XML 27 R14.htm IDEA: XBRL DOCUMENT v3.25.3
Revenue Recognition
 9 Months Ended
Sep. 27, 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):
September 27,
2025
December 28,
2024
Deferred contract assets included in:
Other current assets
$28,362
$30,154
Other non-current assets
44,039
48,988
$72,401
$79,142
September 27,
2025
December 28,
2024
Deferred contract liabilities included in:
Other current liabilities
$36,726
$38,129
Other non-current liabilities
56,308
60,988
$93,034
$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 the three months ended September 27, 2025 and September 28, 2024, the Company
recognized revenue of $7 million and $10 million, respectively, that was included in the deferred contract liability balances
at the beginning of the respective periods. During the nine months ended September 27, 2025 and September 28, 2024,
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 97% and 98%
of revenues for the three months ended September 27, 2025 and September 28, 2024, respectively. Revenue from goods
and services transferred to customers at a point in time accounted for approximately 98% of revenues for both the nine
months ended September 27, 2025 and September 28, 2024.
Net sales were as follows (in thousands):
Three Months Ended
Nine Months Ended
September 27,
2025
September 28,
2024
September 27,
2025
September 28,
2024
Retail stores
$301,194
$374,593
$933,609
$1,147,931
Online, phone, chat and other
41,685
52,024
130,456
157,548
Total Company
$342,879
$426,617
$1,064,065
$1,305,479
Obligation for Sales Returns
The activity in the sales returns liability account was as follows (in thousands):
Nine Months Ended
September 27,
2025
September 28,
2024
Balance at beginning of year
$19,092
$22,402
Additions that reduce net sales
53,373
69,391
Deductions from reserves
(57,533)
(72,105)
Balance at end of period
$14,932
$19,688