Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Jan. 03, 2020 | Feb. 20, 2020 | Jun. 28, 2019 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Jan. 3, 2020 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | STAAR SURGICAL CO | ||
Entity Central Index Key | 0000718937 | ||
Current Fiscal Year End Date | --01-03 | ||
Entity Filer Category | Large Accelerated Filer | ||
Trading Symbol | STAA | ||
Entity Common Stock, Shares Outstanding | 44,962,983 | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | false | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Shell Company | false | ||
Entity Public Float | $ 1,308,394,773 | ||
Entity File Number | 0-11634 | ||
Entity Tax Identification Number | 95-3797439 | ||
Entity Address, Address Line One | 25651 Atlantic Ocean Drive | ||
Entity Address, City or Town | Lake Forest | ||
Entity Address, State or Province | CA | ||
Entity Address, Postal Zip Code | 92630 | ||
City Area Code | 626 | ||
Local Phone Number | 303-7902 | ||
Entity Interactive Data Current | Yes | ||
Entity Incorporation, State or Country Code | DE | ||
Title of 12(b) Security | Common | ||
Security Exchange Name | NASDAQ | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Documents Incorporated by Reference | Portions of the registrant’s definitive proxy statement relating to its 2020 annual meeting of stockholders, which will be filed with the Securities and Exchange Commission pursuant to Regulation 14A within 120 days of the close of the registrant’s last fiscal year, are incorporated by reference into Part III of this report. |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Jan. 03, 2020 | Dec. 28, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 119,968,000 | $ 103,877,000 |
Accounts receivable trade, net | 30,996,000 | 25,946,000 |
Inventories, net | 17,142,000 | 16,704,000 |
Prepayments, deposits and other current assets | 6,560,000 | 5,045,000 |
Total current assets | 174,666,000 | 151,572,000 |
Property, plant and equipment, net | 17,065,000 | 11,451,000 |
Finance lease right-of-use assets, net | 1,867,000 | |
Operating lease right-of-use assets, net | 6,684,000 | |
Intangible assets, net | 296,000 | 243,000 |
Goodwill | 1,786,000 | 1,786,000 |
Deferred income taxes | 3,750,000 | 1,278,000 |
Other assets | 751,000 | 1,009,000 |
Total assets | 206,865,000 | 167,339,000 |
Current liabilities: | ||
Line of credit | 1,827,000 | 3,780,000 |
Accounts payable | 8,050,000 | 6,524,000 |
Obligations under finance leases | 560,000 | 1,098,000 |
Obligations under operating leases | 2,700,000 | |
Allowance for sales returns | 3,644,000 | 2,895,000 |
Other current liabilities | 17,697,000 | 13,431,000 |
Total current liabilities | 34,478,000 | 27,728,000 |
Obligations under finance leases | 366,000 | 459,000 |
Obligations under operating leases | 4,086,000 | |
Deferred income taxes | 1,022,000 | |
Asset retirement obligations | 211,000 | 206,000 |
Deferred rent | 188,000 | |
Pension liability | 7,840,000 | 5,310,000 |
Total liabilities | 46,981,000 | 34,913,000 |
Commitments and contingencies (Note 13) | ||
Stockholders’ equity: | ||
Common stock, $0.01 par value; 60,000 shares authorized: 44,822 and 44,195 shares issued and outstanding at January 3, 2020 and December 28, 2018, respectively | 448,000 | 442,000 |
Additional paid-in capital | 304,288,000 | 289,584,000 |
Accumulated other comprehensive loss | (3,048,000) | (1,320,000) |
Accumulated deficit | (141,804,000) | (156,280,000) |
Total stockholders’ equity | 159,884,000 | 132,426,000 |
Total liabilities and stockholders’ equity | $ 206,865,000 | $ 167,339,000 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jan. 03, 2020 | Dec. 28, 2018 |
Statement Of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 60,000,000 | 60,000,000 |
Common stock, shares issued | 44,822,000 | 44,195,000 |
Common stock, shares outstanding | 44,822,000 | 44,195,000 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands | 12 Months Ended | |||
Jan. 03, 2020 | Dec. 28, 2018 | Dec. 29, 2017 | ||
Income Statement [Abstract] | ||||
Net sales | $ 150,185,000 | $ 123,954,000 | $ 90,611,000 | |
Cost of sales | 38,231,000 | 32,444,000 | 26,331,000 | |
Gross profit | 111,954,000 | 91,510,000 | 64,280,000 | |
Selling, general and administrative expenses: | ||||
General and administrative | 29,313,000 | 24,287,000 | 19,465,000 | |
Marketing and selling | 45,491,000 | 38,600,000 | 28,402,000 | |
Research and development | 25,298,000 | 22,028,000 | 20,044,000 | |
Total selling, general and administrative expenses | 100,102,000 | 84,915,000 | 67,911,000 | |
Operating income (loss) | 11,852,000 | 6,595,000 | (3,631,000) | |
Other income (expense), net: | ||||
Interest income (expense), net | 988,000 | 165,000 | (112,000) | |
Gain (loss) on foreign currency transactions | [1] | (517,000) | (836,000) | 819,000 |
Royalty income | 551,000 | 633,000 | 581,000 | |
Other income, net | 152,000 | 82,000 | 47,000 | |
Total other income, net | 1,174,000 | 44,000 | 1,335,000 | |
Income (loss) before income taxes | 13,026,000 | 6,639,000 | (2,296,000) | |
Provision (benefit) for income taxes | (1,022,000) | 1,671,000 | (157,000) | |
Net income (loss) | $ 14,048,000 | $ 4,968,000 | $ (2,139,000) | |
Net income (loss) per share: | ||||
Basic | $ 0.32 | $ 0.12 | $ (0.05) | |
Diluted | $ 0.30 | $ 0.11 | $ (0.05) | |
Weighted average shares outstanding: | ||||
Basic | 44,493 | 42,587 | 41,004 | |
Diluted | 46,895 | 45,257 | 41,004 | |
[1] | Shown as a separate line item on the Consolidated Statements of Operations. |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 03, 2020 | Dec. 28, 2018 | Dec. 29, 2017 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Net income (loss) | $ 14,048 | $ 4,968 | $ (2,139) |
Defined benefit plans: | |||
Net change in plan assets | (2,265) | (498) | (485) |
Reclassification into other income (expense), net | 107 | 101 | 73 |
Foreign currency translation gain | 291 | 242 | 387 |
Tax effect | 139 | (15) | (75) |
Other comprehensive loss, net of tax | (1,728) | (170) | (100) |
Comprehensive income (loss) | $ 12,320 | $ 4,798 | $ (2,239) |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit |
Balance at Dec. 30, 2016 | $ 37,905 | $ 407 | $ 197,657 | $ (1,050) | $ (159,109) |
Balance (in shares) at Dec. 30, 2016 | 40,732 | ||||
Net income (loss) | (2,139) | (2,139) | |||
Other comprehensive loss | (100) | (100) | |||
Common stock issued upon exercise of options | 3,970 | $ 6 | 3,964 | ||
Common stock issued upon exercise of options (in shares) | 557 | ||||
Stock-based compensation | 3,533 | 3,533 | |||
Repurchase of employee common stock for taxes withheld | $ (234) | (234) | |||
Repurchase of employee common stock for taxes withheld (in shares) | (24) | ||||
Unvested restricted stock (in shares) | (21) | 21 | |||
Vested restricted stock | $ 1 | $ 1 | |||
Vested restricted stock (in shares) | 97 | ||||
Balance at Dec. 29, 2017 | 42,936 | $ 414 | 204,920 | (1,150) | (161,248) |
Balance (in shares) at Dec. 29, 2017 | 41,383 | ||||
Net income (loss) | 4,968 | 4,968 | |||
Other comprehensive loss | (170) | (170) | |||
Proceeds from public offering of stock | 72,150 | $ 20 | 72,130 | ||
Proceeds from public offering of stock (in shares) | 2,000 | ||||
Common stock issued upon exercise of options | 5,195 | $ 6 | 5,189 | ||
Common stock issued upon exercise of options (in shares) | 595 | ||||
Stock-based compensation | 7,399 | 7,399 | |||
Repurchase of employee common stock for taxes withheld | $ (54) | (54) | |||
Unvested restricted stock (in shares) | (11) | 11 | |||
Vested restricted stock | $ 2 | $ 2 | |||
Vested restricted stock (in shares) | 206 | ||||
Balance at Dec. 28, 2018 | 132,426 | $ 442 | 289,584 | (1,320) | (156,280) |
Balance (in shares) at Dec. 28, 2018 | 44,195 | ||||
Net income (loss) | 14,048 | 14,048 | |||
Impact of the adoption standard | Lease Accounting Standard | 113 | 113 | |||
Impact of the adoption standard | Nonemployee Share-Based Payment Standard | (315) | 315 | |||
Other comprehensive loss | (1,728) | (1,728) | |||
Common stock issued upon exercise of options | $ 3,459 | $ 4 | 3,455 | ||
Common stock issued upon exercise of options (in shares) | 388 | 387 | |||
Stock-based compensation | $ 11,564 | 11,564 | |||
Unvested restricted stock (in shares) | (11) | 11 | |||
Vested restricted stock | $ 2 | $ 2 | |||
Vested restricted stock (in shares) | 229 | ||||
Balance at Jan. 03, 2020 | $ 159,884 | $ 448 | $ 304,288 | $ (3,048) | $ (141,804) |
Balance (in shares) at Jan. 03, 2020 | 44,822 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | ||
Jan. 03, 2020 | Dec. 28, 2018 | Dec. 29, 2017 | |
Cash flows from operating activities: | |||
Net income (loss) | $ 14,048,000 | $ 4,968,000 | $ (2,139,000) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Depreciation of property, plant, and equipment | 3,665,000 | 2,430,000 | 3,133,000 |
Amortization of intangibles | 34,000 | 34,000 | 221,000 |
Deferred income taxes | (3,481,000) | 441,000 | (547,000) |
Change in net pension liability | 359,000 | 231,000 | 186,000 |
Loss on disposal of property and equipment | 14,000 | 10,000 | 623,000 |
Stock-based compensation expense | 10,547,000 | 6,762,000 | 3,161,000 |
Provision for sales returns and bad debts | 275,000 | 905,000 | 463,000 |
Inventory provision | 1,580,000 | 1,473,000 | 1,739,000 |
Changes in working capital: | |||
Accounts receivable | (4,502,000) | (6,040,000) | (1,857,000) |
Inventories | (950,000) | (4,194,000) | 312,000 |
Prepayments, deposits, and other current assets | (1,313,000) | (598,000) | (64,000) |
Accounts payable | 1,084,000 | 243,000 | (2,501,000) |
Other current liabilities | 4,435,000 | 6,102,000 | 123,000 |
Net cash provided by operating activities | 25,795,000 | 12,767,000 | 2,853,000 |
Cash flows from investing activities: | |||
Acquisition of property and equipment | (10,095,000) | (2,245,000) | (1,046,000) |
Acquisition of patents and licenses | (83,000) | ||
Net cash used in investing activities | (10,178,000) | (2,245,000) | (1,046,000) |
Cash flows from financing activities: | |||
Proceeds from public offering of stock | 72,150,000 | ||
Repayment of finance lease obligations | (1,294,000) | (1,907,000) | (1,300,000) |
Repayment on line of credit | (2,018,000) | (747,000) | |
Repurchase of employee common stock for taxes withheld | (54,000) | (234,000) | |
Proceeds from the exercise of stock options | 3,459,000 | 5,195,000 | 3,970,000 |
Proceeds from vested restricted stock | 2,000 | 2,000 | 1,000 |
Net cash provided by financing activities | 149,000 | 74,639,000 | 2,437,000 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 203,000 | 197,000 | 279,000 |
Increase in cash, cash equivalents and restricted cash | 15,969,000 | 85,358,000 | 4,523,000 |
Cash, cash equivalents and restricted cash, at beginning of year | 103,999,000 | 18,641,000 | 14,118,000 |
Cash, cash equivalents and restricted cash, at end of year | $ 119,968,000 | $ 103,999,000 | $ 18,641,000 |
Organization and Description of
Organization and Description of Business and Accounting Policies | 12 Months Ended |
Jan. 03, 2020 | |
Accounting Policies [Abstract] | |
Organization and Description of Business and Accounting Policies | Note 1 — Organization and Description of Business STAAR Surgical Company and subsidiaries (the “Company”), a Delaware corporation, was first incorporated in 1982 for the purpose of developing, producing, and marketing implantable lenses for the eye and delivery systems used to deliver the lenses into the eye. Principal products are implantable Collamer lenses (“ICLs”) and intraocular lenses (“IOLs”). ICLs, consisting of the Company’s ICL family of products, including the Toric implantable Collamer lenses (“TICL”) and EVO+ Visian ICL, are intraocular lenses used to correct refractive conditions such as myopia (near-sightedness), hyperopia (far-sightedness) and astigmatism. IOLs are prosthetic intraocular lenses used to restore vision that has been adversely affected by cataracts, and include the Company’s lines of silicone IOLs and the Preloaded Injector (a silicone or acrylic IOL preloaded into a single-use disposable injector). As of January 3, 2020, the Company’s significant subsidiaries consisted of: • STAAR Surgical AG, a wholly owned subsidiary formed in Switzerland that markets and distributes ICLs and Preloaded IOLs. • STAAR Japan, a wholly owned subsidiary that markets and distributes Preloaded IOLs and ICLs. The Company operates as one operating segment, the ophthalmic surgical market, for financial reporting purposes (see Note 17). Principles of Consolidation The accompanying consolidated financial statements include the accounts of STAAR Surgical Company and its wholly-owned subsidiaries and have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). All significant intercompany balances and transactions have been eliminated. Certain reclassifications have been made to financial statements of prior years to conform to the current year presentation (see Note 20). Fiscal Year and Interim Reporting Periods The Company’s fiscal year ends on the Friday nearest December 31 and each of the Company’s quarterly reporting periods generally consists of 13 weeks. Fiscal year 2019 is based on a 53-week period and fiscal years 2018 and 2017 are based on a 52-week period. Foreign Currency The functional currency of the Company’s Japanese subsidiary, STAAR Japan, Inc., is the Japanese yen. The functional currency of the Company’s Swiss subsidiary, STAAR Surgical AG, is the U.S. dollar. Assets and liabilities of the Company’s Japanese subsidiary are translated at rates of exchange in effect at the close of the period. Sales and expenses are translated at the weighted average of exchange rates in effect during the period. Net foreign translation gain (loss) was as follows (in thousands): Years Ended 2019 2018 2017 Foreign currency translation gain (1) $ 291 $ 242 $ 387 Gain (loss) on foreign currency transactions (2) (517 ) (836 ) 819 (1) (2) Note 1 — Organization and Description of Business and Accounting Policies (Continued) Use of Estimates The consolidated financial statements have been prepared in conformity with GAAP and, as such, include amounts based on significant estimates and judgments of management with consideration given to materiality. Significant estimates used include determining valuation allowances for uncollectible trade receivables, sales returns reserves, obsolete and excess inventory reserves, deferred income taxes, and tax reserves, including valuation allowances for deferred tax assets, pension liabilities, evaluation of asset impairment, in determining the useful life of depreciable and definite-lived intangible assets, and in the variables and assumptions used to calculate and record stock-based compensation. Actual results could differ materially from those estimates. Cash and Cash Equivalents and Restricted Cash The Company considers all highly liquid investments purchased with a maturity of three months or less to be cash equivalents. The Company maintains cash deposits with major banks which from time to time may exceed federally insured limits. The Company periodically assesses the financial condition of the institutions and believes that the risk of any loss is minimal. The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the Consolidated Balance Sheets that sum to the total of the same such amounts shown in the Consolidated Statements of Cash Flows at January 3, 2020, December 28, 2018 and December 29, 2017 (in thousands): 2019 2018 2017 Cash and cash equivalents $ 119,968 $ 103,877 $ 18,520 Restricted cash (1) — 122 121 Total cash, cash equivalents and restricted cash $ 119,968 $ 103,999 $ 18,641 (1) The Company had restricted cash set aside as collateral for a standby letter of credit required by the California Department of Public Health for unforeseen future regulatory costs related to the decommissioning of certain manufacturing equipment. Since the quarter ended June 28, 2019, the Company was no longer required to set aside collateral for this standby letter of credit. Revenue Recognition On December 30, 2017 (beginning of fiscal year 2018), the Company adopted Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) 2014-09, “Revenue from Contracts with Customers (Topic 606)” and its subsequent amendments, using the modified retrospective method, and determined that there was no cumulative effect adjustment on the Consolidated Financial Statements. The Company determined that the adoption of the new standard did not materially impact the revenue recognition on its Consolidated Financial Statements. Revenue recognition for 2017 continue to be in accordance with Topic 605. The Company recognizes revenue when its contractual performance obligations with customers are satisfied. The Company’s performance obligations are generally limited to single sales orders with product shipping to the customer within a month of receipt of the sales order. Substantially all of the Company’s revenues are recognized at a point-in-time when control of its products transfers to the customer, which is typically upon shipment (as discussed below). The Company presents sales tax and similar taxes it collects from its customers on a net basis (excluded from revenues). Note 1 — Organization and Description of Business and Accounting Policies (Continued) Revenue Recognition (Continued) The Company sells certain injector parts to an unrelated customer and supplier (collectively referred to as “supplier”) whereby these injector part sales are either made as a final sale to the supplier or, are sold to be combined with an acrylic IOL by the supplier into finished goods inventory (a preloaded acrylic IOL). These finished goods are then sold back to the Company at an agreed upon, contractual price. The Company makes a profit margin on either type of sale with the supplier and each type of sale is made under separate purchase and sales orders between the two parties resulting in cash settlement for the orders sold or repurchased. For parts that are sold as a final sale, the Company recognizes a sale and those sales are classified as other product sales in total net sales. For the injector parts that are sold to be combined with an acrylic IOL into finished goods, the Company records the transaction at its carrying value deferring any profit margin as contra-inventory, until the finished goods inventory is sold to an end-customer (not the supplier) at which point the Company recognizes revenues. For all sales, the Company is considered the principal in the transaction as the Company is the party providing specified goods it has control over prior to when control is transferred to the customer. Cost of sales includes cost of production, freight and distribution, and inventory provisions, net of any purchase discounts. Shipping and handling activities that occur after the customer obtains control of the goods are recognized as fulfillment costs. The Company disaggregates its revenue into the following categories: non-consignment sales and consignment sales. Non-consignment Sales The Company recognizes revenue from non-consignment product sales at a point-in-time when control has been transferred, which is typically at shipping point, except for certain customers and for the Company’s STAAR Japan subsidiary, which is typically recognized when the customer receives the product. The Company does not have significant deferred revenues as of January 3, 2020, December 28, 2018 and December 29, 2017, as delivery to the customer is generally made within the same or the next day of shipment. The Company also enters into certain strategic cooperation agreements with customers in which, as consideration for certain commitments made by the customer, including minimum purchase commitments, the Company agrees, among other things, to pay for marketing, educational training and general support of the Company’s products. The provisions in these arrangements allow for these payments to be made directly to the customer or payments can be made directly to a third party for distinct marketing, educational training and general support services provided to or on behalf of the customer by the third party. For payments the Company makes to another party, or reimburses the customer for distinct marketing and support services, the Company recognizes these payments as sales and marketing expense as incurred in accordance with ASC 606-10-32-25. These strategic cooperation agreements are generally for periods of 12 months or more with quarterly minimum purchase commitments. The Company recognizes sales and marketing expenses in the period in which it expects the customer will achieve its minimum purchase commitment, generally quarterly, and any unpaid amounts are recorded in Other Current Liabilities in “Other” on the Consolidated Balance Sheets, see Note 7. Reimbursements made directly to the customer for general marketing incentives are treated as a reduction in revenues. The Company’s performance obligations generally occur in the same quarter as the shipment of product. Sales and marketing expenses for distinct services were as follows (in thousands): Years Ended 2019 2018 2017 Marketing and support services related to strategic cooperation agreements $ 485 $ 629 $ 120 Note 1 — Organization and Description of Business and Accounting Policies (Continued) Revenue Recognition (Continued) Non-consignment Sales (Continued) Since the payments for distinct or non-distinct services occur within the quarter corresponding with the purchases made by the customer and the shipments made by the Company to that customer, there is no remaining performance obligation by the Company to the customer. Accordingly, there are no deferred revenues associated with these types of arrangements as of January 3, 2020, December 28, 2018 and December 29, 2017. Consignment Sales The Company’s products are marketed to ophthalmic surgeons, hospitals, ambulatory surgery centers or vision centers, and distributors. IOLs and ICLs may be offered to surgeons and hospitals on a consignment basis. The Company maintains title and risk of loss on consigned inventory and recognizes revenue for consignment inventory at a point-in-time when the Company is notified that the lenses have been implanted, thus completing the performance obligation. See Note 17 for additional information on disaggregation of revenues, geographic sales information and product sales. Allowance for Doubtful Accounts The Company performs ongoing credit evaluations of its customers and adjusts credit limits based on customer payment history and credit worthiness, as determined by the Company’s review of its customers’ current credit information. The Company continuously monitors collections and payments from customers and maintains a provision for estimated credit losses and uncollectible accounts based upon its historical experience and any specific customer collection issues that have been identified. Amounts determined to be uncollectible are written off against the allowance for doubtful accounts. Concentration of Credit Risk and Revenues Financial instruments that potentially subject the Company to credit risk principally consist of trade receivables. This risk is limited due to the large number of customers comprising the Company’s customer base, and their geographic dispersion. As of January 3, 2020 and December 28, 2018, there was one customer who accounted for 43% and 36% of the Company’s consolidated trade receivables, respectively. Ongoing credit evaluations of customers’ financial condition are performed and, generally, no collateral is required. The Company maintains reserves for potential credit losses and such losses, taken together, have not exceeded management’s expectations. There was one customer who accounted for 43%, 37% and 27% of the Company’s consolidated net sales for the years ended 2019, 2018 and 2017, respectively. Note 1 — Organization and Description of Business and Accounting Policies (Continued) Sales Return Reserve The Company generally may permit returns of product if the product, upon issuance of a Return Goods Authorization, is returned within the time allowed by its return policies and records an allowance for estimated returns at the time revenue is recognized. The Company’s allowance for estimated returns considers historical trends and experience, the impact of new product launches, the entry of a competitor, availability of timely and pertinent information and the various terms and arrangements offered, including sales with extended credit terms. For estimated returns, sales are reported net of estimated returns and cost of sales are reported net of estimated returns that can be resold. On the Consolidated Balance Sheets, the balances associated for estimated sales returns were as follows (in thousands): 2019 2018 Estimated returns - inventory (1) $ 869 $ 722 Allowance for sales returns 3,644 2,895 (1) Fair Value of Financial Instruments Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. To increase the comparability of fair value measures, the following hierarchy prioritizes the inputs to valuation methodologies used to measure fair value (ASC 820-10-50): • Level 1 – Inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. • Level 2 – Inputs to the valuation methodology include quoted prices for similar assets or liabilities in active markets, and inputs that are observable for the assets or liability, either directly or indirectly, for substantially the full term of the financial instruments. • Level 3 – Inputs to the valuation methodology are unobservable; that reflect management’s own assumptions about the assumptions market participants would make and significant to the fair value. The carrying values reflected on the Consolidated Balance Sheets for cash and cash equivalents, trade accounts receivable, net, prepayments, deposits and other current assets, accounts payable, other current liabilities and line of credit approximate their fair values because of the short maturity of these instruments. Inventories, Net Inventories, net are valued at the lower of cost, determined on a first-in, first-out basis, or net realizable value. Inventories include the costs of raw material, labor, and manufacturing overhead, work in process and finished goods. Inventories also include as a contra item, deferred margins for certain injector parts described under the revenue recognition policy. The Company provides estimated inventory allowances for excess, expiring, slow moving and obsolete inventory as well as inventory whose carrying value is in excess of net realizable value to properly reflect inventory at the lower of cost or market. Note 1 — Property, Plant, and Equipment Property, plant, and equipment are recorded at cost. Depreciation on property, plant, and equipment is computed using the straight-line method over the estimated useful lives of the assets as noted below. Leasehold improvements are amortized over the lesser of the estimated useful lives of the assets or the related lease term. Major improvements are capitalized and minor replacements, maintenance and repairs are charged to expense as incurred. Also included in property, plant and equipment is construction in process. Construction in process includes the cost of design plans and build out of facilities and the cost of equipment, as well as the direct costs incurred in the testing and validation of machinery and equipment and facilities before they are ready for productive use. Upon placement in service, costs are reclassified into the appropriate asset category and depreciation commences The estimated useful lives of assets are as follows: Machinery and equipment 5-10 years Computer equipment and software 2-5 years Furniture and equipment 3-7 years Leasehold improvements The shorter of the useful life of the asset or the term of the associated lease Goodwill Goodwill, which has an indefinite life, is not amortized but instead is tested for impairment on an annual basis or between annual tests if an event occurs or circumstances change that would indicate the carrying amount may be impaired. Impairment testing for goodwill is done at the reporting unit level. Reporting units can be one level below the operating segment level, and can be combined when reporting units within the same operating segment have similar economic characteristics. The Company has determined that its reporting units have similar economic characteristics, and therefore, can be combined into one reporting unit for the purposes of goodwill impairment testing. The Company performed its annual impairment test and determined that its goodwill was not impaired. As of January 3, 2020 and December 28, 2018, the carrying value of goodwill was $1,786,000. Long-Lived Assets The Company reviews property, plant, and equipment and intangible assets, excluding goodwill, for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. The Company measures recoverability of these assets by comparing the carrying value of such assets to the estimated undiscounted future cash flows the assets are expected to generate. When the estimated undiscounted future cash flows are less than their carrying amount, an impairment loss is recognized equal to the difference between the assets’ fair value and their carrying value. A review of long-lived assets was conducted as of January 3, 2020 and December 28, 2018 and no impairment was identified. Amortization is computed on the straight-line basis, which is the Company’s best estimate of the economic benefits realized over the estimated useful lives of the assets which range from 3 to 20 years for patents, certain acquired rights and licenses, 10 years for customer relationships, and 3 to 10 years for developed technology. Note 1 — Lease Accounting On December 29, 2018 (beginning of fiscal year 2019), the Company adopted FASB ASU 2016-02, “Leases (Topic 842)” and its subsequent amendments affecting the Company: (i) ASU 2018-10, “Codification Improvements to Topic 842, Leases,” and (ii) ASU 2018-11, “Leases (Topic 842): Targeted improvements,” using the modified retrospective method. Upon adoption of Topic 842, the Company recognized a cumulative adjustment of $113,000 which decreased the accumulated deficit and recognized right-of-use (“ROU”) assets and lease liabilities for operating leases, whereby the Company’s accounting finance leases remained substantially unchanged. The Company recognizes ROU assets and lease liabilities for leases with terms greater than twelve months in the Consolidated Balance Sheets. Leases are classified as either finance or operating, with classification affecting the pattern of expense recognition in the Consolidated Statement of Income. A contract contains a lease if the contract conveys the right to control an identified asset for a period of time in exchange for consideration. An asset is either explicitly identified or implicitly identified and must be physically distinct. In addition, the Company must have both the right to obtain substantially all of the economic benefits from use of the identified asset and has the right to direct the use of the identified asset. Certain leases may have non-lease components such as common area maintenance expense for building leases and maintenance expenses for automobile leases. In general, the Company separates common area maintenance expense component from the value of the ROU asset and lease liability when evaluating rental properties under Topic 842, whereas, the Company includes the maintenance and service components in the value of the ROU asset and lease liability while evaluating automobile leases under Topic 842. When determining whether a lease is a finance lease or an operating lease, Topic 842 does not specifically define criteria to determine “major part of remaining economic life of the underlying asset” and “substantially all of the fair value of the underlying asset.” For lease classification determination, the Company continues to use (i) greater than or equal to 75% to determine whether the lease term is a major part of the remaining economic life of the underlying asset and (ii) greater than or equal to 90% to determine whether the present value of the sum of lease payments is substantially all of the fair value of the underlying asset. The Company uses either the rate implicit in the lease or its incremental borrowing rate as the discount rate in lease accounting. When adopting Topic 842, the Company did not reassess any expired or existing contracts, reassess the lease classification for any expired or existing leases and reassess initial direct costs for exiting leases. The Company also elected not to capitalize leases that have terms of twelve months or less. The Company reviews ROU assets, for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. The Company measures recoverability of these assets by comparing the carrying value of such assets to the estimated undiscounted future cash flows the assets are expected to generate. When the estimated undiscounted future cash flows are less than their carrying amount, an impairment loss is recognized equal to the difference between the assets’ fair value and their carrying value. Note 1 — Vendor Concentration As of January 3, 2020 there was one vendor who accounted for over 11% of the Company’s consolidated accounts payable. As of December 28, 2018, there were no vendors who accounted for 10% of the Company’s consolidated accounts payable. There were no vendors who accounted for over 10% of the Company’s consolidated purchases for the years ended 2019 and 2017. There was one vendor who accounted for over 10% of the Company’s consolidated purchases for the year ended 2018. Research and Development Costs Expenditures for research activities relating to product development and improvement are charged to expense as incurred. Advertising Costs Advertising costs, which are included in marketing and selling expenses, are expensed as incurred, and were as follows (in thousands): Years Ended 2019 2018 2017 Advertising costs $ 10,990 $ 8,981 $ 6,102 Income Taxes On December 22, 2017, the United States enacted major tax reform legislation, the 2017 Tax Act, which enacted a broad range of changes to the federal tax code. Key provisions that could have an impact on the Company’s Consolidated Financial Statements are the deemed repatriation of foreign earnings, the remeasurement of certain net deferred assets and other liabilities for the change in the U.S. corporate tax rate from 35 percent to 21 percent, and the elimination of the alternative minimum tax (“AMT”) which were included in the Company’s 2017 Consolidated Financial Statements. The Company applied the guidance in SAB 118 when accounting for the enactment-date effects of the 2017 Tax Act in 2017 and throughout 2018. At December 28, 2018, the Company has completed its accounting for all the enactment-date income tax effects of the Tax Act. Beginning in 2017, the 2017 Tax Act subjects a U.S. shareholder to tax on Global Intangible Low Tax Income (“GILTI”) earned by certain foreign subsidiaries. In January 2018, the FASB released guidance (Staff Q&A Topic 740, No. 5) on the accounting for tax on the GILTI provisions of the 2017 Tax Act. In general, GILTI is the excess of a U.S. shareholder’s total net foreign income over a deemed return on tangible assets. The provision further allows a deduction of 50 percent of GILTI, however this deduction is limited by the Company’s net operating loss carryforwards. In addition, Staff Q&A Topic 740, No. 5 states that an entity can make an accounting policy election to either recognize deferred taxes for temporary basis differences expected to reverse as GILTI in future years or to provide for the tax expense related to GILTI in the year the tax is incurred as a period expense only. The Company has elected to account for GILTI as a current period expense when incurred. Note 1 — Income Taxes (Continued) The Company recognizes the income tax benefit from an uncertain tax position when it is more likely than not that, based on technical merits, the position will be sustained upon examination, including resolutions of any related appeals or litigation processes. The amount of tax benefit recorded, if any, is limited to the amount that is greater than 50 percent likely to be realized upon settlement with the taxing authority (that has full knowledge of all relevant information). Accrued interest, if any, related to uncertain tax positions is included as a component of income tax expense, and penalties, if incurred, are recognized as a component of operating income or loss. The Company does not have any uncertain tax positions as of any of the periods presented. The Company did not incur significant interest and penalties for any period presented. The Company recognizes deferred tax assets and liabilities for temporary differences between the financial reporting basis and the tax basis of the Company’s assets and liabilities, net operating loss and credit carryforwards, and uncertainty in income taxes, on a jurisdiction-by-jurisdiction basis. In evaluating the Company’s ability to recover the deferred tax assets within a jurisdiction from which they arise, management considers all available positive and negative evidence, including scheduled reversals of deferred tax liabilities, projected future taxable income, tax-planning strategies, and results of recent operations. In projecting future taxable income, the Company begins with historical results and incorporates assumptions including overall current and projected business and industry conditions, the amount of future federal, state, and foreign pretax operating income, the reversal of temporary differences and the successful implementation of feasible and prudent tax-planning strategies. These assumptions require significant judgment about the forecasts of future taxable income and are consistent with the plans and estimates the Company uses to manage the underlying businesses. In evaluating the objective evidence that historical results provide, the Company considers three years of cumulative operating results. Valuation allowances, or reductions to deferred tax assets, are recognized if, based on the weight of all the available evidence, it is more likely than not that some portion or all the deferred tax asset may not be realized. The impact on deferred taxes of changes in tax rates and laws, if any, are applied to the years during which temporary differences are expected to be settled and reflected in the financial statements in the period of enactment. The Company has made a policy election to apply the incremental cash tax savings approach when analyzing the impact GILTI could have on its U.S. valuation allowance. As a result of future expected GILTI inclusions, and because of the Tax Act’s ordering rules, U.S. companies may now expect to utilize tax attribute carryforwards (e.g., net operating losses and deferred tax assets) for which a valuation allowance has historically been recorded (this is referred to as the “tax law ordering approach”). However, due to the mechanics of the GILTI rules, companies that have a GILTI inclusion may realize a reduced (or no) cash tax savings from utilizing such tax attribute carryforwards (this view is referred to as the “incremental cash tax savings approach”). Basic and Diluted Net Income (Loss) Per Share The Company has only one class of common stock and no participating securities which would require the two-class method of calculating basic earnings per share. Basic per share information is calculated by dividing net income (loss) by the weighted average number of shares outstanding, net of unvested restricted stock and unvested restricted stock units, during the period. Diluted per share information is calculated by dividing net income (loss) by the weighted average number of shares outstanding, adjusted for the effects of potentially dilutive common stock, which are comprised of outstanding warrants, stock options, unvested restricted stock, and restricted stock units, during the period, using the treasury-stock method (See Note 16). Note 1 — Organization and Description of Business and Accounting Policies (Continued) Employee Defined Benefit Plans The Company maintains a passive pension plan (the “Swiss Plan”) covering employees of its Swiss subsidiary. The Swiss Plan conforms to the features of a defined benefit plan. The Company also maintains a noncontributory defined benefit pension plan which covers substantially all the employees of STAAR Japan. The Company recognizes the funded status, or difference between the fair value of plan assets and the projected benefit obligations of the pension plan on the Consolidated Balance Sheets, with a corresponding adjustment to accumulated other comprehensive income (loss). If the projected benefit obligation exceeds the fair value of plan assets, then that difference or unfunded status represents the pension liability. The Company records a net periodic pension cost in the Consolidated Statements of Operations. The liabilities and annual income or expense of both plans are determined using methodologies that involve several actuarial assumptions, the most significant of which are the discount rate and the expected long-term rate of asset return (asset returns and fair-value of plan assets are applicable for the Swiss Plan only). The fair values of plan assets are determined based on prevailing market prices (see Note 11). Stock-Based Compensation Stock-based compensation expense for all stock-based compensation awards granted is based on the grant-date fair value. The Company recognizes these compensation costs on a straight-line basis over the requisite service period of the award, which is generally the option vesting term of three to four years for executive officers and employees, and one year for members of its Board of Directors (the “Board”) (see Note 12). The Company also, at times, issues restricted stock to its executive officers, employees and the Board, which are restricted and unvested common shares issued at fair market value on the date of grant. For the restricted shares issued to the Board, the restricted stock vests over a one-year three-year The Company issues restricted stock units (“RSUs”) (see Note 12), which can have only a service condition or a performance contingent restricted stock award based upon the Company meeting certain internally established performance conditions that vest only if those conditions are met or exceeded and the grantee is still employed with the Company. Restricted stock unit compensation expense is recognized on a straight-line basis over the requisite service period. The Company recognizes compensation cost for the performance condition RSUs when the Company concludes that it is probable that the performance condition will be achieved, net of an estimate of pre-vesting forfeitures, over the requisite service period based on the grant-date fair value of the stock. The Company reassesses the probability of vesting at each reporting period and adjusts compensation cost based on its probability assessment. Once the RSUs are vested, equivalent common shares will be issued or issuable to the grantee and therefore the RSUs are not included in total common shares issued and outst |
Accounts Receivable Trade, Net
Accounts Receivable Trade, Net | 12 Months Ended |
Jan. 03, 2020 | |
Receivables [Abstract] | |
Accounts Receivable Trade, Net | Note 2 — Accounts Receivable Trade, Net Accounts receivable trade, net consisted of the following at January 3, 2020 and December 28, 2018 (in thousands): 2019 2018 Domestic $ 989 $ 807 Foreign 30,095 25,689 Total accounts receivable trade, gross 31,084 26,496 Less allowance for doubtful accounts 88 550 Total accounts receivable trade, net $ 30,996 $ 25,946 |
Inventories, Net
Inventories, Net | 12 Months Ended |
Jan. 03, 2020 | |
Inventory Disclosure [Abstract] | |
Inventories, Net | Note 3 — Inventories, Net Inventories, net consisted of the following at January 3, 2020 and December 28, 2018 (in thousands): 2019 2018 Raw materials and purchased parts $ 3,334 $ 2,678 Work in process 1,870 2,195 Finished goods 12,976 13,214 Total inventories, gross 18,180 18,087 Less inventory reserves 1,038 1,383 Total inventories, net $ 17,142 $ 16,704 |
Prepayments, Deposits and Other
Prepayments, Deposits and Other Current Assets | 12 Months Ended |
Jan. 03, 2020 | |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | |
Prepayments, Deposits and Other Current Assets | Note 4 — Prepayments, Deposits and Other Current Assets Prepayments, deposits and other current assets consisted of the following at January 3, 2020 and December 28, 2018 (in thousands): 2019 2018 Prepayments and deposits $ 3,031 $ 1,707 Prepaid insurance 1,488 1,271 Consumption tax receivable 875 912 Value added tax (VAT) receivable 713 565 Income tax receivable 138 285 Other (1) 315 305 Total prepayments, deposits and other current assets $ 6,560 $ 5,045 (1) |
Property, Plant and Equipment,
Property, Plant and Equipment, Net | 12 Months Ended |
Jan. 03, 2020 | |
Property Plant And Equipment [Abstract] | |
Property, Plant and Equipment, Net | Note 5 — Property, Plant and Equipment, Net Property, plant and equipment, net consisted of the following at January 3, 2020 and December 28, 2018 (in thousands): 2019 2018 Machinery and equipment $ 17,173 $ 16,905 Computer equipment and software 6,244 5,992 Furniture and fixtures 4,169 3,868 Leasehold improvements 10,151 10,045 Construction in process 8,477 2,095 Total property, plant and equipment, gross 46,214 38,905 Less accumulated depreciation 29,149 27,454 Total property, plant and equipment, net $ 17,065 $ 11,451 Depreciation expense and loss on disposal of property, plant and equipment were as follows (in thousands): Years Ended 2019 2018 2017 Depreciation expense $ 3,665 $ 2,430 $ 3,133 Loss on disposal of property, plant and equipment 14 10 623 Note 5 — Property, Plant and Equipment, Net (Continued) The loss recognized for the year ended December 29, 2017 consisted primarily of an asset, with a net book value of $599,000, that was no longer in use. |
Intangible Assets, Net
Intangible Assets, Net | 12 Months Ended |
Jan. 03, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Intangible Assets, Net | Note 6 — Intangible Assets, Net Intangible assets, net consisted of the following at January 3, 2020 and December 28, 2018 (in thousands): 2019 2018 Long-lived amortized intangible assets Gross Carrying Amount Accumulated Amortization Net Gross Carrying Amount Accumulated Amortization Net Patents and licenses $ 9,353 $ (9,057 ) $ 296 $ 9,257 $ (9,014 ) $ 243 Amortization expense for intangible assets were as follows (in thousands): Years Ended 2019 2018 2017 Amortization expense $ 34 $ 34 $ 221 Future amortization of intangible assets is as follows (in thousands): Year Ended Amount 2020 $ 35 2021 35 2022 35 2023 35 2024 35 Thereafter 121 Total $ 296 |
Other Current Liabilities
Other Current Liabilities | 12 Months Ended |
Jan. 03, 2020 | |
Other Liabilities Disclosure [Abstract] | |
Other Current Liabilities | Note 7 — Other Current Liabilities Other current liabilities consisted of the following at January 3, 2020 and December 28, 2018 (in thousands): 2019 2018 Accrued salaries and wages $ 4,400 $ 3,172 Accrued bonuses 4,184 5,113 Accrued insurance 1,346 1,061 Income taxes payable 2,710 1,105 Accrued consumption tax 1,164 995 Other (1) 3,893 1,985 Total other current liabilities $ 17,697 $ 13,431 (1) No individual item in “Other” exceeds 5% of the other current liabilities. |
Lines of Credit
Lines of Credit | 12 Months Ended |
Jan. 03, 2020 | |
Debt Disclosure [Abstract] | |
Lines of Credit | Note 8 — Lines of Credit Since 1998, the Company’s wholly owned Japanese subsidiary, STAAR Japan, has had an agreement with Mizuho Bank which provides for borrowings of up to 500,000,000 Yen, at an interest rate equal to the uncollateralized overnight call rate (approximately 0.06% as of January 3, 2020) plus a 0.50% spread, and may be renewed quarterly (the current line expires on February 21, 2020). The credit facility is not collateralized. The Company had 197,500,000 Yen and 417,500,000 Yen outstanding on the line of credit as of January 3, 2020 and December 28, 2018, respectively (approximately $1,827,000 and $3,780,000 based on the foreign exchange rates on January 3, 2020 and December 28, 2018, respectively), which approximates fair value due to the short-term maturity and market interest rates of the line of credit. In case of default, the interest rate will be increased to 14% per annum. There was 302,500,000 Yen and 82,500,000 Yen available for borrowing as of January 3, 2020 and December 28, 2018, respectively (approximately $2,798,000 and $747,000 based on the foreign exchange rates on January 3, 2020 and December 28, 2018, respectively). At maturity on February 21, 2020, this line of credit was renewed until May 21, 2020, with similar terms. In September 2013, the Company’s wholly owned Swiss subsidiary, STAAR Surgical AG, entered into a framework agreement for loans (“framework agreement”) with Credit Suisse (the “Bank”). The framework agreement provides for borrowings of up to 1,000,000 CHF (Swiss Francs) (approximately $1,000,000 at the rate of exchange on January 3, 2020 and December 28, 2018), to be used for working capital purposes. Accrued interest and 0.25% commissions on average outstanding borrowings is payable quarterly and the interest rate will be determined by the Bank based on the then prevailing market conditions at the time of borrowing. The framework agreement is automatically renewed on an annual basis based on the same terms assuming there is no default. The framework agreement may be terminated by either party at any time in accordance with its general terms and conditions. The framework agreement is not collateralized and contains certain conditions such as providing the Bank with audited financial statements annually and notice of significant events or conditions, as defined in the framework agreement. The Bank may also declare all amounts outstanding to be immediately due and payable upon a change of control or a “material qualification” in STAAR Surgical independent auditors’ report, as defined. There were no borrowings outstanding as of January 3, 2020 and December 28, 2018. Covenant Compliance The Company is in compliance with covenants of its credit facilities and lines of credit as of January 3, 2020. Lease Line of Credit (Finance Leases) During 2019, the Company converted the lease line of credit schedule 011 with Farnam Street Financial, Inc. into a finance lease liability of approximately $500,000. |
Leases
Leases | 12 Months Ended |
Jan. 03, 2020 | |
Leases [Abstract] | |
Leases | Note 9 — Leases Finance Leases The Company entered into finance leases primarily related to purchases of equipment used for manufacturing or computer-related equipment. These finance leases are two to five years in length and have fixed payment amounts for the term of the contract and have options to purchase the assets at the end of the lease term. Supplemental balance sheet information related to finance leases consisted of the following (dollars in thousands): 2019 Machinery and equipment $ 1,885 Computer equipment and software 912 Furniture and fixtures 102 Leasehold improvements 27 Finance lease ROU assets, gross 2,926 Less accumulated depreciation 1,059 Finance lease ROU assets, net $ 1,867 Total finance lease liability $ 926 Weighted-average remaining lease term (in years) 1.1 Weighted-average discount rate 6.17 % Supplemental cash flow information related to finance leases consisted of the following (in thousands): Year Ended 2019 Amortization of finance lease ROU asset $ 584 Interest on finance lease liabilities 72 Cash paid for amounts included in the measurement of finance lease liabilities: Operating cash flows 72 Financing cash flows 1,294 ROU assets obtained in exchange for new finance lease liabilities 679 Operating Leases The Company entered into operating leases primarily related to real property (office, manufacturing and warehouse facilities), automobiles and copiers. These operating leases are two to five years in length with options to extend. The Company did not include any lease extensions in the initial valuation unless the Company was reasonably certain to extend the lease. Depending on the lease, there are those with fixed payment amounts for the entire length of the contract or payments which increase periodically as noted in the contract or increased at an inflation rate indicator. For operating leases that increase using an inflation rate indicator, the Company used the inflation rate at the time the lease was entered into for the length of the lease term. Supplemental balance sheet information related to operating leases consisted of the following (dollars in thousands): Note 9 — Leases (Continued) Operating Leases (Continued) 2019 Machinery and equipment $ 765 Computer equipment and software 462 Real property 11,116 Operating lease ROU assets, gross 12,343 Less accumulated depreciation 5,659 Operating lease ROU assets, net $ 6,684 Total operating lease liability $ 6,786 Weighted-average remaining lease term (in years) 2.3 Weighted-average discount rate 1.82 % Supplemental cash flow information related to operating leases was as follows (in thousands): Year Ended 2019 Operating lease cost $ 2,749 Cash paid for amounts included in the measurement of operating lease liabilities: Operating cash flows 2,774 ROU assets obtained in exchange for new operating lease liabilities 3,495 ROU assets related to operating leases of $5,726,000 were recorded upon the adoption of Topic 842. Future Minimum Lease Commitments Estimated future minimum lease payments under operating and finance leases having initial or remaining non-cancelable lease terms more than one year as of January 3, 2020 are as follows (in thousands): Year Ended Operating Leases Finance Leases 2020 $ 2,850 $ 590 2021 1,694 349 2022 1,220 13 2023 921 8 2024 346 2 Thereafter 73 — Total minimum lease payments, including interest $ 7,104 $ 962 Less amounts representing interest 318 36 Total minimum lease payments $ 6,786 $ 926 |
Income Taxes
Income Taxes | 12 Months Ended |
Jan. 03, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 10 — Income Taxes Provision (Benefit) for Income Taxes Income (loss) from continuing operations before provision (benefit) for income taxes was as follows (in thousands): Years Ended 2019 2018 2017 Domestic $ (5,321 ) $ (2,629 ) $ (3,318 ) Foreign 18,347 9,268 1,022 Income (loss) before income taxes $ 13,026 $ 6,639 $ (2,296 ) The provision (benefit) for income taxes consisted of the following (in thousands): Years Ended 2019 2018 2017 Current tax provision: U.S. federal $ — $ — $ — State 13 10 12 Foreign 2,446 1,220 378 Total current provision 2,459 1,230 390 Deferred tax provision (benefit): U.S. federal (3,003 ) — (546 ) State (373 ) — — Foreign (105 ) 441 (1 ) Total deferred provision (benefit) (3,481 ) 441 (547 ) Provision (benefit) for income taxes $ (1,022 ) $ 1,671 $ (157 ) Note 10 — Income Taxes (Continued) Provision (Benefit) for Income Taxes (Continued) A reconciliation of the statutory U.S. federal tax rate to the Company’s effective tax rate was as follows (dollars in thousands): Years Ended 2019 2018 2017 Rate Amount Rate Amount Rate Amount Computed provision (benefit) for taxes based on income at statutory rate 21.0 % $ 2,735 21.0 % $ 1,394 34.0 % $ (781 ) Increase (decrease) in taxes resulting from: Permanent differences 17.4 2,266 0.6 41 (0.9 ) 21 Change in the future federal tax rate — — — — (833.0 ) 19,125 State taxes, net of federal income tax benefit (2.2 ) (284 ) 0.1 8 (0.3 ) 8 State tax benefit 0.7 93 (6.7 ) (447 ) 8.3 (190 ) Foreign tax differential (11.6 ) (1,514 ) (11.0 ) (730 ) (1.3 ) 29 Expiration of state net operating tax loss carryforwards 8.0 1,039 — — (36.4 ) 836 Foreign earnings not permanently reinvested, net of the participation exemption (0.1 ) (7 ) (14.0 ) (926 ) 108.1 (2,482 ) Foreign dividend withholding — — 4.8 317 (0.3 ) 7 ASC 718 share based payment adjustment — — (6.5 ) (434 ) — — Other 1.0 122 0.5 30 (2.6 ) 59 Valuation allowance (42.0 ) (5,472 ) 36.4 2,418 731.2 (16,789 ) Effective tax provision (benefit) (7.8 )% $ (1,022 ) 25.2 % $ 1,671 6.8 % $ (157 ) The Company recorded an income tax benefit of $1,022,000 during the year ended 2019 due to the income tax benefit from the release of the U.S. and certain states valuation allowances, offset by income tax expense from profits generated in its foreign operations. The Company recorded an income tax provision of $1,671,000 during the year ended 2018, due to profits generated in its foreign operations. The Company recorded an income tax benefit of $157,000 during the year ended 2017 due primarily to a U.S. income tax benefit related to an alternative minimum tax carryforward, offset by income tax expense generated from profits in its foreign operations. For the year ended 2019, there was a decrease to the state deferred tax asset of $387,000 and a decrease to the valuation allowance of $760,000, primarily related to the release of certain states valuation allowances as well as the expiration of state net operating loss carryforwards. Included in the state tax provision was an increase to the state deferred tax asset and corresponding increase to the valuation allowance of $447,000 for the year ended 2018, primarily related to the losses generated in 2018. For the year ended 2017, there was a decrease to the state deferred tax asset and corresponding decrease to the valuation allowance of $646,000, primarily related to the expiration of state net operating loss carryforwards. Note 10 — Income Taxes (Continued) Provision (Benefit) for Income Taxes (Continued) For the years ended 2019 and 2017, there was a decrease in foreign deferred liabilities of $46,000 and $47,000, respectively. Included in the foreign deferred tax provision is an increase of $36,000 in foreign deferred liabilities for the year ended 2018 All earnings from the Company’s subsidiaries are not considered to be permanently reinvested. Accordingly, the Company provided withholding and U.S. taxes on all unremitted foreign earnings for 2018 and 2017 (see STAAR Surgical UK discussion below). During 2019, 2018 and 2017 there were no withholding taxes paid to foreign jurisdictions. As discussed in Note 1, on December 22, 2017, the United States enacted major tax reform legislation, the 2017 Tax Act, which enacted a broad range of changes to the federal tax code. Most of the changes from the new law are effective for years beginning after December 31, 2017, with the noted exception of the deemed repatriation of the offshore earnings. For 2019 and 2018, in accordance with the 2017 Tax Act, the Company included GILTI of $16,100,000 and $7,700,000, respectively, in U.S. gross income, which was fully offset with net operating loss carryforwards. The Company was not able to utilize the deduction of 50 percent of GILTI, as this deduction is limited by the Company’s pre-GILTI U.S. tax income. Deferred Tax Assets and Liabilities Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company’s deferred tax assets (liabilities) at January 3, 2020 and December 28, 2018 were as follows (in thousands): 2019 2018 Deferred tax assets: Allowance for doubtful accounts and sales returns $ 233 $ 252 Inventories 703 560 Accrued vacation 428 387 Accrued other expenses 1,036 1,232 Stock-based compensation 3,455 2,489 Pensions 1,159 884 Depreciation and amortization 162 843 Net operating loss carryforwards 32,251 34,347 Business, foreign, AMT and R&D credit carryforwards 3,164 3,256 Prepaid expenses 272 272 Capitalized R&D 986 968 Operating lease liability 1,309 — Other 5 122 Valuation allowance (37,603 ) (43,075 ) Total deferred tax assets $ 7,560 $ 2,537 Deferred tax liabilities: Foreign tax withholding $ (1,295 ) $ (1,282 ) Operating lease ROU assets (1,309 ) — Amortization of R&D (805 ) (759 ) Net foreign earnings not permanently reinvested (401 ) (240 ) Total deferred tax liabilities (3,810 ) (2,281 ) Total net deferred tax assets $ 3,750 $ 256 Note 10 — Income Taxes (Continued) Deferred Tax Assets and Liabilities (Continued) As of January 3, 2020, the Company had combined federal and state net deferred tax assets of $3,512,000, net deferred tax assets in Japan of $896,000, and net deferred tax liabilities in Switzerland of $658,000 (which included $1,295,000 of withholding taxes on unremitted foreign earnings) included in the Company’s components of deferred income tax assets and liabilities table. As of December 28, 2018, the Company had net deferred tax assets in the U.S. of $273,000 and in Japan of $905,000, and had net deferred tax liabilities in Switzerland of $922,000 (which included $1,282,000 of withholding taxes on unremitted foreign earnings) included in the Company’s components of deferred income tax assets and liabilities table. The Company had accrued net income taxes payable of $2,572,000 and $820,000 at January 3, 2020 and December 28, 2018, respectively, primarily due to taxes owed in foreign jurisdictions. U.S. Jurisdiction The ultimate realization of deferred tax assets is dependent upon future generation of income during the periods in which temporary differences representing net future deductible amounts become deductible. Management considers the projected future income and tax planning strategies in making this assessment. As of January 3, 2020, the Company has three years of accumulated profits for federal income tax purposes as a result of GILTI. However, the three-year income position is not solely determinative and, accordingly, management considers all other available positive and negative evidence in its analysis. This includes existing profits in foreign jurisdiction as well as projected future profits. After consideration of all the information available, the Company determined that a release of the federal valuation and certain states valuation were appropriate. Under the incremental cash tax savings approach, the Company recorded a valuation allowance release of $3,003,000 and $373,000 against the federal and certain states deferred tax assets, respectively. Under this method, valuation allowances of $33,813,000 and $6,643,000 for federal and state, respectively, remain as the usage of the remaining net operating losses and deferred tax assets will not result in cash tax savings and therefore provide no additional benefit. Further included in the federal deferred tax asset balance is $2,285,000 in foreign tax credits and foreign withholding taxes that are unlikely to be realized in the future under the new tax act and the mechanics of GILTI. As of January 3, 2020, the Company had net deferred tax assets in the U.S. of $3,139,000, which consisted of the federal valuation allowance release of $3,003,000 and the refundable alternative minimum tax credit of $136,000. Also, as of January 3, 2020, the Company had state net deferred tax assets of $373,000, which consisted of the release of certain state valuation allowances. As of January 3, 2020, the Company had federal net operating loss carryforwards of $129,000,000 available to reduce future income taxes of its U.S. operations. The pre-2018 federal net operating loss carryforwards expire in varying amounts between 2020 and 2037. In California, the main state from which the Company conducts its domestic operations, the Company has state net operating losses of $33,000,000 available to reduce future California income taxes. The California net operating loss carryforwards expire in varying amounts between 2028 and 2039. Further, pursuant to the provisions of Internal Revenue Code Section 382, significant changes in ownership may restrict the future utilization of these tax loss carry forwards. Note 10 — Income Taxes (Continued) Foreign Jurisdictions STAAR Surgical UK On October 9, 2019 STAAR US formed STAAR Surgical UK Limited (“STAAR UK”) as a holding company in the United Kingdom for their foreign subsidiaries. On December 30, 2019, STAAR US transferred their shares in STAAR Surgical AG to STAAR UK. STAAR UK will act as the main foreign group holding company (“STAAR Group”). The STAAR Group intends to consolidate the group’s global operations to create a centralized hub to hold all future subsidiaries of the group, as well as expand into the United Kingdom market. STAAR UK’s activity will include the training and promotion of the entire product line with private and government hospitals in the United Kingdom. Based on the current tax treaties there is no withholding on distributions between Switzerland and the United Kingdom, and the United Kingdom and the U.S. Accordingly, the Company will no longer accrue Swiss withholding tax on foreign earnings after fiscal 2018. STAAR Surgical AG Due to STAAR Surgical AG’s history of profits, the deferred tax assets are considered fully realizable. The Company had net deferred tax liabilities in Switzerland of $658,000 and $922,000 as of January 3, 2020 and December 28, 2018, respectively, as discussed above. STAAR Japan, Inc. Since 2012, STAAR Japan functions as a limited-risk distributor with a guaranteed return from STAAR AG and accordingly, STAAR Japan’s deferred tax assets are considered fully realizable. The Company had net deferred tax assets of $896,000 and $905,000 as of January 3, 2020 and December 28, 2018, respectively. STAAR Japan net deferred tax assets included a valuation allowance of $46,000 and $44,000 as of January 3, 2020 and December 28, 2018, respectively, related to non-deductible stock compensation for directors. The following tax years remain subject to examination: Significant jurisdictions Open Years U.S. Federal 2016 – 2018 California 2015 – 2018 Switzerland 2018 Japan 2017 – 2018 |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Jan. 03, 2020 | |
Defined Benefit Pension Plans And Defined Benefit Postretirement Plans Disclosure [Abstract] | |
Employee Benefit Plans | Note 11 – Employee Benefit Plans Defined Benefit Plan – Switzerland The Company maintains a passive pension plan (the “Swiss Plan”) covering employees of its Swiss subsidiary, which is accounted for as a defined benefit plan. In Switzerland employers are required to provide a minimum pension plan for their staff. Contributions of both the employees and employer finance the Swiss Plan. The amount of the contributions is defined by the plan regulations and cannot be decreased without amending the plan regulations. It is required that the employer contribute an amount equal to or greater than the employee contribution. The following table shows the changes in the benefit obligation and plan assets and the Swiss Plan’s funded status as of January 3, 2020 and December 28, 2018 (in thousands): 2019 2018 Change in Projected Benefit Obligation: Projected benefit obligation, beginning of period $ 8,794 $ 7,445 Service cost 739 474 Interest cost 77 56 Participant contributions 458 361 Benefits deposited (paid) 492 189 Actuarial loss 2,429 269 Prior service credit (125 ) — Projected benefit obligation, end of period $ 12,864 $ 8,794 Change in Plan Assets: Plan assets at fair value, beginning of period $ 5,130 $ 4,144 Actual return on plan assets (including foreign currency impact) 152 3 Employer contributions 542 433 Participant contributions 458 361 Benefits deposited (paid) 492 189 Plan assets at fair value, end of period $ 6,774 $ 5,130 Funded status (pension liability), end of year (1) $ (6,090 ) $ (3,664 ) Amount Recognized in Accumulated Other Comprehensive Income (Loss), net of tax: Actuarial loss on plan assets $ (1,031 ) $ (1,035 ) Actuarial loss on benefit obligation (4,317 ) (2,145 ) Actuarial gain recognized in current year 744 630 Prior service credit 258 165 Effect of curtailments 609 609 Accumulated other comprehensive loss $ (3,737 ) $ (1,776 ) Accumulated benefit obligation at year end $ (12,043 ) $ (8,230 ) (1) The underfunded balance was included in pension liability on the Consolidated Balance Sheets. Note 11 – Employee Benefit Plans (Continued) Defined Benefit Plan – Switzerland (Continued) Net periodic pension cost associated with the Swiss Plan included the following components (in thousands): Years Ended 2019 2018 2017 Service cost (1) $ 739 $ 474 $ 381 Interest cost (2) 77 56 53 Expected return on plan assets (2) (147 ) (116 ) (94 ) Prior service credit (2),(3) (21 ) (21 ) (7 ) Actuarial loss recognized in current period (2),(3) 129 113 72 Net periodic pension cost $ 777 $ 506 $ 405 ( 1) (2) For years ended 2019 and 2018, recognized in other income (expense), net, and for the year ended 2017, recognized in selling, general and administrative expenses on the Consolidated Statements of Operations. (3) Amounts reclassified from accumulated other comprehensive income (loss). Changes in other comprehensive income (loss), net of tax, associated with the Swiss included the following components (in thousands): Years Ended 2019 2018 2017 Current year actuarial gain (loss) on plan assets $ 4 $ (101 ) $ 98 Current year actuarial loss on benefit obligation (2,172 ) (243 ) (644 ) Actuarial gain recorded in current year 114 103 65 Prior service credit 93 (19 ) 126 Change in other comprehensive loss $ (1,961 ) $ (260 ) $ (355 ) The amount in accumulated other comprehensive income (loss) as of January 3, 2020 that is expected to be recognized as a component of the net periodic pension costs during fiscal year 2020 is $318,000. Net periodic pension cost and projected and accumulated pension obligation for the Company’s Swiss Plan were calculated on January 3, 2020 and December 28, 2018 using the following assumptions: 2019 2018 Discount rate 0.3 % 0.8 % Salary increases 2.0 % 2.0 % Expected return on plan assets 2.5 % 2.5 % Expected average remaining working lives in years 10.0 10.0 The discount rates are based on an assumed duration of the pension obligations and estimated using the rates of returns for AAA and AA-rated Swiss and foreign CHF-denominated corporate bonds listed on the SIX Swiss Exchange. The salary increase rate was based on the Company’s best estimate of future increases over time. The expected long-term rate of return on plan assets is based on the expected asset allocation and assumptions concerning long-term interest rates, inflation rates, and risk premiums for equities above the risk-free rates of return. These assumptions take into consideration historical long-term rates of return for relevant asset categories. Note 1 1 – Employee Benefit Plans (Continued) Defined Benefit Plan – Switzerland (Continued) Under Swiss law, pension funds are legally independent from the employer and all the contributions are invested with regulated entities. The Company has a contract with Allianz Suisse Life Insurance Company’s BVG Collective Foundation (the “Foundation”) to manage its Swiss pension fund. Multiple employers contract with the Foundation to manage the employers’ respective pension plans. The Foundation manages the pension plans of its contracted employers as a collective entity. The investment strategy is determined by the Foundation and applies to all members of the collective Foundation. There are no separate financial statements for each employer contract. The pension plan assets of all the employers that contract with the Foundation are comingled. They are considered multiple-employer plans under ASC 715-30-35-70 and therefore accounted for as single-employer plans. As there are no separate financial statements for each employer contract, there are no individual investments that can be directly attributed to the Company’s pension plan assets. However, the funds contributed by an employer are specifically earmarked for its employees and the total assets of the plan allocable to Company’s employees are separately tracked by the Foundation. The lack of visibility into the specific investments of the plan assets and how they are valued is a significant unobservable input, therefore, the Company considers the plan assets collectively to be Level 3 assets under the fair value hierarchy (see Note 1). The table below sets forth the fair value of Plan assets at December 28, 2018 and January 3, 2020, and the related activity in years ended 2018 and 2019, in accordance with ASC 715-20-50-1(d) (in thousands): Insurance Contracts (Level 3) Beginning balance at December 29, 2017 $ 4,144 Actual return on plan assets 3 Purchases, sales, and settlement 983 Ending balance at December 28, 2018 $ 5,130 Actual return on plan assets 152 Purchases, sales, and settlement 1,492 Ending balance at January 3, 2020 $ 6,774 During fiscal year 2020, the Company expects to make cash contributions totaling approximately $631,000 to the Swiss Plan. The estimated future benefit payments for the Swiss Plan are as follows (in thousands): Year Ended Amount 2020 $ 65 2021 79 2022 99 2023 117 2024 132 Thereafter 1,961 Total $ 2,453 Note 1 1 – Employee Benefit Plans (Continued) Defined Benefit Plan-Japan STAAR Japan maintains a noncontributory defined benefit pension plan (“Japan Plan”) substantially covering all the employees of STAAR Japan. Benefits under the Japan Plan are earned, vested, and accumulated based on a point-system, primarily based on the combination of years of service, actual and expected future grades (management or non-management) and actual and future zone (performance) levels of the employees. Each point earned is worth a fixed monetary value, 1,000 Yen per point, regardless of the level grade or zone of the employee. Gross benefits are calculated based on the cumulative number of points earned over the service period multiplied by 1,000 Yen. The mandatory retirement age limit is 60 years old. STAAR Japan administers the pension plan and funds the obligations of the Japan Plan from STAAR Japan’s operating cash flows. STAAR Japan is not required, and does not intend, to provide contributions to the Plan to meet benefit obligations and therefore does not have any plan assets. Benefit payments are made to beneficiaries as they become due. The funded status of the benefit plan at January 3, 2020 and December 28, 2018 was as follows (in thousands): 2019 2018 Change in Projected Benefit Obligation: Projected benefit obligation, beginning of period $ 1,646 $ 1,352 Service cost 185 153 Interest cost 7 4 Actuarial gain (58 ) 119 Benefits paid (66 ) (9 ) Foreign exchange adjustment 36 27 Projected benefit obligation, end of period $ 1,750 $ 1,646 Change in Plan Assets: Plan assets at fair value, beginning of period $ — $ — Actual return on plan assets — — Employer contributions — — Benefits paid — — Distribution of plan assets — — Foreign exchange adjustment — — Plan assets at fair value, end of period $ — $ — Funded status (pension liability), end of year (1) $ (1,750 ) $ (1,646 ) Amount Recognized in Accumulated Other Comprehensive Income (Loss), net of tax: Transition obligation $ — $ — Actuarial loss (37 ) (36 ) Prior service cost 7 8 Net gain 68 38 Accumulated other comprehensive income $ 38 $ 10 Accumulated benefit obligation at year end $ (1,599 ) $ (1,416 ) (1) The underfunded balance was included in pension liability on the Consolidated Balance Sheets. Note 1 1 – Employee Benefit Plans (Continued) Defined Benefit Plan-Japan (Continued) Net periodic pension cost associated with the Japan Plan included the following components (in thousands): Years Ended 2019 2018 2017 Service cost (1) $ 185 $ 153 $ 147 Interest cost (2) 7 4 4 Net amortization of transitional obligation (2),(3) — 11 11 Prior service credit (2),(3) (1 ) (1 ) (1 ) Actuarial loss recognized in current period (2),(3) — — (3 ) Net periodic pension cost $ 191 $ 167 $ 158 (1) Recognized in selling general and administrative expenses on the Consolidated Statements of Operations. (2) For the years ended 2019 and 2018, recognized in other income (expense), net, and for the year ended 2017, recognized in selling, general and administrative expenses on the Consolidated Statements of Operations. (3) Amounts reclassified from accumulated other comprehensive loss. Changes in other comprehensive income (loss), net of tax, associated with the Japan Plan include the following components (in thousands): Years Ended 2019 2018 2017 Amortization of net transition obligation $ — $ 7 $ 8 Amortization of actuarial loss (1 ) (1 ) — Prior service cost (1 ) — — Actuarial income (loss) recorded in current year 30 (84 ) (22 ) Change in other comprehensive income (loss) $ 28 $ (78 ) $ (14 ) The amount in accumulated other comprehensive income (loss) as of January 3, 2020 that is expected to be recognized as a component of the net periodic pension cost in fiscal year 2020 is approximately $1,000. Net periodic pension cost and projected and accumulated pension obligation for the Company’s Japan Plan were calculated on January 3, 2020 and December 28, 2018 using the following assumptions: 2019 2018 Discount rate 0.3 % 0.4 % Salary increases 4.5 % 6.0 % Expected return on plan assets N/A N/A Expected average remaining working lives in years 10.0 9.4 The discount rates are based on the yield curve of corporate bonds rated AA or higher. The salary increase average rate was based on the Company’s best estimate of future increases over time. Note 11 – Employee Benefit Plans (Continued) Defined Benefit Plan-Japan (Continued) The estimated future benefit payments for the Japan Plan are as follows (in thousands): Year Ended Amount 2020 $ 44 2021 110 2022 48 2023 210 2024 97 Thereafter 1,059 Total $ 1,568 Defined Contribution Plan The Company has a 401(k) profit sharing plan (“401(k) Plan”) for the benefit of qualified employees in the U.S. During the year ended January 3, 2020 employees who participate may elect to make salary deferral contributions to the 401(k) Plan up to $19,000 of the employees’ eligible payroll subject to annual Internal Revenue Code maximum limitations (with a $6,000 annual catch-up contribution permitted for those over 50 years old). The Company’s contribution percentage is 80% of the employee’s contribution up to the first 6% of the employee’s compensation. In addition, STAAR may make a discretionary contribution to qualified employees, in accordance with the 401(k) Plan. The Company’s contributions, net of forfeitures, to the 401(k) Plan were as follows (in thousands): Years Ended 2019 2018 2017 Employer contributions, net of forfeitures $ 1,279 $ 996 $ 764 |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Jan. 03, 2020 | |
Stockholders Equity Note [Abstract] | |
Stockholders' Equity | Note 12 — Stockholders’ Equity Incentive Plan The Amended and Restated Omnibus Equity Incentive Plan (“the Plan”) provides for various forms of stock-based incentives. To date, of the available forms of awards under the Plan, the Company has granted only stock options, restricted stock, unrestricted share grants, and restricted stock units (“RSUs”). Options under the Plan are granted at fair market value on the date of grant, become exercisable generally over a three-year Stock-Based Compensation There was no net income tax benefit recognized in the Consolidated Statements of Operations for stock-based compensation expense for non-qualified stock options, as the Company fully offsets net deferred tax assets with a valuation allowance (see Note 10). The Company does not recognize deferred income taxes for incentive stock option compensation expense, and records a tax deduction only when a disqualified disposition has occurred (see Note 10). Note 12 — Stockholders’ Equity (Continued) Stock-Based Compensation (Continued) The following table Fair Value Stock options $ 14,813 Restricted stock units 728 Restricted stock 313 Total stock-based compensation expense $ 15,854 The cost that has been charged against income for stock-based compensation is set forth below (in thousands): Years Ended 2019 2018 2017 Employee stock option $ 8,144 $ 4,013 $ 1,731 Restricted stock 320 274 186 Restricted stock units 1,905 2,120 1,226 Nonemployee stock options 178 355 18 Total stock-based compensation expense $ 10,547 $ 6,762 $ 3,161 The Company recorded stock-based compensation expense in the following categories (in thousands): Years Ended 2019 2018 2017 Cost of sales $ 52 $ 15 $ 8 General and administrative 4,010 2,635 1,487 Marketing and selling 3,318 1,805 805 Research and development 3,167 2,307 861 Total stock-based compensation expense, net 10,547 6,762 3,161 Amounts capitalized as part of inventory 1,017 637 372 Total stock-based compensation expense, gross $ 11,564 $ 7,399 $ 3,533 As of January 3, 2020, total unrecognized compensation cost related to non-vested stock-based compensation arrangements granted under the Plan were as follows (in thousands): 2019 Stock options $ 14,817 Restricted stock and restricted stock units 594 Total unrecognized stock-based compensation cost $ 15,411 This cost is expected to be recognized over a weighted-average period of approximately two years. Note 12 — Stockholders’ Equity (Continued) Assumptions The fair value of each option award is estimated on the date of grant using a Black-Scholes option valuation model applying the weighted-average assumptions noted in the following table. Expected volatilities are based on historical volatility of the Company’s stock. The expected term of options granted is derived from the historical exercises and post-vesting cancellations, and represents the period of time that options granted are expected to be outstanding. The Company has calculated an 8% estimated forfeiture rate based on historical forfeiture experience. The risk-free rate is based on the U.S. Treasury yield curve corresponding to the expected term at the time of the grant. Years Ended 2019 2018 2017 Expected dividend yield 0 % 0 % 0 % Expected volatility 53 % 53 % 57 % Risk-free interest rate 2.40 % 2.71 % 1.96 % Expected term (in years) 5.66 5.72 5.67 Stock Options A summary of option activity under the Plan for the year ended January 3, 2020 is presented below: Shares (in 000’s) Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term (years) Aggregate Intrinsic Value (in 000’s) Outstanding at December 28, 2018 3,920 $ 11.80 Granted 824 35.40 Exercised (388 ) 8.92 Forfeited or expired (30 ) 25.87 Outstanding at January 3, 2020 4,326 $ 16.46 6.51 $ 78,995 Exercisable at January 3, 2020 3,047 $ 10.66 5.54 $ 72,393 A summary of unvested options activity under the Plan for the year ended January 3, 2020 was as follows: Shares (in 000’s) Weighted- Average Grant-Date Fair Value Unvested at December 28, 2018 1,260 $ 9.67 Granted 824 17.95 Forfeited or expired (30 ) 13.29 Vested (775 ) 8.83 Unvested at January 3, 2020 1,279 $ 15.44 Note 12 — Stockholders’ Equity (Continued) Stock Options (Continued) The weighted average grant date fair value of options granted and the total intrinsic value of options exercised were as follows: Years Ended 2019 2018 2017 Weighted-average grant-date fair value $ 17.95 $ 11.95 $ 5.42 Intrinsic value of options (in thousands) $ 9,955 $ 13,699 $ 3,065 Restricted Stock A summary of restricted stock activity under the Plan for the year ended January 3, 2020 was as follows: Shares (in 000’s) Weighted- Average Grant- Date Fair Value Outstanding at December 28, 2018 11 $ 29.80 Granted 11 29.39 Vested (11 ) 29.80 Outstanding at January 3, 2020 11 $ 29.39 Restricted Stock Units A summary of restricted stock units’ activity under the Plan for the year ended January 3, 2020 was as follows: Units (in 000’s) Weighted- Average Grant- Date Fair Value Outstanding at December 28, 2018 322 $ 10.46 Granted 19 37.98 Vested (229 ) 12.58 Forfeited or expired (8 ) 11.57 Outstanding at January 3, 2020 104 $ 10.79 Stock Offering On August 10, 2018, the Company closed an offering of its common stock. As part of this transaction, the Company issued 1,999,850 shares of its common stock at a price of $36.309 per share. Net proceeds, after deducting expenses, received from this offering were $72,150,000. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Jan. 03, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 13 — Commitments and Contingencies Asset Retirement Obligation The Company recorded certain Asset Retirement Obligations (“ARO”), in accordance with ASC 410-20 in connection with the Company’s obligation to return its Japan facility to its “original condition”, as defined in the lease agreement. The Company has recorded approximately $211,000 and $206,000, representing the fair value of the ARO liability obligation in noncurrent liabilities at January 3, 2020 and December 28, 2018, respectively. The lease was renewed for another two years expiring in 2021. Open Purchase Orders and Severance Payable As of January 3, 2020, there were open purchase orders of $13,450,000 and severance payable of $10,000. Indemnification Agreements The Company has entered into indemnification agreements with its directors and officers that may require the Company: (a) to indemnify them against liabilities that may arise by reason of their status or service as directors or officers, except as prohibited by applicable law; (b) to advance their expenses incurred as a result of any proceeding against them as to which they could be indemnified; and (c) to make a good faith determination whether or not it is practicable for the Company to obtain directors’ and officers’ insurance. The Company currently has directors’ and officers’ liability insurance through a third-party carrier. Also, in connection with the sale of products and entering into business relationships in the ordinary course of business, the Company may make representations affirming, among other things, that its products do not infringe on the intellectual property rights of others and agrees to indemnify customers against third-party claims for such infringement as well as its negligence. The Company has not been required to make material payments under such provisions. Tax Filings The Company’s tax filings are subject to audit by taxing authorities in jurisdictions where it conducts business. These audits may result in assessments of additional taxes that are subsequently resolved with the authorities or potentially through the courts. Management believes the Company has adequately provided for taxes; however, final assessments, if any, could be significantly different than the amounts recorded in the consolidated financial statements. Employment Agreements The Company’s Chief Executive Officer entered into an employment agreement with the Company, effective March 1, 2015. She and certain officers have as provisions of their agreements certain rights, including continuance of cash compensation and benefits, upon a “change in control,” which may include an acquisition of substantially all its assets, or termination “without cause or for good reason” as defined in the employment agreements. Litigation and Claims From time to time, the Company is involved in various legal proceedings and other matters arising in the normal course of business. These legal proceedings and other matters may relate to, among other things, contractual rights and obligations, employment matters, or claims of product liability. STAAR maintains insurance coverage for various matters, including product liability and certain securities claims. While the Company does not believe that any of the claims known is likely to have a material adverse effect on the Company’s financial condition or results of operations, new claims or unexpected results of existing claims could lead to significant financial harm. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Jan. 03, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 14 — Related Party Transactions The Company has made various advances to certain non-executive employees. Amounts due from employees are included in prepayments, deposits, and other current assets at January 3, 2020 and December 28, 2018 were as follows (in thousands): 2019 2018 Due from employees $ 1 $ 10 |
Supplemental Disclosure of Cash
Supplemental Disclosure of Cash Flow Information | 12 Months Ended |
Jan. 03, 2020 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Disclosure of Cash Flow Information | Note 15 — Supplemental Disclosure of Cash Flow Information The Company’s non-cash operating activities, non-cash investing and financing activities, and cash paid were as follows (in thousands): Years Ended 2019 2018 2017 Non-cash operating activities: Insurance receivable $ — $ — $ 7,000 Settlement liability $ — $ — $ 7,000 Non-cash investing and financing activities: Right-of-use-assets obtained in exchange for new finance lease liabilities $ 679 $ 1,656 $ 563 Purchase of property and equipment included in accounts payable $ 381 $ 207 $ 121 Cash paid: Interest $ 105 $ 130 $ 90 Taxes $ 792 $ 635 $ 881 |
Basic and Diluted Net Income (L
Basic and Diluted Net Income (Loss) Per Share | 12 Months Ended |
Jan. 03, 2020 | |
Earnings Per Share [Abstract] | |
Basic and Diluted Net Income (Loss) Per Share | Note 16 — Basic and Diluted Net Income (Loss) Per Share The following table sets forth the computation of basic and diluted net income (loss) per share (in thousands except per share amounts): Years Ended 2019 2018 2017 Numerator: Net income (loss) $ 14,048 $ 4,968 $ (2,139 ) Denominator: Weighted average common shares: Common shares outstanding 44,504 42,598 41,025 Less: Unvested restricted stock (11 ) (11 ) (21 ) Denominator for basic calculation 44,493 42,587 41,004 Weighted average effects of potentially diluted common stock: Stock options 2,254 2,360 — Unvested restricted stock 6 10 — Restricted stock units 142 300 — Denominator for diluted calculation 46,895 45,257 41,004 Net income (loss) per share: Basic $ 0.32 $ 0.12 $ (0.05 ) Diluted $ 0.30 $ 0.11 $ (0.05 ) Note 16 — Basic and Diluted Net Income (Loss) Per Share (Continued) Because the Company had a net loss for the year ended 2017, the number of diluted shares is equal to the number of basic shares. Outstanding options, restricted stock and restricted stock units would have had an anti-dilutive effect on diluted per share amounts. The following table sets forth (in thousands) the weighted average number of options to purchase shares of common stock, restricted stock, and restricted stock units with either exercise prices or unrecognized compensation cost per share greater than the average market price per share of the Company’s common stock, which were not included in the calculation of diluted per share amounts because the effects would be anti-dilutive. Years Ended 2019 2018 2017 Stock options 1,503 315 2,237 Restricted stock and restricted stock units — — 203 Total 1,503 315 2,440 |
Disaggregation of Revenues, Geo
Disaggregation of Revenues, Geographic Sales and Product Sales | 12 Months Ended |
Jan. 03, 2020 | |
Segment Reporting [Abstract] | |
Disaggregation of Revenues, Geographic Sales and Product Sales | Note 17 — Disaggregation of Revenues, Geographic Sales and Product Sales In the following tables, revenues are disaggregated by category, sales by geographic market and sales by product data. The following breaks down revenues into the following categories (in thousands): Years Ended 2019 2018 2017 Non-consignment sales $ 132,716 $ 106,338 $ 74,163 Consignment sales 17,469 17,616 16,448 Total net sales $ 150,185 $ 123,954 $ 90,611 The Company markets and sells its products in more than 75 countries and conducts its manufacturing in the United States. Other than China and Japan, the Company does not conduct business in any country in which its sales in that country exceed 10% of consolidated net sales. Sales are attributed to countries based on location of customers. The composition of the Company’s net sales to unaffiliated customers was as follows (in thousands): Years Ended 2019 2018 2017 Domestic $ 8,106 $ 7,316 $ 7,894 Foreign: China (1) 64,820 46,070 24,473 Japan 26,881 23,151 18,125 Other (2) 50,378 47,417 40,119 Total foreign sales 142,079 116,638 82,717 Total net sales $ 150,185 $ 123,954 $ 90,611 (1) The China region includes sales into China and Hong Kong. (2) No other location individually exceeds 10% of the total net sales. Note 17 — Disaggregation of Revenues, Geographic Sales and Product Sales (Continued) 100% of the Company’s sales are generated from the ophthalmic surgical product segment and the chief operating decision maker makes the operating decisions and allocates resources based upon the consolidated operating results, therefore, the Company operates as one operating segment for financial reporting purposes. The Company’s principal products are IOLs used in cataract surgery and ICLs used in refractive surgery. The composition of the Company’s net sales by product line was as follows (in thousands): Years Ended 2019 2018 2017 ICLs $ 129,322 $ 101,082 $ 68,325 Other product sales IOLs 15,689 16,193 17,258 Other surgical products 5,174 6,679 5,028 Total other product sales 20,863 22,872 22,286 Total net sales $ 150,185 $ 123,954 $ 90,611 The Company sells its products internationally, which subjects the Company to several potential risks, including fluctuating exchange rates (to the extent the Company’s transactions are not in U.S. dollars), regulation of fund transfers by foreign governments, U.S. and foreign export and import duties and tariffs, and political instability |
Geographic Assets
Geographic Assets | 12 Months Ended |
Jan. 03, 2020 | |
Segment Reporting [Abstract] | |
Geographic Assets | Note 18 —Geographic Assets The composition of the Company’s long-lived assets between those in the U.S., Japan and Switzerland is set forth below as of January 3, 2020 and December 28, 2018 (in thousands): 2019 U.S. Japan Switzerland Total Property, plant and equipment, net $ 14,956 $ 306 $ 1,803 $ 17,065 Finance lease ROU assets, net 1,756 80 31 1,867 Operating lease ROU assets, net 2,920 919 2,845 6,684 Intangible assets, net 83 213 — 296 Total $ 19,715 $ 1,518 $ 4,679 $ 25,912 2018 U.S. Japan Switzerland Total Property, plant and equipment, net $ 10,416 $ 330 $ 705 $ 11,451 Finance lease ROU assets, net — — — — Operating lease ROU assets, net — — — — Intangible assets, net — 243 — 243 Total $ 10,416 $ 573 $ 705 $ 11,694 |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Jan. 03, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data (Unaudited) | Note 19 — Summary unaudited quarterly financial data from continuing operations for years ended 2019 and 2018 was as follows (in thousands except per share data). The Company has derived this data from the unaudited consolidated interim financial statements that, in the Company’s opinion, have been prepared on substantially the same basis as the audited financial statements contained elsewhere in this report and include all normal recurring adjustments necessary for a fair presentation of the financial information for the periods presented. These unaudited quarterly results should be read in conjunction with the financial statements and notes thereto included elsewhere in this report. The operating results in any quarter are not necessarily indicative of the results that may be expected for any future period. January 3, 2020 1 st 2 nd 3 rd 4 th Net sales $ 32,583 $ 39,664 $ 39,055 $ 38,883 Gross profit 24,180 29,899 29,051 28,824 Net income 1,367 3,914 2,388 6,379 Net income per share – basic 0.03 0.09 0.05 0.14 Net income per share – diluted 0.03 0.08 0.05 0.14 December 28, 2018 1 st 2 nd 3 rd 4 th Net sales $ 27,093 $ 33,905 $ 31,770 $ 31,186 Gross profit 19,431 25,227 23,860 22,992 Net income (loss) 583 1,830 1,459 1,096 Net income per share – basic 0.01 0.04 0.03 0.02 Net income per share – diluted 0.01 0.04 0.03 0.02 Quarterly and year-to-date computations of net income per share amounts are made independently. Therefore, the sum of the per share amounts for the quarters may not agree with the per share amounts for the year. |
Reclassifications
Reclassifications | 12 Months Ended |
Jan. 03, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Reclassifications | Note 20 – Reclassifications Computer equipment and software was reclassed into a separate line item from furniture and fixtures and construction in process was reclassed into a separate line item from machinery and equipment in Note 5 for 2018 to conform to 2019 presentation. |
SCHEDULE II - VALUATION AND QUA
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS AND RESERVES | 12 Months Ended |
Jan. 03, 2020 | |
Valuation And Qualifying Accounts [Abstract] | |
Schedule of Valuation and Qualifying Accounts and Reserves | SCHEDULE II — VALUATION AND QUALIFYING ACCOUNTS AND RESERVES Column A Column B Column C - Additions Column D Column E Description Balance at Beginning of Year Charged to costs and expenses Charged to other accounts Deductions Balance at End of Year (in thousands) 2019 Allowance for doubtful accounts $ 550 $ (320 ) $ — $ 142 $ 88 Sales return reserve 2,895 6,183 — 5,434 3,644 Deferred tax asset valuation allowance 43,075 (5,259 ) — 213 37,603 $ 46,520 $ 604 $ — $ 5,789 $ 41,335 2018 Allowance for doubtful accounts $ 349 $ 207 $ — $ 6 $ 550 Sales return reserve 2,182 5,474 — 4,761 2,895 Deferred tax asset valuation allowance 40,656 2,534 — 115 43,075 $ 43,187 $ 8,215 $ — $ 4,882 $ 46,520 2017 Allowance for doubtful accounts $ 276 $ 81 $ — $ 8 $ 349 Sales return reserve 1,780 4,313 — 3,911 2,182 Deferred tax asset valuation allowance 57,446 2,253 — 19,043 40,656 $ 59,502 $ 6,647 $ — $ 22,962 $ 43,187 |
Organization and Description _2
Organization and Description of Business and Accounting Policies (Policies) | 12 Months Ended |
Jan. 03, 2020 | |
Accounting Policies [Abstract] | |
Organization And Description Of Business | Organization and Description of Business STAAR Surgical Company and subsidiaries (the “Company”), a Delaware corporation, was first incorporated in 1982 for the purpose of developing, producing, and marketing implantable lenses for the eye and delivery systems used to deliver the lenses into the eye. Principal products are implantable Collamer lenses (“ICLs”) and intraocular lenses (“IOLs”). ICLs, consisting of the Company’s ICL family of products, including the Toric implantable Collamer lenses (“TICL”) and EVO+ Visian ICL, are intraocular lenses used to correct refractive conditions such as myopia (near-sightedness), hyperopia (far-sightedness) and astigmatism. IOLs are prosthetic intraocular lenses used to restore vision that has been adversely affected by cataracts, and include the Company’s lines of silicone IOLs and the Preloaded Injector (a silicone or acrylic IOL preloaded into a single-use disposable injector). As of January 3, 2020, the Company’s significant subsidiaries consisted of: • STAAR Surgical AG, a wholly owned subsidiary formed in Switzerland that markets and distributes ICLs and Preloaded IOLs. • STAAR Japan, a wholly owned subsidiary that markets and distributes Preloaded IOLs and ICLs. The Company operates as one operating segment, the ophthalmic surgical market, for financial reporting purposes (see Note 17). |
Principles of Consolidation | Principles of Consolidation The accompanying consolidated financial statements include the accounts of STAAR Surgical Company and its wholly-owned subsidiaries and have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). All significant intercompany balances and transactions have been eliminated. Certain reclassifications have been made to financial statements of prior years to conform to the current year presentation (see Note 20). |
Fiscal Year and Interim Reporting Periods | Fiscal Year and Interim Reporting Periods The Company’s fiscal year ends on the Friday nearest December 31 and each of the Company’s quarterly reporting periods generally consists of 13 weeks. Fiscal year 2019 is based on a 53-week period and fiscal years 2018 and 2017 are based on a 52-week period. |
Foreign Currency | Foreign Currency The functional currency of the Company’s Japanese subsidiary, STAAR Japan, Inc., is the Japanese yen. The functional currency of the Company’s Swiss subsidiary, STAAR Surgical AG, is the U.S. dollar. Assets and liabilities of the Company’s Japanese subsidiary are translated at rates of exchange in effect at the close of the period. Sales and expenses are translated at the weighted average of exchange rates in effect during the period. Net foreign translation gain (loss) was as follows (in thousands): Years Ended 2019 2018 2017 Foreign currency translation gain (1) $ 291 $ 242 $ 387 Gain (loss) on foreign currency transactions (2) (517 ) (836 ) 819 (1) (2) |
Use of Estimates | Use of Estimates The consolidated financial statements have been prepared in conformity with GAAP and, as such, include amounts based on significant estimates and judgments of management with consideration given to materiality. Significant estimates used include determining valuation allowances for uncollectible trade receivables, sales returns reserves, obsolete and excess inventory reserves, deferred income taxes, and tax reserves, including valuation allowances for deferred tax assets, pension liabilities, evaluation of asset impairment, in determining the useful life of depreciable and definite-lived intangible assets, and in the variables and assumptions used to calculate and record stock-based compensation. Actual results could differ materially from those estimates. |
Cash and Cash Equivalents and Restricted Cash | Cash and Cash Equivalents and Restricted Cash The Company considers all highly liquid investments purchased with a maturity of three months or less to be cash equivalents. The Company maintains cash deposits with major banks which from time to time may exceed federally insured limits. The Company periodically assesses the financial condition of the institutions and believes that the risk of any loss is minimal. The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the Consolidated Balance Sheets that sum to the total of the same such amounts shown in the Consolidated Statements of Cash Flows at January 3, 2020, December 28, 2018 and December 29, 2017 (in thousands): 2019 2018 2017 Cash and cash equivalents $ 119,968 $ 103,877 $ 18,520 Restricted cash (1) — 122 121 Total cash, cash equivalents and restricted cash $ 119,968 $ 103,999 $ 18,641 (1) The Company had restricted cash set aside as collateral for a standby letter of credit required by the California Department of Public Health for unforeseen future regulatory costs related to the decommissioning of certain manufacturing equipment. Since the quarter ended June 28, 2019, the Company was no longer required to set aside collateral for this standby letter of credit. |
Revenue Recognition | Revenue Recognition On December 30, 2017 (beginning of fiscal year 2018), the Company adopted Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) 2014-09, “Revenue from Contracts with Customers (Topic 606)” and its subsequent amendments, using the modified retrospective method, and determined that there was no cumulative effect adjustment on the Consolidated Financial Statements. The Company determined that the adoption of the new standard did not materially impact the revenue recognition on its Consolidated Financial Statements. Revenue recognition for 2017 continue to be in accordance with Topic 605. The Company recognizes revenue when its contractual performance obligations with customers are satisfied. The Company’s performance obligations are generally limited to single sales orders with product shipping to the customer within a month of receipt of the sales order. Substantially all of the Company’s revenues are recognized at a point-in-time when control of its products transfers to the customer, which is typically upon shipment (as discussed below). The Company presents sales tax and similar taxes it collects from its customers on a net basis (excluded from revenues). Note 1 — Organization and Description of Business and Accounting Policies (Continued) Revenue Recognition (Continued) The Company sells certain injector parts to an unrelated customer and supplier (collectively referred to as “supplier”) whereby these injector part sales are either made as a final sale to the supplier or, are sold to be combined with an acrylic IOL by the supplier into finished goods inventory (a preloaded acrylic IOL). These finished goods are then sold back to the Company at an agreed upon, contractual price. The Company makes a profit margin on either type of sale with the supplier and each type of sale is made under separate purchase and sales orders between the two parties resulting in cash settlement for the orders sold or repurchased. For parts that are sold as a final sale, the Company recognizes a sale and those sales are classified as other product sales in total net sales. For the injector parts that are sold to be combined with an acrylic IOL into finished goods, the Company records the transaction at its carrying value deferring any profit margin as contra-inventory, until the finished goods inventory is sold to an end-customer (not the supplier) at which point the Company recognizes revenues. For all sales, the Company is considered the principal in the transaction as the Company is the party providing specified goods it has control over prior to when control is transferred to the customer. Cost of sales includes cost of production, freight and distribution, and inventory provisions, net of any purchase discounts. Shipping and handling activities that occur after the customer obtains control of the goods are recognized as fulfillment costs. The Company disaggregates its revenue into the following categories: non-consignment sales and consignment sales. Non-consignment Sales The Company recognizes revenue from non-consignment product sales at a point-in-time when control has been transferred, which is typically at shipping point, except for certain customers and for the Company’s STAAR Japan subsidiary, which is typically recognized when the customer receives the product. The Company does not have significant deferred revenues as of January 3, 2020, December 28, 2018 and December 29, 2017, as delivery to the customer is generally made within the same or the next day of shipment. The Company also enters into certain strategic cooperation agreements with customers in which, as consideration for certain commitments made by the customer, including minimum purchase commitments, the Company agrees, among other things, to pay for marketing, educational training and general support of the Company’s products. The provisions in these arrangements allow for these payments to be made directly to the customer or payments can be made directly to a third party for distinct marketing, educational training and general support services provided to or on behalf of the customer by the third party. For payments the Company makes to another party, or reimburses the customer for distinct marketing and support services, the Company recognizes these payments as sales and marketing expense as incurred in accordance with ASC 606-10-32-25. These strategic cooperation agreements are generally for periods of 12 months or more with quarterly minimum purchase commitments. The Company recognizes sales and marketing expenses in the period in which it expects the customer will achieve its minimum purchase commitment, generally quarterly, and any unpaid amounts are recorded in Other Current Liabilities in “Other” on the Consolidated Balance Sheets, see Note 7. Reimbursements made directly to the customer for general marketing incentives are treated as a reduction in revenues. The Company’s performance obligations generally occur in the same quarter as the shipment of product. Sales and marketing expenses for distinct services were as follows (in thousands): Years Ended 2019 2018 2017 Marketing and support services related to strategic cooperation agreements $ 485 $ 629 $ 120 Note 1 — Organization and Description of Business and Accounting Policies (Continued) Revenue Recognition (Continued) Non-consignment Sales (Continued) Since the payments for distinct or non-distinct services occur within the quarter corresponding with the purchases made by the customer and the shipments made by the Company to that customer, there is no remaining performance obligation by the Company to the customer. Accordingly, there are no deferred revenues associated with these types of arrangements as of January 3, 2020, December 28, 2018 and December 29, 2017. Consignment Sales The Company’s products are marketed to ophthalmic surgeons, hospitals, ambulatory surgery centers or vision centers, and distributors. IOLs and ICLs may be offered to surgeons and hospitals on a consignment basis. The Company maintains title and risk of loss on consigned inventory and recognizes revenue for consignment inventory at a point-in-time when the Company is notified that the lenses have been implanted, thus completing the performance obligation. See Note 17 for additional information on disaggregation of revenues, geographic sales information and product sales. |
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts The Company performs ongoing credit evaluations of its customers and adjusts credit limits based on customer payment history and credit worthiness, as determined by the Company’s review of its customers’ current credit information. The Company continuously monitors collections and payments from customers and maintains a provision for estimated credit losses and uncollectible accounts based upon its historical experience and any specific customer collection issues that have been identified. Amounts determined to be uncollectible are written off against the allowance for doubtful accounts. |
Concentration of Credit Risk and Revenues | Concentration of Credit Risk and Revenues Financial instruments that potentially subject the Company to credit risk principally consist of trade receivables. This risk is limited due to the large number of customers comprising the Company’s customer base, and their geographic dispersion. As of January 3, 2020 and December 28, 2018, there was one customer who accounted for 43% and 36% of the Company’s consolidated trade receivables, respectively. Ongoing credit evaluations of customers’ financial condition are performed and, generally, no collateral is required. The Company maintains reserves for potential credit losses and such losses, taken together, have not exceeded management’s expectations. There was one customer who accounted for 43%, 37% and 27% of the Company’s consolidated net sales for the years ended 2019, 2018 and 2017, respectively. |
Sales Return Reserve | Sales Return Reserve The Company generally may permit returns of product if the product, upon issuance of a Return Goods Authorization, is returned within the time allowed by its return policies and records an allowance for estimated returns at the time revenue is recognized. The Company’s allowance for estimated returns considers historical trends and experience, the impact of new product launches, the entry of a competitor, availability of timely and pertinent information and the various terms and arrangements offered, including sales with extended credit terms. For estimated returns, sales are reported net of estimated returns and cost of sales are reported net of estimated returns that can be resold. On the Consolidated Balance Sheets, the balances associated for estimated sales returns were as follows (in thousands): 2019 2018 Estimated returns - inventory (1) $ 869 $ 722 Allowance for sales returns 3,644 2,895 (1) |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. To increase the comparability of fair value measures, the following hierarchy prioritizes the inputs to valuation methodologies used to measure fair value (ASC 820-10-50): • Level 1 – Inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. • Level 2 – Inputs to the valuation methodology include quoted prices for similar assets or liabilities in active markets, and inputs that are observable for the assets or liability, either directly or indirectly, for substantially the full term of the financial instruments. • Level 3 – Inputs to the valuation methodology are unobservable; that reflect management’s own assumptions about the assumptions market participants would make and significant to the fair value. The carrying values reflected on the Consolidated Balance Sheets for cash and cash equivalents, trade accounts receivable, net, prepayments, deposits and other current assets, accounts payable, other current liabilities and line of credit approximate their fair values because of the short maturity of these instruments. |
Inventories, Net | Inventories, Net Inventories, net are valued at the lower of cost, determined on a first-in, first-out basis, or net realizable value. Inventories include the costs of raw material, labor, and manufacturing overhead, work in process and finished goods. Inventories also include as a contra item, deferred margins for certain injector parts described under the revenue recognition policy. The Company provides estimated inventory allowances for excess, expiring, slow moving and obsolete inventory as well as inventory whose carrying value is in excess of net realizable value to properly reflect inventory at the lower of cost or market. |
Property, Plant, and Equipment | Note 1 — Property, Plant, and Equipment Property, plant, and equipment are recorded at cost. Depreciation on property, plant, and equipment is computed using the straight-line method over the estimated useful lives of the assets as noted below. Leasehold improvements are amortized over the lesser of the estimated useful lives of the assets or the related lease term. Major improvements are capitalized and minor replacements, maintenance and repairs are charged to expense as incurred. Also included in property, plant and equipment is construction in process. Construction in process includes the cost of design plans and build out of facilities and the cost of equipment, as well as the direct costs incurred in the testing and validation of machinery and equipment and facilities before they are ready for productive use. Upon placement in service, costs are reclassified into the appropriate asset category and depreciation commences The estimated useful lives of assets are as follows: Machinery and equipment 5-10 years Computer equipment and software 2-5 years Furniture and equipment 3-7 years Leasehold improvements The shorter of the useful life of the asset or the term of the associated lease |
Goodwill | Goodwill Goodwill, which has an indefinite life, is not amortized but instead is tested for impairment on an annual basis or between annual tests if an event occurs or circumstances change that would indicate the carrying amount may be impaired. Impairment testing for goodwill is done at the reporting unit level. Reporting units can be one level below the operating segment level, and can be combined when reporting units within the same operating segment have similar economic characteristics. The Company has determined that its reporting units have similar economic characteristics, and therefore, can be combined into one reporting unit for the purposes of goodwill impairment testing. The Company performed its annual impairment test and determined that its goodwill was not impaired. As of January 3, 2020 and December 28, 2018, the carrying value of goodwill was $1,786,000. |
Long-Lived Assets | Long-Lived Assets The Company reviews property, plant, and equipment and intangible assets, excluding goodwill, for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. The Company measures recoverability of these assets by comparing the carrying value of such assets to the estimated undiscounted future cash flows the assets are expected to generate. When the estimated undiscounted future cash flows are less than their carrying amount, an impairment loss is recognized equal to the difference between the assets’ fair value and their carrying value. A review of long-lived assets was conducted as of January 3, 2020 and December 28, 2018 and no impairment was identified. Amortization is computed on the straight-line basis, which is the Company’s best estimate of the economic benefits realized over the estimated useful lives of the assets which range from 3 to 20 years for patents, certain acquired rights and licenses, 10 years for customer relationships, and 3 to 10 years for developed technology. |
Lease Accounting | Note 1 — Lease Accounting On December 29, 2018 (beginning of fiscal year 2019), the Company adopted FASB ASU 2016-02, “Leases (Topic 842)” and its subsequent amendments affecting the Company: (i) ASU 2018-10, “Codification Improvements to Topic 842, Leases,” and (ii) ASU 2018-11, “Leases (Topic 842): Targeted improvements,” using the modified retrospective method. Upon adoption of Topic 842, the Company recognized a cumulative adjustment of $113,000 which decreased the accumulated deficit and recognized right-of-use (“ROU”) assets and lease liabilities for operating leases, whereby the Company’s accounting finance leases remained substantially unchanged. The Company recognizes ROU assets and lease liabilities for leases with terms greater than twelve months in the Consolidated Balance Sheets. Leases are classified as either finance or operating, with classification affecting the pattern of expense recognition in the Consolidated Statement of Income. A contract contains a lease if the contract conveys the right to control an identified asset for a period of time in exchange for consideration. An asset is either explicitly identified or implicitly identified and must be physically distinct. In addition, the Company must have both the right to obtain substantially all of the economic benefits from use of the identified asset and has the right to direct the use of the identified asset. Certain leases may have non-lease components such as common area maintenance expense for building leases and maintenance expenses for automobile leases. In general, the Company separates common area maintenance expense component from the value of the ROU asset and lease liability when evaluating rental properties under Topic 842, whereas, the Company includes the maintenance and service components in the value of the ROU asset and lease liability while evaluating automobile leases under Topic 842. When determining whether a lease is a finance lease or an operating lease, Topic 842 does not specifically define criteria to determine “major part of remaining economic life of the underlying asset” and “substantially all of the fair value of the underlying asset.” For lease classification determination, the Company continues to use (i) greater than or equal to 75% to determine whether the lease term is a major part of the remaining economic life of the underlying asset and (ii) greater than or equal to 90% to determine whether the present value of the sum of lease payments is substantially all of the fair value of the underlying asset. The Company uses either the rate implicit in the lease or its incremental borrowing rate as the discount rate in lease accounting. When adopting Topic 842, the Company did not reassess any expired or existing contracts, reassess the lease classification for any expired or existing leases and reassess initial direct costs for exiting leases. The Company also elected not to capitalize leases that have terms of twelve months or less. The Company reviews ROU assets, for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. The Company measures recoverability of these assets by comparing the carrying value of such assets to the estimated undiscounted future cash flows the assets are expected to generate. When the estimated undiscounted future cash flows are less than their carrying amount, an impairment loss is recognized equal to the difference between the assets’ fair value and their carrying value. |
Vendor Concentration | Note 1 — Vendor Concentration As of January 3, 2020 there was one vendor who accounted for over 11% of the Company’s consolidated accounts payable. As of December 28, 2018, there were no vendors who accounted for 10% of the Company’s consolidated accounts payable. There were no vendors who accounted for over 10% of the Company’s consolidated purchases for the years ended 2019 and 2017. There was one vendor who accounted for over 10% of the Company’s consolidated purchases for the year ended 2018. |
Research and Development Costs | Research and Development Costs Expenditures for research activities relating to product development and improvement are charged to expense as incurred. |
Advertising Costs | Advertising Costs Advertising costs, which are included in marketing and selling expenses, are expensed as incurred, and were as follows (in thousands): Years Ended 2019 2018 2017 Advertising costs $ 10,990 $ 8,981 $ 6,102 |
Income Taxes | Income Taxes On December 22, 2017, the United States enacted major tax reform legislation, the 2017 Tax Act, which enacted a broad range of changes to the federal tax code. Key provisions that could have an impact on the Company’s Consolidated Financial Statements are the deemed repatriation of foreign earnings, the remeasurement of certain net deferred assets and other liabilities for the change in the U.S. corporate tax rate from 35 percent to 21 percent, and the elimination of the alternative minimum tax (“AMT”) which were included in the Company’s 2017 Consolidated Financial Statements. The Company applied the guidance in SAB 118 when accounting for the enactment-date effects of the 2017 Tax Act in 2017 and throughout 2018. At December 28, 2018, the Company has completed its accounting for all the enactment-date income tax effects of the Tax Act. Beginning in 2017, the 2017 Tax Act subjects a U.S. shareholder to tax on Global Intangible Low Tax Income (“GILTI”) earned by certain foreign subsidiaries. In January 2018, the FASB released guidance (Staff Q&A Topic 740, No. 5) on the accounting for tax on the GILTI provisions of the 2017 Tax Act. In general, GILTI is the excess of a U.S. shareholder’s total net foreign income over a deemed return on tangible assets. The provision further allows a deduction of 50 percent of GILTI, however this deduction is limited by the Company’s net operating loss carryforwards. In addition, Staff Q&A Topic 740, No. 5 states that an entity can make an accounting policy election to either recognize deferred taxes for temporary basis differences expected to reverse as GILTI in future years or to provide for the tax expense related to GILTI in the year the tax is incurred as a period expense only. The Company has elected to account for GILTI as a current period expense when incurred. Note 1 — Income Taxes (Continued) The Company recognizes the income tax benefit from an uncertain tax position when it is more likely than not that, based on technical merits, the position will be sustained upon examination, including resolutions of any related appeals or litigation processes. The amount of tax benefit recorded, if any, is limited to the amount that is greater than 50 percent likely to be realized upon settlement with the taxing authority (that has full knowledge of all relevant information). Accrued interest, if any, related to uncertain tax positions is included as a component of income tax expense, and penalties, if incurred, are recognized as a component of operating income or loss. The Company does not have any uncertain tax positions as of any of the periods presented. The Company did not incur significant interest and penalties for any period presented. The Company recognizes deferred tax assets and liabilities for temporary differences between the financial reporting basis and the tax basis of the Company’s assets and liabilities, net operating loss and credit carryforwards, and uncertainty in income taxes, on a jurisdiction-by-jurisdiction basis. In evaluating the Company’s ability to recover the deferred tax assets within a jurisdiction from which they arise, management considers all available positive and negative evidence, including scheduled reversals of deferred tax liabilities, projected future taxable income, tax-planning strategies, and results of recent operations. In projecting future taxable income, the Company begins with historical results and incorporates assumptions including overall current and projected business and industry conditions, the amount of future federal, state, and foreign pretax operating income, the reversal of temporary differences and the successful implementation of feasible and prudent tax-planning strategies. These assumptions require significant judgment about the forecasts of future taxable income and are consistent with the plans and estimates the Company uses to manage the underlying businesses. In evaluating the objective evidence that historical results provide, the Company considers three years of cumulative operating results. Valuation allowances, or reductions to deferred tax assets, are recognized if, based on the weight of all the available evidence, it is more likely than not that some portion or all the deferred tax asset may not be realized. The impact on deferred taxes of changes in tax rates and laws, if any, are applied to the years during which temporary differences are expected to be settled and reflected in the financial statements in the period of enactment. The Company has made a policy election to apply the incremental cash tax savings approach when analyzing the impact GILTI could have on its U.S. valuation allowance. As a result of future expected GILTI inclusions, and because of the Tax Act’s ordering rules, U.S. companies may now expect to utilize tax attribute carryforwards (e.g., net operating losses and deferred tax assets) for which a valuation allowance has historically been recorded (this is referred to as the “tax law ordering approach”). However, due to the mechanics of the GILTI rules, companies that have a GILTI inclusion may realize a reduced (or no) cash tax savings from utilizing such tax attribute carryforwards (this view is referred to as the “incremental cash tax savings approach”). |
Basic and Diluted Net Income (Loss) Per Share | Basic and Diluted Net Income (Loss) Per Share The Company has only one class of common stock and no participating securities which would require the two-class method of calculating basic earnings per share. Basic per share information is calculated by dividing net income (loss) by the weighted average number of shares outstanding, net of unvested restricted stock and unvested restricted stock units, during the period. Diluted per share information is calculated by dividing net income (loss) by the weighted average number of shares outstanding, adjusted for the effects of potentially dilutive common stock, which are comprised of outstanding warrants, stock options, unvested restricted stock, and restricted stock units, during the period, using the treasury-stock method (See Note 16). |
Employee Defined Benefit Plans | Employee Defined Benefit Plans The Company maintains a passive pension plan (the “Swiss Plan”) covering employees of its Swiss subsidiary. The Swiss Plan conforms to the features of a defined benefit plan. The Company also maintains a noncontributory defined benefit pension plan which covers substantially all the employees of STAAR Japan. The Company recognizes the funded status, or difference between the fair value of plan assets and the projected benefit obligations of the pension plan on the Consolidated Balance Sheets, with a corresponding adjustment to accumulated other comprehensive income (loss). If the projected benefit obligation exceeds the fair value of plan assets, then that difference or unfunded status represents the pension liability. The Company records a net periodic pension cost in the Consolidated Statements of Operations. The liabilities and annual income or expense of both plans are determined using methodologies that involve several actuarial assumptions, the most significant of which are the discount rate and the expected long-term rate of asset return (asset returns and fair-value of plan assets are applicable for the Swiss Plan only). The fair values of plan assets are determined based on prevailing market prices (see Note 11). |
Stock-Based Compensation | Stock-Based Compensation Stock-based compensation expense for all stock-based compensation awards granted is based on the grant-date fair value. The Company recognizes these compensation costs on a straight-line basis over the requisite service period of the award, which is generally the option vesting term of three to four years for executive officers and employees, and one year for members of its Board of Directors (the “Board”) (see Note 12). The Company also, at times, issues restricted stock to its executive officers, employees and the Board, which are restricted and unvested common shares issued at fair market value on the date of grant. For the restricted shares issued to the Board, the restricted stock vests over a one-year three-year The Company issues restricted stock units (“RSUs”) (see Note 12), which can have only a service condition or a performance contingent restricted stock award based upon the Company meeting certain internally established performance conditions that vest only if those conditions are met or exceeded and the grantee is still employed with the Company. Restricted stock unit compensation expense is recognized on a straight-line basis over the requisite service period. The Company recognizes compensation cost for the performance condition RSUs when the Company concludes that it is probable that the performance condition will be achieved, net of an estimate of pre-vesting forfeitures, over the requisite service period based on the grant-date fair value of the stock. The Company reassesses the probability of vesting at each reporting period and adjusts compensation cost based on its probability assessment. Once the RSUs are vested, equivalent common shares will be issued or issuable to the grantee and therefore the RSUs are not included in total common shares issued and outstanding until vested (see Notes 12 and 16). |
Comprehensive Income (Loss) | Comprehensive Income (Loss) The Company presents comprehensive income (loss) in the Consolidated Balance Sheets and the Consolidated Statements of Comprehensive Income (Loss). Total comprehensive income (loss) includes, in addition to the net income (loss), changes in equity that are excluded from the Consolidated Statements of Operations and are recorded directly into a separate section of stockholders’ equity on the Consolidated Balance Sheets. The following table summarizes the changes in the accumulated balances for each component of accumulated other comprehensive income (loss) attributable to the Company for the years ended January 3, 2020, December 28, 2018 and December 29, 2017 (in thousands): Foreign Currency Translation Defined Benefit Pension Plan – Japan Defined Benefit Pension Plan – Switzerland Accumulated Other Com- prehensive Income (Loss) Balance, at December 30, 2016 $ 11 $ 88 $ (1,149 ) $ (1,050 ) Other comprehensive income (loss) 387 (6 ) (406 ) (25 ) Tax effect (120 ) 6 39 (75 ) Balance, at December 29, 2017 278 88 (1,516 ) (1,150 ) Other comprehensive income (loss) 242 (107 ) (290 ) (155 ) Tax effect (74 ) 29 30 (15 ) Balance, at December 28, 2018 446 10 (1,776 ) (1,320 ) Other comprehensive income (loss) 291 34 (2,192 ) (1,867 ) Tax effect (86 ) (6 ) 231 139 Balance, at January 3, 2020 $ 651 $ 38 $ (3,737 ) $ (3,048 ) |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements and Recent Accounting Pronouncements Not Yet Adopted On December 29, 2018 (beginning of fiscal year 2019), the Company adopted ASU 2018-02, “Income Statement – Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income,” provides an option to reclassify stranded tax effects within Accumulated Other Comprehensive Income to retained earnings in each period in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Cuts and Jobs Act is recorded. The adoption of ASU 2018‑02 did not have material impact on the Consolidated Financial Statements. On December 29, 2018 (beginning of fiscal year 2019), the Company adopted ASU 2018-07, “Compensation-Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting,” aligns the accounting for share-based payments to nonemployees similar to employees. Upon the adoption of ASU 2018-07, the Company recognized a cumulative adjustment of $315,000 which decreased the accumulated deficit. Note 1 — Organization and Description of Business and Accounting Policies (Continued) Recently Adopted Accounting Pronouncements and Recent Accounting Pronouncements Not Yet Adopted (Continued) In June 2016, the FASB issued ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” which (i) significantly changes the impairment model for most financial assets that are measured at amortized cost and certain other instruments from an incurred loss model to an expected loss model; and (ii) provides for recording credit losses on available-for-sale debt securities through an allowance account. ASU 2016-13 also requires certain incremental disclosures. Subsequently, the FASB issued ASU 2018-19, ASU 2019-04 and ASU 2019-05 to clarify and improve ASU 2016-13. ASU 2016-13 is effective for fiscal years ending after December 15, 2019, including interim periods, within those fiscal years. The Company will adopt this standard as of January 4, 2020 (beginning of fiscal year 2020). The adoption of ASU 2016-13 is not expected to have a material impact on the Consolidated Financial Statements. In August 2018, the FASB issued ASU 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement,” which modifies certain disclosures requirements for reporting fair value measurements. ASU 2018-13 is effective for fiscal years beginning after December 15, 2019. Early adoption is permitted. The Company will adopt this standard as of January 4, 2020 (beginning of fiscal year 2020). The adoption of ASU 2018-13 is not expected to have a material impact on the Consolidated Financial Statements. In August 2018, the FASB issued ASU 2018-14, “Compensation – Retirement Benefits – Defined Benefit Plans – General (Subtopic 715-20); Disclosure Framework – Changes in the Disclosure Requirement for Defined Benefit Plans,” which modifies disclosure requirements for employers that sponsor defined benefit pension or other post retirement plans. This is effective for fiscal years ending after December 15, 2020. Early adoption is permitted. The Company will adopt this standard for fiscal year 2020 and is currently evaluating the disclosure requirements and its effect on the Consolidated Financial Statements. In December 2019, the FASB issued ASU 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes.” ASU 2019-12 removes the following exceptions: exception to the incremental approach for intraperiod tax allocation; exception to accounting for basis differences when there are ownership changes in foreign investments; and exception to interim period tax accounting for year to date losses that exceed anticipated losses. ASU 2019-12 also improves financial reporting for franchise taxes that are partially based on income; transactions with a government that result in a step up in the tax basis of goodwill; separate financial statements of legal entities that are not subject to tax; and enacted changes in tax laws in interim periods. ASU 2019-12 is effective for fiscal years beginning after December 15, 2020 and interim periods within those fiscal years. Early adoption is permitted. The Company will adopt this standard as of January 2, 2021 (beginning of fiscal year 2021) and is currently evaluating the disclosure requirements and its effect on the Consolidated Financial Statements. |
Organization and Description _3
Organization and Description of Business and Accounting Policies (Tables) | 12 Months Ended |
Jan. 03, 2020 | |
Accounting Policies [Abstract] | |
Schedule of Net Currency Foreign Translation Gain Loss | Net foreign translation gain (loss) was as follows (in thousands): Years Ended 2019 2018 2017 Foreign currency translation gain (1) $ 291 $ 242 $ 387 Gain (loss) on foreign currency transactions (2) (517 ) (836 ) 819 (1) (2) |
Schedule of Reconciliation of Cash And Cash Equivalents And Restricted Cash | The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the Consolidated Balance Sheets that sum to the total of the same such amounts shown in the Consolidated Statements of Cash Flows at January 3, 2020, December 28, 2018 and December 29, 2017 (in thousands): 2019 2018 2017 Cash and cash equivalents $ 119,968 $ 103,877 $ 18,520 Restricted cash (1) — 122 121 Total cash, cash equivalents and restricted cash $ 119,968 $ 103,999 $ 18,641 (1) |
Schedule of Sales and Marketing Expenses for Distinct Services | Sales and marketing expenses for distinct services were as follows (in thousands): Years Ended 2019 2018 2017 Marketing and support services related to strategic cooperation agreements $ 485 $ 629 $ 120 |
Summary of Estimated Sales Return | On the Consolidated Balance Sheets, the balances associated for estimated sales returns were as follows (in thousands): 2019 2018 Estimated returns - inventory (1) $ 869 $ 722 Allowance for sales returns 3,644 2,895 (1) |
Schedule Of Estimated Useful Lives of Assets | The estimated useful lives of assets are as follows: Machinery and equipment 5-10 years Computer equipment and software 2-5 years Furniture and equipment 3-7 years Leasehold improvements The shorter of the useful life of the asset or the term of the associated lease |
Summary of Advertising Costs | Advertising costs, which are included in marketing and selling expenses, are expensed as incurred, and were as follows (in thousands): Years Ended 2019 2018 2017 Advertising costs $ 10,990 $ 8,981 $ 6,102 |
Summary of Changes in Accumulated Other Comprehensive Income (Loss) | The following table summarizes the changes in the accumulated balances for each component of accumulated other comprehensive income (loss) attributable to the Company for the years ended January 3, 2020, December 28, 2018 and December 29, 2017 (in thousands): Foreign Currency Translation Defined Benefit Pension Plan – Japan Defined Benefit Pension Plan – Switzerland Accumulated Other Com- prehensive Income (Loss) Balance, at December 30, 2016 $ 11 $ 88 $ (1,149 ) $ (1,050 ) Other comprehensive income (loss) 387 (6 ) (406 ) (25 ) Tax effect (120 ) 6 39 (75 ) Balance, at December 29, 2017 278 88 (1,516 ) (1,150 ) Other comprehensive income (loss) 242 (107 ) (290 ) (155 ) Tax effect (74 ) 29 30 (15 ) Balance, at December 28, 2018 446 10 (1,776 ) (1,320 ) Other comprehensive income (loss) 291 34 (2,192 ) (1,867 ) Tax effect (86 ) (6 ) 231 139 Balance, at January 3, 2020 $ 651 $ 38 $ (3,737 ) $ (3,048 ) |
Accounts Receivable Trade, Net
Accounts Receivable Trade, Net (Tables) | 12 Months Ended |
Jan. 03, 2020 | |
Receivables [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable | Accounts receivable trade, net consisted of the following at January 3, 2020 and December 28, 2018 (in thousands): 2019 2018 Domestic $ 989 $ 807 Foreign 30,095 25,689 Total accounts receivable trade, gross 31,084 26,496 Less allowance for doubtful accounts 88 550 Total accounts receivable trade, net $ 30,996 $ 25,946 |
Inventories, Net (Tables)
Inventories, Net (Tables) | 12 Months Ended |
Jan. 03, 2020 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current | Inventories, net consisted of the following at January 3, 2020 and December 28, 2018 (in thousands): 2019 2018 Raw materials and purchased parts $ 3,334 $ 2,678 Work in process 1,870 2,195 Finished goods 12,976 13,214 Total inventories, gross 18,180 18,087 Less inventory reserves 1,038 1,383 Total inventories, net $ 17,142 $ 16,704 |
Prepayments, Deposits and Oth_2
Prepayments, Deposits and Other Current Assets (Tables) | 12 Months Ended |
Jan. 03, 2020 | |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | |
Schedule Of Prepayments, Deposits and Other Current Assets | Prepayments, deposits and other current assets consisted of the following at January 3, 2020 and December 28, 2018 (in thousands): 2019 2018 Prepayments and deposits $ 3,031 $ 1,707 Prepaid insurance 1,488 1,271 Consumption tax receivable 875 912 Value added tax (VAT) receivable 713 565 Income tax receivable 138 285 Other (1) 315 305 Total prepayments, deposits and other current assets $ 6,560 $ 5,045 (1) |
Property, Plant and Equipment_2
Property, Plant and Equipment, Net (Tables) | 12 Months Ended |
Jan. 03, 2020 | |
Property Plant And Equipment [Abstract] | |
Property, Plant and Equipment, Net | Property, plant and equipment, net consisted of the following at January 3, 2020 and December 28, 2018 (in thousands): 2019 2018 Machinery and equipment $ 17,173 $ 16,905 Computer equipment and software 6,244 5,992 Furniture and fixtures 4,169 3,868 Leasehold improvements 10,151 10,045 Construction in process 8,477 2,095 Total property, plant and equipment, gross 46,214 38,905 Less accumulated depreciation 29,149 27,454 Total property, plant and equipment, net $ 17,065 $ 11,451 |
Schedule of Depreciation Expense and Loss on Disposal of Property, Plant and Equipment | Depreciation expense and loss on disposal of property, plant and equipment were as follows (in thousands): Years Ended 2019 2018 2017 Depreciation expense $ 3,665 $ 2,430 $ 3,133 Loss on disposal of property, plant and equipment 14 10 623 |
Intangible Assets, Net (Tables)
Intangible Assets, Net (Tables) | 12 Months Ended |
Jan. 03, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Finite-Lived Intangible Assets | Intangible assets, net consisted of the following at January 3, 2020 and December 28, 2018 (in thousands): 2019 2018 Long-lived amortized intangible assets Gross Carrying Amount Accumulated Amortization Net Gross Carrying Amount Accumulated Amortization Net Patents and licenses $ 9,353 $ (9,057 ) $ 296 $ 9,257 $ (9,014 ) $ 243 |
Finite-lived Intangible Assets Amortization Expense | Amortization expense for intangible assets were as follows (in thousands): Years Ended 2019 2018 2017 Amortization expense $ 34 $ 34 $ 221 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | Future amortization of intangible assets is as follows (in thousands): Year Ended Amount 2020 $ 35 2021 35 2022 35 2023 35 2024 35 Thereafter 121 Total $ 296 |
Other Current Liabilities (Tabl
Other Current Liabilities (Tables) | 12 Months Ended |
Jan. 03, 2020 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of Other Current Liabilities | Other current liabilities consisted of the following at January 3, 2020 and December 28, 2018 (in thousands): 2019 2018 Accrued salaries and wages $ 4,400 $ 3,172 Accrued bonuses 4,184 5,113 Accrued insurance 1,346 1,061 Income taxes payable 2,710 1,105 Accrued consumption tax 1,164 995 Other (1) 3,893 1,985 Total other current liabilities $ 17,697 $ 13,431 (1) No individual item in “Other” exceeds 5% of the other current liabilities. |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Jan. 03, 2020 | |
Leases [Abstract] | |
Supplemental Balance Sheet Information Related to Finance Leases | Supplemental balance sheet information related to finance leases consisted of the following (dollars in thousands): 2019 Machinery and equipment $ 1,885 Computer equipment and software 912 Furniture and fixtures 102 Leasehold improvements 27 Finance lease ROU assets, gross 2,926 Less accumulated depreciation 1,059 Finance lease ROU assets, net $ 1,867 Total finance lease liability $ 926 Weighted-average remaining lease term (in years) 1.1 Weighted-average discount rate 6.17 % |
Supplemental Cash Flow Information Related to Finance Leases | Supplemental cash flow information related to finance leases consisted of the following (in thousands): Year Ended 2019 Amortization of finance lease ROU asset $ 584 Interest on finance lease liabilities 72 Cash paid for amounts included in the measurement of finance lease liabilities: Operating cash flows 72 Financing cash flows 1,294 ROU assets obtained in exchange for new finance lease liabilities 679 |
Supplemental Balance Sheet Information Related to Operating Leases | Supplemental balance sheet information related to operating leases consisted of the following (dollars in thousands): 2019 Machinery and equipment $ 765 Computer equipment and software 462 Real property 11,116 Operating lease ROU assets, gross 12,343 Less accumulated depreciation 5,659 Operating lease ROU assets, net $ 6,684 Total operating lease liability $ 6,786 Weighted-average remaining lease term (in years) 2.3 Weighted-average discount rate 1.82 % |
Supplemental Cash Flow Information Related to Operating Leases | Supplemental cash flow information related to operating leases was as follows (in thousands): Year Ended 2019 Operating lease cost $ 2,749 Cash paid for amounts included in the measurement of operating lease liabilities: Operating cash flows 2,774 ROU assets obtained in exchange for new operating lease liabilities 3,495 |
Schedule of Estimated Future Minimum Lease Payments under Operating and Finance Leases Having Initial or Remaining Non-Cancelable Lease Terms More Than One Year | Estimated future minimum lease payments under operating and finance leases having initial or remaining non-cancelable lease terms more than one year as of January 3, 2020 are as follows (in thousands): Year Ended Operating Leases Finance Leases 2020 $ 2,850 $ 590 2021 1,694 349 2022 1,220 13 2023 921 8 2024 346 2 Thereafter 73 — Total minimum lease payments, including interest $ 7,104 $ 962 Less amounts representing interest 318 36 Total minimum lease payments $ 6,786 $ 926 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jan. 03, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income before Income Tax, Domestic and Foreign | Income (loss) from continuing operations before provision (benefit) for income taxes was as follows (in thousands): Years Ended 2019 2018 2017 Domestic $ (5,321 ) $ (2,629 ) $ (3,318 ) Foreign 18,347 9,268 1,022 Income (loss) before income taxes $ 13,026 $ 6,639 $ (2,296 ) |
Schedule of Components of Income Tax Expense (Benefit) | The provision (benefit) for income taxes consisted of the following (in thousands): Years Ended 2019 2018 2017 Current tax provision: U.S. federal $ — $ — $ — State 13 10 12 Foreign 2,446 1,220 378 Total current provision 2,459 1,230 390 Deferred tax provision (benefit): U.S. federal (3,003 ) — (546 ) State (373 ) — — Foreign (105 ) 441 (1 ) Total deferred provision (benefit) (3,481 ) 441 (547 ) Provision (benefit) for income taxes $ (1,022 ) $ 1,671 $ (157 ) |
Schedule of Effective Income Tax Rate Reconciliation | A reconciliation of the statutory U.S. federal tax rate to the Company’s effective tax rate was as follows (dollars in thousands): Years Ended 2019 2018 2017 Rate Amount Rate Amount Rate Amount Computed provision (benefit) for taxes based on income at statutory rate 21.0 % $ 2,735 21.0 % $ 1,394 34.0 % $ (781 ) Increase (decrease) in taxes resulting from: Permanent differences 17.4 2,266 0.6 41 (0.9 ) 21 Change in the future federal tax rate — — — — (833.0 ) 19,125 State taxes, net of federal income tax benefit (2.2 ) (284 ) 0.1 8 (0.3 ) 8 State tax benefit 0.7 93 (6.7 ) (447 ) 8.3 (190 ) Foreign tax differential (11.6 ) (1,514 ) (11.0 ) (730 ) (1.3 ) 29 Expiration of state net operating tax loss carryforwards 8.0 1,039 — — (36.4 ) 836 Foreign earnings not permanently reinvested, net of the participation exemption (0.1 ) (7 ) (14.0 ) (926 ) 108.1 (2,482 ) Foreign dividend withholding — — 4.8 317 (0.3 ) 7 ASC 718 share based payment adjustment — — (6.5 ) (434 ) — — Other 1.0 122 0.5 30 (2.6 ) 59 Valuation allowance (42.0 ) (5,472 ) 36.4 2,418 731.2 (16,789 ) Effective tax provision (benefit) (7.8 )% $ (1,022 ) 25.2 % $ 1,671 6.8 % $ (157 ) |
Schedule of Deferred Tax Assets and Liabilities | Significant components of the Company’s deferred tax assets (liabilities) at January 3, 2020 and December 28, 2018 were as follows (in thousands): 2019 2018 Deferred tax assets: Allowance for doubtful accounts and sales returns $ 233 $ 252 Inventories 703 560 Accrued vacation 428 387 Accrued other expenses 1,036 1,232 Stock-based compensation 3,455 2,489 Pensions 1,159 884 Depreciation and amortization 162 843 Net operating loss carryforwards 32,251 34,347 Business, foreign, AMT and R&D credit carryforwards 3,164 3,256 Prepaid expenses 272 272 Capitalized R&D 986 968 Operating lease liability 1,309 — Other 5 122 Valuation allowance (37,603 ) (43,075 ) Total deferred tax assets $ 7,560 $ 2,537 Deferred tax liabilities: Foreign tax withholding $ (1,295 ) $ (1,282 ) Operating lease ROU assets (1,309 ) — Amortization of R&D (805 ) (759 ) Net foreign earnings not permanently reinvested (401 ) (240 ) Total deferred tax liabilities (3,810 ) (2,281 ) Total net deferred tax assets $ 3,750 $ 256 |
Summary of Income Tax Examinations | The following tax years remain subject to examination: Significant jurisdictions Open Years U.S. Federal 2016 – 2018 California 2015 – 2018 Switzerland 2018 Japan 2017 – 2018 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Jan. 03, 2020 | |
Schedule of Defined Contribution, Net of Forfeitures, 401(k) Plan | The Company’s contributions, net of forfeitures, to the 401(k) Plan were as follows (in thousands): Years Ended 2019 2018 2017 Employer contributions, net of forfeitures $ 1,279 $ 996 $ 764 |
Swiss Plan | |
Schedule of Defined Benefit Plans Disclosures | The following table shows the changes in the benefit obligation and plan assets and the Swiss Plan’s funded status as of January 3, 2020 and December 28, 2018 (in thousands): 2019 2018 Change in Projected Benefit Obligation: Projected benefit obligation, beginning of period $ 8,794 $ 7,445 Service cost 739 474 Interest cost 77 56 Participant contributions 458 361 Benefits deposited (paid) 492 189 Actuarial loss 2,429 269 Prior service credit (125 ) — Projected benefit obligation, end of period $ 12,864 $ 8,794 Change in Plan Assets: Plan assets at fair value, beginning of period $ 5,130 $ 4,144 Actual return on plan assets (including foreign currency impact) 152 3 Employer contributions 542 433 Participant contributions 458 361 Benefits deposited (paid) 492 189 Plan assets at fair value, end of period $ 6,774 $ 5,130 Funded status (pension liability), end of year (1) $ (6,090 ) $ (3,664 ) Amount Recognized in Accumulated Other Comprehensive Income (Loss), net of tax: Actuarial loss on plan assets $ (1,031 ) $ (1,035 ) Actuarial loss on benefit obligation (4,317 ) (2,145 ) Actuarial gain recognized in current year 744 630 Prior service credit 258 165 Effect of curtailments 609 609 Accumulated other comprehensive loss $ (3,737 ) $ (1,776 ) Accumulated benefit obligation at year end $ (12,043 ) $ (8,230 ) (1) The underfunded balance was included in pension liability on the Consolidated Balance Sheets. |
Schedule of Net Benefit Costs | Net periodic pension cost associated with the Swiss Plan included the following components (in thousands): Years Ended 2019 2018 2017 Service cost (1) $ 739 $ 474 $ 381 Interest cost (2) 77 56 53 Expected return on plan assets (2) (147 ) (116 ) (94 ) Prior service credit (2),(3) (21 ) (21 ) (7 ) Actuarial loss recognized in current period (2),(3) 129 113 72 Net periodic pension cost $ 777 $ 506 $ 405 ( 1) (2) For years ended 2019 and 2018, recognized in other income (expense), net, and for the year ended 2017, recognized in selling, general and administrative expenses on the Consolidated Statements of Operations. (3) Amounts reclassified from accumulated other comprehensive income (loss). |
Schedule of Amounts Recognized in Other Comprehensive Income (Loss) | Changes in other comprehensive income (loss), net of tax, associated with the Swiss included the following components (in thousands): Years Ended 2019 2018 2017 Current year actuarial gain (loss) on plan assets $ 4 $ (101 ) $ 98 Current year actuarial loss on benefit obligation (2,172 ) (243 ) (644 ) Actuarial gain recorded in current year 114 103 65 Prior service credit 93 (19 ) 126 Change in other comprehensive loss $ (1,961 ) $ (260 ) $ (355 ) |
Schedule of Assumptions Used | Net periodic pension cost and projected and accumulated pension obligation for the Company’s Swiss Plan were calculated on January 3, 2020 and December 28, 2018 using the following assumptions: 2019 2018 Discount rate 0.3 % 0.8 % Salary increases 2.0 % 2.0 % Expected return on plan assets 2.5 % 2.5 % Expected average remaining working lives in years 10.0 10.0 |
Schedule of Changes in Fair Value of Plan Assets | The table below sets forth the fair value of Plan assets at December 28, 2018 and January 3, 2020, and the related activity in years ended 2018 and 2019, in accordance with ASC 715-20-50-1(d) (in thousands): Insurance Contracts (Level 3) Beginning balance at December 29, 2017 $ 4,144 Actual return on plan assets 3 Purchases, sales, and settlement 983 Ending balance at December 28, 2018 $ 5,130 Actual return on plan assets 152 Purchases, sales, and settlement 1,492 Ending balance at January 3, 2020 $ 6,774 |
Schedule Of Defined Benefit Plan Estimated Future Benefit Payments | The estimated future benefit payments for the Swiss Plan are as follows (in thousands): Year Ended Amount 2020 $ 65 2021 79 2022 99 2023 117 2024 132 Thereafter 1,961 Total $ 2,453 |
Japan Plan | |
Schedule of Defined Benefit Plans Disclosures | The funded status of the benefit plan at January 3, 2020 and December 28, 2018 was as follows (in thousands): 2019 2018 Change in Projected Benefit Obligation: Projected benefit obligation, beginning of period $ 1,646 $ 1,352 Service cost 185 153 Interest cost 7 4 Actuarial gain (58 ) 119 Benefits paid (66 ) (9 ) Foreign exchange adjustment 36 27 Projected benefit obligation, end of period $ 1,750 $ 1,646 Change in Plan Assets: Plan assets at fair value, beginning of period $ — $ — Actual return on plan assets — — Employer contributions — — Benefits paid — — Distribution of plan assets — — Foreign exchange adjustment — — Plan assets at fair value, end of period $ — $ — Funded status (pension liability), end of year (1) $ (1,750 ) $ (1,646 ) Amount Recognized in Accumulated Other Comprehensive Income (Loss), net of tax: Transition obligation $ — $ — Actuarial loss (37 ) (36 ) Prior service cost 7 8 Net gain 68 38 Accumulated other comprehensive income $ 38 $ 10 Accumulated benefit obligation at year end $ (1,599 ) $ (1,416 ) (1) The underfunded balance was included in pension liability on the Consolidated Balance Sheets. |
Schedule of Net Benefit Costs | Net periodic pension cost associated with the Japan Plan included the following components (in thousands): Years Ended 2019 2018 2017 Service cost (1) $ 185 $ 153 $ 147 Interest cost (2) 7 4 4 Net amortization of transitional obligation (2),(3) — 11 11 Prior service credit (2),(3) (1 ) (1 ) (1 ) Actuarial loss recognized in current period (2),(3) — — (3 ) Net periodic pension cost $ 191 $ 167 $ 158 (1) Recognized in selling general and administrative expenses on the Consolidated Statements of Operations. (2) For the years ended 2019 and 2018, recognized in other income (expense), net, and for the year ended 2017, recognized in selling, general and administrative expenses on the Consolidated Statements of Operations. (3) Amounts reclassified from accumulated other comprehensive loss. |
Schedule of Amounts Recognized in Other Comprehensive Income (Loss) | Changes in other comprehensive income (loss), net of tax, associated with the Japan Plan include the following components (in thousands): Years Ended 2019 2018 2017 Amortization of net transition obligation $ — $ 7 $ 8 Amortization of actuarial loss (1 ) (1 ) — Prior service cost (1 ) — — Actuarial income (loss) recorded in current year 30 (84 ) (22 ) Change in other comprehensive income (loss) $ 28 $ (78 ) $ (14 ) |
Schedule of Assumptions Used | Net periodic pension cost and projected and accumulated pension obligation for the Company’s Japan Plan were calculated on January 3, 2020 and December 28, 2018 using the following assumptions: 2019 2018 Discount rate 0.3 % 0.4 % Salary increases 4.5 % 6.0 % Expected return on plan assets N/A N/A Expected average remaining working lives in years 10.0 9.4 |
Schedule Of Defined Benefit Plan Estimated Future Benefit Payments | The estimated future benefit payments for the Japan Plan are as follows (in thousands): Year Ended Amount 2020 $ 44 2021 110 2022 48 2023 210 2024 97 Thereafter 1,059 Total $ 1,568 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Jan. 03, 2020 | |
Schedule of Share-based Compensation, Fair Value of Stock-Based Compensation Granted | The following table Fair Value Stock options $ 14,813 Restricted stock units 728 Restricted stock 313 Total stock-based compensation expense $ 15,854 |
Schedule of Compensation Cost | The cost that has been charged against income for stock-based compensation is set forth below (in thousands): Years Ended 2019 2018 2017 Employee stock option $ 8,144 $ 4,013 $ 1,731 Restricted stock 320 274 186 Restricted stock units 1,905 2,120 1,226 Nonemployee stock options 178 355 18 Total stock-based compensation expense $ 10,547 $ 6,762 $ 3,161 |
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs | The Company recorded stock-based compensation expense in the following categories (in thousands): Years Ended 2019 2018 2017 Cost of sales $ 52 $ 15 $ 8 General and administrative 4,010 2,635 1,487 Marketing and selling 3,318 1,805 805 Research and development 3,167 2,307 861 Total stock-based compensation expense, net 10,547 6,762 3,161 Amounts capitalized as part of inventory 1,017 637 372 Total stock-based compensation expense, gross $ 11,564 $ 7,399 $ 3,533 |
Schedule of Unrecognized Compensation Cost, Non-Vested Stock-Based Compensation Arrangements | As of January 3, 2020, total unrecognized compensation cost related to non-vested stock-based compensation arrangements granted under the Plan were as follows (in thousands): 2019 Stock options $ 14,817 Restricted stock and restricted stock units 594 Total unrecognized stock-based compensation cost $ 15,411 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | The risk-free rate is based on the U.S. Treasury yield curve corresponding to the expected term at the time of the grant. Years Ended 2019 2018 2017 Expected dividend yield 0 % 0 % 0 % Expected volatility 53 % 53 % 57 % Risk-free interest rate 2.40 % 2.71 % 1.96 % Expected term (in years) 5.66 5.72 5.67 |
Schedule of Share-based Compensation, Stock Options, Activity | A summary of option activity under the Plan for the year ended January 3, 2020 is presented below: Shares (in 000’s) Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term (years) Aggregate Intrinsic Value (in 000’s) Outstanding at December 28, 2018 3,920 $ 11.80 Granted 824 35.40 Exercised (388 ) 8.92 Forfeited or expired (30 ) 25.87 Outstanding at January 3, 2020 4,326 $ 16.46 6.51 $ 78,995 Exercisable at January 3, 2020 3,047 $ 10.66 5.54 $ 72,393 |
Share-based Compensation, Performance Shares Award Unvested Activity | A summary of unvested options activity under the Plan for the year ended January 3, 2020 was as follows: Shares (in 000’s) Weighted- Average Grant-Date Fair Value Unvested at December 28, 2018 1,260 $ 9.67 Granted 824 17.95 Forfeited or expired (30 ) 13.29 Vested (775 ) 8.83 Unvested at January 3, 2020 1,279 $ 15.44 |
Summary of Weighted Average Grant Date Fair Value of Options Granted and Total intrinsic Value of options Exercised | The weighted average grant date fair value of options granted and the total intrinsic value of options exercised were as follows: Years Ended 2019 2018 2017 Weighted-average grant-date fair value $ 17.95 $ 11.95 $ 5.42 Intrinsic value of options (in thousands) $ 9,955 $ 13,699 $ 3,065 |
Restricted Stock | |
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity | A summary of restricted stock activity under the Plan for the year ended January 3, 2020 was as follows: Shares (in 000’s) Weighted- Average Grant- Date Fair Value Outstanding at December 28, 2018 11 $ 29.80 Granted 11 29.39 Vested (11 ) 29.80 Outstanding at January 3, 2020 11 $ 29.39 |
Restricted Stock Units (RSUs) | |
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity | A summary of restricted stock units’ activity under the Plan for the year ended January 3, 2020 was as follows: Units (in 000’s) Weighted- Average Grant- Date Fair Value Outstanding at December 28, 2018 322 $ 10.46 Granted 19 37.98 Vested (229 ) 12.58 Forfeited or expired (8 ) 11.57 Outstanding at January 3, 2020 104 $ 10.79 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Jan. 03, 2020 | |
Related Party Transactions [Abstract] | |
Schedule of Amounts Due from Employees Included in Prepayments, Deposits and Other Current Assets | Amounts due from employees are included in prepayments, deposits, and other current assets at January 3, 2020 and December 28, 2018 were as follows (in thousands): 2019 2018 Due from employees $ 1 $ 10 |
Supplemental Disclosure of Ca_2
Supplemental Disclosure of Cash Flow Information (Tables) | 12 Months Ended |
Jan. 03, 2020 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of Cash Flow, Supplemental Disclosures | The Company’s non-cash operating activities, non-cash investing and financing activities, and cash paid were as follows (in thousands): Years Ended 2019 2018 2017 Non-cash operating activities: Insurance receivable $ — $ — $ 7,000 Settlement liability $ — $ — $ 7,000 Non-cash investing and financing activities: Right-of-use-assets obtained in exchange for new finance lease liabilities $ 679 $ 1,656 $ 563 Purchase of property and equipment included in accounts payable $ 381 $ 207 $ 121 Cash paid: Interest $ 105 $ 130 $ 90 Taxes $ 792 $ 635 $ 881 |
Basic and Diluted Net Income _2
Basic and Diluted Net Income (Loss) Per Share (Tables) | 12 Months Ended |
Jan. 03, 2020 | |
Earnings Per Share [Abstract] | |
Summary of Computation of Basic and Diluted Net Income (Loss) Per Share | The following table sets forth the computation of basic and diluted net income (loss) per share (in thousands except per share amounts): Years Ended 2019 2018 2017 Numerator: Net income (loss) $ 14,048 $ 4,968 $ (2,139 ) Denominator: Weighted average common shares: Common shares outstanding 44,504 42,598 41,025 Less: Unvested restricted stock (11 ) (11 ) (21 ) Denominator for basic calculation 44,493 42,587 41,004 Weighted average effects of potentially diluted common stock: Stock options 2,254 2,360 — Unvested restricted stock 6 10 — Restricted stock units 142 300 — Denominator for diluted calculation 46,895 45,257 41,004 Net income (loss) per share: Basic $ 0.32 $ 0.12 $ (0.05 ) Diluted $ 0.30 $ 0.11 $ (0.05 ) |
Schedule of Anti-dilutive Securities Excluded from Computation of Earnings Per Share | Years Ended 2019 2018 2017 Stock options 1,503 315 2,237 Restricted stock and restricted stock units — — 203 Total 1,503 315 2,440 |
Disaggregation of Revenues, G_2
Disaggregation of Revenues, Geographic Sales and Product Sales (Tables) | 12 Months Ended |
Jan. 03, 2020 | |
Segment Reporting [Abstract] | |
Disaggregation of Revenue | In the following tables, revenues are disaggregated by category, sales by geographic market and sales by product data. The following breaks down revenues into the following categories (in thousands): Years Ended 2019 2018 2017 Non-consignment sales $ 132,716 $ 106,338 $ 74,163 Consignment sales 17,469 17,616 16,448 Total net sales $ 150,185 $ 123,954 $ 90,611 |
Net Sales by Geographic Areas | The composition of the Company’s net sales to unaffiliated customers was as follows (in thousands): Years Ended 2019 2018 2017 Domestic $ 8,106 $ 7,316 $ 7,894 Foreign: China (1) 64,820 46,070 24,473 Japan 26,881 23,151 18,125 Other (2) 50,378 47,417 40,119 Total foreign sales 142,079 116,638 82,717 Total net sales $ 150,185 $ 123,954 $ 90,611 (1) The China region includes sales into China and Hong Kong. (2) No other location individually exceeds 10% of the total net sales. |
Net Sales by Products and Services | The composition of the Company’s net sales by product line was as follows (in thousands): Years Ended 2019 2018 2017 ICLs $ 129,322 $ 101,082 $ 68,325 Other product sales IOLs 15,689 16,193 17,258 Other surgical products 5,174 6,679 5,028 Total other product sales 20,863 22,872 22,286 Total net sales $ 150,185 $ 123,954 $ 90,611 |
Geographic Assets (Tables)
Geographic Assets (Tables) | 12 Months Ended |
Jan. 03, 2020 | |
Segment Reporting [Abstract] | |
Composition of Long-Lived Assets | The composition of the Company’s long-lived assets between those in the U.S., Japan and Switzerland is set forth below as of January 3, 2020 and December 28, 2018 (in thousands): 2019 U.S. Japan Switzerland Total Property, plant and equipment, net $ 14,956 $ 306 $ 1,803 $ 17,065 Finance lease ROU assets, net 1,756 80 31 1,867 Operating lease ROU assets, net 2,920 919 2,845 6,684 Intangible assets, net 83 213 — 296 Total $ 19,715 $ 1,518 $ 4,679 $ 25,912 2018 U.S. Japan Switzerland Total Property, plant and equipment, net $ 10,416 $ 330 $ 705 $ 11,451 Finance lease ROU assets, net — — — — Operating lease ROU assets, net — — — — Intangible assets, net — 243 — 243 Total $ 10,416 $ 573 $ 705 $ 11,694 |
Quarterly Financial Data (Una_2
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Jan. 03, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | Summary unaudited quarterly financial data from continuing operations for years ended 2019 and 2018 was as follows (in thousands except per share data). The Company has derived this data from the unaudited consolidated interim financial statements that, in the Company’s opinion, have been prepared on substantially the same basis as the audited financial statements contained elsewhere in this report and include all normal recurring adjustments necessary for a fair presentation of the financial information for the periods presented. These unaudited quarterly results should be read in conjunction with the financial statements and notes thereto included elsewhere in this report. The operating results in any quarter are not necessarily indicative of the results that may be expected for any future period. January 3, 2020 1 st 2 nd 3 rd 4 th Net sales $ 32,583 $ 39,664 $ 39,055 $ 38,883 Gross profit 24,180 29,899 29,051 28,824 Net income 1,367 3,914 2,388 6,379 Net income per share – basic 0.03 0.09 0.05 0.14 Net income per share – diluted 0.03 0.08 0.05 0.14 December 28, 2018 1 st 2 nd 3 rd 4 th Net sales $ 27,093 $ 33,905 $ 31,770 $ 31,186 Gross profit 19,431 25,227 23,860 22,992 Net income (loss) 583 1,830 1,459 1,096 Net income per share – basic 0.01 0.04 0.03 0.02 Net income per share – diluted 0.01 0.04 0.03 0.02 |
Organization and Description _4
Organization and Description of Business and Accounting Policies - Schedule of Net Currency Foreign Translation Gain Loss (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Jan. 03, 2020 | Dec. 28, 2018 | Dec. 29, 2017 | ||
Accounting Policies [Abstract] | ||||
Foreign currency translation gain(1) | [1] | $ 291 | $ 242 | $ 387 |
Gain (loss) on foreign currency transactions | [2] | $ (517) | $ (836) | $ 819 |
[1] | Shown as a separate line item on the Consolidated Statements of Comprehensive Income (Loss). | |||
[2] | Shown as a separate line item on the Consolidated Statements of Operations. |
Organization and Description _5
Organization and Description of Business and Accounting Policies - Schedule of Reconciliation of Cash And Cash Equivalents And Restricted Cash (Details) - USD ($) $ in Thousands | Jan. 03, 2020 | Dec. 28, 2018 | Dec. 29, 2017 | Dec. 30, 2016 | |
Accounting Policies [Abstract] | |||||
Cash and cash equivalents | $ 119,968 | $ 103,877 | $ 18,520 | ||
Restricted cash | [1] | 122 | 121 | ||
Total cash, cash equivalents and restricted cash | $ 119,968 | $ 103,999 | $ 18,641 | $ 14,118 | |
[1] | Included in other assets on the Consolidated Balance Sheets |
Organization and Description _6
Organization and Description of Business and Accounting Policies - Schedule of Sales and Marketing Expenses for Distinct Services (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 03, 2020 | Dec. 28, 2018 | Dec. 29, 2017 | |
Accounting Policies [Abstract] | |||
Marketing and support services related to strategic cooperation agreements | $ 485 | $ 629 | $ 120 |
Organization and Description _7
Organization and Description of Business and Accounting Policies - Additional Information (Details) - USD ($) | Dec. 29, 2018 | Dec. 22, 2017 | Jan. 03, 2020 | Dec. 28, 2018 | Dec. 29, 2017 |
Organization And Description Of Business And Accounting Policies [Line Items] | |||||
Revenue, Remaining Performance Obligation, Amount | $ 0 | ||||
Deferred Revenues | 0 | $ 0 | $ 0 | ||
Goodwill | $ 1,786,000 | $ 1,786,000 | |||
U.S. corporate tax rate | 35.00% | 21.00% | 21.00% | 34.00% | |
Percentage of deduction in GILTI | 50.00% | ||||
Executive Officers and Employees | Restricted Stock | |||||
Organization And Description Of Business And Accounting Policies [Line Items] | |||||
Option Vesting Term | 3 years | ||||
Board of Directors | |||||
Organization And Description Of Business And Accounting Policies [Line Items] | |||||
Option Vesting Term | 1 year | ||||
Board of Directors | Restricted Stock | |||||
Organization And Description Of Business And Accounting Policies [Line Items] | |||||
Option Vesting Term | 1 year | ||||
Topic 842 | |||||
Organization And Description Of Business And Accounting Policies [Line Items] | |||||
Cumulative adjustment accumulated deficit | $ 113,000 | ||||
Accounting Standards Update 2018-07 | |||||
Organization And Description Of Business And Accounting Policies [Line Items] | |||||
Cumulative adjustment accumulated deficit | $ (315,000) | ||||
Minimum | Restricted Stock | |||||
Organization And Description Of Business And Accounting Policies [Line Items] | |||||
Requisite Service Period | 1 year | ||||
Minimum | Executive Officers and Employees | |||||
Organization And Description Of Business And Accounting Policies [Line Items] | |||||
Option Vesting Term | 3 years | ||||
Maximum | Restricted Stock | |||||
Organization And Description Of Business And Accounting Policies [Line Items] | |||||
Requisite Service Period | 3 years | ||||
Maximum | Executive Officers and Employees | |||||
Organization And Description Of Business And Accounting Policies [Line Items] | |||||
Option Vesting Term | 4 years | ||||
Patents And Licenses | Minimum | |||||
Organization And Description Of Business And Accounting Policies [Line Items] | |||||
Finite-Lived Intangible Asset, Useful Life | 3 years | ||||
Patents And Licenses | Maximum | |||||
Organization And Description Of Business And Accounting Policies [Line Items] | |||||
Finite-Lived Intangible Asset, Useful Life | 20 years | ||||
Customer Relationships | |||||
Organization And Description Of Business And Accounting Policies [Line Items] | |||||
Finite-Lived Intangible Asset, Useful Life | 10 years | ||||
Developed technology | Minimum | |||||
Organization And Description Of Business And Accounting Policies [Line Items] | |||||
Finite-Lived Intangible Asset, Useful Life | 3 years | ||||
Developed technology | Maximum | |||||
Organization And Description Of Business And Accounting Policies [Line Items] | |||||
Finite-Lived Intangible Asset, Useful Life | 10 years | ||||
Customer Concentration Risk | One Customer | Trade Accounts Receivable | |||||
Organization And Description Of Business And Accounting Policies [Line Items] | |||||
Concentration risk, percentage | 43.00% | 36.00% | |||
Customer Concentration Risk | One Customer | Sales Revenue, Net | |||||
Organization And Description Of Business And Accounting Policies [Line Items] | |||||
Concentration risk, percentage | 43.00% | 37.00% | 27.00% | ||
Vendor Concentration Risk | Consolidated Accounts Payable | |||||
Organization And Description Of Business And Accounting Policies [Line Items] | |||||
Concentration risk, percentage | 10.00% | ||||
Vendor Concentration Risk | Consolidated Accounts Payable | Maximum | |||||
Organization And Description Of Business And Accounting Policies [Line Items] | |||||
Concentration risk, percentage | 11.00% | ||||
Vendor Concentration Risk | Consolidated Purchases | Maximum | |||||
Organization And Description Of Business And Accounting Policies [Line Items] | |||||
Concentration risk, percentage | 10.00% | 10.00% | 10.00% |
Organization and Description _8
Organization and Description of Business and Accounting Policies - Summary of Estimated Sales Return (Details) - USD ($) $ in Thousands | Jan. 03, 2020 | Dec. 28, 2018 | |
Accounting Policies [Abstract] | |||
Estimated returns - inventory | [1] | $ 869 | $ 722 |
Allowance for sales returns | $ 3,644 | $ 2,895 | |
[1] |
Organization and Description _9
Organization and Description of Business and Accounting Policies - Schedule Of Estimated Useful Lives of Assets (Details) | 12 Months Ended |
Jan. 03, 2020 | |
Leasehold Improvements | |
Property, Plant and Equipment, Useful Life Description | The shorter of the useful life of the asset or the term of the associated lease |
Minimum | Machinery and Equipment | |
Property, Plant and Equipment, Useful Life | 5 years |
Minimum | Computer Equipment and Software | |
Property, Plant and Equipment, Useful Life | 2 years |
Minimum | Furniture and Fixtures | |
Property, Plant and Equipment, Useful Life | 3 years |
Maximum | Machinery and Equipment | |
Property, Plant and Equipment, Useful Life | 10 years |
Maximum | Computer Equipment and Software | |
Property, Plant and Equipment, Useful Life | 5 years |
Maximum | Furniture and Fixtures | |
Property, Plant and Equipment, Useful Life | 7 years |
Organization and Description_10
Organization and Description of Business and Accounting Policies - Summary of Advertising Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 03, 2020 | Dec. 28, 2018 | Dec. 29, 2017 | |
Accounting Policies [Abstract] | |||
Advertising costs | $ 10,990 | $ 8,981 | $ 6,102 |
Organization and Description_11
Organization and Description of Business and Accounting Policies - Summary of Changes in Accumulated Other Comprehensive Income (Loss) - (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 03, 2020 | Dec. 28, 2018 | Dec. 29, 2017 | |
Balance | $ (1,320) | $ (1,150) | $ (1,050) |
Other comprehensive income (loss) | (1,867) | (155) | (25) |
Tax effect | 139 | (15) | (75) |
Balance | (3,048) | (1,320) | (1,150) |
Foreign Currency Translation | |||
Balance | 446 | 278 | 11 |
Other comprehensive income (loss) | 291 | 242 | 387 |
Tax effect | (86) | (74) | (120) |
Balance | 651 | 446 | 278 |
Defined Benefit Pension Plan | JAPAN | |||
Balance | 10 | 88 | 88 |
Other comprehensive income (loss) | 34 | (107) | (6) |
Tax effect | (6) | 29 | 6 |
Balance | 38 | 10 | 88 |
Defined Benefit Pension Plan | SWITZERLAND | |||
Balance | (1,776) | (1,516) | (1,149) |
Other comprehensive income (loss) | (2,192) | (290) | (406) |
Tax effect | 231 | 30 | 39 |
Balance | $ (3,737) | $ (1,776) | $ (1,516) |
Accounts Receivable Trade, Ne_2
Accounts Receivable Trade, Net - Schedule of Accounts, Notes, Loans and Financing Receivable (Details) - USD ($) $ in Thousands | Jan. 03, 2020 | Dec. 28, 2018 |
Accounts Receivable [Line Items] | ||
Total accounts receivable trade, gross | $ 31,084 | $ 26,496 |
Less allowance for doubtful accounts | 88 | 550 |
Total accounts receivable trade, net | 30,996 | 25,946 |
US | ||
Accounts Receivable [Line Items] | ||
Total accounts receivable trade, gross | 989 | 807 |
Foreign | ||
Accounts Receivable [Line Items] | ||
Total accounts receivable trade, gross | $ 30,095 | $ 25,689 |
Inventories, Net - Schedule of
Inventories, Net - Schedule of Inventory, Current (Details) - USD ($) $ in Thousands | Jan. 03, 2020 | Dec. 28, 2018 |
Inventory Disclosure [Abstract] | ||
Raw materials and purchased parts | $ 3,334 | $ 2,678 |
Work in process | 1,870 | 2,195 |
Finished goods | 12,976 | 13,214 |
Total inventories, gross | 18,180 | 18,087 |
Less inventory reserves | 1,038 | 1,383 |
Total inventories, net | $ 17,142 | $ 16,704 |
Prepayments, Deposits and Oth_3
Prepayments, Deposits and Other Current Assets - Schedule Of Prepayments, Deposits and Other Current Assets (Details) - USD ($) $ in Thousands | Jan. 03, 2020 | Dec. 28, 2018 | |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | |||
Prepayments and deposits | $ 3,031 | $ 1,707 | |
Prepaid insurance | 1,488 | 1,271 | |
Consumption tax receivable | 875 | 912 | |
Value added tax (VAT) receivable | 713 | 565 | |
Income tax receivable | 138 | 285 | |
Other | [1] | 315 | 305 |
Total prepayments, deposits and other current assets | $ 6,560 | $ 5,045 | |
[1] |
Prepayments, Deposits and Oth_4
Prepayments, Deposits and Other Current Assets - Schedule Of Prepayments, Deposits and Other Current Assets (Parenthetical) (Details) | Jan. 03, 2020 | Dec. 28, 2018 |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | ||
Percent of prepayments deposits and other current assets included in other current assets | 5.00% | 5.00% |
Property, Plant and Equipment_3
Property, Plant and Equipment, Net - Property, Plant and Equipment, Net (Details) - USD ($) $ in Thousands | Jan. 03, 2020 | Dec. 28, 2018 |
Property Plant And Equipment [Abstract] | ||
Machinery and equipment | $ 17,173 | $ 16,905 |
Computer equipment and software | 6,244 | 5,992 |
Furniture and fixtures | 4,169 | 3,868 |
Leasehold improvements | 10,151 | 10,045 |
Construction in process | 8,477 | 2,095 |
Total property, plant and equipment, gross | 46,214 | 38,905 |
Less accumulated depreciation | 29,149 | 27,454 |
Total property, plant and equipment, net | $ 17,065 | $ 11,451 |
Property, Plant and Equipment_4
Property, Plant and Equipment, Net - Schedule of Depreciation Expense and Loss on Disposal of Property, Plant and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 03, 2020 | Dec. 28, 2018 | Dec. 29, 2017 | |
Property Plant And Equipment [Abstract] | |||
Depreciation expense | $ 3,665 | $ 2,430 | $ 3,133 |
Loss on disposal of property, plant and equipment | $ 14 | $ 10 | $ 623 |
Property, Plant and Equipment_5
Property, Plant and Equipment, Net - Additional Information (Details) | 12 Months Ended |
Dec. 29, 2017USD ($) | |
Property Plant And Equipment [Abstract] | |
Gain (Loss) on Sale of Assets and Asset Impairment Charges | $ 599,000 |
Intangible Assets, Net - Schedu
Intangible Assets, Net - Schedule of Finite-Lived Intangible Assets (Details) - USD ($) $ in Thousands | Jan. 03, 2020 | Dec. 28, 2018 |
Long-lived intangible assets | ||
Long-lived intangible assets, Net | $ 296 | $ 243 |
Patents and licenses | ||
Long-lived intangible assets | ||
Long-lived intangible assets, Gross Carrying Amount | 9,353 | 9,257 |
Long-lived intangible assets, Accumulated Amortization | (9,057) | (9,014) |
Long-lived intangible assets, Net | $ 296 | $ 243 |
Intangible Assets, Net - Finite
Intangible Assets, Net - Finite-lived Intangible Assets Amortization Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 03, 2020 | Dec. 28, 2018 | Dec. 29, 2017 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |||
Amortization expense | $ 34 | $ 34 | $ 221 |
Intangible Assets, Net - Sche_2
Intangible Assets, Net - Schedule of Finite-Lived Intangible Assets, Future Amortization Expense (Details) $ in Thousands | Jan. 03, 2020USD ($) |
Goodwill And Intangible Assets Disclosure [Abstract] | |
2020 | $ 35 |
2021 | 35 |
2022 | 35 |
2023 | 35 |
2024 | 35 |
Thereafter | 121 |
Total | $ 296 |
Other Current Liabilities - Sch
Other Current Liabilities - Schedule of Other Current Liabilities (Details) - USD ($) $ in Thousands | Jan. 03, 2020 | Dec. 28, 2018 | |
Other Liabilities Disclosure [Abstract] | |||
Accrued salaries and wages | $ 4,400 | $ 3,172 | |
Accrued bonuses | 4,184 | 5,113 | |
Accrued insurance | 1,346 | 1,061 | |
Income taxes payable | 2,710 | 1,105 | |
Accrued consumption tax | 1,164 | 995 | |
Other | [1] | 3,893 | 1,985 |
Total other current liabilities | $ 17,697 | $ 13,431 | |
[1] | No individual item in “Other” exceeds 5% of the other current liabilities |
Other Current Liabilities - S_2
Other Current Liabilities - Schedule of Other Current Liabilities (Parenthetical) (Details) | Jan. 03, 2020 | Dec. 28, 2018 |
Other Liabilities Disclosure [Abstract] | ||
Percent of Other Current Liabilities Included in Other | 5.00% | 5.00% |
Lines of Credit - Additional In
Lines of Credit - Additional Information (Details) | 12 Months Ended | ||||
Jan. 03, 2020USD ($) | Jan. 03, 2020JPY (¥) | Dec. 28, 2018USD ($) | Dec. 28, 2018JPY (¥) | Sep. 30, 2013CHF (SFr) | |
Line Of Credit Facility [Line Items] | |||||
Line of Credit, Current | $ 1,827,000 | $ 3,780,000 | |||
Finance lease liability | 926,000 | ||||
Farnam Street Financial, Inc. | |||||
Line Of Credit Facility [Line Items] | |||||
Finance lease liability | $ 500,000 | ||||
Mizuho Bank | |||||
Line Of Credit Facility [Line Items] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | ¥ | ¥ 500,000,000 | ||||
Line of Credit Facility, Interest Rate Description | (approximately 0.06% as of January 3, 2020) plus a 0.50% spread, and may be renewed quarterly (the current line expires on February 21, 2020). | ||||
Line of credit facility, interest rate | 0.06% | 0.06% | |||
Line of credit facility, spread rate | 0.50% | ||||
Line of credit facility, expiration date | Feb. 21, 2020 | ||||
Line of Credit, Current | $ 1,827,000 | ¥ 197,500,000 | 3,780,000 | ¥ 417,500,000 | |
Interest Rate Increase In Case Of Default | 14.00% | ||||
Line of Credit Facility, Remaining Borrowing Capacity | $ 2,798,000 | ¥ 302,500,000 | 747,000 | ¥ 82,500,000 | |
Line of credit facility, renewed expiration date | May 21, 2020 | ||||
Credit Suisse Bank | |||||
Line Of Credit Facility [Line Items] | |||||
Line of Credit Facility, Current Borrowing Capacity | $ 1,000,000 | 1,000,000 | SFr 1,000,000 | ||
Percentage Of Commission On Outstanding Notes Payable | 0.25% | ||||
Borrowings outstanding | $ 0 | $ 0 |
Leases - Additional Information
Leases - Additional Information (Details) | Jan. 03, 2020USD ($) |
Lessee Lease Description [Line Items] | |
ROU assets related to operating leases | $ 6,684,000 |
Topic 842 | |
Lessee Lease Description [Line Items] | |
ROU assets related to operating leases | $ 5,726,000 |
Minimum | |
Lessee Lease Description [Line Items] | |
Finance lease, term of contract | 2 years |
Operating lease, term of contract | 2 years |
Maximum | |
Lessee Lease Description [Line Items] | |
Finance lease, term of contract | 5 years |
Operating lease, term of contract | 5 years |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet Information Related to Finance Leases (Details) $ in Thousands | Jan. 03, 2020USD ($) |
Lessee Lease Description [Line Items] | |
Finance lease ROU assets, gross | $ 2,926 |
Less accumulated depreciation | 1,059 |
Finance lease ROU assets, net | 1,867 |
Finance lease liability | $ 926 |
Weighted-average remaining lease term (in years) | 1 year 1 month 6 days |
Weighted-average discount rate | 6.17% |
Machinery and Equipment | |
Lessee Lease Description [Line Items] | |
Finance lease ROU assets, gross | $ 1,885 |
Computer Equipment and Software | |
Lessee Lease Description [Line Items] | |
Finance lease ROU assets, gross | 912 |
Furniture and Fixtures | |
Lessee Lease Description [Line Items] | |
Finance lease ROU assets, gross | 102 |
Leasehold Improvements | |
Lessee Lease Description [Line Items] | |
Finance lease ROU assets, gross | $ 27 |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information Related to Finance Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 03, 2020 | Dec. 28, 2018 | Dec. 29, 2017 | |
Leases [Abstract] | |||
Amortization of finance lease ROU asset | $ 584 | ||
Interest on finance lease liabilities | 72 | ||
Cash paid for amounts included in the measurement of finance lease liabilities: | |||
Operating cash flows | 72 | ||
Financing cash flows | 1,294 | $ 1,907 | $ 1,300 |
ROU assets obtained in exchange for new finance lease liabilities | $ 679 | $ 1,656 | $ 563 |
Leases - Supplemental Balance_2
Leases - Supplemental Balance Sheet Information Related to Operating Leases (Details) $ in Thousands | Jan. 03, 2020USD ($) |
Lessee Lease Description [Line Items] | |
Operating lease ROU assets, gross | $ 12,343 |
Less accumulated depreciation | 5,659 |
Operating lease ROU assets, net | 6,684 |
Total operating lease liability | $ 6,786 |
Weighted-average remaining lease term (in years) | 2 years 3 months 18 days |
Weighted-average discount rate | 1.82% |
Machinery and Equipment | |
Lessee Lease Description [Line Items] | |
Operating lease ROU assets, gross | $ 765 |
Computer Equipment and Software | |
Lessee Lease Description [Line Items] | |
Operating lease ROU assets, gross | 462 |
Real Property | |
Lessee Lease Description [Line Items] | |
Operating lease ROU assets, gross | $ 11,116 |
Leases - Supplemental Cash Fl_2
Leases - Supplemental Cash Flow Information Related to Operating Leases (Details) $ in Thousands | 12 Months Ended |
Jan. 03, 2020USD ($) | |
Leases [Abstract] | |
Operating lease cost | $ 2,749 |
Cash paid for amounts included in the measurement of operating lease liabilities: | |
Operating cash flows | 2,774 |
ROU assets obtained in exchange for new operating lease liabilities | $ 3,495 |
Leases - Schedule of Estimated
Leases - Schedule of Estimated Future Minimum Lease Payments under Operating and Finance Leases Having Initial or Remaining Non-Cancelable Lease Terms More Than One Year (Details) $ in Thousands | Jan. 03, 2020USD ($) |
Operating Lease Liabilities, Payments, Due, Rolling Maturity [Abstract] | |
2020 | $ 2,850 |
2021 | 1,694 |
2022 | 1,220 |
2023 | 921 |
2024 | 346 |
Thereafter | 73 |
Total minimum lease payments, including interest | 7,104 |
Less amounts representing interest | 318 |
Total operating lease liability | 6,786 |
Finance Lease Liabilities, Payments, Rolling Maturity [Abstract] | |
2020 | 590 |
2021 | 349 |
2022 | 13 |
2023 | 8 |
2024 | 2 |
Total minimum lease payments, including interest | 962 |
Less amounts representing interest | 36 |
Finance lease liability | $ 926 |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income before Income Tax, Domestic and Foreign (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 03, 2020 | Dec. 28, 2018 | Dec. 29, 2017 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ (5,321) | $ (2,629) | $ (3,318) |
Foreign | 18,347 | 9,268 | 1,022 |
Income (loss) before income taxes | $ 13,026 | $ 6,639 | $ (2,296) |
Income Taxes - Schedule of Comp
Income Taxes - Schedule of Components of Income Tax Expense (Benefit) (Details) - USD ($) | 12 Months Ended | ||
Jan. 03, 2020 | Dec. 28, 2018 | Dec. 29, 2017 | |
Current tax provision: | |||
U.S. federal | $ 0 | $ 0 | $ 0 |
State | 13,000 | 10,000 | 12,000 |
Foreign | 2,446,000 | 1,220,000 | 378,000 |
Total current provision | 2,459,000 | 1,230,000 | 390,000 |
Deferred tax provision (benefit): | |||
U.S. federal | (3,003,000) | (546,000) | |
State | (373,000) | ||
Foreign | (105,000) | 441,000 | (1,000) |
Total deferred provision (benefit) | (3,481,000) | 441,000 | (547,000) |
Provision (benefit) for income taxes | $ (1,022,000) | $ 1,671,000 | $ (157,000) |
Income Taxes - Schedule of Effe
Income Taxes - Schedule of Effective Income Tax Rate Reconciliation (Details) - USD ($) | Dec. 22, 2017 | Jan. 03, 2020 | Dec. 28, 2018 | Dec. 29, 2017 |
Increase (decrease) in taxes resulting from: | ||||
Computed provision (benefit) for taxes based on income at statutory rate percentage | 35.00% | 21.00% | 21.00% | 34.00% |
Permanent differences percentage | 17.40% | 0.60% | (0.90%) | |
Change in the future federal tax rate percentage | 0.00% | (833.00%) | ||
State tax benefit percentage | 0.70% | (6.70%) | 8.30% | |
Foreign tax differential percentage | (11.60%) | (11.00%) | (1.30%) | |
Expiration of state net operating tax loss carryforwards percentage | 8.00% | 0.00% | (36.40%) | |
Foreign earnings not permanently reinvested, net of the participation exemption percentage | (0.10%) | (14.00%) | 108.10% | |
Foreign dividend withholding percentage | 4.80% | (0.30%) | ||
ASC 718 share based payment adjustment percentage | (6.50%) | 0.00% | ||
Other percentage | 1.00% | 0.50% | (2.60%) | |
Valuation allowance percentage | (42.00%) | 36.40% | 731.20% | |
Effective tax provision (benefit) percentage | (7.80%) | 25.20% | 6.80% | |
State taxes, net of federal income tax benefit percentage | (2.20%) | 0.10% | (0.30%) | |
Increase (decrease) in taxes resulting from: | ||||
Computed provision (benefit) for taxes based on income at statutory rate | $ 2,735,000 | $ 1,394,000 | $ (781,000) | |
Permanent differences | 2,266,000 | 41,000 | 21,000 | |
Change in the future federal tax rate | 0 | 19,125,000 | ||
State taxes, net of federal income tax benefit | (284,000) | 8,000 | 8,000 | |
State tax benefit | 93,000 | (447,000) | (190,000) | |
Foreign tax differential | (1,514,000) | (730,000) | 29,000 | |
Expiration of state net operating tax loss carryforwards | 1,039,000 | 0 | 836,000 | |
Foreign earnings not permanently reinvested, net of the participation exemption | (7,000) | (926,000) | (2,482,000) | |
Foreign dividend withholding | 317,000 | 7,000 | ||
ASC 718 share based payment adjustment | (434,000) | 0 | ||
Other | 122,000 | 30,000 | 59,000 | |
Valuation allowance | (5,472,000) | 2,418,000 | (16,789,000) | |
Provision (benefit) for income taxes | $ (1,022,000) | $ 1,671,000 | $ (157,000) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Jan. 03, 2020 | Dec. 28, 2018 | Dec. 29, 2017 | |
Income Taxes [Line Items] | |||
Income Tax Expense (Benefit) | $ (1,022,000) | $ 1,671,000 | $ (157,000) |
Increase (Decrease) Deferred Tax Assets Valuation Allowance | (5,472,000) | 2,418,000 | (16,789,000) |
Increase (Decrease) In Foreign Deferred Tax Liabilities | (46,000) | 36,000 | (47,000) |
Income tax reconciliation of global intangible low-taxed income | $ 16,100,000 | 7,700,000 | |
Percentage of deduction in GILTI | 50.00% | ||
Deferred Tax Assets, Net | $ 3,750,000 | 256,000 | |
Taxes Payable | 2,572,000 | 820,000 | |
Deferred Tax Assets, Tax Credit Carryforwards, Alternative Minimum Tax | 136,000 | ||
Operating Loss Carryforwards | $ 129,000,000 | ||
Operating Loss Carry Forwards Expiration Term | expire in varying amounts between 2020 and 2037 | ||
Operating Loss Carryforwards, Limitations on Use | The California net operating loss carryforwards expire in varying amounts between 2028 and 2039 | ||
Stock-based compensation | $ 3,455,000 | 2,489,000 | |
STAAR Surgical AG | |||
Income Taxes [Line Items] | |||
Deferred Tax Liabilities, Net | 658,000 | 922,000 | |
Swiss | |||
Income Taxes [Line Items] | |||
Deferred Tax Liabilities, Net | 658,000 | 922,000 | |
Deferred Tax Liability Not Recognized, Amount of Unrecognized Deferred Tax Liability, Undistributed Earnings of Foreign Subsidiaries | 1,295,000 | 1,282,000 | |
JAPAN | |||
Income Taxes [Line Items] | |||
Deferred Tax Assets, Net | 896,000 | 905,000 | |
Stock-based compensation | 46,000 | 44,000 | |
US | |||
Income Taxes [Line Items] | |||
Deferred Tax Assets, Net | 3,139,000 | 273,000 | |
California | |||
Income Taxes [Line Items] | |||
Operating Loss Carryforwards | 33,000,000 | ||
State | |||
Income Taxes [Line Items] | |||
Increase (Decrease) Deferred Tax Assets | 387,000 | ||
Increase (Decrease) Deferred Tax Assets Valuation Allowance | (760,000) | $ 447,000 | $ (646,000) |
Deferred Tax Assets, Net | 373,000 | ||
Deferred tax assets, valuation allowance | 6,643,000 | ||
Federal and State | |||
Income Taxes [Line Items] | |||
Deferred Tax Assets, Net | 3,512,000 | ||
Federal | |||
Income Taxes [Line Items] | |||
Deferred Tax Assets, Net | 3,003,000 | ||
Deferred tax assets, valuation allowance | 33,813,000 | ||
Deferred tax asset, in foreign tax credits and foreign withholding taxes | $ 2,285,000 |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Jan. 03, 2020 | Dec. 28, 2018 |
Deferred tax assets: | ||
Allowance for doubtful accounts and sales returns | $ 233 | $ 252 |
Inventories | 703 | 560 |
Accrued vacation | 428 | 387 |
Accrued other expenses | 1,036 | 1,232 |
Stock-based compensation | 3,455 | 2,489 |
Pensions | 1,159 | 884 |
Depreciation and amortization | 162 | 843 |
Net operating loss carryforwards | 32,251 | 34,347 |
Business, foreign, AMT and R and D credit carryforwards | 3,164 | 3,256 |
Prepaid expenses | 272 | 272 |
Capitalized R&D | 986 | 968 |
Operating lease liability | 1,309 | |
Other | 5 | 122 |
Valuation allowance | (37,603) | (43,075) |
Total deferred tax assets | 7,560 | 2,537 |
Deferred tax liabilities: | ||
Foreign tax withholding | (1,295) | (1,282) |
Operating lease ROU assets | (1,309) | |
Amortization of R&D | (805) | (759) |
Net foreign earnings not permanently reinvested | (401) | (240) |
Total deferred tax liabilities | (3,810) | (2,281) |
Total net deferred tax assets | $ 3,750 | $ 256 |
Income Taxes - Summary of Incom
Income Taxes - Summary of Income Tax Examinations (Details) | 12 Months Ended |
Jan. 03, 2020 | |
SWITZERLAND | |
Income Taxes [Line Items] | |
Income Tax Examination, Year under Examination | 2018 |
Minimum | US Federal | |
Income Taxes [Line Items] | |
Income Tax Examination, Year under Examination | 2016 |
Minimum | California | |
Income Taxes [Line Items] | |
Income Tax Examination, Year under Examination | 2015 |
Minimum | JAPAN | |
Income Taxes [Line Items] | |
Income Tax Examination, Year under Examination | 2017 |
Maximum | US Federal | |
Income Taxes [Line Items] | |
Income Tax Examination, Year under Examination | 2018 |
Maximum | California | |
Income Taxes [Line Items] | |
Income Tax Examination, Year under Examination | 2018 |
Maximum | JAPAN | |
Income Taxes [Line Items] | |
Income Tax Examination, Year under Examination | 2018 |
Employee Benefit Plans - Schedu
Employee Benefit Plans - Schedule of Defined Benefit Plans Disclosures (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Jan. 03, 2020 | Dec. 28, 2018 | Dec. 29, 2017 | ||
Swiss Plan | ||||
Change in Projected Benefit Obligation: | ||||
Projected benefit obligation, beginning of period | $ 8,794 | $ 7,445 | ||
Service cost | [1] | 739 | 474 | $ 381 |
Interest cost | [2] | 77 | 56 | 53 |
Participant contributions | 458 | 361 | ||
Benefits deposited (paid) | 492 | 189 | ||
Actuarial loss (gain) | 2,429 | 269 | ||
Prior service credit | (125) | 0 | ||
Projected benefit obligation, end of period | 12,864 | 8,794 | 7,445 | |
Change in Plan Assets: | ||||
Plan assets at fair value, beginning of period | 5,130 | 4,144 | ||
Actual return on plan assets | 152 | 3 | ||
Employer contributions | 542 | 433 | ||
Participant contributions | 458 | 361 | ||
Benefits deposited (paid) | 492 | 189 | ||
Plan assets at fair value, end of period | 6,774 | 5,130 | 4,144 | |
Funded status (pension liability), end of year | [3] | (6,090) | (3,664) | |
Amount Recognized in Accumulated Other Comprehensive Income (Loss), net of tax: | ||||
Actuarial loss on plan assets | (1,031) | (1,035) | ||
Actuarial loss on benefit obligation | (4,317) | (2,145) | ||
Actuarial gain (loss) recognized in current year | 744 | 630 | ||
Prior service credit | 258 | 165 | ||
Effect of curtailments | 609 | 609 | ||
Accumulated other comprehensive income (loss) | (3,737) | (1,776) | ||
Accumulated benefit obligation at year end | (12,043) | (8,230) | ||
Japan Plan | ||||
Change in Projected Benefit Obligation: | ||||
Projected benefit obligation, beginning of period | 1,646 | 1,352 | ||
Service cost | [1] | 185 | 153 | 147 |
Interest cost | [4] | 7 | 4 | 4 |
Benefits deposited (paid) | (66) | (9) | ||
Actuarial loss (gain) | (58) | 119 | ||
Foreign exchange adjustment | 36 | 27 | ||
Projected benefit obligation, end of period | 1,750 | 1,646 | 1,352 | |
Change in Plan Assets: | ||||
Plan assets at fair value, beginning of period | 0 | 0 | ||
Actual return on plan assets | 0 | 0 | ||
Employer contributions | 0 | 0 | ||
Plan assets at fair value, end of period | 0 | 0 | $ 0 | |
Benefits paid | 0 | 0 | ||
Distribution of plan assets | 0 | 0 | ||
Foreign exchange adjustment | 0 | 0 | ||
Funded status (pension liability), end of year | [3] | (1,750) | (1,646) | |
Amount Recognized in Accumulated Other Comprehensive Income (Loss), net of tax: | ||||
Transition obligation | 0 | 0 | ||
Actuarial gain (loss) recognized in current year | (37) | (36) | ||
Prior service credit | 7 | 8 | ||
Net gain | 68 | 38 | ||
Accumulated other comprehensive income (loss) | 38 | 10 | ||
Accumulated benefit obligation at year end | $ (1,599) | $ (1,416) | ||
[1] | Recognized in selling general and administrative expenses on the Consolidated Statements of Operations. | |||
[2] | For years ended 2019 and 2018, recognized in other income (expense), net, and for the year ended 2017, recognized in selling, general and administrative expenses on the Consolidated Statements of Operations. | |||
[3] | The underfunded balance was included in pension liability on the Consolidated Balance Sheets. | |||
[4] | For the years ended 2019 and 2018, recognized in other income (expense), net, and for the year ended 2017, recognized in selling, general and administrative expenses on the Consolidated Statements of Operations. |
Employee Benefit Plans - Sche_2
Employee Benefit Plans - Schedule of Net Benefit Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Jan. 03, 2020 | Dec. 28, 2018 | Dec. 29, 2017 | ||
Swiss Plan | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Service cost | [1] | $ 739 | $ 474 | $ 381 |
Interest cost | [2] | 77 | 56 | 53 |
Expected return on plan assets | [2] | (147) | (116) | (94) |
Prior service credit | [2],[3] | (21) | (21) | (7) |
Actuarial loss recognized in current period | [2],[3] | 129 | 113 | 72 |
Net periodic pension cost | 777 | 506 | 405 | |
Japan Plan | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Service cost | [1] | 185 | 153 | 147 |
Interest cost | [4] | 7 | 4 | 4 |
Net amortization of transitional obligation | [4],[5] | 11 | 11 | |
Prior service credit | [4],[5] | (1) | (1) | (1) |
Actuarial loss recognized in current period | [4],[5] | 0 | 0 | (3) |
Net periodic pension cost | $ 191 | $ 167 | $ 158 | |
[1] | Recognized in selling general and administrative expenses on the Consolidated Statements of Operations. | |||
[2] | For years ended 2019 and 2018, recognized in other income (expense), net, and for the year ended 2017, recognized in selling, general and administrative expenses on the Consolidated Statements of Operations. | |||
[3] | Amounts reclassified from accumulated other comprehensive income (loss). | |||
[4] | For the years ended 2019 and 2018, recognized in other income (expense), net, and for the year ended 2017, recognized in selling, general and administrative expenses on the Consolidated Statements of Operations. | |||
[5] | Amounts reclassified from accumulated other comprehensive loss |
Employee Benefit Plans - Sche_3
Employee Benefit Plans - Schedule of Amounts Recognized in Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 03, 2020 | Dec. 28, 2018 | Dec. 29, 2017 | |
Swiss Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Current year actuarial gain (loss) on plan assets | $ 4 | $ (101) | $ 98 |
Current year actuarial loss on benefit obligation | (2,172) | (243) | (644) |
Actuarial gain (loss) recorded in current year | 114 | 103 | 65 |
Prior service credit | 93 | (19) | 126 |
Change in other comprehensive income (loss) | (1,961) | (260) | (355) |
Japan Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Amortization of net transition obligation | 7 | 8 | |
Amortization of actuarial loss | (1) | (1) | 0 |
Actuarial gain (loss) recorded in current year | 30 | (84) | (22) |
Prior service credit | (1) | 0 | 0 |
Change in other comprehensive income (loss) | $ 28 | $ (78) | $ (14) |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Details) | 12 Months Ended |
Jan. 03, 2020USD ($) | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Description Related To Benefit Based Under Point System | Each point earned is worth a fixed monetary value, 1,000 Yen per point, regardless of the level grade or zone of the employee. Gross benefits are calculated based on the cumulative number of points earned over the service period multiplied by 1,000 Yen. The mandatory retirement age limit is 60 years old |
Defined Contribution Plan Employees Eligible Payroll | $ 19,000 |
Defined Contribution Plan Employees Catch-up Contribution | $ 6,000 |
Employers Contribution Percentage | 80.00% |
Employee’s Contribution up to First Percentage of Employee’s Compensation | 6.00% |
Swiss Plan | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Future Estimated Cash Contribution | $ 631,000 |
Swiss Plan | Pension Costs | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Defined Benefit Plan, Expected Amortization of Prior Service Cost (Credit), Next Fiscal Year | 318,000 |
Japan Plan | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Defined Benefit Plan, Expected Amortization of Prior Service Cost (Credit), Next Fiscal Year | $ 1,000 |
Employee Benefit Plans - Sche_4
Employee Benefit Plans - Schedule of Assumptions Used (Details) | 12 Months Ended | |
Jan. 03, 2020 | Dec. 28, 2018 | |
Swiss Plan | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Discount rate | 0.30% | 0.80% |
Salary increases | 2.00% | 2.00% |
Expected return on plan assets | 2.50% | 2.50% |
Expected average remaining working lives in years | 10 years | 10 years |
Japan Plan | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Discount rate | 0.30% | 0.40% |
Salary increases | 4.50% | 6.00% |
Expected average remaining working lives in years | 10 years | 9 years 4 months 24 days |
Employee Benefit Plans - Sche_5
Employee Benefit Plans - Schedule of Changes in Fair Value of Plan Assets (Details) - Swiss Plan - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 03, 2020 | Dec. 28, 2018 | |
Plan assets at fair value, beginning of period | $ 5,130 | $ 4,144 |
Actual return on plan assets | 152 | 3 |
Plan assets at fair value, end of period | 6,774 | 5,130 |
Insurance Contracts | Fair Value, Inputs, Level 3 | ||
Plan assets at fair value, beginning of period | 5,130 | 4,144 |
Actual return on plan assets | 152 | 3 |
Purchases, sales, and settlement | 1,492 | 983 |
Plan assets at fair value, end of period | $ 6,774 | $ 5,130 |
Employee Benefit Plans - Sche_6
Employee Benefit Plans - Schedule Of Defined Benefit Plan Estimated Future Benefit Payments (Details) $ in Thousands | Jan. 03, 2020USD ($) |
Swiss Plan | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
2020 | $ 65 |
2021 | 79 |
2022 | 99 |
2023 | 117 |
2024 | 132 |
Thereafter | 1,961 |
Total | 2,453 |
Japan Plan | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
2020 | 44 |
2021 | 110 |
2022 | 48 |
2023 | 210 |
2024 | 97 |
Thereafter | 1,059 |
Total | $ 1,568 |
Employee Benefit Plans - Sche_7
Employee Benefit Plans - Schedule of Defined Contribution, Net of Forfeitures, 401(k) Plan (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 03, 2020 | Dec. 28, 2018 | Dec. 29, 2017 | |
Defined Contribution Pension And Other Postretirement Plans Disclosure [Abstract] | |||
Employer contributions, net of forfeitures | $ 1,279 | $ 996 | $ 764 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Details) - USD ($) | Aug. 10, 2018 | Jun. 14, 2018 | Jan. 03, 2020 | Dec. 28, 2018 |
Stockholders Equity Note [Line Items] | ||||
Weighted-average period of cost expected to recognize | 2 years | |||
Estimated forfeiture rate | 8.00% | |||
Proceeds from public offering of stock (in shares) | 1,999,850 | |||
Shares issued, price per share | $ 36.309 | |||
Proceeds from public offering of stock | $ 72,150,000 | $ 72,150,000 | ||
Omnibus Plan | ||||
Stockholders Equity Note [Line Items] | ||||
Share-based compensation arrangement by share-based payment award, expiration period | 10 years | |||
Share-based compensation arrangement by share-based payment award, number of additional shares authorized | 2,235,000 | |||
Share-based compensation arrangement by share-based payment award, number of shares authorized | 15,385,000 | |||
Omnibus Plan | Employee Stock Option | ||||
Stockholders Equity Note [Line Items] | ||||
Share-based compensation arrangement by share-based payment award, vesting period | 3 years | |||
Omnibus Plan | Restricted Stock | ||||
Stockholders Equity Note [Line Items] | ||||
Share-based compensation arrangement by share-based payment award, number of shares available for grant | 1,633,221 | |||
Omnibus Plan | Restricted Stock | Minimum | ||||
Stockholders Equity Note [Line Items] | ||||
Share-based compensation arrangement by share-based payment award, vesting period | 1 year | |||
Omnibus Plan | Restricted Stock | Maximum | ||||
Stockholders Equity Note [Line Items] | ||||
Share-based compensation arrangement by share-based payment award, vesting period | 3 years |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of Share-based Compensation, Fair Value of Stock-Based Compensation Granted (Details) $ in Thousands | 12 Months Ended |
Jan. 03, 2020USD ($) | |
Schedule of Employee Service Share-based Compensation [Line Items] | |
Total stock-based compensation expense | $ 15,854 |
Stock Options | |
Schedule of Employee Service Share-based Compensation [Line Items] | |
Total stock-based compensation expense | 14,813 |
Restricted Stock Units (RSUs) | |
Schedule of Employee Service Share-based Compensation [Line Items] | |
Total stock-based compensation expense | 728 |
Restricted Stock | |
Schedule of Employee Service Share-based Compensation [Line Items] | |
Total stock-based compensation expense | $ 313 |
Stockholders' Equity - Schedu_2
Stockholders' Equity - Schedule of Compensation Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 03, 2020 | Dec. 28, 2018 | Dec. 29, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock-based compensation expense | $ 10,547 | $ 6,762 | $ 3,161 |
Employee Stock Option | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock-based compensation expense | 8,144 | 4,013 | 1,731 |
Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock-based compensation expense | 320 | 274 | 186 |
Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock-based compensation expense | 1,905 | 2,120 | 1,226 |
Non Employee Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock-based compensation expense | $ 178 | $ 355 | $ 18 |
Stockholders' Equity - Schedu_3
Stockholders' Equity - Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 03, 2020 | Dec. 28, 2018 | Dec. 29, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock-based compensation expense, net | $ 10,547 | $ 6,762 | $ 3,161 |
Amounts capitalized as part of inventory | 1,017 | 637 | 372 |
Total stock-based compensation expense, gross | 11,564 | 7,399 | 3,533 |
Cost of Sales | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock-based compensation expense, net | 52 | 15 | 8 |
General and Administrative | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock-based compensation expense, net | 4,010 | 2,635 | 1,487 |
Marketing and Selling | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock-based compensation expense, net | 3,318 | 1,805 | 805 |
Research and Development Expense | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock-based compensation expense, net | $ 3,167 | $ 2,307 | $ 861 |
Stockholders' Equity - Schedu_4
Stockholders' Equity - Schedule of Unrecognized Compensation Cost Related to Non-Vested Stock-Based Compensation Arrangements (Details) $ in Thousands | Jan. 03, 2020USD ($) |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock options | $ 14,817 |
Restricted stock and restricted stock units | 594 |
Total unrecognized stock-based compensation cost | $ 15,411 |
Stockholders' Equity - Schedu_5
Stockholders' Equity - Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions (Details) | 12 Months Ended | ||
Jan. 03, 2020 | Dec. 28, 2018 | Dec. 29, 2017 | |
Stockholders Equity Note [Abstract] | |||
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Expected volatility | 53.00% | 53.00% | 57.00% |
Risk-free interest rate | 2.40% | 2.71% | 1.96% |
Expected term (in years) | 5 years 7 months 28 days | 5 years 8 months 19 days | 5 years 8 months 1 day |
Stockholders' Equity - Schedu_6
Stockholders' Equity - Schedule of Share-based Compensation, Stock Options, Activity (Details) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended |
Jan. 03, 2020USD ($)$ / sharesshares | |
Stockholders Equity Note [Abstract] | |
Options, Outstanding at December 28, 2018 | shares | 3,920 |
Options, Granted, Shares | shares | 824 |
Options, Exercised, Shares | shares | (388) |
Options, Forfeited or expired, Shares | shares | (30) |
Options,Outstanding at January 3, 2020 | shares | 4,326 |
Options, Exercisable at January 3, 2020 | shares | 3,047 |
Weighted Average Exercise Price, Options Outstanding at December 28, 2018 | $ / shares | $ 11.80 |
Weighted Average Exercise Price, Options, Granted | $ / shares | 35.40 |
Weighted Average Exercise Price,Options, Exercised | $ / shares | 8.92 |
Weighted Average Exercise Price, Options, Forfeited or Expired | $ / shares | 25.87 |
Weighted Average Exercise Price, Options Outstanding at January 3, 2020 | $ / shares | 16.46 |
Weighted Average Exercise Price, Options Exercisable at January 3, 2020 | $ / shares | $ 10.66 |
Weighted Average Remaining Contractual Term, Options, Outstanding at January 3, 2020 | 6 years 6 months 3 days |
Weighted Average Remaining Contractual Term, Options, Exercisable at January 3, 2020 | 5 years 6 months 14 days |
Aggregate Intrinsic Value, Options, Outstanding at January 3, 2020 | $ | $ 78,995 |
Aggregate Intrinsic Value, Options, Outstanding at January 3, 2020 | $ | $ 72,393 |
Stockholders' Equity - Share-ba
Stockholders' Equity - Share-based Compensation, Performance Shares Award Unvested Activity (Details) - $ / shares shares in Thousands | 12 Months Ended | ||
Jan. 03, 2020 | Dec. 28, 2018 | Dec. 29, 2017 | |
Schedule of Nonvested Options Activity [Line Items] | |||
Options, Granted, Shares | 824 | ||
Granted, Weighted Average Grant Date Fair Value | $ 17.95 | $ 11.95 | $ 5.42 |
Nonvested Stock Options | |||
Schedule of Nonvested Options Activity [Line Items] | |||
Options, Unvested at December 28, 2018 | 1,260 | ||
Options, Granted, Shares | 824 | ||
Options, Forfeited or expired, Shares | (30) | ||
Options, Vested, Shares | (775) | ||
Options, Unvested at January 3, 2020 | 1,279 | 1,260 | |
Unvested at December 28, 2018, Weighted-Average Grant-Date Fair Value | $ 9.67 | ||
Granted, Weighted Average Grant Date Fair Value | 17.95 | ||
Forfeited or expired during the year, Weighted Average Grant Date Fair Value | 13.29 | ||
Vested during the year, Weighted Average Grant Date Fair Value | 8.83 | ||
Unvested at January 3, 2020, Weighted Average Grant Date Fair Value | $ 15.44 | $ 9.67 |
Stockholders' Equity - Summary
Stockholders' Equity - Summary of Weighted Average Grant Date Fair Value of Options Granted and Total intrinsic Value of options Exercised (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Jan. 03, 2020 | Dec. 28, 2018 | Dec. 29, 2017 | |
Stockholders Equity Note [Abstract] | |||
Weighted-average grant-date fair value | $ 17.95 | $ 11.95 | $ 5.42 |
Intrinsic value of options (in thousands) | $ 9,955 | $ 13,699 | $ 3,065 |
Stockholders' Equity - Schedu_7
Stockholders' Equity - Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity (Details) shares in Thousands | 12 Months Ended |
Jan. 03, 2020$ / sharesshares | |
Restricted Stock | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Outstanding at December 28, 2018 | shares | 11 |
Granted, (In Shares) | shares | 11 |
Vested (In shares) | shares | (11) |
Outstanding at January 3, 2020 | shares | 11 |
Outstanding at December 28, 2018 | $ / shares | $ 29.80 |
Granted, Weighted Average Grant-Date Fair Value per Share | $ / shares | 29.39 |
Vested, Weighted Average Grant-Date Fair Value per Share | $ / shares | 29.80 |
Outstanding at January 3, 2020 | $ / shares | $ 29.39 |
Restricted Stock Units (RSUs) | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Outstanding at December 28, 2018 | shares | 322 |
Granted, (In Shares) | shares | 19 |
Vested (In shares) | shares | (229) |
Forfeited or expired (In shares) | shares | (8) |
Outstanding at January 3, 2020 | shares | 104 |
Outstanding at December 28, 2018 | $ / shares | $ 10.46 |
Granted, Weighted Average Grant-Date Fair Value per Share | $ / shares | 37.98 |
Vested, Weighted Average Grant-Date Fair Value per Share | $ / shares | 12.58 |
Forfeited, Weighted Average Grant-Date Fair Value per Share | $ / shares | 11.57 |
Outstanding at January 3, 2020 | $ / shares | $ 10.79 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) | Jan. 03, 2020 | Dec. 28, 2018 |
Commitments And Contingencies Disclosure [Abstract] | ||
Asset retirement obligations | $ 211,000 | $ 206,000 |
Due to Employees | 10,000 | |
Purchase Commitment, Remaining Minimum Amount Committed | $ 13,450,000 |
Related Party Transactions - Sc
Related Party Transactions - Schedule of Amounts Due from Employees Included in Prepayments, Deposits and Other Current Assets (Details) - USD ($) $ in Thousands | Jan. 03, 2020 | Dec. 28, 2018 |
Related Party Transactions [Abstract] | ||
Due from employees | $ 1 | $ 10 |
Supplemental Disclosure of Ca_3
Supplemental Disclosure of Cash Flow Information - Schedule of Cash Flow, Supplemental Disclosures (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 03, 2020 | Dec. 28, 2018 | Dec. 29, 2017 | |
Non-cash operating activities: | |||
Insurance receivable | $ 7,000 | ||
Settlement liability | 7,000 | ||
Non-cash investing and financing activities: | |||
Right-of-use-assets obtained in exchange for new finance lease liabilities | $ 679 | $ 1,656 | 563 |
Purchase of property and equipment included in accounts payable | 381 | 207 | 121 |
Cash paid: | |||
Interest | 105 | 130 | 90 |
Taxes | $ 792 | $ 635 | $ 881 |
Basic and Diluted Net Income _3
Basic and Diluted Net Income (Loss) Per Share - Summary of Computation of Basic and Diluted Net Income (Loss) Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 03, 2020 | Sep. 27, 2019 | Jun. 28, 2019 | Mar. 29, 2019 | Dec. 28, 2018 | Sep. 28, 2018 | Jun. 29, 2018 | Mar. 30, 2018 | Jan. 03, 2020 | Dec. 28, 2018 | Dec. 29, 2017 | |
Numerator: | |||||||||||
Net income (loss) | $ 6,379 | $ 2,388 | $ 3,914 | $ 1,367 | $ 1,096 | $ 1,459 | $ 1,830 | $ 583 | $ 14,048 | $ 4,968 | $ (2,139) |
Weighted average common shares: | |||||||||||
Common shares outstanding | 44,504 | 42,598 | 41,025 | ||||||||
Unvested restricted stock (in shares) | (11) | (11) | (21) | ||||||||
Denominator for basic calculation | 44,493 | 42,587 | 41,004 | ||||||||
Weighted average effects of potentially diluted common stock: | |||||||||||
Diluted | 46,895 | 45,257 | 41,004 | ||||||||
Net income (loss) per share: | |||||||||||
Basic | $ 0.14 | $ 0.05 | $ 0.09 | $ 0.03 | $ 0.02 | $ 0.03 | $ 0.04 | $ 0.01 | $ 0.32 | $ 0.12 | $ (0.05) |
Diluted | $ 0.14 | $ 0.05 | $ 0.08 | $ 0.03 | $ 0.02 | $ 0.03 | $ 0.04 | $ 0.01 | $ 0.30 | $ 0.11 | $ (0.05) |
Employee Stock Option | |||||||||||
Weighted average effects of potentially diluted common stock: | |||||||||||
Diluted | 2,254 | 2,360 | 0 | ||||||||
Unvested Restricted Stock | |||||||||||
Weighted average effects of potentially diluted common stock: | |||||||||||
Diluted | 6 | 10 | 0 | ||||||||
Restricted Stock Units | |||||||||||
Weighted average effects of potentially diluted common stock: | |||||||||||
Diluted | 142 | 300 | 0 |
Basic and Diluted Net Income _4
Basic and Diluted Net Income (Loss) Per Share - Schedule of Anti-dilutive Securities Excluded from Computation of Earnings Per Share (Details) - shares shares in Thousands | 12 Months Ended | ||
Jan. 03, 2020 | Dec. 28, 2018 | Dec. 29, 2017 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Anti-dilutive securities excluded from computation of earnings per share, Amount | 1,503 | 315 | 2,440 |
Options | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Anti-dilutive securities excluded from computation of earnings per share, Amount | 1,503 | 315 | 2,237 |
Restricted Stock and Restricted Stock Units | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Anti-dilutive securities excluded from computation of earnings per share, Amount | 203 |
Disaggregation of Revenues, G_3
Disaggregation of Revenues, Geographic Sales and Product Sales - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 03, 2020 | Sep. 27, 2019 | Jun. 28, 2019 | Mar. 29, 2019 | Dec. 28, 2018 | Sep. 28, 2018 | Jun. 29, 2018 | Mar. 30, 2018 | Jan. 03, 2020 | Dec. 28, 2018 | Dec. 29, 2017 | |
Total net sales | $ 38,883 | $ 39,055 | $ 39,664 | $ 32,583 | $ 31,186 | $ 31,770 | $ 33,905 | $ 27,093 | $ 150,185 | $ 123,954 | $ 90,611 |
Non Consignment Sales [Member] | |||||||||||
Total net sales | 132,716 | 106,338 | 74,163 | ||||||||
Consignment Sales [Member] | |||||||||||
Total net sales | $ 17,469 | $ 17,616 | $ 16,448 |
Disaggregation of Revenues, G_4
Disaggregation of Revenues, Geographic Sales and Product Sales - Additional Information (Details) | 12 Months Ended |
Jan. 03, 2020CountrySegment | |
Geographic and Product Data [Line Items] | |
Number of countries in which Company operates | Country | 75 |
Number of operating segments | Segment | 1 |
Sales Revenue, Net | Geographic Concentration Risk [Member] | Other than China and Japan [Member] | Maximum | |
Geographic and Product Data [Line Items] | |
Concentration risk, percentage | 10.00% |
Sales Revenue, Net | Product Concentration Risk [Member] | Ophthalmic Surgical Product [Member] | |
Geographic and Product Data [Line Items] | |
Concentration risk, percentage | 100.00% |
Disaggregation of Revenues, G_5
Disaggregation of Revenues, Geographic Sales and Product Sales - Net Sales by Geographic Areas (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Jan. 03, 2020 | Sep. 27, 2019 | Jun. 28, 2019 | Mar. 29, 2019 | Dec. 28, 2018 | Sep. 28, 2018 | Jun. 29, 2018 | Mar. 30, 2018 | Jan. 03, 2020 | Dec. 28, 2018 | Dec. 29, 2017 | ||
Geographic And Sales [Line Items] | ||||||||||||
Total net sales | $ 38,883 | $ 39,055 | $ 39,664 | $ 32,583 | $ 31,186 | $ 31,770 | $ 33,905 | $ 27,093 | $ 150,185 | $ 123,954 | $ 90,611 | |
Geographic Distribution, Domestic [Member] | ||||||||||||
Geographic And Sales [Line Items] | ||||||||||||
Total net sales | 8,106 | 7,316 | 7,894 | |||||||||
Geographic Distribution, Foreign [Member] | ||||||||||||
Geographic And Sales [Line Items] | ||||||||||||
Total net sales | 142,079 | 116,638 | 82,717 | |||||||||
Geographic Distribution, Foreign [Member] | China [Member] | ||||||||||||
Geographic And Sales [Line Items] | ||||||||||||
Total net sales | [1] | 64,820 | 46,070 | 24,473 | ||||||||
Geographic Distribution, Foreign [Member] | JAPAN | ||||||||||||
Geographic And Sales [Line Items] | ||||||||||||
Total net sales | 26,881 | 23,151 | 18,125 | |||||||||
Geographic Distribution, Foreign [Member] | Other [Member] | ||||||||||||
Geographic And Sales [Line Items] | ||||||||||||
Total net sales | [2] | $ 50,378 | $ 47,417 | $ 40,119 | ||||||||
[1] | The China region includes sales into China and Hong Kong. | |||||||||||
[2] | No other location individually exceeds 10% of the total net sales. |
Disaggregation of Revenues, G_6
Disaggregation of Revenues, Geographic Sales and Product Sales - Net Sales by Products and Services (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 03, 2020 | Sep. 27, 2019 | Jun. 28, 2019 | Mar. 29, 2019 | Dec. 28, 2018 | Sep. 28, 2018 | Jun. 29, 2018 | Mar. 30, 2018 | Jan. 03, 2020 | Dec. 28, 2018 | Dec. 29, 2017 | |
Product Information [Line Items] | |||||||||||
Revenue from contract with customer, excluding assessed tax | $ 20,863 | $ 22,872 | $ 22,286 | ||||||||
Total net sales | $ 38,883 | $ 39,055 | $ 39,664 | $ 32,583 | $ 31,186 | $ 31,770 | $ 33,905 | $ 27,093 | 150,185 | 123,954 | 90,611 |
ICLs [Member] | |||||||||||
Product Information [Line Items] | |||||||||||
Revenue from contract with customer, excluding assessed tax | 129,322 | 101,082 | 68,325 | ||||||||
IOLs [Member] | |||||||||||
Product Information [Line Items] | |||||||||||
Revenue from contract with customer, excluding assessed tax | 15,689 | 16,193 | 17,258 | ||||||||
Other surgical products [Member] | |||||||||||
Product Information [Line Items] | |||||||||||
Revenue from contract with customer, excluding assessed tax | $ 5,174 | $ 6,679 | $ 5,028 |
Geographic Assets - Composition
Geographic Assets - Composition of Long-Lived Assets (Details) - USD ($) $ in Thousands | Jan. 03, 2020 | Dec. 28, 2018 |
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Property, plant and equipment, net | $ 17,065 | $ 11,451 |
Finance lease ROU assets, net | 1,867 | |
Operating lease ROU assets, net | 6,684 | |
Intangible assets, net | 296 | 243 |
Total | 25,912 | 11,694 |
U.S. | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Property, plant and equipment, net | 14,956 | 10,416 |
Finance lease ROU assets, net | 1,756 | |
Operating lease ROU assets, net | 2,920 | |
Intangible assets, net | 83 | |
Total | 19,715 | 10,416 |
JAPAN | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Property, plant and equipment, net | 306 | 330 |
Finance lease ROU assets, net | 80 | |
Operating lease ROU assets, net | 919 | |
Intangible assets, net | 213 | 243 |
Total | 1,518 | 573 |
SWITZERLAND | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Property, plant and equipment, net | 1,803 | 705 |
Finance lease ROU assets, net | 31 | |
Operating lease ROU assets, net | 2,845 | |
Total | $ 4,679 | $ 705 |
Quarterly Financial Data (Una_3
Quarterly Financial Data (Unaudited) - Schedule Of Quarterly Financial Data (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 03, 2020 | Sep. 27, 2019 | Jun. 28, 2019 | Mar. 29, 2019 | Dec. 28, 2018 | Sep. 28, 2018 | Jun. 29, 2018 | Mar. 30, 2018 | Jan. 03, 2020 | Dec. 28, 2018 | Dec. 29, 2017 | |
Quarterly Financial Data [Abstract] | |||||||||||
Net sales | $ 38,883 | $ 39,055 | $ 39,664 | $ 32,583 | $ 31,186 | $ 31,770 | $ 33,905 | $ 27,093 | $ 150,185 | $ 123,954 | $ 90,611 |
Gross profit | 28,824 | 29,051 | 29,899 | 24,180 | 22,992 | 23,860 | 25,227 | 19,431 | 111,954 | 91,510 | 64,280 |
Net income (loss) | $ 6,379 | $ 2,388 | $ 3,914 | $ 1,367 | $ 1,096 | $ 1,459 | $ 1,830 | $ 583 | $ 14,048 | $ 4,968 | $ (2,139) |
Net income per share – basic | $ 0.14 | $ 0.05 | $ 0.09 | $ 0.03 | $ 0.02 | $ 0.03 | $ 0.04 | $ 0.01 | $ 0.32 | $ 0.12 | $ (0.05) |
Net income per share – diluted | $ 0.14 | $ 0.05 | $ 0.08 | $ 0.03 | $ 0.02 | $ 0.03 | $ 0.04 | $ 0.01 | $ 0.30 | $ 0.11 | $ (0.05) |
SCHEDULE II - VALUATION AND Q_2
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS AND RESERVES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 03, 2020 | Dec. 28, 2018 | Dec. 29, 2017 | |
Valuation And Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Year | $ 46,520 | $ 43,187 | $ 59,502 |
Additions charged to costs and expenses | 604 | 8,215 | 6,647 |
Deductions | 5,789 | 4,882 | 22,962 |
Balance at End of Year | 41,335 | 46,520 | 43,187 |
Allowance For Doubtful Accounts | |||
Valuation And Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Year | 550 | 349 | 276 |
Additions charged to costs and expenses | (320) | 207 | 81 |
Deductions | 142 | 6 | 8 |
Balance at End of Year | 88 | 550 | 349 |
Sales Return Reserve | |||
Valuation And Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Year | 2,895 | 2,182 | 1,780 |
Additions charged to costs and expenses | 6,183 | 5,474 | 4,313 |
Deductions | 5,434 | 4,761 | 3,911 |
Balance at End of Year | 3,644 | 2,895 | 2,182 |
Deferred Tax Asset Valuation Allowance | |||
Valuation And Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Year | 43,075 | 40,656 | 57,446 |
Additions charged to costs and expenses | (5,259) | 2,534 | 2,253 |
Deductions | 213 | 115 | 19,043 |
Balance at End of Year | $ 37,603 | $ 43,075 | $ 40,656 |