v3.25.4
Revenue Recognition
12 Months Ended
Jan. 03, 2026
Revenue from Contract with Customer [Abstract]  
Revenue Recognition Revenue Recognition
Deferred contract assets and deferred contract liabilities are included in the consolidated balance sheet as follows (in
thousands):
 
January 3,
2026
December 28,
2024
Deferred contract assets included in:
 
 
Other current assets
$28,704
$30,154
Other non-current assets
33,522
48,988
 
$62,226
$79,142
 
January 3,
2026
December 28,
2024
Deferred contract liabilities included in:
 
 
Other current liabilities
$35,690
$38,129
Other non-current liabilities
40,961
60,988
 
$76,651
$99,117
During the years ended January 3, 2026, December 28, 2024 and December 30, 2023 the Company recognized revenue
of $42 million, $36 million and $36 million, respectively, that was included in the deferred contract liability balance at the
beginning of the year.
Revenue from goods and services transferred to customers at a point in time accounted for approximately 97% of the
Company’s revenues for 2025, and 98% for 2024 and 2023.
Net sales consisted of the following (in thousands):
 
2025
2024
2023
Retail stores
$1,234,593
$1,474,250
$1,639,073
Online, phone, chat and other
176,857
208,046
248,409
Total Company
$1,411,450
$1,682,296
$1,887,482
Obligation for Sales Returns
The activity in the sales returns liability account for 2025 and 2024 was as follows (in thousands):
 
2025
2024
Balance at beginning of year
$19,092
$22,402
Additions that reduce net sales
67,411
91,375
Deduction from reserves
(73,686)
(94,685)
Balance at end of period
$12,817
$19,092