Document and Entity Information
Document and Entity Information | 6 Months Ended |
Jun. 29, 2019shares | |
Document And Entity Information [Abstract] | |
Entity Registrant Name | SLEEP NUMBER CORP |
Trading Symbol | SNBR |
Entity Central Index Key | 0000827187 |
Current Fiscal Year End Date | --12-28 |
Entity Filer Category | Large Accelerated Filer |
Document Type | 10-Q |
Document Period End Date | Jun. 29, 2019 |
Document Fiscal Year Focus | 2019 |
Document Fiscal Period Focus | Q2 |
Amendment Flag | false |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Entity Common Stock, Shares Outstanding | 29,323,000 |
Entity Current Reporting Status | Yes |
Entity Shell Company | false |
Entity File Number | 000-25121 |
Entity Tax Identification Number | 411597886 |
Entity Address, Address Line One | 1001 Third Avenue South |
Entity Address, City or Town | Minneapolis |
Entity Address, State or Province | Minnesota |
Entity Address, Postal Zip Code | 55404 |
City Area Code | 763 |
Local Phone Number | 551-7000 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Jun. 29, 2019 | Dec. 29, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 1,684 | $ 1,612 |
Accounts receivable, net of allowance for doubtful accounts of $717 and $699, respectively | 19,581 | 24,795 |
Inventories | 87,859 | 84,882 |
Income taxes receivable | 3,259 | 0 |
Prepaid expenses | 14,314 | 8,009 |
Other current assets | 31,939 | 31,559 |
Total current assets | 158,636 | 150,857 |
Non-current assets: | ||
Property and equipment, net | 202,280 | 205,631 |
Operating lease right-of-use assets | 316,958 | 0 |
Goodwill and intangible assets, net | 74,317 | 75,407 |
Other non-current assets | 43,722 | 38,243 |
Total assets | 795,913 | 470,138 |
Current liabilities: | ||
Borrowings under revolving credit facility | 281,500 | 199,600 |
Accounts payable | 117,343 | 144,781 |
Customer prepayments | 30,473 | 27,066 |
Accrued sales returns | 17,766 | 19,907 |
Compensation and benefits | 29,960 | 27,700 |
Taxes and withholding | 10,608 | 18,380 |
Operating lease liabilities | 56,167 | 0 |
Other current liabilities | 48,720 | 51,234 |
Total current liabilities | 592,537 | 488,668 |
Non-current liabilities: | ||
Deferred income taxes | 5,543 | 4,822 |
Operating lease liabilities | 290,880 | 0 |
Other non-current liabilities | 64,255 | 86,198 |
Total liabilities | 953,215 | 579,688 |
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, 29,323 and 30,868 shares issued and outstanding, respectively | 293 | 309 |
Additional paid-in capital | 0 | 0 |
Accumulated deficit | (157,595) | (109,859) |
Total shareholders’ deficit | (157,302) | (109,550) |
Total liabilities and shareholders’ deficit | $ 795,913 | $ 470,138 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) (Unaudited) - USD ($) $ in Thousands | Jun. 29, 2019 | Dec. 29, 2018 |
Current assets: | ||
Allowance for doubtful accounts | $ 717 | $ 699 |
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) | 29,323,000 | 30,868,000 |
Common stock, shares outstanding (in shares) | 29,323,000 | 30,868,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2019 | Jun. 30, 2018 | Jun. 29, 2019 | Jun. 30, 2018 | |
Income Statement [Abstract] | ||||
Net sales | $ 355,963 | $ 316,338 | $ 782,408 | $ 704,971 |
Cost of sales | 138,777 | 127,450 | 302,989 | 278,606 |
Gross profit | 217,186 | 188,888 | 479,419 | 426,365 |
Operating expenses: | ||||
Sales and marketing | 168,839 | 151,106 | 355,666 | 323,023 |
General and administrative | 33,045 | 28,828 | 67,368 | 60,562 |
Research and development | 8,057 | 6,868 | 16,433 | 13,793 |
Total operating expenses | 209,941 | 186,802 | 439,467 | 397,378 |
Operating income | 7,245 | 2,086 | 39,952 | 28,987 |
Interest expense, net | 3,228 | 1,453 | 5,837 | 1,978 |
Income before income taxes | 4,017 | 633 | 34,115 | 27,009 |
Income tax (benefit) expense | (263) | (3,111) | 4,417 | 2,717 |
Net income | $ 4,280 | $ 3,744 | $ 29,698 | $ 24,292 |
Basic net income per share: | ||||
Net income per share – basic | $ 0.14 | $ 0.10 | $ 0.98 | $ 0.65 |
Weighted-average shares – basic | 29,873,000 | 36,138,000 | 30,247,000 | 37,191,000 |
Diluted net income per share: | ||||
Net income per share – diluted | $ 0.14 | $ 0.10 | $ 0.95 | $ 0.64 |
Weighted-average shares – diluted | 30,531,000 | 36,844,000 | 31,134,000 | 38,096,000 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Shareholders' (Deficit) Equity (unaudited) - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Retained Earnings (Accumulated Deficit) |
Balance at Dec. 30, 2017 | $ 89,156 | $ 388 | $ 0 | $ 88,768 |
Balance (in shares) at Dec. 30, 2017 | 38,813,000 | |||
Net income | 20,548 | $ 0 | 0 | 20,548 |
Exercise of common stock options | 857 | $ 1 | 856 | 0 |
Exercise of common stock options (in shares) | 68,000 | |||
Stock-based compensation | 3,084 | $ 2 | 3,082 | 0 |
Stock-based compensation (in shares) | 211,000 | |||
Repurchases of common stock | (77,648) | $ (22) | (3,938) | (73,688) |
Repurchases of common stock (in shares) | (2,149,000) | |||
Balance at Mar. 31, 2018 | 35,997 | $ 369 | 0 | 35,628 |
Balance (in shares) at Mar. 31, 2018 | 36,943,000 | |||
Balance at Dec. 30, 2017 | 89,156 | $ 388 | 0 | 88,768 |
Balance (in shares) at Dec. 30, 2017 | 38,813,000 | |||
Net income | 24,292 | |||
Balance at Jun. 30, 2018 | (21,154) | $ 349 | 0 | (21,503) |
Balance (in shares) at Jun. 30, 2018 | 34,893,000 | |||
Balance at Mar. 31, 2018 | 35,997 | $ 369 | 0 | 35,628 |
Balance (in shares) at Mar. 31, 2018 | 36,943,000 | |||
Net income | 3,744 | $ 0 | 0 | 3,744 |
Exercise of common stock options | 739 | $ 0 | 739 | 0 |
Exercise of common stock options (in shares) | 56,000 | |||
Stock-based compensation | 3,658 | $ 1 | 3,657 | 0 |
Stock-based compensation (in shares) | 43,000 | |||
Repurchases of common stock | (65,292) | $ (21) | (4,396) | (60,875) |
Repurchases of common stock (in shares) | (2,149,000) | |||
Balance at Jun. 30, 2018 | (21,154) | $ 349 | 0 | (21,503) |
Balance (in shares) at Jun. 30, 2018 | 34,893,000 | |||
Balance at Dec. 29, 2018 | $ (109,550) | $ 309 | 0 | (109,859) |
Balance (in shares) at Dec. 29, 2018 | 30,868,000 | 30,868,000 | ||
Net income | $ 25,418 | $ 0 | 0 | 25,418 |
Exercise of common stock options | 2,836 | $ 2 | 2,834 | 0 |
Exercise of common stock options (in shares) | 151,000 | |||
Stock-based compensation | 3,638 | $ 3 | 3,635 | 0 |
Stock-based compensation (in shares) | 364,000 | |||
Repurchases of common stock | (46,982) | $ (12) | (6,469) | (40,501) |
Repurchases of common stock (in shares) | (1,170,000) | |||
Balance at Mar. 30, 2019 | (124,640) | $ 302 | 0 | (124,942) |
Balance (in shares) at Mar. 30, 2019 | 30,213,000 | |||
Balance at Dec. 29, 2018 | $ (109,550) | $ 309 | 0 | (109,859) |
Balance (in shares) at Dec. 29, 2018 | 30,868,000 | 30,868,000 | ||
Net income | $ 29,698 | |||
Balance at Jun. 29, 2019 | $ (157,302) | $ 293 | 0 | (157,595) |
Balance (in shares) at Jun. 29, 2019 | 29,323,000 | 29,323,000 | ||
Balance at Mar. 30, 2019 | $ (124,640) | $ 302 | 0 | (124,942) |
Balance (in shares) at Mar. 30, 2019 | 30,213,000 | |||
Net income | 4,280 | $ 0 | 0 | 4,280 |
Exercise of common stock options | 2,159 | $ 1 | 2,158 | 0 |
Exercise of common stock options (in shares) | 115,000 | |||
Stock-based compensation | 4,250 | $ 1 | 4,249 | 0 |
Stock-based compensation (in shares) | 99,000 | |||
Repurchases of common stock | (43,351) | $ (11) | (6,407) | (36,933) |
Repurchases of common stock (in shares) | (1,104,000) | |||
Balance at Jun. 29, 2019 | $ (157,302) | $ 293 | $ 0 | $ (157,595) |
Balance (in shares) at Jun. 29, 2019 | 29,323,000 | 29,323,000 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 29, 2019 | Jun. 30, 2018 | |
Cash flows from operating activities: | ||
Net income | $ 29,698 | $ 24,292 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 31,187 | 31,089 |
Stock-based compensation | 7,888 | 6,742 |
Net (gain) loss on disposals and impairments of assets | (431) | 15 |
Deferred income taxes | 721 | 7,212 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 5,214 | (2,753) |
Inventories | (2,977) | (5,943) |
Income taxes | (9,195) | (19,075) |
Prepaid expenses and other assets | (8,580) | 8,242 |
Accounts payable | 12,408 | (4,859) |
Customer prepayments | 3,407 | 369 |
Accrued compensation and benefits | 2,348 | (9,944) |
Other taxes and withholding | (1,836) | (2,608) |
Other accruals and liabilities | 495 | (3,648) |
Net cash provided by operating activities | 70,347 | 29,131 |
Cash flows from investing activities: | ||
Purchases of property and equipment | (33,896) | (21,341) |
Proceeds from sales of property and equipment | 2,571 | 70 |
Net cash used in investing activities | (31,325) | (21,271) |
Cash flows from financing activities: | ||
Repurchases of common stock | (99,684) | (142,940) |
Net increase in short-term borrowings | 56,758 | 133,253 |
Proceeds from issuance of common stock | 4,995 | 1,596 |
Debt issuance costs | (1,019) | (1,013) |
Net cash used in financing activities | (38,950) | (9,104) |
Net increase (decrease) in cash and cash equivalents | 72 | (1,244) |
Cash and cash equivalents, at beginning of period | 1,612 | 3,651 |
Cash and cash equivalents, at end of period | $ 1,684 | $ 2,407 |
Business and Summary of Signifi
Business and Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 29, 2019 | |
Accounting Policies [Abstract] | |
Business and Summary of Significant Accounting Policies | 1. 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 six months ended June 29, 2019 of Sleep Number Corporation and 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 June 29, 2019 and December 29, 2018, 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 December 29, 2018 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 consolidated 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 Sleep Number Corporation and our 100%-owned subsidiaries. All significant intra-entity balances and transactions have been eliminated in consolidation. New Accounting Pronouncements Recently Adopted Accounting Guidance Effective December 30, 2018 (beginning of fiscal 2019), we adopted ASC Topic 842, Leases The new guidance establishes a right-of-use (ROU) model that requires us to recognize a ROU asset and lease liability on the balance sheet for all leases with a term longer than 12 months. We have elected the following practical expedients and accounting policies related to the adoption of the new lease standard: • We did not reassess our prior conclusions about lease identification, lease classification and initial direct costs; • We did not elect the use of hindsight; • We adopted an accounting policy for short-term leases allowing us to not recognize ROU assets and lease liabilities for leases with a term of 12 months or less; and • We elected the option to not separate lease and non-lease components for all of our leases. In accordance with the new guidance on December 30, 2018, we recorded $299 million of net operating lease ROU assets and $327 million of operating lease liabilities ($52 million recorded in current operating lease liabilities and $275 million in non-current operating lease liabilities). Deferred rent and lease incentive liabilities associated with historical operating leases totaling $28 million were reclassified to the operating lease ROU assets as required by ASC Topic 842. The adoption of the new guidance had no impact on accumulated deficit, net income or net cash provided by operating activities. At December 30, 2018, our finance ROU assets and lease liabilities were not significant. See Note 6, Leases |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 29, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 2. Fair Value Measurements At June 29, 2019 and December 29, 2018, we had $7 million and $6 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 $7 million and $6 million at June 29, 2019 and December 29, 2018, 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 | 6 Months Ended |
Jun. 29, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | 3. Inventories Inventories consisted of the following (in thousands): June 29, 2019 December 29, 2018 Raw materials $ 6,534 $ 4,549 Work in progress 199 3 Finished goods 81,126 80,330 $ 87,859 $ 84,882 |
Goodwill and Intangible Assets,
Goodwill and Intangible Assets, Net | 6 Months Ended |
Jun. 29, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets, Net | 4. Goodwill and Intangible Assets, Net Goodwill and Indefinite-Lived Intangible Assets Goodwill was $64 million at June 29, 2019 and December 29, 2018. Indefinite-lived trade name/trademarks totaled $1.4 million at June 29, 2019 and December 29, 2018. Definite-Lived Intangible Assets The gross carrying amount of our developed technologies was $19 million at June 29, 2019 and December 29, 2018. Accumulated amortization was $10 million and $9 million at June 29, 2019 and December 29, 2018, respectively. Amortization expense for the three months ended June 29, 2019 and June 30, 2018, was $0.5 million. Amortization expense for the six months ended June 29, 2019 and June 30, 2018, was $1.1 million. |
Credit Agreement
Credit Agreement | 6 Months Ended |
Jun. 29, 2019 | |
Debt Disclosure [Abstract] | |
Debt | 5. Credit Agreement Our $450 million 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). Under the terms of the credit agreement, we pay a variable rate of interest and a commitment fee based on our leverage ratio. The credit agreement includes an accordion feature which allows us to increase the amount of the credit facility from $450 million to $600 million, subject to lenders' approval. The credit agreement matures in February 2024. We were in compliance with all financial covenants as of June 29, 2019. The following table summarizes our borrowings under the credit facility ($ in thousands): June 29, 2019 December 29, 2018 Outstanding borrowings $ 281,500 $ 199,600 Outstanding letters of credit $ 3,497 $ 3,497 Additional borrowing capacity $ 165,003 $ 96,903 Weighted-average interest rate 4.2 % 4.2 % |
Leases
Leases | 6 Months Ended |
Jun. 29, 2019 | |
Leases [Abstract] | |
Leases of Lessee Disclosure | 6 . 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 to 10 years. Our office and manufacturing leases provide for an initial lease term of up to 15 years. In addition, our mall-based retail store leases may require payment of variable rent based on net sales in excess of certain thresholds. Certain leases may contain options to extend the term of the original lease. The exercise of lease renewal options is at our sole discretion. Lease options are included in the lease term only if exercise is reasonably certain at lease commencement. Our lease agreements do not contain any material residual value guarantees. We also lease vehicles and certain equipment under operating leases with an initial lease term of three to five years. We determine if an arrangement is a lease at inception. Beginning in 2019 in conjunction with our adoption of ASC Topic 842, Leases ost of our leases do not provide an implicit interest rate nor is the rate available to us from our lessors. As an alternative, 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 is reasonably estimable. Future payments for real estate taxes and certain building operating expenses for which we are obligated are not included in operating lease costs. Leases with an initial term of 12 months or less are not recorded on the balance sheet as a ROU asset or operating lease liability. We recognize operating lease costs for these short-term leases, primarily small equipment leases, on a straight-line basis over the lease term. At June 29, 2019, our finance ROU assets and lease liabilities were not significant. Operating lease costs were as follows (in thousands): Three Months Ended Six Months Ended June 29, 2019 June 29, 2019 Operating lease costs (1) $ 21,079 $ 42,136 Variable lease costs $ 423 $ 921 (1) The maturities of operating lease liabilities as of June 29, 2019, were as follows (in thousands): 2019 (excluding the six months ended June 29, 2019) $ 40,752 2020 76,056 2021 68,532 2022 60,889 2023 52,339 2024 41,107 Thereafter 104,731 Total lease payments (1) 444,406 Less: Interest 97,359 Present value of operating lease liabilities (2) $ 347,047 (1) (2) The aggregate future commitments under operating leases as of December 30, 2018, were expected to be as follows (in thousands): 2019 $ 78,337 2020 73,331 2021 66,491 2022 59,515 2023 51,076 Thereafter 149,318 Total lease payments (1) $ 478,068 (1) Other information related to operating leases was as follows: June 29, 2019 Weighted-average remaining lease term (years) 6.8 Weighted-average discount rate 7.4% Six Months Ended (in thousands) June 29, 2019 Cash paid for amounts included in present value of operating lease liabilities $ 39,941 Right-of-use assets obtained in exchange for operating lease liabilities (1) $ 36,543 (1) Recently Adopted Accounting Guidance |
Repurchases of Common Stock
Repurchases of Common Stock | 6 Months Ended |
Jun. 29, 2019 | |
Repurchases Of Common Stock [Abstract] | |
Repurchases of Common Stock | 7. Repurchases of Common Stock Repurchases of our common stock were as follows (in thousands): Three Months Ended Six Months Ended June 29, 2019 June 30, 2018 June 29, 2019 June 30, 2018 Amount repurchased under Board-approved share repurchase program $ 40,000 $ 65,000 $ 80,900 $ 140,000 Amount repurchased in connection with the vesting of employee restricted stock grants 3,351 292 9,433 2,940 Total amount repurchased $ 43,351 $ 65,292 $ 90,333 $ 142,940 As of June 29, 2019, the remaining authorization under our Board-approved share repurchase program was $105 million. |
Revenue Recognition
Revenue Recognition | 6 Months Ended |
Jun. 29, 2019 | |
Revenue Recognition [Abstract] | |
Revenue Recognition | 8. Revenue Recognition Deferred contract assets and deferred contract liabilities are included in our consolidated balance sheets as follows (in thousands): June 29, 2019 December 29, 2018 Deferred Contract Assets included in: Other current assets $ 21,726 $ 20,553 Other non-current assets 30,930 29,456 $ 52,656 $ 50,009 June 29, 2019 December 29, 2018 Deferred Contract Liabilities included in: Other current liabilities $ 33,053 $ 32,395 Other non-current liabilities 42,340 42,194 $ 75,393 $ 74,589 During both the three months ended June 29, 2019 and June 30, 2018, we recognized revenue of $8 million that was included in the deferred contract liability balance at the beginning of the respective periods. During the six months ended June 29, 2019 and June 30, 2018, we recognized revenue of $17 million and $16 million, respectively, that was included in the deferred contract liability balance at the beginning of the respective periods. Revenue from goods and services transferred to customers at a point in time accounted for approximately 98% and 97% of our revenues for the three months ended June 29, 2019 and June 30, 2018, respectively. Revenue from goods and services transferred to customers at a point in time accounted for approximately 98% of our revenues for both the six months ended June 29, 2019 and June 30, 2018. Net sales from each of our channels was as follows (in thousands): Three Months Ended Six Months Ended June 29, 2019 June 30, 2018 June 29, 2019 June 30, 2018 Retail $ 327,999 $ 286,853 $ 720,225 $ 642,922 Online and phone 25,412 24,927 55,175 52,894 Company-Controlled channel 353,411 311,780 775,400 695,816 Wholesale/Other channel 2,552 4,558 7,008 9,155 Total $ 355,963 $ 316,338 $ 782,408 $ 704,971 Obligation for Sales Returns The activity in the sales returns liability account was as follows (in thousands): Six Months Ended June 29, 2019 June 30, 2018 Balance at beginning of year $ 19,907 $ 19,270 Additions that reduce net sales 37,543 36,555 Deductions from reserves (39,684 ) (39,298 ) Balance at end of period $ 17,766 $ 16,527 |
Stock-Based Compensation Expens
Stock-Based Compensation Expense | 6 Months Ended |
Jun. 29, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation Expense | 9. Stock-Based Compensation Expense Total stock-based compensation expense was as follows (in thousands): Three Months Ended Six Months Ended June 29, 2019 June 30, 2018 June 29, 2019 June 30, 2018 Stock awards $ 3,696 $ 2,996 $ 6,729 $ 5,488 Stock options 554 662 1,159 1,254 Total stock-based compensation expense 4,250 3,658 7,888 6,742 Income tax benefit 1,066 896 1,964 1,652 Total stock-based compensation expense, net of tax $ 3,184 $ 2,762 $ 5,924 $ 5,090 |
Profit Sharing and 401(k) Plan
Profit Sharing and 401(k) Plan | 6 Months Ended |
Jun. 29, 2019 | |
Profit Sharing And401 K Plan [Abstract] | |
Profit Sharing and 401(k) Plan | 10. 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 pay period, we may make a discretionary contribution equal to a percentage of the employee’s contribution. During the three months ended June 29, 2019 and June 30, 2018, our contributions, net of forfeitures, were $1.5 million and $1.3 million, respectively. During the six months ended June 29, 2019 and June 30, 2018, our contributions, net of forfeitures, were $3.0 million and $2.7 million, respectively. |
Net Income Per Common Share
Net Income Per Common Share | 6 Months Ended |
Jun. 29, 2019 | |
Earnings Per Share [Abstract] | |
Net Income per Common Share | 11. The components of basic and diluted net income per share were as follows (in thousands, except per share amounts): Three Months Ended Six Months Ended June 29, 2019 June 30, 2018 June 29, 2019 June 30, 2018 Net income $ 4,280 $ 3,744 $ 29,698 $ 24,292 Reconciliation of weighted-average shares outstanding: Basic weighted-average shares outstanding 29,873 36,138 30,247 37,191 Dilutive effect of stock-based awards 658 706 887 905 Diluted weighted-average shares outstanding 30,531 36,844 31,134 38,096 Net income per share – basic $ 0.14 $ 0.10 $ 0.98 $ 0.65 Net income per share – diluted $ 0.14 $ 0.10 $ 0.95 $ 0.64 For the three and six months ended June 29, 2019 and June 30, 2018, anti-dilutive stock-based awards excluded from the diluted net income per share calculations were immaterial. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 29, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 12. Commitments and Contingencies Warranty Liabilities The activity in the accrued warranty liabilities account was as follows (in thousands): Six Months Ended June 29, 2019 June 30, 2018 Balance at beginning of year $ 10,389 $ 9,320 Additions charged to costs and expenses for current-year sales 5,003 6,106 Deductions from reserves (5,591 ) (5,790 ) Changes in liability for pre-existing warranties during the current year, including expirations 1,418 132 Balance at end of period $ 11,219 $ 9,768 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 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 losses either because we believe that we have valid defenses to claims asserted against us or the proceeding has not advanced to a stage of discovery that would enable us to establish an estimate. We currently do not expect the outcome of 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 September 18, 2018, two former Home Delivery employees filed suit, now venued in Superior Court in Fresno County, California, alleging representative claims on a purported class action basis under the California Labor Code Private Attorney General Act. While the two representative plaintiffs were in the Home Delivery workforce, the Complaint does not limit the purported plaintiff class to that group. The plaintiffs allege that Sleep Number failed or refused to adopt adequate practices, policies and procedures relating to wage payments, record keeping, employment disclosures, meal and rest breaks, among other claims, under California law. The Complaint seeks damages in the form of civil penalties and plaintiffs’ attorneys’ fees, and expressly disclaims the recovery of any purported individual specific relief or underpaid wages. We intend to vigorously defend this matter. On March 27, 2018, Level Sleep, LLC 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. The case is scheduled for trial in February 2020 and is in the pre-trial discovery process. We intend to vigorously defend this matter. |
Business and Summary of Signi_2
Business and Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 29, 2019 | |
Accounting Policies [Abstract] | |
Business and Basis of Presentation | We prepared the condensed consolidated financial statements as of and for the three and six months ended June 29, 2019 of Sleep Number Corporation and 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 June 29, 2019 and December 29, 2018, 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 December 29, 2018 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. Changes in these estimates will be reflected in the consolidated 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 | 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. |
New Accounting Pronouncements | New Accounting Pronouncements Recently Adopted Accounting Guidance Effective December 30, 2018 (beginning of fiscal 2019), we adopted ASC Topic 842, Leases The new guidance establishes a right-of-use (ROU) model that requires us to recognize a ROU asset and lease liability on the balance sheet for all leases with a term longer than 12 months. We have elected the following practical expedients and accounting policies related to the adoption of the new lease standard: • We did not reassess our prior conclusions about lease identification, lease classification and initial direct costs; • We did not elect the use of hindsight; • We adopted an accounting policy for short-term leases allowing us to not recognize ROU assets and lease liabilities for leases with a term of 12 months or less; and • We elected the option to not separate lease and non-lease components for all of our leases. In accordance with the new guidance on December 30, 2018, we recorded $299 million of net operating lease ROU assets and $327 million of operating lease liabilities ($52 million recorded in current operating lease liabilities and $275 million in non-current operating lease liabilities). Deferred rent and lease incentive liabilities associated with historical operating leases totaling $28 million were reclassified to the operating lease ROU assets as required by ASC Topic 842. The adoption of the new guidance had no impact on accumulated deficit, net income or net cash provided by operating activities. At December 30, 2018, our finance ROU assets and lease liabilities were not significant. See Note 6, 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 to 10 years. Our office and manufacturing leases provide for an initial lease term of up to 15 years. In addition, our mall-based retail store leases may require payment of variable rent based on net sales in excess of certain thresholds. Certain leases may contain options to extend the term of the original lease. The exercise of lease renewal options is at our sole discretion. Lease options are included in the lease term only if exercise is reasonably certain at lease commencement. Our lease agreements do not contain any material residual value guarantees. We also lease vehicles and certain equipment under operating leases with an initial lease term of three to five years. We determine if an arrangement is a lease at inception. Beginning in 2019 in conjunction with our adoption of ASC Topic 842, Leases ost of our leases do not provide an implicit interest rate nor is the rate available to us from our lessors. As an alternative, 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 is reasonably estimable. Future payments for real estate taxes and certain building operating expenses for which we are obligated are not included in operating lease costs. Leases with an initial term of 12 months or less are not recorded on the balance sheet as a ROU asset or operating lease liability. We recognize operating lease costs for these short-term leases, primarily small equipment leases, on a straight-line basis over the lease term. At June 29, 2019, our finance ROU assets and lease liabilities were not significant. |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 29, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories consisted of the following (in thousands): June 29, 2019 December 29, 2018 Raw materials $ 6,534 $ 4,549 Work in progress 199 3 Finished goods 81,126 80,330 $ 87,859 $ 84,882 |
Credit Agreement (Tables)
Credit Agreement (Tables) | 6 Months Ended |
Jun. 29, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Borrowings Under Credit Facility | The following table summarizes our borrowings under the credit facility ($ in thousands): June 29, 2019 December 29, 2018 Outstanding borrowings $ 281,500 $ 199,600 Outstanding letters of credit $ 3,497 $ 3,497 Additional borrowing capacity $ 165,003 $ 96,903 Weighted-average interest rate 4.2 % 4.2 % |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 29, 2019 | |
Leases [Abstract] | |
Schedule of Operating Lease Costs | Operating lease costs were as follows (in thousands): Three Months Ended Six Months Ended June 29, 2019 June 29, 2019 Operating lease costs (1) $ 21,079 $ 42,136 Variable lease costs $ 423 $ 921 (1) |
Schedule of Maturities of Operating Lease Liabilities and Aggregate Future Commitments Under Operating Leases | The maturities of operating lease liabilities as of June 29, 2019, were as follows (in thousands): 2019 (excluding the six months ended June 29, 2019) $ 40,752 2020 76,056 2021 68,532 2022 60,889 2023 52,339 2024 41,107 Thereafter 104,731 Total lease payments (1) 444,406 Less: Interest 97,359 Present value of operating lease liabilities (2) $ 347,047 (1) (2) The aggregate future commitments under operating leases as of December 30, 2018, were expected to be as follows (in thousands): 2019 $ 78,337 2020 73,331 2021 66,491 2022 59,515 2023 51,076 Thereafter 149,318 Total lease payments (1) $ 478,068 (1) |
Schedule of Other Information Related Operating Leases | Other information related to operating leases was as follows: June 29, 2019 Weighted-average remaining lease term (years) 6.8 Weighted-average discount rate 7.4% Six Months Ended (in thousands) June 29, 2019 Cash paid for amounts included in present value of operating lease liabilities $ 39,941 Right-of-use assets obtained in exchange for operating lease liabilities (1) $ 36,543 (1) Recently Adopted Accounting Guidance |
Repurchases of Common Stock (Ta
Repurchases of Common Stock (Tables) | 6 Months Ended |
Jun. 29, 2019 | |
Repurchases Of Common Stock [Abstract] | |
Schedule of Repurchases of Common Stock | Repurchases of our common stock were as follows (in thousands): Three Months Ended Six Months Ended June 29, 2019 June 30, 2018 June 29, 2019 June 30, 2018 Amount repurchased under Board-approved share repurchase program $ 40,000 $ 65,000 $ 80,900 $ 140,000 Amount repurchased in connection with the vesting of employee restricted stock grants 3,351 292 9,433 2,940 Total amount repurchased $ 43,351 $ 65,292 $ 90,333 $ 142,940 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 6 Months Ended |
Jun. 29, 2019 | |
Revenue Recognition [Abstract] | |
Schedule of Deferred Contract Liabilities and Deferred Contract Assets | Deferred contract assets and deferred contract liabilities are included in our consolidated balance sheets as follows (in thousands): June 29, 2019 December 29, 2018 Deferred Contract Assets included in: Other current assets $ 21,726 $ 20,553 Other non-current assets 30,930 29,456 $ 52,656 $ 50,009 June 29, 2019 December 29, 2018 Deferred Contract Liabilities included in: Other current liabilities $ 33,053 $ 32,395 Other non-current liabilities 42,340 42,194 $ 75,393 $ 74,589 |
Disaggregation of Revenue | Net sales from each of our channels was as follows (in thousands): Three Months Ended Six Months Ended June 29, 2019 June 30, 2018 June 29, 2019 June 30, 2018 Retail $ 327,999 $ 286,853 $ 720,225 $ 642,922 Online and phone 25,412 24,927 55,175 52,894 Company-Controlled channel 353,411 311,780 775,400 695,816 Wholesale/Other channel 2,552 4,558 7,008 9,155 Total $ 355,963 $ 316,338 $ 782,408 $ 704,971 |
Schedule of Sales Return Liability | The activity in the sales returns liability account was as follows (in thousands): Six Months Ended June 29, 2019 June 30, 2018 Balance at beginning of year $ 19,907 $ 19,270 Additions that reduce net sales 37,543 36,555 Deductions from reserves (39,684 ) (39,298 ) Balance at end of period $ 17,766 $ 16,527 |
Stock-Based Compensation Expe_2
Stock-Based Compensation Expense (Tables) | 6 Months Ended |
Jun. 29, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Schedule of Stock-Based Compensation Expense | Total stock-based compensation expense was as follows (in thousands): Three Months Ended Six Months Ended June 29, 2019 June 30, 2018 June 29, 2019 June 30, 2018 Stock awards $ 3,696 $ 2,996 $ 6,729 $ 5,488 Stock options 554 662 1,159 1,254 Total stock-based compensation expense 4,250 3,658 7,888 6,742 Income tax benefit 1,066 896 1,964 1,652 Total stock-based compensation expense, net of tax $ 3,184 $ 2,762 $ 5,924 $ 5,090 |
Net Income Per Common Share (Ta
Net Income Per Common Share (Tables) | 6 Months Ended |
Jun. 29, 2019 | |
Earnings Per Share [Abstract] | |
Components of Basic and Diluted Net 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 Six Months Ended June 29, 2019 June 30, 2018 June 29, 2019 June 30, 2018 Net income $ 4,280 $ 3,744 $ 29,698 $ 24,292 Reconciliation of weighted-average shares outstanding: Basic weighted-average shares outstanding 29,873 36,138 30,247 37,191 Dilutive effect of stock-based awards 658 706 887 905 Diluted weighted-average shares outstanding 30,531 36,844 31,134 38,096 Net income per share – basic $ 0.14 $ 0.10 $ 0.98 $ 0.65 Net income per share – diluted $ 0.14 $ 0.10 $ 0.95 $ 0.64 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 29, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Warranty Liabilities | The activity in the accrued warranty liabilities account was as follows (in thousands): Six Months Ended June 29, 2019 June 30, 2018 Balance at beginning of year $ 10,389 $ 9,320 Additions charged to costs and expenses for current-year sales 5,003 6,106 Deductions from reserves (5,591 ) (5,790 ) Changes in liability for pre-existing warranties during the current year, including expirations 1,418 132 Balance at end of period $ 11,219 $ 9,768 |
Business and Summary of Signi_3
Business and Summary of Significant Accounting Policies - New Accounting Pronouncements - Additional Information (Details) - USD ($) $ in Thousands | Jun. 29, 2019 | Dec. 30, 2018 | Dec. 29, 2018 | |
Accounting Policies [Line Items] | ||||
Net Operating Lease, Right-of-Use Asset | $ 316,958 | $ 0 | ||
Operating Lease Liability | [1] | 347,047 | ||
Operating Lease, Liability Current | 56,167 | 0 | ||
Operating Lease, Liability Noncurrent | $ 290,880 | $ 0 | ||
Accounting Standards Update 2016-02 | ||||
Accounting Policies [Line Items] | ||||
Net Operating Lease, Right-of-Use Asset | $ 299,000 | |||
Operating Lease Liability | 327,000 | |||
Operating Lease, Liability Current | 52,000 | |||
Operating Lease, Liability Noncurrent | 275,000 | |||
Deferred rent and lease incentive liabilities | $ 28,000 | |||
[1] | (2) |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - Recurring - Level 1 - USD ($) $ in Millions | Jun. 29, 2019 | Dec. 29, 2018 |
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 | $ 7 | $ 6 |
Other Noncurrent Liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation plan liability | $ 7 | $ 6 |
Inventories - Schedule of Inven
Inventories - Schedule of Inventories (Details) - USD ($) $ in Thousands | Jun. 29, 2019 | Dec. 29, 2018 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 6,534 | $ 4,549 |
Work in progress | 199 | 3 |
Finished goods | 81,126 | 80,330 |
Inventories | $ 87,859 | $ 84,882 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets, Net - Additional Information 1 (Details) - USD ($) $ in Millions | Jun. 29, 2019 | Dec. 29, 2018 |
Goodwill And Intangible Assets [Line Items] | ||
Goodwill | $ 64 | $ 64 |
Trade Names | ||
Goodwill And Intangible Assets [Line Items] | ||
Indefinite-lived trade name/trademarks | $ 1.4 | $ 1.4 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets, Net - Additional Information 2 (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 29, 2019 | Jun. 30, 2018 | Jun. 29, 2019 | Jun. 30, 2018 | Dec. 29, 2018 | |
Goodwill And Intangible Assets [Line Items] | |||||
Amortization expense definite-lived intangible assets | $ 0.5 | $ 0.5 | $ 1.1 | $ 1.1 | |
Developed Technologies | |||||
Goodwill And Intangible Assets [Line Items] | |||||
Gross carrying amount | 19 | 19 | $ 19 | ||
Accumulated amortization | $ 10 | $ 10 | $ 9 |
Credit Agreement - Additional I
Credit Agreement - Additional Information (Details) - February 2019 Amendment $ in Millions | 6 Months Ended |
Jun. 29, 2019USD ($) | |
Line Of Credit Facility [Line Items] | |
Current borrowing capacity | $ 450 |
Maximum Borrowing Capacity | $ 600 |
Expiration Date | Feb. 29, 2024 |
Maximum leverage ratio | 450.00% |
Minimum interest coverage ratio | 300.00% |
Credit Agreement - Schedule of
Credit Agreement - Schedule of Borrowings Under Credit Facility (Details) - USD ($) $ in Thousands | Jun. 29, 2019 | Dec. 29, 2018 |
Line Of Credit Facility [Line Items] | ||
Borrowings under revolving credit facility | $ 281,500 | $ 199,600 |
February 2019 Amendment | ||
Line Of Credit Facility [Line Items] | ||
Borrowings under revolving credit facility | 281,500 | |
Outstanding letters of credit | 3,497 | |
Additional borrowing capacity | $ 165,003 | |
Weighted-average interest rate | 4.20% | |
February 2018 Amendment | ||
Line Of Credit Facility [Line Items] | ||
Borrowings under revolving credit facility | 199,600 | |
Outstanding letters of credit | 3,497 | |
Additional borrowing capacity | $ 96,903 | |
Weighted-average interest rate | 4.20% |
Leases - Additional Information
Leases - Additional Information (Details) | Jun. 29, 2019 |
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 | 6 Months Ended | |
Jun. 29, 2019 | Jun. 29, 2019 | ||
Leases [Abstract] | |||
Operating lease costs | [1] | $ 21,079 | $ 42,136 |
Variable lease costs | $ 423 | $ 921 | |
[1] | (1) |
Leases - Schedule of Maturities
Leases - Schedule of Maturities of Operating Lease Liabilities and Aggregate Future Commitments Under Operating Leases (Details) - USD ($) $ in Thousands | Jun. 29, 2019 | Dec. 29, 2018 | |||
Operating Leases | |||||
2019 (excluding the six months ended June 29, 2019) | $ 40,752 | ||||
2019 | $ 78,337 | ||||
2020 | 76,056 | 73,331 | |||
2021 | 68,532 | 66,491 | |||
2022 | 60,889 | 59,515 | |||
2023 | 52,339 | 51,076 | |||
2024 | 41,107 | ||||
Thereafter | 149,318 | ||||
Thereafter | 104,731 | ||||
Total lease payments | 444,406 | [1] | $ 478,068 | [2] | |
Less: Interest | 97,359 | ||||
Present value of operating lease liabilities | [3] | $ 347,047 | |||
[1] | (1) | ||||
[2] | (1) | ||||
[3] | (2) |
Leases - Schedule of Maturiti_2
Leases - Schedule of Maturities of Operating Lease Liabilities and Aggregate Future Commitments Under Operating Leases (Parenthetical) (Details) - USD ($) $ in Thousands | Jun. 29, 2019 | Dec. 29, 2018 |
Leases [Abstract] | ||
Lessee operating lease, lease not yet commenced, minimum lease payments excluded | $ 55,000 | |
Operating Lease, Liability Current | $ 56,167 | $ 0 |
Lessee operating lease, lease not yet commenced, minimum lease payments included | $ 62,000 |
Leases - Schedule of Other Info
Leases - Schedule of Other Information Related Operating Leases (Details) $ in Thousands | 6 Months Ended | |
Jun. 29, 2019USD ($) | ||
Leases [Abstract] | ||
Weighted-average remaining lease term (years) | 6 years 9 months 18 days | |
Weighted-average discount rate | 7.40% | |
Cash paid for amounts included in present value of operating lease liabilities | $ 39,941 | |
Right-of-use assets obtained in exchange for operating lease liabilities | $ 36,543 | [1] |
[1] | (1) Recently Adopted Accounting Guidance |
Repurchases of Common Stock - S
Repurchases of Common Stock - Schedule of Repurchase of Common Stock (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2019 | Jun. 30, 2018 | Jun. 29, 2019 | Jun. 30, 2018 | |
Repurchases Of Common Stock [Abstract] | ||||
Amount repurchased under Board-approved share repurchase program | $ 40,000 | $ 65,000 | $ 80,900 | $ 140,000 |
Amount repurchased in connection with the vesting of employee restricted stock grants | 3,351 | 292 | 9,433 | 2,940 |
Total amount repurchased | $ 43,351 | $ 65,292 | $ 90,333 | $ 142,940 |
Repurchases of Common Stock - A
Repurchases of Common Stock - Additional Information (Details) $ in Millions | Jun. 29, 2019USD ($) |
Repurchases Of Common Stock [Abstract] | |
Remaining authorized stock purchase plan | $ 105 |
Revenue Recognition - Schedule
Revenue Recognition - Schedule of Deferred Contract Assets and Deferred Contract Liabilities (Details) - USD ($) $ in Thousands | Jun. 29, 2019 | Dec. 29, 2018 |
Disaggregation Of Revenue [Line Items] | ||
Deferred Contract Assets | $ 52,656 | $ 50,009 |
Deferred Contract Liabilities | 75,393 | 74,589 |
Other Current Assets | ||
Disaggregation Of Revenue [Line Items] | ||
Deferred Contract Assets | 21,726 | 20,553 |
Other Non-current Assets | ||
Disaggregation Of Revenue [Line Items] | ||
Deferred Contract Assets | 30,930 | 29,456 |
Other Current Liabilities | ||
Disaggregation Of Revenue [Line Items] | ||
Deferred Contract Liabilities | 33,053 | 32,395 |
Other Non-current Liabilities | ||
Disaggregation Of Revenue [Line Items] | ||
Deferred Contract Liabilities | $ 42,340 | $ 42,194 |
Revenue Recognition - Additiona
Revenue Recognition - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2019 | Jun. 30, 2018 | Jun. 29, 2019 | Jun. 30, 2018 | |
Disaggregation Of Revenue [Line Items] | ||||
Revenue recognized, included in beginning deferred contract liability balance | $ 8 | $ 8 | $ 17 | $ 16 |
Transferred at Point in Time | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue from goods and services transferred to customers at a point in time | 98.00% | 97.00% | 98.00% | 98.00% |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2019 | Jun. 30, 2018 | Jun. 29, 2019 | Jun. 30, 2018 | |
Disaggregation Of Revenue [Line Items] | ||||
Net Sales | $ 355,963 | $ 316,338 | $ 782,408 | $ 704,971 |
Retail | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net Sales | 327,999 | 286,853 | 720,225 | 642,922 |
Online and Phone | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net Sales | 25,412 | 24,927 | 55,175 | 52,894 |
Company-Controlled Channel | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net Sales | 353,411 | 311,780 | 775,400 | 695,816 |
Wholesale/Other Channel | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net Sales | $ 2,552 | $ 4,558 | $ 7,008 | $ 9,155 |
Revenue Recognition - Schedul_2
Revenue Recognition - Schedule of Sales Return Liability (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 29, 2019 | Jun. 30, 2018 | |
Sales Return Liability [Roll Forward] | ||
Balance at beginning of year | $ 19,907 | $ 19,270 |
Additions that reduce net sales | 37,543 | 36,555 |
Deductions from reserves | (39,684) | (39,298) |
Balance at end of period | $ 17,766 | $ 16,527 |
Stock-Based Compensation Expe_3
Stock-Based Compensation Expense - Schedule of Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2019 | Jun. 30, 2018 | Jun. 29, 2019 | Jun. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation expense | $ 4,250 | $ 3,658 | $ 7,888 | $ 6,742 |
Income tax benefit | 1,066 | 896 | 1,964 | 1,652 |
Total stock-based compensation expense, net of tax | 3,184 | 2,762 | 5,924 | 5,090 |
Time-based, Performance-based and Market-based Stock Awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation expense | 3,696 | 2,996 | 6,729 | 5,488 |
Employee Stock Option | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation expense | $ 554 | $ 662 | $ 1,159 | $ 1,254 |
Profit Sharing and 401(k) Plan
Profit Sharing and 401(k) Plan - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2019 | Jun. 30, 2018 | Jun. 29, 2019 | Jun. 30, 2018 | |
Profit Sharing And401 K Plan [Abstract] | ||||
Employee compensation deferral (in hundredths) | 50.00% | |||
Employer Contributions | $ 1.5 | $ 1.3 | $ 3 | $ 2.7 |
Net Income per Common Share - C
Net Income per Common Share - Components of Basic and Diluted Net Income per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 29, 2019 | Mar. 30, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 29, 2019 | Jun. 30, 2018 | |
Net Income Per Common Share [Abstract] | ||||||
Net income | $ 4,280 | $ 25,418 | $ 3,744 | $ 20,548 | $ 29,698 | $ 24,292 |
Basic weighted-average shares outstanding | 29,873,000 | 36,138,000 | 30,247,000 | 37,191,000 | ||
Dilutive effect of stock-based awards | 658,000 | 706,000 | 887,000 | 905,000 | ||
Diluted weighted-average shares outstanding | 30,531,000 | 36,844,000 | 31,134,000 | 38,096,000 | ||
Net income per share – basic | $ 0.14 | $ 0.10 | $ 0.98 | $ 0.65 | ||
Net income per share – diluted | $ 0.14 | $ 0.10 | $ 0.95 | $ 0.64 |
Commitments and Contingencies W
Commitments and Contingencies Warranty Liabilities (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 29, 2019 | Jun. 30, 2018 | |
Warranty Liabilities [Roll Forward] | ||
Balance at beginning of year | $ 10,389 | $ 9,320 |
Additions charged to costs and expenses for current-year sales | 5,003 | 6,106 |
Deductions from reserves | (5,591) | (5,790) |
Changes in liability for pre-existing warranties during the current year, including expirations | 1,418 | 132 |
Balance at end of period | $ 11,219 | $ 9,768 |