Revenue Recognition

3 Months Ended

Mar. 29, 2025

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):

	March 29, 2025	December 28, 2024
Deferred contract assets included in:
Other current assets	$29,755	$30,154
Other non-current assets	47,600	48,988
	$77,355	$79,142

	March 29, 2025	December 28, 2024
Deferred contract liabilities included in:
Other current liabilities	$37,910	$38,129
Other non-current liabilities	59,762	60,988
	$97,672	$99,117

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 March 29, 2025 and March 30, 2024, the Company

recognized revenue of $10 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 97% and 98%

of revenues for the three months ended March 29, 2025 and March 30, 2024, respectively.

Net sales were as follows (in thousands):

	Three Months Ended
	March 29, 2025	March 30, 2024
Retail stores	$344,442	$414,755
Online, phone, chat and other	48,819	55,694
Total Company	$393,261	$470,449

Obligation for Sales Returns

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

	Three Months Ended
	March 29, 2025	March 30, 2024
Balance at beginning of year	$19,092	$22,402
Additions that reduce net sales	18,787	25,470
Deductions from reserves	(21,102)	(25,457)
Balance at end of period	$16,777	$22,415