Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Oct. 02, 2021 | Oct. 29, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Period End Date | Oct. 2, 2021 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Central Index Key | 0001159167 | |
Entity File Number | 001-36414 | |
Entity Registrant Name | iROBOT CORPORATION | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 77-0259335 | |
Amendment Flag | false | |
Entity Address, Address Line One | 8 Crosby Drive | |
Entity Address, City or Town | Bedford | |
Entity Address, State or Province | MA | |
Entity Address, Postal Zip Code | 01730 | |
City Area Code | 781 | |
Local Phone Number | 430-3000 | |
Title of 12(b) Security | Common Stock, $0.01 par value | |
Trading Symbol | IRBT | |
Security Exchange Name | NASDAQ | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Current Fiscal Year End Date | --01-01 | |
Entity Shell Company | false | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 26,958,286 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Oct. 02, 2021 | Jan. 02, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 218,012 | $ 432,635 |
Short term investments | 29,909 | 51,081 |
Accounts receivable, net | 240,722 | 170,526 |
Inventory | 353,724 | 181,756 |
Other current assets | 46,367 | 45,223 |
Total current assets | 888,734 | 881,221 |
Property and equipment, net | 80,227 | 76,584 |
Operating lease right-of-use assets | 39,096 | 43,682 |
Deferred tax assets | 39,778 | 33,404 |
Goodwill | 121,909 | 125,872 |
Intangible Assets, Net | 8,348 | 9,902 |
Other assets | 31,542 | 19,063 |
Total assets | 1,209,634 | 1,189,728 |
Current liabilities: | ||
Accounts payable | 259,396 | 165,779 |
Accrued expenses | 130,958 | 131,388 |
Deferred revenue and customer advances | 11,076 | 10,400 |
Total current liabilities | 401,430 | 307,567 |
Operating lease liabilities | 45,206 | 50,485 |
Deferred tax liabilities | 118 | 705 |
Other long-term liabilities | 22,344 | 26,537 |
Total long-term liabilities | 67,668 | 77,727 |
Total liabilities | 469,098 | 385,294 |
Commitments and contingencies (Note 10) | ||
Preferred stock, 5,000 shares authorized and none outstanding | 0 | 0 |
Common stock, $0.01 par value, 100,000 shares authorized; 26,954 and 28,184 shares issued and outstanding, respectively | 270 | 282 |
Additional paid-in capital | 215,592 | 205,256 |
Retained earnings | 517,221 | 599,389 |
Accumulated other comprehensive income (loss) | 7,453 | (493) |
Total stockholders’ equity | 740,536 | 804,434 |
Total liabilities and stockholders’ equity | $ 1,209,634 | $ 1,189,728 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Common stock, shares outstanding | 26,954,000 | 28,184,000 |
Common stock, shares issued | 26,954,000 | 28,184,000 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, par value | $ 0.01 | $ 0.01 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Oct. 02, 2021 | Jan. 02, 2021 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares outstanding | 26,954,000 | 28,184,000 |
Common stock, shares issued | 26,954,000 | 28,184,000 |
Consolidated Statements of Inco
Consolidated Statements of Income Statement - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 02, 2021 | Sep. 26, 2020 | Oct. 02, 2021 | Sep. 26, 2020 | |
Revenue | $ 440,682 | $ 413,145 | $ 1,109,539 | $ 885,563 |
Cost of product revenue | 277,703 | 214,079 | 684,190 | 429,060 |
Amortization of acquired intangible assets | 225 | 225 | 675 | 1,695 |
Total cost of revenue | 277,928 | 214,304 | 684,865 | 430,755 |
Gross profit | 162,754 | 198,841 | 424,674 | 454,808 |
Research and development | 40,262 | 38,613 | 120,859 | 111,929 |
Selling and marketing | 59,055 | 50,488 | 186,722 | 136,144 |
General and administrative | 22,688 | 28,490 | 72,587 | 74,919 |
Amortization of acquired intangible assets | 251 | 256 | 661 | 764 |
Total operating expenses | 122,256 | 117,847 | 380,829 | 323,756 |
Operating income | 40,498 | 80,994 | 43,845 | 131,052 |
Other income, net | 26,585 | 42,240 | 26,139 | 41,837 |
Income before income taxes | 67,083 | 123,234 | 69,984 | 172,889 |
Income tax expense | 9,867 | 29,982 | 8,083 | 39,156 |
Net income | $ 57,216 | $ 93,252 | $ 61,901 | $ 133,733 |
Basic | $ 2.09 | $ 3.33 | $ 2.22 | $ 4.76 |
Diluted | $ 2.06 | $ 3.27 | $ 2.17 | $ 4.69 |
Basic | 27,413 | 28,031 | 27,923 | 28,084 |
Diluted | 27,803 | 28,539 | 28,475 | 28,502 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 02, 2021 | Sep. 26, 2020 | Oct. 02, 2021 | Sep. 26, 2020 | |
Net income | $ 57,216 | $ 93,252 | $ 61,901 | $ 133,733 |
Other comprehensive income: | ||||
Net foreign currency translation adjustments | (3,974) | 5,600 | (8,743) | 6,864 |
Net unrealized gains (losses) on cash flow hedges, net of tax | 5,181 | (8,418) | 18,113 | (5,379) |
Net gains on cash flow hedge reclassified into earnings, net of tax | (878) | (745) | (1,420) | (3,533) |
Net unrealized losses on marketable securities, net of tax | 0 | (30) | (4) | (10) |
Total comprehensive income | $ 57,545 | $ 89,659 | $ 69,847 | $ 131,675 |
Consolidated Statement of Share
Consolidated Statement of Shareholders' Equity Statement - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] |
Beginning Balance, Shares | 28,352,000 | ||||
Beginning balance | $ 652,069 | $ 284 | $ 196,455 | $ 452,321 | $ 3,009 |
Issuance of common stock under employee stock plans (in shares) | 122,000 | ||||
Stock Issued During Period, Value, Stock Options Exercised | 4,048 | $ 1 | 4,047 | ||
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures (in shares) | 356,000 | ||||
Stock Issued During Period, Value, Restricted Stock Award, Net of Forfeitures | 0 | $ 3 | (3) | ||
APIC, Share-based Payment Arrangement, Increase for Cost Recognition | 20,904 | 20,904 | |||
Shares Paid for Tax Withholding for Share Based Compensation (in shares) | (46,000) | ||||
Stock Withheld to Cover Tax Withholding Requirements Upon Vesting to Restricted Stock Units Amount | (1,845) | (1,845) | |||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | (2,058) | (2,058) | |||
Adjustments to Additional Paid in Capital Directors Deferred Compensation | 63 | 63 | |||
Net income | $ 133,733 | 133,733 | |||
Stock repurchased and retired during period (in shares) | (664,000) | ||||
Value of stock repurchased | $ (25,000) | $ (7) | (24,993) | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 200,000 | ||||
Contract with Customer, Liability, Revenue Recognized | $ 4,600 | ||||
Effective Income Tax Rate Reconciliation, Percent | 22.60% | ||||
Beginning Balance, Shares | 27,998,000 | ||||
Beginning balance | $ 682,062 | $ 280 | 184,436 | 492,802 | 4,544 |
Issuance of common stock under employee stock plans (in shares) | 358,000 | 10,000 | |||
Stock Issued During Period, Value, Stock Options Exercised | $ 0 | 358 | |||
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures (in shares) | 113,000 | ||||
Stock Issued During Period, Value, Restricted Stock Award, Net of Forfeitures | $ 0 | $ 1 | (1) | ||
APIC, Share-based Payment Arrangement, Increase for Cost Recognition | 9,843 | 9,843 | |||
Shares Paid for Tax Withholding for Share Based Compensation (in shares) | (1,000) | ||||
Stock Withheld to Cover Tax Withholding Requirements Upon Vesting to Restricted Stock Units Amount | (29) | $ 0 | (29) | ||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | (3,593) | ||||
Adjustments to Additional Paid in Capital Directors Deferred Compensation | 21 | 21 | |||
Net income | $ 93,252 | 93,252 | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 100,000 | ||||
Contract with Customer, Liability, Revenue Recognized | $ 1,800 | ||||
Effective Income Tax Rate Reconciliation, Percent | 24.30% | ||||
Beginning Balance, Shares | 28,120,000 | ||||
Beginning balance | $ 781,914 | $ 281 | 194,628 | 586,054 | 951 |
Beginning Balance, Shares | 28,184,000 | 28,184,000 | |||
Beginning balance | $ 804,434 | $ 282 | 205,256 | 599,389 | (493) |
Issuance of common stock under employee stock plans (in shares) | 122,000 | ||||
Stock Issued During Period, Value, Stock Options Exercised | 5,157 | $ 1 | 5,156 | ||
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures (in shares) | 338,000 | ||||
Stock Issued During Period, Value, Restricted Stock Award, Net of Forfeitures | 0 | $ 3 | (3) | ||
APIC, Share-based Payment Arrangement, Increase for Cost Recognition | 16,195 | 16,195 | |||
Shares Paid for Tax Withholding for Share Based Compensation (in shares) | (45,000) | ||||
Stock Withheld to Cover Tax Withholding Requirements Upon Vesting to Restricted Stock Units Amount | (5,161) | (5,161) | |||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | 7,946 | 7,946 | |||
Adjustments to Additional Paid in Capital Directors Deferred Compensation | 64 | 64 | |||
Net income | $ 61,901 | 61,901 | |||
Stock repurchased and retired during period (in shares) | (1,645,000) | ||||
Value of stock repurchased | $ (150,000) | $ (16) | (5,915) | (144,069) | |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 100,000 | ||||
Contract with Customer, Liability, Revenue Recognized | $ 10,500 | ||||
Effective Income Tax Rate Reconciliation, Percent | 11.50% | ||||
Beginning Balance, Shares | 28,050,000 | ||||
Beginning balance | $ 781,232 | $ 281 | 216,375 | 557,452 | 7,124 |
Issuance of common stock under employee stock plans (in shares) | 1,000 | ||||
Stock Issued During Period, Value, Stock Options Exercised | 27 | $ 0 | 27 | ||
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures (in shares) | 105,000 | ||||
Stock Issued During Period, Value, Restricted Stock Award, Net of Forfeitures | 0 | $ 1 | (1) | ||
APIC, Share-based Payment Arrangement, Increase for Cost Recognition | 2,073 | 2,073 | |||
Shares Paid for Tax Withholding for Share Based Compensation (in shares) | (4,000) | ||||
Stock Withheld to Cover Tax Withholding Requirements Upon Vesting to Restricted Stock Units Amount | (362) | (362) | |||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | 329 | 329 | |||
Adjustments to Additional Paid in Capital Directors Deferred Compensation | 21 | 21 | |||
Net income | $ 57,216 | 57,216 | |||
Stock repurchased and retired during period (in shares) | (1,198,218) | ||||
Value of stock repurchased | $ (100,000) | $ (12) | (2,541) | (97,447) | |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 200,000 | ||||
Contract with Customer, Liability, Revenue Recognized | $ 6,600 | ||||
Effective Income Tax Rate Reconciliation, Percent | 14.70% | ||||
Beginning Balance, Shares | 26,954,000 | 26,954,000 | |||
Beginning balance | $ 740,536 | $ 270 | $ 215,592 | $ 517,221 | $ 7,453 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Oct. 02, 2021 | Sep. 26, 2020 | |
Cash flows from operating activities: | ||
Net income | $ 61,901 | $ 133,733 |
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | ||
Depreciation and amortization | 23,978 | 25,705 |
Gain on equity investment | (26,929) | (43,480) |
Stock-based compensation | 16,195 | 20,904 |
Deferred income taxes, net | (8,190) | 10,939 |
Other | 4,496 | 4,785 |
Changes in operating assets and liabilities — (use) source | ||
Accounts receivable | (71,368) | (32,572) |
Inventory | (173,986) | (61,006) |
Other assets | (5,851) | (20,718) |
Accounts payable | 93,530 | 46,098 |
Accrued expenses and other liabilities | (4,551) | 12,358 |
Net cash (used in) provided by operating activities | (90,775) | 96,746 |
Cash flows from investing activities: | ||
Additions of property and equipment | (25,302) | (25,031) |
Purchase of investments | (9,641) | (3,729) |
Sales and maturities of investments | 63,976 | 10,500 |
Net cash provided by (used in) investing activities | 29,033 | (18,260) |
Cash flows from financing activities: | ||
Proceeds from employee stock plans | 5,157 | 4,048 |
Income tax withholding payment associated with restricted stock vesting | (5,161) | (1,845) |
Stock repurchases | 150,000 | 25,000 |
Net cash used in financing activities | (150,004) | (22,797) |
Effect of exchange rate changes on cash and cash equivalents | (2,877) | 2,125 |
Net (decrease) increase in cash and cash equivalents | (214,623) | 57,814 |
Cash and cash equivalents, at beginning of period | 432,635 | 239,392 |
Cash and cash equivalents, at end of period | $ 218,012 | $ 297,206 |
Description of Business
Description of Business | 9 Months Ended |
Oct. 02, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business | iRobot Corporation ("iRobot" or the "Company") designs and builds robots that empower people to do more. iRobot's consumer robots help people find smarter ways to clean and accomplish more in their daily lives. The Company's portfolio of floor cleaning robots features proprietary technologies for the connected home and advanced concepts in cleaning, robot-based artificial intelligence, mapping and navigation, machine vision, home understanding, human-robot interaction and physical solutions. Leveraging this portfolio, the Company's engineers are building an ecosystem of robots to help realize the smart home's potential. The Company’s revenue is primarily generated from product sales through a variety of distribution channels, including chain stores and other national retailers, through the Company's own website and app, dedicated e-commerce websites, the online arms of traditional retailers and through value-added distributors and resellers worldwide. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Oct. 02, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation and Foreign Currency Translation The accompanying consolidated financial statements include those of iRobot and its subsidiaries, after elimination of all intercompany balances and transactions. iRobot has prepared the accompanying unaudited consolidated financial statements in conformity with accounting principles generally accepted in the United States of America ("GAAP"). In the opinion of management, all adjustments necessary to the unaudited interim consolidated financial statements have been made to state fairly the Company's financial position. Interim results are not necessarily indicative of results for the full fiscal year or any future periods. The information included in this Form 10-Q should be read in conjunction with the Company's audited consolidated financial statements and notes thereto included in its Annual Report on Form 10-K for the fiscal year ended January 2, 2021, filed with the Securities and Exchange Commission on February 16, 2021. The Company operates and reports using a 52-53 week fiscal year ending on the Saturday closest to December 31. Accordingly, the Company’s fiscal quarters end on the Saturday that falls closest to the last day of the third month of each quarter. Recently Adopted Accounting Standards In December 2019, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2019-12, "Income Taxes - Simplifying the Accounting for Income Taxes." The ASU simplifies the accounting for income taxes by removing certain exceptions to the general principles as well as clarifying and amending existing guidance to improve consistent application. The amendments to this ASU are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020, with early adoption permitted. Depending on the amendment, adoption may be applied on the retrospective, modified retrospective or prospective basis. The Company adopted the standard in the first quarter of 2021 and the adoption had no impact on the Company's consolidated financial statements. Recently Issued Accounting Standards From time to time, new accounting pronouncements are issued by FASB that are adopted by the Company as of the specified effective date. Unless otherwise discussed, the Company believes that recently issued standards, which are not yet effective, will not have a material impact on the Company’s consolidated financial statements upon adoption. Use of Estimates The preparation of these financial statements in conformity with GAAP requires the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities and revenue and expenses. These estimates and judgments include, but are not limited to, revenue recognition, including performance obligations, variable consideration and other obligations such as product returns and incentives; allowance for credit losses; product warranties; valuation of goodwill and acquired intangible assets; valuation of non-marketable equity investments; evaluating loss contingencies; accounting for stock-based compensation including performance-based assessments; and accounting for income taxes and related valuation allowances. The Company bases its estimates and assumptions on historical experience, market participant fair value considerations, projected future cash flows, current conditions, including estimated economic implications of the COVID-19 pandemic and various other factors that the Company believes are reasonable under the circumstances. While there was not a material change to the consolidated financial statements related to these estimates as of and for the nine months ended October 2, 2021, the Company's future assessment of the magnitude and duration of the COVID-19 pandemic as well as other factors, could result in material impacts to the Company's consolidated financial statements in future reporting periods.The extent and continued impact of COVID-19 has been taken into account by management in making the significant assumptions and estimates related to the above. Actual results may differ from the Company’s estimates. Credit Losses The Company is exposed to credit losses primarily through sales of its products. The Company assesses each customer's ability to pay by conducting a credit review which includes consideration of established credit ratings or an internal assessment of the customer's creditworthiness based on an analysis of their financial information when a credit rating is not available. The Company monitors the credit exposure through active review of customer balances. The Company's expected loss methodology for accounts receivable is developed through consideration of factors including, but not limited to, historical collection experience, current customer credit ratings, current and future economic and market conditions and age of the receivable. Although the Company historically has not experienced significant credit losses as it relates to trade accounts receivable, the COVID-19 pandemic has caused uncertainty in some customer accounts. The Company did not have an adjustment to its estimate of credit losses during the three months ended October 2, 2021. The Company recorded a decrease to the reserve and bad debt expense of $2.1 million during the nine months ended October 2, 2021. As of October 2, 2021 and January 2, 2021, the Company had an allowance for credit losses of $2.7 million and $4.8 million, respectively. Inventory Inventory is stated at the lower of cost or net realizable value with cost being determined using the first-in, first-out method. The Company writes down its inventory for estimated obsolescence or excess inventory based upon assumptions around market conditions and estimates of future demand. Adjustments to reduce inventory to net realizable value are recognized in cost of revenue and have not been significant for the periods presented. Inventory primarily consists of finished goods at October 2, 2021 and January 2, 2021. Strategic Investments The Company holds non-marketable equity securities as part of its strategic investments portfolio. The Company classifies the majority of these securities as equity securities without readily determinable fair values and measures these investments at cost, less any impairment, adjusted for observable price changes. These investments are valued using significant unobservable inputs or data in an inactive market and the valuation requires the Company's judgment due to the absence of market prices and inherent lack of liquidity. The estimated fair value is based on quantitative and qualitative factors including, but not limited to, subsequent financing activities by the investee and projected discounted cash flows. At October 2, 2021 and January 2, 2021, the Company's equity securities without readily determinable fair values totaled $15.1 million and $17.4 million, respectively, and are included in other assets on the consolidated balance sheets. On July 1, 2020, Teladoc Health, Inc. ("Teladoc") closed on its previously announced acquisition of InTouch Health, of which the Company held non-marketable equity securities. In exchange for its shares of InTouch Health, the Company received 0.2 million shares of Teladoc and recorded a gain of $38.6 million to other income, net during the second quarter of 2020. The Teladoc shares received were subject to time based contractual sales restrictions which expired in January 2021. These shares were accounted for as marketable equity securities and measured at fair value with unrealized gains and losses recognized in other income, net at the end of each reporting period. As a result, the Company entered into an economic hedge in July 2020 to reduce the Company's exposure to stock price fluctuations during the restricted period. During the first quarter of 2021, the Company received net proceeds of $51.5 million related to the sale of Teladoc shares with gross proceeds of $60.1 million, net of settlement payment of $8.6 million for the related economic hedge. On July 22, 2021, Matterport, Inc. ("Matterport"), of which the Company held non-marketable equity securities, completed a merger with a special purpose acquisition company and began trading on Nasdaq under the symbol "MTTR." Prior to the merger, the Company accounted for the shares in Matterport as equity securities without readily determinable fair value. Upon consummation of the merger, the Company received 1.6 million shares of MTTR and recorded a gain of $20.3 million to other income, net. The post merger Matterport shares received are subject to time based contractual sales restrictions which expire in January 2022. These shares are accounted for as marketable equity securities and measured at fair value with unrealized gains and losses recognized in other income, net at the end of each reporting period. During the three months ended October 2, 2021, the Company recorded gains of $6.7 million associated with marking the shares to fair value. As of October 2, 2021, the shares in MTTR were valued at $29.8 million and are recorded in short term investments on the consolidated balance sheet. Net Income Per Share Basic income per share is calculated using the Company's weighted-average outstanding common shares. Diluted income per share is calculated using the Company's weighted-average outstanding common shares including the dilutive effect of stock awards as determined under the treasury stock method. The following table presents the calculation of both basic and diluted net income per share (in thousands, except per share amounts): Three Months Ended Nine Months Ended October 2, 2021 September 26, 2020 October 2, 2021 September 26, 2020 Net income $ 57,216 $ 93,252 $ 61,901 $ 133,733 Basic weighted-average common shares outstanding 27,413 28,031 27,923 28,084 Dilutive effect of employee stock awards 390 508 552 418 Diluted weighted-average common shares outstanding 27,803 28,539 28,475 28,502 Net income per share - Basic $ 2.09 $ 3.33 $ 2.22 $ 4.76 Net income per share - Diluted $ 2.06 $ 3.27 $ 2.17 $ 4.69 |
Revenue Recognition (Notes)
Revenue Recognition (Notes) | 9 Months Ended |
Oct. 02, 2021 | |
Revenue Recognition and Deferred Revenue [Abstract] | |
Revenue from Contract with Customer [Text Block] | Revenue Recognition The Company primarily derives its revenue from the sale of consumer robots and accessories. The Company sells products directly to consumers through online stores and indirectly through resellers and distributors. Revenue is recognized upon transfer of control of promised products or services to customers, generally as title and risk of loss pass, in an amount that reflects the consideration the Company expects to receive in exchange for those products or services. Revenue is recognized only to the extent that it is probable that a significant reversal of revenue will not occur and when collection is considered probable. Taxes collected from customers, which are subsequently remitted to governmental authorities, are excluded from revenue. Shipping and handling expenses are considered fulfillment activities and are expensed as incurred. The Company’s consumer robots are highly dependent on, and interrelated with, the embedded software and cannot function without the software. As such, the consumer robots are accounted for as a single performance obligation, and the revenue is recognized at a point in time when the control is transferred to distributors, resellers or directly to end customers through online stores. For certain consumer robots with Wi-Fi capability ("connected robots"), each sale represents an arrangement with multiple promises consisting of the robot, downloadable free app, cloud services and potential future unspecified software upgrades. The Company has determined that the app, cloud services and potential future unspecified software upgrades represent one promised service to the customer to enhance the functionality and interaction with the robot (referred to collectively as "Cloud Services"). For contracts that contain multiple performance obligations, the transaction price is allocated to each performance obligation based on a relative standalone selling price ("SSP"). The Company estimates SSP for items that are not sold separately, using market data if available or analysis of the cost of providing the products or services plus a reasonable margin. The transaction price allocated to the robots is recognized as revenue at a point in time when control is transferred and when collection is considered probable. The transaction price allocated to the Cloud Services is deferred and recognized on a straight-line basis over the estimated term of the Cloud Services. For contracts with a duration of greater than one year, the transaction price allocated to performance obligations that are unsatisfied as of October 2, 2021 and January 2, 2021 was $17.8 million and $11.5 million, respectively . The Company does not disclose the value of unsatisfied performance obligations for contracts with an original expected duration of one year or less. The Company’s products generally carry a one-year or two-year limited warranty that promises customers that delivered products are as specified. The Company does not consider these assurance-type warranties as a separate performance obligation and therefore, the Company accounts for such warranties under ASC 460, "Guarantees." During the fourth quarter of 2020, the Company began offering its customers the option to purchase an extended warranty for a fee. Amounts paid for the extended warranty plans are deferred and recognized as revenue on a straight-line basis over the service period. The Company provides limited rights of returns for direct-to-consumer sales generated through its online stores and certain resellers and distributors. The Company records an allowance for product returns based on specific terms and conditions included in the customer agreements or based on historical experience and the Company's expectation of future returns. In addition, the Company may provide other credits or incentives which are accounted for as variable consideration when estimating the amount of revenue to recognize. Where appropriate, these estimates take into consideration relevant factors such as the Company’s historical experience, current contractual requirements, specific known market events and forecasted inventory level in the channels. Overall, these reserves reflect the Company’s best estimates, and the actual amounts of consideration ultimately received may differ from the Company’s estimates. Returns and credits are estimated at the time of sale and updated at the end of each reporting period as additional information becomes available. As of October 2, 2021, the Company has reserves for product returns of $54.9 million and other credits and incentives of $75.3 million. As of January 2, 2021, the Company had reserves for product returns of $64.3 million and other credits and incentives of $142.2 million. Revenue recognized during the three and nine months ended October 2, 2021 and September 26, 2020 related to performance obligations satisfied in a prior period was not material. Disaggregation of Revenue The following table provides information about disaggregated revenue by geographical region (in thousands): Three Months Ended Nine Months Ended October 2, 2021 September 26, 2020 October 2, 2021 September 26, 2020 United States $ 216,542 $ 206,276 $ 528,138 $ 428,389 EMEA 132,130 114,477 339,918 252,184 Japan 66,823 65,490 154,652 136,215 Other 25,187 26,902 86,831 68,775 Total revenue $ 440,682 $ 413,145 $ 1,109,539 $ 885,563 Contract Balances The following table provides information about receivables and contract liabilities from contracts with customers (in thousands): October 2, 2021 January 2, 2021 Accounts receivable, net $ 240,722 $ 170,526 Contract liabilities 21,001 17,700 |
Leases (Notes)
Leases (Notes) | 9 Months Ended |
Oct. 02, 2021 | |
Leases [Abstract] | |
Lessee, Operating Leases [Text Block] | Leases The Company's leasing arrangements primarily consist of operating leases for its facilities which include corporate, sales and marketing and research and development offices and equipment under various non-cancelable lease arrangements. For leases with terms greater than 12 months, the Company records the related right-of-use asset and lease obligation at the present value of lease payments over the term. Leases with an initial term of 12 months or less are not recorded on the balance sheet. Lease expense is recognized on a straight-line basis over the lease term. The Company's leases typically include rental escalation clauses, renewal options and/or termination options that are factored into the determination of lease payments when appropriate. The Company does not separate lease and nonlease components of contracts and excludes all variable lease payments from the measurement of right-of-use assets and lease liabilities. The Company's variable lease payments generally include usage based nonlease components. The Company's lease agreements do not contain any residual value guarantees or restrictive covenants. The Company's existing leases do not provide a readily determinable implicit rate. Therefore, the Company estimates its incremental borrowing rate to discount the lease payments. At October 2, 2021, the Company's weighted average discount rate wa s 3.58% , while the weighted average remaining lease term w as 7.79 years. The components of lease expense were as follows (in thousands): Three Months Ended Nine Months Ended October 2, 2021 September 26, 2020 October 2, 2021 September 26, 2020 Operating lease cost $ 2,181 $ 2,287 $ 6,315 $ 6,932 Variable lease cost 837 823 2,765 2,827 Total lease cost $ 3,018 $ 3,110 $ 9,080 $ 9,759 Supplemental cash flow information related to leases was as follows (in thousands): Three Months Ended Nine Months Ended October 2, 2021 September 26, 2020 October 2, 2021 September 26, 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 2,150 $ 2,750 $ 6,529 $ 7,516 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ — $ 744 $ — $ 2,310 Maturities of operating lease liabilities were as follows as of October 2, 2021 (in thousands): Remainder of 2021 $ 1,598 2022 8,561 2023 7,627 2024 6,571 2025 6,600 Thereafter 28,525 Total minimum lease payments $ 59,482 Less: imputed interest 7,985 Present value of future minimum lease payments $ 51,497 Less: current portion of operating lease liabilities (Note 6) 6,291 Long-term lease liabilities $ 45,206 |
Goodwill, Other Intangible Asse
Goodwill, Other Intangible Assets and Other Assets | 9 Months Ended |
Oct. 02, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill, Other Intangible Assets and Other Assets | Goodwill and Other Intangible Assets The following table summarizes the activity in the carrying amount of goodwill and intangible assets for the nine months ended October 2, 2021 (in thousands): Goodwill Intangible assets Balance as of January 2, 2021 $ 125,872 $ 9,902 Amortization — (1,336) Effect of foreign currency translation (3,963) (218) Balance as of October 2, 2021 $ 121,909 $ 8,348 |
Accrued Expenses
Accrued Expenses | 9 Months Ended |
Oct. 02, 2021 | |
Accrued Liabilities, Current [Abstract] | |
Accrued Expenses | Accrued Expenses Accrued expenses consisted of the following at (in thousands): October 2, 2021 January 2, 2021 Accrued manufacturing and logistics cost $ 28,967 $ 20,093 Accrued warranty 28,061 24,392 Accrued compensation and benefits 17,471 17,635 Accrued income taxes 10,777 3,806 Accrued bonus 8,617 31,523 Current portion of operating lease liabilities 6,291 6,315 Accrued sales and other indirect taxes payable 5,343 15,480 Derivative liability 3,799 4,268 Accrued other 21,632 7,876 $ 130,958 $ 131,388 |
Derivative Instruments (Notes)
Derivative Instruments (Notes) | 9 Months Ended |
Oct. 02, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities Disclosure [Text Block] | Derivative Instruments and Hedging Activities The Company operates internationally and, in the normal course of business, is exposed to fluctuations in foreign currency exchange rates. The foreign currency exposures typically arise from transactions denominated in currencies other than the functional currency of the Company's operations, primarily the British Pound, Canadian Dollar, Euro and Japanese Yen. The Company uses derivative instruments that are designated in cash flow hedge relationships to reduce or eliminate the effects of foreign exchange rate change on sales. These contracts typically have maturities o f three years or l ess. At October 2, 2021 and January 2, 2021, the Company had outstanding cash flow hedges with a total notional value of $381.5 million an d $431.9 million, respectively. The Company also enters into economic hedges that are not designated as hedges from an accounting standpoint to reduce or eliminate the effects of foreign exchange rate changes typically related to short term trade receivables and payables. These contracts typically have maturities of twelve months or less. At October 2, 2021 and January 2, 2021, the Company had outstanding foreign currency economic hedges with a total notional value of $299.1 million and $192.2 million, respectively. As described in Note 2, during July 2020, the Company entered into a forward sale contract as an economic hedge to reduce the Company's exposure to stock price fluctuations on one of its marketable equity securities. The contract had a maturity date of January 2021 and was settled during the first quarter of 2021. The total notional value of this economic hedge was $51.5 million at January 2, 2021. The fair values of derivative instruments are as follows (in thousands): Fair Value Classification October 2, 2021 January 2, 2021 Derivatives not designated as hedging instruments: Foreign currency forward contracts Other current assets $ 5,658 $ 261 Foreign currency forward contracts Other assets 2,931 — Foreign currency forward contracts Accrued expenses 3,171 2,176 Forward sale contract Other current assets — 3,904 Derivatives designated as cash flow hedges: Foreign currency forward contracts Other current assets $ 3,258 $ 362 Foreign currency forward contracts Other assets 5,639 679 Foreign currency forward contracts Accrued expenses 628 2,092 Foreign currency forward contracts Long-term liabilities 591 8,554 Losses associated with derivative instruments not designated as hedging instruments are as follows (in thousands): Three Months Ended Nine Months Ended Classification October 2, 2021 September 26, 2020 October 2, 2021 September 26, 2020 Loss recognized in income Other income, net $ (1,606) $ (2,232) $ (11,229) $ (3,475) The following tables reflect the effect of derivatives designated as cash flow hedging (in thousands): Gain (loss) recognized in OCI on Derivative (1) Three Months Ended Nine Months Ended October 2, 2021 September 26, 2020 October 2, 2021 September 26, 2020 Foreign currency forward contracts $ 6,851 $ (11,230) $ 23,959 $ (7,177) (1) The amount represents the change in fair value of derivative contracts due to changes in spot rates. Gain recognized in earnings on cash flow hedging instruments Three Months Ended Nine Months Ended October 2, 2021 September 26, 2020 October 2, 2021 September 26, 2020 Revenue Revenue Consolidated statements of operations in which the effects of cash flow hedging instruments are recorded $ 440,682 $ 413,145 $ 1,109,539 $ 885,563 Gain on cash flow hedging relationships: Foreign currency forward contracts: Amount of gain reclassified from AOCI into earnings $ 1,161 $ 993 $ 1,878 $ 4,711 |
Fair Value Measurements (Notes)
Fair Value Measurements (Notes) | 9 Months Ended |
Oct. 02, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures [Text Block] | Fair Value Measurements The Company’s financial assets and liabilities measured at fair value on a recurring basis were as follows (in thousands): Fair Value Measurements as of Level 1 Level 2 (1) Level 3 Assets: Money market funds $ 95,501 $ — $ — Marketable equity securities, $23,286 at cost (2) 29,909 — — Derivative instruments (Note 7) — 17,486 — Total assets measured at fair value $ 125,410 $ 17,486 $ — Liabilities: Derivative instruments (Note 7) $ — $ 4,390 $ — Total liabilities measured at fair value $ — $ 4,390 $ — Fair Value Measurements as of Level 1 Level 2 (1) Level 3 Assets: Money market funds $ 47,529 $ — $ — Marketable equity securities, $46,578 at cost 47,576 — — Corporate and government bonds, $3,498 at cost — 3,505 — Derivative instruments (Note 7) — 5,206 — Total assets measured at fair value $ 95,105 $ 8,711 $ — Liabilities: Derivative instruments (Note 7) $ — $ 12,822 $ — Total liabilities measured at fair value $ — $ 12,822 $ — (1) Level 2 fair value estimates are based on observable inputs other than quoted prices in active markets for identical assets and liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. (2) The related unrealized gain recorded in other income, net was $6.6 million for the three months ended October 2, 2021. Marketable equity securities are included in short term investments on the consolidated balance sheet. |
Stockholders Equity (Notes)
Stockholders Equity (Notes) | 9 Months Ended |
Oct. 02, 2021 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders' Equity Share Repurchase Activity The Company's Board of Directors approved a stock repurchase program authorizing up to $200.0 million in share repurchases from time to time until September 5, 2021 which was extended until March 31, 2022. As of October 2, 2021, $25.0 million remained available for further repurchase under the program. On August 2, 2021, the Company entered into an accelerated share repurchase ("ASR") agreement with Wells Fargo Bank, National Association ("Wells Fargo"), under which the Company paid $100.0 million and received an aggregate initial share delivery of 943,285 shares of its common stock, which were immediately retired. In September 2021, Wells Fargo delivered an additional 254,933 shares of the Company's common stock to complete settlement of the ASR agreement. Under this agreement, the Company repurchased a total of 1,198,218 shares of its common stock at an average price of $83.46, totaling $100.0 million during the three months ended October 2, 2021. The final number of shares repurchased was based on the volume-weighted average price of its common stock over the duration of the ASR agreement, less a discount. On March 11, 2021, the Company entered into a Rule 10b5-1 plan to repurchase $50.0 million of common stock and the Company repurchased 446,954 shares of its common stock at an average price of $111.85, totaling $50.0 million during the second quarter of 2021. On March 10, 2020, the Company entered into a Rule 10b5-1 plan to repurchase $25.0 million of common stock and the Company repurchased 663,602 shares of its common stock at an average price of $37.65, totaling $25.0 million in March 2020. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Oct. 02, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Legal Proceedings From time to time and in the ordinary course of business, the Company is subject to various claims, charges and litigation. The outcome of litigation cannot be predicted with certainty and some lawsuits, claims or proceedings may be disposed of unfavorably to us, which could materially affect our financial condition or results of operations. Guarantees and Indemnification Obligations The Company enters into standard indemnification agreements in the ordinary course of business. Pursuant to these agreements, the Company indemnifies and agrees to reimburse the indemnified party for losses incurred by the indemnified party, generally the Company’s customers, in connection with any patent, copyright, trade secret or other proprietary right infringement claim by any third party. The term of these indemnification agreements is generally perpetual any time after execution of the agreement. The maximum potential amount of future payments the Company could be required to make under these indemnification agreements is unlimited. The Company has never incurred costs to defend lawsuits or settle claims related to these indemnification agreements . As a result, the Company believes the estimated fair value of these agreements is minimal. Accordingly, the Company has no liabilities recorded for these agreements as of October 2, 2021 and January 2, 2021, respectively. Warranty The Company provides warranties on most products and has established a reserve for warranty obligations based on estimated warranty costs. The reserve is included as part of accrued expenses (Note 6) in the accompanying consolidated balance sheets. Activity related to the warranty accrual was as follows (in thousands): Three Months Ended Nine Months Ended October 2, 2021 September 26, 2020 October 2, 2021 September 26, 2020 Balance at beginning of period $ 24,718 $ 13,769 $ 24,392 $ 13,856 Provision 10,913 5,525 31,334 13,395 Warranty usage (7,570) (4,633) (27,665) (12,590) Balance at end of period $ 28,061 $ 14,661 $ 28,061 $ 14,661 |
Income Taxes (Notes)
Income Taxes (Notes) | 9 Months Ended |
Oct. 02, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | Income Taxes The Company recorded an income tax expense of $9.9 million and $30.0 million for the three months ended October 2, 2021 and September 26, 2020, respectively. The $9.9 million income tax expense for the three months ended October 2, 2021 resulted in an effective income tax rate of 14.7%. The $30.0 million income tax expense for the three months ended September 26, 2020 resulted in an effective tax rate of 24.3%. The decrease in the effective income tax rate was primarily due to the greater impact of tax benefits, such as the research and development tax credit, on a lower pretax income base. The Company's 14.7% effective rate of income tax expense for the three months ended October 2, 2021 was lower than the federal statutory tax rate of 21% primarily because of the impact of tax benefit from foreign derived intangible income ("FDII") and research and development tax credits. The Company recorded an income tax expense of $8.1 million and $39.2 million for the nine months ended October 2, 2021 and September 26, 2020, respectively. The $8.1 million income tax expense for the nine months ended October 2, 2021 resulted in an effective tax rate of 11.5%. The $39.2 million income tax expense for the nine months ended September 26, 2020 resulted in an effective tax rate of 22.6%. The decrease in the effective income tax rate was primarily due to the recognition of discrete tax benefits related to stock-based compensation as well as the greater impact of tax benefits, such as the research and development income credit, on a lower pretax income base. The Company's effective income tax rate of 11.5% for the nine months ended October 2, 2021 differed from the federal statutory tax rate of 21% primarily due to the recognition of discrete tax benefits related to stock-based compensation as well as the impact of tax benefits from FDII and research and development tax credits. |
Industry Segment, Geographic In
Industry Segment, Geographic Information and Significant Customers | 9 Months Ended |
Oct. 02, 2021 | |
Segment Reporting [Abstract] | |
Industry Segment, Geographic Information and Significant Customers | Industry Segment, Geographic Information and Significant Customers The Company operates as one operating segment. The Company's consumer robots products are offered to consumers through a variety of distribution channels, including chain stores and other national retailers, through the Company's own website and app, dedicated e-commerce websites, the online arms of traditional retailers, and through value-added distributors and resellers worldwide. Significant Customers For each of the three months ended October 2, 2021 and September 26, 2020, the Company generated 26.6% of total revenue from one of its retailers. For the nine months ended October 2, 2021 and September 26, 2020, the Company generated 25.9% and 26.4% of total revenue, respectively, from one of its retailers. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Oct. 02, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation and Foreign Currency Translation The accompanying consolidated financial statements include those of iRobot and its subsidiaries, after elimination of all intercompany balances and transactions. iRobot has prepared the accompanying unaudited consolidated financial statements in conformity with accounting principles generally accepted in the United States of America ("GAAP"). In the opinion of management, all adjustments necessary to the unaudited interim consolidated financial statements have been made to state fairly the Company's financial position. Interim results are not necessarily indicative of results for the full fiscal year or any future periods. The information included in this Form 10-Q should be read in conjunction with the Company's audited consolidated financial statements and notes thereto included in its Annual Report on Form 10-K for the fiscal year ended January 2, 2021, filed with the Securities and Exchange Commission on February 16, 2021. |
Fiscal Period, Policy | The Company operates and reports using a 52-53 week fiscal year ending on the Saturday closest to December 31. Accordingly, the Company’s fiscal quarters end on the Saturday that falls closest to the last day of the third month of each quarter. |
Recent Accounting Pronouncements | Recently Adopted Accounting Standards In December 2019, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2019-12, "Income Taxes - Simplifying the Accounting for Income Taxes." The ASU simplifies the accounting for income taxes by removing certain exceptions to the general principles as well as clarifying and amending existing guidance to improve consistent application. The amendments to this ASU are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020, with early adoption permitted. Depending on the amendment, adoption may be applied on the retrospective, modified retrospective or prospective basis. The Company adopted the standard in the first quarter of 2021 and the adoption had no impact on the Company's consolidated financial statements. Recently Issued Accounting Standards From time to time, new accounting pronouncements are issued by FASB that are adopted by the Company as of the specified effective date. Unless otherwise discussed, the Company believes that recently issued standards, which are not yet effective, will not have a material impact on the Company’s consolidated financial statements upon adoption. |
Use of Estimates | Use of Estimates The preparation of these financial statements in conformity with GAAP requires the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities and revenue and expenses. These estimates and judgments include, but are not limited to, revenue recognition, including performance obligations, variable consideration and other obligations such as product returns and incentives; allowance for credit losses; product warranties; valuation of goodwill and acquired intangible assets; valuation of non-marketable equity investments; evaluating loss contingencies; accounting for stock-based compensation including performance-based assessments; and accounting for income taxes and related valuation allowances. The Company bases its estimates and assumptions on historical experience, market participant fair value considerations, projected future cash flows, current conditions, including estimated economic implications of the COVID-19 pandemic and various other factors that the Company believes are reasonable under the circumstances. While there was not a material change to the consolidated financial statements related to these estimates as of and for the nine months ended October 2, 2021, the Company's future assessment of the magnitude and duration of the COVID-19 pandemic as well as other factors, could result in material impacts to the Company's consolidated financial statements in future reporting periods.The extent and continued impact of COVID-19 has been taken into account by management in making the significant assumptions and estimates related to the above. Actual results may differ from the Company’s estimates. |
Credit Losses | Credit Losses The Company is exposed to credit losses primarily through sales of its products. The Company assesses each customer's ability to pay by conducting a credit review which includes consideration of established credit ratings or an internal assessment of the customer's creditworthiness based on an analysis of their financial information when a credit rating is not available. The Company monitors the credit exposure through active review of customer balances. The Company's expected loss methodology for accounts receivable is developed through consideration of factors including, but not limited to, historical collection experience, current customer credit ratings, current and future economic and market conditions and age of the receivable. Although the Company historically has not experienced significant credit losses as it relates to trade accounts receivable, the COVID-19 pandemic has caused uncertainty in some customer accounts. The Company did not have an adjustment to its estimate of credit losses during the three months ended October 2, 2021. The Company recorded a decrease to the reserve and bad debt expense of $2.1 million during the nine months ended October 2, 2021. As of October 2, 2021 and January 2, 2021, the Company had an allowance for credit losses of $2.7 million and $4.8 million, respectively. |
Inventory, Policy | Inventory Inventory is stated at the lower of cost or net realizable value with cost being determined using the first-in, first-out method. The Company writes down its inventory for estimated obsolescence or excess inventory based upon assumptions around market conditions and estimates of future demand. Adjustments to reduce inventory to net realizable value are recognized in cost of revenue and have not been significant for the periods presented. Inventory primarily consists of finished goods at October 2, 2021 and January 2, 2021. |
Investment, Policy [Policy Text Block] | Strategic Investments The Company holds non-marketable equity securities as part of its strategic investments portfolio. The Company classifies the majority of these securities as equity securities without readily determinable fair values and measures these investments at cost, less any impairment, adjusted for observable price changes. These investments are valued using significant unobservable inputs or data in an inactive market and the valuation requires the Company's judgment due to the absence of market prices and inherent lack of liquidity. The estimated fair value is based on quantitative and qualitative factors including, but not limited to, subsequent financing activities by the investee and projected discounted cash flows. At October 2, 2021 and January 2, 2021, the Company's equity securities without readily determinable fair values totaled $15.1 million and $17.4 million, respectively, and are included in other assets on the consolidated balance sheets. On July 1, 2020, Teladoc Health, Inc. ("Teladoc") closed on its previously announced acquisition of InTouch Health, of which the Company held non-marketable equity securities. In exchange for its shares of InTouch Health, the Company received 0.2 million shares of Teladoc and recorded a gain of $38.6 million to other income, net during the second quarter of 2020. The Teladoc shares received were subject to time based contractual sales restrictions which expired in January 2021. These shares were accounted for as marketable equity securities and measured at fair value with unrealized gains and losses recognized in other income, net at the end of each reporting period. As a result, the Company entered into an economic hedge in July 2020 to reduce the Company's exposure to stock price fluctuations during the restricted period. During the first quarter of 2021, the Company received net proceeds of $51.5 million related to the sale of Teladoc shares with gross proceeds of $60.1 million, net of settlement payment of $8.6 million for the related economic hedge. On July 22, 2021, Matterport, Inc. ("Matterport"), of which the Company held non-marketable equity securities, completed a merger with a special purpose acquisition company and began trading on Nasdaq under the symbol "MTTR." Prior to the merger, the Company accounted for the shares in Matterport as equity securities without readily determinable fair value. Upon consummation of the merger, the Company received 1.6 million shares of MTTR and recorded a gain of $20.3 million to other income, net. The post merger Matterport shares received are subject to time based contractual sales restrictions which expire in January 2022. These shares are accounted for as marketable equity securities and measured at fair value with unrealized gains and losses recognized in other income, net at the end of each reporting period. During the three months ended October 2, 2021, the Company recorded gains of $6.7 million associated with marking the shares to fair value. As of October 2, 2021, the shares in MTTR were valued at $29.8 million and are recorded in short term investments on the consolidated balance sheet. |
Net Income Per Share | Net Income Per Share Basic income per share is calculated using the Company's weighted-average outstanding common shares. Diluted income per share is calculated using the Company's weighted-average outstanding common shares including the dilutive effect of stock awards as determined under the treasury stock method. The following table presents the calculation of both basic and diluted net income per share (in thousands, except per share amounts): Three Months Ended Nine Months Ended October 2, 2021 September 26, 2020 October 2, 2021 September 26, 2020 Net income $ 57,216 $ 93,252 $ 61,901 $ 133,733 Basic weighted-average common shares outstanding 27,413 28,031 27,923 28,084 Dilutive effect of employee stock awards 390 508 552 418 Diluted weighted-average common shares outstanding 27,803 28,539 28,475 28,502 Net income per share - Basic $ 2.09 $ 3.33 $ 2.22 $ 4.76 Net income per share - Diluted $ 2.06 $ 3.27 $ 2.17 $ 4.69 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Oct. 02, 2021 | |
Accounting Policies [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table presents the calculation of both basic and diluted net income per share (in thousands, except per share amounts): Three Months Ended Nine Months Ended October 2, 2021 September 26, 2020 October 2, 2021 September 26, 2020 Net income $ 57,216 $ 93,252 $ 61,901 $ 133,733 Basic weighted-average common shares outstanding 27,413 28,031 27,923 28,084 Dilutive effect of employee stock awards 390 508 552 418 Diluted weighted-average common shares outstanding 27,803 28,539 28,475 28,502 Net income per share - Basic $ 2.09 $ 3.33 $ 2.22 $ 4.76 Net income per share - Diluted $ 2.06 $ 3.27 $ 2.17 $ 4.69 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 9 Months Ended |
Oct. 02, 2021 | |
Revenue Recognition and Deferred Revenue [Abstract] | |
Disaggregation of Revenue [Table Text Block] | Disaggregation of Revenue The following table provides information about disaggregated revenue by geographical region (in thousands): Three Months Ended Nine Months Ended October 2, 2021 September 26, 2020 October 2, 2021 September 26, 2020 United States $ 216,542 $ 206,276 $ 528,138 $ 428,389 EMEA 132,130 114,477 339,918 252,184 Japan 66,823 65,490 154,652 136,215 Other 25,187 26,902 86,831 68,775 Total revenue $ 440,682 $ 413,145 $ 1,109,539 $ 885,563 |
Contract with Customer, Asset and Liability [Table Text Block] | Contract Balances The following table provides information about receivables and contract liabilities from contracts with customers (in thousands): October 2, 2021 January 2, 2021 Accounts receivable, net $ 240,722 $ 170,526 Contract liabilities 21,001 17,700 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Oct. 02, 2021 | |
Leases [Abstract] | |
Lease, Cost [Table Text Block] | The components of lease expense were as follows (in thousands): Three Months Ended Nine Months Ended October 2, 2021 September 26, 2020 October 2, 2021 September 26, 2020 Operating lease cost $ 2,181 $ 2,287 $ 6,315 $ 6,932 Variable lease cost 837 823 2,765 2,827 Total lease cost $ 3,018 $ 3,110 $ 9,080 $ 9,759 |
Schedule of Leases, Supplemental Cash Flow [Table Text Block] | Supplemental cash flow information related to leases was as follows (in thousands): Three Months Ended Nine Months Ended October 2, 2021 September 26, 2020 October 2, 2021 September 26, 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 2,150 $ 2,750 $ 6,529 $ 7,516 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ — $ 744 $ — $ 2,310 |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | Maturities of operating lease liabilities were as follows as of October 2, 2021 (in thousands): Remainder of 2021 $ 1,598 2022 8,561 2023 7,627 2024 6,571 2025 6,600 Thereafter 28,525 Total minimum lease payments $ 59,482 Less: imputed interest 7,985 Present value of future minimum lease payments $ 51,497 Less: current portion of operating lease liabilities (Note 6) 6,291 Long-term lease liabilities $ 45,206 |
Goodwill, Other Intangible As_2
Goodwill, Other Intangible Assets and Other Assets (Tables) | 9 Months Ended |
Oct. 02, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill [Table Text Block] | The following table summarizes the activity in the carrying amount of goodwill and intangible assets for the nine months ended October 2, 2021 (in thousands): Goodwill Intangible assets Balance as of January 2, 2021 $ 125,872 $ 9,902 Amortization — (1,336) Effect of foreign currency translation (3,963) (218) Balance as of October 2, 2021 $ 121,909 $ 8,348 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 9 Months Ended |
Oct. 02, 2021 | |
Accrued Liabilities, Current [Abstract] | |
Components of Accrued Expenses | October 2, 2021 January 2, 2021 Accrued manufacturing and logistics cost $ 28,967 $ 20,093 Accrued warranty 28,061 24,392 Accrued compensation and benefits 17,471 17,635 Accrued income taxes 10,777 3,806 Accrued bonus 8,617 31,523 Current portion of operating lease liabilities 6,291 6,315 Accrued sales and other indirect taxes payable 5,343 15,480 Derivative liability 3,799 4,268 Accrued other 21,632 7,876 $ 130,958 $ 131,388 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 9 Months Ended |
Oct. 02, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments [Table Text Block] | The fair values of derivative instruments are as follows (in thousands): Fair Value Classification October 2, 2021 January 2, 2021 Derivatives not designated as hedging instruments: Foreign currency forward contracts Other current assets $ 5,658 $ 261 Foreign currency forward contracts Other assets 2,931 — Foreign currency forward contracts Accrued expenses 3,171 2,176 Forward sale contract Other current assets — 3,904 Derivatives designated as cash flow hedges: Foreign currency forward contracts Other current assets $ 3,258 $ 362 Foreign currency forward contracts Other assets 5,639 679 Foreign currency forward contracts Accrued expenses 628 2,092 Foreign currency forward contracts Long-term liabilities 591 8,554 |
Derivative Instruments, Gain (Loss) [Table Text Block] | Losses associated with derivative instruments not designated as hedging instruments are as follows (in thousands): Three Months Ended Nine Months Ended Classification October 2, 2021 September 26, 2020 October 2, 2021 September 26, 2020 Loss recognized in income Other income, net $ (1,606) $ (2,232) $ (11,229) $ (3,475) Gain recognized in earnings on cash flow hedging instruments Three Months Ended Nine Months Ended October 2, 2021 September 26, 2020 October 2, 2021 September 26, 2020 Revenue Revenue Consolidated statements of operations in which the effects of cash flow hedging instruments are recorded $ 440,682 $ 413,145 $ 1,109,539 $ 885,563 Gain on cash flow hedging relationships: Foreign currency forward contracts: Amount of gain reclassified from AOCI into earnings $ 1,161 $ 993 $ 1,878 $ 4,711 |
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) [Table Text Block] | The following tables reflect the effect of derivatives designated as cash flow hedging (in thousands): Gain (loss) recognized in OCI on Derivative (1) Three Months Ended Nine Months Ended October 2, 2021 September 26, 2020 October 2, 2021 September 26, 2020 Foreign currency forward contracts $ 6,851 $ (11,230) $ 23,959 $ (7,177) (1) The amount represents the change in fair value of derivative contracts due to changes in spot rates. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Oct. 02, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of Financial Assets and Liabilities Measured at Fair Value | The Company’s financial assets and liabilities measured at fair value on a recurring basis were as follows (in thousands): Fair Value Measurements as of Level 1 Level 2 (1) Level 3 Assets: Money market funds $ 95,501 $ — $ — Marketable equity securities, $23,286 at cost (2) 29,909 — — Derivative instruments (Note 7) — 17,486 — Total assets measured at fair value $ 125,410 $ 17,486 $ — Liabilities: Derivative instruments (Note 7) $ — $ 4,390 $ — Total liabilities measured at fair value $ — $ 4,390 $ — Fair Value Measurements as of Level 1 Level 2 (1) Level 3 Assets: Money market funds $ 47,529 $ — $ — Marketable equity securities, $46,578 at cost 47,576 — — Corporate and government bonds, $3,498 at cost — 3,505 — Derivative instruments (Note 7) — 5,206 — Total assets measured at fair value $ 95,105 $ 8,711 $ — Liabilities: Derivative instruments (Note 7) $ — $ 12,822 $ — Total liabilities measured at fair value $ — $ 12,822 $ — (1) Level 2 fair value estimates are based on observable inputs other than quoted prices in active markets for identical assets and liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. (2) The related unrealized gain recorded in other income, net was $6.6 million for the three months ended October 2, 2021. Marketable equity securities are included in short term investments on the consolidated balance sheet. |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Oct. 02, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Activity Related to the Warranty Accrual | Activity related to the warranty accrual was as follows (in thousands): Three Months Ended Nine Months Ended October 2, 2021 September 26, 2020 October 2, 2021 September 26, 2020 Balance at beginning of period $ 24,718 $ 13,769 $ 24,392 $ 13,856 Provision 10,913 5,525 31,334 13,395 Warranty usage (7,570) (4,633) (27,665) (12,590) Balance at end of period $ 28,061 $ 14,661 $ 28,061 $ 14,661 |
Industry Segment, Geographic _2
Industry Segment, Geographic Information and Significant Customers (Tables) | 9 Months Ended |
Oct. 02, 2021 | |
Segment Reporting [Abstract] | |
Segment Information about Revenue, Cost of Revenue, Gross Margin and Income before Income Taxes | The Company operates as one operating segment. |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies Credit Losses (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |
Oct. 02, 2021 | Oct. 02, 2021 | Jan. 02, 2021 | |
Credit Loss [Abstract] | |||
Financing Receivable, Allowance for Credit Loss, Period Increase (Decrease) | $ 0 | $ 2.1 | |
Financing Receivable, Allowance for Credit Loss | $ 2.7 | $ 2.7 | $ 4.8 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies Other Assets (Details) - USD ($) $ in Thousands, shares in Millions | Jul. 22, 2021 | Jul. 01, 2020 | Oct. 02, 2021 | Apr. 03, 2021 | Jan. 02, 2021 |
Debt and Equity Securities, FV-NI [Line Items] | |||||
Equity Securities without Readily Determinable Fair Value, Amount | $ 15,100 | $ 17,400 | |||
Short term investments | 29,909 | $ 51,081 | |||
Teladoc | |||||
Debt and Equity Securities, FV-NI [Line Items] | |||||
Equity securities received, restricted | 0.2 | ||||
Gain on sale of equity investments | $ 38,600 | ||||
Payments for (proceeds from) short-term investments | $ 51,500 | ||||
Proceeds from sale of short-term investments | 60,100 | ||||
Payments to Acquire Short-term Investments | $ 8,600 | ||||
Matterport | |||||
Debt and Equity Securities, FV-NI [Line Items] | |||||
Equity securities received, restricted | 1.6 | ||||
Gain from equity securities | $ 20,300 | 6,700 | |||
Short term investments | $ 29,800 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Basic and Diluted Net Income Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 02, 2021 | Sep. 26, 2020 | Oct. 02, 2021 | Sep. 26, 2020 | |
Schedule Of Computation Of Basic And Diluted Earnings Per Common Share [Line Items] | ||||
Document Period End Date | Oct. 2, 2021 | |||
Net income | $ 57,216 | $ 93,252 | $ 61,901 | $ 133,733 |
Weighted-average shares outstanding | 27,413 | 28,031 | 27,923 | 28,084 |
Dilutive effect of employee stock options and restricted shares | 390 | 508 | 552 | 418 |
Diluted weighted-average shares outstanding | 27,803 | 28,539 | 28,475 | 28,502 |
Basic income per share | $ 2.09 | $ 3.33 | $ 2.22 | $ 4.76 |
Diluted income per share | $ 2.06 | $ 3.27 | $ 2.17 | $ 4.69 |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 200 | 100 | 100 | 200 |
Revenue Recognition Significant
Revenue Recognition Significant Judgments (Details) - USD ($) $ in Millions | Oct. 02, 2021 | Jan. 02, 2021 |
Revenue Recognition and Deferred Revenue [Abstract] | ||
Revenue, Remaining Performance Obligation, Amount | $ 17.8 | $ 11.5 |
Refund liability, product returns | 54.9 | 64.3 |
Refund liability, other credits and incentives | $ 75.3 | $ 142.2 |
Revenue Recognition Disaggregat
Revenue Recognition Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 02, 2021 | Sep. 26, 2020 | Oct. 02, 2021 | Sep. 26, 2020 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 440,682 | $ 413,145 | $ 1,109,539 | $ 885,563 |
UNITED STATES | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 216,542 | 206,276 | 528,138 | 428,389 |
EMEA [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 132,130 | 114,477 | 339,918 | 252,184 |
JAPAN | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 66,823 | 65,490 | 154,652 | 136,215 |
All Other Regions [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 25,187 | $ 26,902 | $ 86,831 | $ 68,775 |
Revenue Recognition Contract Ba
Revenue Recognition Contract Balances (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Oct. 02, 2021 | Sep. 26, 2020 | Oct. 02, 2021 | Sep. 26, 2020 | Jan. 02, 2021 | |
Revenue Recognition and Deferred Revenue [Abstract] | |||||
Revenue, Remaining Performance Obligation, Amount | $ 17,800 | $ 17,800 | $ 11,500 | ||
Accounts Receivable, after Allowance for Credit Loss, Current | 240,722 | 240,722 | 170,526 | ||
Contract with Customer, Liability, Revenue Recognized | 6,600 | $ 1,800 | 10,500 | $ 4,600 | |
Contract with Customer, Liability | $ 21,001 | $ 21,001 | $ 17,700 |
Leases Lease Cost (Details)
Leases Lease Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 02, 2021 | Sep. 26, 2020 | Oct. 02, 2021 | Sep. 26, 2020 | |
Leases [Abstract] | ||||
Operating Lease, Weighted Average Discount Rate, Percent | 3.58% | 3.58% | ||
Operating Lease, Cost | $ 2,181 | $ 2,287 | $ 6,315 | $ 6,932 |
Variable Lease, Cost | 837 | 823 | 2,765 | 2,827 |
Lease, Cost | $ 3,018 | $ 3,110 | $ 9,080 | $ 9,759 |
Operating Lease, Weighted Average Remaining Lease Term | 7 years 9 months 14 days | 7 years 9 months 14 days |
Leases Supplemental Cash Flow (
Leases Supplemental Cash Flow (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 02, 2021 | Sep. 26, 2020 | Oct. 02, 2021 | Sep. 26, 2020 | |
Leases [Abstract] | ||||
Document Period End Date | Oct. 2, 2021 | |||
Operating Lease, Payments | $ 2,150 | $ 2,750 | $ 6,529 | $ 7,516 |
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | $ 0 | $ 744 | $ 0 | $ 2,310 |
Leases Maturity of Operating Le
Leases Maturity of Operating Lease LIability (Details) - USD ($) $ in Thousands | Oct. 02, 2021 | Jan. 02, 2021 |
Leases [Abstract] | ||
Remainder of 2021 | $ 1,598 | |
2022 | 8,561 | |
2023 | 7,627 | |
2024 | 6,571 | |
2025 | 6,600 | |
Thereafter | 28,525 | |
Total minimum lease payments | 59,482 | |
Less: imputed interest | 7,985 | |
Present value of future minimum lease payments | 51,497 | |
Current portion of operating lease liabilities | 6,291 | $ 6,315 |
Long-term lease liabilities | $ 45,206 | $ 50,485 |
Leases Financial Statement Impa
Leases Financial Statement Impact of Adopting ASC 842 (Details) - USD ($) $ in Thousands | Oct. 02, 2021 | Jan. 02, 2021 |
Leases [Abstract] | ||
Operating lease right-of-use asset | $ 39,096 | $ 43,682 |
Present value of future minimum lease payments | $ 51,497 |
Goodwill, Other Intangible As_3
Goodwill, Other Intangible Assets and Other Assets Schedule of goodwill (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Oct. 02, 2021 | Oct. 02, 2021 | |
Goodwill | ||
Balance as of January 2, 2021 | $ 125,872 | |
Effect of foreign currency translation | (3,963) | |
Balance as of October 2, 2021 | $ 121,909 | 121,909 |
Intangible assets | ||
Balance as of January 2, 2021 | 9,902 | |
Amortization | (1,336) | |
Effect of foreign currency translation | (218) | |
Balance as of October 2, 2021 | $ 8,348 | $ 8,348 |
Accrued Expenses (Details)
Accrued Expenses (Details) - USD ($) $ in Thousands | Oct. 02, 2021 | Jan. 02, 2021 |
Accounts Payable, Current [Abstract] | ||
Accrued manufacturing and logistics cost | $ 28,967 | $ 20,093 |
Accrued warranty | 28,061 | 24,392 |
Accrued compensation and benefits | 17,471 | 17,635 |
Accrued income taxes | 10,777 | 3,806 |
Accrued bonus | 8,617 | 31,523 |
Current portion of operating lease liabilities | 6,291 | 6,315 |
Accrued sales and other indirect taxes payable | 5,343 | 15,480 |
Derivative liability | 3,799 | 4,268 |
Accrued other | 21,632 | 7,876 |
Accrued expenses | $ 130,958 | $ 131,388 |
Derivative Instruments Schedule
Derivative Instruments Schedule of Derivative Instruments (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Oct. 02, 2021 | Jan. 02, 2021 | |
Designated as Hedging Instrument [Member] | ||
Derivative [Line Items] | ||
Derivative, Term of Contract | 3 years | |
Derivative, Notional Amount | $ 381,500 | $ 431,900 |
Not Designated as Hedging Instrument [Member] | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | 299,100 | 192,200 |
Not Designated as Hedging Instrument [Member] | Equity Securities | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | 51,500 | |
Not Designated as Hedging Instrument [Member] | Accrued Liabilities [Member] | Foreign Exchange Forward [Member] | ||
Derivative [Line Items] | ||
Derivative instruments (Note 7) | 3,171 | 2,176 |
Not Designated as Hedging Instrument [Member] | Other Current Assets [Member] | Foreign Exchange Forward [Member] | ||
Derivative [Line Items] | ||
Derivative instruments (Note 7) | 5,658 | 261 |
Not Designated as Hedging Instrument [Member] | Other Current Assets [Member] | Derivative, Forward Price | ||
Derivative [Line Items] | ||
Derivative instruments (Note 7) | 0 | 3,904 |
Not Designated as Hedging Instrument [Member] | Other Noncurrent Assets [Member] | Foreign Exchange Forward [Member] | ||
Derivative [Line Items] | ||
Derivative instruments (Note 7) | 2,931 | 0 |
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Accrued Liabilities [Member] | Foreign Exchange Forward [Member] | ||
Derivative [Line Items] | ||
Derivative instruments (Note 7) | 628 | 2,092 |
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Other Noncurrent Liabilities [Member] | Foreign Exchange Forward [Member] | ||
Derivative [Line Items] | ||
Derivative instruments (Note 7) | 591 | 8,554 |
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Other Current Assets [Member] | Foreign Exchange Forward [Member] | ||
Derivative [Line Items] | ||
Derivative instruments (Note 7) | 3,258 | 362 |
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Other Noncurrent Assets [Member] | Foreign Exchange Forward [Member] | ||
Derivative [Line Items] | ||
Derivative instruments (Note 7) | $ 5,639 | $ 679 |
Derivative Instruments (Details
Derivative Instruments (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Oct. 02, 2021 | Sep. 26, 2020 | Oct. 02, 2021 | Sep. 26, 2020 | ||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Revenue | $ 440,682 | $ 413,145 | $ 1,109,539 | $ 885,563 | |
Foreign Exchange Forward [Member] | Cash Flow Hedging [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gain (loss) recognized in OCI on Derivative | [1] | 6,851 | (11,230) | 23,959 | (7,177) |
Other Nonoperating Income (Expense) [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | (1,606) | (2,232) | (11,229) | (3,475) | |
Sales [Member] | Foreign Exchange Forward [Member] | Cash Flow Hedging [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | $ 1,161 | $ 993 | $ 1,878 | $ 4,711 | |
[1] | The amount represents the change in fair value of derivative contracts due to changes in spot rates. |
Fair Value Measurements Fair Va
Fair Value Measurements Fair Value on a Recurring Basis (Details) - USD ($) | 9 Months Ended | |||
Oct. 02, 2021 | Jan. 02, 2021 | |||
Liabilities: | ||||
Unrealized gain on marketable equity securities | $ 6,600,000 | |||
Equity Securities | ||||
Assets: | ||||
Equity Securities, FV-NI, Cost | 23,286 | $ 46,578 | ||
Bonds | ||||
Assets: | ||||
Debt Securities, Available-for-sale, Amortized Cost | 3,498 | |||
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||||
Assets: | ||||
Total assets measured at fair value | 125,410,000 | 95,105,000 | ||
Liabilities: | ||||
Total liabilities measured at fair value | 0 | 0 | ||
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Equity Securities | ||||
Assets: | ||||
Fair value of securities | 29,909,000 | [1] | 47,576,000 | |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Bonds | ||||
Assets: | ||||
Corporate and government bonds, $3,498 at cost | 0 | |||
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Derivative Instrument | ||||
Assets: | ||||
Derivative instruments (Note 7) | 0 | 0 | ||
Liabilities: | ||||
Derivative instruments (Note 7) | 0 | 0 | ||
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Money Market Funds | ||||
Assets: | ||||
Money market funds | 95,501,000 | 47,529,000 | ||
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Assets: | ||||
Total assets measured at fair value | [2] | 17,486,000 | 8,711,000 | |
Liabilities: | ||||
Total liabilities measured at fair value | [2] | 4,390,000 | 12,822,000 | |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Equity Securities | ||||
Assets: | ||||
Fair value of securities | [2] | 0 | [1] | 0 |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Bonds | ||||
Assets: | ||||
Corporate and government bonds, $3,498 at cost | [2] | 3,505,000 | ||
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Derivative Instrument | ||||
Assets: | ||||
Derivative instruments (Note 7) | [2] | 17,486,000 | 5,206,000 | |
Liabilities: | ||||
Derivative instruments (Note 7) | [2] | 4,390,000 | 12,822,000 | |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Money Market Funds | ||||
Assets: | ||||
Money market funds | [2] | 0 | 0 | |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||||
Assets: | ||||
Total assets measured at fair value | 0 | 0 | ||
Liabilities: | ||||
Total liabilities measured at fair value | 0 | 0 | ||
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Equity Securities | ||||
Assets: | ||||
Fair value of securities | 0 | [1] | 0 | |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Bonds | ||||
Assets: | ||||
Corporate and government bonds, $3,498 at cost | 0 | |||
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Derivative Instrument | ||||
Assets: | ||||
Derivative instruments (Note 7) | 0 | 0 | ||
Liabilities: | ||||
Derivative instruments (Note 7) | 0 | 0 | ||
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Money Market Funds | ||||
Assets: | ||||
Money market funds | $ 0 | $ 0 | ||
[1] | The related unrealized gain recorded in other income, net was $6.6 million for the three months ended October 2, 2021. Marketable equity securities are included in short term investments on the consolidated balance sheet. | |||
[2] | Level 2 fair value estimates are based on observable inputs other than quoted prices in active markets for identical assets and liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. |
Stockholders Equity (Details)
Stockholders Equity (Details) - USD ($) $ / shares in Units, $ in Thousands | Aug. 02, 2021 | Mar. 11, 2021 | Mar. 10, 2020 | Sep. 30, 2021 | Mar. 31, 2020 | Oct. 02, 2021 | Jul. 03, 2021 | Oct. 02, 2021 | Sep. 26, 2020 | Feb. 27, 2018 |
Equity [Abstract] | ||||||||||
Authorized amount | $ 100,000 | $ 50,000 | $ 25,000 | $ 200,000 | ||||||
Remaining authorized amount | $ 25,000 | $ 25,000 | ||||||||
Stock repurchased and retired during period (in shares) | 943,285 | 446,954 | 663,602 | 1,198,218 | 1,645,000 | 664,000 | ||||
Additional shares delivered (in shares) | 254,933 | |||||||||
Average cost per share (in dollars per share) | $ 111.85 | $ 37.65 | $ 83.46 | |||||||
Value of stock repurchased | $ 25,000 | $ 100,000 | $ 50,000 | $ 150,000 | $ 25,000 | |||||
Payments for repurchase | $ 150,000 | $ 25,000 |
Commitments and Contingencies -
Commitments and Contingencies - Activity Related to Warranty Accrual (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 02, 2021 | Sep. 26, 2020 | Oct. 02, 2021 | Sep. 26, 2020 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||||
Balance at beginning of period | $ 24,718 | $ 13,769 | $ 24,392 | $ 13,856 |
Provision | 10,913 | 5,525 | 31,334 | 13,395 |
Warranty usage | (7,570) | (4,633) | (27,665) | (12,590) |
Balance at end of period | $ 28,061 | $ 14,661 | $ 28,061 | $ 14,661 |
Income Taxes (Details)
Income Taxes (Details) | 3 Months Ended | 9 Months Ended | ||
Oct. 02, 2021 | Sep. 26, 2020 | Oct. 02, 2021 | Sep. 26, 2020 | |
Income Tax Disclosure [Abstract] | ||||
Effective Income Tax Rate Reconciliation, Percent | 14.70% | 24.30% | 11.50% | 22.60% |
Industry Segment, Geographic _3
Industry Segment, Geographic Information and Significant Customers - Segment Information about Revenue, Cost of Revenue, Gross Margin and Income before Income Taxes (Detail) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 02, 2021USD ($) | Sep. 26, 2020USD ($) | Oct. 02, 2021USD ($)segment | Sep. 26, 2020USD ($) | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Number of Reportable Segments | segment | 1 | |||
Total cost of revenue | $ 277,928 | $ 214,304 | $ 684,865 | $ 430,755 |
Gross profit | 162,754 | 198,841 | 424,674 | 454,808 |
Research and development | 40,262 | 38,613 | 120,859 | 111,929 |
Selling and marketing | 59,055 | 50,488 | 186,722 | 136,144 |
General and administrative | 22,688 | 28,490 | 72,587 | 74,919 |
Other income, net | $ 26,585 | $ 42,240 | $ 26,139 | $ 41,837 |
Industry Segment, Geographic _4
Industry Segment, Geographic Information and Significant Customers - Additional Information (Detail) - segment | 3 Months Ended | 9 Months Ended | ||
Oct. 02, 2021 | Sep. 26, 2020 | Oct. 02, 2021 | Sep. 26, 2020 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Number of Reportable Segments | 1 | |||
Revenue Benchmark [Member] | Retail Customer | Customer Concentration Risk [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Concentration Risk, Percentage | 26.60% | 26.60% | 25.90% | 26.40% |