FOX FACTORY HOLDING CORP, 10-K filed on 3/3/2020
Annual Report
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Cover page - USD ($)
 12 Months Ended
Jan. 03, 2020
Feb. 28, 2020
Jun. 28, 2019
Document And Entity Information [Abstract]      
Document Type 10-K    
Document Annual Report true    
Document Period End Date Jan. 03, 2020    
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 6634 Hwy 53    
Entity Address, City or Town Braselton    
Entity Address, State or Province GA    
Entity Address, Postal Zip Code 30517    
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    
Entity Shell Company false    
Entity Public Float     $ 1,991,818,000
Entity Common Stock, Shares Outstanding   38,602,699  
Amendment Flag false    
Document Fiscal Year Focus 2019    
Document Fiscal Period Focus FY    
Entity Central Index Key 0001424929    
Current Fiscal Year End Date --01-03    
Documents Incorporated by Reference Portions of the registrant’s Definitive Proxy Statement for the 2020 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.    
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Consolidated Balance Sheets - USD ($)
$ in Thousands
Jan. 03, 2020
Dec. 28, 2018
Current assets:    
Cash and cash equivalents $ 43,736 $ 27,958
Accounts receivable, net of allowances 91,632 78,882
Inventory 128,505 107,140
Prepaids and other current assets 17,940 17,967
Total current assets 281,813 231,947
Property, plant and equipment, net 108,379 64,788
Lease right-of-use assets 17,472  
Deferred tax assets 25,725 15,328
Goodwill 93,527 88,850
Intangibles, net 81,949 83,974
Other assets 451 367
Total assets 609,316 485,254
Current liabilities:    
Accounts payable 55,144 55,086
Accrued expenses 35,744 33,607
Reserve for uncertain tax positions 925 1,169
Current portion of long-term debt 0 6,923
Total current liabilities 91,813 96,785
Line of credit 68,000 0
Long-term debt, less current portion 0 52,503
Other liabilities 11,584 479
Total liabilities 171,397 149,767
Commitments and contingencies (Refer to Note 10 - Commitments and Contingencies)
Redeemable non-controlling interest 15,719 14,282
Stockholders’ equity    
Preferred stock, $0.001 par value — 10,000 authorized and no shares issued or outstanding as of January 3, 2020 and December 28, 2018 0 0
Common stock, $0.001 par value — 90,000 authorized; 39,448 shares issued and 38,559 outstanding as of January 3, 2020; 38,881 shares issued and 37,991 outstanding as of December 28, 2018 39 38
Additional paid-in capital 123,274 116,019
Treasury stock, at cost; 890 common shares as of January 3, 2020 and December 28, 2018 (13,754) (13,754)
Accumulated other comprehensive income (loss) 150 (784)
Retained earnings 312,491 219,686
Total stockholders’ equity 422,200 321,205
Total liabilities, redeemable non-controlling interest and stockholders’ equity $ 609,316 $ 485,254
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Consolidated Balance Sheets (Parenthetical) - USD ($)
$ in Thousands
Jan. 03, 2020
Dec. 28, 2018
Statement of Financial Position [Abstract]    
Accounts receivable, allowance for doubtful accounts $ 810 $ 600
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 39,448 38,881
Common stock, shares outstanding 38,559 37,991
Treasury stock, shares 890 890
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Consolidated Statements of Income - USD ($)
shares in Thousands, $ in Thousands
 12 Months Ended
Jan. 03, 2020
Dec. 28, 2018
Dec. 29, 2017
Income Statement [Abstract]      
Sales $ 751,020 $ 619,225 $ 475,633
Cost of sales 508,285 413,729 321,143
Gross profit 242,735 205,496 154,490
Operating expenses:      
Sales and marketing 42,794 37,296 27,905
Research and development 31,789 25,847 20,178
General and administrative 48,999 41,756 34,933
Amortization of purchased intangibles 6,344 6,065 2,986
Fair value adjustment of contingent consideration and acquisition-related compensation 0 0 1,447
Total operating expenses 129,926 110,964 87,449
Income from operations 112,809 94,532 67,041
Other expense, net:      
Interest expense 3,173 3,059 2,396
Other expense 1,067 583 360
Other expense, net 4,240 3,642 2,756
Income before income taxes 108,569 90,890 64,285
Provision for income taxes 14,099 5,523 21,102
Net income 94,470 85,367 43,183
Less: net income attributable to non-controlling interest 1,437 1,327 55
Net income attributable to Fox stockholders $ 93,033 $ 84,040 $ 43,128
Earnings per share:      
Basic (in dollars per share) $ 2.43 $ 2.22 $ 1.15
Diluted (in dollars per share) $ 2.38 $ 2.16 $ 1.11
Weighted average shares used to compute earnings per share:      
Basic (in shares) 38,333 37,805 37,373
Diluted (in shares) 39,155 38,956 38,738
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Consolidated Statements of Comprehensive Income - USD ($)
$ in Thousands
 12 Months Ended
Jan. 03, 2020
Dec. 28, 2018
Dec. 29, 2017
Statement of Comprehensive Income [Abstract]      
Net income $ 94,470 $ 85,367 $ 43,183
Other comprehensive income (loss)      
Foreign currency translation adjustments, net of tax effects 934 (616) 2,025
Other comprehensive income (loss) 934 (616) 2,025
Comprehensive income 95,404 84,751 45,208
Less: comprehensive income attributable to non-controlling interest 1,437 1,327 55
Comprehensive income attributable to Fox stockholders $ 93,967 $ 83,424 $ 45,153
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Consolidated Statements of Stockholders' Equity and Redeemable Non-controlling Interest - USD ($)
$ in Thousands
Total
Common Stock
Treasury
Additional paid-in capital
Accumulated other comprehensive (loss) income
Retained earnings
Beginning Balance (in shares) at Dec. 30, 2016   37,781,000 890,000      
Beginning Balance at Dec. 30, 2016 $ 184,937 $ 37 $ (13,754) $ 108,049 $ (2,193) $ 92,798
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)   716,000        
Issuance of common stock under equity compensation plans, net of shares repurchased for income tax withholding (3,982) $ 1   (3,983)    
Foreign currency translation adjustment 8,727     8,727    
Net Income 2,025       2,025  
Net Income (Loss) Attributable to Parent 43,128         43,128
Ending Balance (in shares) at Dec. 29, 2017   38,497,000 890,000      
Ending Balance at Dec. 29, 2017 234,835 $ 38 $ (13,754) 112,793 (168) 135,926
Beginning Balance at Dec. 30, 2016 0          
Increase (Decrease) in Temporary Equity [Roll Forward]            
Temporary equity, acquisitions 12,900          
Temporary equity, net income 55          
Ending Balance at Dec. 29, 2017 12,955          
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)   384,000        
Issuance of common stock under equity compensation plans, net of shares repurchased for income tax withholding (4,096)     (4,096)    
Foreign currency translation adjustment 7,322     7,322    
Net Income (616)       (616)  
Net Income (Loss) Attributable to Parent $ 84,040         84,040
Ending Balance (in shares) at Dec. 28, 2018 37,991 38,881,000 890,000      
Ending Balance at Dec. 28, 2018 $ 321,205 $ 38 $ (13,754) 116,019 (784) 219,686
Increase (Decrease) in Temporary Equity [Roll Forward]            
Temporary equity, net income 1,327          
Ending Balance at Dec. 28, 2018 14,282          
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)   469,000        
Issuance of common stock under equity compensation plans, net of shares repurchased for income tax withholding $ (6,775) $ 1   (6,776)    
Issuance of stock for business acquisition (in shares) 98,000          
Issuance of stock for business acquisition $ 7,167          
Foreign currency translation adjustment 6,864     6,864    
Net Income 934       934  
Net Income (Loss) Attributable to Parent $ 93,033         93,033
Ending Balance (in shares) at Jan. 03, 2020 38,559 39,448,000 890,000      
Ending Balance at Jan. 03, 2020 $ 422,200 $ 39 $ (13,754) $ 123,274 $ 150 $ 312,491
Increase (Decrease) in Temporary Equity [Roll Forward]            
Temporary equity, net income 1,437          
Ending Balance at Jan. 03, 2020 $ 15,719          
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Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
 12 Months Ended
Jan. 03, 2020
Dec. 28, 2018
Dec. 29, 2017
OPERATING ACTIVITIES:      
Net income $ 94,470 $ 85,367 $ 43,183
Adjustments to reconcile net income to net cash provided by operating activities:      
Depreciation and amortization 17,736 14,729 10,280
Stock-based compensation 6,864 7,322 8,727
Deferred taxes and uncertain tax positions (10,615) (19,286) (1,160)
Change in fair value of contingent consideration 0 0 (150)
Loss on extinguishment of debt 516    
Changes in operating assets and liabilities:      
Accounts receivable (12,061) (19,034) 3,554
Inventory (17,009) (22,998) (8,074)
Income taxes (3,586) 281 6,421
Prepaids and other assets 1,709 (377) (6,378)
Accounts payable (869) 15,193 2,243
Accrued expenses and other liabilities (2,325) 4,195 (10,474)
Net cash provided by operating activities 74,830 65,392 48,172
INVESTING ACTIVITIES:      
Acquisition of businesses (6,804) 0 (53,592)
Purchases of property and equipment (53,526) (30,203) (16,864)
Net cash used in investing activities (60,330) (30,203) (70,456)
FINANCING ACTIVITIES:      
Proceeds from line of credit 67,500 25,000 42,120
Payments on line of credit (57,053) (60,585) (7,000)
Payment of contingent consideration liability 0 0 (5,382)
Repayment of debt (2,813) (3,750) (3,750)
Cash from stock compensation program, net (6,775) (4,096) (3,981)
Net cash provided by (used in) financing activities 859 (43,431) 22,007
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS 419 253 944
CHANGE IN CASH AND CASH EQUIVALENTS 15,778 (7,989) 667
CASH AND CASH EQUIVALENTS—Beginning of year 27,958 35,947 35,280
CASH AND CASH EQUIVALENTS—End of year 43,736 27,958 35,947
SUPPLEMENTAL CASH FLOW INFORMATION:      
Cash paid during the period for Income taxes 28,293 24,610 15,951
Cash paid during the period for Interest 2,762 2,756 2,012
Non-cash investing and financing activities:      
Acquisition of business in exchange for equity 7,167    
Refinancing of the Second Amended and Restated Credit Facility 88,875 0  
Capital expenditures included in accounts payable 1,718 1,557 1,639
Non-controlling interests in acquired business 0 0 12,900
Tuscany      
Non-cash investing and financing activities:      
Debt assumed in acquisition of Tuscany $ 0 $ 0 $ 465
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Description of the Business, Basis of Presentation and Summary of Significant Accounting Policies
 12 Months Ended
Jan. 03, 2020
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 and manufactures performance-defining products primarily for bicycles ("bikes"), side-by-side vehicles ("Side-by-Sides"), on-road and off-road vehicles and trucks, all-terrain vehicles, or ATVs, snowmobiles, specialty vehicles and applications, motorcycles and commercial trucks. The Company is a direct supplier to leading power vehicle original equipment manufacturers ("OEMs") and provides aftermarket products to retailers, dealerships, and distributors. Additionally, the Company supplies top bicycle OEMs and their current contract manufacturers, and provides aftermarket products to retailers 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 2019, 2018 and 2017, the Company's fiscal year ended on January 3, 2020, December 28, 2018 and December 29, 2017 and had 53, 52 and 52 weeks, respectively.
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 $881, $420, and $181 for the years ended January 3, 2020, December 28, 2018 and December 29, 2017, respectively, are included as a component of other income or expense.
Cash and Cash Equivalents - Cash consists of cash maintained in a checking account. 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 doubtful accounts.
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 January 3, 2020 the Company held $3,118 in cash at U.S. subsidiaries and $40,618 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:
 January 3,December 28,
 20202018
Customer A11%  13%  
Customer B11%  12%  
Customer C10%  6%  
During the years ended January 3, 2020, December 28, 2018 and December 29, 2017, Customer A from the table above represented 11%, 8%, and 8% of sales, respectively. No other customers were individually significant in any of these periods.
The Company depends on a limited number of vendors to supply component parts for its products. The Company purchased 35%, 30%, and 35% of its product components for the years ended January 3, 2020, December 28, 2018 and December 29, 2017, respectively, from ten vendors. As of January 3, 2020 and December 28, 2018, amounts due to these vendors represented 29% and 23% of accounts payable, respectively.
Allowance for Doubtful Accounts - The Company records a provision for doubtful accounts based on historical experience and a detailed assessment of the collectability of its accounts receivable. In estimating the allowance for doubtful accounts, management considers, among other factors, the aging of the accounts receivable, historical write-offs, and the credit-worthiness of each customer. 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 doubtful accounts:
For the fiscal years ended
Allowance for doubtful accounts:201920182017
Balance, beginning of year$600  $676  $397  
Add: bad debt expense335  189  327  
Less: write-offs, net of recoveries(125) (265) (48) 
Balance, end of year$810  $600  $676  
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, 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
10-39 years
Information systems, office equipment and furniture
3-5 years
Internal-use computer software
10 years
Machinery and equipment
10-15 years
Manufacturing equipment
5-10 years
Transportation equipment
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 $2,445 in internal use computer software costs during the year ended January 3, 2020. 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 January 3, 2020, December 28, 2018 and December 29, 2017.
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 2019 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 include customer relationships 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. 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 January 3, 2020, December 28, 2018 and December 29, 2017.
Self-Insurance - The Company is partially 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 January 3, 2020 and December 28, 2018 are $842 and $801 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.
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 revenue 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. At January 3, 2020, the balance of deferred revenue related to pricing provisions was $172. These amounts are expected to be recognized over the next 12 months. Revenues exclude sales tax.
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 - Sales and marketing expenses include costs related to 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 race support and sponsorships of events and athletes, advertising and promotions related to trade shows, travel and entertainment, and promotional materials, products and sales offices costs.
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 has elected to account 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 January 3, 2020 was partially offset by foreign tax credits associated with the income and resulted in a net tax charge of $316.
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 recognized as sales and marketing expenses on our Consolidated Statements of Income. Costs incurred for advertising totaled $1,413, $902, and $1,070 for the years ended January 3, 2020, December 28, 2018 and December 29, 2017, respectively.
Warranties - The Company offers limited warranties on its products generally for one to four 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. 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. Amounts owed under the Company's credit facility approximate fair value due to the variable interest rate features embedded in both the line of credit and term debt. 
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.
Recent Accounting Pronouncements - In May 2014, the FASB and International Accounting Standards Board issued their converged standard on revenue recognition, ASU 2014-09, updated December 2016 with the release of ASU 2016-20. This standard outlines a single comprehensive model for companies to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. The core principle of the revenue model is that an entity recognizes revenue to depict the transfer of promised goods and services in an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods and services. In addition, the new standard requires that reporting companies disclose the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers.
The Company adopted this guidance as of the beginning of the first quarter of fiscal year 2018 using the modified retrospective implementation method. The Company applied the guidance to all open contracts at the date of initial application. Additionally, the Company used the practical expedient to omit the disclosure of remaining performance obligations for contracts with an original expected duration of one year or less. The primary impact of adopting the standard resulted from certain pricing provisions within contracts that provide the customer with a material right. Under the new standard, revenue attributed to such pricing provisions is deferred and recognized when the right is exercised by the customer. The Company recorded a cumulative effect adjustment of $368 gross and $281 net of taxes to the opening balance of retained earnings to reflect the cumulative effect of the adoption of the standard.
In February 2016, the FASB issued ASU 2016-02, Leases, which supersedes the existing guidance for lease accounting. To meet the objective of enabling users of financial statements to assess the amount, timing, and uncertainty of cash flows arising from leases, this ASU requires lessees to recognize most leases on the balance sheet as right-of-use assets and lease liabilities.
The Company adopted this guidance as of the beginning of the first quarter of fiscal year 2019, with a cumulative effect adjustment to the opening balance of retained earnings at December 28, 2018 with no restatement of comparative periods’ financial information ("current-period adjustment method"). Additionally, the Company adopted this guidance using practical expedients with respect to the assessment of embedded leases, lease classification, and initial indirect costs for expired and existing leases. The Company also elected the practical expedient related to treating lease and non-lease components as a single lease component for all of its leases and 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. The Company did not use the hindsight practical expedient to adopt this guidance. The Company recorded a cumulative effect adjustment of $13,637 to operating lease right-of-use assets, $13,937 to operating lease liabilities, and $300 gross ($228 net of taxes) to the opening balance of the Company's retained earnings to reflect the cumulative effect of the adoption of the standard. This standard did not have a material impact on our consolidated income statements.
In June 2016, the FASB issue ASU 2016-13, Financial Instruments: Credit Losses, which adds an impairment model that is based on expected losses rather than incurred losses. Under this standard, an entity recognizes as an allowance its estimate of expected credit losses, which the FASB believes will result in more timely recognition of such losses. This standard is effective for public companies for fiscal years beginning after December 15, 2019, including interim reporting periods within those years and early adoption is permitted. The Company does not expect the impact of this adoption to be material.
In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments, which clarifies the presentation of certain transactions, including but not limited to contingent consideration payments made after a business combination and debt prepayment and extinguishment costs in the cash flow statement. The Company adopted ASU 2016-16 effective in the first quarter of fiscal year 2019. The adoption of ASU 2016-15 did not have a material impact on the Company's consolidated financial statements.
In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement, which modifies the disclosure requirements of fair value measurements in Topic 820. This standard is effective for fiscal years beginning after December 15, 2019. The Company is currently assessing the impact this guidance will have on its consolidated financial statements.
In August 2018, the FASB issued ASU 2018-15, Intangibles - Goodwill and Other: Internal-Use Software, which helps simplify how entities evaluate the accounting for costs paid by a customer in a cloud computing arrangement that is a service contract. This standard is effective for fiscal years beginning after December 15, 2019 and early adoption is permitted. The Company is currently assessing the impact this guidance will have on its consolidated financial statements.
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 is currently assessing the impact this guidance will have on its consolidated financial statements.
v3.19.3.a.u2
Revenues
 12 Months Ended
Jan. 03, 2020
Revenue from Contract with Customer [Abstract]  
Revenues Revenues
The following table summarizes total sales by product category:
For the fiscal years ended
201920182017
Powered Vehicles$451,253  $337,284  $230,255  
Specialty Sports299,767  281,941  245,378  
Total sales$751,020  $619,225  $475,633  
The following table summarizes total sales by sales channel:
For the fiscal years ended
201920182017
OEM$473,969  $368,580  $288,733  
Aftermarket277,051  250,645  186,900  
Total sales$751,020  $619,225  $475,633  
The following table summarizes total sales generated by geographic location of the customer:
For the fiscal years ended
201920182017
North America$502,263  $388,702  $280,860  
Asia120,839  119,142  101,079  
Europe120,272  101,217  86,405  
Rest of the World7,646  10,164  7,289  
Total sales$751,020  $619,225  $475,633  
v3.19.3.a.u2
Inventory
 12 Months Ended
Jan. 03, 2020
Inventory Disclosure [Abstract]  
Inventory Inventory
Inventory consisted of the following:
January 3,December 28,
20202018
Raw materials$87,779  $75,652  
Work-in-process7,075  5,880  
Finished goods33,651  25,608  
Total inventory$128,505  $107,140  
v3.19.3.a.u2
Property, Plant and Equipment, net
 12 Months Ended
Jan. 03, 2020
Property, Plant and Equipment [Abstract]  
Property, Plant and Equipment, net Property, Plant and Equipment, net
Property, plant and equipment consisted of the following:
January 3,December 28,
20202018
Building and building improvements$42,343  $17,622  
Information systems, office equipment and furniture10,102  7,262  
Internal-use computer software16,860  14,416  
Land5,414  1,356  
Leasehold improvements13,841  10,386  
Machinery and manufacturing equipment57,331  41,332  
Transportation equipment5,006  3,932  
Total150,897  96,306  
Less: accumulated depreciation and amortization(42,518) (31,518) 
Property, plant and equipment, net$108,379  $64,788  
Depreciation expense was $11,261, $8,143, and $6,923 for the years ended January 3, 2020, December 28, 2018 and December 29, 2017, respectively, including $1,861, $869, and $565 of internal-use software amortization for the years ended January 3, 2020, December 28, 2018 and December 29, 2017, respectively. The Company capitalized $2,445 in internal use computer software costs during the year ended January 3, 2020.
The Company’s long-lived assets by geographic location are as follows:
January 3,December 28,
20202018
United States$100,508  $59,056  
International7,871  5,732  
Total long-lived assets$108,379  $64,788  
v3.19.3.a.u2
Leases
 12 Months Ended
Jan. 03, 2020
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 eight years, some of which include options to extend the lease term for up to five years, and some of which include options to terminate the leases within one year. Certain leases are subject to annual escalations as specified in the lease agreements. The Company considered these options in determining the lease term used to establish its right-of-use assets and lease liabilities. These lease agreements do not contain any material residual value guarantees or material restrictive covenants.
As most of the Company's leases do not provide an interest rate, the Company used the incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The weighted-average remaining lease term for the Company's operating leases was 4.33 years and the weighted-average incremental borrowing rate was 3.75% as of January 3, 2020.
Operating lease costs consisted of the following:
For the fiscal year ended
2019
Operating lease cost$5,706  
Other lease costs (1)1,489  
Total$7,195  
(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.
Lease costs for the twelve months ended December 28, 2018 and December 29, 2017 were $6,445 and $6,040, respectively.
Supplemental balance sheet information related to the Company's operating leases is as follows:
Balance Sheet ClassificationJanuary 3, 2020
Operating lease right-of-use assetsLease right-of-use assets  $17,472  
Current lease liabilitiesAccrued expenses  $6,242  
Non-current lease liabilitiesOther liabilities  $11,584  
Supplemental cash flow information related to the Company's operating leases is as follows:
For the fiscal year ended
2019
Right-of-use assets obtained in exchange for lease obligations$8,691  
Cash paid for amounts included in the measurement of lease liabilities$5,630  
Maturities of lease liabilities by fiscal year for the Company's operating leases are as follows:
For fiscal yearTotal future payments
2020$6,242  
20214,522  
20222,920  
20232,532  
20241,416  
Thereafter1,719  
Total lease payments19,351  
Less: imputed interest(1,525) 
Present value of lease liabilities17,826  
Less: current portion(6,242) 
Lease liabilities less current portion$11,584  
v3.19.3.a.u2
Goodwill and Intangible Assets
 12 Months Ended
Jan. 03, 2020
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)
January 3, 2020
Customer relationships $70,473  $(30,114) $40,359  11
Core technology34,400  (33,309) 1,091  8
Patents1,859  (1,430) 429  4
Total$106,732  $(64,853) 41,879  
Trademarks and brands, not subject to amortization40,070  
Total$81,949  
December 28, 2018
Customer relationships $67,624  $(24,134) $43,490  11
Core technology33,400  (33,031) 369  8
Patents1,389  (1,344) 45  4
Total$102,413  $(58,509) 43,904  
Trademarks and brands, not subject to amortization40,070  
Total$83,974  

For the fiscal years ended
201920182017
Amortization of intangibles$6,344  $6,065  $2,986  
Goodwill activity consisted of the following:
Balance as of December 28, 2018$88,850  
Acquisitions (Refer to Note 16 - Acquisitions)
4,692  
Currency translation and other adjustments(15) 
Balance as of January 3, 2020$93,527  
Future amortization expense for finite-lived intangibles as of January 3, 2020 is as follows:
For fiscal year:Amortization Expense
2020$5,868  
20215,765  
20225,641  
20235,000  
20244,829  
Thereafter14,776  
Total expected future amortization$41,879  
v3.19.3.a.u2
Accrued Expenses
 12 Months Ended
Jan. 03, 2020
Payables and Accruals [Abstract]  
Accrued Expenses Accrued Expenses
Accrued expenses consisted of the following:
January 3,December 28,
20202018
Payroll and related expenses$14,595  $15,870  
Current portion of lease liabilities6,242  —  
Warranty5,649  6,433  
Income tax payable4,295  6,691  
Other accrued expenses4,963  4,613  
Total$35,744  $33,607  
Activity related to warranties is as follows:
For the fiscal years ended
201920182017
Beginning warranty liability$6,433  $6,481  $4,593  
Charge to cost of sales4,064  4,621  5,904  
Fair value of warranty assumed in acquisition100  200  1,016  
Costs incurred(4,948) (4,869) (5,032) 
Ending warranty liability$5,649  $6,433  $6,481  
v3.19.3.a.u2
Related Party Transactions
 12 Months Ended
Jan. 03, 2020
Related Party Transactions [Abstract]  
Related Party Transactions Related Party Transactions
On May 3, 2019, the Company acquired the substantially all the assets of Air Ride Technologies, Inc., d/b/a Ridetech. Ridetech has a building lease for its manufacturing and office facilities in Jasper, Indiana. The buildings are owned by the former owner of Ridetech, who is now an employee of the Company. Rent expense under this lease was $125 for the year ended January 3, 2020. The lease is effective from May 3, 2019 through April 1, 2024, with monthly rent payments of $16.
Fox Factory, Inc. has a triple-net building lease for its manufacturing and office facilities in Watsonville, California. The building is owned by a former member of our Board of Directors who retired on August 28, 2018. Payments made under this lease were $656 and $715 for the years ended December 28, 2018 and December 29, 2017, respectively.
On September 28, 2018, the Company purchased Tuscany's facilities from certain non-controlling interest stockholders who are also employees of the Company. The total purchase price was $3,750. The Company leased these properties prior to being purchased. Rent expense under these leases was $257 and $29 for the years ended December 28, 2018 and December 29, 2017, respectively.
v3.19.3.a.u2
Debt
 12 Months Ended
Jan. 03, 2020
Debt Disclosure [Abstract]  
Debt Debt
Former Second Amended and Restated Credit Facility
In August 2013, the Company entered into a credit facility with SunTrust Bank, N.A. and other named lenders, which was periodically amended and restated (the "Second Amended and Restated Credit Facility"). The Company paid off the Second Amended and Restated Credit Facility in June 2019 upon entering into the new Credit Facility with Bank of America, N.A. ("Bank of America"). The Company expensed $516 of remaining debt issuance costs, which are included in other expense, net on the Consolidated Statements of Income.
New Credit Facility
In June 2019, the Company entered into a credit facility with Bank of America and other named lenders (the "Credit Facility"). The Credit Facility, which matures on June 3, 2024, provides a senior secured revolving line of credit with a maximum borrowing capacity of $250,000. The Company paid $510 in loan costs that will be deferred and amortized on a straight-line basis over the term of the Credit Facility.
The Credit Facility provides for interest at a rate either based on the London Interbank Offered Rate, or LIBOR, plus a margin ranging from 1.00% to 1.50%, or based on the base rate offered by Bank of America plus a margin ranging from 0.00% to 0.50%. At January 3, 2020, the one-month LIBOR and prime rates were 1.71% and 4.75%, respectively. At January 3, 2020, our weighted average interest rate on outstanding borrowing was 2.80%. The 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 January 3, 2020.
The Credit Facility permits up to $15,000 of the aggregate revolving commitment to be used by the Company for issuance of letters of credit, of which $5,000 was outstanding at January 3, 2020.
The following table summarizes our line of credit:
January 3,December 28,
20202018
Amount outstanding$68,000  $—  
Standby letter of credit$5,000  $5,000  
Available borrowing capacity$177,000  $95,000  
Maximum borrowing capacity$250,000  $100,000  
Maturity dateJune 3, 2024
v3.19.3.a.u2
Commitments and Contingencies
 12 Months Ended
Jan. 03, 2020
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies Commitments and Contingencies
Indemnification Agreements - In the ordinary course of business, the Company may provide indemnifications of varying scope and terms to customers, vendors, lessors, business partners, and other parties with respect to certain matters, including, but not limited to, losses arising out of breach of such agreements, services to be provided by the Company or intellectual property infringement claims made by third parties. In addition, the Company has entered into indemnification agreements with directors and certain officers and employees that will require the Company, among other things, to indemnify them against certain liabilities that may arise by reason of their status or service as directors, officers or employees. While the outcome of these matters cannot be predicted with certainty, the Company does not believe that the outcome of any claims under indemnification arrangements will have a material effect on the Company’s results of operations, financial position or liquidity.
Legal Proceedings - A lawsuit was filed on December 17, 2015 by SRAM Corporation (“SRAM”) in the U.S. District Court, Northern District of Illinois, against the Company’s wholly-owned subsidiary, RFE Canada Holding Corp. (“RFE Canada”). The lawsuit alleges patent infringement of U.S. Patent number 9,182,027 ("'027 Patent") and violation of the Lanham Act. SRAM filed a second lawsuit in the same court against RFE Canada on May 16, 2016, alleging patent infringement of U.S Patent number 9,291,250 ("'250 Patent"). The Company believes that the lawsuits are without merit and intends vigorously to defend itself. As such, the Company has filed, before the U. S. Patent and Trademark Appeals Board ("PTAB"), for Interparties Reviews ("IPR") of the '027 Patent and separately the same for the '250 Patent. In April 2018, the PTAB issued opinions in the ‘027 Patent petition cases stating that the Company has not shown the claims of the ‘027 Patent to be obvious. Regarding the PTAB ‘027 opinions, the Company has filed an Appeal to the Court of Appeals for the Federal Circuit. The CAFC found in favor of the Company and has vacated and remanded all of the PTAB findings with the exception of their finding that the ‘027 patent met the prima facia test for obviousness, which was affirmed. SRAM has appealed to the CAFC to rehear the case en banc and that appeal is pending. The PTAB has issued an opinion in the ‘250 Patent petition case stating that the Company has not shown the claims of the ‘250 Patent to be obvious.
In a separate action, the Company filed a lawsuit on January 29, 2016 in the U.S. District Court, Northern District of California against SRAM. That lawsuit alleges SRAM’s infringement of two separate Company owned patents, specifically U.S. Patent numbers 6,135,434 and 6,557,674. The Company filed a second lawsuit on July 1, 2016 in the U.S. District Court, Northern District of California against SRAM alleging infringement of the Company’s U.S. Patent numbers 8,226,172 and 8,974,009. These lawsuits have been moved to U.S. District Court, District of Colorado and are otherwise proceeding. The U.S. District Court, Northern District of Illinois, has lifted the stay of the SRAM lawsuits against the Company. The Company filed and SRAM filed lawsuits are now moving forward in the respective courts.
Due to the inherent uncertainties of litigation, the Company is not able to predict either the outcome or a range of reasonably possible losses, if any, at this time. Accordingly, no amounts have been recorded in the consolidated financial statements for the settlement of these matters. Were an unfavorable ruling to occur, or if factors indicate that a loss is probable and reasonably estimable, the Company's business, financial condition or results of operations could be materially and adversely affected. The Company is involved in other legal matters that arise in the ordinary course of business. Based on information currently available, management does not believe that the ultimate resolution of these matters will have a material adverse effect on the Company's financial condition, results of operations or cash flows.
Other Commitments - On November 30, 2017, the Company acquired an 80% interest in Tuscany. The stockholders' agreement provides the Company with a call option (the "Call Option") to acquire the remaining 20% of Tuscany any time from November 30, 2019 through November 30, 2024 at a value that approximates fair market value. In addition, if the Call Option has not been exercised as of November 30, 2024, the non-controlling owners shall be entitled to exercise a put option (the "Put Option") on November 30, 2024 and for a 180-day period thereafter, which would require the Company to purchase all of the remaining shares held by the non-controlling owners at a price that approximates fair market value. See Note 16 - Acquisitions of the Notes to Consolidated Financial Statements in this Annual Report on Form 10-K for additional information on this commitment.
On July 24, 2019 the Company entered into a Standard Form of Agreement between with Design-Builder Carroll Daniel Construction Company to provide design and construction services related to an approximately 336,000 square foot facility located in Gainesville, Georgia. The Company plans to use the facility for the manufacture of its products including vehicle shock absorbers. This agreement was amended on December 23, 2019. The Design-Build Agreement contains several design and construction milestone dates that began in June 2019. The Company expects to pay a total of approximately $36.5 million for the Design-Builder’s performance of the Design-Build Agreement. Any additional costs will be addressed as they arise until the completion of the facility, which is currently expected to occur on or around August 31, 2020.
Other Contingencies - On June 21, 2018, the U.S. Supreme Court (the “Court”) decided South Dakota v. Wayfair, Inc., et al., holding that internet retailers do not have to maintain a physical presence in a state in order to be required to collect the state’s sales and use tax. Ultimately, the Court remanded the case to the South Dakota Supreme Court on the question of “whether some other principle in the Court’s Commerce Clause doctrine might invalidate the Act,” which may delay federal legislation on the issue. However, as a result of the Court’s decision, additional states may now begin requiring all remote sellers, primarily those engaged in e-commerce, to register, collect and remit sales and use taxes on transactions with in-state customers. Numerous states have either enacted legislation or informally indicated that they will not assert liability for uncollected taxes on a retroactive basis. Nevertheless, the Company believes that it is possible that it will incur a liability for uncollected sales tax on some portion of its e-commerce sales through January 3, 2020. Any retroactively imposed liability is not expected to be material to the Company’s results of operations or financial position because direct end-user sales in states where the Company is not registered comprise a small portion of total revenues.
v3.19.3.a.u2
Stockholders' Equity
 12 Months Ended
Jan. 03, 2020
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Stockholders' Equity Stockholders' Equity
Secondary Stock Offerings and Share Repurchase Program
In March 2017, the Company closed a secondary offering, whereby the selling stockholders, including Compass Group Diversified Holdings LLC ("Compass"), sold 5,574 shares of the Company's common stock at a price of $26.65 per share, less underwriting discounts and commissions. The total shares sold included 466 shares, which were also sold by certain selling stockholders, in connection with the underwriters' option to purchase additional shares. The Company did not sell shares or receive any proceeds from the sales of shares by the selling stockholders. As a result of the March 2017 secondary offering, Compass no longer holds any equity interest in the Company.
The Company incurred approximately $113 of expenses in connection with the secondary offerings during the fiscal years ended December 29, 2017. The Company did not incur any expenses related to secondary offerings during the fiscal years ended January 3, 2020 and December 28, 2018.
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"). No further awards will be granted pursuant to the 2008 Plan or the 2008 Non-Statutory Plan. Under the 2013 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 five years and expire no later than 10 years from the date of grant. RSUs generally vest over a four-year period with 25% vesting 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 January 3, 2020, there were 2,491 shares reserved for issuance under the Company's equity incentive plans and 1,639 shares available for grant under the 2013 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 January 3, 2020 and December 28, 2018 was $6,864 and $7,322, respectively, all of which related to RSUs. No compensation expense related to stock options was incurred during the fiscal years ended January 3, 2020 and December 28, 2018. Compensation expense related to the Company's share-based awards for the year ended December 29, 2017 was $8,727, of which $8,641 related to RSUs and $86 related to stock options.
The following table summarizes the allocation of stock-based compensation in the accompanying consolidated statements of income:
For the fiscal years ended
201920182017
Cost of sales$802  $482  $429  
Sales and marketing506  556  587  
Research and development721  640  442  
General and administrative4,835  5,644  7,269  
Total$6,864  $7,322  $8,727  
Stock-based compensation expense capitalized to inventory was not material for the years ended January 3, 2020, December 28, 2018 and December 29, 2017.
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 December 30, 2016811  $16.53  
Granted411  31.38  
Canceled(55) 17.45  
Vested(367) 16.93  
Unvested at December 29, 2017800  23.91  
Granted223  37.07  
Canceled(30) 25.16  
Vested(338) 21.98  
Unvested at December 28, 2018655  29.34  
Granted131  74.70  
Canceled(67) 32.29  
Vested(292) 26.06  
Unvested at January 3, 2020427  $44.98  
The fair value of vested RSUs was $21,793, $13,874 and $12,587 for the years ended January 3, 2020, December 28, 2018 and December 29, 2017, respectively. As of January 3, 2020, the Company had approximately $14,190 of unrecognized stock-based compensation expense related to RSUs, which will be recognized over the remaining weighted-average vesting period of approximately 2.84 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 December 30, 20161,450  $5.33  5$32,528  
Options exercised(541) 5.51  13,588  
Options forfeited(14) 6.20  —  
Options expired(9) 6.38  —  
Balance at December 29, 2017886  5.19  429,840  
Options exercised(166) 5.25  9,384  
Balance at December 28, 2018720  5.17  339,403  
Options exercised(289) 5.03  17,422  
Balance at January 3, 2020431  5.27  227,814  
Options vested and expected to vest - January 3, 2020431  5.27  227,814  
Options exercisable - January 3, 2020431  $5.27  2$27,814  
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 January 3, 2020. As of January 3, 2020, stock-based compensation expense related to stock options has been fully recognized.
During the years ended January 3, 2020, December 28, 2018 and December 29, 2017, 289, 166, and 541 shares of common stock, respectively, were issued due to the exercise of stock options, resulting in proceeds to the Company of approximately $1,451, $875, and $2,981, respectively.
v3.19.3.a.u2
Earnings Per Share
 12 Months Ended
Jan. 03, 2020
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
201920182017
Net income attributable to FOX stockholders$93,033  $84,040  $43,128  
Weighted average shares used to compute basic earnings per share38,333  37,805  37,373  
Dilutive effect of employee stock plans822  1,151  1,365  
Weighted average shares used to compute diluted earnings per share39,155  38,956  38,738  
Earnings per share:
Basic$2.43  $2.22  $1.15  
Diluted$2.38  $2.16  $1.11  
The Company did not exclude any potentially dilutive shares from the calculation of diluted earnings per share for the years ended January 3, 2020, December 28, 2018 and December 29, 2017, as none of these shares would have been antidilutive.
v3.19.3.a.u2
Income Taxes
 12 Months Ended
Jan. 03, 2020
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
201920182017
Current:
Federal$16,670  $10,330  $13,483  
State256  604  648  
Foreign7,567  7,248  8,148  
Total24,493  18,182  22,279  
Deferred:
Federal(11,158) (11,462) (923) 
State586  (671) 387  
Foreign178  (526) (641) 
Total(10,394) (12,659) (1,177) 
Provision for income taxes$14,099  $5,523  $21,102  
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
201920182017
United States$77,810  $63,138  $36,555  
Foreign30,759  27,752  27,730  
$108,569  $90,890  $64,285  
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
201920182017
Tax at federal statutory rate21.0 %21.0 %35.0 %
State taxes, net of federal benefit1.8  1.8  2.0  
Change in liability for unrecognized tax benefits0.2  (10.8) (1.7) 
Stock-based compensation(6.3) (3.8) (10.6) 
Foreign derived income benefit(3.0) (1.6) —  
Research and development tax credit(0.8) (1.2) (2.2) 
Change in tax rates—  (0.8) (3.8) 
California business development tax credit—  (0.8) —  
Executive compensation deduction limitation1.2  2.2  —  
Foreign rate differential—  0.4  (4.6) 
Valuation allowance on deferred tax assets0.2  0.4  9.4  
Tax on unremitted foreign earnings0.3  0.4  8.9  
Other(1.6) (1.1) 0.4  
Total provision13.0 %6.1 %32.8 %
The Tax Cuts and Jobs Act (the "TCJA") was enacted on December 22, 2017. The TCJA reduced the U.S. federal corporate tax rate from 35% to 21%, required companies to pay a one-time transition tax on unremitted earnings of certain foreign subsidiaries that were previously tax deferred, created a new minimum tax on certain foreign earnings, and provided incentives for U.S. companies to sell and license goods and services abroad, among other changes. In 2017, the Company recorded provisional amounts for certain enactment-date effects of the Act by applying the guidance of the SEC's Staff Accounting Bulletin 118 ("SAB 118") because the enactment-date accounting for these effects had not yet been completed.
Effective January 1, 2016, the Company sold the net assets of its Taiwan branch operations and its shares of Fox Factory IP Holding Corp. to Fox Factory Switzerland GmbH. The Company’s Taiwan operations were, as a result, organized as a branch of the Swiss entity (together, "Fox Switzerland"). Fox Switzerland generates earnings that prior to the enactment of the TCJA, were not subject to payment of U.S. income taxes or accrual of deferred tax expense because the Company asserted that such earnings were permanently invested outside the U.S. The unremitted earnings of Fox Switzerland through 2017 became subject to U.S. tax as a result of the one-time transition tax, which approximated $3,706. As a result of the change in U.S. taxation, the Company no longer considers the unremitted earnings of Fox Switzerland to be permanently reinvested, and as such recorded a deferred withholding tax liability of approximately $2,026 in 2017. In 2018, the Company restructured its foreign operations to provide operational and treasury management efficiencies, while potentially permitting relief from dividend withholding on profits earned in 2018 forward.
The Company has obtained tax incentives in Switzerland that are effective on a formal basis through March 2019, and indefinitely on a statutory basis, as long as the Company's operations meet specified criteria. The effect of the tax incentive was not material to the Company's income tax provision for the years ended December 28, 2018 and December 29, 2017.
During the year ended December 28, 2018, the Company met certain in-state growth requirements in order to earn the final three tranches of a four-year, $1,700 tax credit from the State of California for a benefit of $950, or $751 net of federal income tax. The Company did not recognize any benefit for the year ended December 29, 2017.
Deferred Income Taxes
January 3,December 28,
20202018
Deferred tax assets:
Foreign tax credits, including amounts associated with accrued charges$33,320  $23,920  
Inventory3,542  3,086  
Accrued liabilities2,862  2,815  
Lease liability4,304  —  
Research and development tax credits4,369  2,536  
Stock-based compensation961  1,067  
Other975  787  
Total deferred tax asset50,333  34,211  
Valuation allowance(6,548) (6,609) 
Net deferred tax asset43,785  27,602  
Deferred tax liabilities:
Depreciation(6,924) (7,012) 
Accrued withholding tax on unremitted foreign dividends(2,318) (2,164) 
Lease right-of-use asset(4,215) —  
Intangible assets(4,283) (2,220) 
Other(320) (878) 
Total deferred tax liability(18,060) (12,274) 
Net deferred tax asset$25,725  $15,328  
As of January 3, 2020, the Company had foreign tax credits of $33,320 that begin to expire in 2025, unless previously utilized, and foreign net operating loss carryforwards of $3,036, of which $2,940 begin to expire in 2025 if not utilized and $96 which do not expire. The Company also had federal and state research and development credit carryforwards of approximately $2,817 and $2,876 respectively. The federal research and development credits begin to expire in 2036 unless previously utilized, and the state research credits do not expire.
As of January 3, 2020, 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. As a result of the TCJA, the Company believes that it is more likely than not that a portion of its foreign tax credits will not be realizable, and as such, provided an allowance of $6,287 as of December 28, 2018. For the year ended January 3, 2020, the valuation allowance decreased by $61, due to a release of the valuation allowance against the Company's Canadian subsidiary. The valuation allowance for foreign tax credits was $6,466 as of January 3, 2020. It is reasonably possible that the Company could record a material adjustment to the valuation allowance in the next twelve months as management assesses the progress and outcome of its restructuring activities.
Additionally, based on available evidence, it was concluded on a more likely than not basis that deferred tax assets of the Company's UK subsidiary and Austrian branch are not realizable. Accordingly, a valuation allowance of $82 has been recorded to offset the deferred tax assets in these jurisdictions, which includes a partial valuation allowance for Switzerland.
Unrecognized Tax Benefits
For the fiscal years ended
201920182017
Balance - beginning of period$1,996  $8,154  $7,440  
Increase related to current year tax positions557  457  460  
Increase related to prior year tax positions313  36  1,770  
Decrease related to prior year tax positions—  (6,480) —  
Decrease due to expiration of statute of limitations(566) (171) (1,516) 
Balance - end of period$2,300  $1,996  $8,154  
As of January 3, 2020, the Company had $2,300 of unrecognized tax benefits, of which approximately $1,805, if recognized, would favorably impact the effective tax rate. The Company regularly engages in discussions and negotiations with tax authorities regarding tax matters in various jurisdictions. In 2018, the Company received a no change letter from the Internal Revenue Service ("IRS") related to the audit of the Company's 2015 federal tax return. Additionally, the IRS and the Company entered into a closing agreement that resolved the uncertainty about the deductibility of amortization and depreciation arising from the acquisition of the Company in 2008 for all open tax years. The favorable conclusion resulted in a decrease in the unrecognized tax benefits of $6,198, of which $5,648 favorably impacted the effective tax rate. Including the reversal of the amounts presented net of deferred tax assets and accrued interest and penalties, the favorable conclusion resulted in a benefit of $9,838 to the provision for income tax for the year ended December 28, 2018. The deductibility of acquisition-related amortization and depreciation for state tax purposes remains uncertain.
The Company believes that it is reasonably possible that unrecognized tax benefits at January 3, 2020 could be reduced by an additional $340 in the next twelve months as a result of expiration of statute of limitations.
As of January 3, 2020 and December 28, 2018, the Company had approximately $36 and $73, respectively, of cumulative interest and penalties related to the uncertain tax positions, and has elected to treat interest and penalties as a component of income tax expense.
The Company's 2017 forward federal tax returns, state tax returns from 2015 and forward, and foreign tax returns from 2017 and forward are subject to examination by tax authorities. There are ongoing U.S. state audits covering fiscal years 2015-2017. We do not expect the results from any ongoing income tax audit to have a material impact on our consolidated financial condition, results of operations, or cash flows.
v3.19.3.a.u2
Fair Value Measurement and Financial Instruments
 12 Months Ended
Jan. 03, 2020
Fair Value Disclosures [Abstract]  
Fair Value Measurement and Financial Instruments Fair Value Measurement and Financial Instruments
The FASB's Accounting Standards Codification 820, "Fair Value Measurements and Disclosures" requires the valuation of assets and liabilities required or permitted to be either recorded or disclosed at fair value based on hierarchy of available inputs as follows:
Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities;
Level 2: Quoted prices for similar assets and liabilities in active markets, quoted prices for identical assets and liabilities in markets that are not active, or inputs which are observable, either directly or indirectly, for substantially the full term of the asset or liability; and
Level 3: Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported by little or no market activity).
The following table presents the Company's hierarchy for its assets and liabilities measured at fair value on a recurring basis as of the following periods:
January 3, 2020December 28, 2018
Level 1Level 2Level 3TotalLevel 1Level 2Level 3Total
Liabilities:
Term debt$—  $—  $—  $—  $—  $59,426  $—  $59,426  
Non-controlling interest subject to put provisions—  —  15,719  15,719  —  —  14,282  14,282  
Total liabilities measured at fair value$—  $—  $15,719  $15,719  $—  $59,426  $14,282  $73,708  
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 January 3, 2020, and December 28, 2018.
As of December 28, 2018, the carrying amount of the principal under the Company’s Second Amended and Restated 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 Company paid off the Second Amended and Restated Credit Facility in June 2019 upon entering into the new revolving Credit Facility with Bank of America.
The Company has potential obligations to purchase the non-controlling interests held by third parties in the Tuscany subsidiary. These obligations are in the form of put provisions and are exercisable at the third-party owners' discretion within the specified periods outlined in the put provision within the Tuscany stockholders' agreement (see Note 16 - Acquisitions of the Notes to Consolidated Financial Statements in this Annual Report on Form 10-K). If these put provisions were exercised, the Company would be required to purchase the third-party owners' non-controlling interests at the appraised fair value. The initial non-controlling interest value was implicit in the purchase price and is revalued each quarter, with the adjustment being recorded directly as a component of retained earnings. The methodology the Company uses to estimate the fair value of the non-controlling interests subject to these put provisions is based on an average multiple of earnings before income taxes, depreciation and amortization ("EBITDA"), taking into consideration historical earnings and other factors. The estimated fair value is then compared to the carrying value based on the initial valuation and the cumulative net earnings attributable to the non-controlling interest. At January 3, 2020, the estimated fair value was lower than the carrying value and in accordance with applicable guidance, the non-controlling interest has been adjusted to the carrying value. The estimated fair values of the non-controlling interests subject to put provisions can fluctuate and the implicit multiple of earnings at which these non-controlling interest obligations may ultimately be settled could vary significantly from our future estimates depending upon market conditions.
The following table provides a reconciliation of the beginning and ending balances for the Company's obligations measured at fair value using Level 3 inputs:
Obligations (measured with level 3 inputs) 
Balance at December 28, 2018$14,282  
Net income ascribed to non-controlling interest1,437  
Balance at January 3, 2020$15,719  
v3.19.3.a.u2
Retirement Plan
 12 Months Ended
Jan. 03, 2020
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 $1,153, $850, and $437 for each of the years ended January 3, 2020, December 28, 2018 and December 29, 2017, respectively.
v3.19.3.a.u2
Acquisitions
 12 Months Ended
Jan. 03, 2020
Business Combinations [Abstract]  
Acquisitions Acquisitions
Ridetech
On May 3, 2019, the Company acquired substantially all of the assets of Air Ride Technologies, Inc., d/b/a Ridetech, a manufacturer of suspension systems that enhance the handling and ride quality of muscle cars, trucks, sports cars and hot rods in an asset purchase accounted for as a business combination. In connection with the acquisition, the Company paid approximately $13,971, of which $6,804 was cash on hand and $7,167 was from newly issued unregistered shares of common stock. During the year ended January 3, 2020, the Company finalized the allocation of the purchase price to the assets acquired and liabilities assumed based on their estimated respective fair values as of May 3, 2019, with the excess purchase price allocated to goodwill.
Identifiable intangible assets were valued at $4,320. The Company will amortize the acquired customer relationships asset of $2,850 over its expected useful life of 8 years, the core technologies assets of $1,000 over a weighted average expected useful life of 6 years and the trademarks and brand name asset of $470 over an expected useful life of 5 years. The goodwill of $4,692 is expected to have an indefinite life and will be subject to impairment testing. The acquired goodwill is expected to be deductible for income tax purposes. The acquisition was not material to the Company's financial statements.
Tuscany
On November 30, 2017, the Company acquired an 80% interest in Tuscany, a designer, manufacturer and distributor of premium aftermarket powered vehicle performance packages in an asset purchase accounted for as a business combination, pursuant to ASC 805. In connection with the acquisition, the Company paid $53,350 in cash financed through a combination of its existing credit facility and cash on hand. This purchase included $242 in intercompany accounts payable, resulting in a total purchase price of $53,592.
The stockholders' agreement executed in association with the acquisition provides the Company with a call option to acquire the remaining 20% of Tuscany any time from November 30, 2019 through November 30, 2024 at a value that approximates fair market value as defined in the purchase agreement. In addition, if the call option has not been exercised as of November 30, 2024, the non-controlling owners shall be entitled to exercise a put option on November 30, 2024 and for a 180-day period thereafter, which would require the Company to purchase all of the remaining shares held by the non-controlling owners at a price that approximates fair market value as defined in the purchase agreement.
In accordance with ASC 805, the Company recognized a non-controlling interest in Tuscany and measured the non-controlling interest at fair value on the acquisition date. The Company concluded that the put feature embedded in the agreement causes the non-controlling interest to be redeemable, pursuant to ASC 480, because the put option requires cash settlement. Therefore, the Company has classified the non-controlling interest as temporary (mezzanine) equity in the consolidated balance sheets.
The purchase price of Tuscany is allocated to the assets acquired and liabilities assumed based on their estimated respective fair values as of November 30, 2017, with the excess purchase price allocated to goodwill. During the year ended, December 28, 2018, the Company finalized the allocation of the purchase price and recorded adjustments to Goodwill of $440 related to the completion of the Company's validation of working capital, intangible valuation procedures, and analysis of opening warranty provisions. Goodwill represents the value of synergies from combining operations Tuscany and the Company, as well as intangibles that do not qualify for separate recognition. Intangibles and goodwill related to the Company's 80% interest are deductible for tax purposes.
The Company incurred $900 of transaction costs in conjunction with the Tuscany acquisition for the year ended December 29, 2017, which is included in general and administrative expense in the accompanying consolidated statement of income.
The Company’s allocation of the purchase price to the net tangible and intangible assets acquired and liabilities assumed is as follows:
Acquisition consideration
Cash consideration$53,350  
Settlement of pre-existing accounts242  
Total consideration at closing$53,592  
Fair market values
Other current and non-current assets$5,966  
Property, plant and equipment1,416  
Customer relationships28,600  
Trademarks and brand6,500  
Goodwill30,392  
Total assets acquired72,874  
Accounts payable and accrued expenses3,329  
Debt assumed in acquisition465  
Deferred tax liability for tax free rollover of non-controlling interest2,588  
Total liabilities assumed6,382  
Redeemable non-controlling interest12,900  
Purchase price allocation$53,592  
v3.19.3.a.u2
Selected Quarterly Financial Data (Unaudited)
 12 Months Ended
Jan. 03, 2020
Quarterly Financial Information Disclosure [Abstract]  
Selected Quarterly Financial Data (Unaudited) Selected Quarterly Financial Data (Unaudited)
Selected summarized quarterly financial information for 2019 and 2018 is as follows:
Quarter Ended
Jan 3,Sep 27,Jun 28,Mar 29,Dec 28,Sep 28,Jun 29,Mar 30,
20202019201920192018201820182018
Sales$185,881  $211,317  $192,122  $161,700  $156,810  $175,798  $156,825  $129,792  
Gross profit59,641  69,817  62,220  51,057  50,953  60,486  52,413  41,644  
Income from operations26,159  35,360  29,471  21,819  22,853  31,452  24,275  15,952  
Net income attributable to Fox Stockholders22,522  29,487  22,921  18,103  20,135  24,312  18,369  21,224  
Earnings per share:
    Basic$0.58  $0.77  $0.60  $0.48  $0.53  $0.64  $0.49  $0.56  
    Diluted$0.58  $0.75  $0.59  $0.46  $0.52  $0.62  $0.47  $0.55  
v3.19.3.a.u2
Subsequent Events
 12 Months Ended
Jan. 03, 2020
Subsequent Events [Abstract]  
Subsequent Events Subsequent EventsOn February 11, 2020 the Company entered into an agreement to acquire substantially all the issued and outstanding capital stock of SCA Performance Holdings, Inc. ("SCA") from Southern Rocky Holdings, LLC for $328,000, exclusive of vehicle inventory. SCA is a leading OEM authorized specialty vehicle manufacturer (“SVM”) for light duty trucks and sports utility vehicles with headquarters in Trussville, Alabama. The Company expects this acquisition to expand its North American geographic manufacturing footprint and broaden its product offerings in the automotive industry. The transaction will be financed through an expanded and syndicated Credit Facility led by Bank of America. The Company also agreed to an additional $13,000 of contingent, performance-based retention incentives for key SCA management payable over the next two years. The transaction is expected to close late in the first quarter of fiscal 2020.
v3.19.3.a.u2
Description of the Business, Basis of Presentation and Summary of Significant Accounting Policies (Policies)
 12 Months Ended
Jan. 03, 2020
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 2019, 2018 and 2017, the Company's fiscal year ended on January 3, 2020, December 28, 2018 and December 29, 2017 and had 53, 52 and 52 weeks, respectively.
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 a checking account. 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 doubtful accounts.
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 January 3, 2020 the Company held $3,118 in cash at U.S. subsidiaries and $40,618 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 Doubtful Accounts - The Company records a provision for doubtful accounts based on historical experience and a detailed assessment of the collectability of its accounts receivable. In estimating the allowance for doubtful accounts, management considers, among other factors, the aging of the accounts receivable, historical write-offs, and the credit-worthiness of each customer. 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, 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
10-39 years
Information systems, office equipment and furniture
3-5 years
Internal-use computer software
10 years
Machinery and equipment
10-15 years
Manufacturing equipment
5-10 years
Transportation equipment
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 $2,445 in internal use computer software costs during the year ended January 3, 2020. 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 2019 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 include customer relationships 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. 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 partially 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.
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 revenue 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. At January 3, 2020, the balance of deferred revenue related to pricing provisions was $172. These amounts are expected to be recognized over the next 12 months. Revenues exclude sales tax.
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 - Sales and marketing expenses include costs related to 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 race support and sponsorships of events and athletes, advertising and promotions related to trade shows, travel and entertainment, and promotional materials, products and sales offices costs.
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 has elected to account 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 January 3, 2020 was partially offset by foreign tax credits associated with the income and resulted in a net tax charge of $316.
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 recognized 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 four 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. 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. Amounts owed under the Company's credit facility approximate fair value due to the variable interest rate features embedded in both the line of credit and term debt.
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.
Recent Accounting Pronouncements
Recent Accounting Pronouncements - In May 2014, the FASB and International Accounting Standards Board issued their converged standard on revenue recognition, ASU 2014-09, updated December 2016 with the release of ASU 2016-20. This standard outlines a single comprehensive model for companies to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. The core principle of the revenue model is that an entity recognizes revenue to depict the transfer of promised goods and services in an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods and services. In addition, the new standard requires that reporting companies disclose the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers.
The Company adopted this guidance as of the beginning of the first quarter of fiscal year 2018 using the modified retrospective implementation method. The Company applied the guidance to all open contracts at the date of initial application. Additionally, the Company used the practical expedient to omit the disclosure of remaining performance obligations for contracts with an original expected duration of one year or less. The primary impact of adopting the standard resulted from certain pricing provisions within contracts that provide the customer with a material right. Under the new standard, revenue attributed to such pricing provisions is deferred and recognized when the right is exercised by the customer. The Company recorded a cumulative effect adjustment of $368 gross and $281 net of taxes to the opening balance of retained earnings to reflect the cumulative effect of the adoption of the standard.
In February 2016, the FASB issued ASU 2016-02, Leases, which supersedes the existing guidance for lease accounting. To meet the objective of enabling users of financial statements to assess the amount, timing, and uncertainty of cash flows arising from leases, this ASU requires lessees to recognize most leases on the balance sheet as right-of-use assets and lease liabilities.
The Company adopted this guidance as of the beginning of the first quarter of fiscal year 2019, with a cumulative effect adjustment to the opening balance of retained earnings at December 28, 2018 with no restatement of comparative periods’ financial information ("current-period adjustment method"). Additionally, the Company adopted this guidance using practical expedients with respect to the assessment of embedded leases, lease classification, and initial indirect costs for expired and existing leases. The Company also elected the practical expedient related to treating lease and non-lease components as a single lease component for all of its leases and 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. The Company did not use the hindsight practical expedient to adopt this guidance. The Company recorded a cumulative effect adjustment of $13,637 to operating lease right-of-use assets, $13,937 to operating lease liabilities, and $300 gross ($228 net of taxes) to the opening balance of the Company's retained earnings to reflect the cumulative effect of the adoption of the standard. This standard did not have a material impact on our consolidated income statements.
In June 2016, the FASB issue ASU 2016-13, Financial Instruments: Credit Losses, which adds an impairment model that is based on expected losses rather than incurred losses. Under this standard, an entity recognizes as an allowance its estimate of expected credit losses, which the FASB believes will result in more timely recognition of such losses. This standard is effective for public companies for fiscal years beginning after December 15, 2019, including interim reporting periods within those years and early adoption is permitted. The Company does not expect the impact of this adoption to be material.
In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments, which clarifies the presentation of certain transactions, including but not limited to contingent consideration payments made after a business combination and debt prepayment and extinguishment costs in the cash flow statement. The Company adopted ASU 2016-16 effective in the first quarter of fiscal year 2019. The adoption of ASU 2016-15 did not have a material impact on the Company's consolidated financial statements.
In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement, which modifies the disclosure requirements of fair value measurements in Topic 820. This standard is effective for fiscal years beginning after December 15, 2019. The Company is currently assessing the impact this guidance will have on its consolidated financial statements.
In August 2018, the FASB issued ASU 2018-15, Intangibles - Goodwill and Other: Internal-Use Software, which helps simplify how entities evaluate the accounting for costs paid by a customer in a cloud computing arrangement that is a service contract. This standard is effective for fiscal years beginning after December 15, 2019 and early adoption is permitted. The Company is currently assessing the impact this guidance will have on its consolidated financial statements.
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 is currently assessing the impact this guidance will have on its consolidated financial statements.
v3.19.3.a.u2
Description of the Business, Basis of Presentation and Summary of Significant Accounting Policies (Tables)
 12 Months Ended
Jan. 03, 2020
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:
 January 3,December 28,
 20202018
Customer A11%  13%  
Customer B11%  12%  
Customer C10%  6%  
Schedule of Allowance for Doubtful Accounts
The following table presents the activity in the allowance for doubtful accounts:
For the fiscal years ended
Allowance for doubtful accounts:201920182017
Balance, beginning of year$600  $676  $397  
Add: bad debt expense335  189  327  
Less: write-offs, net of recoveries(125) (265) (48) 
Balance, end of year$810  $600  $676  
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
10-39 years
Information systems, office equipment and furniture
3-5 years
Internal-use computer software
10 years
Machinery and equipment
10-15 years
Manufacturing equipment
5-10 years
Transportation equipment
5 years
Property, plant and equipment consisted of the following:
January 3,December 28,
20202018
Building and building improvements$42,343  $17,622  
Information systems, office equipment and furniture10,102  7,262  
Internal-use computer software16,860  14,416  
Land5,414  1,356  
Leasehold improvements13,841  10,386  
Machinery and manufacturing equipment57,331  41,332  
Transportation equipment5,006  3,932  
Total150,897  96,306  
Less: accumulated depreciation and amortization(42,518) (31,518) 
Property, plant and equipment, net$108,379  $64,788  
v3.19.3.a.u2
Revenues (Tables)
 12 Months Ended
Jan. 03, 2020
Revenue from Contract with Customer [Abstract]  
Disaggregation of Revenues
The following table summarizes total sales by product category:
For the fiscal years ended
201920182017
Powered Vehicles$451,253  $337,284  $230,255  
Specialty Sports299,767  281,941  245,378  
Total sales$751,020  $619,225  $475,633  
The following table summarizes total sales by sales channel:
For the fiscal years ended
201920182017
OEM$473,969  $368,580  $288,733  
Aftermarket277,051  250,645  186,900  
Total sales$751,020  $619,225  $475,633  
The following table summarizes total sales generated by geographic location of the customer:
For the fiscal years ended
201920182017
North America$502,263  $388,702  $280,860  
Asia120,839  119,142  101,079  
Europe120,272  101,217  86,405  
Rest of the World7,646  10,164  7,289  
Total sales$751,020  $619,225  $475,633  
v3.19.3.a.u2
Inventory (Tables)
 12 Months Ended
Jan. 03, 2020
Inventory Disclosure [Abstract]  
Inventory
Inventory consisted of the following:
January 3,December 28,
20202018
Raw materials$87,779  $75,652  
Work-in-process7,075  5,880  
Finished goods33,651  25,608  
Total inventory$128,505  $107,140  
v3.19.3.a.u2
Property, Plant and Equipment, net (Tables)
 12 Months Ended
Jan. 03, 2020
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
10-39 years
Information systems, office equipment and furniture
3-5 years
Internal-use computer software
10 years
Machinery and equipment
10-15 years
Manufacturing equipment
5-10 years
Transportation equipment
5 years
Property, plant and equipment consisted of the following:
January 3,December 28,
20202018
Building and building improvements$42,343  $17,622  
Information systems, office equipment and furniture10,102  7,262  
Internal-use computer software16,860  14,416  
Land5,414  1,356  
Leasehold improvements13,841  10,386  
Machinery and manufacturing equipment57,331  41,332  
Transportation equipment5,006  3,932  
Total150,897  96,306  
Less: accumulated depreciation and amortization(42,518) (31,518) 
Property, plant and equipment, net$108,379  $64,788  
v3.19.3.a.u2
- (Tables)
 12 Months Ended
Jan. 03, 2020
Leases [Abstract]  
Lease Costs
Operating lease costs consisted of the following:
For the fiscal year ended
2019
Operating lease cost$5,706  
Other lease costs (1)1,489  
Total$7,195  
(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 ClassificationJanuary 3, 2020
Operating lease right-of-use assetsLease right-of-use assets  $17,472  
Current lease liabilitiesAccrued expenses  $6,242  
Non-current lease liabilitiesOther liabilities  $11,584  
Supplemental cash flow information related to the Company's operating leases is as follows:
For the fiscal year ended
2019
Right-of-use assets obtained in exchange for lease obligations$8,691  
Cash paid for amounts included in the measurement of lease liabilities$5,630  
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
2020$6,242  
20214,522  
20222,920  
20232,532  
20241,416  
Thereafter1,719  
Total lease payments19,351  
Less: imputed interest(1,525) 
Present value of lease liabilities17,826  
Less: current portion(6,242) 
Lease liabilities less current portion$11,584  
v3.19.3.a.u2
Goodwill and Intangible Assets (Tables)
 12 Months Ended
Jan. 03, 2020
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)
January 3, 2020
Customer relationships $70,473  $(30,114) $40,359  11
Core technology34,400  (33,309) 1,091  8
Patents1,859  (1,430) 429  4
Total$106,732  $(64,853) 41,879  
Trademarks and brands, not subject to amortization40,070  
Total$81,949  
December 28, 2018
Customer relationships $67,624  $(24,134) $43,490  11
Core technology33,400  (33,031) 369  8
Patents1,389  (1,344) 45  4
Total$102,413  $(58,509) 43,904  
Trademarks and brands, not subject to amortization40,070  
Total$83,974  
Schedule of Finite-Lived Intangible Assets, Amortization Expense
For the fiscal years ended
201920182017
Amortization of intangibles$6,344  $6,065  $2,986  
Schedule of Goodwill
Goodwill activity consisted of the following:
Balance as of December 28, 2018$88,850  
Acquisitions (Refer to Note 16 - Acquisitions)
4,692  
Currency translation and other adjustments(15) 
Balance as of January 3, 2020$93,527  
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense
Future amortization expense for finite-lived intangibles as of January 3, 2020 is as follows:
For fiscal year:Amortization Expense
2020$5,868  
20215,765  
20225,641  
20235,000  
20244,829  
Thereafter14,776  
Total expected future amortization$41,879  
v3.19.3.a.u2
Accrued Expenses (Tables)
 12 Months Ended
Jan. 03, 2020
Payables and Accruals [Abstract]  
Accrued Expenses
Accrued expenses consisted of the following:
January 3,December 28,
20202018
Payroll and related expenses$14,595  $15,870  
Current portion of lease liabilities6,242  —  
Warranty5,649  6,433  
Income tax payable4,295  6,691  
Other accrued expenses4,963  4,613  
Total$35,744  $33,607  
Activity Related to Warranties
Activity related to warranties is as follows:
For the fiscal years ended
201920182017
Beginning warranty liability$6,433  $6,481  $4,593  
Charge to cost of sales4,064  4,621  5,904  
Fair value of warranty assumed in acquisition100  200  1,016  
Costs incurred(4,948) (4,869) (5,032) 
Ending warranty liability$5,649  $6,433  $6,481  
v3.19.3.a.u2
Debt (Tables)
 12 Months Ended
Jan. 03, 2020
Debt Disclosure [Abstract]  
Summary of Amended and Restated Credit Facility
The following table summarizes our line of credit:
January 3,December 28,
20202018
Amount outstanding$68,000  $—  
Standby letter of credit$5,000  $5,000  
Available borrowing capacity$177,000  $95,000  
Maximum borrowing capacity$250,000  $100,000  
Maturity dateJune 3, 2024
v3.19.3.a.u2
Stockholders' Equity (Tables)
 12 Months Ended
Jan. 03, 2020
Disclosure of Compensation Related Costs, Share-based Payments [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
201920182017
Cost of sales$802  $482  $429  
Sales and marketing506  556  587  
Research and development721  640  442  
General and administrative4,835  5,644  7,269  
Total$6,864  $7,322  $8,727  
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 December 30, 2016811  $16.53  
Granted411  31.38  
Canceled(55) 17.45  
Vested(367) 16.93  
Unvested at December 29, 2017800  23.91  
Granted223  37.07  
Canceled(30) 25.16  
Vested(338) 21.98  
Unvested at December 28, 2018655  29.34  
Granted131  74.70  
Canceled(67) 32.29  
Vested(292) 26.06  
Unvested at January 3, 2020427  $44.98  
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 December 30, 20161,450  $5.33  5$32,528  
Options exercised(541) 5.51  13,588  
Options forfeited(14) 6.20  —  
Options expired(9) 6.38  —  
Balance at December 29, 2017886  5.19  429,840  
Options exercised(166) 5.25  9,384  
Balance at December 28, 2018720  5.17  339,403  
Options exercised(289) 5.03  17,422  
Balance at January 3, 2020431  5.27  227,814  
Options vested and expected to vest - January 3, 2020431  5.27  227,814  
Options exercisable - January 3, 2020431  $5.27  2$27,814  
v3.19.3.a.u2
Earnings Per Share (Tables)
 12 Months Ended
Jan. 03, 2020
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
201920182017
Net income attributable to FOX stockholders$93,033  $84,040  $43,128  
Weighted average shares used to compute basic earnings per share38,333  37,805  37,373  
Dilutive effect of employee stock plans822  1,151  1,365  
Weighted average shares used to compute diluted earnings per share39,155  38,956  38,738  
Earnings per share:
Basic$2.43  $2.22  $1.15  
Diluted$2.38  $2.16  $1.11  
v3.19.3.a.u2
Income Taxes (Tables)
 12 Months Ended
Jan. 03, 2020
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
201920182017
Current:
Federal$16,670  $10,330  $13,483  
State256  604  648  
Foreign7,567  7,248  8,148  
Total24,493  18,182  22,279  
Deferred:
Federal(11,158) (11,462) (923) 
State586  (671) 387  
Foreign178  (526) (641) 
Total(10,394) (12,659) (1,177) 
Provision for income taxes$14,099  $5,523  $21,102  
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
201920182017
United States$77,810  $63,138  $36,555  
Foreign30,759  27,752  27,730  
$108,569  $90,890  $64,285  
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
201920182017
Tax at federal statutory rate21.0 %21.0 %35.0 %
State taxes, net of federal benefit1.8  1.8  2.0  
Change in liability for unrecognized tax benefits0.2  (10.8) (1.7) 
Stock-based compensation(6.3) (3.8) (10.6) 
Foreign derived income benefit(3.0) (1.6) —  
Research and development tax credit(0.8) (1.2) (2.2) 
Change in tax rates—  (0.8) (3.8) 
California business development tax credit—  (0.8) —  
Executive compensation deduction limitation1.2  2.2  —  
Foreign rate differential—  0.4  (4.6) 
Valuation allowance on deferred tax assets0.2  0.4  9.4  
Tax on unremitted foreign earnings0.3  0.4  8.9  
Other(1.6) (1.1) 0.4  
Total provision13.0 %6.1 %32.8 %
Schedule of Deferred Tax Assets and Liabilities
Deferred Income Taxes
January 3,December 28,
20202018
Deferred tax assets:
Foreign tax credits, including amounts associated with accrued charges$33,320  $23,920  
Inventory3,542  3,086  
Accrued liabilities2,862  2,815  
Lease liability4,304  —  
Research and development tax credits4,369  2,536  
Stock-based compensation961  1,067  
Other975  787  
Total deferred tax asset50,333  34,211  
Valuation allowance(6,548) (6,609) 
Net deferred tax asset43,785  27,602  
Deferred tax liabilities:
Depreciation(6,924) (7,012) 
Accrued withholding tax on unremitted foreign dividends(2,318) (2,164) 
Lease right-of-use asset(4,215) —  
Intangible assets(4,283) (2,220) 
Other(320) (878) 
Total deferred tax liability(18,060) (12,274) 
Net deferred tax asset$25,725  $15,328  
Schedule of Unrecognized Tax Benefits Roll Forward
Unrecognized Tax Benefits
For the fiscal years ended
201920182017
Balance - beginning of period$1,996  $8,154  $7,440  
Increase related to current year tax positions557  457  460  
Increase related to prior year tax positions313  36  1,770  
Decrease related to prior year tax positions—  (6,480) —  
Decrease due to expiration of statute of limitations(566) (171) (1,516) 
Balance - end of period$2,300  $1,996  $8,154  
v3.19.3.a.u2
Fair Value Measurement and Financial Instruments (Tables)
 12 Months Ended
Jan. 03, 2020
Fair Value Disclosures [Abstract]  
Liabilities Measured at Fair Value on Recurring Basis
The following table presents the Company's hierarchy for its assets and liabilities measured at fair value on a recurring basis as of the following periods:
January 3, 2020December 28, 2018
Level 1Level 2Level 3TotalLevel 1Level 2Level 3Total
Liabilities:
Term debt$—  $—  $—  $—  $—  $59,426  $—  $59,426  
Non-controlling interest subject to put provisions—  —  15,719  15,719  —  —  14,282  14,282  
Total liabilities measured at fair value$—  $—  $15,719  $15,719  $—  $59,426  $14,282  $73,708  
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation
The following table provides a reconciliation of the beginning and ending balances for the Company's obligations measured at fair value using Level 3 inputs:
Obligations (measured with level 3 inputs) 
Balance at December 28, 2018$14,282  
Net income ascribed to non-controlling interest1,437  
Balance at January 3, 2020$15,719  
v3.19.3.a.u2
Acquisitions (Tables)
 12 Months Ended
Jan. 03, 2020
Business Combinations [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:
Acquisition consideration
Cash consideration$53,350  
Settlement of pre-existing accounts242  
Total consideration at closing$53,592  
Fair market values
Other current and non-current assets$5,966  
Property, plant and equipment1,416  
Customer relationships28,600  
Trademarks and brand6,500  
Goodwill30,392  
Total assets acquired72,874  
Accounts payable and accrued expenses3,329  
Debt assumed in acquisition465  
Deferred tax liability for tax free rollover of non-controlling interest2,588  
Total liabilities assumed6,382  
Redeemable non-controlling interest12,900  
Purchase price allocation$53,592  
v3.19.3.a.u2
Selected Quarterly Financial Data (Unaudited) (Tables)
 12 Months Ended
Jan. 03, 2020
Quarterly Financial Information Disclosure [Abstract]  
Schedule of Quarterly Financial Information
Selected summarized quarterly financial information for 2019 and 2018 is as follows:
Quarter Ended
Jan 3,Sep 27,Jun 28,Mar 29,Dec 28,Sep 28,Jun 29,Mar 30,
20202019201920192018201820182018
Sales$185,881  $211,317  $192,122  $161,700  $156,810  $175,798  $156,825  $129,792  
Gross profit59,641  69,817  62,220  51,057  50,953  60,486  52,413  41,644  
Income from operations26,159  35,360  29,471  21,819  22,853  31,452  24,275  15,952  
Net income attributable to Fox Stockholders22,522  29,487  22,921  18,103  20,135  24,312  18,369  21,224  
Earnings per share:
    Basic$0.58  $0.77  $0.60  $0.48  $0.53  $0.64  $0.49  $0.56  
    Diluted$0.58  $0.75  $0.59  $0.46  $0.52  $0.62  $0.47  $0.55  
v3.19.3.a.u2
Description of the Business, Basis of Presentation and Summary of Significant Accounting Policies - Additional Information (Details) - USD ($)
 9 Months Ended 12 Months Ended
Dec. 31, 2017
Sep. 29, 2017
Jan. 03, 2020
Dec. 28, 2018
Dec. 29, 2017
Dec. 30, 2016
Description of Business and Basis of Presentation [Line Items]            
Foreign currency transaction (losses) gains   $ 181,000 $ 881,000 $ 420,000    
Cash and cash equivalents     43,736,000 27,958,000 $ 35,947,000 $ 35,280,000
Internal use computer software costs capitalized     2,445,000      
Asset impairment charges     0 0 0  
Goodwill impairment     0      
Impairment of intangible assets     0 0 0  
Estimates for unpaid claims     842,000 801,000    
Deferred revenue related to pricing provisions     172,000      
GILTI, tax     316,000      
Advertising expense     1,413,000 902,000 $ 1,070,000  
Adjustment to retained earnings, before tax $ 368,000          
Adjustment to retained earnings, after tax $ 281,000          
Lease right-of-use assets     17,472,000      
Operating lease liability     $ 17,826,000      
Accounting Standards Update 2016-02            
Description of Business and Basis of Presentation [Line Items]            
Adjustment to retained earnings, before tax       300,000    
Adjustment to retained earnings, after tax       228,000    
Lease right-of-use assets       13,637,000    
Operating lease liability       $ 13,937,000    
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     4 years      
Sales Revenue, Net | Customer C            
Description of Business and Basis of Presentation [Line Items]            
Concentration risk, percentage   8.00% 11.00% 8.00%    
Purchases | Supplier Concentration Risk            
Description of Business and Basis of Presentation [Line Items]            
Concentration risk, percentage   35.00% 35.00% 30.00%    
Accounts Payable | Supplier Concentration Risk            
Description of Business and Basis of Presentation [Line Items]            
Concentration risk, percentage     29.00% 23.00%    
U.S.            
Description of Business and Basis of Presentation [Line Items]            
Cash and cash equivalents     $ 3,118,000      
International            
Description of Business and Basis of Presentation [Line Items]            
Cash and cash equivalents     $ 40,618,000      
v3.19.3.a.u2
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
 12 Months Ended
Jan. 03, 2020
Dec. 28, 2018
Customer A    
Concentration Risk [Line Items]    
Concentration risk, accounts receivable percentage 11.00% 13.00%
Customer B    
Concentration Risk [Line Items]    
Concentration risk, accounts receivable percentage 11.00% 12.00%
Customer C    
Concentration Risk [Line Items]    
Concentration risk, accounts receivable percentage 10.00% 6.00%
v3.19.3.a.u2
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
Jan. 03, 2020
Dec. 28, 2018
Dec. 29, 2017
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]      
Balance, beginning of year $ 600 $ 676 $ 397
Add: bad debt expense 335 189 327
Less: write-offs, net of recoveries (125) (265) (48)
Balance, end of year $ 810 $ 600 $ 676
v3.19.3.a.u2
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
Jan. 03, 2020
Building and building improvements | Minimum  
Property, Plant and Equipment [Line Items]  
Property and equipment, estimated useful life 10 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 5 years
Internal-use computer software  
Property, Plant and Equipment [Line Items]  
Property and equipment, estimated useful life 10 years
Machinery and manufacturing equipment | Minimum  
Property, Plant and Equipment [Line Items]  
Property and equipment, estimated useful life 10 years
Machinery and manufacturing equipment | Maximum  
Property, Plant and Equipment [Line Items]  
Property and equipment, estimated useful life 15 years
Manufacturing equipment | Minimum  
Property, Plant and Equipment [Line Items]  
Property and equipment, estimated useful life 5 years
Manufacturing equipment | Maximum  
Property, Plant and Equipment [Line Items]  
Property and equipment, estimated useful life 10 years
Transportation equipment  
Property, Plant and Equipment [Line Items]  
Property and equipment, estimated useful life 5 years
v3.19.3.a.u2
Revenues - Sales by Product Category (Details) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Jan. 03, 2020
Sep. 27, 2019
Jun. 28, 2019
Mar. 29, 2019
Dec. 28, 2018
Sep. 28, 2018
Jun. 29, 2018
Mar. 30, 2018
Jan. 03, 2020
Dec. 28, 2018
Dec. 29, 2017
Disaggregation of Revenue [Line Items]                      
Sales $ 185,881 $ 211,317 $ 192,122 $ 161,700 $ 156,810 $ 175,798 $ 156,825 $ 129,792 $ 751,020 $ 619,225 $ 475,633
Powered Vehicles                      
Disaggregation of Revenue [Line Items]                      
Sales                 451,253 337,284 230,255
Specialty Sports                      
Disaggregation of Revenue [Line Items]                      
Sales                 $ 299,767 $ 281,941 $ 245,378
v3.19.3.a.u2
Revenues - Sales by Sales Channel (Details) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Jan. 03, 2020
Sep. 27, 2019
Jun. 28, 2019
Mar. 29, 2019
Dec. 28, 2018
Sep. 28, 2018
Jun. 29, 2018
Mar. 30, 2018
Jan. 03, 2020
Dec. 28, 2018
Dec. 29, 2017
Disaggregation of Revenue [Line Items]                      
Sales $ 185,881 $ 211,317 $ 192,122 $ 161,700 $ 156,810 $ 175,798 $ 156,825 $ 129,792 $ 751,020 $ 619,225 $ 475,633
OEM                      
Disaggregation of Revenue [Line Items]                      
Sales                 473,969 368,580 288,733
Aftermarket                      
Disaggregation of Revenue [Line Items]                      
Sales                 $ 277,051 $ 250,645 $ 186,900
v3.19.3.a.u2
Revenues - Sales by Geographic Location (Details) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Jan. 03, 2020
Sep. 27, 2019
Jun. 28, 2019
Mar. 29, 2019
Dec. 28, 2018
Sep. 28, 2018
Jun. 29, 2018
Mar. 30, 2018
Jan. 03, 2020
Dec. 28, 2018
Dec. 29, 2017
Disaggregation of Revenue [Line Items]                      
Sales $ 185,881 $ 211,317 $ 192,122 $ 161,700 $ 156,810 $ 175,798 $ 156,825 $ 129,792 $ 751,020 $ 619,225 $ 475,633
North America                      
Disaggregation of Revenue [Line Items]                      
Sales                 502,263 388,702 280,860
Asia                      
Disaggregation of Revenue [Line Items]                      
Sales                 120,839 119,142 101,079
Europe                      
Disaggregation of Revenue [Line Items]                      
Sales                 120,272 101,217 86,405
Rest of the world                      
Disaggregation of Revenue [Line Items]                      
Sales                 $ 7,646 $ 10,164 $ 7,289
v3.19.3.a.u2
Inventory (Details) - USD ($)
$ in Thousands
Jan. 03, 2020
Dec. 28, 2018
Inventory Disclosure [Abstract]    
Raw materials $ 87,779 $ 75,652
Work-in-process 7,075 5,880
Finished goods 33,651 25,608
Total inventory $ 128,505 $ 107,140
v3.19.3.a.u2
Property, Plant and Equipment, net - Components (Details) - USD ($)
$ in Thousands
Jan. 03, 2020
Dec. 28, 2018
Property, Plant and Equipment [Line Items]    
Property, plant and equipment gross $ 150,897 $ 96,306
Less: accumulated depreciation and amortization (42,518) (31,518)
Property, plant and equipment, net 108,379 64,788
Building and building improvements    
Property, Plant and Equipment [Line Items]    
Property, plant and equipment gross 42,343 17,622
Information systems, office equipment and furniture    
Property, Plant and Equipment [Line Items]    
Property, plant and equipment gross 10,102 7,262
Internal-use computer software    
Property, Plant and Equipment [Line Items]    
Property, plant and equipment gross 16,860 14,416
Land    
Property, Plant and Equipment [Line Items]    
Property, plant and equipment gross 5,414 1,356
Leasehold improvements    
Property, Plant and Equipment [Line Items]    
Property, plant and equipment gross 13,841 10,386
Machinery and manufacturing equipment    
Property, Plant and Equipment [Line Items]    
Property, plant and equipment gross 57,331 41,332
Transportation equipment    
Property, Plant and Equipment [Line Items]    
Property, plant and equipment gross $ 5,006 $ 3,932
v3.19.3.a.u2
Property, Plant and Equipment, net - Additional Information (Details) - USD ($)
$ in Thousands
 12 Months Ended
Jan. 03, 2020
Dec. 28, 2018
Dec. 29, 2017
Property, Plant and Equipment [Abstract]      
Depreciation expense $ 11,261 $ 8,143 $ 6,923
Amortization of internal use software 1,861 $ 869 $ 565
Internal use computer software costs capitalized $ 2,445    
v3.19.3.a.u2
Property, Plant and Equipment, net - Long-lived Assets by Geographic Location (Details) - USD ($)
$ in Thousands
Jan. 03, 2020
Dec. 28, 2018
Property, Plant and Equipment [Line Items]    
Long-lived assets $ 108,379 $ 64,788
United States    
Property, Plant and Equipment [Line Items]    
Long-lived assets 100,508 59,056
International    
Property, Plant and Equipment [Line Items]    
Long-lived assets $ 7,871 $ 5,732
v3.19.3.a.u2
- Narrative (Details) - USD ($)
$ in Thousands
 12 Months Ended
Jan. 03, 2020
Dec. 28, 2018
Dec. 29, 2017
Lessee, Lease, Description [Line Items]      
Renewal term 5 years    
Lease termination period 1 year    
Weighted average remaining lease term 4 years 3 months 29 days    
Weighted-average incremental borrowing rate 3.75%    
Lease, Cost $ 7,195 $ 6,445 $ 6,040
Minimum      
Lessee, Lease, Description [Line Items]      
Remaining term 1 year    
Maximum      
Lessee, Lease, Description [Line Items]      
Remaining term 8 years    
v3.19.3.a.u2
- Lease Costs (Details) - USD ($)
$ in Thousands
 12 Months Ended
Jan. 03, 2020
Dec. 28, 2018
Dec. 29, 2017
Leases [Abstract]      
Operating Lease, Cost $ 5,706    
Other lease costs 1,489    
Lease, Cost $ 7,195 $ 6,445 $ 6,040
v3.19.3.a.u2
- Supplemental Balance Sheet Information (Details)
$ in Thousands
 12 Months Ended
Jan. 03, 2020
USD ($)
Leases [Abstract]  
Lease right-of-use assets $ 17,472
Operating Lease, Liability, Current 6,242
Lease liabilities less current portion 11,584
Right-of-use assets obtained in exchange for lease obligations 8,691
Cash paid for amounts included in the measurement of lease liabilities $ 5,630
v3.19.3.a.u2
- Maturity of Lease Liabilities (Details)
$ in Thousands
Jan. 03, 2020
USD ($)
Leases [Abstract]  
2020 $ 6,242
2021 4,522
2022 2,920
2023 2,532
2024 1,416
Thereafter 1,719
Total lease payments 19,351
Less: imputed interest (1,525)
Operating lease liability 17,826
Less: current portion (6,242)
Lease liabilities less current portion $ 11,584
v3.19.3.a.u2
Goodwill and Intangible Assets - Intangible Assets Excluding Goodwill (Details) - USD ($)
$ in Thousands
 12 Months Ended
Jan. 03, 2020
Dec. 28, 2018
Intangible Asset Excluding Goodwill [Line Items]    
Gross carrying amount $ 106,732 $ 102,413
Accumulated amortization (64,853) (58,509)
Net carrying amount 41,879 43,904
Intangible assets, excluding goodwill 81,949 83,974
Trademarks and brands    
Intangible Asset Excluding Goodwill [Line Items]    
Trademarks and brands, not subject to amortization 40,070 40,070
Customer relationships    
Intangible Asset Excluding Goodwill [Line Items]    
Gross carrying amount 70,473 67,624
Accumulated amortization (30,114) (24,134)
Net carrying amount $ 40,359 $ 43,490
Weighted average life (years) 11 years 11 years
Core technology    
Intangible Asset Excluding Goodwill [Line Items]    
Gross carrying amount $ 34,400 $ 33,400
Accumulated amortization (33,309) (33,031)
Net carrying amount $ 1,091 $ 369
Weighted average life (years) 8 years 8 years
Patents    
Intangible Asset Excluding Goodwill [Line Items]    
Gross carrying amount $ 1,859 $ 1,389
Accumulated amortization (1,430) (1,344)
Net carrying amount $ 429 $ 45
Weighted average life (years) 4 years 4 years
v3.19.3.a.u2
Goodwill and Intangible Assets - Amortization of Intangibles (Details) - USD ($)
$ in Thousands
 12 Months Ended
Jan. 03, 2020
Dec. 28, 2018
Dec. 29, 2017
Finite-Lived Intangible Assets, Net [Abstract]      
Amortization of intangibles $ 6,344 $ 6,065 $ 2,986
v3.19.3.a.u2
Goodwill and Intangible Assets - Goodwill Rollforward Activity (Details)
$ in Thousands
 12 Months Ended
Jan. 03, 2020
USD ($)
Finite-lived Intangible Assets [Roll Forward]  
Balance as of December 28, 2018 $ 88,850
Purchase price adjustments (Refer to Note 16 - Acquisitions) 4,692
Currency translation and other adjustments (15)
Balance as of January 3, 2020 $ 93,527
v3.19.3.a.u2
Goodwill and Intangible Assets - Future Amortization Expense (Details) - USD ($)
$ in Thousands
Jan. 03, 2020
Dec. 28, 2018
Goodwill and Intangible Assets Disclosure [Abstract]    
2019 $ 5,868  
2020 5,765  
2021 5,641  
2022 5,000  
2023 4,829  
Thereafter 14,776  
Net carrying amount $ 41,879 $ 43,904
v3.19.3.a.u2
Accrued Expenses - Components (Details) - USD ($)
$ in Thousands
Jan. 03, 2020
Dec. 28, 2018
Dec. 29, 2017
Dec. 30, 2016
Payables and Accruals [Abstract]        
Payroll and related expenses $ 14,595 $ 15,870    
Operating Lease, Liability, Current 6,242      
Warranty 5,649 6,433 $ 6,481 $ 4,593
Income tax payable 4,295 6,691    
Other accrued expenses 4,963 4,613    
Total $ 35,744 $ 33,607    
v3.19.3.a.u2
Accrued Expenses - Activity Related to Warranties (Details) - USD ($)
$ in Thousands
 9 Months Ended 12 Months Ended
Sep. 29, 2017
Jan. 03, 2020
Dec. 28, 2018
Movement in Standard Product Warranty Accrual [Roll Forward]      
Beginning warranty liability $ 4,593 $ 6,433 $ 6,481
Charge to cost of sales 5,904 4,064 4,621
Fair value of warranty assumed in acquisition 1,016 100 200
Costs incurred $ (5,032) (4,948) (4,869)
Ending warranty liability   $ 5,649 $ 6,433
v3.19.3.a.u2
Related Party Transactions (Details) - USD ($)
$ in Thousands
 12 Months Ended
Sep. 28, 2018
Jan. 03, 2020
Dec. 28, 2018
Dec. 29, 2017
Former Owner | Related Party Transactions        
Related Party Transaction [Line Items]        
Rent expense   $ 125    
Monthly rental payments   $ 16    
Minority Shareholder | Related Party Transactions        
Related Party Transaction [Line Items]        
Rent expense     $ 656 $ 715
Beneficial Owner | Employees | Purchase of Properties        
Related Party Transaction [Line Items]        
Amount of related party transaction $ 3,750      
Beneficial Owner | Employees | Rental of Buildings        
Related Party Transaction [Line Items]        
Expenses from transactions with related party     $ 257 $ 29
v3.19.3.a.u2
Debt - Second Amended and Restated Credit Facility, Additional Information (Details) - USD ($)
 12 Months Ended
May 11, 2016
Jan. 03, 2020
Dec. 28, 2018
Aug. 31, 2013
Debt Instrument [Line Items]        
Credit facility   $ 250,000,000 $ 100,000,000  
Weighted average interest rate on outstanding borrowings   2.80%    
Standby letter of credit   $ 5,000,000 $ 5,000,000  
Revolving Credit Facility        
Debt Instrument [Line Items]        
Debt issuance costs   516,000    
Credit facility       $ 15,000,000
Payments of loan costs   $ 510,000    
LIBOR        
Debt Instrument [Line Items]        
Basis spread on variable rate (as a percent)   1.71%    
LIBOR | Minimum        
Debt Instrument [Line Items]        
Basis spread on variable rate (as a percent) 1.00%      
LIBOR | Maximum        
Debt Instrument [Line Items]        
Basis spread on variable rate (as a percent) 1.50%      
Prime Rate        
Debt Instrument [Line Items]        
Basis spread on variable rate (as a percent)   4.75%    
Prime Rate | Minimum        
Debt Instrument [Line Items]        
Basis spread on variable rate (as a percent) 0.00%      
Prime Rate | Maximum        
Debt Instrument [Line Items]        
Basis spread on variable rate (as a percent) 0.50%      
v3.19.3.a.u2
Debt - Summary of Amended and Restated Credit Facility (Details) - USD ($)
$ in Thousands
Jan. 03, 2020
Dec. 28, 2018
Debt Disclosure [Abstract]    
Amount outstanding $ 68,000 $ 0
Standby letter of credit 5,000 5,000
Available borrowing capacity 177,000 95,000
Maximum borrowing capacity $ 250,000 $ 100,000
v3.19.3.a.u2
Commitments and Contingencies - Additional Information (Details) - Tuscany
Nov. 30, 2017
Business Acquisition [Line Items]  
Ownership interest acquired (as a percent) 80.00%
Call option to acquire remaining interest (as a percent) 20.00%
Period to exercise put option 180 days
v3.19.3.a.u2
Stockholders' Equity - Secondary Offerings and Share Repurchase Program (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
 1 Months Ended 12 Months Ended
Mar. 31, 2017
Dec. 28, 2018
Dec. 29, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Issuance of common stock (in shares) 5,574    
Share price (in dollars per share)     $ 26.65
Expenses incurred in connection with offering of shares   $ 113  
Underwriter's Option      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Issuance of common stock (in shares) 466    
v3.19.3.a.u2
Stockholders' Equity - Equity Incentive Plans (Details)
shares in Thousands
 12 Months Ended
Jan. 03, 2020
shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Shares reserved for future issuance 2,491
Number of shares available for grant 1,639
Stock Option  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Award vesting period 4 years
Award expiration period 10 years
Award vesting percentage 25.00%
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 5 years
v3.19.3.a.u2
Stockholders' Equity - Stock-Based Compensation (Details) - USD ($)
$ in Thousands
 9 Months Ended 12 Months Ended
Sep. 29, 2017
Jan. 03, 2020
Dec. 28, 2018
Dec. 29, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Allocation of stock-based compensation   $ 6,864 $ 7,322 $ 8,727
RSUs        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Allocation of stock-based compensation $ 8,641      
Stock Option        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Allocation of stock-based compensation $ 86      
v3.19.3.a.u2
Stockholders' Equity - Summary of Allocation of Stock-Based Compensation in Accompanying Consolidated Statements of Income (Details) - USD ($)
$ in Thousands
 12 Months Ended
Jan. 03, 2020
Dec. 28, 2018
Dec. 29, 2017
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]      
Allocation of stock-based compensation $ 6,864 $ 7,322 $ 8,727
Cost of sales      
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]      
Allocation of stock-based compensation 802 482 429
Sales and marketing      
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]      
Allocation of stock-based compensation 506 556 587
Research and development      
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]      
Allocation of stock-based compensation 721 640 442
General and administrative      
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]      
Allocation of stock-based compensation $ 4,835 $ 5,644 $ 7,269
v3.19.3.a.u2
Stockholders' Equity - Summary of Unvested RSUs Activity (Details) - RSUs - $ / shares
shares in Thousands
 12 Months Ended
Jan. 03, 2020
Dec. 28, 2018
Dec. 29, 2017
Number of shares outstanding      
Unvested outstanding, beginning balance (in shares) 655 800 811
Granted (in shares) 131 223 411
Canceled (in shares) (67) (30) (55)
Vested (in shares) (292) (338) (367)
Unvested outstanding, ending balance (in shares) 427 655 800
Weighted-average grant date fair value      
Unvested outstanding, beginning balance (in dollars per share) $ 29.34 $ 23.91 $ 16.53
Granted (in dollars per share) 74.70 37.07 31.38
Canceled (in dollars per share) 32.29 25.16 17.45
Vested (in dollars per share) 26.06 21.98 16.93
Unvested outstanding, ending balance (in dollars per share) $ 44.98 $ 29.34 $ 23.91
v3.19.3.a.u2
Stockholders' Equity - Restricted Stock Units (Details) - RSUs - USD ($)
$ in Thousands
 12 Months Ended
Jan. 03, 2020
Dec. 28, 2018
Dec. 29, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Fair value of vested awards $ 21,793 $ 13,874 $ 12,587
Unrecognized stock-based compensation expense $ 14,190    
Period for recognition of unrecognized stock-based compensation expense 2 years 10 months 2 days    
v3.19.3.a.u2
Stockholders' Equity - Stock Option Activity (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
 12 Months Ended
Jan. 03, 2020
Dec. 28, 2018
Dec. 29, 2017
Dec. 30, 2016
Number of shares outstanding        
Options outstanding, beginning balance (in shares) 720 886 1,450  
Options exercised (in shares) (289) (166) (541)  
Options forfeited (in shares)     (14)  
Options expired (in shares)   (166) 9  
Options outstanding, ending balance (in shares) 431 720 886 1,450
Options vested and expected to vest (in shares) 431      
Options exercisable (in shares) 431      
Weighted-average exercise price        
Options outstanding, beginning of period (in dollars per share) $ 5.17 $ 6.20 $ 5.33  
Options exercised (in dollars per share) 5.03 6.38 5.51  
Options forfeited (in dollars per share)   5.19    
Options expired (in dollars per share)   5.25    
Options outstanding, ending balance (in dollars per share) 5.27 $ 5.17 $ 6.20 $ 5.33
Options vested and expected to vest (in dollars per share) 5.27      
Options exercisable (in dollars per share) $ 5.27      
Weighted-average remaining contractual life (years)        
Options outstanding 2 years 3 years 4 years 5 years
Options vested and expected to vest 2 years      
Options exercisable 2 years      
Aggregate intrinsic value        
Options outstanding $ 27,814 $ 39,403 $ 0 $ 32,528
Options exercised 17,422 0 $ 13,588  
Balance at December 29, 2017   29,840    
Options exercised   $ 9,384    
Options vested and expected to vest 27,814      
Options exercisable $ 27,814      
v3.19.3.a.u2
Stockholders' Equity - Stock Options (Details) - USD ($)
shares in Thousands, $ in Thousands
 12 Months Ended
Jan. 03, 2020
Dec. 28, 2018
Dec. 29, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]      
Shares issued due to exercise of stock options 289 166 541
Proceeds from exercise of stock options $ 1,451 $ 875 $ 2,981
v3.19.3.a.u2
Earnings Per Share - Calculation of Basic and Diluted Earnings Per Share (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
 3 Months Ended 12 Months Ended
Jan. 03, 2020
Sep. 27, 2019
Jun. 28, 2019
Mar. 29, 2019
Dec. 28, 2018
Sep. 28, 2018
Jun. 29, 2018
Mar. 30, 2018
Jan. 03, 2020
Dec. 28, 2018
Dec. 29, 2017
Earnings Per Share [Abstract]                      
Net income attributable to FOX stockholders $ 22,522 $ 29,487 $ 22,921 $ 18,103 $ 20,135 $ 24,312 $ 18,369 $ 21,224 $ 93,033 $ 84,040 $ 43,128
Weighted average shares used to compute basic earnings per share (in shares)                 38,333 37,805 37,373
Dilutive effect of employee stock plans (in shares)                 822 1,151 1,365
Weighted average shares used to compute diluted earnings per share (in shares)                 39,155 38,956 38,738
Basic (in dollars per share) $ 0.58 $ 0.77 $ 0.60 $ 0.48 $ 0.53 $ 0.64 $ 0.49 $ 0.56 $ 2.43 $ 2.22 $ 1.15
Diluted (in dollars per share) $ 0.58 $ 0.75 $ 0.59 $ 0.46 $ 0.52 $ 0.62 $ 0.47 $ 0.55 $ 2.38 $ 2.16 $ 1.11
v3.19.3.a.u2
Income Taxes - Components of Income Tax Expense (Details) - USD ($)
$ in Thousands
 12 Months Ended
Jan. 03, 2020
Dec. 28, 2018
Dec. 29, 2017
Current:      
Federal $ 16,670 $ 10,330 $ 13,483
State 256 604 648
Foreign 7,567 7,248 8,148
Total current 24,493 18,182 22,279
Deferred:      
Federal (11,158) (11,462) (923)
State 586 (671) 387
Foreign 178 (526) (641)
Total deferred (10,394) (12,659) (1,177)
Total provision $ 14,099 $ 5,523 $ 21,102
v3.19.3.a.u2
Income Taxes - Income Before Provision by Jurisdiction (Details) - USD ($)
$ in Thousands
 12 Months Ended
Jan. 03, 2020
Dec. 28, 2018
Dec. 29, 2017
Income Tax Disclosure [Abstract]      
United States $ 77,810 $ 63,138 $ 36,555
Foreign 30,759 27,752 27,730
Income before income taxes $ 108,569 $ 90,890 $ 64,285
v3.19.3.a.u2
Income Taxes - Reconciliation of Statutory Federal Rate and Effective Tax Rate (Details)
 12 Months Ended
Jan. 03, 2020
Dec. 28, 2018
Dec. 29, 2017
Effective Income Tax Rate Continuing Operations Tax Rate Reconciliation [Abstract]      
Tax at federal statutory rate 21.00% 21.00% 35.00%
State taxes, net of federal benefit 1.80% 1.80% 2.00%
Change in liability for unrecognized tax benefits 0.20% (10.80%) (1.70%)
Stock-based compensation (6.30%) (3.80%) (10.60%)
Foreign derived income benefit (3.00%) (1.60%) 0.00%
Research and development tax credit (0.80%) (1.20%) (2.20%)
Change in tax rates 0.00% (0.80%) (3.80%)
California business development tax credit 0.00% (0.80%) 0.00%
Executive compensation deduction limitation 1.20% 2.20% 0.00%
Foreign rate differential 0.00% 0.40% (4.60%)
Valuation allowance on deferred tax assets 0.20% 0.40% 9.40%
Tax on unremitted foreign earnings 0.30% 0.40% 8.90%
Other (1.60%) (1.10%) 0.40%
Total provision 13.00% 6.10% 32.80%
v3.19.3.a.u2
Income Taxes - Additional Information (Details) - USD ($)
 12 Months Ended
Jan. 03, 2020
Dec. 28, 2018
Dec. 29, 2017
Dec. 30, 2016
Income Tax Disclosure [Abstract]        
One-time transition tax provided for by the TCJA   $ 3,706,000    
Deferred tax liability representing foreign withholding tax due upon remittance   2,026,000    
Tax Credit Carryforward [Line Items]        
Tax credit carryforward   1,700    
Decrease in valuation allowance $ (61,000)      
Valuation allowance 6,548,000 6,609,000    
Unrecognized tax benefits 2,300,000 1,996,000 $ 8,154,000 $ 7,440,000
Unrecognized tax benefits that would impact effective tax rate 1,805,000      
One-time impact of favorable income tax decision   (9,838,000)    
Possible reduction in unrecognized tax benefit over fiscal year 340,000      
Interest and penalties related to uncertain tax positions 36,000 73,000    
Deferred tax liability on unremitted foreign earnings 2,318,000 2,164,000    
Tax Year 2015        
Tax Credit Carryforward [Line Items]        
Unrecognized tax benefits that would impact effective tax rate 5,648,000      
Decrease in unrecognized tax benefits resulting from tax audits 6,198,000      
State | Research Tax Credit        
Tax Credit Carryforward [Line Items]        
Tax credit carryforward   2,876,000    
Foreign        
Tax Credit Carryforward [Line Items]        
Tax credit carryforward   33,320,000    
Net operating loss carryforwards   3,036,000    
Net operating loss carryforwards not subject to expiration   96,000    
Valuation allowance on foreign tax credits as a result of TCJA   6,287,000    
Tax credits, valuation allowance 6,466,000      
Valuation allowance 82,000      
Foreign | Tax Year 2025        
Tax Credit Carryforward [Line Items]        
Net operating loss carryforwards   2,940,000    
Federal | Research Tax Credit        
Tax Credit Carryforward [Line Items]        
Tax credit carryforward   $ 2,817,000    
California | State        
Tax Credit Carryforward [Line Items]        
Benefit from tax credits $ 950,000      
Tax credit, net of federal income tax     $ 751,000  
v3.19.3.a.u2
Income Taxes - Significant Components of Deferred Tax Assets and Liabilities (Details) - USD ($)
$ in Thousands
Jan. 03, 2020
Dec. 28, 2018
Deferred tax assets:    
Foreign tax credits, including amounts associated with accrued charges $ 33,320 $ 23,920
Inventory 3,542 3,086
Accrued liabilities 2,862 2,815
Research and development tax credits 4,369 2,536
Stock-based compensation 961 1,067
Other 975 787
Total deferred tax asset 50,333 34,211
Valuation allowance (6,548) (6,609)
Net deferred tax asset 43,785 27,602
Deferred tax liabilities:    
Depreciation (6,924) (7,012)
Accrued withholding tax on unremitted foreign dividends (2,318) (2,164)
Intangible assets (4,283) (2,220)
Other (320) (878)
Total deferred tax liability (18,060) (12,274)
Net deferred tax asset $ 25,725 $ 15,328
v3.19.3.a.u2
Income Taxes - Unrecognized Tax Benefit - Activity (Details) - USD ($)
$ in Thousands
 12 Months Ended
Jan. 03, 2020
Dec. 28, 2018
Dec. 29, 2017
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]      
Balance - beginning of period $ 1,996 $ 8,154 $ 7,440
Increase related to current year tax positions 557 457 460
Increase related to prior year tax positions 313 36 1,770
Decrease related to prior year tax positions 0 (6,480) 0
Decrease due to expiration of statute of limitations (566) (171) (1,516)
Balance - end of period $ 2,300 $ 1,996 $ 8,154
v3.19.3.a.u2
Fair Value Measurement and Financial Instruments - Hierarchy of Assets and Liabilities at Fair Value (Details) - USD ($)
$ in Thousands
Jan. 03, 2020
Dec. 28, 2018
Dec. 29, 2017
Dec. 30, 2016
Liabilities:        
Term debt $ 0 $ 59,426    
Redeemable non-controlling interest 15,719 14,282 $ 12,955 $ 0
Total liabilities measured at fair value 15,719 73,708    
Level 1        
Liabilities:        
Term debt 0 0    
Redeemable non-controlling interest 0 0    
Total liabilities measured at fair value 0 0    
Level 2        
Liabilities:        
Term debt 0 59,426    
Redeemable non-controlling interest 0 0    
Total liabilities measured at fair value 0 59,426    
Level 3        
Liabilities:        
Term debt 0 0    
Redeemable non-controlling interest 15,719 14,282    
Total liabilities measured at fair value $ 15,719 $ 14,282    
v3.19.3.a.u2
Fair Value Measurement and Financial Instruments - Level 3 Roll Forward (Details)
$ in Thousands
 12 Months Ended
Jan. 03, 2020
USD ($)
Obligations (measured with level 3 inputs)  
Balance at December 28, 2018 $ 14,282
Net income ascribed to non-controlling interest 1,437
Balance at January 3, 2020 $ 15,719
v3.19.3.a.u2
Retirement Plan (Details) - USD ($)
$ in Thousands
 9 Months Ended 12 Months Ended
Sep. 29, 2017
Jan. 03, 2020
Dec. 28, 2018
Retirement Benefits [Abstract]      
Matching contribution made under the plan $ 437 $ 1,153 $ 850
v3.19.3.a.u2
Acquisitions - Additional Information (Details) - Tuscany - USD ($)
$ in Thousands
 12 Months Ended
Nov. 30, 2017
Dec. 28, 2018
Business Acquisition [Line Items]    
Total consideration at closing $ 53,592  
Ownership interest acquired (as a percent) 80.00%  
Payments to Acquire Businesses, Gross $ 53,350  
Settlement of pre-existing accounts $ 242  
Call option to acquire remaining interest (as a percent) 20.00%  
Period to exercise put option 180 days  
Transaction costs   $ 900
v3.19.3.a.u2
Acquisitions - Allocation of Purchase Price (Details) - USD ($)
$ in Thousands
May 03, 2019
Nov. 30, 2017
Jan. 03, 2020
Dec. 28, 2018
Fair market values        
Goodwill     $ 93,527 $ 88,850
Tuscany        
Business Combination, Consideration Transferred [Abstract]        
Total consideration at closing   $ 53,592    
Payments to Acquire Businesses, Gross   53,350    
Settlement of pre-existing accounts   242    
Total consideration at closing   53,592    
Fair market values        
Identifiable intangible assets   28,600    
Other current and non-current assets   5,966    
Property, plant and equipment   1,416    
Trademarks and brand   6,500    
Goodwill   30,392    
Total assets acquired   72,874    
Accounts payable and accrued expenses   3,329    
Debt assumed in acquisition   465    
Deferred tax liability for tax free rollover of non-controlling interest   2,588    
Total liabilities assumed   6,382    
Redeemable non-controlling interest   12,900    
Purchase price allocation   $ 53,592    
RideTech        
Business Combination, Consideration Transferred [Abstract]        
Total consideration at closing $ 13,971      
Payments to Acquire Businesses, Gross 6,804      
Business combination, consideration transferred from newly unregistered shares of common stock 7,167      
Total consideration at closing 13,971      
Fair market values        
Identifiable intangible assets 4,320      
Goodwill $ 4,692      
RideTech | Customer relationships        
Business Combination, Consideration Transferred [Abstract]        
Property and equipment, estimated useful life 8 years      
Fair market values        
Identifiable intangible assets $ 2,850      
RideTech | Core technologies        
Business Combination, Consideration Transferred [Abstract]        
Property and equipment, estimated useful life 6 years      
Fair market values        
Identifiable intangible assets $ 1,000      
RideTech | Trademark and brand name        
Business Combination, Consideration Transferred [Abstract]        
Property and equipment, estimated useful life 5 years      
Fair market values        
Trademarks and brand $ 470      
v3.19.3.a.u2
Acquisitions - Other Acquisitions (Details) - USD ($)
 12 Months Ended
Jan. 03, 2020
Dec. 28, 2018
Dec. 29, 2017
Nov. 30, 2017
Business Acquisition [Line Items]        
Cash consideration $ 6,804,000 $ 0 $ 53,592,000  
Goodwill 93,527,000 88,850,000    
Goodwill acquired $ 4,692,000      
Tuscany        
Business Acquisition [Line Items]        
Goodwill       $ 30,392,000
Goodwill acquired   $ 440    
v3.19.3.a.u2
Selected Quarterly Financial Data (Unaudited) (Details) - USD ($)
$ / shares in Units, $ in Thousands
 3 Months Ended 12 Months Ended
Jan. 03, 2020
Sep. 27, 2019
Jun. 28, 2019
Mar. 29, 2019
Dec. 28, 2018
Sep. 28, 2018
Jun. 29, 2018
Mar. 30, 2018
Jan. 03, 2020
Dec. 28, 2018
Dec. 29, 2017
Quarterly Financial Information Disclosure [Abstract]                      
Sales $ 185,881 $ 211,317 $ 192,122 $ 161,700 $ 156,810 $ 175,798 $ 156,825 $ 129,792 $ 751,020 $ 619,225 $ 475,633
Gross profit 59,641 69,817 62,220 51,057 50,953 60,486 52,413 41,644 242,735 205,496 154,490
Income from operations 26,159 35,360 29,471 21,819 22,853 31,452 24,275 15,952 112,809 94,532 67,041
Net income attributable to Fox Stockholders $ 22,522 $ 29,487 $ 22,921 $ 18,103 $ 20,135 $ 24,312 $ 18,369 $ 21,224 $ 93,033 $ 84,040 $ 43,128
Earnings per share:                      
Basic (in dollars per share) $ 0.58 $ 0.77 $ 0.60 $ 0.48 $ 0.53 $ 0.64 $ 0.49 $ 0.56 $ 2.43 $ 2.22 $ 1.15
Diluted (in dollars per share) $ 0.58 $ 0.75 $ 0.59 $ 0.46 $ 0.52 $ 0.62 $ 0.47 $ 0.55 $ 2.38 $ 2.16 $ 1.11
v3.19.3.a.u2
Subsequent Events (Details) - Subsequent Event - SCA Performance Holdings
$ in Thousands
Feb. 11, 2020
USD ($)
Subsequent Event [Line Items]  
Total consideration at closing $ 328,000
Contingent, performance-based retention incentives $ 13,000
v3.19.3.a.u2
Label Element Value
Refinancing of Long-Term Line of Credit foxf_RefinancingofLongTermLineofCredit $ 0
Cumulative Effect of New Accounting Principle in Period of Adoption us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption (228,000)
Cumulative Effect of New Accounting Principle in Period of Adoption us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption (280,000)
Retained Earnings [Member]  
Cumulative Effect of New Accounting Principle in Period of Adoption us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption (280,000)
Cumulative Effect of New Accounting Principle in Period of Adoption us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption $ (228,000)