Cover
Cover - shares | 9 Months Ended | |
Sep. 30, 2022 | Nov. 07, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2022 | |
Document Transition Report | false | |
Entity File Number | 001-40694 | |
Entity Registrant Name | Traeger, Inc | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 82-2739741 | |
Entity Address, Address Line One | 1215 E Wilmington Ave | |
Entity Address, Address Line Two | Suite 200 | |
Entity Address, City or Town | Salt Lake City | |
Entity Address, State or Province | UT | |
Entity Address, Postal Zip Code | 84106 | |
City Area Code | 801 | |
Local Phone Number | 701-7180 | |
Title of 12(b) Security | Common stock, $0.0001 par value | |
Trading Symbol | COOK | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 122,616,477 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Central Index Key | 0001857853 | |
Current Fiscal Year End Date | --12-31 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Current Assets | ||
Cash and cash equivalents | $ 8,349 | $ 16,740 |
Accounts receivable, net | 34,370 | 92,927 |
Inventories | 161,769 | 145,038 |
Prepaid expenses and other current assets | 29,327 | 15,036 |
Total current assets | 233,815 | 269,741 |
Property, plant, and equipment, net | 75,135 | 55,477 |
Goodwill | 74,725 | 297,047 |
Intangible assets, net | 523,457 | 555,151 |
Other non-current assets | 19,075 | 3,608 |
Total assets | 926,207 | 1,181,024 |
Current Liabilities | ||
Accounts payable | 16,494 | 42,694 |
Accrued expenses | 68,704 | 69,773 |
Line of credit | 13,451 | 41,138 |
Current portion of capital leases | 420 | |
Current portion of capital leases | 457 | |
Current portion of contingent consideration | 7,570 | 12,200 |
Other current liabilities | 3,129 | 0 |
Total current liabilities | 109,805 | 166,225 |
Notes payable | 430,898 | 379,395 |
Capital leases, net of current portion | 677 | |
Capital leases, net of current portion | 1,058 | |
Contingent consideration, net of current portion | 8,950 | 13,100 |
Deferred tax liability | 11,692 | 11,673 |
Other non-current liabilities | 437 | 434 |
Total liabilities | 562,840 | 571,504 |
Commitments and contingencies—See Note 12 | ||
Stockholders' equity: | ||
Preferred stock, $0.0001 par value; 25,000,000 shares authorized and no shares issued or outstanding as of September 30, 2022 and December 31, 2021 | 0 | 0 |
Common stock value | 12 | 12 |
Additional paid-in capital | 875,059 | 794,413 |
Accumulated deficit | (536,169) | (184,819) |
Accumulated other comprehensive income (loss) | 24,465 | (86) |
Total stockholders' equity | 363,367 | 609,520 |
Total liabilities and stockholders' equity | $ 926,207 | $ 1,181,024 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) (Parentheticals) - $ / shares | Sep. 30, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Preferred stock par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Preferred stock authorized (in shares) | 25,000,000 | 25,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock authorized (in shares) | 1,000,000,000 | 1,000,000,000 |
Common stock issued (in shares) | 122,587,393 | 117,547,916 |
Common stock outstanding (in shares) | 122,587,393 | 117,547,916 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Income Statement [Abstract] | ||||
Revenue | $ 93,788,000 | $ 162,018,000 | $ 517,768,000 | $ 610,613,000 |
Cost of revenue | 67,810,000 | 107,696,000 | 334,719,000 | 372,353,000 |
Gross profit | 25,978,000 | 54,322,000 | 183,049,000 | 238,260,000 |
Operating expenses: | ||||
Sales and marketing | 25,496,000 | 48,519,000 | 102,401,000 | 126,639,000 |
General and administrative | 70,882,000 | 75,824,000 | 142,637,000 | 114,182,000 |
Amortization of intangible assets | 8,889,000 | 8,889,000 | 26,666,000 | 25,491,000 |
Change in fair value of contingent consideration | 1,820,000 | 2,900,000 | 3,775,000 | 2,900,000 |
Goodwill impairment | 110,837,000 | 0 | 222,322,000 | 0 |
Total costs recorded in restructuring costs | 8,036,000 | 0 | 8,036,000 | 0 |
Total operating expense | 225,960,000 | 136,132,000 | 505,837,000 | 269,212,000 |
Loss from operations | (199,982,000) | (81,810,000) | (322,788,000) | (30,952,000) |
Other income (expense): | ||||
Interest expense | (7,337,000) | (5,704,000) | (20,238,000) | (21,393,000) |
Loss on extinguishment of debt | 0 | (3,228,000) | 0 | (5,185,000) |
Other income (expense), net | (3,545,000) | (426,000) | (8,351,000) | 1,112,000 |
Total other expense | (10,882,000) | (9,358,000) | (28,589,000) | (25,466,000) |
Loss before benefit for income taxes | (210,864,000) | (91,168,000) | (351,377,000) | (56,418,000) |
Benefit for income taxes | (225,000) | (1,983,000) | (27,000) | (1,255,000) |
Net loss | $ (210,639,000) | $ (89,185,000) | $ (351,350,000) | $ (55,163,000) |
Net income (loss) per share - basic (in dollars per share) | $ (1.76) | $ (0.78) | $ (2.96) | $ (0.50) |
Net income (loss) per share - diluted (in dollars per share) | $ (1.76) | $ (0.78) | $ (2.96) | $ (0.50) |
Weighted average common shares outstanding - basic (in shares) | 119,924,371 | 114,382,955 | 118,682,379 | 110,631,304 |
Weighted average common shares outstanding - diluted (in shares) | 119,924,371 | 114,382,955 | 118,682,379 | 110,631,304 |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustments | $ (67,000) | $ 11,000 | $ (58,000) | $ 11,000 |
Change in cash flow hedge | 12,285,000 | 0 | 24,609,000 | 0 |
Total other comprehensive income | 12,218,000 | 11,000 | 24,551,000 | 11,000 |
Comprehensive loss | $ (198,421,000) | $ (89,174,000) | $ (326,799,000) | $ (55,152,000) |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN MEMBER'S AND STOCKHOLDERS' EQUITY (unaudited) - USD ($) $ in Thousands | Total | Common Units | Common Stock | Members Capital | Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Income (Loss) |
Beginning balance (in shares) at Dec. 31, 2020 | 108,724,422 | ||||||
Beginning balance at Dec. 31, 2020 | $ 475,040 | $ 0 | $ 571,038 | $ 0 | $ (95,998) | $ 0 | |
Beginning balance (in shares) at Dec. 31, 2020 | 0 | ||||||
Beginning balance at Dec. 31, 2020 | $ 0 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Effect of reorganization (in shares) | (108,724,422) | 108,724,387 | |||||
Effect of reorganization transaction | 0 | $ 11 | (571,038) | 571,027 | |||
Issuance of common shares in IPO, net of issuance costs (in shares) | 8,823,529 | ||||||
Issuance of common shares in IPO, net of issuance costs | 142,544 | $ 1 | 142,544 | ||||
Equity-based compensation | 61,711 | 61,711 | |||||
Net income (loss) | (55,163) | (55,163) | |||||
Foreign currency translation adjustments | 11 | 11 | |||||
Change in cash flow hedge | 0 | ||||||
Ending balance (in shares) at Sep. 30, 2021 | 117,547,916 | ||||||
Ending balance at Sep. 30, 2021 | $ 12 | ||||||
Ending balance (in shares) at Sep. 30, 2021 | 0 | ||||||
Ending balance at Sep. 30, 2021 | 624,144 | $ 0 | 0 | 775,282 | (151,161) | 11 | |
Beginning balance (in shares) at Jun. 30, 2021 | 108,724,422 | ||||||
Beginning balance at Jun. 30, 2021 | 511,563 | $ 0 | 573,539 | 0 | (61,976) | 0 | |
Beginning balance (in shares) at Jun. 30, 2021 | 0 | ||||||
Beginning balance at Jun. 30, 2021 | $ 0 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Effect of reorganization (in shares) | (108,724,422) | 108,724,387 | |||||
Effect of reorganization transaction | 0 | $ 11 | (573,539) | 573,528 | |||
Issuance of common shares in IPO, net of issuance costs (in shares) | 8,823,529 | ||||||
Issuance of common shares in IPO, net of issuance costs | 142,544 | $ 1 | 142,544 | ||||
Equity-based compensation | 59,210 | 59,210 | |||||
Net income (loss) | (89,185) | (89,185) | |||||
Foreign currency translation adjustments | 11 | 11 | |||||
Change in cash flow hedge | 0 | ||||||
Ending balance (in shares) at Sep. 30, 2021 | 117,547,916 | ||||||
Ending balance at Sep. 30, 2021 | $ 12 | ||||||
Ending balance (in shares) at Sep. 30, 2021 | 0 | ||||||
Ending balance at Sep. 30, 2021 | 624,144 | $ 0 | 0 | 775,282 | (151,161) | 11 | |
Beginning balance (in shares) at Dec. 31, 2021 | 0 | ||||||
Beginning balance at Dec. 31, 2021 | $ 0 | 0 | |||||
Beginning balance (in shares) at Dec. 31, 2021 | 117,547,916 | ||||||
Beginning balance at Dec. 31, 2021 | 609,520 | $ 12 | 794,413 | (184,819) | (86) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Issuance of common stock under stock plan (in shares) | 5,045,003 | ||||||
Issuance of common shares in IPO, net of issuance costs | 0 | $ 0 | |||||
Shares withheld related to net share settlement (in shares) | (5,526) | ||||||
Shares withheld related to net share settlement | (41) | (41) | |||||
Equity-based compensation | 80,687 | 80,687 | |||||
Net income (loss) | (351,350) | (351,350) | |||||
Foreign currency translation adjustments | (58) | (58) | |||||
Change in cash flow hedge | 24,609 | 24,609 | |||||
Ending balance (in shares) at Sep. 30, 2022 | 122,587,393 | ||||||
Ending balance at Sep. 30, 2022 | 363,367 | $ 12 | 875,059 | (536,169) | 24,465 | ||
Ending balance (in shares) at Sep. 30, 2022 | 0 | ||||||
Ending balance at Sep. 30, 2022 | 363,367 | $ 0 | 0 | 875,059 | (536,169) | 24,465 | |
Beginning balance (in shares) at Jun. 30, 2022 | 0 | ||||||
Beginning balance at Jun. 30, 2022 | 508,535 | $ 0 | 0 | 821,806 | (325,530) | 12,247 | |
Beginning balance (in shares) at Jun. 30, 2022 | 118,211,775 | ||||||
Beginning balance at Jun. 30, 2022 | $ 12 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Issuance of common stock under stock plan (in shares) | 4,375,618 | ||||||
Equity-based compensation | 53,253 | 53,253 | |||||
Net income (loss) | (210,639) | (210,639) | |||||
Foreign currency translation adjustments | (67) | (67) | |||||
Change in cash flow hedge | 12,285 | 12,285 | |||||
Ending balance (in shares) at Sep. 30, 2022 | 122,587,393 | ||||||
Ending balance at Sep. 30, 2022 | 363,367 | $ 12 | 875,059 | (536,169) | 24,465 | ||
Ending balance (in shares) at Sep. 30, 2022 | 0 | ||||||
Ending balance at Sep. 30, 2022 | $ 363,367 | $ 0 | $ 0 | $ 875,059 | $ (536,169) | $ 24,465 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income (loss) | $ (351,350) | $ (55,163) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation of property, plant and equipment | 9,703 | 6,647 |
Amortization of intangible assets | 32,025 | 27,622 |
Amortization of deferred financing costs | 1,468 | 1,871 |
Loss on disposal of property, plant and equipment | 707 | 104 |
Loss on extinguishment of debt | 0 | 5,185 |
Equity-based compensation expense | 80,687 | 61,711 |
Bad debt expense | (317) | 634 |
Unrealized loss on foreign currency contracts | 4,567 | 4,800 |
Change in fair value of contingent consideration | 495 | 2,900 |
Goodwill impairment | 222,322 | 0 |
Total costs recorded in restructuring costs | 1,419 | 0 |
Change in operating assets and liabilities: | ||
Accounts receivable | 58,874 | (19,192) |
Inventories | (16,731) | (40,331) |
Prepaid expenses and other current assets | (7,118) | (7,479) |
Other non-current assets | 64 | (219) |
Accounts payable and accrued expenses | (42,838) | 10,031 |
Other non-current liabilities | 22 | 9 |
Net cash used in operating activities | (6,001) | (870) |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Purchase of property, plant, and equipment | (15,128) | (17,986) |
Capitalization of patent costs | (403) | (424) |
Cash paid, net of cash acquired | 0 | (57,041) |
Net cash used in investing activities | (15,531) | (75,451) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Proceeds from line of credit | 166,978 | 84,000 |
Repayments on line of credit | (156,666) | (65,000) |
Proceeds from long-term debt | 12,500 | 510,000 |
Repayments of long-term debt | 0 | (579,915) |
Payment of deferred financing costs | 0 | (8,478) |
Principal payments on capital lease obligations | (355) | (283) |
Proceeds from initial public offering, net of issuance costs | 0 | 142,544 |
Payment of acquisition related contingent consideration | (9,275) | 0 |
Taxes paid related to net share settlement of equity awards | (41) | 0 |
Net cash provided by financing activities | 13,141 | 82,868 |
Net increase (decrease) in cash and cash equivalents | (8,391) | 6,547 |
Cash and cash equivalents at beginning of period | 16,740 | 11,556 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | 8,349 | 18,103 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | ||
Cash paid during the period for interest | 18,403 | 18,974 |
Cash paid for income taxes | 2,250 | 1,665 |
NON-CASH FINANCING AND INVESTING ACTIVITIES | ||
Equipment purchased under capital leases | 952 | 534 |
Property, plant, and equipment included in accounts payable and accrued expenses | $ 15,512 | $ 3,395 |
DESCRIPTION OF BUSINESS AND BAS
DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION | 9 Months Ended |
Sep. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION | DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION Nature of Operations – Traeger, Inc. and its wholly owned Subsidiaries (collectively "Traeger" or the "Company") design, source, sell, and support wood pellet fueled barbecue grills sold to retailers, distributors, and direct to consumers. The Company produces and sells the pellets used to fire the grills and also sells Traeger-branded rubs, spices and sauces, as well as grill accessories (including covers, barbecue tools, trays, liners, MEATER smart thermometers and merchandise). A significant portion of the Company’s sales are generated from customers throughout the United States ("U.S."), and the Company continues to develop distribution in Canada and Europe. The Company’s headquarters are in Salt Lake City, Utah. In July 2021, the Company effected a forward split of its 10 common units into 108,724,422 common units. All unit, per unit and related information presented in the accompanying consolidated financial statements have been retroactively adjusted, where applicable, to reflect the impact of the split of common units. Immediately prior to the effectiveness of the registration statement pertaining to the Company’s initial public offering ("IPO") on July 28, 2021, the Company converted from a Delaware limited liability company into a Delaware corporation, and changed its name from TGPX Holdings I LLC to Traeger, Inc. Pursuant to the statutory corporate conversion (the "Corporate Conversion"), all of the outstanding limited liability company interests of TGPX Holdings I LLC were converted into shares of common stock of Traeger, Inc., and TGP Holdings LP (the "Partnership") became the holder of such shares of common stock of Traeger, Inc. In connection with the Corporate Conversion, the Partnership liquidated and distributed these shares of common stock to the holders of partnership interests in the Partnership in direct proportion to their respective interests in the Partnership based upon the value of Traeger, Inc. at the time of the IPO, with a value implied by the initial public offering price of the shares of common stock sold in the IPO. Based on the IPO price of $18.00 per share, following the Partnership’s liquidation and distribution, including the elimination of any fractional shares resulting therefrom, and the Corporate Conversion, the Company had 108,724,387 shares of common stock outstanding immediately prior to the IPO. Basis of Presentation and Principles of Consolidation – The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"). The accompanying unaudited condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. The balance sheet as of December 31, 2021 has been derived from the audited consolidated financial statements at that date but does not include all information and footnotes required by U.S. GAAP for complete financial statements. These unaudited condensed consolidated financial statements should be read in conjunction with the Company's audited consolidated financial statements for the year ended December 31, 2021 included in the Company’s Annual Report on Form 10-K , filed with the Securities and Exchange Commission on March 29, 2022 (the "Annual Report on Form 10-K"). In the opinion of management, the accompanying unaudited condensed consolidated financial statements contain all normal and recurring adjustments necessary to fairly present the consolidated financial position, results of operations and cash flows for the interim periods presented. Operating results for the three and nine months ended September 30, 2022 are not necessarily indicative of results that may be expected for any other interim period or for the year ended December 31, 2022. The accompanying unaudited condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Use of Estimates – The preparation of these financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The most significant estimates and the assumptions made by management that present the greatest amount of estimation uncertainty include business combination accounting for the fair value of assets acquired, liabilities assumed, and contingent considerations, customer credits and returns, obsolete inventory reserves, valuation and impairment of intangible assets including goodwill, unrealized positions on derivatives and reserves for warranty. Actual results could differ from these estimates. Concentrations – Financial instruments that potentially subject the Company to concentrations of credit risk consist of cash in banks, trade accounts receivable, foreign currency contracts, and business activity with certain third-party contract manufacturers of our products. Credit is extended to customers based on an evaluation of the customer’s financial condition and collateral is not generally required in the Company’s sales transactions. Four customers (each large U.S. retailers) that accounted for a significant portion of net sales are as follows: Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Customer A 14 % 11 % 15 % 18 % Customer B 5 % 16 % 18 % 19 % Customer C 17 % 18 % 17 % 17 % Customer D 6 % 11 % 5 % 6 % As of September 30, 2022, customers A, B, C, and D accounted for a significant portion of trade accounts receivable of 23%, 12%, 11%, and 13% compared to 45%, 13%, 13%, and 5% as of December 31, 2021. Concentrations of credit risk exist to the extent credit terms are extended with these four large customers. A business failure on the part of any one of the four customers could result in a material amount of exposure to the Company. No other single customer accounted for greater than 10% of the Company’s net sales for the three and nine months ended September 30, 2022 and 2021, respectively. Additionally, no other single customer accounted for greater than 10% of trade accounts receivable as of September 30, 2022 or December 31, 2021. The Company’s sales to dealers and distributors located outside the United States are generally denominated in U.S. dollars. The Company does have sales to certain dealers located in the European Union, the United Kingdom and Canada which are denominated in Euros, British Pounds and Canadian Dollars, respectively. The Company relies on a limited number of suppliers for its contract manufacturing of grills and accessories. A significant disruption in the operations of certain of these manufacturers, or in the transportation of parts and accessories would impact the production of the Company’s products for a substantial period of time, which could have a material adverse effect on the Company’s business, financial condition and results of operations. Goodwill – Goodwill represents the excess of consideration transferred over the fair value of tangible and identifiable intangible net assets acquired and the liabilities assumed in a business combination. Substantially all of the Company’s goodwill was recognized in the purchase price allocation when the Company was acquired in 2017, with smaller incremental amounts recognized in subsequent business combinations. Goodwill is not amortized, but is tested for impairment at the reporting unit level annually or more frequently if events or changes in circumstances indicate that it is more likely than not that the fair value of the reporting unit is less than its carrying amount. In conducting the impairment test, the Company first reviews qualitative factors to determine whether it is more likely than not that the fair value of the reporting unit is less than its carrying amount. We currently operate as a single reporting unit under the guidance in Topic 350, Intangibles - Goodwill and Other. When testing goodwill for impairment, the Company has the option of first performing a qualitative assessment to determine whether it is more likely than not that the fair value of the reporting unit is less than its carrying amount. If we elect to bypass the qualitative assessment, or if a qualitative assessment indicates it is more likely than not that carrying value exceeds its fair value, we perform a quantitative goodwill impairment test. Under the quantitative goodwill impairment test, if our reporting unit’s carrying amount exceeds its fair value, we will record an impairment charge based on that difference. To determine reporting unit fair value as part of the quantitative test, we use a weighting of fair values derived from the income approach and the market approach. Under the income approach, the Company projects the future cash flows and discount these cash flows to reflect their relative risk. The cash flows used are consistent with those the Company uses in its internal planning, which reflects actual business trends experienced and our long-term business strategy. Under the market approach, we use the guideline company method to develop valuation multiples and compare our reporting unit to similar publicly traded companies. In order to further validate the reasonableness of fair value as determined by the income and market approaches described above, a reconciliation to market capitalization is then performed by estimating a reasonable control premium and other market factors. Future changes in the judgments, assumptions and estimates that are used in the impairment testing for goodwill could result in significantly different estimates of fair value. As part of our annual goodwill impairment tests as of December 31, 2021, no impairment was recorded as the events or changes in circumstances indicated that it was not more likely than not that the fair value of the single reporting unit is less than its carrying amount. In addition to the annual goodwill impairment test, the Company performed an interim goodwill impairment test and concluded that the carrying value of the single reporting unit exceeded its fair value and recorded a $110.8 million and $222.3 million non-cash goodwill impairment charge for the three and nine months ended September 30, 2022, respectively. For details associated with the Company's interim goodwill impairment testing, see Note 8 – Goodwill . Recently Issued Accounting Standards In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) and the FASB has also certain subsequent related ASUs that supplement and amend Topic 842. The guidance in Topic 842 replaces the leasing guidance in Topic 840, Leases. Under the new guidance, lessees are required to recognize right of use assets related to the leases and lease liabilities on the balance sheet. For leases with terms of 12 months or less, the lessee is permitted to make an accounting policy election by class of underlying asset not to recognize lease assets and lease liabilities. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. The new standard is effective for fiscal years beginning after December 15, 2021 and for interim periods within fiscal years beginning after December 15, 2022. The Company has adopted this guidance effective January 1, 2022 and will present the impact of the new guidance in its annual statements as of December 31, 2022 and its interim statements thereafter. Management is currently in the process of evaluating its existing portfolio of operating leases for right of use assets and lease liabilities that would need be recognized upon implementation and the impact of this guidance on its consolidated financial statements and related disclosures. There have been no material changes to the implementation or evaluation of “Recently Issued Accounting Standards” as described in the Company's annual audited financial statements for the period ended December 31, 2021. |
REVENUE
REVENUE | 9 Months Ended |
Sep. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE | REVENUE The following table disaggregates revenue by product category, geography, and sales channel for the periods indicated (in thousands): Three Months Ended September 30, Nine Months Ended September 30, Revenue by product category 2022 2021 2022 2021 Grills $ 38,994 $ 108,799 $ 307,105 $ 443,495 Consumables 25,151 28,029 106,899 110,067 Accessories 29,644 25,190 103,764 57,051 Total revenue $ 93,788 $ 162,018 $ 517,768 $ 610,613 Three Months Ended September 30, Nine Months Ended September 30, Revenue by geography 2022 2021 2022 2021 North America $ 82,638 $ 151,862 $ 477,338 $ 581,805 Rest of world 11,150 10,156 40,430 28,808 Total revenue $ 93,788 $ 162,018 $ 517,768 $ 610,613 Three Months Ended September 30, Nine Months Ended September 30, Revenue by sales channel 2022 2021 2022 2021 Retail $ 68,060 $ 138,376 $ 433,001 $ 564,133 Direct to consumer 25,728 23,642 84,767 46,480 Total revenue $ 93,788 $ 162,018 $ 517,768 $ 610,613 |
BUSINESS COMBINATIONS
BUSINESS COMBINATIONS | 9 Months Ended |
Sep. 30, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
BUSINESS COMBINATIONS | BUSINESS COMBINATION On July 1, 2021 (the "Acquisition Date"), pursuant to a share purchase agreement (the "Share Purchase Agreement"), the Company acquired all outstanding shares of Apption Labs Limited and its subsidiaries (collectively "Apption Labs"), a technology company that specializes in the manufacture and design of innovative hardware and software related to small kitchen appliances, including the MEATER smart thermometer and related technology. The total purchase consideration was approximately $78.3 million, net of cash acquired, which is comprised of cash paid, contingent consideration, net working capital adjustments, and escrow consideration. The acquisition of Apption Labs will help facilitate the Company's entry into the adjacent accessories markets with a highly complementary product that the Company believes will bolster our existing portfolio, create efficiencies for consumers and expose the Company to new growth channels. The purchase consideration includes contingent cash consideration payable to the sellers based on achievement of certain revenue thresholds for fiscal years 2021 and 2022 as detailed in the Share Purchase Agreement. The acquisition date fair value of contingent consideration obligation of $21.5 million is estimated based on the probability assessments with respect to the likelihood of achieving the performance targets and discount rates consistent with the level of risk of achievement. In April 2022, the Company paid $12.6 million associated with the contingent cash consideration to the sellers based on achievement of certain revenue thresholds for fiscal year 2021. The range of the remaining undiscounted amounts the Company may be required to pay under the contingent consideration arrangement is between $0 and $27.4 million for fiscal year 2022. See Note 10 – Fair Value Measurements for subsequent measurements of this contingent liability as of September 30, 2022. On November 10, 2022, the Company entered into Amendment No. 2 to the Share Purchase Agreement to extend the earn out period through the end of 2023. This amendment also modified the contingent consideration calculation associated with the achievement of certain revenue, EBITDA, and successful product launch thresholds. The Company recognized $1.8 million of acquisition-related costs during fiscal year 2021 that were recorded in general and administrative expense in the condensed consolidated statements of operations and comprehensive loss. The operating results of Apption Labs have been included in the Company's condensed consolidated statements of operations and comprehensive loss since the acquisition date. Actual and pro forma revenue and results of operations for the acquisition have not been presented because they do not have a material impact to the consolidated revenue and results of operations, either individually or in the aggregate. In July 2022, the Company completed the determination and allocation of the consideration transferred and concluded no adjustments to the provisional amounts recognized in the Company's initial accounting for the acquisition. The acquisition was accounted for under the acquisition method in accordance with ASC 805. The following table summarizes the fair values of the consideration transferred, assets acquired, and liabilities assumed as of the Acquisition Date (in thousands): Consideration Transferred Fair Value Cash paid, net of cash acquired $ 36,957 Contingent consideration 21,500 Other closing consideration 19,890 Total purchase consideration, net of cash acquired $ 78,347 Assets acquired Accounts receivable, net $ 2,190 Inventory, net 5,431 Prepaid and other current assets 293 Property and equipment 1,357 Intangible Assets 53,100 Goodwill 40,200 Total assets acquired 102,571 Liabilities assumed Accounts payable and accrued liabilities 8,474 Deferred tax liability 12,646 Other current liabilities 344 Other non-current liabilities 2,760 Total liabilities assumed 24,224 Total net assets, net of cash acquired $ 78,347 The excess purchase consideration over the fair value of net tangible and identifiable intangible assets acquired was recorded as goodwill, none of which is expected to be deductible for tax purposes. The goodwill generated from these transactions is attributable to the expected synergies to be achieved upon consummation of the business combinations and the assembled workforce values. The following table details the identifiable intangible assets acquired at their fair value and their corresponding useful lives at the Acquisition Date (amounts in thousands): Identifiable Intangible Assets Fair Value Estimated Useful Life (in years) Technology $ 32,300 5 Trademarks 17,700 10 Distributor relationships 2,400 8 Non-compete arrangements 700 2.5 $ 53,100 Identifiable intangible assets acquired primarily include technology, trademarks, distributor relationship, and non-compete arrangements. The fair value of technology acquired in the acquisition was determined using the excess earnings model, the trademarks acquired was determined using a relief from royalty model, the distributor relationships acquired was determined using the distributor model, and the non-compete arrangements acquired were determined using the with and without model. These models utilize certain unobservable inputs, including discounted cash flows, historical and projected financial information, royalty rates, distributor attrition rates, and technology obsolescence rates, classified as Level 3 measurements as defined by Fair Value Measurement (Topic 820). Amortization of technology is recorded in cost of revenue and amortization of trademarks, distributor relationships and non-compete arrangements are recorded in amortization of intangible assets in the condensed consolidated statements of operations and comprehensive loss. |
ACCOUNTS RECEIVABLES, NET
ACCOUNTS RECEIVABLES, NET | 9 Months Ended |
Sep. 30, 2022 | |
Receivables [Abstract] | |
ACCOUNTS RECEIVABLES, NET | ACCOUNTS RECEIVABLES, NETAccounts receivable consists of the following (in thousands): September 30, December 31, Trade accounts receivable $ 49,473 $ 108,620 Allowance for doubtful accounts (723) (1,090) Reserve for returns, discounts and allowances (14,380) (14,603) Total accounts receivable, net $ 34,370 $ 92,927 |
INVENTORIES
INVENTORIES | 9 Months Ended |
Sep. 30, 2022 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | INVENTORIES Inventories consisted of the following (in thousands): September 30, December 31, Raw materials $ 2,229 $ 3,106 Work in process 11,743 11,523 Finished goods 147,797 130,409 Inventories $ 161,769 $ 145,038 Included within inventories are adjustments of $0.3 million and $0.7 million at September 30, 2022 and December 31, 2021, respectively, to record inventory to net realizable value. |
ACCRUED EXPENSES
ACCRUED EXPENSES | 9 Months Ended |
Sep. 30, 2022 | |
Payables and Accruals [Abstract] | |
ACCRUED EXPENSES | ACCRUED EXPENSES Accrued expenses consisted of the following (in thousands): September 30, December 31, Accrual for inventories in-transit $ 4,394 $ 28,536 Warranty accrual 7,285 8,326 Accrued compensation and bonus 4,458 7,025 Build-to-suit lease liability 23,456 4,273 Other 29,111 21,613 Accrued expenses $ 68,704 $ 69,773 The changes in the Company’s warranty accrual, included in accrued expenses on the accompanying condensed consolidated balance sheets, were as follows for the fiscal periods indicated (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Warranty accrual, beginning of period $ 8,647 $ 8,094 $ 8,326 $ 6,728 Warranty claims (2,239) (2,544) (6,327) (6,224) Warranty costs accrued 877 2,886 5,286 7,929 Warranty accrual, end of period $ 7,285 $ 8,436 $ 7,285 $ 8,436 |
GOODWILL
GOODWILL | 9 Months Ended |
Sep. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL | GOODWILLAs a result of sustained decreases in the Company’s publicly quoted share price, market capitalization and lower than expected operating results, the Company conducted an analysis of its goodwill and long-lived assets. As a result of this analysis, the Company concluded there were no events or changes in circumstances which indicated that the carrying value of the long-lived assets may not be recoverable. However, the Company did identify indicators of goodwill impairment for the single reporting unit and concluded that a triggering event had occurred which required an interim goodwill impairment assessment. The primary indicators of impairment remain to be the adverse impacts from the macroeconomic conditions such as inflationary pressures and supply chain disruption, unfavorable demand, and the sustained decreases in the Company’s publicly quoted share price and market capitalization. As a result of these factors, the operating results for the three and nine months ended September 30, 2022 were lower than expected. Consistent with the prior goodwill impairment testing, the Company estimated the reporting unit's fair value under an income and market approach using a discounted cash flow model and guideline company model, respectively. The income approach used the reporting unit's projections of estimated operating results and cash flows that were discounted using a market participant discount rate based on the weighted-average cost of capital. The main assumptions supporting the cash flow projections include, but are not limited to, revenue growth, margins, discount rate, and terminal growth rate. The financial projections reflect management's best estimate of economic and market conditions over the projected period, including forecasted revenue growth, margins, capital expenditures, depreciation, and amortization. Under the market approach, the Company uses the guideline company method to develop valuation multiples and compare the single reporting unit to similar publicly traded companies. As a result of the interim quantitative impairment assessment, the carrying value of the single reporting unit exceeded its fair value, and the Company recorded $110.8 million and $222.3 million of non-cash goodwill impairment charge for the three and nine months ended September 30, 2022, respectively. |
DERIVATIVES
DERIVATIVES | 9 Months Ended |
Sep. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVES | DERIVATIVES Interest Rate Swap On February 25, 2022, the Company entered into a floating-to-fixed interest rate swap agreement to hedge or otherwise protect against the Eurocurrency Base Rate (as defined in the First Lien Credit Agreement) fluctuations on a portion of the Company's variable rate debt. The agreement provides for a notional amount of $379.2 million, fixed rate of 2.08% and a maturity date of February 28, 2026. This agreement was designated as a cash flow hedge on the exposure of the variability of future cash flows subject to the variable monthly interest rates on $379.2 million of the term loan portion under the First Lien Term Loan Facility (as defined below). The Company assessed hedge effectiveness at the time of entering into the agreement, utilizing a regression analysis, and determined the hedge is expected to be highly effective. As a cash flow hedge, the interest rate swap is revalued at current market rates, with the changes in valuation being recorded in other comprehensive income within the condensed consolidated statements of operations and comprehensive loss, to the extent that the hedge is effective. The gains or losses on the interest rate swaps are recorded in accumulated other comprehensive loss within the condensed consolidated balance sheets and are reclassified into interest expense in the periods in which the interest rate swap affects earnings. The cash flows related to interest settlements and changes in valuation are classified consistent with the treatment of the hedged monthly interest payments generally as operating activities on the condensed consolidated statement of cash flows. The Company evaluates hedge effectiveness of the interest rate swap quarterly, or more frequently if necessary, by verifying the critical terms of the interest rate swap continue to match the critical terms of the hedged monthly interest payments and the hedge was expected to be highly effective as of September 30, 2022. Thus, the change in fair value of the derivative instrument offsets the change in fair value on the hedged debt, and there is no ineffectiveness to be recorded in earnings. As of September 30, 2022, the net asset balance derived from the monthly interest settlements related to the single cash flow hedge contract was $24.6 million. Realized gains (losses) and unrealized gains from the interest rate swap were recorded in interest expense and other comprehensive income, respectively, within the accompanying condensed consolidated statements of operations and comprehensive loss as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Realized gains (losses) $ 84 $ — $ (1,521) $ — Unrealized gains 12,285 — 24,609 — Total gains $ 12,369 $ — $ 23,088 $ — Foreign Currency Contracts The Company is exposed to foreign currency exchange rate risk related to its purchases and international operations. The Company utilizes foreign currency contracts to manage foreign currency risk in purchasing inventory and capital equipment, and future settlement of foreign denominated assets and liabilities. The volume of the Company’s foreign currency contract activity is limited by the amount of transaction exposure in each foreign currency and the Company’s election as to whether to hedge the transactions. There are no derivative instruments entered into for speculative purposes. The Company had outstanding foreign currency contracts as of September 30, 2022 and December 31, 2021. The Company did not elect hedge accounting for any of these contracts. All outstanding contracts are with the same counterparty and thus the fair market value of the contracts in an asset position are offset by the fair market value of the contracts in a liability position to reach a net position. For periods where the net position is an asset balance, the balance is recorded within prepaid expenses and other current assets on the condensed consolidated balance sheets and for periods where the net position is a liability balance, the balance is recorded within derivative liabilities on the condensed consolidated balance sheets. Changes in the net fair value of contracts are recorded in other expense in the condensed consolidated statements of operations and comprehensive loss. The gross and net balances from foreign currency contract positions were as follows (in thousands): September 30, December 31, Gross Asset Fair Value $ — $ 1,439 Gross Liability Fair Value 3,129 — Net Fair Value $ 3,129 $ 1,439 Gains (losses) from foreign currency contracts were recorded in other income (expense) within the accompanying condensed consolidated statements of operations and comprehensive loss as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Realized gains (losses) $ (964) $ 1,301 $ (250) $ 6,749 Unrealized losses (1,703) (689) (4,567) (4,800) Total gains (losses) $ (2,667) $ 612 $ (4,817) $ 1,949 |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 9 Months Ended |
Sep. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS Financial assets and liabilities valued using Level 1 inputs are based on unadjusted quoted market prices within active markets. Financial assets and liabilities valued using Level 2 inputs are based primarily on observable trades and/or prices for similar assets or liabilities in active or inactive markets. Financial assets and liabilities valued using Level 3 inputs are primarily valued using management’s assumptions about the assumptions market participants would utilize in pricing the asset or liability. The following table presents information about the fair value measurement of the Company’s financial instruments (in thousands): Financial Instruments Recorded at Fair Value on a Recurring Basis: Fair Value As of September 30, As of December 31, Assets: Derivative assets—foreign currency contracts (1) 2 $ — $ 1,439 Derivative assets—interest rate swap contract (2) 2 24,609 — Total assets $ 24,609 $ 1,439 Liabilities: Derivative liabilities—foreign currency contracts (3) 2 $ 3,129 $ — Contingent consideration—earn out (4) 3 16,520 25,300 Total liabilities $ 19,649 $ 25,300 (1) Included in prepaid expenses and other current assets in the condensed consolidated balance sheets (2) Included in prepaid expenses and other current assets and other non-current assets in the condensed consolidated balance sheets (3) Included in other current liabilities in the condensed consolidated balance sheets (4) Included in current and non-current contingent consideration in the condensed consolidated balance sheets Transfers of assets and liabilities among Level 1, Level 2 and Level 3 are recorded as of the actual date of the events or change in circumstances that caused the transfer. As of September 30, 2022 and December 31, 2021, there were no transfers between levels of the fair value hierarchy of the Company’s assets or liabilities measured at fair value. The fair value of the Company’s derivative assets through its foreign currency contracts is based upon observable market-based inputs that reflect the present values of the differences between estimated future foreign currency rates versus fixed future settlement prices per the contracts, and therefore, are classified within Level 2. The fair value of the Company's interest rate swap contracts held with financial institutions are classified as Level 2 financial instruments, which are valued using observable underlying interest rates and market-determined risk premiums at the reporting date. The fair values of the Company's contingent consideration earn out obligation associated with the Apption Labs business combination is estimated using a Monte Carlo model. Key assumptions used in the estimate include probability assessments with respect to the likelihood of achieving the performance target consistent with the level of risk of achievement. As these are significant unobservable inputs, the contingent consideration earn out obligation is included in Level 3 inputs. At each reporting date, the Company revalues the contingent consideration obligation to its fair value and records increases and decreases in fair value in the revaluation of contingent consideration in our condensed consolidated statements of operations and comprehensive loss. Changes in the fair value of the contingent consideration obligation results from changes in discount periods and rates, and changes in probability assumptions with respect to the likelihood of achieving the performance targets. The following table presents the fair value contingent consideration (in thousands): Balance at December 31, 2021 $ 25,300 Payments of contingent consideration (12,555) Change in fair value of contingent consideration 3,775 Balance at September 30, 2022 $ 16,520 The following financial instruments are recorded at their carrying amount (in thousands): As of September 30, 2022 As of December 31, 2021 Financial Instruments Recorded at Carrying Amount: Carrying Estimated Carrying Estimated Liabilities: Debt—Credit Facilities (1) $ 438,696 $ 353,749 $ 388,195 $ 386,139 Total liabilities $ 438,696 $ 353,749 $ 388,195 $ 386,139 (1) Included in notes payable in the consolidated balance sheets. Due to the unobservable nature of the inputs these financial instruments are considered to be Level 3 instruments in the fair value hierarchy. |
DEBT AND FINANCING ARRANGEMENTS
DEBT AND FINANCING ARRANGEMENTS | 9 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
DEBT AND FINANCING ARRANGEMENTS | DEBT AND FINANCING ARRANGEMENTS Notes Payable On June 29, 2021, the Company refinanced its existing credit facilities and entered into a new first lien credit agreement, as borrower, with Credit Suisse AG, Cayman Islands Branch, as administrative agent and collateral agent, and other lenders party thereto as joint lead arrangers and joint bookrunners (the "First Lien Credit Agreement"). The First Lien Credit Agreement provides for a $560.0 million senior secured term loan facility (the "First Lien Term Loan Facility"), including a $50.0 million delayed draw term loan, and a $125.0 million revolving credit facility (the "Revolving Credit Facility" and, together with the First Lien Term Loan Facility, the "Credit Facilities"). The First Lien Term Loan Facility accrues interest at a rate per annum that considers both fixed and floating components. Following the completion of the Company's IPO in July 2021, the fixed component ranges from 3.00% to 3.25% per annum based on the Company's Public Debt Rating (as defined in the First Lien Credit Agreement). The floating component is based on the Eurocurrency Base Rate (as defined in the First Lien Credit Agreement) for the relevant interest period. The First Lien Term Loan Facility requires periodic principal payments from December 2021 through June 2028, with any remaining unpaid principal and any accrued and unpaid interest due on the maturity date of June 29, 2028. The delayed draw term loan includes a variable commitment fee, which is based on the fixed interest rate and ranges from 0% to the Applicable Rate (as defined in the First Lien Credit Agreement). As of September 30, 2022, the total principal amount outstanding on the First Lien Term Loan Facility was $391.7 million, including a $12.5 million outstanding principal balance under the delayed draw term loan, which the Company borrowed for purposes of financing the earn out obligation associated with the acquisition of Apption Labs as described in Note 4 – Business Combination . Loans under the Revolving Credit Facility accrue interest at a rate per annum that considers both fixed and floating components. Following completion of the Company's IPO in July 2021, the fixed component ranges from 2.75% to 3.25% per annum based on the Company's most recently determined First Lien Net Leverage Ratio (as defined in the First Lien Credit Agreement). The floating component is based on the Eurocurrency Base Rate for the relevant interest period. The Revolving Credit Facility also has a variable commitment fee, which is based on the Company's most recently determined First Lien Net Leverage Ratio and ranges from 0.25% to 0.50% per annum on undrawn amounts. Letters of credit may be issued under the Revolving Credit Facility in an amount not to exceed $15.0 million which, when issued, lower the overall borrowing capacity of the facility. The Revolving Credit Facility expires on June 29, 2026 and no principal payments are due before such date. As of September 30, 2022, the Company had drawn down $47.0 million under the Revolving Credit Facility for general corporate and working capital purposes. The First Lien Credit Agreement contains certain affirmative and negative covenants that limit the Company's ability to, among other things, incur additional indebtedness or liens (with certain exceptions), make certain investments, engage in fundamental changes or transactions including changes of control, transfer or dispose of certain assets, make restricted payments (including dividends), engage in new lines of business, make certain prepayments and engage in certain affiliate transactions. In addition, the Company is subject to a financial covenant and is required to maintain a First Lien Net Leverage Ratio (as defined in the First Lien Credit Agreement) not to exceed 6.20 to 1.00. As of September 30, 2022, the Company was in compliance with the covenants under the Credit Facilities. On August 9, 2022, the Company entered into a second amendment (the “Amendment”) to the First Lien Credit Agreement to provide for a “Covenant Amendment Period” (as defined therein) through and including the earlier of June 30, 2023 and the date on which the Company, in its sole discretion, delivers written notice to the Administrative Agent of the Company's election to end the Covenant Amendment Period. During that period, the Company's springing First Lien Net Leverage Ratio covenant will be increased from 6.20 : 1.00 to 8.50 : 1.00 and a minimum liquidity covenant of $35.0 million will be in effect. Liquidity will be calculated as the sum of cash on the Company's balance sheet, availability under the Revolving Credit Facility and availability under the Receivables Financing Agreement (as defined below), and the minimum liquidity covenant will be tested only if and when the Company requests borrowings under the Revolving Credit Facility. During the Covenant Amendment Period, the fixed dollar portion of the “Fixed Dollar Amount” definition shall decrease from $127.0 million to $102.0 million, and the use of certain restricted payments baskets will be reduced or eliminated entirely. As of September 30, 2022, the Company was in compliance with these amended covenants under the Amendment. Accounts Receivable Credit Facility On November 2, 2020, the Company entered into a receivables financing agreement (as amended, the "Receivables Financing Agreement"). Through the Receivables Financing Agreement, the Company participates in a trade receivables securitization program, administered on its behalf by MUFG Bank Ltd. ("MUFG"), using outstanding accounts receivable balances as collateral, which have been contributed by the Company to its wholly owned subsidiary and special purpose entity, Traeger SPE LLC (the "SPE"). While the Company provides operational services to the SPE, the receivables are owned by the SPE once contributed to it by the Company. The Company is the primary beneficiary and holds all equity interests of the SPE, thus the Company consolidates the SPE without any significant judgments. On June 29, 2021, the Company entered into Amendment No. 1 to the Receivables Financing Agreement and increased the net borrowing capacity from the prior range of $30.0 million to $45.0 million up to $100.0 million. The borrowing capacity fluctuates at each month end based upon the amount of eligible outstanding domestic accounts receivables to be used as collateral. On August 19, 2022, the Company entered into Amendment No. 4 to the Receivables Financing Agreement to increase the liquidity level that must be maintained to avoid a “Liquidity Shortfall” (as defined in the agreement) from $7.5 million to $42.5 million. As of September 30, 2022, the Company had drawn down $13.5 million under this facility for general corporate and working capital purposes. The Company is required to pay an annual upfront fee for the facility, along with fixed interest on outstanding cash advances of 1.7%, a floating component based on the CP Rate (as defined in the Receivables Financing Agreement), and an unused capacity charge that ranges from 0.25% to 0.5%. The facility is set to terminate on June 29, 2024. The Company was not in compliance with the covenants under the Receivables Financing Agreement as of September 30, 2022 due to a minimum dilution ratio as defined in the Receivables Financing Agreement. Such non-compliance did not result in the acceleration or increase of a direct financial obligation or an obligation under an off-balance sheet arrangement. On November, 8, 2022, the Company obtained a waiver for the breach of compliance to the covenants as of September 30, 2022 and entered into Amendment No. 7 under the Receivables Financing Agreement with MUFG, amending the definition of the dilution ratio |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Sep. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Legal Matters The Company is subject to various claims, complaints and legal actions in the normal course of business. The Company does not believe it has any currently pending litigation of which the outcome will have a material adverse effect on its operations or financial position. |
EQUITY-BASED COMPENSATION
EQUITY-BASED COMPENSATION | 9 Months Ended |
Sep. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
EQUITY-BASED COMPENSATION | EQUITY-BASED COMPENSATION Incentive Units On September 25, 2017, AEA Investors LP, TCP Traeger Holdings SPV LLC, Ontario Limited, and other management and limited partners purchased a 100% equity stake (the "Transaction") in Traeger Pellet Grills Holdings LLC through a merger agreement in which TGP Holdings LP was formed. In connection with the Transaction, TGP Holdings LP established a management incentive equity pool, authorizing a maximum of 99,389 total units, or 15% of the total autho rized units, for purposes of issuing compensatory awards to employees and certain directors of the Company, and its subsidiaries. Pursuant to the Amended and Restated Limited Partnership Agreement of TGP Holdings LP, dated as of September 25, 2017, eligible management employees and directors were granted a certain number of Class B Units of TGP Holdings LP which were intended to be treated as profit interests for tax purposes. The participation threshold of the Class B Units was historically established for each grant based on the fair market value of TGP Holdings LP membership units at the date of the grant. On July 12, 2021, the board of directors of TGP Holdings GP Corp, a Delaware corporation and the then general partner of TGP Holdings LP, approved the acceleration of vesting of all unvested and outstanding Class B Units, subject to the successful completion of the Company's IPO. The approval for the acceleration of vesting was determined to be a modification. As a result, the Company evaluated each of the modified awards to determine the necessary accounting. At the time of the IPO, awards where vesting was probable prior to and after the modification, resulted in an acceleration of the remaining expense based on the original grant date fair value and awards where vesting was not probable, resulted in recognition of the fair value of the modified awards as of the modification date. In connection with the completion of the Company’s IPO, Class B Units that were outstanding and vested were, as part of the Corporate Conversion, converted into shares of common stock of the Company. The Company recorded equity compensation expense of approximately $47.4 million as a result of the acceleration of vesting of the unvested Class B Units based on the IPO price of $18.00. Given the proximity of the modification to the IPO, the expense recorded by the Company was based on the actual conversion of the Class B Unit into common stock and the valuation of the Company at time of the IPO. Restricted Stock Unit Awards The Traeger, Inc. 2021 Incentive Award Plan (the "2021 Plan"), became effective as of July 28, 2021, the day prior to the first public trading date of our common stock. The 2021 Plan provides for the grant of stock options, including incentive stock options, and nonqualified stock options, restricted stock, dividend equivalents, restricted stock units, stock appreciation rights, and other stock or cash awards to the Company’s employees and consultants and directors of the Company and its subsidiaries. Subject to the adjustment described in the following sentence, the initial number of shares of the Company's common stock available for issuance under awards granted pursuant to the 2021 Plan is equal to 14,105,750 shares, which shares may be authorized but unissued shares, treasury shares, or shares purchased in the open market. On January 1, 2022, an additional 5,877,395 shares of common stock became available for issuance under awards granted pursuant to the 2021 Plan, as a result of the operation of an automatic annual increase provision in the 2021 Plan. Notwithstanding anything to the contrary in the 2021 Plan, no more than 100,000,000 shares of our common stock may be issued pursuant to the exercise of incentive stock options under the 2021 Plan. The Company's equity-based compensation was classified as follows in the condensed consolidated statements of operations and comprehensive loss (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Cost of revenue $ 34 $ 568 $ 185 $ 580 Sales and marketing 603 12,444 3,012 12,975 General and administrative 52,616 46,198 77,490 48,156 Total equity-based compensation $ 53,253 $ 59,210 $ 80,687 $ 61,711 On July 20, 2021, the board of directors of the Company (the "Board") approved grants of restricted stock units ("RSUs") covering 12,163,242 shares of common stock that became effective in connection with the completion of the Company’s IPO, which include RSUs covering 7,782,957 shares granted to the Company's Chief Executive Officer ("CEO") and RSUs covering 4,380,285 shares granted to other employees, directors, and certain non-employees. CEO Awards The awards include a combination of time-based and performance-based awards. Specifically, time-based RSUs covering 2,594,319 shares ("RSU CEO Award") and performance-based RSUs ("PSUs") covering 5,188,638 shares ("PSU CEO Award") were granted to the CEO. RSU CEO Award The RSU CEO Award will vest as to 20% of the underlying shares on each of the first, second, third, fourth and fifth anniversaries of the closing of the IPO, subject to continued service with the Company as its CEO or executive chairman of its Board. Upon a termination of the CEO's service by the Company without cause, by the CEO for good reason, or due to the CEO's disability (each as defined in his award agreement) or due to his death (each, a "CEO Qualifying Termination"), then, subject to the CEO's (or his estate's) timely execution and non revocation of a general release of claims and continued compliance with the restrictive covenants to which the CEO is bound through the effective date of the general release of claims, any unvested portion of the RSU CEO Award will vest. To the extent any of the RSU CEO Award vests, the CEO must hold the vested and settled shares for two years following their vesting date, subject to certain exceptions set forth in the award agreement. PSU CEO Award The PSU CEO Awards will become earned based on the achievement of stock price goals (measured as a volume-weighted stock price over 60 consecutive trading days) at any time until the ten Earned PSUs’ Vesting Tranche Vesting Date First Vesting Tranche 50% on the first anniversary and 50% on the second anniversary of the closing of the IPO Second Vesting Tranche 50% on the second anniversary and 50% on the third anniversary of the closing of the IPO Third Vesting Tranche 50% on the third anniversary and 50% on the fourth anniversary of the closing of the IPO Fourth Vesting Tranche 50% on the fourth anniversary and 50% on the fifth anniversary of the closing of the IPO Fifth Vesting Tranche 50% on the fifth anniversary and 50% on the sixth anniversary of the closing of the IPO Upon a CEO Qualifying Termination, then, subject to the CEO’s (or his estate's) timely execution and non-revocation of a general release of claims and continued compliance with the restrictive covenants to which the CEO is bound, any previously earned PSUs subject to the CEO PSU Award will vest, and any remaining PSUs that were not previously earned will be forfeited and terminated without consideration. To the extent any of the PSUs subject to the CEO PSU Award vest, the CEO must hold such vested shares for two years following their vesting date, subject to certain exceptions set forth in the award agreement. If the CEO experiences a termination of service other than a CEO Qualifying Termination, all PSUs (including earned PSUs) subject to the PSU CEO Award which have not become vested will be automatically forfeited and terminated as of the termination date without consideration. In the event the Company incurs a change in control, then any previously-earned PSUs will vest and any remaining PSUs will vest based on the price per share received by or payable with respect to the common stockholders in connection with the transaction, pro-rated to reflect a price per share that falls between two stock price goals. PSUs that remain unvested as of the expiration date automatically will be forfeited and terminated without consideration. Letter Agreement On August 31, 2022, the Board approved a letter agreement between the Company and the Company’s CEO (the “Letter Agreement”) intended to facilitate a personal tax planning initiative. The Letter Agreement provided for the accelerated vesting of 2,075,455 unvested RSUs and 518,864 earned but unvested PSUs held by the CEO, and required the CEO to pay the withholding tax associated with the acceleration of the awards by cash or check, rather than by selling vested shares to cover the tax obligation. In addition, the Letter Agreement imposes certain clawback rights intended to maintain the retention incentives of the RSUs and PSUs by mirroring their former vesting schedule. If the CEO experiences a termination of service, other than due to a qualifying termination (as defined in the award agreements), prior to an original vesting date of an RSU or PSU, the CEO will forfeit and return to the Company that number of shares of the Company’s common stock that would not otherwise have vested pursuant to the terms of the original award agreements or, if he has disposed of or transferred such shares, he will deliver to the Company the corresponding value of those shares plus any gain realized in connection with such sale or other transfer. The approval for the acceleration of vesting was determined to be a modification and therefore, the Company evaluated each of the modified awards to determine the necessary accounting treatment. Vesting of the awards was assessed as probable immediately prior to and after the modification resulting in an acceleration of the remaining expense based on the original grant date fair value. As a result of the modification, the Company recorded approximately $39.4 million of accelerated equity-based compensation for the three and nine months ended September 30, 2022. Other IPO Awards The RSUs granted to other employees, directors, and certain non-employees, included 3,635,287 time-based RSUs ("IPO RSUs") and 744,998 performance-based RSUs ("IPO PSUs") granted to certain senior level executives of the Company. IPO RSUs The IPO RSUs vest based on certain time-based conditions set forth in the applicable award agreement. IPO RSUs granted to certain senior executives of the Company vest as to 50% of the underlying shares on each of the third and fourth anniversaries of the closing of the IPO, subject to continued employment with the Company or one of its subsidiaries. Amendments to RSUs In August 2022, the Board approved an amendment to the vesting schedule applicable to the IPO RSUs held by certain directors. Pursuant to the amendment, the IPO RSUs are eligible to vest as to one-third of the underlying shares on each of the first, second and third anniversaries of the closing of the IPO, subject to continued employment with the Company or one of its subsidiaries. In addition, in August 2022, the Board approved an amendment to RSUs previously granted to certain employees impacted by the Company’s reduction in workforce. The amendment provided for accelerated vesting of one-third of the RSUs underlying each award then-held by such employees upon any termination of service (as defined in the 2021 Plan), subject to the holder’s timely execution and delivery to the Company (and, as applicable, non-revocation) of a general release of claims in favor of the Company. The approval for the amendment to the vesting schedule was determined to be a modification and therefore, the Company evaluated each of the modified awards to determine the necessary accounting treatment. Awards where vesting was probable prior to and after the modification resulted in an acceleration of a portion of the remaining expense, consistent with the accelerated vesting schedule, based on the original grant date fair value. Awards where vesting was not probable prior to modification resulted in remeasurement of the fair value as of the modification date, which resulted in a decrease in total fair value of awards of approximately $6.7 million due to a decrease in the fair value between the original grant date and the modification date. Due to the decrease in the fair value between the original grant date and modification date, the Company recorded a cumulative-effect adjustment. As a result of the accelerated vesting schedule, net of the cumulative-effect adjustment, the Company recorded $1.1 million of accelerated equity-based compensation for the three and nine months ended September 30, 2022. IPO PSUs The IPO PSUs consist of two equal tranches, with the first tranche having a stock price goal of 200% of the IPO price and the second tranche having a stock price goal of 300% of the IPO price. Once earned, the applicable IPO PSU will vest as to (i) 50% of the earned PSU upon the later of the first anniversary of the closing of the IPO or the achievement of the applicable stock price goal and (ii) 50% of the earned PSUs upon the later of the second anniversary of the closing of the IPO or the first anniversary of when the respective stock price goal is achieved with respect to the applicable vesting tranche, in each case, subject to continued employment with the Company or one of its subsidiaries. Upon a termination of employment due to an executive’s disability (each defined in the applicable award agreement) or due to his or her death, then, subject to such executive’s (or his or her estate’s) timely execution and non-revocation of a general release of claims and continued compliance with the restrictive covenants to which such executive is bound, any previously earned PSUs subject to the IPO PSUs will vest, and any remaining PSUs subject to the IPO PSU award that were not previously earned will be automatically forfeited and terminated as of the termination date without consideration. In the event the Company incurs a change in control, then any previously-earned PSUs will vest and any remaining PSUs will vest based on the price per share received by or payable with respect to the common stockholders in connection with the transaction, pro-rated to reflect a price per share that falls between two stock price goals. PSUs that remain unvested as of the expiration date automatically will be forfeited and terminated without consideration. For RSUs and PSUs, the compensation expense is recognized on a straight-line basis over the vesting schedule and on an accelerated basis over the tranche's requisite service period, respectively. In addition, when an award is forfeited prior to the vesting date, the Company will recognize an adjustment for the previously recognized expense in the period of the forfeiture, with the exception of performance-based awards for which the requisite service period has been provided. The Company uses the Monte Carlo pricing model to estimate the fair value of its PSUs as of the grant date, and uses various simulations of future stock prices through the Stochastic model to estimate the fair value over the remaining term of the performance period as of the grant date. A summary of the time-based restricted stock unit activity during the nine months ended September 30, 2022 was as follows: Units Weighted Average Grant Date Fair Value Outstanding at December 31, 2021 6,274,860 $ 18.08 Modified (449,179) 18.05 Granted 4,433,330 3.78 Vested (4,007,275) 17.56 Forfeited (567,531) 15.35 Outstanding at September 30, 2022 5,684,205 $ 7.57 As of September 30, 2022, the Company h ad $37.2 million of unrecognized equity-based compensation expense related to unvested time-based restricted stock units that is expected to be recognized over a weighted-average period of 2.29 years. A summary of the performance-based restricted stock unit activity during the nine months ended September 30, 2022 was as follows: Units Weighted Average Grant Date Fair Value Outstanding at December 31, 2021 5,933,636 $ 13.25 Granted at fair value — — Vested (1,037,728) 16.51 Forfeited (93,333) 11.84 Outstanding at September 30, 2022 4,802,575 $ 12.57 As of September 30, 2022, the Com pany had $41.8 million of unrecognized equity-based compensation expense related to unvested performance-based units that is expected to be recognized over a weighted-average period of 3.43 years. |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES For the three months ended September 30, 2022 and 2021, the Company recorded income tax benefit of $225,000 and $2,000,000, respectively. For the nine months ended September 30, 2022 and 2021, the Company recorded income tax benefit of $27,000 and $1,300,000, respectively. The Company regularly evaluates the realizability of its deferred tax assets and establishes a valuation allowance if it is more likely than not that some or all the deferred tax assets will not be realized. In making such a determination, the Company considers all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, loss carryback and tax planning strategies. Generally, more weight is given to objectively verifiable evidence, such as the cumulative loss in recent years, as a significant piece of negative evidence to overcome. As of September 30, 2022, the Company's U.S. operations have resulted in losses, and as such, the Company maintains a valuation allowance against substantially all its U.S. deferred tax assets. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 9 Months Ended |
Sep. 30, 2022 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS The Company outsources a portion of its customer service and support through a third party who is an affil iate of the Company through common ownership. The total amount of expenses the Company recorded associated with such services totaled $5.0 million and $8.2 million for the nine months ended September 30, 2022, and 2021, respectively. Amounts payable to the third party as of September 30, 2022, and December 31, 2021 was $0.9 million and $1.2 million, respectively. |
EARNINGS (LOSS) PER SHARE
EARNINGS (LOSS) PER SHARE | 9 Months Ended |
Sep. 30, 2022 | |
Earnings Per Share [Abstract] | |
EARNINGS (LOSS) PER SHARE | EARNINGS (LOSS) PER SHARE The Company computes basic earnings (loss) per share ("EPS") attributable to common stockholders by dividing net income (loss) attributable to common stockholders by the weighted-average number of shares of common stock outstanding during the period. Diluted EPS is calculated by adjusting weighted average shares outstanding for the dilutive effect of potential common shares, determined using the treasury-stock method. For purposes of the diluted EPS calculation, restricted stock units are considered to be potential common shares. The following table sets forth the computation of the Company’s basic and diluted EPS attributable to common stockholders for the fiscal periods indicated (in thousands, except share and per share amounts): Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Net loss $ (210,639) $ (89,185) $ (351,350) $ (55,163) Weighted-average common shares outstanding—basic 119,924,371 114,382,955 118,682,379 110,631,304 Effect of dilutive securities: Restricted stock units — — — — Weighted-average common shares outstanding—diluted 119,924,371 114,382,955 118,682,379 110,631,304 Earnings (loss) per share Basic and diluted $ (1.76) $ (0.78) $ (2.96) $ (0.50) The following table includes the number of units that may be dilutive common shares in the future, and were not included in the computation of diluted earnings (loss) per share because the effect was anti-dilutive for the fiscal periods indicated: Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Restricted stock units 10,486,780 12,081,024 10,486,780 12,081,024 |
RESTRUCTURING PLAN
RESTRUCTURING PLAN | 9 Months Ended |
Sep. 30, 2022 | |
Restructuring and Related Activities [Abstract] | |
RESTRUCTURING PLAN | RESTRUCTURING PLAN In July 2022, the Board approved a restructuring plan (the "2022 restructuring plan") as part of its efforts to reduce the Company’s costs and drive long-term operational efficiencies due to challenging macroeconomic pressures. As part of the 2022 restructuring plan, the Company eliminated approximately 14% of its global headcount, suspended operations of Traeger Provisions (the Company's premium frozen meal kit business), and postponed nearshoring efforts to manufacture product in Mexico. These actions were substantially completed in the third quarter of fiscal 2022. The following table summarizes the costs recorded in the condensed consolidated statements of operations and comprehensive loss for the three and nine months ended September 30, 2022 in connection with the 2022 restructuring plan (in thousands): Three and Nine Months Ended Costs recorded in cost of revenue: Inventory write-off and contract cancellation costs $ 1,608 Total costs recorded in cost of revenue 1,608 Costs recorded in restructuring costs: Employee related costs 2,229 Contract exit costs 4,255 Other restructuring related costs 1,552 Total costs recorded in restructuring costs 8,036 Total restructuring costs $ 9,644 A summary of the activity in the restructuring reserve in connection with the Company's 2022 restructuring plan recorded in accrued expenses within the condensed consolidated balance sheets as follows (in thousands): Employee Related Costs Contract Exit Costs Other Restructuring Related Costs Balance at December 31, 2021 $ — $ — $ — Net additions charged to expense 2,229 5,640 — Cash payments against reserve (1,591) (833) — Balance at September 30, 2022 $ 638 $ 4,807 $ — |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"). The accompanying unaudited condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. The balance sheet as of December 31, 2021 has been derived from the audited consolidated financial statements at that date but does not include all information and footnotes required by U.S. GAAP for complete financial statements. These unaudited condensed consolidated financial statements should be read in conjunction with the Company's audited consolidated financial statements for the year ended December 31, 2021 included in the Company’s Annual Report on Form 10-K , filed with the Securities and Exchange Commission on March 29, 2022 (the "Annual Report on Form 10-K"). In the opinion of management, the accompanying unaudited condensed consolidated financial statements contain all normal and recurring adjustments necessary to fairly present the consolidated financial position, results of operations and cash flows for the interim periods presented. Operating results for the three and nine months ended September 30, 2022 are not necessarily indicative of results that may be expected for any other interim period or for the year ended December 31, 2022. |
Principles of Consolidation | The accompanying unaudited condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. |
Use of Estimates | Use of Estimates – The preparation of these financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The most significant estimates and the assumptions made by management that present the greatest amount of estimation uncertainty include business combination accounting for the fair value of assets acquired, liabilities assumed, and contingent considerations, customer credits and returns, obsolete inventory reserves, valuation and impairment of intangible assets including goodwill, unrealized positions on derivatives and reserves for warranty. Actual results could differ from these estimates. |
Concentrations | Concentrations – Financial instruments that potentially subject the Company to concentrations of credit risk consist of cash in banks, trade accounts receivable, foreign currency contracts, and business activity with certain third-party contract manufacturers of our products. Credit is extended to customers based on an evaluation of the customer’s financial condition and collateral is not generally required in the Company’s sales transactions. |
Goodwill | Goodwill – Goodwill represents the excess of consideration transferred over the fair value of tangible and identifiable intangible net assets acquired and the liabilities assumed in a business combination. Substantially all of the Company’s goodwill was recognized in the purchase price allocation when the Company was acquired in 2017, with smaller incremental amounts recognized in subsequent business combinations. Goodwill is not amortized, but is tested for impairment at the reporting unit level annually or more frequently if events or changes in circumstances indicate that it is more likely than not that the fair value of the reporting unit is less than its carrying amount. In conducting the impairment test, the Company first reviews qualitative factors to determine whether it is more likely than not that the fair value of the reporting unit is less than its carrying amount. We currently operate as a single reporting unit under the guidance in Topic 350, Intangibles - Goodwill and Other. When testing goodwill for impairment, the Company has the option of first performing a qualitative assessment to determine whether it is more likely than not that the fair value of the reporting unit is less than its carrying amount. If we elect to bypass the qualitative assessment, or if a qualitative assessment indicates it is more likely than not that carrying value exceeds its fair value, we perform a quantitative goodwill impairment test. Under the quantitative goodwill impairment test, if our reporting unit’s carrying amount exceeds its fair value, we will record an impairment charge based on that difference. To determine reporting unit fair value as part of the quantitative test, we use a weighting of fair values derived from the income approach and the market approach. Under the income approach, the Company projects the future cash flows and discount these cash flows to reflect their relative risk. The cash flows used are consistent with those the Company uses in its internal planning, |
Recently Issued Accounting Standards | Recently Issued Accounting Standards In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) and the FASB has also certain subsequent related ASUs that supplement and amend Topic 842. The guidance in Topic 842 replaces the leasing guidance in Topic 840, Leases. Under the new guidance, lessees are required to recognize right of use assets related to the leases and lease liabilities on the balance sheet. For leases with terms of 12 months or less, the lessee is permitted to make an accounting policy election by class of underlying asset not to recognize lease assets and lease liabilities. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. The new standard is effective for fiscal years beginning after December 15, 2021 and for interim periods within fiscal years beginning after December 15, 2022. The Company has adopted this guidance effective January 1, 2022 and will present the impact of the new guidance in its annual statements as of December 31, 2022 and its interim statements thereafter. Management is currently in the process of evaluating its existing portfolio of operating leases for right of use assets and lease liabilities that would need be recognized upon implementation and the impact of this guidance on its consolidated financial statements and related disclosures. There have been no material changes to the implementation or evaluation of “Recently Issued Accounting Standards” as described in the Company's annual audited financial statements for the period ended December 31, 2021. |
Fair Value Measurements | Financial assets and liabilities valued using Level 1 inputs are based on unadjusted quoted market prices within active markets. Financial assets and liabilities valued using Level 2 inputs are based primarily on observable trades and/or prices for similar assets or liabilities in active or inactive markets. Financial assets and liabilities valued using Level 3 inputs are primarily valued using management’s assumptions about the assumptions market participants would utilize in pricing the asset or liability. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Schedule of Significant Portion of Net Sales | Four customers (each large U.S. retailers) that accounted for a significant portion of net sales are as follows: Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Customer A 14 % 11 % 15 % 18 % Customer B 5 % 16 % 18 % 19 % Customer C 17 % 18 % 17 % 17 % Customer D 6 % 11 % 5 % 6 % |
REVENUE (Tables)
REVENUE (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Revenue | The following table disaggregates revenue by product category, geography, and sales channel for the periods indicated (in thousands): Three Months Ended September 30, Nine Months Ended September 30, Revenue by product category 2022 2021 2022 2021 Grills $ 38,994 $ 108,799 $ 307,105 $ 443,495 Consumables 25,151 28,029 106,899 110,067 Accessories 29,644 25,190 103,764 57,051 Total revenue $ 93,788 $ 162,018 $ 517,768 $ 610,613 Three Months Ended September 30, Nine Months Ended September 30, Revenue by geography 2022 2021 2022 2021 North America $ 82,638 $ 151,862 $ 477,338 $ 581,805 Rest of world 11,150 10,156 40,430 28,808 Total revenue $ 93,788 $ 162,018 $ 517,768 $ 610,613 Three Months Ended September 30, Nine Months Ended September 30, Revenue by sales channel 2022 2021 2022 2021 Retail $ 68,060 $ 138,376 $ 433,001 $ 564,133 Direct to consumer 25,728 23,642 84,767 46,480 Total revenue $ 93,788 $ 162,018 $ 517,768 $ 610,613 |
BUSINESS COMBINATIONS (Tables)
BUSINESS COMBINATIONS (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Preliminary Fair Value of Assets Acquired and Liabilities Assumed | The following table summarizes the fair values of the consideration transferred, assets acquired, and liabilities assumed as of the Acquisition Date (in thousands): Consideration Transferred Fair Value Cash paid, net of cash acquired $ 36,957 Contingent consideration 21,500 Other closing consideration 19,890 Total purchase consideration, net of cash acquired $ 78,347 Assets acquired Accounts receivable, net $ 2,190 Inventory, net 5,431 Prepaid and other current assets 293 Property and equipment 1,357 Intangible Assets 53,100 Goodwill 40,200 Total assets acquired 102,571 Liabilities assumed Accounts payable and accrued liabilities 8,474 Deferred tax liability 12,646 Other current liabilities 344 Other non-current liabilities 2,760 Total liabilities assumed 24,224 Total net assets, net of cash acquired $ 78,347 |
Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination | The following table details the identifiable intangible assets acquired at their fair value and their corresponding useful lives at the Acquisition Date (amounts in thousands): Identifiable Intangible Assets Fair Value Estimated Useful Life (in years) Technology $ 32,300 5 Trademarks 17,700 10 Distributor relationships 2,400 8 Non-compete arrangements 700 2.5 $ 53,100 |
ACCOUNTS RECEIVABLES, NET (Tabl
ACCOUNTS RECEIVABLES, NET (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Receivables [Abstract] | |
Schedule of Accounts Receivable | Accounts receivable consists of the following (in thousands): September 30, December 31, Trade accounts receivable $ 49,473 $ 108,620 Allowance for doubtful accounts (723) (1,090) Reserve for returns, discounts and allowances (14,380) (14,603) Total accounts receivable, net $ 34,370 $ 92,927 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories consisted of the following (in thousands): September 30, December 31, Raw materials $ 2,229 $ 3,106 Work in process 11,743 11,523 Finished goods 147,797 130,409 Inventories $ 161,769 $ 145,038 |
ACCRUED EXPENSES (Tables)
ACCRUED EXPENSES (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Expenses | Accrued expenses consisted of the following (in thousands): September 30, December 31, Accrual for inventories in-transit $ 4,394 $ 28,536 Warranty accrual 7,285 8,326 Accrued compensation and bonus 4,458 7,025 Build-to-suit lease liability 23,456 4,273 Other 29,111 21,613 Accrued expenses $ 68,704 $ 69,773 |
Schedule of Changes in Warranty Liability | The changes in the Company’s warranty accrual, included in accrued expenses on the accompanying condensed consolidated balance sheets, were as follows for the fiscal periods indicated (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Warranty accrual, beginning of period $ 8,647 $ 8,094 $ 8,326 $ 6,728 Warranty claims (2,239) (2,544) (6,327) (6,224) Warranty costs accrued 877 2,886 5,286 7,929 Warranty accrual, end of period $ 7,285 $ 8,436 $ 7,285 $ 8,436 |
DERIVATIVES (Tables)
DERIVATIVES (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Interest Rate Derivatives | Realized gains (losses) and unrealized gains from the interest rate swap were recorded in interest expense and other comprehensive income, respectively, within the accompanying condensed consolidated statements of operations and comprehensive loss as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Realized gains (losses) $ 84 $ — $ (1,521) $ — Unrealized gains 12,285 — 24,609 — Total gains $ 12,369 $ — $ 23,088 $ — |
Schedule of Foreign Exchange Contracts | The gross and net balances from foreign currency contract positions were as follows (in thousands): September 30, December 31, Gross Asset Fair Value $ — $ 1,439 Gross Liability Fair Value 3,129 — Net Fair Value $ 3,129 $ 1,439 |
Schedule of Gain (Loss) from Foreign Currency Contracts | Gains (losses) from foreign currency contracts were recorded in other income (expense) within the accompanying condensed consolidated statements of operations and comprehensive loss as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Realized gains (losses) $ (964) $ 1,301 $ (250) $ 6,749 Unrealized losses (1,703) (689) (4,567) (4,800) Total gains (losses) $ (2,667) $ 612 $ (4,817) $ 1,949 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following table presents information about the fair value measurement of the Company’s financial instruments (in thousands): Financial Instruments Recorded at Fair Value on a Recurring Basis: Fair Value As of September 30, As of December 31, Assets: Derivative assets—foreign currency contracts (1) 2 $ — $ 1,439 Derivative assets—interest rate swap contract (2) 2 24,609 — Total assets $ 24,609 $ 1,439 Liabilities: Derivative liabilities—foreign currency contracts (3) 2 $ 3,129 $ — Contingent consideration—earn out (4) 3 16,520 25,300 Total liabilities $ 19,649 $ 25,300 (1) Included in prepaid expenses and other current assets in the condensed consolidated balance sheets (2) Included in prepaid expenses and other current assets and other non-current assets in the condensed consolidated balance sheets (3) Included in other current liabilities in the condensed consolidated balance sheets (4) Included in current and non-current contingent consideration in the condensed consolidated balance sheets |
Schedule of Fair Value Contingent Consideration | The following table presents the fair value contingent consideration (in thousands): Balance at December 31, 2021 $ 25,300 Payments of contingent consideration (12,555) Change in fair value of contingent consideration 3,775 Balance at September 30, 2022 $ 16,520 |
Schedule of Financial Instruments Recorded at Carrying Amount | The following financial instruments are recorded at their carrying amount (in thousands): As of September 30, 2022 As of December 31, 2021 Financial Instruments Recorded at Carrying Amount: Carrying Estimated Carrying Estimated Liabilities: Debt—Credit Facilities (1) $ 438,696 $ 353,749 $ 388,195 $ 386,139 Total liabilities $ 438,696 $ 353,749 $ 388,195 $ 386,139 (1) Included in notes payable in the consolidated balance sheets. Due to the unobservable nature of the inputs these financial instruments are considered to be Level 3 instruments in the fair value hierarchy. |
EQUITY-BASED COMPENSATION (Tabl
EQUITY-BASED COMPENSATION (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Equity-Based Compensation, Expensed and Capitalized Amount | The Company's equity-based compensation was classified as follows in the condensed consolidated statements of operations and comprehensive loss (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Cost of revenue $ 34 $ 568 $ 185 $ 580 Sales and marketing 603 12,444 3,012 12,975 General and administrative 52,616 46,198 77,490 48,156 Total equity-based compensation $ 53,253 $ 59,210 $ 80,687 $ 61,711 |
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award | The PSU CEO Award will vest on the applicable vesting date described in the following table or, if later, the date on which the applicable stock price goal is achieved, subject to the CEO's continued service as the Company's CEO or executive chairman of the Board: Earned PSUs’ Vesting Tranche Vesting Date First Vesting Tranche 50% on the first anniversary and 50% on the second anniversary of the closing of the IPO Second Vesting Tranche 50% on the second anniversary and 50% on the third anniversary of the closing of the IPO Third Vesting Tranche 50% on the third anniversary and 50% on the fourth anniversary of the closing of the IPO Fourth Vesting Tranche 50% on the fourth anniversary and 50% on the fifth anniversary of the closing of the IPO Fifth Vesting Tranche 50% on the fifth anniversary and 50% on the sixth anniversary of the closing of the IPO |
Share-based Payment Arrangement, Outstanding Award, Activity, Excluding Option | A summary of the time-based restricted stock unit activity during the nine months ended September 30, 2022 was as follows: Units Weighted Average Grant Date Fair Value Outstanding at December 31, 2021 6,274,860 $ 18.08 Modified (449,179) 18.05 Granted 4,433,330 3.78 Vested (4,007,275) 17.56 Forfeited (567,531) 15.35 Outstanding at September 30, 2022 5,684,205 $ 7.57 Units Weighted Average Grant Date Fair Value Outstanding at December 31, 2021 5,933,636 $ 13.25 Granted at fair value — — Vested (1,037,728) 16.51 Forfeited (93,333) 11.84 Outstanding at September 30, 2022 4,802,575 $ 12.57 |
EARNINGS (LOSS) PER SHARE (Tabl
EARNINGS (LOSS) PER SHARE (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Computation of Basic and Diluted EPS Attributable for Common Stockholders | The following table sets forth the computation of the Company’s basic and diluted EPS attributable to common stockholders for the fiscal periods indicated (in thousands, except share and per share amounts): Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Net loss $ (210,639) $ (89,185) $ (351,350) $ (55,163) Weighted-average common shares outstanding—basic 119,924,371 114,382,955 118,682,379 110,631,304 Effect of dilutive securities: Restricted stock units — — — — Weighted-average common shares outstanding—diluted 119,924,371 114,382,955 118,682,379 110,631,304 Earnings (loss) per share Basic and diluted $ (1.76) $ (0.78) $ (2.96) $ (0.50) |
Schedule of Antidilutive Securities Excluded from Computation of Diluted Earnings (loss) Per Share | The following table includes the number of units that may be dilutive common shares in the future, and were not included in the computation of diluted earnings (loss) per share because the effect was anti-dilutive for the fiscal periods indicated: Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Restricted stock units 10,486,780 12,081,024 10,486,780 12,081,024 |
RESTRUCTURING PLAN (Tables)
RESTRUCTURING PLAN (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Costs | The following table summarizes the costs recorded in the condensed consolidated statements of operations and comprehensive loss for the three and nine months ended September 30, 2022 in connection with the 2022 restructuring plan (in thousands): Three and Nine Months Ended Costs recorded in cost of revenue: Inventory write-off and contract cancellation costs $ 1,608 Total costs recorded in cost of revenue 1,608 Costs recorded in restructuring costs: Employee related costs 2,229 Contract exit costs 4,255 Other restructuring related costs 1,552 Total costs recorded in restructuring costs 8,036 Total restructuring costs $ 9,644 A summary of the activity in the restructuring reserve in connection with the Company's 2022 restructuring plan recorded in accrued expenses within the condensed consolidated balance sheets as follows (in thousands): Employee Related Costs Contract Exit Costs Other Restructuring Related Costs Balance at December 31, 2021 $ — $ — $ — Net additions charged to expense 2,229 5,640 — Cash payments against reserve (1,591) (833) — Balance at September 30, 2022 $ 638 $ 4,807 $ — |
DESCRIPTION OF BUSINESS AND B_2
DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION (Details) - $ / shares | Sep. 30, 2022 | Dec. 31, 2021 | Jul. 31, 2021 | Jul. 28, 2021 |
Business Acquisition [Line Items] | ||||
Common unit outstanding (in shares) | 108,724,422 | |||
Common stock outstanding (in shares) | 122,587,393 | 117,547,916 | 108,724,387 | |
Previously Reported | ||||
Business Acquisition [Line Items] | ||||
Common unit outstanding (in shares) | 10 | |||
IPO | ||||
Business Acquisition [Line Items] | ||||
Sale of stock, price per share (in dollars per share) | $ 18 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - numberOfCustomers | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Concentration Risk [Line Items] | |||||
Number of major customers | 4 | ||||
Customer Concentration Risk | Revenue from Contract with Customer, Product and Service Benchmark | Customer A | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage | 14% | 11% | 15% | 18% | |
Customer Concentration Risk | Revenue from Contract with Customer, Product and Service Benchmark | Customer B | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage | 5% | 16% | 18% | 19% | |
Customer Concentration Risk | Revenue from Contract with Customer, Product and Service Benchmark | Customer C | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage | 17% | 18% | 17% | 17% | |
Customer Concentration Risk | Revenue from Contract with Customer, Product and Service Benchmark | Customer D | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage | 6% | 11% | 5% | 6% | |
Customer Concentration Risk | Accounts Receivable | Customer A | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage | 23% | 45% | |||
Customer Concentration Risk | Accounts Receivable | Customer B | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage | 12% | 13% | |||
Customer Concentration Risk | Accounts Receivable | Customer C | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage | 11% | 13% | |||
Customer Concentration Risk | Accounts Receivable | Customer D | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage | 13% | 5% |
REVENUE (Details)
REVENUE (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Disaggregation of Revenue [Line Items] | ||||
Total revenue | $ 93,788 | $ 162,018 | $ 517,768 | $ 610,613 |
Retail | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 68,060 | 138,376 | 433,001 | 564,133 |
Direct to consumer | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 25,728 | 23,642 | 84,767 | 46,480 |
North America | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 82,638 | 151,862 | 477,338 | 581,805 |
Rest of world | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 11,150 | 10,156 | 40,430 | 28,808 |
Grills | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 38,994 | 108,799 | 307,105 | 443,495 |
Consumables | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 25,151 | 28,029 | 106,899 | 110,067 |
Accessories | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | $ 29,644 | $ 25,190 | $ 103,764 | $ 57,051 |
BUSINESS COMBINATIONS - Narrati
BUSINESS COMBINATIONS - Narrative (Details) - Apption Labs Limited - USD ($) $ in Thousands | 1 Months Ended | 6 Months Ended | |
Jul. 01, 2021 | Apr. 30, 2022 | Jun. 30, 2022 | |
Business Acquisition [Line Items] | |||
Total purchase consideration, net of cash acquired | $ 78,347 | ||
Contingent consideration | 21,500 | ||
Payment of contingent consideration | $ 12,600 | ||
Business combination, low value of outcomes | 0 | ||
Business combination, high value of outcomes | $ 27,400 | ||
Acquisition related costs | $ 1,800 |
BUSINESS COMBINATIONS - Prelimi
BUSINESS COMBINATIONS - Preliminary Fair Value Assets and Liabilities Assumed (Details) - USD ($) $ in Thousands | 9 Months Ended | |||
Jul. 01, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Consideration Transferred | ||||
Cash paid, net of cash acquired | $ 0 | $ 57,041 | ||
Assets acquired | ||||
Goodwill | $ 74,725 | $ 297,047 | ||
Apption Labs Limited | ||||
Consideration Transferred | ||||
Cash paid, net of cash acquired | $ 36,957 | |||
Contingent consideration | 21,500 | |||
Other closing consideration | 19,890 | |||
Total purchase consideration, net of cash acquired | 78,347 | |||
Assets acquired | ||||
Accounts receivable, net | 2,190 | |||
Inventory, net | 5,431 | |||
Prepaid and other current assets | 293 | |||
Property and equipment | 1,357 | |||
Intangible Assets | 53,100 | |||
Goodwill | 40,200 | |||
Total assets acquired | 102,571 | |||
Liabilities assumed | ||||
Accounts payable and accrued liabilities | 8,474 | |||
Deferred tax liability | 12,646 | |||
Other current liabilities | 344 | |||
Other non-current liabilities | 2,760 | |||
Total liabilities assumed | 24,224 | |||
Total net assets, net of cash acquired | $ 78,347 |
BUSINESS COMBINATIONS - Summary
BUSINESS COMBINATIONS - Summary of Amount Assigned to Identifiable Intangible Assets (Details) - Apption Labs Limited $ in Thousands | Jul. 01, 2021 USD ($) |
Business Acquisition [Line Items] | |
Finite-lived intangible assets acquired | $ 53,100 |
Technology | |
Business Acquisition [Line Items] | |
Finite-lived intangible assets acquired | $ 32,300 |
Useful life (in years) | 5 years |
Trademarks | |
Business Acquisition [Line Items] | |
Finite-lived intangible assets acquired | $ 17,700 |
Useful life (in years) | 10 years |
Distributor relationships | |
Business Acquisition [Line Items] | |
Finite-lived intangible assets acquired | $ 2,400 |
Useful life (in years) | 8 years |
Non-compete arrangements | |
Business Acquisition [Line Items] | |
Finite-lived intangible assets acquired | $ 700 |
Useful life (in years) | 2 years 6 months |
ACCOUNTS RECEIVABLES, NET (Deta
ACCOUNTS RECEIVABLES, NET (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Receivables [Abstract] | ||
Trade accounts receivable | $ 49,473 | $ 108,620 |
Allowance for doubtful accounts | (723) | (1,090) |
Reserve for returns, discounts and allowances | (14,380) | (14,603) |
Total accounts receivable, net | $ 34,370 | $ 92,927 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 2,229 | $ 3,106 |
Work in process | 11,743 | 11,523 |
Finished goods | 147,797 | 130,409 |
Inventories | 161,769 | 145,038 |
Inventory adjustments | $ 300 | $ 700 |
ACCRUED EXPENSES - Schedule of
ACCRUED EXPENSES - Schedule of Accrued Expenses (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Dec. 31, 2020 |
Payables and Accruals [Abstract] | ||||||
Accrual for inventories in-transit | $ 4,394 | $ 28,536 | ||||
Warranty accrual | 7,285 | $ 8,647 | 8,326 | $ 8,436 | $ 8,094 | $ 6,728 |
Accrued compensation and bonus | 4,458 | 7,025 | ||||
Build-to-suit lease liability | 23,456 | 4,273 | ||||
Other | 29,111 | 21,613 | ||||
Accrued expenses | $ 68,704 | $ 69,773 |
ACCRUED EXPENSES - Change in Wa
ACCRUED EXPENSES - Change in Warranty Liability (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Movement in Standard and Extended Product Warranty Accrual, Increase (Decrease) [Roll Forward] | ||||
Warranty accrual, beginning of period | $ 8,647 | $ 8,094 | $ 8,326 | $ 6,728 |
Warranty claims | (2,239) | (2,544) | (6,327) | (6,224) |
Warranty costs accrued | 877 | 2,886 | 5,286 | 7,929 |
Warranty accrual, end of period | $ 7,285 | $ 8,436 | $ 7,285 | $ 8,436 |
GOODWILL (Details)
GOODWILL (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Goodwill impairment | $ 110,837 | $ 0 | $ 222,322 | $ 0 |
DERIVATIVES - Narratives (Detai
DERIVATIVES - Narratives (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Feb. 25, 2022 |
Interest Rate Swap | ||
Derivatives, Fair Value [Line Items] | ||
Notional amount | $ 379.2 | |
Fixed interest rate | 2.08% | |
Interest Rate Swap | Cash Flow Hedging | ||
Derivatives, Fair Value [Line Items] | ||
Net asset fair value | $ 24.6 | |
First Lein Term Loan Facility | Secured Debt | ||
Derivatives, Fair Value [Line Items] | ||
Long-term debt | $ 379.2 |
DERIVATIVES - Summary of Realiz
DERIVATIVES - Summary of Realized Losses and Unrealized Gains On Interest Rate Swaps (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Derivative [Line Items] | ||||
Realized gains (losses) | $ (7,337) | $ (5,704) | $ (20,238) | $ (21,393) |
Interest Rate Swap | Cash Flow Hedging | ||||
Derivative [Line Items] | ||||
Realized gains (losses) | 84 | 0 | (1,521) | 0 |
Unrealized gains | 12,285 | 0 | 24,609 | 0 |
Total gains | $ 12,369 | $ 0 | $ 23,088 | $ 0 |
DERIVATIVES - Summary of Gross
DERIVATIVES - Summary of Gross and Net Fair Value of Cash Flow Hedge Position (Details) $ in Millions | Sep. 30, 2022 USD ($) |
Cash Flow Hedging | Interest Rate Swap | |
Derivatives, Fair Value [Line Items] | |
Net Fair Value | $ 24.6 |
DERIVATIVES - Summary of Gros_2
DERIVATIVES - Summary of Gross and Net Fair Value of Foreign Currency Contracts (Details) - Foreign currency contract - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Derivatives, Fair Value [Line Items] | ||
Gross Asset Fair Value | $ 0 | $ 1,439 |
Gross Liability Fair Value | 3,129 | 0 |
Net Fair Value | $ 3,129 | $ 1,439 |
DERIVATIVES - Summary of Gains
DERIVATIVES - Summary of Gains (Losses) from Foreign Currency Contracts (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||
Realized gains (losses) | $ (964) | $ 1,301 | $ (250) | $ 6,749 |
Unrealized losses | (1,703) | (689) | (4,567) | (4,800) |
Total gains (losses) | $ (2,667) | $ 612 | $ (4,817) | $ 1,949 |
FAIR VALUE MEASUREMENTS - Sched
FAIR VALUE MEASUREMENTS - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis (Details) - Fair Value, Recurring - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Assets: | ||
Total assets | $ 24,609 | $ 1,439 |
Liabilities: | ||
Total liabilities | 19,649 | 25,300 |
Level 2 | Interest rate contract | ||
Assets: | ||
Derivative asset | 24,609 | 0 |
Level 2 | Foreign currency contract | ||
Assets: | ||
Derivative asset | 0 | 1,439 |
Liabilities: | ||
Derivative liability | 3,129 | 0 |
Level 3 | ||
Liabilities: | ||
Contingent consideration | $ 16,520 | $ 25,300 |
FAIR VALUE MEASUREMENTS - Sch_2
FAIR VALUE MEASUREMENTS - Schedule of Fair value Consideration Payments (Details) - Level 3 $ in Thousands | 9 Months Ended |
Sep. 30, 2022 USD ($) | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Beginning balance | $ 25,300 |
Payments of contingent consideration | (12,555) |
Change in fair value of contingent consideration | 3,775 |
Ending balance | $ 16,520 |
FAIR VALUE MEASUREMENTS - Summa
FAIR VALUE MEASUREMENTS - Summary of Financial Instruments Reported at Carrying Amount (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total liabilities | $ 438,696 | $ 388,195 |
Carrying Amount | First Lein Term Loan Facility | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt | 438,696 | 388,195 |
Estimated Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total liabilities | 353,749 | 386,139 |
Estimated Fair Value | Level 3 | First Lein Term Loan Facility | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt | $ 353,749 | $ 386,139 |
DEBT AND FINANCING ARRANGEMEN_2
DEBT AND FINANCING ARRANGEMENTS (Details) - USD ($) | Jun. 29, 2021 | Sep. 30, 2022 | Aug. 19, 2022 | Aug. 18, 2022 | Aug. 09, 2022 | Jul. 31, 2021 | Jun. 28, 2021 |
First Lein Term Loan Facility | Minimum | |||||||
Debt Instrument [Line Items] | |||||||
Fixed interest rate | 3% | ||||||
First Lein Term Loan Facility | Maximum | |||||||
Debt Instrument [Line Items] | |||||||
Fixed interest rate | 3.25% | ||||||
First Lein Term Loan Facility | Secured Debt | |||||||
Debt Instrument [Line Items] | |||||||
Face amount | $ 560,000,000 | ||||||
Outstanding principal balance | $ 391,700,000 | ||||||
Debt instrument, covenant, minimum leverage ratio | 620% | 850% | |||||
Fixed dollar amount | $ 127,000,000 | $ 102,000,000 | |||||
Minimum liquidity | $ 35,000,000 | ||||||
First Lein Term Loan Facility | Delayed Draw Term Loan | |||||||
Debt Instrument [Line Items] | |||||||
Face amount | $ 50,000,000 | ||||||
Outstanding principal balance | 12,500,000 | ||||||
First Lein Term Loan Facility | Delayed Draw Term Loan | Minimum | |||||||
Debt Instrument [Line Items] | |||||||
Upfront fee percentage | 0% | ||||||
First Lein Term Loan Facility | Line of Credit | Revolving Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | $ 125,000,000 | ||||||
Outstanding principal balance | $ 47,000,000 | ||||||
First Lein Term Loan Facility | Line of Credit | Revolving Credit Facility | Minimum | |||||||
Debt Instrument [Line Items] | |||||||
Fixed interest rate | 2.75% | ||||||
Unused capacity percentage | 0.25% | ||||||
First Lein Term Loan Facility | Line of Credit | Revolving Credit Facility | Maximum | |||||||
Debt Instrument [Line Items] | |||||||
Fixed interest rate | 3.25% | ||||||
Unused capacity percentage | 0.50% | ||||||
First Lein Term Loan Facility | Line of Credit | Letter of Credit | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | $ 15,000,000 | ||||||
Accounts Receivable Credit Facility | Line of Credit | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | 100,000,000 | ||||||
Outstanding principal balance | $ 13,500,000 | ||||||
Line of credit minimum liquidity level | $ 42,500,000 | $ 7,500,000 | |||||
Accounts Receivable Credit Facility | Line of Credit | CP Rate | |||||||
Debt Instrument [Line Items] | |||||||
Upfront fee percentage | 1.70% | ||||||
Accounts Receivable Credit Facility | Line of Credit | Minimum | |||||||
Debt Instrument [Line Items] | |||||||
Unused capacity percentage | 0.25% | ||||||
Current borrowing capacity | $ 30,000,000 | ||||||
Accounts Receivable Credit Facility | Line of Credit | Maximum | |||||||
Debt Instrument [Line Items] | |||||||
Unused capacity percentage | 0.50% | ||||||
Current borrowing capacity | $ 45,000,000 |
EQUITY-BASED COMPENSATION - Nar
EQUITY-BASED COMPENSATION - Narrative (Details) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||||
Aug. 31, 2022 shares | Aug. 02, 2021 USD ($) $ / shares | Jul. 20, 2021 tranche shares | Sep. 25, 2017 shares | Aug. 31, 2022 shares | Sep. 30, 2022 USD ($) shares | Sep. 30, 2022 USD ($) shares | Jan. 01, 2022 shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Accelerated award vesting rights, percentage | 33% | |||||||
2021 Plan | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share-based arrangement, maximum authorized units (in shares) | 100,000,000 | 100,000,000 | ||||||
Number of shares available for grant (in shares) | 14,105,750 | 14,105,750 | ||||||
Number of additional shares available for grant (in shares) | 5,877,395 | |||||||
Chief Executive Officer | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Equity compensation expense | $ | $ 39,400 | $ 39,400 | ||||||
Restricted stock units | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share-based arrangement, maximum authorized units (in shares) | 12,163,242 | |||||||
Restricted stock units | Chief Executive Officer | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share-based arrangement, maximum authorized units (in shares) | 7,782,957 | |||||||
Accelerated vesting (in shares) | 2,075,455 | |||||||
Required period to hold shares after vesting | 2 years | |||||||
Restricted stock units | Employees, Directors And Certain Non-Employees, Excluding Chief Executive Officer | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share-based arrangement, maximum authorized units (in shares) | 4,380,285 | |||||||
Restricted stock units | Employees, Directors And Certain Non-Employees, Excluding Chief Executive Officer | First Vesting Tranche | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Award vesting rights percentage | 50% | |||||||
Restricted stock units | Employees, Directors And Certain Non-Employees, Excluding Chief Executive Officer | Second Vesting Tranche | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Award vesting rights percentage | 50% | |||||||
Time-Based Restricted Stock Units | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Unrecognized stock based compensation expense | $ | 37,200 | $ 37,200 | ||||||
Share-based payment arrangement, unrecognized compensation, weighted average period (in years) | 2 years 3 months 14 days | |||||||
Time-Based Restricted Stock Units | Chief Executive Officer | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share-based arrangement, maximum authorized units (in shares) | 2,594,319 | |||||||
Time-Based Restricted Stock Units | Chief Executive Officer | Tranche One | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Award vesting rights percentage | 20% | |||||||
Time-Based Restricted Stock Units | Chief Executive Officer | Tranche Two | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Award vesting rights percentage | 20% | |||||||
Time-Based Restricted Stock Units | Chief Executive Officer | Tranche Three | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Award vesting rights percentage | 20% | |||||||
Time-Based Restricted Stock Units | Chief Executive Officer | Tranche Four | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Award vesting rights percentage | 20% | |||||||
Time-Based Restricted Stock Units | Chief Executive Officer | Tranche Five | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Award vesting rights percentage | 20% | |||||||
Time-Based Restricted Stock Units | Employees, Directors And Certain Non-Employees, Excluding Chief Executive Officer | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share-based arrangement, maximum authorized units (in shares) | 3,635,287 | |||||||
Performance-Based Restricted Stock Units | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Unrecognized stock based compensation expense | $ | 41,800 | $ 41,800 | ||||||
Share-based payment arrangement, unrecognized compensation, weighted average period (in years) | 3 years 5 months 4 days | |||||||
Performance-Based Restricted Stock Units | Chief Executive Officer | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share-based arrangement, maximum authorized units (in shares) | 5,188,638 | |||||||
Award vesting period | 60 days | |||||||
Term of awards | 10 years | |||||||
Number of tranches | tranche | 5 | |||||||
Performance-Based Restricted Stock Units | Chief Executive Officer | First Vesting Tranche | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Percentage of outstanding common stock | 125% | |||||||
Performance-Based Restricted Stock Units | Chief Executive Officer | Second Vesting Tranche | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Percentage of outstanding common stock | 125% | |||||||
Performance-Based Restricted Stock Units | Chief Executive Officer | Third Vesting Tranche | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Percentage of outstanding common stock | 125% | |||||||
Performance-Based Restricted Stock Units | Chief Executive Officer | Fourth Vesting Tranche | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Percentage of outstanding common stock | 125% | |||||||
Performance-Based Restricted Stock Units | Chief Executive Officer | Fifth Vesting Tranche | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Percentage of outstanding common stock | 125% | |||||||
Performance-Based Restricted Stock Units | Chief Executive Officer | Tranche One | First Vesting Tranche | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Award vesting rights percentage | 50% | |||||||
Performance-Based Restricted Stock Units | Chief Executive Officer | Tranche Two | First Vesting Tranche | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Award vesting rights percentage | 50% | |||||||
Performance-Based Restricted Stock Units | Chief Executive Officer | Tranche Two | Second Vesting Tranche | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Award vesting rights percentage | 50% | |||||||
Performance-Based Restricted Stock Units | Chief Executive Officer | Tranche Three | Second Vesting Tranche | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Award vesting rights percentage | 50% | |||||||
Performance-Based Restricted Stock Units | Chief Executive Officer | Tranche Three | Third Vesting Tranche | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Award vesting rights percentage | 50% | |||||||
Performance-Based Restricted Stock Units | Chief Executive Officer | Tranche Four | Third Vesting Tranche | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Award vesting rights percentage | 50% | |||||||
Performance-Based Restricted Stock Units | Chief Executive Officer | Tranche Four | Fourth Vesting Tranche | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Award vesting rights percentage | 50% | |||||||
Performance-Based Restricted Stock Units | Chief Executive Officer | Tranche Five | Fourth Vesting Tranche | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Award vesting rights percentage | 50% | |||||||
Performance-Based Restricted Stock Units | Chief Executive Officer | Tranche Five | Fifth Vesting Tranche | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Award vesting rights percentage | 50% | |||||||
Performance-Based Restricted Stock Units | Employees, Directors And Certain Non-Employees, Excluding Chief Executive Officer | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share-based arrangement, maximum authorized units (in shares) | 744,998 | |||||||
Performance-Based Restricted Stock Units | Employees, Directors And Certain Non-Employees, Excluding Chief Executive Officer | First Vesting Tranche | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Percentage of outstanding common stock | 200% | |||||||
Award vesting rights percentage | 50% | |||||||
Performance-Based Restricted Stock Units | Employees, Directors And Certain Non-Employees, Excluding Chief Executive Officer | Second Vesting Tranche | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Percentage of outstanding common stock | 300% | |||||||
Award vesting rights percentage | 50% | |||||||
Performance Shares | Chief Executive Officer | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Accelerated vesting (in shares) | 518,864 | |||||||
Common Class B | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Equity compensation expense | $ | $ 47,400 | |||||||
TGP Holdings LP | Common Class B | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share-based arrangement, maximum authorized units (in shares) | 99,389 | |||||||
Share-based arrangement, maximum authorized unit percentage | 15% | |||||||
TGP Holdings LP | Common Class B | Traeger Pellet Grills Holsings LLC | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Equity stake percentage | 100% | |||||||
IPO | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share price (in dollars per share) | $ / shares | $ 18 | |||||||
IPO | Restricted stock units | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Equity compensation expense | $ | $ 1,100 | $ 1,100 | ||||||
Award vesting rights percentage | 33% | |||||||
Increase (decrease) in fair value of awards | (6,700,000) | |||||||
IPO | Performance-Based Restricted Stock Units | Employees, Directors And Certain Non-Employees, Excluding Chief Executive Officer | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Number of tranches | tranche | 2 |
EQUITY-BASED COMPENSATION - Sch
EQUITY-BASED COMPENSATION - Schedule of Equity-based Compensation, Expensed and Capitalized Amount (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Share-based arrangement, compensation expense | $ 53,253 | $ 59,210 | $ 80,687 | $ 61,711 |
Cost of revenue | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Share-based arrangement, compensation expense | 34 | 568 | 185 | 580 |
Sales and marketing | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Share-based arrangement, compensation expense | 603 | 12,444 | 3,012 | 12,975 |
General and administrative | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Share-based arrangement, compensation expense | $ 52,616 | $ 46,198 | $ 77,490 | $ 48,156 |
EQUITY-BASED COMPENSATION - Ves
EQUITY-BASED COMPENSATION - Vesting Schedule of PSUs (Details) - Performance-Based Restricted Stock Units - Chief Executive Officer | 9 Months Ended |
Sep. 30, 2022 | |
First Anniversary | First Vesting Tranche | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award vesting rights percentage | 50% |
Second Anniversary | First Vesting Tranche | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award vesting rights percentage | 50% |
Second Anniversary | Second Vesting Tranche | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award vesting rights percentage | 50% |
Third Anniversary | Second Vesting Tranche | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award vesting rights percentage | 50% |
Third Anniversary | Third Vesting Tranche | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award vesting rights percentage | 50% |
Fourth Anniversary | Third Vesting Tranche | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award vesting rights percentage | 50% |
Fourth Anniversary | Fourth Vesting Tranche | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award vesting rights percentage | 50% |
Fifth Anniversary | Fourth Vesting Tranche | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award vesting rights percentage | 50% |
Fifth Anniversary | Fifth Vesting Tranche | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award vesting rights percentage | 50% |
Sixth Anniversary | Fifth Vesting Tranche | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award vesting rights percentage | 50% |
EQUITY-BASED COMPENSATION - Res
EQUITY-BASED COMPENSATION - Restricted Stock Unit Activity (Details) | 9 Months Ended |
Sep. 30, 2022 $ / shares shares | |
Time-Based Restricted Stock Units | |
Stock Appreciation Rights Activity | |
Outstanding at December 31, 2021 (in shares) | shares | 6,274,860 |
Granted (in shares) | shares | 4,433,330 |
Vested (in shares) | shares | (4,007,275) |
Forfeited (in shares) | shares | (567,531) |
Outstanding at March 31, 2021 (in shares) | shares | 5,684,205 |
Weighted Average Grant Date Fair Value | |
Outstanding, Weighted average grant date fair value at December 30, 2021 (in dollars per share) | $ / shares | $ 18.08 |
Granted, Weighted average grant date fair value (in dollars per share) | $ / shares | 3.78 |
Vested, Weighted average grant date fair value (in dollars per share) | $ / shares | 17.56 |
Forfeited, Weighted average grant date fair value (in dollars per share) | $ / shares | 15.35 |
Outstanding, Weighted average grant date fair value at March 31, 2021 (in dollars per share) | $ / shares | $ 7.57 |
Performance-Based Restricted Stock Units | |
Stock Appreciation Rights Activity | |
Outstanding at December 31, 2021 (in shares) | shares | 5,933,636 |
Granted (in shares) | shares | 0 |
Vested (in shares) | shares | (1,037,728) |
Forfeited (in shares) | shares | (93,333) |
Outstanding at March 31, 2021 (in shares) | shares | 4,802,575 |
Weighted Average Grant Date Fair Value | |
Outstanding, Weighted average grant date fair value at December 30, 2021 (in dollars per share) | $ / shares | $ 13.25 |
Granted, Weighted average grant date fair value (in dollars per share) | $ / shares | 0 |
Vested, Weighted average grant date fair value (in dollars per share) | $ / shares | 16.51 |
Forfeited, Weighted average grant date fair value (in dollars per share) | $ / shares | 11.84 |
Outstanding, Weighted average grant date fair value at March 31, 2021 (in dollars per share) | $ / shares | $ 12.57 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | ||||
Income tax expense | $ 225,000 | $ 1,983,000 | $ 27,000 | $ 1,255,000 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) - Affiliated Entity - Customer Service and Support - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Related Party Transaction [Line Items] | |||
Related party transaction expenses | $ 5 | $ 8.2 | |
Amount payable to third party | $ 0.9 | $ 1.2 |
EARNINGS (LOSS) PER SHARE - Sch
EARNINGS (LOSS) PER SHARE - Schedule of Computation of Basic and Diluted EPS Attributable for Common Stockholders (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Earnings Per Share [Abstract] | ||||
Net loss | $ (210,639) | $ (89,185) | $ (351,350) | $ (55,163) |
Weighted average common shares outstanding - basic (in shares) | 119,924,371 | 114,382,955 | 118,682,379 | 110,631,304 |
Effect of dilutive securities: | ||||
Restricted stock (in shares) | 0 | 0 | 0 | 0 |
Weighted average common shares outstanding - diluted (in shares) | 119,924,371 | 114,382,955 | 118,682,379 | 110,631,304 |
Earnings Per Share, Basic and Diluted | ||||
Earnings (loss) per share - basic (in dollars per share) | $ (1.76) | $ (0.78) | $ (2.96) | $ (0.50) |
Earnings (loss) per share - diluted (in dollars per share) | $ (1.76) | $ (0.78) | $ (2.96) | $ (0.50) |
EARNINGS (LOSS) PER SHARE - S_2
EARNINGS (LOSS) PER SHARE - Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Restricted stock units | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Potentially dilutive securities (in shares) | 10,486,780 | 12,081,024 | 10,486,780 | 12,081,024 |
RESTRUCTURING PLAN - Narrative
RESTRUCTURING PLAN - Narrative (Details) | 3 Months Ended |
Sep. 30, 2022 | |
Restructuring and Related Activities [Abstract] | |
Number of positions eliminated, period percent | 14% |
RESTRUCTURING PLAN - Restructur
RESTRUCTURING PLAN - Restructuring Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Restructuring Cost and Reserve [Line Items] | ||||
Inventory write-off and contract cancellation costs | $ 1,608 | |||
Costs recorded in restructuring costs: | ||||
Total costs recorded in restructuring costs | $ 8,036 | $ 0 | 8,036 | $ 0 |
Restructuring costs | 9,644 | |||
Employee Related Costs | ||||
Costs recorded in restructuring costs: | ||||
Total costs recorded in restructuring costs | 2,229 | |||
Contract Exit Costs | ||||
Costs recorded in restructuring costs: | ||||
Total costs recorded in restructuring costs | 4,255 | |||
Other Restructuring Related Costs | ||||
Costs recorded in restructuring costs: | ||||
Total costs recorded in restructuring costs | $ 1,552 |
RESTRUCTURING PLAN - Summary of
RESTRUCTURING PLAN - Summary of Activity in the Restructuring Reserve (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2022 USD ($) | |
Employee Related Costs | |
Restructuring Reserve [Roll Forward] | |
Beginning balance | $ 0 |
Net additions charged to expense | 2,229 |
Cash payments against reserve | (1,591) |
Ending balance | 638 |
Contract Exit Costs | |
Restructuring Reserve [Roll Forward] | |
Beginning balance | 0 |
Net additions charged to expense | 5,640 |
Cash payments against reserve | (833) |
Ending balance | 4,807 |
Other Restructuring Related Costs | |
Restructuring Reserve [Roll Forward] | |
Beginning balance | 0 |
Net additions charged to expense | 0 |
Cash payments against reserve | 0 |
Ending balance | $ 0 |