Sleep Number (SNBR) 10-Q 8 Nov 21 2021 Q3 Quarterly report Financial data

Cover Page

Cover Page shares in Thousands	9 Months Ended
	Oct. 02, 2021shares
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Oct. 2, 2021
Document Transition Report	false
Entity File Number	000-25121
Entity Registrant Name	SLEEP NUMBER CORPORATION
Entity Incorporation, State or Country Code	MN
Entity Tax Identification Number	41-1597886
Entity Address, Address Line One	1001 Third Avenue South
Entity Address, City or Town	Minneapolis,
Entity Address, State or Province	MN
Entity Address, Postal Zip Code	55404
City Area Code	763
Local Phone Number	551-7000
Title of 12(b) Security	Common Stock, par value $0.01 per share
Trading Symbol	SNBR
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding	22,647
Amendment Flag	false
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2021
Current Fiscal Year End Date	--01-01
Entity Central Index Key	0000827187

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Oct. 02, 2021	Jan. 02, 2021
Current assets:
Cash and cash equivalents	$ 1,830	$ 4,243
Accounts receivable, net of allowances of $1,116 and $1,046, respectively	33,388	31,871
Inventories	86,129	81,362
Prepaid expenses	24,346	20,839
Other current assets	49,634	43,489
Total current assets	195,327	181,804
Non-current assets:
Property and equipment, net	184,697	175,223
Operating lease right-of-use assets	360,269	314,226
Goodwill and intangible assets, net	71,069	72,871
Other non-current assets	72,258	56,012
Total assets	883,620	800,136
Current liabilities:
Borrowings under revolving credit facility	359,100	244,200
Accounts payable	163,894	91,904
Customer prepayments	107,802	72,017
Accrued sales returns	28,518	24,765
Compensation and benefits	63,896	76,786
Taxes and withholding	36,590	23,339
Operating lease liabilities	69,316	62,077
Other current liabilities	61,767	60,856
Total current liabilities	890,883	655,944
Non-current liabilities:
Deferred income taxes	533	242
Operating lease liabilities	327,521	283,084
Other non-current liabilities	104,749	84,844
Total liabilities	1,323,686	1,024,114
Shareholders’ deficit:
Undesignated preferred stock; 5,000 shares authorized, no shares issued and outstanding	0	0
Common stock, $0.01 par value; 142,500 shares authorized, 22,647 and 25,390 shares issued and outstanding, respectively	226	254
Additional paid-in capital	0	0
Accumulated deficit	(440,292)	(224,232)
Total shareholders’ deficit	(440,066)	(223,978)
Total liabilities and shareholders’ deficit	$ 883,620	$ 800,136

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Oct. 02, 2021	Jan. 02, 2021
Current assets:
Allowances	$ 1,116	$ 1,046
Shareholders’ deficit:
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)	22,647,000	25,390,000
Common stock, shares outstanding (in shares)	22,647,000	25,390,000

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 02, 2021	Sep. 26, 2020	Oct. 02, 2021	Sep. 26, 2020
Income Statement [Abstract]
Net sales	$ 640,393	$ 531,155	$ 1,692,965	$ 1,288,659
Cost of sales	250,039	196,195	653,842	488,558
Gross profit	390,354	334,960	1,039,123	800,101
Operating expenses:
Sales and marketing	255,512	211,574	685,123	549,483
General and administrative	47,676	44,127	131,488	111,915
Research and development	14,431	9,644	43,633	28,399
Total operating expenses	317,619	265,345	860,244	689,797
Operating income	72,735	69,615	178,879	110,304
Interest expense, net	1,816	1,827	4,400	8,111
Income before income taxes	70,919	67,788	174,479	102,193
Income tax expense	17,198	16,468	31,874	24,363
Net income	$ 53,721	$ 51,320	$ 142,605	$ 77,830
Basic net income per share:
Net income per share – basic (in dollars per share)	$ 2.29	$ 1.83	$ 5.84	$ 2.79
Weighted-average shares – basic (in shares)	23,464,000	27,973,000	24,404,000	27,918,000
Diluted net income per share:
Net income per share – diluted (in dollars per share)	$ 2.22	$ 1.79	$ 5.63	$ 2.73
Weighted-average shares – diluted (in shares)	24,233,000	28,634,000	25,324,000	28,560,000

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Shareholders' (Deficit) - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Accumulated Deficit
Beginning balance (in shares) at Dec. 28, 2019		27,961
Beginning balance at Dec. 28, 2019	$ (159,431)	$ 280	$ 0	$ (159,711)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	39,140			39,140
Exercise of common stock options (in shares)		167
Exercise of common stock options	3,283	$ 1	3,282
Stock-based compensation (in shares)		396
Stock-based compensation	2,051	$ 4	2,047
Repurchases of common stock (in shares)		(888)
Repurchases of common stock	(40,952)	$ (9)	(5,329)	(35,614)
Ending balance (in shares) at Mar. 28, 2020		27,636
Ending balance at Mar. 28, 2020	(155,909)	$ 276	0	(156,185)
Beginning balance (in shares) at Dec. 28, 2019		27,961
Beginning balance at Dec. 28, 2019	(159,431)	$ 280	0	(159,711)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	77,830
Ending balance (in shares) at Sep. 26, 2020		27,757
Ending balance at Sep. 26, 2020	(102,827)	$ 278	14,390	(117,495)
Beginning balance (in shares) at Mar. 28, 2020		27,636
Beginning balance at Mar. 28, 2020	(155,909)	$ 276	0	(156,185)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	(12,630)			(12,630)
Exercise of common stock options (in shares)		33
Exercise of common stock options	817		817
Stock-based compensation (in shares)		71
Stock-based compensation	5,033	$ 1	5,032
Repurchases of common stock (in shares)		(15)
Repurchases of common stock	(329)		(330)	1
Ending balance (in shares) at Jun. 27, 2020		27,725
Ending balance at Jun. 27, 2020	(163,018)	$ 277	5,519	(168,814)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	51,320			51,320
Exercise of common stock options (in shares)		20
Exercise of common stock options	550	$ 1	549
Stock-based compensation (in shares)		14
Stock-based compensation	8,470		8,470
Repurchases of common stock (in shares)		(2)
Repurchases of common stock	(149)		(148)	(1)
Ending balance (in shares) at Sep. 26, 2020		27,757
Ending balance at Sep. 26, 2020	$ (102,827)	$ 278	14,390	(117,495)
Beginning balance (in shares) at Jan. 02, 2021	25,390	25,390
Beginning balance at Jan. 02, 2021	$ (223,978)	$ 254	0	(224,232)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	66,634			66,634
Exercise of common stock options (in shares)		106
Exercise of common stock options	2,460	$ 1	2,459
Stock-based compensation (in shares)		314
Stock-based compensation	6,416	$ 3	6,413
Repurchases of common stock (in shares)		(1,346)
Repurchases of common stock	(184,182)	$ (13)	(8,872)	(175,297)
Ending balance (in shares) at Apr. 03, 2021		24,464
Ending balance at Apr. 03, 2021	$ (332,650)	$ 245	0	(332,895)
Beginning balance (in shares) at Jan. 02, 2021	25,390	25,390
Beginning balance at Jan. 02, 2021	$ (223,978)	$ 254	0	(224,232)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	$ 142,605
Ending balance (in shares) at Oct. 02, 2021	22,647	22,647
Ending balance at Oct. 02, 2021	$ (440,066)	$ 226	0	(440,292)
Beginning balance (in shares) at Apr. 03, 2021		24,464
Beginning balance at Apr. 03, 2021	(332,650)	$ 245	0	(332,895)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	22,250			22,250
Exercise of common stock options (in shares)		35
Exercise of common stock options	1,075		1,075
Stock-based compensation (in shares)		22
Stock-based compensation	5,969		5,969
Repurchases of common stock (in shares)		(899)
Repurchases of common stock	(100,302)	$ (9)	(7,044)	(93,249)
Ending balance (in shares) at Jul. 03, 2021		23,622
Ending balance at Jul. 03, 2021	(403,658)	$ 236	0	(403,894)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	53,721			53,721
Exercise of common stock options (in shares)		10
Exercise of common stock options	312	$ 0	312
Stock-based compensation (in shares)		19
Stock-based compensation	7,316		7,316
Repurchases of common stock (in shares)		(1,004)
Repurchases of common stock	$ (97,757)	$ (10)	(7,628)	(90,119)
Ending balance (in shares) at Oct. 02, 2021	22,647	22,647
Ending balance at Oct. 02, 2021	$ (440,066)	$ 226	$ 0	$ (440,292)

Condensed Consolidated Statem_3

Condensed Consolidated Statement of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Oct. 02, 2021	Sep. 26, 2020
Cash flows from operating activities:
Net income	$ 142,605	$ 77,830
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	44,786	46,244
Stock-based compensation	19,701	15,554
Net (gain) loss on disposals and impairments of assets	(20)	208
Deferred income taxes	291	3,229
Changes in operating assets and liabilities:
Accounts receivable	(1,517)	(12,710)
Inventories	(4,767)	3,807
Income taxes	5,615	5,103
Prepaid expenses and other assets	(13,879)	3,666
Accounts payable	51,543	58,547
Customer prepayments	35,785	40,795
Accrued compensation and benefits	(12,725)	21,376
Other taxes and withholding	7,636	4,756
Other accruals and liabilities	17,630	18,877
Net cash provided by operating activities	292,684	287,282
Cash flows from investing activities:
Purchases of property and equipment	(49,370)	(28,074)
Proceeds from sales of property and equipment	257	53
Purchase of intangible assets	0	(945)
Net cash used in investing activities	(49,113)	(28,966)
Cash flows from financing activities:
Repurchases of common stock	(381,496)	(41,923)
Net increase (decrease) in short-term borrowings	132,222	(220,968)
Proceeds from issuance of common stock	3,847	4,650
Debt issuance costs	(557)	(303)
Net cash used in financing activities	(245,984)	(258,544)
Net decrease in cash and cash equivalents	(2,413)	(228)
Cash and cash equivalents, at beginning of period	4,243	1,593
Cash and cash equivalents, at end of period	$ 1,830	$ 1,365

Business and Summary of Signifi

Business and Summary of Significant Accounting Policies	9 Months Ended
	Oct. 02, 2021
Accounting Policies [Abstract]
Business and Summary of Significant Accounting Policies	Business and Summary of Significant Accounting Policies Business & Basis of Presentation We prepared the condensed consolidated financial statements as of and for the three and nine months ended October 2, 2021 of Sleep Number Corporation and our 100%-owned subsidiaries (Sleep Number 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 2, 2021 and January 2, 2021, 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. Additionally, based on the duration and severity of the current global situation involving the novel coronavirus (COVID-19) pandemic, including but not limited to general economic conditions, consumer confidence, store restrictions mandated by federal, state or local authorities and global supply-chain disruptions, the extent to which COVID-19 will impact our business and our consolidated financial results will depend on future developments, which are highly uncertain and cannot be predicted. 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, 2021 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. In addition, during the current environment involving COVID-19, predicting future events will be especially challenging for management. Changes in these estimates will be reflected in the consolidated financial statements in future periods and could be material. Our critical accounting policies consist of stock-based compensation, warranty liabilities and revenue recognition. The condensed consolidated financial statements include the accounts of Sleep Number Corporation and our 100%-owned subsidiaries. All significant intra-entity balances and transactions have been eliminated in consolidation.

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Oct. 02, 2021
Fair Value Disclosures [Abstract]
Fair Value Measurements	Fair Value MeasurementsAt October 2, 2021 and January 2, 2021, we had $18 million and $12 million, respectively, of debt and equity securities that fund our deferred compensation plan and are classified in other non-current assets. We also had corresponding deferred compensation plan liabilities of $18 million and $12 million at October 2, 2021 and January 2, 2021, respectively, which are included in other non-current 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.

Inventories

Inventories	9 Months Ended
	Oct. 02, 2021
Inventory Disclosure [Abstract]
Inventories	Inventories Inventories consisted of the following (in thousands): October 2, January 2, Raw materials $ 8,748 $ 12,599 Work in progress 93 103 Finished goods 77,288 68,660 $ 86,129 $ 81,362

Goodwill and Intangible Assets,

Goodwill and Intangible Assets, Net	9 Months Ended
	Oct. 02, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill and Intangible Assets, Net	Goodwill and Intangible Assets, Net Goodwill and Indefinite-lived Intangible Assets Goodwill was $64 million at October 2, 2021 and January 2, 2021. Indefinite-lived trade name/trademarks totaled $1.4 million at October 2, 2021 and January 2, 2021. Definite-lived Intangible Assets The gross carrying amount of our developed technologies was $19 million at October 2, 2021 and January 2, 2021. Accumulated amortization was $15 million and $13 million at October 2, 2021 and January 2, 2021, respectively. Amortization expense for the three months ended October 2, 2021 and September 26, 2020, was $0.5 million and $0.6 million, respectively. Amortization expense for the nine months ended October 2, 2021 and September 26, 2020, was $1.6 million and $1.7 million, respectively. The gross carrying amount of our patents, which were acquired in June 2020, was $2.0 million at both October 2, 2021 and January 2, 2021. Accumulated amortization was $0.3 million and $0.1 million at October 2, 2021 and January 2, 2021, respectively. Amortization expense for the three and nine months ended October 2, 2021 was $55 thousand and $0.2 million, respectively. Amortization expense for the three and nine months ended September 26, 2020 was $55 thousand. Annual amortization for definite-lived intangible assets for subsequent years are as follows (in thousands): 2021 (excluding the nine months ended October 2, 2021) $ 600 2022 2,403 2023 1,431 2024 222 2025 226 2026 222 Thereafter 522 Total future amortization for definite-lived intangible assets $ 5,626

Credit Agreement

Credit Agreement	9 Months Ended
	Oct. 02, 2021
Debt Disclosure [Abstract]
Credit Agreement	Credit Agreement Our credit facility as of October 2, 2021, has a net aggregate commitment amount of $600 million. The credit facility is for general corporate purposes, to meet our seasonal working capital requirements and to repurchase our stock. 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 (4.5x) and a minimum interest coverage ratio (3.0x). The credit agreement includes an accordion feature which allows us to increase the amount of the credit facility from $600 million to $800 million, subject to lenders' approval. Under the terms of the credit agreement, we pay a variable rate of interest and a commitment fee based on our leverage ratio. We were in compliance with all financial covenants as of October 2, 2021. The credit facility matures in February 2024. The following table summarizes our borrowings under the credit facility ($ in thousands): October 2, January 2, Outstanding borrowings $ 359,100 $ 244,200 Outstanding letters of credit $ 3,997 $ 3,997 Additional borrowing capacity $ 236,903 $ 201,803 Weighted-average interest rate 1.6 % 1.5 %

Leases

Leases	9 Months Ended
	Oct. 02, 2021
Leases [Abstract]
Leases	Leases We lease our retail, office and manufacturing space under operating leases which, in addition to the minimum lease payments, may require payment of a proportionate share of the real estate taxes and certain building operating expenses. While our local market development approach generally results in long-term participation in given markets, our retail store leases generally provide for an initial lease term of five three Our operating lease costs include facility, vehicle and equipment lease costs, but exclude variable lease costs. Operating lease costs are recognized on a straight-line basis over the lease term, after consideration of rent escalations and rent holidays. The lease term for purposes of the calculation begins on the earlier of the lease commencement date or the date we take possession of the property. During lease renewal negotiations that extend beyond the original lease term, we estimate straight-line rent expense based on current market conditions. Variable lease costs are recorded when it is probable the cost has been incurred and the amount can be reasonably estimated. Future payments for real estate taxes and certain building operating expenses for which we are obligated are not included in operating lease costs. At October 2, 2021, our finance right-of-use assets and lease liabilities were not significant. Lease costs were as follows (in thousands): Three Months Ended Nine Months Ended October 2, September 26, October 2, September 26, Operating lease costs (1) $ 25,632 $ 22,512 $ 73,623 $ 67,815 Variable lease costs $ 826 $ 333 $ 2,181 $ 608 ___________________________ (1) Includes short-term lease costs which are not significant. The maturities of operating lease liabilities as of October 2, 2021, were as follows (1) (in thousands): 2021 (excluding the nine months ended October 2, 2021) $ 23,414 2022 90,193 2023 80,741 2024 68,961 2025 59,384 2026 48,662 Thereafter 109,699 Total operating lease payments (2) 481,054 Less: Interest 84,158 Present value of operating lease liabilities (3) $ 396,896 ___________________________ (1) During 2020, we deferred certain cash lease payments to future periods. At October 2, 2021, we had deferred cash rent payments of $0.8 million which are excluded from this table and are included in Other current liabilities and Other non-current liabilities. (2) Total operating lease payments exclude $69 million of legally binding minimum lease payments for leases signed but not yet commenced. (3) Includes the current portion of $69 million for operating lease liabilities. Other information related to operating leases was as follows: October 2, January 2, Weighted-average remaining lease term (years) 6.5 6.3 Weighted-average discount rate 6.2 % 6.9 % Nine Months Ended (in thousands) October 2, September 26, Cash paid for amounts included in present value of operating lease liabilities $ 66,561 $ 64,208 Right-of-use assets obtained in exchange for operating lease liabilities $ 78,192 $ 28,772

Repurchases of Common Stock

Repurchases of Common Stock	9 Months Ended
	Oct. 02, 2021
Repurchases Of Common Stock [Abstract]
Repurchases of Common Stock	Repurchases of Common Stock Repurchases of our common stock were as follows (in thousands): Three Months Ended Nine Months Ended October 2, September 26, October 2, September 26, Amount repurchased under Board-approved share repurchase program $ 97,046 $ — $ 364,478 $ 38,111 Amount repurchased in connection with the vesting of employee restricted stock grants 711 149 17,763 3,319 Total amount repurchased (based on trade dates) $ 97,757 $ 149 $ 382,241 $ 41,430 As of October 2, 2021, the remaining authorization under the $600 million share repurchase program was $403 million.

Revenue Recognition

Revenue Recognition	9 Months Ended
	Oct. 02, 2021
Revenue from Contract with Customer [Abstract]
Revenue Recognition	Revenue Recognition Deferred contract assets and deferred contract liabilities are included in our condensed consolidated balance sheets as follows (in thousands): October 2, January 2, Deferred Contract Assets included in: Other current assets $ 27,115 $ 26,593 Other non-current assets 49,125 37,976 $ 76,240 $ 64,569 October 2, January 2, Deferred Contract Liabilities included in: Other current liabilities $ 35,430 $ 35,288 Other non-current liabilities 63,703 49,689 $ 99,133 $ 84,977 The deferred revenue and costs related to SleepIQ technology are recognized on a straight-line basis over the product's estimated life of 4.5 years because our inputs are generally expended evenly throughout the performance period. During the three months ended October 2, 2021 and September 26, 2020, we recognized revenue of $8 million and $9 million, respectively, that were included in the deferred contract liability balances at the beginning of the respective periods. During the nine months ended October 2, 2021 and September 26, 2020, we recognized revenue of $22 million and $27 million, respectively, that were included in the deferred contract liability balances at the beginning of the respective periods. Revenue from goods and services transferred to customers at a point in time accounted for approximately 99% of our revenues for the three and nine months ended October 2, 2021 and 98% of our revenues for the three and nine months ended September 26, 2020. Net sales were as follows (in thousands): Three Months Ended Nine Months Ended October 2, September 26, October 2, September 26, Retail stores $ 565,939 $ 456,756 $ 1,481,780 $ 1,097,872 Online, phone, chat and other 74,454 74,399 211,185 190,787 Total Company $ 640,393 $ 531,155 $ 1,692,965 $ 1,288,659 Obligation for Sales Returns The activity in the sales returns liability account was as follows (in thousands): Nine Months Ended October 2, September 26, Balance at beginning of year $ 24,765 $ 19,809 Additions that reduce net sales 69,877 55,086 Deductions from reserves (66,124) (50,810) Balance at end of period $ 28,518 $ 24,085

Stock-based Compensation Expens

Stock-based Compensation Expense	9 Months Ended
	Oct. 02, 2021
Share-based Payment Arrangement [Abstract]
Stock-based Compensation Expense	Stock-based Compensation Expense Total stock-based compensation expense was as follows (in thousands): Three Months Ended Nine Months Ended October 2, September 26, October 2, September 26, Stock awards $ 6,506 $ 7,930 17,533 $ 13,776 Stock options 810 540 2,168 1,778 Total stock-based compensation expense (1) 7,316 8,470 19,701 15,554 Income tax benefit 1,835 2,081 4,906 3,795 Total stock-based compensation expense, net of tax $ 5,481 $ 6,389 $ 14,795 $ 11,759 ___________________________ (1) Changes in stock-based compensation expense reflect the cumulative impact of the change in the expected achievements of certain performance targets.

Profit Sharing and 401(k) Plan

Profit Sharing and 401(k) Plan	9 Months Ended
	Oct. 02, 2021
Profit Sharing And 401 (k) Plan [Abstract]
Profit Sharing and 401(k) Plan	Profit Sharing and 401(k) PlanUnder 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 pay period, we may make a discretionary contribution equal to a percentage of the employee’s contribution. During the three months ended October 2, 2021 and September 26, 2020, our contributions, net of forfeitures, were $2.0 million and $2.1 million, respectively. During the nine months ended October 2, 2021 and September 26, 2020, our contributions, net of forfeitures, were $5.7 million and $4.2 million, respectively.

Net Income per Common Share

Net Income per Common Share	9 Months Ended
	Oct. 02, 2021
Earnings Per Share [Abstract]
Net Income (Loss) 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 2, September 26, October 2, September 26, Net income $ 53,721 $ 51,320 $ 142,605 $ 77,830 Reconciliation of weighted-average shares outstanding: Basic weighted-average shares outstanding 23,464 27,973 24,404 27,918 Dilutive effect of stock-based awards 769 661 920 642 Diluted weighted-average shares outstanding 24,233 28,634 25,324 28,560 Net income per share – basic $ 2.29 $ 1.83 $ 5.84 $ 2.79 Net income per share – diluted $ 2.22 $ 1.79 $ 5.63 $ 2.73

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Oct. 02, 2021
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Warranty Liabilities The activity in the accrued warranty liabilities account was as follows (in thousands): Nine Months Ended October 2, September 26, Balance at beginning of year $ 12,152 $ 11,345 Additions charged to costs and expenses for current-year sales 12,780 9,111 Deductions from reserves (13,489) (8,034) Changes in liability for pre-existing warranties during the current year, including expirations (380) (381) Balance at end of period $ 11,063 $ 12,041 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 U.S. generally accepted accounting principles, 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. If a material loss is reasonably possible but not known or probable, and may be reasonably estimated, the estimated loss or range of loss is disclosed. With respect to currently pending legal proceedings, we have not established an estimated range of reasonably possible material losses either because we believe that we have valid defenses to claims asserted against us, the proceeding has not advanced to a stage of discovery that would enable us to establish an estimate, or the potential loss is not material. We currently do not expect the outcome of pending legal proceedings 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 March 27, 2018, Level Sleep, LLC (Level Sleep) filed a patent infringement lawsuit against Sleep Number in the Federal District Court for the Eastern District of Texas. In its Complaint, Level Sleep claims that Sleep Number infringed two patents owned by Level Sleep, U.S. Patent Nos. 6,807,698 and 7,036,172 (the Patents), by, among other things, making, using, offering for sale, or selling within the United States, and/or importing into the United States, beds with sleep surfaces having foam with multiple zones in the longitudinal direction. Level Sleep has asserted that five non-360 ® beds no longer sold and two current non-360 beds infringe the Patents. Level Sleep seeks damages in the form of a reasonable royalty. Sleep Number has asserted that the Patents are invalid and that our products do not infringe the Patents. On January 14, 2020, the Court granted summary judgment in favor of Sleep Number, finding

COVID-19 Pandemic

COVID-19 Pandemic	9 Months Ended
	Oct. 02, 2021
Unusual or Infrequent Items, or Both [Abstract]
COVID-19 Pandemic	COVID-19 Pandemic At the onset of the COVID-19 pandemic in mid-March 2020, government restrictions resulted in the temporary closure of most of our retail stores, with 47% of our stores closed on average during the second quarter of 2020. While prioritizing the safety of our team, serving our customers and ensuring business continuity, we swiftly took decisive actions to strengthen our liquidity, cash flows and financial position, and mitigate the future impact on our operations and financial performance. The COVID-19 pandemic mainly impacted our second quarter of 2020 financial performance, as we generated strong demand and financial performance during the full-year of 2020 and the first nine months of 2021. However, the pandemic's future effects on our global supply chain, consumer demand and ongoing financial performance remains uncertain. See Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations of this Quarterly Report on Form 10-Q and Part I: Item 1A. Risk Factors in our Annual Report on Form 10-K for the fiscal year ended January 2, 2021, for additional discussion on the COVID-19 pandemic and the impact on our business.

Business and Summary of Signi_2

Business and Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Oct. 02, 2021
Accounting Policies [Abstract]
Business & Basis of Presentation	Business & Basis of Presentation We prepared the condensed consolidated financial statements as of and for the three and nine months ended October 2, 2021 of Sleep Number Corporation and our 100%-owned subsidiaries (Sleep Number 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 2, 2021 and January 2, 2021, 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. Additionally, based on the duration and severity of the current global situation involving the novel coronavirus (COVID-19) pandemic, including but not limited to general economic conditions, consumer confidence, store restrictions mandated by federal, state or local authorities and global supply-chain disruptions, the extent to which COVID-19 will impact our business and our consolidated financial results will depend on future developments, which are highly uncertain and cannot be predicted. 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, 2021 and other recent filings with the SEC.
Use of Estimates	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. In addition, during the current environment involving COVID-19, predicting future events will be especially challenging for management. Changes in these estimates will be reflected in the consolidated financial statements in future periods and could be material. Our critical accounting policies consist of stock-based compensation, warranty liabilities and revenue recognition.
Consolidation	The condensed consolidated financial statements include the accounts of Sleep Number Corporation and our 100%-owned subsidiaries. All significant intra-entity balances and transactions have been eliminated in consolidation.
Leases	We lease our retail, office and manufacturing space under operating leases which, in addition to the minimum lease payments, may require payment of a proportionate share of the real estate taxes and certain building operating expenses. While our local market development approach generally results in long-term participation in given markets, our retail store leases generally provide for an initial lease term of five three Our operating lease costs include facility, vehicle and equipment lease costs, but exclude variable lease costs. Operating lease costs are recognized on a straight-line basis over the lease term, after consideration of rent escalations and rent holidays. The lease term for purposes of the calculation begins on the earlier of the lease commencement date or the date we take possession of the property. During lease renewal negotiations that extend beyond the original lease term, we estimate straight-line rent expense based on current market conditions. Variable lease costs are recorded when it is probable the cost has been incurred and the amount can be reasonably estimated. Future payments for real estate taxes and certain building operating expenses for which we are obligated are not included in operating lease costs.

Inventories (Tables)

Inventories (Tables)	9 Months Ended
	Oct. 02, 2021
Inventory Disclosure [Abstract]
Schedule of Inventories	Inventories consisted of the following (in thousands): October 2, January 2, Raw materials $ 8,748 $ 12,599 Work in progress 93 103 Finished goods 77,288 68,660 $ 86,129 $ 81,362

Goodwill and Intangible Asset_2

Goodwill and Intangible Assets, Net (Tables)	9 Months Ended
	Oct. 02, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Annual Amortization of Definite-Lived Tangible Assets	Annual amortization for definite-lived intangible assets for subsequent years are as follows (in thousands): 2021 (excluding the nine months ended October 2, 2021) $ 600 2022 2,403 2023 1,431 2024 222 2025 226 2026 222 Thereafter 522 Total future amortization for definite-lived intangible assets $ 5,626

Credit Agreement (Tables)

Credit Agreement (Tables)	9 Months Ended
	Oct. 02, 2021
Debt Disclosure [Abstract]
Schedule of Borrowings Under Credit Facility	The following table summarizes our borrowings under the credit facility ($ in thousands): October 2, January 2, Outstanding borrowings $ 359,100 $ 244,200 Outstanding letters of credit $ 3,997 $ 3,997 Additional borrowing capacity $ 236,903 $ 201,803 Weighted-average interest rate 1.6 % 1.5 %

Leases (Tables)

Leases (Tables)	9 Months Ended
	Oct. 02, 2021
Leases [Abstract]
Schedule of Operating Lease Costs	Lease costs were as follows (in thousands): Three Months Ended Nine Months Ended October 2, September 26, October 2, September 26, Operating lease costs (1) $ 25,632 $ 22,512 $ 73,623 $ 67,815 Variable lease costs $ 826 $ 333 $ 2,181 $ 608 ___________________________ (1) Includes short-term lease costs which are not significant.
Schedule of Maturities of Operating Lease Liabilities	The maturities of operating lease liabilities as of October 2, 2021, were as follows (1) (in thousands): 2021 (excluding the nine months ended October 2, 2021) $ 23,414 2022 90,193 2023 80,741 2024 68,961 2025 59,384 2026 48,662 Thereafter 109,699 Total operating lease payments (2) 481,054 Less: Interest 84,158 Present value of operating lease liabilities (3) $ 396,896 ___________________________ (1) During 2020, we deferred certain cash lease payments to future periods. At October 2, 2021, we had deferred cash rent payments of $0.8 million which are excluded from this table and are included in Other current liabilities and Other non-current liabilities. (2) Total operating lease payments exclude $69 million of legally binding minimum lease payments for leases signed but not yet commenced. (3) Includes the current portion of $69 million for operating lease liabilities.
Schedule of Other Information Related Operating Leases	Other information related to operating leases was as follows: October 2, January 2, Weighted-average remaining lease term (years) 6.5 6.3 Weighted-average discount rate 6.2 % 6.9 % Nine Months Ended (in thousands) October 2, September 26, Cash paid for amounts included in present value of operating lease liabilities $ 66,561 $ 64,208 Right-of-use assets obtained in exchange for operating lease liabilities $ 78,192 $ 28,772

Repurchases of Common Stock (Ta

Repurchases of Common Stock (Tables)	9 Months Ended
	Oct. 02, 2021
Repurchases Of Common Stock [Abstract]
Schedule of Repurchases of Common Stock	Repurchases of our common stock were as follows (in thousands): Three Months Ended Nine Months Ended October 2, September 26, October 2, September 26, Amount repurchased under Board-approved share repurchase program $ 97,046 $ — $ 364,478 $ 38,111 Amount repurchased in connection with the vesting of employee restricted stock grants 711 149 17,763 3,319 Total amount repurchased (based on trade dates) $ 97,757 $ 149 $ 382,241 $ 41,430

Revenue Recognition (Tables)

Revenue Recognition (Tables)	9 Months Ended
	Oct. 02, 2021
Revenue from Contract with Customer [Abstract]
Schedule of Deferred Contract Liabilities and Deferred Contract Assets	Deferred contract assets and deferred contract liabilities are included in our condensed consolidated balance sheets as follows (in thousands): October 2, January 2, Deferred Contract Assets included in: Other current assets $ 27,115 $ 26,593 Other non-current assets 49,125 37,976 $ 76,240 $ 64,569 October 2, January 2, Deferred Contract Liabilities included in: Other current liabilities $ 35,430 $ 35,288 Other non-current liabilities 63,703 49,689 $ 99,133 $ 84,977
Disaggregation of Revenue	Net sales were as follows (in thousands): Three Months Ended Nine Months Ended October 2, September 26, October 2, September 26, Retail stores $ 565,939 $ 456,756 $ 1,481,780 $ 1,097,872 Online, phone, chat and other 74,454 74,399 211,185 190,787 Total Company $ 640,393 $ 531,155 $ 1,692,965 $ 1,288,659
Schedule of Sales Return Liability	The activity in the sales returns liability account was as follows (in thousands): Nine Months Ended October 2, September 26, Balance at beginning of year $ 24,765 $ 19,809 Additions that reduce net sales 69,877 55,086 Deductions from reserves (66,124) (50,810) Balance at end of period $ 28,518 $ 24,085

Stock-based Compensation Expe_2

Stock-based Compensation Expense (Tables)	9 Months Ended
	Oct. 02, 2021
Share-based Payment Arrangement [Abstract]
Schedule of Stock-Based Compensation Expense	Total stock-based compensation expense was as follows (in thousands): Three Months Ended Nine Months Ended October 2, September 26, October 2, September 26, Stock awards $ 6,506 $ 7,930 17,533 $ 13,776 Stock options 810 540 2,168 1,778 Total stock-based compensation expense (1) 7,316 8,470 19,701 15,554 Income tax benefit 1,835 2,081 4,906 3,795 Total stock-based compensation expense, net of tax $ 5,481 $ 6,389 $ 14,795 $ 11,759 ___________________________ (1) Changes in stock-based compensation expense reflect the cumulative impact of the change in the expected achievements of certain performance targets.

Net Income per Common Share (Ta

Net Income per Common Share (Tables)	9 Months Ended
	Oct. 02, 2021
Earnings Per Share [Abstract]
Components of Basic and Diluted Net (Loss) Income per 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 2, September 26, October 2, September 26, Net income $ 53,721 $ 51,320 $ 142,605 $ 77,830 Reconciliation of weighted-average shares outstanding: Basic weighted-average shares outstanding 23,464 27,973 24,404 27,918 Dilutive effect of stock-based awards 769 661 920 642 Diluted weighted-average shares outstanding 24,233 28,634 25,324 28,560 Net income per share – basic $ 2.29 $ 1.83 $ 5.84 $ 2.79 Net income per share – diluted $ 2.22 $ 1.79 $ 5.63 $ 2.73

Commitments and Contingencies (

Commitments and Contingencies (Tables)	9 Months Ended
	Oct. 02, 2021
Commitments and Contingencies Disclosure [Abstract]
Warranty Liabilities	The activity in the accrued warranty liabilities account was as follows (in thousands): Nine Months Ended October 2, September 26, Balance at beginning of year $ 12,152 $ 11,345 Additions charged to costs and expenses for current-year sales 12,780 9,111 Deductions from reserves (13,489) (8,034) Changes in liability for pre-existing warranties during the current year, including expirations (380) (381) Balance at end of period $ 11,063 $ 12,041

Fair Value Measurements (Detail

Fair Value Measurements (Details) - Level 1 - USD ($) $ in Millions	Oct. 02, 2021	Jan. 02, 2021
Other non-current assets | Available-for-sale securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities assets funding the deferred compensation plan	$ 18	$ 12
Other non-current liabilities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Deferred compensation plan liability	$ 18	$ 12

Inventories (Details)

Inventories (Details) - USD ($) $ in Thousands	Oct. 02, 2021	Jan. 02, 2021
Inventory Disclosure [Abstract]
Raw materials	$ 8,748	$ 12,599
Work in progress	93	103
Finished goods	77,288	68,660
Inventories	$ 86,129	$ 81,362

Goodwill and Intangible Asset_3

Goodwill and Intangible Assets, Net - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 02, 2021	Sep. 26, 2020	Oct. 02, 2021	Sep. 26, 2020	Jan. 02, 2021
Goodwill And Intangible Assets [Line Items]
Goodwill	$ 64,000		$ 64,000		$ 64,000
Developed Technologies
Goodwill And Intangible Assets [Line Items]
Gross carrying amount	19,000		19,000		19,000
Accumulated amortization	15,000		15,000		13,000
Amortization expense	500	$ 600	1,600	$ 1,700
Patents
Goodwill And Intangible Assets [Line Items]
Gross carrying amount	2,000		2,000		2,000
Accumulated amortization	300		300		100
Amortization expense	55	$ 55	200	$ 55
Trade Names
Goodwill And Intangible Assets [Line Items]
Indefinite-lived trade name/trademarks	$ 1,400		$ 1,400		$ 1,400

Goodwill and Intangible Asset_4

Goodwill and Intangible Assets, Net - Annual Amortization for Definite-Lived Intangible (Details) $ in Thousands	Oct. 02, 2021USD ($)
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
2021 (excluding the nine months ended October 2, 2021)	$ 600
2022	2,403
2023	1,431
2024	222
2025	226
2026	222
Thereafter	522
Total future amortization for definite-lived intangible assets	$ 5,626

Credit Agreement - Additional I

Credit Agreement - Additional Information (Details) - USD ($) $ in Millions	Oct. 02, 2021	Jan. 02, 2021
Debt Disclosure [Abstract]
Current borrowing capacity	$ 600
Maximum leverage ratio	450.00%
Minimum interest coverage ratio	300.00%
Total commitment amount	$ 800	$ 600

Credit Agreement - Schedule of

Credit Agreement - Schedule of Borrowings Under Credit Facility (Details) - USD ($) $ in Thousands	Oct. 02, 2021	Jan. 02, 2021
Debt Disclosure [Abstract]
Outstanding borrowings	$ 359,100	$ 244,200
Outstanding letters of credit	3,997	3,997
Additional borrowing capacity	$ 236,903	$ 201,803
Weighted-average interest rate	1.60%	1.50%

Leases - Additional Information

Leases - Additional Information (Details)	Oct. 02, 2021
Minimum | Retail Store Leases
Lessee, Lease, Description [Line Items]
Lease term	5 years
Minimum | Lease Vehicles and Certain Equipment Under Operating Leases
Lessee, Lease, Description [Line Items]
Lease term	3 years
Maximum | Retail Store Leases
Lessee, Lease, Description [Line Items]
Lease term	10 years
Maximum | Office and Manufacturing Leases
Lessee, Lease, Description [Line Items]
Lease term	15 years
Maximum | Lease Vehicles and Certain Equipment Under Operating Leases
Lessee, Lease, Description [Line Items]
Lease term	5 years

Leases - Schedule of Operating

Leases - Schedule of Operating Lease Costs (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 02, 2021	Sep. 26, 2020	Oct. 02, 2021	Sep. 26, 2020
Leases [Abstract]
Operating lease costs	$ 25,632	$ 22,512	$ 73,623	$ 67,815
Variable lease costs	$ 826	$ 333	$ 2,181	$ 608

Leases - Schedule of Maturities

Leases - Schedule of Maturities of Operating Lease Liabilities (Details) - USD ($) $ in Thousands	Oct. 02, 2021	Jan. 02, 2021
Leases [Abstract]
2021 (excluding the nine months ended October 2, 2021)	$ 23,414
2022	90,193
2023	80,741
2024	68,961
2025	59,384
2026	48,662
Thereafter	109,699
Total operating lease payments	481,054
Less: Interest	84,158
Present value of operating lease liabilities	396,896
Amount of lease payments deferred due to COVID-19	800
Amount leases executed, not yet commenced, excluded from table.	69,000
Operating lease liabilities, current	$ 69,316	$ 62,077

Leases - Schedule of Other Info

Leases - Schedule of Other Information Related Operating Leases (Details) - USD ($) $ in Thousands	9 Months Ended
	Oct. 02, 2021	Sep. 26, 2020	Jan. 02, 2021
Leases [Abstract]
Weighted-average remaining lease term (years)	6 years 6 months		6 years 3 months 18 days
Weighted-average discount rate	6.20%		6.90%
Cash paid for amounts included in present value of operating lease liabilities	$ 66,561	$ 64,208
Right-of-use assets obtained in exchange for operating lease liabilities	$ 78,192	$ 28,772

Repurchases of Common Stock - S

Repurchases of Common Stock - Schedule of Repurchase of Common Stock (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 02, 2021	Sep. 26, 2020	Oct. 02, 2021	Sep. 26, 2020
Repurchases Of Common Stock [Abstract]
Amount repurchased under Board-approved share repurchase program	$ 97,046	$ 0	$ 364,478	$ 38,111
Amount repurchased in connection with the vesting of employee restricted stock grants	711	149	17,763	3,319
Total amount repurchased (based on trade dates)	$ 97,757	$ 149	$ 382,241	$ 41,430

Repurchases of Common Stock - A

Repurchases of Common Stock - Additional Information (Details) $ in Millions	Oct. 02, 2021USD ($)
Repurchases Of Common Stock [Abstract]
Authorized share repurchase program	$ 600
Remaining authorized stock purchase plan	$ 403

Revenue Recognition - Schedule

Revenue Recognition - Schedule of Deferred Contract Assets and Deferred Contract Liabilities (Details) - USD ($) $ in Thousands	Oct. 02, 2021	Jan. 02, 2021
Deferred Contract Assets included in:
Deferred contract assets	$ 76,240	$ 64,569
Deferred Contract Liabilities included in:
Deferred contract liabilities	99,133	84,977
Other current assets
Deferred Contract Assets included in:
Other current assets	27,115	26,593
Other non-current assets
Deferred Contract Assets included in:
Other non-current assets	49,125	37,976
Other current liabilities
Deferred Contract Liabilities included in:
Other current liabilities	35,430	35,288
Other non-current liabilities
Deferred Contract Liabilities included in:
Other non-current liabilities	$ 63,703	$ 49,689

Revenue Recognition - Additiona

Revenue Recognition - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Oct. 02, 2021	Sep. 26, 2020	Oct. 02, 2021	Sep. 26, 2020
Disaggregation of Revenue [Line Items]
Revenue recognized, included in beginning deferred contract liability balance	$ 8	$ 9	$ 22	$ 27
SleepIQ Technology
Disaggregation of Revenue [Line Items]
Estimated product life			4 years 6 months
Transferred at Point in Time | Revenue from Contract with Customer Benchmark | Timing of Transfer of Goods or Services Concentration Risk
Disaggregation of Revenue [Line Items]
Revenue recognized at a point in time	99.00%	98.00%	99.00%	98.00%

Revenue Recognition - Disaggreg

Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 02, 2021	Sep. 26, 2020	Oct. 02, 2021	Sep. 26, 2020
Disaggregation of Revenue [Line Items]
Net sales	$ 640,393	$ 531,155	$ 1,692,965	$ 1,288,659
Retail stores
Disaggregation of Revenue [Line Items]
Net sales	565,939	456,756	1,481,780	1,097,872
Online, phone, chat and other
Disaggregation of Revenue [Line Items]
Net sales	$ 74,454	$ 74,399	$ 211,185	$ 190,787

Revenue Recognition - Schedul_2

Revenue Recognition - Schedule of Sales Return Liability (Details) - USD ($) $ in Thousands	9 Months Ended
	Oct. 02, 2021	Sep. 26, 2020
Sales Return Liability [Roll Forward]
Balance at beginning of year	$ 24,765	$ 19,809
Additions that reduce net sales	69,877	55,086
Deductions from reserves	(66,124)	(50,810)
Balance at end of period	$ 28,518	$ 24,085

Stock-based Compensation Expe_3

Stock-based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 02, 2021	Sep. 26, 2020	Oct. 02, 2021	Sep. 26, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock based compensation expense	$ 7,316	$ 8,470	$ 19,701	$ 15,554
Income tax benefit	1,835	2,081	4,906	3,795
Total stock-based compensation expense, net of tax	5,481	6,389	14,795	11,759
Stock awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock based compensation expense	6,506	7,930	17,533	13,776
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock based compensation expense	$ 810	$ 540	$ 2,168	$ 1,778

Profit Sharing and 401(k) Plan

Profit Sharing and 401(k) Plan (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Oct. 02, 2021	Sep. 26, 2020	Oct. 02, 2021	Sep. 26, 2020
Profit Sharing And 401 (k) Plan [Abstract]
Employee compensation deferral (as a percent)			50.00%
Employer contributions	$ 2	$ 2.1	$ 5.7	$ 4.2

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. 02, 2021	Jul. 03, 2021	Apr. 03, 2021	Sep. 26, 2020	Jun. 27, 2020	Mar. 28, 2020	Oct. 02, 2021	Sep. 26, 2020
Earnings Per Share [Abstract]
Net income	$ 53,721	$ 22,250	$ 66,634	$ 51,320	$ (12,630)	$ 39,140	$ 142,605	$ 77,830
Reconciliation of weighted-average shares outstanding:
Basic weighted-average shares outstanding (in shares)	23,464,000			27,973,000			24,404,000	27,918,000
Dilutive effect of stock-based awards (in shares)	769,000			661,000			920,000	642,000
Diluted weighted-average shares outstanding (in shares)	24,233,000			28,634,000			25,324,000	28,560,000
Net income per share – basic (in dollars per share)	$ 2.29			$ 1.83			$ 5.84	$ 2.79
Net income per share – diluted (in dollars per share)	$ 2.22			$ 1.79			$ 5.63	$ 2.73

Commitments and Contingencies_2

Commitments and Contingencies (Details) - USD ($) $ in Thousands	9 Months Ended
	Oct. 02, 2021	Sep. 26, 2020
Warranty Liabilities [Roll Forward]
Balance at beginning of year	$ 12,152	$ 11,345
Additions charged to costs and expenses for current-year sales	12,780	9,111
Deductions from reserves	(13,489)	(8,034)
Changes in liability for pre-existing warranties during the current year, including expirations	(380)	(381)
Balance at end of period	$ 11,063	$ 12,041

COVID-19 Pandemic (Details)

COVID-19 Pandemic (Details)	3 Months Ended
	Jun. 27, 2020
Average
Unusual or Infrequent Item, or Both [Line Items]
Percentage of stores that are closed	47.00%