Sleep Number (SNBR) 10-Q 31 Jul 15 2015 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - Jul. 04, 2015 - shares	Total
Document and Entity Information [Abstract]
Entity Registrant Name	SELECT COMFORT CORP
Entity Central Index Key	827,187
Current Fiscal Year End Date	--01-02
Entity Filer Category	Large Accelerated Filer
Document Type	10-Q
Document Period End Date	Jul. 4, 2015
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q2
Amendment Flag	false
Entity Common Stock, Shares Outstanding	51,414,000

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Jul. 04, 2015	Jan. 03, 2015
Current assets:
Cash and cash equivalents	$ 26,074	$ 51,995
Marketable debt securities – current	62,379	69,609
Accounts receivable, net of allowance for doubtful accounts of $701 and $739, respectively	20,464	19,693
Inventories	68,377	53,535
Prepaid expenses	20,584	17,792
Deferred income taxes	8,757	8,786
Other current assets	10,836	11,185
Total current assets	217,471	232,595
Non-current assets:
Marketable debt securities – non-current	28,751	44,441
Property and equipment, net	186,696	165,453
Goodwill and intangible assets, net	15,570	15,986
Deferred income taxes	7,944	3,433
Other assets	19,139	12,279
Total assets	475,571	474,187
Current liabilities:
Accounts payable	87,985	84,197
Customer prepayments	25,660	28,726
Accrued sales returns	12,679	15,262
Compensation and benefits	24,395	33,066
Taxes and withholding	9,867	10,207
Other current liabilities	18,684	15,594
Total current liabilities	179,270	187,052
Non-current liabilities:
Warranty liabilities	3,425	2,722
Other long-term liabilities	37,484	27,506
Total liabilities	220,179	217,280
Shareholders’ equity:
Undesignated preferred stock; 5,000 shares authorized, no shares issued and outstanding	0	0
Common stock, $0.01 par value; 142,500 shares authorized, 51,414 and 52,798 shares issued and outstanding, respectively	514	528
Additional paid-in capital	0	0
Retained earnings	254,860	256,413
Accumulated other comprehensive income (loss)	18	(34)
Total shareholders’ equity	255,392	256,907
Total liabilities and shareholders’ equity	$ 475,571	$ 474,187

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Jul. 04, 2015	Jan. 03, 2015
Current assets:
Accounts receivable, net of allowance for doubtful accounts	$ 701	$ 739
Shareholders’ equity:
Undesignated preferred stock, shares authorized (in shares)	5,000,000	5,000,000
Undesignated preferred stock, shares issued (in shares)	0	0
Undesignated preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	142,500,000	142,500,000
Common stock, shares issued (in shares)	51,414,000	52,798,000
Common stock, shares outstanding (in shares)	51,414,000	52,798,000

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 04, 2015	Jun. 28, 2014	Jul. 04, 2015	Jun. 28, 2014
Income Statement [Abstract]
Net sales	$ 275,289	$ 234,763	$ 625,098	$ 511,175
Cost of sales	104,750	92,366	238,726	197,395
Gross profit	170,539	142,397	386,372	313,780
Operating expenses:
Sales and marketing	126,627	106,712	267,130	231,734
General and administrative	23,880	21,265	52,134	40,161
Research and development	3,403	1,709	6,754	3,372
Total operating expenses	153,910	129,686	326,018	275,267
Operating income	16,629	12,711	60,354	38,513
Other income, net	133	78	286	180
Income before income taxes	16,762	12,789	60,640	38,693
Income tax expense	5,724	4,308	20,803	13,220
Net income	$ 11,038	$ 8,481	$ 39,837	$ 25,473
Basic net income per share:
Net income per share – basic (in USD per share)	$ 0.21	$ 0.16	$ 0.77	$ 0.47
Weighted-average shares – basic (in shares)	51,672,000	53,648,000	52,009,000	53,880,000
Diluted net income per share:
Net income per share – diluted (in USD per share)	$ 0.21	$ 0.16	$ 0.75	$ 0.47
Weighted-average shares – diluted (in shares)	52,544,000	54,324,000	52,935,000	54,570,000

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 04, 2015	Jun. 28, 2014	Jul. 04, 2015	Jun. 28, 2014
Statement of Comprehensive Income [Abstract]
Net income	$ 11,038	$ 8,481	$ 39,837	$ 25,473
Other comprehensive (loss) income– unrealized (loss) gain on available-for-sale marketable debt securities, net of income tax	(20)	20	52	30
Comprehensive income	$ 11,018	$ 8,501	$ 39,889	$ 25,503

Consolidated Statement of Share

Consolidated Statement of Shareholders' Equity - 6 months ended Jul. 04, 2015 - USD ($) $ in Thousands	Total	Common Stock [Member]	Additional Paid-In Capital [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive Income (Loss) [Member]
Balance at Jan. 03, 2015	$ 256,907	$ 528	$ 0	$ 256,413	$ (34)
Balance (in shares) at Jan. 03, 2015	52,798,000	52,798,000
Net income	$ 39,837	$ 0	0	39,837	0
Other comprehensive income:
Unrealized gain on available-for-sale marketable debt securities, net of tax	52	0	0	0	52
Exercise of common stock options	2,458	$ 2	2,456	0	0
Exercise of common stock options (in shares)		198,000
Tax effect from stock-based compensation	1,939	$ 0	1,939	0	0
Stock-based compensation (in shares)		52,000
Stock-based compensation	5,828	$ 1	5,827	0	0
Repurchases of common stock	(51,629)	$ (17)	(10,222)	(41,390)	0
Repurchases of common stock (in shares)		(1,634,000)
Balance at Jul. 04, 2015	$ 255,392	$ 514	$ 0	$ 254,860	$ 18
Balance (in shares) at Jul. 04, 2015	51,414,000	51,414,000

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jul. 04, 2015	Jun. 28, 2014
Cash flows from operating activities:
Net income	$ 39,837	$ 25,473
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	21,903	19,213
Stock-based compensation	5,828	2,035
Net loss on disposals and impairments of assets	184	87
Excess tax benefits from stock-based compensation	(1,945)	(720)
Deferred income taxes	(4,515)	(2,003)
Changes in operating assets and liabilities:
Accounts receivable	(825)	651
Inventories	(14,842)	(3,004)
Income taxes	4,221	(394)
Prepaid expenses and other assets	(944)	(4,355)
Accounts payable	7,879	(1,042)
Customer prepayments	(3,066)	2,695
Accrued compensation and benefits	(8,121)	9,724
Other taxes and withholding	(2,622)	(529)
Warranty liabilities	1,113	281
Other accruals and liabilities	969	1,466
Net cash provided by operating activities	45,054	49,578
Cash flows from investing activities:
Purchases of property and equipment	(38,938)	(39,766)
Investments in marketable debt securities	(19,306)	(28,405)
Proceeds from maturities of marketable debt securities	41,932	23,548
Proceeds from sales of property and equipment	41	5
Increase in restricted cash	0	(500)
Net cash used in investing activities	(16,271)	(45,118)
Cash flows from financing activities:
Repurchases of common stock	(51,629)	(21,470)
Net decrease in short-term borrowings	(7,478)	(6,192)
Proceeds from issuance of common stock	2,458	1,366
Excess tax benefits from stock-based compensation	1,945	720
Net cash used in financing activities	(54,704)	(25,576)
Net decrease in cash and cash equivalents	(25,921)	(21,116)
Cash and cash equivalents, at beginning of period	51,995	58,223
Cash and cash equivalents, at end of period	$ 26,074	$ 37,107

Basis of Presentation

Basis of Presentation	6 Months Ended
	Jul. 04, 2015
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation We prepared the condensed consolidated financial statements as of and for the three and six months ended July 4, 2015 of Select Comfort Corporation and 100%-owned subsidiaries (“Select Comfort” or the “Company”), without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (SEC) and they reflect, in the opinion of management, all normal recurring adjustments necessary to present fairly our financial position as of July 4, 2015 , and January 3, 2015 , and the consolidated results of operations and cash flows for the periods presented. Our historical and quarterly consolidated results of operations may not be indicative of the results that may be achieved for the full year or any future period. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles (GAAP) have been condensed or omitted pursuant to such rules and regulations. These condensed consolidated financial statements should be read in conjunction with our most recent audited consolidated financial statements and related notes included in our Annual Report on Form 10-K for the fiscal year ended January 3, 2015 and other recent filings with the SEC. The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of sales, expenses and income taxes during the reporting period. Predicting future events is inherently an imprecise activity and, as such, requires the use of judgment. As future events and their effects cannot be determined with precision, actual results could differ significantly from these estimates. Changes in these estimates will be reflected in the financial statements in future periods. Our critical accounting policies consist of stock-based compensation, goodwill and indefinite-lived intangible assets, warranty liabilities and revenue recognition. The condensed consolidated financial statements include the accounts of Select Comfort Corporation and our 100%-owned subsidiaries. All significant intra-entity balances and transactions have been eliminated in consolidation. New Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (FASB) issued a comprehensive new revenue recognition model that requires a company to recognize revenue to depict the transfer of goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services. This new guidance was originally effective for annual reporting periods beginning after December 15, 2016 and early adoption was not permitted. In July 2015, the FASB deferred the effective date from annual reporting periods beginning after December 15, 2016 to annual reporting periods beginning after December 15, 2017 (including interim reporting periods within those periods). Early adoption is permitted to the original effective date of annual reporting periods beginning after December 15, 2016 (including interim reporting periods within those periods). Companies may use either a full retrospective or a modified retrospective approach to adopt this new guidance. We are evaluating the effect of the new standard on our consolidated financial statements and related disclosures, and have not yet selected a transition method.

Fair Value Measurements

Fair Value Measurements	6 Months Ended
	Jul. 04, 2015
Fair Value Disclosures [Abstract]
Fair Value Measurements	Fair Value Measurements The following tables set forth by level within the fair value hierarchy, our financial assets that were accounted for at fair value on a recurring basis, according to the valuation techniques we used to determine their fair value (in thousands): July 4, 2015 Level 1 Level 2 Level 3 Total Marketable debt securities – current U.S. Treasury securities $ 15,012 $ — $ — $ 15,012 Corporate bonds — 15,059 — 15,059 U.S. Agency bonds — 15,011 — 15,011 Municipal bonds — 9,804 — 9,804 Commercial paper — 7,493 — 7,493 15,012 47,367 — 62,379 Marketable debt securities – non-current U.S. Treasury securities 7,515 — — 7,515 Corporate bonds — 12,627 — 12,627 U.S. Agency bonds — 7,530 — 7,530 Municipal bonds — 1,079 — 1,079 7,515 21,236 — 28,751 $ 22,527 $ 68,603 $ — $ 91,130 January 3, 2015 Level 1 Level 2 Level 3 Total Marketable debt securities – current U.S. Treasury securities $ 17,506 $ — $ — $ 17,506 Corporate bonds — 20,139 — 20,139 U.S. Agency bonds — 12,525 — 12,525 Commercial paper — 12,486 — 12,486 Municipal bonds — 6,953 — 6,953 17,506 52,103 — 69,609 Marketable debt securities – non-current U.S. Treasury securities 14,990 — — 14,990 Corporate bonds — 15,236 — 15,236 U.S. Agency bonds — 10,014 — 10,014 Municipal bonds — 4,201 — 4,201 14,990 29,451 — 44,441 $ 32,496 $ 81,554 $ — $ 114,050 At July 4, 2015 and January 3, 2015 , we had $1.3 million and $1.0 million , respectively, of debt and equity securities that fund our deferred compensation plan and are classified in other assets in our condensed consolidated balance sheets. We also had corresponding deferred compensation plan liabilities of $1.3 million and $1.0 million at July 4, 2015 and January 3, 2015 , respectively, which are included in other long-term liabilities in our condensed consolidated balance sheets. The majority of the debt and equity securities are Level 1 as they trade with sufficient frequency and volume to enable us to obtain pricing information on an ongoing basis. Unrealized gains/(losses) on the debt and equity securities offset those associated with the corresponding deferred compensation plan liabilities.

Investments

Investments	6 Months Ended
	Jul. 04, 2015
Investments [Abstract]
Investments	Marketable Debt Securities Investments in marketable debt securities were comprised of the following (in thousands): July 4, 2015 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Corporate bonds $ 27,700 $ 3 $ (17 ) $ 27,686 U.S. Agency bonds 22,517 24 — 22,541 U.S. Treasury securities 22,503 24 — 22,527 Municipal bonds 10,887 1 (5 ) 10,883 Commercial paper 7,494 — (1 ) 7,493 $ 91,101 $ 52 $ (23 ) $ 91,130 January 3, 2015 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Corporate bonds 35,409 2 (36 ) 35,375 U.S. Treasury securities $ 32,507 $ 12 $ (23 ) $ 32,496 U.S. Agency bonds 22,545 4 (10 ) 22,539 Commercial paper 12,487 — (1 ) 12,486 Municipal bonds 11,157 2 (5 ) 11,154 $ 114,105 $ 20 $ (75 ) $ 114,050 Maturities of marketable debt securities were as follows (in thousands): July 4, 2015 January 3, 2015 Amortized Cost Fair Value Amortized Cost Fair Value Marketable debt securities – current (due in less than one year) $ 62,359 $ 62,379 $ 69,607 $ 69,609 Marketable debt securities – non-current (due in one to two years) 28,742 28,751 44,498 44,441 $ 91,101 $ 91,130 $ 114,105 $ 114,050 During the three months ended July 4, 2015 and June 28, 2014 , $25.6 million and $13.5 million , respectively, of marketable debt securities matured and were redeemed at face value. During the six months ended July 4, 2015 and June 28, 2014 , $41.8 million and $23.5 million , respectively, of marketable debt securities matured and were redeemed at face value. Other Investments We have a minority equity investment in one of our strategic product-development partners. The carrying value of this investment at July 4, 2015 and January 3, 2015 using the cost method is $6.0 million and is included in other assets on our condensed consolidated balance sheets.

Inventories

Inventories	6 Months Ended
	Jul. 04, 2015
Inventory Disclosure [Abstract]
Inventories	Inventories Inventories consisted of the following (in thousands): July 4, January 3, Raw materials $ 9,499 $ 10,220 Work in progress 333 411 Finished goods 58,545 42,904 $ 68,377 $ 53,535

Goodwill and Intangible Assets

Goodwill and Intangible Assets	6 Months Ended
	Jul. 04, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill and Intangible Assets	Goodwill and Intangible Assets Goodwill and Indefinite-Lived Intangible Assets At both July 4, 2015 and January 3, 2015 , our condensed consolidated balance sheets included goodwill of $9.0 million and indefinite-lived trade name/trademarks of $1.4 million . Definite-Lived Intangible Assets The following table provides the gross carrying amount and related accumulated amortization of our definite-lived intangible assets (in thousands): July 4, 2015 January 3, 2015 Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Developed technologies $ 5,231 $ 1,586 $ 5,231 $ 1,342 Customer relationships 2,413 847 2,413 675 Trade names/trademarks 101 101 101 101 $ 7,745 $ 2,534 $ 7,745 $ 2,118

Credit Agreement

Credit Agreement	6 Months Ended
	Jul. 04, 2015
Debt Disclosure [Abstract]
Debt	Credit Agreement Our $20.0 million Credit Agreement (Credit Agreement) with Wells Fargo Bank, National Association, as amended, is an unsecured revolving credit facility that matures on August 31, 2016 . The Credit Agreement contains an accordion feature that allows us to increase the amount of the line from $20 million to up to $50 million in total availability, subject to lender approval. Any borrowings under the Credit Agreement will, at our request, be classified as either LIBOR Loans or Adjusted Base Rate (ABR) Loans (both as defined in the Credit Agreement). The rate of interest payable by us in respect of loans outstanding under the revolving credit facility is: (i) with respect to LIBOR Loans, the Adjusted LIBO Rate (as defined in the Credit Agreement) for the interest period then in effect, plus 1.25% ; or (ii) with respect to ABR Loans, the ABR (as defined in the Credit Agreement) then in effect for the Daily One-Month LIBO Rate (as defined in the Credit Agreement), plus 1.50% or the prime rate. We are subject to certain financial covenants under the Credit Agreement, including minimum tangible net worth, a requirement to maintain a minimum amount of cash, cash equivalents and marketable debt securities, and to maintain at the administrative agent cash, cash equivalents and marketable debt securities equal to the amount the lenders are committed to lend under the Credit Agreement. At both July 4, 2015 and January 3, 2015 , we had no borrowings and $20 million was available under the Credit Agreement. We had no outstanding letters of credit as of July 4, 2015 or January 3, 2015 .

Repurchase of Common Stock

Repurchase of Common Stock	6 Months Ended
	Jul. 04, 2015
Repurchase of Common Stock [Abstract]
Repurchase of Common Stock	Repurchase of Common Stock Repurchases of our common stock were as follows (in thousands): Three Months Ended Six Months Ended July 4, June 28, July 4, June 28, Amount repurchased under Board-approved share repurchase program $ 30,019 $ 10,011 $ 50,026 $ 20,022 Amount repurchased in connection with the vesting of employee restricted stock grants 1,135 1,223 1,603 1,448 Total amount repurchased $ 31,154 $ 11,234 $ 51,629 $ 21,470 As of July 4, 2015 , the remaining share repurchase authorization under our Board-approved share repurchase plan was $185 million . There is no expiration date governing the period over which we can repurchase shares. Any repurchased shares are constructively retired and returned to an unissued status. The cost of stock repurchases is first charged to additional paid-in capital. Once additional paid-in capital is reduced to zero, any additional amounts are charged to retained earnings.

Stock-Based Compensation

Stock-Based Compensation	6 Months Ended
	Jul. 04, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-Based Compensation	Stock-Based Compensation Stock-based compensation expense consisted of the following (in thousands): Three Months Ended Six Months Ended July 4, June 28, July 4, June 28, Options $ 672 $ 694 $ 1,316 $ 929 Restricted shares 2,374 1,449 4,512 1,106 Total stock-based compensation expense (1) 3,046 2,143 5,828 2,035 Income tax benefit 1,038 722 2,005 696 Total stock-based compensation expense, net of tax $ 2,008 $ 1,421 $ 3,823 $ 1,339 (1) The six months ended June 28, 2014 includes a $1.2 million benefit related to a change in estimated forfeitures due to employee turnover during the three months ended March 29, 2014.

Employee Benefits

Employee Benefits	6 Months Ended
	Jul. 04, 2015
Profit Sharing and 401 (k) Plan [Abstract]
Employee Benefits	Employee Benefits Under our profit sharing and 401(k) plan, eligible employees may defer up to 50% of their compensation on a pre-tax basis, subject to Internal Revenue Service limitations. Each calendar quarter, we may make a discretionary contribution equal to a percentage of the employee’s contribution. During the three months ended July 4, 2015 and June 28, 2014 , our contributions, net of forfeitures, were $0.9 million and $0.9 million , respectively. During the six months ended July 4, 2015 and June 28, 2014 , our contributions, net of forfeitures, were $2.1 million and $1.8 million , respectively.

Other Income, Net

Other Income, Net	6 Months Ended
	Jul. 04, 2015
Other Income and Expenses [Abstract]
Other Income, Net	Other Income, Net Other income, net, consisted of the following (in thousands): Three Months Ended Six Months Ended July 4, June 28, July 4, June 28, Interest income $ 143 $ 88 $ 306 $ 200 Interest expense (10 ) (10 ) (20 ) (20 ) Other income, net $ 133 $ 78 $ 286 $ 180

Net Income Per Common Share

Net Income Per Common Share	6 Months Ended
	Jul. 04, 2015
Earnings Per Share [Abstract]
Net Income per Common Share	Net Income per Common Share The components of basic and diluted net income per share are as follows (in thousands, except per share amounts): Three Months Ended Six Months Ended July 4, June 28, July 4, June 28, Net income $ 11,038 $ 8,481 $ 39,837 $ 25,473 Reconciliation of weighted-average shares outstanding: Basic weighted-average shares outstanding 51,672 53,648 52,009 53,880 Dilutive effect of stock-based awards 872 676 926 690 Diluted weighted-average shares outstanding 52,544 54,324 52,935 54,570 Net income per share – basic $ 0.21 $ 0.16 $ 0.77 $ 0.47 Net income per share – diluted $ 0.21 $ 0.16 $ 0.75 $ 0.47 Anti-dilutive stock-based awards excluded from the calculations of diluted net income per share calculations were immaterial for the periods presented.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jul. 04, 2015
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Sales Returns The activity in the sales returns liability account was as follows (in thousands): Six Months Ended July 4, June 28, Balance at beginning of year $ 15,262 $ 9,433 Additions that reduce net sales 40,076 32,923 Deductions from reserves (42,659 ) (33,162 ) Balance at end of period $ 12,679 $ 9,194 Warranty Liabilities The activity in the accrued warranty liabilities account was as follows (in thousands): Six Months Ended July 4, June 28, Balance at beginning of year $ 5,824 $ 4,153 Additions charged to costs and expenses for current-year sales 4,869 3,237 Deductions from reserves (4,177 ) (3,231 ) Changes in liability for pre-existing warranties during the current year, including expirations 421 274 Balance at end of period $ 6,937 $ 4,433 Legal Proceedings We are involved from time to time in various legal proceedings arising in the ordinary course of our business, including primarily commercial, product liability, employment and intellectual property claims. In accordance with generally accepted accounting principles in the United States, we record a liability in our consolidated financial statements with respect to any of these matters when it is both probable that a liability has been incurred and the amount of the liability can be reasonably estimated. With respect to currently pending legal proceedings, we have not established an estimated range of reasonably possible additional losses either because we believe that we have valid defenses to claims asserted against us or the proceeding has not advanced to a stage of discovery that would enable us to establish an estimate. We currently do not expect the outcome of these matters to have a material effect on our consolidated results of operations, financial position or cash flows. Litigation, however, is inherently unpredictable, and it is possible that the ultimate outcome of one or more claims asserted against us could adversely impact our consolidated results of operations, financial position or cash flows. We expense legal costs as incurred.

Basis of Presentation (Policies

Basis of Presentation (Policies)	6 Months Ended
	Jul. 04, 2015
Accounting Policies [Abstract]
Business and Basis of Presentation, Policy	We prepared the condensed consolidated financial statements as of and for the three and six months ended July 4, 2015 of Select Comfort Corporation and 100%-owned subsidiaries (“Select Comfort” or the “Company”), without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (SEC) and they reflect, in the opinion of management, all normal recurring adjustments necessary to present fairly our financial position as of July 4, 2015 , and January 3, 2015 , and the consolidated results of operations and cash flows for the periods presented. Our historical and quarterly consolidated results of operations may not be indicative of the results that may be achieved for the full year or any future period. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles (GAAP) have been condensed or omitted pursuant to such rules and regulations. These condensed consolidated financial statements should be read in conjunction with our most recent audited consolidated financial statements and related notes included in our Annual Report on Form 10-K for the fiscal year ended January 3, 2015 and other recent filings with the SEC.
Use of Estimates, Policy	The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of sales, expenses and income taxes during the reporting period. Predicting future events is inherently an imprecise activity and, as such, requires the use of judgment. As future events and their effects cannot be determined with precision, actual results could differ significantly from these estimates. Changes in these estimates will be reflected in the financial statements in future periods. Our critical accounting policies consist of stock-based compensation, goodwill and indefinite-lived intangible assets, warranty liabilities and revenue recognition.
Consolidation, Policy	The condensed consolidated financial statements include the accounts of Select Comfort Corporation and our 100%-owned subsidiaries. All significant intra-entity balances and transactions have been eliminated in consolidation.
New Accounting Pronouncements, Policy	In May 2014, the Financial Accounting Standards Board (FASB) issued a comprehensive new revenue recognition model that requires a company to recognize revenue to depict the transfer of goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services. This new guidance was originally effective for annual reporting periods beginning after December 15, 2016 and early adoption was not permitted. In July 2015, the FASB deferred the effective date from annual reporting periods beginning after December 15, 2016 to annual reporting periods beginning after December 15, 2017 (including interim reporting periods within those periods). Early adoption is permitted to the original effective date of annual reporting periods beginning after December 15, 2016 (including interim reporting periods within those periods). Companies may use either a full retrospective or a modified retrospective approach to adopt this new guidance. We are evaluating the effect of the new standard on our consolidated financial statements and related disclosures, and have not yet selected a transition method.
Stockholders' Equity, Policy	There is no expiration date governing the period over which we can repurchase shares. Any repurchased shares are constructively retired and returned to an unissued status. The cost of stock repurchases is first charged to additional paid-in capital. Once additional paid-in capital is reduced to zero, any additional amounts are charged to retained earnings.

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	6 Months Ended
	Jul. 04, 2015
Fair Value Disclosures [Abstract]
Assets and Liabilities that are Measured at Fair Value on a Recurring Basis	The following tables set forth by level within the fair value hierarchy, our financial assets that were accounted for at fair value on a recurring basis, according to the valuation techniques we used to determine their fair value (in thousands): July 4, 2015 Level 1 Level 2 Level 3 Total Marketable debt securities – current U.S. Treasury securities $ 15,012 $ — $ — $ 15,012 Corporate bonds — 15,059 — 15,059 U.S. Agency bonds — 15,011 — 15,011 Municipal bonds — 9,804 — 9,804 Commercial paper — 7,493 — 7,493 15,012 47,367 — 62,379 Marketable debt securities – non-current U.S. Treasury securities 7,515 — — 7,515 Corporate bonds — 12,627 — 12,627 U.S. Agency bonds — 7,530 — 7,530 Municipal bonds — 1,079 — 1,079 7,515 21,236 — 28,751 $ 22,527 $ 68,603 $ — $ 91,130 January 3, 2015 Level 1 Level 2 Level 3 Total Marketable debt securities – current U.S. Treasury securities $ 17,506 $ — $ — $ 17,506 Corporate bonds — 20,139 — 20,139 U.S. Agency bonds — 12,525 — 12,525 Commercial paper — 12,486 — 12,486 Municipal bonds — 6,953 — 6,953 17,506 52,103 — 69,609 Marketable debt securities – non-current U.S. Treasury securities 14,990 — — 14,990 Corporate bonds — 15,236 — 15,236 U.S. Agency bonds — 10,014 — 10,014 Municipal bonds — 4,201 — 4,201 14,990 29,451 — 44,441 $ 32,496 $ 81,554 $ — $ 114,050

Investments (Tables)

Investments (Tables)	6 Months Ended
	Jul. 04, 2015
Investments [Abstract]
Investments in marketable debt securities	Investments in marketable debt securities were comprised of the following (in thousands): July 4, 2015 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Corporate bonds $ 27,700 $ 3 $ (17 ) $ 27,686 U.S. Agency bonds 22,517 24 — 22,541 U.S. Treasury securities 22,503 24 — 22,527 Municipal bonds 10,887 1 (5 ) 10,883 Commercial paper 7,494 — (1 ) 7,493 $ 91,101 $ 52 $ (23 ) $ 91,130 January 3, 2015 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Corporate bonds 35,409 2 (36 ) 35,375 U.S. Treasury securities $ 32,507 $ 12 $ (23 ) $ 32,496 U.S. Agency bonds 22,545 4 (10 ) 22,539 Commercial paper 12,487 — (1 ) 12,486 Municipal bonds 11,157 2 (5 ) 11,154 $ 114,105 $ 20 $ (75 ) $ 114,050
Maturities of marketable debt securities	Maturities of marketable debt securities were as follows (in thousands): July 4, 2015 January 3, 2015 Amortized Cost Fair Value Amortized Cost Fair Value Marketable debt securities – current (due in less than one year) $ 62,359 $ 62,379 $ 69,607 $ 69,609 Marketable debt securities – non-current (due in one to two years) 28,742 28,751 44,498 44,441 $ 91,101 $ 91,130 $ 114,105 $ 114,050

Inventories (Tables)

Inventories (Tables)	6 Months Ended
	Jul. 04, 2015
Inventory Disclosure [Abstract]
Inventories	Inventories consisted of the following (in thousands): July 4, January 3, Raw materials $ 9,499 $ 10,220 Work in progress 333 411 Finished goods 58,545 42,904 $ 68,377 $ 53,535

Goodwill and Intangible Assets

Goodwill and Intangible Assets (Tables)	6 Months Ended
	Jul. 04, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill and Indefinite-Lived Intangible Assets
Definite-Lived Intangible Assets	The following table provides the gross carrying amount and related accumulated amortization of our definite-lived intangible assets (in thousands): July 4, 2015 January 3, 2015 Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Developed technologies $ 5,231 $ 1,586 $ 5,231 $ 1,342 Customer relationships 2,413 847 2,413 675 Trade names/trademarks 101 101 101 101 $ 7,745 $ 2,534 $ 7,745 $ 2,118

Repurchase of Common Stock (Tab

Repurchase of Common Stock (Tables)	6 Months Ended
	Jul. 04, 2015
Repurchase of Common Stock [Abstract]
Repurchase of Common Stock	Repurchases of our common stock were as follows (in thousands): Three Months Ended Six Months Ended July 4, June 28, July 4, June 28, Amount repurchased under Board-approved share repurchase program $ 30,019 $ 10,011 $ 50,026 $ 20,022 Amount repurchased in connection with the vesting of employee restricted stock grants 1,135 1,223 1,603 1,448 Total amount repurchased $ 31,154 $ 11,234 $ 51,629 $ 21,470

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	6 Months Ended
	Jul. 04, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-Based Compensation	Stock-based compensation expense consisted of the following (in thousands): Three Months Ended Six Months Ended July 4, June 28, July 4, June 28, Options $ 672 $ 694 $ 1,316 $ 929 Restricted shares 2,374 1,449 4,512 1,106 Total stock-based compensation expense (1) 3,046 2,143 5,828 2,035 Income tax benefit 1,038 722 2,005 696 Total stock-based compensation expense, net of tax $ 2,008 $ 1,421 $ 3,823 $ 1,339 (1) The six months ended June 28, 2014 includes a $1.2 million benefit related to a change in estimated forfeitures due to employee turnover during the three months ended March 29, 2014.

Other Income, Net (Tables)

Other Income, Net (Tables)	6 Months Ended
	Jul. 04, 2015
Other Income and Expenses [Abstract]
Other Income, Net	Other income, net, consisted of the following (in thousands): Three Months Ended Six Months Ended July 4, June 28, July 4, June 28, Interest income $ 143 $ 88 $ 306 $ 200 Interest expense (10 ) (10 ) (20 ) (20 ) Other income, net $ 133 $ 78 $ 286 $ 180

Net Income Per Common Share (Ta

Net Income Per Common Share (Tables)	6 Months Ended
	Jul. 04, 2015
Earnings Per Share [Abstract]
Net Income per Common Share	The components of basic and diluted net income per share are as follows (in thousands, except per share amounts): Three Months Ended Six Months Ended July 4, June 28, July 4, June 28, Net income $ 11,038 $ 8,481 $ 39,837 $ 25,473 Reconciliation of weighted-average shares outstanding: Basic weighted-average shares outstanding 51,672 53,648 52,009 53,880 Dilutive effect of stock-based awards 872 676 926 690 Diluted weighted-average shares outstanding 52,544 54,324 52,935 54,570 Net income per share – basic $ 0.21 $ 0.16 $ 0.77 $ 0.47 Net income per share – diluted $ 0.21 $ 0.16 $ 0.75 $ 0.47

Commitments and Contingencies (

Commitments and Contingencies (Tables)	6 Months Ended
	Jul. 04, 2015
Commitments and Contingencies Disclosure [Abstract]
Sales Returns	The activity in the sales returns liability account was as follows (in thousands): Six Months Ended July 4, June 28, Balance at beginning of year $ 15,262 $ 9,433 Additions that reduce net sales 40,076 32,923 Deductions from reserves (42,659 ) (33,162 ) Balance at end of period $ 12,679 $ 9,194
Warranty Liabilities	The activity in the accrued warranty liabilities account was as follows (in thousands): Six Months Ended July 4, June 28, Balance at beginning of year $ 5,824 $ 4,153 Additions charged to costs and expenses for current-year sales 4,869 3,237 Deductions from reserves (4,177 ) (3,231 ) Changes in liability for pre-existing warranties during the current year, including expirations 421 274 Balance at end of period $ 6,937 $ 4,433

Fair Value Measurements (Detail

Fair Value Measurements (Details) - Recurring [Member] - USD ($) $ in Thousands	Jul. 04, 2015	Jan. 03, 2015
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable debt securities - current	$ 62,379	$ 69,609
Marketable debt securities - noncurrent	28,751	44,441
Marketable debt securities	91,130	114,050
Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable debt securities - current	15,012	17,506
Marketable debt securities - noncurrent	7,515	14,990
Marketable debt securities	22,527	32,496
Deferred compensation plan liability	1,300	1,000
Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable debt securities - current	47,367	52,103
Marketable debt securities - noncurrent	21,236	29,451
Marketable debt securities	68,603	81,554
Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable debt securities - current	0	0
Marketable debt securities - noncurrent	0	0
Marketable debt securities	0	0
Available-for-sale Securities [Member] | Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities assets funding the deferred compensation plan	1,300	1,000
US Treasury Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable debt securities - current	15,012	17,506
Marketable debt securities - noncurrent	7,515	14,990
US Treasury Securities [Member] | Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable debt securities - current	15,012	17,506
Marketable debt securities - noncurrent	7,515	14,990
US Treasury Securities [Member] | Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable debt securities - current	0	0
Marketable debt securities - noncurrent	0	0
US Treasury Securities [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable debt securities - current	0	0
Marketable debt securities - noncurrent	0	0
Corporate bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable debt securities - current	15,059	20,139
Marketable debt securities - noncurrent	12,627	15,236
Corporate bonds [Member] | Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable debt securities - current	0	0
Marketable debt securities - noncurrent	0	0
Corporate bonds [Member] | Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable debt securities - current	15,059	20,139
Marketable debt securities - noncurrent	12,627	15,236
Corporate bonds [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable debt securities - current	0	0
Marketable debt securities - noncurrent	0	0
U.S. Agency bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable debt securities - current	15,011	12,525
Marketable debt securities - noncurrent	7,530	10,014
U.S. Agency bonds [Member] | Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable debt securities - current	0	0
Marketable debt securities - noncurrent	0	0
U.S. Agency bonds [Member] | Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable debt securities - current	15,011	12,525
Marketable debt securities - noncurrent	7,530	10,014
U.S. Agency bonds [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable debt securities - current	0	0
Marketable debt securities - noncurrent	0	0
Municipal bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable debt securities - current	9,804	6,953
Marketable debt securities - noncurrent	1,079	4,201
Municipal bonds [Member] | Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable debt securities - current	0	0
Marketable debt securities - noncurrent	0	0
Municipal bonds [Member] | Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable debt securities - current	9,804	6,953
Marketable debt securities - noncurrent	1,079	4,201
Municipal bonds [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable debt securities - current	0	0
Marketable debt securities - noncurrent	0	0
Commercial Paper, Not Included with Cash and Cash Equivalents [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable debt securities - current	7,493	12,486
Commercial Paper, Not Included with Cash and Cash Equivalents [Member] | Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable debt securities - current	0	0
Commercial Paper, Not Included with Cash and Cash Equivalents [Member] | Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable debt securities - current	7,493	12,486
Commercial Paper, Not Included with Cash and Cash Equivalents [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable debt securities - current	$ 0	$ 0

Investments - Marketable Debt S

Investments - Marketable Debt Securities (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 04, 2015	Jun. 28, 2014	Jul. 04, 2015	Jun. 28, 2014	Jan. 03, 2015
Schedule of Available-for-sale Securities [Line Items]
Proceeds from Sale and Maturity of Available-for-sale Securities	$ 25,600	$ 13,500	$ 41,800	$ 23,500
Investments of marketable debt securities [Abstract]
Marketable debt securities Total Amortized Cost	91,101		91,101		$ 114,105
Unrealized gains	52		52		20
Unrealized losses	(23)		(23)		(75)
Fair value	91,130		91,130		114,050
Amortized Cost [Abstract]
Marketable debt securities - current (due in less than one year)	62,359		62,359		69,607
Marketable debt securities - non-current (due in one to two years)	28,742		28,742		44,498
Marketable debt securities Total Amortized Cost	91,101		91,101		114,105
Fair Value [Abstract]
Marketable debt securities - current (due in less than one year)	62,379		62,379		69,609
Marketable debt securities - non-current (due in one to two years)	28,751		28,751		44,441
Fair value	91,130		91,130		114,050
U.S. Treasury securities [Member]
Investments of marketable debt securities [Abstract]
Marketable debt securities Total Amortized Cost	22,503		22,503		32,507
Unrealized gains	24		24		12
Unrealized losses	0		0		(23)
Fair value	22,527		22,527		32,496
Amortized Cost [Abstract]
Marketable debt securities Total Amortized Cost	22,503		22,503		32,507
Fair Value [Abstract]
Fair value	22,527		22,527		32,496
Corporate bonds [Member]
Investments of marketable debt securities [Abstract]
Marketable debt securities Total Amortized Cost	27,700		27,700		35,409
Unrealized gains	3		3		2
Unrealized losses	(17)		(17)		(36)
Fair value	27,686		27,686		35,375
Amortized Cost [Abstract]
Marketable debt securities Total Amortized Cost	27,700		27,700		35,409
Fair Value [Abstract]
Fair value	27,686		27,686		35,375
U.S. Agency bonds [Member]
Investments of marketable debt securities [Abstract]
Marketable debt securities Total Amortized Cost	22,517		22,517		22,545
Unrealized gains	24		24		4
Unrealized losses	0		0		(10)
Fair value	22,541		22,541		22,539
Amortized Cost [Abstract]
Marketable debt securities Total Amortized Cost	22,517		22,517		22,545
Fair Value [Abstract]
Fair value	22,541		22,541		22,539
Commercial Paper, Not Included with Cash and Cash Equivalents [Member]
Investments of marketable debt securities [Abstract]
Marketable debt securities Total Amortized Cost	7,494		7,494		12,487
Unrealized gains	0		0		0
Unrealized losses	(1)		(1)		(1)
Fair value	7,493		7,493		12,486
Amortized Cost [Abstract]
Marketable debt securities Total Amortized Cost	7,494		7,494		12,487
Fair Value [Abstract]
Fair value	7,493		7,493		12,486
Municipal bonds [Member]
Investments of marketable debt securities [Abstract]
Marketable debt securities Total Amortized Cost	10,887		10,887		11,157
Unrealized gains	1		1		2
Unrealized losses	(5)		(5)		(5)
Fair value	10,883		10,883		11,154
Amortized Cost [Abstract]
Marketable debt securities Total Amortized Cost	10,887		10,887		11,157
Fair Value [Abstract]
Fair value	$ 10,883		$ 10,883		$ 11,154

Investments - Other Investments

Investments - Other Investments (Details) - USD ($) $ in Millions	Jul. 04, 2015	Jan. 03, 2015
Other Noncurrent Assets [Member]
Cost Method Investments	$ 6	$ 6

Inventories (Details)

Inventories (Details) - USD ($) $ in Thousands	Jul. 04, 2015	Jan. 03, 2015
Inventory Disclosure [Abstract]
Raw materials	$ 9,499	$ 10,220
Work in progress	333	411
Finished goods	58,545	42,904
Inventories	$ 68,377	$ 53,535

Goodwill and Intangible Asset34

Goodwill and Intangible Assets Goodwill and Indefinite-Lived Intangible Assets (Details) - USD ($) $ in Thousands	Jul. 04, 2015	Jan. 03, 2015
Goodwill [Line Items]
Goodwill	$ 9,000	$ 9,000
Indefinite-Lived Intangible Assets (Excluding Goodwill)	$ 1,400	$ 1,400

Goodwill and Intangible Asset35

Goodwill and Intangible Assets Finite-Lived Intangible Assets (Details) - USD ($) $ in Thousands	Jul. 04, 2015	Jan. 03, 2015
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets	$ 7,745	$ 7,745
Finite-Lived Intangible Assets, Accumulated Amortization	2,534	2,118
Developed technologies [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets	5,231	5,231
Finite-Lived Intangible Assets, Accumulated Amortization	1,586	1,342
Customer Relationships [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets	2,413	2,413
Finite-Lived Intangible Assets, Accumulated Amortization	847	675
Trademarks and Trade Names [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets	101	101
Finite-Lived Intangible Assets, Accumulated Amortization	$ 101	$ 101

Credit Agreement (Details)

Credit Agreement (Details) - Amended Credit Facility, Wells Fargo Bank [Member] - USD ($)	6 Months Ended
	Jul. 04, 2015	Jan. 03, 2015
Line of Credit Facility [Line Items]
Current borrowing capacity	$ 20,000,000
Line of Credit Facility Amended Expiration Date	Aug. 31, 2016
Maximum borrowing capacity	$ 50,000,000
Adjusted LIBO Rate basis (in hundredths)	1.25%
Adjusted Base Rate - Daily One-Month LIBO Rate basis (in hundredths)	1.50%
Available remaining borrowing capacity	$ 20,000,000	$ 20,000,000
Outstanding letters of credit	$ 0	$ 0

Repurchase of Common Stock (Det

Repurchase of Common Stock (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 04, 2015	Jun. 28, 2014	Jul. 04, 2015	Jun. 28, 2014
Repurchase of Common Stock [Abstract]
Amount repurchased under Board-approved share repurchase program	$ 30,019	$ 10,011	$ 50,026	$ 20,022
Stock Repurchase Acquired Through Tax Withholding Restricted Stock	1,135	1,223	1,603	1,448
Total amount repurchased	31,154	$ 11,234	51,629	$ 21,470
Remaining Authorized Amount, Stock Repurchase Program	$ 185,000		$ 185,000

Stock-Based Compensation (Detai

Stock-Based Compensation (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 04, 2015	Jun. 28, 2014	Jul. 04, 2015	Jun. 28, 2014
Total stock-based compensation expense	$ 3,046	$ 2,143	$ 5,828	$ 2,035	[1]
Income tax benefit	1,038	722	2,005	696
Total stock-based compensation expense, net of tax	2,008	1,421	3,823	1,339
Employee Service Share-based Compensation, Expense (Benefit) of Change in Forfeiture Rate				(1,200)
Stock Options [Member]
Total stock-based compensation expense	672	694	1,316	929
Time-Based, Performance-Based and Market-Based Stock Awards [Member]
Total stock-based compensation expense	$ 2,374	$ 1,449	$ 4,512	$ 1,106
[1]	The six months ended June 28, 2014 includes a $1.2 million benefit related to a change in estimated forfeitures due to employee turnover during the three months ended March 29, 2014.

Employee Benefits (Details)

Employee Benefits (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jul. 04, 2015	Jun. 28, 2014	Jul. 04, 2015	Jun. 28, 2014
Profit Sharing and 401 (k) Plan [Abstract]
Employee compensation deferral (in hundredths)			50.00%
Employer contributions	$ 0.9	$ 0.9	$ 2.1	$ 1.8

Other Income, Net (Details)

Other Income, Net (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 04, 2015	Jun. 28, 2014	Jul. 04, 2015	Jun. 28, 2014
Other Income and Expenses [Abstract]
Interest income	$ 143	$ 88	$ 306	$ 200
Interest expense	(10)	(10)	(20)	(20)
Other income, net	$ 133	$ 78	$ 286	$ 180

Net Income per Common Share (De

Net Income per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 04, 2015	Jun. 28, 2014	Jul. 04, 2015	Jun. 28, 2014
Net Income per Common Share [Abstract]
Net income	$ 11,038	$ 8,481	$ 39,837	$ 25,473
Basic weighted-average shares outstanding	51,672,000	53,648,000	52,009,000	53,880,000
Effect of dilutive securities	872,000	676,000	926,000	690,000
Diluted weighted-average shares outstanding	52,544,000	54,324,000	52,935,000	54,570,000
Net income per share – basic (in USD per share)	$ 0.21	$ 0.16	$ 0.77	$ 0.47
Net income per share – diluted (in USD per share)	$ 0.21	$ 0.16	$ 0.75	$ 0.47

Commitments and Contingencies S

Commitments and Contingencies Sales Return Liability (Details) - USD ($) $ in Thousands	6 Months Ended
	Jul. 04, 2015	Jun. 28, 2014
Sales return liability [Roll Forward]
Balance at beginning of year	$ 15,262	$ 9,433
Additions that reduce net sales	40,076	32,923
Deductions from reserves	(42,659)	(33,162)
Balance at end of period	$ 12,679	$ 9,194

Commitments and Contingencies W

Commitments and Contingencies Warranty Liabilities (Details) - USD ($) $ in Thousands	6 Months Ended
	Jul. 04, 2015	Jun. 28, 2014
Warranty Liabilities [Roll Forward]
Balance at beginning of year	$ 5,824	$ 4,153
Additions charged to costs and expenses for current-year sales	4,869	3,237
Deductions from reserves	(4,177)	(3,231)
Changes in liability for pre-existing warranties during the current year, including expirations	421	274
Balance at end of period	$ 6,937	$ 4,433