Sleep Number Corp Files 2023 Annual Report on Form 10-K

TL;DR

<b>Sleep Number Corp has filed its 2023 annual report (10-K), detailing financial performance and asset breakdowns for the fiscal year ending December 30, 2023.</b>

AI Summary

Sleep Number Corp (SNBR) filed a Annual Report (10-K) with the SEC on February 23, 2024. Sleep Number Corp filed its 2023 Form 10-K on February 23, 2024, reporting for the fiscal year ending December 30, 2023. The company's fiscal year ran from January 1, 2023, to December 30, 2023. The filing includes data for the fiscal years ending December 31, 2022, and January 1, 2022. Key financial statement components such as Common Stock, Additional Paid-In Capital, and Retained Earnings are detailed for multiple fiscal periods. Specific asset categories like Leasehold Improvements, Furniture and Fixtures, and Machinery and Equipment are itemized.

Why It Matters

For investors and stakeholders tracking Sleep Number Corp, this filing contains several important signals. This 10-K filing provides a comprehensive overview of Sleep Number's financial health and operational status for the past fiscal year, crucial for investors and stakeholders to assess performance and future outlook. The detailed breakdown of assets and equity components offers insights into the company's capital structure and investment in its operational infrastructure, which can influence strategic decisions and market valuation.

Risk Assessment

Risk Level: medium — Sleep Number Corp shows moderate risk based on this filing. The filing is a standard 10-K, which is a routine annual report. However, the specific financial details and risk factors within the report will determine the actual risk level for investors.

Analyst Insight

Review the detailed financial statements and risk factors within the 10-K to understand Sleep Number's current financial position and potential challenges.

Key Numbers

• 2023-12-30 — Fiscal Year End (Sleep Number Corp's fiscal year end)
• 2024-02-23 — Filing Date (Date the 10-K was filed)
• 2023-01-01 — Fiscal Year Start (Start date of the reported fiscal year)
• 2022-12-31 — Prior Fiscal Year End (End date of the previous fiscal year)

Key Players & Entities

• Sleep Number Corp (company) — Filer of the 10-K report
• 2023 (date) — Fiscal year end
• February 23, 2024 (date) — Filing date
• December 30, 2023 (date) — Fiscal year end date
• Minneapolis, MN (location) — Company headquarters

FAQ

Industry Context

Sleep Number Corp operates in the household furniture industry, specifically focusing on mattresses and related sleep products.

Regulatory Implications

The filing is a standard Form 10-K, a mandatory annual report required by the U.S. Securities and Exchange Commission (SEC) for publicly traded companies.

What Investors Should Do

1. Analyze the consolidated balance sheets for detailed asset and liability figures.
2. Examine the statement of stockholders' equity for changes in capital accounts.
3. Review any disclosed risk factors for potential business challenges.

Key Dates

• 2023-12-30: Fiscal Year End — Marks the end of the reporting period for the 10-K.
• 2024-02-23: Filing Date — Date Sleep Number Corp submitted its 10-K to the SEC.

Year-Over-Year Comparison

This is the initial filing analyzed, so no comparison to a previous filing is available.

Key Financial Figures

• $0.01 — ch registered Common Stock, par value $0.01 per share SNBR Nasdaq Global Select
• $2.9 million — tore in 2023 based on Total Retail, was $2.9 million. In 2023, 65% of Stores open for a full
• $2 m — ear generated net sales of greater than $2 million, and 24% of Stores open for a ful
• $3 million — pen for a full year generated more than $3 million in net sales. In 2023, Online, Phone, C
• $56 million — research and development expenses were $56 million in 2023. With over 800 patents and pa

Filing Documents

• snbr-20231230.htm (10-K) — 1912KB
• a2023-q4ex1015.htm (EX-10.15) — 7KB
• a2023-q4ex1016.htm (EX-10.16) — 181KB
• a2023-q4ex1017.htm (EX-10.17) — 6KB
• a2023-q4ex211.htm (EX-21.1) — 5KB
• a2023-q4ex231.htm (EX-23.1) — 2KB
• a2023-q4ex311.htm (EX-31.1) — 9KB
• a2023-q4ex312.htm (EX-31.2) — 9KB
• a2023-q4ex321.htm (EX-32.1) — 5KB
• a2023-q4ex322.htm (EX-32.2) — 6KB
• a2023-q4ex971.htm (EX-97.1) — 19KB
• image_0.jpg (GRAPHIC) — 2KB
• snbr-20231230_g1.jpg (GRAPHIC) — 170KB
• 0000827187-24-000011.txt (&nbsp;) — 9091KB
• snbr-20231230.xsd (EX-101.SCH) — 61KB
• snbr-20231230_cal.xml (EX-101.CAL) — 89KB
• snbr-20231230_def.xml (EX-101.DEF) — 195KB
• snbr-20231230_lab.xml (EX-101.LAB) — 796KB
• snbr-20231230_pre.xml (EX-101.PRE) — 504KB
• snbr-20231230_htm.xml (XML) — 1087KB

Business

Item 1. Business 3

Risk Factors

Item 1A. Risk Factors 18

Unresolved Staff Comments

Item 1B. Unresolved Staff Comments 30 Item 1C. Cybersecurity 31

Properties

Item 2. Properties 33

Legal Proceedings

Item 3. Legal Proceedings 34

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 34 PART II 35

Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 35

Selected Financial Data

Item 6. Selected Financial Data 37

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 41

Quantitative and Qualitative Disclosures About Market Risk

Item 7A. Quantitative and Qualitative Disclosures About Market Risk 50

Financial Statements and Supplementary Data

Item 8. Financial Statements and Supplementary Data 51

Changes in and Disagreements With Accountants on Accounting and Financial Disclosure

Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure 78

Controls and Procedures

Item 9A. Controls and Procedures 78

Other Information

Item 9B. Other Information 79

Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 79

Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 79 PART III 79

Directors, Executive Officers and Corporate Governance

Item 10. Directors, Executive Officers and Corporate Governance 79

Executive Compensation

Item 11. Executive Compensation 79

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 79

Certain Relationships and Related Transactions, and Director Independence

Item 13. Certain Relationships and Related Transactions, and Director Independence 79

Principal Account ant Fees and Services

Item 14. Principal Account ant Fees and Services 79 PART IV 80

Exhibit and Financial Statement Schedules

Item 15. Exhibit and Financial Statement Schedules 80

Form 10-K Summary

Item 16. Form 10-K Summary 85

Signatures

Signatures 86 i | 2021 FORM 10-K SLEEP NUMBER CORPORATION AND SUBSIDIARIES Sleep Number , SleepIQ , Sleep Number 360 , 360 , the Double Arrow logo, Select Comfort , AirFit , Climate360 , Comfortaire , Does Your Bed Do That? , the DualTemp logo, the DualAir Technology Inside logo, FlexTop , HealthIQ , IndividualFit , Know Better Sleep , Pillow[ology] , PillowFit , Responsive Air , Sleep Is Training , Sleep Number Inner Circle , Sleep30 , Tech-e , This Is Not A Bed , We Make Beds Smart , Auto Snore, EnviroIQ, HeartIQ, Individualized Sleep Experiences, RespiratoryIQ, Retail Flow, Sleep Number Labs logo, Sleep Number Labs, Sleep For The Future logo, Smart Sleeper SM , WellnessIQ, ActiveComfort,Clima-Temp, Comfortable. Adjustable. Affordable., ComfortFit, CoolFit, DualAir, DualTemp, Firmness Control, FlexFit, In Balance, Inspire Next Level, Partner Snore, Perform Next Level, Sleep Next Level, The Bed Reborn, The Bed That Moves You, The Best Bed For Couples, True Temp, Winter Soft , its bed model names, and the Company's other marks and stylized logos are trademarks and/or service marks of Sleep Number. This Form 10-K may also contain trademarks, trade names and service marks that are owned by other persons or entities. The Company's fiscal year ends on the Saturday closest to December 31, and, unless the context otherwise requires, all references to years in this Form 10-K refer to its fiscal years. The Company's fiscal year is based on a 52- or 53-week year. All years presented in this Form 10-K are 52 weeks, except for the 2020 fiscal year ended January 2, 2021, which was a 53-week year.

Forward-looking Statements

Forward-looking Statements This Annual Report on Form 10-K contains or incorporates by reference certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. For this purpose, any statements contained in or incorporated by reference into this Annual Report on Form 10-K that are not statements of historical fact may be deemed to be forward-looking statements, including but not limited to projections of revenues, results of operations, financial condition or other financial items; any statements of plans, strategies and objectives of management for future operations; any statements regarding proposed new products, services or developments, including potential features of Sleep Number's products that may be developed in the future; any statements regarding future economic conditions, prospects or performance; statements of belief and any statement or assumptions underlying any of the foregoing. In addition, the Company or others on its behalf may make forward-looking statements from time to time in oral presentations, including telephone conferences and/or Webcasts open to the public, in press releases or reports, on the Company's website or otherwise. The Company tries to identify forward-looking statements in this report and elsewhere by using words such as "may," "will," "should," "could," "expect," "anticipate," "believe," "estimate," "plan," "project," "predict," "intend," "potential," "continue" or the negative of these or similar terms. The forward-looking statements speak only as of the date made and by their nature involve substantial risks and uncertainties. The Company's actual results may differ materially depending on a variety of factors, including the items discussed in greater detail below under the caption "Risk Factors." These risks and uncertainties are not exclusive and further information concerning the Company and its business, including factors that potentially could materially affect its fina

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS PART I

BUSINESS

ITEM 1. BUSINESS Overview Sleep Number is a wellness technology company and market leader in the design, manufacturing, marketing and distribution of highly innovative sleep solutions. The Company's purpose is to improve the health and wellbeing of society through higher quality sleep; to date, it has improved the lives of over 15million people. Sleep Number's Smart Sleepers benefit from individualized sleep experiences, night after night, and are experiencing the physical, mental and emotional benefits of life-changing sleep. Sleep Number's life-changing, differentiated smart beds combine physical and digital innovations, integrating unparalleled physical comfort with a highly advanced technology platform. The smart beds offer the Company's signature firmness adjustability, enabling each sleeper adjustable comfort. Embedded digital sensors learn the sleep needs of each individual; "sense and do" technology uses the sensed data to automatically adjust the smart bed to keep the sleeper comfortable throughout the night. Active temperature balancing technology supports the ideal climate for both sleepers and solves a prevalent sleep challenge. Additionally, the smart beds are an exceptional value, with personalized sleep insights delivered daily, new features regularly added to all smart beds through over-the-air updates, and prices to meet most budgets. Sleep Number smart beds provide unmatched features, benefits and comfort that can lead to improved sleep health and wellness for both sleepers. The Company's advantaged business model is supported by its consumer innovation strategy: an individualized sleep wellness platform, a network of highly engaged Smart Sleepers, a vertically integrated operating model, and a culture of individuality, with an ambitious vision to become one of the world's most beloved brands. Sleep Number's exclusive distribution meets its customers whenever and wherever they choose – through digital and in-store touchpoints – to provide a