Sleep Number (SNBR) 10-Q 31 Oct 16 2016 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information	9 Months Ended
	Oct. 01, 2016shares
Document and Entity Information [Abstract]
Entity Registrant Name	SELECT COMFORT CORP
Entity Central Index Key	827,187
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Document Type	10-Q
Document Period End Date	Oct. 1, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q3
Amendment Flag	false
Entity Common Stock, Shares Outstanding	44,941,000

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Oct. 01, 2016	Jan. 02, 2016
Current assets:
Cash and cash equivalents	$ 45,383	$ 20,994
Marketable debt securities – current	5,963	6,567
Accounts receivable, net of allowance for doubtful accounts of $1,276 and $1,039, respectively	23,731	29,002
Inventories	70,609	86,600
Income taxes receivable	0	15,284
Prepaid expenses	11,983	10,207
Deferred income taxes	15,537	15,535
Other current assets	17,525	13,737
Total current assets	190,731	197,926
Non-current assets:
Marketable debt securities – non-current	0	8,553
Property and equipment, net	203,660	204,376
Goodwill and intangible assets, net	81,448	83,344
Other assets	27,156	19,197
Total assets	502,995	513,396
Current liabilities:
Accounts payable	106,868	103,941
Customer prepayments	28,348	51,473
Accrued sales returns	18,038	20,562
Compensation and benefits	28,876	15,670
Taxes and withholding	33,234	9,856
Other current liabilities	29,552	23,447
Total current liabilities	244,916	224,949
Non-current liabilities:
Deferred income taxes	11,837	12,499
Other long-term liabilities	69,730	53,609
Total liabilities	326,483	291,057
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, 44,941 and 49,402 shares issued and outstanding, respectively	449	494
Additional paid-in capital	0	0
Retained earnings	176,063	221,859
Accumulated other comprehensive loss	0	(14)
Total shareholders’ equity	176,512	222,339
Total liabilities and shareholders’ equity	$ 502,995	$ 513,396

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Oct. 01, 2016	Jan. 02, 2016
Current assets:
Accounts receivable, net of allowance for doubtful accounts	$ 1,276	$ 1,039
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)	44,941,000	49,402,000
Common stock, shares outstanding (in shares)	44,491,000	49,402,000

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 01, 2016	Oct. 03, 2015	Oct. 01, 2016	Oct. 03, 2015
Income Statement [Abstract]
Net sales	$ 367,988	$ 373,919	$ 997,846	$ 999,017
Cost of sales	135,645	140,283	385,168	379,009
Gross profit	232,343	233,636	612,678	620,008
Operating expenses:
Sales and marketing	158,024	156,899	443,477	424,029
General and administrative	28,278	27,817	86,202	79,951
Research and development	6,997	3,521	21,661	10,275
Total operating expenses	193,299	188,237	551,340	514,255
Operating income	39,044	45,399	61,338	105,753
Other (expense) income, net	(255)	78	(581)	364
Income before income taxes	38,789	45,477	60,757	106,117
Income tax expense	13,044	13,623	20,627	34,426
Net income	$ 25,745	$ 31,854	$ 40,130	$ 71,691
Basic net income per share:
Net income per share – basic	$ 0.56	$ 0.63	$ 0.86	$ 1.39
Weighted-average shares – basic	45,621,000	50,945,000	46,705,000	51,654,000
Diluted net income per share:
Net income per share – diluted	$ 0.56	$ 0.62	$ 0.85	$ 1.36
Weighted-average shares – diluted	46,350,000	51,701,000	47,413,000	52,524,000

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 01, 2016	Oct. 03, 2015	Oct. 01, 2016	Oct. 03, 2015
Statement of Comprehensive Income [Abstract]
Net income	$ 25,745	$ 31,854	$ 40,130	$ 71,691
Other comprehensive (loss) income – unrealized (loss) gain on available-for-sale marketable debt securities, net of income tax	0	(11)	14	41
Comprehensive income	$ 25,745	$ 31,843	$ 40,144	$ 71,732

Consolidated Statement of Share

Consolidated Statement of Shareholders' Equity - 9 months ended Oct. 01, 2016 - USD ($) $ in Thousands	Total	Common Stock [Member]	Additional Paid-In Capital [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive Income (Loss) [Member]
Balance (in shares) at Jan. 02, 2016	49,402,000	49,402,000
Balance at Jan. 02, 2016	$ 222,339	$ 494	$ 0	$ 221,859	$ (14)
Net income	40,130	0	0	40,130	0
Other comprehensive income:
Unrealized gain on available-for-sale marketable debt securities, net of tax	14	$ 0	0	0	14
Exercise of common stock options (in shares)		173,000
Exercise of common stock options	1,949	$ 1	1,948	0	0
Tax effect from stock-based compensation	(782)	$ 0	(782)	0	0
Stock-based compensation (in shares)		11,000
Stock-based compensation	9,272	$ 0	9,272	0	0
Repurchases of common stock (in shares)		(4,645,000)
Repurchases of common stock	$ (96,410)	$ (46)	(10,438)	(85,926)	0
Balance (in shares) at Oct. 01, 2016	44,491,000	44,941,000
Balance at Oct. 01, 2016	$ 176,512	$ 449	$ 0	$ 176,063	$ 0

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Oct. 01, 2016	Oct. 03, 2015
Cash flows from operating activities:
Net income	$ 40,130	$ 71,691
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	42,555	33,694
Stock-based compensation	9,272	8,952
Net loss on disposals and impairments of assets	9	202
Excess tax benefits from stock-based compensation	(516)	(1,991)
Deferred income taxes	(673)	(5,633)
Gain on sale of non-marketable equity securities	0	(6,891)
Changes in operating assets and liabilities, net of effect of acquisition:
Accounts receivable	5,271	(6,543)
Inventories	15,991	(24,120)
Income taxes	30,386	13,433
Prepaid expenses and other assets	(3,458)	4,756
Accounts payable	(1,043)	24,623
Customer prepayments	(23,125)	(3,351)
Accrued compensation and benefits	12,441	(97)
Other taxes and withholding	7,494	3,569
Other accruals and liabilities	10,527	19,293
Net Cash Provided by (Used in) Operating Activities	145,261	131,587
Cash flows from investing activities:
Purchases of property and equipment	(38,769)	(61,435)
Proceeds from marketable debt securities	15,090	101,087
Investments in marketable debt securities	(5,968)	(29,299)
Proceeds from sales of property and equipment	67	41
Proceeds from non-marketable equity securities	0	(12,891)
Acquisition of business	0	70,018
Net cash used in investing activities	(29,580)	(46,733)
Repurchases of common stock
Repurchases of common stock	(96,410)	(70,300)
Net increase in short-term borrowings	3,062	2,119
Proceeds from issuance of common stock	1,949	2,658
Excess tax benefits from stock-based compensation	516	1,991
Debt issuance costs	(409)	(639)
Net cash used in financing activities	(91,292)	(64,171)
Cash and cash equivalents, at beginning of period	24,389	20,683
Cash and cash equivalents, at beginning of period	20,994	51,995
Cash and cash equivalents, at end of period	$ 45,383	$ 72,678

Basis of Presentation

Basis of Presentation	9 Months Ended
	Oct. 01, 2016
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation We prepared the condensed consolidated financial statements as of and for the three and nine months ended October 1, 2016 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 October 1, 2016 , and January 2, 2016 , 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 2, 2016 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 condensed 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 fiscal years beginning after December 15, 2016 and early adoption was not permitted. In July 2015, the FASB deferred the effective date from fiscal years beginning after December 15, 2016 to fiscal years beginning after December 15, 2017 (including interim reporting periods within those fiscal years). Early adoption is permitted to the original effective date of fiscal years beginning after December 15, 2016 (including interim reporting periods within those fiscal years). 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. In November 2015, the FASB issued new guidance related to classification of deferred taxes. The new guidance requires that deferred tax liabilities and assets be classified as non-current on the balance sheet. It is effective for interim and annual periods beginning after December 15, 2016, but early adoption is permitted. The adoption is not expected to have a material impact on our consolidated results of operations, cash flows or financial position. In February 2016, the FASB issued new guidance on accounting for leases and generally requires most leases to be recognized on the balance sheet. This new guidance is effective for reporting periods beginning after December 15, 2018, with early adoption permitted. The provisions of this new guidance are to be applied using a modified retrospective approach, with elective reliefs, which requires application of the new guidance for all periods presented. We are evaluating the effect of the new standard on our consolidated financial statements and related disclosures. In March 2016, the FASB issued new guidance on the accounting for, and disclosure of, stock-based compensation which will be effective for us beginning in 2017. The new guidance is intended to simplify several aspects of the accounting for stock-based compensation arrangements, including the income tax impact, forfeitures and classification on the statement of cash flows. Under the current guidance, excess tax benefits and deficiencies have been recognized in additional paid-in capital in the consolidated balance sheets. Upon adoption of the new guidance, these excess tax benefits or deficiencies are required to be recognized as discrete adjustments to income tax expense in the consolidated statements of operations. We will adopt the new guidance on a prospective basis and these discrete adjustments could have a material impact on income tax expense and net income.

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Oct. 01, 2016
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 at October 1, 2016 and January 2, 2016, 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): October 1, 2016 Level 1 Level 2 Level 3 Total Marketable debt securities – current Corporate bonds $ — $ 3,212 $ — $ 3,212 U.S. Treasury securities 2,004 — — 2,004 Commercial paper — 747 — 747 $ 2,004 $ 3,959 $ — $ 5,963 January 2, 2016 Level 1 Level 2 Level 3 Total Marketable debt securities – current Municipal bonds $ — $ 4,055 $ — $ 4,055 Corporate bonds — 2,512 — 2,512 — 6,567 — 6,567 Marketable debt securities – non-current Corporate bonds — 5,001 — 5,001 U.S. Agency bonds — 2,496 — 2,496 Municipal bonds — 1,056 — 1,056 — 8,553 — 8,553 $ — $ 15,120 $ — $ 15,120 At October 1, 2016 and January 2, 2016 , we had $2.3 million and $1.6 million , respectively, of debt and equity securities that fund our deferred compensation plan and are classified in other assets. We also had corresponding deferred compensation plan liabilities of $2.3 million and $1.6 million at October 1, 2016 and January 2, 2016 , respectively, which are included in other long-term liabilities. 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.

Marketable Debt Securities

Marketable Debt Securities	9 Months Ended
	Oct. 01, 2016
Investments [Abstract]
Investments	Marketable Debt Securities The following tables set forth our investments in marketable debt securities at October 1, 2016 and January 2, 2016 (in thousands): October 1, 2016 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Corporate bonds $ 3,212 $ — $ — $ 3,212 U.S. Treasury securities 2,004 — — 2,004 Commercial paper 747 — — 747 $ 5,963 $ — $ — $ 5,963 January 2, 2016 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Corporate bonds $ 7,532 $ — $ (19 ) $ 7,513 Municipal bonds 5,114 — (3 ) 5,111 U.S. Agency bonds 2,497 — (1 ) 2,496 $ 15,143 $ — $ (23 ) $ 15,120 Maturities of marketable debt securities were as follows (in thousands): October 1, 2016 January 2, 2016 Amortized Fair Amortized Cost Fair Value Marketable debt securities – current (due in less than one year) $ 5,963 $ 5,963 $ 6,575 $ 6,567 Marketable debt securities – non-current (due in one to two years) — — 8,568 8,553 $ 5,963 $ 5,963 $ 15,143 $ 15,120 During the nine months ended October 1, 2016 and October 3, 2015 , we received proceeds of $15.1 million and $101.0 million , respectively, from marketable debt securities. During the three months ended October 3, 2015 , we received proceeds of $59.2 million from marketable debt securities. There were no proceeds from marketable debt securities for the three months ended October 1, 2016 .

Inventories

Inventories	9 Months Ended
	Oct. 01, 2016
Inventory Disclosure [Abstract]
Inventories	Inventories Inventories consisted of the following (in thousands): October 1, January 2, Raw materials $ 6,476 $ 9,349 Work in progress 48 48 Finished goods 64,085 77,203 $ 70,609 $ 86,600

Goodwill and Intangible Assets

Goodwill and Intangible Assets	9 Months Ended
	Oct. 01, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill and Intangible Assets	Goodwill and Intangible Assets Acquisition In September 2015, we completed the acquisition of BAM Labs, Inc. (now operating as SleepIQ LABS), the leading provider of biometric sensor and sleep monitoring for data-driven health and wellness. Prior to September 2015, we held a $6.0 million minority equity investment in BAM Labs, Inc. based on the cost method. In connection with the acquisition, our equity investment was remeasured to a fair value of $12.9 million resulting in a $3.5 million gain net of expenses, including $3.4 million of acquisition-related expenses. We acquired the remaining capital stock of BAM Labs, Inc. for $57.1 million for a total enterprise value of $70.0 million . The acquisition of BAMS Labs, Inc. did not have a significant impact on our consolidated results of operations, operating cash flows or financial position. Goodwill and Indefinite-Lived Intangible Assets The following is a roll forward of goodwill and indefinite-lived trade name/trademarks (in thousands): Nine Months Ended Nine Months Ended October 1, 2016 October 3, 2015 Goodwill Indefinite-Lived Goodwill Indefinite-Lived Beginning balance $ 64,046 $ 1,396 $ 8,963 $ 1,396 SleepIQ LABS — — 56,201 — Ending balance $ 64,046 $ 1,396 $ 65,164 $ 1,396 Definite-Lived Intangible Assets The following table provides the gross carrying amount and related accumulated amortization of our definite-lived intangible assets (in thousands): October 1, 2016 January 2, 2016 Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Developed technologies $ 18,851 $ 3,980 $ 18,851 $ 2,342 Customer relationships 2,413 1,278 2,413 1,020 Trade names/trademarks 101 101 101 101 $ 21,365 $ 5,359 $ 21,365 $ 3,463 Amortization expense for the three months ended October 1, 2016 and October 3, 2015 , was $0.6 million and $0.3 million , respectively. Amortization expense for the nine months ended October 1, 2016 and October 3, 2015 , was $1.9 million and $0.7 million , respectively.

Credit Agreement

Credit Agreement	9 Months Ended
	Oct. 01, 2016
Debt Disclosure [Abstract]
Debt	Credit Agreement Our revolving credit facility, as amended, has a net aggregate availability of $150 million . The credit facility is for general corporate purposes and is utilized to meet our seasonal working capital requirements. The credit facility contains an accordion feature that allows us to increase the amount of the available credit from $150 million up to $200 million , subject to lenders' approval. The credit facility matures in February 2021 . The credit agreement provides the lenders with a collateral security interest in substantially all of our assets and those of our subsidiaries and requires us to comply with, among other things, a maximum leverage ratio and a minimum interest coverage ratio. Under the terms of the credit agreement we pay a variable rate of interest and a commitment fee based on our leverage ratio. As of October 1, 2016 , we had no outstanding borrowings or letters of credit and we were in compliance with all financial covenants.

Repurchase of Common Stock

Repurchase of Common Stock	9 Months Ended
	Oct. 01, 2016
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 Nine Months Ended October 1, October 3, October 1, October 3, Amount repurchased under Board-approved share repurchase program $ 25,000 $ 18,530 $ 95,000 $ 68,557 Amount repurchased in connection with the vesting of employee restricted stock grants 45 140 1,410 1,743 Total amount repurchased $ 25,045 $ 18,670 $ 96,410 $ 70,300 Effective as of July 3, 2016, our Board approved an increase in our total remaining share repurchase authorization to $300 million . As of October 1, 2016 , the remaining share repurchase authorization was $275 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 share 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	9 Months Ended
	Oct. 01, 2016
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 Nine Months Ended October 1, October 3, October 1, October 3, Stock awards $ 1,121 $ 2,456 $ 7,533 $ 6,968 Stock options 545 668 1,739 1,984 Total stock-based compensation expense 1,666 3,124 9,272 8,952 Income tax benefit 556 904 3,180 2,909 Total stock-based compensation expense, net of tax $ 1,110 $ 2,220 $ 6,092 $ 6,043

Profit Sharing and 401(k) Plan

Profit Sharing and 401(k) Plan	9 Months Ended
	Oct. 01, 2016
Profit Sharing and 401 (k) Plan [Abstract]
Profit Sharing and 401(k) Plan	Profit Sharing and 401(k) Plan 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 October 1, 2016 and October 3, 2015 , our contributions, net of forfeitures, were $1.1 million and $1.3 million , respectively. During the nine months ended October 1, 2016 and October 3, 2015 , our contributions, net of forfeitures, were $3.4 million and $3.3 million , respectively.

Other (Expense) Income, Net

Other (Expense) Income, Net	9 Months Ended
	Oct. 01, 2016
Other Income and Expenses [Abstract]
Other (Expense) Income, Net	Other (Expense) Income, Net Other (expense) income, net, consisted of the following (in thousands): Three Months Ended Nine Months Ended October 1, October 3, October 1, October 3, Interest expense $ (267 ) $ (44 ) $ (624 ) $ (64 ) Interest income 12 122 43 428 Other (expense) income, net $ (255 ) $ 78 $ (581 ) $ 364

Net Income Per Common Share

Net Income Per Common Share	9 Months Ended
	Oct. 01, 2016
Earnings Per Share [Abstract]
Net Income per Common Share	Net Income per Common Share The components of basic and diluted net income per share were as follows (in thousands, except per share amounts): Three Months Ended Nine Months Ended October 1, October 3, October 1, October 3, Net income $ 25,745 $ 31,854 $ 40,130 $ 71,691 Reconciliation of weighted-average shares outstanding: Basic weighted-average shares outstanding 45,621 50,945 46,705 51,654 Dilutive effect of stock-based awards 729 756 708 870 Diluted weighted-average shares outstanding 46,350 51,701 47,413 52,524 Net income per share – basic $ 0.56 $ 0.63 $ 0.86 $ 1.39 Net income per share – diluted $ 0.56 $ 0.62 $ 0.85 $ 1.36 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	9 Months Ended
	Oct. 01, 2016
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): Nine Months Ended October 1, October 3, Balance at beginning of year $ 20,562 $ 15,262 Additions that reduce net sales 54,588 67,944 Deductions from reserves (57,112 ) (63,893 ) Balance at end of period $ 18,038 $ 19,313 Warranty Liabilities The activity in the accrued warranty liabilities account was as follows (in thousands): Nine Months Ended October 1, October 3, Balance at beginning of year $ 10,028 $ 5,824 Additions charged to costs and expenses for current-year sales 7,014 7,514 Deductions from reserves (7,976 ) (4,995 ) Changes in liability for pre-existing warranties during the current year, including expirations (976 ) 1,426 Balance at end of period $ 8,090 $ 9,769 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 proceedings have 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. On December 4, 2015, Saeid Azimpour, a consumer, filed a purported class-action lawsuit in U.S. District Court in Minnesota alleging he was fraudulently induced to purchase a down alternative pillow at a Sleep Number store based on signage that indicated that the pillow was 50% off. Plaintiff alleged that the price he paid for the pillow was not truly 50% off the price at which Sleep Number previously sold the pillow. Plaintiff asserted 10 causes of action including consumer fraud, unlawful trade practices, deceptive trade practices under Minnesota law, violation of the Minnesota false advertising law, unjust enrichment, violation of the California unfair competition law, violation of the California false advertising law and violation of the California remedies act. Plaintiff sought to represent all individuals who “purchased one or more items from the Company advertised or priced at a discount from the original retail price at any time between December 1, 2011 and present.” Plaintiff sought injunctive relief, damages, disgorgement and attorneys’ fees. On June 13, 2016, the Court dismissed the case without prejudice. On August 25, 2016, plaintiff filed a new complaint asserting claims and prayers for relief similar to those described above. We believe the claims asserted in this lawsuit are without merit and we intend to vigorously defend this case.

Basis of Presentation (Policies

Basis of Presentation (Policies)	9 Months Ended
	Oct. 01, 2016
Accounting Policies [Abstract]
Business and Basis of Presentation, Policy	We prepared the condensed consolidated financial statements as of and for the three and nine months ended October 1, 2016 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 October 1, 2016 , and January 2, 2016 , 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 2, 2016 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 condensed 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	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 fiscal years beginning after December 15, 2016 and early adoption was not permitted. In July 2015, the FASB deferred the effective date from fiscal years beginning after December 15, 2016 to fiscal years beginning after December 15, 2017 (including interim reporting periods within those fiscal years). Early adoption is permitted to the original effective date of fiscal years beginning after December 15, 2016 (including interim reporting periods within those fiscal years). 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. In November 2015, the FASB issued new guidance related to classification of deferred taxes. The new guidance requires that deferred tax liabilities and assets be classified as non-current on the balance sheet. It is effective for interim and annual periods beginning after December 15, 2016, but early adoption is permitted. The adoption is not expected to have a material impact on our consolidated results of operations, cash flows or financial position. In February 2016, the FASB issued new guidance on accounting for leases and generally requires most leases to be recognized on the balance sheet. This new guidance is effective for reporting periods beginning after December 15, 2018, with early adoption permitted. The provisions of this new guidance are to be applied using a modified retrospective approach, with elective reliefs, which requires application of the new guidance for all periods presented. We are evaluating the effect of the new standard on our consolidated financial statements and related disclosures. In March 2016, the FASB issued new guidance on the accounting for, and disclosure of, stock-based compensation which will be effective for us beginning in 2017. The new guidance is intended to simplify several aspects of the accounting for stock-based compensation arrangements, including the income tax impact, forfeitures and classification on the statement of cash flows. Under the current guidance, excess tax benefits and deficiencies have been recognized in additional paid-in capital in the consolidated balance sheets. Upon adoption of the new guidance, these excess tax benefits or deficiencies are required to be recognized as discrete adjustments to income tax expense in the consolidated statements of operations. We will adopt the new guidance on a prospective basis and these discrete adjustments could have a material impact on income tax expense and net income.
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 share 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.
Profit Sharing and 401(k) Plan Policy	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.

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Oct. 01, 2016
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 at October 1, 2016 and January 2, 2016, 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): October 1, 2016 Level 1 Level 2 Level 3 Total Marketable debt securities – current Corporate bonds $ — $ 3,212 $ — $ 3,212 U.S. Treasury securities 2,004 — — 2,004 Commercial paper — 747 — 747 $ 2,004 $ 3,959 $ — $ 5,963 January 2, 2016 Level 1 Level 2 Level 3 Total Marketable debt securities – current Municipal bonds $ — $ 4,055 $ — $ 4,055 Corporate bonds — 2,512 — 2,512 — 6,567 — 6,567 Marketable debt securities – non-current Corporate bonds — 5,001 — 5,001 U.S. Agency bonds — 2,496 — 2,496 Municipal bonds — 1,056 — 1,056 — 8,553 — 8,553 $ — $ 15,120 $ — $ 15,120

Marketable Debt Securities (Tab

Marketable Debt Securities (Tables)	9 Months Ended
	Oct. 01, 2016
Investments [Abstract]
Investments in marketable debt securities	The following tables set forth our investments in marketable debt securities at October 1, 2016 and January 2, 2016 (in thousands): October 1, 2016 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Corporate bonds $ 3,212 $ — $ — $ 3,212 U.S. Treasury securities 2,004 — — 2,004 Commercial paper 747 — — 747 $ 5,963 $ — $ — $ 5,963 January 2, 2016 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Corporate bonds $ 7,532 $ — $ (19 ) $ 7,513 Municipal bonds 5,114 — (3 ) 5,111 U.S. Agency bonds 2,497 — (1 ) 2,496 $ 15,143 $ — $ (23 ) $ 15,120
Maturities of marketable debt securities	Maturities of marketable debt securities were as follows (in thousands): October 1, 2016 January 2, 2016 Amortized Fair Amortized Cost Fair Value Marketable debt securities – current (due in less than one year) $ 5,963 $ 5,963 $ 6,575 $ 6,567 Marketable debt securities – non-current (due in one to two years) — — 8,568 8,553 $ 5,963 $ 5,963 $ 15,143 $ 15,120

Inventories (Tables)

Inventories (Tables)	9 Months Ended
	Oct. 01, 2016
Inventory Disclosure [Abstract]
Inventories	Inventories consisted of the following (in thousands): October 1, January 2, Raw materials $ 6,476 $ 9,349 Work in progress 48 48 Finished goods 64,085 77,203 $ 70,609 $ 86,600

Goodwill and Intangible Assets

Goodwill and Intangible Assets (Tables)	9 Months Ended
	Oct. 01, 2016
Finite-Lived Intangible Assets [Line Items]
Schedule of Intangible Assets and Goodwill [Table Text Block]	The following is a roll forward of goodwill and indefinite-lived trade name/trademarks (in thousands): Nine Months Ended Nine Months Ended October 1, 2016 October 3, 2015 Goodwill Indefinite-Lived Goodwill Indefinite-Lived Beginning balance $ 64,046 $ 1,396 $ 8,963 $ 1,396 SleepIQ LABS — — 56,201 — Ending balance $ 64,046 $ 1,396 $ 65,164 $ 1,396
Definite-Lived Intangible Assets	The following table provides the gross carrying amount and related accumulated amortization of our definite-lived intangible assets (in thousands): October 1, 2016 January 2, 2016 Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Developed technologies $ 18,851 $ 3,980 $ 18,851 $ 2,342 Customer relationships 2,413 1,278 2,413 1,020 Trade names/trademarks 101 101 101 101 $ 21,365 $ 5,359 $ 21,365 $ 3,463

Repurchase of Common Stock (Tab

Repurchase of Common Stock (Tables)	9 Months Ended
	Oct. 01, 2016
Repurchase of Common Stock [Abstract]
Repurchase of Common Stock	Repurchases of our common stock were as follows (in thousands): Three Months Ended Nine Months Ended October 1, October 3, October 1, October 3, Amount repurchased under Board-approved share repurchase program $ 25,000 $ 18,530 $ 95,000 $ 68,557 Amount repurchased in connection with the vesting of employee restricted stock grants 45 140 1,410 1,743 Total amount repurchased $ 25,045 $ 18,670 $ 96,410 $ 70,300

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	9 Months Ended
	Oct. 01, 2016
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 Nine Months Ended October 1, October 3, October 1, October 3, Stock awards $ 1,121 $ 2,456 $ 7,533 $ 6,968 Stock options 545 668 1,739 1,984 Total stock-based compensation expense 1,666 3,124 9,272 8,952 Income tax benefit 556 904 3,180 2,909 Total stock-based compensation expense, net of tax $ 1,110 $ 2,220 $ 6,092 $ 6,043

Other (Expense) Income, Net (Ta

Other (Expense) Income, Net (Tables)	9 Months Ended
	Oct. 01, 2016
Other Income and Expenses [Abstract]
Other (Expense) Income, Net	Other (expense) income, net, consisted of the following (in thousands): Three Months Ended Nine Months Ended October 1, October 3, October 1, October 3, Interest expense $ (267 ) $ (44 ) $ (624 ) $ (64 ) Interest income 12 122 43 428 Other (expense) income, net $ (255 ) $ 78 $ (581 ) $ 364

Net Income Per Common Share (Ta

Net Income Per Common Share (Tables)	9 Months Ended
	Oct. 01, 2016
Earnings Per Share [Abstract]
Net Income per Common Share	The components of basic and diluted net income per share were as follows (in thousands, except per share amounts): Three Months Ended Nine Months Ended October 1, October 3, October 1, October 3, Net income $ 25,745 $ 31,854 $ 40,130 $ 71,691 Reconciliation of weighted-average shares outstanding: Basic weighted-average shares outstanding 45,621 50,945 46,705 51,654 Dilutive effect of stock-based awards 729 756 708 870 Diluted weighted-average shares outstanding 46,350 51,701 47,413 52,524 Net income per share – basic $ 0.56 $ 0.63 $ 0.86 $ 1.39 Net income per share – diluted $ 0.56 $ 0.62 $ 0.85 $ 1.36

Commitments and Contingencies (

Commitments and Contingencies (Tables)	9 Months Ended
	Oct. 01, 2016
Commitments and Contingencies Disclosure [Abstract]
Sales Returns	The activity in the sales returns liability account was as follows (in thousands): Nine Months Ended October 1, October 3, Balance at beginning of year $ 20,562 $ 15,262 Additions that reduce net sales 54,588 67,944 Deductions from reserves (57,112 ) (63,893 ) Balance at end of period $ 18,038 $ 19,313
Warranty Liabilities	The activity in the accrued warranty liabilities account was as follows (in thousands): Nine Months Ended October 1, October 3, Balance at beginning of year $ 10,028 $ 5,824 Additions charged to costs and expenses for current-year sales 7,014 7,514 Deductions from reserves (7,976 ) (4,995 ) Changes in liability for pre-existing warranties during the current year, including expirations (976 ) 1,426 Balance at end of period $ 8,090 $ 9,769

Fair Value Measurements (Detail

Fair Value Measurements (Details) - Recurring [Member] - USD ($) $ in Thousands	Oct. 01, 2016	Jan. 02, 2016
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable debt securities - current	$ 5,963	$ 6,567
Marketable debt securities - noncurrent		8,553
Investments, Fair Value Disclosure		15,120
Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable debt securities - current	2,004	0
Marketable debt securities - noncurrent		0
Investments, Fair Value Disclosure		0
Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable debt securities - current	3,959	6,567
Marketable debt securities - noncurrent		8,553
Investments, Fair Value Disclosure		15,120
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
Investments, Fair Value Disclosure		0
Corporate bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable debt securities - current	3,212	2,512
Marketable debt securities - noncurrent		5,001
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
Corporate bonds [Member] | Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable debt securities - current	3,212	2,512
Marketable debt securities - noncurrent		5,001
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
U.S. Agency bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable debt securities - noncurrent		2,496
U.S. Agency bonds [Member] | Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable debt securities - noncurrent		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 - noncurrent		2,496
U.S. Agency bonds [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable debt securities - noncurrent		0
Municipal bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable debt securities - current		4,055
Marketable debt securities - noncurrent		1,056
Municipal bonds [Member] | Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable debt securities - current		0
Marketable debt securities - noncurrent		0
Municipal bonds [Member] | Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable debt securities - current		4,055
Marketable debt securities - noncurrent		1,056
Municipal bonds [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable debt securities - current		0
Marketable debt securities - noncurrent		0
US Treasury Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable debt securities - current	2,004
US Treasury Securities [Member] | Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable debt securities - current	2,004
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
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
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	747
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
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	747
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
Other Assets [Member] | 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	2,300	1,600
Other Noncurrent Liabilities [Member] | Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Deferred compensation plan liability	$ 2,300	$ 1,600

Marketable Debt Securities (Det

Marketable Debt Securities (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 01, 2016	Oct. 03, 2015	Oct. 01, 2016	Oct. 03, 2015	Jan. 02, 2016
Investments of marketable debt securities [Abstract]
Marketable debt securities Total Amortized Cost	$ 5,963		$ 5,963		$ 15,143
Unrealized gains	0		0		0
Unrealized losses	0		0		(23)
Fair value	5,963		5,963		15,120
Amortized Cost [Abstract]
Marketable debt securities - current (due in less than one year)	5,963		5,963		6,575
Marketable debt securities - non-current (due in one to two years)	0		0		8,568
Marketable debt securities Total Amortized Cost	5,963		5,963		15,143
Fair Value [Abstract]
Marketable debt securities - current (due in less than one year)	5,963		5,963		6,567
Marketable debt securities - non-current (due in one to two years)	0		0		8,553
Fair value	5,963		5,963		15,120
Proceeds from marketable debt securities	0	$ 59,200	15,100	$ 101,000
Corporate bonds [Member]
Investments of marketable debt securities [Abstract]
Marketable debt securities Total Amortized Cost	3,212		3,212		7,532
Unrealized gains	0		0		0
Unrealized losses	0		0		(19)
Fair value	3,212		3,212		7,513
Amortized Cost [Abstract]
Marketable debt securities Total Amortized Cost	3,212		3,212		7,532
Fair Value [Abstract]
Fair value	3,212		3,212		7,513
Municipal bonds [Member]
Investments of marketable debt securities [Abstract]
Marketable debt securities Total Amortized Cost					5,114
Unrealized gains					0
Unrealized losses					(3)
Fair value					5,111
Amortized Cost [Abstract]
Marketable debt securities Total Amortized Cost					5,114
Fair Value [Abstract]
Fair value					5,111
U.S. Agency bonds [Member]
Investments of marketable debt securities [Abstract]
Marketable debt securities Total Amortized Cost					2,497
Unrealized gains					0
Unrealized losses					(1)
Fair value					2,496
Amortized Cost [Abstract]
Marketable debt securities Total Amortized Cost					2,497
Fair Value [Abstract]
Fair value					$ 2,496
US Treasury Securities [Member]
Investments of marketable debt securities [Abstract]
Marketable debt securities Total Amortized Cost	2,004		2,004
Unrealized gains	0		0
Unrealized losses	0		0
Fair value	2,004		2,004
Amortized Cost [Abstract]
Marketable debt securities Total Amortized Cost	2,004		2,004
Fair Value [Abstract]
Fair value	2,004		2,004
Commercial Paper [Member]
Investments of marketable debt securities [Abstract]
Marketable debt securities Total Amortized Cost	747		747
Unrealized gains	0		0
Unrealized losses	0		0
Fair value	747		747
Amortized Cost [Abstract]
Marketable debt securities Total Amortized Cost	747		747
Fair Value [Abstract]
Fair value	$ 747		$ 747

Inventories (Details)

Inventories (Details) - USD ($) $ in Thousands	Oct. 01, 2016	Jan. 02, 2016
Inventory Disclosure [Abstract]
Raw materials	$ 6,476	$ 9,349
Work in progress	48	48
Finished goods	64,085	77,203
Inventories	$ 70,609	$ 86,600

Goodwill and Intangible Asset33

Goodwill and Intangible Assets Acquisition of BAM Labs, Inc. (Details) $ in Millions	Sep. 09, 2015USD ($)
Business Acquisition [Line Items]
Cost Method Investments	$ 6
Remeasured fair value	12.9
Gain on remeasurement of cost investment, net of acquisition related expenses	3.5
Business Combination, Acquisition Related Costs	3.4
Total cash used to purchase remaining capital stock of BAM Labs, Inc.	57.1
Total acquisition price	$ 70

Goodwill and Indefinite-Lived I

Goodwill and Indefinite-Lived Intangible Assets (Details) - USD ($) $ in Thousands	9 Months Ended
	Oct. 01, 2016	Oct. 03, 2015
Goodwill [Roll Forward]
Beginning balance	$ 64,046	$ 8,963
SleepIQ LABS	0	56,201
Ending balance	64,046	65,164
Trade Names [Member]
Indefinite-lived Intangible Assets [Roll Forward]
Beginning balance	1,396	1,396
SleepIQ LABS	0	0
Ending balance	$ 1,396	$ 1,396

Goodwill and Intangible Asset35

Goodwill and Intangible Assets Finite-Lived Intangible Assets (Details) - USD ($) $ in Thousands	Oct. 01, 2016	Jan. 02, 2016
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets	$ 21,365	$ 21,365
Finite-Lived Intangible Assets, Accumulated Amortization	5,359	3,463
Developed Technology Rights [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets	18,851	18,851
Finite-Lived Intangible Assets, Accumulated Amortization	3,980	2,342
Customer Relationships [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets	2,413	2,413
Finite-Lived Intangible Assets, Accumulated Amortization	1,278	1,020
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

Goodwill and Intangible Asset36

Goodwill and Intangible Assets Amortization Expense (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Oct. 01, 2016	Oct. 03, 2015	Oct. 01, 2016	Oct. 03, 2015
Finite-Lived Intangible Assets [Line Items]
Amortization expense definite-lived intangible assets	$ 0.6	$ 0.3	$ 1.9	$ 0.7

Credit Agreement (Details)

Credit Agreement (Details) $ in Millions	9 Months Ended
	Oct. 01, 2016USD ($)
Line of Credit Facility [Line Items]
Current borrowing capacity	$ 150
Maximum Borrowing Capacity	$ 200
Line of Credit Facility, Expiration Date	Feb. 24, 2021

Repurchase of Common Stock (Det

Repurchase of Common Stock (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 01, 2016	Oct. 03, 2015	Oct. 01, 2016	Oct. 03, 2015	Jul. 03, 2016
Repurchase of Common Stock [Abstract]
Amount repurchased under Board-approved share repurchase program	$ 25,000	$ 18,530	$ 95,000	$ 68,557
Amount repurchased in connection with the vesting of employee restricted stock grants	45	140	1,410	1,743
Total amount repurchased	25,045	$ 18,670	96,410	$ 70,300
Stock Repurchase Program, Remaining Authorized Repurchase Amount	$ 275,000		$ 275,000		$ 300,000

Stock-Based Compensation (Detai

Stock-Based Compensation (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 01, 2016	Oct. 03, 2015	Oct. 01, 2016	Oct. 03, 2015
Total stock-based compensation expense	$ 1,666	$ 3,124	$ 9,272	$ 8,952
Income tax benefit	556	904	3,180	2,909
Total stock-based compensation expense, net of tax	1,110	2,220	6,092	6,043
Time-Based, Performance-Based and Market-Based Stock Awards [Member]
Total stock-based compensation expense	1,121	2,456	7,533	6,968
Stock Options [Member]
Total stock-based compensation expense	$ 545	$ 668	$ 1,739	$ 1,984

Profit Sharing and 401(k) Plan

Profit Sharing and 401(k) Plan (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Oct. 01, 2016	Oct. 03, 2015	Oct. 01, 2016	Oct. 03, 2015
Defined Contribution Plan Disclosure [Line Items]
Employee compensation deferral (in hundredths)			50.00%
Employer contributions	$ 1.1	$ 1.3	$ 3.4	$ 3.3

Other (Expense) Income, Net (De

Other (Expense) Income, Net (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 01, 2016	Oct. 03, 2015	Oct. 01, 2016	Oct. 03, 2015
Other Income and Expenses [Abstract]
Interest expense	$ (267)	$ (44)	$ (624)	$ (64)
Interest income	12	122	43	428
Other (expense) income, net	$ (255)	$ 78	$ (581)	$ 364

Net Income per Common Share (De

Net Income per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 01, 2016	Oct. 03, 2015	Oct. 01, 2016	Oct. 03, 2015
Net Income per Common Share [Abstract]
Net income	$ 25,745	$ 31,854	$ 40,130	$ 71,691
Basic weighted-average shares outstanding	45,621,000	50,945,000	46,705,000	51,654,000
Effect of dilutive securities	729,000	756,000	708,000	870,000
Diluted weighted-average shares outstanding	46,350,000	51,701,000	47,413,000	52,524,000
Net income per share – basic (in USD per share)	$ 0.56	$ 0.63	$ 0.86	$ 1.39
Net income per share – diluted (in USD per share)	$ 0.56	$ 0.62	$ 0.85	$ 1.36

Commitments and Contingencies S

Commitments and Contingencies Sales Return Liability (Details) - USD ($) $ in Thousands	9 Months Ended
	Oct. 01, 2016	Oct. 03, 2015
Sales return liability [Roll Forward]
Balance at beginning of year	$ 20,562	$ 15,262
Additions that reduce net sales	54,588	67,944
Deductions from reserves	(57,112)	(63,893)
Balance at end of period	$ 18,038	$ 19,313

Commitments and Contingencies W

Commitments and Contingencies Warranty Liabilities (Details) - USD ($) $ in Thousands	9 Months Ended
	Oct. 01, 2016	Oct. 03, 2015
Warranty Liabilities [Roll Forward]
Balance at beginning of year	$ 10,028	$ 5,824
Additions charged to costs and expenses for current-year sales	7,014	7,514
Deductions from reserves	(7,976)	(4,995)
Changes in liability for pre-existing warranties during the current year, including expirations	(976)	1,426
Balance at end of period	$ 8,090	$ 9,769