v3.25.2
Revenue Recognition
 6 Months Ended
Jun. 28, 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):
June 28,
2025
December 28,
2024
Deferred contract assets included in:
Other current assets
$28,793
$30,154
Other non-current assets
45,996
48,988
$74,789
$79,142
June 28,
2025
December 28,
2024
Deferred contract liabilities included in:
Other current liabilities
$37,008
$38,129
Other non-current liabilities
58,362
60,988
$95,370
$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 June 28, 2025 and June 29, 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 six months ended June 28, 2025 and June 29, 2024, the Company
recognized revenue of $17 million and $19 million, respectively, 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 six months ended June 28, 2025 and June 29, 2024.
Net sales were as follows (in thousands):
Three Months Ended
Six Months Ended
June 28,
2025
June 29,
2024
June 28,
2025
June 29,
2024
Retail stores
$287,974
$358,584
$632,415
$773,339
Online, phone, chat and other
39,951
49,829
88,771
105,523
Total Company
$327,925
$408,413
$721,186
$878,862
Obligation for Sales Returns
The activity in the sales returns liability account was as follows (in thousands):
Six Months Ended
June 28,
2025
June 29,
2024
Balance at beginning of year
$19,092
$22,402
Additions that reduce net sales
36,098
46,664
Deductions from reserves
(39,540)
(48,535)
Balance at end of period
$15,650
$20,531