 $ 12,943 12,312 Finance lease cost - amortization of right-of-use assets 1,862 1,860 1,046 Finance lease cost - interest on lease liabilities 138 182 139 Short-term lease cost 246 67 366 Variable lease cost 5,537 4,645 3,822 Sublease income (747) (743) (743) Total lease cost $ 21,925 $ 18,954 $ 16,942 The following table presents lease terms and discount rates: December 30, 2023 December 31, 2022 Weighted average remaining lease term: Operating leases 6.38 years 5.90 years Finance leases 4.01 years 4.73 years Weighted average discount rate: Operating leases 4.87 % 4.76 % Finance leases 2.50 % 2.20 % Minimum lease payments have not been reduced by minimum sublease rentals of $0.9 million due in the future under non-cancelable subleases. We received $0.7 million in sublease income for each of 2023, 2022, and 2021. The following table presents the minimum lease payment obligations of operating and finance lease liabilities (leases with terms in excess of one year) for the next five years and thereafter as of December 30, 2023 (in thousands): Operating Leases Finance Leases Total 2024 $ 18,571 $ 2,300 $ 20,871 2025 21,236 2,360 23,596 2026 17,612 1,011 18,623 2027 13,280 176 13,456 2028 9,427 156 9,583 Thereafter 27,153 — 27,153 Total lease payments 107,279 6,003 113,282 Less: Effect of discounting to net present value 16,390 198 16,588 Present value of lease liabilities $ 90,889 $ 5,805 $ 96,694 The following table presents supplemental cash flow information related to our leases (in thousands): December 30, 2023 December 31, 2022 January 1, 2022 Cash paid for amounts included in measurement of liabilities: Operating cash flows used in operating leases $ 15,047 $ 13,387 $ 13,146 Operating cash flows used in finance leases 137 182 139 Financing cash flows used in finance leases 2,131 2,063 1,108 Right-of-use assets obtained in exchange for new lease liabilities: Operating leases 35,497 12,083 30,234 Finance leases 625 17 9,517 To support the continued growth of our business, we entered into a service agreement with a third-party logistics provider to operate a new distribution facility in Memphis, Tennessee with approximately 970,000 square feet. The service agreement commenced at the end of the second quarter of 2021. The initial term of the agreement is 5 years. We began distributing from this facility in the third quarter of 2021, and we exited our distribution facility in Dallas, Texas in the fourth quarter of 2021. |
INTANGIBLE ASSETS
INTANGIBLE ASSETS | 12 Months Ended |
Dec. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS | INTANGIBLE ASSETS Intangible assets consisted of the following at the dates indicated below (dollars in thousands): December 30, 2023 Useful Life Gross Carrying Amount Accumulated Amortization Net Carrying Amount Tradename Indefinite $ 31,363 $ — $ 31,363 Trade dress Indefinite 16,707 — 16,707 Trademarks Indefinite 33,850 — 33,850 Customer relationships 11 years 42,205 (42,205) — Trademarks 6 - 30 years 22,323 (11,939) 10,384 Patents 4 - 25 years 28,803 (4,041) 24,762 Other intangibles 15 years 1,049 (486) 563 Total intangible assets $ 176,300 $ (58,671) $ 117,629 December 31, 2022 Useful Life Gross Carrying Amount Accumulated Amortization Net Carrying Amount Tradename Indefinite $ 31,363 $ — $ 31,363 Trade dress Indefinite 14,079 — 14,079 Trademarks Indefinite 21,745 — 21,745 Customer relationships 11 years 42,205 (40,457) 1,748 Trademarks 6 - 30 years 21,574 (9,834) 11,740 Patents 4 - 25 years 20,810 (2,682) 18,128 Other intangibles 15 years 1,047 (421) 626 Total intangible assets $ 152,823 $ (53,394) $ 99,429 Amortization expense was $5.3 million, $6.9 million, and $6.4 million, for 2023, 2022, and 2021, respectively. Amortization expense related to intangible assets is expected to be $3.8 million for 2024, $3.7 million for 2025, $2.9 million for 2026, $2.4 million for 2027, and $2.0 million for 2028. |
ACCRUED EXPENSES AND OTHER CURR
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | 12 Months Ended |
Dec. 30, 2023 | |
Payables and Accruals [Abstract] | |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES Accrued expenses and other current liabilities consisted of the following at the dates indicated (in thousands): December 30, December 31, Accrued freight and distribution costs $ 45,228 $ 56,354 Product recall reserves (1) 13,090 94,807 Contract liabilities 22,437 7,702 Customer discounts, allowances, and returns 11,515 9,948 Advertising and marketing 9,945 11,547 Warranty reserve 9,808 9,996 Accrued capital expenditures 590 895 Interest payable 159 941 Other 17,254 19,209 Total accrued expenses and other current liabilities $ 130,026 $ 211,399 _______________________________________ (1) See Note 11 for further discussion of our product recall reserves. |
LONG-TERM DEBT
LONG-TERM DEBT | 12 Months Ended |
Dec. 30, 2023 | |
Debt Disclosure [Abstract] | |
LONG-TERM DEBT | LONG-TERM DEBT Long-term debt consisted of the following at the dates indicated (in thousands): December 30, December 31, Term Loan A, due 2028 $ 82,266 $ 90,000 Finance lease debt 5,805 7,309 Total debt 88,071 97,309 Current maturities of long-term debt (4,219) (22,500) Current maturities of finance lease debt (2,360) (2,111) Total long-term debt 81,492 72,698 Unamortized deferred financing fees (2,847) (957) Total long-term debt, net $ 78,645 $ 71,741 At December 30, 2023, the future maturities of principal amounts of our debt obligations, excluding finance lease obligations, for the next five years and in total (see Note 5 for future maturities of finance lease obligations), consisted of the following (in thousands): Amount 2024 4,219 2025 4,219 2026 4,219 2027 4,219 2028 65,390 Total $ 82,266 Credit Facility In May 2016, we entered into a senior secured credit agreement (as amended, the “Credit Agreement”) that provided for: (a) a five-year $100.0 million revolving credit facility (“Revolving Credit Facility”); (b) a five-year $445.0 million term loan A (“Term Loan A”); and (c) a six-year $105.0 million term loan B (“Term Loan B”) (together with amendments described below, the “Credit Facility”). During 2019, we voluntarily repaid in full the principal amount outstanding under Term Loan B. On July 15, 2017, we amended the Credit Facility to reset the net leverage ratio covenant for the period ending June 2017 and thereafter. 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 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. On March 31, 2023, we amended the Credit Facility, leaving the material terms of the Credit Facility substantially unchanged, with the exception of certain changes to implement the replacement of LIBOR with SOFR. On June 22, 2023, we further amended the Credit Facility, which extended the maturity date of both the Term Loan A and the Revolving Credit Facility from December 17, 2024 to June 22, 2028; refinanced and replaced the existing Term Loan A in full with a new $84.4 million Term Loan A; and increased the commitments under the Revolving Credit Facility from $150.0 million to $300.0 million. As a result of the amendment, we recognized a $0.3 million loss on modification and extinguishment of debt and we capitalized $2.8 million of new lender and third-party fees in the second quarter of 2023. Pursuant to the Credit Agreement, we are required to make quarterly principal payments equal to 1.25% of the then-outstanding aggregate principal amount of the Term Loan A. As amended, the scheduled quarterly principal payments began on September 30, 2023 and are due each December 31, March 31, June 30 and September 30 thereafter, with the remaining principal balance due on the maturity date. Borrowings under the Term Loan A and the Revolving Credit Facility bear interest at Term SOFR or the Alternate Base Rate (each as defined in the Credit Agreement) plus an applicable rate ranging from 1.75% to 2.50% for Term SOFR-based loans and from 0.75% to 1.50% for Alternate Base Rate-based loans, depending upon our total Net Leverage Ratio (as defined in the Credit Agreement). Additionally, a commitment fee ranging from 0.200% to 0.300%, determined by reference to a pricing grid based on our net leverage ratio, is payable on the average daily unused amounts under the Revolving Credit Facility. As of December 30, 2023 and December 31, 2022, we had no borrowings outstanding under our Revolving Credit Facility. The Credit Facility also provides us with the ability to issue up to $40.0 million in letters of credit. While our issuance of letters of credit does not increase our borrowings outstanding under our Revolving Credit Facility, it does reduce the amount available. As of December 30, 2023, we had no outstanding letters of credit. The weighted average interest rate on borrowings outstanding under the Term Loan A at December 30, 2023 and December 31, 2022 was 6.83% and 3.49%, 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 December 30, 2023, we were in compliance with the covenants under our Credit Facility. Term Loan A The Term Loan A is a $84.4 million term loan facility, maturing on June 22, 2028. Principal payments of $5.6 million were due quarterly during 2021 and through March 2023 and $1.1 million are due from September 2023 through March 2028, with any remaining 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. |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 12 Months Ended |
Dec. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION We award stock-based compensation to employees and directors under the 2018 Equity and Incentive Compensation Plan (“2018 Plan”), which was adopted by our Board of Directors and became effective upon the completion of our initial public offering in October 2018. The 2018 Plan replaced the 2012 Equity and Performance Incentive Plan, as amended and restated on June 20, 2018 (the “2012 Plan”). Any remaining shares available for issuance under the 2012 Plan as the date of our initial public offering in October 2018 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”) and performance-based restricted stock unit awards (“PBRSUs”) cliff vest based on the attainment of certain predetermined three-year cumulative performance goals over a three-year performance period subject to continued employment. 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 RSUs 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 $29.8 million, $17.8 million, and $15.5 million for 2023, 2022, and 2021, respectively. The related income tax benefits were $5.1 million, $3.8 million, and $12.9 million for 2023, 2022, and 2021, respectively. As of December 30, 2023, total unrecognized stock-based compensation expense of $50.4 million for all stock-based compensation plans is expected to be recognized over a weighted-average period of 2.0 years. Restricted Stock Units, Restricted Stock Awards, and Deferred Stock Units Stock-based activity, excluding options, for the year ended December 30, 2023 is summarized below (in thousands, except per share data): Performance-Based Restricted Stock Awards and Performance-Based Restricted Stock Units Restricted Stock Units, Restricted Stock Awards, and Deferred Stock Units Number of PBRSs and PBRSUs Weighted Average Grant Date Fair Value Number of RSUs, RSAs, and DSUs Weighted Average Grant Date Fair Value Nonvested, December 31, 2022 233 $ 53.63 812 $ 51.28 Granted 279 38.59 1,009 38.81 Vested/released (99) 32.84 (383) 51.74 Forfeited/expired (15) 64.98 (126) 47.01 Nonvested, December 30, 2023 398 $ 48.14 1,312 $ 41.99 As of December 30, 2023, the weighted average remaining contractual term of PBRSs and PBRSUs was 2.0 years and the aggregate intrinsic value of PBRSs and PBRSUs expected to vest was $9.3 million. The weighted average remaining contractual term of RSUs, RSAs, and DSUs was 1.9 years and the aggregate intrinsic value of RSUs, RSAs, and DSUs was $41.1 million as of December 30, 2023. The following table summarizes additional information about PBRSs PBRSUs, RSUs, RSAs, and DSUs (in thousands, except per share data): Fiscal Year Ended December 30, December 31, January 1, Weighted average grant date fair value per share of awards granted $ 38.74 $ 52.42 $ 79.06 Total grant date fair value of awards vested $ 19,828 $ 11,602 $ 7,145 Intrinsic value of awards vested $ 16,485 $ 12,434 $ 19,346 Stock Options There have been no new grants of options since 2019 and all options outstanding as of December 31, 2022 and December 30, 2023 were exercisable. We had no unrecognized compensation cost related to stock options and no non-vested stock options as of December 30, 2023 or December 31, 2022. A summary of the stock options is as follows for the periods indicated (in thousands, except per share data): Number of Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Balance, December 31, 2022 642 $ 20.10 5.93 Exercised (64) 24.41 Balance, December 30, 2023 578 $ 19.62 4.89 $ 18,550 Exercisable, December 30, 2023 578 $ 19.62 4.89 $ 18,550 The total intrinsic value of stock options exercised was $1.0 million, $3.3 million, and $33.1 million for 2023, 2022, and 2021, respectively. The income tax benefits related to stock options exercised were $0.2 million, $0.8 million, and $8.1 million for 2023, 2022, and 2021, respectively. The total grant date fair value of stock options vested was $1.7 million, and $2.2 million for 2022, and 2021, respectively. |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 12 Months Ended |
Dec. 30, 2023 | |
Equity [Abstract] | |
STOCKHOLDERS' EQUITY | STOCKHOLDERS’ EQUITY On February 27, 2022, the Board of Directors authorized a common stock repurchase program of up to $100.0 million. During the three months ended April 2, 2022, we repurchased 1,676,551 shares for an aggregate purchase price of $100.0 million, including fees and commissions, at an average repurchase price of $59.66 per share. Following the repurchases, no shares remained available for future repurchases under the program. All of the common stock repurchased is held as treasury stock. On February 1, 2024, the Board of Directors authorized the repurchase of up to $300 million of the Company’s common stock. See Note 14—Subsequent Events for information regarding the Company’s Share Repurchase Program adopted in February 2024. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Future commitments under non-cancelable agreements at December 30, 2023 were as follows (in thousands): Fiscal Year Total 2024 2025 2026 2027 2028 Thereafter Non-cancelable agreements (1) $ 154,013 $ 73,867 $ 50,515 $ 21,900 $ 6,198 $ 1,533 $ — _________________________ (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 $17.6 million, net, of such liabilities that are on our consolidated balance sheet as of December 30, 2023. 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. Product Recall Reserves In January 2023, we notified the U.S. Consumer Product Safety Commission (“CPSC”) of a potential safety concern regarding the magnet-lined closures of our Hopper M30 Soft Cooler, Hopper M20 Soft Backpack Cooler, and SideKick Dry gear case (the “affected products”) and initiated a global stop sale of the affected products. In February 2023, we proposed a voluntary recall of the affected products to the CPSC, and other relevant global regulatory authorities, which we refer to as the “voluntary recalls” herein unless otherwise indicated. In conjunction with the stop sale, we determined that the affected products inventory held by us, our suppliers and our wholesale customers is unsalable, and notified our wholesale customers to return the affected products. In March 2023, we announced separate, voluntary recalls of the affected products in collaboration with the CPSC and subsequently began processing recall claims and returns. We establish reserves for the estimated costs of a product recall when circumstances giving rise to the recall become known and when such costs are probable and estimable. As a result of the voluntary recalls, we established a reserve as of December 31, 2022, for expected future returns and the estimated cost of recall remedies for consumers with affected products. The reserve for the estimated product recall expenses is included within accrued expenses and other current liabilities on our consolidated balance sheets. Estimating the cost of recall remedies required significant judgment and is primarily based on i) expected consumer participation rates; and ii) the estimated costs of the consumer’s elected remedy in the recalls, including the estimated cost of either product replacements or gift card elections, logistics costs, and other recall-related costs. We reevaluate these assumptions each period, and the related reserves are adjusted when factors indicate that the reserve is either not sufficient to cover or exceeds the estimated product recall costs. The ultimate impact from the approved voluntary recalls could differ materially from these estimates. The reserve for the estimated product recall expenses was $13.1 million and $94.8 million as of December 30, 2023 and December 31, 2022, respectively. As of December 31, 2022, we recorded a write-off of $34.1 million for our unsalable inventory on-hand. Due to the physical scrapping of inventory, the inventory reserve for our unsalable inventory on-hand, including affected products returned in connection with the recalls, was nominal as of December 30, 2023. During the second quarter of 2023, we began processing recall-related claims and returns. Based on such experience and observed trends during 2023, we reevaluated our prior assumptions and adjusted our estimated product recall reserve. These trends included higher than anticipated elections by consumers to receive gift cards in lieu of product replacement remedies, lower than anticipated consumer recall participation rates, variations in individual product participation rates, and lower logistics costs than previously estimated. As a result, we updated our recall reserve assumptions throughout the remainder of 2023, which increased the estimated recall expense reserve by $3.6 million during the year ended December 30, 2023. The following table summarizes the activity in the reserve for the estimated product recall expenses (in thousands): December 30, 2023 Balance, January 1, 2023 $ 94,807 Actual product refunds, replacements and recall-related costs (55,470) Gift card issuances (1) (29,802) Reserve adjustment 3,555 Balance, December 30, 2023 $ 13,090 _________________________ (1) For the year ended December 30, 2023, we recognized net sales of $25.3 million from redeemed recall-related gift cards. As of December 30, 2023, we had $4.5 million in unredeemed recall-related gift card liabilities, which are included in contract liabilities within accrued expenses and other current liabilities on our consolidated balance sheet. The product recalls, which include recall reserve adjustments and other incurred costs, had the following effect on our income before income taxes (in thousands): Fiscal Year Ended December 30, 2023 December 31, 2022 Decrease to net sales (1) $ (21,700) $ (38,415) Decrease (increase) to cost of goods sold (2) 8,423 (58,583) Decrease to gross profit (13,277) (96,998) Decrease (increase) to selling, general and administrative expenses (3) 11,382 (31,910) Decrease to income before income taxes $ (1,895) $ (128,908) _________________________ (1) For the year ended December 30, 2023, primarily reflects the unfavorable impact of the recall reserve adjustment mainly related to higher estimated future recall remedies (i.e., estimated gift card elections). For the year ended December 31, 2022, reflects a reduction for estimated future returns and recall remedies in connection with the initial recognition of the product recall reserves. Of the total net sales impact, $7.3 million and $14.4 million was allocated to our DTC and wholesale channels for the year ended December 30, 2023, and $6.2 million and $32.2 million was allocated to our DTC and wholesale channels for the year ended December 31, 2022. These amounts were allocated based on the historical channel sell-in basis of the affected products. (2) For the year ended December 30, 2023, reflects the impact of favorable recall reserve adjustments primarily related to lower estimated costs of future product replacement remedy elections and logistics costs and lower recall-related costs. For the year ended December 31, 2022, reflects an increase to cost of goods sold primarily related to inventory write-offs for unsalable inventory on-hand, and estimated costs of future product replacement remedies, and logistics costs in connection with the initial recognition of the product recall reserves. (3) For the year ended December 30, 2023, reflects the impact of favorable recall reserve adjustments primarily related to lower estimated other recall-related costs. For the year ended December 31, 2022, reflects an increase to SG&A expenses associated with estimated other recall-related costs in connection with the initial recognition of the product recall reserves. The ultimate impact from the recalls may differ materially from our estimates, and may harm our business, financial condition, and results of operations. See Part I, Item 1A “Risk Factors - Risks Related to Our Business, Operations and Industry.” |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 30, 2023 | |
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 December 30, December 31, January 1, Domestic $ 215,490 $ 107,578 $ 262,182 Foreign 10,456 8,599 6,228 Income before income taxes $ 225,946 $ 116,177 $ 268,410 The components of income tax expense were as follows for the periods indicated (in thousands): Fiscal Year Ended December 30, December 31, January 1, Current tax expense: U.S. federal $ 21,139 $ 43,967 $ 37,963 State 7,659 11,761 11,018 Foreign 1,936 3,372 1,726 Total current tax expense 30,734 59,100 50,707 Deferred tax expense (benefit): U.S. federal 20,136 (26,783) 4,770 State 4,230 (4,499) 540 Foreign 961 (1,334) (209) Total deferred tax expense (benefit) 25,327 (32,616) 5,101 Total income tax expense $ 56,061 $ 26,484 $ 55,808 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 December 30, December 31, January 1, Income taxes at the statutory rate $ 47,449 $ 24,397 $ 56,366 Increase (decrease) resulting from: State income taxes, net of federal tax effect 8,532 4,454 8,562 Foreign-derived intangible income (3,192) (2,878) (3,056) Research and development tax credits (681) (742) (630) Tax expense (benefit) related to stock-based compensation 713 (472) (7,259) Other 3,240 1,725 1,825 Income tax expense $ 56,061 $ 26,484 $ 55,808 Deferred tax assets and liabilities consisted of the following for the periods indicated (in thousands): Fiscal Year Ended December 30, December 31, Deferred tax assets: Accrued liabilities $ 7,688 $ 24,339 Allowances and other reserves 3,450 3,510 Inventory 2,974 13,022 Stock-based compensation 5,857 5,410 Operating lease liabilities 22,280 16,817 Capitalized research and development expenditures 9,276 7,921 Other 2,647 4,520 Total deferred tax assets $ 54,172 $ 75,539 Deferred tax liabilities: Operating lease assets $ (19,047) $ (13,828) Prepaid expenses (1,279) (1,286) Property and equipment (11,469) (15,734) Intangible assets (24,645) (21,346) Other (60) (112) Total deferred tax liabilities (56,500) (52,306) Net deferred tax liabilities $ (2,328) $ 23,233 Amounts included in the Consolidated Balance Sheets: Deferred income taxes $ 1,692 $ 23,233 Other liabilities (4,020) — Net deferred income tax liabilities $ (2,328) $ 23,233 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 Cuts and Jobs Act (“the Tax Act”) during 2017. 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. We believe it is not practicable to estimate the amount of additional taxes, which may be payable upon distribution of these earnings. At December 30, 2023, we had unremitted earnings of foreign subsidiaries of $37.2 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 December 30, 2023, we had Texas research and development tax credit carryforwards of approximately $2.1 million, which if not utilized, will expire beginning in 2038. The following table summarizes the activity related to our unrecognized tax benefits for the periods indicated (excluding interest and penalties) (in thousands): Fiscal Year Ended December 30, December 31, Balance, beginning of year $ 12,591 $ 11,113 Gross increases related to current year tax positions 1,318 2,270 Gross increases related to prior year tax positions 1,060 36 Gross decreases related to prior year tax positions (141) (68) Decreases as a result of settlements during the current period — (260) Lapse of statute of limitations (492) (500) Balance, end of year $ 14,336 $ 12,591 If our positions are sustained by the relevant taxing authorities, approximately $14.3 million (excluding interest and penalties) of uncertain tax position liabilities as of December 30, 2023 would favorably impact our effective tax rate in future periods. We do not anticipate that the balance of gross unrecognized tax benefits will change significantly during the next twelve months. We include interest and penalties related to unrecognized tax benefits in our current provision for income taxes in the accompanying consolidated statements of operations. As of December 30, 2023, we had recognized a liability of $3.3 million for interest and penalties related to unrecognized tax benefits. We file income tax returns in the United States and various state and foreign jurisdictions. The tax years 2020 through 2023 remain open to examination in the United States, and the tax years 2016 through 2023 remain open to examination in Texas. The tax years 2019 through 2023 remain open to examination in most other state and foreign jurisdictions. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Dec. 30, 2023 | |
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 December 30, December 31, January 1, Net income $ 169,885 $ 89,693 $ 212,602 Weighted average common shares outstanding — basic 86,717 86,521 87,425 Effect of dilutive securities 686 674 1,241 Weighted average common shares outstanding — diluted 87,403 87,195 88,666 Earnings per share Basic $ 1.96 $ 1.04 $ 2.43 Diluted $ 1.94 $ 1.03 $ 2.40 Outstanding stock-based awards representing 0.2 million, 0.5 million and less than 0.1 million shares of common stock were excluded from the calculations of diluted earnings per share in 2023, 2022, and 2021, respectively, because the effect of their inclusion would have been antidilutive to those years. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 30, 2023 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS Mystery Ranch and Butter Pat Acquisitions During the first quarter of 2024, we completed the acquisitions of Mystery Ranch, Ltd. (“Mystery Ranch”), a designer and manufacturer of durable load-bearing backpacks, bags, and pack accessories, and Butter Pat Industries, LLC (“Butter Pat”), a designer and manufacturer of cast iron cookware. The total purchase consideration for both transactions was approximately $48.5 million in cash. The acquisitions were funded through cash on hand. We plan to integrate the Mystery Ranch and Butter Pat operations and products into our business to further expand our capabilities in the bags and cookware categories. Share Repurchase Program |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Pay vs Performance Disclosure | |||
Net income | $ 169,885 | $ 89,693 | $ 212,602 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Dec. 30, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
ORGANIZATION AND SIGNIFICANT _2
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Principles of Consolidation and Out-of-Period Adjustment | 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. Certain prior period amounts have been reclassified to conform to current period presentation. Out-of-Period Adjustment During the first quarter of 2022, we recognized $6.4 million in cost of goods sold for inbound freight expense recorded as an out-of-period adjustment. The adjustment was not considered material to the interim or annual consolidated financial statements for the year ended December 31, 2022 or the financial statements of any previously filed interim or annual periods. |
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. 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- or 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 years 2023, 2022 and 2021 were 52-week periods. The consolidated financial results presented herein represent the fiscal years ended December 30, 2023 (“2023”), December 31, 2022 (“2022”), and January 1, 2022 (“2021”). |
Accounts Receivable | Accounts Receivable |
Advertising | Advertising |
Benefit Plan | Benefit Plan |
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 |
Deferred Financing Fees | Deferred Financing Fees |
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 Secured Overnight Financing Rate (“SOFR”). |
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 2023 and 2022, 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 2023 and 2022. 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, other intangibles, such as copyrights and domain name assets, and patent and trademark defense costs. Definite-lived intangible assets are amortized on a straight-line basis over their estimated useful lives. See Note 6 for the estimated useful lives of our definite-lived intangible assets. 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. Where the defense of the patent and trademark maintains rather than increases the expected future economic benefits from the asset, the costs are expensed as incurred. The external legal costs incurred and settlements received may not occur in the same period. Capitalized costs incurred during 2023, 2022, and 2021 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 income 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 |
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. We capitalize direct internal and external costs related to software used for internal purposes. 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 |
Revenue Recognition | Revenue Recognition Revenue transactions associated with the sale of our products 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. 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. |
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 Costs |
Stock‑Based Compensation | Stock-Based Compensation Stock-based compensation awards granted to employees and non-employee directors are measured at fair value. Stock-based compensation expense is recognized on a straight-line basis over the requisite service period. Stock-based compensation expense equal to the fair value of performance-based awards that are expected to vest is estimated and recognized on a straight-line basis over the performance period of the awards. Compensation expense estimates are updated periodically. The vesting of the performance-based awards 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. The grant date fair value of restricted stock units, restricted stock awards, and deferred stock units is based on the closing price of our common stock on the award date. The grant date fair value of performance-based awards is estimated on the award date using a Monte Carlo simulation model. For certain of the awards granted, the grant date fair value was calculated using the Finnerty model, as the after-tax portion of these awards is subject to a holding period of one year after the vesting date. The grant date fair value of each stock option granted is estimated on the award date using the Black-Scholes model. The Monte Carlo simulation model, Finnerty model, and Black-Scholes model require various judgmental assumptions including volatility, forfeiture rates and expected option life. No stock options were granted in 2023, 2022, and 2021. 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 9 for further discussion. |
Valuation of Long Lived Assets | Valuation of Long-Lived Assets |
Warranty | Warranty three |
Recently Adopted Accounting Pronouncements and Recent Accounting Guidance Not Yet Adopted | Recently Adopted Accounting Pronouncements In March 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. The ASU is intended to ease the potential accounting and financial reporting burden of reference rate reform, including the expected market transition from the London Interbank Offering Rate (“LIBOR”) and other interbank offered rates to alternative reference rates. The guidance provides optional expedients and scope exceptions for transactions if certain criteria are met. These transactions include contract modifications, hedge accounting, and the sale or transfer of debt securities classified as held-to-maturity. We adopted this ASU in the first quarter of 2023. Adoption of this new standard did not have a material impact on our consolidated financial statements. In September 2022, the FASB issued ASU 2022-04, Liabilities-Supplier Finance Programs (Topic 405-50) - Disclosure of Supplier Finance Program Obligations, which requires disclosures intended to enhance the transparency of supplier finance programs. The ASU requires buyers in a supplier finance program to disclose sufficient information about the program to allow a user of financial statements to understand the program’s nature, activity during the period, changes from period to period, and potential magnitude. The ASU is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, except for the amendment on rollforward information, which is effective for fiscal years beginning after December 15, 2023. We adopted provisions of this ASU in the first quarter of 2023, with the exception of the amendment on rollforward information, which will be adopted in the first quarter of 2024. Adoption of the new standard did not have a material impact on our consolidated financial statements. Recent Accounting Guidance Not Yet Adopted In November 2023, the FASB issued Accounting Standards Update (ASU) 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. The new standard requires enhanced disclosures about significant segment expenses and other segment items and requires companies to provide all annual disclosures about segments in interim periods. All disclosure requirements under ASU 2023-07 are also required for public entities with a single reportable segment. The ASU is effective for the Company’s Annual Report on Form 10-K for the fiscal year ending December 28, 2024, and subsequent interim periods, with early adoption permitted. We are currently evaluating the impact of adopting this ASU on our consolidated financial statements and related disclosures. In December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures.” The amendments in this update are intended to enhance the transparency and decision usefulness of income tax disclosures primarily through changes to the rate reconciliation and income taxes paid information. This update is effective for annual periods beginning after December 15, 2024, with early adoption permitted. We are currently evaluating the ASU to determine its impact on our consolidated financial statements and related disclosures. |
ORGANIZATION AND SIGNIFICANT _3
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of Property and Equipment | 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 Property and equipment consisted of the following at the dates indicated (in thousands): December 30, December 31, Production molds, tooling, and equipment $ 112,478 $ 101,363 Furniture, fixtures, and equipment 16,605 12,884 Computers and software 100,803 90,103 Leasehold improvements 55,556 45,523 Finance leases 11,361 10,736 Property and equipment, gross 296,803 260,609 Accumulated depreciation (166,089) (136,022) Property and equipment, net $ 130,714 $ 124,587 Property and equipment, net by geographical region was as follows as of the dates indicated (in thousands): December 30, December 31, United States $ 84,564 $ 83,011 International 46,150 41,576 Property and equipment, net $ 130,714 $ 124,587 |
REVENUE (Tables)
REVENUE (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Accounts Receivable and Contract Liabilities | The following table provides information about accounts receivable and contract liabilities at the periods indicated (in thousands): December 30, 2023 December 31, Accounts receivable, net $ 95,774 $ 79,446 Contract liabilities (22,437) (7,702) |
Schedule of Disaggregation of Revenue | The following table disaggregates our net sales by channel, product category, and geography for the periods indicated (in thousands): 2023 (1) 2022 (1) 2021 Net Sales by Channel: Wholesale $ 661,000 $ 677,517 $ 626,259 Direct-to-consumer 997,713 917,705 784,730 Total net sales $ 1,658,713 $ 1,595,222 $ 1,410,989 Net Sales by Category: Coolers & Equipment $ 597,511 $ 612,525 $ 551,861 Drinkware 1,022,982 947,221 832,428 Other 38,220 35,476 26,700 Total net sales $ 1,658,713 $ 1,595,222 $ 1,410,989 Net Sales by Geographic Region (2) : United States $ 1,398,925 $ 1,394,026 $ 1,267,701 International 259,788 201,196 143,288 Total net sales $ 1,658,713 $ 1,595,222 $ 1,410,989 _______________________________________ (1) Includes the impact from the recall reserve adjustment. See Note 11 for further discussion of our recalls. |
Schedules of Concentration of Risk, by Risk Factor | Customers that accounted for 10% or more of gross sales were as follows: 2023 2022 2021 Customer A * 11% 10% _______________________________________ * Gross sales were less than 10% and no other customer exceeded 10% of gross sales. |
PREPAID EXPENSES AND OTHER CU_2
PREPAID EXPENSES AND OTHER CURRENT ASSETS (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Prepaid Expenses and Other Current Assets | Prepaid expenses and other current assets include the following (in thousands): December 30, December 31, Prepaid expenses $ 21,165 $ 18,149 Prepaid taxes 15,089 10,222 Other 6,209 4,950 Total prepaid expenses and other current assets $ 42,463 $ 33,321 |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
Property, Plant and Equipment [Abstract] | |
Summary of Property and Equipment | 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 Property and equipment consisted of the following at the dates indicated (in thousands): December 30, December 31, Production molds, tooling, and equipment $ 112,478 $ 101,363 Furniture, fixtures, and equipment 16,605 12,884 Computers and software 100,803 90,103 Leasehold improvements 55,556 45,523 Finance leases 11,361 10,736 Property and equipment, gross 296,803 260,609 Accumulated depreciation (166,089) (136,022) Property and equipment, net $ 130,714 $ 124,587 Property and equipment, net by geographical region was as follows as of the dates indicated (in thousands): December 30, December 31, United States $ 84,564 $ 83,011 International 46,150 41,576 Property and equipment, net $ 130,714 $ 124,587 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
Leases [Abstract] | |
Summary of Balance Sheet | The following table presents the assets and liabilities related to operating and finance leases (in thousands): Balance Sheet Location December 30, 2023 December 31, 2022 Assets: Operating lease assets Operating lease right-of-use assets $ 77,556 $ 55,406 Finance lease assets Property and equipment, net 6,295 7,533 Total lease assets $ 83,851 $ 62,939 Liabilities: Current Operating lease liabilities Operating lease liabilities $ 14,726 $ 12,076 Finance lease liabilities Current maturities of long-term debt 2,360 2,111 Non-current Operating lease liabilities Operating lease liabilities, non-current 76,163 55,649 Finance lease liabilities Long-term debt, net of current portion 3,445 5,198 Total lease liabilities $ 96,694 $ 75,034 |
Summary of Lease Cost | The following table presents the components of lease costs (in thousands): Fiscal Year Ended December 30, 2023 December 31, 2022 January 1, 2022 Operating lease costs $ 14,889 $ 12,943 12,312 Finance lease cost - amortization of right-of-use assets 1,862 1,860 1,046 Finance lease cost - interest on lease liabilities 138 182 139 Short-term lease cost 246 67 366 Variable lease cost 5,537 4,645 3,822 Sublease income (747) (743) (743) Total lease cost $ 21,925 $ 18,954 $ 16,942 The following table presents lease terms and discount rates: December 30, 2023 December 31, 2022 Weighted average remaining lease term: Operating leases 6.38 years 5.90 years Finance leases 4.01 years 4.73 years Weighted average discount rate: Operating leases 4.87 % 4.76 % Finance leases 2.50 % 2.20 % The following table presents supplemental cash flow information related to our leases (in thousands): December 30, 2023 December 31, 2022 January 1, 2022 Cash paid for amounts included in measurement of liabilities: Operating cash flows used in operating leases $ 15,047 $ 13,387 $ 13,146 Operating cash flows used in finance leases 137 182 139 Financing cash flows used in finance leases 2,131 2,063 1,108 Right-of-use assets obtained in exchange for new lease liabilities: Operating leases 35,497 12,083 30,234 Finance leases 625 17 9,517 |
Schedule of Operating Lease Liability, Maturity | The following table presents the minimum lease payment obligations of operating and finance lease liabilities (leases with terms in excess of one year) for the next five years and thereafter as of December 30, 2023 (in thousands): Operating Leases Finance Leases Total 2024 $ 18,571 $ 2,300 $ 20,871 2025 21,236 2,360 23,596 2026 17,612 1,011 18,623 2027 13,280 176 13,456 2028 9,427 156 9,583 Thereafter 27,153 — 27,153 Total lease payments 107,279 6,003 113,282 Less: Effect of discounting to net present value 16,390 198 16,588 Present value of lease liabilities $ 90,889 $ 5,805 $ 96,694 |
Schedule of Finance Lease Liability, Maturity | The following table presents the minimum lease payment obligations of operating and finance lease liabilities (leases with terms in excess of one year) for the next five years and thereafter as of December 30, 2023 (in thousands): Operating Leases Finance Leases Total 2024 $ 18,571 $ 2,300 $ 20,871 2025 21,236 2,360 23,596 2026 17,612 1,011 18,623 2027 13,280 176 13,456 2028 9,427 156 9,583 Thereafter 27,153 — 27,153 Total lease payments 107,279 6,003 113,282 Less: Effect of discounting to net present value 16,390 198 16,588 Present value of lease liabilities $ 90,889 $ 5,805 $ 96,694 |
INTANGIBLE ASSETS (Tables)
INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
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): December 30, 2023 Useful Life Gross Carrying Amount Accumulated Amortization Net Carrying Amount Tradename Indefinite $ 31,363 $ — $ 31,363 Trade dress Indefinite 16,707 — 16,707 Trademarks Indefinite 33,850 — 33,850 Customer relationships 11 years 42,205 (42,205) — Trademarks 6 - 30 years 22,323 (11,939) 10,384 Patents 4 - 25 years 28,803 (4,041) 24,762 Other intangibles 15 years 1,049 (486) 563 Total intangible assets $ 176,300 $ (58,671) $ 117,629 December 31, 2022 Useful Life Gross Carrying Amount Accumulated Amortization Net Carrying Amount Tradename Indefinite $ 31,363 $ — $ 31,363 Trade dress Indefinite 14,079 — 14,079 Trademarks Indefinite 21,745 — 21,745 Customer relationships 11 years 42,205 (40,457) 1,748 Trademarks 6 - 30 years 21,574 (9,834) 11,740 Patents 4 - 25 years 20,810 (2,682) 18,128 Other intangibles 15 years 1,047 (421) 626 Total intangible assets $ 152,823 $ (53,394) $ 99,429 |
Schedule of Indefinite-Lived Intangible Assets | Intangible assets consisted of the following at the dates indicated below (dollars in thousands): December 30, 2023 Useful Life Gross Carrying Amount Accumulated Amortization Net Carrying Amount Tradename Indefinite $ 31,363 $ — $ 31,363 Trade dress Indefinite 16,707 — 16,707 Trademarks Indefinite 33,850 — 33,850 Customer relationships 11 years 42,205 (42,205) — Trademarks 6 - 30 years 22,323 (11,939) 10,384 Patents 4 - 25 years 28,803 (4,041) 24,762 Other intangibles 15 years 1,049 (486) 563 Total intangible assets $ 176,300 $ (58,671) $ 117,629 December 31, 2022 Useful Life Gross Carrying Amount Accumulated Amortization Net Carrying Amount Tradename Indefinite $ 31,363 $ — $ 31,363 Trade dress Indefinite 14,079 — 14,079 Trademarks Indefinite 21,745 — 21,745 Customer relationships 11 years 42,205 (40,457) 1,748 Trademarks 6 - 30 years 21,574 (9,834) 11,740 Patents 4 - 25 years 20,810 (2,682) 18,128 Other intangibles 15 years 1,047 (421) 626 Total intangible assets $ 152,823 $ (53,394) $ 99,429 |
ACCRUED EXPENSES AND OTHER CU_2
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities consisted of the following at the dates indicated (in thousands): December 30, December 31, Accrued freight and distribution costs $ 45,228 $ 56,354 Product recall reserves (1) 13,090 94,807 Contract liabilities 22,437 7,702 Customer discounts, allowances, and returns 11,515 9,948 Advertising and marketing 9,945 11,547 Warranty reserve 9,808 9,996 Accrued capital expenditures 590 895 Interest payable 159 941 Other 17,254 19,209 Total accrued expenses and other current liabilities $ 130,026 $ 211,399 _______________________________________ (1) See Note 11 for further discussion of our product recall reserves. |
LONG-TERM DEBT (Tables)
LONG-TERM DEBT (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt Instruments | Long-term debt consisted of the following at the dates indicated (in thousands): December 30, December 31, Term Loan A, due 2028 $ 82,266 $ 90,000 Finance lease debt 5,805 7,309 Total debt 88,071 97,309 Current maturities of long-term debt (4,219) (22,500) Current maturities of finance lease debt (2,360) (2,111) Total long-term debt 81,492 72,698 Unamortized deferred financing fees (2,847) (957) Total long-term debt, net $ 78,645 $ 71,741 |
Schedule of Maturities of Long-Term Debt | At December 30, 2023, the future maturities of principal amounts of our debt obligations, excluding finance lease obligations, for the next five years and in total (see Note 5 for future maturities of finance lease obligations), consisted of the following (in thousands): Amount 2024 4,219 2025 4,219 2026 4,219 2027 4,219 2028 65,390 Total $ 82,266 |
STOCK BASED COMPENSATION (Table
STOCK BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Summary of PBRSs, RSUs, RSAs, and DSUs | Stock-based activity, excluding options, for the year ended December 30, 2023 is summarized below (in thousands, except per share data): Performance-Based Restricted Stock Awards and Performance-Based Restricted Stock Units Restricted Stock Units, Restricted Stock Awards, and Deferred Stock Units Number of PBRSs and PBRSUs Weighted Average Grant Date Fair Value Number of RSUs, RSAs, and DSUs Weighted Average Grant Date Fair Value Nonvested, December 31, 2022 233 $ 53.63 812 $ 51.28 Granted 279 38.59 1,009 38.81 Vested/released (99) 32.84 (383) 51.74 Forfeited/expired (15) 64.98 (126) 47.01 Nonvested, December 30, 2023 398 $ 48.14 1,312 $ 41.99 The following table summarizes additional information about PBRSs PBRSUs, RSUs, RSAs, and DSUs (in thousands, except per share data): Fiscal Year Ended December 30, December 31, January 1, Weighted average grant date fair value per share of awards granted $ 38.74 $ 52.42 $ 79.06 Total grant date fair value of awards vested $ 19,828 $ 11,602 $ 7,145 Intrinsic value of awards vested $ 16,485 $ 12,434 $ 19,346 |
Summary of Stock Options | A summary of the stock options is as follows for the periods indicated (in thousands, except per share data): Number of Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Balance, December 31, 2022 642 $ 20.10 5.93 Exercised (64) 24.41 Balance, December 30, 2023 578 $ 19.62 4.89 $ 18,550 Exercisable, December 30, 2023 578 $ 19.62 4.89 $ 18,550 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Commitments | Future commitments under non-cancelable agreements at December 30, 2023 were as follows (in thousands): Fiscal Year Total 2024 2025 2026 2027 2028 Thereafter Non-cancelable agreements (1) $ 154,013 $ 73,867 $ 50,515 $ 21,900 $ 6,198 $ 1,533 $ — _________________________ (1) We have entered into commitments for service and maintenance agreements related to our management information systems, distribution contracts, advertising, sponsorships, and licensing agreements. |
Summary of Reserve for the Estimated Product Recall Expenses | The following table summarizes the activity in the reserve for the estimated product recall expenses (in thousands): December 30, 2023 Balance, January 1, 2023 $ 94,807 Actual product refunds, replacements and recall-related costs (55,470) Gift card issuances (1) (29,802) Reserve adjustment 3,555 Balance, December 30, 2023 $ 13,090 _________________________ (1) For the year ended December 30, 2023, we recognized net sales of $25.3 million from redeemed recall-related gift cards. As of December 30, 2023, we had $4.5 million in unredeemed recall-related gift card liabilities, which are included in contract liabilities within accrued expenses and other current liabilities on our consolidated balance sheet. |
Summary of Recall Reserve Adjustment of Estimated Product Recall Expenses | The product recalls, which include recall reserve adjustments and other incurred costs, had the following effect on our income before income taxes (in thousands): Fiscal Year Ended December 30, 2023 December 31, 2022 Decrease to net sales (1) $ (21,700) $ (38,415) Decrease (increase) to cost of goods sold (2) 8,423 (58,583) Decrease to gross profit (13,277) (96,998) Decrease (increase) to selling, general and administrative expenses (3) 11,382 (31,910) Decrease to income before income taxes $ (1,895) $ (128,908) _________________________ (1) For the year ended December 30, 2023, primarily reflects the unfavorable impact of the recall reserve adjustment mainly related to higher estimated future recall remedies (i.e., estimated gift card elections). For the year ended December 31, 2022, reflects a reduction for estimated future returns and recall remedies in connection with the initial recognition of the product recall reserves. Of the total net sales impact, $7.3 million and $14.4 million was allocated to our DTC and wholesale channels for the year ended December 30, 2023, and $6.2 million and $32.2 million was allocated to our DTC and wholesale channels for the year ended December 31, 2022. These amounts were allocated based on the historical channel sell-in basis of the affected products. (2) For the year ended December 30, 2023, reflects the impact of favorable recall reserve adjustments primarily related to lower estimated costs of future product replacement remedy elections and logistics costs and lower recall-related costs. For the year ended December 31, 2022, reflects an increase to cost of goods sold primarily related to inventory write-offs for unsalable inventory on-hand, and estimated costs of future product replacement remedies, and logistics costs in connection with the initial recognition of the product recall reserves. (3) |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Before Income Taxes | The components of income before income taxes were as follows for the periods indicated (in thousands): Fiscal Year Ended December 30, December 31, January 1, Domestic $ 215,490 $ 107,578 $ 262,182 Foreign 10,456 8,599 6,228 Income before income taxes $ 225,946 $ 116,177 $ 268,410 |
Schedule of Components of Income Tax Expense (Benefit) | The components of income tax expense were as follows for the periods indicated (in thousands): Fiscal Year Ended December 30, December 31, January 1, Current tax expense: U.S. federal $ 21,139 $ 43,967 $ 37,963 State 7,659 11,761 11,018 Foreign 1,936 3,372 1,726 Total current tax expense 30,734 59,100 50,707 Deferred tax expense (benefit): U.S. federal 20,136 (26,783) 4,770 State 4,230 (4,499) 540 Foreign 961 (1,334) (209) Total deferred tax expense (benefit) 25,327 (32,616) 5,101 Total income tax expense $ 56,061 $ 26,484 $ 55,808 |
Schedule of Effective Income Tax Rate Reconciliation | 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 December 30, December 31, January 1, Income taxes at the statutory rate $ 47,449 $ 24,397 $ 56,366 Increase (decrease) resulting from: State income taxes, net of federal tax effect 8,532 4,454 8,562 Foreign-derived intangible income (3,192) (2,878) (3,056) Research and development tax credits (681) (742) (630) Tax expense (benefit) related to stock-based compensation 713 (472) (7,259) Other 3,240 1,725 1,825 Income tax expense $ 56,061 $ 26,484 $ 55,808 |
Schedule of Deferred Tax Assets and Liabilities | Deferred tax assets and liabilities consisted of the following for the periods indicated (in thousands): Fiscal Year Ended December 30, December 31, Deferred tax assets: Accrued liabilities $ 7,688 $ 24,339 Allowances and other reserves 3,450 3,510 Inventory 2,974 13,022 Stock-based compensation 5,857 5,410 Operating lease liabilities 22,280 16,817 Capitalized research and development expenditures 9,276 7,921 Other 2,647 4,520 Total deferred tax assets $ 54,172 $ 75,539 Deferred tax liabilities: Operating lease assets $ (19,047) $ (13,828) Prepaid expenses (1,279) (1,286) Property and equipment (11,469) (15,734) Intangible assets (24,645) (21,346) Other (60) (112) Total deferred tax liabilities (56,500) (52,306) Net deferred tax liabilities $ (2,328) $ 23,233 Amounts included in the Consolidated Balance Sheets: Deferred income taxes $ 1,692 $ 23,233 Other liabilities (4,020) — Net deferred income tax liabilities $ (2,328) $ 23,233 |
Schedule of Unrecognized Tax Benefits | The following table summarizes the activity related to our unrecognized tax benefits for the periods indicated (excluding interest and penalties) (in thousands): Fiscal Year Ended December 30, December 31, Balance, beginning of year $ 12,591 $ 11,113 Gross increases related to current year tax positions 1,318 2,270 Gross increases related to prior year tax positions 1,060 36 Gross decreases related to prior year tax positions (141) (68) Decreases as a result of settlements during the current period — (260) Lapse of statute of limitations (492) (500) Balance, end of year $ 14,336 $ 12,591 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table sets forth the calculation of earnings per share and weighted-average common shares outstanding at the dates indicated (in thousands, except per share data): Fiscal Year Ended December 30, December 31, January 1, Net income $ 169,885 $ 89,693 $ 212,602 Weighted average common shares outstanding — basic 86,717 86,521 87,425 Effect of dilutive securities 686 674 1,241 Weighted average common shares outstanding — diluted 87,403 87,195 88,666 Earnings per share Basic $ 1.96 $ 1.04 $ 2.43 Diluted $ 1.94 $ 1.03 $ 2.40 |
ORGANIZATION AND SIGNIFICANT _4
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES - Out-of-Period Adjustment (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Apr. 02, 2022 | Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Cost of goods sold | $ 715,527 | $ 831,821 | $ 594,876 | |
Revision of Prior Period, Adjustment | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Cost of goods sold | $ 6,400 |
ORGANIZATION AND SIGNIFICANT _5
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES - Accounts Receivable and Advertising (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Allowance for doubtful accounts receivable | $ 0.5 | $ 0.7 | |
Advertising expense | 75.5 | 68.1 | $ 61.9 |
Prepaid advertising | $ 0.5 | $ 0.5 | |
Accounts Receivable | Customer Concentration Risk | One Customer | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Customer concentration | 12% | 14% | |
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 - Benefit Plan (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Employer contributions | $ 2 | $ 1.5 | $ 1.2 |
ORGANIZATION AND SIGNIFICANT _7
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES - Concentration of Risk, Deferred Financing Fees and Supplier Finance Program Obligations (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 30, 2023 | Dec. 31, 2022 | |
Line of Credit Facility [Line Items] | ||
Amortization of deferred financing fees | $ 0.6 | $ 0.6 |
Payment obligations | $ 77.3 | $ 70.7 |
Coolers & Equipment | Sales Revenue | Product Concentration Risk | ||
Line of Credit Facility [Line Items] | ||
Production volume (as a percent) | 44% | |
Drinkware | Sales Revenue | Product Concentration Risk | ||
Line of Credit Facility [Line Items] | ||
Production volume (as a percent) | 73% |
ORGANIZATION AND SIGNIFICANT _8
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES - Inventories (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 30, 2023 | Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Inventory reserves | $ 2.2 | $ 37.3 |
Inventory write-down | $ 34.1 | $ 34.1 |
ORGANIZATION AND SIGNIFICANT _9
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES - Property and Equipment (Details) | Dec. 30, 2023 |
Leasehold improvements | |
Property and Equipment | |
Property, plant and equipment, useful life | 10 years |
Molds and tooling | Minimum | |
Property and Equipment | |
Property, plant and equipment, useful life | 3 years |
Molds and tooling | Maximum | |
Property and Equipment | |
Property, plant and equipment, useful life | 5 years |
Furniture and equipment | Minimum | |
Property and Equipment | |
Property, plant and equipment, useful life | 3 years |
Furniture 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_10
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES - Related-Party Agreements (Details) | 12 Months Ended |
Dec. 30, 2023 USD ($) facility | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of warehouse facility leased | facility | 1 |
Lease notice period | 30 days |
Lease rental expense | $ | $ 8,700 |
ORGANIZATION AND SIGNIFICANT_11
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES - Research and Development Costs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Research and development expense | $ 15.5 | $ 15.4 | $ 13.7 |
ORGANIZATION AND SIGNIFICANT_12
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES - Segment Information (Details) | 12 Months Ended |
Dec. 30, 2023 segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of reportable segments | 1 |
ORGANIZATION AND SIGNIFICANT_13
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES - Shipping and Handling Costs and Stock-Based Compensation (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Cost of product shipment to customers | $ 125.4 | $ 114.8 | $ 89.7 |
Vesting period (in years) | 1 year |
ORGANIZATION AND SIGNIFICANT_14
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES - Warranty (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Warranty reserve | $ 9,808 | $ 9,996 | |
Warranty costs | $ 6,300 | $ 5,800 | $ 6,900 |
Minimum | |||
Warranty term | 3 years | ||
Maximum | |||
Warranty term | 5 years |
REVENUE - Narrative (Details)
REVENUE - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 30, 2023 | Dec. 31, 2022 | |
Disaggregation of Revenue [Line Items] | ||
Contract liabilities | $ 22,437 | $ 7,702 |
Contract with customer liability, revenue recognized | (7,700) | |
Unredeemed Gift Cards | ||
Disaggregation of Revenue [Line Items] | ||
Contract liabilities | $ 4,500 |
REVENUE - Contract Balances (De
REVENUE - Contract Balances (Details) - USD ($) $ in Thousands | Dec. 30, 2023 | Dec. 31, 2022 |
Revenue from Contract with Customer [Abstract] | ||
Accounts receivable, net | $ 95,774 | $ 79,446 |
Contract liabilities | $ (22,437) | $ (7,702) |
REVENUE - Disaggregation of Rev
REVENUE - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Disaggregation of Revenue [Line Items] | |||
Net sales | $ 1,658,713 | $ 1,595,222 | $ 1,410,989 |
United States | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 1,398,925 | 1,394,026 | 1,267,701 |
International | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 259,788 | 201,196 | 143,288 |
Coolers & Equipment | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 597,511 | 612,525 | 551,861 |
Drinkware | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 1,022,982 | 947,221 | 832,428 |
Other | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 38,220 | 35,476 | 26,700 |
Wholesale | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 661,000 | 677,517 | 626,259 |
Direct-to-consumer | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | $ 997,713 | $ 917,705 | $ 784,730 |
REVENUE - Concentration (Detail
REVENUE - Concentration (Details) | 12 Months Ended | |
Dec. 31, 2022 | Jan. 01, 2022 | |
Sales Revenue | Customer Concentration Risk | Customer A | ||
Disaggregation of Revenue [Line Items] | ||
Customer concentration | 11% | 10% |
PREPAID EXPENSES AND OTHER CU_3
PREPAID EXPENSES AND OTHER CURRENT ASSETS (Details) - USD ($) $ in Thousands | Dec. 30, 2023 | Dec. 31, 2022 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Prepaid expenses | $ 21,165 | $ 18,149 |
Prepaid taxes | 15,089 | 10,222 |
Other | 6,209 | 4,950 |
Total prepaid expenses and other current assets | $ 42,463 | $ 33,321 |
PROPERTY AND EQUIPMENT (Details
PROPERTY AND EQUIPMENT (Details) - USD ($) $ in Thousands | Dec. 30, 2023 | Dec. 31, 2022 |
Property and Equipment | ||
Finance leases | $ 11,361 | $ 10,736 |
Property and equipment, gross | 296,803 | 260,609 |
Accumulated depreciation | (166,089) | (136,022) |
Property and equipment, net | 130,714 | 124,587 |
Property and equipment - geographic | 130,714 | 124,587 |
United States | ||
Property and Equipment | ||
Property and equipment, net | 84,564 | 83,011 |
Property and equipment - geographic | 84,564 | 83,011 |
International | ||
Property and Equipment | ||
Property and equipment, net | 46,150 | 41,576 |
Property and equipment - geographic | 46,150 | 41,576 |
Production molds, tooling, and equipment | ||
Property and Equipment | ||
Property and equipment, gross | 112,478 | 101,363 |
Furniture, fixtures, and equipment | ||
Property and Equipment | ||
Property and equipment, gross | 16,605 | 12,884 |
Computers and software | ||
Property and Equipment | ||
Property and equipment, gross | 100,803 | 90,103 |
Leasehold improvements | ||
Property and Equipment | ||
Property and equipment, gross | $ 55,556 | $ 45,523 |
PROPERTY AND EQUIPMENT - Narrat
PROPERTY AND EQUIPMENT - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation expense | $ 41.2 | $ 32.8 | $ 25.7 |
LEASES - Narrative (Details)
LEASES - Narrative (Details) ft² in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 30, 2023 USD ($) | Dec. 31, 2022 USD ($) | Jan. 01, 2022 USD ($) | Jul. 03, 2021 ft² | |
Lessee, Lease, Description [Line Items] | ||||
Lease term | 5 years | |||
Minimum lease payments sublease rentals | $ 900 | |||
Sublease income | $ 747 | $ 743 | $ 743 | |
Area of facility | ft² | 970 | |||
Minimum | ||||
Lessee, Lease, Description [Line Items] | ||||
Lease term | 1 year | |||
Maximum | ||||
Lessee, Lease, Description [Line Items] | ||||
Lease term | 20 years |
LEASES - Balance Sheet (Details
LEASES - Balance Sheet (Details) - USD ($) $ in Thousands | Dec. 30, 2023 | Dec. 31, 2022 |
Assets: | ||
Operating lease assets | $ 77,556 | $ 55,406 |
Finance lease assets | 6,295 | 7,533 |
Total lease assets | 83,851 | 62,939 |
Current | ||
Operating lease liabilities | 14,726 | 12,076 |
Finance lease liabilities | 2,360 | 2,111 |
Non-current | ||
Operating lease liabilities | 76,163 | 55,649 |
Finance lease liabilities | 3,445 | 5,198 |
Total lease liabilities | $ 96,694 | $ 75,034 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Property and equipment - geographic | Property and equipment - geographic |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Current maturities of long-term debt | Current maturities of long-term debt |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Long-term debt, net of current portion | Long-term debt, net of current portion |
LEASES - Lease Cost (Details)
LEASES - Lease Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Leases [Abstract] | |||
Operating lease costs | $ 14,889 | $ 12,943 | $ 12,312 |
Finance lease cost - amortization of right-of-use assets | 1,862 | 1,860 | 1,046 |
Finance lease cost - interest on lease liabilities | 138 | 182 | 139 |
Short-term lease cost | 246 | 67 | 366 |
Variable lease cost | 5,537 | 4,645 | 3,822 |
Sublease Income | (747) | (743) | (743) |
Total lease cost | $ 21,925 | $ 18,954 | $ 16,942 |
Weighted average remaining lease term: | |||
Operating leases (in years) | 6 years 4 months 17 days | 5 years 10 months 24 days | |
Finance leases (in years) | 4 years 3 days | 4 years 8 months 23 days | |
Weighted average discount rate: | |||
Operating leases (as a percent) | 4.87% | 4.76% | |
Finance leases (as a percent) | 2.50% | 2.20% |
LEASES - Future Minimum Lease P
LEASES - Future Minimum Lease Payments (Details) - USD ($) $ in Thousands | Dec. 30, 2023 | Dec. 31, 2022 |
Operating Leases | ||
2024 | $ 18,571 | |
2025 | 21,236 | |
2026 | 17,612 | |
2027 | 13,280 | |
2028 | 9,427 | |
Thereafter | 27,153 | |
Total lease payments | 107,279 | |
Less: Effect of discounting to net present value | 16,390 | |
Present value of lease liabilities | 90,889 | |
Finance Leases | ||
2024 | 2,300 | |
2025 | 2,360 | |
2026 | 1,011 | |
2027 | 176 | |
2028 | 156 | |
Thereafter | 0 | |
Total lease payments | 6,003 | |
Less: Effect of discounting to net present value | 198 | |
Present value of lease liabilities | 5,805 | $ 7,309 |
Total | ||
2024 | 20,871 | |
2025 | 23,596 | |
2026 | 18,623 | |
2027 | 13,456 | |
2028 | 9,583 | |
Thereafter | 27,153 | |
Total lease payments | 113,282 | |
Less: Effect of discounting to net present value | 16,588 | |
Present value of lease liabilities | $ 96,694 |
LEASES - Supplemental Cash Flow
LEASES - Supplemental Cash Flow (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Leases [Abstract] | |||
Operating cash flows used in operating leases | $ 15,047 | $ 13,387 | $ 13,146 |
Operating cash flows used in finance leases | 137 | 182 | 139 |
Financing cash flows used in finance leases | 2,131 | 2,063 | 1,108 |
Operating leases | 35,497 | 12,083 | 30,234 |
Finance leases | $ 625 | $ 17 | $ 9,517 |
INTANGIBLE ASSETS (Details)
INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands | Dec. 30, 2023 | Dec. 31, 2022 |
Finite Lived And Indefinite Lived Intangible Assets By Major Class Line Items | ||
Gross carrying amount | $ 176,300 | $ 152,823 |
Accumulated Amortization | (58,671) | (53,394) |
Net carrying amount, indefinite-lived | 117,629 | 99,429 |
Net carrying amount, finite-lived | 117,629 | 99,429 |
Trademarks | ||
Finite Lived And Indefinite Lived Intangible Assets By Major Class Line Items | ||
Gross carrying amount, finite-lived | 22,323 | 21,574 |
Accumulated Amortization | (11,939) | (9,834) |
Net carrying amount, finite-lived | $ 10,384 | $ 11,740 |
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 | (42,205) | (40,457) |
Net carrying amount, finite-lived | 0 | 1,748 |
Patents | ||
Finite Lived And Indefinite Lived Intangible Assets By Major Class Line Items | ||
Gross carrying amount, finite-lived | 28,803 | 20,810 |
Accumulated Amortization | (4,041) | (2,682) |
Net carrying amount, finite-lived | $ 24,762 | $ 18,128 |
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 | $ 1,049 | $ 1,047 |
Accumulated Amortization | (486) | (421) |
Net carrying amount, finite-lived | 563 | 626 |
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 | 16,707 | 14,079 |
Net carrying amount, indefinite-lived | 16,707 | 14,079 |
Trademarks | ||
Finite Lived And Indefinite Lived Intangible Assets By Major Class Line Items | ||
Gross carrying amount, indefinite-lived | 33,850 | 21,745 |
Net carrying amount, indefinite-lived | $ 33,850 | $ 21,745 |
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 - Narrative (
INTANGIBLE ASSETS - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization expense | $ 5.3 | $ 6.9 | $ 6.4 |
2024 | 3.8 | ||
2025 | 3.7 | ||
2026 | 2.9 | ||
2027 | 2.4 | ||
2028 | $ 2 |
ACCRUED EXPENSES AND OTHER CU_3
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Details) - USD ($) $ in Thousands | Dec. 30, 2023 | Dec. 31, 2022 |
Payables and Accruals [Abstract] | ||
Accrued freight and distribution costs | $ 45,228 | $ 56,354 |
Product recall reserves | 13,090 | 94,807 |
Contract liabilities | 22,437 | 7,702 |
Customer discounts, allowances, and returns | 11,515 | 9,948 |
Advertising and marketing | 9,945 | 11,547 |
Warranty reserve | 9,808 | 9,996 |
Accrued capital expenditures | 590 | 895 |
Interest payable | 159 | 941 |
Other | 17,254 | 19,209 |
Total accrued expenses and other current liabilities | $ 130,026 | $ 211,399 |
LONG-TERM DEBT - Schedule of Lo
LONG-TERM DEBT - Schedule of Long-Term Debt Instruments (Details) - USD ($) $ in Thousands | Dec. 30, 2023 | Dec. 31, 2022 |
Long Term Debt | ||
Term Loan A, due 2028 | $ 82,266 | |
Finance lease debt | 5,805 | $ 7,309 |
Total debt | 88,071 | 97,309 |
Current maturities of long-term debt | (4,219) | (22,500) |
Current maturities of finance lease debt | (2,360) | (2,111) |
Total long-term debt | 81,492 | 72,698 |
Unamortized deferred financing fees | (2,847) | (957) |
Total long-term debt, net | 78,645 | 71,741 |
Term Loan A, due 2028 | Term Loan | ||
Long Term Debt | ||
Term Loan A, due 2028 | $ 82,266 | $ 90,000 |
LONG-TERM DEBT - Schedule of Ma
LONG-TERM DEBT - Schedule of Maturities of Long-Term Debt (Details) $ in Thousands | Dec. 30, 2023 USD ($) |
Debt Disclosure [Abstract] | |
2024 | $ 4,219 |
2025 | 4,219 |
2026 | 4,219 |
2027 | 4,219 |
2028 | 65,390 |
Total | $ 82,266 |
LONG-TERM DEBT - Narrative (Det
LONG-TERM DEBT - Narrative (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended | 27 Months Ended | 55 Months Ended | |||||||
Jun. 22, 2023 | May 31, 2016 | Jul. 01, 2023 | Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | Mar. 31, 2023 | Mar. 31, 2028 | Jun. 21, 2023 | Dec. 17, 2019 | Dec. 16, 2019 | |
Long Term Debt | ||||||||||||
Loss on prepayment, modification, or extinguishment of debt | $ 330,000 | $ 0 | $ 0 | |||||||||
Revolving credit facility | Line of Credit | ||||||||||||
Long Term Debt | ||||||||||||
Term of debt | 5 years | |||||||||||
Available borrowing capacity | $ 300,000,000 | $ 100,000,000 | $ 150,000,000 | $ 150,000,000 | $ 100,000,000 | |||||||
Outstanding balance | 0 | $ 0 | ||||||||||
Revolving credit facility | Line of Credit | Minimum | ||||||||||||
Long Term Debt | ||||||||||||
Commitment fee percentage | 0.20% | |||||||||||
Revolving credit facility | Line of Credit | Minimum | Secured Overnight Financing Rate (SOFR) | Credit Agreement | ||||||||||||
Long Term Debt | ||||||||||||
Basis spread on variable rate (as a percent) | 1.75% | |||||||||||
Revolving credit facility | Line of Credit | Minimum | Base Rate | Credit Agreement | ||||||||||||
Long Term Debt | ||||||||||||
Basis spread on variable rate (as a percent) | 0.75% | |||||||||||
Revolving credit facility | Line of Credit | Maximum | ||||||||||||
Long Term Debt | ||||||||||||
Commitment fee percentage | 0.30% | |||||||||||
Revolving credit facility | Line of Credit | Maximum | Secured Overnight Financing Rate (SOFR) | Credit Agreement | ||||||||||||
Long Term Debt | ||||||||||||
Basis spread on variable rate (as a percent) | 2.50% | |||||||||||
Revolving credit facility | Line of Credit | Maximum | Base Rate | Credit Agreement | ||||||||||||
Long Term Debt | ||||||||||||
Basis spread on variable rate (as a percent) | 1.50% | |||||||||||
Term loan A | ||||||||||||
Long Term Debt | ||||||||||||
Available borrowing capacity | $ 84,400,000 | $ 84,400,000 | ||||||||||
Loss on prepayment, modification, or extinguishment of debt | $ 300,000 | $ 1,100,000 | ||||||||||
Capitalized costs of new lender and third-party fees | $ 2,800,000 | |||||||||||
Weighted average interest rate (as a percent) | 6.83% | 3.49% | ||||||||||
Principal payments due quarterly | $ 5,600,000 | |||||||||||
Voluntary debt repayments on principal | $ 150,000,000 | |||||||||||
Term loan A | Subsequent Event | ||||||||||||
Long Term Debt | ||||||||||||
Principal payments due quarterly | $ 1,100,000 | |||||||||||
Term loan A | Credit Agreement | ||||||||||||
Long Term Debt | ||||||||||||
Periodic payment interest (as a percent) | 1.25% | |||||||||||
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 | ||||||||||||
Term of debt | 5 years | |||||||||||
Available borrowing capacity | $ 445,000,000 | |||||||||||
Term loan B | ||||||||||||
Long Term Debt | ||||||||||||
Term of debt | 6 years | |||||||||||
Available borrowing capacity | $ 105,000,000 | |||||||||||
Letters of Credit | ||||||||||||
Long Term Debt | ||||||||||||
Available borrowing capacity | $ 40,000,000 |
STOCK BASED COMPENSATION - Narr
STOCK BASED COMPENSATION - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period (in years) | 1 year | ||
Award anniversary period | 6 months | ||
Non-cash stock-based compensation expense | $ 29,800,000 | $ 17,799,000 | $ 15,474,000 |
Related income tax benefits | 5,100,000 | 3,800,000 | 12,900,000 |
Compensation expense | $ 50,400,000 | ||
Unrecognized compensation expense for unvested options, recognition period | 2 years | ||
Unrecognized compensation cost | $ 0 | $ 0 | |
Non-vested stock options (in shares) | 0 | 0 | |
Total intrinsic value of stock options exercised | $ 1,000,000 | $ 3,300,000 | 33,100,000 |
Total fair value of stock options vested | 1,700,000 | 2,200,000 | |
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period (in years) | 3 years | ||
Term of award | 10 years | ||
Related income tax benefits | $ 200,000 | $ 800,000 | $ 8,100,000 |
Stock Options | Share-based Payment Arrangement, Tranche One | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting rights, percentage | 33.33% | ||
Stock Options | Share-based Payment Arrangement, Tranche Two | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting rights, percentage | 16.67% | ||
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 | 33.33% | ||
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 | 16.67% | ||
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 | 33.33% | ||
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 | 16.67% | ||
Performance-Based Restricted Stock Units (PRSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period (in years) | 3 years | ||
Award performance period | 3 years | ||
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 |
STOCK BASED COMPENSATION - PBRS
STOCK BASED COMPENSATION - PBRSs, RSUs, RSAs, and DSUs (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Performance-Based Restricted Stock Awards and Performance-Based Restricted Stock Units | |||
Number of Stock Units | |||
Balance at the beginning (in shares) | 233 | ||
Granted (in shares) | 279 | ||
Vested/released (in shares) | (99) | ||
Forfeited/expired (in shares) | (15) | ||
Balance at the end (in shares) | 398 | 233 | |
Weighted Average Grant Date Fair Value | |||
Balance at the beginning (in dollars per share) | $ 53.63 | ||
Granted (in dollars per share) | 38.59 | ||
Vested/released (in dollars per share) | 32.84 | ||
Forfeited/expired (in dollars per share) | 64.98 | ||
Balance at the end (in dollars per share) | $ 48.14 | $ 53.63 | |
Weighted average remaining contractual terms | 2 years | ||
Intrinsic value of awards vested | $ 9,300 | ||
Weighted average grant date fair value per share of awards granted (in dollars per share) | $ 38.59 | ||
Restricted Stock Units, Restricted Stock Awards, and Deferred Stock Units | |||
Number of Stock Units | |||
Balance at the beginning (in shares) | 812 | ||
Granted (in shares) | 1,009 | ||
Vested/released (in shares) | (383) | ||
Forfeited/expired (in shares) | (126) | ||
Balance at the end (in shares) | 1,312 | 812 | |
Weighted Average Grant Date Fair Value | |||
Balance at the beginning (in dollars per share) | $ 51.28 | ||
Granted (in dollars per share) | 38.81 | ||
Vested/released (in dollars per share) | 51.74 | ||
Forfeited/expired (in dollars per share) | 47.01 | ||
Balance at the end (in dollars per share) | $ 41.99 | $ 51.28 | |
Weighted average remaining contractual terms | 1 year 10 months 24 days | ||
Intrinsic value of awards vested | $ 41,100 | ||
Weighted average grant date fair value per share of awards granted (in dollars per share) | $ 38.81 | ||
PBRSs, RSUs, RSAs, and DSUs | |||
Weighted Average Grant Date Fair Value | |||
Granted (in dollars per share) | $ 38.74 | $ 52.42 | $ 79.06 |
Intrinsic value of awards vested | $ 16,485 | $ 12,434 | $ 19,346 |
Weighted average grant date fair value per share of awards granted (in dollars per share) | $ 38.74 | $ 52.42 | $ 79.06 |
Total grant date fair value of awards vested | $ 19,828 | $ 11,602 | $ 7,145 |
STOCK BASED COMPENSATION - Summ
STOCK BASED COMPENSATION - Summary of Stock Options (Details) - Stock Options - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 30, 2023 | Dec. 31, 2022 | |
Number of Options | ||
Options outstanding at beginning (in shares) | 642 | |
Options exercised (in shares) | (64) | |
Options outstanding at ending (in shares) | 578 | 642 |
Options exercisable (in shares) | 578 | |
Weighted Average Exercise Price | ||
Weighted average exercise price at beginning (in dollars per share) | $ 20.10 | |
Options exercised (in dollars per share) | 24.41 | |
Weighted average exercise price at ending (in dollars per share) | 19.62 | $ 20.10 |
Options exercisable (in dollars per share) | $ 19.62 | |
Weighted average remaining contractual term (Years) | 4 years 10 months 20 days | 5 years 11 months 4 days |
Weighted average remaining contractual term of options exercisable (years) | 4 years 10 months 20 days | |
Aggregate intrinsic value of options outstanding options | $ 18,550 | |
Aggregate intrinsic value of options exercisable options | $ 18,550 |
STOCKHOLDERS' EQUITY (Details)
STOCKHOLDERS' EQUITY (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||
Apr. 02, 2022 | Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | Feb. 01, 2024 | Feb. 27, 2022 | |
Stock Based Compensation | ||||||
Amount of common stock authorized for repurchase | $ 100,000,000 | |||||
Shares repurchased (in shares) | 1,676,551 | |||||
Cash paid for repurchase of common stock | $ 100,000,000 | $ 0 | $ 100,025,000 | $ 0 | ||
Treasury stock acquired, average cost per share (in dollars per share) | $ 59.66 | |||||
Subsequent Event | ||||||
Stock Based Compensation | ||||||
Amount of common stock authorized for repurchase | $ 300,000,000 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Future Commitments under Non-Cancelable Agreements (Details) $ in Thousands | Dec. 30, 2023 USD ($) |
Total future minimum lease payments and commitments under non-cancelable agreements | |
Total | $ 154,013 |
2024 | 73,867 |
2025 | 50,515 |
2026 | 21,900 |
2027 | 6,198 |
2028 | 1,533 |
Thereafter | $ 0 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Commitments and Contingencies | |||
Unrecognized tax benefits | $ 14,336 | $ 12,591 | $ 11,113 |
Reserve for product returns | 13,100 | 94,800 | |
Inventory write-down | 34,100 | $ 34,100 | |
Increase of estimated recall expense reserve | 3,600 | ||
Other liabilities | |||
Commitments and Contingencies | |||
Unrecognized tax benefits | $ 17,600 |
COMMITMENTS AND CONTINGENCIES_3
COMMITMENTS AND CONTINGENCIES - Summary of Reserve for the Estimated Product Recall Expenses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Reserve For Product Returns [Roll Forward] | |||
Beginning Balance | $ 94,807 | ||
Actual product refunds, replacements and recall-related costs | (55,470) | ||
Gift card issuances | (29,802) | ||
Reserve adjustment | 3,555 | ||
Ending Balance | 13,090 | $ 94,807 | |
Other Commitments [Line Items] | |||
Net sales | 1,658,713 | $ 1,595,222 | $ 1,410,989 |
Redeemed Gift Cards | |||
Other Commitments [Line Items] | |||
Net sales | 25,300 | ||
Unredeemed Gift Cards | |||
Other Commitments [Line Items] | |||
Net sales | $ 4,500 |
COMMITMENTS AND CONTINGENCIES_4
COMMITMENTS AND CONTINGENCIES - Summary of Recall Reserve Adjustment of Estimated Product Recall Expenses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Other Commitments [Line Items] | |||
Decrease to net sales | $ 1,658,713 | $ 1,595,222 | $ 1,410,989 |
Decrease (increase) to cost of goods sold | (715,527) | (831,821) | (594,876) |
Gross profit | 943,186 | 763,401 | 816,113 |
Decrease (increase) to selling, general and administrative expenses | (717,728) | (637,040) | (541,175) |
Income before income taxes | 225,946 | 116,177 | 268,410 |
Direct-to-consumer | |||
Other Commitments [Line Items] | |||
Decrease to net sales | 997,713 | 917,705 | 784,730 |
Wholesale | |||
Other Commitments [Line Items] | |||
Decrease to net sales | 661,000 | 677,517 | $ 626,259 |
Product Recall Adjustments | |||
Other Commitments [Line Items] | |||
Decrease to net sales | (21,700) | (38,415) | |
Decrease (increase) to cost of goods sold | 8,423 | (58,583) | |
Gross profit | (13,277) | (96,998) | |
Decrease (increase) to selling, general and administrative expenses | 11,382 | (31,910) | |
Income before income taxes | (1,895) | (128,908) | |
Product Recall Adjustments | Direct-to-consumer | |||
Other Commitments [Line Items] | |||
Decrease to net sales | 7,300 | 6,200 | |
Product Recall Adjustments | Wholesale | |||
Other Commitments [Line Items] | |||
Decrease to net sales | $ 14,400 | $ 32,200 |
INCOME TAXES - Schedule of Comp
INCOME TAXES - Schedule of Components of Income Before Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Components of income before income taxes | |||
Domestic | $ 215,490 | $ 107,578 | $ 262,182 |
Foreign | 10,456 | 8,599 | 6,228 |
Income before income taxes | $ 225,946 | $ 116,177 | $ 268,410 |
INCOME TAXES - Schedule of Co_2
INCOME TAXES - Schedule of Components of Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Current tax expense: | |||
U.S. federal | $ 21,139 | $ 43,967 | $ 37,963 |
State | 7,659 | 11,761 | 11,018 |
Foreign | 1,936 | 3,372 | 1,726 |
Total current tax expense | 30,734 | 59,100 | 50,707 |
Deferred tax expense (benefit): | |||
U.S. federal | 20,136 | (26,783) | 4,770 |
State | 4,230 | (4,499) | 540 |
Foreign | 961 | (1,334) | (209) |
Total deferred tax expense (benefit) | 25,327 | (32,616) | 5,101 |
Total income tax expense | $ 56,061 | $ 26,484 | $ 55,808 |
INCOME TAXES - Schedule of Effe
INCOME TAXES - Schedule of Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Income Tax Disclosure [Abstract] | |||
Income taxes at the statutory rate | $ 47,449 | $ 24,397 | $ 56,366 |
Increase (decrease) resulting from: | |||
State income taxes, net of federal tax effect | 8,532 | 4,454 | 8,562 |
Foreign-derived intangible income | (3,192) | (2,878) | (3,056) |
Research and development tax credits | (681) | (742) | (630) |
Tax expense (benefit) related to stock-based compensation | 713 | (472) | (7,259) |
Other | 3,240 | 1,725 | 1,825 |
Total income tax expense | $ 56,061 | $ 26,484 | $ 55,808 |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Income Tax Disclosure [Abstract] | |||
Corporate income tax rate | 21% | 21% | 21% |
Unremitted earnings of foreign subsidiaries | $ 37,200 | ||
Texas research and development tax credit carryforwards | 2,100 | ||
Unrecognized tax benefits | 14,336 | $ 12,591 | $ 11,113 |
Liability of interest and penalties related to unrecognized tax benefits | $ 3,300 |
INCOME TAXES - Schedule of Defe
INCOME TAXES - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 30, 2023 | Dec. 31, 2022 |
Deferred tax assets: | ||
Accrued liabilities | $ 7,688 | $ 24,339 |
Allowances and other reserves | 3,450 | 3,510 |
Inventory | 2,974 | 13,022 |
Stock-based compensation | 5,857 | 5,410 |
Operating lease liabilities | 22,280 | 16,817 |
Capitalized research and development expenditures | 9,276 | 7,921 |
Other | 2,647 | 4,520 |
Total deferred tax assets | 54,172 | 75,539 |
Deferred tax liabilities: | ||
Operating lease assets | (19,047) | (13,828) |
Prepaid expenses | (1,279) | (1,286) |
Property and equipment | (11,469) | (15,734) |
Intangible assets | (24,645) | (21,346) |
Other | (60) | (112) |
Total deferred tax liabilities | (56,500) | (52,306) |
Net deferred tax liabilities | (2,328) | |
Net deferred tax liabilities | 23,233 | |
Deferred income taxes | 1,692 | 23,233 |
Other liabilities | $ (4,020) | $ 0 |
INCOME TAXES - Schedule of Unre
INCOME TAXES - Schedule of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 30, 2023 | Dec. 31, 2022 | |
Unrecognized tax benefits (excluding interest and penalties) | ||
Balance, beginning of year | $ 12,591 | $ 11,113 |
Gross increases related to current year tax positions | 1,318 | 2,270 |
Gross increases related to prior year tax positions | 1,060 | 36 |
Gross decreases related to prior year tax positions | (141) | (68) |
Decreases as a result of settlements during the current period | 0 | (260) |
Lapse of statute of limitations | (492) | (500) |
Balance, end of year | $ 14,336 | $ 12,591 |
EARNINGS PER SHARE - Schedule o
EARNINGS PER SHARE - Schedule of Reconciliation of Shares for Basic and Diluted Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Reconciliation of shares for basic and diluted net income per share | |||
Net income | $ 169,885 | $ 89,693 | $ 212,602 |
Weighted Average Number of Shares Outstanding Reconciliation [Abstract] | |||
Weighted average common shares outstanding - basic (in shares) | 86,717 | 86,521 | 87,425 |
Effective of dilutive securities (in shares) | 686 | 674 | 1,241 |
Weighted average common shares outstanding - diluted (in shares) | 87,403 | 87,195 | 88,666 |
Earnings per share | |||
Basic (in dollars per share) | $ 1.96 | $ 1.04 | $ 2.43 |
Diluted (in dollars per share) | $ 1.94 | $ 1.03 | $ 2.40 |
EARNINGS PER SHARE - Narrative
EARNINGS PER SHARE - Narrative (Details) - shares shares in Millions | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Stock Options | |||
Antidilutive Securities | |||
Shares excluded from computation of diluted earnings per share (less than for 2021) (in shares) | 0.2 | 0.5 | 0.1 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2024 | Feb. 01, 2024 | Feb. 27, 2022 | |
Subsequent Events | |||
Stock repurchase program, authorized amount | $ 100,000,000 | ||
Subsequent Event | |||
Subsequent Events | |||
Stock repurchase program, authorized amount | $ 300,000,000 | ||
Subsequent Event | Butter Pat Industries, LLC | |||
Subsequent Events | |||
Total purchase consideration | $ 48,500,000 |