Document and Entity Information
Document and Entity Information - Jul. 04, 2015 - shares | Total |
Document and Entity Information [Abstract] | |
Entity Registrant Name | SELECT COMFORT CORP |
Entity Central Index Key | 827,187 |
Current Fiscal Year End Date | --01-02 |
Entity Filer Category | Large Accelerated Filer |
Document Type | 10-Q |
Document Period End Date | Jul. 4, 2015 |
Document Fiscal Year Focus | 2,015 |
Document Fiscal Period Focus | Q2 |
Amendment Flag | false |
Entity Common Stock, Shares Outstanding | 51,414,000 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jul. 04, 2015 | Jan. 03, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 26,074 | $ 51,995 |
Marketable debt securities – current | 62,379 | 69,609 |
Accounts receivable, net of allowance for doubtful accounts of $701 and $739, respectively | 20,464 | 19,693 |
Inventories | 68,377 | 53,535 |
Prepaid expenses | 20,584 | 17,792 |
Deferred income taxes | 8,757 | 8,786 |
Other current assets | 10,836 | 11,185 |
Total current assets | 217,471 | 232,595 |
Non-current assets: | ||
Marketable debt securities – non-current | 28,751 | 44,441 |
Property and equipment, net | 186,696 | 165,453 |
Goodwill and intangible assets, net | 15,570 | 15,986 |
Deferred income taxes | 7,944 | 3,433 |
Other assets | 19,139 | 12,279 |
Total assets | 475,571 | 474,187 |
Current liabilities: | ||
Accounts payable | 87,985 | 84,197 |
Customer prepayments | 25,660 | 28,726 |
Accrued sales returns | 12,679 | 15,262 |
Compensation and benefits | 24,395 | 33,066 |
Taxes and withholding | 9,867 | 10,207 |
Other current liabilities | 18,684 | 15,594 |
Total current liabilities | 179,270 | 187,052 |
Non-current liabilities: | ||
Warranty liabilities | 3,425 | 2,722 |
Other long-term liabilities | 37,484 | 27,506 |
Total liabilities | 220,179 | 217,280 |
Shareholders’ equity: | ||
Undesignated preferred stock; 5,000 shares authorized, no shares issued and outstanding | 0 | 0 |
Common stock, $0.01 par value; 142,500 shares authorized, 51,414 and 52,798 shares issued and outstanding, respectively | 514 | 528 |
Additional paid-in capital | 0 | 0 |
Retained earnings | 254,860 | 256,413 |
Accumulated other comprehensive income (loss) | 18 | (34) |
Total shareholders’ equity | 255,392 | 256,907 |
Total liabilities and shareholders’ equity | $ 475,571 | $ 474,187 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jul. 04, 2015 | Jan. 03, 2015 |
Current assets: | ||
Accounts receivable, net of allowance for doubtful accounts | $ 701 | $ 739 |
Shareholders’ equity: | ||
Undesignated preferred stock, shares authorized (in shares) | 5,000,000 | 5,000,000 |
Undesignated preferred stock, shares issued (in shares) | 0 | 0 |
Undesignated preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 142,500,000 | 142,500,000 |
Common stock, shares issued (in shares) | 51,414,000 | 52,798,000 |
Common stock, shares outstanding (in shares) | 51,414,000 | 52,798,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 04, 2015 | Jun. 28, 2014 | Jul. 04, 2015 | Jun. 28, 2014 | |
Income Statement [Abstract] | ||||
Net sales | $ 275,289 | $ 234,763 | $ 625,098 | $ 511,175 |
Cost of sales | 104,750 | 92,366 | 238,726 | 197,395 |
Gross profit | 170,539 | 142,397 | 386,372 | 313,780 |
Operating expenses: | ||||
Sales and marketing | 126,627 | 106,712 | 267,130 | 231,734 |
General and administrative | 23,880 | 21,265 | 52,134 | 40,161 |
Research and development | 3,403 | 1,709 | 6,754 | 3,372 |
Total operating expenses | 153,910 | 129,686 | 326,018 | 275,267 |
Operating income | 16,629 | 12,711 | 60,354 | 38,513 |
Other income, net | 133 | 78 | 286 | 180 |
Income before income taxes | 16,762 | 12,789 | 60,640 | 38,693 |
Income tax expense | 5,724 | 4,308 | 20,803 | 13,220 |
Net income | $ 11,038 | $ 8,481 | $ 39,837 | $ 25,473 |
Basic net income per share: | ||||
Net income per share – basic (in USD per share) | $ 0.21 | $ 0.16 | $ 0.77 | $ 0.47 |
Weighted-average shares – basic (in shares) | 51,672,000 | 53,648,000 | 52,009,000 | 53,880,000 |
Diluted net income per share: | ||||
Net income per share – diluted (in USD per share) | $ 0.21 | $ 0.16 | $ 0.75 | $ 0.47 |
Weighted-average shares – diluted (in shares) | 52,544,000 | 54,324,000 | 52,935,000 | 54,570,000 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 04, 2015 | Jun. 28, 2014 | Jul. 04, 2015 | Jun. 28, 2014 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 11,038 | $ 8,481 | $ 39,837 | $ 25,473 |
Other comprehensive (loss) income– unrealized (loss) gain on available-for-sale marketable debt securities, net of income tax | (20) | 20 | 52 | 30 |
Comprehensive income | $ 11,018 | $ 8,501 | $ 39,889 | $ 25,503 |
Consolidated Statement of Share
Consolidated Statement of Shareholders' Equity - 6 months ended Jul. 04, 2015 - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-In Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] |
Balance at Jan. 03, 2015 | $ 256,907 | $ 528 | $ 0 | $ 256,413 | $ (34) |
Balance (in shares) at Jan. 03, 2015 | 52,798,000 | 52,798,000 | |||
Net income | $ 39,837 | $ 0 | 0 | 39,837 | 0 |
Other comprehensive income: | |||||
Unrealized gain on available-for-sale marketable debt securities, net of tax | 52 | 0 | 0 | 0 | 52 |
Exercise of common stock options | 2,458 | $ 2 | 2,456 | 0 | 0 |
Exercise of common stock options (in shares) | 198,000 | ||||
Tax effect from stock-based compensation | 1,939 | $ 0 | 1,939 | 0 | 0 |
Stock-based compensation (in shares) | 52,000 | ||||
Stock-based compensation | 5,828 | $ 1 | 5,827 | 0 | 0 |
Repurchases of common stock | (51,629) | $ (17) | (10,222) | (41,390) | 0 |
Repurchases of common stock (in shares) | (1,634,000) | ||||
Balance at Jul. 04, 2015 | $ 255,392 | $ 514 | $ 0 | $ 254,860 | $ 18 |
Balance (in shares) at Jul. 04, 2015 | 51,414,000 | 51,414,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jul. 04, 2015 | Jun. 28, 2014 | |
Cash flows from operating activities: | ||
Net income | $ 39,837 | $ 25,473 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 21,903 | 19,213 |
Stock-based compensation | 5,828 | 2,035 |
Net loss on disposals and impairments of assets | 184 | 87 |
Excess tax benefits from stock-based compensation | (1,945) | (720) |
Deferred income taxes | (4,515) | (2,003) |
Changes in operating assets and liabilities: | ||
Accounts receivable | (825) | 651 |
Inventories | (14,842) | (3,004) |
Income taxes | 4,221 | (394) |
Prepaid expenses and other assets | (944) | (4,355) |
Accounts payable | 7,879 | (1,042) |
Customer prepayments | (3,066) | 2,695 |
Accrued compensation and benefits | (8,121) | 9,724 |
Other taxes and withholding | (2,622) | (529) |
Warranty liabilities | 1,113 | 281 |
Other accruals and liabilities | 969 | 1,466 |
Net cash provided by operating activities | 45,054 | 49,578 |
Cash flows from investing activities: | ||
Purchases of property and equipment | (38,938) | (39,766) |
Investments in marketable debt securities | (19,306) | (28,405) |
Proceeds from maturities of marketable debt securities | 41,932 | 23,548 |
Proceeds from sales of property and equipment | 41 | 5 |
Increase in restricted cash | 0 | (500) |
Net cash used in investing activities | (16,271) | (45,118) |
Cash flows from financing activities: | ||
Repurchases of common stock | (51,629) | (21,470) |
Net decrease in short-term borrowings | (7,478) | (6,192) |
Proceeds from issuance of common stock | 2,458 | 1,366 |
Excess tax benefits from stock-based compensation | 1,945 | 720 |
Net cash used in financing activities | (54,704) | (25,576) |
Net decrease in cash and cash equivalents | (25,921) | (21,116) |
Cash and cash equivalents, at beginning of period | 51,995 | 58,223 |
Cash and cash equivalents, at end of period | $ 26,074 | $ 37,107 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jul. 04, 2015 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation We prepared the condensed consolidated financial statements as of and for the three and six months ended July 4, 2015 of Select Comfort Corporation and 100%-owned subsidiaries (“Select Comfort” or the “Company”), without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (SEC) and they reflect, in the opinion of management, all normal recurring adjustments necessary to present fairly our financial position as of July 4, 2015 , and January 3, 2015 , and the consolidated results of operations and cash flows for the periods presented. Our historical and quarterly consolidated results of operations may not be indicative of the results that may be achieved for the full year or any future period. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles (GAAP) have been condensed or omitted pursuant to such rules and regulations. These condensed consolidated financial statements should be read in conjunction with our most recent audited consolidated financial statements and related notes included in our Annual Report on Form 10-K for the fiscal year ended January 3, 2015 and other recent filings with the SEC. The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of sales, expenses and income taxes during the reporting period. Predicting future events is inherently an imprecise activity and, as such, requires the use of judgment. As future events and their effects cannot be determined with precision, actual results could differ significantly from these estimates. Changes in these estimates will be reflected in the financial statements in future periods. Our critical accounting policies consist of stock-based compensation, goodwill and indefinite-lived intangible assets, warranty liabilities and revenue recognition. The condensed consolidated financial statements include the accounts of Select Comfort Corporation and our 100%-owned subsidiaries. All significant intra-entity balances and transactions have been eliminated in consolidation. New Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (FASB) issued a comprehensive new revenue recognition model that requires a company to recognize revenue to depict the transfer of goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services. This new guidance was originally effective for annual reporting periods beginning after December 15, 2016 and early adoption was not permitted. In July 2015, the FASB deferred the effective date from annual reporting periods beginning after December 15, 2016 to annual reporting periods beginning after December 15, 2017 (including interim reporting periods within those periods). Early adoption is permitted to the original effective date of annual reporting periods beginning after December 15, 2016 (including interim reporting periods within those periods). Companies may use either a full retrospective or a modified retrospective approach to adopt this new guidance. We are evaluating the effect of the new standard on our consolidated financial statements and related disclosures, and have not yet selected a transition method. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jul. 04, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The following tables set forth by level within the fair value hierarchy, our financial assets that were accounted for at fair value on a recurring basis, according to the valuation techniques we used to determine their fair value (in thousands): July 4, 2015 Level 1 Level 2 Level 3 Total Marketable debt securities – current U.S. Treasury securities $ 15,012 $ — $ — $ 15,012 Corporate bonds — 15,059 — 15,059 U.S. Agency bonds — 15,011 — 15,011 Municipal bonds — 9,804 — 9,804 Commercial paper — 7,493 — 7,493 15,012 47,367 — 62,379 Marketable debt securities – non-current U.S. Treasury securities 7,515 — — 7,515 Corporate bonds — 12,627 — 12,627 U.S. Agency bonds — 7,530 — 7,530 Municipal bonds — 1,079 — 1,079 7,515 21,236 — 28,751 $ 22,527 $ 68,603 $ — $ 91,130 January 3, 2015 Level 1 Level 2 Level 3 Total Marketable debt securities – current U.S. Treasury securities $ 17,506 $ — $ — $ 17,506 Corporate bonds — 20,139 — 20,139 U.S. Agency bonds — 12,525 — 12,525 Commercial paper — 12,486 — 12,486 Municipal bonds — 6,953 — 6,953 17,506 52,103 — 69,609 Marketable debt securities – non-current U.S. Treasury securities 14,990 — — 14,990 Corporate bonds — 15,236 — 15,236 U.S. Agency bonds — 10,014 — 10,014 Municipal bonds — 4,201 — 4,201 14,990 29,451 — 44,441 $ 32,496 $ 81,554 $ — $ 114,050 At July 4, 2015 and January 3, 2015 , we had $1.3 million and $1.0 million , respectively, of debt and equity securities that fund our deferred compensation plan and are classified in other assets in our condensed consolidated balance sheets. We also had corresponding deferred compensation plan liabilities of $1.3 million and $1.0 million at July 4, 2015 and January 3, 2015 , respectively, which are included in other long-term liabilities in our condensed consolidated balance sheets. The majority of the debt and equity securities are Level 1 as they trade with sufficient frequency and volume to enable us to obtain pricing information on an ongoing basis. Unrealized gains/(losses) on the debt and equity securities offset those associated with the corresponding deferred compensation plan liabilities. |
Investments
Investments | 6 Months Ended |
Jul. 04, 2015 | |
Investments [Abstract] | |
Investments | Marketable Debt Securities Investments in marketable debt securities were comprised of the following (in thousands): July 4, 2015 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Corporate bonds $ 27,700 $ 3 $ (17 ) $ 27,686 U.S. Agency bonds 22,517 24 — 22,541 U.S. Treasury securities 22,503 24 — 22,527 Municipal bonds 10,887 1 (5 ) 10,883 Commercial paper 7,494 — (1 ) 7,493 $ 91,101 $ 52 $ (23 ) $ 91,130 January 3, 2015 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Corporate bonds 35,409 2 (36 ) 35,375 U.S. Treasury securities $ 32,507 $ 12 $ (23 ) $ 32,496 U.S. Agency bonds 22,545 4 (10 ) 22,539 Commercial paper 12,487 — (1 ) 12,486 Municipal bonds 11,157 2 (5 ) 11,154 $ 114,105 $ 20 $ (75 ) $ 114,050 Maturities of marketable debt securities were as follows (in thousands): July 4, 2015 January 3, 2015 Amortized Cost Fair Value Amortized Cost Fair Value Marketable debt securities – current (due in less than one year) $ 62,359 $ 62,379 $ 69,607 $ 69,609 Marketable debt securities – non-current (due in one to two years) 28,742 28,751 44,498 44,441 $ 91,101 $ 91,130 $ 114,105 $ 114,050 During the three months ended July 4, 2015 and June 28, 2014 , $25.6 million and $13.5 million , respectively, of marketable debt securities matured and were redeemed at face value. During the six months ended July 4, 2015 and June 28, 2014 , $41.8 million and $23.5 million , respectively, of marketable debt securities matured and were redeemed at face value. Other Investments We have a minority equity investment in one of our strategic product-development partners. The carrying value of this investment at July 4, 2015 and January 3, 2015 using the cost method is $6.0 million and is included in other assets on our condensed consolidated balance sheets. |
Inventories
Inventories | 6 Months Ended |
Jul. 04, 2015 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories consisted of the following (in thousands): July 4, January 3, Raw materials $ 9,499 $ 10,220 Work in progress 333 411 Finished goods 58,545 42,904 $ 68,377 $ 53,535 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 6 Months Ended |
Jul. 04, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill and Indefinite-Lived Intangible Assets At both July 4, 2015 and January 3, 2015 , our condensed consolidated balance sheets included goodwill of $9.0 million and indefinite-lived trade name/trademarks of $1.4 million . Definite-Lived Intangible Assets The following table provides the gross carrying amount and related accumulated amortization of our definite-lived intangible assets (in thousands): July 4, 2015 January 3, 2015 Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Developed technologies $ 5,231 $ 1,586 $ 5,231 $ 1,342 Customer relationships 2,413 847 2,413 675 Trade names/trademarks 101 101 101 101 $ 7,745 $ 2,534 $ 7,745 $ 2,118 |
Credit Agreement
Credit Agreement | 6 Months Ended |
Jul. 04, 2015 | |
Debt Disclosure [Abstract] | |
Debt | Credit Agreement Our $20.0 million Credit Agreement (Credit Agreement) with Wells Fargo Bank, National Association, as amended, is an unsecured revolving credit facility that matures on August 31, 2016 . The Credit Agreement contains an accordion feature that allows us to increase the amount of the line from $20 million to up to $50 million in total availability, subject to lender approval. Any borrowings under the Credit Agreement will, at our request, be classified as either LIBOR Loans or Adjusted Base Rate (ABR) Loans (both as defined in the Credit Agreement). The rate of interest payable by us in respect of loans outstanding under the revolving credit facility is: (i) with respect to LIBOR Loans, the Adjusted LIBO Rate (as defined in the Credit Agreement) for the interest period then in effect, plus 1.25% ; or (ii) with respect to ABR Loans, the ABR (as defined in the Credit Agreement) then in effect for the Daily One-Month LIBO Rate (as defined in the Credit Agreement), plus 1.50% or the prime rate. We are subject to certain financial covenants under the Credit Agreement, including minimum tangible net worth, a requirement to maintain a minimum amount of cash, cash equivalents and marketable debt securities, and to maintain at the administrative agent cash, cash equivalents and marketable debt securities equal to the amount the lenders are committed to lend under the Credit Agreement. At both July 4, 2015 and January 3, 2015 , we had no borrowings and $20 million was available under the Credit Agreement. We had no outstanding letters of credit as of July 4, 2015 or January 3, 2015 . |
Repurchase of Common Stock
Repurchase of Common Stock | 6 Months Ended |
Jul. 04, 2015 | |
Repurchase of Common Stock [Abstract] | |
Repurchase of Common Stock | Repurchase of Common Stock Repurchases of our common stock were as follows (in thousands): Three Months Ended Six Months Ended July 4, June 28, July 4, June 28, Amount repurchased under Board-approved share repurchase program $ 30,019 $ 10,011 $ 50,026 $ 20,022 Amount repurchased in connection with the vesting of employee restricted stock grants 1,135 1,223 1,603 1,448 Total amount repurchased $ 31,154 $ 11,234 $ 51,629 $ 21,470 As of July 4, 2015 , the remaining share repurchase authorization under our Board-approved share repurchase plan was $185 million . There is no expiration date governing the period over which we can repurchase shares. Any repurchased shares are constructively retired and returned to an unissued status. The cost of stock repurchases is first charged to additional paid-in capital. Once additional paid-in capital is reduced to zero, any additional amounts are charged to retained earnings. |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jul. 04, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation Stock-based compensation expense consisted of the following (in thousands): Three Months Ended Six Months Ended July 4, June 28, July 4, June 28, Options $ 672 $ 694 $ 1,316 $ 929 Restricted shares 2,374 1,449 4,512 1,106 Total stock-based compensation expense (1) 3,046 2,143 5,828 2,035 Income tax benefit 1,038 722 2,005 696 Total stock-based compensation expense, net of tax $ 2,008 $ 1,421 $ 3,823 $ 1,339 (1) The six months ended June 28, 2014 includes a $1.2 million benefit related to a change in estimated forfeitures due to employee turnover during the three months ended March 29, 2014. |
Employee Benefits
Employee Benefits | 6 Months Ended |
Jul. 04, 2015 | |
Profit Sharing and 401 (k) Plan [Abstract] | |
Employee Benefits | Employee Benefits Under our profit sharing and 401(k) plan, eligible employees may defer up to 50% of their compensation on a pre-tax basis, subject to Internal Revenue Service limitations. Each calendar quarter, we may make a discretionary contribution equal to a percentage of the employee’s contribution. During the three months ended July 4, 2015 and June 28, 2014 , our contributions, net of forfeitures, were $0.9 million and $0.9 million , respectively. During the six months ended July 4, 2015 and June 28, 2014 , our contributions, net of forfeitures, were $2.1 million and $1.8 million , respectively. |
Other Income, Net
Other Income, Net | 6 Months Ended |
Jul. 04, 2015 | |
Other Income and Expenses [Abstract] | |
Other Income, Net | Other Income, Net Other income, net, consisted of the following (in thousands): Three Months Ended Six Months Ended July 4, June 28, July 4, June 28, Interest income $ 143 $ 88 $ 306 $ 200 Interest expense (10 ) (10 ) (20 ) (20 ) Other income, net $ 133 $ 78 $ 286 $ 180 |
Net Income Per Common Share
Net Income Per Common Share | 6 Months Ended |
Jul. 04, 2015 | |
Earnings Per Share [Abstract] | |
Net Income per Common Share | Net Income per Common Share The components of basic and diluted net income per share are as follows (in thousands, except per share amounts): Three Months Ended Six Months Ended July 4, June 28, July 4, June 28, Net income $ 11,038 $ 8,481 $ 39,837 $ 25,473 Reconciliation of weighted-average shares outstanding: Basic weighted-average shares outstanding 51,672 53,648 52,009 53,880 Dilutive effect of stock-based awards 872 676 926 690 Diluted weighted-average shares outstanding 52,544 54,324 52,935 54,570 Net income per share – basic $ 0.21 $ 0.16 $ 0.77 $ 0.47 Net income per share – diluted $ 0.21 $ 0.16 $ 0.75 $ 0.47 Anti-dilutive stock-based awards excluded from the calculations of diluted net income per share calculations were immaterial for the periods presented. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jul. 04, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Sales Returns The activity in the sales returns liability account was as follows (in thousands): Six Months Ended July 4, June 28, Balance at beginning of year $ 15,262 $ 9,433 Additions that reduce net sales 40,076 32,923 Deductions from reserves (42,659 ) (33,162 ) Balance at end of period $ 12,679 $ 9,194 Warranty Liabilities The activity in the accrued warranty liabilities account was as follows (in thousands): Six Months Ended July 4, June 28, Balance at beginning of year $ 5,824 $ 4,153 Additions charged to costs and expenses for current-year sales 4,869 3,237 Deductions from reserves (4,177 ) (3,231 ) Changes in liability for pre-existing warranties during the current year, including expirations 421 274 Balance at end of period $ 6,937 $ 4,433 Legal Proceedings We are involved from time to time in various legal proceedings arising in the ordinary course of our business, including primarily commercial, product liability, employment and intellectual property claims. In accordance with generally accepted accounting principles in the United States, we record a liability in our consolidated financial statements with respect to any of these matters when it is both probable that a liability has been incurred and the amount of the liability can be reasonably estimated. With respect to currently pending legal proceedings, we have not established an estimated range of reasonably possible additional losses either because we believe that we have valid defenses to claims asserted against us or the proceeding has not advanced to a stage of discovery that would enable us to establish an estimate. We currently do not expect the outcome of these matters to have a material effect on our consolidated results of operations, financial position or cash flows. Litigation, however, is inherently unpredictable, and it is possible that the ultimate outcome of one or more claims asserted against us could adversely impact our consolidated results of operations, financial position or cash flows. We expense legal costs as incurred. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 6 Months Ended |
Jul. 04, 2015 | |
Accounting Policies [Abstract] | |
Business and Basis of Presentation, Policy | We prepared the condensed consolidated financial statements as of and for the three and six months ended July 4, 2015 of Select Comfort Corporation and 100%-owned subsidiaries (“Select Comfort” or the “Company”), without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (SEC) and they reflect, in the opinion of management, all normal recurring adjustments necessary to present fairly our financial position as of July 4, 2015 , and January 3, 2015 , and the consolidated results of operations and cash flows for the periods presented. Our historical and quarterly consolidated results of operations may not be indicative of the results that may be achieved for the full year or any future period. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles (GAAP) have been condensed or omitted pursuant to such rules and regulations. These condensed consolidated financial statements should be read in conjunction with our most recent audited consolidated financial statements and related notes included in our Annual Report on Form 10-K for the fiscal year ended January 3, 2015 and other recent filings with the SEC. |
Use of Estimates, Policy | The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of sales, expenses and income taxes during the reporting period. Predicting future events is inherently an imprecise activity and, as such, requires the use of judgment. As future events and their effects cannot be determined with precision, actual results could differ significantly from these estimates. Changes in these estimates will be reflected in the financial statements in future periods. Our critical accounting policies consist of stock-based compensation, goodwill and indefinite-lived intangible assets, warranty liabilities and revenue recognition. |
Consolidation, Policy | The condensed consolidated financial statements include the accounts of Select Comfort Corporation and our 100%-owned subsidiaries. All significant intra-entity balances and transactions have been eliminated in consolidation. |
New Accounting Pronouncements, Policy | In May 2014, the Financial Accounting Standards Board (FASB) issued a comprehensive new revenue recognition model that requires a company to recognize revenue to depict the transfer of goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services. This new guidance was originally effective for annual reporting periods beginning after December 15, 2016 and early adoption was not permitted. In July 2015, the FASB deferred the effective date from annual reporting periods beginning after December 15, 2016 to annual reporting periods beginning after December 15, 2017 (including interim reporting periods within those periods). Early adoption is permitted to the original effective date of annual reporting periods beginning after December 15, 2016 (including interim reporting periods within those periods). Companies may use either a full retrospective or a modified retrospective approach to adopt this new guidance. We are evaluating the effect of the new standard on our consolidated financial statements and related disclosures, and have not yet selected a transition method. |
Stockholders' Equity, Policy | There is no expiration date governing the period over which we can repurchase shares. Any repurchased shares are constructively retired and returned to an unissued status. The cost of stock repurchases is first charged to additional paid-in capital. Once additional paid-in capital is reduced to zero, any additional amounts are charged to retained earnings. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jul. 04, 2015 | |
Fair Value Disclosures [Abstract] | |
Assets and Liabilities that are Measured at Fair Value on a Recurring Basis | The following tables set forth by level within the fair value hierarchy, our financial assets that were accounted for at fair value on a recurring basis, according to the valuation techniques we used to determine their fair value (in thousands): July 4, 2015 Level 1 Level 2 Level 3 Total Marketable debt securities – current U.S. Treasury securities $ 15,012 $ — $ — $ 15,012 Corporate bonds — 15,059 — 15,059 U.S. Agency bonds — 15,011 — 15,011 Municipal bonds — 9,804 — 9,804 Commercial paper — 7,493 — 7,493 15,012 47,367 — 62,379 Marketable debt securities – non-current U.S. Treasury securities 7,515 — — 7,515 Corporate bonds — 12,627 — 12,627 U.S. Agency bonds — 7,530 — 7,530 Municipal bonds — 1,079 — 1,079 7,515 21,236 — 28,751 $ 22,527 $ 68,603 $ — $ 91,130 January 3, 2015 Level 1 Level 2 Level 3 Total Marketable debt securities – current U.S. Treasury securities $ 17,506 $ — $ — $ 17,506 Corporate bonds — 20,139 — 20,139 U.S. Agency bonds — 12,525 — 12,525 Commercial paper — 12,486 — 12,486 Municipal bonds — 6,953 — 6,953 17,506 52,103 — 69,609 Marketable debt securities – non-current U.S. Treasury securities 14,990 — — 14,990 Corporate bonds — 15,236 — 15,236 U.S. Agency bonds — 10,014 — 10,014 Municipal bonds — 4,201 — 4,201 14,990 29,451 — 44,441 $ 32,496 $ 81,554 $ — $ 114,050 |
Investments (Tables)
Investments (Tables) | 6 Months Ended |
Jul. 04, 2015 | |
Investments [Abstract] | |
Investments in marketable debt securities | Investments in marketable debt securities were comprised of the following (in thousands): July 4, 2015 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Corporate bonds $ 27,700 $ 3 $ (17 ) $ 27,686 U.S. Agency bonds 22,517 24 — 22,541 U.S. Treasury securities 22,503 24 — 22,527 Municipal bonds 10,887 1 (5 ) 10,883 Commercial paper 7,494 — (1 ) 7,493 $ 91,101 $ 52 $ (23 ) $ 91,130 January 3, 2015 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Corporate bonds 35,409 2 (36 ) 35,375 U.S. Treasury securities $ 32,507 $ 12 $ (23 ) $ 32,496 U.S. Agency bonds 22,545 4 (10 ) 22,539 Commercial paper 12,487 — (1 ) 12,486 Municipal bonds 11,157 2 (5 ) 11,154 $ 114,105 $ 20 $ (75 ) $ 114,050 |
Maturities of marketable debt securities | Maturities of marketable debt securities were as follows (in thousands): July 4, 2015 January 3, 2015 Amortized Cost Fair Value Amortized Cost Fair Value Marketable debt securities – current (due in less than one year) $ 62,359 $ 62,379 $ 69,607 $ 69,609 Marketable debt securities – non-current (due in one to two years) 28,742 28,751 44,498 44,441 $ 91,101 $ 91,130 $ 114,105 $ 114,050 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jul. 04, 2015 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories consisted of the following (in thousands): July 4, January 3, Raw materials $ 9,499 $ 10,220 Work in progress 333 411 Finished goods 58,545 42,904 $ 68,377 $ 53,535 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 6 Months Ended |
Jul. 04, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Indefinite-Lived Intangible Assets | |
Definite-Lived Intangible Assets | The following table provides the gross carrying amount and related accumulated amortization of our definite-lived intangible assets (in thousands): July 4, 2015 January 3, 2015 Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Developed technologies $ 5,231 $ 1,586 $ 5,231 $ 1,342 Customer relationships 2,413 847 2,413 675 Trade names/trademarks 101 101 101 101 $ 7,745 $ 2,534 $ 7,745 $ 2,118 |
Repurchase of Common Stock (Tab
Repurchase of Common Stock (Tables) | 6 Months Ended |
Jul. 04, 2015 | |
Repurchase of Common Stock [Abstract] | |
Repurchase of Common Stock | Repurchases of our common stock were as follows (in thousands): Three Months Ended Six Months Ended July 4, June 28, July 4, June 28, Amount repurchased under Board-approved share repurchase program $ 30,019 $ 10,011 $ 50,026 $ 20,022 Amount repurchased in connection with the vesting of employee restricted stock grants 1,135 1,223 1,603 1,448 Total amount repurchased $ 31,154 $ 11,234 $ 51,629 $ 21,470 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Jul. 04, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | Stock-based compensation expense consisted of the following (in thousands): Three Months Ended Six Months Ended July 4, June 28, July 4, June 28, Options $ 672 $ 694 $ 1,316 $ 929 Restricted shares 2,374 1,449 4,512 1,106 Total stock-based compensation expense (1) 3,046 2,143 5,828 2,035 Income tax benefit 1,038 722 2,005 696 Total stock-based compensation expense, net of tax $ 2,008 $ 1,421 $ 3,823 $ 1,339 (1) The six months ended June 28, 2014 includes a $1.2 million benefit related to a change in estimated forfeitures due to employee turnover during the three months ended March 29, 2014. |
Other Income, Net (Tables)
Other Income, Net (Tables) | 6 Months Ended |
Jul. 04, 2015 | |
Other Income and Expenses [Abstract] | |
Other Income, Net | Other income, net, consisted of the following (in thousands): Three Months Ended Six Months Ended July 4, June 28, July 4, June 28, Interest income $ 143 $ 88 $ 306 $ 200 Interest expense (10 ) (10 ) (20 ) (20 ) Other income, net $ 133 $ 78 $ 286 $ 180 |
Net Income Per Common Share (Ta
Net Income Per Common Share (Tables) | 6 Months Ended |
Jul. 04, 2015 | |
Earnings Per Share [Abstract] | |
Net Income per Common Share | The components of basic and diluted net income per share are as follows (in thousands, except per share amounts): Three Months Ended Six Months Ended July 4, June 28, July 4, June 28, Net income $ 11,038 $ 8,481 $ 39,837 $ 25,473 Reconciliation of weighted-average shares outstanding: Basic weighted-average shares outstanding 51,672 53,648 52,009 53,880 Dilutive effect of stock-based awards 872 676 926 690 Diluted weighted-average shares outstanding 52,544 54,324 52,935 54,570 Net income per share – basic $ 0.21 $ 0.16 $ 0.77 $ 0.47 Net income per share – diluted $ 0.21 $ 0.16 $ 0.75 $ 0.47 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jul. 04, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Sales Returns | The activity in the sales returns liability account was as follows (in thousands): Six Months Ended July 4, June 28, Balance at beginning of year $ 15,262 $ 9,433 Additions that reduce net sales 40,076 32,923 Deductions from reserves (42,659 ) (33,162 ) Balance at end of period $ 12,679 $ 9,194 |
Warranty Liabilities | The activity in the accrued warranty liabilities account was as follows (in thousands): Six Months Ended July 4, June 28, Balance at beginning of year $ 5,824 $ 4,153 Additions charged to costs and expenses for current-year sales 4,869 3,237 Deductions from reserves (4,177 ) (3,231 ) Changes in liability for pre-existing warranties during the current year, including expirations 421 274 Balance at end of period $ 6,937 $ 4,433 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - Recurring [Member] - USD ($) $ in Thousands | Jul. 04, 2015 | Jan. 03, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable debt securities - current | $ 62,379 | $ 69,609 |
Marketable debt securities - noncurrent | 28,751 | 44,441 |
Marketable debt securities | 91,130 | 114,050 |
Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable debt securities - current | 15,012 | 17,506 |
Marketable debt securities - noncurrent | 7,515 | 14,990 |
Marketable debt securities | 22,527 | 32,496 |
Deferred compensation plan liability | 1,300 | 1,000 |
Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable debt securities - current | 47,367 | 52,103 |
Marketable debt securities - noncurrent | 21,236 | 29,451 |
Marketable debt securities | 68,603 | 81,554 |
Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable debt securities - current | 0 | 0 |
Marketable debt securities - noncurrent | 0 | 0 |
Marketable debt securities | 0 | 0 |
Available-for-sale Securities [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities assets funding the deferred compensation plan | 1,300 | 1,000 |
US Treasury Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable debt securities - current | 15,012 | 17,506 |
Marketable debt securities - noncurrent | 7,515 | 14,990 |
US Treasury Securities [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable debt securities - current | 15,012 | 17,506 |
Marketable debt securities - noncurrent | 7,515 | 14,990 |
US Treasury Securities [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable debt securities - current | 0 | 0 |
Marketable debt securities - noncurrent | 0 | 0 |
US Treasury Securities [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable debt securities - current | 0 | 0 |
Marketable debt securities - noncurrent | 0 | 0 |
Corporate bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable debt securities - current | 15,059 | 20,139 |
Marketable debt securities - noncurrent | 12,627 | 15,236 |
Corporate bonds [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable debt securities - current | 0 | 0 |
Marketable debt securities - noncurrent | 0 | 0 |
Corporate bonds [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable debt securities - current | 15,059 | 20,139 |
Marketable debt securities - noncurrent | 12,627 | 15,236 |
Corporate bonds [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable debt securities - current | 0 | 0 |
Marketable debt securities - noncurrent | 0 | 0 |
U.S. Agency bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable debt securities - current | 15,011 | 12,525 |
Marketable debt securities - noncurrent | 7,530 | 10,014 |
U.S. Agency bonds [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable debt securities - current | 0 | 0 |
Marketable debt securities - noncurrent | 0 | 0 |
U.S. Agency bonds [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable debt securities - current | 15,011 | 12,525 |
Marketable debt securities - noncurrent | 7,530 | 10,014 |
U.S. Agency bonds [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable debt securities - current | 0 | 0 |
Marketable debt securities - noncurrent | 0 | 0 |
Municipal bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable debt securities - current | 9,804 | 6,953 |
Marketable debt securities - noncurrent | 1,079 | 4,201 |
Municipal bonds [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable debt securities - current | 0 | 0 |
Marketable debt securities - noncurrent | 0 | 0 |
Municipal bonds [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable debt securities - current | 9,804 | 6,953 |
Marketable debt securities - noncurrent | 1,079 | 4,201 |
Municipal bonds [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable debt securities - current | 0 | 0 |
Marketable debt securities - noncurrent | 0 | 0 |
Commercial Paper, Not Included with Cash and Cash Equivalents [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable debt securities - current | 7,493 | 12,486 |
Commercial Paper, Not Included with Cash and Cash Equivalents [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable debt securities - current | 0 | 0 |
Commercial Paper, Not Included with Cash and Cash Equivalents [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable debt securities - current | 7,493 | 12,486 |
Commercial Paper, Not Included with Cash and Cash Equivalents [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable debt securities - current | $ 0 | $ 0 |
Investments - Marketable Debt S
Investments - Marketable Debt Securities (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jul. 04, 2015 | Jun. 28, 2014 | Jul. 04, 2015 | Jun. 28, 2014 | Jan. 03, 2015 | |
Schedule of Available-for-sale Securities [Line Items] | |||||
Proceeds from Sale and Maturity of Available-for-sale Securities | $ 25,600 | $ 13,500 | $ 41,800 | $ 23,500 | |
Investments of marketable debt securities [Abstract] | |||||
Marketable debt securities Total Amortized Cost | 91,101 | 91,101 | $ 114,105 | ||
Unrealized gains | 52 | 52 | 20 | ||
Unrealized losses | (23) | (23) | (75) | ||
Fair value | 91,130 | 91,130 | 114,050 | ||
Amortized Cost [Abstract] | |||||
Marketable debt securities - current (due in less than one year) | 62,359 | 62,359 | 69,607 | ||
Marketable debt securities - non-current (due in one to two years) | 28,742 | 28,742 | 44,498 | ||
Marketable debt securities Total Amortized Cost | 91,101 | 91,101 | 114,105 | ||
Fair Value [Abstract] | |||||
Marketable debt securities - current (due in less than one year) | 62,379 | 62,379 | 69,609 | ||
Marketable debt securities - non-current (due in one to two years) | 28,751 | 28,751 | 44,441 | ||
Fair value | 91,130 | 91,130 | 114,050 | ||
U.S. Treasury securities [Member] | |||||
Investments of marketable debt securities [Abstract] | |||||
Marketable debt securities Total Amortized Cost | 22,503 | 22,503 | 32,507 | ||
Unrealized gains | 24 | 24 | 12 | ||
Unrealized losses | 0 | 0 | (23) | ||
Fair value | 22,527 | 22,527 | 32,496 | ||
Amortized Cost [Abstract] | |||||
Marketable debt securities Total Amortized Cost | 22,503 | 22,503 | 32,507 | ||
Fair Value [Abstract] | |||||
Fair value | 22,527 | 22,527 | 32,496 | ||
Corporate bonds [Member] | |||||
Investments of marketable debt securities [Abstract] | |||||
Marketable debt securities Total Amortized Cost | 27,700 | 27,700 | 35,409 | ||
Unrealized gains | 3 | 3 | 2 | ||
Unrealized losses | (17) | (17) | (36) | ||
Fair value | 27,686 | 27,686 | 35,375 | ||
Amortized Cost [Abstract] | |||||
Marketable debt securities Total Amortized Cost | 27,700 | 27,700 | 35,409 | ||
Fair Value [Abstract] | |||||
Fair value | 27,686 | 27,686 | 35,375 | ||
U.S. Agency bonds [Member] | |||||
Investments of marketable debt securities [Abstract] | |||||
Marketable debt securities Total Amortized Cost | 22,517 | 22,517 | 22,545 | ||
Unrealized gains | 24 | 24 | 4 | ||
Unrealized losses | 0 | 0 | (10) | ||
Fair value | 22,541 | 22,541 | 22,539 | ||
Amortized Cost [Abstract] | |||||
Marketable debt securities Total Amortized Cost | 22,517 | 22,517 | 22,545 | ||
Fair Value [Abstract] | |||||
Fair value | 22,541 | 22,541 | 22,539 | ||
Commercial Paper, Not Included with Cash and Cash Equivalents [Member] | |||||
Investments of marketable debt securities [Abstract] | |||||
Marketable debt securities Total Amortized Cost | 7,494 | 7,494 | 12,487 | ||
Unrealized gains | 0 | 0 | 0 | ||
Unrealized losses | (1) | (1) | (1) | ||
Fair value | 7,493 | 7,493 | 12,486 | ||
Amortized Cost [Abstract] | |||||
Marketable debt securities Total Amortized Cost | 7,494 | 7,494 | 12,487 | ||
Fair Value [Abstract] | |||||
Fair value | 7,493 | 7,493 | 12,486 | ||
Municipal bonds [Member] | |||||
Investments of marketable debt securities [Abstract] | |||||
Marketable debt securities Total Amortized Cost | 10,887 | 10,887 | 11,157 | ||
Unrealized gains | 1 | 1 | 2 | ||
Unrealized losses | (5) | (5) | (5) | ||
Fair value | 10,883 | 10,883 | 11,154 | ||
Amortized Cost [Abstract] | |||||
Marketable debt securities Total Amortized Cost | 10,887 | 10,887 | 11,157 | ||
Fair Value [Abstract] | |||||
Fair value | $ 10,883 | $ 10,883 | $ 11,154 |
Investments - Other Investments
Investments - Other Investments (Details) - USD ($) $ in Millions | Jul. 04, 2015 | Jan. 03, 2015 |
Other Noncurrent Assets [Member] | ||
Cost Method Investments | $ 6 | $ 6 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Jul. 04, 2015 | Jan. 03, 2015 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 9,499 | $ 10,220 |
Work in progress | 333 | 411 |
Finished goods | 58,545 | 42,904 |
Inventories | $ 68,377 | $ 53,535 |
Goodwill and Intangible Asset34
Goodwill and Intangible Assets Goodwill and Indefinite-Lived Intangible Assets (Details) - USD ($) $ in Thousands | Jul. 04, 2015 | Jan. 03, 2015 |
Goodwill [Line Items] | ||
Goodwill | $ 9,000 | $ 9,000 |
Indefinite-Lived Intangible Assets (Excluding Goodwill) | $ 1,400 | $ 1,400 |
Goodwill and Intangible Asset35
Goodwill and Intangible Assets Finite-Lived Intangible Assets (Details) - USD ($) $ in Thousands | Jul. 04, 2015 | Jan. 03, 2015 |
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets | $ 7,745 | $ 7,745 |
Finite-Lived Intangible Assets, Accumulated Amortization | 2,534 | 2,118 |
Developed technologies [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets | 5,231 | 5,231 |
Finite-Lived Intangible Assets, Accumulated Amortization | 1,586 | 1,342 |
Customer Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets | 2,413 | 2,413 |
Finite-Lived Intangible Assets, Accumulated Amortization | 847 | 675 |
Trademarks and Trade Names [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets | 101 | 101 |
Finite-Lived Intangible Assets, Accumulated Amortization | $ 101 | $ 101 |
Credit Agreement (Details)
Credit Agreement (Details) - Amended Credit Facility, Wells Fargo Bank [Member] - USD ($) | 6 Months Ended | |
Jul. 04, 2015 | Jan. 03, 2015 | |
Line of Credit Facility [Line Items] | ||
Current borrowing capacity | $ 20,000,000 | |
Line of Credit Facility Amended Expiration Date | Aug. 31, 2016 | |
Maximum borrowing capacity | $ 50,000,000 | |
Adjusted LIBO Rate basis (in hundredths) | 1.25% | |
Adjusted Base Rate - Daily One-Month LIBO Rate basis (in hundredths) | 1.50% | |
Available remaining borrowing capacity | $ 20,000,000 | $ 20,000,000 |
Outstanding letters of credit | $ 0 | $ 0 |
Repurchase of Common Stock (Det
Repurchase of Common Stock (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 04, 2015 | Jun. 28, 2014 | Jul. 04, 2015 | Jun. 28, 2014 | |
Repurchase of Common Stock [Abstract] | ||||
Amount repurchased under Board-approved share repurchase program | $ 30,019 | $ 10,011 | $ 50,026 | $ 20,022 |
Stock Repurchase Acquired Through Tax Withholding Restricted Stock | 1,135 | 1,223 | 1,603 | 1,448 |
Total amount repurchased | 31,154 | $ 11,234 | 51,629 | $ 21,470 |
Remaining Authorized Amount, Stock Repurchase Program | $ 185,000 | $ 185,000 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jul. 04, 2015 | Jun. 28, 2014 | Jul. 04, 2015 | Jun. 28, 2014 | ||
Total stock-based compensation expense | $ 3,046 | $ 2,143 | $ 5,828 | $ 2,035 | [1] |
Income tax benefit | 1,038 | 722 | 2,005 | 696 | |
Total stock-based compensation expense, net of tax | 2,008 | 1,421 | 3,823 | 1,339 | |
Employee Service Share-based Compensation, Expense (Benefit) of Change in Forfeiture Rate | (1,200) | ||||
Stock Options [Member] | |||||
Total stock-based compensation expense | 672 | 694 | 1,316 | 929 | |
Time-Based, Performance-Based and Market-Based Stock Awards [Member] | |||||
Total stock-based compensation expense | $ 2,374 | $ 1,449 | $ 4,512 | $ 1,106 | |
[1] | The six months ended June 28, 2014 includes a $1.2 million benefit related to a change in estimated forfeitures due to employee turnover during the three months ended March 29, 2014. |
Employee Benefits (Details)
Employee Benefits (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 04, 2015 | Jun. 28, 2014 | Jul. 04, 2015 | Jun. 28, 2014 | |
Profit Sharing and 401 (k) Plan [Abstract] | ||||
Employee compensation deferral (in hundredths) | 50.00% | |||
Employer contributions | $ 0.9 | $ 0.9 | $ 2.1 | $ 1.8 |
Other Income, Net (Details)
Other Income, Net (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 04, 2015 | Jun. 28, 2014 | Jul. 04, 2015 | Jun. 28, 2014 | |
Other Income and Expenses [Abstract] | ||||
Interest income | $ 143 | $ 88 | $ 306 | $ 200 |
Interest expense | (10) | (10) | (20) | (20) |
Other income, net | $ 133 | $ 78 | $ 286 | $ 180 |
Net Income per Common Share (De
Net Income per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 04, 2015 | Jun. 28, 2014 | Jul. 04, 2015 | Jun. 28, 2014 | |
Net Income per Common Share [Abstract] | ||||
Net income | $ 11,038 | $ 8,481 | $ 39,837 | $ 25,473 |
Basic weighted-average shares outstanding | 51,672,000 | 53,648,000 | 52,009,000 | 53,880,000 |
Effect of dilutive securities | 872,000 | 676,000 | 926,000 | 690,000 |
Diluted weighted-average shares outstanding | 52,544,000 | 54,324,000 | 52,935,000 | 54,570,000 |
Net income per share – basic (in USD per share) | $ 0.21 | $ 0.16 | $ 0.77 | $ 0.47 |
Net income per share – diluted (in USD per share) | $ 0.21 | $ 0.16 | $ 0.75 | $ 0.47 |
Commitments and Contingencies S
Commitments and Contingencies Sales Return Liability (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jul. 04, 2015 | Jun. 28, 2014 | |
Sales return liability [Roll Forward] | ||
Balance at beginning of year | $ 15,262 | $ 9,433 |
Additions that reduce net sales | 40,076 | 32,923 |
Deductions from reserves | (42,659) | (33,162) |
Balance at end of period | $ 12,679 | $ 9,194 |
Commitments and Contingencies W
Commitments and Contingencies Warranty Liabilities (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jul. 04, 2015 | Jun. 28, 2014 | |
Warranty Liabilities [Roll Forward] | ||
Balance at beginning of year | $ 5,824 | $ 4,153 |
Additions charged to costs and expenses for current-year sales | 4,869 | 3,237 |
Deductions from reserves | (4,177) | (3,231) |
Changes in liability for pre-existing warranties during the current year, including expirations | 421 | 274 |
Balance at end of period | $ 6,937 | $ 4,433 |