Sleep Number (SNBR) 10-Q 25 Oct 19 2019 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information	9 Months Ended
	Sep. 28, 2019shares
Cover [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	Sep. 28, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q3
Amendment Flag	false
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Common Stock, Shares Outstanding	28,427,000
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Title of 12(b) Security	Common Stock, par value $0.01 per share
Entity Incorporation, State or Country Code	MN
Security Exchange Name	NASDAQ
Entity Shell Company	false
Document Quarterly Report	true
Document Transition Report	false
Entity File Number	000-25121
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

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Sep. 28, 2019	Dec. 29, 2018
Current assets:
Cash and cash equivalents	$ 1,545	$ 1,612
Accounts receivable, net of allowance for doubtful accounts of $753 and $699, respectively	25,541	24,795
Inventories	86,508	84,882
Prepaid expenses	10,997	8,009
Other current assets	35,002	31,559
Total current assets	159,593	150,857
Non-current assets:
Property and equipment, net	201,755	205,631
Operating lease right-of-use assets	321,048	0
Goodwill and intangible assets, net	73,772	75,407
Other non-current assets	46,154	38,243
Total assets	802,322	470,138
Current liabilities:
Borrowings under revolving credit facility	213,700	199,600
Accounts payable	151,357	144,781
Customer prepayments	39,824	27,066
Accrued sales returns	23,833	19,907
Compensation and benefits	39,383	27,700
Taxes and withholding	24,699	18,380
Operating lease liabilities	57,912	0
Other current liabilities	52,361	51,234
Total current liabilities	603,069	488,668
Non-current liabilities:
Deferred income taxes	3,927	4,822
Operating lease liabilities	293,333	0
Other non-current liabilities	66,480	86,198
Total liabilities	966,809	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, 28,427 and 30,868 shares issued and outstanding, respectively	284	309
Additional paid-in capital	0	0
Accumulated deficit	(164,771)	(109,859)
Total shareholders’ deficit	(164,487)	(109,550)
Total liabilities and shareholders’ deficit	$ 802,322	$ 470,138

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) (Unaudited) - USD ($) $ in Thousands	Sep. 28, 2019	Dec. 29, 2018
Current assets:
Allowance for doubtful accounts	$ 753	$ 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)	28,427,000	30,868,000
Common stock, shares outstanding (in shares)	28,427,000	30,868,000

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 28, 2019	Sep. 29, 2018	Sep. 28, 2019	Sep. 29, 2018
Income Statement [Abstract]
Net sales	$ 474,778	$ 414,779	$ 1,257,186	$ 1,119,750
Cost of sales	178,388	164,262	481,377	442,868
Gross profit	296,390	250,517	775,809	676,882
Operating expenses:
Sales and marketing	213,133	188,458	568,799	511,481
General and administrative	35,098	29,385	102,466	89,947
Research and development	9,007	7,353	25,440	21,146
Total operating expenses	257,238	225,196	696,705	622,574
Operating income	39,152	25,321	79,104	54,308
Interest expense, net	3,131	1,836	8,968	3,814
Income before income taxes	36,021	23,485	70,136	50,494
Income tax expense	7,967	5,228	12,384	7,945
Net income	$ 28,054	$ 18,257	$ 57,752	$ 42,549
Basic net income per share:
Net income per share – basic	$ 0.96	$ 0.53	$ 1.93	$ 1.18
Weighted-average shares – basic	29,085,000	34,231,000	29,859,000	36,204,000
Diluted net income per share:
Net income per share – diluted	$ 0.94	$ 0.52	$ 1.88	$ 1.15
Weighted-average shares – diluted	29,796,000	35,039,000	30,688,000	37,077,000

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	42,549
Balance at Sep. 29, 2018	(54,352)	$ 332	0	(54,684)
Balance (in shares) at Sep. 29, 2018		33,216,000
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
Net income	18,257	$ 0	0	18,257
Exercise of common stock options	488	$ 0	488	0
Exercise of common stock options (in shares)		33,000
Stock-based compensation	3,356	$ 0	3,356	0
Stock-based compensation (in shares)		7,000
Repurchases of common stock	(55,299)	$ (17)	(3,844)	(51,438)
Repurchases of common stock (in shares)		(1,717,000)
Balance at Sep. 29, 2018	(54,352)	$ 332	0	(54,684)
Balance (in shares) at Sep. 29, 2018		33,216,000
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	$ 57,752
Balance at Sep. 28, 2019	$ (164,487)	$ 284	0	(164,771)
Balance (in shares) at Sep. 28, 2019	28,427,000	28,427,000
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
Net income	28,054	$ 0	0	28,054
Exercise of common stock options	757	$ 0	757	0
Exercise of common stock options (in shares)		33,000
Stock-based compensation	4,146	$ 0	4,146	0
Stock-based compensation (in shares)		10,000
Repurchases of common stock	(40,142)	$ (9)	(4,903)	(35,230)
Repurchases of common stock (in shares)		(939,000)
Balance at Sep. 28, 2019	$ (164,487)	$ 284	$ 0	$ (164,771)
Balance (in shares) at Sep. 28, 2019	28,427,000	28,427,000

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 28, 2019	Sep. 29, 2018
Cash flows from operating activities:
Net income	$ 57,752	$ 42,549
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	46,267	46,655
Stock-based compensation	12,034	10,098
Net gain on disposals and impairments of assets	(409)	(17)
Deferred income taxes	(895)	7,263
Changes in operating assets and liabilities:
Accounts receivable	(746)	(4,816)
Inventories	(1,626)	(6,682)
Income taxes	535	(13,777)
Prepaid expenses and other assets	(8,065)	5,195
Accounts payable	45,051	26,007
Customer prepayments	12,758	18,351
Accrued compensation and benefits	11,763	(2,685)
Other taxes and withholding	5,784	4,265
Other accruals and liabilities	9,629	2,044
Net cash provided by operating activities	189,832	134,450
Cash flows from investing activities:
Purchases of property and equipment	(46,757)	(34,012)
Proceeds from sales of property and equipment	2,577	174
Net cash used in investing activities	(44,180)	(33,838)
Cash flows from financing activities:
Repurchases of common stock	(139,178)	(198,239)
Net (decrease) increase in short-term borrowings	(11,270)	94,147
Proceeds from issuance of common stock	5,752	2,084
Debt issuance costs	(1,023)	(1,014)
Net cash used in financing activities	(145,719)	(103,022)
Net decrease in cash and cash equivalents	(67)	(2,410)
Cash and cash equivalents, at beginning of period	1,612	3,651
Cash and cash equivalents, at end of period	$ 1,545	$ 1,241

Business and Summary of Signifi

Business and Summary of Significant Accounting Policies	9 Months Ended
	Sep. 28, 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 nine months ended September 28, 2019 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 September 28, 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 an 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	9 Months Ended
	Sep. 28, 2019
Fair Value Disclosures [Abstract]
Fair Value Measurements	2. Fair Value Measurements At September 28, 2019 and December 29, 2018, we had $8 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 $8 million and $6 million at September 28, 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	9 Months Ended
	Sep. 28, 2019
Inventory Disclosure [Abstract]
Inventories	3. Inventories Inventories consisted of the following (in thousands): September 28, 2019 December 29, 2018 Raw materials $ 5,782 $ 4,549 Work in progress 130 3 Finished goods 80,596 80,330 $ 86,508 $ 84,882

Goodwill and Intangible Assets,

Goodwill and Intangible Assets, Net	9 Months Ended
	Sep. 28, 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 September 28, 2019 and December 29, 2018. Indefinite-lived trade name/trademarks totaled $1.4 million at September 28, 2019 and December 29, 2018. Definite-Lived Intangible Assets The gross carrying amount of our developed technologies was $19 million at September 28, 2019 and December 29, 2018. Accumulated amortization was $11 million and $9 million at September 28, 2019 and December 29, 2018, respectively. Amortization expense for both the three months ended September 28, 2019 and September 29, 2018, was $0.5 million. Amortization expense for both the nine months ended September 28, 2019 and September 29, 2018 was $1.6 million.

Credit Agreement

Credit Agreement	9 Months Ended
	Sep. 28, 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 $600 million, subject to lenders' approval. The credit agreement matures in February 2024. We were in compliance with all financial covenants as of September 28, 2019. The following table summarizes our borrowings under the credit facility ($ in thousands): September 28, 2019 December 29, 2018 Outstanding borrowings $ 213,700 $ 199,600 Outstanding letters of credit $ 3,497 $ 3,497 Additional borrowing capacity $ 232,803 $ 96,903 Weighted-average interest rate 3.9 % 4.2 %

Leases

Leases	9 Months Ended
	Sep. 28, 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 an 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 September 28, 2019, our finance ROU assets and lease liabilities were not significant. Operating lease costs were as follows (in thousands): Three Months Ended Nine Months Ended September 28, 2019 September 28, 2019 Operating lease costs (1) $ 21,583 $ 63,719 Variable lease costs $ 466 $ 1,387 (1) The maturities of operating lease liabilities as of September 28, 2019, were as follows (in thousands): 2019 (excluding the nine months ended September 28, 2019) $ 21,045 2020 79,652 2021 72,354 2022 64,339 2023 54,970 2024 43,393 Thereafter 110,847 Total lease payments (1) 446,600 Less: Interest 95,355 Present value of operating lease liabilities (2) $ 351,245 (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: September 28, 2019 Weighted-average remaining lease term (years) 6.7 Weighted-average discount rate 7.3% Nine Months Ended (in thousands) September 28, 2019 Cash paid for amounts included in present value of operating lease liabilities $ 60,512 Right-of-use assets obtained in exchange for operating lease liabilities (1) $ 53,230 (1) Recently Adopted Accounting Guidance

Repurchases of Common Stock

Repurchases of Common Stock	9 Months Ended
	Sep. 28, 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 Nine Months Ended September 28, 2019 September 29, 2018 September 28, 2019 September 29, 2018 Amount repurchased under Board-approved share repurchase program $ 40,000 $ 55,000 $ 120,900 $ 195,000 Amount repurchased in connection with the vesting of employee restricted stock grants 142 299 9,575 3,239 Total amount repurchased $ 40,142 $ 55,299 $ 130,475 $ 198,239 Effective as of September 29, 2019, our board approved an increase in our total remaining share repurchase authorization to $500 million.

Revenue Recognition

Revenue Recognition	9 Months Ended
	Sep. 28, 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): September 28, 2019 December 29, 2018 Deferred Contract Assets included in: Other current assets $ 22,765 $ 20,553 Other non-current assets 32,758 29,456 $ 55,523 $ 50,009 September 28, 2019 December 29, 2018 Deferred Contract Liabilities included in: Other current liabilities $ 33,885 $ 32,395 Other non-current liabilities 44,088 42,194 $ 77,973 $ 74,589 During the three months ended September 28, 2019 and September 29, 2018, we recognized revenue of $9 million and $8 million, respectively, that was included in the deferred contract liability balance at the beginning of the respective periods. During the nine months ended September 28, 2019 and September 29, 2018, we recognized revenue of $25 million and $22 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% of our revenues for both the three and nine months ended September 28, 2019 and September 29, 2018. Net sales from each of our channels was as follows (in thousands): Three Months Ended Nine Months Ended September 28, 2019 September 29, 2018 September 28, 2019 September 29, 2018 Retail $ 437,871 $ 383,886 $ 1,158,096 $ 1,026,808 Online and phone 34,520 28,686 89,695 81,580 Company-Controlled channel 472,391 412,572 1,247,791 1,108,388 Wholesale/Other channel 2,387 2,207 9,395 11,362 Total $ 474,778 $ 414,779 $ 1,257,186 $ 1,119,750 Obligation for Sales Returns The activity in the sales returns liability account was as follows (in thousands): Nine Months Ended September 28, 2019 September 29, 2018 Balance at beginning of year $ 19,907 $ 19,270 Additions that reduce net sales 60,962 57,296 Deductions from reserves (57,036 ) (56,031 ) Balance at end of period $ 23,833 $ 20,535

Stock-Based Compensation Expens

Stock-Based Compensation Expense	9 Months Ended
	Sep. 28, 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 Nine Months Ended September 28, 2019 September 29, 2018 September 28, 2019 September 29, 2018 Stock awards $ 3,527 $ 2,759 $ 10,256 $ 8,247 Stock options 619 597 1,778 1,851 Total stock-based compensation expense 4,146 3,356 12,034 10,098 Income tax benefit 984 802 2,948 2,454 Total stock-based compensation expense, net of tax $ 3,162 $ 2,554 $ 9,086 $ 7,644

Profit Sharing and 401(k) Plan

Profit Sharing and 401(k) Plan	9 Months Ended
	Sep. 28, 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 September 28, 2019 and September 29, 2018, our contributions, net of forfeitures, were $1.5 million. During the nine months ended September 28, 2019 and September 29, 2018, our contributions, net of forfeitures, were $4.5 million and $4.2 million, respectively.

Net Income Per Common Share

Net Income Per Common Share	9 Months Ended
	Sep. 28, 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 Nine Months Ended September 28, 2019 September 29, 2018 September 28, 2019 September 29, 2018 Net income $ 28,054 $ 18,257 $ 57,752 $ 42,549 Reconciliation of weighted-average shares outstanding: Basic weighted-average shares outstanding 29,085 34,231 29,859 36,204 Dilutive effect of stock-based awards 711 808 829 873 Diluted weighted-average shares outstanding 29,796 35,039 30,688 37,077 Net income per share – basic $ 0.96 $ 0.53 $ 1.93 $ 1.18 Net income per share – diluted $ 0.94 $ 0.52 $ 1.88 $ 1.15 For the three and nine months ended September 28, 2019 and September 29, 2018, anti-dilutive stock-based awards excluded from the diluted net income per share calculations were immaterial.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 28, 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): Nine Months Ended September 28, 2019 September 29, 2018 Balance at beginning of year $ 10,389 $ 9,320 Additions charged to costs and expenses for current-year sales 8,033 9,275 Deductions from reserves (8,159 ) (8,461 ) Changes in liability for pre-existing warranties during the current year, including expirations 1,189 177 Balance at end of period $ 11,452 $ 10,311 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 September 18, 2018, two former Home Delivery team members 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 sought 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. The parties tentatively reached a settlement pending Court approval, which includes the settlement and release of certain additional related claims. We intend to continue vigorously defending this matter in the event it does not settle. 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. We intend to vigorously defend this matter.

Business and Summary of Signi_2

Business and Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 28, 2019
Accounting Policies [Abstract]
Business and Basis of Presentation	We prepared the condensed consolidated financial statements as of and for the three and nine months ended September 28, 2019 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 September 28, 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 an 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 an 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 September 28, 2019, our finance ROU assets and lease liabilities were not significant.

Inventories (Tables)

Inventories (Tables)	9 Months Ended
	Sep. 28, 2019
Inventory Disclosure [Abstract]
Schedule of Inventories	Inventories consisted of the following (in thousands): September 28, 2019 December 29, 2018 Raw materials $ 5,782 $ 4,549 Work in progress 130 3 Finished goods 80,596 80,330 $ 86,508 $ 84,882

Credit Agreement (Tables)

Credit Agreement (Tables)	9 Months Ended
	Sep. 28, 2019
Debt Disclosure [Abstract]
Schedule of Borrowings Under Credit Facility	The following table summarizes our borrowings under the credit facility ($ in thousands): September 28, 2019 December 29, 2018 Outstanding borrowings $ 213,700 $ 199,600 Outstanding letters of credit $ 3,497 $ 3,497 Additional borrowing capacity $ 232,803 $ 96,903 Weighted-average interest rate 3.9 % 4.2 %

Leases (Tables)

Leases (Tables)	9 Months Ended
	Sep. 28, 2019
Leases [Abstract]
Schedule of Operating Lease Costs	Operating lease costs were as follows (in thousands): Three Months Ended Nine Months Ended September 28, 2019 September 28, 2019 Operating lease costs (1) $ 21,583 $ 63,719 Variable lease costs $ 466 $ 1,387 (1)
Schedule of Maturities of Operating Lease Liabilities and Aggregate Future Commitments Under Operating Leases	The maturities of operating lease liabilities as of September 28, 2019, were as follows (in thousands): 2019 (excluding the nine months ended September 28, 2019) $ 21,045 2020 79,652 2021 72,354 2022 64,339 2023 54,970 2024 43,393 Thereafter 110,847 Total lease payments (1) 446,600 Less: Interest 95,355 Present value of operating lease liabilities (2) $ 351,245 (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: September 28, 2019 Weighted-average remaining lease term (years) 6.7 Weighted-average discount rate 7.3% Nine Months Ended (in thousands) September 28, 2019 Cash paid for amounts included in present value of operating lease liabilities $ 60,512 Right-of-use assets obtained in exchange for operating lease liabilities (1) $ 53,230 (1) Recently Adopted Accounting Guidance

Repurchases of Common Stock (Ta

Repurchases of Common Stock (Tables)	9 Months Ended
	Sep. 28, 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 Nine Months Ended September 28, 2019 September 29, 2018 September 28, 2019 September 29, 2018 Amount repurchased under Board-approved share repurchase program $ 40,000 $ 55,000 $ 120,900 $ 195,000 Amount repurchased in connection with the vesting of employee restricted stock grants 142 299 9,575 3,239 Total amount repurchased $ 40,142 $ 55,299 $ 130,475 $ 198,239

Revenue Recognition (Tables)

Revenue Recognition (Tables)	9 Months Ended
	Sep. 28, 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): September 28, 2019 December 29, 2018 Deferred Contract Assets included in: Other current assets $ 22,765 $ 20,553 Other non-current assets 32,758 29,456 $ 55,523 $ 50,009 September 28, 2019 December 29, 2018 Deferred Contract Liabilities included in: Other current liabilities $ 33,885 $ 32,395 Other non-current liabilities 44,088 42,194 $ 77,973 $ 74,589
Disaggregation of Revenue	Net sales from each of our channels was as follows (in thousands): Three Months Ended Nine Months Ended September 28, 2019 September 29, 2018 September 28, 2019 September 29, 2018 Retail $ 437,871 $ 383,886 $ 1,158,096 $ 1,026,808 Online and phone 34,520 28,686 89,695 81,580 Company-Controlled channel 472,391 412,572 1,247,791 1,108,388 Wholesale/Other channel 2,387 2,207 9,395 11,362 Total $ 474,778 $ 414,779 $ 1,257,186 $ 1,119,750
Schedule of Sales Return Liability	The activity in the sales returns liability account was as follows (in thousands): Nine Months Ended September 28, 2019 September 29, 2018 Balance at beginning of year $ 19,907 $ 19,270 Additions that reduce net sales 60,962 57,296 Deductions from reserves (57,036 ) (56,031 ) Balance at end of period $ 23,833 $ 20,535

Stock-Based Compensation Expe_2

Stock-Based Compensation Expense (Tables)	9 Months Ended
	Sep. 28, 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 Nine Months Ended September 28, 2019 September 29, 2018 September 28, 2019 September 29, 2018 Stock awards $ 3,527 $ 2,759 $ 10,256 $ 8,247 Stock options 619 597 1,778 1,851 Total stock-based compensation expense 4,146 3,356 12,034 10,098 Income tax benefit 984 802 2,948 2,454 Total stock-based compensation expense, net of tax $ 3,162 $ 2,554 $ 9,086 $ 7,644

Net Income Per Common Share (Ta

Net Income Per Common Share (Tables)	9 Months Ended
	Sep. 28, 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 Nine Months Ended September 28, 2019 September 29, 2018 September 28, 2019 September 29, 2018 Net income $ 28,054 $ 18,257 $ 57,752 $ 42,549 Reconciliation of weighted-average shares outstanding: Basic weighted-average shares outstanding 29,085 34,231 29,859 36,204 Dilutive effect of stock-based awards 711 808 829 873 Diluted weighted-average shares outstanding 29,796 35,039 30,688 37,077 Net income per share – basic $ 0.96 $ 0.53 $ 1.93 $ 1.18 Net income per share – diluted $ 0.94 $ 0.52 $ 1.88 $ 1.15

Commitments and Contingencies (

Commitments and Contingencies (Tables)	9 Months Ended
	Sep. 28, 2019
Commitments And Contingencies Disclosure [Abstract]
Warranty Liabilities	The activity in the accrued warranty liabilities account was as follows (in thousands): Nine Months Ended September 28, 2019 September 29, 2018 Balance at beginning of year $ 10,389 $ 9,320 Additions charged to costs and expenses for current-year sales 8,033 9,275 Deductions from reserves (8,159 ) (8,461 ) Changes in liability for pre-existing warranties during the current year, including expirations 1,189 177 Balance at end of period $ 11,452 $ 10,311

Business and Summary of Signi_3

Business and Summary of Significant Accounting Policies - New Accounting Pronouncements - Additional Information (Details) - USD ($) $ in Thousands		Sep. 28, 2019	Dec. 30, 2018	Dec. 29, 2018
Accounting Policies [Line Items]
Net Operating Lease, Right-of-Use Asset		$ 321,048		$ 0
Operating Lease Liability	[1]	351,245
Operating Lease, Liability Current		57,912		0
Operating Lease, Liability Noncurrent		$ 293,333		$ 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	Sep. 28, 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	$ 8	$ 6
Other Noncurrent Liabilities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Deferred compensation plan liability	$ 8	$ 6

Inventories - Schedule of Inven

Inventories - Schedule of Inventories (Details) - USD ($) $ in Thousands	Sep. 28, 2019	Dec. 29, 2018
Inventory Disclosure [Abstract]
Raw materials	$ 5,782	$ 4,549
Work in progress	130	3
Finished goods	80,596	80,330
Inventories	$ 86,508	$ 84,882

Goodwill and Intangible Asset_2

Goodwill and Intangible Assets, Net - Additional Information 1 (Details) - USD ($) $ in Millions	Sep. 28, 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		9 Months Ended
	Sep. 28, 2019	Sep. 29, 2018	Sep. 28, 2019	Sep. 29, 2018	Dec. 29, 2018
Goodwill And Intangible Assets [Line Items]
Amortization expense definite-lived intangible assets	$ 0.5	$ 0.5	$ 1.6	$ 1.6
Developed Technologies
Goodwill And Intangible Assets [Line Items]
Gross carrying amount	19		19		$ 19
Accumulated amortization	$ 11		$ 11		$ 9

Credit Agreement - Additional I

Credit Agreement - Additional Information (Details) - February 2019 Amendment $ in Millions	9 Months Ended
	Sep. 28, 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	Sep. 28, 2019	Dec. 29, 2018
Line Of Credit Facility [Line Items]
Borrowings under revolving credit facility	$ 213,700	$ 199,600
February 2019 Amendment
Line Of Credit Facility [Line Items]
Borrowings under revolving credit facility	213,700
Outstanding letters of credit	3,497
Additional borrowing capacity	$ 232,803
Weighted-average interest rate	3.90%
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)	Sep. 28, 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	9 Months Ended
		Sep. 28, 2019	Sep. 28, 2019
Leases [Abstract]
Operating lease costs	[1]	$ 21,583	$ 63,719
Variable lease costs		$ 466	$ 1,387
[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		Sep. 28, 2019		Dec. 29, 2018
Operating Leases
2019 (excluding the nine months ended September 28, 2019)		$ 21,045
2019				$ 78,337
2020		79,652		73,331
2021		72,354		66,491
2022		64,339		59,515
2023		54,970		51,076
2024		43,393
Thereafter				149,318
Thereafter		110,847
Total lease payments		446,600	[1]	$ 478,068	[2]
Less: Interest		95,355
Present value of operating lease liabilities	[3]	$ 351,245
[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	Sep. 28, 2019	Dec. 29, 2018
Leases [Abstract]
Lessee operating lease, lease not yet commenced, minimum lease payments excluded	$ 51,000
Operating Lease, Liability Current	$ 57,912	$ 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	9 Months Ended
	Sep. 28, 2019USD ($)
Leases [Abstract]
Weighted-average remaining lease term (years)	6 years 8 months 12 days
Weighted-average discount rate	7.30%
Cash paid for amounts included in present value of operating lease liabilities	$ 60,512
Right-of-use assets obtained in exchange for operating lease liabilities	$ 53,230	[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		9 Months Ended
	Sep. 28, 2019	Sep. 29, 2018	Sep. 28, 2019	Sep. 29, 2018
Repurchases Of Common Stock [Abstract]
Amount repurchased under Board-approved share repurchase program	$ 40,000	$ 55,000	$ 120,900	$ 195,000
Amount repurchased in connection with the vesting of employee restricted stock grants	142	299	9,575	3,239
Total amount repurchased	$ 40,142	$ 55,299	$ 130,475	$ 198,239

Repurchases of Common Stock - A

Repurchases of Common Stock - Additional Information (Details) $ in Millions	Sep. 29, 2019USD ($)
Subsequent Event
Subsequent Event [Line Items]
Remaining authorized stock purchase plan	$ 500

Revenue Recognition - Schedule

Revenue Recognition - Schedule of Deferred Contract Assets and Deferred Contract Liabilities (Details) - USD ($) $ in Thousands	Sep. 28, 2019	Dec. 29, 2018
Disaggregation Of Revenue [Line Items]
Deferred Contract Assets	$ 55,523	$ 50,009
Deferred Contract Liabilities	77,973	74,589
Other Current Assets
Disaggregation Of Revenue [Line Items]
Deferred Contract Assets	22,765	20,553
Other Non-current Assets
Disaggregation Of Revenue [Line Items]
Deferred Contract Assets	32,758	29,456
Other Current Liabilities
Disaggregation Of Revenue [Line Items]
Deferred Contract Liabilities	33,885	32,395
Other Non-current Liabilities
Disaggregation Of Revenue [Line Items]
Deferred Contract Liabilities	$ 44,088	$ 42,194

Revenue Recognition - Additiona

Revenue Recognition - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 28, 2019	Sep. 29, 2018	Sep. 28, 2019	Sep. 29, 2018
Disaggregation Of Revenue [Line Items]
Revenue recognized, included in beginning deferred contract liability balance	$ 9	$ 8	$ 25	$ 22
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%	98.00%	98.00%	98.00%

Revenue Recognition - Disaggreg

Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 28, 2019	Sep. 29, 2018	Sep. 28, 2019	Sep. 29, 2018
Disaggregation Of Revenue [Line Items]
Net Sales	$ 474,778	$ 414,779	$ 1,257,186	$ 1,119,750
Retail
Disaggregation Of Revenue [Line Items]
Net Sales	437,871	383,886	1,158,096	1,026,808
Online and Phone
Disaggregation Of Revenue [Line Items]
Net Sales	34,520	28,686	89,695	81,580
Company-Controlled Channel
Disaggregation Of Revenue [Line Items]
Net Sales	472,391	412,572	1,247,791	1,108,388
Wholesale/Other Channel
Disaggregation Of Revenue [Line Items]
Net Sales	$ 2,387	$ 2,207	$ 9,395	$ 11,362

Revenue Recognition - Schedul_2

Revenue Recognition - Schedule of Sales Return Liability (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 28, 2019	Sep. 29, 2018
Sales Return Liability [Roll Forward]
Balance at beginning of year	$ 19,907	$ 19,270
Additions that reduce net sales	60,962	57,296
Deductions from reserves	(57,036)	(56,031)
Balance at end of period	$ 23,833	$ 20,535

Stock-Based Compensation Expe_3

Stock-Based Compensation Expense - Schedule of Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 28, 2019	Sep. 29, 2018	Sep. 28, 2019	Sep. 29, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense	$ 4,146	$ 3,356	$ 12,034	$ 10,098
Income tax benefit	984	802	2,948	2,454
Total stock-based compensation expense, net of tax	3,162	2,554	9,086	7,644
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	3,527	2,759	10,256	8,247
Employee Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense	$ 619	$ 597	$ 1,778	$ 1,851

Profit Sharing and 401(k) Plan

Profit Sharing and 401(k) Plan - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 28, 2019	Sep. 29, 2018	Sep. 28, 2019	Sep. 29, 2018
Profit Sharing And401 K Plan [Abstract]
Employee compensation deferral (in hundredths)			50.00%
Employer Contributions	$ 1.5	$ 1.5	$ 4.5	$ 4.2

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						9 Months Ended
	Sep. 28, 2019	Jun. 29, 2019	Mar. 30, 2019	Sep. 29, 2018	Jun. 30, 2018	Mar. 31, 2018	Sep. 28, 2019	Sep. 29, 2018
Net Income Per Common Share [Abstract]
Net income	$ 28,054	$ 4,280	$ 25,418	$ 18,257	$ 3,744	$ 20,548	$ 57,752	$ 42,549
Basic weighted-average shares outstanding	29,085,000			34,231,000			29,859,000	36,204,000
Dilutive effect of stock-based awards	711,000			808,000			829,000	873,000
Diluted weighted-average shares outstanding	29,796,000			35,039,000			30,688,000	37,077,000
Net income per share – basic	$ 0.96			$ 0.53			$ 1.93	$ 1.18
Net income per share – diluted	$ 0.94			$ 0.52			$ 1.88	$ 1.15

Commitments and Contingencies W

Commitments and Contingencies Warranty Liabilities (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 28, 2019	Sep. 29, 2018
Warranty Liabilities [Roll Forward]
Balance at beginning of year	$ 10,389	$ 9,320
Additions charged to costs and expenses for current-year sales	8,033	9,275
Deductions from reserves	(8,159)	(8,461)
Changes in liability for pre-existing warranties during the current year, including expirations	1,189	177
Balance at end of period	$ 11,452	$ 10,311