Document and Entity Information
Document and Entity Information | 9 Months Ended |
Sep. 29, 2018shares | |
Document and Entity Information [Abstract] | |
Entity Registrant Name | SLEEP NUMBER CORP |
Entity Central Index Key | 827,187 |
Current Fiscal Year End Date | --12-29 |
Entity Filer Category | Large Accelerated Filer |
Document Type | 10-Q |
Document Period End Date | Sep. 29, 2018 |
Document Fiscal Year Focus | 2,018 |
Document Fiscal Period Focus | Q3 |
Amendment Flag | false |
Entity Emerging Growth Company | false |
Entity Small Business | false |
Entity Common Stock, Shares Outstanding | 33,216,000 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 29, 2018 | Dec. 30, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 1,241 | $ 3,651 |
Accounts receivable, net of allowance for doubtful accounts of $579 and $714, respectively | 24,128 | 19,312 |
Inventories | 90,980 | 84,298 |
Income taxes receivable | 1,229 | 0 |
Prepaid expenses | 9,772 | 17,565 |
Other current assets | 31,007 | 27,665 |
Total current assets | 158,357 | 152,491 |
Non-current assets: | ||
Property and equipment, net | 199,452 | 208,646 |
Goodwill and intangible assets, net | 75,952 | 77,588 |
Deferred income taxes | 0 | 2,625 |
Other non-current assets | 36,307 | 30,484 |
Total assets | 470,068 | 471,834 |
Current liabilities: | ||
Borrowings under revolving credit facility | 135,800 | 24,500 |
Accounts payable | 138,735 | 129,194 |
Customer prepayments | 46,118 | 27,767 |
Accrued sales returns | 20,535 | 19,270 |
Compensation and benefits | 31,988 | 34,602 |
Taxes and withholding | 15,951 | 24,234 |
Other current liabilities | 49,858 | 46,822 |
Total current liabilities | 438,985 | 306,389 |
Non-current liabilities: | ||
Deferred income taxes | 4,638 | 0 |
Other non-current liabilities | 80,797 | 76,289 |
Total liabilities | 524,420 | 382,678 |
Shareholders’ (deficit) 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, 33,216 and 38,813 shares issued and outstanding, respectively | 332 | 388 |
Additional paid-in capital | 0 | 0 |
(Accumulated deficit) retained earnings | (54,684) | 88,768 |
Total shareholders’ (deficit) equity | (54,352) | 89,156 |
Total liabilities and shareholders’ (deficit) equity | $ 470,068 | $ 471,834 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 29, 2018 | Dec. 30, 2017 |
Current assets: | ||
Allowance for doubtful accounts | $ 579 | $ 714 |
Shareholders’ (deficit) 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) | 33,216,000 | 38,813,000 |
Common stock, shares outstanding (in shares) | 33,216,000 | 38,813,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2018 | Sep. 30, 2017 | Sep. 29, 2018 | Sep. 30, 2017 | |
Income Statement [Abstract] | ||||
Net sales | $ 414,779 | $ 402,646 | $ 1,119,750 | $ 1,081,218 |
Cost of sales | 164,262 | 149,181 | 442,868 | 404,675 |
Gross profit | 250,517 | 253,465 | 676,882 | 676,543 |
Operating expenses: | ||||
Sales and marketing | 188,458 | 174,800 | 511,481 | 488,564 |
General and administrative | 29,385 | 32,645 | 89,947 | 95,233 |
Research and development | 7,353 | 6,991 | 21,146 | 20,950 |
Total operating expenses | 225,196 | 214,436 | 622,574 | 604,747 |
Operating income | 25,321 | 39,029 | 54,308 | 71,796 |
Other expense, net | 1,836 | 248 | 3,814 | 668 |
Income before income taxes | 23,485 | 38,781 | 50,494 | 71,128 |
Income tax expense | 5,228 | 13,178 | 7,945 | 21,842 |
Net income | $ 18,257 | $ 25,603 | $ 42,549 | $ 49,286 |
Basic net income per share: | ||||
Net income per share – basic | $ 0.53 | $ 0.63 | $ 1.18 | $ 1.18 |
Weighted-average shares – basic | 34,231,000 | 40,755,000 | 36,204,000 | 41,740,000 |
Diluted net income per share: | ||||
Net income per share – diluted | $ 0.52 | $ 0.62 | $ 1.15 | $ 1.16 |
Weighted-average shares – diluted | 35,039,000 | 41,515,000 | 37,077,000 | 42,559,000 |
Consolidated Statement of Share
Consolidated Statement of Shareholders' Equity - 9 months ended Sep. 29, 2018 - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-In Capital [Member] | Retained Earnings [Member] |
Balance (in shares) at Dec. 30, 2017 | 38,813,000 | 38,813,000 | ||
Balance at Dec. 30, 2017 | $ 89,156 | $ 388 | $ 0 | $ 88,768 |
Net income | 42,549 | 42,549 | ||
Exercise of common stock options (in shares) | 157,000 | |||
Exercise of common stock options | 2,084 | $ 1 | 2,083 | 0 |
Stock-based compensation (in shares) | 261,000 | |||
Stock-based compensation | 10,098 | $ 3 | 10,095 | 0 |
Repurchases of common stock (in shares) | (6,015,000) | |||
Repurchases of common stock | $ (198,239) | $ (60) | (12,178) | (186,001) |
Balance (in shares) at Sep. 29, 2018 | 33,216,000 | 33,216,000 | ||
Balance at Sep. 29, 2018 | $ (54,352) | $ 332 | $ 0 | $ (54,684) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 29, 2018 | Sep. 30, 2017 | |
Cash flows from operating activities: | ||
Net income | $ 42,549 | $ 49,286 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 46,655 | 46,000 |
Stock-based compensation | 10,098 | 11,809 |
Net (gain) loss on disposals and impairments of assets | (17) | 229 |
Deferred income taxes | 7,263 | 3,729 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (4,816) | (1,402) |
Inventories | (6,682) | (4,191) |
Income taxes | (13,777) | (147) |
Prepaid expenses and other assets | 5,195 | (1,713) |
Accounts payable | 26,007 | 33,325 |
Customer prepayments | 18,351 | 13,722 |
Accrued compensation and benefits | (2,685) | 15,277 |
Other taxes and withholding | 4,265 | 758 |
Other accruals and liabilities | 2,044 | 9,372 |
Net cash provided by operating activities | 134,450 | 176,054 |
Cash flows from investing activities: | ||
Purchases of property and equipment | (34,012) | (37,613) |
Proceeds from sales of property and equipment | 174 | 36 |
Net cash used in investing activities | (33,838) | (37,577) |
Cash flows from financing activities: | ||
Repurchases of common stock | (198,239) | (120,158) |
Net increase in short-term borrowings | 94,147 | (6,194) |
Proceeds from issuance of common stock | 2,084 | 3,040 |
Debt issuance costs | (1,014) | (10) |
Net cash used in financing activities | (103,022) | (123,322) |
Net (decrease) increase in cash, cash equivalents and restricted cash | (2,410) | 15,155 |
Cash, cash equivalents and restricted cash, at beginning of period | 3,651 | 14,759 |
Cash, cash equivalents and restricted cash, at end of period | $ 1,241 | $ 29,914 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 29, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Business and Summary of Significant Accounting Policies Business & Basis of Presentation We prepared the condensed consolidated financial statements as of and for the three and nine months ended September 29, 2018 of Sleep Number Corporation and 100%-owned subsidiaries (Sleep Number or the Company), without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (SEC) and they reflect, in the opinion of management, all normal recurring adjustments necessary to present fairly our financial position as of September 29, 2018 and December 30, 2017 , and the consolidated results of operations and cash flows for the periods presented. Our historical and quarterly consolidated results of operations may not be indicative of the results that may be achieved for the full year or any future period. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles (GAAP) have been condensed or omitted pursuant to such rules and regulations. These condensed consolidated financial statements should be read in conjunction with our most recent audited consolidated financial statements and related notes included in our Annual Report on Form 10-K for the fiscal year ended December 30, 2017 and other recent filings with the SEC. The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements, and the reported amounts of sales, expenses and income taxes during the reporting period. Predicting future events is inherently an imprecise activity and, as such, requires the use of judgment. As future events and their effects cannot be determined with precision, actual results could differ significantly from these estimates. Changes in these estimates will be reflected in the consolidated financial statements in future periods. Our critical accounting policies consist of stock-based compensation, goodwill and indefinite-lived intangible assets, warranty liabilities and revenue recognition. The condensed consolidated financial statements include the accounts of Sleep Number Corporation and our 100%-owned subsidiaries. All significant intra-entity balances and transactions have been eliminated in consolidation. New Accounting Pronouncements Recently Adopted Accounting Guidance Adoption of ASC Topic 230, Restricted Cash Effective December 31, 2017, we adopted ASC Topic 230, Restricted Cash , which requires amounts generally described as restricted cash and restricted cash equivalents be included with cash and cash equivalents when reconciling the total beginning and ending amounts for the periods shown on the statement of cash flows. Amounts for prior periods have been retrospectively adjusted to conform to the current period presentation. Adoption of ASC Topic 606, Revenue from Contracts with Customers On December 31, 2017, we adopted ASC Topic 606, Revenue from Contracts with Customers, using the modified retrospective method applied to those contracts which were not completed as of December 30, 2017. Results for reporting periods beginning after December 30, 2017 are presented under the new guidance, while prior period amounts are not restated. The cumulative effect of the changes made to our consolidated balance sheet as of December 31, 2017 resulting from the adoption of the new revenue guidance was not material and did not impact opening retained earnings. The impact on the timing of net sales for the three and nine months ended September 29, 2018 , as a result of applying the new guidance, was not material. Practical expedients and exemptions permissible under ASC Topic 606 that we elected are as follows: we do not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less; and (ii) contracts for which we recognize revenue at the amount to which we have the right to invoice for services performed. See Note 2, Revenue Recognition, for further details regarding our revenue recognition policy. Accounting Guidance Issued but Not Yet Adopted as of September 29, 2018 We are the lessee under various agreements for facilities, equipment and vehicles that are currently accounted for as operating leases. In February 2016, the FASB issued ASC Topic 842, Leases , that requires most leases to be recognized on the balance sheet and expands disclosure requirements. Leases will be classified as finance or operating, with classification affecting the pattern and classification of expense recognition in the income statement. This new guidance is effective for us beginning December 30, 2018 (fiscal 2019). The provisions of this new guidance require a modified-retrospective approach, with elective reliefs. The new guidance will apply to all leases existing at the date of initial application. We have the option to choose either (1) the effective date, or (2) the beginning of the earliest comparative period presented in the financial statements as the date of initial application. We expect to adopt the new standard using the effective date option. The new guidance establishes a right-of-use model (ROU) that requires a lessee to recognize a ROU asset and lease liability on the balance sheet for all leases with a term longer than 12 months. On adoption, we expect to recognize additional lease liabilities and corresponding ROU assets of approximately $300 million based on the present value of the remaining minimum rental payments for existing operating leases. This amount will vary based on the interest rates in effect upon adoption and any new leases we enter into or exit from prior to adoption. The new guidance provides a number of optional practical expedients in transition. We expect to elect the package of practical expedients, which permits us to not reassess under the new standard our prior conclusions about lease identification, lease classification and initial direct costs. We do not expect to elect the use of hindsight. The new guidance also provides practical expedients for an entity’s ongoing accounting. We expect to elect the short-term lease recognition exemption for all leases that qualify, primarily small equipment leases. This means, for those leases that qualify, we will not recognize ROU assets or lease liabilities, and this includes not recognizing ROU assets or lease liabilities for existing short-term leases of those assets in transition. We also expect to elect the practical expedient option to not separate lease and non-lease components for all of our leases. We will be providing significant new disclosures about our leasing activities and are in the process of implementing a new lease accounting system in connection with the adoption. We also expect that adoption of the new guidance will require changes to our internal controls over financial reporting. We continue to evaluate the effect of the new standard on our consolidated financial statements and related disclosures. |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Sep. 29, 2018 | |
Revenue Recognition [Abstract] | |
Revenue from Contract with Customer [Text Block] | Revenue Recognition We recognize revenue when control of the promised goods or services is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. Revenue recognized excludes sales taxes. Amounts billed to customers for delivery and setup are included in net sales. For most products, we receive payment before, or promptly after, the products or services are delivered to the customer. Our beds sold with SleepIQ ® technology contain multiple performance obligations including the bed and SleepIQ hardware and software. We analyze our multiple performance obligation(s) to determine whether they are distinct and can be separated or whether they must be accounted for as a single performance obligation. We determined that the beds sold with the SleepIQ technology have two performance obligations consisting of: (i) the bed; and (ii) SleepIQ hardware and software. SleepIQ hardware and software are not separable as the hardware and related software are not sold separately and the software is integral to the hardware’s functionality. We determine the transaction price for multiple performance obligations based on their relative standalone selling prices. The performance obligation related to the bed is satisfied at a point in time. The performance obligation related to SleepIQ technology is satisfied over time based on the ongoing access and usage by the customer of software essential to the functionality of SleepIQ technology. The deferred revenue and costs related to SleepIQ technology are recognized on a straight-line basis over the product’s estimated life of four years because our inputs are generally expended evenly throughout the performance period. At September 29, 2018 and December 30, 2017 , we had deferred contract liabilities of $73 million and $73 million , of which $32 million and $30 million are included in other current liabilities, respectively, and $41 million and $43 million are included in other non-current liabilities, respectively, in our consolidated balance sheets. We also had deferred contract assets of $48 million and $43 million , of which $20 million and $17 million are included in other current assets, respectively, and $28 million and $26 million are included in other non-current assets, respectively, in our consolidated balance sheets. During the three and nine months ended September 29, 2018 , we recognized revenue of $8 million and $22 million , respectively, that was included in the deferred contract liability balance at the beginning of the respective periods. Revenue from goods and services transferred to customers at a point in time accounted for approximately 98% and 98% of our revenues for the three and nine months ended September 29, 2018 , respectively. Net sales from each of our channels was as follows (in thousands): Three Months Ended Nine Months Ended September 29, September 29, Retail $ 383,886 $ 1,026,808 Online and phone 28,686 81,580 Company-Controlled channel 412,572 1,108,388 Wholesale/Other channel 2,207 11,362 Total $ 414,779 $ 1,119,750 Obligation for Sales Returns We accept sales returns during a 100-night trial period. Accrued sales returns represents a refund liability for the amount of consideration that we do not expect to be entitled to because it will be refunded to customers. The refund liability estimate is based on historical return rates and is adjusted for any current trends as appropriate. Each reporting period we remeasure the liability to reflect changes in the estimate, with a corresponding adjustment to net sales. The activity in the sales returns liability account was as follows (in thousands): Nine Months Ended September 29, September 30, Balance at beginning of year $ 19,270 $ 15,222 Additions that reduce net sales 57,296 55,720 Deductions from reserves (56,031 ) (52,494 ) Balance at end of period $ 20,535 $ 18,448 |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 29, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements At September 29, 2018 and December 30, 2017 , we had $6 million and $4 million , respectively, of debt and equity securities that fund our deferred compensation plan and are classified in other non-current assets. We also had corresponding deferred compensation plan liabilities of $6 million and $4 million at September 29, 2018 and December 30, 2017 , respectively, which are included in other non-current liabilities. The majority of the debt and equity securities are Level 1 as they trade with sufficient frequency and volume to enable us to obtain pricing information on an ongoing basis. Unrealized gains/(losses) on the debt and equity securities offset those associated with the corresponding deferred compensation plan liabilities. |
Inventories
Inventories | 9 Months Ended |
Sep. 29, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories consisted of the following (in thousands): September 29, December 30, Raw materials $ 4,862 $ 6,577 Work in progress 136 170 Finished goods 85,982 77,551 $ 90,980 $ 84,298 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 9 Months Ended |
Sep. 29, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets, Net Goodwill and Indefinite-Lived Intangible Assets Goodwill was $64 million at September 29, 2018 and December 30, 2017 . Indefinite-lived trade name/trademarks totaled $1.4 million at September 29, 2018 and December 30, 2017 . Definite-Lived Intangible Assets The following table provides the gross carrying amount and related accumulated amortization of our definite-lived intangible assets (in thousands): September 29, 2018 December 30, 2017 Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Developed technologies $ 18,851 $ 8,341 $ 18,851 $ 6,705 Trade names/trademarks 101 101 101 101 $ 18,952 $ 8,442 $ 18,952 $ 6,806 Amortization expense for the three months ended September 29, 2018 and September 30, 2017 , was $0.5 million and $0.5 million , respectively. Amortization expense for the nine months ended September 29, 2018 and September 30, 2017 , was $1.6 million and $2.7 million , respectively. |
Credit Agreement
Credit Agreement | 9 Months Ended |
Sep. 29, 2018 | |
Debt Disclosure [Abstract] | |
Debt | Credit Agreement Our $300 million credit facility is for general corporate purposes and is also utilized to meet our seasonal working capital requirements. The credit agreement provides the lenders with a collateral security interest in substantially all of our assets and those of our subsidiaries and requires us to comply with, among other things, a maximum leverage ratio and a minimum interest coverage ratio. Under the terms of the credit agreement we pay a variable rate of interest and a commitment fee based on our leverage ratio. The credit agreement includes an accordion feature which allows us to increase the amount of the credit facility from $300 million to $450 million , subject to lenders' approval. The credit agreement matures in February 2023 . We were in compliance with all financial covenants as of September 29, 2018 . The following tables summarizes our borrowings under the credit facility ($ in thousands): September 29, December 30, Outstanding borrowings $ 135,800 $ 24,500 Outstanding letters of credit $ 3,450 $ 3,150 Additional borrowing capacity $ 160,750 $ 125,500 Weighted-average interest rate 4.0 % 3.1 % |
Repurchase of Common Stock
Repurchase of Common Stock | 9 Months Ended |
Sep. 29, 2018 | |
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 Nine Months Ended September 29, September 30, September 29, September 30, Amount repurchased under Board-approved share repurchase program $ 55,000 $ 40,000 $ 195,000 $ 115,000 Amount repurchased in connection with the vesting of employee restricted stock grants 299 64 3,239 5,158 Total amount repurchased $ 55,299 $ 40,064 $ 198,239 $ 120,158 As of September 29, 2018 , the remaining authorization under our Board-approved share repurchase program was $270 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 (accumulated deficit) retained earnings. |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 29, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation Expense Total stock-based compensation expense was as follows (in thousands): Three Months Ended Nine Months Ended September 29, September 30, September 29, September 30, Stock awards $ 2,759 $ 3,339 $ 8,247 $ 10,059 Stock options 597 594 1,851 1,750 Total stock-based compensation expense 3,356 3,933 10,098 11,809 Income tax benefit 802 1,314 2,454 3,968 Total stock-based compensation expense, net of tax $ 2,554 $ 2,619 $ 7,644 $ 7,841 |
Profit Sharing and 401(k) Plan
Profit Sharing and 401(k) Plan | 9 Months Ended |
Sep. 29, 2018 | |
Profit Sharing and 401 (k) Plan [Abstract] | |
Profit Sharing and 401(k) Plan | Profit Sharing and 401(k) Plan Under our profit sharing and 401(k) plan, eligible employees may defer up to 50% of their compensation on a pre-tax basis, subject to Internal Revenue Service limitations. Each pay period, we may make a discretionary contribution equal to a percentage of the employee’s contribution. During the three months ended September 29, 2018 and September 30, 2017 , our contributions, net of forfeitures, were $1.5 million and $1.4 million , respectively. During the nine months ended September 29, 2018 and September 30, 2017 , our contributions, net of forfeitures, were $4.2 million and $3.9 million , respectively. |
Other (Expense) Income, Net
Other (Expense) Income, Net | 9 Months Ended |
Sep. 29, 2018 | |
Other Income and Expenses [Abstract] | |
Other Expense, Net | Other Expense, Net Other expense, net, consisted of the following (in thousands): Three Months Ended Nine Months Ended September 29, September 30, September 29, September 30, Interest expense $ 1,836 $ 278 $ 3,817 $ 748 Interest income — (30 ) (3 ) (80 ) Other expense, net $ 1,836 $ 248 $ 3,814 $ 668 |
Net Income Per Common Share
Net Income Per Common Share | 9 Months Ended |
Sep. 29, 2018 | |
Earnings Per Share [Abstract] | |
Net Income per Common Share | Net Income per Common Share The components of basic and diluted net income per share were as follows (in thousands, except per share amounts): Three Months Ended Nine Months Ended September 29, September 30, September 29, September 30, Net income $ 18,257 $ 25,603 $ 42,549 $ 49,286 Reconciliation of weighted-average shares outstanding: Basic weighted-average shares outstanding 34,231 40,755 36,204 41,740 Dilutive effect of stock-based awards 808 760 873 819 Diluted weighted-average shares outstanding 35,039 41,515 37,077 42,559 Net income per share – basic $ 0.53 $ 0.63 $ 1.18 $ 1.18 Net income per share – diluted $ 0.52 $ 0.62 $ 1.15 $ 1.16 For the three and nine months ended September 29, 2018 and September 30, 2017 , anti-dilutive stock-based awards excluded from the diluted net income per share calculations were immaterial. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 29, 2018 | |
Income Taxes [Abstract] | |
Income Tax Disclosure [Text Block] | Income Taxes As a result of the enactment of the Tax Cuts and Jobs Act (TCJA), we recorded a provisional tax benefit of $1.7 million in the fourth quarter of 2017 based on our initial analysis of the TCJA using the best information and estimates available. During the second quarter 2018, we updated our provisional tax benefit based on new information, including a tax planning analysis, and recorded an additional $2.9 million provisional tax benefit. Due to the significant complexity of the TCJA, anticipated further guidance from the U.S. Treasury, the potential for additional guidance from the SEC/ FASB, or other new information becoming available, our provisional tax benefit may be further adjusted during 2018. Our provisional estimate is expected to be finalized no later than the fourth quarter of 2018. Further guidance and additional information regarding the TCJA may also impact our 2018 effective income tax rate, exclusive of any adjustment to the provisional tax benefit. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 29, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Warranty Liabilities The activity in the accrued warranty liabilities account was as follows (in thousands): Nine Months Ended September 29, September 30, Balance at beginning of year $ 9,320 $ 8,633 Additions charged to costs and expenses for current-year sales 9,275 8,627 Deductions from reserves (8,461 ) (6,625 ) Changes in liability for pre-existing warranties during the current year, including expirations 177 (708 ) Balance at end of period $ 10,311 $ 9,927 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. On January 12, 2015, Plaintiffs David and Katina Spade commenced a purported class action lawsuit in New Jersey state court against Sleep Number alleging that Sleep Number violated New Jersey consumer statutes by failing to provide to purchasing consumers certain disclosures required by the New Jersey Furniture Regulations. It is undisputed that plaintiffs suffered no actual damages or in any way relied upon or were impacted by the alleged omissions. Nonetheless, on behalf of a purported class of New Jersey purchasers of Sleep Number beds and bases, plaintiffs seek to recover a $100 statutory fine for each alleged omission, along with attorneys’ fees and costs. Sleep Number removed the case to the United States District Court for the District of New Jersey, which subsequently granted Sleep Number’s motion to dismiss. Plaintiffs appealed to the United States Court of Appeals for the Third Circuit, which certified two questions of law to the New Jersey Supreme Court relating to whether plaintiffs who have suffered no actual injury may bring claims. The New Jersey Supreme Court accepted the certified questions and on April 16, 2018, ruled in our favor on one of the two questions, holding that a consumer only has standing to bring a claim under the relevant statute if the consumer has been harmed by the defendant's conduct. The Third Circuit has remanded the case to the federal district court, which, in turn, allowed plaintiffs to amend their complaint. We believe, however, that plaintiffs’ amended complaint does not cure the statutory claim as instructed by the Third Circuit, but instead asserts fraud-based claims that were previously dismissed and which lack merit. We will file a motion to dismiss the amended complaint. On September 18, 2018, former Home Delivery Technician, Donald Cassels, and former Field Services Delivery Assistant, Jose Cadenas, filed suit in Superior Court in San Francisco County, California alleging representative claims on a purported class action basis under the California Labor Code Private Attorney General Act. While the two representative plaintiffs were in the Home Delivery workforce, the Complaint does not limit the purported plaintiff class to that group. The plaintiffs allege that Sleep Number failed or refused to adopt adequate practices, policies and procedures relating to wage payments, record keeping, employment disclosures, meal and rest breaks, among other claims, under California law. The plaintiffs purport to represent all former and current Sleep Number employees in the State of California aggrieved by the alleged practices. The Complaint seeks damages in the form of civil penalties and plaintiff’s attorneys’ fees, and expressly disclaims the recovery of any purported individual specific relief or underpaid wages. On October 8, 2018, after Sleep Number raised issues with the plaintiff’s choice of venue, the parties filed a joint stipulation to transfer venue from the Superior Court in San Francisco County to Superior Court in Fresno County. Sleep Number believes plaintiff’s purported claims are without merit and intends to vigorously defend this matter. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 9 Months Ended |
Sep. 29, 2018 | |
Accounting Policies [Abstract] | |
Business and Basis of Presentation, Policy | We prepared the condensed consolidated financial statements as of and for the three and nine months ended September 29, 2018 of Sleep Number Corporation and 100%-owned subsidiaries (Sleep Number or the Company), without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (SEC) and they reflect, in the opinion of management, all normal recurring adjustments necessary to present fairly our financial position as of September 29, 2018 and December 30, 2017 , and the consolidated results of operations and cash flows for the periods presented. Our historical and quarterly consolidated results of operations may not be indicative of the results that may be achieved for the full year or any future period. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles (GAAP) have been condensed or omitted pursuant to such rules and regulations. These condensed consolidated financial statements should be read in conjunction with our most recent audited consolidated financial statements and related notes included in our Annual Report on Form 10-K for the fiscal year ended December 30, 2017 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 condensed consolidated financial statements, and the reported amounts of sales, expenses and income taxes during the reporting period. Predicting future events is inherently an imprecise activity and, as such, requires the use of judgment. As future events and their effects cannot be determined with precision, actual results could differ significantly from these estimates. Changes in these estimates will be reflected in the consolidated financial statements in future periods. Our critical accounting policies consist of stock-based compensation, goodwill and indefinite-lived intangible assets, warranty liabilities and revenue recognition. |
Consolidation, Policy | The condensed consolidated financial statements include the accounts of Sleep Number Corporation and our 100%-owned subsidiaries. All significant intra-entity balances and transactions have been eliminated in consolidation. |
New Accounting Pronouncements, Policy | New Accounting Pronouncements Recently Adopted Accounting Guidance Adoption of ASC Topic 230, Restricted Cash Effective December 31, 2017, we adopted ASC Topic 230, Restricted Cash , which requires amounts generally described as restricted cash and restricted cash equivalents be included with cash and cash equivalents when reconciling the total beginning and ending amounts for the periods shown on the statement of cash flows. Amounts for prior periods have been retrospectively adjusted to conform to the current period presentation. Adoption of ASC Topic 606, Revenue from Contracts with Customers On December 31, 2017, we adopted ASC Topic 606, Revenue from Contracts with Customers, using the modified retrospective method applied to those contracts which were not completed as of December 30, 2017. Results for reporting periods beginning after December 30, 2017 are presented under the new guidance, while prior period amounts are not restated. The cumulative effect of the changes made to our consolidated balance sheet as of December 31, 2017 resulting from the adoption of the new revenue guidance was not material and did not impact opening retained earnings. The impact on the timing of net sales for the three and nine months ended September 29, 2018 , as a result of applying the new guidance, was not material. Practical expedients and exemptions permissible under ASC Topic 606 that we elected are as follows: we do not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less; and (ii) contracts for which we recognize revenue at the amount to which we have the right to invoice for services performed. See Note 2, Revenue Recognition, for further details regarding our revenue recognition policy. Accounting Guidance Issued but Not Yet Adopted as of September 29, 2018 We are the lessee under various agreements for facilities, equipment and vehicles that are currently accounted for as operating leases. In February 2016, the FASB issued ASC Topic 842, Leases , that requires most leases to be recognized on the balance sheet and expands disclosure requirements. Leases will be classified as finance or operating, with classification affecting the pattern and classification of expense recognition in the income statement. This new guidance is effective for us beginning December 30, 2018 (fiscal 2019). The provisions of this new guidance require a modified-retrospective approach, with elective reliefs. The new guidance will apply to all leases existing at the date of initial application. We have the option to choose either (1) the effective date, or (2) the beginning of the earliest comparative period presented in the financial statements as the date of initial application. We expect to adopt the new standard using the effective date option. The new guidance establishes a right-of-use model (ROU) that requires a lessee to recognize a ROU asset and lease liability on the balance sheet for all leases with a term longer than 12 months. On adoption, we expect to recognize additional lease liabilities and corresponding ROU assets of approximately $300 million based on the present value of the remaining minimum rental payments for existing operating leases. This amount will vary based on the interest rates in effect upon adoption and any new leases we enter into or exit from prior to adoption. The new guidance provides a number of optional practical expedients in transition. We expect to elect the package of practical expedients, which permits us to not reassess under the new standard our prior conclusions about lease identification, lease classification and initial direct costs. We do not expect to elect the use of hindsight. The new guidance also provides practical expedients for an entity’s ongoing accounting. We expect to elect the short-term lease recognition exemption for all leases that qualify, primarily small equipment leases. This means, for those leases that qualify, we will not recognize ROU assets or lease liabilities, and this includes not recognizing ROU assets or lease liabilities for existing short-term leases of those assets in transition. We also expect to elect the practical expedient option to not separate lease and non-lease components for all of our leases. We will be providing significant new disclosures about our leasing activities and are in the process of implementing a new lease accounting system in connection with the adoption. We also expect that adoption of the new guidance will require changes to our internal controls over financial reporting. We continue to evaluate the effect of the new standard on our consolidated financial statements and related disclosures. |
Revenue Recognition, Policy [Policy Text Block] | We accept sales returns during a 100-night trial period. Accrued sales returns represents a refund liability for the amount of consideration that we do not expect to be entitled to because it will be refunded to customers. The refund liability estimate is based on historical return rates and is adjusted for any current trends as appropriate. Each reporting period we remeasure the liability to reflect changes in the estimate, with a corresponding adjustment to net sales. We recognize revenue when control of the promised goods or services is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. Revenue recognized excludes sales taxes. Amounts billed to customers for delivery and setup are included in net sales. For most products, we receive payment before, or promptly after, the products or services are delivered to the customer. Our beds sold with SleepIQ ® technology contain multiple performance obligations including the bed and SleepIQ hardware and software. We analyze our multiple performance obligation(s) to determine whether they are distinct and can be separated or whether they must be accounted for as a single performance obligation. We determined that the beds sold with the SleepIQ technology have two performance obligations consisting of: (i) the bed; and (ii) SleepIQ hardware and software. SleepIQ hardware and software are not separable as the hardware and related software are not sold separately and the software is integral to the hardware’s functionality. We determine the transaction price for multiple performance obligations based on their relative standalone selling prices. The performance obligation related to the bed is satisfied at a point in time. The performance obligation related to SleepIQ technology is satisfied over time based on the ongoing access and usage by the customer of software essential to the functionality of SleepIQ technology. The deferred revenue and costs related to SleepIQ technology are recognized on a straight-line basis over the product’s estimated life of four years because our inputs are generally expended evenly throughout the performance period. |
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 (accumulated deficit) retained earnings. |
Profit Sharing and 401(k) Plan Policy | Under our profit sharing and 401(k) plan, eligible employees may defer up to 50% of their compensation on a pre-tax basis, subject to Internal Revenue Service limitations. Each pay period, we may make a discretionary contribution equal to a percentage of the employee’s contribution. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 9 Months Ended |
Sep. 29, 2018 | |
Revenue Recognition [Abstract] | |
Disaggregation of Revenue [Table Text Block] | Net sales from each of our channels was as follows (in thousands): Three Months Ended Nine Months Ended September 29, September 29, Retail $ 383,886 $ 1,026,808 Online and phone 28,686 81,580 Company-Controlled channel 412,572 1,108,388 Wholesale/Other channel 2,207 11,362 Total $ 414,779 $ 1,119,750 |
Schedule of Sales Return Liability [Table Text Block] | The activity in the sales returns liability account was as follows (in thousands): Nine Months Ended September 29, September 30, Balance at beginning of year $ 19,270 $ 15,222 Additions that reduce net sales 57,296 55,720 Deductions from reserves (56,031 ) (52,494 ) Balance at end of period $ 20,535 $ 18,448 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 29, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories consisted of the following (in thousands): September 29, December 30, Raw materials $ 4,862 $ 6,577 Work in progress 136 170 Finished goods 85,982 77,551 $ 90,980 $ 84,298 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 9 Months Ended |
Sep. 29, 2018 | |
Finite-Lived Intangible Assets [Line Items] | |
Definite-Lived Intangible Assets | The following table provides the gross carrying amount and related accumulated amortization of our definite-lived intangible assets (in thousands): September 29, 2018 December 30, 2017 Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Developed technologies $ 18,851 $ 8,341 $ 18,851 $ 6,705 Trade names/trademarks 101 101 101 101 $ 18,952 $ 8,442 $ 18,952 $ 6,806 |
Credit Agreement Credit Agreeme
Credit Agreement Credit Agreement (Tables) | 9 Months Ended |
Sep. 29, 2018 | |
Short-term Debt [Line Items] | |
Schedule of Short-term Debt [Table Text Block] | The following tables summarizes our borrowings under the credit facility ($ in thousands): September 29, December 30, Outstanding borrowings $ 135,800 $ 24,500 Outstanding letters of credit $ 3,450 $ 3,150 Additional borrowing capacity $ 160,750 $ 125,500 Weighted-average interest rate 4.0 % 3.1 % |
Repurchase of Common Stock (Tab
Repurchase of Common Stock (Tables) | 9 Months Ended |
Sep. 29, 2018 | |
Repurchase of Common Stock [Abstract] | |
Repurchase of Common Stock | Repurchases of our common stock were as follows (in thousands): Three Months Ended Nine Months Ended September 29, September 30, September 29, September 30, Amount repurchased under Board-approved share repurchase program $ 55,000 $ 40,000 $ 195,000 $ 115,000 Amount repurchased in connection with the vesting of employee restricted stock grants 299 64 3,239 5,158 Total amount repurchased $ 55,299 $ 40,064 $ 198,239 $ 120,158 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 29, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | Total stock-based compensation expense was as follows (in thousands): Three Months Ended Nine Months Ended September 29, September 30, September 29, September 30, Stock awards $ 2,759 $ 3,339 $ 8,247 $ 10,059 Stock options 597 594 1,851 1,750 Total stock-based compensation expense 3,356 3,933 10,098 11,809 Income tax benefit 802 1,314 2,454 3,968 Total stock-based compensation expense, net of tax $ 2,554 $ 2,619 $ 7,644 $ 7,841 |
Other (Expense) Income, Net (Ta
Other (Expense) Income, Net (Tables) | 9 Months Ended |
Sep. 29, 2018 | |
Other Income and Expenses [Abstract] | |
Other Expense, Net | Other expense, net, consisted of the following (in thousands): Three Months Ended Nine Months Ended September 29, September 30, September 29, September 30, Interest expense $ 1,836 $ 278 $ 3,817 $ 748 Interest income — (30 ) (3 ) (80 ) Other expense, net $ 1,836 $ 248 $ 3,814 $ 668 |
Net Income Per Common Share (Ta
Net Income Per Common Share (Tables) | 9 Months Ended |
Sep. 29, 2018 | |
Earnings Per Share [Abstract] | |
Net Income per Common Share | The components of basic and diluted net income per share were as follows (in thousands, except per share amounts): Three Months Ended Nine Months Ended September 29, September 30, September 29, September 30, Net income $ 18,257 $ 25,603 $ 42,549 $ 49,286 Reconciliation of weighted-average shares outstanding: Basic weighted-average shares outstanding 34,231 40,755 36,204 41,740 Dilutive effect of stock-based awards 808 760 873 819 Diluted weighted-average shares outstanding 35,039 41,515 37,077 42,559 Net income per share – basic $ 0.53 $ 0.63 $ 1.18 $ 1.18 Net income per share – diluted $ 0.52 $ 0.62 $ 1.15 $ 1.16 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 29, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Warranty Liabilities | The activity in the accrued warranty liabilities account was as follows (in thousands): Nine Months Ended September 29, September 30, Balance at beginning of year $ 9,320 $ 8,633 Additions charged to costs and expenses for current-year sales 9,275 8,627 Deductions from reserves (8,461 ) (6,625 ) Changes in liability for pre-existing warranties during the current year, including expirations 177 (708 ) Balance at end of period $ 10,311 $ 9,927 |
Basis of Presentation New Accou
Basis of Presentation New Accounting Pronouncements (Details) $ in Millions | Sep. 29, 2018USD ($) |
New Accounting Pronouncements [Abstract] | |
Operating Lease, Right-of-Use Asset | $ 300 |
Operating Lease Liability | $ 300 |
Revenue Recognition - Balance S
Revenue Recognition - Balance Sheet Details (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |
Sep. 29, 2018 | Sep. 29, 2018 | Dec. 30, 2017 | |
Deferred Contract Liability | $ 73 | $ 73 | $ 73 |
Deferred Contract Asset | 48 | 48 | 43 |
Revenue recognized, included in beginning deferred contract liability balance | 8 | 22 | |
Other Current Liabilities [Member] | |||
Deferred Contract Liability, Current | 32 | 32 | 30 |
Other Noncurrent Liabilities [Member] | |||
Deferred Contract Liability, Noncurrent | 41 | 41 | 43 |
Other Current Assets [Member] | |||
Deferred Contract Asset, Current | 20 | 20 | 17 |
Other Noncurrent Assets [Member] | |||
Deferred Contract Asset,Noncurrent | $ 28 | $ 28 | $ 26 |
SleepIQ Technology Hardware and Software [Member] | |||
Product's Estimated Life | 4 years |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2018 | Sep. 30, 2017 | Sep. 29, 2018 | Sep. 30, 2017 | |
Disaggregation of Revenue [Line Items] | ||||
Net Sales | $ 414,779 | $ 402,646 | $ 1,119,750 | $ 1,081,218 |
Retail [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | 383,886 | 1,026,808 | ||
Online and phone [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | 28,686 | 81,580 | ||
Company-Controlled channel [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | 412,572 | 1,108,388 | ||
Wholesale/Other channel [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | $ 2,207 | $ 11,362 | ||
Transferred at Point in Time [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales, percent | 98.00% | 98.00% |
Revenue Recognition - Sales Ret
Revenue Recognition - Sales Returns (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 29, 2018 | Sep. 30, 2017 | |
Sales Return Liability [Roll Forward] | ||
Balance at beginning of year | $ 19,270 | $ 15,222 |
Additions that reduce net sales | 57,296 | 55,720 |
Deductions from reserves | (56,031) | (52,494) |
Balance at end of period | $ 20,535 | $ 18,448 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - Recurring [Member] - Level 1 [Member] - USD ($) $ in Millions | Sep. 29, 2018 | Dec. 30, 2017 |
Other Assets [Member] | Available-for-sale Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities assets funding the deferred compensation plan | $ 6 | $ 4 |
Other Noncurrent Liabilities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation plan liability | $ 6 | $ 4 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Sep. 29, 2018 | Dec. 30, 2017 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 4,862 | $ 6,577 |
Work in progress | 136 | 170 |
Finished goods | 85,982 | 77,551 |
Inventories | $ 90,980 | $ 84,298 |
Goodwill and Indefinite-Lived I
Goodwill and Indefinite-Lived Intangible Assets (Details) - USD ($) $ in Millions | Sep. 29, 2018 | Dec. 30, 2017 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Goodwill | $ 64 | $ 64 |
Trade Names [Member] | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Indefinite-lived trade name/trademarks | $ 1.4 | $ 1.4 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets Finite-Lived Intangible Assets (Details) - USD ($) $ in Thousands | Sep. 29, 2018 | Dec. 30, 2017 |
Finite-Lived Intangible Assets [Line Items] | ||
Definite-Lived Intangible Assets | $ 18,952 | $ 18,952 |
Definite-Lived Intangible Assets, Accumulated Amortization | 8,442 | 6,806 |
Developed Technologies [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Definite-Lived Intangible Assets | 18,851 | 18,851 |
Definite-Lived Intangible Assets, Accumulated Amortization | 8,341 | 6,705 |
Trade names/trademarks [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Definite-Lived Intangible Assets | 101 | 101 |
Definite-Lived Intangible Assets, Accumulated Amortization | $ 101 | $ 101 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets Amortization Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2018 | Sep. 30, 2017 | Sep. 29, 2018 | Sep. 30, 2017 | |
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization expense definite-lived intangible assets | $ 0.5 | $ 0.5 | $ 1.6 | $ 2.7 |
Credit Agreement (Details)
Credit Agreement (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 29, 2018 | Dec. 30, 2017 | |
Line of Credit Facility [Line Items] | ||
Borrowings under revolving credit facility | $ 135,800 | $ 24,500 |
February 2018 Amendment [Member] | ||
Line of Credit Facility [Line Items] | ||
Current borrowing capacity | 300,000 | |
Maximum Borrowing Capacity | $ 450,000 | |
Expiration Date | Feb. 14, 2023 | |
Borrowings under revolving credit facility | $ 135,800 | |
Letters of Credit Outstanding | 3,450 | |
Remaining Borrowing Capacity | $ 160,750 | |
Weighted-Average Interest Rate at Period End | 4.00% | |
March 2017 Amendment [Member] | ||
Line of Credit Facility [Line Items] | ||
Borrowings under revolving credit facility | 24,500 | |
Letters of Credit Outstanding | 3,150 | |
Remaining Borrowing Capacity | $ 125,500 | |
Weighted-Average Interest Rate at Period End | 3.10% |
Repurchase of Common Stock (Det
Repurchase of Common Stock (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2018 | Sep. 30, 2017 | Sep. 29, 2018 | Sep. 30, 2017 | |
Repurchase of Common Stock [Abstract] | ||||
Amount repurchased under Board-approved share repurchase program | $ 55,000 | $ 40,000 | $ 195,000 | $ 115,000 |
Amount repurchased in connection with the vesting of employee restricted stock grants | 299 | 64 | 3,239 | 5,158 |
Total amount repurchased | 55,299 | $ 40,064 | 198,239 | $ 120,158 |
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 270,000 | $ 270,000 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2018 | Sep. 30, 2017 | Sep. 29, 2018 | Sep. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation expense | $ 3,356 | $ 3,933 | $ 10,098 | $ 11,809 |
Income tax benefit | 802 | 1,314 | 2,454 | 3,968 |
Total stock-based compensation expense, net of tax | 2,554 | 2,619 | 7,644 | 7,841 |
Time-Based, Performance-Based and Market-Based Stock Awards [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation expense | 2,759 | 3,339 | 8,247 | 10,059 |
Employee Stock Option [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation expense | $ 597 | $ 594 | $ 1,851 | $ 1,750 |
Profit Sharing and 401(k) Plan
Profit Sharing and 401(k) Plan (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2018 | Sep. 30, 2017 | Sep. 29, 2018 | Sep. 30, 2017 | |
Defined Contribution Plan Disclosure [Line Items] | ||||
Employee compensation deferral (in hundredths) | 50.00% | |||
Employer Contributions | $ 1.5 | $ 1.4 | $ 4.2 | $ 3.9 |
Other Expense, Net (Details)
Other Expense, Net (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2018 | Sep. 30, 2017 | Sep. 29, 2018 | Sep. 30, 2017 | |
Other Income and Expenses [Abstract] | ||||
Interest expense | $ 1,836 | $ 278 | $ 3,817 | $ 748 |
Interest income | 0 | (30) | (3) | (80) |
Other expense, net | $ 1,836 | $ 248 | $ 3,814 | $ 668 |
Net Income per Common Share (De
Net Income per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2018 | Sep. 30, 2017 | Sep. 29, 2018 | Sep. 30, 2017 | |
Net Income per Common Share [Abstract] | ||||
Net income | $ 18,257 | $ 25,603 | $ 42,549 | $ 49,286 |
Basic weighted-average shares outstanding | 34,231,000 | 40,755,000 | 36,204,000 | 41,740,000 |
Dilutive effect of stock-based awards | 808,000 | 760,000 | 873,000 | 819,000 |
Diluted weighted-average shares outstanding | 35,039,000 | 41,515,000 | 37,077,000 | 42,559,000 |
Net income per share – basic (in USD per share) | $ 0.53 | $ 0.63 | $ 1.18 | $ 1.18 |
Net income per share – diluted (in USD per share) | $ 0.52 | $ 0.62 | $ 1.15 | $ 1.16 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 30, 2017 | |
Income Taxes [Abstract] | ||
2017 TCJA Provisional Tax Benefit | $ 1.7 | |
Tax Cuts And Jobs Act Of 2017 Measurement Period Adjustment Income Tax Expense Benefit | $ 2.9 |
Commitments and Contingencies W
Commitments and Contingencies Warranty Liabilities (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 29, 2018 | Sep. 30, 2017 | |
Warranty Liabilities [Roll Forward] | ||
Balance at beginning of year | $ 9,320 | $ 8,633 |
Additions charged to costs and expenses for current-year sales | 9,275 | 8,627 |
Deductions from reserves | (8,461) | (6,625) |
Changes in liability for pre-existing warranties during the current year, including expirations | 177 | (708) |
Balance at end of period | $ 10,311 | $ 9,927 |