YETI Holdings, Inc. (YETI)

CIK: 0001670592. SIC: 3949 Sporting & Athletic Goods, NEC. Latest 10-K as of: 2026-02-27.

SIC breadcrumb: Manufacturing > SIC Major Group 39 > SIC 3949 Sporting & Athletic Goods, NEC

SEC company page: https://www.sec.gov/edgar/browse/?CIK=1670592. Latest filing source: 0001670592-26-000013.

Selected Fundamentals

Financials

Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-02-27. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001670592.json. Derived margins are computed from the extracted annual SEC facts.

Flow metrics use full-year FY periods from 10-K/10-K/A filings; balance-sheet metrics use FY-end instants. Missing metrics are omitted rather than fabricated.

Financial Charts

Quarterly

Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-05-14. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001670592.json.

Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived.

Quarterly Charts

Macro Cross-References

• CPIAUCSL - Consumer Price Index for All Urban Consumers: All Items in U.S. City Average
• UNRATE - Unemployment Rate
• FEDFUNDS - Federal Funds Effective Rate
• CES0500000003 - Average Hourly Earnings of All Employees, Total Private
• DFEDTARU - Federal Funds Target Range - Upper Limit
• DFEDTARL - Federal Funds Target Range - Lower Limit
• DGS3MO - Market Yield on U.S. Treasury Securities at 3-Month Constant Maturity
• DGS2 - Market Yield on U.S. Treasury Securities at 2-Year Constant Maturity
• DGS10 - Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity
• DGS30 - Market Yield on U.S. Treasury Securities at 30-Year Constant Maturity
• T10Y2Y - 10-Year Treasury Constant Maturity Minus 2-Year Treasury Constant Maturity
• CPILFESL - Consumer Price Index for All Urban Consumers: All Items Less Food and Energy
• CPIUFDSL - Consumer Price Index for All Urban Consumers: Food
• CPIENGSL - Consumer Price Index for All Urban Consumers: Energy
• CUSR0000SAH1 - Consumer Price Index for All Urban Consumers: Shelter
• PCEPI - Personal Consumption Expenditures: Chain-type Price Index
• PCEPILFE - Personal Consumption Expenditures Excluding Food and Energy: Chain-type Price Index
• PPIACO - Producer Price Index by Commodity: All Commodities
• T10YIE - 10-Year Breakeven Inflation Rate
• U6RATE - Total Unemployed, Plus All Marginally Attached Workers Plus Total Employed Part Time for Economic Reasons
• PAYEMS - All Employees, Total Nonfarm
• CIVPART - Labor Force Participation Rate
• EMRATIO - Employment-Population Ratio
• UNEMPLOY - Unemployed
• CE16OV - Employment Level
• ICSA - Initial Claims
• JTSJOL - Job Openings: Total Nonfarm
• JTSQUR - Quits: Total Nonfarm
• GDPC1 - Real Gross Domestic Product
• A191RL1Q225SBEA - Real Gross Domestic Product: Percent Change from Preceding Period
• INDPRO - Industrial Production: Total Index
• TCU - Capacity Utilization: Total Index
• HOUST - New Privately-Owned Housing Units Started: Total Units
• PERMIT - New Privately-Owned Housing Units Authorized in Permit-Issuing Places: Total Units
• RSAFS - Advance Retail Sales: Retail Trade
• PCE - Personal Consumption Expenditures
• DSPIC96 - Real Disposable Personal Income
• PSAVERT - Personal Saving Rate
• M2SL - M2
• BOPGSTB - U.S. International Trade in Goods and Services: Balance
• MSPUS - Median Sales Price of Houses Sold for the United States
• HSN1F - New One Family Houses Sold: United States
• RHORUSQ156N - Homeownership Rate in the United States
• TTLCONS - Total Construction Spending: Total Construction in the United States
• RRVRUSQ156N - Rental Vacancy Rate in the United States
• TOTALSL - Total Consumer Credit Owned and Securitized
• REVOLSL - Revolving Consumer Credit Owned and Securitized
• DRCCLACBS - Delinquency Rate on Credit Card Loans, All Commercial Banks
• GDP - Gross Domestic Product
• GPDI - Gross Private Domestic Investment
• GCE - Government Consumption Expenditures and Gross Investment
• PCEC - Personal Consumption Expenditures
• NETEXP - Net Exports of Goods and Services
• GFDEBTN - Federal Debt: Total Public Debt
• GFDEGDQ188S - Federal Debt: Total Public Debt as Percent of Gross Domestic Product
• FYFSD - Federal Surplus or Deficit
• FGRECPT - Federal Government Current Receipts
• FGEXPND - Federal Government: Current Expenditures
• MANEMP - All Employees, Manufacturing
• USCONS - All Employees, Construction
• USTRADE - All Employees, Retail Trade
• USFIRE - All Employees, Financial Activities
• USGOVT - All Employees, Government
• AWHAETP - Average Weekly Hours of All Employees, Total Private
• DGORDER - Manufacturers' New Orders: Durable Goods
• NEWORDER - Manufacturers' New Orders: Nondefense Capital Goods Excluding Aircraft
• BUSINV - Total Business Inventories
• EXPGS - Exports of Goods and Services
• IMPGS - Imports of Goods and Services
• IR - Import Price Index (End Use): All Commodities
• PPIFIS - Producer Price Index by Commodity: Final Demand

Latest quarter (10-Q)

Latest 10-Q source: 0001670592-26-000028.

Extracted between Part I Item 2 and the next Item 3/4 or Part II heading after HTML sanitization. Confidence: high. Filing date: 2026-05-14. Report date: 2026-04-04.

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following discussion and analysis contains forward-looking statements within the meaning of the federal securities laws and should be read in conjunction with the disclosures we make concerning risks and other factors that may affect our business and operating results, including those described in more detail in Part I “Item 1A. Risk Factors” included in our Annual Report on Form 10-K for the year ended January 3, 2026. The information contained in this section should also be read in conjunction with our consolidated financial statements and related notes and the information contained elsewhere in this Report. See also “Cautionary Note Regarding Forward-Looking Statements” immediately prior to Part I, Item I in this Quarterly Report on Form 10-Q.

The terms “we,” “us,” “our,” “YETI,” and “the Company” as used herein, and unless otherwise stated or indicated by context, refer to YETI Holdings, Inc. and its subsidiaries.

Business Overview

Headquartered in Austin, Texas, YETI is a global designer, retailer, and distributor of innovative outdoor products. From coolers and drinkware to bags and apparel, YETI products are built to meet the unique and varying needs of diverse outdoor pursuits, whether in the remote wilderness, at the beach, or anywhere life takes you. By consistently delivering high-performing, exceptional products, we have built a strong following of brand loyalists throughout the world, ranging from serious outdoor enthusiasts to individuals who simply value products of uncompromising quality and design. We have an unwavering commitment to outdoor and recreation communities, and we are relentless in our pursuit of building superior products for people to confidently enjoy life outdoors and beyond.

We distribute our products through a balanced omni-channel platform, consisting of our wholesale and direct-to-consumer (“DTC”) channels. In our wholesale channel, we sell our products through select national and regional accounts and an assemblage of independent retail partners throughout the United States, Canada, Australia, New Zealand, the United Kingdom, Europe, and Japan, among others. We carefully evaluate and select retail partners that have an image and approach that are consistent with our premium brand and pricing. Our domestic national and regional specialty retailers include Dick’s Sporting Goods, REI, Academy Sports + Outdoors, Bass Pro Shops, Ace Hardware, Scheels, and Tractor Supply Company. In our international regions, our notable retailers include FGL Sports and SportChek in Canada, BCF and Rebel in Australia, and GO Outdoors in the United Kingdom. We sell our products in our DTC channel to customers through our websites and YETI Authorized on the Amazon Marketplace, as well as in our retail stores. Additionally, we offer customized products with licensed marks and original artwork primarily through our DTC channel, including our corporate sales channel, on our websites, and at select retail stores. Our corporate sales program offers customized products to corporate customers for a wide-range of events and activities and in certain instances may also offer products to re-sell.

Product Introductions and Updates

During the first quarter of 2026, within our Drinkware category, we expanded our bottles and mugs offerings with the launch of a new size of the Rambler Travel Bottle and the introduction of the redesigned Straw Mug 2.0 in two sizes. We continued to broaden our coffeeware and barware offerings with the launch of the Rambler Ceramic Stackable Lowball and the Rambler Ceramic Wine Tumbler. In our Coolers & Equipment category, we expanded our pursuit bags offerings with the introduction of the Skala Collection of Hiking Packs in eight sizes. Within our soft cooler bags offerings, we further expanded the Daytrip Collection with the launch of the Insulated Snack Box in two sizes and the Insulated Box. We also introduced new seasonal colorways across our Drinkware and Coolers & Equipment categories.

Macroeconomic Conditions

Our business is exposed to and impacted by macroeconomic factors, including but not limited to uncertainty surrounding inflationary pressures, consumer confidence and purchasing behaviors, foreign currency exchange rate fluctuations, geopolitical conflicts, and government actions and policies, including changes in interest rates, tax rates, and tariff rates. The impact of such conditions on our business and results of operations for 2026 remains uncertain. Such uncertainties are exacerbated by the ongoing conflict in the Middle East. Although we have not experienced material impacts to date, the ultimate future impact of such geopolitical conflict on factors such as freight rates, raw materials costs, and consumer spending are unknown.

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IEEPA Tariff Refunds

During 2025, the U.S. government implemented incremental tariffs on imports from many countries where our products are produced. In February 2026, the U.S. Supreme Court found unlawful the tariffs imposed under the International Emergency Economic Power Act (“IEEPA”). The ruling introduced the potential for importers of record, including us, to receive refunds on tariffs paid under the IEEPA. Although certain refund claims may now be submitted, significant uncertainty remains regarding the eligibility, timing and amount of any potential refunds. We estimate that we have paid approximately $66.5 million in tariffs under the IEEPA. The IEEPA tariff refunds may be subject to taxes and other adjustments or cause us to incur additional costs. Given the uncertainties, as of April 4, 2026, we determined that potential recovery of any funds was not probable. As such, we did not recognize a receivable and corresponding offset to expense related to the potential refund as of April 4, 2026. We will continue to evaluate new information and developments, and will recognize an asset or receivable as recovery becomes probable. In addition, even though the U.S. Supreme Court found unlawful the tariffs imposed under the IEEPA, the U.S. government has implemented and may implement new tariffs under other statutory authorities.

General

Components of Our Results of Operations

Net Sales. Net sales are comprised of wholesale channel sales to our retail partners and sales through our DTC channel. Net sales in both channels reflect the impact of product returns as well as discounts for certain sales programs or promotions.

We discuss the net sales of our products in our two primary categories: Coolers & Equipment and Drinkware. Our Coolers & Equipment category includes hard coolers, soft coolers, bags, outdoor equipment, and cargo, as well as accessories and replacement parts for these products. Our Drinkware category is primarily composed of our stainless-steel drinkware products and related accessories. In addition, our Other category is primarily comprised of ice substitutes and YETI-branded gear, such as shirts, hats, and other miscellaneous products.

Gross profit. Gross profit reflects net sales less cost of goods sold, which primarily includes the purchase cost of our products from our third-party contract manufacturers, inbound freight and duties, product quality testing and inspection costs, depreciation expense of our molds, tooling, and equipment, and the cost of customizing products. We calculate gross margin as gross profit divided by net sales. Our DTC channel generally generates higher gross margin than our wholesale channel due to differentiated pricing between these channels.

Selling, general, and administrative expenses. Selling, general, and administrative (“SG&A”) expenses consist primarily of marketing costs, employee compensation and benefits costs, including non-cash stock-based compensation, distribution and fulfillment costs, depreciation and amortization expense, and general and administrative expenses. Our distribution and fulfillment costs include costs of our third-party warehousing and logistics operations, outbound freight costs, costs of operating on third-party DTC marketplaces, and credit card processing fees. Certain distribution and fulfillment costs will vary as they are dependent on our sales volume and our channel mix. Our DTC channel variable SG&A costs are generally higher as a percentage of net sales than our wholesale channel distribution costs.

Fiscal Year. We have a 52- or 53-week fiscal year that ends on the Saturday closest in proximity to December 31, such that each quarterly period will be 13 weeks in length, except during a 53-week year when the fourth quarter will be 14 weeks. Our fiscal year ending January 2, 2027 (“2026”) is a 52-week period. The first quarter of our fiscal year 2026 ended on April 4, 2026, the second quarter ends on July 4, 2026, and the third quarter ends on October 3, 2026. Our fiscal year ended January 3, 2026 (“2025”) was a 53-week period. Unless otherwise stated, references to particular years, quarters, months and periods refer to our fiscal years and the associated quarters, months, and periods of those fiscal years. The unaudited condensed consolidated financial results presented herein represent the three months ended April 4, 2026 and March 29, 2025.

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Results of Operations

The discussion below should be read in conjunction with the following table and our unaudited condensed consolidated financial statements and related notes contained elsewhere in this Quarterly Report on Form 10-Q. The following table sets forth selected statement of operations data, and their corresponding percentage of net sales, for the periods indicated (dollars in thousands):

Three Months Ended

April 4, 2026

March 29, 2025

Statement of Operations

Net sales

$

380,414 

100 

%

$

351,128 

100 

%

Cost of goods sold

170,203 

45 

%

149,406 

43 

%

Gross profit

210,211 

55 

%

201,722 

57 

%

Selling, general, and administrative expenses

197,773 

52 

%

180,051 

51 

%

Operating income

12,438 

3 

%

21,671 

6 

%

Interest (expense) income, net

(1,117)

— 

%

308 

— 

%

Other income, net

979 

— 

%

1,376 

— 

%

Income before income taxes

12,300 

3 

%

23,355 

7 

%

Income tax expense

(2,449)

1 

%

(6,746)

2 

%

Net income

$

9,851 

3 

%

$

16,609 

5 

%

Comparison of the Three Months Ended April 4, 2026 and March 29, 2025

Three Months Ended

April 4,

2026

March 29,

2025

Change

(dollars in thousands)

$

%

Net sales

$

380,414 

$

351,128 

$

29,286 

8 

%

Gross profit

$

210,211 

$

201,722 

$

8,489 

4 

%

Gross margin (gross profit as a % of net sales)

55.3 

%

57.4 

%

(210) basis points

Selling, general, and administrative expenses

$

197,773 

$

180,051 

$

17,722 

10 

%

SG&A as a % of net sales

52.0 

%

51.3 

%

70 basis points

Net Sales

Net sales increased $29.3 million, or 8%, to $380.4 million for the three months ended April 4, 2026, compared to $351.1 million for the three months ended March 29, 2025.

Net sales in our channels were as follows:

•DTC channel net sales increased $0.6 million to $196.8 million, compared to $196.2 million in the prior year quarter, primarily due to growth across our YETI websites, Amazon Marketplace business, and YETI retail stores. This strength was offset by a decline in Corporate Sales, reflecting cautious purchasing behavior as well as a challenging growth compare in the prior year quarter. DTC channel mix was 52% in the first quarter of 2026, compared to 56% in the first quarter of 2025.

•Wholesale channel net sales increased $28.7 million, or 19%, to $183.6 million, compared to $154.9 million in the same period last year, driven by strong growth across the U.S. and our international regions, reflecting strong consumer demand.

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Net sales in our two primary product categories were as follows:

•Drinkware net sales increased by $11.3 milli

[Excerpt truncated for page length; source filing is linked above.]

Latest 10-K MD&A

Extracted between Item 7 and the next Item 7A/8 heading after HTML sanitization. Confidence: high. Filing date: 2026-02-27. Report date: 2026-01-03.

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

The following discussion and analysis contains forward-looking statements within the meaning of the federal securities laws, and should be read in conjunction with the disclosures we make concerning risks and other factors that may affect our business and operating results, including those set forth in Part I, Item 1A, “Risk Factors” of this Report. The information contained in this section should also be read in conjunction with our consolidated financial statements and related notes and the information contained elsewhere in this Report. See also “Forward-Looking Statements” immediately prior to Part I, Item 1, “Business” in this Report. A discussion of our results of operations and cash flows for the year ended December 28, 2024 compared to the year ended December 30, 2023 are included in Part II, Item 7. “Management’s Discussion and Analysis of Financial Condition and Results of Operations” of our Form 10-K for the year ended December 28, 2024, which was filed with the SEC on February 24, 2025.

Business Overview

Headquartered in Austin, Texas, YETI is a global designer, retailer, and distributor of innovative outdoor products. From coolers and drinkware to bags and apparel, YETI products are built to meet the unique and varying needs of diverse outdoor pursuits, whether in the remote wilderness, at the beach, or anywhere life takes you. By consistently delivering high-performing, exceptional products, we have built a strong following of brand loyalists throughout the world, ranging from serious outdoor enthusiasts to individuals who simply value products of uncompromising quality and design. We have an unwavering commitment to outdoor and recreation communities, and we are relentless in our pursuit of building superior products for people to confidently enjoy life outdoors and beyond.

We distribute our products through a balanced omni-channel platform, consisting of our wholesale and direct-to-consumer (“DTC”) channels. In our wholesale channel, we sell our products through select national and regional accounts and an assemblage of independent retail partners throughout the United States, Canada, Australia, New Zealand, the United Kingdom, Europe, and Japan, among others. We carefully evaluate and select retail partners that have an image and approach that are consistent with our premium brand and pricing. Our national and regional specialty retailers in the United States include Dick’s Sporting Goods, REI, Academy Sports + Outdoors, Bass Pro Shops, Ace Hardware, Scheels, and Tractor Supply Company. In our international regions, our notable retailers include FGL Sports and SportChek in Canada, BCF and Rebel in Australia, and GO Outdoors in the United Kingdom. We sell our products in our DTC channel to customers on our websites, through YETI Authorized on the Amazon Marketplace, as well as in our retail stores. Additionally, we offer customized products with licensed marks and original artwork primarily to our DTC channel, through our corporate sales program, on our websites, and at select retail stores, as well as certain wholesale partners. Our corporate sales program offers customized products to corporate customers for a wide-range of events and activities, and in certain instances may also offer products to re-sell.

Product Introductions and Updates

During the first quarter of 2025, we expanded our bag offerings with the launch of the new Ranchero backpack in two sizes and introduced new seasonal colorways across our Drinkware and Coolers & Equipment categories.

During the second quarter of 2025, we expanded our bottles and jugs offerings with the launch of the new Rambler Travel Bottle in two sizes and introduced the redesigned and improved Rambler Jug in two sizes. We continued the expansion of our tableware offerings with the launch of the new Rambler Insulated Bowls in six sizes and expanded our cookware offerings with the launch of a new size of the Cast Iron Skillet. In our Coolers & Equipment category, we expanded our hard cooler offerings with the redesigned Roadie 24, and expanded our outdoor living offerings with the launch of the new Hondo Beach Chair and a limited release of the Can Crusher. We continued the expansion of our bag offerings with the launch of the new Cayo backpack in two sizes and two new sizes of the Ranchero backpack. In our soft cooler bags offerings, we expanded the Daytrip Collection with the launch of the launch of the new Daytrip Lunchboxes in two sizes, the Daytrip Lunch Bag, and the Daytrip Tote Bag. We also introduced new seasonal colorways across our Drinkware and Coolers & Equipment categories.

During the third quarter of 2025, we expanded our coffeeware offerings with the launch of the Rambler Ceramic Mug Collection in two sizes, and introduced a new size of the Rambler Travel Bottle within our bottles offerings. We continued the expansion of our container offerings with the launch of the new Rambler Food Jars in two sizes. In our Coolers & Equipment category, we expanded our bags offerings with the introduction of a new size of the Cayo backpack. We also introduced new seasonal colorways across our Drinkware and Coolers & Equipment categories.

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During the fourth quarter of 2025, we expanded our bottles and jugs offerings with the launch of the Yonder Shaker Bottle in two sizes, the Silo Jug with Straw Cap in two sizes, and the Silo Jug with Chug Cap. We continued expansion of our mugs and tumbler offerings with the launch of the Rambler Travel Straw Mug in three sizes, the Rambler Junior Tumbler with Silicone Straw, and we introduced a new size of the Rambler Ceramic Stackable Cup within our coffeeware offerings. We also introduced a new size of the Rambler Food Jar within our containers offerings. We continued the expansion of our cookware offerings with the launch of the new Cast Iron Ranch Pan and a limited release of the new Carbon Steel Pan. In our Coolers & Equipment category, we expanded our outdoor living and cargo offerings with the introduction of the YETI Fire Pit and a smaller format LoadOut GoBox.

Acquisition

During the third quarter of 2025, we acquired certain assets, including designs, tooling, and intellectual property, related to the Helimix branded shaker bottle for $38.0 million in cash (“Helimix Acquisition”). During the fourth quarter of 2025, we showcased our speed-to-market with the launch of our Yonder Shaker Bottle, further advancing YETI’s expansion into the sport, health and wellness categories. This product launch was made possible, in part, by the Helimix Acquisition.

Macroeconomic Conditions

Our business is exposed to and impacted by macroeconomic factors, including but not limited to uncertainty surrounding inflationary pressures, consumer confidence and purchasing behaviors, foreign currency exchange rate fluctuations, geopolitical conflicts, and government actions and policies, including changes in interest rates, tax rates, and tariff rates. We experienced a challenging macroeconomic and consumer spending environment in 2025 that adversely impacted our results of operations. The impact of such conditions on us for 2026 remains uncertain.

During 2025, the U.S. government implemented incremental tariffs on imports from many countries. Most of our products are produced in countries that were subject to these tariffs. As a result, the cost to import our products into the United States increased. During 2025, we pursued a number of strategic options to mitigate the impact of tariffs. For example, in response to the elevated tariffs on imports from China announced in early 2025, we accelerated the diversification of our Drinkware manufacturing to additional countries beyond China. As a result, a majority of our Drinkware manufacturing capacity is now outside of China. However, these accelerated diversification efforts caused short-term supply chain disruptions in 2025, which impacted our ability to source certain products. These disruptions caused inventory constraints that adversely impacted sales in 2025.

On February 20, 2026, the U.S. Supreme Court invalidated tariffs imposed under the International Emergency Economic Power Act (the “IEEPA Decision”). There remains significant uncertainty regarding the implementation of the IEEPA Decision, including the processes that will govern refund claims, the timing of any potential refunds, and the ultimate amounts, if any, that we may recover. In addition, immediately following the IEEPA Decision, the U.S. government initiated new tariffs under alternative authorities, resulting in continued tariff exposure for many of our products. There remains significant uncertainty regarding the duration and scope of these newly initiated tariffs, whether the U.S. government will pursue additional trade actions or impose further tariffs, and the impact of such conditions on our business. Similar to our strategy in 2025, we will strive to mitigate the impact of tariffs by managing operating expenses, working capital and cash; negotiating with suppliers; evaluating pricing strategies; leveraging tariff exemptions where possible; and pursuing other supply chain optimization activities. However, the ultimate impact of tariffs on our business and results of operations in 2026 remains uncertain.

General

Components of Our Results of Operations

Net Sales. Net sales are comprised of wholesale channel sales to our retail partners and sales through our DTC channel. Net sales in both channels reflect the impact of product returns as well as discounts for certain sales programs or promotions.

We discuss the net sales of our products in our two primary categories: Coolers & Equipment and Drinkware. Our Coolers & Equipment category includes hard coolers, soft coolers, bags, outdoor equipment, and cargo, as well as accessories and replacement parts for these products. Our Drinkware category is primarily composed of our stainless-steel drinkware products and related accessories. In addition, our Other category is primarily comprised of ice substitutes and YETI-branded gear, such as shirts, hats, and other miscellaneous products.

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Table of Contents

Gross profit. Gross profit reflects net sales less cost of goods sold, which primarily includes the purchase cost of our products from our third-party contract manufacturers, inbound freight and duties, product receiving testing and inspection costs, depreciation expense of our molds, tooling, and equipment, and the cost of customizing products. We calculate gross margin as gross profit divided by net sales. Our DTC channel generally generates higher gross margin than our wholesale channel due to differentiated pricing between these channels.

Selling, general, and administrative expenses. Selling, general, and administrative (“SG&A”) expenses consist primarily of marketing costs, employee compensation and benefits costs, including non-cash stock-based compensation, distribution and fulfillment costs, depreciation and amortization expense, and general corporate infrastructure expenses. Our distribution and fulfillment costs include costs of our third-party warehousing and logistics operations, outbound freight costs, costs of operating on third-party DTC marketplaces, and credit card processing fees. Certain distribution and fulfillment costs will vary as they are dependent on our sales volume and our channel mix. Our DTC channel variable SG&A costs are generally higher as a percentage of net sales than our wholesale channel distribution costs.

Fiscal Year. We have a 52- or 53-week fiscal year that ends on the Saturday closest in proximity to December 31, such that each quarterly period will be 13 weeks in length, except during a 53-week year when the fourth quarter will be 14 weeks. Our fiscal year 2025 ended on January 3, 2026 and was 53 weeks. Our fiscal years 2024 and 2023 ended on December 28, 2024 and December 30, 2023, respectively, and were 52 weeks each. Unless otherwise stated, references to particular years, quarters, months and periods refer to our fiscal years ended in December and the associated quarters, months, and periods of those fiscal years.

Results of Operations

The discussion below should be read in conjunction with the following table and our consolidated financial statements and related notes contained elsewhere in this Report. The following table sets forth selected statement of operations data, and their corresponding percentage of net sales, for the periods indicated (dollars in thousands):

Fiscal Year Ended

January 3, 2026

December 28, 2024

Statement of Operations

Net sales

$

1,868,494 

100 

%

$

1,829,873 

100 

%

Cost of goods sold

795,810 

43 

%

766,589 

42 

%

Gross profit

1,072,684 

57 

%

1,063,284 

58 

%

Selling, general, and administrative expenses

859,127 

46 

%

817,908 

45 

%

Operating income

213,557 

11 

%

245,376 

13 

%

Interest (expense) income

(443)

— 

%

660 

— 

%

Other income (expense), net

7,167 

— 

%

(13,188)

1 

%

Income before income taxes

220,281 

12 

%

232,848 

13 

%

Income tax expense

(54,894)

3 

%

(57,159)

3 

%

Net income

$

165,387 

9 

%

$

175,689 

10 

%

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Year Ended January 3, 2026 Compared to Year Ended December 28, 2024

Fiscal Year Ended

January 3,

2026

December 28,

2024

Change

(dollars in thousands)

$

%

Net sales

$

1,868,494 

$

1,829,873 

$

38,621 

2 

%

Gross profit

1,072,684 

1,063,284 

9,400 

1 

%

Gross margin (gross profit as a % of net sales)

57.4 

%

58.1 

%

(70) basis points

Selling, general, and administrative expenses

$

859,127 

$

817,908 

$

41,219 

5 

%

SG&A as a % of net sales

46.0 

%

44.7 

%

130 basis points

Net Sales

Net sales increased $38.6 million, or 2%, to $1,868.5 million in 2025 from $1,829.9 million in 2024. Net sales included an unfavorable impact of $2.3 million in 2025 and $8.8 million in 2024 related to recall reserve adjustments.

Net sales in our channels were as follows:

•DTC channel net sales increased $40.2 million, or 4%, to $1,127.8 million in 2025 from $1,087.6 million in 2024, primarily driven by growth in our Amazon Marketplace business, corporate sales and YETI retail stores, partially offset by a decline in sales on our U.S. DTC channel net sales included an unfavorable impact of $2.3 million in 2025 and $8.8 million in 2024 related to recall reserve adjustments. YETI website. Our DTC channel represented 60% and 59% of total net sales in 2025 and 2024, respectively.

•Net sales in our wholesale channel decreased $1.6 million to $740.7 million in 2025 from $742.3 million in 2024. Wholesale channel net sales included an unfavorable impact of $0.6 million in 2024 related to recall reserve adjustments. The decrease in our wholesale channel sales was primarily due to a decline in Drinkware, partially offset by growth in Coolers & Equipment. Our wholesale channel represented 40% and 41% of total net sales in 2025 and 2024, respectively.

Net sales in our two primary product categories were as follows:

•Drinkware net sales decreased $8.4 million, or 1%, to $1,085.8 million in 2025 from $1,094.2 million in 2024. Drinkware growth in our international regions was more than offset by a decline in our U.S. region, reflecting a promotional market environment, a cautious wholesale buying environment, and inventory constraints driven by our supply chain transition.

•Coolers & Equipment net sales increased $49.9 million, or 7%, to $748.5 million in 2025 from $698.6 million in 2024. Coolers & Equipment net sales included an unfavorable impact of $2.3 million in 2025 and $8.8 million in 2024 related to recall reserve adjustments. The increase in Coolers & Equipment net sales was primarily driven by strong performance in bags, soft coolers, and cargo.

Net sales in our geographical regions were as follows:

•U.S. net sales decreased $16.3 million, or 1%, to $1,474.1 million in 2025 from $1,490.5 million in 2024. U.S. net sales included an unfavorable impact of $2.3 million in 2025 and $8.8 million in 2024 related to recall reserve adjustments.

•International net sales increased $54.9 million, or 16%, to $394.4 million in 2025 from $339.4 million in 2024. The increase in international sales reflected growth across all regions, led by Europe and Australia, as well as Japan, which launched in the second quarter of 2025. Net sales in international locations represented 21% and 19% of total net sales in 2025 and 2024, respectively.

Gross Profit

Gross profit increased $9.4 million, or 1%, to $1,072.7 million in 2025 from $1,063.3 million in 2024. Gross margin decreased 70 basis points to 57.4% in 2025 from 58.1% in 2024. Gross profit included an unfavorable impact of $2.4 million in 2025 and $8.1 million in 2024 related to recall reserve adjustments. The decrease in gross margin was primarily driven by:

•higher tariff costs, which unfavorably impacted gross margin by 230 basis points; and

•a decrease in the mix of Drinkware net sales, which unfavorably impacted gross margin by 30 basis points.

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These were partially offset by:

•lower product costs, which favorably impacted gross margin by 90 basis points;

•the impact of selective price increases on certain drinkware products implemented during the second quarter of 2025, which favorably impacted gross margin by 40 basis points;

•the absence in the current year quarter of the amortization of inventory fair value step-up in connection with the Mystery Ranch acquisition, which favorably impacted gross margin by 30 basis points;

•the lower impact of the recall reserves adjustments, which favorably impacted gross margin by 20 basis points; and

•other impacts, which favorably impacted gross margin by 10 basis points.

Selling, General, and Administrative Expenses

SG&A expenses increased by $41.2 million, or 5%, to $859.1 million in 2025 from $817.9 million in 2024. As a percentage of net sales, SG&A expenses increased 130 basis points to 46.0% in 2025 from 44.7% in 2024. SG&A expenses included an unfavorable impact of $0.5 million in 2025 and a favorable impact of $1.8 million in 2024 related to recall reserve adjustments. The increase in SG&A expenses resulted from:

•an increase in general and administrative expenses of $23.8 million (increasing SG&A as a percent of sales by 110 basis points) mainly due to growth investments in technology and facilities as well as higher advisory fees, partially offset by lower asset impairments;

•an increase in employee compensation and benefits of $11.1 million (increasing SG&A as a percent of sales by 40 basis points) mainly due to non-cash stock-based compensation expense and investments in headcount to support future growth;

•an increase in depreciation and amortization expense of $4.7 million (increasing SG&A as a percent of sales by 20 basis points); and

•an increase in marketing and advertising expenses of $3.9 million (increasing SG&A as a percent of sales by 10 basis points).

The increase in SG&A expenses was partially offset by:

•a decrease in distribution and fulfillment expenses of $1.0 million (decreasing SG&A as a percent of sales by 40 basis points) mainly due to lower outbound freight fees, partially offset by higher online marketplace fees associated with higher Amazon Marketplace net sales and higher third-party logistics fees; and

•the lower impact of the recall reserves adjustments, which favorably impacted SG&A expenses by $1.3 million (decreasing SG&A as a percent of sales by 10 basis points).

Non-Operating Expenses

Interest expense, net was $0.4 million in 2025. Interest income, net was $0.7 million in 2024. The change versus the prior year period was primarily due to a decrease in interest income.

Other income, net was $7.2 million in 2025. Other expense, net was $13.2 million in 2024. The change versus the prior year period was primarily due to unrealized foreign currency gains on intercompany balances in the current period versus unrealized foreign currency losses on intercompany balances in the prior year.

Income tax expense was $54.9 million in 2025, compared to $57.2 million in 2024. Our effective tax rate was 24.9% and 24.5% for 2025 and 2024, respectively. The decrease in income tax expense was primarily due to lower income before income taxes.

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Liquidity and Capital Resources

General

Our cash requirements have principally been for working capital purposes, long-term debt repayments, and capital expenditures. We fund our working capital and our capital expenditure requirements from cash flows from operating activities, cash on hand, and borrowings available under our Revolving Credit Facility. Pursuant to our Share Repurchase Program described below, we use cash to repurchase shares of our common stock. We believe that our current operating performance, operating plan, our strong cash position, and borrowings available under our Revolving Credit Facility will be sufficient to satisfy our liquidity needs and capital expenditure requirements for at least the next twelve months and the foreseeable future.

Current Liquidity

As of January 3, 2026, we had a cash balance of $188.3 million, $137.6 million of working capital (excluding cash), and $300.0 million of borrowings available under the Revolving Credit Facility.

Credit Facility

Our Credit Facility provides for a $300.0 million Revolving Credit Facility and an $84.4 million term loan (“Term Loan A”).

On March 31, 2023, we amended the Credit Facility, leaving the material terms of the Credit Facility substantially unchanged, with the exception of certain changes to implement the replacement of London Interbank Offered Rate (“LIBOR”) with the Secured Overnight Financing Rate (“SOFR”) as the reference rate therein.

On June 22, 2023, we further amended the Credit Facility, which extended the maturity date of both the Term Loan A and the Revolving Credit Facility from December 17, 2024 to June 22, 2028; refinanced and replaced the existing Term Loan A in full with a new $84.4 million Term Loan A; and increased the commitments under the Revolving Credit Facility from $150.0 million to $300.0 million. As a result of the amendment, we recognized a $0.3 million loss on modification and extinguishment of debt and we capitalized $2.8 million of new lender and third-party fees in the second quarter of 2023.

On February 26, 2024, we further amended the Credit Facility, leaving the material terms of the Credit Facility substantially unchanged, with the exception of a definitional update and a change to permit a Hedging Agreement (as defined in the Credit Facility) entered into in connection with an accelerated share purchase program under the Credit Facility.

At January 3, 2026, we had $73.8 million principal amount of indebtedness outstanding under the Term Loan A and no outstanding borrowings under the Revolving Credit Facility. The weighted average interest rate for borrowings under Term Loan A was 6.11% during the year ended January 3, 2026.

The Credit Facility requires us to comply with certain covenants, including financial covenants regarding our total net leverage ratio and interest coverage ratio. Fluctuations in these ratios may increase our interest expense. Failure to comply with these covenants and certain other provisions of the Credit Facility, or the occurrence of a change of control, could result in an event of default and an acceleration of our obligations under the Credit Facility or other indebtedness that we may incur in the future. At January 3, 2026, we were in compliance with all covenants and expect to remain in compliance with all covenants under the Credit Facility.

Share Repurchase Program

On February 1, 2024, our Board of Directors authorized the repurchase of up to $300.0 million of YETI’s common stock (the “Share Repurchase Program”), excluding fees, commissions, and excise tax due under the Inflation Reduction Act of 2022. Repurchases under the Share Repurchase Program may be made from time to time at prevailing prices in the open market, through various methods, including, but not limited to, open market, privately negotiated, or accelerated share repurchase transactions. Repurchases under the Share Repurchase Program may also be made pursuant to a plan adopted under Rule 10b5-1 promulgated under the Securities Exchange Act of 1934, as amended (the “Exchange Act”). The timing, manner, price, and actual amount of share repurchases will be determined by management based on various factors, including, but not limited to, stock price, economic and market conditions, other capital allocation needs and opportunities, and corporate and regulatory considerations. YETI has no obligation to repurchase any amount of our common stock, and such repurchases may be suspended or discontinued at any time.

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As part of the Share Repurchase Program, on February 27, 2024, we entered into an accelerated share repurchase agreement (the “February ASR Agreement”) with Goldman Sachs & Co. LLC (“Goldman Sachs”) to repurchase $100.0 million of YETI’s common stock. Pursuant to the February ASR Agreement, we made a payment of $100.0 million to Goldman Sachs and received an initial delivery of 1,998,501 shares of our common stock. We received a final delivery of an additional 642,674 shares on April 25, 2024. The February ASR Agreement resulted in the total repurchase of 2,641,175 shares.

In addition, as part of the Share Repurchase Program, on November 12, 2024, we entered into a second accelerated share repurchase agreement (the “November ASR Agreement”) with Goldman Sachs to repurchase an additional $100.0 million of YETI’s common stock. Pursuant to the November ASR Agreement, we made a payment of $100.0 million to Goldman Sachs and received an initial delivery of 1,933,301 shares of YETI’s common stock. We received a final delivery of an additional 551,955 shares on January 6, 2025. The November ASR resulted in the total repurchase of 2,485,256 shares.

During the first quarter of 2025, our Board of Directors approved a $350.0 million increase to the Share Repurchase Program authorization, for a total of $450.0 million available under the Share Repurchase Program. In 2025, we repurchased 8,157,674 shares of YETI’s common stock on the open market for approximately $297.6 million, at an average repurchase price of $36.49 per share. All common stock that was repurchased in 2025 is held as treasury stock.

See Note 11-Stockholders’ Equity of the Consolidated Financial Statements for additional information about the Share Repurchase Program.

Material Cash Requirements

For 2026, we expect capital expenditures for property and equipment to be between $60.0 million and $70.0 million, primarily to support investments in technology, new product innovation, and our supply chain.

The following table summarizes current and long-term material cash requirements for contractual and other obligations as of January 3, 2026 (in thousands):

Material Cash Requirements

Total

2026

2027

2028

2029

2030

Thereafter

Long-term debt principal payment

$

73,828 

$

4,219 

$

4,219 

$

65,390 

$

— 

$

— 

$

— 

Interest

2,884 

1,248 

1,175 

461 

— 

— 

— 

Operating lease obligations

206,409 

21,119 

23,596 

24,224 

23,367 

23,241 

90,862 

Finance leases

1,221 

973 

142 

106 

— 

— 

— 

Other non-cancellable agreements(1)

206,010 

83,002 

44,722 

37,813 

29,435 

10,722 

316 

Total

$

490,352 

$

110,561 

$

73,854 

$

127,994 

$

52,802 

$

33,963 

$

91,178 

_________________________________________

(1)We have entered into commitments for service and maintenance agreements related to our management information systems, distribution contracts, advertising, sponsorships, and licensing agreements.

The table of our material cash requirements above excludes unrecognized tax benefits as we are unable to reasonably predict the timing of settlement of liabilities, if any, related to unrecognized tax benefits. As of January 3, 2026, we had unrecognized tax benefits of $22.1 million.

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Cash Flows from Operating, Investing and Financing Activities

The following table summarizes our cash flows from operating, investing and financing activities for the periods indicated (in thousands):

Fiscal Year Ended

January 3, 2026

December 28, 2024

Cash flows provided by (used in):

Operating activities

$

254,737 

$

261,386 

Investing activities

(101,839)

(131,448)

Financing activities

(321,392)

(209,217)

Operating Activities

Cash flows related to operating activities are dependent on net income, non-cash adjustments to net income, and changes in working capital. The decrease in cash provided by operating activities in 2025 compared to 2024 was primarily due a decrease in cash flows from certain changes in working capital, partially offset by an increase in net income, excluding non-cash expenses.

Investing Activities

The decrease in cash used in investing activities in 2025 compared to 2024 was primarily due to lower purchases of property and equipment and lower cash paid for acquisitions in the current year.

Financing Activities

The increase in cash used in financing activities in 2025 compared to 2024 was primarily due to higher repurchases of common stock.

Critical Accounting Policies and Estimates

Our discussion and analysis of our financial condition and results of operations are based upon our consolidated financial statements, which have been prepared in accordance with GAAP. In preparing the consolidated financial statements, we make estimates and judgments that affect the reported amounts of assets, liabilities, sales, expenses, and related disclosure of contingent assets and liabilities. We re-evaluate our estimates on an on-going basis. Our estimates are based on historical experience and on various other assumptions that we believe to be reasonable under the circumstances. Because of the uncertainty inherent in these matters, actual results may differ from these estimates and could differ based upon other assumptions or conditions.

See Note 1 of the Notes to Consolidated Financial Statements for our significant accounting policies. The following describes significant judgments and estimates used in the application of these policies. Within the context of these critical accounting policies, we are not currently aware of any reasonably likely events or circumstances that would result in materially different amounts being reported. 

Revenue Recognition

Revenue transactions associated with the sale of YETI coolers, equipment, drinkware, apparel and accessories comprise a single performance obligation, which consists of the sale of products to customers either through our wholesale or DTC channels. Revenue is recognized when performance obligations are satisfied through the transfer of control of promised goods to the customers, based on the terms of sale. The transfer of control typically occurs at a point in time based on consideration of when the customer has an obligation to pay for the goods, and physical possession of, legal title to, and the risks and rewards of ownership of the goods has been transferred, and the customer has accepted the goods. Revenue from wholesale transactions is generally recognized at the time products are shipped based on contractual terms with the customer. Revenue from our DTC channel is generally recognized at the point of sale in our retail stores and at the time products are shipped for e-commerce transactions and corporate sales based on contractual terms with the customer.

Revenue is recognized net of estimates of variable consideration, including product returns, customer discounts and allowances, sales incentive programs, and miscellaneous claims from customers. We determine these estimates based on contract terms, evaluations of historical experience, anticipated trends, and other factors. The actual amount of customer returns and customer allowances, which is inherently uncertain, may differ from our estimates.

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The duration of contractual arrangements with our customers is typically less than 1 year. Payment terms with wholesale customers vary depending on creditworthiness and other considerations, with the most common being net 30 days. Payment is due at the time of sale for retail store transactions and at the time of shipment for e-commerce transactions.

Certain products that we sell include a limited warranty which does not meet the definition of a performance obligation within the context of the contract. Product warranty costs are estimated based on historical and anticipated trends and are recorded as cost of goods sold at the time revenue is recognized.

We elected to account for shipping and handling as fulfillment activities, and not as separate performance obligations. Shipping and handling fees billed to customers are included in net sales. All shipping and handling activity costs are recognized as selling, general and administrative expenses at the time the related revenue is recognized. Sales taxes collected from customers and remitted directly to government authorities are excluded from net sales and cost of goods sold.

Our terms of sale provide limited return rights. We may accept, and have at times accepted, returns outside our terms of sale at our sole discretion. We may also, at our sole discretion, provide our retail partners with sales discounts and allowances. We record estimated sales returns, discounts, and miscellaneous customer claims as reductions to net sales at the time revenues are recorded. We base our estimates upon historical experience and trends, and upon approval of specific returns or discounts. Actual returns and discounts in any future period are inherently uncertain and thus may differ from our estimates. If actual or expected future returns and discounts were significantly greater or lower than the reserves we had established, we would record a reduction or increase to net sales in the period in which we made such determination. A 10% change in our estimated reserve for sales returns, discounts, and miscellaneous claims for 2025 would have impacted net sales by $1.6 million.

Product Recall Reserves

In January 2023, we notified the U.S. Consumer Product Safety Commission (“CPSC”) of a potential safety concern regarding the magnet-lined closures of our Hopper M30 Soft Cooler, Hopper M20 Soft Backpack Cooler, and SideKick Dry gear case (the “affected products”). In March 2023, in collaboration with the CPSC, we announced separate voluntary recalls of the affected products, which we refer to as the “voluntary recalls” herein unless otherwise indicated and subsequently began processing recall claims and returns. As a result of the voluntary recalls, we established a reserve as of December 31, 2022 for expected future returns and the estimated cost of recall remedies for consumers with affected products.

We establish reserves for the estimated costs of a product recall when circumstances giving rise to the recall become known and when such costs are probable and estimable. As a result of the voluntary recalls, we established a reserve for expected future returns and the estimated cost of recall remedies for consumers with affected products. Estimating the cost of recall remedies required significant judgment and is primarily based on (i) expected consumer participation rates; and (ii) the estimated costs of the consumer’s elected remedy in the proposed voluntary recall, including estimated cost of offered product replacements, logistics costs and other recall-related costs. We reevaluate these assumptions each period, and the related reserves may be adjusted when factors indicate that the reserve is either not sufficient to cover or exceeds the estimated product recall expenses. The ultimate impact from the approved voluntary recalls could differ materially from these estimates. The reserve for the estimated product recall expenses of $5.4 million and $12.1 million is included within accrued expenses and other current liabilities on our consolidated balance sheet as of January 3, 2026 and December 28, 2024, respectively.

Business Combinations

We account for business combinations using the acquisition method of accounting. We allocate the purchase consideration to the identifiable assets acquired and liabilities assumed in a business combination based on their acquisition-date fair values. We use our best estimates and assumptions to determine the fair value of tangible and intangible assets acquired and liabilities assumed, as well as the uncertain tax positions and tax-related valuation allowances that are initially recorded in connection with a business combination. These estimates are reevaluated and adjusted, if needed, during the measurement period of up to one year from the acquisition date, and are recorded as adjustments to goodwill. Any adjustments to the acquired assets and liabilities assumed that are identified subsequent to the measurement period are recorded in earnings.

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Inventory

Inventories are comprised primarily of finished goods and are carried at the lower of cost (weighted-average cost method) or market (net realizable value). We make ongoing estimates relating to the net realizable value of inventories based upon our assumptions about future demand and market conditions. If the estimated net realizable value is less than cost, we reflect the lower value of that inventory. This methodology recognizes inventory exposures at the time such losses are identified rather than at the time the inventory is actually sold. Due to customer demand and inventory constraints, we have not historically taken material adjustments to the carrying value of our inventory.

Our inventory valuation reflects adjustments for anticipated inventory losses that have occurred since the last physical inventory. We estimate inventory shrinkage based on historical trends from physical inventory counts and cycle counts. We perform physical inventory counts and cycle counts throughout the year and adjust the shrink provision accordingly. Historically, physical inventory shrinkage has not been significant.

Valuation of Goodwill and Indefinite-Lived Intangible Assets

Goodwill and intangible assets are recorded at cost, or at their estimated fair values at the date of acquisition. We review goodwill and indefinite-lived intangible assets for impairment annually or whenever events or changes in circumstances indicate the carrying amount may be impaired. In conducting our annual impairment test, we first review qualitative factors to determine whether it is more likely than not that the fair value of the asset, or reporting units, is less than its carrying amount. If factors indicate that the fair value is less than its carrying amount, we perform a quantitative assessment, analyzing the expected present value of future cash flows to quantify the amount of impairment, if any. Based on our qualitative assessment performed during the fourth quarter of 2025, we determined that it is not more likely than not that the fair value of each reporting unit is lower than its carrying value; therefore, the quantitative impairment test was not required. We did not record any goodwill or indefinite-lived intangible assets impairment charges during the years ended January 3, 2026, December 28, 2024 and December 30, 2023.

Valuation of Long-Lived Assets

We assess the recoverability of our long-lived assets, which include property and equipment, operating lease right-of-use-assets, and definite-lived intangible assets, for impairment whenever events or changes in circumstances indicate the carrying amount of such assets may not be recoverable. An impairment loss on our long-lived assets exists when the estimated undiscounted cash flows expected to result from the use of the asset and its eventual disposition are less than its carrying amount. If the carrying amount exceeds the sum of the undiscounted cash flows, an impairment charge is recognized based on the amount by which the carrying amount of the assets exceeds the estimated fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount or estimated fair value less costs to sell.

Income Taxes

We are subject to taxation in the United States, as well as in various state and foreign jurisdictions. The determination of our provision for income taxes requires significant judgment, the use of estimates, and the interpretation and application of complex tax laws. On an interim basis, we estimate our effective tax rate for the full fiscal year. This estimated annual effective tax rate is then applied to the year-to-date income before income taxes, excluding infrequently occurring or unusual items, to determine the year-to-date income tax expense. The income tax effects of infrequent or unusual items are recognized in the interim period in which they occur. As the fiscal year progresses, we continually refine our estimate based upon actual events and earnings by jurisdiction during the year. This continual estimation process periodically results in a change to our expected effective tax rate for the fiscal year. When this occurs, we adjust the income tax provision during the quarter in which the change in estimate occurs.

Tax filing positions are evaluated, and we recognize the largest amount of tax benefit that is more likely than not to be sustained upon examination by the taxing authorities based on the technical merits of the tax position. On a quarterly basis, we evaluate the probability that a tax position will be effectively sustained and the appropriateness of the amount recognized for uncertain tax positions based on factors including changes in facts or circumstances, changes in tax law, and audit activity. Changes in our assessment may result in the recognition of a tax benefit or an additional charge to the tax provision in the period our assessment changes. We recognize interest and penalties related to unrecognized tax benefits in the provision for income taxes in the consolidated statements of operations.

Recent Accounting Pronouncements 

For a description of recent accounting pronouncements, see “Recently Adopted Accounting Pronouncements” and “Recent Accounting Guidance Not Yet Adopted” in Note 1 of the Notes to Consolidated Financial Statements.

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