FOX FACTORY HOLDING CORP, 10-K filed on 2/23/2023
Annual Report
v3.22.4
Cover page - USD ($)
 12 Months Ended
Dec. 30, 2022
Feb. 16, 2023
Jul. 01, 2022
Cover [Abstract]      
Document Type 10-K    
Document Annual Report true    
Current Fiscal Year End Date --12-30    
Document Period End Date Dec. 30, 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 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     $ 2,691,667,941
Entity Common Stock, Shares Outstanding   42,269,840  
Documents Incorporated by Reference Portions of the registrant’s Definitive Proxy Statement for the 2023 Annual Meeting of Stockholders to be filed with the Securities and Exchange Commission pursuant to Regulation 14A not later than 120 days after the end of the fiscal year covered by this Annual Report on Form 10-K are incorporated by reference in Part III, Items 10-14 of this Annual Report on Form 10-K.    
Amendment Flag false    
Document Fiscal Year Focus 2022    
Document Fiscal Period Focus FY    
Entity Central Index Key 0001424929    
Auditor Name GRANT THORNTON LLP    
Auditor Location San Francisco, California    
Auditor Firm ID 248    
v3.22.4
Audit Information
 12 Months Ended
Dec. 30, 2022
Audit Information [Abstract]  
Auditor Name GRANT THORNTON LLP
Auditor Location San Francisco, California
Auditor Firm ID 248
v3.22.4
Consolidated Balance Sheets - USD ($)
$ in Thousands
Dec. 30, 2022
Dec. 31, 2021
Current assets:    
Cash and cash equivalents $ 145,250 $ 179,686
Accounts receivable (net of allowances of $443 and $410 at December 30, 2022 and December 31, 2021, respectively) 200,440 142,040
Inventory 350,620 279,837
Prepaids and other current assets 101,364 123,107
Total current assets 797,674 724,670
Property, plant and equipment, net 202,215 192,003
Lease right-of-use assets 48,096 38,752
Deferred tax assets 57,339 34,998
Goodwill 323,978 323,299
Intangibles, net 178,980 197,021
Other assets 10,054 4,986
Total assets 1,618,336 1,515,729
Current liabilities:    
Accounts payable 131,160 99,984
Accrued expenses 127,729 112,378
Current portion of long-term debt 0 17,500
Total current liabilities 258,889 229,862
Line of credit 200,000 0
Long-term debt, less current portion 0 360,953
Other liabilities 38,061 30,832
Total liabilities 496,950 621,647
Commitments and contingent liabilities (Refer to Note 12. Commitments and Contingent Liabilities)
Stockholders’ equity    
Preferred stock, $0.001 par value — 10,000 authorized and no shares issued or outstanding as of December 30, 2022 and December 31, 2021 0 0
Common stock, $0.001 par value — 90,000 authorized; 43,160 shares issued and 42,270 outstanding as of December 30, 2022; 43,010 shares issued and 42,120 outstanding as of December 31, 2021 42 42
Additional paid-in capital 356,239 344,119
Treasury stock, at cost; 890 common shares as of December 30, 2022 and December 31, 2021 (13,754) (13,754)
Accumulated other comprehensive income 14,782 4,876
Retained earnings 764,077 558,799
Total stockholders’ equity 1,121,386 894,082
Total liabilities and stockholders’ equity $ 1,618,336 $ 1,515,729
v3.22.4
Consolidated Balance Sheets (Parenthetical) - USD ($)
$ in Thousands
Dec. 30, 2022
Dec. 31, 2021
Statement of Financial Position [Abstract]    
Accounts receivable, allowance for doubtful accounts $ 443 $ 410
Preferred stock, par value (in dollars per share) $ 0.001 $ 0.001
Preferred stock, shares authorized 10,000,000 10,000,000
Preferred stock, shares issued 0 0
Preferred stock, shares outstanding 0 0
Common stock, par value (in dollars per share) $ 0.001 $ 0.001
Common stock, shares authorized 90,000,000 90,000,000
Common stock, shares issued 43,160,000 43,010,000
Common stock, shares outstanding 42,270,000 42,120,000
Treasury stock, shares 890,000 890,000
v3.22.4
Consolidated Statements of Income - USD ($)
shares in Thousands, $ in Thousands
 12 Months Ended
Dec. 30, 2022
Dec. 31, 2021
Jan. 01, 2021
Income Statement [Abstract]      
Sales $ 1,602,491 $ 1,299,064 $ 890,554
Cost of sales 1,071,148 866,732 601,007
Gross profit 531,343 432,332 289,547
Operating expenses:      
Sales and marketing 90,801 70,925 52,214
Research and development 56,205 46,567 34,292
General and administrative 116,103 97,241 71,309
Amortization of purchased intangibles 21,537 20,685 17,583
Total operating expenses 284,646 235,418 175,398
Income from operations 246,697 196,914 114,149
Interest and other expense, net:      
Interest expense 8,939 8,162 9,294
Other expense, net 3,994 371 325
Interest and other expense, net 12,933 8,533 9,619
Income before income taxes 233,764 188,381 104,530
Provision for income taxes 28,486 24,563 12,784
Net income 205,278 163,818 91,746
Less: net income attributable to non-controlling interest 0 0 1,072
Net income attributable to Fox stockholders $ 205,278 $ 163,818 $ 90,674
Earnings per share:      
Basic (in dollars per share) $ 4.86 $ 3.90 $ 2.25
Diluted (in dollars per share) $ 4.84 $ 3.87 $ 2.22
Weighted-average shares used to compute earnings per share:      
Basic (in shares) 42,232 42,022 40,229
Diluted (in shares) 42,384 42,366 40,801
v3.22.4
Consolidated Statements of Comprehensive Income - USD ($)
$ in Thousands
 12 Months Ended
Dec. 30, 2022
Dec. 31, 2021
Jan. 01, 2021
Statement of Comprehensive Income [Abstract]      
Net income $ 205,278 $ 163,818 $ 91,746
Other comprehensive income      
Interest rate swap, net of tax effects 14,824 3,644 (699)
Foreign currency translation adjustments, net of tax effects (4,918) 164 1,617
Other comprehensive income 9,906 3,808 918
Comprehensive income 215,184 167,626 92,664
Less: comprehensive income attributable to non-controlling interest 0 0 1,072
Comprehensive income attributable to Fox stockholders $ 215,184 $ 167,626 $ 91,592
v3.22.4
Consolidated Statements of Stockholders' Equity and Redeemable Non-controlling Interest - USD ($)
$ in Thousands
Total
Common Stock
Treasury
Additional paid-in capital
Accumulated other comprehensive income
Retained earnings
Beginning Balance (in shares) at Jan. 03, 2020   39,448,000 890,000      
Beginning Balance at Jan. 03, 2020 $ 422,200 $ 39 $ (13,754) $ 123,274 $ 150 $ 312,491
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)   348,000        
Issuance of common stock under equity compensation plans, net of shares repurchased for income tax withholding (4,341) $ 1   (4,342)    
Issuance of common stock, net (in shares)   2,760,000        
Issuance of common stock, net 198,235 $ 2   198,233    
Issuance of stock for business acquisition 322     322    
Adjustment to the fair value of non-controlling interest (8,184)         (8,184)
Redeemable non-controlling interest (in shares)   136,000        
Redeemable non-controlling interest 11,169     11,169    
Stock-based compensation expense 8,178     8,178    
Other comprehensive income 918       918  
Net income 90,674         90,674
Ending Balance (in shares) at Jan. 01, 2021   42,692,000 890,000      
Ending Balance at Jan. 01, 2021 719,171 $ 42 $ (13,754) 336,834 1,068 394,981
Beginning Balance at Jan. 03, 2020 15,719          
Increase (Decrease) in Temporary Equity [Roll Forward]            
Temporary equity, net income 1,072          
Ending Balance at Jan. 01, 2021 0          
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Temporary Equity, redeemable non-controlling interest (24,975)          
Issuance of common stock under equity compensation plans, net of shares repurchased for income tax withholding (in shares)   318,000        
Issuance of common stock under equity compensation plans, net of shares repurchased for income tax withholding (7,050)     (7,050)    
Stock-based compensation expense 14,335     14,335    
Other comprehensive income 3,808       3,808  
Net income $ 163,818         163,818
Ending Balance (in shares) at Dec. 31, 2021 42,120,000 43,010,000 890,000      
Ending Balance at Dec. 31, 2021 $ 894,082 $ 42 $ (13,754) 344,119 4,876 558,799
Ending Balance at Dec. 31, 2021 0          
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)   150,000        
Issuance of common stock under equity compensation plans, net of shares repurchased for income tax withholding $ (4,231)     (4,231)    
Redeemable non-controlling interest (in shares) 136,000          
Stock-based compensation expense $ 16,351     16,351    
Other comprehensive income 9,906       9,906  
Net income $ 205,278         205,278
Ending Balance (in shares) at Dec. 30, 2022 42,270,000 43,160,000 890,000      
Ending Balance at Dec. 30, 2022 $ 1,121,386 $ 42 $ (13,754) $ 356,239 $ 14,782 $ 764,077
Ending Balance at Dec. 30, 2022 $ 0          
v3.22.4
Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
 12 Months Ended
Dec. 30, 2022
Dec. 31, 2021
Jan. 01, 2021
OPERATING ACTIVITIES:      
Net income $ 205,278 $ 163,818 $ 91,746
Adjustments to reconcile net income to net cash provided by operating activities:      
Depreciation and amortization 49,242 43,426 33,927
Stock-based compensation 16,351 13,914 8,618
Amortization of loan fees 1,086 1,631 1,543
Write off of unamortized loan origination fees 1,927 0 0
Amortization of deferred gains on prior swap settlements (3,177) (48) 0
Gain on disposal of property and equipment (1,740) (96) 0
Deferred taxes and uncertain tax positions (18,445) (17,096) (14,291)
Accounts receivable (63,957) (20,230) (18,771)
Inventory (78,537) (146,532) 7,877
Income taxes 8,717 26,789 1,192
Prepaids and other assets 18,132 (34,509) (66,400)
Accounts payable 40,493 10,304 25,892
Accrued expenses and other liabilities 11,724 21,813 11,166
Net cash provided by operating activities 187,094 63,184 82,499
INVESTING ACTIVITIES:      
Acquisition of businesses, net of cash acquired (714) (51,881) (331,531)
Acquisition of other assets (3,500) 0 (250)
Purchases of property and equipment (43,701) (54,846) (56,744)
Proceeds from sale of property and equipment 3,180 1,781 0
Net cash used in investing activities (44,735) (104,946) (388,525)
FINANCING ACTIVITIES:      
Proceeds from line of credit, net of origination fees 602,356 37,931 225,125
Payments on line of credit (404,336) (37,931) (293,125)
Proceeds from issuance of debt, net of origination fees 0 0 392,385
Repayment of term debt upon refinancing of Prior Credit Facility (382,500) (12,500) (5,000)
Proceeds from sale of common stock, net 0 0 198,236
Installment on purchase of non-controlling interest (2,700) (4,550) (6,556)
Repurchases from stock compensation program, net (4,231) (7,050) (4,343)
Proceeds from termination of swap agreement 12,270 324 0
Net cash (used in) provided by financing activities (179,141) (23,776) 506,722
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS 2,346 (540) 1,332
CHANGE IN CASH AND CASH EQUIVALENTS (34,436) (66,078) 202,028
CASH AND CASH EQUIVALENTS—Beginning of year 179,686 245,764 43,736
CASH AND CASH EQUIVALENTS—End of year 145,250 179,686 245,764
Supplemental Cash Flow Information [Abstract]      
Income taxes 37,493 14,980 26,228
Cash paid for interest, net of capitalized interest 9,922 6,384 7,171
Cash paid for amounts included in the measurement of lease liabilities 10,499 8,747 7,095
Right-of-use assets obtained in exchange for lease obligations 21,167 20,289 14,178
Acquisition of non-controlling interest in exchange for equity and installment payments 0 0 18,419
Capital expenditures included in accounts payable $ 2,049 $ 3,491 $ 6,997
v3.22.4
Description of the Business, Basis of Presentation and Summary of Significant Accounting Policies
 12 Months Ended
Dec. 30, 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"), side-by-side vehicles ("side-by-sides"), on-road vehicles with and without off-road capabilities, off-road vehicles and trucks, all-terrain vehicles ("ATVs"), snowmobiles, and specialty vehicles and applications. 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 Annual Report on Form 10-K, 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 consolidated financial statements have been prepared in accordance with United States of America ("U.S.") generally accepted accounting principles ("GAAP").
Fiscal Year Calendar - The Company operates using a 52-53 week fiscal year calendar ending on the Friday nearest to December 31. Therefore, the financial results of certain fiscal years and quarters, which will contain 53 and 14 weeks, respectively, will not be exactly comparable to the prior and subsequent fiscal years and quarters, which contain 52 and 13 weeks, respectively. For the fiscal years 2022, 2021 and 2020, the Company's fiscal year ended on December 30, 2022, December 31, 2021 and January 1, 2021 and each had 52 weeks.
Principles of Consolidation - The consolidated financial statements include the Company and its subsidiaries. All intercompany transactions and balances have been eliminated in consolidation.
Use of Estimates - The preparation of the Company’s 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.
Foreign Currency Translation and Transaction - The functional currency of the Company’s non-U.S. entities is the local currency of the respective operations. The Company translates the financial statements of its non-U.S. entities into U.S. Dollars each reporting period for purposes of consolidation. Assets and liabilities of the Company’s foreign subsidiaries are translated at the period-end currency exchange rates while sales and expenses are translated at the average currency exchange rates in effect for the period. The effects of these translation adjustments are a component of other comprehensive income.
Foreign currency transaction losses of $3,377, $455, and $396 for the years ended December 30, 2022, December 31, 2021 and January 1, 2021, respectively, are included as a component of other income or expense.
Cash and Cash Equivalents - Cash consists of cash maintained in checking or money market accounts. All highly liquid investments purchased with an original maturity date of 90 days or less at the date of purchase are considered to be cash equivalents.
Accounts Receivable - Accounts receivable are unsecured customer obligations which generally require payment within various terms from the invoice date. The receivables are stated at the invoice amount. Financing terms vary by customer. Invoices are considered past due when payment is not received within the terms stated within the contract. Payments of accounts receivable are applied to the specific invoices identified on the customer’s remittance advice or if unspecified, generally to the earliest unpaid invoices.
The carrying amount of accounts receivable is reduced by a valuation allowance that reflects management’s best estimate of amounts that may not be collected. All accounts or portions thereof deemed to be uncollectible or that may require an excessive collection cost are written off to the allowance for credit losses.
Concentration of Credit Risk - Financial instruments, which potentially subject the Company to significant concentrations of credit risk, consist primarily of cash and accounts receivable. As of December 30, 2022 the Company held $64,859 in cash at U.S. subsidiaries and $80,391 at subsidiaries outside the U.S. The account balances may significantly exceed the insurance coverage provided on such deposits. Generally, these deposits may be redeemed upon demand and are maintained with financial institutions with reputable credit and therefore bear minimal credit risk. The Company has not experienced any losses in its uninsured accounts.
The Company mitigates its credit risk with respect to accounts receivable by performing ongoing credit evaluations and monitoring of its customers’ accounts receivable balances. The following customers accounted for 10% or more of the Company's accounts receivable balance:
 December 30,December 31,
 20222021
Customer A14%6%
Customer B9%11%
Customer C8%10%
No other customers were individually significant in any of these periods presented.
The Company depends on a limited number of vendors to supply component parts for its products. The Company purchased 34%, 32%, and 28% of its product components for the years ended December 30, 2022, December 31, 2021 and January 1, 2021, respectively, from ten vendors. As of December 30, 2022 and December 31, 2021, amounts due to these vendors represented 38% and 10% of accounts payable, respectively.
Allowance for Credit Losses - The Company records a provision for credit losses based on historical experience and a detailed assessment of the collectability of its accounts receivable. The provision is based on how long a receivable has been outstanding, taking into account the historical credit loss rate and adjusting for both current conditions and forecasts of economic conditions into that expected credit loss rate. If circumstances change, such as higher-than-expected defaults or an unexpected material adverse change in a major customer’s ability to meet its financial obligations, the Company’s estimate of the recoverability of the amounts due could be reduced by a material amount.
The following table presents the activity in the allowance for credit losses:
For the fiscal years ended
December 30December 31January 1
Allowance for credit losses:202220212021
Balance, beginning of year$410 $663 $810 
Add: bad debt expense (benefit)446 (14)103 
Less: write-offs, net of recoveries(413)(239)(250)
Balance, end of year$443 $410 $663 
Inventories - Inventories are stated at the lower of actual cost (or standard cost which generally approximates actual costs on a first-in first-out basis) or net realizable value. Cost includes raw materials and inbound freight, as well as direct labor and manufacturing overhead for products we manufacture. Net realizable value is based on current replacement cost for raw materials and on a net realizable value for finished goods. Adjustments to reduce the cost of inventory to its net realizable value are made, if required, for estimated excess, obsolescence or impaired balances.
Property and Equipment - Property and equipment are stated at cost less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the related assets. Maintenance and repairs are charged to expense as incurred, and improvements and betterments are capitalized. When assets are retired or otherwise disposed of, the cost and accumulated depreciation and amortization are removed from the balance sheet and any resulting gain or loss is reflected in operations in the period realized.
Leasehold improvements are amortized on a straight-line basis over the terms of the lease, or the useful lives of the assets, whichever is shorter. The value assigned to land associated with buildings we own is not amortized. Depreciation and amortization periods for the Company’s property and equipment are as follows:
Asset ClassificationEstimated useful life
Building and building improvements
15-39 years
Information systems, office equipment and furniture
3-7 years
Internal-use computer software
10 years
Land improvements
15 years
Machinery and manufacturing equipment
5-15 years
Transportation equipment
3-5 years
Internal-use Computer Software Costs - Costs incurred to purchase and develop computer software for internal use are capitalized during the application development and implementation stages. These software costs have been for enterprise-level business and finance software that is customized to meet the Company’s operational needs. Capitalized costs are included in property and equipment and are amortized on a straight-line basis over the estimated useful life of the software beginning when the software project is substantially complete and placed in service. The Company capitalized $4,863 in internal use computer software costs during the year ended December 30, 2022. Costs incurred during the preliminary project stage and costs for training, data conversion, and maintenance are expensed as incurred.
Impairment of Long-lived Assets - The Company periodically reviews property and equipment for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset is impaired or the estimated useful lives are no longer appropriate. If indicators of impairment exist and the undiscounted projected cash flows associated with such assets are less than the carrying amount of the assets, an impairment loss is recorded to write the assets down to their estimated fair values. Fair value is estimated based on discounted future cash flows. No impairment charges were recorded during the years ended December 30, 2022, December 31, 2021 and January 1, 2021.
Business Combinations - The Company accounts for acquisitions of entities that include inputs and processes and have the ability to create outputs as business combinations. The Company allocates the purchase price of the acquisition to the tangible assets acquired, liabilities assumed and identifiable intangible assets acquired based on their estimated fair values. The excess of the purchase price over those fair values is recorded as goodwill. Acquisition-related expenses and restructuring costs are expensed as incurred. During the measurement period, the Company records adjustments to provisional amounts recorded for assets acquired and liabilities assumed with the corresponding offset to goodwill. After the measurement period, which could be up to one year after the transaction date, subsequent adjustments are recorded to the Company’s consolidated statements of income.
Goodwill and Intangible Assets - Goodwill represents the excess of purchase price over the fair value of the net assets of businesses acquired. On an annual basis, the Company makes a qualitative assessment to determine if it is more likely than not that the fair value of the reporting unit is less than its carrying amount, including goodwill. If the Company determines that the fair value of the reporting unit is less than its carrying amount, it will perform a quantitative analysis; otherwise, no further evaluation is necessary. For the quantitative impairment assessment, the Company compares the fair value of the reporting unit to its carrying value, including goodwill. The Company determines the fair value of the reporting unit based on a weighting of income and market approaches. If the fair value of the reporting unit exceeds the carrying value of the net assets assigned to that unit, goodwill is not impaired and no further testing is performed. If the carrying value of the net assets assigned to the reporting unit exceeds the fair value of the reporting unit, then the Company will recognize a loss equal to the excess, limited to the total amount of goodwill allocated to that reporting unit. Impairments, if any, are charged directly to earnings. We completed our most recent annual impairment test in the third quarter of 2022 at which time we had a single reporting unit for purposes of assessing goodwill impairment. No impairment charges have been incurred to date.
Intangible assets including customer relationships, certain trademarks, and the Company’s core technology, are subject to amortization over their respective useful lives, and are classified in intangibles, net in the accompanying consolidated balance sheet. These intangibles are evaluated for impairment whenever events or changes in circumstances indicate that the carrying value of the assets may not be fully recoverable. If facts and circumstances indicate that the carrying value might not be recoverable, projected undiscounted net cash flows associated with the related asset or group of assets over their estimated remaining useful lives is compared against their respective carrying amounts. If an asset is found to be impaired, the impairment charge will be measured as the amount by which the carrying amount of an entity exceeds its fair value. Certain trademarks and brands are considered to be indefinite life intangibles, and are not amortized but are subject to testing for impairment annually. No impairments of intangible assets were identified in the years ended December 30, 2022, December 31, 2021 and January 1, 2021.
Self-Insurance - The Company is self-insured for its U.S. employee health and welfare benefits. The Company’s liability for self-insurance is based on claims filed and an estimate of claims incurred but not yet reported. The Company considers a number of factors, including historical claims information, when determining the amount of the accrual. Costs related to the administration of the plan and related claims are expensed as incurred. The Company has third-party insurance coverage to limit exposure for individually significant claims. The estimates for unpaid claims incurred as of December 30, 2022 and December 31, 2021 are $1,988 and $1,754 respectively, and are recorded within accrued expenses on the consolidated balance sheets.
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 side-by-sides, on-road vehicles with off-road capabilities, 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. Revenues generated from upfit packages generally do not include the vehicle chassis, as the Company is not the principal in this arrangement and the automotive dealer purchases the chassis directly from the OEM. The Company is required to place a deposit on all vehicle chassis that the dealer purchases directly from the OEM, however that deposit is refunded when the chassis is sold through to the end customer.
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.
Cost of Sales - Cost of sales primarily consists of materials and labor expense in the manufacturing of the Company’s products sold to customers. Cost of sales also includes provisions for excess and obsolete inventory, warranty costs, certain allocated costs for facilities, depreciation and other manufacturing overhead. Additionally, it includes stock-based compensation for personnel directly involved with manufacturing the Company’s product offerings.
Shipping and Handling Fees and Costs - The Company includes shipping and handling fees billed to customers in sales. Shipping costs associated with inbound freight are capitalized as part of inventory and included in cost of sales as products are sold.
Sales and Marketing - Our sales and marketing expenses include costs related to our sales, customer service and marketing personnel, including their wages, employee benefits and related stock-based compensation, and occupancy related expenses. Other significant sales and marketing expenses include commissions paid to outside sales representatives, promotional materials and products, our sales office costs, race support and sponsorships of events and athletes, advertising and promotions related to trade shows, and travel and entertainment.
Research and Development - Research and development expenses consist primarily of salaries and personnel costs, including wages, employee benefits and related stock-based compensation for the Company’s engineering, research and development teams, occupancy related expenses, fees for third party consultants, service fees, and expenses for prototype tooling and materials, travel, and supplies. The Company expenses research and development costs as incurred.
General and Administrative - General and administrative expenses include costs related to executive, finance, information technology, human resources and administrative personnel, including wages, employee benefits and related stock-based compensation expenses. The Company records professional and contract service expenses, occupancy related expenses associated with corporate locations and equipment, and legal expenses in general and administrative expenses.
Stock-Based Compensation - The Company measures stock-based compensation for all stock-based awards, including stock options and restricted stock units (“RSUs”), based on their estimated fair values on the date of the grant and recognizes the stock-based compensation cost for time-vested awards on a straight-line basis over the requisite service period. For performance-based RSUs, the number of shares ultimately expected to vest is estimated at each reporting date based on management’s expectations regarding the relevant performance criteria. To the extent shares are expected to vest, the stock-based compensation cost is recognized on a straight-line basis over the requisite service period. The fair value of each stock option granted is estimated using the Black-Scholes option-pricing model. The Company does not estimate forfeitures in recognizing stock-based compensation expense. The fair value of the RSUs is equal to the fair value of the Company’s common stock on the grant date of the award.
Income Taxes - Income taxes are computed using the asset and liability method, under which deferred tax assets and liabilities are determined based on the difference between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to affect taxable income. Operating loss and tax credit carryforwards are measured by applying currently enacted tax laws. Valuation allowances are provided when necessary to reduce net deferred tax assets to an amount that is more likely than not to be realized.
The Company accounts for global intangible low-taxed income ("GILTI") in the year the tax is incurred, rather than recognize deferred taxes for temporary basis differences expected to reverse as GILTI in future years. The net GILTI inclusion for the year ended December 30, 2022 was fully offset by foreign tax credits associated with the income.
The Company recognizes the tax effects of an uncertain tax position only if it is more likely than not to be sustained based solely on its technical merits as of the reporting date and then only in an amount more likely than not to be sustained upon review by the tax authorities. The Company considers many factors when evaluating and estimating its tax positions and tax benefits, which may require periodic adjustments and which may not accurately anticipate actual outcomes.
Advertising - Advertising costs are expensed as incurred and recorded as sales and marketing expenses on our Consolidated Statements of Income. Costs incurred for advertising totaled $4,813, $2,741, and $2,188 for the years ended December 30, 2022, December 31, 2021 and January 1, 2021, respectively.
Warranties - The Company offers limited warranties on its products generally for one to two years. The Company recognizes estimated costs related to warranty activities as a component of cost of sales upon product shipment. The estimates are based upon historical product failure rates and historical costs incurred in correcting product failures. The recorded amount is adjusted from time to time for specifically identified warranty exposures. Actual warranty expenses are charged against the Company’s estimated warranty liability when incurred. Factors that affect the Company’s liability include the number of units, historical and anticipated rates of warranty claims, and the cost per claim.
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.
Fair Value Measurements and Financial Instruments - The Financial Accounting Standards Board ("FASB") has issued Accounting Standards Codification 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, and accrued liabilities approximate their fair values due to their short-term nature. As of December 31, 2021, amounts owed 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.
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 coronavirus (“COVID-19”) outbreak. 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 pandemic; government, social, business and other actions that have been and will be taken in response to the pandemic; and the effect of the pandemic on short and long-term general economic conditions.
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 2021-12 did not have a material impact on the Company's 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. 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 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.
In September 2022, the FASB issued ASU 2022-04, Liabilities - Supplier Finance Programs (Subtopic 405): Disclosure of Supplier Finance Program Obligations. Under ASU 2022-04, the buyer in a supplier finance program is required to disclose sufficient information to allow a user of the financial statements to understand the program's nature, activity during the period, changes from period to period, and potential magnitude. The guidance is effective for interim and annual periods beginning after December 15, 2022, with early adoption permitted. These amendments will be applied retrospectively to each period in which a balance sheet is presented, except for the disclosure of rollforward information, which will be applied prospectively. The Company expects to adopt the interim disclosure requirements as applicable during the first quarter of 2023 and the annual disclosure requirements, except for the annual rollforward, in the 2023 Annual Report on Form 10-K. The Company expects to adopt the annual rollforward requirement in the 2024 Annual Report on Form 10-K. This adoption is not expected to have a material impact on our financial statements. The Company is currently evaluating ASU 2022-04 and assessing the impact this guidance will have on its consolidated financial statements and disclosures.
v3.22.4
Revenues
 12 Months Ended
Dec. 30, 2022
Revenue from Contract with Customer [Abstract]  
Revenues Revenues
The following table summarizes total sales by product category:
For the fiscal years ended
December 30December 31January 1
202220212021
Powered Vehicle products$921,520 $720,029 $523,694 
Specialty Sports products680,971 579,035 366,860 
Total sales$1,602,491 $1,299,064 $890,554 
The following table summarizes total sales by sales channel:
For the fiscal years ended
December 30December 31January 1
202220212021
OEM$909,550 $718,000 $494,068 
Aftermarket692,941 581,064 396,486 
Total sales$1,602,491 $1,299,064 $890,554 
The following table summarizes total sales generated by geographic location of the customer:
For the fiscal years ended
December 30December 31January 1
202220212021
North America$1,009,203 $811,312 $593,267 
Asia252,275 241,033 144,836 
Europe320,545 230,491 143,817 
Rest of the World20,468 16,228 8,634 
Total sales$1,602,491 $1,299,064 $890,554 
v3.22.4
Inventory
 12 Months Ended
Dec. 30, 2022
Inventory Disclosure [Abstract]  
Inventory InventoryInventory consisted of the following:
December 30,December 31,
20222021
Raw materials$247,441 $200,460 
Work-in-process9,959 7,539 
Finished goods93,220 71,838 
Total inventory$350,620 $279,837 
v3.22.4
Prepaids and Other Assets
 12 Months Ended
Dec. 30, 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:
December 30,December 31
20222021
Prepaid chassis deposits$74,013 $98,618 
Advanced payments and prepaid contracts13,598 14,024 
Other current assets13,753 10,465 
Total prepaids and other assets$101,364 $123,107 
v3.22.4
Property, Plant and Equipment, net
 12 Months Ended
Dec. 30, 2022
Property, Plant and Equipment [Abstract]  
Property, Plant and Equipment, net Property, Plant and Equipment, net
Property, plant and equipment consisted of the following:
December 30,December 31,
20222021
Building and building improvements$73,594 $72,088 
Information systems, office equipment and furniture21,655 20,988 
Internal-use computer software30,290 25,700 
Land and land improvements14,493 15,663 
Leasehold improvements20,078 22,835 
Machinery and manufacturing equipment122,748 106,628 
Transportation equipment12,450 7,372 
Total property, plant and equipment295,308 271,274 
Less: accumulated depreciation and amortization(93,093)(79,271)
Total property, plant and equipment, net$202,215 $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.
Depreciation expense was $27,705, $22,741, and $16,341 for the years ended December 30, 2022, December 31, 2021 and January 1, 2021, respectively, including $3,787, $2,492, and $2,250 of internal-use software amortization for the years ended December 30, 2022, December 31, 2021 and January 1, 2021, respectively. The Company capitalized $4,863 in internal use computer software costs during the year ended December 30, 2022.
The following table summarizes the allocation of depreciation expense in the accompanying consolidated statements of income:
For the fiscal years ended
December 30December 31January 1
202220212021
Cost of sales$13,741 $11,656 $9,266 
General and administrative11,003 8,780 4,868 
Research and development2,441 2,080 2,044 
Sales and marketing520 225 163 
Total depreciation expense$27,705 $22,741 $16,341 

The Company’s long-lived assets by geographic location are as follows:
December 30,December 31,
20222021
United States$166,544 $161,451 
International35,671 30,552 
Total long-lived assets$202,215 $192,003 
v3.22.4
Leases
 12 Months Ended
Dec. 30, 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 ten 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 5.64 years and the weighted-average incremental borrowing rate was 2.42% as of December 30, 2022.
Operating lease costs consisted of the following:
For the fiscal years ended
December 30December 31January 1
202220212021
Operating lease cost$11,209 $9,124 $7,201 
Other lease costs (1)3,638 1,122 937 
Total lease costs$14,847 $10,246 $8,138 
(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 ClassificationDecember 30, 2022
Operating lease right-of-use assetsLease right-of-use assets$48,096 
Current lease liabilitiesAccrued expenses$10,314 
Non-current lease liabilitiesOther liabilities$37,098 

Maturities of lease liabilities by fiscal year for the Company's operating leases are as follows:
For fiscal yearTotal future payments
2023$11,376 
202410,480 
20258,123 
20267,027 
20274,418 
Thereafter9,649 
Total lease payments51,073 
Less: imputed interest(3,661)
Present value of lease liabilities47,412 
Less: current portion(10,314)
Lease liabilities less current portion$37,098 
v3.22.4
Goodwill and Intangible Assets
 12 Months Ended
Dec. 30, 2022
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets Goodwill and Intangible Assets
Intangible assets, excluding goodwill, are comprised of the following:
Gross
carrying
amount
Accumulated
amortization
Net
carrying
amount
Weighted
average life
(years)
December 30, 2022
Customer relationships $195,910 $(86,023)$109,887 10
Core technology39,291 (34,412)4,879 8
Trademarks and brands, subject to amortization12,443 (3,799)8,644 9
Total$247,644 $(124,234)123,410 
Trademarks and brands, not subject to amortization55,570 
Total$178,980 
December 31, 2021
Customer relationships $195,910 $(66,240)$129,670 10
Core technology35,795 (33,989)1,806 8
Trademarks and brands, subject to amortization12,443 (2,468)9,975 9
Total$244,148 $(102,697)141,451 
Trademarks and brands, not subject to amortization55,570 
Total$197,021 
The following table summarizes the amortization of intangible assets in the accompanying consolidated statements of income:
For the fiscal years ended
December 30December 31January 1
202220212021
Amortization of intangibles$21,537 $20,685 $17,583 
Future amortization expense for finite-lived intangibles as of December 30, 2022 is as follows:
For fiscal year:Amortization Expense
2023$21,058 
202420,851 
202518,216 
202617,658 
202716,307 
Thereafter29,320 
Total expected future amortization$123,410 

Goodwill activity consisted of the following:
Balance as of December 31, 2021$323,299 
Acquisitions (Refer to Note 18. Acquisitions)
714 
Currency translation and other adjustments(35)
Balance as of December 30, 2022$323,978 
v3.22.4
Accrued Expenses
 12 Months Ended
Dec. 30, 2022
Payables and Accruals [Abstract]  
Accrued Expenses Accrued Expenses
Accrued expenses consisted of the following:
December 30,December 31,
20222021
Payroll and related expenses$38,193 $32,968 
Current portion of lease liabilities10,314 9,095 
Warranty17,071 15,510 
Income tax payable40,701 34,845 
Accrued sales rebate8,693 8,568 
NCI buyout liability— 2,700 
Other accrued expenses12,757 8,692 
Total accrued expenses$127,729 $112,378 
Activity related to warranties is as follows:
For the fiscal years ended
December 30December 31January 1
202220212021
Beginning warranty liability$15,510 $9,835 $5,649 
Charge to cost of sales11,387 13,603 6,887 
Fair value of warranty assumed in acquisition— 150 3,158 
Costs incurred(9,826)(8,078)(5,859)
Ending warranty liability$17,071 $15,510 $9,835 
v3.22.4
Related Party Transactions
 12 Months Ended
Dec. 30, 2022
Related Party Transactions [Abstract]  
Related Party Transactions Related Party Transactions
On March 11, 2020, the Company acquired 100% of the issued and outstanding stock of SCA Performance Holdings, Inc. ("SCA"). Refer to Note 18. Acquisitions for further details of this acquisition. 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 $2,015, $1,206 and $1,172 in parts and vehicles, and sold approximately $1,010, $538 and $404 of upfit packages to the dealership during the years ended December 30, 2022, December 31, 2021 and January 1, 2021, respectively. The Company had $99 and $105 in accounts payable, related to this dealership as of December 30, 2022 and December 31, 2021, respectively. The Company had $50 in accounts receivable related to this dealership as of December 31, 2021. No accounts receivable were outstanding as of December 30, 2022.
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 and stock portions were settled in quarterly installments through July 2022. Refer to Note 12. Commitments and Contingent Liabilities for additional details of this agreement.
v3.22.4
Debt
 12 Months Ended
Dec. 30, 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, June 11, 2021 and December 16, 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
On April 5, 2022, the Company entered into a new credit agreement with Wells Fargo Bank, National Association, and other named lenders (the "2022 Credit Facility"), and concurrently repaid in full and terminated the Prior Credit Facility. The 2022 Credit Facility, which matures on April 5, 2027, provides for revolving loans, swingline loans and letters of credit up to an aggregate amount of $650,000.
On April 5, 2022, the Company borrowed $475,000 under the 2022 Credit Facility, which was used to repay all outstanding amounts owed under the Prior Credit Facility and for general corporate purposes. Future advances under the 2022 Credit Facility will be used to finance working capital, capital expenditures and other general corporate purposes of the Company. To the extent not previously paid, all then-outstanding amounts under the 2022 Credit Facility are due and payable on the maturity date.
The Company paid $1,980 in debt issuance costs in connection with the 2022 Credit Facility, which were allocated to the line of credit and amortized on a straight-line basis over the term of the facility. Additionally, the Company had $4,473 of remaining unamortized debt issuance costs related to the Prior Credit Facility. The Company expensed $1,927 of the remaining unamortized debt issuance costs and allocated $2,546 to the 2022 Credit Facility.
The Company may borrow, prepay and re-borrow principal under the 2022 Credit Facility during its term. Advances under the 2022 Credit Facility can be either Adjusted Term Secured Overnight Financing Rate ("SOFR") loans or base rate loans. SOFR rate revolving loans bear interest on the outstanding principal amount thereof for each interest period at a rate per annum equal to Term SOFR for such calculation plus 0.10% plus a margin ranging from 1.00% to 2.00%. Base rate revolving loans bear interest on the outstanding principal amount thereof at a rate per annum equal to the highest of (i) Federal Funds Rate plus 0.50%, (ii) the rate of interest in effect for such day as publicly announced from time to time by the administrative agent as its “prime rate”, and (iii) Adjusted Term SOFR rate for a one-month tenor plus 1.00%, subject to the interest rate floors set forth therein, plus a margin ranging from 0.00% to 1.00%. At December 30, 2022, the one-month SOFR and three-month SOFR rates were 4.06% and 3.62%, respectively. At December 30, 2022, our weighted-average interest rate on outstanding borrowing was 4.38%.
The 2022 Credit Facility is secured by substantially all of the Company’s assets, restricts the Company's ability to make certain payments and engage in certain transactions, and requires that the Company satisfy customary financial ratios. The Company was in compliance with the covenants as of December 30, 2022.
The following table summarizes the line of credit under the 2022 Credit Facility and the Prior Credit Facility:
December 30,December 31,
20222021
Amount outstanding$200,000 $— 
Standby letters of credit$— $15,000 
Available borrowing capacity$450,000 $235,000 
Total borrowing capacity$650,000 $250,000 
Maturity dateApril 5, 2027March 11, 2025
v3.22.4
Derivatives and Hedging
 12 Months Ended
Dec. 30, 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 three-month Term SOFR over the lives of the agreements without an exchange of the underlying principal amounts.
As of December 30, 2022 and December 31, 2021, the Company had the following interest rate swap contracts:
December 30,December 31,
20222021
Effective DateTermination DateNotional AmountUnrealized Gain in AOCIUnrealized Gain in AOCI
September 2, 2020June 11, 2021$200,000$189 $276 
July 2, 2021April 5, 2022$200,0009,180 3,583 
April 5, 2022April 5, 2027$100,0005,087 — 
Total $14,456 $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 as a cash flow hedge under ASC 815, Derivatives and Hedging ("ASC 815"), and is recorded to other assets or other liabilities on the Consolidated Balance Sheets. Refer to Note 16. 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 Consolidated Statements 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 years ended December 30, 2022 and December 31, 2021 were gains of $14,824 and $3,645, respectively. The gains and losses, related to the effective portion of derivative instruments designated as cash flow hedges recognized in interest expense for the years ended December 30, 2022, December 31, 2021 and January 1, 2021 were a gain of $2,750 and losses of $600 and $115, respectively.
Over the next twelve months, the Company expects to recognize $3,256 of the $14,456 of unrealized gains currently included in accumulated other comprehensive income as an offset to interest expense.
v3.22.4
Commitments and Contingencies
 12 Months Ended
Dec. 30, 2022
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies Commitments and Contingent Liabilities
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, either individually or in the aggregate, 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 was settled in quarterly installment payments beginning in July 2020 through July 2022, which amounted to $6,556, $4,550 and $2,700 in 2020, 2021 and 2022, respectively. The Company had no remaining liability as of December 30, 2022. The stock portion of 136 shares were released from escrow on a quarterly basis starting January 2021 through July 2022. The Company released 58 and 78 shares during the years ended December 30, 2022 and December 31, 2021, respectively. The Company had no remaining shares to be released as of December 30, 2022. The exercise of the Call Option effectively canceled the put option held by Flagship, Inc.
v3.22.4
Stockholders' Equity
 12 Months Ended
Dec. 30, 2022
Share-Based Payment Arrangement [Abstract]  
Stockholders' Equity Stockholders' Equity
Secondary Stock Offering
In June 2020, the Company completed a secondary offering whereby it sold 2,760 shares of its common stock at a price of $76.00 per share for gross proceeds of $209,760. The net proceeds to the Company after underwriters' discounts and commissions of $11,015 and $511 of offering costs was $198,233. The total shares sold included 360 shares that were sold in connection with the underwriters' option to purchase additional shares. This offering was made pursuant to the Company's registration statement on Form S-3.
The Company did not incur any expenses related to secondary offerings during the fiscal years ended December 30, 2022 and December 31, 2021.
Equity Incentive Plans
The Company has outstanding awards under the following equity incentive plans: the 2008 Stock Option Plan (the "2008 Plan"), the 2008 Non-Statutory Stock Option Plan (the "2008 Non-Statutory Plan") and the 2013 Omnibus Plan (the "2013 Plan"). On February 23, 2022, the Board of Directors, upon recommendation of the Compensation Committee approved the 2022 Omnibus Plan (the "2022 Plan"), which replaced the 2013 Plan. All remaining available shares under the 2013 Plan were rolled into the 2022 Plan and made available for issuance. No further awards will be granted pursuant to the 2008 Plan, the 2008 Non-Statutory Plan. Under the 2022 Plan, the Company has the ability to issue incentive stock options, non-statutory stock options, stock appreciation rights, restricted stock awards, RSUs, performance units and/or performance shares.
The equity incentive plans are administered by the Compensation Committee of the Board of Directors of the Company, which has the authority to determine the type of incentive award, as well as the terms and conditions of the awards. Options granted under the plans have vesting periods ranging from one to ten years and expire no later than 10 years from the date of grant. RSUs generally vest over a three to four-year period with equal annual installments beginning at the end of one year and the remaining vesting annually thereafter. In addition to time-based vesting criteria, certain of our RSUs include performance-based vesting criteria. As of December 30, 2022, there were 4,889 shares reserved for issuance under the Company's equity incentive plans and 4,463 shares available for grant under the 2022 Plan. The Company generally issues new shares in connection with awards under its equity incentive plans.
Stock-Based Compensation
Compensation expense related to the Company's share-based awards for the fiscal years ended December 30, 2022, December 31, 2021, and January 1, 2021 was $16,351, $13,914, and $8,618, respectively, all of which related to RSUs. No compensation expense related to stock options was incurred during the fiscal years ended December 30, 2022, December 31, 2021, and January 1, 2021.
The following table summarizes the allocation of stock-based compensation in the accompanying consolidated statements of income:
For the fiscal years ended
December 30December 31January 1
202220212021
Cost of sales$957 $710 $625 
Sales and marketing924 803 635 
Research and development946 944 788 
General and administrative13,524 11,457 6,570 
Total$16,351 $13,914 $8,618 
As of January 1, 2021, $421 of stock-based compensation expense related to our executive bonus plan was included in Accrued Expenses on the Consolidated Balance Sheets. This amount was recognized as additional paid in capital during the year ended December 31, 2021 upon the issuance of the underlying restricted stock units.
Stock-based compensation expense capitalized to inventory was not material for the years ended December 30, 2022, December 31, 2021 and January 1, 2021.
Restricted Stock Units
The Company grants both time-based and performance-based stock awards, which also include a time-based vesting feature. Compensation expense for time-based stock awards is measured at the grant date based on the closing market price of the Company's common stock, and recognized ratably over the vesting period.
For performance-based stock awards, compensation expense is measured based on estimates of the number of shares ultimately expected to vest at each reporting date based on management’s expectations regarding the relevant performance criteria. The recognition of compensation expense associated with performance-based stock awards requires defined criteria for assessing achievement and judgment in assessing the probability of meeting the performance goals.
The following table summarizes RSU activity:
Unvested RSUs
Number of shares outstandingWeighted-average grant date fair value
Unvested at January 3, 2020427 $44.98 
Granted260 47.46 
Canceled(13)48.51 
Vested(224)37.34 
Unvested at January 1, 2021450 50.12 
Granted89 149.08 
Canceled(24)56.21 
Vested(177)49.17 
Unvested at December 31, 2021338 76.30 
Granted142 95.34 
Canceled(17)97.00 
Vested(166)73.14 
Unvested at December 30, 2022297 $87.05 
The fair value of vested RSUs was $15,140, $27,213 and $15,625 for the years ended December 30, 2022, December 31, 2021 and January 1, 2021, respectively. As of December 30, 2022, the Company had approximately $17,591 of unrecognized stock-based compensation expense related to RSUs, which will be recognized over the remaining weighted-average vesting period of approximately 1.76 years.
Performance Stock Units
During the year ended December 30, 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 fair value of performance share units 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 year ended December 30, 2022:
Unvested PSUs
Number of shares outstandingWeighted-average grant date fair value
Unvested at January 1, 2021— $— 
Granted29,000 141.46 
Unvested at December 31, 202129,000 141.46 
Granted37,000 120.90 
Canceled(4,000)126.73 
Vested(14,000)141.46 
Unvested at December 30, 202248,000 $126.69 
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 $7,178 assuming achievement at the maximum level. The unrecognized stock-based compensation expense is expected to be recognized over a weighted average period of 1.73 years.
Stock Options
The following table summarizes stock option activity:
Number of shares outstandingWeighted-average exercise priceWeighted-average remaining contractual life (years)Aggregate intrinsic value
Balance at January 3, 2020431 $5.27 2$27,814 
Options exercised(206)5.16 19,724 
Balance at January 1, 2021225 5.37 222,593 
Options exercised(192)5.41 25,751 
Balance at December 31, 202133 5.16 15,389 
Options exercised(33)5.16 2,470 
Balance at December 30, 2022— — 0— 
Options vested and expected to vest - December 30, 2022— — 0— 
Options exercisable - December 30, 2022— $— 0$— 
Aggregate intrinsic value represents the difference between the closing price of the Company's common stock on NASDAQ and the exercise price of outstanding, in-the-money options. No options vested during the year ended December 30, 2022. As of December 30, 2022, stock-based compensation expense related to stock options has been fully recognized.
During the years ended December 30, 2022, December 31, 2021 and January 1, 2021, 33, 192, and 206 shares of common stock, respectively, were issued due to the exercise of stock options, resulting in proceeds to the Company of approximately $169, $1,042, and $1,063, respectively. As of December 30, 2022, stock-based compensation expense related to stock options has been fully recognized.
v3.22.4
Earnings Per Share
 12 Months Ended
Dec. 30, 2022
Earnings Per Share [Abstract]  
Earnings Per Share Earnings Per Share
Basic earnings per share ("EPS") amounts are computed by dividing net income attributable to Fox Factory Holding Corp. stockholders for the period by the weighted average number of common shares outstanding during the period. Diluted EPS amounts are computed by dividing net income for the period by the weighted average number of shares of common stock and potentially dilutive common stock outstanding during the period. Potentially dilutive common shares include shares issuable upon the exercise of outstanding stock options and vesting of restricted stock units, which are reflected in diluted earnings per share by application of the treasury stock method.
The following table presents the calculation of basic and diluted earnings per share:
For the fiscal years ended
December 30December 31January 1
202220212021
Net income attributable to FOX stockholders$205,278 $163,818 $90,674 
Weighted average shares used to compute basic earnings per share42,232 42,022 40,229 
Dilutive effect of employee stock plans152 344 572 
Weighted average shares used to compute diluted earnings per share42,384 42,366 40,801 
Earnings per share:
Basic$4.86 $3.90 $2.25 
Diluted$4.84 $3.87 $2.22 
The Company excluded 20 shares from the calculation of diluted earnings per share for the year ended December 30, 2022 as these shares would have been antidilutive. No potentially dilutive shares were excluded from the calculation of diluted earnings per share for the years ended December 31, 2021 and January 1, 2021, respectively.
v3.22.4
Income Taxes
 12 Months Ended
Dec. 30, 2022
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
Provision for Income Taxes
The components of income tax expense are as follows:
For the fiscal years ended
December 30December 31January 1
202220212021
Current:
Federal$33,622 $30,698 $18,061 
State4,372 (138)1,590 
Foreign11,964 8,617 8,043 
Total current49,958 39,177 27,694 
Deferred:
Federal(17,447)(14,447)(14,589)
State(2,837)(23)373 
Foreign(1,188)(144)(694)
Total deferred(21,472)(14,614)(14,910)
Provision for income taxes$28,486 $24,563 $12,784 
The Company's income before provision for income taxes was subject to taxes in the following jurisdictions for the following periods:
For the fiscal years ended
December 30December 31January 1
202220212021
United States$197,640 $149,238 $74,777 
Foreign36,124 39,143 29,753 
Total income before provision for income taxes$233,764 $188,381 $104,530 
The following table presents a reconciliation of the statutory federal rate and the Company’s effective tax rate for the periods presented:
For the fiscal years ended
December 30December 31January 1
202220212021
Tax at federal statutory rate21.0 %21.0 %21.0 %
Foreign derived income benefit(6.6)(5.8)(5.0)
Valuation allowance on foreign tax credits(3.8)1.1 0.7 
Research and development tax credit(2.9)(1.1)(0.9)
Foreign withholding taxes, net of foreign tax credits1.1 — — 
Executive compensation deduction limitation0.8 1.2 0.8 
State taxes, net of federal benefit0.6 1.9 1.8 
Stock-based compensation(0.5)(5.0)(5.9)
Change in liability for unrecognized tax benefits— (1.4)0.6 
Other2.5 1.1 (0.9)
Effective tax rate12.2 %13.0 %12.2 %
Deferred Income Taxes
December 30,December 31,
20222021
Deferred tax assets:
Foreign tax credits, including amounts associated with accrued charges$47,779 $48,329 
 Inventory 8,222 5,452 
 Accrued liabilities 7,146 9,319 
 Lease liability6,077 3,646 
Capitalized research & development16,502 5,880 
Stock-based compensation— 2,254 
Research and development tax credits3,963 2,721 
Other4,586 625 
Total deferred tax asset94,275 78,226 
Valuation allowance(280)(9,223)
Net deferred tax asset93,995 69,003 
Deferred tax liabilities:
Intangible assets(23,078)(23,357)
Depreciation(5,583)(5,711)
Lease right-of-use asset(6,232)(3,783)
Accrued withholding tax on unremitted foreign dividends— (854)
Stock-based compensation(121)— 
Other(1,642)(300)
Total deferred tax liability(36,656)(34,005)
Net deferred tax asset$57,339 $34,998 
As of December 30, 2022, the Company had foreign tax credits of $47,779 that begin to expire in 2026, unless previously utilized.
As of December 30, 2022, the Company assessed the realizability of deferred tax assets and evaluated the need for a valuation allowance for deferred tax assets for each jurisdiction based on the framework of ASC 740. For the year ended December 30, 2022, the valuation allowance decreased by $9,161. U.S. Tax Regulations proposed by the U.S. Treasury and Internal Revenue Service on November 22, 2022, which were early adopted by the Company, provided clarification to earlier guidance and resulted in the Company's ability to utilize certain foreign tax credits related to royalties. As a result, the Company determined a valuation allowance was not needed. Other components of the valuation allowance were not significant. It is reasonably possible that the Company could record a material adjustment to the valuation allowance in the next twelve months.
Unrecognized Tax Benefits
For the fiscal years ended
December 30December 31January 1
202220212021
Balance - beginning of period$228 $3,150 $2,300 
Increase related to current year tax positions— — 664 
Increase related to prior year tax positions— — 187 
Decrease related to prior year tax positions(109)(2,923)— 
Increase (decrease) due to expiration of statute of limitations— 1 (1)
Balance - end of period$119 $228 $3,150 
As of December 30, 2022, the Company had $119 of unrecognized tax benefits. The Company regularly engages in discussions and negotiations with tax authorities regarding tax matters in various jurisdictions.
The Company's 2019 and forward federal tax returns, state tax returns from 2017 and forward, and foreign tax returns from 2019 and forward are subject to examination by tax authorities.
v3.22.4
Fair Value Measurement and Financial Instruments
 12 Months Ended
Dec. 30, 2022
Fair Value Disclosures [Abstract]  
Fair Value Measurement and Financial Instruments Fair Value Measurements and Financial Instruments
The FASB's Accounting Standards Codification 820, "Fair Value Measurements and Disclosures" requires the valuation of assets and liabilities required or permitted to be either recorded or disclosed at fair value based on hierarchy of available inputs as follows:
Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities;
Level 2: Quoted prices for similar assets and liabilities in active markets, quoted prices for identical assets and liabilities in markets that are not active, or inputs which are observable, either directly or indirectly, for substantially the full term of the asset or liability; and
Level 3: Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported by little or no market activity).
The following table presents the Company's hierarchy for its assets, liabilities and redeemable non-controlling interest measured at fair value on a recurring basis as of the following periods:
December 30, 2022December 31, 2021
Level 1Level 2Level 3TotalLevel 1Level 2Level 3Total
Assets:
Interest Rate Swap$— $5,087 $— $5,087 $— $3,583 $— $3,583 
Total assets measured at fair value$— $5,087 $— $5,087 $— $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 years ended December 30, 2022, and December 31, 2021.
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 11. 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 Consolidated Balance Sheets and is measured at fair value. The fair value was calculated utilizing Level 2 inputs.
v3.22.4
Retirement Plan
 12 Months Ended
Dec. 30, 2022
Retirement Benefits [Abstract]  
Retirement Plan Retirement PlanThe Company established a 401(k) plan to provide tax deferred salary deductions for all eligible employees. Participants may make voluntary contributions to the 401(k) plan, limited by certain IRS restrictions. The Company made matching contributions of $3,649, $2,655, and $2,078 for each of the years ended December 30, 2022, December 31, 2021 and January 1, 2021, respectively.
v3.22.4
Acquisitions
 12 Months Ended
Dec. 30, 2022
Business Combination and Asset Acquisition [Abstract]  
Acquisitions Acquisitions
On March 11, 2020, the Company, through Fox Factory, Inc., acquired 100% of the issued and outstanding stock of SCA from Southern Rocky Holdings, LLC for $331,853, net of cash acquired and exclusive of vehicle inventory. SCA is a leading OEM authorized specialty vehicle manufacturer for light duty trucks and SUVs with headquarters in Trussville, Alabama. SCA operates under three aftermarket brands: SCA Performance, Rocky Ridge Trucks, and Rocky Mountain Truckworks. This transaction was accounted for as a business combination.
The Company also agreed to an additional $10,326 of contingent retention incentives for key SCA management of which $9,036 is cash and $1,290 is stock, to be held in escrow and payable over two years from the acquisition date. The Company recognized $955, $5,160 and $4,211 in costs associated with such retention incentives during the years ended December 30, 2022, December 31, 2021 and January 1, 2021, respectively. As of December 30, 2022, all contingent retention incentives had been recognized.
The Company’s allocation of the purchase price to the net tangible and intangible assets acquired and liabilities assumed is as follows:
Fair market values
Tangible assets acquired$28,678 
Liabilities assumed(32,479)
Intangible assets139,900 
Goodwill195,754 
               Total$331,853 
The Company incurred $10,582 of acquisition costs in conjunction with the SCA acquisition, including $1,750 of transaction compensation during the year ended January 1, 2021 and $602 of transaction costs during the year ended January 3, 2020. These costs are classified as general and administrative expenses in the accompanying consolidated statements of income. Additional debt issuance costs of $6,622 were incurred in association with financing the transaction. Refer to Note 10. Debt for further details.
The values assigned to the identifiable intangible assets were determined by discounting the estimated future cash flows associated with these assets to their present value. The goodwill of $195,754 reflects the strategic fit of SCA with the Company’s operations. The Company will amortize the acquired customer relationships assets over their expected useful lives of 5-10 years. Trademarks, brand names and goodwill are expected to have an indefinite life, and will be subject to impairment testing. The goodwill is not deductible for income tax purposes. SCA previously purchased intangibles in asset acquisitions with a remaining net tax basis approximating $77,989, which the Company may deduct for income tax purposes.
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, 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 intangibles 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 1 and 10 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. This 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. The Company will amortize the acquired non-compete and trade name assets over their expected useful lives of 5 and 10 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.
v3.22.4
Subsequent Events
 12 Months Ended
Dec. 30, 2022
Subsequent Events [Abstract]  
Subsequent Events Subsequent EventsOn February 17, 2023 the Company entered into a Securities Purchase Agreement with CWH Holdco, LLC (“CWH”), CWH Blocker Corp., (“Blocker”), Thompson Street Capital Partners V, L.P., and each other member of CWH to purchase all of the outstanding equity of Blocker, and thereafter Blocker will acquire all of the outstanding equity interest of CWH for $131,600. CWH is the parent company of Custom Wheel House, LLC ("Custom Wheel House"). The transaction will be financed through a combination of cash on hand and the Company's existing 2022 Credit Facility, and is expected to close in March 2023, subject to customary closing conditions. The acquisition is not considered significant to the Company's financial results.
v3.22.4
Description of the Business, Basis of Presentation and Summary of Significant Accounting Policies (Policies)
 12 Months Ended
Dec. 30, 2022
Accounting Policies [Abstract]  
Basis of Presentation Basis of Presentation - The accompanying consolidated financial statements have been prepared in accordance with United States of America ("U.S.") generally accepted accounting principles ("GAAP").
Change in Fiscal Year Fiscal Year Calendar - The Company operates using a 52-53 week fiscal year calendar ending on the Friday nearest to December 31. Therefore, the financial results of certain fiscal years and quarters, which will contain 53 and 14 weeks, respectively, will not be exactly comparable to the prior and subsequent fiscal years and quarters, which contain 52 and 13 weeks, respectively. For the fiscal years 2022, 2021 and 2020, the Company's fiscal year ended on December 30, 2022, December 31, 2021 and January 1, 2021 and each had 52 weeks.
Principles of Consolidation Principles of Consolidation - The consolidated financial statements include the Company and its subsidiaries. All intercompany transactions and balances have been eliminated in consolidation.
Use of Estimates Use of Estimates - The preparation of the Company’s 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.
Foreign Currency Translation and Transaction Foreign Currency Translation and Transaction - The functional currency of the Company’s non-U.S. entities is the local currency of the respective operations. The Company translates the financial statements of its non-U.S. entities into U.S. Dollars each reporting period for purposes of consolidation. Assets and liabilities of the Company’s foreign subsidiaries are translated at the period-end currency exchange rates while sales and expenses are translated at the average currency exchange rates in effect for the period. The effects of these translation adjustments are a component of other comprehensive income.
Cash and Cash Equivalents Cash and Cash Equivalents - Cash consists of cash maintained in checking or money market accounts. All highly liquid investments purchased with an original maturity date of 90 days or less at the date of purchase are considered to be cash equivalents.
Accounts Receivable
Accounts Receivable - Accounts receivable are unsecured customer obligations which generally require payment within various terms from the invoice date. The receivables are stated at the invoice amount. Financing terms vary by customer. Invoices are considered past due when payment is not received within the terms stated within the contract. Payments of accounts receivable are applied to the specific invoices identified on the customer’s remittance advice or if unspecified, generally to the earliest unpaid invoices.
The carrying amount of accounts receivable is reduced by a valuation allowance that reflects management’s best estimate of amounts that may not be collected. All accounts or portions thereof deemed to be uncollectible or that may require an excessive collection cost are written off to the allowance for credit losses.
Concentration of Credit Risk Concentration of Credit Risk - Financial instruments, which potentially subject the Company to significant concentrations of credit risk, consist primarily of cash and accounts receivable. As of December 30, 2022 the Company held $64,859 in cash at U.S. subsidiaries and $80,391 at subsidiaries outside the U.S. The account balances may significantly exceed the insurance coverage provided on such deposits. Generally, these deposits may be redeemed upon demand and are maintained with financial institutions with reputable credit and therefore bear minimal credit risk. The Company has not experienced any losses in its uninsured accounts.The Company mitigates its credit risk with respect to accounts receivable by performing ongoing credit evaluations and monitoring of its customers’ accounts receivable balances.
Allowance for Doubtful Accounts Allowance for Credit Losses - The Company records a provision for credit losses based on historical experience and a detailed assessment of the collectability of its accounts receivable. The provision is based on how long a receivable has been outstanding, taking into account the historical credit loss rate and adjusting for both current conditions and forecasts of economic conditions into that expected credit loss rate. If circumstances change, such as higher-than-expected defaults or an unexpected material adverse change in a major customer’s ability to meet its financial obligations, the Company’s estimate of the recoverability of the amounts due could be reduced by a material amount.
Inventories Inventories - Inventories are stated at the lower of actual cost (or standard cost which generally approximates actual costs on a first-in first-out basis) or net realizable value. Cost includes raw materials and inbound freight, as well as direct labor and manufacturing overhead for products we manufacture. Net realizable value is based on current replacement cost for raw materials and on a net realizable value for finished goods. Adjustments to reduce the cost of inventory to its net realizable value are made, if required, for estimated excess, obsolescence or impaired balances.
Property and Equipment
Property and Equipment - Property and equipment are stated at cost less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the related assets. Maintenance and repairs are charged to expense as incurred, and improvements and betterments are capitalized. When assets are retired or otherwise disposed of, the cost and accumulated depreciation and amortization are removed from the balance sheet and any resulting gain or loss is reflected in operations in the period realized.
Leasehold improvements are amortized on a straight-line basis over the terms of the lease, or the useful lives of the assets, whichever is shorter. The value assigned to land associated with buildings we own is not amortized. Depreciation and amortization periods for the Company’s property and equipment are as follows:
Asset ClassificationEstimated useful life
Building and building improvements
15-39 years
Information systems, office equipment and furniture
3-7 years
Internal-use computer software
10 years
Land improvements
15 years
Machinery and manufacturing equipment
5-15 years
Transportation equipment
3-5 years
Internal Use Computer Software Costs Internal-use Computer Software Costs - Costs incurred to purchase and develop computer software for internal use are capitalized during the application development and implementation stages. These software costs have been for enterprise-level business and finance software that is customized to meet the Company’s operational needs. Capitalized costs are included in property and equipment and are amortized on a straight-line basis over the estimated useful life of the software beginning when the software project is substantially complete and placed in service. The Company capitalized $4,863 in internal use computer software costs during the year ended December 30, 2022. Costs incurred during the preliminary project stage and costs for training, data conversion, and maintenance are expensed as incurred.
Impairment of Long-lived Assets Impairment of Long-lived Assets - The Company periodically reviews property and equipment for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset is impaired or the estimated useful lives are no longer appropriate. If indicators of impairment exist and the undiscounted projected cash flows associated with such assets are less than the carrying amount of the assets, an impairment loss is recorded to write the assets down to their estimated fair values. Fair value is estimated based on discounted future cash flows.
Business Combinations Business Combinations - The Company accounts for acquisitions of entities that include inputs and processes and have the ability to create outputs as business combinations. The Company allocates the purchase price of the acquisition to the tangible assets acquired, liabilities assumed and identifiable intangible assets acquired based on their estimated fair values. The excess of the purchase price over those fair values is recorded as goodwill. Acquisition-related expenses and restructuring costs are expensed as incurred. During the measurement period, the Company records adjustments to provisional amounts recorded for assets acquired and liabilities assumed with the corresponding offset to goodwill. After the measurement period, which could be up to one year after the transaction date, subsequent adjustments are recorded to the Company’s consolidated statements of income.
Goodwill and Intangible Assets Goodwill and Intangible Assets - Goodwill represents the excess of purchase price over the fair value of the net assets of businesses acquired. On an annual basis, the Company makes a qualitative assessment to determine if it is more likely than not that the fair value of the reporting unit is less than its carrying amount, including goodwill. If the Company determines that the fair value of the reporting unit is less than its carrying amount, it will perform a quantitative analysis; otherwise, no further evaluation is necessary. For the quantitative impairment assessment, the Company compares the fair value of the reporting unit to its carrying value, including goodwill. The Company determines the fair value of the reporting unit based on a weighting of income and market approaches. If the fair value of the reporting unit exceeds the carrying value of the net assets assigned to that unit, goodwill is not impaired and no further testing is performed. If the carrying value of the net assets assigned to the reporting unit exceeds the fair value of the reporting unit, then the Company will recognize a loss equal to the excess, limited to the total amount of goodwill allocated to that reporting unit. Impairments, if any, are charged directly to earnings. We completed our most recent annual impairment test in the third quarter of 2022 at which time we had a single reporting unit for purposes of assessing goodwill impairment. No impairment charges have been incurred to date. Intangible assets including customer relationships, certain trademarks, and the Company’s core technology, are subject to amortization over their respective useful lives, and are classified in intangibles, net in the accompanying consolidated balance sheet. These intangibles are evaluated for impairment whenever events or changes in circumstances indicate that the carrying value of the assets may not be fully recoverable. If facts and circumstances indicate that the carrying value might not be recoverable, projected undiscounted net cash flows associated with the related asset or group of assets over their estimated remaining useful lives is compared against their respective carrying amounts. If an asset is found to be impaired, the impairment charge will be measured as the amount by which the carrying amount of an entity exceeds its fair value. Certain trademarks and brands are considered to be indefinite life intangibles, and are not amortized but are subject to testing for impairment annually.
Self Insurance Self-Insurance - The Company is self-insured for its U.S. employee health and welfare benefits. The Company’s liability for self-insurance is based on claims filed and an estimate of claims incurred but not yet reported. The Company considers a number of factors, including historical claims information, when determining the amount of the accrual. Costs related to the administration of the plan and related claims are expensed as incurred. The Company has third-party insurance coverage to limit exposure for individually significant claims.
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 side-by-sides, on-road vehicles with off-road capabilities, 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. Revenues generated from upfit packages generally do not include the vehicle chassis, as the Company is not the principal in this arrangement and the automotive dealer purchases the chassis directly from the OEM. The Company is required to place a deposit on all vehicle chassis that the dealer purchases directly from the OEM, however that deposit is refunded when the chassis is sold through to the end customer.
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.
Cost of Sales Cost of Sales - Cost of sales primarily consists of materials and labor expense in the manufacturing of the Company’s products sold to customers. Cost of sales also includes provisions for excess and obsolete inventory, warranty costs, certain allocated costs for facilities, depreciation and other manufacturing overhead. Additionally, it includes stock-based compensation for personnel directly involved with manufacturing the Company’s product offerings.
Shipping and Handling Fees and Costs Shipping and Handling Fees and Costs - The Company includes shipping and handling fees billed to customers in sales. Shipping costs associated with inbound freight are capitalized as part of inventory and included in cost of sales as products are sold.
Sales and Marketing Sales and Marketing - Our sales and marketing expenses include costs related to our sales, customer service and marketing personnel, including their wages, employee benefits and related stock-based compensation, and occupancy related expenses. Other significant sales and marketing expenses include commissions paid to outside sales representatives, promotional materials and products, our sales office costs, race support and sponsorships of events and athletes, advertising and promotions related to trade shows, and travel and entertainment.
Research and Development Research and Development - Research and development expenses consist primarily of salaries and personnel costs, including wages, employee benefits and related stock-based compensation for the Company’s engineering, research and development teams, occupancy related expenses, fees for third party consultants, service fees, and expenses for prototype tooling and materials, travel, and supplies. The Company expenses research and development costs as incurred.
General and Administrative General and Administrative - General and administrative expenses include costs related to executive, finance, information technology, human resources and administrative personnel, including wages, employee benefits and related stock-based compensation expenses. The Company records professional and contract service expenses, occupancy related expenses associated with corporate locations and equipment, and legal expenses in general and administrative expenses.
Stock-Based Compensation Stock-Based Compensation - The Company measures stock-based compensation for all stock-based awards, including stock options and restricted stock units (“RSUs”), based on their estimated fair values on the date of the grant and recognizes the stock-based compensation cost for time-vested awards on a straight-line basis over the requisite service period. For performance-based RSUs, the number of shares ultimately expected to vest is estimated at each reporting date based on management’s expectations regarding the relevant performance criteria. To the extent shares are expected to vest, the stock-based compensation cost is recognized on a straight-line basis over the requisite service period. The fair value of each stock option granted is estimated using the Black-Scholes option-pricing model. The Company does not estimate forfeitures in recognizing stock-based compensation expense. The fair value of the RSUs is equal to the fair value of the Company’s common stock on the grant date of the award.
Income Taxes
Income Taxes - Income taxes are computed using the asset and liability method, under which deferred tax assets and liabilities are determined based on the difference between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to affect taxable income. Operating loss and tax credit carryforwards are measured by applying currently enacted tax laws. Valuation allowances are provided when necessary to reduce net deferred tax assets to an amount that is more likely than not to be realized.
The Company accounts for global intangible low-taxed income ("GILTI") in the year the tax is incurred, rather than recognize deferred taxes for temporary basis differences expected to reverse as GILTI in future years. The net GILTI inclusion for the year ended December 30, 2022 was fully offset by foreign tax credits associated with the income.
The Company recognizes the tax effects of an uncertain tax position only if it is more likely than not to be sustained based solely on its technical merits as of the reporting date and then only in an amount more likely than not to be sustained upon review by the tax authorities. The Company considers many factors when evaluating and estimating its tax positions and tax benefits, which may require periodic adjustments and which may not accurately anticipate actual outcomes.
Advertising Advertising - Advertising costs are expensed as incurred and recorded as sales and marketing expenses on our Consolidated Statements of Income.
Warranties Warranties - The Company offers limited warranties on its products generally for one to two years. The Company recognizes estimated costs related to warranty activities as a component of cost of sales upon product shipment. The estimates are based upon historical product failure rates and historical costs incurred in correcting product failures. The recorded amount is adjusted from time to time for specifically identified warranty exposures. Actual warranty expenses are charged against the Company’s estimated warranty liability when incurred. Factors that affect the Company’s liability include the number of units, historical and anticipated rates of warranty claims, and the cost per claim.
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.
Fair Value Measurements and Financial Instruments
Fair Value Measurements and Financial Instruments - The Financial Accounting Standards Board ("FASB") has issued Accounting Standards Codification 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, and accrued liabilities approximate their fair values due to their short-term nature. As of December 31, 2021, amounts owed 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.
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 coronavirus (“COVID-19”) outbreak. 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 pandemic; government, social, business and other actions that have been and will be taken in response to the pandemic; and the effect of the pandemic on short and long-term general economic conditions.
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 2021-12 did not have a material impact on the Company's 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. 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 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.
In September 2022, the FASB issued ASU 2022-04, Liabilities - Supplier Finance Programs (Subtopic 405): Disclosure of Supplier Finance Program Obligations. Under ASU 2022-04, the buyer in a supplier finance program is required to disclose sufficient information to allow a user of the financial statements to understand the program's nature, activity during the period, changes from period to period, and potential magnitude. The guidance is effective for interim and annual periods beginning after December 15, 2022, with early adoption permitted. These amendments will be applied retrospectively to each period in which a balance sheet is presented, except for the disclosure of rollforward information, which will be applied prospectively. The Company expects to adopt the interim disclosure requirements as applicable during the first quarter of 2023 and the annual disclosure requirements, except for the annual rollforward, in the 2023 Annual Report on Form 10-K. The Company expects to adopt the annual rollforward requirement in the 2024 Annual Report on Form 10-K. This adoption is not expected to have a material impact on our financial statements. The Company is currently evaluating ASU 2022-04 and assessing the impact this guidance will have on its consolidated financial statements and disclosures.
v3.22.4
Description of the Business, Basis of Presentation and Summary of Significant Accounting Policies (Tables)
 12 Months Ended
Dec. 30, 2022
Accounting Policies [Abstract]  
Schedules of Concentration of Risk, by Risk Factor The following customers accounted for 10% or more of the Company's accounts receivable balance:
 December 30,December 31,
 20222021
Customer A14%6%
Customer B9%11%
Customer C8%10%
Schedule of Allowance for Doubtful Accounts The following table presents the activity in the allowance for credit losses:
For the fiscal years ended
December 30December 31January 1
Allowance for credit losses:202220212021
Balance, beginning of year$410 $663 $810 
Add: bad debt expense (benefit)446 (14)103 
Less: write-offs, net of recoveries(413)(239)(250)
Balance, end of year$443 $410 $663 
Schedule of Depreciation and Amortization Periods Depreciation and amortization periods for the Company’s property and equipment are as follows:
Asset ClassificationEstimated useful life
Building and building improvements
15-39 years
Information systems, office equipment and furniture
3-7 years
Internal-use computer software
10 years
Land improvements
15 years
Machinery and manufacturing equipment
5-15 years
Transportation equipment
3-5 years
Property, plant and equipment consisted of the following:
December 30,December 31,
20222021
Building and building improvements$73,594 $72,088 
Information systems, office equipment and furniture21,655 20,988 
Internal-use computer software30,290 25,700 
Land and land improvements14,493 15,663 
Leasehold improvements20,078 22,835 
Machinery and manufacturing equipment122,748 106,628 
Transportation equipment12,450 7,372 
Total property, plant and equipment295,308 271,274 
Less: accumulated depreciation and amortization(93,093)(79,271)
Total property, plant and equipment, net$202,215 $192,003 
The following table summarizes the allocation of depreciation expense in the accompanying consolidated statements of income:
For the fiscal years ended
December 30December 31January 1
202220212021
Cost of sales$13,741 $11,656 $9,266 
General and administrative11,003 8,780 4,868 
Research and development2,441 2,080 2,044 
Sales and marketing520 225 163 
Total depreciation expense$27,705 $22,741 $16,341 

The Company’s long-lived assets by geographic location are as follows:
December 30,December 31,
20222021
United States$166,544 $161,451 
International35,671 30,552 
Total long-lived assets$202,215 $192,003 
v3.22.4
Revenues (Tables)
 12 Months Ended
Dec. 30, 2022
Revenue from Contract with Customer [Abstract]  
Disaggregation of Revenues
The following table summarizes total sales by product category:
For the fiscal years ended
December 30December 31January 1
202220212021
Powered Vehicle products$921,520 $720,029 $523,694 
Specialty Sports products680,971 579,035 366,860 
Total sales$1,602,491 $1,299,064 $890,554 
The following table summarizes total sales by sales channel:
For the fiscal years ended
December 30December 31January 1
202220212021
OEM$909,550 $718,000 $494,068 
Aftermarket692,941 581,064 396,486 
Total sales$1,602,491 $1,299,064 $890,554 
The following table summarizes total sales generated by geographic location of the customer:
For the fiscal years ended
December 30December 31January 1
202220212021
North America$1,009,203 $811,312 $593,267 
Asia252,275 241,033 144,836 
Europe320,545 230,491 143,817 
Rest of the World20,468 16,228 8,634 
Total sales$1,602,491 $1,299,064 $890,554 
v3.22.4
Inventory (Tables)
 12 Months Ended
Dec. 30, 2022
Inventory Disclosure [Abstract]  
Inventory Inventory consisted of the following:
December 30,December 31,
20222021
Raw materials$247,441 $200,460 
Work-in-process9,959 7,539 
Finished goods93,220 71,838 
Total inventory$350,620 $279,837 
v3.22.4
Prepaids and Other Current Assets (Tables)
 12 Months Ended
Dec. 30, 2022
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]  
Accrued Expenses Prepaids and other current assets consisted of the following:
December 30,December 31
20222021
Prepaid chassis deposits$74,013 $98,618 
Advanced payments and prepaid contracts13,598 14,024 
Other current assets13,753 10,465 
Total prepaids and other assets$101,364 $123,107 
Accrued expenses consisted of the following:
December 30,December 31,
20222021
Payroll and related expenses$38,193 $32,968 
Current portion of lease liabilities10,314 9,095 
Warranty17,071 15,510 
Income tax payable40,701 34,845 
Accrued sales rebate8,693 8,568 
NCI buyout liability— 2,700 
Other accrued expenses12,757 8,692 
Total accrued expenses$127,729 $112,378 
v3.22.4
Property, Plant and Equipment, net (Tables)
 12 Months Ended
Dec. 30, 2022
Property, Plant and Equipment [Abstract]  
Property, Plant and Equipment Depreciation and amortization periods for the Company’s property and equipment are as follows:
Asset ClassificationEstimated useful life
Building and building improvements
15-39 years
Information systems, office equipment and furniture
3-7 years
Internal-use computer software
10 years
Land improvements
15 years
Machinery and manufacturing equipment
5-15 years
Transportation equipment
3-5 years
Property, plant and equipment consisted of the following:
December 30,December 31,
20222021
Building and building improvements$73,594 $72,088 
Information systems, office equipment and furniture21,655 20,988 
Internal-use computer software30,290 25,700 
Land and land improvements14,493 15,663 
Leasehold improvements20,078 22,835 
Machinery and manufacturing equipment122,748 106,628 
Transportation equipment12,450 7,372 
Total property, plant and equipment295,308 271,274 
Less: accumulated depreciation and amortization(93,093)(79,271)
Total property, plant and equipment, net$202,215 $192,003 
The following table summarizes the allocation of depreciation expense in the accompanying consolidated statements of income:
For the fiscal years ended
December 30December 31January 1
202220212021
Cost of sales$13,741 $11,656 $9,266 
General and administrative11,003 8,780 4,868 
Research and development2,441 2,080 2,044 
Sales and marketing520 225 163 
Total depreciation expense$27,705 $22,741 $16,341 

The Company’s long-lived assets by geographic location are as follows:
December 30,December 31,
20222021
United States$166,544 $161,451 
International35,671 30,552 
Total long-lived assets$202,215 $192,003 
v3.22.4
Leases - (Tables)
 12 Months Ended
Dec. 30, 2022
Leases [Abstract]  
Lease Costs
Operating lease costs consisted of the following:
For the fiscal years ended
December 30December 31January 1
202220212021
Operating lease cost$11,209 $9,124 $7,201 
Other lease costs (1)3,638 1,122 937 
Total lease costs$14,847 $10,246 $8,138 
(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
Supplemental balance sheet information related to the Company's operating leases is as follows:
Balance Sheet ClassificationDecember 30, 2022
Operating lease right-of-use assetsLease right-of-use assets$48,096 
Current lease liabilitiesAccrued expenses$10,314 
Non-current lease liabilitiesOther liabilities$37,098 
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
2023$11,376 
202410,480 
20258,123 
20267,027 
20274,418 
Thereafter9,649 
Total lease payments51,073 
Less: imputed interest(3,661)
Present value of lease liabilities47,412 
Less: current portion(10,314)
Lease liabilities less current portion$37,098 
v3.22.4
Goodwill and Intangible Assets (Tables)
 12 Months Ended
Dec. 30, 2022
Goodwill and Intangible Assets Disclosure [Abstract]  
Intangible Assets Excluding Goodwill
Intangible assets, excluding goodwill, are comprised of the following:
Gross
carrying
amount
Accumulated
amortization
Net
carrying
amount
Weighted
average life
(years)
December 30, 2022
Customer relationships $195,910 $(86,023)$109,887 10
Core technology39,291 (34,412)4,879 8
Trademarks and brands, subject to amortization12,443 (3,799)8,644 9
Total$247,644 $(124,234)123,410 
Trademarks and brands, not subject to amortization55,570 
Total$178,980 
December 31, 2021
Customer relationships $195,910 $(66,240)$129,670 10
Core technology35,795 (33,989)1,806 8
Trademarks and brands, subject to amortization12,443 (2,468)9,975 9
Total$244,148 $(102,697)141,451 
Trademarks and brands, not subject to amortization55,570 
Total$197,021 
Schedule of Finite-Lived Intangible Assets, Amortization Expense
For the fiscal years ended
December 30December 31January 1
202220212021
Amortization of intangibles$21,537 $20,685 $17,583 
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense
Future amortization expense for finite-lived intangibles as of December 30, 2022 is as follows:
For fiscal year:Amortization Expense
2023$21,058 
202420,851 
202518,216 
202617,658 
202716,307 
Thereafter29,320 
Total expected future amortization$123,410 
Schedule of Goodwill
Goodwill activity consisted of the following:
Balance as of December 31, 2021$323,299 
Acquisitions (Refer to Note 18. Acquisitions)
714 
Currency translation and other adjustments(35)
Balance as of December 30, 2022$323,978 
v3.22.4
Accrued Expenses (Tables)
 12 Months Ended
Dec. 30, 2022
Payables and Accruals [Abstract]  
Accrued Expenses Prepaids and other current assets consisted of the following:
December 30,December 31
20222021
Prepaid chassis deposits$74,013 $98,618 
Advanced payments and prepaid contracts13,598 14,024 
Other current assets13,753 10,465 
Total prepaids and other assets$101,364 $123,107 
Accrued expenses consisted of the following:
December 30,December 31,
20222021
Payroll and related expenses$38,193 $32,968 
Current portion of lease liabilities10,314 9,095 
Warranty17,071 15,510 
Income tax payable40,701 34,845 
Accrued sales rebate8,693 8,568 
NCI buyout liability— 2,700 
Other accrued expenses12,757 8,692 
Total accrued expenses$127,729 $112,378 
Activity Related to Warranties Activity related to warranties is as follows:
For the fiscal years ended
December 30December 31January 1
202220212021
Beginning warranty liability$15,510 $9,835 $5,649 
Charge to cost of sales11,387 13,603 6,887 
Fair value of warranty assumed in acquisition— 150 3,158 
Costs incurred(9,826)(8,078)(5,859)
Ending warranty liability$17,071 $15,510 $9,835 
v3.22.4
Debt (Tables)
 12 Months Ended
Dec. 30, 2022
Debt Disclosure [Abstract]  
Summary of Amended and Restated Credit Facility
The following table summarizes the line of credit under the 2022 Credit Facility and the Prior Credit Facility:
December 30,December 31,
20222021
Amount outstanding$200,000 $— 
Standby letters of credit$— $15,000 
Available borrowing capacity$450,000 $235,000 
Total borrowing capacity$650,000 $250,000 
Maturity dateApril 5, 2027March 11, 2025
v3.22.4
Derivatives and Hedging (Tables)
 12 Months Ended
Dec. 30, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Interest Rate Derivatives
As of December 30, 2022 and December 31, 2021, the Company had the following interest rate swap contracts:
December 30,December 31,
20222021
Effective DateTermination DateNotional AmountUnrealized Gain in AOCIUnrealized Gain in AOCI
September 2, 2020June 11, 2021$200,000$189 $276 
July 2, 2021April 5, 2022$200,0009,180 3,583 
April 5, 2022April 5, 2027$100,0005,087 — 
Total $14,456 $3,859 
v3.22.4
Stockholders' Equity (Tables)
 12 Months Ended
Dec. 30, 2022
Share-Based Payment Arrangement [Abstract]  
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs
The following table summarizes the allocation of stock-based compensation in the accompanying consolidated statements of income:
For the fiscal years ended
December 30December 31January 1
202220212021
Cost of sales$957 $710 $625 
Sales and marketing924 803 635 
Research and development946 944 788 
General and administrative13,524 11,457 6,570 
Total$16,351 $13,914 $8,618 
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity
The following table summarizes RSU activity:
Unvested RSUs
Number of shares outstandingWeighted-average grant date fair value
Unvested at January 3, 2020427 $44.98 
Granted260 47.46 
Canceled(13)48.51 
Vested(224)37.34 
Unvested at January 1, 2021450 50.12 
Granted89 149.08 
Canceled(24)56.21 
Vested(177)49.17 
Unvested at December 31, 2021338 76.30 
Granted142 95.34 
Canceled(17)97.00 
Vested(166)73.14 
Unvested at December 30, 2022297 $87.05 
Schedule of Nonvested Performance-based Units Activity
The following table summarizes the activity for the Company's unvested PSUs for the year ended December 30, 2022:
Unvested PSUs
Number of shares outstandingWeighted-average grant date fair value
Unvested at January 1, 2021— $— 
Granted29,000 141.46 
Unvested at December 31, 202129,000 141.46 
Granted37,000 120.90 
Canceled(4,000)126.73 
Vested(14,000)141.46 
Unvested at December 30, 202248,000 $126.69 
Schedule of Share-based Compensation, Stock Options, Activity
The following table summarizes stock option activity:
Number of shares outstandingWeighted-average exercise priceWeighted-average remaining contractual life (years)Aggregate intrinsic value
Balance at January 3, 2020431 $5.27 2$27,814 
Options exercised(206)5.16 19,724 
Balance at January 1, 2021225 5.37 222,593 
Options exercised(192)5.41 25,751 
Balance at December 31, 202133 5.16 15,389 
Options exercised(33)5.16 2,470 
Balance at December 30, 2022— — 0— 
Options vested and expected to vest - December 30, 2022— — 0— 
Options exercisable - December 30, 2022— $— 0$— 
v3.22.4
Earnings Per Share (Tables)
 12 Months Ended
Dec. 30, 2022
Earnings Per Share [Abstract]  
Calculation of Basic and Diluted Earnings Per Share
The following table presents the calculation of basic and diluted earnings per share:
For the fiscal years ended
December 30December 31January 1
202220212021
Net income attributable to FOX stockholders$205,278 $163,818 $90,674 
Weighted average shares used to compute basic earnings per share42,232 42,022 40,229 
Dilutive effect of employee stock plans152 344 572 
Weighted average shares used to compute diluted earnings per share42,384 42,366 40,801 
Earnings per share:
Basic$4.86 $3.90 $2.25 
Diluted$4.84 $3.87 $2.22 
v3.22.4
Income Taxes (Tables)
 12 Months Ended
Dec. 30, 2022
Income Tax Disclosure [Abstract]  
Schedule of Components of Income Tax Expense
The components of income tax expense are as follows:
For the fiscal years ended
December 30December 31January 1
202220212021
Current:
Federal$33,622 $30,698 $18,061 
State4,372 (138)1,590 
Foreign11,964 8,617 8,043 
Total current49,958 39,177 27,694 
Deferred:
Federal(17,447)(14,447)(14,589)
State(2,837)(23)373 
Foreign(1,188)(144)(694)
Total deferred(21,472)(14,614)(14,910)
Provision for income taxes$28,486 $24,563 $12,784 
Schedule of Income before Income Tax, Domestic and Foreign
The Company's income before provision for income taxes was subject to taxes in the following jurisdictions for the following periods:
For the fiscal years ended
December 30December 31January 1
202220212021
United States$197,640 $149,238 $74,777 
Foreign36,124 39,143 29,753 
Total income before provision for income taxes$233,764 $188,381 $104,530 
Schedule of Effective Income Tax Rate Reconciliation
The following table presents a reconciliation of the statutory federal rate and the Company’s effective tax rate for the periods presented:
For the fiscal years ended
December 30December 31January 1
202220212021
Tax at federal statutory rate21.0 %21.0 %21.0 %
Foreign derived income benefit(6.6)(5.8)(5.0)
Valuation allowance on foreign tax credits(3.8)1.1 0.7 
Research and development tax credit(2.9)(1.1)(0.9)
Foreign withholding taxes, net of foreign tax credits1.1 — — 
Executive compensation deduction limitation0.8 1.2 0.8 
State taxes, net of federal benefit0.6 1.9 1.8 
Stock-based compensation(0.5)(5.0)(5.9)
Change in liability for unrecognized tax benefits— (1.4)0.6 
Other2.5 1.1 (0.9)
Effective tax rate12.2 %13.0 %12.2 %
Schedule of Deferred Tax Assets and Liabilities
Deferred Income Taxes
December 30,December 31,
20222021
Deferred tax assets:
Foreign tax credits, including amounts associated with accrued charges$47,779 $48,329 
 Inventory 8,222 5,452 
 Accrued liabilities 7,146 9,319 
 Lease liability6,077 3,646 
Capitalized research & development16,502 5,880 
Stock-based compensation— 2,254 
Research and development tax credits3,963 2,721 
Other4,586 625 
Total deferred tax asset94,275 78,226 
Valuation allowance(280)(9,223)
Net deferred tax asset93,995 69,003 
Deferred tax liabilities:
Intangible assets(23,078)(23,357)
Depreciation(5,583)(5,711)
Lease right-of-use asset(6,232)(3,783)
Accrued withholding tax on unremitted foreign dividends— (854)
Stock-based compensation(121)— 
Other(1,642)(300)
Total deferred tax liability(36,656)(34,005)
Net deferred tax asset$57,339 $34,998 
Schedule of Unrecognized Tax Benefits Roll Forward
Unrecognized Tax Benefits
For the fiscal years ended
December 30December 31January 1
202220212021
Balance - beginning of period$228 $3,150 $2,300 
Increase related to current year tax positions— — 664 
Increase related to prior year tax positions— — 187 
Decrease related to prior year tax positions(109)(2,923)— 
Increase (decrease) due to expiration of statute of limitations— 1 (1)
Balance - end of period$119 $228 $3,150 
v3.22.4
Fair Value Measurement and Financial Instruments (Tables)
 12 Months Ended
Dec. 30, 2022
Fair Value Disclosures [Abstract]  
Liabilities Measured at Fair Value on Recurring Basis
The following table presents the Company's hierarchy for its assets, liabilities and redeemable non-controlling interest measured at fair value on a recurring basis as of the following periods:
December 30, 2022December 31, 2021
Level 1Level 2Level 3TotalLevel 1Level 2Level 3Total
Assets:
Interest Rate Swap$— $5,087 $— $5,087 $— $3,583 $— $3,583 
Total assets measured at fair value$— $5,087 $— $5,087 $— $3,583 $— $3,583 
Liabilities:
Prior Credit Facility$— $— $— $— $— $378,453 $— $378,453 
Total liabilities measured at fair value$— $— $— $— $— $378,453 $— $378,453 
v3.22.4
Acquisitions (Tables)
 12 Months Ended
Dec. 30, 2022
Business Combination and Asset Acquisition [Abstract]  
Allocation of Purchase Price to Assets Acquired and Liabilities Assumed
The Company’s allocation of the purchase price to the net tangible and intangible assets acquired and liabilities assumed is as follows:
Fair market values
Tangible assets acquired$28,678 
Liabilities assumed(32,479)
Intangible assets139,900 
Goodwill195,754 
               Total$331,853 
v3.22.4
Description of the Business, Basis of Presentation and Summary of Significant Accounting Policies - Additional Information (Details) - USD ($)
 9 Months Ended 12 Months Ended
Oct. 02, 2020
Dec. 30, 2022
Dec. 31, 2021
Jan. 01, 2021
Description of Business and Basis of Presentation [Line Items]        
Foreign currency transaction (losses) gains $ 396,000 $ 3,377,000 $ 455,000  
Internal use computer software costs capitalized   4,863,000    
Asset impairment charges   0 0 $ 0
Goodwill impairment   0    
Impairment of intangible assets   0 0 0
Estimates for unpaid claims   1,988,000 1,754,000  
Advertising expense   $ 4,813,000 $ 2,741,000 $ 2,188,000
Minimum        
Description of Business and Basis of Presentation [Line Items]        
Warranty period   1 year    
Maximum        
Description of Business and Basis of Presentation [Line Items]        
Warranty period   2 years    
Purchases | Supplier Concentration Risk        
Description of Business and Basis of Presentation [Line Items]        
Concentration risk, accounts receivable percentage 28.00% 34.00% 32.00%  
Accounts Payable | Supplier Concentration Risk        
Description of Business and Basis of Presentation [Line Items]        
Concentration risk, accounts receivable percentage   38.00% 10.00%  
U.S.        
Description of Business and Basis of Presentation [Line Items]        
Cash and cash equivalents   $ 64,859,000    
International        
Description of Business and Basis of Presentation [Line Items]        
Cash and cash equivalents   $ 80,391,000    
v3.22.4
Description of the Business, Basis of Presentation and Summary of Significant Accounting Policies - Customers Accounted for 10% or More of Accounts Receivable Balance (Details) - Accounts Receivable - Customer Concentration Risk
 12 Months Ended
Dec. 30, 2022
Dec. 31, 2021
Customer A    
Concentration Risk [Line Items]    
Concentration risk, percentage 14.00% 6.00%
Customer B    
Concentration Risk [Line Items]    
Concentration risk, percentage 9.00% 11.00%
Customer C    
Concentration Risk [Line Items]    
Concentration risk, percentage 8.00% 10.00%
v3.22.4
Description of the Business, Basis of Presentation and Summary of Significant Accounting Policies - Activity in Allowance For Doubtful Accounts (Details) - Allowance for Doubtful Accounts - USD ($)
$ in Thousands
 12 Months Ended
Dec. 30, 2022
Dec. 31, 2021
Jan. 01, 2021
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]      
Balance, beginning of year $ 410 $ 663 $ 810
Add: bad debt expense (benefit) 446 (14) 103
Less: write-offs, net of recoveries (413) (239) (250)
Balance, end of year $ 443 $ 410 $ 663
v3.22.4
Description of the Business, Basis of Presentation and Summary of Significant Accounting Policies - Depreciation and Amortization Periods for the Company's Property and Equipment (Details)
 12 Months Ended
Dec. 30, 2022
Building and building improvements | Minimum  
Property, Plant and Equipment [Line Items]  
Property and equipment, estimated useful life 15 years
Building and building improvements | Maximum  
Property, Plant and Equipment [Line Items]  
Property and equipment, estimated useful life 39 years
Information systems, office equipment and furniture | Minimum  
Property, Plant and Equipment [Line Items]  
Property and equipment, estimated useful life 3 years
Information systems, office equipment and furniture | Maximum  
Property, Plant and Equipment [Line Items]  
Property and equipment, estimated useful life 7 years
Internal-use computer software  
Property, Plant and Equipment [Line Items]  
Property and equipment, estimated useful life 10 years
Land improvements  
Property, Plant and Equipment [Line Items]  
Property and equipment, estimated useful life 15 years
Machinery and manufacturing equipment | Minimum  
Property, Plant and Equipment [Line Items]  
Property and equipment, estimated useful life 5 years
Machinery and manufacturing equipment | Maximum  
Property, Plant and Equipment [Line Items]  
Property and equipment, estimated useful life 15 years
Transportation equipment | Minimum  
Property, Plant and Equipment [Line Items]  
Property and equipment, estimated useful life 3 years
Transportation equipment | Maximum  
Property, Plant and Equipment [Line Items]  
Property and equipment, estimated useful life 5 years
v3.22.4
Revenues - Sales by Product Category (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 30, 2022
Dec. 31, 2021
Jan. 01, 2021
Disaggregation of Revenue [Line Items]      
Sales $ 1,602,491 $ 1,299,064 $ 890,554
Powered Vehicles      
Disaggregation of Revenue [Line Items]      
Sales 921,520 720,029 523,694
Specialty Sports      
Disaggregation of Revenue [Line Items]      
Sales $ 680,971 $ 579,035 $ 366,860
v3.22.4
Revenues - Sales by Sales Channel (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 30, 2022
Dec. 31, 2021
Jan. 01, 2021
Disaggregation of Revenue [Line Items]      
Sales $ 1,602,491 $ 1,299,064 $ 890,554
OEM      
Disaggregation of Revenue [Line Items]      
Sales 909,550 718,000 494,068
Aftermarket      
Disaggregation of Revenue [Line Items]      
Sales $ 692,941 $ 581,064 $ 396,486
v3.22.4
Revenues - Sales by Geographic Location (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 30, 2022
Dec. 31, 2021
Jan. 01, 2021
Disaggregation of Revenue [Line Items]      
Sales $ 1,602,491 $ 1,299,064 $ 890,554
North America      
Disaggregation of Revenue [Line Items]      
Sales 1,009,203 811,312 593,267
Asia      
Disaggregation of Revenue [Line Items]      
Sales 252,275 241,033 144,836
Europe      
Disaggregation of Revenue [Line Items]      
Sales 320,545 230,491 143,817
Rest of the world      
Disaggregation of Revenue [Line Items]      
Sales $ 20,468 $ 16,228 $ 8,634
v3.22.4
Inventory (Details) - USD ($)
$ in Thousands
Dec. 30, 2022
Dec. 31, 2021
Inventory Disclosure [Abstract]    
Raw materials $ 247,441 $ 200,460
Work-in-process 9,959 7,539
Finished goods 93,220 71,838
Total inventory $ 350,620 $ 279,837
v3.22.4
Prepaids and Other Current Assets (Details) - USD ($)
$ in Thousands
Dec. 30, 2022
Dec. 31, 2021
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]    
Prepaid chassis deposits $ 74,013 $ 98,618
Advanced payments and prepaid contracts 13,598 14,024
Other current assets 13,753 10,465
Total prepaids and other assets $ 101,364 $ 123,107
v3.22.4
Property, Plant and Equipment, net - Components (Details) - USD ($)
$ in Thousands
Dec. 30, 2022
Dec. 31, 2021
Property, Plant and Equipment [Line Items]    
Property, plant and equipment gross $ 295,308 $ 271,274
Less: accumulated depreciation and amortization (93,093) (79,271)
Total property, plant and equipment, net 202,215 192,003
Building and building improvements    
Property, Plant and Equipment [Line Items]    
Property, plant and equipment gross 73,594 72,088
Information systems, office equipment and furniture    
Property, Plant and Equipment [Line Items]    
Property, plant and equipment gross 21,655 20,988
Internal-use computer software    
Property, Plant and Equipment [Line Items]    
Property, plant and equipment gross 30,290 25,700
Land and land improvements    
Property, Plant and Equipment [Line Items]    
Property, plant and equipment gross 14,493 15,663
Leasehold improvements    
Property, Plant and Equipment [Line Items]    
Property, plant and equipment gross 20,078 22,835
Machinery and manufacturing equipment    
Property, Plant and Equipment [Line Items]    
Property, plant and equipment gross 122,748 106,628
Transportation equipment    
Property, Plant and Equipment [Line Items]    
Property, plant and equipment gross $ 12,450 $ 7,372
v3.22.4
Property, Plant and Equipment, net - Additional Information (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 30, 2022
Dec. 31, 2021
Jan. 01, 2021
Property, Plant and Equipment [Abstract]      
Depreciation expense $ 27,705 $ 22,741 $ 16,341
Amortization of internal use software 3,787 $ 2,492 $ 2,250
Internal use computer software costs capitalized $ 4,863    
v3.22.4
Property, Plant and Equipment, net - Summary of Depreciation Expense (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 30, 2022
Dec. 31, 2021
Jan. 01, 2021
Property, Plant and Equipment [Line Items]      
Depreciation expense $ 27,705 $ 22,741 $ 16,341
Cost of sales      
Property, Plant and Equipment [Line Items]      
Depreciation expense 13,741 11,656 9,266
General and administrative      
Property, Plant and Equipment [Line Items]      
Depreciation expense 11,003 8,780 4,868
Research and development      
Property, Plant and Equipment [Line Items]      
Depreciation expense 2,441 2,080 2,044
Sales and marketing      
Property, Plant and Equipment [Line Items]      
Depreciation expense $ 520 $ 225 $ 163
v3.22.4
Property, Plant and Equipment, net - Long-lived Assets by Geographic Location (Details) - USD ($)
$ in Thousands
Dec. 30, 2022
Dec. 31, 2021
Property, Plant and Equipment [Line Items]    
Long-lived assets $ 202,215 $ 192,003
United States    
Property, Plant and Equipment [Line Items]    
Long-lived assets 166,544 161,451
International    
Property, Plant and Equipment [Line Items]    
Long-lived assets $ 35,671 $ 30,552
v3.22.4
Leases - Narrative (Details)
 12 Months Ended
Dec. 30, 2022
Lessee, Lease, Description [Line Items]  
Renewal term 10 years
Lease termination period 1 year
Weighted average remaining lease term 5 years 7 months 20 days
Weighted-average incremental borrowing rate 2.42%
Minimum  
Lessee, Lease, Description [Line Items]  
Remaining term 1 year
Maximum  
Lessee, Lease, Description [Line Items]  
Remaining term 10 years
v3.22.4
Leases - Lease Costs (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 30, 2022
Dec. 31, 2021
Jan. 01, 2021
Leases [Abstract]      
Operating lease cost $ 11,209 $ 9,124 $ 7,201
Other lease costs 3,638 1,122 937
Total $ 14,847 $ 10,246 $ 8,138
v3.22.4
Leases - Supplemental Balance Sheet Information (Details) - USD ($)
$ in Thousands
Dec. 30, 2022
Dec. 31, 2021
Leases [Abstract]    
Lease right-of-use assets $ 48,096 $ 38,752
Current portion of lease liabilities 10,314 $ 9,095
Lease liabilities less current portion $ 37,098  
v3.22.4
Leases - Maturity of Lease Liabilities (Details) - USD ($)
$ in Thousands
Dec. 30, 2022
Dec. 31, 2021
Leases [Abstract]    
2023 $ 11,376  
2024 10,480  
2025 8,123  
2026 7,027  
2027 4,418  
Thereafter 9,649  
Total lease payments 51,073  
Less: imputed interest (3,661)  
Present value of lease liabilities 47,412  
Less: current portion (10,314) $ (9,095)
Lease liabilities less current portion $ 37,098  
Operating Lease, Liability, Statement of Financial Position [Extensible List] Liabilities  
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] Accrued expenses Accrued expenses
v3.22.4
Goodwill and Intangible Assets - Intangible Assets Excluding Goodwill (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 30, 2022
Dec. 31, 2021
Intangible Asset Excluding Goodwill [Line Items]    
Gross carrying amount $ 247,644 $ 244,148
Accumulated amortization (124,234) (102,697)
Net carrying amount 123,410 141,451
Intangible assets, excluding goodwill 178,980 197,021
Trademarks and brands    
Intangible Asset Excluding Goodwill [Line Items]    
Trademarks and brands, not subject to amortization 55,570 55,570
Customer relationships    
Intangible Asset Excluding Goodwill [Line Items]    
Gross carrying amount 195,910 195,910
Accumulated amortization (86,023) (66,240)
Net carrying amount $ 109,887 $ 129,670
Weighted average life (years) 10 years 10 years
Core technology    
Intangible Asset Excluding Goodwill [Line Items]    
Gross carrying amount $ 39,291 $ 35,795
Accumulated amortization (34,412) (33,989)
Net carrying amount $ 4,879 $ 1,806
Weighted average life (years) 8 years 8 years
Trademarks and brands, subject to amortization    
Intangible Asset Excluding Goodwill [Line Items]    
Gross carrying amount $ 12,443 $ 12,443
Accumulated amortization (3,799) (2,468)
Net carrying amount $ 8,644 $ 9,975
Weighted average life (years) 9 years 9 years
v3.22.4
Goodwill and Intangible Assets - Amortization of Intangibles (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 30, 2022
Dec. 31, 2021
Jan. 01, 2021
Finite-Lived Intangible Assets, Net [Abstract]      
Amortization of intangibles $ 21,537 $ 20,685 $ 17,583
v3.22.4
Goodwill and Intangible Assets - Future Amortization Expense (Details) - USD ($)
$ in Thousands
Dec. 30, 2022
Dec. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]    
2023 $ 21,058  
2024 20,851  
2025 18,216  
2026 17,658  
2027 16,307  
Thereafter 29,320  
Net carrying amount $ 123,410 $ 141,451
v3.22.4
Goodwill and Intangible Assets - Goodwill Rollforward Activity (Details)
$ in Thousands
 12 Months Ended
Dec. 30, 2022
USD ($)
Finite-lived Intangible Assets [Roll Forward]  
Balance as of December 31, 2021 $ 323,299
Acquisitions (Refer to Note 18. Acquisitions) 714
Currency translation and other adjustments (35)
Balance as of December 30, 2022 $ 323,978
v3.22.4
Accrued Expenses - Components (Details) - USD ($)
$ in Thousands
Dec. 30, 2022
Dec. 31, 2021
Jan. 01, 2021
Jan. 03, 2020
Payables and Accruals [Abstract]        
Payroll and related expenses $ 38,193 $ 32,968    
Current portion of lease liabilities 10,314 9,095    
Warranty 17,071 15,510 $ 9,835 $ 5,649
Income tax payable 40,701 34,845    
Accrued sales rebate 8,693 8,568    
NCI buyout liability 0 2,700    
Other accrued expenses 12,757 8,692    
Accrued expenses $ 127,729 $ 112,378    
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] Accrued expenses Accrued expenses    
v3.22.4
Accrued Expenses - Activity Related to Warranties (Details) - USD ($)
$ in Thousands
 9 Months Ended 12 Months Ended
Oct. 02, 2020
Dec. 30, 2022
Dec. 31, 2021
Movement in Standard Product Warranty Accrual [Roll Forward]      
Beginning warranty liability $ 5,649 $ 15,510 $ 9,835
Charge to cost of sales 6,887 11,387 13,603
Fair value of warranty assumed in acquisition 3,158 0 150
Costs incurred $ (5,859) (9,826) (8,078)
Ending warranty liability   $ 17,071 $ 15,510
v3.22.4
Related Party Transactions (Details) - SCA - USD ($)
$ in Thousands
 12 Months Ended
Jul. 22, 2020
Dec. 30, 2022
Dec. 31, 2021
Jan. 01, 2021
Related Party Transaction [Line Items]        
Purchase of parts and vehicles   $ 2,015 $ 1,206 $ 1,172
Sale of upfit packages   1,010 538 $ 404
Accounts payable   $ 99 105  
Accounts receivable     $ 50  
Call option to acquire remaining interest (as a percent) 20.00%      
Total consideration at closing $ 24,975      
v3.22.4
Debt - First Amended and Restated Credit Facility (Details) - USD ($)
$ in Thousands
 12 Months Ended
Apr. 05, 2022
Dec. 30, 2022
Dec. 31, 2021
Jun. 30, 2019
Debt Instrument [Line Items]        
Maximum borrowing capacity   $ 650,000 $ 250,000 $ 250,000
Debt issuance costs $ 1,980      
Weighted average interest rate on outstanding borrowings   4.38%    
Unamortized debt issuance costs 4,473 $ 1,927    
Letter of Credit        
Debt Instrument [Line Items]        
Maximum borrowing capacity $ 650,000      
Secured Overnight Financing Rate (SOFR)        
Debt Instrument [Line Items]        
Basis spread on variable rate (as a percent) 0.10%      
Secured Overnight Financing Rate (SOFR) | One-Month Rate        
Debt Instrument [Line Items]        
Basis spread on variable rate (as a percent)   4.06%    
Secured Overnight Financing Rate (SOFR) | Three-Month Rate        
Debt Instrument [Line Items]        
Basis spread on variable rate (as a percent)   3.62%    
Fed Funds Effective Rate Overnight Index Swap Rate        
Debt Instrument [Line Items]        
Basis spread on variable rate (as a percent) 0.50%      
Minimum | Secured Overnight Financing Rate (SOFR)        
Debt Instrument [Line Items]        
Basis spread on variable rate (as a percent) 1.00%      
Maximum | Secured Overnight Financing Rate (SOFR)        
Debt Instrument [Line Items]        
Basis spread on variable rate (as a percent) 2.00%      
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      
Unamortized debt issuance costs   $ 2,546    
Line of Credit | Base Rate | Revolving Credit Facility        
Debt Instrument [Line Items]        
Basis spread on variable rate (as a percent) 1.00%      
Line of Credit | Minimum | Base Rate | Revolving Credit Facility        
Debt Instrument [Line Items]        
Basis spread on variable rate (as a percent) 0.00%      
Line of Credit | Maximum | Base Rate | Revolving Credit Facility        
Debt Instrument [Line Items]        
Basis spread on variable rate (as a percent) 1.00%      
v3.22.4
Debt - Summary of Amended and Restated Credit Facility (Details) - USD ($)
$ in Thousands
Dec. 30, 2022
Dec. 31, 2021
Jun. 30, 2019
Debt Disclosure [Abstract]      
Amount outstanding $ 200,000 $ 0  
Standby letters of credit 0 15,000  
Available borrowing capacity 450,000 235,000  
Total borrowing capacity $ 650,000 $ 250,000 $ 250,000
v3.22.4
Derivatives and Hedging - Schedule of Interest Rate Derivatives (Details) - USD ($)
$ in Thousands
Dec. 30, 2022
Dec. 31, 2021
Jun. 11, 2021
Derivative Instruments and Hedging Activities Disclosures [Line Items]      
Unrealized Gain (Loss) in AOCI $ 14,456 $ 3,859  
Interest Rate Swap September 2020 To June 2021      
Derivative Instruments and Hedging Activities Disclosures [Line Items]      
Notional Amount 200,000    
Unrealized Gain (Loss) in AOCI 189 276 $ 324
Interest Rate Swap July 2021 To March 2025      
Derivative Instruments and Hedging Activities Disclosures [Line Items]      
Notional Amount 200,000    
Unrealized Gain (Loss) in AOCI 9,180 3,583 $ 12,270
Interest Rate Swap April 2022 To April 2027      
Derivative Instruments and Hedging Activities Disclosures [Line Items]      
Notional Amount 100,000    
Unrealized Gain (Loss) in AOCI $ 5,087 $ 0  
v3.22.4
Derivatives and Hedging (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 30, 2022
Dec. 31, 2021
Jan. 01, 2021
Apr. 05, 2022
Jun. 11, 2021
Derivative Instruments and Hedging Activities Disclosures [Line Items]          
Unrealized gain in AOCI on terminated swap $ 14,456 $ 3,859      
Other comprehensive income (loss), derivative instruments 14,824 3,644 $ (699)    
Interest Rate Swap          
Derivative Instruments and Hedging Activities Disclosures [Line Items]          
Notional Amount       $ 100,000  
Unrealized gain in AOCI on terminated swap 14,456        
Other comprehensive income (loss), derivative instruments 14,824 3,645      
Cash flow hedges, derivative instruments (2,750) 600 $ 115    
Losses to be reclassified over the next twelve months (3,256)        
Interest Rate Swap September 2020 To June 2021          
Derivative Instruments and Hedging Activities Disclosures [Line Items]          
Notional Amount 200,000        
Unrealized gain in AOCI on terminated swap 189 276     $ 324
Interest Rate Swap July 2021 To March 2025          
Derivative Instruments and Hedging Activities Disclosures [Line Items]          
Notional amount terminated         200,000
Notional Amount 200,000        
Unrealized gain in AOCI on terminated swap $ 9,180 $ 3,583     $ 12,270
v3.22.4
Commitments and Contingencies - Additional Information (Details) - USD ($)
$ in Thousands
 12 Months Ended
Feb. 17, 2023
Jul. 22, 2020
Mar. 11, 2020
Dec. 30, 2022
Dec. 31, 2021
Jan. 01, 2021
Nov. 30, 2017
Business Acquisition [Line Items]              
Installment Payments to Acquire Business, Remainder of Year           $ 6,556  
Installment Payment to Acquire Business, Year Two         $ 4,550    
Installment Payments to Acquire Business, Year Three       $ 2,700      
Installment on purchase of non-controlling interest       $ (2,700) $ (4,550) $ (6,556)  
Redeemable non-controlling interest (in shares)       136,000      
Shares released (in shares)       58,000 78,000    
SCA              
Business Acquisition [Line Items]              
Call option to acquire remaining interest (as a percent)   20.00%          
Total consideration at closing   $ 24,975          
Subsequent Event              
Business Acquisition [Line Items]              
Total consideration at closing $ 131,600            
SCA              
Business Acquisition [Line Items]              
Call option to acquire remaining interest (as a percent)   20.00%         20.00%
Total consideration at closing     $ 331,853        
v3.22.4
Stockholders' Equity - Secondary Stock Offering (Details)
$ / shares in Units, $ in Thousands
Jun. 30, 2020
USD ($)
$ / shares
shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Sale of Stock, Underwriters Commissions $ 511
Underwriter's Option  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Sale of Stock, Number of Shares Issued in Transaction | shares 360,000
Sale of Stock, Consideration Received on Transaction $ 198,233
Secondary Stock Offering  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Sale of Stock, Number of Shares Issued in Transaction | shares 2,760,000
Sale of Stock, Price Per Share | $ / shares $ 76.00
Sale of Stock, Consideration Received Per Transaction $ 209,760
Sale of Stock, Underwriters Discounts $ 11,015
v3.22.4
Stockholders' Equity - Equity Incentive Plans (Details)
shares in Thousands
 12 Months Ended
Dec. 30, 2022
shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Shares reserved for future issuance 4,889
Number of shares available for grant 4,463
Stock Option  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Award vesting period 4 years
Award expiration period 10 years
Stock Option | Minimum  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Award vesting period 1 year
Stock Option | Maximum  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Award vesting period 10 years
v3.22.4
Stockholders' Equity - Summary of Allocation of Stock-Based Compensation in Accompanying Consolidated Statements of Income (Details) - USD ($)
$ in Thousands
 12 Months Ended
Jan. 01, 2021
Dec. 30, 2022
Dec. 31, 2021
Jan. 01, 2021
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]        
Allocation of stock-based compensation $ 421 $ 16,351 $ 13,914 $ 8,618
Cost of sales        
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]        
Allocation of stock-based compensation   957 710 625
Sales and marketing        
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]        
Allocation of stock-based compensation   924 803 635
Research and development        
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]        
Allocation of stock-based compensation   946 944 788
General and administrative        
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]        
Allocation of stock-based compensation   $ 13,524 $ 11,457 $ 6,570
v3.22.4
Stockholders' Equity - Summary of Unvested RSUs Activity (Details) - RSUs - $ / shares
shares in Thousands
 12 Months Ended
Dec. 30, 2022
Dec. 31, 2021
Jan. 01, 2021
Number of shares outstanding      
Unvested outstanding, beginning balance (in shares) 338 450 427
Granted (in shares) 142 89 260
Canceled (in shares) (17) (24) (13)
Vested (in shares) (166) (177) (224)
Unvested outstanding, ending balance (in shares) 297 338 450
Weighted-average grant date fair value      
Unvested outstanding, beginning balance (in dollars per share) $ 76.30 $ 50.12 $ 44.98
Granted (in dollars per share) 95.34 149.08 47.46
Canceled (in dollars per share) 97.00 56.21 48.51
Vested (in dollars per share) 73.14 49.17 37.34
Unvested outstanding, ending balance (in dollars per share) $ 87.05 $ 76.30 $ 50.12
v3.22.4
Stockholders' Equity - Restricted Stock Units (Details) - RSUs - USD ($)
$ in Thousands
 12 Months Ended
Dec. 30, 2022
Dec. 31, 2021
Jan. 01, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Fair value of vested awards $ 15,140 $ 27,213 $ 15,625
Unrecognized stock-based compensation expense $ 17,591    
Period for recognition of unrecognized stock-based compensation expense 1 year 9 months 3 days    
v3.22.4
Stockholders' Equity - Unvested PSU Activity (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
 12 Months Ended
Dec. 30, 2022
Dec. 31, 2021
Number of shares outstanding    
Canceled (in shares) (33) (192)
PSU    
Number of shares outstanding    
Unvested outstanding, beginning balance (in shares) 29 0
Granted (in shares) 37 29
Canceled (in shares) (4)  
Vested (in shares) (14)  
Unvested outstanding, ending balance (in shares) 48 29
Weighted-average grant date fair value    
Unvested outstanding, beginning balance (in dollars per share) $ 141.46 $ 0
Granted (in dollars per share) 120.90 141.46
Canceled (in dollars per share) 126.73  
Vested (in dollars per share) 141.46  
Unvested outstanding, ending balance (in dollars per share) $ 126.69 $ 141.46
Unrecognized stock-based compensation expense $ 7,178  
Period for recognition of unrecognized stock-based compensation expense 1 year 8 months 23 days  
PSU | Minimum    
Weighted-average grant date fair value    
Share-based Compensation Arrangement by Share-based Payment Award, Terms of Award 2  
Award vesting percentage 0.00%  
PSU | Maximum    
Weighted-average grant date fair value    
Share-based Compensation Arrangement by Share-based Payment Award, Terms of Award 3  
Award vesting percentage 200.00%  
v3.22.4
Stockholders' Equity - Stock Option Activity (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
 12 Months Ended
Dec. 30, 2022
Dec. 31, 2021
Jan. 01, 2021
Jan. 03, 2020
Number of shares outstanding        
Options outstanding, beginning balance (in shares) 33   431  
Options exercised (in shares) (33) (192) (206)  
Options forfeited (in shares)     225  
Options expired (in shares) (33) (192)    
Options outstanding, ending balance (in shares) 0 33   431
Weighted-average exercise price        
Options outstanding, beginning of period (in dollars per share)   $ 5.37 $ 5.27  
Options exercised (in dollars per share) $ 0 5.41 5.16  
Options forfeited (in dollars per share)   $ 5.16    
Options expired (in dollars per share) 5.16      
Options outstanding, ending balance (in dollars per share) $ 0   $ 5.37 $ 5.27
Weighted-average remaining contractual life (years)        
Options outstanding 0 years 1 year 2 years 2 years
Aggregate intrinsic value        
Options outstanding $ 0   $ 22,593 $ 27,814
Options exercised 0 $ 25,751 $ 19,724  
Balance at December 31, 2021   $ 5,389    
Options exercised $ 2,470      
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Number 0      
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Weighted Average Remaining Contractual Term 0 years      
v3.22.4
Stockholders' Equity - Stock Options (Details) - USD ($)
shares in Thousands, $ in Thousands
 12 Months Ended
Dec. 30, 2022
Dec. 31, 2021
Jan. 01, 2021
Share-Based Payment Arrangement [Abstract]      
Shares issued due to exercise of stock options 33 192 206
Proceeds from exercise of stock options $ 169 $ 1,042 $ 1,063
v3.22.4
Earnings Per Share - Calculation of Basic and Diluted Earnings Per Share (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
 12 Months Ended
Dec. 30, 2022
Dec. 31, 2021
Jan. 01, 2021
Earnings Per Share [Abstract]      
Net income attributable to FOX stockholders $ 205,278 $ 163,818 $ 90,674
Weighted average shares used to compute basic earnings per share (in shares) 42,232 42,022 40,229
Dilutive effect of employee stock plans (in shares) 152 344 572
Weighted average shares used to compute diluted earnings per share (in shares) 42,384 42,366 40,801
Basic (in dollars per share) $ 4.86 $ 3.90 $ 2.25
Diluted (in dollars per share) $ 4.84 $ 3.87 $ 2.22
Anti-dilutive shares excluded from calculation of diluted earnings per share 20 0 0
v3.22.4
Income Taxes - Components of Income Tax Expense (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 30, 2022
Dec. 31, 2021
Jan. 01, 2021
Current:      
Federal $ 33,622 $ 30,698 $ 18,061
State 4,372 (138) 1,590
Foreign 11,964 8,617 8,043
Total current 49,958 39,177 27,694
Deferred:      
Federal (17,447) (14,447) (14,589)
State (2,837) (23) 373
Foreign (1,188) (144) (694)
Total deferred (21,472) (14,614) (14,910)
Total provision $ 28,486 $ 24,563 $ 12,784
v3.22.4
Income Taxes - Income Before Provision by Jurisdiction (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 30, 2022
Dec. 31, 2021
Jan. 01, 2021
Income Tax Disclosure [Abstract]      
United States $ 197,640 $ 149,238 $ 74,777
Foreign 36,124 39,143 29,753
Income before income taxes $ 233,764 $ 188,381 $ 104,530
v3.22.4
Income Taxes - Reconciliation of Statutory Federal Rate and Effective Tax Rate (Details)
 12 Months Ended
Dec. 30, 2022
Dec. 31, 2021
Jan. 01, 2021
Effective Income Tax Rate Continuing Operations Tax Rate Reconciliation [Abstract]      
Tax at federal statutory rate 21.00% 21.00% 21.00%
Foreign derived income benefit (6.60%) (5.80%) (5.00%)
Valuation allowance on foreign tax credits (3.80%) 1.10% 0.70%
Research and development tax credit (2.90%) (1.10%) (0.90%)
Foreign withholding taxes, net of foreign tax credits 1.10% 0.00% 0.00%
Executive compensation deduction limitation 0.80% 1.20% 0.80%
State taxes, net of federal benefit 0.60% 1.90% 1.80%
Stock-based compensation (0.50%) (5.00%) (5.90%)
Change in liability for unrecognized tax benefits 0.00% (1.40%) 0.60%
Other 2.50% 1.10% (0.90%)
Effective Income Tax Rate Reconciliation, Percent, Total 12.20% 13.00% 12.20%
v3.22.4
Income Taxes - Additional Information (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 30, 2022
Dec. 31, 2021
Jan. 01, 2021
Jan. 03, 2020
Tax Credit Carryforward [Line Items]        
Decrease in valuation allowance $ 9,161      
Unrecognized tax benefits $ 119 $ 228 $ 3,150 $ 2,300
Foreign        
Tax Credit Carryforward [Line Items]        
Tax credit carryforward   $ 47,779    
v3.22.4
Income Taxes - Significant Components of Deferred Tax Assets and Liabilities (Details) - USD ($)
$ in Thousands
Dec. 30, 2022
Dec. 31, 2021
Deferred tax assets:    
Foreign tax credits, including amounts associated with accrued charges $ 47,779 $ 48,329
Inventory 8,222 5,452
Accrued liabilities 7,146 9,319
Lease liability 6,077 3,646
Capitalized research & development 16,502 5,880
Stock-based compensation 0 2,254
Research and development tax credits 3,963 2,721
Other 4,586 625
Total deferred tax asset 94,275 78,226
Valuation allowance (280) (9,223)
Net deferred tax asset 93,995 69,003
Deferred tax liabilities:    
Intangible assets (23,078) (23,357)
Depreciation (5,583) (5,711)
Lease right-of-use asset (6,232) (3,783)
Accrued withholding tax on unremitted foreign dividends 0 (854)
Stock-based compensation (121) 0
Other (1,642) (300)
Total deferred tax liability (36,656) (34,005)
Deferred tax assets $ 57,339 $ 34,998
v3.22.4
Income Taxes - Unrecognized Tax Benefit - Activity (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 30, 2022
Dec. 31, 2021
Jan. 01, 2021
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]      
Balance - beginning of period $ 228 $ 3,150 $ 2,300
Increase related to current year tax positions 0 0 664
Increase related to prior year tax positions 0 0 187
Decrease related to prior year tax positions (109) (2,923) 0
Increase (decrease) due to expiration of statute of limitations 0 1 (1)
Balance - end of period $ 119 $ 228 $ 3,150
v3.22.4
Fair Value Measurements and Financial Instruments - Liabilities at Fair Value on Recurring Basis (Details) - USD ($)
$ in Thousands
Dec. 30, 2022
Dec. 31, 2021
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Total assets measured at fair value $ 5,087 $ 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 5,087 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 0 0
Level 2    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Total assets measured at fair value 5,087 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 5,087 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 $ 0 $ 0
v3.22.4
Retirement Plan (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 30, 2022
Dec. 31, 2021
Jan. 01, 2021
Retirement Benefits [Abstract]      
Matching contribution made under the plan $ 3,649 $ 2,655 $ 2,078
v3.22.4
Acquisitions - Additional Information (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 30, 2021
May 25, 2021
May 21, 2021
Mar. 11, 2020
Dec. 30, 2022
Dec. 31, 2021
Jan. 01, 2021
Business Acquisition [Line Items]              
Goodwill         $ 323,978 $ 323,299  
SCA              
Business Acquisition [Line Items]              
Total consideration at closing       $ 331,853      
Contingent retention       10,326      
Contingent retention, cash       9,036      
Contingent consideration, stock       1,290      
Costs associated with contingent retention         $ 955 5,160 $ 4,211
Transaction costs       10,582      
Transaction compensation           1,750  
Transaction costs           $ 602  
Additional debt issuance costs       6,622      
Goodwill       195,754      
Remaining net tax basis       77,989      
Net liabilities assumed       $ (32,479)      
SCA | Minimum              
Business Acquisition [Line Items]              
Useful lives       5 years      
SCA | Maximum              
Business Acquisition [Line Items]              
Useful lives       10 years      
Sola Sport Pty Ltd.              
Business Acquisition [Line Items]              
Total consideration at closing     $ 486        
Manifest Joy LLC              
Business Acquisition [Line Items]              
Ownership interest acquired (as a percent)       100.00%      
Total consideration at closing   $ 15,275          
Goodwill   10,772          
Net liabilities assumed   (1,057)          
Identifiable intangible assets   $ 5,560          
Manifest Joy LLC | Minimum              
Business Acquisition [Line Items]              
Useful lives   1 year          
Manifest Joy LLC | Maximum              
Business Acquisition [Line Items]              
Useful lives   10 years          
Shock Therapy LLC              
Business Acquisition [Line Items]              
Total consideration at closing $ 36,834            
Goodwill 24,504            
Net liabilities assumed (5,244)            
Identifiable intangible assets $ 7,086            
Shock Therapy LLC | Minimum              
Business Acquisition [Line Items]              
Useful lives 5 years            
Shock Therapy LLC | Maximum              
Business Acquisition [Line Items]              
Useful lives 10 years            
v3.22.4
Acquisitions - Allocation of Purchase Price (Details) - USD ($)
$ in Thousands
Dec. 30, 2022
Dec. 31, 2021
Mar. 11, 2020
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net [Abstract]      
Goodwill $ 323,978 $ 323,299  
SCA      
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net [Abstract]      
Tangible assets acquired     $ 28,678
Liabilities assumed     32,479
Intangible assets     139,900
Goodwill     195,754
Total     $ 331,853
v3.22.4
Subsequent Events (Details)
$ in Thousands
Feb. 17, 2023
USD ($)
Subsequent Event  
Subsequent Event [Line Items]  
Total consideration at closing $ 131,600
v3.22.4
Label Element Value
Temporary Equity,Carrying Amount, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance foxf_TemporaryEquityCarryingAmountIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance $ 8,184,000