YETI HOLDINGS, INC., 10-K filed on 3/1/2021
Annual Report
v3.20.4
Cover Page - USD ($)
12 Months Ended
Jan. 02, 2021
Feb. 19, 2021
Jun. 26, 2020
Cover [Abstract]      
Document Type 10-K    
Document Annual Report true    
Document Period End Date Jan. 02, 2021    
Current Fiscal Year End Date --01-02    
Document Transition Report false    
Entity File Number 001-38713    
Entity Registrant Name YETI Holdings, Inc.    
Entity Incorporation, State or Country Code DE    
Entity Tax Identification Number 45-5297111    
Entity Address, Address Line One 7601 Southwest Parkway    
Entity Address, City or Town Austin    
Entity Address, State or Province TX    
Entity Address, Postal Zip Code 78735    
City Area Code 512    
Local Phone Number 394-9384    
Title of 12(b) Security Common Stock, par value $0.01 per share    
Trading Symbol YETI    
Security Exchange Name NYSE    
Entity Well-known Seasoned Issuer Yes    
Entity Voluntary Filers No    
Entity Current Reporting Status Yes    
Entity Interactive Data Current Yes    
Entity Filer Category Large Accelerated Filer    
Entity Small Business false    
Entity Emerging Growth Company false    
ICFR Auditor Attestation Flag true    
Entity Shell Company false    
Entity Public Float     $ 2,450,144,266
Entity Common Stock, Shares Outstanding   87,175,205  
Documents Incorporated by Reference Portions of the Proxy Statement for the registrant’s 2021 Annual Meeting of Stockholders, to be filed with the Securities and Exchange Commission no later than 120 days after January 2, 2021, are incorporated by reference in Part III herein.    
Entity Central Index Key 0001670592    
Amendment Flag false    
Document Fiscal Year Focus 2020    
Document Fiscal Period Focus FY    
v3.20.4
CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Thousands
Jan. 02, 2021
Dec. 28, 2019
Current assets    
Cash $ 253,283 $ 72,515
Accounts receivable, net 65,417 82,688
Inventory 140,111 185,700
Prepaid expenses and other current assets 17,686 19,644
Total current assets 476,497 360,547
Property and equipment, net 78,075 82,610
Operating lease right-of-use assets 34,090 37,768
Goodwill 54,293 54,293
Intangible assets, net 92,078 90,850
Deferred income taxes 1,062 1,082
Deferred charges and other assets 972 2,389
Total assets 737,067 629,539
Current liabilities    
Accounts payable 123,621 83,823
Accrued expenses and other current liabilities 89,068 42,088
Taxes payable 18,316 3,329
Accrued payroll and related costs 25,810 18,119
Operating lease liabilities 8,247 7,768
Current maturities of long-term debt 22,697 15,185
Total current liabilities 287,759 170,312
Long-term debt, net of current portion 111,017 281,715
Operating lease liabilities, non-current 36,546 42,200
Other liabilities 13,327 13,307
Total liabilities 448,649 507,534
Commitments and contingencies (Note 13)
Stockholders’ Equity    
Common stock, par value $0.01; 600,000 shares authorized; 87,128 and 86,774 shares outstanding at January 2, 2021 and December 28, 2019, respectively 871 868
Preferred stock, par value $0.01; 30,000 shares authorized; no shares issued or outstanding 0 0
Additional paid-in capital 321,678 310,678
Accumulated deficit (33,744) (189,545)
Accumulated other comprehensive (loss) income (387) 4
Total stockholders’ equity 288,418 122,005
Total liabilities and stockholders’ equity $ 737,067 $ 629,539
v3.20.4
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares
Jan. 02, 2021
Dec. 28, 2019
Statement of Financial Position [Abstract]    
Common stock, par value (in dollars per share) $ 0.01 $ 0.01
Common stock, authorized (in shares) 600,000,000.0 600,000,000
Common stock, outstanding (in shares) 87,128,000 86,774,000
Preferred stock, par value (in dollars per share) $ 0.01 $ 0.01
Preferred stock, authorized (in shares) 30,000,000.0 30,000,000
Preferred stock, issued (in shares) 0 0
Preferred stock, outstanding (in shares) 0 0
v3.20.4
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)
shares in Thousands, $ in Thousands
12 Months Ended
Jan. 02, 2021
Dec. 28, 2019
Dec. 29, 2018
Income Statement [Abstract]      
Net sales $ 1,091,721 $ 913,734 $ 778,833
Cost of goods sold 462,918 438,420 395,705
Gross profit 628,803 475,314 383,128
Selling, general, and administrative expenses 414,570 385,543 280,972
Operating income 214,233 89,771 102,156
Interest expense (9,155) (21,779) (31,280)
Other income (expense) 123 (734) (1,261)
Income before income taxes 205,201 67,258 69,615
Income tax expense (49,400) (16,824) (11,852)
Net income $ 155,801 $ 50,434 $ 57,763
Net income per share      
Basic (in dollars per share) $ 1.79 $ 0.59 $ 0.71
Diluted (in dollars per share) $ 1.77 $ 0.58 $ 0.69
Weighted-average common shares outstanding      
Basic (in shares) 86,978 85,088 81,777
Diluted (in shares) 87,847 86,347 83,519
v3.20.4
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($)
$ in Thousands
12 Months Ended
Jan. 02, 2021
Dec. 28, 2019
Dec. 29, 2018
Net Income (Loss) Attributable to Parent [Abstract]      
Net income $ 155,801 $ 50,434 $ 57,763
Other comprehensive (loss) income      
Foreign currency translation adjustments (391) 98 (137)
Total comprehensive income $ 155,410 $ 50,532 $ 57,626
v3.20.4
CONSOLIDATED STATEMENTS OF EQUITY (DEFICIT) - USD ($)
shares in Thousands, $ in Thousands
Total
Cumulative Effect, Period of Adoption, Adjustment
Common Stock
Additional Paid-In Capital
Accumulated Deficit
Accumulated Deficit
Cumulative Effect, Period of Adoption, Adjustment
Accumulated Other Comprehensive Income (Loss)
Increase (decrease) in stockholders equity              
Adoption of new accounting standard $ (76,231)   $ 815 $ 219,095 $ (296,184)   $ 43
Balance at beginning of the period (in shares) at Dec. 30, 2017     81,535        
Balance at beginning of the period at Dec. 30, 2017 (76,231)   $ 815 219,095 (296,184)   43
Increase (decrease) in stockholders equity              
Issuance of common stock upon initial public offering, net of offering costs (in shares)     2,500        
Issuance of common stock upon initial public offering, net of offering costs 37,774   $ 25 37,749      
Stock-based compensation 13,247     13,247      
Common stock issued under employee benefit plans (in shares)     560        
Common stock issued under employee benefit plans 262   $ 6 256      
Common stock withheld related to net share settlement of stock-based compensation (in shares)     (2)        
Common stock withheld related to net share settlement of stock-based compensation (57)     (57)      
Repurchase of common stock (in shares)     (397)        
Repurchase of common stock (1,967)   $ (4) (1,963)      
Adoption of new accounting standard 28,971 $ 500 $ 842 268,327 (240,104) $ 500 (94)
Dividends (1,683)       (1,683)    
Other comprehensive income (loss) (137)           (137)
Net income 57,763       57,763    
Balance at end of the period (in shares) at Dec. 29, 2018     84,196        
Balance at end of the period at Dec. 29, 2018 28,971 500 $ 842 268,327 (240,104) 500 (94)
Increase (decrease) in stockholders equity              
Adoption of new accounting standard 28,971 500 $ 842 268,327 (240,104) 500 (94)
Stock-based compensation 52,332     52,332      
Common stock issued under employee benefit plans (in shares)     3,023        
Common stock issued under employee benefit plans 3,561   $ 30 3,531      
Common stock withheld related to net share settlement of stock-based compensation (in shares)     (445)        
Common stock withheld related to net share settlement of stock-based compensation (13,516)   $ (4) (13,512)      
Adoption of new accounting standard 122,005 $ 500 $ 868 310,678 (189,545) $ 500 4
Dividends (375)       (375)    
Other comprehensive income (loss) 98           98
Net income 50,434       50,434    
Balance at end of the period (in shares) at Dec. 28, 2019     86,774        
Balance at end of the period at Dec. 28, 2019 122,005   $ 868 310,678 (189,545)   4
Increase (decrease) in stockholders equity              
Adoption of new accounting standard 122,005   $ 868 310,678 (189,545)   4
Stock-based compensation 9,009     9,009      
Common stock issued under employee benefit plans (in shares)     383        
Common stock issued under employee benefit plans 3,022   $ 4 3,018      
Common stock withheld related to net share settlement of stock-based compensation (in shares)     (29)        
Common stock withheld related to net share settlement of stock-based compensation (1,028)   $ (1) (1,027)      
Adoption of new accounting standard 288,418   $ 871 321,678 (33,744)   (387)
Other comprehensive income (loss) (391)           (391)
Net income 155,801       155,801    
Balance at end of the period (in shares) at Jan. 02, 2021     87,128        
Balance at end of the period at Jan. 02, 2021 288,418   $ 871 321,678 (33,744)   (387)
Increase (decrease) in stockholders equity              
Adoption of new accounting standard $ 288,418   $ 871 $ 321,678 $ (33,744)   $ (387)
v3.20.4
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands
12 Months Ended
Jan. 02, 2021
Dec. 28, 2019
Dec. 29, 2018
Cash Flows from Operating Activities:      
Net income $ 155,801 $ 50,434 $ 57,763
Adjustments to reconcile net income to cash provided by operating activities:      
Depreciation and amortization 30,535 28,959 24,777
Amortization of deferred financing fees 935 2,189 3,425
Stock-based compensation 9,009 52,332 13,247
Deferred income taxes (3,827) 15,615 2,226
Impairment of long-lived assets 1,051 616 2,209
Loss on prepayment, modification, or extinguishment of debt 1,064 643 694
Other (74) 0 0
Changes in operating assets and liabilities:      
Accounts receivable, net 16,353 (19,940) 7,675
Inventory 46,052 (40,541) 29,583
Other current assets 1,982 (6,798) (5,089)
Accounts payable and accrued expenses 89,125 6,614 43,740
Taxes payable 14,943 (3,101) (5,876)
Other 3,478 (129) 1,694
Net cash provided by operating activities 366,427 86,893 176,068
Cash Flows from Investing Activities:      
Purchases of property and equipment (15,566) (32,077) (20,860)
Additions of intangibles, net (7,378) (16,614) (11,027)
Proceeds from sale of long-lived assets 0 0 165
Net cash used in investing activities (22,944) (48,691) (31,722)
Cash Flows from Financing Activities:      
Borrowings under revolving line of credit 50,000 0 0
Repayments under revolving credit facility (50,000) 0 0
Repayments of long‑term debt (165,000) (34,875) (151,788)
Proceeds from employee stock transactions 3,022 3,561 262
Taxes paid in connection with employee stock transactions (1,028) (13,516) (57)
Finance lease principal payment (185) (74) 0
Repayments of Term Loan A in connection with amendment 0 (64,250) 0
Proceeds from borrowings in connection with amendment 0 66,238 0
Payments of deferred financing fees 0 (2,135) 0
Dividends 0 (636) (2,523)
Cash paid for repurchase of common stock 0 0 (1,967)
Proceeds from issuance of common stock, net of offering costs 0 0 38,083
Net cash used in financing activities (163,191) (45,687) (117,990)
Effect of exchange rate changes on cash 476 (51) 45
Net increase (decrease) in cash 180,768 (7,536) 26,401
Cash, beginning of period 72,515 80,051 53,650
Cash, end of period $ 253,283 $ 72,515 $ 80,051
v3.20.4
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
12 Months Ended
Jan. 02, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
Organization and Business
YETI Holdings, Inc. acquired the operations of YETI Coolers, LLC (Coolers) on June 15, 2012. We are headquartered in Austin, Texas, and are a designer, marketer, and distributor of premium products for the outdoor and recreation market which are sold under the YETI brand. We sell our products through our wholesale channel, including independent retailers, national, and regional accounts across a wide variety of end user markets, as well as through our direct-to-consumer (DTC) channel, primarily our e-commerce website. We operate in the U.S., Canada, Australia, New Zealand, Europe, Hong Kong, China, Singapore, and Japan.
The terms we, us, our, and the Company as used herein and unless otherwise stated or indicated by context, refer to YETI Holdings, Inc. and its subsidiaries.
Basis of Presentation and Principles of Consolidation
The consolidated financial statements and accompanying notes are prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) and the rules of the U.S. Securities and Exchange Commission (SEC). The consolidated financial statements include our accounts and those of our wholly-owned subsidiaries. Intercompany balances and transactions are eliminated in consolidation.
Use of Estimates
The preparation of consolidated financial statements in conformity with GAAP requires our management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses during the reporting period and disclosure of contingent assets and liabilities at the date of the consolidated financial statements. Estimates and assumptions about future events and their effects cannot be made with certainty, including the potential impacts and duration of the COVID-19 pandemic. Estimates may change as new events occur, when additional information becomes available and if our operating environment changes. Actual results could differ from our estimates.
Fiscal Year End
We have a 52- to 53-week fiscal year that ends on the Saturday closest in proximity to December 31, such that each quarterly period will be 13 weeks in length, except during a 53-week year when the fourth quarter will be 14 weeks. Fiscal year 2020 was a 53-week period and fiscal years 2019 and 2018 spanned 52 weeks each. The consolidated financial results represent the fiscal years ended January 2, 2021 (2020), December 28, 2019 (2019), and December 29, 2018 (2018).
Accounts Receivable
Accounts receivable are carried at original invoice amount less estimated credit losses. Upon initial recognition of a receivable, we estimate credit losses over the contractual term of the receivable and establish an allowance for credit losses based on historical experience, current available information, and expectations of future economic conditions. We mitigate credit loss risk from accounts receivable by assessing customers for credit worthiness, including ongoing credit evaluations and their payment trends. Credit risk is limited due to ongoing monitoring, high geographic customer distribution, and low concentration of risk. As the risk of loss is determined to be similar based on the credit risk factors, we aggregate receivables on a collective basis when assessing credit losses. Accounts receivable are uncollateralized customer obligations due under normal trade terms typically requiring payment within 30 to 90 days of sale. Receivables are written off when deemed uncollectible. Recoveries of trade receivables previously written off are recorded to income when received. Our allowance for credit losses was $1.3 million as of January 2, 2021 and nominal as of December 28, 2019, respectively.
Advertising
Advertising costs are expensed in the period in which the advertising occurs and included in selling, general and administrative expenses in our consolidated statements of operations. Advertising costs were $42.9 million, $39.0 million, and $27.5 million for 2020, 2019, and 2018, respectively. At January 2, 2021 and December 28, 2019, prepaid advertising costs were $0.9 million and $0.4 million, respectively.
Cash
We maintain our cash in bank deposit accounts which, at times, may exceed federally insured limits. We have not historically experienced any losses in such accounts.
Comprehensive Income
Our comprehensive income is determined based on net income adjusted for gains and losses on foreign currency translation adjustments.
Concentration of Risk
We are exposed to risk due to our concentration of business activity with certain third-party contract manufacturers of our products. For hard coolers, soft coolers, Drinkware, bags, outdoor living and pet products, our two largest manufacturers comprised approximately 88%, 85%, 77%, 83%, and 95%, respectively, of our production volume during 2020. For cargo, two manufacturers accounted for all of the production in 2020.
Deferred Financing Fees
Costs incurred upon the issuance of our debt instruments are capitalized and amortized over the life of the associated debt instrument on a straight-line basis, in a manner that approximates the effective interest method. If the debt instrument is retired before its scheduled maturity date, any remaining issuance costs associated with that debt instrument are expensed in the same period. Deferred financing fees related to our $450.0 million senior secured Credit Facility are reported in Long-term debt, net of current portion as a direct reduction of the carrying amount of our outstanding long-term debt. At January 2, 2021 and December 28, 2019, the amortization of deferred financing fees included in interest expense was $0.9 million and $2.2 million, respectively.
Fair Value of Financial Instruments
For financial assets and liabilities recorded at fair value on a recurring or non-recurring basis, fair value is the price we would receive to sell an asset, or pay to transfer a liability, in an orderly transaction with a market participant at the measurement date. In the absence of such data, fair value is estimated using internal information consistent with what market participants would use in a hypothetical transaction. In determining fair value, observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect our market assumptions; preference is given to observable inputs. These two types of inputs create the following fair value hierarchy:
Level 1:    Quoted prices for identical instruments in active markets.
Level 2:    Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations whose inputs are observable or whose significant value drivers are observable.
Level 3:    Significant inputs to the valuation model are unobservable.
Our financial instruments consist principally of cash, accounts receivable, accounts payable, and bank indebtedness. The carrying amount of cash, accounts receivable, and accounts payable, approximates fair value due to the short-term maturity of these instruments. The carrying amount of our long-term bank indebtedness approximates fair value based on Level 2 inputs since the Credit Facility carries a variable interest rate that is based on the London Interbank Offered Rate (LIBOR).
Foreign Currency Translation and Foreign Currency Transactions
Adjustments resulting from translating foreign functional currency financial statements into U.S. dollars are included in the foreign currency translation adjustment, a component of accumulated other comprehensive income.
For consolidation purposes, the assets and liabilities of our subsidiaries whose functional currency is not the U.S. dollar are translated into U.S. dollars using the exchange rate on the balance sheet date. Revenues and expenses are translated at average rates prevailing during the period. The gains and losses resulting from translation of financial statements of foreign subsidiaries are recorded as a separate component of accumulated other comprehensive income.
Goodwill and Intangible Assets
Goodwill and intangible assets are recorded at cost, or at their estimated fair values at the date of acquisition. We review goodwill and indefinite-lived intangible assets for impairment annually in the fourth quarter of each fiscal year or on an interim basis whenever events or changes in circumstances indicate the fair value of such assets may be below their carrying amount. In conducting our annual impairment test, we first review qualitative factors to determine whether it is more likely than not that the fair value of the asset is less than its carrying amount. If factors indicate that the fair value of the asset is less than its carrying amount, we perform a quantitative assessment of the asset, analyzing the expected present value of future cash flows to quantify the amount of impairment, if any. We perform our annual impairment tests in the fourth quarter of each fiscal year.
For our annual goodwill impairment tests in the fourth quarters of 2020 and 2019, we performed a qualitative assessment to determine whether the fair value of goodwill was more likely than not less than the carrying value. Based on economic conditions and industry and market considerations, we determined that it was more likely than not that the fair value of goodwill was greater than its carrying value; therefore, the quantitative impairment test was not performed. Therefore, we did not record any goodwill impairment for the years 2020 and 2019.
Our intangible assets consist of indefinite-lived intangible assets, including tradename, trademarks, trade dress, and definite-lived intangible assets such as customer relationships, trademarks, patents, and other intangibles assets, such as copyrights and domain name. We also capitalize the costs of acquired trademarks, trade dress, patents and other intangibles, such as copyrights and domain name assets.
In addition, external legal costs incurred in the defense of our patents and trademarks are capitalized when we believe that the future economic benefit of the intangible asset will be increased, and a successful defense is probable. In the event of a successful defense, the settlements received are netted against the external legal costs that were capitalized. Capitalized patent and trademark defense costs are amortized over the remaining useful life of the asset. Where the defense of the patent and trademark maintains rather than increases the expected future economic benefits from the asset, the costs would generally be expensed as incurred. The external legal costs incurred and settlements received may not occur in the same period. Capitalized costs incurred during 2018, 2019, and 2020 primarily relate to external legal costs incurred in the defense of our patents and trademarks, net of settlements received.
Income Taxes
We provide for taxes at the enacted rate applicable for the appropriate tax jurisdictions. Deferred taxes are provided on an asset and liability method, which requires the recognition of deferred tax assets and liabilities for expected future consequences of temporary differences between the financial reporting and income tax bases of assets and liabilities using enacted tax rates. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized.
Tax filing positions are evaluated, and we recognize the largest amount of tax benefit that is more likely than not to be sustained upon examination by the taxing authorities based on the technical merits of the tax position. Settlements with tax authorities, the expiration of statutes of limitations for particular tax positions, or obtaining new information on particular tax positions may cause a change to the effective tax rate. We recognize interest and penalties related to unrecognized tax benefits in the provision for income taxes in the consolidated statements of operations.
Inventories
Inventories are comprised primarily of finished goods and are generally valued at the lower of weighted-average cost or net realizable value. Net realizable value is defined as the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. We make ongoing estimates relating to the net realizable value of inventories based upon our assumptions about future demand and market conditions.
Property and Equipment
We record property and equipment at their original acquisition costs and we depreciate them based on a straight-line method over their estimated useful lives. Expenditures for repairs and maintenance are expensed as incurred, while asset improvements that extend the useful life are capitalized. The useful lives for property and equipment are as follows:
Leasehold improvements
lesser of 10 years, remaining lease term, or estimated useful life of the asset
Molds and tooling
3 - 5 years
Furniture and equipment
3 - 7 years
Computers and software
3 - 7 years
Research and Development Costs
Research and development costs are expensed as incurred. Employee compensation, including non-cash stock-based compensation expense, and miscellaneous supplies are included in research and development costs within selling, general, and administrative expenses. Research and development expenses were $11.2 million, $20.5 million, and $10.8 million, for 2020, 2019, and 2018, respectively. The increase in research and development costs in 2019 relates primarily to one-time non-cash stock-based compensation expense related to pre-IPO performance-based restricted stock units that vested and were fully recognized in the fourth quarter of 2019. See Note 10 for further discussion.

Revenue Recognition
As discussed in the “Recently Adopted Accounting Standards” section below, we adopted the new revenue recognition standard at the beginning of 2019. Revenue transactions associated with the sale of YETI branded coolers, equipment, drinkware, apparel and accessories comprise a single performance obligation, which consists of the sale of products to customers either through wholesale or DTC channels. Revenue is recognized when performance obligations are satisfied through the transfer of control of promised goods to the customers, based on the terms of sale. The transfer of control typically occurs at a point in time based on consideration of when the customer has an obligation to pay for the goods, and physical possession of, legal title to, and the risks and rewards of ownership of the goods has been transferred, and the customer has accepted the goods. Revenue from wholesale transactions is generally recognized at the time products are shipped based on contractual terms with the customer. Revenue from our DTC channel is generally recognized at the point of sale in our retail stores and at the time products are shipped for e-commerce transactions and corporate sales based on contractual terms with the customer.
Revenue is recognized net of estimates of variable consideration, including product returns, customer discounts and allowances, sales incentive programs, and miscellaneous claims from customers. We determine these estimates based on contract terms, evaluations of historical experience, anticipated trends, and other factors. The actual amount of customer returns and customer allowances, which is inherently uncertain, may differ from our estimates.
The duration of contractual arrangements with our customers is typically less than 1 year. Payment terms with wholesale customers vary depending on creditworthiness and other considerations, with the most common being net 30 days. Payment is due at the time of sale for retail store transactions and at the time of shipment for e-commerce transactions.
Certain products that we sell include a limited warranty which does not meet the definition of a performance obligation within the context of the contract. Product warranty costs are estimated based on historical and anticipated trends and are recorded as cost of goods sold at the time revenue is recognized.
Revenue from the sale of gift cards is initially deferred and recognized as a contract liability until the gift card is redeemed by the customer.
We elected to account for shipping and handling as fulfillment activities, and not as separate performance obligations. Shipping and handling fees billed to customers are included in net sales. All shipping and handling activity costs are recognized as selling, general and administrative expenses at the time the related revenue is recognized. Sales taxes collected from customers and remitted directly to government authorities are excluded from net sales and cost of goods sold.
Our terms of sale provide limited return rights. We may accept, and have at times accepted, returns outside our terms of sale at our sole discretion. We may also, at our sole discretion, provide our retail partners with sales discounts and allowances. We record estimated sales returns, discounts, and miscellaneous customer claims as reductions to net sales at the time revenues are recorded. We base our estimates upon historical experience and trends, and upon approval of specific returns or discounts. Actual returns and discounts in any future period are inherently uncertain and thus may differ from our estimates. If actual or expected future returns and discounts were significantly greater or lower than the reserves we had established, we would record a reduction or increase to net sales in the period in which we made such determination.
For periods prior to adoption, revenue was recognized when persuasive evidence of an arrangement existed, and title and risks of ownership had passed to the customer, based on the terms of sale. Goods were usually shipped to customers with free-on-board (“FOB”) shipping point terms; however, our practice was to bear the responsibility of the delivery to the customer. In the case that product was lost or damaged in transit to the customer, we generally took the responsibility to provide new product. In effect, we applied a synthetic FOB destination policy and therefore recognized revenue when the product was delivered to the customer. For our national accounts, delivery of our products typically occurred at shipping point, as such customers took delivery at our distribution center.
Segment Information
We report our operations as a single reportable segment and manage our business as a single-brand consumer products business. This is supported by our operational structure, which includes sales, research, product design, operations, marketing, and administrative functions focused on the entire product suite rather than individual product categories. Our chief operating decision maker does not regularly review financial information for individual product categories, sales channels, or geographic regions that would allow decisions to be made about allocation of resources or performance.
Shipping and Handling Costs

Amounts charged to customers for shipping and handling are included in net sales. Our cost of goods sold includes inbound freight charges for product delivery from our third-party contract manufacturers. The cost of product shipment to our customers, which is included in selling, general and administrative expenses in our consolidated statements of operations, was $62.7 million, $39.9 million, and $30.2 million for 2020, 2019, and 2018, respectively.

Stock-Based Compensation

Stock-based compensation awards granted to employees and directors are measured at fair value and recognized as an expense. Compensation expense equal to the fair value of performance-based awards that are expected to vest is estimated and recorded over the period the grants are earned, which is the vesting period. Compensation expense estimates are updated periodically. The vesting of the performance-based restricted stock units is also contingent upon the attainment of predetermined performance goals. Depending on the estimated probability of attainment of those performance goals, the compensation expense recognized related to the awards could increase or decrease over the remaining vesting period.

We use a Black-Scholes option-pricing model to calculate the fair value of options. This model requires various judgmental assumptions including volatility, forfeiture rates and expected option life. No stock options were granted in 2020.

Costs relating to stock-based compensation are recognized in selling, general, and administrative expenses in our consolidated statements of operations, and forfeitures are recognized as they occur. See Note 10 for further discussion.
Valuation of Long-Lived Assets

We assess the recoverability of our long-lived assets, which include property and equipment, operating lease right-of-use-assets, and definite-lived intangible assets, for impairment whenever events or changes in circumstances indicate the carrying amount of such assets may not be recoverable. An impairment loss on our long-lived assets exists when the estimated undiscounted cash flows expected to result from the use of the asset and its eventual disposition are less than its carrying amount. If the carrying amount exceeds the sum of the undiscounted cash flows, an impairment charge is recognized based on the amount by which the carrying amount of the assets exceeds the estimated fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount or estimated fair value less costs to sell. 
Warranty
Warranty liabilities are recorded at the time of sale for the estimated costs that may be incurred under the terms of our limited warranty. We make and revise these estimates primarily based on the number of units under warranty, historical experience of warranty claims, and an estimated per unit replacement cost. The liability for warranties is included in accrued expenses in our consolidated balance sheets. The specific warranty terms and conditions vary depending upon the product sold, but are generally warranted against defects in material and workmanship ranging from three to five years. Our warranty only applies to the original owner. If actual product failure rates or repair costs differ from estimates, revisions to the estimated warranty liabilities would be required and could materially affect our financial condition and operating results. Warranty reserves were $8.9 million and $6.6 million as of January 2, 2021 and December 28, 2019, respectively. Warranty costs included in costs of goods sold were $5.1 million, $3.8 million, and $3.6 million for 2020, 2019, and 2018, respectively.
Recently Adopted Accounting Pronouncements
In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Codification (“ASC”) 842, Leases (“ASC 842”), to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. We adopted ASC 842 effective December 30, 2018, the first day of fiscal year 2019 using the modified retrospective transition method. We applied the transition provision for ASC 842 at our adoption date instead of at the earliest comparative period presented in our financial statements and, therefore, we recognized and measured leases existing at December 30, 2018, but without retrospective application.
The impact of the adoption of ASC 842 on previously reported interim financial statements included the recognition of right-of-use (“ROU”) assets and lease liabilities for operating leases. The adoption of ASC 842 had no impact to previously reported results of operations for any interim period. See Note 5 for further discussion.

In the first quarter of 2019, we adopted ASC Topic 606, Revenue from Contracts with Customers (“ASC 606”), using the modified retrospective transition method and applying this approach to contracts not completed as of the date of adoption. This ASC requires companies to recognize revenue in a way that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASC 606 also requires certain disclosures regarding qualitative and quantitative information with respect to the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. Comparative prior period information has not been restated and continues to be reported in accordance with accounting standards in effect for those periods. See Note 2 for additional revenue disclosures.
Under ASC 606, an asset for the estimated cost of inventory expected to be returned is now recognized separately from the liability for sales-related reserves. This resulted in an increase in prepaid expenses and other current assets and an increase in accrued expenses and other current liabilities on our consolidated balance sheets as of December 28, 2019.
The adoption of ASC 606 impacted the timing of revenue recognized related to sales for certain wholesale transactions and substantially all e-commerce transactions, resulting in earlier recognition of such sales, which were not material. Additionally, miscellaneous claims from customers are now recognized in net sales. Previously, these costs were recorded in selling, general and administrative expenses.
In June 2016, the FASB issued Accounting Standards Update (“ASU”) 2016-13, Measurement of Credit Losses on Financial Instruments, and also subsequently issued amendments to the initial guidance, in ASU 2018-19, ASU 2019-04, ASU 2019-05, ASU 2020-02. ASU 2016-13 replaces the current incurred loss impairment method with a method that reflects expected credit losses on financial instruments. In November 2018, the FASB issued update ASU 2018-19, clarifying the scope of ASU 2016-13. In April 2019, the FASB issued updated ASU 2019-04, clarifying that equity instruments without readily determinable fair values for which an entity has elected the measurement alternative should be remeasured to fair value as of the date that an observable transaction occurred. In May 2019, the FASB issued ASU 2019-05, which provides an option to irrevocably elect to measure certain individual financial assets at fair value instead of amortized cost. ASU 2020-02 provides updated guidance on how an entity should measure credit losses on financial instruments. We adopted this standard in the first quarter of fiscal year 2020. The adoption of this standard did not have a material impact on our consolidated financial statements and related disclosures.
In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. This ASU removes Step 2 from the goodwill impairment test. The standard will be effective for us in the first quarter of our fiscal year 2020, although early adoption is permitted. The adoption of this ASU did not have a material impact on our consolidated financial statements and related disclosures.
In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820). This ASU eliminates, adds and modifies certain disclosure requirements for fair value measurements. Among the changes, entities will no longer be required to disclose the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy but will be required to disclose the range and weighted average used to develop significant unobservable inputs for Level 3 fair value measurements. We adopted this standard in the first quarter of fiscal year 2020. The adoption of this standard did not have a material impact on our consolidated financial statements and related disclosures.
In August 2018, the FASB issued ASU 2018-15, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350) (“ASU 2018-15”). The objective of ASU 2018-15 is to align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with those incurred to develop or obtain internal-use software. The amendments can be applied either retrospectively or prospectively. We adopted this standard in the first quarter of fiscal year 2020. The adoption of this standard did not have a material impact on our consolidated financial statements and related disclosures.
Recent Accounting Guidance Not Yet Adopted
v3.20.4
REVENUE
12 Months Ended
Jan. 02, 2021
Revenue from Contract with Customer [Abstract]  
REVENUE REVENUE
Contract Balances
Accounts receivable represent an unconditional right to receive consideration from a customer and are recorded at net invoiced amounts, less an estimated allowance for doubtful accounts.
Contract liabilities are recorded when the customer pays consideration before the transfer of a good to the customer and thus represent our obligation to transfer the good to the customer at a future date. Our primary contract liabilities relate to payment advances for certain customized product transactions and gift cards. We recognize contract liabilities as revenue once all performance obligations have been satisfied.
The following table provides information about accounts receivable and contract liabilities at the periods indicated (in thousands):
January 2, 2021December 28, 2019
Accounts receivable, net$65,417 $82,688 
Contract liabilities(11,074)(4,499)

During the year ended January 2, 2021, we recognized $4.2 million of revenue that was previously included in the contract liability balance at the beginning of the period. The change in the contract liability balance primarily results from timing differences between the customer’s payment and our satisfaction of performance obligations.
Disaggregation of Revenue
The following table disaggregates our net sales by channel, product category, and geography for the periods indicated (in thousands):
20202019
2018(1)
Net Sales by Channel:
Wholesale$510,861 $527,634 $491,431 
Direct-to-consumer580,860 386,100 287,402 
Total net sales$1,091,721 $913,734 $778,833 
Net Sales by Category:
Coolers & Equipment$446,585 $368,874 $331,224 
Drinkware628,566 526,241 424,164 
Other16,570 18,619 23,445 
Total net sales$1,091,721 $913,734 $778,833 
Net Sales by Geographic Region:
United States$1,025,393 $873,867 $761,880 
International66,328 39,867 16,953 
Total net sales$1,091,721 $913,734 $778,833 
_________________________________________
(1)Prior year information is presented in accordance with accounting guidance in effect during that period and has not been updated to reflect the impact of ASC 606. See Note 1 for additional information.

For 2019, and 2018, our largest single customer represented approximately 15%, and 16% of gross sales, respectively. In 2020, 2019, and 2018 Amazon Marketplace accounted for 14%, 13%, and 10% of gross sales, respectively. No other customer accounted for more than 10% of gross sales in 2020, 2019 or 2018.
v3.20.4
PREPAID EXPENSES AND OTHER CURRENT ASSETS
12 Months Ended
Jan. 02, 2021
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]  
PREPAID EXPENSES AND OTHER CURRENT ASSETS PREPAID EXPENSES AND OTHER CURRENT ASSETS
Prepaid expenses and other current assets include the following (in thousands):
January 2,
2021
December 28,
2019
Prepaid expenses$12,174 $15,052 
Prepaid taxes433 1,374 
Other5,079 3,218 
Total prepaid expenses and other current assets$17,686 $19,644 
v3.20.4
PROPERTY AND EQUIPMENT
12 Months Ended
Jan. 02, 2021
Property, Plant and Equipment [Abstract]  
PROPERTY AND EQUIPMENT PROPERTY AND EQUIPMENT
Property and equipment consisted of the following at the dates indicated (in thousands):
January 2,
2021
December 28,
2019
Production molds, tooling, and equipment
$60,331 $56,375 
Furniture, fixtures, and equipment
8,204 7,721 
Computers and software
63,343 52,930 
Leasehold improvements
37,933 35,419 
Finance leases1,208 1,208 
Property and equipment, gross171,019 153,653 
Accumulated depreciation
(92,944)(71,043)
Property and equipment, net$78,075 $82,610 

Depreciation expense was $24.6 million, $23.2 million, and $19.5 million for 2020, 2019, and 2018, respectively.

Geographic Information

Property and equipment, net by geographical region was as follows as of the dates indicated (in thousands):

 
January 2,
2021
December 28,
2019
United States
$65,509 $70,672 
International
12,566 11,938 
Property and equipment, net$78,075 $82,610 
v3.20.4
LEASES
12 Months Ended
Jan. 02, 2021
Leases [Abstract]  
LEASES LEASES
We determine if an arrangement is or contains a lease at contract inception and determines its classification as an operating or finance lease at lease commencement. We lease certain retail locations, office space, distribution facilities, manufacturing space, and machinery and equipment. While the substantial majority of these leases are operating leases, certain machinery and equipment agreements are finance leases. As of January 2, 2021, the initial lease terms of the various leases range from one to 20 years. ROU lease assets and liabilities associated with leases with an initial term of twelve months or less are not recorded on the balance sheet.
Operating lease assets represent the right to use an underlying asset for the lease term, and operating lease liabilities represent the obligation to make lease payments arising from the lease. These assets and liabilities are recognized based on the present value of future payments over the lease term at commencement date. We use our collateralized incremental borrowing rate based on the information available at commencement date, including lease term, in determining the present value of future payments. Our operating leases also typically require payment of real estate taxes, common area maintenance and insurance. These components comprise the majority of our variable lease cost and are excluded from the present value of our lease obligations. In instances where they are fixed, they are included due to our election to combine lease and non-lease components, with the exception of our distribution facility asset class. Operating lease assets include prepaid lease payments and initial direct costs and are reduced by lease incentives. Our lease terms generally do not include options to extend or terminate the lease unless it is reasonably certain that the option will be exercised. Fixed payments may contain predetermined fixed rent escalations. We recognize the related rent expense on a straight-line basis from the commencement date to the end of the lease term.
The following table presents the assets and liabilities related to operating and finance leases (in thousands):

Balance Sheet Location
January 2, 2021
Assets:
Operating lease assetsOperating lease right-of-use assets$34,090 
Finance lease assetsProperty, plant and equipment909 
Total lease assets$34,999 
Liabilities:
Current
Operating lease liabilitiesOperating lease liabilities$8,247 
Finance lease liabilitiesCurrent maturities of long-term debt197 
Non-current
Operating lease liabilitiesOperating lease liabilities, non-current36,546 
Finance lease liabilitiesLong-term debt, net of current portion753 
Total lease liabilities$45,743 

The following table presents the components of lease costs (in thousands):
Fiscal Year Ended
January 2, 2021
Operating lease costs$9,599 
Finance lease cost - amortization of right-of-use assets211 
Finance lease cost - interest on lease liabilities64 
Short-term lease cost185 
Variable lease cost3,349 
Sublease income(757)
Total lease cost$12,651 

The following table presents lease terms and discount rates:

January 2, 2021
Weighted average remaining lease term:
Operating leases6.15 years
Finance leases3.66 years
Weighted average discount rate:
Operating leases6.42 %
Finance leases6.24 %
Minimum lease payments have not been reduced by minimum sublease rentals of $3.2 million due in the future under non-cancelable subleases. We received $0.8 million, $0.7 million, and $0.4 million in sublease income for 2020, 2019, and 2018, respectively. The following table presents the minimum lease payment obligations of operating and finance lease liabilities (leases with terms in excess of one year) for the next five years and thereafter as of January 2, 2021 (in thousands):

Operating LeasesFinance LeasesTotal
2021$10,852 $249 $11,101 
20227,752 249 8,001 
20238,044 249 8,293 
20247,759 330 8,089 
20257,035 — 7,035 
Thereafter13,268 — 13,268 
Total lease payments54,710 1,077 55,787 
Less: Effect of discounting to net present value9,917 127 10,044 
Present value of lease liabilities$44,793 $950 $45,743 

The following table presents supplemental cash flow information related to our leases (in thousands):

January 2, 2021
Cash paid for amounts included in measurement of liabilities:
Operating cash flows used in operating leases$11,097 
Operating cash flows used in finance leases64 
Financing cash flows used in finance leases185 
Right-of-use assets obtained in exchange for new lease liabilities:
Operating leases2,831 
LEASES LEASES
We determine if an arrangement is or contains a lease at contract inception and determines its classification as an operating or finance lease at lease commencement. We lease certain retail locations, office space, distribution facilities, manufacturing space, and machinery and equipment. While the substantial majority of these leases are operating leases, certain machinery and equipment agreements are finance leases. As of January 2, 2021, the initial lease terms of the various leases range from one to 20 years. ROU lease assets and liabilities associated with leases with an initial term of twelve months or less are not recorded on the balance sheet.
Operating lease assets represent the right to use an underlying asset for the lease term, and operating lease liabilities represent the obligation to make lease payments arising from the lease. These assets and liabilities are recognized based on the present value of future payments over the lease term at commencement date. We use our collateralized incremental borrowing rate based on the information available at commencement date, including lease term, in determining the present value of future payments. Our operating leases also typically require payment of real estate taxes, common area maintenance and insurance. These components comprise the majority of our variable lease cost and are excluded from the present value of our lease obligations. In instances where they are fixed, they are included due to our election to combine lease and non-lease components, with the exception of our distribution facility asset class. Operating lease assets include prepaid lease payments and initial direct costs and are reduced by lease incentives. Our lease terms generally do not include options to extend or terminate the lease unless it is reasonably certain that the option will be exercised. Fixed payments may contain predetermined fixed rent escalations. We recognize the related rent expense on a straight-line basis from the commencement date to the end of the lease term.
The following table presents the assets and liabilities related to operating and finance leases (in thousands):

Balance Sheet Location
January 2, 2021
Assets:
Operating lease assetsOperating lease right-of-use assets$34,090 
Finance lease assetsProperty, plant and equipment909 
Total lease assets$34,999 
Liabilities:
Current
Operating lease liabilitiesOperating lease liabilities$8,247 
Finance lease liabilitiesCurrent maturities of long-term debt197 
Non-current
Operating lease liabilitiesOperating lease liabilities, non-current36,546 
Finance lease liabilitiesLong-term debt, net of current portion753 
Total lease liabilities$45,743 

The following table presents the components of lease costs (in thousands):
Fiscal Year Ended
January 2, 2021
Operating lease costs$9,599 
Finance lease cost - amortization of right-of-use assets211 
Finance lease cost - interest on lease liabilities64 
Short-term lease cost185 
Variable lease cost3,349 
Sublease income(757)
Total lease cost$12,651 

The following table presents lease terms and discount rates:

January 2, 2021
Weighted average remaining lease term:
Operating leases6.15 years
Finance leases3.66 years
Weighted average discount rate:
Operating leases6.42 %
Finance leases6.24 %
Minimum lease payments have not been reduced by minimum sublease rentals of $3.2 million due in the future under non-cancelable subleases. We received $0.8 million, $0.7 million, and $0.4 million in sublease income for 2020, 2019, and 2018, respectively. The following table presents the minimum lease payment obligations of operating and finance lease liabilities (leases with terms in excess of one year) for the next five years and thereafter as of January 2, 2021 (in thousands):

Operating LeasesFinance LeasesTotal
2021$10,852 $249 $11,101 
20227,752 249 8,001 
20238,044 249 8,293 
20247,759 330 8,089 
20257,035 — 7,035 
Thereafter13,268 — 13,268 
Total lease payments54,710 1,077 55,787 
Less: Effect of discounting to net present value9,917 127 10,044 
Present value of lease liabilities$44,793 $950 $45,743 

The following table presents supplemental cash flow information related to our leases (in thousands):

January 2, 2021
Cash paid for amounts included in measurement of liabilities:
Operating cash flows used in operating leases$11,097 
Operating cash flows used in finance leases64 
Financing cash flows used in finance leases185 
Right-of-use assets obtained in exchange for new lease liabilities:
Operating leases2,831 
v3.20.4
INTANGIBLE ASSETS
12 Months Ended
Jan. 02, 2021
Goodwill and Intangible Assets Disclosure [Abstract]  
INTANGIBLE ASSETS INTANGIBLE ASSETS
Intangible assets consisted of the following at the dates indicated below (dollars in thousands): 

January 2, 2021
Useful Life
Gross Carrying Amount
Accumulated Amortization
Net Carrying Amount
Tradename
Indefinite
$31,363 $— $31,363 
Trade dress
Indefinite
14,197 — 14,197 
Trademarks
Indefinite
13,514 — 13,514 
Customer relationships
11 years42,205 (32,783)9,422 
Trademarks
6 - 30 years
19,514 (5,982)13,532 
Patents
4 - 25 years
10,369 (1,072)9,297 
Other intangibles
15 years1,045 (292)753 
Total intangible assets
$132,207 $(40,129)$92,078 

December 28, 2019
Useful Life
Gross Carrying Amount
Accumulated
Amortization
Net Carrying Amount
TradenameIndefinite$31,363 $— $31,363 
Trade dressIndefinite13,917 — 13,917 
TrademarksIndefinite9,245 — 9,245 
Customer relationships11 years42,205 (28,947)13,258 
Trademarks(1)
6 - 30 years
19,872 (4,307)15,565 
Patents
4 - 25 years
7,407 (719)6,688 
Non-compete agreements5 years2,815 (2,815)— 
Other intangibles15 years1,041 (227)814 
Total intangible assets$127,865 $(37,015)$90,850 
_________________________________________
(1)Includes the acquisition of $9.1 million in trademarks during 2019, as discussed below.
Amortization expense was $5.9 million, $5.8 million, and $5.3 million, for 2020, 2019, and 2018, respectively. Amortization expense related to intangible assets is expected to be $4.9 million for 2021 and 2022, $4.8 million for 2023, $3.4 million for 2024, and $2.1 million for 2025.

Intellectual Property Acquisition
In March 2019, we acquired the intellectual property rights related to the YETI brand across several jurisdictions, primarily in Europe and Asia, for approximately $9.1 million, pursuant to certain purchase agreements we entered into with a European outdoor retailer. The intellectual property rights include trademark registrations and applications for YETI formative trademarks for goods and services, as well as domain names that include the YETI trademark. The purchase price has been allocated to trademarks.
v3.20.4
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES
12 Months Ended
Jan. 02, 2021
Payables and Accruals [Abstract]  
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES
Accrued expenses and other current liabilities consisted of the following at the dates indicated (in thousands):
January 2,
2021
December 28,
2019
Accrued freight and distribution costs$22,047 $12,454 
Contract liabilities11,074 4,499 
Customer discounts, allowances, and returns10,920 6,976 
Advertising and marketing12,675 3,300 
Warranty reserve8,936 6,584 
Accrued capital expenditures4,96748 
Interest payable89 420 
Other18,360 7,807 
Total accrued expenses and other current liabilities$89,068 $42,088 
v3.20.4
LONG-TERM DEBT
12 Months Ended
Jan. 02, 2021
Debt Disclosure [Abstract]  
LONG-TERM DEBT LONG-TERM DEBT
Long-term debt consisted of the following at the dates indicated (in thousands):
January 2,
2021
December 28,
2019
Term Loan A, due 2024$135,000 $300,000 
Finance lease debt950 1,135 
Total debt135,950 301,135 
Current maturities of long-term debt(22,500)(15,000)
Current maturities of finance lease debt(197)(185)
Total long-term debt113,253 285,950 
Unamortized deferred financing fees(2,236)(4,235)
Total long-term debt, net$111,017 $281,715 

At January 2, 2021, the future maturities of principal amounts of our debt obligations, excluding finance lease obligations, for the next four years and in total (see Note 5 for future maturities of finance lease obligations), consisted of the following (in thousands):

Amount
202122,500 
202222,500 
202322,500 
202467,500 
Total$135,000 

Credit Facility

In May 2016, we entered into senior secured credit agreement that provided for: (a) a $100.0 million Revolving Credit Facility maturing on May 19, 2021 (“Revolving Credit Facility”); (b) a $445.0 million term loan A maturing on May 19, 2021 (“Term Loan A”); and (c) a $105.0 million term loan B maturing on May 19, 2022 (“Term Loan B”) (together with the amendments described below, the “Credit Facility”). Borrowings made under the Credit Facility bear interest at a variable rate based on the LIBOR plus an applicable margin. The applicable margin for LIBOR rate borrowings is determined by reference to a pricing grid, based on the ratio of our net leverage ratio, and ranges from 1.75% to 2.75%. Additionally, a commitment fee of between 0.175% and 0.375% also determined by reference to the pricing grid, is payable on the average daily unused amounts under the Revolving Credit Facility.
On July 15, 2017, we amended the Credit Facility to reset the net leverage ratio covenant for the period ending June 2017 and thereafter, and we incurred $2.0 million in additional deferred financing fees.

On December 17, 2019, we further amended our Credit Facility which increased the remaining principal amount of Term Loan A from approximately $298.0 million to $300.0 million; increased the commitments under the revolving credit facility from $100.0 million to $150.0 million; extended the maturity date of both Term Loan A and the revolving credit facility from May 19, 2021 to December 17, 2024; revised the leverage ratios and reduced the interest rates spreads and commitment fee payable on the average daily unused amount of the revolving commitment; and revised the scheduled quarterly principal payments of Term Loan A to 1.25% of the remaining aggregate principal amount of Term Loan A for the first year, and 1.875% for the second year and thereafter until the maturity date. As a result of the amendment, we recognized a $0.6 million loss on modification and extinguishment of debt and we capitalized $2.1 million of new lender and third-party fees in the fourth quarter of 2019.

In March 2020, we drew down $50.0 million from our $150.0 million Revolving Credit Facility. This action was a precautionary measure to enhance our liquidity position and to increase available cash on hand in response to the COVID-19 pandemic. During the second quarter of 2020, we repaid in full the $50.0 million borrowed under the Revolving Credit Facility. The weighted average interest rate was 2.92% for borrowings under the Revolving Credit Facility. As of January 2, 2021, we had no borrowings outstanding under our Revolving Credit Facility.

The Credit Facility also provides us with the ability to issue up to $20.0 million in letters of credit. While our issuance of letters of credit does not increase our borrowings outstanding under our Revolving Credit Facility, it does reduce the amount available. As of January 2, 2021, we had no outstanding letters of credit.
The weighted average interest rate on borrowings outstanding under the Term Loan A at January 2, 2021 and December 28, 2019 was 2.72% and 6.05%, respectively.
The Credit Facility includes customary financial and non-financial covenants limiting, among other things, mergers and acquisitions; investments, loans, and advances; affiliate transactions; changes to capital structure and the business; additional indebtedness; additional liens; the payment of dividends; and the sale of assets, in each case, subject to certain customary exceptions. The Credit Facility contains customary events of default, including payment defaults, breaches of representations and warranties, covenant defaults, defaults under other material debt, events of bankruptcy and insolvency, failure of any guaranty or security document supporting the Credit Facility to be in full force and effect, and a change of control of our business. At January 2, 2021, we were in compliance with the covenants under our Credit Facility.
Term Loan A

The Term Loan A is a $300.0 million term loan facility, maturing on December 17, 2024. Principal payments of $3.8 million were due quarterly during 2020 and $5.6 million are due quarterly during 2021 to 2024 with the entire unpaid balance due at maturity. In 2020, we made $150.0 million in voluntary payments on our Term Loan A from excess cash on hand, and as a result we recorded a $1.1 million loss on prepayments of debt.

Extinguishment of Term Loan B

During the fourth quarter of 2018, we voluntarily repaid in full the $47.6 million principal amount and $0.6 million of accrued interest outstanding under our Term Loan B, using the net proceeds from our IPO plus additional cash on hand. As a result of the voluntary repayment of the Term Loan B prior to maturity of December 17, 2024, we recorded a loss from extinguishment of debt of $0.7 million relating to the write-off of unamortized financing fees associated with the Term Loan B.

Extinguishment of Rambler On LLC Promissory Note

In May 2019, we repaid in full $1.5 million of remaining principal on the unsecured promissory note to Rambler On LLC and $0.1 million of accrued interest outstanding thereon, using cash on hand. See Note 12 for additional information.
v3.20.4
BENEFIT PLAN
12 Months Ended
Jan. 02, 2021
Defined Contribution Plan [Abstract]  
BENEFIT PLAN BENEFIT PLANWe provide a 401(k)-defined contribution plan covering substantially all our employees, which allows for employee contributions and provides for an employer match. Our contributions totaled approximately $1.1 million, $1.1 million, and $1.0 million for 2020, 2019, and 2018, respectively.
v3.20.4
STOCK-BASED COMPENSATION
12 Months Ended
Jan. 02, 2021
Share-based Payment Arrangement [Abstract]  
STOCK-BASED COMPENSATION STOCK-BASED COMPENSATION
In October 2018, the Board adopted the 2018 Plan and ceased granting awards under the YETI Holdings, Inc. 2012 Equity and Performance Incentive Plan, as amended and restated on June 20, 2018 (the “2012 Plan”). The 2018 Plan became effective with the completion of our IPO. Any remaining shares available for issuance under the 2012 Plan as of our IPO effectiveness date are not available for future issuance. However, shares subject to stock awards granted under the 2012 Plan (a) that expire or terminate without being exercised or (b) that are forfeited under an award return to the 2018 Plan.

Subject to adjustments as described above, the 2018 Plan provides for up to 4.8 million shares of authorized stock to be awarded as stock options, appreciation rights, restricted stock (“RSAs”), restricted stock units (“RSUs”), performance shares, performance units, cash incentive awards, and certain other awards based on or related to shares of our common stock. The 2012 Plan provided for up to 8.8 million shares of authorized stock to be awarded as either stock options or RSUs.

Stock options, RSUs, and RSAs granted generally have a three-year vesting period and vest one-third on the first anniversary of the grant date, and an additional one-sixth vest on each of the first four six-month anniversaries of the initial vesting date. Stock options have a ten year term. Performance-based restricted stock awards (“PBRSs”) vest three years from the grant date, subject to the attainment of certain predetermined performance goals and the grantee remaining employed during the vesting period. Depending on the estimated probability of attainment of those performance goals, the compensation expense recognized related to the awards could increase or decrease over the remaining vesting period. Deferred stock units (“DSUs”) are issued to non-employee directors in lieu of RSU or certain cash compensation at the election of the grantee. DSUs generally vest one year from the grant date.

We recognized non-cash stock-based compensation expense of $9.0 million, $52.3 million, and $13.2 million for 2020, 2019, and 2018, respectively. As of January 2, 2021, total unrecognized stock-based compensation expense of $17.0 million for all stock-based compensation plans is expected to be recognized over a weighted-average period of 1.7 years.

Stock Options Fair Value

The exercise price of options granted under the 2012 Plan and 2018 Plan is equal to the estimated fair market value of our common stock at the date of grant. Before our IPO in October 2018, we estimated the fair value of our common stock based on the appraisals performed by an independent valuation specialist. Subsequent to our IPO, we began using the market closing price for our common stock as reported on the New York Stock Exchange.

We estimate the fair value of stock options on the date of grant using a Black-Scholes option-pricing valuation model, which uses the expected option term, stock price volatility, and the risk-free interest rate. The expected option term assumption reflects the period for which we believe the option will remain outstanding. We elected to use the simplified method to determine the expected option term, which is the average of the option’s vesting and contractual term. Our computation of expected volatility is based on the historical volatility of selected comparable publicly-traded companies over a period equal to the expected term of the option. The risk-free interest rate reflects the U.S. Treasury yield curve for a similar instrument with the same expected term in effect at the time of the grant.
The following assumptions were utilized to calculate the fair value of stock options granted during the periods indicated below:

20192018
Expected option term6 years6 years
Expected stock price volatility
27% - 35%
35%
Risk-free interest rate
1.64% - 2.53%
2.99
Expected dividend yield–%–%
Weighted average fair value at date of grant$7.67$7.22

No stock options were granted in 2020.

A summary of the stock options is as follows for the periods indicated (in thousands, except per share data):

Number of
Options
Weighted
Average Exercise
Price
Weighted
Average
Remaining
Contractual
Term (Years)
Aggregate
Intrinsic
Value
Balance, December 30, 20172,884 $5.22 6.10
Granted761 18.00 
Exercised(560)0.47 
Forfeited/cancelled(172)47.91 
Expired(24)53.55 
Balance, December 29, 20182,889 $6.56 6.48
Granted601 23.59 
Exercised(1,730)2.06 
Forfeited/cancelled(142)20.88 
Balance, December 28, 20191,618 $16.44 8.12
Exercised(247)12.23 
Forfeited/cancelled(117)21.56 
Balance, January 2, 20211,254 $16.79 7.22$64,781 
Exercisable, January 2, 2021715 $14.07 6.66$38,917 

The total intrinsic value of stock options exercised was $6.7 million, $46.7 million, and $10.0 million for 2020, 2019, and 2018, respectively. The total grant date fair value of stock options vested was $2.9 million, $12.2 million, and $15.2 million for 2020, 2019, and 2018, respectively.

The following is a summary of our non-vested stock options for the periods indicated (in thousands, except per share data):

 
Shares Under
Outstanding
Options
Weighted
Average Grant
Date Fair Value
Non-vested options at December 28, 20191,044 $7.47 
Granted— — 
Forfeited(117)7.81
Vested(388)7.41
Non-vested options at January 2, 2021539 $7.44 
Stock-based activity, excluding options, for the year ended January 2, 2020 is summarized below (in thousands, except per share data):
Performance-Based Restricted Stock AwardsRestricted Stock Units, Restricted Stock Awards, and Deferred Stock Units
Number of PBRSs
Weighted Average Grant Date Fair Value
Number of RSUs, RSAs, and DSUs
Weighted Average Grant Date Fair Value
Nonvested, December 28, 2019— $— 319 $23.61 
Granted166 32.84 404 33.88 
Vested/released— — (136)23.62 
Forfeited/expired(20)32.84 (114)29.34 
Nonvested, January 2, 2021146 $32.84 473 $30.99 

As of January 2, 2021, the weighted average remaining contractual term of PBRSs was 2.12 years and the aggregate intrinsic value of PBRSs expected to vest was $5.2 million. The weighted average remaining contractual term of RSUs, RSAs, and DSUs was 1.74 years and the aggregate intrinsic value of RSUs, RSAs, and DSUs was $17.7 million as of January 2. 2021.

The following table summarizes additional information about PBRSs, RSUs, RSAs, and DSUs (in thousands, except per share data):
Fiscal Year Ended (1)
January 2,
2021
December 28,
2019
December 29,
2018
Weighted average grant date fair value per share of awards granted$33.58 $23.72 $17.00 
Total grant date fair value of awards vested(2)
$3,215 $168 
Intrinsic value of awards vested(2)
$5,271 $345 
_________________________________________
(1)Excludes performance-based RSUs activity. See below for further discussion.
(2)Excludes approximately 10,500 and 13,000 DSUs that vested but were not released in 2020 and 2019, respectively.

Performance-Based Restricted Stock Units

During 2018, our Board of Directors approved the grant of performance-based RSUs (“PRSUs”) to various employees under the 2012 Plan. During 2018, 385,241 of those PRSUs were granted as replacement awards in exchange for 104,411 out-of-the-money stock options, which were cancelled. On November 12, 2019, we completed an underwritten secondary offering. Following the closing of this offering, Cortec Group Fund V, L.P. and its affiliates (collectively, “Cortec”), our largest stockholder at the time, ceased to own more than 35% of the voting power of our outstanding common stock and as a result, the PRSUs granted to various employees during 2018 fully vested pursuant to their terms. In connection with the vesting of the PRSUs, we recognized non-cash stock-based compensation expense of $40.7 million for 2019. The grant date fair value of PRSUs was $31.74 per unit, and the intrinsic value of PRSUs that vested was $38.1 million.
v3.20.4
STOCKHOLDERS' EQUITY
12 Months Ended
Jan. 02, 2021
Equity [Abstract]  
STOCKHOLDERS' EQUITY STOCKHOLDERS’ EQUITY
Stockholders’ Equity

Repurchase of Common Stock

In March 2018, we purchased 0.4 million shares of our common stock at $4.95 per share from one of our stockholders for $2.0 million. We accounted for this purchase using the par value method, and subsequently retired these shares.
Stock-Splits

In October 2018, we effected a 0.397-for-1 reverse stock split of all outstanding shares of our common stock. Share and per share data disclosed for all periods has been retroactively adjusted to reflect the effects of this stock-split. This stock-split was effected prior to the completion of our IPO, discussed below.

Capital Stock Increase

In October 2018, the Board of Directors approved an increase in our authorized capital stock of 200.0 million shares of common stock and 30.0 million shares of preferred stock. Following this increase our authorized capital stock of 630.0 million shares consisted of 600.0 million shares of common stock and 30.0 million shares of preferred stock. No shares were issued in connection with the increase in authorized capital stock. This capital stock increase occurred prior to the completion of our IPO, discussed below.

Initial Public Offering

On October 29, 2018, we completed our IPO of 16.0 million shares of our common stock, including 2.5 million shares of our common stock sold by us and 13.5 million shares of our common stock sold by selling stockholders. The underwriters were also granted an option to purchase up to an additional 2.4 million shares from the selling stockholders, at the public offering price, less the underwriting discount, for 30 days after October 24, 2018, which the underwriters exercised, in part, on November 28, 2018 by purchasing an additional 0.9 million shares of common stock at the public offering price of $18.00 per share, less the underwriting discount, from selling stockholders. We did not receive any proceeds from the sale of shares by selling stockholders. Based on our IPO price of $18.00 per share, we received net proceeds of $42.4 million after deducting underwriting discounts and commissions of $2.6 million. Additionally, we incurred offering costs of $4.6 million. On November 29, 2018, we used the proceeds plus additional cash on hand to repay our Term Loan B as described in Note 8.

Special Dividend

On May 17, 2016, we declared and paid a cash dividend of $5.54 per common share, as a partial return of capital to our stockholders, which totaled $451.3 million (Special Dividend). In connection with the Special Dividend, pursuant to anti-dilution provisions in the 2012 Equity and Performance Incentive Plan (2012 Plan), the option strike price on outstanding options as of May 17, 2016, was reduced by the lesser of 70% of the original strike price and the per share amount of the Special Dividend. Any difference between the reduction in strike price and the per share amount of the Special Dividend was paid in cash immediately for vested options. For holders of unvested options as of May 17, 2016, we were required to pay a $7.9 million dividend which accrues over the requisite service period as the options vest (Options Dividend).

We paid $0.6 million and $2.5 million related to the Options Dividend to vested option holders in 2019 and 2018, respectively. The Options Dividend was paid in full on September 28, 2019.
v3.20.4
RELATED PARTY AGREEMENTS
12 Months Ended
Jan. 02, 2021
Related Party Transactions [Abstract]  
RELATED PARTY AGREEMENTS RELATED-PARTY AGREEMENTS
In 2012, we entered into a management services agreement with Cortec, our majority stockholder, that provides for a management fee to be based on 1.0% of total sales not to exceed $750,000 annually plus certain out-of-pocket expenses. During 2018, we incurred fees and out-of-pocket expenses under this agreement of $0.08 million which were included in selling, general and administrative expenses within our consolidated statements of operations. This agreement was terminated in connection with our IPO in 2018 and no further payments are due to Cortec.

We lease warehouse and office facilities under various operating leases. One warehouse facility is leased from an entity owned by our founders, brothers Roy and Ryan Seiders. The warehouse facility lease, which is month-to-month and can be cancelled upon 30 days’ written notice, requires monthly payments of $8,700 and is included in selling, general and administrative expenses within our consolidated statements of operations.
In April 2016, we entered into an agreement with a minority stockholder (less than 1%), to provide strategic and financial advisory services for a fee of $3.0 million. The term of the agreement was fifteen months and the fee was due upon the consummation of a merger, sale, IPO, or other transaction. In 2016, we accrued the full amount payable under the agreement of $3.0 million in accrued liabilities, and subsequently reversed the full amount in August 2017 when the agreement term ended. No amounts were paid in 2016 or 2017. In July 2018, we entered into an agreement with the same minority stockholder, to provide strategic and financial advisory services for a fee of $2.0 million. The term of the agreement was the earlier of twelve months of the date of an IPO or similar sale of equity. Following our IPO, we paid the minority stockholder $2.0 million.In May 2017, we acquired substantially all of the assets and certain liabilities from Rambler On LLC (Rambler On) for $6.0 million. At the time, Rambler On was our exclusive drinkware customization partner and a variable interest entity, which we reflected as a consolidated subsidiary. The purchase price consisted of cash of $2.9 million and a $3.0 million principal amount promissory note payable to the seller, with a two year term and bearing interest at 5% per annum, payable in two equal installments on May 16, 2018 and May 16, 2019. Subsequent to acquisition, the sole owner of Rambler On became a YETI employee. In May 2019, we repaid in full the remaining principal amount on the unsecured promissory note to Rambler On.
v3.20.4
COMMITMENTS AND CONTINGENCIES
12 Months Ended
Jan. 02, 2021
Commitments and Contingencies Disclosure [Abstract]  
COMMITMENTS AND CONTINGENCIES COMMITMENTS AND CONTINGENCIES
Future commitments under non-cancelable agreements at January 2, 2021 were as follows (in thousands):

Fiscal Year
Total
20212022202320242025
Thereafter
Other noncancelable agreements (1)
$111,892 $37,897 $24,293 $19,469 $12,108 $12,364 $5,761 
_________________________
(1)We have entered into commitments for service and maintenance agreements related to our management information systems, distribution contracts, advertising, sponsorships, and licensing agreements.
As we are unable to reasonably predict the timing of settlement of liabilities related to unrecognized tax benefits and other noncurrent tax liabilities, the table above does not include $8.7 million, net, of such liabilities on our consolidated balance sheet as of January 2, 2021.

We are involved in various claims and legal proceedings, some of which are covered by insurance. We believe that the existing claims and proceedings, and potential losses relating to such contingencies, will not have a material adverse effect on our consolidated financial position, results of operations, or cash flows.
v3.20.4
INCOME TAXES
12 Months Ended
Jan. 02, 2021
Income Tax Disclosure [Abstract]  
INCOME TAXES INCOME TAXES
The components of income before income taxes were as follows for the periods indicated (in thousands):
Fiscal Year Ended
January 2,
2021
December 28,
2019
December 29,
2018
Domestic
$201,919 $65,469 $69,209 
Foreign
3,282 1,789 406 
Income before income taxes
$205,201 $67,258 $69,615 
The components of income tax expense were as follows for the periods indicated (in thousands):

Fiscal Year Ended
January 2,
2021
December 28,
2019
December 29,
2018
Current tax expense:
U.S. federal
$41,884 $627 $7,190 
State
10,619 1,505 2,316 
Foreign
829 526 247 
Total current tax expense
53,332 2,658 9,753 
Deferred tax expense (benefit):
U.S. federal
(3,332)12,911 3,298 
State
(538)1,304 (1,172)
Foreign
(62)(49)(27)
Total deferred tax expense(3,932)14,166 2,099 
Total income tax expense
$49,400 $16,824 $11,852 

A reconciliation of income taxes computed at the federal statutory income tax rate of 21% to the effective income tax rate is as follows for the periods indicated (in thousands):

Fiscal Year Ended
January 2,
2021
December 28,
2019
December 29,
2018
Income taxes at the statutory rate
$43,092 $14,124 $14,619 
Increase (decrease) resulting from:
State income taxes, net of federal tax effect7,816 2,989 2,030 
Nondeductible expenses
63 203 248 
Research and development tax credits
(580)(2,157)(578)
Tax expense (benefit) related to stock-based compensation(611)950 (2,396)
Nondeductible interest expense
— — 
Revaluation of deferred tax assets for state income taxes
(92)(1,154)
Other
(382)807 (921)
Income tax expense
$49,400 $16,824 $11,852 
Deferred tax assets and liabilities consisted of the following for the periods indicated (in thousands):

Fiscal Year Ended
January 2,
2021
December 28,
2019
Deferred tax assets:
Accrued liabilities
$6,857 $4,482 
Allowances and other reserves
2,979 2,030 
Inventory
5,012 1,929 
Stock-based compensation
4,796 4,761 
Operating lease liabilities10,714 12,286 
Deferred interest— 1,703 
Other
2,360 1,497 
Total deferred tax assets
$32,718 $28,688 
Deferred tax liabilities:
Operating lease assets$(8,222)$(9,528)
Prepaid expenses
(644)(1,897)
Property and equipment
(11,425)(10,971)
Intangible assets
(15,843)(13,546)
Other
(745)(744)
Total deferred tax liabilities
(36,879)(36,686)
Net deferred tax liabilities$(4,161)$(7,998)
Amounts included in the Consolidated Balance Sheets:
Deferred income taxes$1,062 $1,082 
Other liabilities(5,223)(9,080)
Net deferred income tax liabilities$(4,161)$(7,998)

On December 22, 2017, U.S. federal legislation, commonly referred to as the Tax Cuts and Jobs act (the “Tax Act”) was signed into law, significantly reforming the U.S. Internal Revenue Code. The Tax Act, among other things, reduced the U.S. federal corporate tax rate from 35% to 21%, required companies to pay a one-time transition tax on earnings of certain foreign subsidiaries that were previously tax deferred, and put into effect the migration from a “worldwide” system of taxation to a territorial system. During 2018, we finalized the accounting for the enactment of the Tax Act, with an immaterial adjustment to the amount recorded in the year of enactment.

We consider the undistributed earnings of our foreign subsidiaries to be indefinitely reinvested, and, accordingly, no taxes have been recognized on such earnings except for the transition tax recognized as part of the Tax Act. We continue to evaluate our plans for reinvestment or repatriation of unremitted foreign earnings. If we determine that all or a portion of our foreign earnings are no longer indefinitely reinvested, we may be subject to additional foreign withholding taxes and U.S. state income taxes. At January 2, 2021, we had unremitted earnings of foreign subsidiaries of $6.9 million.

The Tax Act introduced new provisions for U.S. taxation of certain global intangible low-taxed income (“GILTI”). We elected to account for the tax on GILTI as a period cost and therefore have not recorded deferred taxes related to GILTI on our foreign subsidiaries.

As of January 2, 2021, we had Texas research and development tax credit carryforwards of approximately $1.9 million, which if not utilized, will expire beginning in 2037.
The following table summarizes the activity related to our unrecognized tax benefits for the periods indicated (excluding interest and penalties) (in thousands):
Fiscal Year Ended
January 2,
2021
December 28,
2019
Balance, beginning of year
$3,358 $2,381 
Gross increases related to current year tax positions4,522 987 
Gross increases related to prior year tax positions— 37 
Gross decreases related to prior year tax positions(65)— 
Lapse of statute of limitations(565)(47)
Balance, end of year
$7,250 $3,358 

If our positions are sustained by the relevant taxing authorities, approximately $7.3 million (excluding interest and penalties) of uncertain tax position liabilities as of January 2, 2021 would favorably impact our effective tax rate in future periods. We do not anticipate that the balance of gross unrecognized tax benefits will change significantly during the next twelve months.

We include interest and penalties related to unrecognized tax benefits in our current provision for income taxes in the accompanying consolidated statements of operations. As of January 2, 2021, we had recognized a liability of $0.6 million for interest and penalties related to unrecognized tax benefits.

We file income tax returns in the United States and various state jurisdictions. The tax years 2017 through 2020 remain open to examination in the United States, and the tax years 2016 through 2020 remain open to examination in Texas and most other state jurisdictions. The 2017 through 2020 tax years remain open to examination in foreign jurisdictions.
v3.20.4
EARNINGS PER SHARE
12 Months Ended
Jan. 02, 2021
Earnings Per Share [Abstract]  
EARNINGS PER SHARE EARNINGS PER SHARE
Basic income per share is computed by dividing net income by the weighted-average number of common shares outstanding during the period. Diluted income per share includes the effect of all potentially dilutive securities, which include dilutive stock options and awards.

The following table sets forth the calculation of earnings per share and weighted-average common shares outstanding at the dates indicated (in thousands, except per share data):
Fiscal Year Ended
January 2,
2021
December 28,
2019
December 29,
2018
Net income$155,801 $50,434 $57,763 
Weighted average common shares outstanding — basic86,978 85,088 81,777 
Effect of dilutive securities869 1,259 1,742 
Weighted average common shares outstanding — diluted87,847 86,347 83,519 
Earnings per share
Basic$1.79 $0.59 $0.71 
Diluted$1.77 $0.58 $0.69 

Outstanding stock-based awards representing 0.2 million, 0.8 million, and 0.2 million shares of common stock were excluded from the calculations of diluted earnings per share in 2020, 2019, and 2018, respectively, because the effect of their inclusion would have been antidilutive to those years. In addition, 1.4 million shares of performance-based RSUs were excluded from the calculations of diluted earnings per share in 2018 because these units were not considered to be contingent outstanding shares.
v3.20.4
SUPPLEMENTAL STATEMENT OF CASH FLOWS INFORMATION
12 Months Ended
Jan. 02, 2021
Supplemental Cash Flow Information [Abstract]  
SUPPLEMENTAL STATEMENT OF CASH FLOWS INFORMATION SUPPLEMENTAL STATEMENT OF CASH FLOWS INFORMATION
Supplemental cash flow information was as follows for the periods indication (in thousands):

Fiscal Year Ended
January 2,
2021
December 28,
2019
December 29,
2018
Interest paid
$8,358 $19,396 $28,504 
Income taxes paid
36,306 3,524 16,347 

Liabilities related to property and equipment outstanding at 2020, 2019, and 2018 of $5.3 million, $1.0 million, $1.3 million, respectively, are not included in Purchases of property and equipment within the consolidated statement of cash flows. Non-cash financing activities during 2019, and 2018 consisted of accrued dividends payable on unvested options, which were $0.4 million and $1.7 million, respectively. No dividends were accrued in 2020.
v3.20.4
QUARTERLY FINANCIAL DATA (UNAUDITED)
12 Months Ended
Jan. 02, 2021
Quarterly Financial Information Disclosure [Abstract]  
QUARTERLY FINANCIAL DATA (UNAUDITED) QUARTERLY FINANCIAL DATA (UNAUDITED)
Summarized quarterly financial data for the periods indicated is set forth below (in thousands, except per share amounts). Quarterly results were influenced by seasonal and other factors inherent in our business.

 First QuarterSecond QuarterThird QuarterFourth QuarterTotal
2020
Net sales$174,412 $246,938 $294,603 $375,768 $1,091,721 
Gross profit92,458 137,525 173,976 224,844 628,803 
Net income8,480 33,482 51,445 62,394 155,801 
Net income per share - basic$0.10 $0.39 $0.59 $0.72 $1.79 
Net income per share - diluted$0.10 $0.38 $0.58 $0.71 $1.77 
2019
Net sales$155,353 $231,654 $229,125 $297,602 $913,734 
Gross profit76,627 116,277 120,076 162,334 475,314 
Net (loss) income2,167 22,223 21,302 4,742 50,434 
Net (loss) income per share - basic$0.03 $0.26 $0.25 $0.05 $0.59 
Net (loss) income per share - diluted$0.03 $0.26 $0.25 $0.05 $0.58 
v3.20.4
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (Policies)
12 Months Ended
Jan. 02, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Basis of Presentation and Principles of Consolidation Basis of Presentation and Principles of ConsolidationThe consolidated financial statements and accompanying notes are prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) and the rules of the U.S. Securities and Exchange Commission (SEC). The consolidated financial statements include our accounts and those of our wholly-owned subsidiaries. Intercompany balances and transactions are eliminated in consolidation.
Use of Estimates
Use of Estimates
The preparation of consolidated financial statements in conformity with GAAP requires our management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses during the reporting period and disclosure of contingent assets and liabilities at the date of the consolidated financial statements. Estimates and assumptions about future events and their effects cannot be made with certainty, including the potential impacts and duration of the COVID-19 pandemic. Estimates may change as new events occur, when additional information becomes available and if our operating environment changes. Actual results could differ from our estimates.
Fiscal Year End
Fiscal Year End
We have a 52- to 53-week fiscal year that ends on the Saturday closest in proximity to December 31, such that each quarterly period will be 13 weeks in length, except during a 53-week year when the fourth quarter will be 14 weeks. Fiscal year 2020 was a 53-week period and fiscal years 2019 and 2018 spanned 52 weeks each. The consolidated financial results represent the fiscal years ended January 2, 2021 (2020), December 28, 2019 (2019), and December 29, 2018 (2018).
Accounts Receivable Accounts ReceivableAccounts receivable are carried at original invoice amount less estimated credit losses. Upon initial recognition of a receivable, we estimate credit losses over the contractual term of the receivable and establish an allowance for credit losses based on historical experience, current available information, and expectations of future economic conditions. We mitigate credit loss risk from accounts receivable by assessing customers for credit worthiness, including ongoing credit evaluations and their payment trends. Credit risk is limited due to ongoing monitoring, high geographic customer distribution, and low concentration of risk. As the risk of loss is determined to be similar based on the credit risk factors, we aggregate receivables on a collective basis when assessing credit losses. Accounts receivable are uncollateralized customer obligations due under normal trade terms typically requiring payment within 30 to 90 days of sale. Receivables are written off when deemed uncollectible.
Advertising AdvertisingAdvertising costs are expensed in the period in which the advertising occurs and included in selling, general and administrative expenses in our consolidated statements of operations.
Cash
Cash
We maintain our cash in bank deposit accounts which, at times, may exceed federally insured limits. We have not historically experienced any losses in such accounts.
Comprehensive Income
Comprehensive Income
Our comprehensive income is determined based on net income adjusted for gains and losses on foreign currency translation adjustments.
Concentration of Risk
Concentration of Risk
We are exposed to risk due to our concentration of business activity with certain third-party contract manufacturers of our products. For hard coolers, soft coolers, Drinkware, bags, outdoor living and pet products, our two largest manufacturers comprised approximately 88%, 85%, 77%, 83%, and 95%, respectively, of our production volume during 2020. For cargo, two manufacturers accounted for all of the production in 2020.
Deferred Financing Fees
Deferred Financing Fees
Costs incurred upon the issuance of our debt instruments are capitalized and amortized over the life of the associated debt instrument on a straight-line basis, in a manner that approximates the effective interest method. If the debt instrument is retired before its scheduled maturity date, any remaining issuance costs associated with that debt instrument are expensed in the same period. Deferred financing fees related to our $450.0 million senior secured Credit Facility are reported in Long-term debt, net of current portion as a direct reduction of the carrying amount of our outstanding long-term debt. At January 2, 2021 and December 28, 2019, the amortization of deferred financing fees included in interest expense was $0.9 million and $2.2 million, respectively.
Fair Value of Financial Instruments
Fair Value of Financial Instruments
For financial assets and liabilities recorded at fair value on a recurring or non-recurring basis, fair value is the price we would receive to sell an asset, or pay to transfer a liability, in an orderly transaction with a market participant at the measurement date. In the absence of such data, fair value is estimated using internal information consistent with what market participants would use in a hypothetical transaction. In determining fair value, observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect our market assumptions; preference is given to observable inputs. These two types of inputs create the following fair value hierarchy:
Level 1:    Quoted prices for identical instruments in active markets.
Level 2:    Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations whose inputs are observable or whose significant value drivers are observable.
Level 3:    Significant inputs to the valuation model are unobservable.
Our financial instruments consist principally of cash, accounts receivable, accounts payable, and bank indebtedness. The carrying amount of cash, accounts receivable, and accounts payable, approximates fair value due to the short-term maturity of these instruments. The carrying amount of our long-term bank indebtedness approximates fair value based on Level 2 inputs since the Credit Facility carries a variable interest rate that is based on the London Interbank Offered Rate (LIBOR).
Foreign Currency Translation and Foreign Currency Transactions
Foreign Currency Translation and Foreign Currency Transactions
Adjustments resulting from translating foreign functional currency financial statements into U.S. dollars are included in the foreign currency translation adjustment, a component of accumulated other comprehensive income.
For consolidation purposes, the assets and liabilities of our subsidiaries whose functional currency is not the U.S. dollar are translated into U.S. dollars using the exchange rate on the balance sheet date. Revenues and expenses are translated at average rates prevailing during the period. The gains and losses resulting from translation of financial statements of foreign subsidiaries are recorded as a separate component of accumulated other comprehensive income.
Goodwill and Intangible Assets
Goodwill and Intangible Assets
Goodwill and intangible assets are recorded at cost, or at their estimated fair values at the date of acquisition. We review goodwill and indefinite-lived intangible assets for impairment annually in the fourth quarter of each fiscal year or on an interim basis whenever events or changes in circumstances indicate the fair value of such assets may be below their carrying amount. In conducting our annual impairment test, we first review qualitative factors to determine whether it is more likely than not that the fair value of the asset is less than its carrying amount. If factors indicate that the fair value of the asset is less than its carrying amount, we perform a quantitative assessment of the asset, analyzing the expected present value of future cash flows to quantify the amount of impairment, if any. We perform our annual impairment tests in the fourth quarter of each fiscal year.
For our annual goodwill impairment tests in the fourth quarters of 2020 and 2019, we performed a qualitative assessment to determine whether the fair value of goodwill was more likely than not less than the carrying value. Based on economic conditions and industry and market considerations, we determined that it was more likely than not that the fair value of goodwill was greater than its carrying value; therefore, the quantitative impairment test was not performed. Therefore, we did not record any goodwill impairment for the years 2020 and 2019.
Our intangible assets consist of indefinite-lived intangible assets, including tradename, trademarks, trade dress, and definite-lived intangible assets such as customer relationships, trademarks, patents, and other intangibles assets, such as copyrights and domain name. We also capitalize the costs of acquired trademarks, trade dress, patents and other intangibles, such as copyrights and domain name assets.
In addition, external legal costs incurred in the defense of our patents and trademarks are capitalized when we believe that the future economic benefit of the intangible asset will be increased, and a successful defense is probable. In the event of a successful defense, the settlements received are netted against the external legal costs that were capitalized. Capitalized patent and trademark defense costs are amortized over the remaining useful life of the asset. Where the defense of the patent and trademark maintains rather than increases the expected future economic benefits from the asset, the costs would generally be expensed as incurred. The external legal costs incurred and settlements received may not occur in the same period. Capitalized costs incurred during 2018, 2019, and 2020 primarily relate to external legal costs incurred in the defense of our patents and trademarks, net of settlements received.
Income Taxes
Income Taxes
We provide for taxes at the enacted rate applicable for the appropriate tax jurisdictions. Deferred taxes are provided on an asset and liability method, which requires the recognition of deferred tax assets and liabilities for expected future consequences of temporary differences between the financial reporting and income tax bases of assets and liabilities using enacted tax rates. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized.
Tax filing positions are evaluated, and we recognize the largest amount of tax benefit that is more likely than not to be sustained upon examination by the taxing authorities based on the technical merits of the tax position. Settlements with tax authorities, the expiration of statutes of limitations for particular tax positions, or obtaining new information on particular tax positions may cause a change to the effective tax rate. We recognize interest and penalties related to unrecognized tax benefits in the provision for income taxes in the consolidated statements of operations.
Inventories
Inventories
Inventories are comprised primarily of finished goods and are generally valued at the lower of weighted-average cost or net realizable value. Net realizable value is defined as the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. We make ongoing estimates relating to the net realizable value of inventories based upon our assumptions about future demand and market conditions.
Property and Equipment
Property and Equipment
We record property and equipment at their original acquisition costs and we depreciate them based on a straight-line method over their estimated useful lives. Expenditures for repairs and maintenance are expensed as incurred, while asset improvements that extend the useful life are capitalized. The useful lives for property and equipment are as follows:
Leasehold improvements
lesser of 10 years, remaining lease term, or estimated useful life of the asset
Molds and tooling
3 - 5 years
Furniture and equipment
3 - 7 years
Computers and software
3 - 7 years
Research and Development Costs Research and Development CostsResearch and development costs are expensed as incurred. Employee compensation, including non-cash stock-based compensation expense, and miscellaneous supplies are included in research and development costs within selling, general, and administrative expenses.
Revenue Recognition
Revenue Recognition
As discussed in the “Recently Adopted Accounting Standards” section below, we adopted the new revenue recognition standard at the beginning of 2019. Revenue transactions associated with the sale of YETI branded coolers, equipment, drinkware, apparel and accessories comprise a single performance obligation, which consists of the sale of products to customers either through wholesale or DTC channels. Revenue is recognized when performance obligations are satisfied through the transfer of control of promised goods to the customers, based on the terms of sale. The transfer of control typically occurs at a point in time based on consideration of when the customer has an obligation to pay for the goods, and physical possession of, legal title to, and the risks and rewards of ownership of the goods has been transferred, and the customer has accepted the goods. Revenue from wholesale transactions is generally recognized at the time products are shipped based on contractual terms with the customer. Revenue from our DTC channel is generally recognized at the point of sale in our retail stores and at the time products are shipped for e-commerce transactions and corporate sales based on contractual terms with the customer.
Revenue is recognized net of estimates of variable consideration, including product returns, customer discounts and allowances, sales incentive programs, and miscellaneous claims from customers. We determine these estimates based on contract terms, evaluations of historical experience, anticipated trends, and other factors. The actual amount of customer returns and customer allowances, which is inherently uncertain, may differ from our estimates.
The duration of contractual arrangements with our customers is typically less than 1 year. Payment terms with wholesale customers vary depending on creditworthiness and other considerations, with the most common being net 30 days. Payment is due at the time of sale for retail store transactions and at the time of shipment for e-commerce transactions.
Certain products that we sell include a limited warranty which does not meet the definition of a performance obligation within the context of the contract. Product warranty costs are estimated based on historical and anticipated trends and are recorded as cost of goods sold at the time revenue is recognized.
Revenue from the sale of gift cards is initially deferred and recognized as a contract liability until the gift card is redeemed by the customer.
We elected to account for shipping and handling as fulfillment activities, and not as separate performance obligations. Shipping and handling fees billed to customers are included in net sales. All shipping and handling activity costs are recognized as selling, general and administrative expenses at the time the related revenue is recognized. Sales taxes collected from customers and remitted directly to government authorities are excluded from net sales and cost of goods sold.
Our terms of sale provide limited return rights. We may accept, and have at times accepted, returns outside our terms of sale at our sole discretion. We may also, at our sole discretion, provide our retail partners with sales discounts and allowances. We record estimated sales returns, discounts, and miscellaneous customer claims as reductions to net sales at the time revenues are recorded. We base our estimates upon historical experience and trends, and upon approval of specific returns or discounts. Actual returns and discounts in any future period are inherently uncertain and thus may differ from our estimates. If actual or expected future returns and discounts were significantly greater or lower than the reserves we had established, we would record a reduction or increase to net sales in the period in which we made such determination.
For periods prior to adoption, revenue was recognized when persuasive evidence of an arrangement existed, and title and risks of ownership had passed to the customer, based on the terms of sale. Goods were usually shipped to customers with free-on-board (“FOB”) shipping point terms; however, our practice was to bear the responsibility of the delivery to the customer. In the case that product was lost or damaged in transit to the customer, we generally took the responsibility to provide new product. In effect, we applied a synthetic FOB destination policy and therefore recognized revenue when the product was delivered to the customer. For our national accounts, delivery of our products typically occurred at shipping point, as such customers took delivery at our distribution center.
Segment Information
Segment Information
We report our operations as a single reportable segment and manage our business as a single-brand consumer products business. This is supported by our operational structure, which includes sales, research, product design, operations, marketing, and administrative functions focused on the entire product suite rather than individual product categories. Our chief operating decision maker does not regularly review financial information for individual product categories, sales channels, or geographic regions that would allow decisions to be made about allocation of resources or performance.
Shipping and Handling Costs Shipping and Handling CostsAmounts charged to customers for shipping and handling are included in net sales. Our cost of goods sold includes inbound freight charges for product delivery from our third-party contract manufacturers.
Stock‑Based Compensation
Stock-Based Compensation

Stock-based compensation awards granted to employees and directors are measured at fair value and recognized as an expense. Compensation expense equal to the fair value of performance-based awards that are expected to vest is estimated and recorded over the period the grants are earned, which is the vesting period. Compensation expense estimates are updated periodically. The vesting of the performance-based restricted stock units is also contingent upon the attainment of predetermined performance goals. Depending on the estimated probability of attainment of those performance goals, the compensation expense recognized related to the awards could increase or decrease over the remaining vesting period.

We use a Black-Scholes option-pricing model to calculate the fair value of options. This model requires various judgmental assumptions including volatility, forfeiture rates and expected option life. No stock options were granted in 2020.

Costs relating to stock-based compensation are recognized in selling, general, and administrative expenses in our consolidated statements of operations, and forfeitures are recognized as they occur. See Note 10 for further discussion.
Valuation of Long Lived Assets Valuation of Long-Lived AssetsWe assess the recoverability of our long-lived assets, which include property and equipment, operating lease right-of-use-assets, and definite-lived intangible assets, for impairment whenever events or changes in circumstances indicate the carrying amount of such assets may not be recoverable. An impairment loss on our long-lived assets exists when the estimated undiscounted cash flows expected to result from the use of the asset and its eventual disposition are less than its carrying amount. If the carrying amount exceeds the sum of the undiscounted cash flows, an impairment charge is recognized based on the amount by which the carrying amount of the assets exceeds the estimated fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount or estimated fair value less costs to sell.
Warranty WarrantyWarranty liabilities are recorded at the time of sale for the estimated costs that may be incurred under the terms of our limited warranty. We make and revise these estimates primarily based on the number of units under warranty, historical experience of warranty claims, and an estimated per unit replacement cost. The liability for warranties is included in accrued expenses in our consolidated balance sheets. The specific warranty terms and conditions vary depending upon the product sold, but are generally warranted against defects in material and workmanship ranging from three to five years. Our warranty only applies to the original owner. If actual product failure rates or repair costs differ from estimates, revisions to the estimated warranty liabilities would be required and could materially affect our financial condition and operating results.
Recently Adopted Accounting Pronouncements
Recently Adopted Accounting Pronouncements
In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Codification (“ASC”) 842, Leases (“ASC 842”), to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. We adopted ASC 842 effective December 30, 2018, the first day of fiscal year 2019 using the modified retrospective transition method. We applied the transition provision for ASC 842 at our adoption date instead of at the earliest comparative period presented in our financial statements and, therefore, we recognized and measured leases existing at December 30, 2018, but without retrospective application.
The impact of the adoption of ASC 842 on previously reported interim financial statements included the recognition of right-of-use (“ROU”) assets and lease liabilities for operating leases. The adoption of ASC 842 had no impact to previously reported results of operations for any interim period. See Note 5 for further discussion.

In the first quarter of 2019, we adopted ASC Topic 606, Revenue from Contracts with Customers (“ASC 606”), using the modified retrospective transition method and applying this approach to contracts not completed as of the date of adoption. This ASC requires companies to recognize revenue in a way that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASC 606 also requires certain disclosures regarding qualitative and quantitative information with respect to the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. Comparative prior period information has not been restated and continues to be reported in accordance with accounting standards in effect for those periods. See Note 2 for additional revenue disclosures.
Under ASC 606, an asset for the estimated cost of inventory expected to be returned is now recognized separately from the liability for sales-related reserves. This resulted in an increase in prepaid expenses and other current assets and an increase in accrued expenses and other current liabilities on our consolidated balance sheets as of December 28, 2019.
The adoption of ASC 606 impacted the timing of revenue recognized related to sales for certain wholesale transactions and substantially all e-commerce transactions, resulting in earlier recognition of such sales, which were not material. Additionally, miscellaneous claims from customers are now recognized in net sales. Previously, these costs were recorded in selling, general and administrative expenses.
In June 2016, the FASB issued Accounting Standards Update (“ASU”) 2016-13, Measurement of Credit Losses on Financial Instruments, and also subsequently issued amendments to the initial guidance, in ASU 2018-19, ASU 2019-04, ASU 2019-05, ASU 2020-02. ASU 2016-13 replaces the current incurred loss impairment method with a method that reflects expected credit losses on financial instruments. In November 2018, the FASB issued update ASU 2018-19, clarifying the scope of ASU 2016-13. In April 2019, the FASB issued updated ASU 2019-04, clarifying that equity instruments without readily determinable fair values for which an entity has elected the measurement alternative should be remeasured to fair value as of the date that an observable transaction occurred. In May 2019, the FASB issued ASU 2019-05, which provides an option to irrevocably elect to measure certain individual financial assets at fair value instead of amortized cost. ASU 2020-02 provides updated guidance on how an entity should measure credit losses on financial instruments. We adopted this standard in the first quarter of fiscal year 2020. The adoption of this standard did not have a material impact on our consolidated financial statements and related disclosures.
In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. This ASU removes Step 2 from the goodwill impairment test. The standard will be effective for us in the first quarter of our fiscal year 2020, although early adoption is permitted. The adoption of this ASU did not have a material impact on our consolidated financial statements and related disclosures.
In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820). This ASU eliminates, adds and modifies certain disclosure requirements for fair value measurements. Among the changes, entities will no longer be required to disclose the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy but will be required to disclose the range and weighted average used to develop significant unobservable inputs for Level 3 fair value measurements. We adopted this standard in the first quarter of fiscal year 2020. The adoption of this standard did not have a material impact on our consolidated financial statements and related disclosures.
In August 2018, the FASB issued ASU 2018-15, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350) (“ASU 2018-15”). The objective of ASU 2018-15 is to align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with those incurred to develop or obtain internal-use software. The amendments can be applied either retrospectively or prospectively. We adopted this standard in the first quarter of fiscal year 2020. The adoption of this standard did not have a material impact on our consolidated financial statements and related disclosures.
Recent Accounting Guidance Not Yet Adopted Recent Accounting Guidance Not Yet AdoptedIn March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. This ASU provides an optional expedient and exceptions for applying generally accepted accounting principles to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. In response to the concerns about structural risks of interbank offered rates (“IBORs”) and, particularly, the risk of cessation of the LIBOR, regulators in several jurisdictions around the world have undertaken reference rate reform initiatives to identify alternative reference rates that are more observable or transaction based and less susceptible to manipulation. The ASU provides companies with optional guidance to ease the potential accounting burden associated with transitioning away from reference rates that are expected to be discontinued. The ASU can be adopted no later than December 1, 2022 (fiscal year 2023) with early adoption permitted. We are evaluating the effect of adopting this new accounting guidance.
v3.20.4
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (Tables)
12 Months Ended
Jan. 02, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Property and equipment estimated useful lives The useful lives for property and equipment are as follows:
Leasehold improvements
lesser of 10 years, remaining lease term, or estimated useful life of the asset
Molds and tooling
3 - 5 years
Furniture and equipment
3 - 7 years
Computers and software
3 - 7 years
v3.20.4
REVENUE (Tables)
12 Months Ended
Jan. 02, 2021
Revenue from Contract with Customer [Abstract]  
Schedule of accounts receivable and contract liabilities
The following table provides information about accounts receivable and contract liabilities at the periods indicated (in thousands):
January 2, 2021December 28, 2019
Accounts receivable, net$65,417 $82,688 
Contract liabilities(11,074)(4,499)
Schedule of disaggregated net sales
The following table disaggregates our net sales by channel, product category, and geography for the periods indicated (in thousands):
20202019
2018(1)
Net Sales by Channel:
Wholesale$510,861 $527,634 $491,431 
Direct-to-consumer580,860 386,100 287,402 
Total net sales$1,091,721 $913,734 $778,833 
Net Sales by Category:
Coolers & Equipment$446,585 $368,874 $331,224 
Drinkware628,566 526,241 424,164 
Other16,570 18,619 23,445 
Total net sales$1,091,721 $913,734 $778,833 
Net Sales by Geographic Region:
United States$1,025,393 $873,867 $761,880 
International66,328 39,867 16,953 
Total net sales$1,091,721 $913,734 $778,833 
_________________________________________
(1)Prior year information is presented in accordance with accounting guidance in effect during that period and has not been updated to reflect the impact of ASC 606. See Note 1 for additional information.
v3.20.4
PREPAID EXPENSES AND OTHER CURRENT ASSETS (Tables)
12 Months Ended
Jan. 02, 2021
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]  
Schedule of Prepaid Expenses and Other Current Assets
Prepaid expenses and other current assets include the following (in thousands):
January 2,
2021
December 28,
2019
Prepaid expenses$12,174 $15,052 
Prepaid taxes433 1,374 
Other5,079 3,218 
Total prepaid expenses and other current assets$17,686 $19,644 
v3.20.4
PROPERTY AND EQUIPMENT (Tables)
12 Months Ended
Jan. 02, 2021
Property, Plant and Equipment [Abstract]  
Summary of property and equipment
Property and equipment consisted of the following at the dates indicated (in thousands):
January 2,
2021
December 28,
2019
Production molds, tooling, and equipment
$60,331 $56,375 
Furniture, fixtures, and equipment
8,204 7,721 
Computers and software
63,343 52,930 
Leasehold improvements
37,933 35,419 
Finance leases1,208 1,208 
Property and equipment, gross171,019 153,653 
Accumulated depreciation
(92,944)(71,043)
Property and equipment, net$78,075 $82,610 
Property and equipment, net by geographical region was as follows as of the dates indicated (in thousands):

 
January 2,
2021
December 28,
2019
United States
$65,509 $70,672 
International
12,566 11,938 
Property and equipment, net$78,075 $82,610 
v3.20.4
LEASES (Tables)
12 Months Ended
Jan. 02, 2021
Leases [Abstract]  
Summary of Balance Sheet
The following table presents the assets and liabilities related to operating and finance leases (in thousands):

Balance Sheet Location
January 2, 2021
Assets:
Operating lease assetsOperating lease right-of-use assets$34,090 
Finance lease assetsProperty, plant and equipment909 
Total lease assets$34,999 
Liabilities:
Current
Operating lease liabilitiesOperating lease liabilities$8,247 
Finance lease liabilitiesCurrent maturities of long-term debt197 
Non-current
Operating lease liabilitiesOperating lease liabilities, non-current36,546 
Finance lease liabilitiesLong-term debt, net of current portion753 
Total lease liabilities$45,743 
Summary of Lease Cost
The following table presents the components of lease costs (in thousands):
Fiscal Year Ended
January 2, 2021
Operating lease costs$9,599 
Finance lease cost - amortization of right-of-use assets211 
Finance lease cost - interest on lease liabilities64 
Short-term lease cost185 
Variable lease cost3,349 
Sublease income(757)
Total lease cost$12,651 

The following table presents lease terms and discount rates:

January 2, 2021
Weighted average remaining lease term:
Operating leases6.15 years
Finance leases3.66 years
Weighted average discount rate:
Operating leases6.42 %
Finance leases6.24 %
The following table presents supplemental cash flow information related to our leases (in thousands):

January 2, 2021
Cash paid for amounts included in measurement of liabilities:
Operating cash flows used in operating leases$11,097 
Operating cash flows used in finance leases64 
Financing cash flows used in finance leases185 
Right-of-use assets obtained in exchange for new lease liabilities:
Operating leases2,831 
Schedule of Operating Lease Liability, Maturity The following table presents the minimum lease payment obligations of operating and finance lease liabilities (leases with terms in excess of one year) for the next five years and thereafter as of January 2, 2021 (in thousands):
Operating LeasesFinance LeasesTotal
2021$10,852 $249 $11,101 
20227,752 249 8,001 
20238,044 249 8,293 
20247,759 330 8,089 
20257,035 — 7,035 
Thereafter13,268 — 13,268 
Total lease payments54,710 1,077 55,787 
Less: Effect of discounting to net present value9,917 127 10,044 
Present value of lease liabilities$44,793 $950 $45,743 
Schedule of Finance Lease Liability, Maturity The following table presents the minimum lease payment obligations of operating and finance lease liabilities (leases with terms in excess of one year) for the next five years and thereafter as of January 2, 2021 (in thousands):
Operating LeasesFinance LeasesTotal
2021$10,852 $249 $11,101 
20227,752 249 8,001 
20238,044 249 8,293 
20247,759 330 8,089 
20257,035 — 7,035 
Thereafter13,268 — 13,268 
Total lease payments54,710 1,077 55,787 
Less: Effect of discounting to net present value9,917 127 10,044 
Present value of lease liabilities$44,793 $950 $45,743 
v3.20.4
INTANGIBLE ASSETS (Tables)
12 Months Ended
Jan. 02, 2021
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of Finite-Lived Intangible Assets
Intangible assets consisted of the following at the dates indicated below (dollars in thousands): 

January 2, 2021
Useful Life
Gross Carrying Amount
Accumulated Amortization
Net Carrying Amount
Tradename
Indefinite
$31,363 $— $31,363 
Trade dress
Indefinite
14,197 — 14,197 
Trademarks
Indefinite
13,514 — 13,514 
Customer relationships
11 years42,205 (32,783)9,422 
Trademarks
6 - 30 years
19,514 (5,982)13,532 
Patents
4 - 25 years
10,369 (1,072)9,297 
Other intangibles
15 years1,045 (292)753 
Total intangible assets
$132,207 $(40,129)$92,078 

December 28, 2019
Useful Life
Gross Carrying Amount
Accumulated
Amortization
Net Carrying Amount
TradenameIndefinite$31,363 $— $31,363 
Trade dressIndefinite13,917 — 13,917 
TrademarksIndefinite9,245 — 9,245 
Customer relationships11 years42,205 (28,947)13,258 
Trademarks(1)
6 - 30 years
19,872 (4,307)15,565 
Patents
4 - 25 years
7,407 (719)6,688 
Non-compete agreements5 years2,815 (2,815)— 
Other intangibles15 years1,041 (227)814 
Total intangible assets$127,865 $(37,015)$90,850 
_________________________________________
(1)Includes the acquisition of $9.1 million in trademarks during 2019, as discussed below.
v3.20.4
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables)
12 Months Ended
Jan. 02, 2021
Payables and Accruals [Abstract]  
Schedule of Accrued Expenses and Other Current Liabilities
Accrued expenses and other current liabilities consisted of the following at the dates indicated (in thousands):
January 2,
2021
December 28,
2019
Accrued freight and distribution costs$22,047 $12,454 
Contract liabilities11,074 4,499 
Customer discounts, allowances, and returns10,920 6,976 
Advertising and marketing12,675 3,300 
Warranty reserve8,936 6,584 
Accrued capital expenditures4,96748 
Interest payable89 420 
Other18,360 7,807 
Total accrued expenses and other current liabilities$89,068 $42,088 
v3.20.4
LONG-TERM DEBT (Tables)
12 Months Ended
Jan. 02, 2021
Debt Disclosure [Abstract]  
Summary of long term debt
Long-term debt consisted of the following at the dates indicated (in thousands):
January 2,
2021
December 28,
2019
Term Loan A, due 2024$135,000 $300,000 
Finance lease debt950 1,135 
Total debt135,950 301,135 
Current maturities of long-term debt(22,500)(15,000)
Current maturities of finance lease debt(197)(185)
Total long-term debt113,253 285,950 
Unamortized deferred financing fees(2,236)(4,235)
Total long-term debt, net$111,017 $281,715 

At January 2, 2021, the future maturities of principal amounts of our debt obligations, excluding finance lease obligations, for the next four years and in total (see Note 5 for future maturities of finance lease obligations), consisted of the following (in thousands):

Amount
202122,500 
202222,500 
202322,500 
202467,500 
Total$135,000 
v3.20.4
STOCK BASED COMPENSATION (Tables)
12 Months Ended
Jan. 02, 2021
Share-based Payment Arrangement [Abstract]  
Summary assumptions utilized to calculate fair value of stock options granted
The following assumptions were utilized to calculate the fair value of stock options granted during the periods indicated below:

20192018
Expected option term6 years6 years
Expected stock price volatility
27% - 35%
35%
Risk-free interest rate
1.64% - 2.53%
2.99
Expected dividend yield–%–%
Weighted average fair value at date of grant$7.67$7.22
Summary of stock options
A summary of the stock options is as follows for the periods indicated (in thousands, except per share data):

Number of
Options
Weighted
Average Exercise
Price
Weighted
Average
Remaining
Contractual
Term (Years)
Aggregate
Intrinsic
Value
Balance, December 30, 20172,884 $5.22 6.10
Granted761 18.00 
Exercised(560)0.47 
Forfeited/cancelled(172)47.91 
Expired(24)53.55 
Balance, December 29, 20182,889 $6.56 6.48
Granted601 23.59 
Exercised(1,730)2.06 
Forfeited/cancelled(142)20.88 
Balance, December 28, 20191,618 $16.44 8.12
Exercised(247)12.23 
Forfeited/cancelled(117)21.56 
Balance, January 2, 20211,254 $16.79 7.22$64,781 
Exercisable, January 2, 2021715 $14.07 6.66$38,917 
Summary of non-vested stock options
The following is a summary of our non-vested stock options for the periods indicated (in thousands, except per share data):

 
Shares Under
Outstanding
Options
Weighted
Average Grant
Date Fair Value
Non-vested options at December 28, 20191,044 $7.47 
Granted— — 
Forfeited(117)7.81
Vested(388)7.41
Non-vested options at January 2, 2021539 $7.44 
Summary of PBRSs, RSUs, RSAs, and DSUs
Stock-based activity, excluding options, for the year ended January 2, 2020 is summarized below (in thousands, except per share data):
Performance-Based Restricted Stock AwardsRestricted Stock Units, Restricted Stock Awards, and Deferred Stock Units
Number of PBRSs
Weighted Average Grant Date Fair Value
Number of RSUs, RSAs, and DSUs
Weighted Average Grant Date Fair Value
Nonvested, December 28, 2019— $— 319 $23.61 
Granted166 32.84 404 33.88 
Vested/released— — (136)23.62 
Forfeited/expired(20)32.84 (114)29.34 
Nonvested, January 2, 2021146 $32.84 473 $30.99 
The following table summarizes additional information about PBRSs, RSUs, RSAs, and DSUs (in thousands, except per share data):
Fiscal Year Ended (1)
January 2,
2021
December 28,
2019
December 29,
2018
Weighted average grant date fair value per share of awards granted$33.58 $23.72 $17.00 
Total grant date fair value of awards vested(2)
$3,215 $168 
Intrinsic value of awards vested(2)
$5,271 $345 
_________________________________________
(1)Excludes performance-based RSUs activity. See below for further discussion.
(2)Excludes approximately 10,500 and 13,000 DSUs that vested but were not released in 2020 and 2019, respectively.
v3.20.4
COMMITMENTS AND CONTINGENCIES (Tables)
12 Months Ended
Jan. 02, 2021
Commitments and Contingencies Disclosure [Abstract]  
Schedule of Future Commitments
Future commitments under non-cancelable agreements at January 2, 2021 were as follows (in thousands):

Fiscal Year
Total
20212022202320242025
Thereafter
Other noncancelable agreements (1)
$111,892 $37,897 $24,293 $19,469 $12,108 $12,364 $5,761 
_________________________
(1)We have entered into commitments for service and maintenance agreements related to our management information systems, distribution contracts, advertising, sponsorships, and licensing agreements.
v3.20.4
INCOME TAXES (Tables)
12 Months Ended
Jan. 02, 2021
Income Tax Disclosure [Abstract]  
Schedule of components of income before income taxes
The components of income before income taxes were as follows for the periods indicated (in thousands):
Fiscal Year Ended
January 2,
2021
December 28,
2019
December 29,
2018
Domestic
$201,919 $65,469 $69,209 
Foreign
3,282 1,789 406 
Income before income taxes
$205,201 $67,258 $69,615 
Schedule of components of income tax expense
The components of income tax expense were as follows for the periods indicated (in thousands):

Fiscal Year Ended
January 2,
2021
December 28,
2019
December 29,
2018
Current tax expense:
U.S. federal
$41,884 $627 $7,190 
State
10,619 1,505 2,316 
Foreign
829 526 247 
Total current tax expense
53,332 2,658 9,753 
Deferred tax expense (benefit):
U.S. federal
(3,332)12,911 3,298 
State
(538)1,304 (1,172)
Foreign
(62)(49)(27)
Total deferred tax expense(3,932)14,166 2,099 
Total income tax expense
$49,400 $16,824 $11,852 
Schedule of reconciliation of income taxes
A reconciliation of income taxes computed at the federal statutory income tax rate of 21% to the effective income tax rate is as follows for the periods indicated (in thousands):

Fiscal Year Ended
January 2,
2021
December 28,
2019
December 29,
2018
Income taxes at the statutory rate
$43,092 $14,124 $14,619 
Increase (decrease) resulting from:
State income taxes, net of federal tax effect7,816 2,989 2,030 
Nondeductible expenses
63 203 248 
Research and development tax credits
(580)(2,157)(578)
Tax expense (benefit) related to stock-based compensation(611)950 (2,396)
Nondeductible interest expense
— — 
Revaluation of deferred tax assets for state income taxes
(92)(1,154)
Other
(382)807 (921)
Income tax expense
$49,400 $16,824 $11,852 
Schedule of deferred tax assets and liabilities
Deferred tax assets and liabilities consisted of the following for the periods indicated (in thousands):

Fiscal Year Ended
January 2,
2021
December 28,
2019
Deferred tax assets:
Accrued liabilities
$6,857 $4,482 
Allowances and other reserves
2,979 2,030 
Inventory
5,012 1,929 
Stock-based compensation
4,796 4,761 
Operating lease liabilities10,714 12,286 
Deferred interest— 1,703 
Other
2,360 1,497 
Total deferred tax assets
$32,718 $28,688 
Deferred tax liabilities:
Operating lease assets$(8,222)$(9,528)
Prepaid expenses
(644)(1,897)
Property and equipment
(11,425)(10,971)
Intangible assets
(15,843)(13,546)
Other
(745)(744)
Total deferred tax liabilities
(36,879)(36,686)
Net deferred tax liabilities$(4,161)$(7,998)
Amounts included in the Consolidated Balance Sheets:
Deferred income taxes$1,062 $1,082 
Other liabilities(5,223)(9,080)
Net deferred income tax liabilities$(4,161)$(7,998)
Summary of unrecognized tax benefits (excluding interest and penalties)
The following table summarizes the activity related to our unrecognized tax benefits for the periods indicated (excluding interest and penalties) (in thousands):
Fiscal Year Ended
January 2,
2021
December 28,
2019
Balance, beginning of year
$3,358 $2,381 
Gross increases related to current year tax positions4,522 987 
Gross increases related to prior year tax positions— 37 
Gross decreases related to prior year tax positions(65)— 
Lapse of statute of limitations(565)(47)
Balance, end of year
$7,250 $3,358 
v3.20.4
EARNINGS PER SHARE (Tables)
12 Months Ended
Jan. 02, 2021
Earnings Per Share [Abstract]  
Schedule of reconciliation of shares for basic and diluted net income per share
The following table sets forth the calculation of earnings per share and weighted-average common shares outstanding at the dates indicated (in thousands, except per share data):
Fiscal Year Ended
January 2,
2021
December 28,
2019
December 29,
2018
Net income$155,801 $50,434 $57,763 
Weighted average common shares outstanding — basic86,978 85,088 81,777 
Effect of dilutive securities869 1,259 1,742 
Weighted average common shares outstanding — diluted87,847 86,347 83,519 
Earnings per share
Basic$1.79 $0.59 $0.71 
Diluted$1.77 $0.58 $0.69 
v3.20.4
SUPPLEMENTAL STATEMENT OF CASH FLOWS INFORMATION (Tables)
12 Months Ended
Jan. 02, 2021
Supplemental Cash Flow Information [Abstract]  
Schedule of net effect of changes in operating assets and liabilities
Supplemental cash flow information was as follows for the periods indication (in thousands):

Fiscal Year Ended
January 2,
2021
December 28,
2019
December 29,
2018
Interest paid
$8,358 $19,396 $28,504 
Income taxes paid
36,306 3,524 16,347 
v3.20.4
QUARTERLY FINANCIAL DATA (UNAUDITED) (Tables)
12 Months Ended
Jan. 02, 2021
Quarterly Financial Information Disclosure [Abstract]  
Quarterly Financial Information
Summarized quarterly financial data for the periods indicated is set forth below (in thousands, except per share amounts). Quarterly results were influenced by seasonal and other factors inherent in our business.

 First QuarterSecond QuarterThird QuarterFourth QuarterTotal
2020
Net sales$174,412 $246,938 $294,603 $375,768 $1,091,721 
Gross profit92,458 137,525 173,976 224,844 628,803 
Net income8,480 33,482 51,445 62,394 155,801 
Net income per share - basic$0.10 $0.39 $0.59 $0.72 $1.79 
Net income per share - diluted$0.10 $0.38 $0.58 $0.71 $1.77 
2019
Net sales$155,353 $231,654 $229,125 $297,602 $913,734 
Gross profit76,627 116,277 120,076 162,334 475,314 
Net (loss) income2,167 22,223 21,302 4,742 50,434 
Net (loss) income per share - basic$0.03 $0.26 $0.25 $0.05 $0.59 
Net (loss) income per share - diluted$0.03 $0.26 $0.25 $0.05 $0.58 
v3.20.4
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES - Fiscal year (Details)
12 Months Ended
Jan. 02, 2021
Minimum  
Length of fiscal year 364 days
Length of fiscal quarter 91 days
Maximum  
Length of fiscal year 371 days
Length of fiscal quarter 98 days
v3.20.4
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES - Accounts Receivable and Advertising (Details) - USD ($)
$ in Millions
12 Months Ended
Jan. 02, 2021
Dec. 28, 2019
Dec. 29, 2018
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Allowance for doubtful accounts receivable $ 1.3    
Advertising expense 42.9 $ 39.0 $ 27.5
Prepaid advertising $ 0.9 $ 0.4  
Minimum      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Accounts receivable uncollateralized customer obligations trading days 30 days    
Maximum      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Accounts receivable uncollateralized customer obligations trading days 90 days    
v3.20.4
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES - Concentration of Risk and Deferred Financing Fees (Details)
12 Months Ended
Jan. 02, 2021
USD ($)
manufacturer
Dec. 28, 2019
USD ($)
Line of Credit Facility [Line Items]    
Amortization of deferred financing fees | $ $ 900,000 $ 2,200,000
Senior Secured Credit Facility    
Line of Credit Facility [Line Items]    
Amount outstanding | $ $ 450,000,000.0  
Hard coolers    
Line of Credit Facility [Line Items]    
Number of manufacturers | manufacturer 2  
Production volume (as percentage) 88.00%  
Soft coolers    
Line of Credit Facility [Line Items]    
Production volume (as percentage) 85.00%  
Drinkware    
Line of Credit Facility [Line Items]    
Production volume (as percentage) 77.00%  
Bags    
Line of Credit Facility [Line Items]    
Production volume (as percentage) 83.00%  
Outdoor living    
Line of Credit Facility [Line Items]    
Number of manufacturers | manufacturer 2  
Production volume (as percentage) 95.00%  
v3.20.4
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES - Property and Equipment (Details)
12 Months Ended
Jan. 02, 2021
Leasehold improvements  
Property and Equipment  
Leasehold improvements lesser of 10 years, remaining lease term, or estimated useful life of the asset
Production molds and tooling | Minimum  
Property and Equipment  
Property, plant and equipment, useful life 3 years
Production molds and tooling | Maximum  
Property and Equipment  
Property, plant and equipment, useful life 5 years
Furniture, fixtures, and equipment | Minimum  
Property and Equipment  
Property, plant and equipment, useful life 3 years
Furniture, fixtures, and equipment | Maximum  
Property and Equipment  
Property, plant and equipment, useful life 7 years
Computers and software | Minimum  
Property and Equipment  
Property, plant and equipment, useful life 3 years
Computers and software | Maximum  
Property and Equipment  
Property, plant and equipment, useful life 7 years
v3.20.4
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES - Research and Development Costs (Details) - USD ($)
$ in Millions
12 Months Ended
Jan. 02, 2021
Dec. 28, 2019
Dec. 29, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]      
Research and development expense $ 11.2 $ 20.5 $ 10.8
v3.20.4
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES - Segment Information (Details)
12 Months Ended
Jan. 02, 2021
manufacturer
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Number of reportable segments 1
v3.20.4
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES - Shipping and Handling Costs (Details) - USD ($)
$ in Millions
12 Months Ended
Jan. 02, 2021
Dec. 28, 2019
Dec. 29, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]      
Cost of product shipment to customers $ 62.7 $ 39.9 $ 30.2
v3.20.4
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES - Warranty (Details) - USD ($)
$ in Thousands
12 Months Ended
Jan. 02, 2021
Dec. 28, 2019
Dec. 29, 2018
Warranty reserve $ 8,936 $ 6,584  
Warranty costs $ 5,100 $ 3,800 $ 3,600
Minimum      
Warranty term 3 years    
Maximum      
Warranty term 5 years    
v3.20.4
REVENUE - Contract Balances (Details) - USD ($)
$ in Thousands
Jan. 02, 2021
Dec. 28, 2019
Revenue from Contract with Customer [Abstract]    
Accounts receivable, net $ 65,417 $ 82,688
Contract liabilities $ (11,074) $ (4,499)
v3.20.4
REVENUE - Narrative (Details) - USD ($)
$ in Millions
12 Months Ended
Jan. 02, 2021
Dec. 28, 2019
Dec. 29, 2018
Disaggregation of Revenue [Line Items]      
Contract with customer liability, revenue recognized $ 4.2    
Sales Revenue | Customer Concentration Risk | One Customer      
Disaggregation of Revenue [Line Items]      
Customer concentration   15.00% 16.00%
Sales Revenue | Customer Concentration Risk | Amazon Marketplace      
Disaggregation of Revenue [Line Items]      
Customer concentration 14.00% 13.00% 10.00%
v3.20.4
REVENUE - Disaggregation of Revenue (Details) - USD ($)
$ in Thousands
3 Months Ended 12 Months Ended
Jan. 02, 2021
Sep. 26, 2020
Jun. 27, 2020
Mar. 28, 2020
Dec. 28, 2019
Sep. 28, 2019
Jun. 29, 2019
Mar. 30, 2019
Jan. 02, 2021
Dec. 28, 2019
Dec. 29, 2018
Disaggregation of Revenue [Line Items]                      
Net sales $ 375,768 $ 294,603 $ 246,938 $ 174,412 $ 297,602 $ 229,125 $ 231,654 $ 155,353 $ 1,091,721 $ 913,734 $ 778,833
United States                      
Disaggregation of Revenue [Line Items]                      
Net sales                 1,025,393 873,867 761,880
International                      
Disaggregation of Revenue [Line Items]                      
Net sales                 66,328 39,867 16,953
Coolers & Equipment                      
Disaggregation of Revenue [Line Items]                      
Net sales                 446,585 368,874 331,224
Drinkware                      
Disaggregation of Revenue [Line Items]                      
Net sales                 628,566 526,241 424,164
Other                      
Disaggregation of Revenue [Line Items]                      
Net sales                 16,570 18,619 23,445
Wholesale                      
Disaggregation of Revenue [Line Items]                      
Net sales                 510,861 527,634 491,431
Direct-to-consumer                      
Disaggregation of Revenue [Line Items]                      
Net sales                 $ 580,860 $ 386,100 $ 287,402
v3.20.4
PREPAID EXPENSES AND OTHER CURRENT ASSETS (Details) - USD ($)
$ in Thousands
Jan. 02, 2021
Dec. 28, 2019
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]    
Prepaid expenses $ 12,174 $ 15,052
Prepaid taxes 433 1,374
Other 5,079 3,218
Total prepaid expenses and other current assets $ 17,686 $ 19,644
v3.20.4
PROPERTY AND EQUIPMENT (Details) - USD ($)
$ in Thousands
Jan. 02, 2021
Dec. 28, 2019
Property and Equipment    
Property and equipment, gross $ 171,019 $ 153,653
Accumulated depreciation (92,944) (71,043)
Property and equipment, net 78,075 82,610
Property and equipment - geographic 78,075 82,610
United States    
Property and Equipment    
Property and equipment, net 65,509 70,672
Property and equipment - geographic 65,509 70,672
International    
Property and Equipment    
Property and equipment, net 12,566 11,938
Property and equipment - geographic 12,566 11,938
Production molds, tooling, and equipment    
Property and Equipment    
Property and equipment, gross 60,331 56,375
Furniture, fixtures, and equipment    
Property and Equipment    
Property and equipment, gross 8,204 7,721
Computers and software    
Property and Equipment    
Property and equipment, gross 63,343 52,930
Leasehold improvements    
Property and Equipment    
Property and equipment, gross 37,933 35,419
Finance leases    
Property and Equipment    
Property and equipment, gross $ 1,208 $ 1,208
v3.20.4
PROPERTY AND EQUIPMENT - Narrative (Details) - USD ($)
$ in Millions
12 Months Ended
Jan. 02, 2021
Dec. 28, 2019
Dec. 29, 2018
Property, Plant and Equipment [Abstract]      
Depreciation expense $ 24.6 $ 23.2 $ 19.5
v3.20.4
LEASES - Narrative (Details) - USD ($)
$ in Thousands
12 Months Ended
Jan. 02, 2021
Dec. 28, 2019
Dec. 29, 2018
Lessee, Lease, Description [Line Items]      
Minimum lease payments sublease rentals $ 3,200    
Sublease income (new guidance) $ 757 $ 700  
Sublease income     $ 400
Minimum      
Lessee, Lease, Description [Line Items]      
Lease term 1 year    
Maximum      
Lessee, Lease, Description [Line Items]      
Lease term 20 years    
v3.20.4
LEASES - Balance Sheet (Details) - USD ($)
$ in Thousands
Jan. 02, 2021
Dec. 28, 2019
Assets:    
Operating lease assets $ 34,090 $ 37,768
Finance lease assets 909  
Total lease assets 34,999  
Current    
Operating lease liabilities 8,247 7,768
Finance lease liabilities 197 185
Non-current    
Operating lease liabilities, non-current 36,546 $ 42,200
Finance lease liabilities 753  
Total lease liabilities $ 45,743  
v3.20.4
LEASES - Lease Cost (Details) - USD ($)
$ in Thousands
12 Months Ended
Jan. 02, 2021
Dec. 28, 2019
Leases [Abstract]    
Operating lease costs $ 9,599  
Finance lease cost - amortization of right-of-use assets 211  
Finance lease cost - interest on lease liabilities 64  
Short-term lease cost 185  
Variable lease cost 3,349  
Sublease Income (757) $ (700)
Total lease cost $ 12,651  
Weighted average remaining lease term:    
Operating leases (in years) 6 years 1 month 24 days  
Finance leases (in years) 3 years 7 months 28 days  
Weighted average discount rate:    
Operating leases (as a percent) 6.42%  
Finance leases (as a percent) 6.24%  
v3.20.4
LEASES - Future Minimum Lease Payments (Details)
$ in Thousands
Jan. 02, 2021
USD ($)
Operating Leases  
2021 $ 10,852
2022 7,752
2023 8,044
2024 7,759
2025 7,035
Thereafter 13,268
Total lease payments 54,710
Less: Effect of discounting to net present value 9,917
Present value of lease liabilities 44,793
Finance Leases  
2021 249
2022 249
2023 249
2024 330
2025 0
Thereafter 0
Total lease payments 1,077
Less: Effect of discounting to net present value 127
Present value of lease liabilities 950
Total  
2021 11,101
2022 8,001
2023 8,293
2024 8,089
2025 7,035
Thereafter 13,268
Total lease payments 55,787
Less: Effect of discounting to net present value 10,044
Present value of lease liabilities $ 45,743
v3.20.4
LEASES - Supplemental Cash Flow (Details)
$ in Thousands
12 Months Ended
Jan. 02, 2021
USD ($)
Leases [Abstract]  
Operating cash flows used in operating leases $ 11,097
Operating cash flows used in finance leases 64
Financing cash flows used in finance leases 185
Operating leases $ 2,831
v3.20.4
INTANGIBLE ASSETS (Details) - USD ($)
$ in Thousands
12 Months Ended
Jan. 02, 2021
Dec. 28, 2019
Mar. 14, 2019
Finite Lived And Indefinite Lived Intangible Assets By Major Class Line Items      
Gross carrying amount $ 132,207 $ 127,865  
Accumulated Amortization (40,129) (37,015)  
Net carrying amount, indefinite-lived 92,078 90,850  
Net carrying amount, finite-lived 92,078 90,850  
Intellectual property rights related to YETI brand 92,078 90,850  
Trademarks      
Finite Lived And Indefinite Lived Intangible Assets By Major Class Line Items      
Gross carrying amount, finite-lived 19,514 19,872  
Accumulated Amortization (5,982) (4,307)  
Net carrying amount, finite-lived 13,532 15,565  
Intellectual property rights related to YETI brand $ 13,532 $ 15,565  
Customer relationships      
Finite Lived And Indefinite Lived Intangible Assets By Major Class Line Items      
Useful Life 11 years 11 years  
Gross carrying amount, finite-lived $ 42,205 $ 42,205  
Accumulated Amortization (32,783) (28,947)  
Net carrying amount, finite-lived 9,422 13,258  
Intellectual property rights related to YETI brand 9,422 13,258  
Patents      
Finite Lived And Indefinite Lived Intangible Assets By Major Class Line Items      
Gross carrying amount, finite-lived 10,369 7,407  
Accumulated Amortization (1,072) (719)  
Net carrying amount, finite-lived 9,297 6,688  
Intellectual property rights related to YETI brand $ 9,297 $ 6,688  
Non-compete agreements      
Finite Lived And Indefinite Lived Intangible Assets By Major Class Line Items      
Useful Life   5 years  
Gross carrying amount, finite-lived   $ 2,815  
Accumulated Amortization   (2,815)  
Net carrying amount, finite-lived   0  
Intellectual property rights related to YETI brand   $ 0  
Other intangibles      
Finite Lived And Indefinite Lived Intangible Assets By Major Class Line Items      
Useful Life 15 years 15 years  
Gross carrying amount, finite-lived $ 1,045 $ 1,041  
Accumulated Amortization (292) (227)  
Net carrying amount, finite-lived 753 814  
Intellectual property rights related to YETI brand 753 814  
Europe and Asia | Trademarks      
Finite Lived And Indefinite Lived Intangible Assets By Major Class Line Items      
Net carrying amount, finite-lived     $ 9,100
Intellectual property rights related to YETI brand     $ 9,100
Tradename      
Finite Lived And Indefinite Lived Intangible Assets By Major Class Line Items      
Gross carrying amount, indefinite-lived 31,363 31,363  
Net carrying amount, indefinite-lived 31,363 31,363  
Trade dress      
Finite Lived And Indefinite Lived Intangible Assets By Major Class Line Items      
Gross carrying amount, indefinite-lived 14,197    
Gross carrying amount, finite-lived   13,917  
Net carrying amount, indefinite-lived 14,197    
Net carrying amount, finite-lived   13,917  
Intellectual property rights related to YETI brand   13,917  
Trademarks      
Finite Lived And Indefinite Lived Intangible Assets By Major Class Line Items      
Gross carrying amount, indefinite-lived 13,514    
Gross carrying amount, finite-lived   9,245  
Net carrying amount, indefinite-lived $ 13,514    
Net carrying amount, finite-lived   9,245  
Intellectual property rights related to YETI brand   $ 9,245  
Minimum | Trademarks      
Finite Lived And Indefinite Lived Intangible Assets By Major Class Line Items      
Useful Life 6 years 6 years  
Minimum | Patents      
Finite Lived And Indefinite Lived Intangible Assets By Major Class Line Items      
Useful Life 4 years 4 years  
Maximum | Trademarks      
Finite Lived And Indefinite Lived Intangible Assets By Major Class Line Items      
Useful Life 30 years 30 years  
Maximum | Patents      
Finite Lived And Indefinite Lived Intangible Assets By Major Class Line Items      
Useful Life 25 years 25 years  
v3.20.4
INTANGIBLE ASSETS - Amortization Expenses (Details) - USD ($)
$ in Thousands
12 Months Ended
Jan. 02, 2021
Dec. 28, 2019
Dec. 29, 2018
Mar. 14, 2019
Finite Lived And Indefinite Lived Intangible Assets By Major Class Line Items        
Intellectual property rights related to YETI brand $ 92,078 $ 90,850    
Amortization expense 5,900 5,800 $ 5,300  
2021 4,900      
2022 4,900      
2023 4,800      
2024 3,400      
2025 2,100      
Trademarks        
Finite Lived And Indefinite Lived Intangible Assets By Major Class Line Items        
Intellectual property rights related to YETI brand $ 13,532 $ 15,565    
Europe and Asia | Trademarks        
Finite Lived And Indefinite Lived Intangible Assets By Major Class Line Items        
Intellectual property rights related to YETI brand       $ 9,100
v3.20.4
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Details) - USD ($)
$ in Thousands
Jan. 02, 2021
Dec. 28, 2019
Payables and Accruals [Abstract]    
Accrued freight and distribution costs $ 22,047 $ 12,454
Contract liabilities 11,074 4,499
Customer discounts, allowances, and returns 10,920 6,976
Advertising and marketing 12,675 3,300
Warranty reserve 8,936 6,584
Accrued capital expenditures 4,967 48
Interest payable 89 420
Other 18,360 7,807
Total accrued expenses and other current liabilities $ 89,068 $ 42,088
v3.20.4
LONG-TERM DEBT (Details) - USD ($)
$ in Thousands
Jan. 02, 2021
Dec. 28, 2019
Long Term Debt    
Total debt $ 135,000  
Current maturities of long-term debt (22,500) $ (15,000)
Current maturities of finance lease debt (197) (185)
Total long-term debt 113,253 285,950
Unamortized deferred financing fees (2,236) (4,235)
Total long-term debt, net 111,017 281,715
Future maturity requirements on long term debt    
2021 22,500  
2022 22,500  
2023 22,500  
2024 67,500  
Total debt 135,000  
Finance lease debt    
Long Term Debt    
Total debt 950 1,135
Future maturity requirements on long term debt    
Total debt 950 1,135
Total debt    
Long Term Debt    
Total debt 135,950 301,135
Future maturity requirements on long term debt    
Total debt 135,950 301,135
Term Loan A, due 2024 | Term Loan    
Long Term Debt    
Total debt 135,000 300,000
Future maturity requirements on long term debt    
Total debt $ 135,000 $ 300,000
v3.20.4
LONG-TERM DEBT - Narrative (Details) - USD ($)
1 Months Ended 3 Months Ended 12 Months Ended
Jul. 15, 2017
May 19, 2016
Mar. 31, 2020
May 31, 2019
Jun. 27, 2020
Dec. 28, 2019
Dec. 29, 2018
Jan. 02, 2021
Dec. 28, 2019
Dec. 29, 2018
Dec. 17, 2019
Dec. 16, 2019
Long Term Debt                        
Additional deferred financing fees incurred               $ 50,000,000 $ 0 $ 0    
Loss on prepayment, modification, or extinguishment of debt               1,064,000 643,000 694,000    
Borrowings under revolving line of credit               50,000,000 0 0    
Interest paid               $ 8,358,000 $ 19,396,000 $ 28,504,000    
Loan B, due 2023                        
Long Term Debt                        
Loss on prepayment, modification, or extinguishment of debt             $ 700,000          
Voluntary debt repayments on principal             47,600,000          
Interest paid             $ 600,000          
Debt owed to Rambler On | Unsecured promissory note                        
Long Term Debt                        
Interest paid       $ 100,000                
Repayments of debt       $ 1,500,000                
Revolving credit facility                        
Long Term Debt                        
Additional deferred financing fees incurred $ 2,000,000.0                      
Revolving credit facility | Line of Credit                        
Long Term Debt                        
Available borrowing capacity   $ 100,000,000.0                 $ 150,000,000.0 $ 100,000,000.0
Borrowings under revolving line of credit     $ 50,000,000.0                  
Extinguishment of debt, amount         $ 50,000,000.0              
Weighted average interest rate               2.92%        
Outstanding balance               $ 0        
Revolving credit facility | Line of Credit | Minimum                        
Long Term Debt                        
Commitment fee percentage               0.175%        
Revolving credit facility | Line of Credit | Minimum | London Interbank Offered Rate (LIBOR)                        
Long Term Debt                        
Basis spread on variable rate (as a percentage)               1.75%        
Revolving credit facility | Line of Credit | Maximum                        
Long Term Debt                        
Commitment fee percentage               0.375%        
Revolving credit facility | Line of Credit | Maximum | London Interbank Offered Rate (LIBOR)                        
Long Term Debt                        
Basis spread on variable rate (as a percentage)               2.75%        
Term loan A                        
Long Term Debt                        
Available borrowing capacity   300,000,000.0                    
Loss on prepayment, modification, or extinguishment of debt           $ 600,000   $ 1,100,000        
Capitalized costs of new lender and third-party fees           $ 2,100,000            
Interest rate on borrowings               2.72% 6.05%      
Voluntary debt repayments on principal               $ 150,000,000.0        
Term loan A | Maturity Period, Period One                        
Long Term Debt                        
Periodic payment interest               1.25%        
Term loan A | Maturity Period, Period Two                        
Long Term Debt                        
Periodic payment interest               1.875%        
Term loan A | Debt Instrument, Redemption, Period One                        
Long Term Debt                        
Principal payments due quarterly   3,800,000                    
Term loan A | Debt Instrument, Redemption, Period Two                        
Long Term Debt                        
Principal payments due quarterly   5,600,000                    
Term loan A | Line of Credit                        
Long Term Debt                        
Available borrowing capacity                     $ 300,000,000.0 $ 298,000,000.0
Term loan A | Original Credit Facility                        
Long Term Debt                        
Available borrowing capacity   445,000,000.0                    
Term loan B                        
Long Term Debt                        
Available borrowing capacity   $ 105,000,000.0                    
Letters of credit                        
Long Term Debt                        
Available borrowing capacity               $ 20,000,000.0        
v3.20.4
BENEFIT PLAN (Details) - USD ($)
$ in Millions
12 Months Ended
Jan. 02, 2021
Dec. 28, 2019
Dec. 29, 2018
Defined Contribution Plan [Abstract]      
Employer contributions $ 1.1 $ 1.1 $ 1.0
v3.20.4
STOCK BASED COMPENSATION - Narrative (Details) - USD ($)
$ / shares in Units, $ in Thousands
12 Months Ended
Jan. 02, 2021
Dec. 28, 2019
Dec. 29, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Non-cash stock-based compensation expense $ 9,009 $ 52,332 $ 13,247
Compensation expense $ 17,000 40,700  
Unrecognized compensation expense for unvested options, recognition period 1 year 8 months 12 days    
Stock Options      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Vesting period (in years) 3 years    
Total intrinsic value of stock options exercised $ 6,700 46,700 10,000
Total fair value of stock options vested $ 2,900 $ 12,200 $ 15,200
Stock Options | Share-based Payment Arrangement, Tranche One      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Award vesting rights, percentage 0.33%    
Stock Options | Share-based Payment Arrangement, Tranche Two      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Award vesting rights, percentage 0.16%    
Restricted Stock Units (RSUs)      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Vesting period (in years) 3 years    
Restricted Stock Units (RSUs) | Share-based Payment Arrangement, Tranche One      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Award vesting rights, percentage 0.33%    
Restricted Stock Units (RSUs) | Share-based Payment Arrangement, Tranche Two      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Award vesting rights, percentage 0.16%    
Restricted Stock Awards (RSAs)      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Vesting period (in years) 3 years    
Restricted Stock Awards (RSAs) | Share-based Payment Arrangement, Tranche One      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Award vesting rights, percentage 0.33%    
Restricted Stock Awards (RSAs) | Share-based Payment Arrangement, Tranche Two      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Award vesting rights, percentage 0.16%    
Performance-Based Restricted Stock Units (PRSUs)      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Vesting period (in years) 3 years    
Weighted average grant date fair value (in dollars per share)     $ 31.74
Fair value of equity instruments other than options vested     $ 38,100
Deferred Stock Units (DSUs)      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Vesting period (in years) 1 year    
2018 Plan      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Shares authorized to be awarded (in shares) 4,800,000    
2012 Plan      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Shares authorized to be awarded (in shares) 8,800,000    
2012 Plan | Performance-Based Restricted Stock Units (PRSUs)      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
RSUs granted (in shares)     385,241
RSUs granted as replacement awards (in shares)     104,411
v3.20.4
STOCK BASED COMPENSATION - Assumptions of fair value of stock options (Details) - $ / shares
12 Months Ended
Jan. 02, 2021
Dec. 28, 2019
Dec. 29, 2018
Assumptions utilized to calculate fair value of stock options granted      
Expected option term   6 years 6 years
Expected stock price volatility, minimum   27.00%  
Expected stock price volatility, maximum   35.00%  
Expected stock price volatility     35.00%
Risk-free interest rate, minimum   1.64%  
Risk-free interest rate, maximum   2.53%  
Risk-free interest rate     2.99%
Expected dividend yield   0.00% 0.00%
Weighted average grant date fair value per option granted (in dollars per share) $ 0 $ 7.67 $ 7.22
v3.20.4
STOCK BASED COMPENSATION - Summary of stock options (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
12 Months Ended
Jan. 02, 2021
Dec. 28, 2019
Dec. 29, 2018
Dec. 30, 2017
Number of Options        
Options granted (in shares) 0      
Stock Options        
Number of Options        
Options outstanding at beginning (in shares) 1,618 2,889 2,884  
Options granted (in shares) 0 601 761  
Options exercised (in shares) (247) (1,730) (560)  
Options forfeited, cancelled (in shares) (117) (142) (172)  
Options expired (in shares)     (24)  
Options outstanding at ending (in shares) 1,254 1,618 2,889 2,884
Options exercisable (in shares) 715      
Weighted Average Exercise Price        
Weighted average exercise price at beginning (in dollars per share) $ 16.44 $ 6.56 $ 5.22  
Options granted (in dollars per share)   23.59 18.00  
Options exercised (in dollars per share) 12.23 2.06 0.47  
Options forfeited, cancelled (in dollars per share) 21.56 20.88 47.91  
Options expired (in dollars per share)     53.55  
Weighted average exercise price at ending (in dollars per share) 16.79 $ 16.44 $ 6.56 $ 5.22
Options exercisable (in dollars per share) $ 14.07      
Weighted average remaining contractual term (Years) 7 years 2 months 19 days 8 years 1 month 13 days 6 years 5 months 23 days 6 years 1 month 6 days
Weighted average remaining contractual term of options exercisable (years) 6 years 7 months 28 days      
Aggregate intrinsic value of options outstanding options $ 64,781      
Aggregate intrinsic value of options exercisable options $ 38,917      
v3.20.4
STOCK BASED COMPENSATION - Summary of non vested stock options (Details) - $ / shares
shares in Thousands
12 Months Ended
Jan. 02, 2021
Dec. 28, 2019
Dec. 29, 2018
Shares Under Outstanding Options      
Non-Vested Options at beginning (in shares) 1,044    
Granted (in shares) 0    
Forfeited (in shares) (117)    
Vested (in shares) (388)    
Non-Vested Options at ending (in shares) 539 1,044  
Weighted Average Grant Date Fair Value      
Non-Vested Options at beginning (in dollars per share) $ 7.47    
Granted (in dollars per share) 0 $ 7.67 $ 7.22
Forfeited (in dollars per share) 7.81    
Vested (in dollars per share) 7.41    
Non-Vested Options at ending (in dollars per share) $ 7.44 $ 7.47  
v3.20.4
STOCK BASED COMPENSATION - PBRSs, RSUs, RSAs, and DSUs (Details) - USD ($)
$ / shares in Units, $ in Thousands
12 Months Ended
Jan. 02, 2021
Dec. 28, 2019
Dec. 29, 2018
Performance-Based Restricted Stock Units      
Number of Stock Units      
Balance at the beginning (in shares) 0    
Granted (in shares) 166,000    
Vested (in shares) 0    
Forfeited/cancelled (in shares) (20,000)    
Balance at the end (in shares) 146,000 0  
Weighted Average Grant Date Fair Value      
Balance at the beginning (in dollars per share) $ 0    
Granted (in dollars per share) 32.84    
Vested (in dollars per share) 0    
Forfeited/cancelled (in dollars per share) 32.84    
Balance at the end (in dollars per share) $ 32.84 $ 0  
Weighted average remaining contractual terms 2 years 1 month 13 days    
Weighted average grant date fair value (in dollars per share) $ 32.84    
Aggregate intrinsic value $ 5,200    
Vested (in shares) 0    
Restricted Stock Units, Restricted Stock Awards, and Deferred Stock Units      
Number of Stock Units      
Balance at the beginning (in shares) 319,000    
Granted (in shares) 404,000    
Vested (in shares) (136,000)    
Forfeited/cancelled (in shares) (114,000)    
Balance at the end (in shares) 473,000 319,000  
Weighted Average Grant Date Fair Value      
Balance at the beginning (in dollars per share) $ 23.61    
Granted (in dollars per share) 33.88    
Vested (in dollars per share) 23.62    
Forfeited/cancelled (in dollars per share) 29.34    
Balance at the end (in dollars per share) $ 30.99 $ 23.61  
Weighted average remaining contractual terms 1 year 8 months 26 days    
Weighted average grant date fair value (in dollars per share) $ 33.88    
Aggregate intrinsic value $ 17,700    
Vested (in shares) 136,000    
PBRSs, RSUs, RSAs, and DSUs      
Weighted Average Grant Date Fair Value      
Granted (in dollars per share) $ 33.58 23.72 $ 17.00
Weighted average grant date fair value (in dollars per share) $ 33.58 $ 23.72 $ 17.00
Fair value of equity instruments other than options vested $ 3,215 $ 168 $ 0
Aggregate intrinsic value $ 5,271 $ 345 $ 0
Deferred Stock Units (DSUs)      
Number of Stock Units      
Vested (in shares) (10,500) (13,000)  
Weighted Average Grant Date Fair Value      
Vested (in shares) 10,500 13,000  
v3.20.4
STOCKHOLDERS' EQUITY (Details)
$ / shares in Units, $ in Thousands
1 Months Ended 12 Months Ended
Nov. 28, 2018
$ / shares
shares
Oct. 29, 2018
USD ($)
shares
May 17, 2016
USD ($)
$ / shares
Oct. 31, 2018
shares
Mar. 31, 2018
USD ($)
$ / shares
shares
Jan. 02, 2021
USD ($)
shares
Dec. 28, 2019
USD ($)
shares
Dec. 29, 2018
USD ($)
Oct. 24, 2018
$ / shares
Share Data                  
Shares repurchased (in shares)         400,000        
Repurchase price per share (in dollars per share) | $ / shares         $ 4.95        
Cash paid for repurchase of common stock | $         $ 2,000 $ 0 $ 0 $ 1,967  
Reverse stock split ratio       0.397          
Number of shares authorized (in shares)       200,000,000.0   600,000,000.0 600,000,000    
Number of preferred stock authorized (in shares)       30,000,000.0          
Total number of shares authorized (in shares)       630,000,000.0          
Number of shares authorized, preferred stock (in shares)           30,000,000.0 30,000,000    
Shares issued (in shares)       0          
Option to purchase additional shares from selling stockholders, period   30 days              
Cash dividend paid (in dollars per share) | $ / shares     $ 5.54            
Dividend paid | $     $ 451,300       $ 600 $ 2,500  
Percentage used to calculate the difference in strike price and dividend     0.70            
Total dividends | $     $ 7,900            
IPO                  
Share Data                  
Cumulative common stock sold (in shares)   16,000,000.0              
Company's common stock sold (in shares)   2,500,000              
Common stock sold by selling stockholders (in shares)   13,500,000              
Public offering, shares issued price (in dollars per share) | $ / shares                 $ 18.00
Net proceeds after deducting underwriting discounts and commissions | $   $ 42,400              
IPO underwriting discounts and commissions | $   2,600              
IPO offering costs incurred | $   $ 4,600              
Additional allotment option                  
Share Data                  
Common stock sold by selling stockholders (in shares) 900,000 2,400,000              
Public offering, shares issued price (in dollars per share) | $ / shares $ 18.00                
v3.20.4
RELATED PARTY AGREEMENTS (Details)
1 Months Ended 12 Months Ended
May 16, 2018
USD ($)
Jul. 31, 2018
USD ($)
May 31, 2017
USD ($)
Apr. 30, 2016
USD ($)
Jan. 02, 2021
USD ($)
facility
Dec. 28, 2019
USD ($)
Dec. 29, 2018
USD ($)
Dec. 30, 2017
USD ($)
Dec. 31, 2016
USD ($)
Dec. 31, 2012
USD ($)
Related-Party Agreements                    
Management fee, percentage on total sales                   1.00%
Annual threshold management fee                   $ 750,000
Number of warehouse facility leased | facility         1          
Lease notice period         30 days          
Lease rental expense         $ 8,700          
Fee for strategic and financial advisory services   $ 2,000,000.0   $ 3,000,000.0       $ 0 $ 0  
Related party transaction, agreement term   12 months   15 months            
Strategic and financial advisory services fees payable                 $ 3,000,000.0  
Rambler on LLC                    
Related-Party Agreements                    
Assets and liabilities acquired     $ 6,000,000.0              
Cash paid     $ 2,900,000              
Debt owed to Rambler On                    
Related-Party Agreements                    
Principal amount $ 3,000,000.0                  
Term of debt 2 years                  
Interest rate 5.00%                  
Selling, general, and administrative expenses                    
Related-Party Agreements                    
Fees and out of pocket expenses         $ 80,000.00 $ 80,000.00 $ 80,000.00      
v3.20.4
COMMITMENTS AND CONTINGENCIES (Details) - USD ($)
$ in Thousands
Jan. 02, 2021
Dec. 28, 2019
Dec. 29, 2018
Total future minimum lease payments and commitments under non-cancelable agreements      
Total $ 111,892    
2021 37,897    
2022 24,293    
2023 19,469    
2024 12,108    
2025 12,364    
Thereafter 5,761    
Unrecognized tax benefits 7,250 $ 3,358 $ 2,381
Other liabilities      
Total future minimum lease payments and commitments under non-cancelable agreements      
Unrecognized tax benefits $ 8,700    
v3.20.4
INCOME TAXES - Components of income before income taxes (Details) - USD ($)
$ in Thousands
12 Months Ended
Jan. 02, 2021
Dec. 28, 2019
Dec. 29, 2018
Components of income before income taxes      
Domestic $ 201,919 $ 65,469 $ 69,209
Foreign 3,282 1,789 406
Income before income taxes $ 205,201 $ 67,258 $ 69,615
v3.20.4
INCOME TAXES - Components of income tax expense (Details) - USD ($)
$ in Thousands
12 Months Ended
Jan. 02, 2021
Dec. 28, 2019
Dec. 29, 2018
Current tax expense:      
U.S. federal $ 41,884 $ 627 $ 7,190
State 10,619 1,505 2,316
Foreign 829 526 247
Total current tax expense 53,332 2,658 9,753
Deferred tax expense (benefit):      
U.S. federal (3,332) 12,911 3,298
State (538) 1,304 (1,172)
Foreign (62) (49) (27)
Total deferred tax expense (3,932) 14,166 2,099
Total income tax expense $ 49,400 $ 16,824 $ 11,852
v3.20.4
INCOME TAXES - Reconciliation of income taxes (Details) - USD ($)
$ in Thousands
12 Months Ended
Jan. 02, 2021
Dec. 28, 2019
Dec. 29, 2018
Income Tax Disclosure [Abstract]      
Income taxes at the statutory rate $ 43,092 $ 14,124 $ 14,619
Increase (decrease) resulting from:      
State income taxes, net of federal tax effect 7,816 2,989 2,030
Nondeductible expenses 63 203 248
Research and development tax credits (580) (2,157) (578)
Tax expense (benefit) related to stock-based compensation (611) 950 (2,396)
Nondeductible interest expense 0 0 4
Revaluation of deferred tax assets for state income taxes 2 (92) (1,154)
Other (382) 807 (921)
Total income tax expense $ 49,400 $ 16,824 $ 11,852
v3.20.4
INCOME TAXES - Components of deferred tax assets and liabilities (Details) - USD ($)
$ in Thousands
Jan. 02, 2021
Dec. 28, 2019
Deferred tax assets:    
Accrued liabilities $ 6,857 $ 4,482
Allowances and other reserves 2,979 2,030
Inventory 5,012 1,929
Stock-based compensation 4,796 4,761
Operating lease liabilities 10,714 12,286
Deferred interest 0 1,703
Other 2,360 1,497
Total deferred tax assets 32,718 28,688
Deferred tax liabilities:    
Operating lease assets (8,222) (9,528)
Prepaid expenses (644) (1,897)
Property and equipment (11,425) (10,971)
Intangible assets (15,843) (13,546)
Other (745) (744)
Total deferred tax liabilities (36,879) (36,686)
Net deferred tax liabilities (4,161) (7,998)
Deferred income taxes 1,062 1,082
Other liabilities $ (5,223) $ (9,080)
v3.20.4
INCOME TAXES - Narrative (Details) - USD ($)
$ in Thousands
12 Months Ended
Jan. 02, 2021
Dec. 28, 2019
Dec. 29, 2018
Income Tax Disclosure [Abstract]      
Corporate income tax rate 21.00% 21.00% 21.00%
Unremitted earnings of foreign subsidiaries $ 6,900    
Texas research and development tax credit carryforwards 1,900    
Unrecognized tax benefits 7,250 $ 3,358 $ 2,381
Liability of interest and penalties related to unrecognized tax benefits $ 600    
v3.20.4
INCOME TAXES - Unrecognized tax benefits (Details) - USD ($)
$ in Thousands
12 Months Ended
Jan. 02, 2021
Dec. 28, 2019
Unrecognized tax benefits (excluding interest and penalties)    
Balance, beginning of year $ 3,358 $ 2,381
Gross increases related to current year tax positions 4,522 987
Gross increases related to prior year tax positions 0 37
Gross decreases related to prior year tax positions (65) 0
Lapse of statute of limitations (565) (47)
Balance, end of year $ 7,250 $ 3,358
v3.20.4
EARNINGS PER SHARE (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
3 Months Ended 12 Months Ended
Jan. 02, 2021
Sep. 26, 2020
Jun. 27, 2020
Mar. 28, 2020
Dec. 28, 2019
Sep. 28, 2019
Jun. 29, 2019
Mar. 30, 2019
Jan. 02, 2021
Dec. 28, 2019
Dec. 29, 2018
Reconciliation of shares for basic and diluted net income per share                      
Net income $ 62,394 $ 51,445 $ 33,482 $ 8,480 $ 4,742 $ 21,302 $ 22,223 $ 2,167 $ 155,801 $ 50,434 $ 57,763
Weighted Average Number of Shares Outstanding Reconciliation [Abstract]                      
Weighted average common shares outstanding - basic (in shares)                 86,978 85,088 81,777
Effective of dilutive securities (in shares)                 869 1,259 1,742
Weighted average common shares outstanding - diluted (in shares)                 87,847 86,347 83,519
Earnings per share                      
Basic (in dollars per share) $ 0.72 $ 0.59 $ 0.39 $ 0.10 $ 0.05 $ 0.25 $ 0.26 $ 0.03 $ 1.79 $ 0.59 $ 0.71
Diluted (in dollars per share) $ 0.71 $ 0.58 $ 0.38 $ 0.10 $ 0.05 $ 0.25 $ 0.26 $ 0.03 $ 1.77 $ 0.58 $ 0.69
v3.20.4
EARNINGS PER SHARE - Anti-dilutive (Details) - shares
shares in Millions
12 Months Ended
Jan. 02, 2021
Dec. 28, 2019
Dec. 29, 2018
Restricted Stock Units (RSUs)      
Antidilutive Securities      
Dilutive earnings per shares (in shares)     1.4
Stock Options      
Antidilutive Securities      
Shares excluded from computation of diluted earnings per share (in shares) 0.2 0.8 0.2
v3.20.4
SUPPLEMENTAL STATEMENT OF CASH FLOWS INFORMATION (Details) - USD ($)
$ in Thousands
12 Months Ended
Jan. 02, 2021
Dec. 28, 2019
Dec. 29, 2018
Supplemental Cash Flow Information [Abstract]      
Interest paid $ 8,358 $ 19,396 $ 28,504
Income taxes paid $ 36,306 $ 3,524 $ 16,347
v3.20.4
SUPPLEMENTAL STATEMENT OF CASH FLOWS INFORMATION - Narrative (Details) - USD ($)
$ in Millions
12 Months Ended
Jan. 02, 2021
Dec. 28, 2019
Dec. 29, 2018
Supplemental Cash Flow Information [Abstract]      
Liabilities related to property and equipment outstanding $ 5.3 $ 1.0 $ 1.3
Accrued dividends payable on unvested options $ 0.0 $ 0.4 $ 1.7
v3.20.4
QUARTERLY FINANCIAL DATA (UNAUDITED) (Details) - USD ($)
$ / shares in Units, $ in Thousands
3 Months Ended 12 Months Ended
Jan. 02, 2021
Sep. 26, 2020
Jun. 27, 2020
Mar. 28, 2020
Dec. 28, 2019
Sep. 28, 2019
Jun. 29, 2019
Mar. 30, 2019
Jan. 02, 2021
Dec. 28, 2019
Dec. 29, 2018
Quarterly Financial Information Disclosure [Abstract]                      
Net sales $ 375,768 $ 294,603 $ 246,938 $ 174,412 $ 297,602 $ 229,125 $ 231,654 $ 155,353 $ 1,091,721 $ 913,734 $ 778,833
Gross profit 224,844 173,976 137,525 92,458 162,334 120,076 116,277 76,627 628,803 475,314 383,128
Net income $ 62,394 $ 51,445 $ 33,482 $ 8,480 $ 4,742 $ 21,302 $ 22,223 $ 2,167 $ 155,801 $ 50,434 $ 57,763
Net income per share - basic (in dollars per share) $ 0.72 $ 0.59 $ 0.39 $ 0.10 $ 0.05 $ 0.25 $ 0.26 $ 0.03 $ 1.79 $ 0.59 $ 0.71
Net income per share - diluted (in dollars per share) $ 0.71 $ 0.58 $ 0.38 $ 0.10 $ 0.05 $ 0.25 $ 0.26 $ 0.03 $ 1.77 $ 0.58 $ 0.69