Dorman Products (DORM) 10-Q 2 May 23 2023 Q1 Quarterly report Financial data

Cover

Cover - shares	3 Months Ended
	Apr. 01, 2023	Apr. 27, 2023
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Apr. 01, 2023
Document Transition Report	false
Entity File Number	0-18914
Entity Registrant Name	Dorman Products, Inc.
Entity Address, State or Province	PA
Entity Tax Identification Number	23-2078856
Entity Address, Address Line One	3400 East Walnut Street
Entity Address, City or Town	Colmar
Entity Incorporation, State or Country Code	PA
Entity Address, Postal Zip Code	18915
City Area Code	215
Local Phone Number	997-1800
Title of 12(b) Security	Common stock, par value $0.01 per share
Trading Symbol	DORM
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		31,468,334
Entity Central Index Key	0000868780
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q1
Amendment Flag	false

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations and Comprehensive Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Apr. 01, 2023	Mar. 26, 2022
Income Statement [Abstract]
Net sales	$ 466,738	$ 401,579
Cost of goods sold	322,261	268,339
Gross profit	144,477	133,240
Selling, general and administrative expenses	126,363	86,528
Income from operations	18,114	46,712
Interest expense, net	11,953	1,231
Other income, net	(357)	(84)
Income before income taxes	6,518	45,565
Provision for income taxes	835	10,358
Net income	5,683	35,207
Other comprehensive income:
Change in foreign currency translation adjustment	119	1,696
Comprehensive Income	$ 5,802	$ 36,903
Earnings per share:
Earning per share, basic (in dollars per share)	$ 0.18	$ 1.12
Earning per share, diluted (in dollars per share)	$ 0.18	$ 1.11
Weighted average shares outstanding:
Weighted average shares outstanding, basic (in shares)	31,436	31,499
Weighted average shares outstanding, diluted (in shares)	31,537	31,601

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Apr. 01, 2023	Dec. 31, 2022
Current assets:
Cash and cash equivalents	$ 33,307	$ 46,034
Accounts receivable, less allowance for doubtful accounts of $1,398 and $1,363	429,308	427,385
Inventories	686,949	755,901
Prepaids and other current assets	40,173	39,800
Total current assets	1,189,737	1,269,120
Property, plant and equipment, net	151,541	148,477
Operating lease right-of-use assets	108,549	109,977
Goodwill	443,336	443,035
Intangible assets, net	316,999	322,409
Other assets	50,497	48,768
Total assets	2,260,659	2,341,786
Current liabilities:
Accounts payable	145,686	179,819
Accrued compensation	14,606	19,490
Accrued customer rebates and returns	170,432	192,116
Revolving credit facility	215,460	239,363
Current portion of long-term debt	12,500	12,500
Other accrued liabilities	48,239	35,007
Total current liabilities	606,923	678,295
Long-term debt	479,439	482,464
Long-term operating lease liabilities	96,571	98,221
Other long-term liabilities	16,749	28,349
Deferred tax liabilities, net	11,833	11,826
Commitments and contingencies
Shareholders’ equity:
Common stock, $0.01 par value; 50,000,000 shares authorized; 31,469,310 and 31,430,632 shares issued and outstanding in 2023 and 2022, respectively	315	314
Additional paid-in capital	90,416	88,750
Retained earnings	961,597	956,870
Accumulated other comprehensive loss	(3,184)	(3,303)
Total shareholders’ equity	1,049,144	1,042,631
Total liabilities and shareholders' equity	$ 2,260,659	$ 2,341,786

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Apr. 01, 2023	Dec. 31, 2022
Statement of Financial Position [Abstract]
Allowance for doubtful accounts and customer credits	$ 1,398	$ 1,363
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	50,000,000	50,000,000
Common stock, shares issued (in shares)	31,469,310	31,430,632
Common stock, shares outstanding (in shares)	31,469,310	31,430,632

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Shareholders' Equity (Unaudited) - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-In Capital	Retained Earnings	Accumulated Other Comprehensive Income (Loss)
Beginning balance (in shares) at Dec. 25, 2021		31,607,509
Beginning balance at Dec. 25, 2021	$ 932,736	$ 316	$ 77,451	$ 856,409	$ (1,440)
Exercise of stock options (in shares)		2,478
Exercise of stock options	0
Compensation expense under Incentive Stock Plan	2,152		2,152
Purchase and cancellation of common stock (in shares)		(111,114)
Purchase and cancellation of common stock	(10,917)	$ (1)	(200)	(10,716)
Issuance of non-vested stock, net of cancellations (in shares)		(2,511)
Issuance of non-vested stock, net of cancellations	377		377
Other stock related activity, net of tax (in shares)		(16,446)
Other stock-related activity, net of tax	(1,851)		(874)	(977)
Other comprehensive income	1,696				1,696
Net income	35,207			35,207
Ending balance (in shares) at Mar. 26, 2022		31,479,916
Ending balance at Mar. 26, 2022	$ 959,400	$ 315	78,906	879,923	256
Beginning balance (in shares) at Dec. 31, 2022	31,430,632	31,430,632
Beginning balance at Dec. 31, 2022	$ 1,042,631	$ 314	88,750	956,870	(3,303)
Exercise of stock options (in shares)		15,630
Exercise of stock options	1,049		1,049
Compensation expense under Incentive Stock Plan	2,312		2,312
Purchase and cancellation of common stock (in shares)		(5,125)
Purchase and cancellation of common stock	(433)		(9)	(424)
Issuance of non-vested stock, net of cancellations (in shares)		52,151
Issuance of non-vested stock, net of cancellations	0	$ 1	(1)
Other stock related activity, net of tax (in shares)		(23,978)
Other stock-related activity, net of tax	(2,217)		(1,685)	(532)
Other comprehensive income	119				119
Net income	$ 5,683			5,683
Ending balance (in shares) at Apr. 01, 2023	31,469,310	31,469,310
Ending balance at Apr. 01, 2023	$ 1,049,144	$ 315	$ 90,416	$ 961,597	$ (3,184)

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Apr. 01, 2023	Mar. 26, 2022
Cash Flows from Operating Activities:
Net income	$ 5,683	$ 35,207
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation, amortization and accretion	13,540	9,743
Provision for doubtful accounts	2,744	29
Provision for stock-based compensation	2,334	2,152
Changes in assets and liabilities:
Accounts receivable	(4,673)	16,727
Inventories	68,935	(33,034)
Prepaids and other current assets	(591)	(853)
Other assets	(2,130)	(1,976)
Accounts payable	(34,258)	(12,392)
Accrued customer rebates and returns	(21,683)	7,202
Accrued compensation and other liabilities	(3,691)	409
Cash provided by operating activities	26,210	23,214
Cash Flows from Investing Activities:
Acquisition, net of cash acquired	267	595
Property, plant and equipment additions	(10,537)	(7,247)
Cash used in investing activities	(10,270)	(6,652)
Cash Flows from Financing Activities:
Payments of revolving credit line	(23,900)	(10,000)
Payments of long-term debt	(3,125)	0
Proceeds from exercise of stock options	1,049	0
Purchase and cancellation of common stock	(433)	(10,752)
Other stock-related activity	(2,254)	(1,211)
Cash used in financing activities	(28,663)	(21,963)
Effect of exchange rate changes on Cash and Cash Equivalents	(4)	46
Net Decrease in Cash and Cash Equivalents	(12,727)	(5,355)
Cash and Cash Equivalents, Beginning of Period	46,034	58,782
Cash and Cash Equivalents, End of Period	33,307	53,427
Supplemental Cash Flow Information
Cash paid for interest expense	11,534	999
Cash paid for income taxes	$ 1,055	$ 712

Basis of Presentation

Basis of Presentation	3 Months Ended
	Apr. 01, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Basis of PresentationAs used herein, unless the context requires otherwise, “Dorman,” the “Company,” “we,” “us,” or “our” refers to Dorman Products, Inc. and its subsidiaries. Our ticker symbol on the NASDAQ Global Select Market is “DORM.”The accompanying unaudited condensed consolidated financial statements have been prepared under U.S. generally accepted accounting principles (“GAAP”) for interim financial information and under the rules and regulations of the U.S. Securities and Exchange Commission. However, they do not include all the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of only normal recurring adjustments) considered necessary for a fair presentation have been included. Operating results for the three months ended April 1, 2023 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2023 or any future period. We may experience significant fluctuations from quarter to quarter in our results of operations due to the timing of orders placed by our customers and the introduction of new products and product lines to customers. These financial statements should be read in conjunction with the consolidated financial statements and footnotes thereto included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2022.

Acquisitions

Acquisitions	3 Months Ended
	Apr. 01, 2023
Business Combination and Asset Acquisition [Abstract]
Acquisitions	Acquisitions On October 4, 2022 (the “Closing Date”), Dorman acquired 100% of the issued and outstanding equity interests of Super ATV, LLC ("SuperATV") (the “Transaction”), for aggregate consideration of $509.8 million (net of $6.8 million cash acquired), plus a potential earn-out payment to the sellers of SuperATV not to exceed $100 million in the aggregate, which remains subject to the achievement by SuperATV of certain revenue and gross margin targets in the years ending December 31, 2023 and December 31, 2024. In the three months ended April 1, 2023, we received $0.3 million in cash as proceeds from the closing net working capital adjustments. SuperATV is a leading independent supplier to the powersports aftermarket with a family of highly respected brands spanning functional accessories and upgrades, as well as replacement parts for specialty vehicles. The Transaction was accounted for as a business combination under the acquisition method of accounting. We have allocated the purchase price to tangible and identifiable intangible assets acquired and liabilities assumed based on their estimated fair values. The allocation of the purchase price to the assets acquired and liabilities assumed, including the residual amount allocated to goodwill, as of December 31, 2022, is based upon preliminary information and is subject to change within the permitted measurement period (up to one year from the acquisition date) as additional information concerning final asset and liability valuations is obtained. The fair values that remain preliminary include tax-related liabilities and contingent liabilities. Any material adjustments to the estimates based upon new information identified during the measurement period will be reflected as of the date of the acquisition. The table below details the fair values of the assets acquired and the liabilities assumed at the acquisition date, including applicable measurement period adjustments: (in thousands) Accounts receivable $ 3,317 Inventories 90,428 Prepaids and other current assets 5,293 Property, plant and equipment 23,776 Goodwill 247,474 Identifiable intangible assets 157,500 Operating lease right-of-use assets 11,661 Other Assets 3,001 Accounts payable (7,436) Accrued compensation (2,086) Accrued customer rebates and returns (1,609) Other current liabilities (8,726) Long-term operating lease liabilities (9,508) Other long-term liabilities (3,307) Net cash consideration $ 509,778

Sales of Accounts Receivable

Sales of Accounts Receivable	3 Months Ended
	Apr. 01, 2023
Receivables [Abstract]
Sales of Accounts Receivable	Sales of Accounts ReceivableWe have entered several customer-sponsored programs administered by unrelated financial institutions that permit us to sell (factor) certain accounts receivable at discounted rates to the financial institutions. Transactions under these agreements were accounted for as sales of accounts receivable and the related accounts receivable were removed from our Condensed Consolidated Balance Sheets at the times of the sales transactions. Under these agreements, we sold $237.7 million and $275.2 million of accounts receivable during the three months ended April 1, 2023 and March 26, 2022, respectively. Selling, general and administrative expenses include factoring costs associated with these accounts receivable sales programs of $13.5 million and $4.9 million during the three months ended April 1, 2023 and March 26, 2022, respectively. The increase in factoring costs for the three months ended April 1, 2023 compared to the prior year period was driven by higher interest rates during the three months ended April 1, 2023.

Inventories

Inventories	3 Months Ended
	Apr. 01, 2023
Inventory Disclosure [Abstract]
Inventories	Inventories Inventories include the cost of material, freight, direct labor and overhead utilized in the processing of our products and are stated at the lower of cost or net realizable value. Inventories were as follows: (in thousands) April 1, 2023 December 31, 2022 Raw materials $ 30,839 $ 34,267 Bulk product 200,491 234,871 Finished product 446,544 478,032 Packaging materials 9,075 8,731 Total $ 686,949 $ 755,901

Goodwill and Intangible Assets

Goodwill and Intangible Assets	3 Months Ended
	Apr. 01, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill and Intangible Assets	Goodwill and Intangible Assets Goodwill Goodwill included the following: (in thousands) Balance at December 31, 2022 $ 443,035 Measurement period adjustments for SuperATV acquisition 233 Foreign currency translation 68 Balance at April 1, 2023 $ 443,336 Intangible Assets Intangible assets included the following: April 1, 2023 December 31, 2022 Intangible assets subject to amortization Gross Carrying Value Accumulated Amortization Net Carrying Value Gross Carrying Value Accumulated Amortization Net Carrying Value (in thousands) Customer relationships $ 175,430 $ 24,156 $ 151,274 $ 175,430 $ 21,643 $ 153,787 Trade names 67,690 7,469 60,221 67,690 6,370 61,320 Product Portfolio 107,800 4,644 103,156 107,800 2,953 104,847 Technology 2,167 882 1,285 2,167 820 1,347 Patents and Other 1,430 367 1,063 1,430 322 1,108 Total $ 354,517 $ 37,518 $ 316,999 $ 354,517 $ 32,108 $ 322,409 Amortization expense was $5.5 million and $3.0 million during the three months ended April 1, 2023 and March 26, 2022, respectively.

Debt

Debt	3 Months Ended
	Apr. 01, 2023
Debt Disclosure [Abstract]
Debt	DebtAs of April 1, 2023 and December 31, 2022, the weighted average interest rate on the outstanding borrowings under our credit facility was 6.41% and 5.78%, respectively.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Apr. 01, 2023
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Acquisitions We have contingent consideration related to an acquisition due to the uncertainty of the ultimate amount of any payments that will become due as earnout payments if performance targets are achieved. If the remaining performance targets for the acquisition are fully achieved, the maximum additional contingent payments to be made under the transaction documents would be $100.0 million in aggregate. As of April 1, 2023, we accrued $20.5 million, representing the fair value of the estimated payments that we expect could become due in connection with the transaction. For the three months ended April 1, 2023, we recorded a charge of $0.5 million of accretion on the estimated payment liability, with the charge included in selling, general and administrative expenses in the Condensed Consolidated Statements of Operations. Other Contingencies We are a party to or otherwise involved in legal proceedings that arise in the ordinary course of business, such as various claims and legal actions involving contracts, employment claims, competitive practices, intellectual property infringement, product liability claims and other matters arising out of the conduct of our business. In the opinion of management, none of the actions,

Revenue Recognition

Revenue Recognition	3 Months Ended
	Apr. 01, 2023
Revenue from Contract with Customer [Abstract]
Revenue Recognition	Revenue Recognition The following tables present our disaggregated revenue by type of major good / product line, and geography. Three Months Ended (in thousands) April 1, 2023 March 26, 2022 Powertrain $ 171,035 $ 152,228 Chassis 188,864 160,862 Motor Vehicle body 91,159 73,280 Hardware 15,680 15,209 Total $ 466,738 $ 401,579 Three Months Ended (in thousands) April 1, 2023 March 26, 2022 Net sales to U.S. customers $ 430,693 $ 373,618 Net sales to non-U.S. customers 36,045 27,961 Total $ 466,738 $ 401,579

Stock-Based Compensation

Stock-Based Compensation	3 Months Ended
	Apr. 01, 2023
Share-Based Payment Arrangement [Abstract]
Stock-Based Compensation	Stock-Based Compensation Restricted Stock Awards (“RSAs”) and Restricted Stock Units (“RSUs”) We issue RSAs and RSUs to participants in our equity plans in the form of time-based RSAs and RSUs and performance-based RSAs and RSUs. Compensation cost related to RSA and RSU grants was $1.7 million and $1.6 million for the three months ended April 1, 2023 and March 26, 2022, respectively, and was included in selling, general and administrative expenses in the Condensed Consolidated Statements of Operations. The following table summarizes our RSA and RSU activity for the three months ended April 1, 2023: Shares Weighted Balance at December 31, 2022 238,922 $ 92.07 Granted 93,944 $ 98.02 Vested (59,382) $ 77.02 Canceled (8,392) $ 81.56 Balance at April 1, 2023 265,092 $ 97.88 For the three months ended April 1, 2023, we granted 29,399 performance-based RSUs with a grant date fair value of $113.15 per share. For the three months ended March 26, 2022, we granted 23,995 performance-based RSUs with a grant date fair value of $111.31 per share. As of April 1, 2023, there was $20.2 million of unrecognized compensation cost related to unvested RSA and RSU grants that is expected to be recognized over a weighted average period of 2.6 years. Stock Options We grant stock options to participants in our equity plans. Compensation cost related to stock option grants was $0.4 million for both the three months ended April 1, 2023 and March 26, 2022, and was included as selling, general and administrative expenses in the Condensed Consolidated Statements of Operations. The following table summarizes our stock option activity for the three months ended April 1, 2023 : Shares Weighted Weighted Aggregate Balance at December 31, 2022 268,119 $ 84.03 Granted 76,784 $ 91.28 Canceled (1,113) $ 96.36 Exercised (21,702) $ 72.85 Balance at April 1, 2023 322,088 $ 86.47 6.1 $ 1,935 Exercisable at April 1, 2023 133,913 $ 80.31 5.0 $ 1,398 As of April 1, 2023, there was $5.7 million of unrecognized compensation cost related to unvested stock options that is expected to be recognized over a weighted average period of 3.2 years.

Earnings Per Share

Earnings Per Share	3 Months Ended
	Apr. 01, 2023
Earnings Per Share [Abstract]
Earnings Per Share	Earnings Per Share Basic earnings per share was calculated by dividing our net income by the weighted average number of common shares outstanding during the period, excluding unvested RSAs which are considered to be contingently issuable. To calculate diluted earnings per share, common share equivalents are added to the weighted average number of common shares outstanding. Common share equivalents are calculated using the treasury stock method and are computed based on outstanding stock-based awards. For the three months ended April 1, 2023 and March 26, 2022, there were approximately 237,000 shares and 27,000 shares, respectively, that were excluded from the calculation of diluted earnings per share because their effect would have been anti-dilutive. The following table sets forth the computation of basic earnings per share and diluted earnings per share: Three Months Ended (in thousands, except per share data) April 1, 2023 March 26, 2022 Net income $ 5,683 $ 35,207 Denominator: Weighted average basic shares outstanding 31,436 31,499 Effect of stock-based compensation awards 101 102 Weighted average diluted shares outstanding 31,537 31,601 Earnings Per Share: Basic $ 0.18 $ 1.12 Diluted $ 0.18 $ 1.11

Common Stock Repurchases

Common Stock Repurchases	3 Months Ended
	Apr. 01, 2023
Common Stock Repurchases [Abstract]
Common Stock Repurchases	Common Stock Repurchases We periodically repurchase, at the then current market price, and cancel common stock issued to the Dorman Products, Inc. 401(k) Retirement Plan and Trust (the “401(k) Plan”). 401(k) Plan participants can no longer purchase shares of Dorman common stock as an investment option under the 401(k) Plan. Shares are generally purchased by the Company from the 401(k) Plan when participants sell units as permitted by the 401(k) Plan or elect to leave the 401(k) Plan upon retirement, termination or other reasons. The following table summarizes the repurchase and cancellation of common stock by the Company for the periods indicated: Three Months Ended April 1, 2023 March 26, 2022 Shares repurchased and canceled 5,125 12,764 Total cost of shares repurchased and canceled (in thousands) $ 434 $ 1,388 Average price per share $ 84.62 $ 108.74 Separately, our Board of Directors has authorized the repurchase of up to $600 million of our common stock through December 31, 2024 under a previously announced share repurchase program and subsequent authorizations. Under this program, share repurchases may be made from time to time depending on market conditions, share price, share availability and other factors at our discretion. The share repurchase program does not obligate us to acquire any specific number of shares. At April 1, 2023, $228.0 million was available for repurchase under this share repurchase program. The following table summarizes the repurchase and cancellation of common stock under the share repurchase program: Three Months Ended April 1, 2023 March 26, 2022 Shares repurchased and canceled — 98,350 Total cost of shares repurchased and canceled (in thousands) $ — $ 9,529 Average price per share $ — $ 96.89

Income Taxes

Income Taxes	3 Months Ended
	Apr. 01, 2023
Income Tax Disclosure [Abstract]
Income Taxes	Income TaxesAt April 1, 2023, we had $3.4 million of net unrecognized tax benefits, all of which would lower our effective tax rate if recognized. We recognize interest and penalties related to uncertain tax positions in income tax expense. As of April 1, 2023, accrued interest and penalties related to uncertain tax positions were not material. We file income tax returns in the United States, Canada, China, India, and Mexico. The statute of limitations for tax years before 2019 is closed for U.S. federal income tax purposes. The statute of limitations for tax years before 2018 is closed for the states in which we file. The statute of limitations for tax years before 2019 is closed for income tax purposes in Canada, China, and India. The statute of limitations for tax years before 2017 is closed for income tax purposes in Mexico.

Related-Party Transactions

Related-Party Transactions	3 Months Ended
	Apr. 01, 2023
Related Party Transactions [Abstract]
Related-Party Transactions	Related-Party TransactionsWe lease our Colmar, PA facility and a portion of our Lewisberry, PA facility from entities in which Steven L. Berman, our Non-Executive Chairman, and certain of his family members are owners. Each lease is a non-cancelable operating lease. Total rental payments to those entities under these lease arrangements will be $2.9 million in fiscal 2023 and were $2.5 million in fiscal 2022. The lease for our corporate headquarters in Colmar, PA was renewed in December 2022, effective as of January 1, 2023, and will expire on December 31, 2027. The lease for our Lewisberry, PA operating facility was signed in September 2020 and will expire on December 31, 2027.We are a partner in a joint venture with one of our suppliers and own a minority interest in two other suppliers. Two of these investments are accounted for under the equity method and one is accounted for under the cost method.

Fair Value Disclosures

Fair Value Disclosures	3 Months Ended
	Apr. 01, 2023
Fair Value Disclosures [Abstract]
Fair Value Disclosures	Fair Value DisclosuresThe carrying value of financial instruments such as cash and cash equivalents, accounts receivable, accounts payable, and other current assets and liabilities approximate their fair value based on the short-term nature of these instruments. The carrying value of borrowings under our credit facility approximates fair value because borrowings under our credit facility bear interest at rates indexed to a market rate (Term SOFR).

Acquisitions (Tables)

Acquisitions (Tables)	3 Months Ended
	Apr. 01, 2023
Business Combination and Asset Acquisition [Abstract]
Schedule of Estimated Fair Values of Assets Acquired and Liabilities Assumed	The table below details the fair values of the assets acquired and the liabilities assumed at the acquisition date, including applicable measurement period adjustments: (in thousands) Accounts receivable $ 3,317 Inventories 90,428 Prepaids and other current assets 5,293 Property, plant and equipment 23,776 Goodwill 247,474 Identifiable intangible assets 157,500 Operating lease right-of-use assets 11,661 Other Assets 3,001 Accounts payable (7,436) Accrued compensation (2,086) Accrued customer rebates and returns (1,609) Other current liabilities (8,726) Long-term operating lease liabilities (9,508) Other long-term liabilities (3,307) Net cash consideration $ 509,778

Inventories (Tables)

Inventories (Tables)	3 Months Ended
	Apr. 01, 2023
Inventory Disclosure [Abstract]
Summary of Inventories	Inventories include the cost of material, freight, direct labor and overhead utilized in the processing of our products and are stated at the lower of cost or net realizable value. Inventories were as follows: (in thousands) April 1, 2023 December 31, 2022 Raw materials $ 30,839 $ 34,267 Bulk product 200,491 234,871 Finished product 446,544 478,032 Packaging materials 9,075 8,731 Total $ 686,949 $ 755,901

Goodwill and Intangible Assets

Goodwill and Intangible Assets (Tables)	3 Months Ended
	Apr. 01, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Goodwill	Goodwill included the following: (in thousands) Balance at December 31, 2022 $ 443,035 Measurement period adjustments for SuperATV acquisition 233 Foreign currency translation 68 Balance at April 1, 2023 $ 443,336
Schedule of Intangible Assets	Intangible assets included the following: April 1, 2023 December 31, 2022 Intangible assets subject to amortization Gross Carrying Value Accumulated Amortization Net Carrying Value Gross Carrying Value Accumulated Amortization Net Carrying Value (in thousands) Customer relationships $ 175,430 $ 24,156 $ 151,274 $ 175,430 $ 21,643 $ 153,787 Trade names 67,690 7,469 60,221 67,690 6,370 61,320 Product Portfolio 107,800 4,644 103,156 107,800 2,953 104,847 Technology 2,167 882 1,285 2,167 820 1,347 Patents and Other 1,430 367 1,063 1,430 322 1,108 Total $ 354,517 $ 37,518 $ 316,999 $ 354,517 $ 32,108 $ 322,409

Revenue Recognition (Tables)

Revenue Recognition (Tables)	3 Months Ended
	Apr. 01, 2023
Revenue from Contract with Customer [Abstract]
Summary of Disaggregated Revenue	The following tables present our disaggregated revenue by type of major good / product line, and geography. Three Months Ended (in thousands) April 1, 2023 March 26, 2022 Powertrain $ 171,035 $ 152,228 Chassis 188,864 160,862 Motor Vehicle body 91,159 73,280 Hardware 15,680 15,209 Total $ 466,738 $ 401,579 Three Months Ended (in thousands) April 1, 2023 March 26, 2022 Net sales to U.S. customers $ 430,693 $ 373,618 Net sales to non-U.S. customers 36,045 27,961 Total $ 466,738 $ 401,579

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	3 Months Ended
	Apr. 01, 2023
Share-Based Payment Arrangement [Abstract]
Summary of RSA and RSU Activity	The following table summarizes our RSA and RSU activity for the three months ended April 1, 2023: Shares Weighted Balance at December 31, 2022 238,922 $ 92.07 Granted 93,944 $ 98.02 Vested (59,382) $ 77.02 Canceled (8,392) $ 81.56 Balance at April 1, 2023 265,092 $ 97.88
Summary of Stock Option Activity	The following table summarizes our stock option activity for the three months ended April 1, 2023 : Shares Weighted Weighted Aggregate Balance at December 31, 2022 268,119 $ 84.03 Granted 76,784 $ 91.28 Canceled (1,113) $ 96.36 Exercised (21,702) $ 72.85 Balance at April 1, 2023 322,088 $ 86.47 6.1 $ 1,935 Exercisable at April 1, 2023 133,913 $ 80.31 5.0 $ 1,398

Earnings Per Share (Tables)

Earnings Per Share (Tables)	3 Months Ended
	Apr. 01, 2023
Earnings Per Share [Abstract]
Schedule of Computation of Basic Earnings per Share and Diluted Earnings per Share	The following table sets forth the computation of basic earnings per share and diluted earnings per share: Three Months Ended (in thousands, except per share data) April 1, 2023 March 26, 2022 Net income $ 5,683 $ 35,207 Denominator: Weighted average basic shares outstanding 31,436 31,499 Effect of stock-based compensation awards 101 102 Weighted average diluted shares outstanding 31,537 31,601 Earnings Per Share: Basic $ 0.18 $ 1.12 Diluted $ 0.18 $ 1.11

Common Stock Repurchases (Table

Common Stock Repurchases (Tables)	3 Months Ended
	Apr. 01, 2023
Common Stock Repurchases [Abstract]
Summary of Shares Repurchase and Cancellation	The following table summarizes the repurchase and cancellation of common stock by the Company for the periods indicated: Three Months Ended April 1, 2023 March 26, 2022 Shares repurchased and canceled 5,125 12,764 Total cost of shares repurchased and canceled (in thousands) $ 434 $ 1,388 Average price per share $ 84.62 $ 108.74 Three Months Ended April 1, 2023 March 26, 2022 Shares repurchased and canceled — 98,350 Total cost of shares repurchased and canceled (in thousands) $ — $ 9,529 Average price per share $ — $ 96.89

Acquisitions - Additional Infor

Acquisitions - Additional Information (Detail) - USD ($) $ in Thousands		3 Months Ended
	Oct. 04, 2022	Apr. 01, 2023	Mar. 26, 2022
Business Acquisition [Line Items]
Business acquisition, purchase price		$ (267)	$ (595)
Super ATV LLC
Business Acquisition [Line Items]
Business acquisition, percentage of outstanding stock acquired	100%
Business acquisition, purchase price	$ 509,800
Business acquisition, net of acquired cash	6,800
Potential earn-out payment	$ 100,000
Cash as proceeds		$ (300)

Acquisitions - Schedule of Esti

Acquisitions - Schedule of Estimated Fair Values of Assets Acquired and Liabilities Assumed (Detail) - USD ($) $ in Thousands	Apr. 01, 2023	Dec. 31, 2022	Oct. 04, 2022
Business Acquisition [Line Items]
Goodwill	$ 443,336	$ 443,035
Super ATV LLC
Business Acquisition [Line Items]
Accounts receivable			$ 3,317
Inventories			90,428
Prepaids and other current assets			5,293
Property, plant and equipment			23,776
Goodwill			247,474
Identifiable intangible assets			157,500
Operating lease right-of-use assets			11,661
Other Assets			3,001
Accounts payable			(7,436)
Accrued compensation			(2,086)
Accrued customer rebates and returns			(1,609)
Other current liabilities			(8,726)
Long-term operating lease liabilities			(9,508)
Other long-term liabilities			(3,307)
Net cash consideration			$ 509,778

Sales of Accounts Receivable -

Sales of Accounts Receivable - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended
	Apr. 01, 2023	Mar. 26, 2022
Sale Of Accounts Receivable [Line Items]
Sale of accounts receivable	$ 237,700	$ 275,200
Selling, general and administrative expenses	126,363	86,528
Accounts Receivable Sales Programs
Sale Of Accounts Receivable [Line Items]
Selling, general and administrative expenses	$ 13,500	$ 4,900

Inventories - Summary of Invent

Inventories - Summary of Inventories (Detail) - USD ($) $ in Thousands	Apr. 01, 2023	Dec. 31, 2022
Inventory Disclosure [Abstract]
Raw materials	$ 30,839	$ 34,267
Bulk product	200,491	234,871
Finished product	446,544	478,032
Packaging materials	9,075	8,731
Total	$ 686,949	$ 755,901

Goodwill and Intangible Asset_2

Goodwill and Intangible Assets - Schedule of Goodwill (Detail) $ in Thousands	3 Months Ended
	Apr. 01, 2023 USD ($)
Goodwill [Roll Forward]
Balance at December 31, 2022	$ 443,035
Measurement period adjustments for SuperATV acquisition	233
Foreign currency translation	68
Balance at April 1, 2023	$ 443,336

Goodwill and Intangible Asset_3

Goodwill and Intangible Assets - Schedule of Intangible Assets (Detail) - USD ($) $ in Thousands	Apr. 01, 2023	Dec. 31, 2022
Finite Lived Intangible Assets [Line Items]
Gross Carrying Value	$ 354,517	$ 354,517
Accumulated Amortization	37,518	32,108
Net Carrying Value	316,999	322,409
Customer relationships
Finite Lived Intangible Assets [Line Items]
Gross Carrying Value	175,430	175,430
Accumulated Amortization	24,156	21,643
Net Carrying Value	151,274	153,787
Trade names
Finite Lived Intangible Assets [Line Items]
Gross Carrying Value	67,690	67,690
Accumulated Amortization	7,469	6,370
Net Carrying Value	60,221	61,320
Product Portfolio
Finite Lived Intangible Assets [Line Items]
Gross Carrying Value	107,800	107,800
Accumulated Amortization	4,644	2,953
Net Carrying Value	103,156	104,847
Technology
Finite Lived Intangible Assets [Line Items]
Gross Carrying Value	2,167	2,167
Accumulated Amortization	882	820
Net Carrying Value	1,285	1,347
Patents and Other
Finite Lived Intangible Assets [Line Items]
Gross Carrying Value	1,430	1,430
Accumulated Amortization	367	322
Net Carrying Value	$ 1,063	$ 1,108

Goodwill and Intangible Asset_4

Goodwill and Intangible Assets - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended
	Apr. 01, 2023	Mar. 26, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization expense	$ 5.5	$ 3

Debt - Additional Information (

Debt - Additional Information (Detail)	Apr. 01, 2023	Dec. 31, 2022
Revolving Credit Facility
Debt Instrument [Line Items]
Credit facility, outstanding borrowing interest rate	6.41%	5.78%

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Detail) $ in Millions	3 Months Ended
	Apr. 01, 2023 USD ($)
Commitments and Contingencies Disclosure [Abstract]
Maximum contingency payable	$ 100
Estimated contingent payments	20.5
Increase in contingent consideration accrual	$ 0.5

Revenue Recognition - Summary o

Revenue Recognition - Summary of Disaggregated Revenue (Detail) - USD ($) $ in Thousands	3 Months Ended
	Apr. 01, 2023	Mar. 26, 2022
Disaggregation Of Revenue [Line Items]
Total	$ 466,738	$ 401,579
Net sales to U.S. customers
Disaggregation Of Revenue [Line Items]
Total	430,693	373,618
Net sales to non-U.S. customers
Disaggregation Of Revenue [Line Items]
Total	36,045	27,961
Powertrain
Disaggregation Of Revenue [Line Items]
Total	171,035	152,228
Chassis
Disaggregation Of Revenue [Line Items]
Total	188,864	160,862
Motor Vehicle body
Disaggregation Of Revenue [Line Items]
Total	91,159	73,280
Hardware
Disaggregation Of Revenue [Line Items]
Total	$ 15,680	$ 15,209

Stock-Based Compensation - Addi

Stock-Based Compensation - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Apr. 01, 2023	Mar. 26, 2022
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Granted (in shares)	93,944
Weighted-average grant-date fair value (in dollars per share)	$ 98.02
Compensation cost related to stock options	$ 400	$ 400
RSA and RSU
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Compensation cost related to restricted stock	1,700	$ 1,600
Unrecognized compensation cost related to non-vested restricted stock	$ 20,200
Unrecognized compensation cost related to non-vested restricted stock, weighted-average period	2 years 7 months 6 days
Performance-Based Restricted Stock Units
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Granted (in shares)	29,399	23,995
Weighted-average grant-date fair value (in dollars per share)	$ 113.15	$ 111.31
Share-Based Payment Arrangement, Option
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Unrecognized compensation cost related to non-vested restricted stock	$ 5,700
Unrecognized compensation cost related to non-vested restricted stock, weighted-average period	3 years 2 months 12 days

Stock-Based Compensation - Summ

Stock-Based Compensation - Summary of RSA and RSU Activity (Detail)	3 Months Ended
	Apr. 01, 2023 $ / shares shares
Shares
Beginning balance (in shares) | shares	238,922
Granted (in shares) | shares	93,944
Vested (in shares) | shares	(59,382)
Canceled (in shares) | shares	(8,392)
Ending balance (in shares) | shares	265,092
Weighted Average Fair Value
Beginning balance, weighted average fair value (in dollars per share) | $ / shares	$ 92.07
Granted (in dollars per share) | $ / shares	98.02
Vested (in dollars per share) | $ / shares	77.02
Canceled (in dollars per share) | $ / shares	81.56
Ending balance, weighted average fair value (in dollars per share) | $ / shares	$ 97.88

Stock-Based Compensation - Su_2

Stock-Based Compensation - Summary of Stock Option Activity (Detail) $ / shares in Units, $ in Thousands	3 Months Ended
	Apr. 01, 2023 USD ($) $ / shares shares
Shares
Beginning balance (in shares) | shares	268,119
Granted (in shares) | shares	76,784
Canceled (in shares) | shares	(1,113)
Exercised (in shares) | shares	(21,702)
Ending balance (in shares) | shares	322,088
Exercisable (in shares) | shares	133,913
Weighted Average Fair Value
Beginning balance, weighted average exercise price (in dollars per share) | $ / shares	$ 84.03
Granted (in dollars per share) | $ / shares	91.28
Canceled (in dollars per share) | $ / shares	96.36
Exercised (in dollars per share) | $ / shares	72.85
Ending balance, weighted average exercise price (in dollars per share) | $ / shares	86.47
Exercisable (in dollars per share) | $ / shares	$ 80.31
Weighted average remaining term	6 years 1 month 6 days
Weighted average remaining term, exercisable	5 years
Aggregate intrinsic value | $	$ 1,935
Aggregate intrinsic value, exercisable | $	$ 1,398

Earnings Per Share - Additional

Earnings Per Share - Additional Information (Detail) - shares	3 Months Ended
	Apr. 01, 2023	Mar. 26, 2022
Earnings Per Share [Abstract]
Stock-based awards considered as anti-dilutive	237,000	27,000

Earnings Per Share - Schedule o

Earnings Per Share - Schedule of Computation of Basic Earnings per Share and Diluted Earnings per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Apr. 01, 2023	Mar. 26, 2022
Earnings Per Share [Abstract]
Net income	$ 5,683	$ 35,207
Denominator:
Weighted average shares outstanding, basic (in shares)	31,436	31,499
Effect of stock-based compensation awards (in shares)	101	102
Weighted average shares outstanding, diluted (in shares)	31,537	31,601
Earnings Per Share:
Earning per share, basic (in dollars per share)	$ 0.18	$ 1.12
Earning per share, diluted (in dollars per share)	$ 0.18	$ 1.11

Common Stock Repurchases - Summ

Common Stock Repurchases - Summary of Shares Repurchase and Cancellation (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Apr. 01, 2023	Mar. 26, 2022
Common Stock Repurchases
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares repurchased and canceled (in shares)	5,125	12,764
Total cost of shares repurchased and canceled (in thousands)	$ 434	$ 1,388
Average price per share (in dollars per share)	$ 84.62	$ 108.74
Share Repurchase Program
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares repurchased and canceled (in shares)	0	98,350
Total cost of shares repurchased and canceled (in thousands)	$ 0	$ 9,529
Average price per share (in dollars per share)	$ 0	$ 96.89

Common Stock Repurchases - Addi

Common Stock Repurchases - Additional Information (Detail) - Share Repurchase Program	Apr. 01, 2023 USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share repurchase program shares authorized to be repurchased (in shares)	$ 600,000,000
Shares available for repurchase under share repurchase program amount	$ 228,000,000

Income Taxes - Additional Infor

Income Taxes - Additional Information (Detail) $ in Millions	Apr. 01, 2023 USD ($)
Income Tax Disclosure [Abstract]
Net unrecognized tax benefits	$ 3.4

Related-Party Transactions - Ad

Related-Party Transactions - Additional Information (Detail) $ in Millions	3 Months Ended	6 Months Ended	12 Months Ended
	Apr. 01, 2023 Investment Supplier	Jul. 01, 2023 USD ($)	Dec. 31, 2022 USD ($)
Related Party Transaction [Line Items]
Rental payments based upon the terms of the lease | $			$ 2.5
Joint Venture
Related Party Transaction [Line Items]
Number of suppliers with company partners Joint Venture | Supplier	1
Minority interest investments in number of suppliers | Supplier	2
Number of investments accounted for under equity method | Investment	2
Number of investments accounted for under cost method | Investment	1
Scenario, Forecast
Related Party Transaction [Line Items]
Rental payments based upon the terms of the lease | $		$ 2.9