COMMITMENTS AND CONTINGENCIES

12 Months Ended

Jan. 03, 2026

Commitments and Contingencies Disclosure [Abstract]

Future commitments under non-cancelable agreements at January 3, 2026 were as follows (in thousands):


			Fiscal Year
	Total		2026		2027		2028		2029		2030		Thereafter
Non-cancelable agreements(1)	$	206,010	$	83,002	$	44,722	$	37,813	$	29,435	$	10,722	$	316

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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.

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 $22.1 million, net, of such liabilities that are on our consolidated balance sheet as of January 3, 2026.

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.

Supplier Finance Program Obligations

We have a supplier finance program with a financial institution which provides certain suppliers the option, at their sole discretion, to participate in the program and sell their receivables due from us for early payment.

The following table summarizes the activity of the SFP for the year ended January 3, 2026 (in thousands):


Outstanding payment obligations as of December 28, 2024	$	63,127
Invoices confirmed during the period	336,615
Confirmed invoices paid during the period	(345,711)
Outstanding payment obligations as of January 3, 2026	$	54,031

Product Recall Reserves

In March 2023, in collaboration with U.S. Consumer Product Safety Commission, we announced separate voluntary recalls of our original Hopper M30 Soft Cooler, Hopper M20 Soft Backpack Cooler, and SideKick Dry gear case (the “affected products”). As a result, we established a reserve as of December 31, 2022 for expected future returns and the estimated cost of recall remedies for consumers with affected products. The reserve for the estimated product recall expenses was $5.4 million and $12.1 million as of January 3, 2026 and December 28, 2024, respectively.

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
	January 3, 2026		December 28, 2024		December 30, 2023
Decrease to net sales(1)	$	(2,275)	$	(8,832)	$	(21,700)
Decrease (increase) to cost of goods sold(2)	(89)		735		8,423
Decrease to gross profit	(2,364)		(8,097)		(13,277)
Decrease (increase) to selling, general and administrative expenses(3)	(536)		(1,841)		11,382
Decrease to income before income taxes	$	(2,900)	$	(9,938)	$	(1,895)

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(1)Represents recall reserve adjustments related to estimated future recall remedies (i.e., estimated gift card elections) and estimated consumer recall-related participation rates. For 2025, the $2.3 million decrease to net sales impacted the DTC channel. Of the total net sales impact, $8.3 million and $0.6 million was allocated to our DTC and wholesale channels, respectively, for 2024, and $7.3 million and $14.4 million was allocated to our DTC and wholesale channels, respectively, for the year ended December 30, 2023. These amounts were allocated based on the historical channel sell-in basis of the affected products.

(2)Represents recall reserve adjustments related to estimated costs of future product replacement remedy elections and related logistic costs, and recall-related costs.

(3)Represents recall reserve adjustments related to estimated future other recall-related costs.