COMMITMENTS AND CONTINGENCIES (Tables)

12 Months Ended

Dec. 30, 2023

Commitments and Contingencies Disclosure [Abstract]

Schedule of Future Commitments

Future commitments under non-cancelable agreements at December 30, 2023 were as follows (in thousands):

			Fiscal Year
	Total		2024		2025		2026		2027		2028		Thereafter
Non-cancelable agreements(1)	$	154,013	$	73,867	$	50,515	$	21,900	$	6,198	$	1,533	$	—

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(1)We have entered into commitments for service and maintenance agreements related to our management information systems, distribution contracts, advertising, sponsorships, and licensing agreements.

Summary of Reserve for the Estimated Product Recall Expenses

The following table summarizes the activity in the reserve for the estimated product recall expenses (in thousands):

	December 30, 2023
Balance, January 1, 2023	$	94,807
Actual product refunds, replacements and recall-related costs	(55,470)
Gift card issuances(1)	(29,802)
Reserve adjustment	3,555
Balance, December 30, 2023	$	13,090

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(1)For the year ended December 30, 2023, we recognized net sales of $25.3 million from redeemed recall-related gift cards. As of December 30, 2023, we had $4.5 million in unredeemed recall-related gift card liabilities, which are included in contract liabilities within accrued expenses and other current liabilities on our consolidated balance sheet.

Summary of Recall Reserve Adjustment of Estimated Product Recall Expenses

The product recalls, which include recall reserve adjustments and other incurred costs, had the following effect on our income before income taxes (in thousands):

	Fiscal Year Ended
	December 30, 2023		December 31, 2022
Decrease to net sales(1)	$	(21,700)	$	(38,415)
Decrease (increase) to cost of goods sold(2)	8,423		(58,583)
Decrease to gross profit	(13,277)		(96,998)
Decrease (increase) to selling, general and administrative expenses(3)	11,382		(31,910)
Decrease to income before income taxes	$	(1,895)	$	(128,908)

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(1)For the year ended December 30, 2023, primarily reflects the unfavorable impact of the recall reserve adjustment mainly related to higher estimated future recall remedies (i.e., estimated gift card elections). For the year ended December 31, 2022, reflects a reduction for estimated future returns and recall remedies in connection with the initial recognition of the product recall reserves. Of the total net sales impact, $7.3 million and $14.4 million was allocated to our DTC and wholesale channels for the year ended December 30, 2023, and $6.2 million and $32.2 million was allocated to our DTC and wholesale channels for the year ended December 31, 2022. These amounts were allocated based on the historical channel sell-in basis of the affected products.

(2)For the year ended December 30, 2023, reflects the impact of favorable recall reserve adjustments primarily related to lower estimated costs of future product replacement remedy elections and logistics costs and lower recall-related costs. For the year ended December 31, 2022, reflects an increase to cost of goods sold primarily related to inventory write-offs for unsalable inventory on-hand, and estimated costs of future product replacement remedies, and logistics costs in connection with the initial recognition of the product recall reserves.

(3)For the year ended December 30, 2023, reflects the impact of favorable recall reserve adjustments primarily related to lower estimated other recall-related costs. For the year ended December 31, 2022, reflects an increase to SG&A expenses associated with estimated other recall-related costs in connection with the initial recognition of the product recall reserves.