Revenue Recognition

9 Months Ended

Sep. 28, 2024

Revenue from Contract with Customer [Abstract]

Revenue Recognition

Revenue Recognition

Deferred contract assets and deferred contract liabilities are included in the condensed consolidated balance sheets as

follows (in thousands):

	September 28, 2024	December 30, 2023
Deferred contract assets included in:
Other current assets	$30,329	$28,567
Other non-current assets	50,981	54,795
	$81,310	$83,362

	September 28, 2024	December 30, 2023
Deferred contract liabilities included in:
Other current liabilities	$38,395	$36,421
Other non-current liabilities	63,594	69,098
	$101,989	$105,519

Deferred revenue and costs related to SleepIQ® technology are currently recognized on a straight-line basis over the

product's estimated life of 4.5 to 5.0 years because the Company’s inputs are generally expended evenly throughout the

performance period. During both the three months ended September 28, 2024 and September 30, 2023, the Company

recognized revenue of $10 million, that was included in the deferred contract liability balances at the beginning of the

respective periods. During both the nine months ended September 28, 2024 and September 30, 2023, the Company

recognized revenue of $28 million, that was included in the deferred contract liability balances at the beginning of the

respective periods.

Revenue from goods and services transferred to customers at a point in time accounted for approximately 98% of

revenues for both the three and nine months ended September 28, 2024 and September 30, 2023.

Net sales were as follows (in thousands):

	Three Months Ended		Nine Months Ended
	September 28, 2024	September 30, 2023	September 28, 2024	September 30, 2023
Retail stores	$374,593	$409,268	$1,147,931	$1,270,076
Online, phone, chat and other	52,024	63,380	157,548	187,888
Total Company	$426,617	$472,648	$1,305,479	$1,457,964

Obligation for Sales Returns

The activity in the sales returns liability account was as follows (in thousands):

	Nine Months Ended
	September 28, 2024	September 30, 2023
Balance at beginning of year	$22,402	$25,594
Additions that reduce net sales	69,391	82,718
Deductions from reserves	(72,105)	(85,300)
Balance at end of period	$19,688	$23,012