0001159167-23-000011 | 10-K | XBRL Viewer

Revenue Recognition (Tables)

12 Months Ended

Dec. 31, 2022

Revenue from Contract with Customer [Abstract]

Disaggregation of Revenue [Table Text Block]

Disaggregation of Revenue

The following table provides information about disaggregated revenue by geographical region (in thousands):


	December 31, 2022		January 1, 2022		January 2, 2021
United States	$	615,107	$	754,173	$	744,648
EMEA	270,451		470,475		386,007
Japan	209,552		222,772		193,304
Other	88,273		117,567		106,431
Total revenue	$	1,183,383	$	1,564,987	$	1,430,390

Contract with Customer, Asset and Liability [Table Text Block]

Contract Balances

The following table provides information about receivables and contract liabilities from contracts with customers (in thousands):


	December 31, 2022		January 1, 2022
Accounts receivable, net	$	60,268	$	155,659
Unbilled receivables	6,569		8,747
Contract liabilities	24,140		22,996

The Company invoices customers based upon contractual billing schedules, and accounts receivable are recorded when the right to consideration becomes unconditional. Unbilled receivables represent revenue recognized in excess of billings. Contract liabilities include deferred revenue associated with the Cloud Services and extended warranty plans as well as prepayments received from customers in advance of product shipments. During fiscal 2022 and 2021, the Company recognized $13.5 million and $12.5 million, respectively, of the contract liability balance as revenue upon transfer of the products or services to customers.

Leases (Tables)

12 Months Ended

Dec. 31, 2022

Leases [Abstract]

Lease, Cost [Table Text Block]

The components of lease expense were as follows (in thousands):


	December 31, 2022		January 1, 2022		January 2, 2021
Operating lease cost	$	6,622	$	8,510	$	9,363
Variable lease cost	3,644		3,633		3,583
Total lease cost	$	10,266	$	12,143	$	12,946

Schedule of Leases, Supplemental Cash Flow [Table Text Block]

Supplemental cash flow information related to leases was as follows (in thousands):


	December 31, 2022		January 1, 2022		January 2, 2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	8,187	$	8,762	$	9,862
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	—	$	—	$	2,310

Lessee, Operating Lease, Liability, Maturity [Table Text Block]

Maturities of operating lease liabilities were as follows as of December 31, 2022 (in thousands):



2023	$	7,265
2024	6,598
2025	5,688
2026	5,800
2027	5,877
Thereafter	13,048
Total minimum lease payments	$	44,276
Less: imputed interest	5,614
Present value of future minimum lease payments	$	38,662
Less: current portion of operating lease liabilities (Note 7)	5,415
Long-term lease liabilities	$	33,247

Stock-Based Compensation - ESPP (Details) - USD ($)	1 Months Ended	12 Months Ended
Stock-Based Compensation - ESPP (Details) - USD ($)	May 31, 2017	Dec. 31, 2022	Jan. 01, 2022	Jan. 02, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Purchase price of common stock percent	85.00%
Maximum percentage of salary	15.00%
Maximum dollar amount	$ 4,000
Maximum number of shares per employee	1,000
Number of shares available for grant		1,394,174
Employee Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense recognized		$ 800,000	$ 1,200,000	$ 1,000,000

Goodwill and other intangible assets

12 Months Ended

Dec. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and other intangible assets


6.			Goodwill and Other Intangible Assets

The following table summarizes the activity in the carrying amount of goodwill and intangible assets for fiscal 2022 and 2021 (in thousands):


	Goodwill		Intangible assets
Balance as of January 2, 2021	$	125,872	$	9,902
Acquisition	52,662		21,000
Amortization	—		(2,253)
Effect of foreign currency translation	(5,242)		(239)
Balance as of January 1, 2022	173,292		28,410
Purchase accounting adjustments	(583)		—
Amortization	—		(15,361)
Effect of foreign currency translation	(4,985)		(1,789)
Balance as of December 31, 2022	$	167,724	$	11,260

In fiscal 2021, the Company closed its acquisition of Aeris Cleantec AG ("Aeris"), a fast-growing provider of premium air purifiers, for approximately $71.4 million in cash. As a result, the Company recognized goodwill of $52.7 million and acquired intangible assets of $21.0 million mainly related to developed technology with a weighted estimated useful life of 5 years. The acquisition was a stock purchase and the goodwill resulting from this acquisition is not deductible for tax purposes. The results of operations of the acquired entity has been included within its consolidated results of operations from the acquisition date and was not material to its consolidated financial statements.

Intangible assets consisted of the following (in thousands):


	December 31, 2022				January 1, 2022
	Cost		Accumulated Amortization		Net		Cost		Accumulated Amortization		Net
Completed technology	$	33,909	$	28,383	$	5,526	$	43,727	$	27,752	$	15,975
Tradename	100		100		—		100		100		—
Customer relationships	10,104		4,370		5,734		16,628		4,193		12,435
Reacquired distribution rights	29,915		29,915		—		32,096		32,096		—
Non-competition agreements	245		245		—		260		260		—
Total	$	74,273	$	63,013	$	11,260	$	92,811	$	64,401	$	28,410

Amortization expense related to acquired intangible assets was $15.4 million, $2.3 million and $2.9 million for the fiscal years ended December 31, 2022, January 1, 2022 and January 2, 2021, respectively.

During the third quarter of 2022, the Company evaluated its long-lived assets, including intangible assets, for indicators of impairment given recent and anticipated unfavorable changes in the macroeconomic environment on the Company's short-term forecasts as well as the Company's negative operating cash flows and operating losses. As a result, the Company determined indicators of impairment existed for the asset group associated with the Company's acquisition of Aeris Cleantec AG and performed an undiscounted cash flow analysis. Based on this undiscounted cash flow analysis, the Company determined that the cash flows expected to be generated by this asset group over the estimated remaining useful life were not sufficient to recover the carrying value of the asset group. As a result, the Company was required to perform Step 3 of the impairment test and determine the fair value of the asset group utilizing the income approach which is based on a discounted cash flow analysis. The Company concluded that the fair value of the asset group was below its carrying value and recorded an $11.1 million impairment loss on these intangible assets. The impairment loss is recorded in amortization of acquired intangible assets under operating expenses on the consolidated statement of operations.

The estimated future amortization expense related to current intangible assets in each of the five succeeding fiscal years is expected to be as follows (in thousands):


	Cost of Revenue		Operating Expenses		Total
2023	$	1,133	$	708	$	1,841
2024	1,133		708		1,841
2025	1,133		708		1,841
2026	1,133		708		1,841
2027	994		708		1,702
Thereafter	—		2,194		2,194
Total	$	5,526	$	5,734	$	11,260

Commitments and Contingencies - Narrative (Details) - USD ($) $ in Millions		12 Months Ended
	Aug. 04, 2022	Dec. 31, 2022
Other Commitments [Line Items]
Contractual Obligation		$ 151.5
Noncancellable without penalty contractual obligation		18.5
Decrease in noncancellable contractual obligations		$ 23.4
Amazon.com, Inc.
Other Commitments [Line Items]
Expected professional fees and expenses to be incurred	$ 30.0

Property and Equipment 1 (Details) - USD ($) $ in Thousands	12 Months Ended
Property and Equipment 1 (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Jan. 01, 2022	Jan. 02, 2021
Property, Plant and Equipment [Line Items]
Subtotal	$ 166,760	$ 171,798
Less: accumulated depreciation	105,851	92,911
Property and equipment, net	60,909	78,887
Capitalized Computer Software, Net	2,800	4,900
Depreciation	32,500	31,100	$ 31,900
Capitalized Computer Software, Amortization	2,200	2,300	$ 2,100
Computer and equipment
Property, Plant and Equipment [Line Items]
Subtotal	12,750	12,723
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Subtotal	7,843	9,329
Machinery and tooling
Property, Plant and Equipment [Line Items]
Subtotal	95,332	97,348
Leasehold improvements
Property, Plant and Equipment [Line Items]
Subtotal	29,594	32,207
Business applications software
Property, Plant and Equipment [Line Items]
Subtotal	16,018	16,048
Other
Property, Plant and Equipment [Line Items]
Subtotal	$ 5,223	$ 4,143

Stock-Based Compensation - Narrative (Details)			1 Months Ended	12 Months Ended
Stock-Based Compensation - Narrative (Details)	May 27, 2022 shares	May 21, 2020 shares	May 31, 2017 USD ($) shares	Dec. 31, 2022 USD ($) plan $ / shares shares	Jan. 01, 2022 USD ($)	Jan. 02, 2021 USD ($)	May 23, 2018 shares
Number of plans \| plan				3
Number of shares authorized (in shares) \| shares	3,395,000	2,495,000					1,750,000
Number of additional shares authorized (in shares) \| shares	900,000	745,000
Number of shares available for grant \| shares				1,394,174
Stock based compensation expense				$ 31,905,000	$ 21,694,000	$ 29,975,000
Share price (in dollars per share) \| $ / shares				$ 48.13
Purchase price of common stock percent			85.00%
Maximum percentage of salary			15.00%
Maximum dollar amount			$ 4,000
Maximum number of shares per employee \| shares			1,000
Restricted Stock Units (RSUs)
Compensation cost not yet recognized				$ 71,100,000
Remaining recognition period				2 years 2 months 8 days
Outstanding, aggregate intrinsic value				$ 54,500,000
Outstanding, weighted average remaining contractual term				1 year 2 months 19 days
Restricted Stock Units (RSUs) \| Minimum
Vesting term				three
Restricted Stock Units (RSUs) \| Maximum
Vesting term				four year
Performance Based Restricted Stock Units
Compensation cost not yet recognized				$ 4,700,000
Remaining recognition period				11 months 26 days
Outstanding, aggregate intrinsic value				$ 17,700,000
Outstanding, weighted average remaining contractual term				11 months 26 days
Performance period (in years)				3 years
Performance Based Restricted Stock Units \| Minimum
Award vesting rights percentage				0.00%
Performance Based Restricted Stock Units \| Maximum
Award vesting rights percentage				200.00%
Employee Stock
Stock-based compensation expense recognized				$ 800,000	$ 1,200,000	$ 1,000,000

Leases (Notes)

12 Months Ended

Dec. 31, 2022

Leases [Abstract]

Lessee, Operating Leases [Text Block]


4.			Leases

The Company's leasing arrangements primarily consist of operating leases for its facilities which include corporate, sales and marketing and research and development offices and equipment under various non-cancelable lease arrangements. The operating leases expire at various dates through 2030. For leases with terms greater than 12 months, the Company records the related right-of-use asset and lease obligation at the present value of lease payments over the term. Leases with an initial term of 12 months or less are not recorded on the balance sheet. Lease expense is recognized on a straight-line basis over the lease term. The Company's leases typically include rental escalation clauses, renewal options and/or termination options that are factored into the determination of lease payments when appropriate. The Company does not separate lease and non-lease components of contracts and excludes all variable lease payments from the measurement of right-of-use assets and lease liabilities. The Company's variable lease payments generally include usage based nonlease components. The Company's lease agreements do not contain any residual value guarantees or restrictive covenants.

The Company's existing leases do not provide a readily determinable implicit rate. Therefore, the Company estimates its incremental borrowing rate to discount the lease payments. At December 31, 2022, the Company's weighted average discount rate was 4.02%, while the weighted average remaining lease term was 6.70 years.

The components of lease expense were as follows (in thousands):


	December 31, 2022		January 1, 2022		January 2, 2021
Operating lease cost	$	6,622	$	8,510	$	9,363
Variable lease cost	3,644		3,633		3,583
Total lease cost	$	10,266	$	12,143	$	12,946

Supplemental cash flow information related to leases was as follows (in thousands):


	December 31, 2022		January 1, 2022		January 2, 2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	8,187	$	8,762	$	9,862
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	—	$	—	$	2,310

Maturities of operating lease liabilities were as follows as of December 31, 2022 (in thousands):



2023	$	7,265
2024	6,598
2025	5,688
2026	5,800
2027	5,877
Thereafter	13,048
Total minimum lease payments	$	44,276
Less: imputed interest	5,614
Present value of future minimum lease payments	$	38,662
Less: current portion of operating lease liabilities (Note 7)	5,415
Long-term lease liabilities	$	33,247

Stockholders' Equity (Details) $ / shares in Units, $ in Thousands			1 Months Ended	3 Months Ended		12 Months Ended
	Aug. 02, 2021 USD ($) shares	Mar. 11, 2021 USD ($) $ / shares shares	Sep. 30, 2021 shares	Oct. 02, 2021 USD ($) $ / shares shares	Jul. 03, 2021 USD ($)	Jan. 01, 2022 USD ($) $ / shares shares	Jan. 02, 2021 USD ($) shares	Dec. 31, 2022 vote $ / shares shares	Feb. 27, 2018 USD ($)
Equity [Abstract]
Preferred stock, shares authorized (in shares)						5,000,000		5,000,000
Preferred stock, par value (in dollars per share) \| $ / shares						$ 0.01		$ 0.01
Preferred stock, shares issued (in shares)						0		0
Preferred stock, shares outstanding (in shares)						0		0
Common stock, votes per share \| vote								1
Stock repurchase program, authorized amount \| $	$ 100,000	$ 50,000							$ 200,000
Stock repurchases (in shares)	943,285	446,954		1,198,218		1,645,000	664,000
Additional shares delivered (in shares)			254,933
Average cost per share (in dollars per share) \| $ / shares		$ 111.85		$ 83.46
Stock repurchases \| $				$ 100,000	$ 50,000	$ 150,000	$ 25,000

Stock-Based Compensation Stock comp expense classification (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Jan. 01, 2022	Jan. 02, 2021
Stock based compensation expense	$ 31,905	$ 21,694	$ 29,975
Cost of revenue
Stock based compensation expense	2,194	1,321	1,511
Research and development
Stock based compensation expense	10,473	9,542	10,655
Selling and marketing
Stock based compensation expense	6,358	4,190	3,700
General and administrative
Stock based compensation expense	$ 12,880	$ 6,641	$ 14,109

Income Taxes - Narrative (Details) - USD ($) $ in Thousands	12 Months Ended
Income Taxes - Narrative (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Sep. 30, 2022	Jan. 01, 2022	Jan. 02, 2021
Tax Credit Carryforward [Line Items]
Operating loss carryforwards	$ 3,800		$ 29,000
Federal research and development credit carryforwards	4,600
Valuation allowance	99,444	$ 57,500	13,136	$ 7,600
Change in valuation allowance	86,300
Income tax penalties and interest accrued	0		0	$ 0
Unrecognized tax benefits that would impact effective tax rate	10,800
Federal
Tax Credit Carryforward [Line Items]
Valuation allowance	900
Foreign Tax Authority
Tax Credit Carryforward [Line Items]
Valuation allowance	4,700
State and Local Jurisdiction
Tax Credit Carryforward [Line Items]
Tax credit carryforward	$ 23,100		$ 19,400

Accrued Expenses

12 Months Ended

Dec. 31, 2022

Accrued Liabilities, Current [Abstract]

Accrued Expenses


7.			Accrued Expenses

Accrued expenses consist of the following (in thousands):


	December 31, 2022		January 1, 2022
Accrued warranty	$	27,379	$	32,019
Accrued compensation and benefits	23,791		19,029
Accrued sales and other indirect taxes payable	7,683		9,599
Derivative liability	7,310		2,600
Current portion of operating lease liabilities	5,415		6,220
Accrued income taxes	5,070		1,788
Accrued bonus	4,538		11,375

Accrued manufacturing and logistics cost (1)	970		23,038
Accrued other	16,803		26,950
	$	98,959	$	132,618

(1)Accrued manufacturing and logistics cost as of January 1, 2022 included $22.2 million related to Section 301 List 3 tariffs which impose a 25% tariff on Roomba products imported from China. The Company was granted a temporary exclusion in March 2022 through December 31, 2022, which was subsequently extended until September 30, 2023. As a result, amounts accrued at December 31, 2022 are not material.

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2022	Jan. 01, 2022
Current assets:
Cash and cash equivalents	$ 117,949	$ 201,457
Short term investments	0	33,044
Accounts receivable, net	66,025	160,642
Inventory	285,250	333,296
Other current assets	59,076	61,094
Total current assets	528,300	789,533
Property and equipment, net	60,909	78,887
Operating lease right-of-use assets	26,084	37,609
Deferred tax assets	16,248	37,945
Goodwill	167,724	173,292
Intangible assets, net	11,260	28,410
Other assets	24,918	38,753
Total assets	835,443	1,184,429
Current liabilities:
Accounts payable	184,016	251,298
Accrued expenses	98,959	132,618
Deferred revenue and customer advances	13,208	11,767
Total current liabilities	296,183	395,683
Operating lease liabilities	33,247	43,462
Deferred tax liabilities	931	3,250
Other long-term liabilities	29,366	25,311
Total long-term liabilities	63,544	72,023
Total liabilities	359,727	467,706
Commitments and contingencies (Note 13)
Preferred stock, 5,000 shares authorized and none outstanding	0	0
Common stock, $0.01 par value; 100,000 shares authorized; 27,423 and 27,006 shares issued and outstanding, respectively	274	270
Additional paid-in capital	257,498	222,653
Retained earnings	199,415	485,710
Accumulated other comprehensive income	18,529	8,090
Total stockholders’ equity	475,716	716,723
Total liabilities and stockholders’ equity	$ 835,443	$ 1,184,429

Nature of the Business

12 Months Ended

Dec. 31, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Nature of the Business


1.			Nature of the Business

iRobot Corporation ("iRobot" or the "Company") designs, builds and sells robots and home innovations that make life better. The Company's portfolio of home robots and smart home devices features proprietary technologies for the connected home and advanced concepts in cleaning, mapping and navigation, human-robot interaction and physical solutions. iRobot's durable and high-performing robots are designed using the close integration of software, electronics and hardware. The Company’s revenue is primarily generated from product sales through a variety of distribution channels, including chain stores and other national retailers, through the Company's own website and app, dedicated e-commerce websites, the online arms of traditional retailers and through value-added distributors and resellers worldwide.

Merger Agreement

On August 4, 2022, the Company entered into an Agreement and Plan of Merger (the "Merger Agreement") by and among the Company, Amazon.com, Inc., a Delaware corporation ("Parent" or "Amazon") and Martin Merger Sub, Inc., a Delaware corporation and a wholly owned subsidiary of Parent ("Merger Sub"), pursuant to which Merger Sub will merge with and into the Company (the "Merger"), with the Company surviving the Merger as a wholly owned subsidiary of Parent. As a result of the Merger, each share of common stock of the Company, par value $0.01 per share ("Common Stock"), outstanding immediately prior to the effective time of the Merger (the "Effective Time") (subject to certain exceptions, including shares of Common Stock owned by the Company, Merger Sub, Parent or any of their respective direct or indirect wholly owned subsidiaries and shares of Common Stock owned by stockholders of the Company who have validly demanded and not withdrawn appraisal rights in accordance with Section 262 of the General Corporation Law of the State of Delaware) will, at the Effective Time, automatically be cancelled and converted into the right to receive $61.00 in cash, without interest and subject to applicable withholding taxes. If the Merger is consummated, the Company’s Common Stock will be delisted from the Nasdaq Stock Market LLC and deregistered under the Securities Exchange Act of 1934.

Stock-Based Compensation

12 Months Ended

Dec. 31, 2022

Share-based Payment Arrangement [Abstract]

Stock-Based Compensation


12.			Stock-Based Compensation

The Company has awards and options outstanding under three stock incentive plans: the 2005 Stock Option and Incentive Plan (the "2005 Plan"), the 2015 Stock Option and Incentive Plan (the "2015 Plan") and the 2018 Stock Option and Incentive Plan (the "2018 Plan" and together with the 2005 Plan and the 2015 Plan, the "Plans"). The 2018 Plan is the only one of the three plans under which new awards may currently be granted. Under the 2018 Plan, which became effective on May 23, 2018, 1,750,000 shares were initially reserved for issuance in the form of incentive stock options, non-qualified stock options, stock appreciation rights, restricted stock awards, restricted stock units, unrestricted stock awards, cash-based awards, and dividend equivalent rights. On May 21, 2020, the stockholders approved an amendment to the 2018 Plan to increase the number of aggregate shares authorized for issuance to 2,495,000 shares, an increase of 745,000 shares. On May 27, 2022, the stockholders approved an amendment to the 2018 Plan to increase the number of aggregate shares authorized for issuance to 3,395,000 shares, an increase of 900,000 shares. Stock awards returned to the Plans, with the exception of those issued under the 2005 Plan, as a result of their expiration, cancellation or termination are automatically made available for issuance under the 2018 Plan. As of December 31, 2022, there were 1,394,174 shares available for future grant under the 2018 Plan. The Company recognized $31.9 million, $21.7 million and $30.0 million of stock-based compensation expense during the fiscal years ended December 31, 2022, January 1, 2022, and January 2, 2021, respectively.

Stock-based compensation breaks down by expense classification as follows (in thousands):


	Fiscal Year Ended
	December 31, 2022		January 1, 2022		January 2, 2021
Cost of revenue	$	2,194	$	1,321	$	1,511
Research and development	10,473		9,542		10,655
Selling and marketing	6,358		4,190		3,700
General and administrative	12,880		6,641		14,109
Total	$	31,905	$	21,694	$	29,975

Time-based Restricted Stock Units

Time-based restricted stock units entitle the holder to a specific number of shares of common stock upon vesting, typically over a three or four year period. As of December 31, 2022, the unamortized compensation costs associated with restricted stock units was $71.1 million with a weighted-average remaining recognition period of 2.19 years.

The following table summarizes the time-based restricted stock unit activity for fiscal 2022, 2021 and 2020:


	Number of Shares Underlying Restricted Stock	Weighted Average Grant Date Fair Value
Outstanding at December 28, 2019	819,232	$	73.83
Granted	493,908	61.53
Vested	(318,079)	67.95
Forfeited	(101,028)	75.20
Outstanding at January 2, 2021	894,033	68.97
Granted	523,496	88.73
Vested	(314,427)	71.36
Forfeited	(99,886)	75.82
Outstanding at January 1, 2022	1,003,216	77.85
Granted	638,554	54.26
Vested	(321,443)	78.10
Forfeited	(187,227)	73.45
Outstanding at December 31, 2022	1,133,100	$	65.21

The aggregate intrinsic value of outstanding time-based restricted stock units at December 31, 2022 was $54.5 million based on the Company's closing stock price on December 31, 2022 of $48.13, with a weighted average remaining contractual term of 1.22 years.

Performance-Based Restricted Stock Units

The Company grants performance-based restricted stock units ("PSUs") to certain of its employees that vest on the satisfaction of service and performance or market conditions. The performance conditions are based on certain financial performance targets at the end of a three year performance period, and therefore awards generally cliff vest at the end of a three year performance period. The market conditions are based on the relative TSRs compared to a certain index for each performance period, and therefore awards vest at the end of each performance period. The number of shares actually vested may range from 0% to 200% of the target number of PSUs granted based on the actual achievement of the conditions.

The unamortized fair value as of December 31, 2022 associated with performance based restricted stock units was $4.7 million with a weighted-average remaining recognition period of 0.99 years.

The following table summarizes the performance-based restricted stock unit activity for fiscal 2022, 2021 and 2020:


	Number of Shares Underlying PSU	Weighted Average Grant Date Fair Value
Outstanding at December 28, 2019	216,231	$	78.42
Granted	130,284	46.77
Vested	(71,734)	61.44
Forfeited	(45,129)	75.17
Outstanding at January 2, 2021	229,652	66.41
Granted	134,127	94.74
Vested	(55,503)	68.41
Forfeited	(23,154)	71.68
Outstanding at January 1, 2022	285,122	78.92
Granted	153,676	57.94
Vested	—	—
Forfeited	(71,616)	97.31
Outstanding at December 31, 2022	367,182	$	66.55

The aggregate intrinsic value of outstanding PSUs was $17.7 million based on the Company's closing stock price on December 31, 2022 of $48.13 with a weighted average remaining contractual term of 0.99 years.

Employee Stock Purchase Plan

In May 2017, the Company’s stockholders approved the 2017 Employee Stock Purchase Plan ("ESPP"). Eligible employees could purchase the Company’s common stock through payroll deductions at a price equal to 85% of the lower of the fair market values of the stock as of the beginning or the end of six-month offering periods beginning November 15 and May 15 of each year. An employee’s payroll deductions under the ESPP were limited to 15% of the employee’s compensation, up to $4,000 each period, for the purchase of common stock not to exceed 1,000 shares per offering period. The Company recognized $0.8 million, $1.2 million, and $1.0 million of stock-based compensation expense during the fiscal years ended December 31, 2022, January 1, 2022, and January 2, 2021, respectively. The final offering period under the ESPP closed on November 15, 2022, and under the terms of the Merger Agreement, no additional offering period may be commenced. The Company will terminate the ESPP immediately prior to, but contingent upon the occurrence of, the closing of the Merger.

Income Taxes - Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Jan. 01, 2022	Jan. 02, 2021
Company's adjustments to its uncertain tax position
Balance at beginning of period	$ 9,842	$ 8,559	$ 7,121
Increase for tax positions related to the current year	1,117	914	765
Increase for tax positions related to prior years	672	369	1,231
Decrease related to settlement with taxing authorities	(1,412)	0	0
Decrease for lapses of statute of limitations	(613)	0	(558)
Balance at end of period	$ 9,606	$ 9,842	$ 8,559

Property and Equipment (Tables)

12 Months Ended

Dec. 31, 2022

Property, Plant and Equipment [Abstract]

Property and equipment

Property and equipment are recorded at cost and depreciated using the straight-line method over the estimated useful lives as follows:


			Estimated Useful Life
Computer and equipment			2-5 years
Furniture and fixtures			5
Machinery and tooling			2-5

Business applications software			3-7
Leasehold improvements			Lesser of economic benefit period or term of lease

Property and equipment consists of the following (in thousands):


	December 31, 2022		January 1, 2022
Computer and equipment	$	12,750	$	12,723
Furniture and fixtures	7,843		9,329
Machinery and tooling	95,332		97,348
Leasehold improvements	29,594		32,207
Business applications software	16,018		16,048
Other	5,223		4,143
Subtotal	166,760		171,798
Less: accumulated depreciation	105,851		92,911
Property and equipment, net	$	60,909	$	78,887

Revenue Recognition (Notes)

12 Months Ended

Dec. 31, 2022

Revenue from Contract with Customer [Abstract]

Revenue from Contract with Customer


3.			Revenue Recognition

The Company primarily derives its revenue from the sale of consumer robots and accessories. The Company sells products directly to consumers through online stores and indirectly through resellers and distributors. Revenue is recognized upon transfer of control of promised products or services to customers in an amount that reflects the consideration the Company expects to receive in exchange for those products or services. Revenue is allocated to distinct performance obligations and is recognized net of allowances for returns and other credits and incentives. Revenue is recognized only to the extent that it is probable that a significant reversal of revenue will not occur and when collection is considered probable. Taxes collected from customers, which are subsequently remitted to governmental authorities, are excluded from revenue. Shipping and handling expenses are considered fulfillment activities and are expensed as incurred.

Frequently, the Company’s contracts with customers contain multiple promised goods or services. Such contracts may include any of the following, the consumer robot, downloadable app, cloud services, accessories on demand, potential future unspecified software upgrades, premium customer care and extended warranties. For these contracts, the Company accounts for the promises separately as individual performance obligations if they are distinct. Performance obligations are considered distinct if they are both capable of being distinct and distinct within the context of the contract. In determining whether performance obligations meet the criteria for being distinct, the Company considers a number of factors, such as the degree of interrelation and interdependence between obligations, and whether or not the good or service significantly modifies or transforms another good or service in the contract. The Company’s consumer robots are highly dependent on, and interrelated with, the embedded software and cannot function without the software. As such, the consumer robots are accounted for as a single performance obligation. The Company has determined that the app, cloud services and potential future unspecified software upgrades represent one performance obligation to the customer to enhance the functionality and interaction with the robot (referred to collectively as "Cloud Services"). Other services and support are considered distinct and therefore are treated as separate performance obligations.

The Company allocates revenue to all distinct performance obligations based on their relative stand-alone selling prices ("SSPs"). When available, the Company uses observable prices to determine SSPs. When observable prices are not available, SSPs are established that reflect the Company’s best estimates of what the selling prices of the performance obligations would be if they were sold regularly on a stand-alone basis. The Company’s process for estimating SSPs without observable prices considers multiple factors that may vary depending upon the facts and circumstances related to each performance obligation including market data or the estimated cost of providing the products or services. The transaction price allocated to the robot is recognized as revenue at a point in time when control is transferred, generally as title and risk of loss pass, and when collection is considered probable. The transaction price allocated to the Cloud Services is deferred and recognized on a straight-line basis over the estimated term of the Cloud Services. Other services and support are recognized over their service periods. For contracts with a duration of greater than one year, the transaction price allocated to performance obligations that are unsatisfied as of December 31, 2022 and January 1, 2022 was $23.2 million and $20.9 million, respectively.

The Company’s products generally carry a one-year or two-year limited warranty that promises customers that delivered products are as specified. The Company does not consider these assurance-type warranties as a separate performance obligation and therefore, the Company accounts for such warranties under ASC 460, "Guarantees." For contracts with the right to upgrade to a new product after a specified period of time, the Company accounts for this trade-in right as a guarantee obligation under ASC 460. The total transaction price is reduced by the full amount of the trade-in right's fair value and the remaining transaction price is allocated between the performance obligations within the contract.

The Company provides limited rights of returns for direct-to-consumer sales generated through its online stores and certain resellers and distributors. The Company records an allowance for product returns based on specific terms and conditions included in the customer agreements or based on historical experience and the Company's expectation of future returns. In addition, the Company may provide other credits or incentives which are accounted for as variable consideration when estimating the amount of revenue to recognize. Where appropriate, these estimates take into consideration relevant factors such as the Company’s historical experience, current contractual requirements, specific known market events and forecasted inventory level in the channels. Overall, these reserves reflect the Company’s best estimates, and the actual amounts of consideration ultimately received may differ from the Company’s estimates. Returns and credits are estimated at the time of sale and updated at the end of each reporting period as additional information becomes available. As of December 31, 2022, the Company had reserves for product returns of $49.2 million and other credits and incentives of $106.5 million. As of January 1, 2022, the Company had reserves for product returns of $56.8 million and other credits and incentives of $101.6 million. The Company regularly evaluates the adequacy of its estimates for product returns and other credits and incentives. Future market conditions and product transitions may require the Company to take action to change such programs and related estimates. When the variables used to estimate these reserves change, or if actual results differ significantly from the estimates, the Company increases or reduces revenue to reflect the impact. During fiscal 2022 and 2021, changes to these estimates related to performance obligations satisfied in prior periods were not material.

Disaggregation of Revenue

The following table provides information about disaggregated revenue by geographical region (in thousands):


	December 31, 2022		January 1, 2022		January 2, 2021
United States	$	615,107	$	754,173	$	744,648
EMEA	270,451		470,475		386,007
Japan	209,552		222,772		193,304
Other	88,273		117,567		106,431
Total revenue	$	1,183,383	$	1,564,987	$	1,430,390

Contract Balances

The following table provides information about receivables and contract liabilities from contracts with customers (in thousands):


	December 31, 2022		January 1, 2022
Accounts receivable, net	$	60,268	$	155,659
Unbilled receivables	6,569		8,747
Contract liabilities	24,140		22,996

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-URI http://asc.fasb.org/topic&trid=49130388

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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+ Details

Goodwill and other intangible assets - Future Amortization Expense (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Jan. 01, 2022
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months	$ 1,841
Finite-Lived Intangible Assets, Amortization Expense, Year Two	1,841
Finite-Lived Intangible Assets, Amortization Expense, Year Three	1,841
Finite-Lived Intangible Assets, Amortization Expense, Year Four	1,841
Finite-Lived Intangible Assets, Amortization Expense, Year Five	1,702
Finite-Lived Intangible Assets, Amortization Expense, after Year Five	2,194
Net	11,260	$ 28,410
Cost of revenue
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months	1,133
Finite-Lived Intangible Assets, Amortization Expense, Year Two	1,133
Finite-Lived Intangible Assets, Amortization Expense, Year Three	1,133
Finite-Lived Intangible Assets, Amortization Expense, Year Four	1,133
Finite-Lived Intangible Assets, Amortization Expense, Year Five	994
Finite-Lived Intangible Assets, Amortization Expense, after Year Five	0
Net	5,526
Operating Expense [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months	708
Finite-Lived Intangible Assets, Amortization Expense, Year Two	708
Finite-Lived Intangible Assets, Amortization Expense, Year Three	708
Finite-Lived Intangible Assets, Amortization Expense, Year Four	708
Finite-Lived Intangible Assets, Amortization Expense, Year Five	708
Finite-Lived Intangible Assets, Amortization Expense, after Year Five	2,194
Net	$ 5,734

Industry Segment, Geographic Information and Significant Customers

12 Months Ended

Dec. 31, 2022

Segment Reporting [Abstract]

Industry Segment, Geographic Information and Significant Customers


16.			Industry Segment, Geographic Information and Significant Customers

The Company operates as one operating segment. The Company's consumer robots are offered to consumers through a variety of distribution channels, including chain stores and other national retailers, through the Company's own website and app, dedicated e-commerce websites, the online arms of traditional retailers, and through value-added distributors and resellers worldwide.

Geographic Information

For the fiscal years ended December 31, 2022, January 1, 2022 and January 2, 2021, sales to non-U.S. customers accounted for 48.0%, 51.8% and 47.9% of total revenue, respectively.

The following table provides information about revenue by geographical region (in thousands):


	December 31, 2022		January 1, 2022		January 2, 2021
Domestic	$	615,107	$	754,173	$	744,648
International	568,276		810,814		685,742
Total	$	1,183,383	$	1,564,987	$	1,430,390

Significant Customers

For the fiscal years ended December 31, 2022, January 1, 2022, and January 2, 2021, there was one customer that accounted for 10% or more of total revenue, representing 22.6%, 21.8% and 22.7%, of total revenue, respectively.

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Commitments and Contingencies

12 Months Ended

Dec. 31, 2022

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies


13.			Commitments and Contingencies

Legal Proceedings

From time to time and in the ordinary course of business, the Company is subject to various claims, charges and litigation. The outcome of litigation cannot be predicted with certainty and some lawsuits, claims or proceedings may be disposed of unfavorably to us, which could materially affect our financial condition or results of operations.

Outstanding Purchase Orders

As of December 31, 2022, we had outstanding purchase orders aggregating approximately $151.5 million. Included in the outstanding purchase orders, $18.5 million are not cancellable without penalty which is a decrease of $23.4 million from prior year as we continue to manage liquidity. The purchase orders, the majority of which are with our contract manufacturers for the purchase of inventory in the normal course of business, are for manufacturing and non-manufacturing related goods and services.

Guarantees and Indemnification Obligations

The Company enters into standard indemnification agreements in the ordinary course of business. Pursuant to these agreements, the Company indemnifies and agrees to reimburse the indemnified party for losses incurred by the indemnified party, generally the Company’s customers, in connection with any patent, copyright, trade secret or other proprietary right infringement claim by any third party. The term of these indemnification agreements is generally perpetual any time after execution of the agreement. The maximum potential amount of future payments the Company could be required to make under these indemnification agreements is unlimited. The Company has never incurred costs to defend lawsuits or settle claims related to these indemnification agreements. As a result, the Company believes the estimated fair value of these agreements is minimal. Accordingly, the Company has no liabilities recorded for these agreements as of December 31, 2022 and January 1, 2022, respectively.

Warranty

The Company provides warranties on most products and has established a reserve for warranty obligations based on estimated warranty costs. The reserve is included as part of accrued expenses (Note 7) in the accompanying consolidated balance sheets.

Activity related to the warranty accrual was as follows (in thousands):


	Fiscal Year Ended
	December 31, 2022		January 1, 2022		January 2, 2021
Balance at beginning of period	$	32,019	$	24,392	$	13,856

Provision	22,155		42,430		28,884
Warranty claims	(26,795)		(34,803)		(18,348)
Balance at end of period	$	27,379	$	32,019	$	24,392

Accrued Expenses (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Jan. 01, 2022
Components of accrued expenses
Accrued warranty	$ 27,379	$ 32,019
Accrued manufacturing and logistics cost (1)	970	23,038
Accrued compensation and benefits	23,791	19,029
Accrued bonus	4,538	11,375
Accrued sales and other indirect taxes payable	7,683	9,599
Current portion of operating lease liabilities	5,415	6,220
Derivative liability	7,310	2,600
Accrued income taxes	5,070	1,788
Accrued other	16,803	26,950
Accrued expenses, total	$ 98,959	132,618
Import duties included in accrued manufacturing and logistics cost		$ 22,200

Stock-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2022

Share-based Payment Arrangement [Abstract]

Share based compensation expense by classification

Stock-based compensation breaks down by expense classification as follows (in thousands):


	Fiscal Year Ended
	December 31, 2022		January 1, 2022		January 2, 2021
Cost of revenue	$	2,194	$	1,321	$	1,511
Research and development	10,473		9,542		10,655
Selling and marketing	6,358		4,190		3,700
General and administrative	12,880		6,641		14,109
Total	$	31,905	$	21,694	$	29,975

Summary of stock option plan activity

Activities relating to time based restricted stock units

The following table summarizes the time-based restricted stock unit activity for fiscal 2022, 2021 and 2020:


	Number of Shares Underlying Restricted Stock	Weighted Average Grant Date Fair Value
Outstanding at December 28, 2019	819,232	$	73.83
Granted	493,908	61.53
Vested	(318,079)	67.95
Forfeited	(101,028)	75.20
Outstanding at January 2, 2021	894,033	68.97
Granted	523,496	88.73
Vested	(314,427)	71.36
Forfeited	(99,886)	75.82
Outstanding at January 1, 2022	1,003,216	77.85
Granted	638,554	54.26
Vested	(321,443)	78.10
Forfeited	(187,227)	73.45
Outstanding at December 31, 2022	1,133,100	$	65.21

Activities relating to performance based restricted stock units

The following table summarizes the performance-based restricted stock unit activity for fiscal 2022, 2021 and 2020:


	Number of Shares Underlying PSU	Weighted Average Grant Date Fair Value
Outstanding at December 28, 2019	216,231	$	78.42
Granted	130,284	46.77
Vested	(71,734)	61.44
Forfeited	(45,129)	75.17
Outstanding at January 2, 2021	229,652	66.41
Granted	134,127	94.74
Vested	(55,503)	68.41
Forfeited	(23,154)	71.68
Outstanding at January 1, 2022	285,122	78.92
Granted	153,676	57.94
Vested	—	—
Forfeited	(71,616)	97.31
Outstanding at December 31, 2022	367,182	$	66.55

Property and Equipment

12 Months Ended

Dec. 31, 2022

Property, Plant and Equipment [Abstract]

Property and Equipment


5.			Property and Equipment

Property and equipment consists of the following (in thousands):


	December 31, 2022		January 1, 2022
Computer and equipment	$	12,750	$	12,723
Furniture and fixtures	7,843		9,329
Machinery and tooling	95,332		97,348
Leasehold improvements	29,594		32,207
Business applications software	16,018		16,048
Other	5,223		4,143
Subtotal	166,760		171,798
Less: accumulated depreciation	105,851		92,911
Property and equipment, net	$	60,909	$	78,887

As of December 31, 2022 and January 1, 2022, the net book value of capitalized internal-use software costs was $2.8 million and $4.9 million, respectively, which are included within business applications software.

Depreciation expense for the years ended December 31, 2022, January 1, 2022 and January 2, 2021 was $32.5 million, $31.1 million, and $31.9 million, respectively, which included amortization expense of $2.2 million, $2.3 million and $2.1 million, respectively, for capitalized internal-use software.

Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2022

Accounting Policies [Abstract]

Components of Short-term Investments

Investments consisted of the following (in thousands):


	December 31, 2022				January 1, 2022
	Cost		Fair Market Value		Cost		Fair Market Value
Marketable equity securities	$	—	$	—	$	23,286	$	33,044

Total short term investments	$	—	$	—	$	23,286	$	33,044

Activity related to accounts receivable allowances was as follows (in thousands):


	Fiscal Year Ended
	December 31, 2022		January 1, 2022		January 2, 2021
Allowance for product returns
Balance at beginning of period	$	56,839	$	64,343	$	55,191
Provision	41,969		61,014		68,028
Deduction	(49,657)		(68,518)		(58,876)

Balance at end of period	$	49,151	$	56,839	$	64,343

Allowance for other credits and incentives
Balance at beginning of period	$	101,606	$	142,173	$	134,046
Provision	269,187		267,821		285,139
Deduction	(264,274)		(308,388)		(277,012)

Balance at end of period	$	106,519	$	101,606	$	142,173

Property and equipment

Property and equipment are recorded at cost and depreciated using the straight-line method over the estimated useful lives as follows:


			Estimated Useful Life
Computer and equipment			2-5 years
Furniture and fixtures			5
Machinery and tooling			2-5

Business applications software			3-7
Leasehold improvements			Lesser of economic benefit period or term of lease

Property and equipment consists of the following (in thousands):


	December 31, 2022		January 1, 2022
Computer and equipment	$	12,750	$	12,723
Furniture and fixtures	7,843		9,329
Machinery and tooling	95,332		97,348
Leasehold improvements	29,594		32,207
Business applications software	16,018		16,048
Other	5,223		4,143
Subtotal	166,760		171,798
Less: accumulated depreciation	105,851		92,911
Property and equipment, net	$	60,909	$	78,887

Basic and diluted net income per share

The following table presents the calculation of both basic and diluted net (loss) income per share (in thousands, except per share amounts):


	Fiscal Year Ended
	December 31, 2022		January 1, 2022		January 2, 2021
Net (loss) income	$	(286,295)	$	30,390	$	147,068
Weighted-average shares outstanding	27,214		27,687		28,101
Dilutive effect of employee stock plans	—		475		517
Diluted weighted-average shares outstanding	27,214		28,162		28,618
Basic (loss) income per share	$	(10.52)	$	1.10	$	5.23
Diluted (loss) income per share	$	(10.52)	$	1.08	$	5.14

Revenue Recognition Disaggregation of Revenue (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Jan. 01, 2022	Jan. 02, 2021
Disaggregation of Revenue [Line Items]
Revenues	$ 1,183,383	$ 1,564,987	$ 1,430,390
UNITED STATES
Disaggregation of Revenue [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	615,107	754,173	744,648
EMEA [Member]
Disaggregation of Revenue [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	270,451	470,475	386,007
All Other Regions [Member]
Disaggregation of Revenue [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	88,273	117,567	106,431
JAPAN
Disaggregation of Revenue [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	$ 209,552	$ 222,772	$ 193,304

- Definition

Amount, excluding tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value added and excise.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
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+ Details

- Definition

Amount of revenue recognized from goods sold, services rendered, insurance premiums, or other activities that constitute an earning process. Includes, but is not limited to, investment and interest income before deduction of interest expense when recognized as a component of revenue, and sales and trading gain (loss).

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+ Details

Revenue Recognition Contract Balances (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Jan. 01, 2022
Revenue from Contract with Customer [Abstract]
Unbilled receivables	$ 6,569	$ 8,747
Contract liabilities	24,140	22,996
Revenue recognized	13,500	12,500
Contract with Customer, Receivable, after Allowance for Credit Loss	$ 60,268	$ 155,659

Accrued Expenses (Tables)

12 Months Ended

Dec. 31, 2022

Accrued Liabilities, Current [Abstract]

Components of accrued expenses

Accrued expenses consist of the following (in thousands):


	December 31, 2022		January 1, 2022
Accrued warranty	$	27,379	$	32,019
Accrued compensation and benefits	23,791		19,029
Accrued sales and other indirect taxes payable	7,683		9,599
Derivative liability	7,310		2,600
Current portion of operating lease liabilities	5,415		6,220
Accrued income taxes	5,070		1,788
Accrued bonus	4,538		11,375

Accrued manufacturing and logistics cost (1)	970		23,038
Accrued other	16,803		26,950
	$	98,959	$	132,618

Working Capital Facilities (Details) ¥ in Millions, $ in Millions			3 Months Ended	20 Months Ended
	Oct. 28, 2022 USD ($)	May 04, 2022	Apr. 01, 2023	Sep. 17, 2024	Dec. 29, 2023 USD ($)	Jan. 17, 2023 USD ($)	Dec. 31, 2022 USD ($)	Dec. 31, 2022 JPY (¥)	Dec. 30, 2022 USD ($)
Line of Credit Facility [Line Items]
Letter of credit facility, maximum borrowing							$ 5.0
Letters of credit outstanding							0.4
Line of credit, maximum amount \| ¥								¥ 250.0
Second Amendment To Amended And Restated Credit Agreement \| London Interbank Offered Rate (LIBOR)
Line of Credit Facility [Line Items]
Borrowing rate		1.50%
Third Amendment To Amended And Restated Credit Agreement \| Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate
Line of Credit Facility [Line Items]
Borrowing rate	1.50%
Credit spread adjustment	0.10%
Revolving Credit Facility \| Line of Credit
Line of Credit Facility [Line Items]
Maximum amount available for borrowing under credit facility							150.0		$ 150.0
Amount outstanding							$ 0.0
Current borrowing capacity	$ 200.0
Decrease to borrowing capacity									(50.0)
Minimum cash requirement	$ 25.0
Minimum borrowings									75.0
Revolving Credit Facility \| Line of Credit \| Forecast
Line of Credit Facility [Line Items]
Minimum term (in consecutive days)			10 days
Revolving Credit Facility \| Line of Credit \| Subsequent Event
Line of Credit Facility [Line Items]
Current borrowing capacity						$ 100.0
Revolving Credit Facility \| Line of Credit \| Third Amendment To Amended And Restated Credit Agreement
Line of Credit Facility [Line Items]
Minimum borrowings									$ 75.0
Revolving Credit Facility \| Line of Credit \| Third Amendment To Amended And Restated Credit Agreement \| Forecast
Line of Credit Facility [Line Items]
Minimum term (in consecutive days)			10 days
Revolving Credit Facility \| Line of Credit \| Fourth Amendment To Amended And Restated Credit Agreement \| Forecast
Line of Credit Facility [Line Items]
Minimum borrowings					$ 25.0
Minimum term (in consecutive days)				30 days
Revolving Credit Facility \| Line of Credit \| Fourth Amendment To Amended And Restated Credit Agreement \| Subsequent Event
Line of Credit Facility [Line Items]
Minimum cash requirement						$ 25.0
Interest rate, SOFR loans						4.50%
Interest rate, Base Rate loans						3.50%
Interest rate, unused commitments						3.50%
Borrowing base, eligible receivables						80.00%
Borrowing base, eligible inventory						50.00%
Borrowing base, eligible in-transit inventory						30.00%

Summary of Significant Accounting Policies - Short Term Investments (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Jan. 01, 2022
Components of available for sale securities
Short-term investments, cost	$ 0	$ 23,286
Short-term investments, fair value	0	33,044
Marketable equity securities
Components of available for sale securities
Equity securities, cost	0	23,286
Equity securities, fair value	$ 0	$ 33,044

Income Taxes

12 Months Ended

Dec. 31, 2022

Income Tax Disclosure [Abstract]

Income Taxes


15.			Income Taxes

(Loss) income before provision for income taxes was as follows (in thousands):


	Fiscal Year Ended
	December 31, 2022		January 1, 2022		January 2, 2021
Domestic	$	(238,685)	$	8,880	$	166,973
Foreign	(22,998)		19,404		20,942
(Loss) income before income taxes	$	(261,683)	$	28,284	$	187,915

The components of income tax provision (benefit) were as follows (in thousands):


	Fiscal Year Ended
	December 31, 2022		January 1, 2022		January 2, 2021
Current
Federal	$	(1,738)	$	1,045	$	13,593
State	743		441		2,724
Foreign	7,118		7,019		10,451
Total current income tax provision	$	6,123	$	8,505	$	26,768
Deferred
Federal	$	18,991	$	(8,286)	$	14,695
State	10,652		(690)		2,552
Foreign	(11,154)		(1,635)		(3,168)
Total deferred income tax provision (benefit)	18,489		(10,611)		14,079
Total income tax provision (benefit)	$	24,612	$	(2,106)	$	40,847

The reconciliation of statutory federal income tax to the income tax provision (benefit) is as follows (in thousands):


	Fiscal Year Ended
	December 31, 2022		January 1, 2022		January 2, 2021
Statutory federal income tax	$	(54,953)	$	5,940	$	39,462

State taxes (net of federal benefit)	(6,314)		389		4,834
Federal and state credits	(9,473)		(7,620)		(6,702)


Excess tax expenses (benefits) from stock-based compensation	1,813		(4,160)		313

Foreign-derived intangible income	(1,364)		(3,253)		(3,360)


Executive compensation	541		1,706		718
Foreign tax rate differential	1,416		264		1,458
Change in valuation allowance	91,905		4,691		3,817
Non-deductible transaction costs	2,711		—		—
Other	(1,670)		(63)		307
	$	24,612	$	(2,106)	$	40,847

The components of net deferred tax assets were as follows (in thousands):


	December 31, 2022		January 1, 2022
Deferred tax assets:
Capitalized research and development(1)	$	48,348	$	—
Revenue reserves	23,049		22,039
Accruals and other liabilities	11,448		14,518
Operating lease liabilities	8,511		11,428
Tax credits and net operating loss carryforwards	28,240		17,326

Stock-based compensation	4,868		3,463

Other	7,032		5,476
Total deferred tax assets	131,496		74,250
Valuation allowance	(99,444)		(13,136)
Total deferred tax assets net of valuation	32,052		61,114
Deferred tax liabilities:
Intangible assets	2,597		5,469
Operating lease right-of-use assets	7,862		10,998
Unrealized gains from securities and hedging instruments	3,698		7,370
Other	2,578		2,582
Total deferred tax liabilities	16,735		26,419
Net deferred tax assets	$	15,317	$	34,695

(1)The Tax Cuts and Jobs Act (TCJA) requires taxpayers to capitalize and amortize research and experimental (R&D) expenditures under section 174 for tax years beginning after December 31, 2021. This rule became effective for the Company during the year and resulted in the capitalization of R&D costs $224.5 million. The Company will amortize these costs for tax purposes over 5 years if the R&D was performed in the U.S. and over 15 years if the R&D was performed outside the U.S.

The Company intends to continue to invest all of its unremitted foreign earnings, as well as the capital in its foreign subsidiaries, indefinitely outside of the U.S. At December 31, 2022, the Company has unremitted foreign earnings for which any unrecognized deferred tax liability on these unremitted earnings would be immaterial.

The Company has federal and foreign net operating loss carryforwards of $3.8 million and $29.0 million, respectively, as of December 31, 2022. As of December 31, 2022, the Company has a full valuation allowance of $0.9 million against its U.S. net operating loss carryforwards and a valuation allowance of $4.7 million in certain foreign jurisdictions for net operating loss carryforwards and other deferred tax assets that have statutory limitations on deductibility. The Company has federal research and development credit carryforwards of $4.6 million as of December 31, 2022 that will expire in 2043. It has state research and development credit carryforwards of $23.1 million and $19.4 million as of December 31, 2022 and January 1, 2022, respectively, which expire from 2029 to 2038. Under the Internal Revenue Code and state law, certain substantial changes in the Company’s ownership could result in an annual limitation on the amount of these tax carryforwards which can be utilized in future years. During the third quarter of fiscal 2022, the Company concluded that, based on its evaluation of available positive and negative evidence, it is no longer more likely than not that its net U.S. federal and state deferred tax assets are recoverable. In assessing the realizability of its U.S. deferred tax assets, the key factors used to determine positive and negative evidence included its recent losses resulting in cumulative loss for the three-year period ended December 31, 2022, current macroeconomic trends, and expected future reversals of existing taxable temporary differences. Such objective negative evidence limits the Company's ability to consider other subjective evidence, such as its projections for future growth. Given the weight of objectively verifiable historical losses from the Company's U.S. operations, the Company recorded a valuation allowance of $57.5 million in the third quarter of fiscal 2022 as a reserve against our net U.S. federal and state deferred tax assets. The change in valuation allowance for all of fiscal 2022 was $86.3 million. As of December 31, 2022, January 1, 2022 and January 2, 2021, the Company had a valuation allowance of $99.4 million, $13.1 million and $7.6 million, respectively, for all of its U.S. deferred tax assets and certain foreign deferred tax assets for which the Company believes do not meet the "more likely than not" criteria for recognition. A valuation allowance is a non-cash charge, and does not limit the Company’s ability to utilize its deferred tax assets, including its ability to utilize tax loss and credit carryforward amounts, against future taxable income. The amount of the deferred tax assets considered realizable, and the associated valuation allowance, could be adjusted

in a future period if estimates of future taxable income change or if objective negative evidence in the form of cumulative losses is no longer present and additional weight is given to subjective evidence such as projections for future growth.

The following table summarized the activity related to the Company's gross unrecognized tax benefits (in thousands):


	Fiscal Year Ended
	December 31, 2022		January 1, 2022		January 2, 2021
Balance at beginning of period	$	9,842	$	8,559	$	7,121
Increase for tax positions related to the current year	1,117		914		765

Increase for tax positions related to prior years	672		369		1,231
Decrease related to settlement with taxing authorities	(1,412)		—		—
Decrease for lapses of statute of limitations	(613)		—		(558)
Balance at end of period	$	9,606	$	9,842	$	8,559

The Company accrues interest and, if applicable, penalties for any uncertain tax positions as a component of income tax expense. As of December 31, 2022, January 1, 2022 and January 2, 2021 there were no material accrued interest or penalties. Significant judgment is required in evaluating its uncertain tax positions and determining its provision for income taxes. The Company does not expect a significant change in the amount of unrecognized tax benefits within the next 12 months. If all of the Company's unrecognized tax benefits as of December 31, 2022 were to become recognizable in the future, it would record a $10.8 million benefit, inclusive of interest, to the income tax provision.

The Company is subject to taxation in the United States (federal and state) and foreign jurisdictions. The statute of limitations for examinations by the Internal Revenue Service (the "IRS") and state tax authorities is closed for fiscal years prior to fiscal 2017. Federal and state carryforward attributes that were generated prior to fiscal 2017 may still be adjusted upon examination by the federal or state tax authorities if they either have been or will be used in a period for which the statute of limitations is still open. There are other ongoing audits in various other jurisdictions that are not material to the Company's financial statements. The Company regularly assesses the likelihood of adverse outcomes resulting from these examinations to determine the adequacy of its provision for income taxes. The Company continues to monitor the progress of ongoing discussions with tax authorities and the effect, if any, of the expected expiration of the statute of limitations in various taxing jurisdictions. The Company believes that an adequate provision has been made for any adjustments that may result from tax examinations. However, the outcome of tax audits cannot be predicted with certainty. If any issues addressed in the Company's tax audits are resolved in a manner not consistent with management's expectations, the Company could be required to adjust its provision for income taxes in the period such resolution occurs. Although the timing of resolution, settlement, and closure of audits is not certain, it is reasonably possible that certain U.S. federal and non-U.S. tax audits may be concluded within the next 12 months, which could increase or decrease the balance of the Company's gross unrecognized tax benefits.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

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-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 30
-Section 50
-Paragraph 2
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(h)(2))
-URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

+ Details

Goodwill and other intangible assets - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Oct. 01, 2022	Dec. 31, 2022	Jan. 01, 2022	Jan. 02, 2021
Finite-Lived Intangible Assets [Line Items]
Goodwill		$ 167,724	$ 173,292	$ 125,872
Impairment loss on intangible assets	$ 11,100	$ 11,100
Aeris Cleantec AG
Finite-Lived Intangible Assets [Line Items]
Consideration transferred			71,400
Intangible assets acquired, fair value			$ 21,000
Intangible assets, useful life			5 years

Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2022	Jan. 01, 2022	Jan. 02, 2021
Revenue	$ 1,183,383	$ 1,564,987	$ 1,430,390
Cost of product revenue	830,478	1,013,465	758,241
Amortization of acquired intangible assets	2,812	1,223	1,920
Total cost of revenue	833,290	1,014,688	760,161
Gross profit	350,093	550,299	670,229
Operating expenses:
Research and development	166,508	161,331	156,670
Selling and marketing	293,307	289,848	265,475
General and administrative	118,112	99,190	100,770
Amortization of acquired intangible assets	12,549	1,030	992
Total operating expenses	590,476	551,399	523,907
Operating (loss) income	(240,383)	(1,100)	146,322
Other (expense) income, net	(21,300)	29,384	41,593
(Loss) income before income taxes	(261,683)	28,284	187,915
Income tax expense (benefit)	24,612	(2,106)	40,847
Net (loss) income	$ (286,295)	$ 30,390	$ 147,068
Net (loss) income per share:
Basic income per share (in usd per share)	$ (10.52)	$ 1.10	$ 5.23
Diluted income per share (in usd per share)	$ (10.52)	$ 1.08	$ 5.14
Number of shares used in per share calculations:
Basic	27,214	27,687	28,101
Diluted	27,214	28,162	28,618

Commitments and Contingencies - Warranty (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Jan. 01, 2022	Jan. 02, 2021
Activity related to the warranty accrual
Balance at beginning of period	$ 32,019	$ 24,392	$ 13,856
Provision	22,155	42,430	28,884
Warranty usage	(26,795)	(34,803)	(18,348)
Balance at end of period	$ 27,379	$ 32,019	$ 24,392

Revenue Recognition Significant Judgments (Details) - USD ($) $ in Millions	Dec. 31, 2022	Jan. 01, 2022
Revenue from Contract with Customer [Abstract]
Refund liability, product returns	$ 49.2	$ 56.8
Refund liability, other credits and incentives	$ 106.5	$ 101.6

Income Taxes - Effective Income Tax Reconciliation (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Jan. 01, 2022	Jan. 02, 2021
Reconciliation of the expected tax (benefit) expense
Statutory federal income tax	$ (54,953)	$ 5,940	$ 39,462
State taxes (net of federal benefit)	(6,314)	389	4,834
Federal and state credits	(9,473)	(7,620)	(6,702)
Excess tax expenses (benefits) from stock-based compensation	1,813	(4,160)	313
Foreign-derived intangible income	(1,364)	(3,253)	(3,360)
Executive compensation	541	1,706	718
Foreign tax rate differential	1,416	264	1,458
Change in valuation allowance	91,905	4,691	3,817
Non-deductible transaction costs	2,711	0	0
Other	(1,670)	(63)	307
Total income tax provision (benefit)	$ 24,612	$ (2,106)	$ 40,847

Stock-Based Compensation - RSUs and PSUs (Details) - $ / shares	12 Months Ended
	Dec. 31, 2022	Jan. 01, 2022	Jan. 02, 2021
Restricted Stock Units (RSUs)
Activities relating to restricted stock awards
Number of Shares Underlying Restricted Stock, Beginning Balance	1,003,216	894,033	819,232
Number of Shares Underlying Restricted Stock, Granted	638,554	523,496	493,908
Number of Shares Underlying Restricted Stock, Vested	(321,443)	(314,427)	(318,079)
Number of Shares Underlying Restricted Stock, Forfeited	(187,227)	(99,886)	(101,028)
Number of Shares Underlying Restricted Stock, Ending Balance	1,133,100	1,003,216	894,033
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
Weighted Average Grant Date Fair Value, Beginning Balance (in dollars per share)	$ 77.85	$ 68.97	$ 73.83
Weighted Average Grant Date Fair Value, Granted (in dollars per share)	54.26	88.73	61.53
Weighted Average Grant Date Fair Value, Vested (in dollars per share)	78.10	71.36	67.95
Weighted Average Grant Date Fair Value, Forfeited (in dollars per share)	73.45	75.82	75.20
Weighted Average Grant Date Fair Value, Ending Balance (in dollars per share)	$ 65.21	$ 77.85	$ 68.97
Performance Based Restricted Stock Units
Activities relating to restricted stock awards
Number of Shares Underlying Restricted Stock, Beginning Balance	285,122	229,652	216,231
Number of Shares Underlying Restricted Stock, Granted	153,676	134,127	130,284
Number of Shares Underlying Restricted Stock, Vested	0	(55,503)	(71,734)
Number of Shares Underlying Restricted Stock, Forfeited	(71,616)	(23,154)	(45,129)
Number of Shares Underlying Restricted Stock, Ending Balance	367,182	285,122	229,652
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
Weighted Average Grant Date Fair Value, Beginning Balance (in dollars per share)	$ 78.92	$ 66.41	$ 78.42
Weighted Average Grant Date Fair Value, Granted (in dollars per share)	57.94	94.74	46.77
Weighted Average Grant Date Fair Value, Vested (in dollars per share)	0	68.41	61.44
Weighted Average Grant Date Fair Value, Forfeited (in dollars per share)	97.31	71.68	75.17
Weighted Average Grant Date Fair Value, Ending Balance (in dollars per share)	$ 66.55	$ 78.92	$ 66.41

Nature of the Business (Details) - $ / shares	Aug. 04, 2022	Dec. 31, 2022	Jan. 01, 2022
Business Acquisition [Line Items]
Common stock, par value (in dollars per share)		$ 0.01	$ 0.01
Amazon.com, Inc. and Martin Merger Sub, Inc.
Business Acquisition [Line Items]
Common stock, par value (in dollars per share)	$ 0.01
Cash portion, cash per share for common stock converted (in dollars per share)	$ 61.00

Industry Segment, Geographic Information and Significant Customers Revenue by geography (Tables)

12 Months Ended

Dec. 31, 2022

Segment Reporting [Abstract]

Schedule of revenue by geography

The following table provides information about revenue by geographical region (in thousands):


	December 31, 2022		January 1, 2022		January 2, 2021
Domestic	$	615,107	$	754,173	$	744,648
International	568,276		810,814		685,742
Total	$	1,183,383	$	1,564,987	$	1,430,390

Fair Value Measurements

12 Months Ended

Dec. 31, 2022

Fair Value Disclosures [Abstract]

Fair Value Measurements


10.			Fair Value Measurements

Fair Value Measurements - Recurring Basis

The Company’s financial assets and liabilities measured at fair value on a recurring basis were as follows (in thousands):


	Fair Value Measurements as of
	December 31, 2022
	Level 1		Level 2 (1)		Level 3
Assets:
Money market funds	$	79,005	$	—	$	—



Derivative instruments (Note 9)	—		5,619		—
Total assets measured at fair value	$	79,005	$	5,619	$	—

Liabilities:
Derivative instruments (Note 9)	$	—	$	13,793	$	—
Total liabilities measured at fair value	$	—	$	13,793	$	—


	Fair Value Measurements as of
	January 1, 2022
	Level 1		Level 2 (1)		Level 3
Assets:
Money market funds	$	33,003	$	—	$	—
Marketable equity securities, $23,286 at cost	33,044		—		—

Derivative instruments (Note 9)	—		23,709		—
Total assets measured at fair value	$	66,047	$	23,709	$	—

Liabilities:
Derivative instruments (Note 9)	$	—	$	3,007	$	—
Total liabilities measured at fair value	$	—	$	3,007	$	—

(1)Level 2 fair value estimates are based on observable inputs other than quoted prices in active markets for identical assets and liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Leases (Details) - USD ($) $ in Thousands	12 Months Ended
Leases (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Jan. 01, 2022	Jan. 02, 2021
Leases [Abstract]
Operating Lease, Weighted Average Discount Rate, Percent	4.02%
Operating Lease, Weighted Average Remaining Lease Term	6 years 8 months 12 days
Operating lease cost	$ 6,622	$ 8,510	$ 9,363
Variable lease cost	3,644	3,633	3,583
Total lease cost	10,266	12,143	12,946
Operating Lease, Payments	8,187	8,762	9,862
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability	$ 0	$ 0	$ 2,310
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List]	Accrued Liabilities, Current	Accrued Liabilities, Current

Employee Benefits (Details) - USD ($) $ in Millions	12 Months Ended
Employee Benefits (Details) - USD ($) $ in Millions	Dec. 31, 2022	Jan. 01, 2022	Jan. 02, 2021
Retirement Benefits [Abstract]
Employee benefits, matching contribution	$ 3.9	$ 3.8	$ 3.0
Employer matching contribution percent	50.00%
Percent of employees fist contribution	6.00%
Maximum employee contribution percent	3.00%

Leases Maturity of Operating Lease Liability (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Jan. 01, 2022
Leases [Abstract]
2023	$ 7,265
2024	6,598
2025	5,688
2026	5,800
2027	5,877
Thereafter	13,048
Total minimum lease payments	44,276
Less: imputed interest	5,614
Present value of future minimum lease payments	38,662
Current portion of operating lease liabilities	5,415	$ 6,220
Operating lease liabilities	$ 33,247	$ 43,462

Goodwill and other intangible assets - Intangible Assets (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Jan. 01, 2022	Jan. 02, 2021
Finite-Lived Intangible Assets, Net [Abstract]
Cost	$ 74,273	$ 92,811
Accumulated Amortization	63,013	64,401
Net	11,260	28,410
Amortization	15,361	2,253	$ 2,900
Completed technology
Finite-Lived Intangible Assets, Net [Abstract]
Cost	33,909	43,727
Accumulated Amortization	28,383	27,752
Net	5,526	15,975
Tradename
Finite-Lived Intangible Assets, Net [Abstract]
Cost	100	100
Accumulated Amortization	100	100
Net	0	0
Customer relationships
Finite-Lived Intangible Assets, Net [Abstract]
Cost	10,104	16,628
Accumulated Amortization	4,370	4,193
Net	5,734	12,435
Reacquired distribution rights
Finite-Lived Intangible Assets, Net [Abstract]
Cost	29,915	32,096
Accumulated Amortization	29,915	32,096
Net	0	0
Non-competition agreements
Finite-Lived Intangible Assets, Net [Abstract]
Cost	245	260
Accumulated Amortization	245	260
Net	$ 0	$ 0

Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2022

Fair Value Disclosures [Abstract]

Schedule of financial assets and liabilities measured at fair value on a recurring basis

The Company’s financial assets and liabilities measured at fair value on a recurring basis were as follows (in thousands):


	Fair Value Measurements as of
	December 31, 2022
	Level 1		Level 2 (1)		Level 3
Assets:
Money market funds	$	79,005	$	—	$	—



Derivative instruments (Note 9)	—		5,619		—
Total assets measured at fair value	$	79,005	$	5,619	$	—

Liabilities:
Derivative instruments (Note 9)	$	—	$	13,793	$	—
Total liabilities measured at fair value	$	—	$	13,793	$	—


	Fair Value Measurements as of
	January 1, 2022
	Level 1		Level 2 (1)		Level 3
Assets:
Money market funds	$	33,003	$	—	$	—
Marketable equity securities, $23,286 at cost	33,044		—		—

Derivative instruments (Note 9)	—		23,709		—
Total assets measured at fair value	$	66,047	$	23,709	$	—

Liabilities:
Derivative instruments (Note 9)	$	—	$	3,007	$	—
Total liabilities measured at fair value	$	—	$	3,007	$	—

Audit Information	12 Months Ended
Audit Information	Dec. 31, 2022
Auditor Information [Abstract]
Auditor Name	PricewaterhouseCoopers LLP
Auditor Location	Boston, Massachusetts
Auditor Firm ID	238

Summary of Significant Accounting Policies - Accounts Receivable Allowances (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Jan. 01, 2022	Jan. 02, 2021
Allowance for product returns
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]
Balance at beginning of period	$ 56,839	$ 64,343	$ 55,191
Provision	41,969	61,014	68,028
Deduction	(49,657)	(68,518)	(58,876)
Balance at end of period	49,151	56,839	64,343
Allowance for other credits and incentives
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]
Balance at beginning of period	101,606	142,173	134,046
Provision	269,187	267,821	285,139
Deduction	(264,274)	(308,388)	(277,012)
Balance at end of period	$ 106,519	$ 101,606	$ 142,173

Summary of Significant Accounting Policies - Narrative (Details) shares in Millions				1 Months Ended		3 Months Ended					12 Months Ended
	Jul. 22, 2021 shares	Jul. 01, 2020 USD ($) shares	Apr. 24, 2020 USD ($)	Feb. 28, 2023 employee	Dec. 31, 2022 USD ($) employee	Dec. 31, 2022 USD ($) employee	Oct. 01, 2022 employee	Jul. 02, 2022 USD ($)	Apr. 02, 2022 USD ($) shares	Apr. 03, 2021 USD ($)	Dec. 31, 2023 USD ($)	Dec. 31, 2022 USD ($) employee shares	Jan. 01, 2022 USD ($) shares	Jan. 02, 2021 USD ($) shares	Jan. 17, 2023 USD ($)	Dec. 30, 2022 USD ($)	Oct. 28, 2022 USD ($)	Sep. 30, 2022 USD ($)	Mar. 31, 2022 USD ($)
Accounting Policies [Line Items]
Revenue decrease												24.00%
Operating losses												$ 240,383,000	$ 1,100,000	$ (146,322,000)
Operating cash outflows												90,021,000	31,970,000	(232,048,000)
Cash, cash equivalents and short-term investments					$ 117,900,000	$ 117,900,000						$ 117,900,000	234,500,000
Number of employees terminated \| employee							100
Percentage of workforce eliminated							8.00%
Number of employees \| employee					1,254	1,254						1,254
Decrease in number of employees \| employee												203
Inventory					$ 285,250,000	$ 285,250,000						$ 285,250,000	333,296,000
Days in inventory (in days)						95 days						95 days
Decrease in inventory						$ 133,800,000						$ 49,399,000	(151,193,000)	(24,535,000)
Cash and cash equivalents					117,949,000	117,949,000						117,949,000	201,457,000
Short-term investments, fair value					0	0						0	33,044,000
Allowance for credit loss					4,700,000	4,700,000						4,700,000	4,600,000
Refund on tariffs paid			$ 57,000,000
Benefit from tariff refund														36,500,000
Receivable for recovery of import duties, net					5,200,000	5,200,000						5,200,000							$ 32,000,000
Cash received from tariff refund					26,800,000	26,800,000						26,800,000
Amortization expense												1,800,000	600,000
Capitalized cost					7,300,000	7,300,000						7,300,000	7,400,000
Impairment of goodwill												0	0	0
Impairment of long-lived assets													0	0
Impairment charges of investments in equity securities												3,900,000
Equity securities without readily determinable fair values					15,100,000	15,100,000						15,100,000	16,300,000
Advertising Expense												146,600,000	147,200,000	145,200,000
Valuation allowance					99,444,000	99,444,000						99,444,000	$ 13,136,000	$ 7,600,000				$ 57,500,000
Restructuring charges												5,200,000
Severance and benefit payments												3,600,000
Impairment loss					3,400,000
Impairment of right-of-use asset					2,300,000							2,300,000
Property and equipment impairment					1,100,000							$ 1,100,000
Antidilutive securities excluded from computation of earnings per share (in shares) \| shares												0.9	0.1	0.2
Forecast
Accounting Policies [Line Items]
Net cost savings											$ 42,000,000
Revolving Credit Facility \| Line of Credit
Accounting Policies [Line Items]
Amount outstanding					0	0						$ 0
Maximum amount available for borrowing under credit facility					$ 150,000,000	$ 150,000,000						150,000,000				$ 150,000,000
Current borrowing capacity																	$ 200,000,000
Products Imported After October, 12, 2021 And Sold In 2021 \| Roomba Robots
Accounting Policies [Line Items]
Tariffs paid												11,700,000
Matterport, Inc.
Accounting Policies [Line Items]
Equity securities received, restricted \| shares	1.6
Gain from equity securities													$ 30,200,000
Additional shares received (in shares) \| shares									0.2
Proceeds from short-term investments								$ (1,200,000)	$ (16,200,000)
Loss on sale of investments												$ 17,100,000
Teladoc Health, Inc.
Accounting Policies [Line Items]
Proceeds from short-term investments										$ 51,500,000
Number of shares (in shares) \| shares		0.2
Gain on sale of equity investments		$ 38,600,000
Proceeds from sale of short-term investments										60,100,000
Payments to acquire short-term investments										$ 8,600,000
Subsequent Event
Accounting Policies [Line Items]
Number of employees terminated \| employee				85
Percentage of workforce eliminated				7.00%
Subsequent Event \| Revolving Credit Facility \| Line of Credit
Accounting Policies [Line Items]
Current borrowing capacity															$ 100,000,000
Customer Concentration Risk \| Accounts Receivable \| One Customer
Accounting Policies [Line Items]
Concentration risk percentage												16.60%	14.50%
Customer Concentration Risk \| Revenue \| Amazon
Accounting Policies [Line Items]
Concentration risk percentage												22.60%	21.80%	22.70%

Industry Segment, Geographic Information and Significant Customers (Details Textual) $ in Thousands	12 Months Ended
	Dec. 31, 2022 USD ($) segment	Jan. 01, 2022 USD ($)	Jan. 02, 2021 USD ($)
Revenues from External Customers and Long-Lived Assets [Line Items]
Number of operating segments \| segment	1
Revenue	$ 1,183,383	$ 1,564,987	$ 1,430,390
Customer Concentration Risk \| Revenue \| Amazon
Revenues from External Customers and Long-Lived Assets [Line Items]
Concentration risk percentage	22.60%	21.80%	22.70%
Non-US \| Geographic Concentration Risk \| Revenue
Revenues from External Customers and Long-Lived Assets [Line Items]
Concentration risk percentage	48.00%	51.80%	47.90%
Domestic
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	$ 615,107	$ 754,173	$ 744,648
International
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	$ 568,276	$ 810,814	$ 685,742

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

Income Tax Disclosure [Abstract]

Schedule of income (loss) before provision for income taxes

(Loss) income before provision for income taxes was as follows (in thousands):


	Fiscal Year Ended
	December 31, 2022		January 1, 2022		January 2, 2021
Domestic	$	(238,685)	$	8,880	$	166,973
Foreign	(22,998)		19,404		20,942
(Loss) income before income taxes	$	(261,683)	$	28,284	$	187,915

Components of income tax expense

The components of income tax provision (benefit) were as follows (in thousands):


	Fiscal Year Ended
	December 31, 2022		January 1, 2022		January 2, 2021
Current
Federal	$	(1,738)	$	1,045	$	13,593
State	743		441		2,724
Foreign	7,118		7,019		10,451
Total current income tax provision	$	6,123	$	8,505	$	26,768
Deferred
Federal	$	18,991	$	(8,286)	$	14,695
State	10,652		(690)		2,552
Foreign	(11,154)		(1,635)		(3,168)
Total deferred income tax provision (benefit)	18,489		(10,611)		14,079
Total income tax provision (benefit)	$	24,612	$	(2,106)	$	40,847

Reconciliation of the expected tax (benefit) expense

The reconciliation of statutory federal income tax to the income tax provision (benefit) is as follows (in thousands):


	Fiscal Year Ended
	December 31, 2022		January 1, 2022		January 2, 2021
Statutory federal income tax	$	(54,953)	$	5,940	$	39,462

State taxes (net of federal benefit)	(6,314)		389		4,834
Federal and state credits	(9,473)		(7,620)		(6,702)


Excess tax expenses (benefits) from stock-based compensation	1,813		(4,160)		313

Foreign-derived intangible income	(1,364)		(3,253)		(3,360)


Executive compensation	541		1,706		718
Foreign tax rate differential	1,416		264		1,458
Change in valuation allowance	91,905		4,691		3,817
Non-deductible transaction costs	2,711		—		—
Other	(1,670)		(63)		307
	$	24,612	$	(2,106)	$	40,847

Components of net deferred tax assets

The components of net deferred tax assets were as follows (in thousands):


	December 31, 2022		January 1, 2022
Deferred tax assets:
Capitalized research and development(1)	$	48,348	$	—
Revenue reserves	23,049		22,039
Accruals and other liabilities	11,448		14,518
Operating lease liabilities	8,511		11,428
Tax credits and net operating loss carryforwards	28,240		17,326

Stock-based compensation	4,868		3,463

Other	7,032		5,476
Total deferred tax assets	131,496		74,250
Valuation allowance	(99,444)		(13,136)
Total deferred tax assets net of valuation	32,052		61,114
Deferred tax liabilities:
Intangible assets	2,597		5,469
Operating lease right-of-use assets	7,862		10,998
Unrealized gains from securities and hedging instruments	3,698		7,370
Other	2,578		2,582
Total deferred tax liabilities	16,735		26,419
Net deferred tax assets	$	15,317	$	34,695

Schedule of adjustments to uncertain tax position

The following table summarized the activity related to the Company's gross unrecognized tax benefits (in thousands):


	Fiscal Year Ended
	December 31, 2022		January 1, 2022		January 2, 2021
Balance at beginning of period	$	9,842	$	8,559	$	7,121
Increase for tax positions related to the current year	1,117		914		765

Increase for tax positions related to prior years	672		369		1,231
Decrease related to settlement with taxing authorities	(1,412)		—		—
Decrease for lapses of statute of limitations	(613)		—		(558)
Balance at end of period	$	9,606	$	9,842	$	8,559

Commitments and Contingencies (Tables)

12 Months Ended

Dec. 31, 2022

Commitments and Contingencies Disclosure [Abstract]

Activity related to the warranty accrual was as follows (in thousands):


	Fiscal Year Ended
	December 31, 2022		January 1, 2022		January 2, 2021
Balance at beginning of period	$	32,019	$	24,392	$	13,856

Provision	22,155		42,430		28,884
Warranty claims	(26,795)		(34,803)		(18,348)
Balance at end of period	$	27,379	$	32,019	$	24,392

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Jan. 01, 2022	Jan. 02, 2021
Cash flows from operating activities:
Net (loss) income	$ (286,295)	$ 30,390	$ 147,068
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities:
Depreciation and amortization	47,869	33,309	34,762
Gain (Loss) on Investments	(19,718)	30,063	43,817
Stock-based compensation	31,905	21,694	29,975
Deferred income taxes, net	18,799	(6,934)	13,837
Other	(1,003)	5,940	6,467
Changes in operating assets and liabilities — (use) source, excluding effects of acquisition
Accounts receivable	94,750	10,290	(21,893)
Inventory	49,399	(151,193)	(24,535)
Other assets	52,029	(19,868)	(15,804)
Accounts payable	(73,598)	82,289	48,699
Accrued expenses and other liabilities	(43,594)	(7,824)	57,289
Net cash (used in) provided by operating activities	(90,021)	(31,970)	232,048
Cash flows from investing activities:
Additions of property and equipment	(12,325)	(29,928)	(31,599)
Purchase of investments	(3,150)	(10,811)	(4,150)
Cash paid for business acquisition, net of cash acquired	0	(71,357)	0
Sales and maturities of investments	17,723	63,976	13,500
Net cash provided by (used in) investing activities	2,248	(48,120)	(22,249)
Cash flows from financing activities:
Proceeds from employee stock plans	4,719	6,719	5,584
Income tax withholding payment associated with restricted stock vesting	(1,775)	(5,161)	(1,845)
Stock repurchases	0	(150,000)	(25,000)
Net cash provided by (used in) financing activities	2,944	(148,442)	(21,261)
Effect of exchange rate changes on cash and cash equivalents	1,321	(2,646)	4,705
Net (decrease) increase in cash and cash equivalents	(83,508)	(231,178)	193,243
Cash and cash equivalents, at beginning of period	201,457	432,635	239,392
Cash and cash equivalents, at end of period	117,949	201,457	432,635
Supplemental disclosure of cash flow information
Cash paid for income taxes	$ 8,489	$ 20,375	$ 19,929

Income Taxes - Net Deferred Tax Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Sep. 30, 2022	Jan. 01, 2022	Jan. 02, 2021
Deferred tax assets:
Capitalized research and development	$ 48,348		$ 0
Revenue reserves	23,049		22,039
Accruals and other liabilities	11,448		14,518
Operating lease liabilities	8,511		11,428
Tax credits and net operating loss carryforwards	28,240		17,326
Stock-based compensation	4,868		3,463
Other	7,032		5,476
Total deferred tax assets	131,496		74,250
Valuation allowance	(99,444)	$ (57,500)	(13,136)	$ (7,600)
Total deferred tax assets net of valuation	32,052		61,114
Deferred tax liabilities:
Intangible assets	2,597		5,469
Operating lease right-of-use assets	7,862		10,998
Unrealized gains from securities and hedging instruments	3,698		7,370
Other	2,578		2,582
Total deferred tax liabilities	16,735		26,419
Net deferred tax assets	15,317		$ 34,695
Capitalization of R&D costs	$ 224,500

Derivative Instruments and Hedging Activities - Gain (Loss) on Derivatives (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Jan. 01, 2022	Jan. 02, 2021
Derivative Instruments, Gain (Loss) [Line Items]
Revenue	$ 1,183,383	$ 1,564,987	$ 1,430,390
Other income, net
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) recognized in income	2,951	(9,779)	(188)
Foreign currency forward contracts \| Cash flow hedge
Derivative Instruments, Gain (Loss) [Line Items]
Foreign currency forward contracts	43,735	31,363
Foreign currency forward contracts			(18,504)
Foreign currency forward contracts \| Revenue \| Cash flow hedge
Derivative Instruments, Gain (Loss) [Line Items]
Amount of gain reclassified from AOCI into earnings	$ 27,285	$ 4,493	$ 4,783

Consolidated Balance Sheets (Parenthetical) - $ / shares	Dec. 31, 2022	Jan. 01, 2022
Statement of Financial Position [Abstract]
Preferred stock, shares authorized (in shares)	5,000,000	5,000,000
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)	100,000,000	100,000,000
Common stock, shares issued (in shares)	27,423,000	27,006,000
Common stock, shares outstanding (in shares)	27,423,000	27,006,000

Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2022

Accounting Policies [Abstract]

Summary of Significant Accounting Policies


2.			Summary of Significant Accounting Policies

Basis of Presentation and Foreign Currency Translation

The accompanying consolidated financial statements include those of iRobot and its subsidiaries, after elimination of all intercompany balances and transactions. iRobot has prepared the accompanying consolidated financial statements in conformity with accounting principles generally accepted in the United States of America ("GAAP").

For the Company's subsidiaries that transact in a functional currency other than the U.S. dollar, assets and liabilities are translated into U.S. dollars at period-end foreign exchange rates. Revenues and expenses are translated into U.S. dollars at the average foreign exchange rates for the period. Translation adjustments are excluded from the determination of net income (loss) and are recorded in accumulated other comprehensive income (loss), a separate component of stockholders' equity.

The Company operates and reports using a 52-53 week fiscal year ending on the Saturday closest to December 31. Accordingly, the Company’s fiscal quarters end on the Saturday that falls closest to the last day of the third month of each quarter. As used in the Annual Report on Form 10-K, "fiscal 2022" refers to the 52-week fiscal year ending December 31, 2022, "fiscal 2021" refers to the 52-week fiscal year ended January 1, 2022, and "fiscal 2020" refers to the 53-week fiscal year ended January 2, 2021.

Liquidity

The accompanying audited consolidated financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the continuity of operations, realization of assets, and liquidation of liabilities in the normal course of business.

The Company has a long history of profitable operations, positive operating cash flows and substantial liquidity that was further strengthened during the first year of the COVID-19 pandemic as consumer demand for iRobot's products increased considerably. During fiscal 2022, the Company’s revenue declined 24% from fiscal 2021 primarily due to lower orders from retailers and distributors in the United States and EMEA largely resulting from a decline in consumer sentiment, and resultant spending, driven by high inflation, rising interest rates, rising energy costs, the potential recessionary outlook and geopolitical instability, which was exacerbated by the Russia-Ukraine war. The lower revenue has resulted in operating losses of $240.4 million and operating cash outflows of $90.0 million for the fiscal 2022. As a result, the Company's cash and cash equivalents

and short-term investments have declined from $234.5 million as of January 1, 2022 to $117.9 million as of December 31, 2022.

As of December 31, 2022, the Company has no outstanding borrowings from its $150.0 million available revolving line of credit which expires on June 30, 2023. On January 17, 2023, the Company entered into a Fourth Amendment (the "Fourth Amendment") to the Credit Agreement which reduces the amount of the facility from $150.0 million to $100.0 million and extends the maturity date of the Credit Agreement from June 30, 2023 to September 17, 2024 (see Note 8 for additional details about its Credit Agreement).

Management has considered and assessed its ability to continue as a going concern for the one year from the date that the audited consolidated financial statements are issued. Management’s assessment included the preparation of cash flow forecasts taking into account actions already implemented. Management considered additional actions within its control that it would implement, if necessary, to maintain liquidity and operations in the ordinary course. Management has already undertaken the following actions to improve profitability and operating cash flows and align the organization to the lower revenue level:

•During August 2022, the Company initiated a restructuring of its operations designed to better align its cost structure with near-term revenue and cash flow generation, advance key strategic priorities, increase efficiencies and improve its profitability going forward. As part of this August 2022 restructuring, the Company reduced its workforce and terminated approximately 100 employees, which represents 8% of its workforce and eliminated a number of open positions entering the third quarter of 2022. As a follow-on action to the company’s August 2022 restructuring of operations and in anticipation that market conditions will remain challenging into 2023, the Company initiated a new restructuring program at the beginning of February 2023 and reduced its workforce by approximately 85 employees or 7%. In addition to the reduction in force, iRobot’s 2023 operating plan incorporates scaled back working media and other demand-generation activities, limited investment in non-robotic product categories and minimal new hiring plans in 2023. At December 31, 2022, the Company had 1,254 employees. Including the aforementioned reduction in force of 85 employees, the Company has had a total reduction of 203 employees since the end of fiscal 2021. In addition to the reduction of its headcount, the Company signed a sublease agreement for a portion of its headquarter during the fourth quarter of fiscal 2022 and plans to further consolidate its global facilities footprint during fiscal 2023. iRobot currently anticipates that its August 2022 and February 2023 restructuring actions will deliver net cost savings of approximately $42.0 million in 2023, including actions associated with the facilities consolidation.

•Inventory has consumed a significant amount of cash and the Company continues to manage its inventory level carefully. As of December 31, 2022, the inventory balance was $285.3 million, or 95 days, a reduction of $133.8 million, or 95 days from the third quarter of fiscal 2022. In 2023, the Company will continue to manage its inventory to a level that aligns with current run rates of the business. As such, iRobot has temporarily reduced robot production since late January 2023 at its contract manufacturing partners in China and Malaysia with plans to increase production in April 2023.

While management estimates such actions will be sufficient to allow it to maintain liquidity and its operations in the ordinary course for at least 12 months from the issuance of these financial statements, there can be no assurance the Company will generate sufficient future cash flows from operations due to potential factors, including, but not limited to, further inflation, the continued rising interest rates, ongoing recessionary conditions or continued reduced demand for the Company’s products. If the Company is not successful in increasing demand for its products, or if macroeconomic conditions further constrain consumer demand, the Company may continue to experience adverse impacts to revenue and profitability. Additional actions within the Company’s control to maintain its liquidity and operations include optimizing its production volumes with contract manufacturers by reducing inventory supply forecast for cancellable purchase orders, further reducing discretionary spending in all areas of the business, decreasing working media spending and realigning resources through ongoing attrition without rehiring activity. Should the Company require further funding in the future, there can be no assurance that it will be able to obtain additional debt financing on terms acceptable to the Company, or at all.

The consolidated financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classification of liabilities that may result from the outcome of these uncertainties.

Use of Estimates

The preparation of these financial statements in conformity with GAAP requires the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities and revenue and expenses. These estimates and judgments, include but are not limited to, revenue recognition, including performance obligations, standalone selling price, variable consideration and other obligations such as sales incentives and product returns; allowance for credit losses; impairment of goodwill and long-lived assets; valuation of non-marketable equity investments; product warranties; inventory excess and obsolescence; loss contingencies; accounting for stock-based compensation including valuation and assessments of performance-based awards; accounting for income taxes and related valuation allowances. The Company bases its estimates and assumptions on historical experience, market participant fair value considerations, projected future cash flows, current economic conditions, and various other factors that the Company believes are reasonable under the circumstances. Actual results and outcomes may differ from the Company’s estimates and assumptions.

Cash and Cash Equivalents

The Company considers all highly liquid investments with maturity of three months or less at the time of purchase to be cash and cash equivalents. The Company invests its excess cash primarily in money market funds or demand deposit accounts of major financial institutions. Accordingly, its cash and cash equivalents are subject to minimal credit and market risk. At December 31, 2022 and January 1, 2022, cash and cash equivalents totaled $117.9 million and $201.5 million, respectively. These cash and cash equivalents are carried at cost, which approximates fair value.

Short Term Investments

The Company's short term investments include marketable equity securities with readily determinable fair value. The fair value of investments is determined based on quoted market prices at the reporting date for those instruments. The change in fair value of the Company's investments in marketable equity securities is recognized as unrealized gains and losses in other (expense) income, net at the end of each reporting period.

Investments consisted of the following (in thousands):


	December 31, 2022				January 1, 2022
	Cost		Fair Market Value		Cost		Fair Market Value
Marketable equity securities	$	—	$	—	$	23,286	$	33,044

Total short term investments	$	—	$	—	$	23,286	$	33,044

On July 22, 2021, Matterport, Inc. ("Matterport"), of which the Company held non-marketable equity securities, completed a merger with a special purpose acquisition company and began trading on Nasdaq under the symbol "MTTR." Prior to the merger, the Company accounted for the shares in Matterport as equity securities without readily determinable fair value. Upon consummation of the merger, the Company received 1.6 million shares of MTTR. The post merger Matterport shares received were subject to time based contractual sales restrictions which expired in January 2022. These shares were accounted for as marketable equity securities and measured at fair value with unrealized gains and losses recognized in other (expense) income, net at the end of each reporting period. During fiscal 2021, the Company recorded gains of $30.2 million associated with the Matterport investment.

During the first quarter of 2022, the Company sold these Matterport shares and received net proceeds of $16.2 million. In addition, the Company received an additional 0.2 million shares of Matterport during the first quarter of 2022 upon achievement of conditions set forth in the merger agreement, and sold these shares during the second quarter of 2022 for net proceeds of $1.2 million. During fiscal 2022, the Company recognized losses of $17.1 million in other (expense) income, net related to the sales of Matterport shares. As of December 31, 2022, the Company did not have any short term investments.

On July 1, 2020, Teladoc Health, Inc. ("Teladoc") closed on its previously announced acquisition of InTouch Health, of which the Company held non-marketable equity securities. In exchange for its shares of InTouch Health, the Company received 0.2 million shares of Teladoc and recorded a gain of $38.6 million to other income, net during fiscal 2020. The Teladoc shares received were subject to time based contractual sales restrictions which expired in January 2021. These shares were accounted for as marketable equity securities and measured at fair value with unrealized gains and losses recognized in other (expense) income, net at the end of each reporting period. As a result, the Company entered into an economic hedge in July 2020 to reduce the Company's exposure to stock price fluctuations during the restricted period. During the first quarter of 2021, the Company received net proceeds of $51.5 million related to the sale of Teladoc shares with gross proceeds of $60.1 million, net of settlement payment of $8.6 million for the related economic hedge.

Allowance for Credit Losses

The Company maintains an allowance for credit losses for accounts receivable using an expected loss model that requires the use of forward-looking information to calculate credit loss estimate. The expected loss methodology is developed through consideration of factors including, but not limited to, historical collection experience, current customer credit ratings, customer concentrations, current and future economic and market conditions and age of the receivable. The Company reviews and adjusts the allowance for credit losses on a quarterly basis. Accounts receivable balances are written off against the allowance when the Company determines that the balances are not recoverable. As of December 31, 2022 and January 1, 2022, the Company had an allowance for credit losses of $4.7 million and $4.6 million, respectively. Bad debt expense recorded in general and administrative expenses in the consolidated statements of operations during fiscal 2022 and 2021 were immaterial.

Accounts receivable allowances

Allowance for product returns: The Company records an allowance for product returns based on specific terms and conditions included in the customer agreements or based on historical experience and the Company's expectation of future returns.

Allowance for other credits and incentives: The Company records an allowance related to customer incentives such as discounts, promotions, price protection and other support programs. The allowance is based on specific terms and conditions included in customer agreements, specific programs and sell-through expectations, historical experience and other factors.

Activity related to accounts receivable allowances was as follows (in thousands):


	Fiscal Year Ended
	December 31, 2022		January 1, 2022		January 2, 2021
Allowance for product returns
Balance at beginning of period	$	56,839	$	64,343	$	55,191
Provision	41,969		61,014		68,028
Deduction	(49,657)		(68,518)		(58,876)

Balance at end of period	$	49,151	$	56,839	$	64,343

Allowance for other credits and incentives
Balance at beginning of period	$	101,606	$	142,173	$	134,046
Provision	269,187		267,821		285,139
Deduction	(264,274)		(308,388)		(277,012)

Balance at end of period	$	106,519	$	101,606	$	142,173

Inventory

Inventory primarily consists of finished goods and, to a lesser extent, components, which are purchased from contract manufacturers. Inventory is stated at the lower of cost or net realizable value with cost being determined using the standard cost method, which approximates actual costs determined on the first-in, first-out basis. Inventory costs primarily consist of materials, inbound freight, import duties, tariffs, and other handling fees. The Company writes down its inventory for estimated obsolescence or excess inventory based upon assumptions around market conditions and estimates of future demand. Net realizable value is the estimated selling price less estimated costs of completion, disposal and transportation. Adjustments to reduce inventory to net realizable value are recognized in cost of revenue and have not been significant for the periods presented.

Tariff Refunds

In April 2020, the Company was granted a temporary exclusion from Section 301 List 3 tariffs by the United States Trade Representative ("USTR"). This exclusion, as extended in August 2020, eliminated the 25% tariff on Roomba products imported from China until December 31, 2020 and entitled the Company to a refund of approximately $57.0 million in tariffs paid since the date the Section 301 List 3 tariffs were imposed. The Company recognized a benefit of $36.5 million from tariff refund during fiscal 2020.

In March 2022, the Section 301 List 3 Tariff Exclusion was reinstated, which eliminated the 25% tariff on Roomba products imported from China beginning on October 12, 2021 and continuing until December 31, 2022. This exclusion, which was subsequently extended until September 30, 2023 entitled the Company to a refund of approximately $32.0 million in tariffs paid. During fiscal 2022, the Company recognized a benefit of $11.7 million from tariff refunds as reduction to cost of product revenue related to tariffs paid on products imported after October 12, 2021 and sold during fiscal 2021. As of December 31, 2022, the Company had received $26.8 million of the tariff refund and the outstanding refund receivable of $5.2 million is recorded in other current assets on the consolidated balance sheet.

Property and Equipment

Property and equipment are recorded at cost and depreciated using the straight-line method over the estimated useful lives as follows:


			Estimated Useful Life
Computer and equipment			2-5 years
Furniture and fixtures			5
Machinery and tooling			2-5

Business applications software			3-7
Leasehold improvements			Lesser of economic benefit period or term of lease

Expenditures for additions and improvements that extend the useful lives of property and equipment are capitalized. Repairs, maintenance costs and losses associated with disposals or retirements are charged to expense as incurred.

Capitalization of Cloud Computing Arrangements

The Company incurs costs to implement cloud computing arrangements that are hosted by third-party vendors. Beginning in fiscal 2020, and continuing through fiscal 2022, the Company began investing and implementing various new direct-to-consumer and marketing technology and tools. Implementation costs incurred during the application development stage are capitalized until the software is ready for its intended use. The costs are then amortized on a straight-line basis over the term of the associated hosting arrangement and are recognized as an operating expense within the consolidated statements of operations. During fiscal 2022 and 2021, the Company recorded amortization expenses of $1.8 million and $0.6 million, respectively, for these implementation costs. Capitalized costs were $7.3 million and $7.4 million as of December 31, 2022 and January 1, 2022, respectively, and are reported as a component of other assets on the Company's consolidated balance sheets.

Business Combinations

The Company allocates the purchase price of each acquisition to the tangible and intangible assets acquired and liabilities assumed based on their estimated fair values as of the date of acquisition. Goodwill is measured as the excess of the purchase price over the value of net identified assets acquired. While the Company uses its best estimates and assumptions to accurately value assets acquired, liabilities assumed, and contingent consideration, where applicable, at the acquisition date, its estimates and assumptions are inherently uncertain and subject to refinement. As a result, during the measurement period, which is generally one year from the acquisition date, any adjustment to the assets acquired and liabilities assumed is recorded against goodwill in the period in which the amount is determined. Any adjustment identified subsequent to the measurement period or the Company's final determination of estimated fair value, whichever comes first, is included in operating results in the period in which the adjustment is determined.

Goodwill and Other Long-Lived Assets

Goodwill represents the excess of the purchase price in a business combination over the fair value of the net tangible and intangible assets acquired. Goodwill is not amortized but rather is assessed for impairment at the reporting unit level annually during the fourth quarter of each fiscal year or more frequently if the Company believes indicators of impairment exist. Goodwill impairment, if any, is determined by comparing the reporting unit's fair value to its carrying value. An impairment loss is recognized in an amount equal to the excess of the reporting unit's carrying value over its fair value, up to the amount of goodwill allocated to the reporting unit.

Other long-lived assets primarily consist of property and equipment, operating lease right-of-use assets and intangible assets. The Company periodically evaluates the recoverability of other long-lived assets whenever events and changes in circumstances, such as reductions in demand or significant economic slowdowns in the industry, indicate that the carrying amount of an asset may not be fully recoverable. When indicators of impairment are present, the carrying values of the asset group are evaluated in relation to the future undiscounted cash flows of the underlying business. The net book value of the underlying asset is adjusted to fair value if the sum of the expected discounted cash flows is less than book value. Fair values

are based on estimates of market prices and assumptions concerning the amount and timing of estimated future cash flows and assumed discount rates, reflecting varying degrees of perceived risk.

The impairment assessment of goodwill and other long-lived assets involves significant estimates and assumptions, which may be unpredictable and inherently uncertain. These estimates and assumptions include identification of reporting units and asset groups, long-term growth rates, profitability, estimated useful lives, comparable market multiples, and discount rates. Any changes in these assumptions could impact the result of the impairment assessment. There was no impairment of goodwill during fiscal 2022, 2021 and 2020. The Company performed its annual goodwill impairment analysis in fiscal 2022 using an entity valuation which was derived based on the attribution of the agreed-upon purchase price for the Merger. During fiscal 2022, the Company recognized impairment charges on intangible assets associated with the acquisition of Aeris Cleantec AG (see Note 6) and incurred impairment charges related to the Facility restructuring plan discussed within Restructuring Charges in Note 2. There was no impairment of long-lived assets during fiscal 2021 and 2020.

Strategic Investments

The Company holds non-marketable equity securities as part of its strategic investments portfolio. The Company classifies the majority of these securities as equity securities without readily determinable fair values and measures these investments at cost, less any impairment, adjusted for observable price changes in orderly transactions for identical or similar investments of the same issuer. These investments are valued using significant unobservable inputs or data in an inactive market and the valuation requires the Company's judgment due to the absence of market prices and inherent lack of liquidity. The Company monitors non-marketable equity investments for impairment indicators, such as deterioration in the investee's financial condition and business forecasts and lower valuations in recent or proposed financings. The estimated fair value is based on quantitative and qualitative factors including, but not limited to, subsequent financing activities by the investee and projected discounted cash flows. The Company performs an assessment on a quarterly basis to assess whether triggering events for impairment exist and to identify any observable price changes. During fiscal 2022, the Company recorded impairment charges of $3.9 million related to investments in non-marketable equity securities. Changes in fair value of non-marketable equity investments are recorded in other (expense) income, net on the consolidated statements of operations. At December 31, 2022 and January 1, 2022, the Company's equity securities without readily determinable fair values totaled $15.1 million and $16.3 million, respectively, and are included in other assets on the consolidated balance sheets.

Warranty

The Company generally provides a one-year warranty on all of its products except in countries where a two-year warranty is required against defects in materials and workmanship. The Company's standard warranty provides for repair or replacement of the associated products during the warranty period. The Company records estimated warranty costs in the period the related revenue is recognized based on historical experience, expectations of future costs to repair or replace including freight and knowledge of specific product failures outside the Company's historical experience. Actual results could differ from these estimates, which could cause increases or decreases to the warranty reserves in future periods.

Financial Instruments and Hedging Activities

The Company utilizes derivative instruments to partially offset its financial risks to foreign exchange risk. The Company does not engage in speculative hedging activity. In order to account for a derivative instrument as a cash flow hedge, specific criteria must be met, including: (i) ensuring at the inception of the hedge that formal documentation exists for both the hedging relationship and the entity’s risk management objective and strategy for undertaking the hedge and (ii) at the inception of the hedge and on an ongoing basis, the hedging relationship is expected to be highly effective in achieving offsetting changes in fair value attributed to the hedged risk during the period that the hedge is designated. Cash flow hedge amounts that are included in the assessment of hedge effectiveness are deferred in accumulated other comprehensive income (loss) until the hedged item is recognized in earnings. Deferred gains and losses associated with cash flow hedges are recognized as a component of net sales in the same period as the related revenue is recognized. Absent meeting these criteria, changes in fair value are recognized in other (expense) income, net, in the consolidated statements of operations. The Company may also enter into non-designated foreign currency contracts to offset a portion of the foreign currency exchange gains and losses generated by the remeasurement of certain assets and liabilities denominated in non-functional currencies. Changes in fair value are recognized in other (expense) income, net, in the consolidated statements of operations.

Fair Value Measurements

The Company accounts for certain assets and liabilities at fair value. The fair value is established based on a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. These tiers include:

•Level 1 - observable inputs such as quoted prices for identical instruments in active markets;

•Level 2 - inputs other than quoted prices in active markets that are either directly or indirectly observable; and

•Level 3 - unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions.

Stock-Based Compensation

The Company accounts for stock-based compensation through recognition of the fair value of the stock-based compensation as a charge against earnings. The Company issues equity incentive awards in the form of restricted stock units ("RSUs") and performance-based restricted stock units ("PSUs"). The fair value for RSUs is based on the closing share price of the Company's common stock on the date of grant. PSUs are aligned to specified performance targets such as financial metrics or the relative returns of the Company's common stock ("TSRs"). The fair value of PSUs aligned to specified performance metrics is determined based on the number of units expected to vest upon achievement of the performance conditions. The fair value for PSUs aligned to the TSR is based on a Monte Carlo simulation model. The Company recognizes stock-based compensation as an expense on a straight-line basis, over the requisite service period. The Company accounts for forfeitures as they occur, rather than applying an estimated forfeiture rate.

Research and Development

Costs incurred in the research and development of the Company’s products are expensed as incurred.

Advertising Expense

Advertising costs are expensed as incurred and included in selling and marketing expenses. During the years ended December 31, 2022, January 1, 2022 and January 2, 2021 advertising expense totaled $146.6 million, $147.2 million and $145.2 million, respectively.

Income Taxes

The Company accounts for its income taxes using the asset and liability method, under which the Company recognizes the amount of taxes payable or refundable for the current year. Deferred tax assets and liabilities are determined based on the difference between the financial statement and tax basis using enacted tax rates in effect in the years in which those temporary differences are expected to be recovered or settled in each jurisdiction. A valuation allowance is provided if, based upon the weight of available evidence, it is more likely than not that the related benefits will not be realized. In assessing the recoverability of its deferred tax assets, the Company evaluates all available evidence, both positive and negative, to assess whether it is more likely than not that sufficient future taxable income will be generated to permit use of existing deferred tax assets in each taxpaying jurisdiction. For any deferred tax asset that exceeds the amount for which it is more likely than not that the Company will realize a benefit, the Company establishes a valuation allowance. During the third quarter of fiscal 2022, the Company concluded that, based on its evaluation of available positive and negative evidence, it is no longer more likely than not that its net U.S. federal and state deferred tax assets are recoverable. In assessing the realizability of its U.S. deferred tax assets, the key factors used to determine positive and negative evidence included its recent losses resulting in cumulative loss for the three-year period ended December 31, 2022, current macroeconomic trends, and expected future reversals of existing taxable temporary differences. Such objective negative evidence limits the Company's ability to consider other subjective evidence, such as its projections for future growth. Given the weight of objectively verifiable historical losses from the Company's U.S. operations, the Company recorded a valuation allowance of $57.5 million in the third quarter of fiscal 2022 as a reserve against our net U.S. federal and state deferred tax assets. The Company expects to continue to record a valuation allowance against these assets until sufficient positive evidence exists to support its reversal. As of December 31, 2022, January 1, 2022 and January 2, 2021, the Company had a valuation allowance of $99.4 million, $13.1 million and $7.6 million, respectively, for certain deferred tax assets for which the Company believes do not meet the "more likely than not" criteria for recognition.

The Company recognizes the tax benefit from an uncertain tax position only if it is more likely than not the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized from such positions are then measured based on the largest benefit that has a greater than 50% likelihood of being realized upon settlement. The Company recognizes interest and penalties, if any, related to unrecognized tax benefits in the income tax provision.

Concentration of Credit Risk and Significant Customers

Financial instruments which potentially expose the Company to concentrations of credit risk consist of accounts receivable and cash and cash equivalents. Management believes its credit policies are prudent and reflect normal industry terms and business risk. At December 31, 2022 and January 1, 2022, one customer accounted for 16.6% and 14.5% , respectively, of the Company's accounts receivable balance. For the fiscal years ended December 31, 2022, January 1, 2022, and January 2, 2021, there was one customer that accounted for 10% or more of total revenue, representing 22.6%, 21.8% and 22.7%, of the Company's total revenue, respectively.

The Company maintains its cash in bank deposit accounts and money market funds at high quality financial institutions. The individual balances, at times, may exceed federally insured limits. These deposits may be redeemed upon demand, and management believes that the financial institutions that hold the Company’s cash and cash equivalents are financially sound and, accordingly, minimal credit risk exists with respect to cash and cash equivalents.

Restructuring Charges

During August 2022, the Company initiated a restructuring of its operations designed to better align its cost structure with near-term revenue and cash flow generation ("August 2022 restructuring"). The Company recorded restructuring charges of $5.2 million for employee severance and benefit costs related to the termination of approximately 100 employees, and made severance and benefit payments of approximately $3.6 million resulting from the restructuring during fiscal 2022. These restructuring charges are recorded in the consolidated statement of operations.

In October 2022, the Company approved a plan to market portions of its headquarters with the intent to reduce its global office footprint ("Facility restructuring"). During December 2022, the Company executed an agreement to sublease a portion of the space. As a result of the execution of the sublease agreement, the subleased space was considered as one asset group and the Company determined that indicators of impairment existed related to the right-of-use asset and property and equipment associated with the subleased space. Accordingly, the Company conducted an impairment test to assess whether the fair value of the asset group was lower than its carrying value. The results of the impairment test indicated that the fair value of the asset group was lower than its carrying value. The Company determined the fair value of the asset group using a discounted cash flow method. The assumptions used in the discounted cash flow analysis included projected sublease income over the sublease term and a discount rate based on the weighted-average cost of capital. Based on the results of the Company’s assessment, the Company recognized an impairment loss of $3.4 million, of which $2.3 million was allocated to the right-of-use asset and $1.1 million was allocated to property and equipment. This impairment loss is recorded under general and administrative expenses in the consolidated statement of operations for the fiscal year ended December 31, 2022.

Net (loss) income per share:

Basic (loss) income per share is calculated using the Company's weighted-average outstanding common shares. Diluted (loss) income per share is calculated using the Company's weighted-average outstanding common shares including the dilutive effect of stock awards as determined under the treasury stock method.

The following table presents the calculation of both basic and diluted net (loss) income per share (in thousands, except per share amounts):


	Fiscal Year Ended
	December 31, 2022		January 1, 2022		January 2, 2021
Net (loss) income	$	(286,295)	$	30,390	$	147,068
Weighted-average shares outstanding	27,214		27,687		28,101
Dilutive effect of employee stock plans	—		475		517
Diluted weighted-average shares outstanding	27,214		28,162		28,618
Basic (loss) income per share	$	(10.52)	$	1.10	$	5.23
Diluted (loss) income per share	$	(10.52)	$	1.08	$	5.14

Employee stock awards representing approximately 0.9 million, 0.1 million and 0.2 million shares of common stock for the fiscal years ended December 31, 2022, January 1, 2022 and January 2, 2021, respectively, were excluded from the computation of diluted earnings per share as their effect would have been antidilutive.

Recently Issued Accounting StandardsFrom time to time, new accounting pronouncements are issued by FASB that are adopted by the Company as of the specified effective date. Unless otherwise discussed, the Company believes that recently issued standards, which are not yet effective, will not have a material impact on the Company’s consolidated financial statements upon adoption.

Employee Benefits (Notes)

12 Months Ended

Dec. 31, 2022

Retirement Benefits [Abstract]

Employee Benefits


14.			Employee Benefits

The Company sponsors a retirement plan under Section 401(k) of the Internal Revenue Code (the "Retirement Plan"). Eligible US employees may make tax-deferred contributions, and the Company, at its sole discretion, and subject to the limits prescribed by the IRS, may make either a nonelective contribution on behalf of all eligible employees or a matching contribution on behalf of all plan participants.

The Company elected to make a matching contribution of approximately $3.9 million, $3.8 million and $3.0 million for the plan years ended December 31, 2022, January 1, 2022 and January 2, 2021, respectively. The employer contribution represents a matching contribution at a rate of 50% of each employee’s first six percent contribution. Accordingly, each employee participating is entitled up to a maximum of three percent of his or her eligible annual payroll.

- Definition

The entire disclosure for retirement benefits.

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+ Details

Goodwill and other intangible assets - Goodwill (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Jan. 01, 2022	Jan. 02, 2021
Goodwill [Roll Forward]
Goodwill beginning balance	$ 173,292	$ 125,872
Acquisition		52,662
Purchase accounting adjustments	(583)
Effect of foreign currency translation	(4,985)	(5,242)
Goodwill ending balance	167,724	173,292	$ 125,872
Finite-lived Intangible Assets [Roll Forward]
Intangible assets beginning balance	28,410	9,902
Acquisition		21,000
Purchase accounting adjustments	0
Amortization	(15,361)	(2,253)	(2,900)
Effect of foreign currency translation	(1,789)	(239)
Intangible assets ending balance	$ 11,260	$ 28,410	$ 9,902

Income Taxes - Components of Income Tax Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Jan. 01, 2022	Jan. 02, 2021
Current
Federal	$ (1,738)	$ 1,045	$ 13,593
State	743	441	2,724
Foreign	7,118	7,019	10,451
Total current income tax provision	6,123	8,505	26,768
Deferred
Federal	18,991	(8,286)	14,695
State	10,652	(690)	2,552
Foreign	(11,154)	(1,635)	(3,168)
Total deferred income tax provision (benefit)	18,489	(10,611)	14,079
Total income tax provision (benefit)	$ 24,612	$ (2,106)	$ 40,847

Maturity of Operating Lease Liability (Details) (Details) $ in Thousands	Dec. 31, 2022 USD ($)
Leases [Abstract]
2023	$ 7,265

Cover Page - USD ($) $ in Billions	12 Months Ended
Cover Page - USD ($) $ in Billions	Dec. 31, 2022	Jan. 27, 2023
Cover [Abstract]
Document Type	10-K
Document Annual Report	true
Document Period End Date	Dec. 31, 2022
Current Fiscal Year End Date	--12-31
Document Transition Report	false
Entity File Number	001-36414
Entity Registrant Name	iROBOT CORPORATION
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	77-0259335
Entity Address, Address Line One	8 Crosby Drive
Entity Address, City or Town	Bedford
Entity Address, State or Province	MA
Entity Address, Postal Zip Code	01730
City Area Code	781
Local Phone Number	430-3000
Title of 12(b) Security	Common Stock, $0.01 par value
Trading Symbol	IRBT
Security Exchange Name	NASDAQ
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
ICFR Auditor Attestation Flag	true
Entity Shell Company	false
Entity Public Float	$ 1.0
Entity Common Stock, Shares Outstanding		27,423,694
Documents Incorporated by Reference	The registrant intends to file a definitive Proxy Statement pursuant to Regulation 14A within 120 days of the end of the fiscal year ended December 31, 2022. Portions of such Proxy Statement are incorporated by reference into Part III of this Form 10-K.
Entity Central Index Key	0001159167
Amendment Flag	false
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	FY

Working Capital Facilities

12 Months Ended

Dec. 31, 2022

Debt Disclosure [Abstract]

Revolving Line of Credit


8.			Working Capital Facility

Credit Facility

As of December 31, 2022, we had a $150.0 million secured revolving line of credit which expires in June 2023, and no outstanding borrowings under our revolving credit facility.

The credit facility contains customary terms and conditions for credit facilities of this type, including restrictions on our ability to incur or guarantee additional indebtedness, create liens, enter into transactions with affiliates, make loans or investments, sell assets, pay dividends or make distributions on, or repurchase, our stock, and consolidate or merge with other entities.

The credit facility contains customary events of default, including for payment defaults, breaches of representations, breaches of affirmative or negative covenants, cross defaults to other material indebtedness, bankruptcy and failure to discharge certain judgments. If a default occurs and is not cured within any applicable cure period or is not waived, our obligations under the credit facility may be accelerated.

On May 4, 2022, we entered into a Second Amendment (the "Second Amendment") to the Amended and Restated Credit Agreement (as amended, the "Credit Agreement") with Bank of America N.A. (the "Lender") with an effective date of March 31, 2022. The Second Amendment waived the quarterly tested leverage and interest coverage covenants in the Credit Agreement for the first, second and third quarters of 2022. The interest coverage ratio calculation for the fourth quarter of 2022 was changed to a trailing nine months. Additionally, a new liquidity covenant was added for the remainder of 2022. The Second Amendment also increased the borrowing rate under the Credit Agreement for 2022 to LIBOR plus 1.5%.

On October 28, 2022, we entered into a Third Amendment to the Credit Agreement (the "Third Amendment"). The Third Amendment temporarily increased the commitments under the facility to $200.0 million for the time period from October 28, 2022 to December 29, 2022. On December 30, 2022, the commitment was reduced by $50.0 million and returned to the previous $150.0 million. In addition, the Third Amendment replaced the quarterly tested leverage and interest coverage covenants with a new minimum cash requirement of $25.0 million to be tested on October 31, 2022 and November 30, 2022. The Third Amendment also requires that the borrowing under the Credit Agreement must be below $75.0 million on December 30, 2022 and for ten consecutive days during the first quarter in 2023. The Third Amendment changed the borrowing rate under the Credit Agreement to SOFR plus 1.5% plus a credit spread adjustment of 0.1%. In connection with the Third Amendment, the Company entered into a security and pledge agreement granting the Lender a security interest in substantially all of its U.S. assets.

On January 17, 2023, the Company entered into a Fourth Amendment (the "Fourth Amendment") to the Credit Agreement which reduced the amount of the facility from $150.0 million to $100.0 million and increased the interest rate of (1) Term

SOFR Loans to 4.50%, (2) Base Rate Loans to 3.50%, and (3) unused Commitments to 3.50%. In addition, the Fourth Amendment established a borrowing base for the revolving facility equal to the total of 80% of eligible receivables, 50% of eligible inventory, and upon the satisfaction of certain conditions, up to 30% of eligible in-transit inventory, all subject to any applicable reserves. Additionally, the Fourth Amendment required the Company to maintain $25.0 million of cash in the U.S. at all times, which is tested monthly and replaced the requirement that the borrowing under the Credit Agreement be under $75.0 million (1) on December 30, 2022 and (2) for ten consecutive days during the first quarter in 2023, and replaced it with a requirement that the borrowing under the Credit Agreement be $25.0 million or less (1) on December 29, 2023 and (2) for thirty consecutive days between January 17, 2023 and September 17, 2024. The Fourth Amendment also extended the maturity date of the Credit Agreement from June 30, 2023 to September 17, 2024, and continues to be secured by substantially all of its U.S. assets.

As of December 31, 2022, we were in compliance with covenants under the Credit Agreement.

Lines of Credit

The Company has a secured letter of credit facility with Bank of America, N.A., available to fund letters of credit up to an aggregate outstanding amount of $5.0 million. As of December 31, 2022, the Company had letters of credit outstanding of $0.4 million under the letter of credit facility and other lines of credit with Bank of America, N.A.

The Company has an unsecured guarantee line of credit with Mizuho, Bank Ltd., available to fund import tax payments up to an aggregate outstanding amount of 250.0 million Japanese Yen. As of December 31, 2022, the Company had no outstanding balance under the guarantee line of credit.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

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+ Details

Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2022

Accounting Policies [Abstract]

Basis of Presentation

Basis of Presentation and Foreign Currency Translation

Fiscal Year-End

Use of Estimates

Cash and Cash Equivalents

Short Term Investments

Investments consisted of the following (in thousands):


	December 31, 2022				January 1, 2022
	Cost		Fair Market Value		Cost		Fair Market Value
Marketable equity securities	$	—	$	—	$	23,286	$	33,044

Total short term investments	$	—	$	—	$	23,286	$	33,044

Credit Losses

Allowance for Credit LossesThe Company maintains an allowance for credit losses for accounts receivable using an expected loss model that requires the use of forward-looking information to calculate credit loss estimate. The expected loss methodology is developed through consideration of factors including, but not limited to, historical collection experience, current customer credit ratings, customer concentrations, current and future economic and market conditions and age of the receivable. The Company reviews and adjusts the allowance for credit losses on a quarterly basis. Accounts receivable balances are written off against the allowance when the Company determines that the balances are not recoverable.

Accounts receivable allowances

Inventory

Warranty

Property and Equipment

Property and equipment are recorded at cost and depreciated using the straight-line method over the estimated useful lives as follows:


			Estimated Useful Life
Computer and equipment			2-5 years
Furniture and fixtures			5
Machinery and tooling			2-5

Business applications software			3-7
Leasehold improvements			Lesser of economic benefit period or term of lease

Business Combinations

Goodwill and Other Long-Lived Assets

are based on estimates of market prices and assumptions concerning the amount and timing of estimated future cash flows and assumed discount rates, reflecting varying degrees of perceived risk.

Other Assets

Strategic Investments

Financial Instruments and Hedging Activities

Fair Value Measurements

•Level 1 - observable inputs such as quoted prices for identical instruments in active markets;

•Level 2 - inputs other than quoted prices in active markets that are either directly or indirectly observable; and

•Level 3 - unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions.

Stock-Based Compensation

Research and Development

Costs incurred in the research and development of the Company’s products are expensed as incurred.

Advertising Expense

Advertising ExpenseAdvertising costs are expensed as incurred and included in selling and marketing expenses.

Income Taxes

Income TaxesThe Company accounts for its income taxes using the asset and liability method, under which the Company recognizes the amount of taxes payable or refundable for the current year. Deferred tax assets and liabilities are determined based on the difference between the financial statement and tax basis using enacted tax rates in effect in the years in which those temporary differences are expected to be recovered or settled in each jurisdiction. A valuation allowance is provided if, based upon the weight of available evidence, it is more likely than not that the related benefits will not be realized. In assessing the recoverability of its deferred tax assets, the Company evaluates all available evidence, both positive and negative, to assess whether it is more likely than not that sufficient future taxable income will be generated to permit use of existing deferred tax assets in each taxpaying jurisdiction. For any deferred tax asset that exceeds the amount for which it is more likely than not that the Company will realize a benefit, the Company establishes a valuation allowance. During the third quarter of fiscal 2022, the Company concluded that, based on its evaluation of available positive and negative evidence, it is no longer more likely than not that its net U.S. federal and state deferred tax assets are recoverable. In assessing the realizability of its U.S. deferred tax assets, the key factors used to determine positive and negative evidence included its recent losses resulting in cumulative loss for the three-year period ended December 31, 2022, current macroeconomic trends, and expected future reversals of existing taxable temporary differences. Such objective negative evidence limits the Company's ability to consider other subjective evidence, such as its projections for future growth. Given the weight of objectively verifiable historical losses from the Company's U.S. operations, the Company recorded a valuation allowance of $57.5 million in the third quarter of fiscal 2022 as a reserve against our net U.S. federal and state deferred tax assets. The Company expects to continue to record a valuation allowance against these assets until sufficient positive evidence exists to support its reversal.

Concentration of Credit Risk and Significant Customers

Restructuring Charges

Net Income Per Share

Net (loss) income per share:Basic (loss) income per share is calculated using the Company's weighted-average outstanding common shares. Diluted (loss) income per share is calculated using the Company's weighted-average outstanding common shares including the dilutive effect of stock awards as determined under the treasury stock method.

Recent Accounting Pronouncements

Revenue Recognition

For contracts with a duration of greater than one year, the transaction price allocated to performance obligations that are unsatisfied as of December 31, 2022 and January 1, 2022 was $23.2 million and $20.9 million, respectively.The Company’s products generally carry a one-year or two-year limited warranty that promises customers that delivered products are as specified. The Company does not consider these assurance-type warranties as a separate performance obligation and therefore, the Company accounts for such warranties under ASC 460, "Guarantees." For contracts with the right to upgrade to a new product after a specified period of time, the Company accounts for this trade-in right as a guarantee obligation under ASC 460. The total transaction price is reduced by the full amount of the trade-in right's fair value and the remaining transaction price is allocated between the performance obligations within the contract. The Company provides limited rights of returns for direct-to-consumer sales generated through its online stores and certain resellers and distributors. The Company records an allowance for product returns based on specific terms and conditions included in the customer agreements or based on historical experience and the Company's expectation of future returns. In addition, the Company may provide other credits or incentives which are accounted for as variable consideration when estimating the amount of revenue to recognize. Where appropriate, these estimates take into consideration relevant factors such as the Company’s historical experience, current contractual requirements, specific known market events and forecasted inventory level in the channels. Overall, these reserves reflect the Company’s best estimates, and the actual amounts of consideration ultimately received may differ from the Company’s estimates. Returns and credits are estimated at the time of sale and updated at the end of each reporting period as additional information becomes available.

Derivative Instruments and Hedging Activities - Fair Value of Derivatives (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Oct. 01, 2022	Dec. 31, 2022	Jan. 01, 2022
Derivatives, Fair Value [Line Items]
Proceeds from derivative instruments	$ 51,700
Derivative, Fair Value, Net [Abstract]
Derivative liability		$ 7,310	$ 2,600
Derivatives not designated as hedging instruments:
Derivatives, Fair Value [Line Items]
Derivative, Notional Amount		242,000	325,400
Foreign currency forward contracts \| Derivatives not designated as hedging instruments: \| Other current assets
Derivative, Fair Value, Net [Abstract]
Derivative Asset		4,288	8,362
Foreign currency forward contracts \| Derivatives not designated as hedging instruments: \| Other assets
Derivative, Fair Value, Net [Abstract]
Derivative Asset		0	1,627
Foreign currency forward contracts \| Derivatives not designated as hedging instruments: \| Accrued expenses
Derivative, Fair Value, Net [Abstract]
Derivative liability		3,249	2,377
Cash flow hedge \| Derivatives designated as cash flow hedges:
Derivatives, Fair Value [Line Items]
Derivative, Notional Amount		362,900	423,300
Cash flow hedge \| Foreign currency forward contracts \| Derivatives designated as cash flow hedges: \| Other current assets
Derivative, Fair Value, Net [Abstract]
Derivative Asset		0	4,110
Cash flow hedge \| Foreign currency forward contracts \| Derivatives designated as cash flow hedges: \| Other assets
Derivative, Fair Value, Net [Abstract]
Derivative Asset		1,331	9,610
Cash flow hedge \| Foreign currency forward contracts \| Derivatives designated as cash flow hedges: \| Accrued expenses
Derivative, Fair Value, Net [Abstract]
Derivative liability		4,061	223
Cash flow hedge \| Foreign currency forward contracts \| Derivatives designated as cash flow hedges: \| Long-term liabilities
Derivative, Fair Value, Net [Abstract]
Derivative liability		$ 6,483	$ 407
Maximum \| Derivatives not designated as hedging instruments:
Derivatives, Fair Value [Line Items]
Derivative, Term of Contract		12 months
Maximum \| Cash flow hedge \| Derivatives designated as cash flow hedges:
Derivatives, Fair Value [Line Items]
Derivative, Term of Contract		3 years

Derivative Instruments and Hedging Activities (Tables)

12 Months Ended

Dec. 31, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of fair values of derivative instruments

The fair values of derivative instruments are as follows (in thousands):


		Fair Value
	Classification		December 31, 2022		January 1, 2022
Derivatives not designated as hedging instruments:
Foreign currency forward contracts	Other current assets		$	4,288	$	8,362
Foreign currency forward contracts	Other assets		—		1,627
Foreign currency forward contracts	Accrued expenses		3,249		2,377

Derivatives designated as cash flow hedges:
Foreign currency forward contracts	Other current assets		$	—	$	4,110
Foreign currency forward contracts	Other assets		1,331		9,610
Foreign currency forward contracts	Accrued expenses		4,061		223
Foreign currency forward contracts	Long-term liabilities		6,483		407

Schedule of derivative instruments gain (loss)

oss) associated with derivative instruments not designated as hedging instruments are as follows (in thousands):


		Fiscal year ended
	Classification	December 31, 2022		January 1, 2022		January 2, 2021
Gain (loss) recognized in income	Other (expense) income, net	$	2,951	$	(9,779)	$	(188)

The following tables reflect the effect of derivatives designated as cash flow hedging for the years ended (in thousands):


	Gain (loss) recognized in OCI on Derivative (1)
	Fiscal year ended
	December 31, 2022		January 1, 2022		January 2, 2021
Foreign currency forward contracts	$	43,735	$	31,363	$	(18,504)

(1)The amount represents the change in fair value of derivative contracts due to changes in spot rates.


	Gain (loss) recognized in earnings on cash flow hedging instruments
	December 31, 2022		January 1, 2022		January 2, 2021
	Revenue		Revenue		Revenue
Consolidated statements of operations in which the effects of cash flow hedging instruments are recorded	$	1,183,383	$	1,564,987	$	1,430,390

Gain on cash flow hedging relationships:
Foreign currency forward contracts:
Amount of gain reclassified from AOCI into earnings	$	27,285	$	4,493	$	4,783

Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Retained Earnings (Accumulated Deficit)	Accumulated Other Comprehensive Income (Loss)
Beginning balance, shares (in shares) at Dec. 28, 2019		28,352,000
Beginning balance at Dec. 28, 2019	$ 652,069	$ 284	$ 196,455	$ 452,321	$ 3,009
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock under employee stock plans (in shares)		151,000
Issuance of common stock under employee stock plans	5,584	$ 1	5,583
Vesting of restricted stock units (in shares)		391,000
Vesting of restricted stock units	0	$ 4	(4)
Stock-based compensation	29,975		29,975
Stock withheld to cover tax withholdings requirements upon restricted stock vesting (in shares)		(46,000)
Stock withheld to cover tax withholdings requirements upon restricted stock vesting	(1,845)		(1,845)
Other comprehensive loss	(3,502)				(3,502)
Directors' deferred compensation	$ 85		85
Stock repurchases (in shares)	(664,000)
Stock repurchases	$ (25,000)	$ (7)	(24,993)
Net (loss) income	147,068			147,068
Ending balance, shares (in shares) at Jan. 02, 2021		28,184,000
Ending balance at Jan. 02, 2021	804,434	$ 282	205,256	599,389	(493)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock under employee stock plans (in shares)		143,000
Issuance of common stock under employee stock plans	6,719	$ 1	6,718
Vesting of restricted stock units (in shares)		369,000
Vesting of restricted stock units	0	$ 3	(3)
Stock-based compensation	21,694		21,694
Stock withheld to cover tax withholdings requirements upon restricted stock vesting (in shares)		(45,000)
Stock withheld to cover tax withholdings requirements upon restricted stock vesting	(5,161)		(5,161)
Other comprehensive loss	8,583				8,583
Directors' deferred compensation	$ 64		64
Stock repurchases (in shares)	(1,645,000)
Stock repurchases	$ (150,000)	$ (16)	(5,915)	(144,069)
Net (loss) income	$ 30,390			30,390
Ending balance, shares (in shares) at Jan. 01, 2022	27,006,000
Ending balance at Jan. 01, 2022	$ 716,723	$ 270	222,653	485,710	8,090
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock under employee stock plans (in shares)		126,000
Issuance of common stock under employee stock plans	4,719	$ 1	4,718
Vesting of restricted stock units (in shares)		321,000
Vesting of restricted stock units	0	$ 3	(3)
Stock-based compensation	31,905		31,905
Stock withheld to cover tax withholdings requirements upon restricted stock vesting (in shares)		(30,000)
Stock withheld to cover tax withholdings requirements upon restricted stock vesting	(1,775)		(1,775)
Other comprehensive loss	10,439				10,439
Net (loss) income	$ (286,295)			(286,295)
Ending balance, shares (in shares) at Dec. 31, 2022	27,423,000
Ending balance at Dec. 31, 2022	$ 475,716	$ 274	$ 257,498	$ 199,415	$ 18,529

Stockholders' Equity

12 Months Ended

Dec. 31, 2022

Equity [Abstract]

Stockholders' Equity


11.			Stockholders' Equity

Preferred Stock

The Company has authorized 5,000,000 shares of undesignated preferred stock with a par value of $0.01 per share. None of the preferred shares were issued and outstanding as of December 31, 2022 and January 1, 2022.

Common Stock

Common stockholders are entitled to one vote for each share held and to receive dividends if and when declared by the Company's board of directors and subject to and qualified by the rights of holders of the preferred stock. Upon dissolution or liquidation of the Company, holders of common stock will be entitled to receive all available assets subject to any preferential rights of any then outstanding preferred stock.

Share Repurchase Activity

The Company's Board of Directors approved a stock repurchase program authorizing up to $200.0 million in share repurchases from time to time until September 2021, which was extended until March 31, 2022.

On August 2, 2021, the Company entered into an accelerated share repurchase ("ASR") agreement with Wells Fargo Bank, National Association ("Wells Fargo"), under which the Company paid $100.0 million and received an aggregate initial share delivery of 943,285 shares of its common stock, which were immediately retired. In September 2021, Wells Fargo delivered an additional 254,933 shares of the Company's common stock to complete settlement of the ASR agreement. Under this agreement, the Company repurchased a total of 1,198,218 shares of its common stock at an average price of $83.46, totaling $100.0 million during the third quarter of 2021. The final number of shares repurchased was based on the volume-weighted average price of its common stock over the duration of the ASR agreement, less a discount.

On March 11, 2021, the Company entered into a Rule 10b5-1 plan to repurchase $50.0 million of common stock and the Company repurchased 446,954 shares of its common stock at an average price of $111.85, totaling $50.0 million during the second quarter of 2021.

- Definition

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

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Summary of Significant Accounting Policies - Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2022	Jan. 01, 2022	Jan. 02, 2021
Basic and Diluted Net Income Per Share
Net (loss) income	$ (286,295)	$ 30,390	$ 147,068
Weighted-average shares outstanding (in shares)	27,214	27,687	28,101
Weighted Average Number Diluted Shares Outstanding Adjustment	0	475	517
Diluted weighted-average shares outstanding (in shares)	27,214	28,162	28,618
Basic income per share (in usd per share)	$ (10.52)	$ 1.10	$ 5.23
Diluted income per share (in usd per share)	$ (10.52)	$ 1.08	$ 5.14

- Definition

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

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+ Details

Derivative Instruments and Hedging Activities (Notes)

12 Months Ended

Dec. 31, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments and Hedging Activities


9.			Derivative Instruments and Hedging Activities

The Company operates internationally and, in the normal course of business, is exposed to fluctuations in foreign currency exchange rates. The foreign currency exposures typically arise from transactions denominated in currencies other than the functional currency of the Company's operations, primarily the British Pound, Canadian Dollar, Euro and Japanese Yen. The Company uses derivative instruments that are designated in cash flow hedge relationships to reduce or eliminate the effects of foreign exchange rate change on sales. These contracts typically have maturities of three years or less. At December 31, 2022 and January 1, 2022, the Company had outstanding cash flow hedges with a total notional value of $362.9 million and $423.3 million, respectively.

The Company also enters into economic hedges that are not designated as hedges from an accounting standpoint to reduce or eliminate the effects of foreign exchange rate changes typically related to short term trade receivables and payables. These contracts typically have maturities of twelve months or less. As of December 31, 2022 and January 1, 2022, the Company had outstanding foreign currency economic hedges with a total notional value of $242.0 million and $325.4 million, respectively.

During the third quarter of 2022, the appreciation of the U.S. dollar resulted in the Company’s foreign currency forward contracts being substantially in-the-money. Given the increased cash value of the hedges and the Company’s overall desire to strengthen its cash position, the Company terminated the contracts during the third quarter of 2022, resulting in cash proceeds of $51.7 million which were recognized within cash used in operating activities in the consolidated statement of cash flows. Amounts previously recorded in AOCI were frozen at the time of termination, and will be recognized in earnings when the original forecasted transaction occurs. In conjunction with the termination of the existing contracts, the Company entered into new foreign currency forward contracts with the same notional values and value dates.

The fair values of derivative instruments are as follows (in thousands):


		Fair Value
	Classification		December 31, 2022		January 1, 2022
Derivatives not designated as hedging instruments:
Foreign currency forward contracts	Other current assets		$	4,288	$	8,362
Foreign currency forward contracts	Other assets		—		1,627
Foreign currency forward contracts	Accrued expenses		3,249		2,377

Derivatives designated as cash flow hedges:
Foreign currency forward contracts	Other current assets		$	—	$	4,110
Foreign currency forward contracts	Other assets		1,331		9,610
Foreign currency forward contracts	Accrued expenses		4,061		223
Foreign currency forward contracts	Long-term liabilities		6,483		407

Gain (loss) associated with derivative instruments not designated as hedging instruments are as follows (in thousands):


		Fiscal year ended
	Classification	December 31, 2022		January 1, 2022		January 2, 2021
Gain (loss) recognized in income	Other (expense) income, net	$	2,951	$	(9,779)	$	(188)

The following tables reflect the effect of derivatives designated as cash flow hedging for the years ended (in thousands):


	Gain (loss) recognized in OCI on Derivative (1)
	Fiscal year ended
	December 31, 2022		January 1, 2022		January 2, 2021
Foreign currency forward contracts	$	43,735	$	31,363	$	(18,504)

(1)The amount represents the change in fair value of derivative contracts due to changes in spot rates.


	Gain (loss) recognized in earnings on cash flow hedging instruments
	December 31, 2022		January 1, 2022		January 2, 2021
	Revenue		Revenue		Revenue
Consolidated statements of operations in which the effects of cash flow hedging instruments are recorded	$	1,183,383	$	1,564,987	$	1,430,390

Gain on cash flow hedging relationships:
Foreign currency forward contracts:
Amount of gain reclassified from AOCI into earnings	$	27,285	$	4,493	$	4,783

Summary of Significant Accounting Policies - Property and Equipment (Details)	12 Months Ended
	Dec. 31, 2022
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Estimated Useful Life	5 years
Leasehold improvements
Property, Plant and Equipment [Line Items]
Capital Leases and Leasehold Improvements Terms	Lesser of economic benefit period or term of lease
Minimum \| Computer and equipment
Property, Plant and Equipment [Line Items]
Estimated Useful Life	2 years
Minimum \| Machinery and tooling
Property, Plant and Equipment [Line Items]
Estimated Useful Life	2 years
Minimum \| Business applications software
Property, Plant and Equipment [Line Items]
Estimated Useful Life	3 years
Maximum \| Computer and equipment
Property, Plant and Equipment [Line Items]
Estimated Useful Life	5 years
Maximum \| Machinery and tooling
Property, Plant and Equipment [Line Items]
Estimated Useful Life	5 years
Maximum \| Business applications software
Property, Plant and Equipment [Line Items]
Estimated Useful Life	7 years

Goodwill and other intangible assets (Tables)

12 Months Ended

Dec. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of goodwill

The following table summarizes the activity in the carrying amount of goodwill and intangible assets for fiscal 2022 and 2021 (in thousands):


	Goodwill		Intangible assets
Balance as of January 2, 2021	$	125,872	$	9,902
Acquisition	52,662		21,000
Amortization	—		(2,253)
Effect of foreign currency translation	(5,242)		(239)
Balance as of January 1, 2022	173,292		28,410
Purchase accounting adjustments	(583)		—
Amortization	—		(15,361)
Effect of foreign currency translation	(4,985)		(1,789)
Balance as of December 31, 2022	$	167,724	$	11,260

Other intangible assets

Intangible assets consisted of the following (in thousands):


	December 31, 2022				January 1, 2022
	Cost		Accumulated Amortization		Net		Cost		Accumulated Amortization		Net
Completed technology	$	33,909	$	28,383	$	5,526	$	43,727	$	27,752	$	15,975
Tradename	100		100		—		100		100		—
Customer relationships	10,104		4,370		5,734		16,628		4,193		12,435
Reacquired distribution rights	29,915		29,915		—		32,096		32,096		—
Non-competition agreements	245		245		—		260		260		—
Total	$	74,273	$	63,013	$	11,260	$	92,811	$	64,401	$	28,410

Estimated future amortization expense related to current intangible assets

The estimated future amortization expense related to current intangible assets in each of the five succeeding fiscal years is expected to be as follows (in thousands):


	Cost of Revenue		Operating Expenses		Total
2023	$	1,133	$	708	$	1,841
2024	1,133		708		1,841
2025	1,133		708		1,841
2026	1,133		708		1,841
2027	994		708		1,702
Thereafter	—		2,194		2,194
Total	$	5,526	$	5,734	$	11,260

Consolidated Statement of Comprehensive Income - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Jan. 01, 2022	Jan. 02, 2021
Statement of Comprehensive Income [Abstract]
Net (loss) income	$ (286,295)	$ 30,390	$ 147,068
Other comprehensive (loss) income, net of tax:
Net foreign currency translation adjustments	(5,853)	(11,730)	14,045
Net unrealized gains (losses) on cash flow hedges, net of tax	39,578	23,715	(13,932)
Net gains on cash flow hedge reclassified into earnings, net of tax	(23,286)	(3,398)	(3,587)
Net unrealized losses on marketable securities, net of tax	0	(4)	(28)
Total comprehensive (loss) income	$ (275,856)	$ 38,973	$ 143,566

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

+ Details

Fair Value Measurements (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended	12 Months Ended
Fair Value Measurements (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Oct. 01, 2022	Dec. 31, 2022	Jan. 01, 2022
Liabilities:
Derivative instruments (Note 9)	$ 7,310		$ 7,310	$ 2,600
Fair value of intangible assets	5,500		5,500
Fair value of right-of-use asset	1,600		1,600
Fair value of property and equipment	600		600
Impairment loss on intangible assets		$ 11,100	11,100
Impairment of right-of-use asset	2,300		2,300
Property and equipment impairment	1,100		1,100
Marketable equity securities
Assets:
Marketable securities, cost	0		0	23,286
Recurring \| Level 1
Assets:
Marketable equity securities				33,044
Derivative instruments (Note 9)	0		0	0
Total assets measured at fair value	79,005		79,005	66,047
Liabilities:
Derivative instruments (Note 9)	0		0	0
Total liabilities measured at fair value	0		0	0
Recurring \| Level 1 \| Money market funds
Assets:
Money market funds	79,005		79,005	33,003
Recurring \| Level 2
Assets:
Marketable equity securities				0
Derivative instruments (Note 9)	5,619		5,619	23,709
Total assets measured at fair value	5,619		5,619	23,709
Liabilities:
Derivative instruments (Note 9)	13,793		13,793	3,007
Total liabilities measured at fair value	13,793		13,793	3,007
Recurring \| Level 2 \| Money market funds
Assets:
Money market funds	0		0	0
Recurring \| Level 3
Assets:
Marketable equity securities				0
Derivative instruments (Note 9)	0		0	0
Total assets measured at fair value	0		0	0
Liabilities:
Derivative instruments (Note 9)	0		0	0
Total liabilities measured at fair value	0		0	0
Recurring \| Level 3 \| Money market funds
Assets:
Money market funds	$ 0		$ 0	$ 0

Revenue Recognition - Performance Obligations (Details) - USD ($) $ in Millions	Dec. 31, 2022	Jan. 01, 2022
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-03
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Performance obligation, amount		$ 20.9
Expected timing of satisfaction, period		1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-02
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Performance obligation, amount	$ 23.2
Expected timing of satisfaction, period	1 year

Income Taxes - Income (Loss) Before Provision For Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Jan. 01, 2022	Jan. 02, 2021
Income Tax Disclosure [Abstract]
Domestic	$ (238,685)	$ 8,880	$ 166,973
Foreign	(22,998)	19,404	20,942
(Loss) income before income taxes	$ (261,683)	$ 28,284	$ 187,915

- Definition

Amount of income (loss) from continuing operations, including income (loss) from equity method investments, before deduction of income tax expense (benefit), and income (loss) attributable to noncontrolling interest.

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