FOX FACTORY HOLDING CORP, 10-Q filed on 8/4/2022
Quarterly Report
v3.22.2
Cover - shares
 6 Months Ended
Jul. 01, 2022
Jul. 31, 2022
Cover [Abstract]    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Jul. 01, 2022  
Document Transition Report false  
Entity File Number 001-36040  
Entity Registrant Name Fox Factory Holding Corp.  
Entity Incorporation, State or Country Code DE  
Entity Tax Identification Number 26-1647258  
Entity Address, Address Line One 2055 Sugarloaf Circle, Suite 300  
Entity Address, City or Town Duluth  
Entity Address, State or Province GA  
Entity Address, Postal Zip Code 30097  
City Area Code 831  
Local Phone Number 274-6500  
Title of 12(b) Security Common Stock, par value $0.001 per share  
Trading Symbol FOXF  
Security Exchange Name NASDAQ  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Large Accelerated Filer  
Entity Emerging Growth Company false  
Entity Small Business false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding   42,262,731
Amendment Flag false  
Document Fiscal Year Focus 2022  
Document Fiscal Period Focus Q2  
Entity Central Index Key 0001424929  
Current Fiscal Year End Date --12-30  
v3.22.2
Condensed Consolidated Balance Sheets - USD ($)
$ in Thousands
Jul. 01, 2022
Dec. 31, 2021
Current assets:    
Cash and cash equivalents $ 108,637 $ 179,686
Accounts receivable (net of allowances of $322 and $410 at July 1, 2022 and December 31, 2021, respectively) 195,449 142,040
Inventory 349,050 279,837
Prepaids and other current assets 267,723 123,107
Total current assets 920,859 724,670
Property, plant and equipment, net 194,601 192,003
Lease right-of-use assets 42,606 38,752
Deferred tax assets 44,176 34,998
Goodwill 323,965 323,299
Intangibles, net 186,074 197,021
Other assets 5,942 4,986
Total assets 1,718,223 1,515,729
Current liabilities:    
Accounts payable 161,614 99,984
Accrued expenses 110,846 112,378
Current portion of long-term debt 0 17,500
Total current liabilities 272,460 229,862
Line of credit 410,000 0
Long-term debt, less current portion 0 360,953
Other liabilities 33,836 30,832
Total liabilities 716,296 621,647
Commitments and contingencies (Refer to Note 9 - Commitments and Contingencies)
Stockholders’ equity    
Preferred stock, $0.001 par value — 10,000 authorized and no shares issued or outstanding as of July 1, 2022 and December 31, 2021 0 0
Common stock, $0.001 par value — $90,000 authorized; $43,153 shares issued and $42,263 outstanding as of July 1, 2022; $43,010 shares issued and $42,120 outstanding as of December 31, 2021 42 42
Additional paid-in capital 347,439 344,119
Treasury stock, at cost; 890 common shares as of July 1, 2022 and December 31, 2021 (13,754) (13,754)
Accumulated other comprehensive income 7,853 4,876
Retained earnings 660,347 558,799
Total stockholders’ equity 1,001,927 894,082
Total liabilities and stockholders’ equity $ 1,718,223 $ 1,515,729
v3.22.2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($)
$ in Thousands
Jul. 01, 2022
Dec. 31, 2021
Statement of Financial Position [Abstract]    
Accounts receivable, allowance for doubtful accounts $ 322 $ 410
Preferred stock, par value (in dollars per share) $ 0.001 $ 0.001
Preferred stock, shares authorized (in shares) 10,000,000 10,000,000
Preferred stock, shares issued (in shares) 0 0
Preferred stock, shares outstanding (in shares) 0 0
Common stock, par value (in dollars per share) $ 0.001 $ 0.001
Common stock, shares authorized (in shares) 90,000,000 90,000,000
Common stock, shares issued (in shares) 43,153,000 43,010,000
Common stock, shares outstanding (in shares) 42,263,000 42,120,000
Treasury stock, shares (in shares) 890,000 890,000
v3.22.2
Condensed Consolidated Statements of Income - USD ($)
shares in Thousands, $ in Thousands
 3 Months Ended 6 Months Ended
Jul. 01, 2022
Jul. 02, 2021
Jul. 01, 2022
Jul. 02, 2021
Income Statement [Abstract]        
Sales $ 406,705 $ 328,164 $ 784,682 $ 609,300
Cost of sales 263,761 217,076 521,478 400,288
Gross profit 142,944 111,088 263,204 209,012
Operating expenses:        
Sales and marketing 24,175 17,840 46,764 34,698
Research and development 14,214 11,216 26,856 21,092
General and administrative 28,444 24,226 54,011 44,595
Amortization of purchased intangibles 5,636 5,083 10,943 10,048
Total operating expenses 72,469 58,365 138,574 110,433
Income from operations 70,475 52,723 124,630 98,579
Interest and other expense, net:        
Interest expense 1,697 1,598 3,674 4,502
Other expense, net 2,816 83 4,508 1,042
Interest and other expense, net 4,513 1,681 8,182 5,544
Income before income taxes 65,962 51,042 116,448 93,035
Provision for income taxes 12,464 6,767 14,900 10,774
Net income $ 53,498 $ 44,275 $ 101,548 $ 82,261
Earnings per share:        
Basic (in dollars per share) $ 1.27 $ 1.05 $ 2.41 $ 1.96
Diluted (in dollars per share) $ 1.26 $ 1.05 $ 2.40 $ 1.94
Weighted-average shares used to compute earnings per share:        
Basic (in shares) 42,218 42,028 42,181 41,940
Diluted (in shares) 42,352 42,367 42,367 42,355
v3.22.2
Condensed Consolidated Statements of Comprehensive Income - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jul. 01, 2022
Jul. 02, 2021
Jul. 01, 2022
Jul. 02, 2021
Statement of Comprehensive Income [Abstract]        
Net income $ 53,498 $ 44,275 $ 101,548 $ 82,261
Other comprehensive (loss) income        
Interest rate swap, net of tax effects 922 (525) 6,733 1,620
Foreign currency translation adjustments, net of tax effects (2,688) 656 (3,756) 132
Other comprehensive (loss) income (1,766) 131 2,977 1,752
Comprehensive income $ 51,732 $ 44,406 $ 104,525 $ 84,013
v3.22.2
Condensed Consolidated Statements of Stockholders' Equity and Redeemable Non-controlling Interest - USD ($)
shares in Thousands, $ in Thousands
Total
Common Stock
Treasury
Additional paid-in capital
Accumulated other comprehensive income
Retained earnings
Beginning Balance (in shares) at Jan. 01, 2021   42,692 890      
Beginning balance at Jan. 01, 2021 $ 719,171 $ 42 $ (13,754) $ 336,834 $ 1,068 $ 394,981
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Issuance of common stock under equity compensation plans, net of shares repurchased for income tax withholding (in shares)   162        
Issuance of common stock under equity compensation plans, net of shares repurchased for income tax withholding 598     598    
Stock-based compensation expense 2,915     2,915    
Other comprehensive (loss) income 1,621       1,621  
Net income 37,986         37,986
Ending Balance (in shares) at Apr. 02, 2021   42,854 890      
Ending balance at Apr. 02, 2021 762,291 $ 42 $ (13,754) 340,347 2,689 432,967
Beginning Balance (in shares) at Jan. 01, 2021   42,692 890      
Beginning balance at Jan. 01, 2021 719,171 $ 42 $ (13,754) 336,834 1,068 394,981
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Other comprehensive (loss) income 1,752          
Ending Balance (in shares) at Jul. 02, 2021   42,972 890      
Ending balance at Jul. 02, 2021 804,369 $ 42 $ (13,754) 338,019 2,820 477,242
Beginning Balance (in shares) at Apr. 02, 2021   42,854 890      
Beginning balance at Apr. 02, 2021 762,291 $ 42 $ (13,754) 340,347 2,689 432,967
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Issuance of common stock under equity compensation plans, net of shares repurchased for income tax withholding (in shares)   118        
Issuance of common stock under equity compensation plans, net of shares repurchased for income tax withholding (5,702)     (5,702)    
Stock-based compensation expense 3,374     3,374    
Other comprehensive (loss) income 131       131  
Net income 44,275         44,275
Ending Balance (in shares) at Jul. 02, 2021   42,972 890      
Ending balance at Jul. 02, 2021 $ 804,369 $ 42 $ (13,754) 338,019 2,820 477,242
Beginning Balance (in shares) at Dec. 31, 2021 42,120 43,010 890      
Beginning balance at Dec. 31, 2021 $ 894,082 $ 42 $ (13,754) 344,119 4,876 558,799
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Issuance of common stock under equity compensation plans, net of shares repurchased for income tax withholding (in shares)   29        
Issuance of common stock under equity compensation plans, net of shares repurchased for income tax withholding (820)     (820)    
Stock-based compensation expense 3,029     3,029    
Other comprehensive (loss) income 4,743       4,743  
Net income 48,050         48,050
Ending Balance (in shares) at Apr. 01, 2022   43,039 890      
Ending balance at Apr. 01, 2022 $ 949,084 $ 42 $ (13,754) 346,328 9,619 606,849
Beginning Balance (in shares) at Dec. 31, 2021 42,120 43,010 890      
Beginning balance at Dec. 31, 2021 $ 894,082 $ 42 $ (13,754) 344,119 4,876 558,799
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Other comprehensive (loss) income $ 2,977          
Ending Balance (in shares) at Jul. 01, 2022 42,263 43,153 890      
Ending balance at Jul. 01, 2022 $ 1,001,927 $ 42 $ (13,754) 347,439 7,853 660,347
Beginning Balance (in shares) at Apr. 01, 2022   43,039 890      
Beginning balance at Apr. 01, 2022 949,084 $ 42 $ (13,754) 346,328 9,619 606,849
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Issuance of common stock under equity compensation plans, net of shares repurchased for income tax withholding (in shares)   114        
Issuance of common stock under equity compensation plans, net of shares repurchased for income tax withholding (2,950)     (2,950)    
Stock-based compensation expense 4,061     4,061    
Other comprehensive (loss) income (1,766)     (1,766)    
Net income $ 53,498         53,498
Ending Balance (in shares) at Jul. 01, 2022 42,263 43,153 890      
Ending balance at Jul. 01, 2022 $ 1,001,927 $ 42 $ (13,754) $ 347,439 $ 7,853 $ 660,347
v3.22.2
Condensed Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
 6 Months Ended
Jul. 01, 2022
Jul. 02, 2021
OPERATING ACTIVITIES:    
Net income $ 101,548 $ 82,261
Adjustments to reconcile net income to net cash (used in) provided by operating activities:    
Depreciation and amortization 24,449 21,433
Stock-based compensation 7,090 5,868
Write off of unamortized loan origination fees 1,927 0
Deferred taxes and uncertain tax positions (9,361) (578)
Amortization of loan fees 634 820
Amortization of swap settlements (1,050) (5)
Change in fair value of interest rate swap, net of taxes (1,923) (502)
Changes in operating assets and liabilities:    
Accounts receivable (57,444) (28,258)
Inventory (74,753) (79,212)
Income taxes (5,072) 2,340
Prepaids and other assets (146,236) (871)
Accounts payable 68,708 63,483
Accrued expenses and other liabilities 6,083 14,587
Net cash (used in) provided by operating activities (85,400) 81,366
INVESTING ACTIVITIES:    
Purchases of property and equipment (19,912) (27,648)
Acquisition of businesses, net of cash acquired 0 (15,625)
Net cash used in investing activities (19,912) (43,273)
FINANCING ACTIVITIES:    
Proceeds from line of credit, net of origination fees of $1,980 582,356 17,093
Payments on line of credit (174,336) (13,855)
Repayment of term debt upon refinancing of Prior Credit Facility (382,500) (5,000)
Proceeds from termination of swap agreement 12,270 324
Installment on purchase of non-controlling interest (1,800) (2,750)
Repurchases from stock compensation program, net (3,770) (5,104)
Net cash provided by (used in) financing activities 32,220 (9,292)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS 2,043 411
CHANGE IN CASH AND CASH EQUIVALENTS (71,049) 29,212
CASH AND CASH EQUIVALENTS—Beginning of period 179,686 245,764
CASH AND CASH EQUIVALENTS—End of period 108,637 274,976
Interest and Income Taxes Paid [Abstract]    
Income taxes 31,230 9,914
Cash paid for interest, net of capitalized interest 3,228 3,990
Cash paid for amounts included in the measurement of lease liabilities 5,290 4,021
Cash Flow, Noncash Operating Activities Disclosure [Abstract]    
Right-of-use assets obtained in exchange for lease obligations 9,626 9,455
Capital expenditures included in accounts payable $ 1,975 $ 4,888
v3.22.2
Description of the Business, Basis of Presentation and Summary of Significant Accounting Policies
 6 Months Ended
Jul. 01, 2022
Accounting Policies [Abstract]  
Description of the Business, Basis of Presentation and Summary of Significant Accounting Policies Description of the Business, Basis of Presentation, and Summary of Significant Accounting Policies - Fox Factory Holding Corp. (the "Company") designs, engineers, manufactures, and markets performance-defining products and systems for customers worldwide. Our premium brand, performance-defining products and systems are used primarily for bicycles ("bikes"), on-road vehicles with and without off-road capabilities, side-by-side vehicles ("Side-by-Sides"), off-road vehicles and trucks, all-terrain vehicles ("ATVs"), snowmobiles, specialty vehicles and applications, motorcycles and commercial trucks. Some of our products are specifically designed and marketed to the leading cycling and powered vehicle original equipment manufacturers ("OEMs"), while others are distributed to consumers through a global network of dealers and distributors.
Throughout this Form 10-Q, unless stated otherwise or as the context otherwise requires, the "Company," "FOX," "Fox Factory," "we," "us," "our," and "ours" refer to Fox Factory Holding Corp. and its operating subsidiaries on a consolidated basis.
Basis of Presentation - The accompanying condensed consolidated financial statements are unaudited. These unaudited interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted (“GAAP”) in the United States of America ("U.S." or "United States") and applicable rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) regarding interim financial reporting. The year-end condensed balance sheet data was derived from audited financial statements, but does not include all disclosures required by GAAP. Certain information and footnote disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. Accordingly, these interim condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements for the fiscal year ended December 31, 2021 included in the Company’s Annual Report on Form 10-K, as filed with the SEC on February 24, 2022. In management’s opinion, the unaudited interim condensed consolidated financial statements reflect all adjustments, which are of a normal and recurring nature, that are necessary for a fair presentation of financial results for the interim periods presented. Operating results for any quarter are not necessarily indicative of the results for the full fiscal year.
Fiscal Year Calendar - The Company operates on a 52-53 week fiscal year calendar. For 2022 and 2021, the Company's fiscal year will end or has ended on December 30, 2022 and December 31, 2021, respectively. The twelve month periods ended December 30, 2022 and December 31, 2021, will include or have included 52 weeks. The three and six month periods ended July 1, 2022 and July 2, 2021 each included 13 weeks and 26 weeks, respectively.
Principles of Consolidation - These condensed consolidated financial statements include the Company and its subsidiaries. All intercompany transactions and balances have been eliminated in consolidation.
Summary of Significant Accounting Policies - There have been no changes to our significant accounting policies described in our Annual Report on Form 10-K for the fiscal year ended December 31, 2021, as filed with the SEC on February 24, 2022 that have had a material impact on our condensed consolidated financial statements and related notes.
Revenue Recognition - Revenues are generated from the sale of performance-defining products and systems to customers worldwide. The Company’s performance-defining products and systems are solutions that improve performance of powered vehicles and bikes. Powered vehicles include on-road vehicles with off-road capabilities, Side-by-Sides, off-road vehicles and trucks, ATVs, snowmobiles, specialty vehicles and applications, and motorcycles.
Revenue is measured based on the consideration specified in a contract with a customer. The Company recognizes revenue when it satisfies a performance obligation by transferring control of a product to a customer, generally at the time of shipment. Contracts are generally in the form of purchase orders and are governed by standard terms and conditions. For larger OEMs, the Company may also enter into master agreements. Sales tax and other similar taxes are excluded from revenues.
Provisions for discounts, rebates, sales incentives, returns, and other adjustments are generally provided for in the period the related sales are recorded, based on management’s assessment of historical trends and projection of future results. Certain pricing provisions that provide the customer with future discounts are considered a material right. Such material rights result in the deferral of revenues that are recognized when the rights are exercised by the customer. Measuring the material rights requires judgments including forecasts of future sales and product mix.
Segments - The Company has determined that it has a single operating and reportable segment: manufacturing, sale and service of performance-defining products. The Company considers operating segments to be components of the Company in which separate financial information is available that is evaluated regularly by the Company’s chief operating decision maker in deciding how to allocate resources and in assessing performance. The chief operating decision maker for the Company is the Chief Executive Officer. The Chief Executive Officer reviews financial information presented on a consolidated basis for purposes of allocating resources and evaluating financial performance.
Use of Estimates - The preparation of the Company’s condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. These estimates are based on information available as of the date of the financial statements; therefore, actual results could differ from management’s estimates.
Reclassifications - We have reclassified certain prior period amounts within our condensed consolidated statement of cash flows for the six months ended July 2, 2021 to conform to our current year presentation.
Certain Significant Risks and Uncertainties - The Company is subject to those risks common in manufacturing-driven markets, including, but not limited to, competitive forces, dependence on key personnel, customer demand for its products, the successful protection of its proprietary technologies, compliance with government regulations, and the possibility of not being able to obtain additional financing when needed. Additionally, the Company has been impacted by the ongoing coronavirus (“COVID-19”) pandemic. The global outbreak of COVID-19 has negatively affected the U.S. and global economy, disrupted global supply chains, resulted in significant travel and transport restrictions, including mandated closures and orders to “shelter-in-place,” and created significant disruption of the financial markets. Despite the Company’s efforts to manage and remedy these impacts to the Company, the ultimate impact and the extent to which the COVID-19 pandemic will continue to affect the business, results of operation and financial condition is difficult to predict and depends on numerous evolving factors outside of the Company’s control, including: the duration and scope of the COVID-19 pandemic; government, social, business and other actions that have been and will be taken in response to the COVID-19 pandemic; increases in COVID-19 case counts; any additional waves of the virus, availability and ultimate efficacy of the vaccine on the new variants of the virus, including the Omicron variant; and the effect of the COVID-19 pandemic on short- and long-term general economic conditions.
In addition, heightened political tensions between China and Taiwan, could negatively impact our business and operations. For example, our bike suspension manufacturing is located in Taiwan. We cannot assure you that any contentious situation between Taiwan and China will always resolve in maintaining the current status quo or remain peaceful. Relations between Taiwan and China, potential confrontations between the United States and China and other factors affecting military, political, social or economic conditions in Taiwan could have a material adverse effect on our business, our supply chain and our operations.
Furthermore, during the first quarter of 2022, Russia commenced a military invasion of Ukraine, and the ensuing conflict has created disruption in the region and around the world. In addition, in response to this invasion, the United States and several European and Asian countries instated sanctions against Russia. The impact of the Russia invasion of Ukraine on the global economy, energy supplies and raw materials is uncertain but may prove to negatively impact the Company’s business and operations.
Fair Value Measurements and Financial Instruments - The Financial Accounting Standards Board ("FASB") has issued Accounting Standards Codification ("ASC") 820, Fair Value Measurements and Disclosures, that requires the valuation of assets and liabilities required or permitted to be either recorded or disclosed at fair value based on hierarchy of available inputs as follows:
Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities;
Level 2: Quoted prices for similar assets and liabilities in active markets, quoted prices for identical assets and liabilities in markets that are not active, or inputs which are observable, either directly or indirectly, for substantially the full term of the asset or liability; and
Level 3: Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported by little or no market activity).
The carrying amounts of the Company's financial instruments, including cash, receivables, accounts payable, accrued liabilities and line of credit approximate their fair values due to their short-term nature. Amounts owed under the Company's Prior Credit Facility (as defined in Note 8 - Debt below) approximated fair value due to the variable interest rate features embedded in the term debt.
Recent Accounting Pronouncements - In December 2019, the FASB issued ASU 2019-12, Simplifying the Accounting for Income Taxes, which helps simplify how entities account for income taxes by removing various exceptions related to the recognition of deferred tax liabilities and updating other tax computation requirements. This standard is effective for fiscal years beginning after December 15, 2020 and early adoption is permitted. The Company adopted ASU 2019-12 effective in the first quarter of fiscal year 2021. The adoption of ASU 2019-12 did not have a material impact on the Company's condensed consolidated financial statements.
In October 2020, the FASB issued ASU 2020-10, Codification Improvements. The amendments in ASU 2020-10 contain improvements to the Codification to ensure consistency by including disclosure guidance in the appropriate Disclosure Section. This guidance includes an option for an entity to provide certain information either on the face of the financial statements or in the notes. ASU 2020-10 amends the Codification to include this language in the appropriate disclosure section. The ASU also provides clarification to various codification topics to improve consistency in guidance application. The amendments are effective for interim and annual reporting periods in fiscal years beginning after December 15, 2020, with early adoption permitted. The Company adopted ASU 2020-10 effective in the first quarter of fiscal year 2021. The adoption of ASU 2020-10 did not have a material impact on the Company's condensed consolidated financial statements and related disclosures.
In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. Under ASU 2021-08, an acquirer must recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606. The guidance is effective for interim and annual periods beginning after December 15, 2022, with early adoption permitted. The Company adopted this guidance in the first quarter of 2022. This adoption did not have a material impact on our financial statements.
v3.22.2
Revenues
 6 Months Ended
Jul. 01, 2022
Revenue from Contract with Customer [Abstract]  
Revenues Revenues
The following table summarizes total sales by product category:
For the three months endedFor the six months ended
July 1, 2022July 2, 2021July 1, 2022July 2, 2021
Powered Vehicles$229,032 $189,419 $437,139 $352,166 
Specialty Sports177,673 138,745 347,543 257,134 
Total sales$406,705 $328,164 $784,682 $609,300 

The following table summarizes total sales by sales channel:
For the three months endedFor the six months ended
July 1, 2022July 2, 2021July 1, 2022July 2, 2021
OEM $223,110 $172,547 $424,375 $324,027 
Aftermarket183,595 155,617 360,307 285,273 
Total sales$406,705 $328,164 $784,682 $609,300 
The following table summarizes total sales generated by geographic location of the customer:
For the three months endedFor the six months ended
July 1, 2022July 2, 2021July 1, 2022July 2, 2021
North America$257,183 $217,695 $491,142 $398,178 
Asia61,812 60,245 121,829 112,101 
Europe81,540 46,818 160,074 92,557 
Rest of the world6,170 3,406 11,637 6,464 
Total sales$406,705 $328,164 $784,682 $609,300 
Remaining performance obligations represent the transaction price of contracts, generally considered to be the customer's purchase order, for which work has not been performed or has been partially performed. The Company has elected to exclude remaining performance obligations with an original expected duration of one year or less. Revenue expected to be recognized from remaining performance obligations as of July 1, 2022 for contracts with a duration more than one year was approximately $5,999, all of which is expected to be recognized during fiscal years 2023 to 2027.
v3.22.2
Inventory
 6 Months Ended
Jul. 01, 2022
Inventory Disclosure [Abstract]  
Inventory InventoryInventory consisted of the following:
July 1,December 31,
20222021
Raw materials$247,358 $200,460 
Work-in-process12,445 7,539 
Finished goods89,247 71,838 
Total inventory$349,050 $279,837 
v3.22.2
Prepaids and Other Assets
 6 Months Ended
Jul. 01, 2022
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]  
Prepaids and Other Current Assets Prepaids and Other Current AssetsPrepaids and other current assets consisted of the following:
July 1,December 31,
20222021
Prepaid chassis deposits$235,362 $98,618 
Advanced payments and prepaid contracts19,011 14,024 
Other current assets13,350 10,465 
Total$267,723 $123,107 
v3.22.2
Property, Plant and Equipment, net
 6 Months Ended
Jul. 01, 2022
Property, Plant and Equipment [Abstract]  
Property, Plant and Equipment, net Property, Plant and Equipment, net
Property, plant and equipment, net consisted of the following:
July 1,December 31,
20222021
Building and building improvements$72,701 $72,088 
Information systems, office equipment and furniture23,325 20,988 
Internal-use computer software26,612 25,700 
Land and land improvements15,471 15,663 
Leasehold improvements17,511 22,835 
Machinery and manufacturing equipment113,398 106,628 
Transportation equipment8,716 7,372 
Total277,734 271,274 
Less: accumulated depreciation and amortization(83,133)(79,271)
Property, plant and equipment, net$194,601 $192,003 
At the end of March 2022, the Company retired approximately $6,717 in assets that were fully depreciated in response to the shutdown of our Watsonville, California facility.
The Company’s long-lived assets by geographic location are as follows:
July 1,December 31,
20222021
United States$163,955 $161,451 
International30,646 30,552 
Total long-lived assets$194,601 $192,003 
v3.22.2
Leases
 6 Months Ended
Jul. 01, 2022
Leases [Abstract]  
Leases Leases
The Company has operating lease agreements for administrative, research and development, manufacturing, and sales and marketing facilities. These leases have remaining lease terms ranging from one to ten years, some of which include options to extend the lease term for up to five years, and some of which include options to terminate the leases within one year. Certain leases are subject to annual escalations as specified in the lease agreements. The Company considered these options in determining the lease term used to establish its right-of-use assets and lease liabilities. These lease agreements do not contain any material residual value guarantees or material restrictive covenants.
As most of the Company's leases do not provide an interest rate, the Company used the incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The weighted-average remaining lease term for the Company's operating leases was 5.21 years and the weighted-average incremental borrowing rate was 2.06% as of July 1, 2022.
Operating lease costs consisted of the following:
For the three months endedFor the six months ended
July 1, 2022July 2, 2021July 1, 2022July 2, 2021
Operating lease cost$2,832 $1,983 $5,655 $4,053 
Other lease costs (1)1,272 397 1,990 622 
Total$4,104 $2,380 $7,645 $4,675 
(1) Includes short-term leases and variable lease costs. The Company elected a policy exclusion permitting leases with an original lease term of less than one year to be excluded from the right-of-use assets and lease liabilities.
Supplemental balance sheet information related to the Company's operating leases is as follows:
Balance Sheet ClassificationJuly 1, 2022
Operating lease right-of-use assetsLease right-of-use assets$42,606 
Current lease liabilitiesAccrued expenses$9,721 
Non-current lease liabilitiesOther liabilities$31,922 
Maturities of lease liabilities by fiscal year for the Company's operating leases are as follows:
For fiscal yearTotal future payments
2022 (remaining six months)$5,198 
202310,178 
20248,981 
20256,723 
20264,960 
Thereafter7,788 
Total lease payments43,828 
Less: imputed interest(2,185)
Present value of lease liabilities41,643 
Less: current portion(9,721)
Lease liabilities less current portion$31,922 
v3.22.2
Accrued Expenses
 6 Months Ended
Jul. 01, 2022
Payables and Accruals [Abstract]  
Accrued Expenses Accrued Expenses
Accrued expenses consisted of the following:
July 1,December 31,
20222021
Payroll and related expenses$27,922 $32,968 
Current portion of lease liabilities9,721 9,095 
Warranty16,088 15,510 
Income tax payable28,927 34,845 
Accrued sales rebate12,183 8,568 
Current portion of non-controlling interest buyout liability900 2,700 
Other accrued expenses15,105 8,692 
Total$110,846 $112,378 
Activity related to warranties is as follows:
For the three months endedFor the six months ended
July 1, 2022July 2, 2021July 1, 2022July 2, 2021
Beginning warranty liability$15,993 $11,521 $15,510 $9,835 
Charge to cost of sales2,322 4,070 5,449 7,331 
Fair value of warranty assumed in acquisition— 150 — 150 
Costs incurred(2,227)(2,091)(4,871)(3,666)
Ending warranty liability$16,088 $13,650 $16,088 $13,650 
v3.22.2
Debt
 6 Months Ended
Jul. 01, 2022
Debt Disclosure [Abstract]  
Debt Debt
Prior Credit Facility
In June 2019, the Company entered into a credit facility with Bank of America and other named lenders, which was periodically amended and restated and/or amended. The credit facility was amended and restated on March 11, 2020, and further amended on June 19, 2020, and June 11, 2021 (as amended, the "Prior Credit Facility"). The Prior Credit Facility (which was terminated on April 5, 2022 and replaced with the 2022 Credit Facility (as discussed below)), would have matured on March 11, 2025, and provided a senior secured revolving line of credit with a borrowing capacity of $250,000 and a term loan of $400,000. The term loan was subject to quarterly amortization payments.
2022 Credit Facility
v3.22.2
Commitments and Contingencies
 6 Months Ended
Jul. 01, 2022
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies Commitments and Contingencies
Indemnification Agreements - In the ordinary course of business, the Company may provide indemnifications of varying scope and terms to customers, vendors, lessors, business partners, and other parties with respect to certain matters, including, but not limited to, losses arising out of breach of such agreements, services to be provided by the Company or intellectual property infringement claims made by third parties. In addition, the Company has entered into indemnification agreements with directors and certain officers and employees that will require the Company, among other things, to indemnify them against certain liabilities that may arise by reason of their status or service as directors, officers or employees. While the outcome of these matters cannot be predicted with certainty, the Company does not believe that the outcome of any claims under indemnification arrangements will have a material effect on the Company’s results of operations, financial position or liquidity.
Legal Proceedings - From time to time, the Company is involved in legal proceedings that arise in the ordinary course of business. Although the Company cannot assure the outcome of any such legal proceedings, based on information currently available, management does not believe that the ultimate resolution of any pending matters will have a material adverse effect on the Company's financial condition, results of operations or cash flows.
Other Commitments - On November 30, 2017, the Company through FF US Holding Corp., acquired the assets of Flagship, Inc. d/b/a Tuscany and issued a 20% interest in FF US Holding Corp. to Flagship, Inc. A stockholders' agreement with Flagship, Inc. provided the Company with a call option (the "Call Option") to acquire the remaining 20% of FF US Holding Corp. at any time from November 30, 2019 through November 30, 2024 at a value that approximates fair market value. On July 22, 2020, the Company exercised the Call Option and, pursuant to a stock purchase agreement with Flagship, Inc., the Company purchased the remaining 20% interest for $24,975 payable in a combination of stock and cash. The cash portion has been or will be settled in quarterly installment payments beginning in July 2020 through July 2022, which amount to $6,556, $4,550 and $2,700 in 2020, 2021 and 2022, respectively. The Company paid $900 and $1,800 during the three and six months ended July 1, 2022 and $900 and $2,750 during the three and six months ended July 2, 2021, respectively. The Company had a remaining liability of $900 as of July 1, 2022. The stock portion of 136 shares held in escrow has been or will be released quarterly starting January 2021 through July 2022. The Company released 19 and 39 shares of stock during the three and six months ended July 1, 2022 and 19 and 39 shares of stock during the three and six months ended July 2, 2021, respectively. The exercise of the Call Option effectively canceled the put option held by Flagship, Inc.
v3.22.2
Derivatives and Hedging
 6 Months Ended
Jul. 01, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivatives and Hedging Derivatives and Hedging
The Company is exposed to certain risks relating to its ongoing business operations. The primary risk managed by using derivative instruments is interest rate risk. The Company utilizes interest rate swaps to limit its exposure to interest rate risk by converting a portion of its floating-rate debt to a fixed-rate basis, thus reducing the impact of interest rate changes on future interest expense. Interest rate swaps involve the receipt of floating-rate amounts in exchange for fixed-rate interest payments based on the one-month London Interbank Offered Rate ("LIBOR") or SOFR over the lives of the agreements without an exchange of the underlying principal amounts.
As of July 1, 2022 and December 31, 2021, the Company had the following interest rate swap contracts:
July 1, 2022December 31, 2021
Effective DateTermination DateNotional AmountUnrealized Gain in AOCIUnrealized Gain in AOCI
September 2, 2020June 11, 2021$200,000$233 $276 
July 2, 2021April 5, 2022$200,00011,263 3,583 
April 5, 2022April 5, 2027$100,0001,018 — 
Total $12,514 $3,859 
On June 11, 2021, the Company terminated its existing swap agreement (the "2020 Swap Agreement") and entered into an interest rate swap agreement (the "2021 Swap Agreement") with a notional amount of $200,000. On April 5, 2022, the Company terminated its 2021 Swap Agreement and entered into a new interest rate swap agreement (the "2022 Swap Agreement") with a notional amount of $100,000. The terminated 2020 and 2021 Swap Agreements resulted in unrealized gains of $324 and $12,270, respectively, at the termination dates that will continue to be accounted for in accumulated other comprehensive income and amortized into earnings over the term of the associated debt instrument.
The 2022 Swap Agreement has a maturity date of April 5, 2027 and is indexed to a three-month Term SOFR (as defined in the 2022 Swap Agreement). The 2022 Swap Agreement met the criteria for cash flow hedges under ASC 815, Derivatives and Hedging ("ASC 815"), and will be recorded to other assets or other liabilities on the Condensed Consolidated Balance Sheet. Refer to Note 11 - Fair Value Measurements and Financial Instruments for additional information on determining the fair value. The unrealized gains or losses, after tax, will be recorded in accumulated other comprehensive income, a component of equity, and are expected to be reclassified into interest expense on the Condensed Consolidated Statement of Income when the forecasted transactions affect earnings. As required under ASC 815, the interest rate swap contracts’ effectiveness will be assessed on a quarterly basis using a quantitative regression analysis.
The gains and losses, net of tax, related to the derivative instruments designated as cash flow hedges recognized in accumulated other comprehensive income for the three and six months ended July 1, 2022 were a gain of $922 and $6,732, respectively; and for the three and six months ended July 2, 2021 were a loss of $525 and a gain of $1,620, respectively.
Over the next twelve months, the Company expects to recognize $4,252 of the $12,514 of unrealized gains included in accumulated other comprehensive income related to the interest rate swap contracts.
v3.22.2
Fair Value Measurements and Financial Instruments
 6 Months Ended
Jul. 01, 2022
Fair Value Disclosures [Abstract]  
Fair Value Measurements and Financial Instruments Fair Value Measurements and Financial Instruments
The following table presents the Company's hierarchy for its assets and liabilities measured at fair value on a recurring basis as of the following periods:
July 1, 2022December 31, 2021
Level 1Level 2Level 3TotalLevel 1Level 2Level 3Total
Assets:
Interest Rate Swap$— $1,018 $— $1,018 $— $3,583 $— $3,583 
Total assets measured at fair value$— $1,018 $— $1,018 $— $3,583 $— $3,583 
Liabilities:
Prior Credit Facility$— $— $— $— $— $378,453 $— $378,453 
Total liabilities measured at fair value$— $— $— $— $— $378,453 $— $378,453 
There were no transfers of assets or liabilities between Level 1, Level 2, and Level 3 categories of the fair value hierarchy during the three and six month period ended July 1, 2022.
As of December 31, 2021, the carrying amount of the principal under the Company’s Prior Credit Facility approximated fair value because it had a variable interest rate that reflected market changes in interest rates and changes in the Company’s net leverage ratio. The Prior Credit Facility was terminated on April 5, 2022 and replaced with the revolving 2022 Credit Facility.
On June 11, 2021, the Company entered into the 2021 Swap Agreement to mitigate the cash flow risk associated with changes in interest rates on its variable rate debt. On April 5, 2022, the Company terminated its 2021 Swap Agreement and entered into the 2022 Swap Agreement. Refer to Note 10 - Derivatives and Hedging for additional details of the agreement. In accordance with ASC 815, an interest rate swap contract is recognized as an asset or liability on the Condensed Consolidated Balance Sheets and is measured at fair value. The fair value was calculated utilizing Level 2 inputs.
v3.22.2
Stockholders' Equity
 6 Months Ended
Jul. 01, 2022
Share-Based Payment Arrangement [Abstract]  
Stockholders' Equity Stockholders' Equity
Equity Incentive Plans
The following table summarizes the allocation of stock-based compensation in the accompanying Condensed Consolidated Statements of Income:
For the three months endedFor the six months ended
July 1, 2022July 2, 2021July 1, 2022July 2, 2021
Cost of sales$231 $190 $409 $311 
Sales and marketing227 213 453 365 
Research and development262 238 490 425 
General and administrative3,341 2,733 5,738 4,767 
Total$4,061 $3,374 $7,090 $5,868 
As of January 1, 2021, $421 of stock-based compensation expense related to our executive bonus plan is included in Accrued Expenses on the Condensed Consolidated Balance Sheets. This amount was recognized as additional paid in capital during the six months ended July 2, 2021 upon the issuance of the underlying restricted stock units ("RSUs").
The following table summarizes the activity for the Company's unvested RSUs for the six months ended July 1, 2022:
Unvested RSUs
Number of shares outstandingWeighted-average grant date fair value
Unvested at December 31, 2021338 $76.30 
Granted141 $95.24 
Canceled(9)$83.56 
Vested(154)$72.81 
Unvested at July 1, 2022316 $86.24 
As of July 1, 2022, the Company had approximately $24,281 of unrecognized stock-based compensation expense related to RSUs, which will be recognized over the remaining weighted-average vesting period of approximately 2.23 years.
During the six months ended July 1, 2022, the Company issued performance share units (“PSUs”) to certain executives that represent shares potentially issuable in the future. Issuance is based upon the Company's performance, over a 2-3 year performance period, on certain measures including return on invested capital and free cash flow. The PSUs vest only upon the achievement of the applicable performance goals for the performance period, and, depending on the actual achievement on the performance goals, the grantee may earn between 0% and 200% of the target PSUs. The Company considered it probable that the performance goals would be achieved, therefore the fair value of PSUs is calculated based on the stock price on the date of grant.
The following table summarizes the activity for the Company's unvested PSUs for the six months ended July 1, 2022:
Unvested PSUs
Number of shares outstandingWeighted-average grant date fair value
Unvested at December 31, 202129 $141.46 
Granted37 $120.90 
Unvested at July 1, 202266 $129.94 
The stock-based compensation expense recognized each period is dependent upon our estimate of the number of shares that will ultimately vest based on the achievement of certain performance conditions. Future stock-based compensation expense for unvested performance-based awards could reach a maximum of $11,191 assuming achievement at the maximum level. The unrecognized stock-based compensation expense is expected to be recognized over a weighted average period of 2.02 years.
For the six months ended July 1, 2022, the Company had 152 unvested RSUs and PSUs outstanding which were excluded from the calculation of dilutive earnings per share because the effect would be anti-dilutive.
During the six months ended July 1, 2022, 33 shares of common stock were issued due to the exercise of stock options. As of July 1, 2022, stock-based compensation expense related to stock options has been fully recognized and there are no outstanding options to purchase common stock.
v3.22.2
Income Taxes
 6 Months Ended
Jul. 01, 2022
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
For the three months endedFor the six months ended
July 1, 2022July 2, 2021July 1, 2022July 2, 2021
Provision for income taxes$12,464 $6,767 $14,900 $10,774 
Effective tax rates18.9 %13.3 %12.8 %11.6 %
For the three months ended July 1, 2022, the difference between the Company's effective tax rate of 18.9% and the 21% federal statutory rate resulted primarily from a lower tax rate on foreign derived intangible income and excess benefits related to stock-based compensation. The benefits were partially offset by withholding and state taxes. For the six months ended July 1, 2022, the difference between the Company's effective tax rate and the 21% federal statutory rate resulted primarily from the impact of the recently finalized U.S. tax regulations published by the U.S. Treasury and Internal Revenue Service on January 4, 2022 and from a lower tax rate on foreign derived intangible income. These regulations limit the amount of newly generated foreign taxes that are creditable against U.S. income taxes, which resulted in a release of the Company’s valuation allowance against foreign tax credits due to the Company's ability to use foreign tax credit carryforwards that had previously been reserved against. These benefits were partially offset by withholding and state taxes.
For the three months ended July 2, 2021, the difference between the Company's effective tax rate of 13.3% and the 21% federal statutory rate resulted primarily from excess benefits related to stock-based compensation, and a lower tax rate on foreign derived intangible income. These benefits were partially offset by an increase in the valuation allowance for foreign tax credits, state taxes and non-deductible expenses. For the six months ended July 2, 2021, the difference between the Company’s effective tax rate and the 21% federal statutory rate resulted primarily from excess benefits related to stock-based compensation, a lower tax rate on foreign derived intangible income and the recognition of uncertain tax positions due to the conclusion of an audit. These benefits were partially offset by an increase in the valuation allowance for foreign tax credits, state taxes and non-deductible expenses.
We do not expect the results from any ongoing income tax audits to have a material impact on our consolidated financial condition, results of operations, or cash flows.
v3.22.2
Related Party Transactions
 6 Months Ended
Jul. 01, 2022
Related Party Transactions [Abstract]  
Related Party Agreements Related Party Transactions
On March 11, 2020, the Company acquired 100% of the issued and outstanding stock of SCA Performance Holdings, Inc. ("SCA"). The Company has transactions with an automotive dealership owned by a former owner of SCA, who is now an employee of the Company. The Company purchased approximately $339 and $620 of parts and vehicles and sold approximately $253 and $710 of upfit packages to the dealership during the three and six months ended July 1, 2022, respectively. The Company purchased approximately $262 and $464 of parts and vehicles and sold approximately $130 and $250 of upfit packages to the dealership during the three and six months ended July 2, 2021, respectively. The Company had $37 and $40 in accounts payable and accounts receivable as of July 1, 2022, respectively, and $143 and $8 in accounts payable and accounts receivable as of July 2, 2021, respectively, related to this dealership.
On July 22, 2020, the Company, pursuant to a stock purchase agreement with Flagship, Inc., purchased the remaining 20% interest of FF US Holding Corp. for $24,975 payable in a combination of stock and cash. The cash portion will be settled in quarterly installment payments through July 2022. Refer to Note 9 - Commitments and Contingencies for additional details of this agreement.
v3.22.2
Acquisitions
 6 Months Ended
Jul. 01, 2022
Business Combination and Asset Acquisition [Abstract]  
Acquisitions Acquisitions
On May 21, 2021, the Company, through its wholly owned subsidiary, Fox Factory Australia Pty Ltd., acquired substantially all the assets of Sola Sport Pty Ltd. for $486. The acquisition was not material to the Company's financial statements.
On May 25, 2021, the Company, through its wholly owned subsidiary, SCA Performance, Inc., acquired 100% of the issued and outstanding stock of Manifest Joy LLC, d/b/a Outside Van ("Outside Van") a custom van conversion company. The total purchase price of $15,275, net of cash acquired, was allocated to the net liabilities assumed of $1,057, identifiable intangible assets of $5,560 and goodwill acquired of $10,772, based on their respective fair values as of May 25, 2021, with the excess purchase price allocated to goodwill. The Company will amortize the acquired customer relationship and trade name assets over their expected useful lives of one and ten years, respectively. This purchase was accounted for as a business combination and was not material to the Company's financial statements.
On December 30, 2021, the Company, through its wholly owned subsidiary, Shock Therapy Suspension, Inc., acquired substantially all the assets of Shock Therapy LLC ("STS"), for $36,834, net of cash acquired. STS is a premier suspension tuning company in the off-road industry, with headquarters in Phoenix, Arizona. The purchase price of STS is allocated to the net assets assumed of $5,244, identifiable intangible assets of $7,086 and goodwill acquired of $24,504, based on their respective fair values as of December 30, 2021, with the excess purchase price allocated to goodwill. The Company will amortize the acquired non-compete and trade name assets over their expected useful lives of five and ten years, respectively. The acquired goodwill represents the value of combining operations of STS and the company and is expected to be deductible for tax purposes. This purchase was accounted for as a business combination and was not material to the Company's financial statements.
v3.22.2
Description of the Business, Basis of Presentation and Summary of Significant Accounting Policies (Policies)
 6 Months Ended
Jul. 01, 2022
Accounting Policies [Abstract]  
Basis of Presentation Basis of Presentation - The accompanying condensed consolidated financial statements are unaudited. These unaudited interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted (“GAAP”) in the United States of America ("U.S." or "United States") and applicable rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) regarding interim financial reporting. The year-end condensed balance sheet data was derived from audited financial statements, but does not include all disclosures required by GAAP. Certain information and footnote disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. Accordingly, these interim condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements for the fiscal year ended December 31, 2021 included in the Company’s Annual Report on Form 10-K, as filed with the SEC on February 24, 2022. In management’s opinion, the unaudited interim condensed consolidated financial statements reflect all adjustments, which are of a normal and recurring nature, that are necessary for a fair presentation of financial results for the interim periods presented. Operating results for any quarter are not necessarily indicative of the results for the full fiscal year.
Fiscal Year Fiscal Year Calendar - The Company operates on a 52-53 week fiscal year calendar. For 2022 and 2021, the Company's fiscal year will end or has ended on December 30, 2022 and December 31, 2021, respectively. The twelve month periods ended December 30, 2022 and December 31, 2021, will include or have included 52 weeks. The three and six month periods ended July 1, 2022 and July 2, 2021 each included 13 weeks and 26 weeks, respectively.
Principles of Consolidation Principles of Consolidation - These condensed consolidated financial statements include the Company and its subsidiaries. All intercompany transactions and balances have been eliminated in consolidation.
Revenue Recognition
Revenue Recognition - Revenues are generated from the sale of performance-defining products and systems to customers worldwide. The Company’s performance-defining products and systems are solutions that improve performance of powered vehicles and bikes. Powered vehicles include on-road vehicles with off-road capabilities, Side-by-Sides, off-road vehicles and trucks, ATVs, snowmobiles, specialty vehicles and applications, and motorcycles.
Revenue is measured based on the consideration specified in a contract with a customer. The Company recognizes revenue when it satisfies a performance obligation by transferring control of a product to a customer, generally at the time of shipment. Contracts are generally in the form of purchase orders and are governed by standard terms and conditions. For larger OEMs, the Company may also enter into master agreements. Sales tax and other similar taxes are excluded from revenues.
Provisions for discounts, rebates, sales incentives, returns, and other adjustments are generally provided for in the period the related sales are recorded, based on management’s assessment of historical trends and projection of future results. Certain pricing provisions that provide the customer with future discounts are considered a material right. Such material rights result in the deferral of revenues that are recognized when the rights are exercised by the customer. Measuring the material rights requires judgments including forecasts of future sales and product mix.
Segments Segments - The Company has determined that it has a single operating and reportable segment: manufacturing, sale and service of performance-defining products. The Company considers operating segments to be components of the Company in which separate financial information is available that is evaluated regularly by the Company’s chief operating decision maker in deciding how to allocate resources and in assessing performance. The chief operating decision maker for the Company is the Chief Executive Officer. The Chief Executive Officer reviews financial information presented on a consolidated basis for purposes of allocating resources and evaluating financial performance.
Use of Estimates Use of Estimates - The preparation of the Company’s condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. These estimates are based on information available as of the date of the financial statements; therefore, actual results could differ from management’s estimates.
Certain Significant Risks and Uncertainties
Certain Significant Risks and Uncertainties - The Company is subject to those risks common in manufacturing-driven markets, including, but not limited to, competitive forces, dependence on key personnel, customer demand for its products, the successful protection of its proprietary technologies, compliance with government regulations, and the possibility of not being able to obtain additional financing when needed. Additionally, the Company has been impacted by the ongoing coronavirus (“COVID-19”) pandemic. The global outbreak of COVID-19 has negatively affected the U.S. and global economy, disrupted global supply chains, resulted in significant travel and transport restrictions, including mandated closures and orders to “shelter-in-place,” and created significant disruption of the financial markets. Despite the Company’s efforts to manage and remedy these impacts to the Company, the ultimate impact and the extent to which the COVID-19 pandemic will continue to affect the business, results of operation and financial condition is difficult to predict and depends on numerous evolving factors outside of the Company’s control, including: the duration and scope of the COVID-19 pandemic; government, social, business and other actions that have been and will be taken in response to the COVID-19 pandemic; increases in COVID-19 case counts; any additional waves of the virus, availability and ultimate efficacy of the vaccine on the new variants of the virus, including the Omicron variant; and the effect of the COVID-19 pandemic on short- and long-term general economic conditions.
In addition, heightened political tensions between China and Taiwan, could negatively impact our business and operations. For example, our bike suspension manufacturing is located in Taiwan. We cannot assure you that any contentious situation between Taiwan and China will always resolve in maintaining the current status quo or remain peaceful. Relations between Taiwan and China, potential confrontations between the United States and China and other factors affecting military, political, social or economic conditions in Taiwan could have a material adverse effect on our business, our supply chain and our operations.
Furthermore, during the first quarter of 2022, Russia commenced a military invasion of Ukraine, and the ensuing conflict has created disruption in the region and around the world. In addition, in response to this invasion, the United States and several European and Asian countries instated sanctions against Russia. The impact of the Russia invasion of Ukraine on the global economy, energy supplies and raw materials is uncertain but may prove to negatively impact the Company’s business and operations.
Fair Value Measurements and Financial Instruments
Fair Value Measurements and Financial Instruments - The Financial Accounting Standards Board ("FASB") has issued Accounting Standards Codification ("ASC") 820, Fair Value Measurements and Disclosures, that requires the valuation of assets and liabilities required or permitted to be either recorded or disclosed at fair value based on hierarchy of available inputs as follows:
Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities;
Level 2: Quoted prices for similar assets and liabilities in active markets, quoted prices for identical assets and liabilities in markets that are not active, or inputs which are observable, either directly or indirectly, for substantially the full term of the asset or liability; and
Level 3: Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported by little or no market activity).
The carrying amounts of the Company's financial instruments, including cash, receivables, accounts payable, accrued liabilities and line of credit approximate their fair values due to their short-term nature.
Recent Accounting Pronouncements
Recent Accounting Pronouncements - In December 2019, the FASB issued ASU 2019-12, Simplifying the Accounting for Income Taxes, which helps simplify how entities account for income taxes by removing various exceptions related to the recognition of deferred tax liabilities and updating other tax computation requirements. This standard is effective for fiscal years beginning after December 15, 2020 and early adoption is permitted. The Company adopted ASU 2019-12 effective in the first quarter of fiscal year 2021. The adoption of ASU 2019-12 did not have a material impact on the Company's condensed consolidated financial statements.
In October 2020, the FASB issued ASU 2020-10, Codification Improvements. The amendments in ASU 2020-10 contain improvements to the Codification to ensure consistency by including disclosure guidance in the appropriate Disclosure Section. This guidance includes an option for an entity to provide certain information either on the face of the financial statements or in the notes. ASU 2020-10 amends the Codification to include this language in the appropriate disclosure section. The ASU also provides clarification to various codification topics to improve consistency in guidance application. The amendments are effective for interim and annual reporting periods in fiscal years beginning after December 15, 2020, with early adoption permitted. The Company adopted ASU 2020-10 effective in the first quarter of fiscal year 2021. The adoption of ASU 2020-10 did not have a material impact on the Company's condensed consolidated financial statements and related disclosures.
In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. Under ASU 2021-08, an acquirer must recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606. The guidance is effective for interim and annual periods beginning after December 15, 2022, with early adoption permitted. The Company adopted this guidance in the first quarter of 2022. This adoption did not have a material impact on our financial statements.
v3.22.2
Revenues (Tables)
 6 Months Ended
Jul. 01, 2022
Revenue from Contract with Customer [Abstract]  
Disaggregation of Revenues
The following table summarizes total sales by product category:
For the three months endedFor the six months ended
July 1, 2022July 2, 2021July 1, 2022July 2, 2021
Powered Vehicles$229,032 $189,419 $437,139 $352,166 
Specialty Sports177,673 138,745 347,543 257,134 
Total sales$406,705 $328,164 $784,682 $609,300 

The following table summarizes total sales by sales channel:
For the three months endedFor the six months ended
July 1, 2022July 2, 2021July 1, 2022July 2, 2021
OEM $223,110 $172,547 $424,375 $324,027 
Aftermarket183,595 155,617 360,307 285,273 
Total sales$406,705 $328,164 $784,682 $609,300 
The following table summarizes total sales generated by geographic location of the customer:
For the three months endedFor the six months ended
July 1, 2022July 2, 2021July 1, 2022July 2, 2021
North America$257,183 $217,695 $491,142 $398,178 
Asia61,812 60,245 121,829 112,101 
Europe81,540 46,818 160,074 92,557 
Rest of the world6,170 3,406 11,637 6,464 
Total sales$406,705 $328,164 $784,682 $609,300 
Remaining performance obligations represent the transaction price of contracts, generally considered to be the customer's purchase order, for which work has not been performed or has been partially performed. The Company has elected to exclude remaining performance obligations with an original expected duration of one year or less. Revenue expected to be recognized from remaining performance obligations as of July 1, 2022 for contracts with a duration more than one year was approximately $5,999, all of which is expected to be recognized during fiscal years 2023 to 2027.
v3.22.2
Inventory (Tables)
 6 Months Ended
Jul. 01, 2022
Inventory Disclosure [Abstract]  
Inventory Inventory consisted of the following:
July 1,December 31,
20222021
Raw materials$247,358 $200,460 
Work-in-process12,445 7,539 
Finished goods89,247 71,838 
Total inventory$349,050 $279,837 
v3.22.2
Prepaids and Other Current Assets (Tables)
 6 Months Ended
Jul. 01, 2022
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]  
Schedule of Other Current Assets Prepaids and other current assets consisted of the following:
July 1,December 31,
20222021
Prepaid chassis deposits$235,362 $98,618 
Advanced payments and prepaid contracts19,011 14,024 
Other current assets13,350 10,465 
Total$267,723 $123,107 
v3.22.2
Property, Plant and Equipment, net (Tables)
 6 Months Ended
Jul. 01, 2022
Property, Plant and Equipment [Abstract]  
Property, Plant and Equipment, net Property, plant and equipment, net consisted of the following:
July 1,December 31,
20222021
Building and building improvements$72,701 $72,088 
Information systems, office equipment and furniture23,325 20,988 
Internal-use computer software26,612 25,700 
Land and land improvements15,471 15,663 
Leasehold improvements17,511 22,835 
Machinery and manufacturing equipment113,398 106,628 
Transportation equipment8,716 7,372 
Total277,734 271,274 
Less: accumulated depreciation and amortization(83,133)(79,271)
Property, plant and equipment, net$194,601 $192,003 
Long-lived Assets by Geographic Location The Company’s long-lived assets by geographic location are as follows:
July 1,December 31,
20222021
United States$163,955 $161,451 
International30,646 30,552 
Total long-lived assets$194,601 $192,003 
v3.22.2
Leases (Tables)
 6 Months Ended
Jul. 01, 2022
Leases [Abstract]  
Lease Costs Operating lease costs consisted of the following:
For the three months endedFor the six months ended
July 1, 2022July 2, 2021July 1, 2022July 2, 2021
Operating lease cost$2,832 $1,983 $5,655 $4,053 
Other lease costs (1)1,272 397 1,990 622 
Total$4,104 $2,380 $7,645 $4,675 
(1) Includes short-term leases and variable lease costs. The Company elected a policy exclusion permitting leases with an original lease term of less than one year to be excluded from the right-of-use assets and lease liabilities.
Supplemental Balance Sheet Disclosure Supplemental balance sheet information related to the Company's operating leases is as follows:
Balance Sheet ClassificationJuly 1, 2022
Operating lease right-of-use assetsLease right-of-use assets$42,606 
Current lease liabilitiesAccrued expenses$9,721 
Non-current lease liabilitiesOther liabilities$31,922 
Maturity of Lease Liabilities Maturities of lease liabilities by fiscal year for the Company's operating leases are as follows:
For fiscal yearTotal future payments
2022 (remaining six months)$5,198 
202310,178 
20248,981 
20256,723 
20264,960 
Thereafter7,788 
Total lease payments43,828 
Less: imputed interest(2,185)
Present value of lease liabilities41,643 
Less: current portion(9,721)
Lease liabilities less current portion$31,922 
v3.22.2
Accrued Expenses (Tables)
 6 Months Ended
Jul. 01, 2022
Payables and Accruals [Abstract]  
Accrued Expenses Accrued expenses consisted of the following:
July 1,December 31,
20222021
Payroll and related expenses$27,922 $32,968 
Current portion of lease liabilities9,721 9,095 
Warranty16,088 15,510 
Income tax payable28,927 34,845 
Accrued sales rebate12,183 8,568 
Current portion of non-controlling interest buyout liability900 2,700 
Other accrued expenses15,105 8,692 
Total$110,846 $112,378 
Activity Related to Warranties Activity related to warranties is as follows:
For the three months endedFor the six months ended
July 1, 2022July 2, 2021July 1, 2022July 2, 2021
Beginning warranty liability$15,993 $11,521 $15,510 $9,835 
Charge to cost of sales2,322 4,070 5,449 7,331 
Fair value of warranty assumed in acquisition— 150 — 150 
Costs incurred(2,227)(2,091)(4,871)(3,666)
Ending warranty liability$16,088 $13,650 $16,088 $13,650 
v3.22.2
Debt (Tables)
 6 Months Ended
Jul. 01, 2022
Debt Disclosure [Abstract]  
Summary of line of credit under 2022 Credit Facility
The following table summarizes the line of credit under the 2022 Credit Facility:
July 1,
2022
Amount outstanding$410,000 
Standby letters of credit15,000 
Available borrowing capacity225,000 
Total borrowing capacity$650,000 
Maturity dateApril 5, 2027
v3.22.2
Derivative Instruments and Hedging Activities (Tables)
 6 Months Ended
Jul. 01, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Interest Rate Derivatives
As of July 1, 2022 and December 31, 2021, the Company had the following interest rate swap contracts:
July 1, 2022December 31, 2021
Effective DateTermination DateNotional AmountUnrealized Gain in AOCIUnrealized Gain in AOCI
September 2, 2020June 11, 2021$200,000$233 $276 
July 2, 2021April 5, 2022$200,00011,263 3,583 
April 5, 2022April 5, 2027$100,0001,018 — 
Total $12,514 $3,859 
v3.22.2
Fair Value Measurements and Financial Instruments (Tables)
 6 Months Ended
Jul. 01, 2022
Fair Value Disclosures [Abstract]  
Liabilities Measured at Fair Value on Recurring Basis
The following table presents the Company's hierarchy for its assets and liabilities measured at fair value on a recurring basis as of the following periods:
July 1, 2022December 31, 2021
Level 1Level 2Level 3TotalLevel 1Level 2Level 3Total
Assets:
Interest Rate Swap$— $1,018 $— $1,018 $— $3,583 $— $3,583 
Total assets measured at fair value$— $1,018 $— $1,018 $— $3,583 $— $3,583 
Liabilities:
Prior Credit Facility$— $— $— $— $— $378,453 $— $378,453 
Total liabilities measured at fair value$— $— $— $— $— $378,453 $— $378,453 
v3.22.2
Stockholders' Equity (Tables)
 6 Months Ended
Jul. 01, 2022
Share-Based Payment Arrangement [Abstract]  
Summary of Stock-based Compensation Allocation
The following table summarizes the allocation of stock-based compensation in the accompanying Condensed Consolidated Statements of Income:
For the three months endedFor the six months ended
July 1, 2022July 2, 2021July 1, 2022July 2, 2021
Cost of sales$231 $190 $409 $311 
Sales and marketing227 213 453 365 
Research and development262 238 490 425 
General and administrative3,341 2,733 5,738 4,767 
Total$4,061 $3,374 $7,090 $5,868 
Summary of Unvested Restricted Stock Units (RSU) Activity
The following table summarizes the activity for the Company's unvested RSUs for the six months ended July 1, 2022:
Unvested RSUs
Number of shares outstandingWeighted-average grant date fair value
Unvested at December 31, 2021338 $76.30 
Granted141 $95.24 
Canceled(9)$83.56 
Vested(154)$72.81 
Unvested at July 1, 2022316 $86.24 
Summary of Unvested PSUs Activity
The following table summarizes the activity for the Company's unvested PSUs for the six months ended July 1, 2022:
Unvested PSUs
Number of shares outstandingWeighted-average grant date fair value
Unvested at December 31, 202129 $141.46 
Granted37 $120.90 
Unvested at July 1, 202266 $129.94 
v3.22.2
Income Taxes (Tables)
 6 Months Ended
Jul. 01, 2022
Income Tax Disclosure [Abstract]  
Schedule of Components of Income Tax Expense (Benefit)
For the three months endedFor the six months ended
July 1, 2022July 2, 2021July 1, 2022July 2, 2021
Provision for income taxes$12,464 $6,767 $14,900 $10,774 
Effective tax rates18.9 %13.3 %12.8 %11.6 %
v3.22.2
Revenues - Sales by Product Category (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jul. 01, 2022
Jul. 02, 2021
Jul. 01, 2022
Jul. 02, 2021
Disaggregation of Revenue [Line Items]        
Total sales $ 406,705 $ 328,164 $ 784,682 $ 609,300
Powered Vehicles        
Disaggregation of Revenue [Line Items]        
Total sales 229,032 189,419 437,139 352,166
Specialty Sports        
Disaggregation of Revenue [Line Items]        
Total sales $ 177,673 $ 138,745 $ 347,543 $ 257,134
v3.22.2
Revenues - Sales by Sales Channel (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jul. 01, 2022
Jul. 02, 2021
Jul. 01, 2022
Jul. 02, 2021
Disaggregation of Revenue [Line Items]        
Total sales $ 406,705 $ 328,164 $ 784,682 $ 609,300
OEM        
Disaggregation of Revenue [Line Items]        
Total sales 223,110 172,547 424,375 324,027
Aftermarket        
Disaggregation of Revenue [Line Items]        
Total sales $ 183,595 $ 155,617 $ 360,307 $ 285,273
v3.22.2
Revenues - Sales by Geographic Location (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jul. 01, 2022
Jul. 02, 2021
Jul. 01, 2022
Jul. 02, 2021
Disaggregation of Revenue [Line Items]        
Total sales $ 406,705 $ 328,164 $ 784,682 $ 609,300
North America        
Disaggregation of Revenue [Line Items]        
Total sales 257,183 217,695 491,142 398,178
Asia        
Disaggregation of Revenue [Line Items]        
Total sales 61,812 60,245 121,829 112,101
Europe        
Disaggregation of Revenue [Line Items]        
Total sales 81,540 46,818 160,074 92,557
Rest of the world        
Disaggregation of Revenue [Line Items]        
Total sales $ 6,170 $ 3,406 $ 11,637 $ 6,464
v3.22.2
Inventory (Details) - USD ($)
$ in Thousands
Jul. 01, 2022
Dec. 31, 2021
Inventory Disclosure [Abstract]    
Raw materials $ 247,358 $ 200,460
Work-in-process 12,445 7,539
Finished goods 89,247 71,838
Total inventory $ 349,050 $ 279,837
v3.22.2
Prepaids and Other Current Assets (Details) - USD ($)
$ in Thousands
Jul. 01, 2022
Dec. 31, 2021
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]    
Prepaid chassis deposits $ 235,362 $ 98,618
Advanced payments and prepaid contracts 19,011 14,024
Other current assets 13,350 10,465
Total $ 267,723 $ 123,107
v3.22.2
Property, Plant and Equipment, net - Property, Plant and Equipment (Details) - USD ($)
$ in Thousands
Jul. 01, 2022
Dec. 31, 2021
Property, Plant and Equipment [Line Items]    
Property, plant and equipment gross $ 277,734 $ 271,274
Less: accumulated depreciation and amortization (83,133) (79,271)
Property, plant and equipment, net 194,601 192,003
Building and building improvements    
Property, Plant and Equipment [Line Items]    
Property, plant and equipment gross 72,701 72,088
Information systems, office equipment and furniture    
Property, Plant and Equipment [Line Items]    
Property, plant and equipment gross 23,325 20,988
Internal-use computer software    
Property, Plant and Equipment [Line Items]    
Property, plant and equipment gross 26,612 25,700
Land and land improvements    
Property, Plant and Equipment [Line Items]    
Property, plant and equipment gross 15,471 15,663
Leasehold improvements    
Property, Plant and Equipment [Line Items]    
Property, plant and equipment gross 17,511 22,835
Machinery and manufacturing equipment    
Property, Plant and Equipment [Line Items]    
Property, plant and equipment gross 113,398 106,628
Transportation equipment    
Property, Plant and Equipment [Line Items]    
Property, plant and equipment gross $ 8,716 $ 7,372
v3.22.2
Property, Plant and Equipment, net - Long-lived Assets by Geographic Location (Details) - USD ($)
$ in Thousands
Jul. 01, 2022
Dec. 31, 2021
Property, Plant and Equipment [Line Items]    
Total long-lived assets $ 194,601 $ 192,003
United States    
Property, Plant and Equipment [Line Items]    
Total long-lived assets 163,955 161,451
International    
Property, Plant and Equipment [Line Items]    
Total long-lived assets $ 30,646 $ 30,552
v3.22.2
Leases - Narrative (Details)
 6 Months Ended
Jul. 01, 2022
Lessee, Lease, Description [Line Items]  
Renewal term 5 years
Option to terminate, term 1 year
Weighted-average remaining lease term 5 years 2 months 15 days
Weighted-average incremental borrowing rate 2.06%
Minimum  
Lessee, Lease, Description [Line Items]  
Contract term 1 year
Maximum  
Lessee, Lease, Description [Line Items]  
Contract term 10 years
v3.22.2
Leases - Lease Costs (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jul. 01, 2022
Jul. 02, 2021
Jul. 01, 2022
Jul. 02, 2021
Leases [Abstract]        
Operating lease cost $ 2,832 $ 1,983 $ 5,655 $ 4,053
Other lease costs 1,272 397 1,990 622
Total $ 4,104 $ 2,380 $ 7,645 $ 4,675
v3.22.2
Leases - Supplemental Balance Sheet Information (Details) - USD ($)
$ in Thousands
Jul. 01, 2022
Dec. 31, 2021
Leases [Abstract]    
Operating lease right-of-use assets $ 42,606 $ 38,752
Current lease liabilities 9,721 $ 9,095
Non-current lease liabilities $ 31,922  
v3.22.2
Leases - Maturity of Lease Liabilities (Details) - USD ($)
$ in Thousands
Jul. 01, 2022
Dec. 31, 2021
Leases [Abstract]    
2022 (remaining six months) $ 5,198  
2023 10,178  
2024 8,981  
2025 6,723  
2026 4,960  
Thereafter 7,788  
Total lease payments 43,828  
Less: imputed interest (2,185)  
Present value of lease liabilities 41,643  
Less: current portion (9,721) $ (9,095)
Lease liabilities less current portion $ 31,922  
v3.22.2
Accrued Expenses - Accrued Expense Components (Details) - USD ($)
$ in Thousands
Jul. 01, 2022
Apr. 01, 2022
Dec. 31, 2021
Jul. 02, 2021
Apr. 02, 2021
Jan. 01, 2021
Payables and Accruals [Abstract]            
Payroll and related expenses $ 27,922   $ 32,968      
Current portion of lease liabilities 9,721   9,095      
Warranty 16,088 $ 15,993 15,510 $ 13,650 $ 11,521 $ 9,835
Income tax payable 28,927   34,845      
Accrued sales rebate 12,183   8,568      
Current portion of non-controlling interest buyout liability 900   2,700      
Other accrued expenses 15,105   8,692      
Accrued expenses $ 110,846   $ 112,378      
v3.22.2
Accrued Expenses - Activity Related to Warranties (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jul. 01, 2022
Jul. 02, 2021
Jul. 01, 2022
Jul. 02, 2021
Movement in Standard Product Warranty Accrual [Roll Forward]        
Beginning warranty liability $ 15,993 $ 11,521 $ 15,510 $ 9,835
Charge to cost of sales 2,322 4,070 5,449 7,331
Fair value of warranty assumed in acquisition 0 150 0 150
Costs incurred (2,227) (2,091) (4,871) (3,666)
Ending warranty liability $ 16,088 $ 13,650 $ 16,088 $ 13,650
v3.22.2
Debt - Narrative (Details) - USD ($)
$ in Thousands
 6 Months Ended
Apr. 05, 2022
Jul. 01, 2022
Jun. 30, 2019
Debt Instrument [Line Items]      
Debt issuance costs $ 1,980    
Unamortized debt issuance costs 4,473    
Weighted average interest rate on outstanding borrowings   2.54%  
Interest rate swap      
Debt Instrument [Line Items]      
Amount of interest rate swap $ 100,000    
LIBOR      
Debt Instrument [Line Items]      
Basis spread on variable rate (as a percent)   1.11%  
Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate      
Debt Instrument [Line Items]      
Basis spread on variable rate (as a percent) 0.10%    
Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Minimum      
Debt Instrument [Line Items]      
Basis spread on variable rate (as a percent) 1.00%    
Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Maximum      
Debt Instrument [Line Items]      
Basis spread on variable rate (as a percent) 2.00%    
Fed Funds Effective Rate Overnight Index Swap Rate      
Debt Instrument [Line Items]      
Basis spread on variable rate (as a percent) 0.50%    
Term Loan      
Debt Instrument [Line Items]      
Term loan amount     $ 400,000
Line of Credit      
Debt Instrument [Line Items]      
Proceeds from Lines of Credit $ 475,000    
Revolving Credit Facility      
Debt Instrument [Line Items]      
Credit facility   $ 650,000  
Standby letters of credit   $ 15,000  
Revolving Credit Facility | Line of Credit | Base Rate      
Debt Instrument [Line Items]      
Basis spread on variable rate (as a percent) 1.00%    
Revolving Credit Facility | Line of Credit | Base Rate | Minimum      
Debt Instrument [Line Items]      
Basis spread on variable rate (as a percent) 0.00%    
Revolving Credit Facility | Line of Credit | Base Rate | Maximum      
Debt Instrument [Line Items]      
Basis spread on variable rate (as a percent) 1.00%    
Letter of Credit      
Debt Instrument [Line Items]      
Credit facility $ 650,000    
v3.22.2
Debt - Summary of Amended and Restated Credit Facility (Details) - USD ($)
$ in Thousands
Jul. 01, 2022
Dec. 31, 2021
Debt Instrument [Line Items]    
Amount outstanding $ 410,000 $ 0
Revolving Credit Facility    
Debt Instrument [Line Items]    
Amount outstanding 410,000  
Standby letters of credit 15,000  
Available borrowing capacity 225,000  
Total borrowing capacity $ 650,000  
v3.22.2
Commitment and Contingencies (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jul. 01, 2022
Jul. 02, 2021
Jul. 01, 2022
Jul. 02, 2021
Jul. 22, 2020
Nov. 30, 2017
Loss Contingencies [Line Items]            
Installment payment, 2020     $ 6,556      
Installment payment, 2021     4,550      
Installment payment, 2022     2,700      
Payments for Repurchase of Redeemable Noncontrolling Interest $ 900 $ 900 $ 1,800 $ 2,750    
Shares held in escrow (in shares)     136,000      
Remaining liability     $ 900      
Shares released (in shares) 19,000          
SCA            
Loss Contingencies [Line Items]            
Call option to acquire remaining interest         20.00% 20.00%
v3.22.2
Derivatives and Hedging - Schedule of Interest Rate Derivatives (Details) - USD ($)
$ in Thousands
Jul. 01, 2022
Dec. 31, 2021
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Unrealized Gain in AOCI $ 12,514 $ 3,859
Interest Rate Swap September 2020 To June 2021    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Notional Amount 200,000  
Unrealized Gain in AOCI 233 276
Interest Rate Swap July 2021 To March 2025    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Notional Amount 200,000  
Unrealized Gain in AOCI $ 11,263 $ 3,583
v3.22.2
Derivatives and Hedging (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jul. 01, 2022
Jul. 02, 2021
Jul. 01, 2022
Jul. 02, 2021
Apr. 05, 2022
Dec. 31, 2021
Jun. 11, 2021
Derivative Instruments and Hedging Activities Disclosures [Line Items]              
Unrealized gain in AOCI on terminated swap $ 12,514   $ 12,514     $ 3,859  
Other comprehensive income (loss), derivatives gain (loss) 922 $ (525) 6,733 $ 1,620      
Interest rate swap              
Derivative Instruments and Hedging Activities Disclosures [Line Items]              
Notional amount terminated             $ 200,000
Unrealized gain in AOCI on terminated swap             $ 324
Other comprehensive income (loss), derivatives gain (loss) 922 $ 6,732          
Losses to be reclassified over the next twelve months $ 4,252   $ 4,252        
Amount of interest rate swap         $ 100,000    
v3.22.2
Fair Value Measurements and Financial Instruments - Liabilities at Fair Value on Recurring Basis (Details) - USD ($)
$ in Thousands
Jul. 01, 2022
Dec. 31, 2021
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Total assets measured at fair value $ 1,018 $ 3,583
Prior Credit Facility 0 378,453
Total liabilities measured at fair value 0 378,453
Interest rate swap    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Interest Rate Swap, asset 1,018 3,583
Level 1    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Total assets measured at fair value 0 0
Prior Credit Facility 0 0
Total liabilities measured at fair value 0 0
Level 1 | Interest rate swap    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Interest Rate Swap, asset 0 0
Level 2    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Total assets measured at fair value 1,018 3,583
Prior Credit Facility   378,453
Total liabilities measured at fair value 0 378,453
Level 2 | Interest rate swap    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Interest Rate Swap, asset 1,018 3,583
Level 3    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Total assets measured at fair value 0 0
Prior Credit Facility 0 0
Total liabilities measured at fair value 0 0
Level 3 | Interest rate swap    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Interest Rate Swap, asset $ 0 $ 0
v3.22.2
Stockholders' Equity - Narrtive (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jan. 01, 2021
Jul. 01, 2022
Jul. 02, 2021
Jul. 01, 2022
Jul. 02, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Allocated share-based compensation expense $ 421 $ 4,061 $ 3,374 $ 7,090 $ 5,868
Number of stock options exercised (in shares)       33,000  
Anti-dilutive shares excluded from calculation of diluted earnings per share       152,000  
RSUs          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Unrecognized stock-based compensation expense related to RSUs   24,281   $ 24,281  
Period for recognition of unrecognized stock-based compensation expense       2 years 2 months 23 days  
PSU          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Unrecognized stock-based compensation expense related to RSUs   $ 11,191   $ 11,191  
Period for recognition of unrecognized stock-based compensation expense       2 years 7 days  
PSU | Minimum          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Performance period       2  
Performance goal, percentage       0.00%  
PSU | Maximum          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Performance period       3  
Performance goal, percentage       200.00%  
v3.22.2
Stockholders' Equity - Equity Incentive Plans (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jan. 01, 2021
Jul. 01, 2022
Jul. 02, 2021
Jul. 01, 2022
Jul. 02, 2021
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]          
Allocated share-based compensation expense $ 421 $ 4,061 $ 3,374 $ 7,090 $ 5,868
Cost of sales          
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]          
Allocated share-based compensation expense   231 190 409 311
Sales and marketing          
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]          
Allocated share-based compensation expense   227 213 453 365
Research and development          
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]          
Allocated share-based compensation expense   262 238 490 425
General and administrative          
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]          
Allocated share-based compensation expense   $ 3,341 $ 2,733 $ 5,738 $ 4,767
v3.22.2
Stockholders' Equity - Unvested RSU Activity (Details)
 6 Months Ended
Jul. 01, 2022
$ / shares
shares
Number of shares outstanding  
Granted (in shares) | shares 141,000
Canceled (in shares) | shares (9,000)
Vested (in shares) | shares (154,000)
Unvested at end of period (in shares) | shares 316,000
Weighted-average grant date fair value  
Granted (in usd per share) | $ / shares $ 95.24
Forfeited (in usd per share) | $ / shares 83.56
Vested (in usd per share) | $ / shares 72.81
Unvested at end of period (in usd per share) | $ / shares $ 86.24
RSUs  
Number of shares outstanding  
Unvested at beginning of period (in shares) | shares 338,000
Weighted-average grant date fair value  
Unvested at beginning of period (in usd per share) | $ / shares $ 76.30
v3.22.2
Stockholders' Equity - Unvested PSU Activity (Details)
 6 Months Ended
Jul. 01, 2022
$ / shares
shares
Number of shares outstanding  
Granted (in shares) | shares 141,000
Unvested at end of period (in shares) | shares 316,000
Weighted-average grant date fair value  
Granted (in usd per share) | $ / shares $ 95.24
Unvested at end of period (in usd per share) | $ / shares $ 86.24
PSU  
Number of shares outstanding  
Unvested at beginning of period (in shares) | shares 29,000
Granted (in shares) | shares 37,000
Unvested at end of period (in shares) | shares 66,000
Weighted-average grant date fair value  
Unvested at beginning of period (in usd per share) | $ / shares $ 141.46
Granted (in usd per share) | $ / shares 120.90
Unvested at end of period (in usd per share) | $ / shares $ 129.94
v3.22.2
Income Taxes - Components (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jul. 01, 2022
Jul. 02, 2021
Jul. 01, 2022
Jul. 02, 2021
Income Tax Disclosure [Abstract]        
Provision for income taxes $ 12,464 $ 6,767 $ 14,900 $ 10,774
Effective tax rates 18.90% 13.30% 12.80% 11.60%
v3.22.2
Income Taxes - Narrative (Details)
 3 Months Ended 6 Months Ended
Jul. 01, 2022
Jul. 02, 2021
Jul. 01, 2022
Jul. 02, 2021
Income Tax Disclosure [Abstract]        
Effective tax rates 18.90% 13.30% 12.80% 11.60%
Federal statutory rate 21.00%      
v3.22.2
Related Party Transactions (Details) - SCA - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jul. 22, 2020
Jul. 01, 2022
Jul. 02, 2021
Related Party Transaction [Line Items]      
Purchase of vehicle parts   $ 339 $ 262
Sale of unfit packages   253 130
Related parties, accounts payable   37 143
Related parties, accounts receivable   $ 40 $ 8
Call option to acquire remaining interest 20.00%    
Business combination, consideration transferred $ 24,975    
v3.22.2
Acquisitions - Narrative (Details) - USD ($)
$ in Thousands
Dec. 30, 2021
May 25, 2021
May 21, 2021
Jul. 01, 2022
Dec. 31, 2021
Business Acquisition [Line Items]          
Goodwill       $ 323,965 $ 323,299
Manifest Joy LLC          
Business Acquisition [Line Items]          
Business combination, consideration transferred   $ 15,275      
Liabilities assumed   1,057      
Intangible assets   5,560      
Goodwill   $ 10,772      
Sola Sport Pty Ltd.          
Business Acquisition [Line Items]          
Business combination, consideration transferred     $ 486    
Shock Therapy LLC          
Business Acquisition [Line Items]          
Business combination, consideration transferred $ 36,834        
Liabilities assumed 5,244        
Intangible assets 7,086        
Goodwill $ 24,504        
Shock Therapy LLC | Minimum          
Business Acquisition [Line Items]          
Useful life 5 years