0001104659-22-000903 | S-1 | XBRL Viewer

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Document and Entity Information	9 Months Ended
Document and Entity Information	Oct. 02, 2021
Document and Entity Information [Abstract]
Document Type	S-1
Entity Registrant Name	Latham Group, Inc.
Entity Filer Category	Non-accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Central Index Key	0001833197
Amendment Flag	false

Consolidated Balance Sheets $ in Thousands	Dec. 31, 2019 USD ($)
Current assets:
Cash	$ 56,655
Trade receivables, net	31,427
Inventories, net	35,611
Prepaid expenses and other current assets	3,998
Total current assets	127,691
Property and equipment, net	37,845
Deferred tax assets	206
Goodwill	101,672
Intangible assets, net	258,297
Total assets	525,711
Current liabilities:
Accounts payable	12,093
Current maturities of long-term debt	6,891
Accrued expenses and other current liabilities	22,233
Contingent consideration liability	8,978
Total current liabilities	50,195
Long-term debt, net of discount and current portion	216,332
Deferred income tax liabilities, net	60,008
Liability for uncertain tax positions	5,075
Other long-term liabilities	306
Total liabilities	331,916
Commitments and contingencies
Stockholders' equity:
Common stock, $0.0001 par value; 500,000,000 shares authorized as of December 31, 2020 and 2019; 118,854,249 and 96,498,943 shares issued and outstanding as of December 31, 2020 and 2019, respectively	10
Additional paid-in capital	196,474
(Accumulated deficit) retained earnings	(2,218)
Accumulated other comprehensive income (loss)	(471)
Total stockholders' equity	193,795
Total liabilities and stockholders' equity	$ 525,711

Consolidated Balance Sheets (Parenthetical) - $ / shares	Oct. 02, 2021	Apr. 22, 2021	Apr. 13, 2021	Dec. 31, 2020	Dec. 31, 2019
Consolidated Balance Sheets
Common stock, par value	$ 0.0001	$ 0.0001	$ 0.0001	$ 0.0001	$ 0.0001
Common stock, shares authorized	900,000,000	900,000,000	500,000,000	500,000,000	500,000,000
Common stock, shares issued	119,849,589			118,854,249	96,498,943
Common stock, shares outstanding	119,849,589			118,854,249	96,498,943

Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended						9 Months Ended		12 Months Ended
	Oct. 02, 2021	Jul. 03, 2021	Apr. 03, 2021	Sep. 26, 2020	Jun. 27, 2020	Mar. 28, 2020	Oct. 02, 2021	Sep. 26, 2020	Dec. 31, 2020	Dec. 31, 2019
Consolidated Statements of Operations
Net sales							$ 491,592	$ 291,468	$ 403,389	$ 317,975
Cost of sales							329,805	186,699	260,616	219,819
Gross profit							161,787	104,769	142,773	98,156
Selling, general and administrative expense							170,532	50,888	85,527	57,388
Amortization							16,560	12,173	17,347	15,643
(Loss) income from operations							(25,305)	41,708	39,899	25,125
Other expense (income):
Interest expense							20,843	13,633	18,251	22,639
Other (income) expense , net							(3,887)	1,121	(1,111)	(300)
Total other expense, net							16,956	14,754	17,140	22,339
Earnings from equity method investment							1,808
(Loss) income before income taxes							(40,453)	26,954	22,759	2,786
Income tax expense							15,908	8,251	6,776	(4,671)
Net (loss) income	$ (11,296)	$ (53,598)	$ 8,533	$ 17,740	$ 16,414	$ (15,451)	$ (56,361)	$ 18,703	$ 15,983	$ 7,457
Net income per share
Basic							$ (0.51)	$ 0.19	$ 0.16	$ 0.08
Diluted							$ (0.51)	$ 0.19	$ 0.16	$ 0.08
Weighted-average common shares outstanding-basic and diluted
Basic							110,121,240	96,665,708	101,606,966	95,032,265
Diluted							110,121,240	97,122,885	102,602,738	95,400,528

Consolidated Statements of Comprehensive Income $ in Thousands	12 Months Ended
	Dec. 31, 2019 USD ($)
Consolidated Statements of Comprehensive Income
Net (loss) income	$ 7,457
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments	(664)
Benefit pension plan adjustments	(6)
Total other comprehensive income (loss), net of tax	(670)
Comprehensive (loss) income	$ 6,787

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

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+ Details

Consolidated Statements of Stockholders' Equity - USD ($)	Common Stock	Additional Paid-in Capital	(Accumulated Deficit) Retained Earnings Cumulative Effect, Period of Adoption, Adjustment	(Accumulated Deficit) Retained Earnings	Accumulated Other Comprehensive Income (Loss)	Cumulative Effect, Period of Adoption, Adjustment	Total
Balance, beginning of period at Dec. 31, 2018	$ 10,000	$ 188,049,000		$ (7,978,000)	$ 199,000		$ 180,280,000
Balance, beginning of period (in shares) at Dec. 31, 2018	92,925,353
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net (loss) income				7,457,000			7,457,000
Foreign currency translation adjustments					(664,000)		(664,000)
Issuance of common stock		7,817,000					$ 7,817,000
Issuance of common stock (in shares)	3,673,677						3,548,568
Defined benefit pension plan adjustment					(6,000)		$ (6,000)
Capital contribution from parent			$ (1,697,000)			$ (1,697,000)
Repurchase and retirement of treasury stock		(200,000)					$ (200,000)
Repurchase and retirement of treasury stock (in shares)	(100,087)						100,087
Stock-based compensation expense		808,000					$ 808,000
Balance, end of period at Dec. 31, 2019	$ 10,000	196,474,000		(2,218,000)	(471,000)		193,795,000
Balance, end of period (in shares) at Dec. 31, 2019	96,498,943
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net (loss) income				(15,451,000)			(15,451,000)
Foreign currency translation adjustments					(1,938,000)		(1,938,000)
Repurchase and retirement of treasury stock		(400,000)					(400,000)
Repurchase and retirement of treasury stock (in shares)	200,173
Stock-based compensation expense		224,000					224,000
Balance, end of period at Mar. 28, 2020	$ 10,000	196,298,000		(17,669,000)	(2,409,000)		176,230,000
Balance, end of period (in shares) at Mar. 28, 2020	96,298,770
Balance, beginning of period at Dec. 31, 2019	$ 10,000	196,474,000		(2,218,000)	(471,000)		193,795,000
Balance, beginning of period (in shares) at Dec. 31, 2019	96,498,943
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net (loss) income							$ 18,703,000
Issuance of common stock (in shares)							758,694
Balance, end of period at Sep. 26, 2020	$ 10,000	200,163,000		16,485,000	(67,000)		$ 216,591,000
Balance, end of period (in shares) at Sep. 26, 2020	97,187,596
Balance, beginning of period at Dec. 31, 2019	$ 10,000	196,474,000		(2,218,000)	(471,000)		193,795,000
Balance, beginning of period (in shares) at Dec. 31, 2019	96,498,943
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net (loss) income				15,983,000			15,983,000
Foreign currency translation adjustments					2,825,000		2,825,000
Issuance of common stock	$ 2,000	65,551,000					$ 65,553,000
Issuance of common stock (in shares)	21,871,850						758,694
Repurchase and retirement of treasury stock		(582,000)					$ (582,000)
Repurchase and retirement of treasury stock (in shares)	(275,238)						275,238
Contingent consideration settlement	$ 758,694	2,208,000					$ 2,208,000
Stock-based compensation expense		1,827,000					1,827,000
Balance, end of period at Dec. 31, 2020	$ 12,000	265,478,000		13,765,000	2,354,000		281,609,000
Balance, end of period (in shares) at Dec. 31, 2020	118,854,249
Balance, beginning of period at Mar. 28, 2020	$ 10,000	196,298,000		(17,669,000)	(2,409,000)		176,230,000
Balance, beginning of period (in shares) at Mar. 28, 2020	96,298,770
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net (loss) income				16,414,000			16,414,000
Foreign currency translation adjustments					2,295,000		2,295,000
Repurchase and retirement of treasury stock		(176,000)					(176,000)
Repurchase and retirement of treasury stock (in shares)	75,065
Stock-based compensation expense		240,000					240,000
Balance, end of period at Jun. 27, 2020	$ 10,000	196,362,000		(1,255,000)	(114,000)		195,003,000
Balance, end of period (in shares) at Jun. 27, 2020	96,223,705
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net (loss) income				17,740,000			17,740,000
Foreign currency translation adjustments					47,000		47,000
Issuance of common stock		615,000					615,000
Issuance of common stock (in shares)	205,197
Contingent consideration settlement		2,208,000					2,208,000
Stock-based compensation expense		978,000					978,000
Balance, end of period at Sep. 26, 2020	$ 10,000	200,163,000		16,485,000	(67,000)		216,591,000
Balance, end of period (in shares) at Sep. 26, 2020	97,187,596
Balance, beginning of period at Dec. 31, 2020	$ 12,000	265,478,000		13,765,000	2,354,000		281,609,000
Balance, beginning of period (in shares) at Dec. 31, 2020	118,854,249
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net (loss) income				8,533,000			8,533,000
Foreign currency translation adjustments					(1,201,000)		(1,201,000)
Dividend		(110,033,000)					(110,033,000)
Repurchase and retirement of treasury stock	$ (2,000)	(64,936,000)					(64,938,000)
Repurchase and retirement of treasury stock (in shares)	21,666,653
Stock-based compensation expense		1,464,000					1,464,000
Balance, end of period at Apr. 03, 2021	$ 10,000	91,973,000		22,298,000	1,153,000		115,434,000
Balance, end of period (in shares) at Apr. 03, 2021	97,187,596
Balance, beginning of period at Dec. 31, 2020	$ 12,000	265,478,000		13,765,000	2,354,000		281,609,000
Balance, beginning of period (in shares) at Dec. 31, 2020	118,854,249
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net (loss) income							(56,361,000)
Balance, end of period at Oct. 02, 2021	$ 12,000	377,649,000		(42,596,000)	430,000		335,495,000
Balance, end of period (in shares) at Oct. 02, 2021	119,849,589
Balance, beginning of period at Apr. 03, 2021	$ 10,000	91,973,000		22,298,000	1,153,000		115,434,000
Balance, beginning of period (in shares) at Apr. 03, 2021	97,187,596
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net (loss) income				(53,598,000)			(53,598,000)
Foreign currency translation adjustments					164,000		164,000
Repurchase and retirement of treasury stock	$ (1,000)	(216,699,000)					(216,700,000)
Repurchase and retirement of treasury stock (in shares)	12,264,438
Stock-based compensation expense		75,511,000					75,511,000
Balance, end of period at Jul. 03, 2021	$ 12,000	350,046,000		(31,300,000)	1,317,000		320,075,000
Balance, end of period (in shares) at Jul. 03, 2021	120,409,271
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net (loss) income				(11,296,000)			(11,296,000)
Foreign currency translation adjustments					(887,000)		(887,000)
Stock-based compensation expense		27,603,000					27,603,000
Balance, end of period at Oct. 02, 2021	$ 12,000	$ 377,649,000		$ (42,596,000)	$ 430,000		$ 335,495,000
Balance, end of period (in shares) at Oct. 02, 2021	119,849,589

Consolidated Statements of Cash Flows $ in Thousands	12 Months Ended
Consolidated Statements of Cash Flows $ in Thousands	Dec. 31, 2020 USD ($)	Dec. 31, 2019 USD ($)
Cash flows from operating activities:
Net income	$ 15,983	$ 7,457
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	25,365	21,659
Amortization of deferred financing costs and debt discount	2,317	3,151
Bad debt expense	358	253
Change in fair value of interest rate swap	334
Deferred income taxes	(4,670)	(10,226)
Stock-based compensation expense	1,827	808
Loss on sale and disposal of property and equipment	332	680
Provision on liability for uncertain tax positions	465	5,075
Change in fair value of contingent consideration for Narellan Group Pty Limited	(204)	1,441
Changes in operating assets and liabilities:
Trade receivables	9,462	(7,104)
Inventories	(17,023)	12,960
Prepaid expenses and other current assets	1,680	1,460
Income tax receivable	(4,190)	(503)
Accounts payable	12,647	(2,278)
Accrued expenses and other current liabilities	17,685	699
Other long-term liabilities	793	123
Net cash provided by operating activities	63,161	35,655
Cash flows from investing activities:
Purchases of property and equipment	(16,264)	(8,165)
Proceeds from the sale of property and equipment	579	1,296
Acquisitions of businesses, net of cash acquired	(74,736)	(20,214)
Equity method investment in Premier Pools & Spas	(25,384)
Net cash used in investing activities	(115,805)	(27,083)
Cash flows from financing activities:
Proceeds from long-term debt borrowings	20,000	22,310
Payments on long-term debt borrowings	(24,044)	(5,809)
Distributions to parent	(600)	(200)
Proceeds from issuance of common stock	65,553	250
Repurchase and retirement of treasury stock	(582)	(200)
Payments of initial public offering costs	(1)
Payments of Narellan Group Pty Limited contingent consideration	(6,624)
Net cash provided by financing activities	54,302	16,551
Effect of exchange rate changes on cash	997	(956)
Net increase in cash	2,655	24,167
Cash at beginning of period	56,655	32,488
Cash at end of period	59,310	56,655
Supplemental cash flow information:
Cash paid for interest	15,625	19,488
Income taxes paid, net	14,815	168
Supplemental disclosure of non-cash investing and financing activities:
Purchases of property and equipment included in accounts payable and accrued expenses	1,235	312
Capitalized internal-use software included in accounts payable - related party	500
Deferred offering costs included in accounts payable and accrued expenses	1,040
Fair value of contingent consideration recorded in connection with acquisition of Narellan Group Pty Limited		8,869
Fair value of 3,548,568 and 758,694 shares of common stock issued during the years ended December 31, 2019 and 2020, respectively, in connection with the acquisition of Narellan Group Pty Limited	2,208	7,567
Change in defined benefit pension plan liability	(149)	$ 31
Net working capital adjustment receivable	$ 750

Consolidated Statements of Cash Flows (Parenthetical) - shares			9 Months Ended	12 Months Ended
	Oct. 20, 2020	Oct. 14, 2020	Sep. 26, 2020	Dec. 31, 2020	Dec. 31, 2019
Consolidated Statements of Cash Flows
Issuance of common stock (in shares)	21,666,653	21,666,653	758,694	758,694	3,548,568

NATURE OF THE BUSINESS

9 Months Ended

12 Months Ended

Oct. 02, 2021

Dec. 31, 2020

NATURE OF THE BUSINESS

NATURE OF THE BUSINESS

1.NATURE OF THE BUSINESS

Latham Group, Inc. (“the Company”) wholly owns Latham Pool Products, Inc. (“Latham Pool Products”) (together, “Latham”) and is a designer, manufacturer and marketer of in-ground residential swimming pools in North America, Australia and New Zealand. Latham offers a portfolio of pools and related products, including in-ground swimming pools, pool liners and pool covers.

On December 18, 2018, Latham Investment Holdings, LP (“Parent”), an investment fund managed by affiliates of Pamplona Capital Management (the “Sponsor”), Wynnchurch Capital, L.P. and management acquired all of the outstanding equity interests of Latham Topco., Inc., a newly incorporated entity in the State of Delaware. Latham Topco, Inc. changed its name to Latham Group, Inc. on March 3, 2021.

Initial Public Offering, Reorganization and Stock Split

On April 27, 2021, the Company completed its initial public offering (the “IPO”), pursuant to which it issued and sold 23,000,000 shares of common stock, inclusive of 3,000,000 shares sold by the Company pursuant to the full exercise of the underwriters’ option to purchase additional shares. The aggregate net proceeds received by the Company from the IPO were $399.3 million, after deducting underwriting discounts and commissions and other offering costs.

Prior to the closing of the Company’s IPO on April 27, 2021 (the “Closing of the IPO”), the Company’s parent entity, Parent, merged with and into Latham Group, Inc., with Latham Group, Inc. surviving the merger (the “Reorganization”). The purpose of the Reorganization was to allow existing indirect owners of the Company to become direct shareholders of the Company.

In connection with the Reorganization, Class A units of the Parent (the “Class A units”) were converted into shares of the Company’s common stock, and Class B units of the Parent (the “Class B units”) were converted into an economically equivalent number of restricted and unrestricted shares of the Company’s common stock on a pro rata basis. The Reorganization was accounted for as an equity reorganization between entities under common control. As the Class A units were akin to common shares as all holders held economic interest of the Parent and were entitled to distributions on a pro rata basis to their ownership, the conversion of Class A units to common shares as part of the Reorganization was considered to be equivalent to a stock split, which requires retrospective treatment for accounting purposes. Accordingly, all share and per share amounts in these condensed consolidated financial statements and related notes have been retroactively restated, where applicable, to give effect to the conversion ratio applied in connection with the Reorganization.

Class B units were historically accounted for as compensatory arrangements in accordance with ASC 718 “Compensation—Stock Compensation,” akin to stock appreciation rights, that, when vested, would share on the economic appreciation of the equity value of Parent over the agreed hurdles. As a result of the Reorganization, the Company determined that only vested Class B units are considered outstanding for accounting purposes. A portion of the Class B units vest based on continued employment by the holder, or time-vesting units, and the remaining Class B units vest upon defined performance and market conditions, or performance-vesting units. Therefore, the Company has considered any unvested restricted shares as contingently issuable shares until they vest. The conversion of time-vesting Class B units to restricted shares is retrospectively included in the weighted-average common shares outstanding for diluted net income (loss) per share using the treasury stock method for each period in which the individual unit holder’s threshold was met at the reporting date and therefore the individual unit holder would have participated in a hypothetical distribution to the Parent unit holders. The conversion of performance-vesting Class B units to restricted shares is not included in the shares outstanding for diluted net income (loss) per share for any period prior to the Reorganization and IPO as the performance vesting thresholds were not satisfied and the performance units were not considered probable to vest historically.

1.NATURE OF THE BUSINESS

Latham Group, Inc. (“the Company”) wholly owns Latham Pool Products, Inc. (“Latham Pool Products”) (together, “Latham”) and a designer, manufacturer and marketer of in-ground residential swimming pools in North America, Australia and New Zealand. Latham offers a portfolio of pools and related products, including in-ground swimming pools, pool liners and pool covers.

On December 18, 2018, Latham Investment Holdings, LP (“Parent”), an investment fund managed by affiliates of Pamplona Capital Management (the “Sponsor”), Wynnchurch Capital, L.P. and management acquired all of the outstanding equity interests of Latham Topco., Inc. a newly incorporated entity in the State of Delaware. Latham Topco, Inc. changed its name to Latham Group, Inc. on March 3, 2021.

Impact of COVID-19 Pandemic

On March 11, 2020, the World Health Organization declared COVID-19 a global pandemic and recommended containment and mitigation measures worldwide. In response to the COVID-19 pandemic, federal, state and local governments put in place travel restrictions, quarantines, “shelter-in-place” orders, and various other restrictive measures in an attempt to control the spread of the disease. Such restrictions or orders have resulted in, and continue to result in, business closures, work stoppages, slowdowns and delays, among other effects that impact its operations, as well as customer demand and the operations of its suppliers.

Since the onset of the COVID-19 pandemic, the Company has been focused on protecting its employees’ health and safety, meeting its customers’ needs as they navigate an uncertain financial and operating environment, working closely with its suppliers to protect its ongoing business operations and rapidly adjusting its short-, medium- and long-term operational plans to proactively and effectively respond to the current and potential future public health crises.

To mitigate the impact of the COVID-19 pandemic on the Company’s business, it increased frequency and intensity of cleaning of its properties, implemented policies to enable its factory employees to work flexible working hours, shifted its corporate employees to remote work, temporarily stopped hiring, temporarily cut salaries (which cuts the Company has repaid to its employees later in the year) and have greatly reduced travel for its employees. Substantially all of the Company’s plants have remained operational throughout the pandemic and it has not experienced any significant supply issues. The Company did not experience any significant impacts on its liquidity as a result of the COVID-19 pandemic.

Following a slow-down in orders in March and April of 2020 as some of the Company’s dealers shut down during the peak season, the Company saw a sustained increase in demand for its products during 2020.

Although the Company has implemented measures to mitigate the impact of the COVID-19 pandemic on its business, financial condition and results of operations, the Company expects that these measures may not fully mitigate the impact of the COVID-19 pandemic on its business, financial condition and results of operations. The Company cannot predict the degree to, or the period over, which the Company will be affected by the pandemic and resulting governmental and other measures. The global impact of the COVID-19 pandemic continues to rapidly evolve, and the Company will continue to monitor the situation closely.

Stock Split

On April 13, 2021, the Company’s certificate of incorporation was amended and restated. Under the amended and restated certificate of incorporation, the Company has authority to issue 500,000,000 shares of common stock, par value $0.0001 per share. On April 12, 2021, the Company’s board of directors declared and on April 13, 2021, the Company effected a 109,673,709-for-one stock split of its issued and outstanding shares of common stock. Accordingly, all share and per share data included in these consolidated financial statements and notes thereto have been adjusted retroactively to reflect the impact of the amended and restated certificate of incorporation and the stock split.

Reorganization

Prior to the closing of the Company’s IPO on April 27, 2021 (the “Closing of the IPO”), the Company’s parent entity, Parent, merged with and into Latham Group, Inc., The purpose of the Reorganization was to allow existing indirect owners of the Company to become direct shareholders of the Company.

In connection with the Reorganization, Class A units of the Parent (the “Class A units”) were converted into economically equivalent number of shares of the Company’s common stock on a pro rata basis to the individual holders’ ownership, and Class B units of the Parent (the “Class B units”) were converted into an economically equivalent number of restricted and unrestricted shares of the Company’s common stock, based on each individual’s respective equity value, as derived by individual Class B ownership. The Reorganization was accounted for as an equity reorganization between entities under common control.

As the Class A units were akin to common shares as all holders held economic interest of the Parent and were entitled to distributions on a pro rata basis to their respective the individual holders’ ownership, the conversion of Class A units to common shares as part of the Reorganization was considered to be the equivalent to a stock split, which requires retrospective treatment for accounting purposes. Accordingly, all share and per share amounts in these consolidated financial statements and related notes have been retroactively restated, where applicable, for all periods herein, to give effect to the conversion ratio applied in connection with the Reorganization. As a result of the retrospective application of the Reorganization, any transaction between the Company and Parent has been eliminated from these consolidated financial statements as these represent intercompany transactions.

Class B units were historically accounted for as compensatory arrangements in accordance with ASC 718 “Compensation—Stock Compensation,” akin to stock appreciation rights, that when vested would share on the economic appreciation of the equity value of Parent over the agreed hurdles. As a result of the Reorganization, the Company determined that only vested Class B units are considered outstanding for accounting purposes. A portion of the Class B units vest based on continued employment by the holder, or time-vesting units, and the remaining Class B units vest upon defined performance and market conditions, or performance-vesting units. Therefore, the Company has considered any unvested restricted shares as contingentable issuable shares until they vest. The conversion of time-vesting Class B units to restricted shares is retrospectively included in the weighted-average common shares outstanding used to calculate diluted net income (loss) per share using the treasury stock method for each period in which the individual unit holder’s threshold was met at the reporting date and therefore the individual unit holder would have participated in a hypothetical distribution to the Parent unit holders, if dilutive. The conversion of performance-vesting Class B units to restricted shares is not included in the weighted-average shares outstanding used to calculate diluted net income (loss) per share for any period prior to the Reorganization and IPO as the performance vesting thresholds were not satisfied and the performance units were not considered probable to vest historically. Refer to Note 15 for additional details relating to net income (loss) per share.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

9 Months Ended

12 Months Ended

Oct. 02, 2021

Dec. 31, 2020

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

2.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements and accompanying notes have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”). The Company’s unaudited condensed consolidated financial statements include the accounts of the Company and its subsidiaries. All intercompany balances and transactions have been eliminated in consolidation.

Unaudited Interim Financial Information

The consolidated balance sheet at December 31, 2020 was derived from audited financial statements but does not include all disclosures required by GAAP. The accompanying unaudited condensed consolidated financial statements as of October 2, 2021 and for the three fiscal quarters ended October 2, 2021 and September 26, 2020 have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial statements. Certain information and footnote disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. In the opinion of management, all adjustments, consisting only of normal recurring adjustments necessary for a fair statement of the Company’s financial position as of October 2, 2021 and results of operations for the three fiscal quarters ended October 2, 2021 and September 26, 2020 and cash flows for the three fiscal quarters ended October 2, 2021 and September 26, 2020 have been made. The Company’s results of operations for the three fiscal quarters ended October 2, 2021 are not necessarily indicative of the results of operations that may be expected for the year ending December 31, 2021.

Use of Estimates

The preparation of the Company’s condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. The Company bases its estimates on historical experience, known trends and other market-specific or other relevant factors that it believes to be reasonable under the circumstances. Estimates are evaluated on an ongoing basis and revised as there are changes in circumstances, facts and experience. Changes in estimates are recorded in the period in which they become known.

Seasonality

Although the Company generally has demand for its products throughout the year, its business is seasonal and weather is one of the principal external factors affecting the business. Historically, net sales and net income are highest during spring and summer, representing the peak months of swimming pool use, pool installation and remodeling and repair activities. Sales periods having severe weather may also affect net sales.

Accounting Policies

Refer to the Company’s Audited Consolidated Financial Statements herein for a discussion of the Company’s accounting policies, as updated below.

Stock-based Compensation

Stock-based compensation is measured and recognized based on the grant date fair value of the awards. The Class B units of the Parent were granted to employees in the form of Profits Interest Units (“PIUs”). The Company determined the grant date fair value of PIUs using the Black-Scholes option pricing model. As part of the Reorganization, the vested and unvested PIUs of the Parent, were converted on a pro rata basis into equivalent restricted stock units and restricted stock awards of the Company’s underlying common stock. The fair value of the awards is expensed using a graded vesting method over the requisite service period in which employees earn the awards. The Company accounts for forfeitures of stock-based awards as they occur rather than applying an estimated forfeiture rate to stock-based compensation expense.

The Black-Scholes pricing model requires critical assumptions including risk-free rate, volatility, expected term and expected dividend yield. The expected term is computed using the simplified method. The Company uses the simplified method to calculate expected term of the PIUs as the Company does not have sufficient historical exercise data to provide a reasonable basis upon which to estimate expected term. The risk-free interest rate is based on the yield available on U.S. Treasury zero-coupon issues similar in duration to the expected term of the stock-based award. The Company considers the historical volatility of the Company’s stock price, as well as implied volatility. The Company utilized a dividend yield of zero, as it had no history or plan of declaring dividends on its common stock. The assumptions underlying these valuations represented the Company’s best estimate, which involved inherent uncertainties and the application of judgment. As a result, if the Company had used significantly different assumptions or estimates, the fair value of the Company’s stock-based compensation expense could have been materially different.

Contemporaneously with the pricing of the Company’s IPO, on April 22, 2021, the Company effected its Omnibus Incentive Plan in which it granted to certain employees of the Company restricted stock awards, restricted stock units and option awards inclusive of the as converted Class B units as a result of the Reorganization (see Note 14).

Equity Method Investments

Investments and ownership interests in common stock or in-substance common stock are accounted for under the equity method accounting if the Company has the ability to exercise significant influence over the entity but does not have a controlling financial interest. Under the equity method, investments are initially recognized at cost and adjusted to reflect the Company’s interest in net earnings, dividends received and other-than-temporary impairments. The Company records its interest in the net earnings of its equity method investee, along with adjustments for amortization of basis differences, investee capital transactions and other comprehensive income (loss), within earnings from equity method investment in the condensed consolidated statements of operations. Basis differences represent differences between the cost of the investment and the underlying equity in net assets of the investment and are generally amortized over the lives of the related assets that gave rise to the underlying basis differences. Profits or losses related to intra-entity sales with its equity method investee are eliminated until realized by the investor or investee.

The Company records its proportionate share of earnings or losses of Premier Holdco, LLC (“Premier Pools & Spas”) within earnings from equity method investment in the condensed consolidated statements of operations on a three-month lag. The Company recorded its interest in the net earnings of Premier Pools & Spas of $1.8 million for the three fiscal quarters ended October 2, 2021, which included a $0.2 million adjustment for the amortization of basis differences, within earnings from equity method investment in the condensed consolidated statements of operations during the three fiscal quarters ended October 2, 2021. As the Company initially invested in Premier Pools & Spas on October 30, 2020, there was no earnings from equity method investment recorded during the three fiscal quarters ended September 26, 2020. The Company received distributions of $2.2 million during the three fiscal quarters ended October 2, 2021.

For presentation in the condensed consolidated statements of cash flows, the Company utilizes the cumulative earnings approach for purposes of determining whether distributions should be classified as either a return on investment, which are be included in operating activities, or a return of investment, which would be included in investing activities. Under the cumulative earnings approach, the Company compares the distributions received to its cumulative equity-method earnings since inception. Any distributions received up to the amount of cumulative equity earnings are be considered a return on investment and classified in operating activities. Any excess distributions would be considered a return of investment and classified in investing activities.

Equity method goodwill is not amortized or tested for impairment; instead the Company evaluates equity method investments for impairment when events or changes in circumstances indicate that the decline in value below the carrying amount of its equity method investment is determined to be other than temporary. In such a case, the decline in value below the carrying amount of its equity method investment is recognized in the condensed consolidated statements of operations in the period the impairment occurs.

Recently Issued Accounting Pronouncements

The Company qualifies as “emerging growth company” as defined in the Jumpstart Our Business Startups Act of 2012 and has elected to “opt in” to the extended transition related to complying with new or revised accounting standards, which means that when a standard is issued or revised and it has different application dates for public and nonpublic companies, the Company will adopt the new or revised standard at the time nonpublic companies adopt the new or revised standard and will do so until such time that the Company either (i) irrevocably elects to “opt out” of such extended transition period or (ii) no longer qualifies as an emerging growth company. The Company may choose to early adopt any new or revised accounting standards whenever such early adoption is permitted for private companies.

In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) (“ASU 2016-02”), which sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract (i.e., lessees and lessors). The new standard requires lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase by the lessee. This classification will determine whether lease expense is recognized based on an effective interest method or on a straight-line basis over the term of the lease. In addition, a lessee is required to record (i) a right-of-use asset and a lease liability on its balance sheet for all leases with accounting lease terms of more than 12 months regardless of whether it is an operating or financing lease and (ii) lease expense in its consolidated statement of operations for operating leases and amortization and interest expense in its consolidated statement of operations for financing leases. Leases with a term of 12 months or less may be accounted for similar to prior guidance for operating leases today. In July 2018, the FASB issued ASU No. 2018-11, Leases (Topic 842), which added an optional transition method that allows companies to adopt the standard as of the beginning of the year of adoption as opposed to the earliest comparative period presented. In November 2019, the FASB issued guidance delaying the effective date for all entities, except for public business entities. For nonpublic entities, this guidance is effective for annual periods beginning after December 15, 2020. In June 2020, the FASB issued additional guidance delaying the effective date for all entities, except for public business entities. For public entities, ASU 2016-02 was effective for annual periods beginning after December 15, 2018, including interim periods within those fiscal years. For nonpublic entities, this guidance is effective for annual periods beginning after December 15, 2021. Early adoption is permitted. The Company is currently evaluating the impact that the adoption of ASU 2016-02 will have on its consolidated financial statements.

In June 2016, the FASB issued ASU 2016-13, Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”), which requires the measurement and recognition of expected credit losses for financial assets held at amortized cost. ASU 2016-13 replaces the existing incurred loss impairment model with an expected loss model. It also eliminates the concept of other-than-temporary impairment and requires credit losses related to available-for-sale debt securities to be recorded through an allowance for credit losses rather than as a reduction in the amortized cost basis of the securities. These changes will result in earlier recognition of credit losses. In November 2018, the FASB issued ASU 2018-19, Codification Improvements to Topic 326, Financial Instruments — Credit Losses, which narrowed the scope and changed the effective date for nonpublic entities for ASU 2016-13. The FASB subsequently issued supplemental guidance within ASU 2019-05, Financial Instruments — Credit Losses (Topic 326): Targeted Transition Relief (“ASU 2019-05”). ASU 2019-05 provides an option to irrevocably elect the fair value option for certain financial assets previously measured at amortized cost basis. For public entities that are SEC filers, excluding entities eligible to be smaller reporting companies, ASU 2016-13 is effective for annual periods beginning after December 15, 2019, including interim periods within those fiscal years. For all other entities, ASU 2016-13 is effective for annual periods beginning after December 15, 2022, including interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the impact that the adoption of ASU 2016-13 will have on its consolidated financial statements.

In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities (“ASU 2017-12”), which is intended to improve the financial reporting of hedging relationships to better portray the economic results of an entity’s risk management activities in its consolidated financial statements. In addition to that main objective, the amendments in the update make certain targeted improvements to simplify the application of the hedge accounting guidance in current GAAP. Additional updates to further clarify the guidance in ASU 2017-12 were issued by the FASB in October 2018 within ASU 2018-16. For public entities, the amendment is effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. For nonpublic entities, ASU 2017-12 is effective for fiscal years beginning after December 15, 2020 and interim periods beginning after December 15, 2021. Early application is permitted in any interim period after the issuance of the update. The Company is currently evaluating the impact that the adoption of ASU 2017-12 will have on its consolidated financial statements.

In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (“ASU 2019-12”), which is intended to simplify various aspects related to accounting for income taxes. ASU 2019-12 removes certain exceptions to the general principles in ASC 740 and also clarifies and amends existing guidance to improve consistent application. For public entities, ASU 2019-12 is effective for annual periods beginning after December 15, 2020, and interim periods within those reporting periods. For nonpublic companies, ASU 2019-12 is effective for annual periods beginning after December 15, 2021, and interim periods within those reporting periods. Early adoption is permitted. The Company is currently evaluating the impact that the adoption of ASU 2019-12 will have on its consolidated financial statements.

In January 2020, the FASB issued ASU 2020-01, Investments — Equity Securities (Topic 321), Investments — Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815) (“ASU 2020-01”), which is intended to clarify the interaction of the accounting for equity securities under Topic 321 and investments accounted for under the equity method of accounting in Topic 323 and the accounting for certain forward contracts and purchased options accounted for under Topic 815. For

public entities, ASU 2020-01 is effective for annual periods beginning after December 15, 2020, and interim periods within those reporting periods. For nonpublic companies, ASU 2020-01 is effective for annual periods beginning after December 15, 2021, and interim periods within those reporting periods. The Company is currently evaluating the impact that the adoption of ASU 2020-01 will have on its consolidated financial statements.

In March 2020, the FASB issued ASU 2020-04, Facilitation of the Effects of Reference Rate Reform on Financial Reporting which provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by the discontinuation of the London Interbank Offered Rate (“LIBOR”) or by another reference rate expected to be discontinued. This guidance is effective for all entities upon issuance on March 12, 2020 and may be applied through December 31, 2022. The expedients and exceptions in this guidance are optional, and the Company is evaluating the potential future financial statement impact of any such expedient or exception that it may elect to apply as the Company evaluates the effects of adopting this guidance on its consolidated financial statements.

In January 2021, the FASB issued ASU 2021-01, Reference Rate Reform (Topic 848): Scope, which clarifies that certain optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting apply to derivatives that are affected by the discounting transition. Specifically, this guidance applies to derivative instruments that use an interest rate for margining, discounting, or contract price alignment that is modified as a result of reference rate reform. The ASU became effective as of March 12, 2020 and can be adopted anytime during the period of January 1, 2020 through December 31, 2022. The Company is currently evaluating the impact that the adoption of ASU 2021-01 will have on its consolidated financial statements.

2.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

The accompanying consolidated financial statements and accompanying notes have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”). The Company’s consolidated financial statements include the accounts of the Company and its subsidiaries. All intercompany balances and transactions have been eliminated in consolidation.

Use of Estimates

The preparation of the Company’s consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. The Company bases its estimates on historical experience, known trends and other market-specific or other relevant factors that it believes to be reasonable under the circumstances. Estimates are evaluated on an ongoing basis and revised as there are changes in circumstances, facts and experience. Changes in estimates are recorded in the period in which they become known.

Seasonality

Although the Company generally has demand for its products throughout the year, its business is seasonal and weather is one of the principal external factors affecting the business. In general, net sales and net income are highest during spring and summer, representing the peak months of swimming pool use, pool installation and remodeling and repair activities. Sales periods having severe weather may also affect net sales.

Revenue Recognition

The Company adopted accounting standards codification (“ASC”) 606, Revenue from Contracts with Customers (“ASC 606”), on January 1, 2019 using the modified retrospective method. This standard applies to all contracts with customers, except for contracts that are within the scope of other standards. The adoption of ASC 606 resulted in a net decrease to retained earnings (accumulated deficit) of $1.7 million, a reduction to prepaid expenses of $1.2 million and an increase to accrued expenses of $0.5 million as of January 1, 2019, as a result of adjusting the timing of recording customer incentives to more closely match the revenues to which they are associated.

Under ASC 606, the Company recognizes revenue when its customer obtains control of promised goods or services, in an amount that reflects the consideration that the Company expects to receive in exchange for those goods or services. To determine revenue recognition for arrangements that the Company determines are within the scope of ASC 606, the Company performs the following five steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when, or as, the Company satisfies a performance obligation. The Company only applies the five-step model to contracts when it is probable that the Company will collect the consideration it is entitled to in exchange for the goods or services it transfers to the customer. At contract inception, once the contract is determined to be within the scope of ASC 606, the Company assesses the goods or services promised within each contract, determines which goods or services are performance obligations, and assesses whether each promised good or service is distinct. The Company then recognizes as revenue the amount of the transaction price that is allocated to the respective performance obligation when, or as, that performance obligation is satisfied.

The Company sells its products through business-to-business distribution channels. With the exception of its extended service warranties and custom product contracts, the Company recognizes its revenue at a point in time when control of the promised goods is transferred to the Company’s customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods. Control of the goods is considered to have been transferred upon shipping or upon arrival at the customer’s destination, depending on the terms of the purchase order. Revenue that is derived from its extended service warranties, which are separately priced and sold, is recognized over the term of the contract. Refer to Warranties within this same Note for further information.

Revenue from custom products is recognized over time utilizing an input method that compares the cost of cumulative work-in-process to date to the most current estimates for the entire cost of the performance obligation. Custom products are generally delivered to the customer within three days of receipt of the purchase order.

Each product shipped is considered to be one performance obligation. For each product shipped, the transaction price by product is specified in the purchase order. The Company recognizes revenue on the transaction price less any estimated rebates, cash discounts or other sales incentives. Customer rebates, cash discounts, and other sales incentives are estimated by applying the portfolio approach using the most-likely-amount method and are recorded as a reduction to revenue at the time of the initial sale. Estimates are updated each reporting period and any changes are allocated to the performance obligations on the same basis as at inception. The Company believes the most-likely-amount method best predicts the amount of consideration to which it will be entitled.

The Company has elected to account for shipping and handling costs as activities to fulfill the promise to transfer the goods. As a result of this accounting policy election, the Company does not consider shipping and handling activities as promised services to its customers. Therefore, shipping and handling costs billed to customers are recorded in net sales, and the related costs in cost of sales.

The Company does not engage in contracts greater than one year, and therefore does not have any contract costs capitalized as of December 31, 2019 and 2020.

As a practical expedient, the Company does not adjust the promised amount of consideration for the effects of a significant financing component as the period between the transfer of a promised good to a customer and when the customer pays for that product is one year or less.

Warranties

The Company offers limited assurance-type warranties on most of its products, which assure that the product will comply with agreed upon specifications. These assurance-type warranties are not separately priced and are not considered separate performance obligations. The Company also offers optional extended service contracts which are separately priced. The Company recognizes revenue related to extended service contracts over the term of the contract.

The Company’s assurance-type warranties generally range from five years to lifetime warranties. At the time product revenue is recognized, the Company records a liability for estimated costs that may be incurred under its warranties. The costs are estimated based on historical experience and any specific warranty issues that have been identified. The accuracy of the estimate of additional costs is dependent on the number and cost of future claims submitted during the warranty periods. Although historical warranty costs have been within expectations, there can be no assurance that future warranty costs will not exceed historical amounts. The Company believes that the reserves established for estimated and probable future product warranty claims are adequate. The Company periodically assesses the adequacy of its recorded warranty liability and adjusts the balance as necessary. Warranty costs are recorded within cost of sales on the consolidated statements of operations. The Company’s provision for product warranties was recorded within accrued expenses and other current liabilities and other long-term liabilities on the consolidated balance sheets as of December 31, 2019 and 2020.

Cost of Sales

Cost of sales includes the cost of materials and all costs to make products saleable, such as labor, materials, inbound freight, including inter-plant freight, purchasing and receiving costs, operating lease costs related to distribution and manufacturing facilities, and warehousing and distributions costs. In addition, all depreciation expense associated with assets used to manufacture products and make them saleable is included in cost of sales. The Company records shipping and handling costs associated with outbound freight as cost of sales when the related revenue is recognized in the accompanying consolidated statements of operations.

Trade Receivables, Net

Trade receivables are recorded at the original invoiced amount and do not bear interest. The Company maintains an allowance for bad debt. The allowance for bad debt is based on the best estimate of the amount of probable credit losses in existing accounts receivable. The Company determines the allowances based on historical write-off experience. The Company’s allowance for bad debt as of December 31, 2019 and 2020 was $1.3 million and $1.4 million, respectively.

Concentration of Credit Risk

Financial instruments that subject the Company to concentrations of credit risk consist primarily of cash and trade receivables. The Company from time to time may have bank deposits in excess of insurance limits of the Federal Deposit Insurance Corporation. The Company also has bank deposits in international accounts. The Company has not historically sustained any credit losses in such accounts and believes it is not exposed to any significant credit risk related to its cash. The Company routinely reviews the financial strength of its customers before extending credit and believes that its trade receivables credit risk exposure is limited. Generally, the Company does not require collateral from its customers.

During the years ended December 31, 2019 and 2020, one customer represented approximately 25.7% and 22.3% of the Company’s net sales, respectively. As of December 31, 2019 and 2020, outstanding trade receivables related to this customer were $12.0 million and $5.4 million, respectively. The Company provides extended payment terms to qualified customers for sales under its “Early Buy” program, which allows customers to take delivery in December and receive payment terms for April through June of the following year.

Fair Value Measurements

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. To increase the comparability of fair value measures, the following hierarchy prioritizes the inputs to valuation methodologies used to measure fair value.

Level 1—Quoted prices in active markets for identical assets or liabilities.

Level 2—Inputs, other than quoted prices in active markets, that are observable either directly or indirectly.

Level 3—Unobservable inputs that reflect the Company’s own assumptions incorporated into valuation techniques. These valuations require significant judgment.

In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. When there is more than one input at different levels within the hierarchy, the fair value is determined based on the lowest level input that is significant to the fair value measurement in its entirety. Assessment of the significance of a particular input to the fair value measurement in its entirety requires substantial judgment and consideration of factors specific to the asset or liability. Level 3 inputs are inherently difficult to estimate. Changes to these inputs can have significant impact on fair value measurements. Assets and liabilities measured at fair value using Level 3 inputs are based on one or more of the following valuation techniques: market approach, income approach or cost approach. There were no transfers between fair value measurement levels during the years ended December 31, 2019 and 2020.

Interest Rate Swap

Borrowings under the Credit Agreement (see Note 9) accrue interest at variable rates and expose the Company to interest rate risk. On April 30, 2020, the Company entered into an interest rate swap with a notional amount of $200.0 million and a three-year term to reduce the interest rate risk associated with the Company’s Credit Agreement. The Company’s interest rate swap is not designated as a hedging instrument for accounting purposes. The Company accounts for the interest rate swap as other long-term liabilities in the consolidated balance sheets at fair value. The resulting gain (loss) on the interest rate swap is recognized within other expense (income), net in the consolidated statements of operations.

Business Combinations

In determining whether an acquisition should be accounted for as a business combination or asset acquisition, the Company first determines whether substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or a group of similar identifiable assets. If this is the case, the single identifiable asset or the group of similar assets is not deemed to be a business, and is instead deemed to be an asset. If this is not the case, the Company then further evaluates whether the single identifiable asset or group of similar identifiable assets and activities includes, at a minimum, an input and a substantive process that together significantly contribute to the ability to create outputs. If so, the Company concludes that the single identifiable asset or group of similar identifiable assets and activities is a business.

The Company accounts for business combinations that are deemed to be businesses using the acquisition method of accounting. Application of this method of accounting requires that (i) identifiable assets acquired (including identifiable intangible assets) and liabilities assumed generally be measured and recognized at fair value as of the acquisition date and (ii) the excess of the purchase price over the net fair value of identifiable assets acquired and liabilities assumed be recognized as goodwill, which is not amortized for accounting purposes but is subject to testing for impairment at least annually. Any contingent assets acquired and contingent liabilities assumed are also recognized at fair value if the Company can reasonably estimate fair value during the measurement period (which cannot exceed one year from the acquisition date). The Company re-measures any contingent liabilities at fair value in each subsequent reporting period. Transaction costs related to business combinations are expensed as incurred. Determining the fair value of assets acquired and liabilities assumed in a business combination requires management to use significant judgment and estimates, especially with respect to intangible assets.

During the measurement period, which extends no later than one year from the acquisition date, the Company may record certain adjustments to the carrying value of the assets acquired and liabilities assumed with the corresponding offset to goodwill. After the measurement period, all adjustments are recorded in the consolidated statements of operations as operating expenses or income.

Acquisition-related contingent consideration was recorded in the consolidated balance sheets at its acquisition-date estimated fair value, in accordance with the acquisition method of accounting. The fair value of the acquisition-related contingent consideration was remeasured each reporting period, with changes in fair value recorded in other expense (income), net in the consolidated statements of operations. The fair value measurement is based on significant inputs not observable by market participants and thus represents a Level 3 input in the fair value hierarchy (see Note 5).

Equity Method Investments

Investments and ownership interests in common stock or in-substance common stock are accounted for under the equity method accounting if the Company has the ability to exercise significant influence over the entity, but does not have a controlling financial interest. Under the equity method, investments are initially recognized at cost and adjusted to reflect the Company’s interest in net earnings, dividends received and other-than-temporary impairments. The Company records its interest in the net earnings of its equity method investee, along with adjustments for amortization of basis differences, investee capital transactions and other comprehensive income (loss), within earnings (losses) from equity method investment in the consolidated statements of operations. Basis differences represent differences between the cost of the investment and the underlying equity in net assets of the investment and are generally amortized over the lives of the related assets that gave rise to the underlying basis differences. Profits or losses related to intra-entity sales with its equity method investee are eliminated until realized by the investor or investee.

The Company records its proportionate share of earnings or losses of Premier Holdco, LLC (“Premier Pools & Spas”) within earnings (losses) from equity method investment in the consolidated statements of operations on a three-month lag. Accordingly, the consolidated statement of operations for the year ended December 31, 2020 does not reflect any proportionate share of earnings or losses of Premier Pools & Spas.

Equity method goodwill is not amortized or tested for impairment; instead the Company evaluates equity method investments for impairment when events or changes in circumstances indicate that the decline in value below the carrying amount of its equity method investment is determined to be other than temporary. In such a case, the decline in value below the carrying amount of its equity method investment is recognized in the consolidated statements of operations in the period the impairment occurs.

Inventories, Net

Inventories, primarily raw materials and finished goods, are stated at the lower of cost or net realizable value. Cost is determined under the first-in, first-out method. Inventory costs include all costs directly attributable to the products, including all manufacturing overhead, and excludes costs to distribute. The Company periodically reviews its inventory for slow moving or obsolete items and writes down the related products to estimated net realizable value. As of December 31, 2019 and 2020, the Company’s reserves for estimated slow moving products or obsolescence were $2.1 million and $1.8 million, respectively.

Property and Equipment, Net

Property and equipment are recorded at cost and presented net of accumulated depreciation. Property and equipment acquired through business combinations are recorded at fair value at the acquisition date. Expenditures for betterments and major improvements that substantially enhance the value and increase the estimated useful life of the assets are capitalized and depreciated over the new estimated useful life. Normal repairs and maintenance costs are expensed as incurred. Depreciation and amortization expense are recognized using the straight-line method over the estimated useful lives of each respective asset category as follows:


		Estimated
		Useful Life
Building and improvements		25 years
Molds and dyes		5 – 10 years
Machinery and equipment (including computer equipment and software)		3 – 10 years
Furniture and fixtures		5 – 7 years
Vehicles		5 years

Leasehold improvements are amortized over the shorter of the term of the related lease or the estimated useful lives of the improvements. When property and equipment is sold or retired, the asset cost and accumulated depreciation and amortization are removed from the respective accounts and a gain or loss is recognized, if any, on the consolidated statements of operations.

The Company capitalizes external costs and directly attributable internal costs to acquire or create internal-use software which are incurred subsequent to the completion of the preliminary project state. These costs relate to activities such as software design, configuration, coding, testing and installation and exclude training and maintenance. Once the software is substantially complete and ready for its intended use, capitalized development costs are amortized straight-line over the estimated useful life of the software, generally not to exceed five years.

Long-Lived Assets

Long-lived assets include property and equipment and definite-lived intangible assets. The Company evaluates the carrying value of its long-lived assets for impairment whenever events or circumstances indicate that the carrying value of the assets may not be recoverable. Conditions that may indicate impairment include, but are not limited to, a significant decrease in the market price of an asset, a significant adverse change in the extent or manner in which an asset is being used or a significant decrease in its physical condition, and operating or cash flow performance that demonstrates continuing losses associated with an asset or asset group. The Company also considers non-financial data such as changes in the operating environment, competitive information, market trends and business relationships.

A potential impairment has occurred if the projected future undiscounted cash flows expected to result from the use and eventual disposition of the asset or asset group are less than the carrying value of the asset or asset group. The estimate of cash flows includes management’s assumptions of cash inflows and outflows directly resulting from the use of the asset in operation. If the carrying value exceeds the sum of the undiscounted cash flows, an impairment charge is recorded equal to the excess of the asset or asset group’s carrying value over its fair value. Fair value is measured using appropriate valuation methodologies that would typically include a projected discounted cash flow model using a discount rate the Company believes is commensurate with the risk inherent in its business. The Company did not recognize any impairment losses on long-lived assets during the years ended December 31, 2019 and 2020.

The Company amortizes its definite-lived intangible assets using the straight-line method. The weighted-average estimated useful lives (in years) of the Company’s definite-lived intangible assets are as follows (see Note 6):


		Estimated
Asset		Useful Life
Patented technology		5 – 10 years
Trade names and trademarks		9 – 25 years
Pool designs		14 years
Franchise relationships		4 years
Dealer relationships		5 – 15 years
Non-competition agreements		5 years

Goodwill

The Company accounts for goodwill as the excess of the purchase price over the net amount of identifiable assets acquired and liabilities assumed in a business combination measured at fair value. Goodwill is not subject to amortization; rather, the Company tests goodwill for impairment annually on the first day of the Company’s fourth fiscal quarter and whenever events occur or changes in circumstances indicate that impairment may have occurred. Historically, including for the Company’s annual impairment test conducted during the year ended December 31, 2020, the Company had two reporting units for the purpose of performing its goodwill impairment test. In November 2020, the Company made changes to its internal organizational structure, including roles and responsibilities and to its internal reporting, resulting in a change to segment management. As a result of the change in segment management and in the information that is regularly reviewed, the results of the previous two reporting units are no longer being reviewed for profitability on an individual basis. Due to these factors, the Company recognized a change in reporting units effective in November 2020 and determined that only one reporting unit exists. The Company completed an assessment of any potential impairment for all reporting units immediately prior to and after the reporting unit change and determined that no impairment existed.

Impairment testing is performed for the Company’s reporting unit by first assessing qualitative factors to see if further testing of goodwill is required. If the Company concludes that it is more likely than not that its reporting unit’s fair value is less than its carrying amount based on the qualitative assessment, then a quantitative test is required. The Company may also choose to bypass the qualitative assessment and perform the quantitative test.

If the estimated fair value of the reporting unit exceeds the carrying amount, the Company considers that goodwill is not impaired. If the carrying value exceeds estimated fair value, there is an impairment of goodwill and an impairment loss is recorded. The Company calculates the impairment loss by comparing the fair value of its reporting unit less the carrying amount, including goodwill. Goodwill impairment would be limited to the carrying value of the goodwill.

The Company measures fair value of its reporting unit based on the enterprise values derived using an income approach and a market approach. The Company applies a weighting of 75% to the income approach and a weighting of 25% to the market approach. The income approach uses a discounted cash flows model that indicates the fair value of the reporting unit based on the present value of the cash flows that the reporting unit is expected to generate in the future. Significant estimates in the discounted cash flows model include: the weighted-average cost of capital; and long-term rate of growth and profitability of the business. The market approach uses a guideline transactions method to indicate the fair value of the reporting unit based on a selected multiple. Significant estimates in the market approach model include identifying appropriate market multiples and assessing earnings before interest, income taxes, depreciation and amortization (“EBITDA”) in estimating the fair value of the reporting unit.

Debt Issuance Costs

The Company defers costs incurred in conjunction with acquiring third-party financing. The Company amortizes debt issuance costs over the term of the related long-term debt instruments using the effective interest method. Debt issuance costs related to long-term debt are recorded as a direct reduction to the carrying amount of long-term debt on the consolidated balance sheets (see Note 9).

Deferred Offering Costs

The Company capitalizes certain legal, professional accounting, and other third-party fees that are directly associated with in-process equity financings as deferred offering costs until such financings are consummated. After consummation of the equity financing, these costs are recorded in stockholders’ equity as a reduction of additional paid-in capital generated as a result of the offering. Should the planned equity financing be abandoned, the deferred offering costs will be expensed immediately as a charge to operating expenses in the consolidated statements of operations. There were no deferred offering costs as of December 31, 2019. As of December 31, 2020, the Company had recorded $1.0 million of deferred offering costs related to its planned IPO of common stock.

Segment Reporting

The Company identifies operating segments based on how the chief operating decision maker (“CODM”) manages the business, allocates resources, makes operating decisions and evaluates operating performance.

The Company conducts its business as one operating and reportable segment that designs, manufactures and markets in-ground swimming pools, liners and covers. The Company’s chief executive officer, who is the chief operating decision maker, reviews financial information presented on a consolidated basis for purposes of assessing financial performance and allocating resources.

Income Taxes

The Company accounts for income taxes using the asset and liability method. This approach requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the carrying amounts and the tax basis of assets and liabilities, using enacted tax rates expected to be applicable in the years in which the temporary differences are expected to reverse. Changes in deferred tax assets and liabilities are recorded in the provision for income taxes. The Company evaluates the realizability of its deferred tax assets and establishes a valuation allowance when it is more likely than not that all or a portion of the deferred tax assets will not be realized. Potential for recovery of deferred tax assets is evaluated by estimating the future taxable profits expected, scheduling of anticipated reversals of taxable temporary differences, and considering prudent and feasible tax planning strategies. If in future periods the Company were to determine that it would be able to realize its deferred tax assets in excess of the net recorded amount, an adjustment to the deferred tax assets, particularly a release of the valuation allowance, would increase income in the period such determination was made.

The Company records liabilities for uncertain income tax positions based on a two-step process. The first step is recognition, where an individual tax position is evaluated as to whether it has a likelihood of greater than 50% of being sustained upon examination based on the technical merits of the position, including resolution of any related appeals or litigation processes. For tax positions that are currently estimated to have less than a 50% likelihood of being sustained, no tax benefit is recorded. For tax positions that have

met the recognition threshold in the first step, the Company performs the second step of measuring the benefit to be recorded. The amount of the benefit that may be recognized is the largest amount that has a greater than 50% likelihood of being realized on ultimate settlement. The actual benefits ultimately realized may differ from the estimates. In future periods, changes in facts, circumstances and new information may require the Company to change the recognition and measurement estimates with regard to individual tax positions. Changes in recognition and measurement estimates are recorded in income tax (benefit) expense and liability in the period in which such changes occur.

The Company’s policy is to classify interest and penalties related to unrecognized tax benefits as a component of income tax (benefit) expense within the consolidated statements of operations. There were no penalties or accrued interest as of December 31, 2019. The Company had $0.2 million of accrued interest and no accrued penalties as of December 31, 2020. The Company reinvests earnings of foreign operations indefinitely and, accordingly, does not provide for income taxes that could result from the remittance of such earnings.

Stock-Based Compensation

Prior to the Reorganization, certain of the Company’s employees, directors and officers have been granted profits interest units (“PIUs”) in the form of Class B units in the Company’s parent entity, Latham Investment Holdings, LP (“Parent”). As the employees and officers provide services to the Company, the stock-based compensation is deemed to be for the benefit of the Company (see Note 16). The Company records an allocation of stock-based compensation expense based on the fair value of the award at grant date from its Parent and recognizes a corresponding capital contribution in additional paid-in capital.

The Company accounts for the PIUs as equity classified awards. PIUs are measured at fair value on the grant date. The Company estimates the grant-date fair value of PIUs using the Contingent Claims Analysis Model, which uses the risk-free rate, expected term, volatility and dividend yield as inputs.

A portion of the PIUs vest in five equal annual installments, based on continued service (“Time Vesting PIUs”). The Company recognizes the grant date fair value of these Time Vesting PIUs as an expense over the employee’s requisite service period. However, the Parent has a repurchase right for $0 per share until the third anniversary of the Acquisition in the event of voluntary termination or termination without cause (the “$0 Repurchase Right”). The Company will reverse stock-based compensation expense in the event that the Parent exercises the $0 Repurchase Right since it functions as a vesting condition. In the event of a change-in-control event, the Company will immediately recognize the unrecognized stock-based compensation expense related to the unvested Time Vesting PIUs. The remaining units (the “Performance PIUs”) will vest upon the consummation of a change-in-control, as defined in the Parent’s partnership agreement, a performance condition and the achievement of either a specified internal rate of return or a specific return on the Sponsor’s investment, both of which are market conditions. As the Performance PIUs contain both performance and market conditions, compensation expense for those awards will be equal to the grant date fair value of all awards for which the performance condition is met and the requisite service period is satisfied regardless of whether the market conditions are ultimately satisfied. No stock-based compensation expense has been recognized to-date for the remaining units as the Company has not deemed the performance condition to be probable.

The Company accounts for forfeitures of stock-based awards as they occur rather than applying an estimated forfeiture rate to stock-based compensation expense.

Pension and Other Postretirement Plans

The Company sponsors a noncontributory defined benefit pension plan that covers certain former employees. Funding of accrued pension costs is subject to limitations in the Internal Revenue Code and the Employee Retirement Income Security Act of 1974 (“ERISA”). Guidance for employers’ accounting for defined benefit pension and other postretirement plans applies to employers that sponsor single-employer defined benefit pension and other postretirement plans who are either business enterprises or nongovernmental not-for-profit organizations. Among other provisions, the guidance requires employers to fully recognize the overfunded or underfunded positions (the difference between the fair value of plan assets and the benefit obligation) of defined benefit pension, retiree healthcare and other postretirement plans in their balance sheets. In applying the provisions of the guidance, the Company records the unrecognized gains (losses) and prior service costs in the ending balance of accumulated other comprehensive income (loss). As of December 31, 2019, the Company’s plan assets and related plan obligations were $1.3 million and $1.5 million, respectively, representing 0.3% and 0.3% of total assets, respectively, and are deemed immaterial to the consolidated financial statements. During the year ended December 31, 2020, the Company terminated its defined benefit pension plan (see Note 15).

Foreign Currency Translation and Foreign Currency Transactions

The financial statements of the Company’s foreign operations are denominated in local currency and are then translated to U.S. dollars. Assets and liabilities are translated using the current rate of exchange at the balance sheet dates or historical rates of exchange, as applicable. Revenue and expenses are translated using the average monthly exchange rates prevailing throughout the reporting period. The related foreign currency translation adjustments are recorded as a component of accumulated other comprehensive income (loss) in stockholders’ equity. Transaction gains and losses associated with the Company’s international subsidiaries, which are denominated in currencies other than the Company’s foreign entities’ functional currencies, are recognized as a component of other expense (income), net within the consolidated statements of operations.

Advertising Costs

Advertising costs, consisting of costs related to dealer conferences and commercials, are expensed as incurred and are included in selling, general and administrative expense on the consolidated statements of operations. Total advertising costs were $3.8 million and $5.9 million during the years ended December 31, 2019 and 2020, respectively.

Comprehensive Income (Loss)

Comprehensive income (loss) is a measure of net income and all other changes in equity that result from transactions other than with equity holders and would normally be recorded in the consolidated statements of stockholders’ equity and the consolidated statements of comprehensive income. Other comprehensive income (loss) consists of foreign currency translation adjustments and defined benefit plan adjustments.

Income tax (benefit) expense on the components of other comprehensive income (loss) was not significant for the years ended December 31, 2019 and 2020.

Earnings Per Share

Basic net income per share is calculated by dividing net income available to common stockholders by the weighted-average number of shares of common stock outstanding for the period. Diluted net income per share is calculated by dividing net income available to common stockholders by the diluted weighted-average number of shares of common stock outstanding for the period. There were no potentially dilutive securities outstanding during the year ended December 31, 2019 and 2020.

Treasury Stock

The Company accounts for treasury stock acquisitions using the cost method. The Company accounts for the retirement of treasury stock by deducting its par value from common stock and reflecting any excess of cost over par value as a deduction from additional paid-in capital on the consolidated balance sheets.

Recently Adopted Accounting Standards

In June 2018, the FASB issued ASU 2018-07, Compensation-Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting (“ASU 2018-07”). The standard largely aligns the accounting for share-based payment awards issued to employees and non-employees by expanding the scope of ASC 718 to apply to non-employee share-based transactions, as long as the transaction is not effectively a form of financing. For public entities, ASU 2018-07 was required to be adopted for annual periods beginning after December 15, 2018, including interim periods within those fiscal years. For nonpublic entities, ASU 2018-07 is effective for annual periods beginning after December 15, 2019 and interim periods within those fiscal years. Early adoption is permitted for all entities but no earlier than the Company’s adoption of ASU 2018-07. The Company adopted ASU 2018-07 as of the required effective date of January 1, 2020. The adoption of ASU 2018-07 adoption of this standard did not have a material impact on the Company’s consolidated financial statements.

In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework — Changes to the Disclosure Requirements for Fair Value Measurement (“ASU 2018-13”), which modifies the existing disclosure requirements for fair value measurements in ASC 820. The new disclosure requirements include disclosure related to changes in unrealized gains or losses included in other comprehensive income (loss) for recurring Level 3 fair value measurements held at the end of each reporting

period and the explicit requirement to disclose the range and weighted-average of significant unobservable inputs used for Level 3 fair value measurements. The other provisions of ASU 2018-13 include eliminated and modified disclosure requirements. For all entities, this guidance is required to be adopted for annual periods beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted. The Company adopted ASU 2018-13 as of the required effective date of January 1, 2020. The adoption of ASU 2018-13 did not have a material impact on the Company’s consolidated financial statements.

Recently Issued Accounting Pronouncements

December 15, 2020 and interim periods beginning after December 15, 2021. Early application is permitted in any interim period after the issuance of the update. The Company is currently evaluating the impact that the adoption of ASU 2017-12 will have on its consolidated financial statements.

In January 2020, the FASB issued ASU 2020-01, Investments — Equity Securities (Topic 321), Investments — Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815) (“ASU 2020-01”), which is intended to clarify the interaction of the accounting for equity securities under Topic 321 and investments accounted for under the equity method of accounting in Topic 323 and the accounting for certain forward contracts and purchased options accounted for under Topic 815. For public entities, ASU 2020-01 is effective for annual periods beginning after December 15, 2020, and interim periods within those reporting periods. For nonpublic companies, ASU 2020-01 is effective for annual periods beginning after December 15, 2021, and interim periods within those reporting periods. The Company is currently evaluating the impact that the adoption of ASU 2020-01 will have on its consolidated financial statements.

ACQUISITIONS

9 Months Ended

12 Months Ended

Oct. 02, 2021

Dec. 31, 2020

ACQUISITIONS

ACQUISITIONS

3.ACQUISITIONS

GL International, LLC

On October 22, 2020, Latham Pool Products acquired GL International, LLC (“GLI”) for a total purchase price of $79.7 million (the “GLI Acquisition”). The results of GLI’s operations have been included in the condensed consolidated financial statements since that date. GLI specializes in manufacturing custom pool liners and safety covers. As a result, this acquisition expanded the Company’s liner and safety cover product offerings. In connection with the GLI Acquisition, consideration paid was $79.7 million in cash, or $74.7 million net of cash acquired of $5.0 million, and excluding a net working capital adjustment receivable of $0.8 million. The net working capital adjustment receivable was settled during fiscal quarter ended April 3, 2021. The cash consideration was funded from existing cash on hand. The Company incurred $2.4 million in transaction costs.

The Company accounted for the GLI Acquisition using the acquisition method of accounting in accordance with FASB ASC 805, Business Combinations (“ASC 805”). This requires that the assets acquired and liabilities assumed be measured at fair value. The Company estimated, using Level 3 inputs, the fair value of certain fixed assets using a combination of the cost approach and the market approach. Inventories were valued using the comparative sales method, less the cost of disposal. Specific to intangible assets, dealer relationships were valued using the multi-period excess earnings method, whereas trade names were valued using the relief from royalty method. The Company recorded the assets acquired and liabilities assumed at their respective fair values as of the acquisition date.

The following summarizes the purchase price allocation for the GLI Acquisition:


(in thousands)	October 22, 2020
Total consideration	$	79,743
Allocation of purchase price:
Cash		5,007
Trade receivables		10,639
Inventories		11,854
Prepaid expenses and other current assets		3,949
Property and equipment		1,402
Intangible assets		46,700
Total assets acquired		79,551
Accounts payable		3,536
Accrued expenses and other current liabilities		8,853
Other long-term liabilities		524
Total liabilities assumed		12,913
Total fair value of net assets acquired, excluding goodwill:		66,638
Goodwill	$	13,105

The excess of the purchase price over the fair value of the identifiable assets acquired and the liabilities assumed in the acquisition was allocated to goodwill in the amount of $13.1 million. Goodwill resulting from the GLI Acquisition was attributable to the expanded market share and product offerings. Goodwill resulting from the GLI Acquisition is deductible for tax purposes.

The Company allocated a portion of the purchase price to specific intangible asset categories as follows:


	Fair Value		Amortization Period
Definite-lived intangible assets:	(in thousands)		(in years)
Trade names	$	9,500	9
Dealer relationships		37,200	8
	$	46,700

Pro Forma Financial Information (Unaudited)

The following pro forma financial information presents the statements of operations of the Company combined with GLI as if the acquisition occurred on January 1, 2020. The pro forma results do not include any anticipated synergies, cost savings or other expected benefits of an acquisition. The pro forma financial information is not necessarily indicative of what the financial results would have been had the acquisition been completed on January 1, 2020 and is not necessarily indicative of the Company’s future financial results.


	Three Fiscal Quarters
	Ended
(in thousands)	September 26,2020
Net sales	$	345,200
Net loss	$	21,952

The pro forma financial information presented above has been calculated after adjusting for the results of the GLI Acquisition for the three fiscal quarters ended September 26, 2020 to reflect the accounting effects as a result of the acquisition, including the amortization expense from acquired intangible assets, the depreciation and amortization expense from acquired property and equipment, the additional cost of sales from acquired inventory, interest expense from debt financing, and any related tax effects.

3.ACQUISITIONS

Narellan Group Pty Limited

On May 31, 2019 (the “Acquisition Date”), Latham Pool Products acquired Narellan Group Pty Limited and its subsidiaries (collectively “Narellan”) for a total purchase price of $35.2 million (the “Narellan Acquisition”). The results of Narellan’s operations have been included in the consolidated financial statements since that date. Narellan is a fiberglass pool manufacturer based in Australia with operations in Australia, New Zealand and Canada. The acquisition expanded the Company’s market share with a broader geographical footprint. Additionally, the acquisition provided the Company with an increase in dealer and franchise relationships. In connection with the Narellan Acquisition, consideration paid included $20.2 million in cash, $7.6 million in equity consideration and $7.4 million of contingent consideration as of the Acquisition Date. The cash consideration was funded, in part, through long-term debt proceeds of $22.3 million, net of discount of $0.7 million. The equity consideration consisted of common stock. The valuation of the common stock was prepared using a quantitative put options method. The Company incurred $1.1 million in transaction costs.

The Company agreed to pay the contingent consideration in the form of cash and equity consideration to the seller if certain EBITDA targets were achieved for any of the trailing twelve months periods ended December 31, 2019, June 30, 2020 or the year ended December 31, 2020 (the “Contingent Consideration”). The fair value of the Contingent Consideration at the Acquisition Date was $7.4 million (see Note 5).

On September 25, 2020, the Company amended the terms of the Narellan share purchase agreement to accelerate the settlement of the Contingent Consideration with the selling shareholders of Narellan based upon estimated EBITDA for the year ended December 31, 2020. The Contingent Consideration was settled through a cash payment of $6.6 million and the issuance of an additional 758,697 shares of common stock as equity consideration, which had a contractual value of $2.2 million and was recorded as a capital contribution on the consolidated statements of stockholders’ equity. As the fair value of the common stock issued of $2.8 million exceeded the contractual value of $2.2 million and the selling shareholders are also employees of the Company, the Company recorded the excess remuneration paid to the selling shareholders of $0.6 million as stock-based compensation in the consolidated

statements of operations and as contributed capital in the consolidated statements of stockholders’ equity as of and for the year-ended December 31, 2020.

The Company accounted for the Narellan Acquisition using the acquisition method of accounting in accordance with FASB ASC 805, Business Combinations (“ASC 805”). This requires that the assets acquired and liabilities assumed be measured at fair value. The Company estimated, using Level 3 inputs, the fair value of certain fixed assets using a combination of the cost approach and the market approach. Inventories were valued using the comparative sales method. Specific to intangible assets, dealer relationships and franchise relationships were valued using the multi-period excess earnings method, whereas trade names and proprietary pool designs were valued using the relief from royalty method. The Company recorded the assets acquired and liabilities assumed at their respective fair values as of the acquisition date.

The following summarizes the purchase price allocation for the Company’s acquisition of Narellan:


(in thousands)	May 31, 2019
Total consideration	$	35,233
Allocation of purchase price:
Cash		24
Trade receivables		1,420
Inventories		4,501
Prepaid expenses and other current assets		472
Property and equipment		4,861
Intangible assets		18,332
Deferred tax asset		126
Total assets acquired		29,736
Accounts payable		3,379
Accrued expenses and other current liabilities		442
Deferred tax liabilities		470
Total liabilities assumed		4,291
Total fair value of net assets acquired, excluding goodwill:		25,445
Goodwill	$	9,788

Total consideration was comprised of the following:


(in thousands)	Amount
Cash consideration	$	20,238
Fair value of equity consideration		7,567
Fair value of contingent consideration		7,428
Total consideration	$	35,233

The excess of the purchase price over the fair value of the identifiable assets acquired and the liabilities assumed in the acquisition was allocated to goodwill in the amount of $9.8 million. Goodwill resulting from the acquisition was attributable to the expanded market share and broader geographical footprint. The goodwill recognized is not deductible for tax purposes.

The Company allocated a portion of the purchase price to specific intangible asset categories as follows:


	Fair Value		Amortization
Definite-lived intangible assets:	(in thousands)		Period (in years)
Trade names and trademarks	$	9,535	25
Pool designs		5,728	14
Patented technology		1,410	5
Franchise relationships		1,187	4
Dealer relationships		472	5

The following are the net sales and net loss from Narellan included in the Company’s results from the Acquisition Date through December 31, 2019:


(in thousands)	Amount
Net sales	$	15,893
Net loss	$	(1,047)

GL International, LLC

On October 22, 2020, Latham Pool Products acquired GL International, LLC ( “GLI”) for a total purchase price of $79.7 million (the “GLI Acquisition”). The results of GLI’s operations have been included in the consolidated financial statements since that date. GLI specializes in manufacturing custom pool liners and safety covers. As a result, this acquisition expanded the Company’s liner and safety cover product offerings. In connection with the GLI Acquisition, consideration paid was $79.7 million in cash, or $74.7 million net of cash acquired of $5.0 million, and excluding a net working capital adjustment receivable of $0.8 million. The net working capital adjustment receivable was recorded in prepaid expenses and other current assets in the consolidated balance sheet as of December 31, 2020. The cash consideration was funded from existing cash on hand. The Company incurred $2.4 million in transaction costs.

The Company accounted for the GLI Acquisition using the acquisition method of accounting in accordance with FASB ASC 805, Business Combinations (“ASC 805”). This requires that the assets acquired and liabilities assumed be measured at fair value. The Company estimated, using Level 3 inputs, the fair value of certain fixed assets using a combination of the cost approach and the market approach. Inventories were valued using the comparative sales method, less the cost of disposal. Specific to intangible assets, dealer relationships were valued using the multi-period excess earnings method, whereas trade names were valued using the relief from royalty method. The Company recorded the assets acquired and liabilities assumed at their respective fair values as of the acquisition date.

The following summarizes the purchase price allocation for the Company’s acquisition of GLI:


(in thousands)	October 22, 2020
Total consideration	$	79,743
Allocation of purchase price:
Cash		5,007
Trade receivables		10,639
Inventories		11,854
Prepaid expenses and other current assets		3,949
Property and equipment		1,402
Intangible assets		46,700
Total assets acquired		79,551
Accounts payable		3,536
Accrued expenses and other current liabilities		8,853
Other long-term liabilities		524
Total liabilities assumed		12,913
Total fair value of net assets acquired, excluding goodwill:		66,638
Goodwill	$	13,105

The Company allocated a portion of the purchase price to specific intangible asset categories as follows:


	Fair Value		Amortization
Definite-lived intangible assets:	(in thousands)		Period (in years)
Trade names	$	9,500	9
Dealer relationships		37,200	8
	$	46,700

The following are the net sales and net loss from GLI included in the Company’s results from the GLI Acquisition Date through December 31, 2020:


	Year Ended
(in thousands)	December 31, 2020
Net sales	$	7,689
Net loss	$	(1,123)

Pro Forma Financial Information (Unaudited)

The following pro forma financial information presents the statements of operations of the Company combined with Narellan and GLI as if the acquisitions occurred on January 1, 2019. The pro forma results do not include any anticipated synergies, cost savings or other expected benefits of an acquisition. As the Narellan Acquisition closed on May 31, 2019, Narellan’s operating results have already been reflected in the Company’s consolidated statements of operations for the year ended December 31, 2020. The pro forma financial information is not necessarily indicative of what the financial results would have been had the acquisitions been completed on January 1, 2019 and is not necessarily indicative of the Company’s future financial results.


	Year Ended
	December 31,
(in thousands)	2019		2020
Net sales	$	382,029	$	462,802
Net income	$	6,066	$	26,344

The pro forma financial information presented above has been calculated after adjusting for the results of the Narellan Acquisition and GLI Acquisition for the year ended December 31, 2019 and for the GLI Acquisition for the year ended December 31, 2020 to reflect the accounting effects as a result of the acquisitions, including the amortization expense from acquired intangible assets, the depreciation and amortization expense from acquired property and equipment, the additional cost of sales from acquired inventory, interest expense from debt financing, and any related tax effects. With respect to the GLI Acquisition, transaction costs incurred during the year ended December 31, 2020 are reflected within pro forma net income for the year ended December 31, 2019, in order to reflect the GLI Acquisition as if it had occurred on January 1, 2019.

EQUITY METHOD INVESTMENT

9 Months Ended

12 Months Ended

Oct. 02, 2021

Dec. 31, 2020

EQUITY METHOD INVESTMENT

EQUITY METHOD INVESTMENT

4.EQUITY METHOD INVESTMENT

On October 30, 2020, the Company entered into a securities purchase agreement to purchase 28% of the common units of Premier Pools & Spas for $25.4 million. On August 6, 2021, the Company entered into a securities purchase agreement, together with Premier Holdco LLC, Premier Pools Management Corp. Holdco, Premier Franchise Management Holdco, PFC Holdco, and PPSF, LLC, pursuant to which Premier Group Holdings Inc., an affiliate of Wynnchurch Capital, L.P., acquired 29.8% of the common units of Premier Pools & Spas in aggregate from all sellers, including the Company. Sellers who were not related parties of Wynnchurch Capital, L.P. or the Company determined the purchase price per common unit paid by Premier Group Holdings Inc., indicating the amount paid for the common units of Premier Pools & Spas reflects the price that would be paid in an arm's-length transaction. As a result of the transaction, the Company received cash proceeds of $6.8 million and recorded a gain on the sale of equity method investment of $3.9 million, which was recorded within other (income) expense, net on the condensed consolidated statements of operations during the three fiscal quarters ended October 2, 2021.

The Company’s post-sale ownership interest in Premier Pools & Spas is 20.1%. The Company concluded, both before and after the sale of common units on August 6, 2021, that it holds common stock of Premier Pools & Spas and has the ability to exercise significant influence over Premier Pools & Spas but does not have a controlling financial interest. Accordingly, the Company accounts for this investment using the equity method of accounting. The Company’s proportionate share of the earnings or losses of the investee are reported as a separate line in the condensed consolidated statements of operations.

Premier Pools & Spas is a holding company for its manufacturing and franchising companies including PFC LLC, Premier Franchise Management LLC, Premier Pools Management LLC, and Premier Fiberglass LLC (the “Premier Companies”). The Premier Companies are a leading swimming pool-building brand that uses its franchisee network to sell and install pools around the United States.

In connection with Latham’s Investment in Premier Pools & Spas, the Company entered into an exclusive supply agreement with Premier Pools & Spas, the Premier Companies, and Premier Pools & Spas’ franchisees (“Premier Franchisees”) (together, the “Customer”). Premier Pools & Spas does not consolidate the operations of the Premier Franchisees. Per the supply agreement, Latham is the exclusive supplier of the Premier Franchisees for specific pool and pool products. These products include fiberglass products and package pool products. The initial term of the supply agreement is ten years.

For the first three years of the supply agreement, the Customer is entitled to a low-teens percentage rebate for all fiberglass pools sold and an additional growth rebate of a low single-digit to low-teens percentage based on year over year sales growth on fiberglass pools (the “Rebates”). The Rebates will be paid directly to Premier Pools Management Corp. Holdco.

As of October 2, 2021, the Company’s carrying amount for the equity method investment in Premier Pools & Spas was $22.0 million. During the three fiscal quarters ended October 2, 2021, Premier Pools & Spas paid the Company dividends of $2.2 million that are presented on the condensed consolidated statement of cash flows as distribution received from equity method investment of $1.8 million and return of equity method investment of $0.4 million, respectively. The Company has elected a three-month financial reporting lag. The Company recorded its interest in net earnings of Premier Pools & Spas $1.8 million for the three fiscal quarters ended October 2, 2021, along with a basis difference adjustment of $0.2 million.

4.EQUITY METHOD INVESTMENT

On October 30, 2020, the Company entered into a securities purchase agreement to purchase 28% of the common units of Premier Pools & Spas for $25.4 million. The Company concluded that it holds common stock of Premier Pools & Spas and has the ability to exercise significant influence over Premier Pools & Spas, but does not have a controlling financial interest. Accordingly, the Company accounts for this investment using the equity method of accounting. The Company’s proportionate share of the earnings or losses of the investee are reported as a separate line in the consolidated statements of operations.

is the exclusive supplier of the Premier Franchisees for specific pool and pool products. These products include fiberglass products and package pool products. The initial term of the supply agreement is ten years.

As of December 31, 2020, the Company’s carrying amount for the equity method investment in Premier Pools & Spas was $25.4 million. Because of the three-month financial reporting lag, the Company did not record any earnings from its interest in Premier Pools & Spas’ earnings for the year ended December 31, 2020. The Company will begin to record its interest in the net earnings of Premier Pools & Spas, along with adjustments for amortization of basis differences and any investee capital transactions, during the fiscal quarter ended April 3, 2021.

FAIR VALUE MEASUREMENTS

9 Months Ended

12 Months Ended

Oct. 02, 2021

Dec. 31, 2020

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS

5.FAIR VALUE MEASUREMENTS

Level 1 — Quoted prices in active markets for identical assets or liabilities.

Level 2 — Inputs, other than quoted prices in active markets, that are observable either directly or indirectly.

Level 3 — Unobservable inputs that reflect the Company’s own assumptions incorporated into valuation techniques. These valuations require significant judgment.

Assets and liabilities measured at fair value on a nonrecurring basis

The Company’s non-financial assets such as goodwill, intangible assets and property and equipment are measured at fair value upon acquisition or remeasured to fair value when an impairment charge is recognized. Such fair value measurements are based predominantly on Level 2 and Level 3 inputs.

Assets and liabilities measured at fair value on a recurring basis

On May 31, 2019 (the “Acquisition Date”), Latham Pool Products acquired Narellan Group Pty Limited and its subsidiaries (collectively “Narellan”) for a total purchase price of $35.2 million (the “Narellan Acquisition”). In connection with the Narellan Acquisition, consideration paid included $20.2 million in cash, $7.6 million in equity consideration and $7.4 million of contingent consideration as of the Acquisition Date. The Company agreed to pay the contingent consideration in the form of cash and equity consideration to the seller if certain EBITDA targets were achieved for any of the trailing twelve months periods ended December 31, 2019, June 30, 2020 or the year ended December 31, 2020 (the “Contingent Consideration”). The fair value of the Contingent Consideration at the Acquisition Date was $7.4 million. On September 25, 2020, the Company amended the terms of the Narellan Share Purchase Agreement and settled the Contingent Consideration with the selling shareholders of Narellan based upon estimated EBITDA for the year ended December 31, 2020.

The fair value of the Company’s Contingent Consideration was measured and recorded on the condensed consolidated balance sheets using Level 3 inputs because it was valued based on unobservable inputs and other estimation techniques due to the absence of quoted market prices. The Company valued the Contingent Consideration using a Monte Carlo simulation, which relied on management’s projections of EBITDA and the estimated probability of achieving such targets.

Estimates of fair value are subjective in nature, involve uncertainties and matters of significant judgment, and are made at a specific point in time. Thus, changes in key assumptions from period to period could significantly affect the estimate of fair value.

Pension Plan

The fair value of the benefit plan assets related to the Company’s pension plan was historically measured and recorded on the condensed consolidated balance sheets using Level 2 inputs. During the fiscal quarter ended September 26, 2020, the Company terminated its defined benefit pension plan.

Fair value of financial instruments

The Company considers the carrying amounts of cash, trade receivables, prepaid expenses and other current assets, accounts payable, and accrued expenses and other current liabilities, to approximate fair value due to the short-term maturities of these instruments.

Term loan

which are classified as Level 2 inputs. The following table sets forth the carrying amount and fair value of the term loan (in thousands):


	October 2, 2021				December 31, 2020
	Carrying		Estimated		Carrying		Estimated
	Value		Fair Value		Value		Fair Value
Term loan	$	234,201	$	235,372	$	221,496	$	221,081

Interest rate swap

The Company estimates the fair value of the interest rate swap (see Note 8) on a quarterly basis using Level 2 inputs, including the forward LIBOR curve. The fair value is estimated by comparing (i) the present value of all future monthly fixed rate payments versus (ii) the variable payments based on the forward LIBOR curve. As of October 2, 2021 and December 31, 2020, the Company’s interest rate swap liability was $0.6 million and $0.3 million, respectively, which was recorded within other long-term liabilities on the condensed consolidated balance sheets.

5.FAIR VALUE MEASUREMENTS

Assets and liabilities measured at fair value on a nonrecurring basis

Assets and liabilities measured at fair value on a recurring basis

The fair value of the Company’s Contingent Consideration is measured and recorded on the consolidated balance sheets using Level 3 inputs because it is valued based on unobservable inputs and other estimation techniques due to the absence of quoted market prices. The Company values the Contingent Consideration using a Monte Carlo simulation, which relies on management’s projections of EBITDA and the estimated probability of achieving such targets.

The following table presents a reconciliation of the Company’s Contingent Consideration measured and recorded at fair value on a recurring basis as of December 31, 2019, using significant unobservable inputs (Level 3) (in thousands):


	Fair Value
Balance as of May 31, 2019	$	7,428
Change in fair value of Contingent Consideration		1,441
Foreign currency translation adjustment		109
Balance as of December 31, 2019		8,978
Change in fair value of Contingent Consideration		(204)
Foreign currency translation adjustment		58
Payment of Contingent Consideration and issuance of common stock (see Note 3)		(8,832)
Balance as of September 25, 2020	$	—

The Monte Carlo simulation utilized the following unobservable inputs to determine the fair value of the Contingent Consideration as of December 31, 2019:


	Year Ended
	December 31, 2019
EBITDA risk adjustment	17.30	%
Annual EBITDA volatility	55.00	%
Risk-free rate of return	2.10	%

The fair value of the benefit plan assets is measured and recorded on the Company’s consolidated balance sheets using Level 2 inputs. The fair value of the Company’s plan assets was $1.3 million as of December 31, 2019. During the year ended December 31, 2020, the Company terminated its defined benefit pension plan (see Note 15).

Fair value of financial instruments

Term loan

The term loan is carried at amortized cost; however, the Company estimates the fair value of the term loan for disclosure purposes. The fair value of the term loan is determined using inputs based on observable market data of a non-public exchange using, which are classified as Level 2 inputs. The following table sets forth the carrying amount and fair value of the term loan (in thousands):


	December 31,
	2019				2020
	Carrying		Estimated		Carrying		Estimated
	Value		Fair Value		Value		Fair Value
Term loan	$	223,223	$	220,712	$	221,496	$	221,081

Interest rate swap

The Company estimates the fair value of the interest rate swap (see Note 9) on a quarterly basis using Level 2 inputs, including the forward LIBOR curve. The fair value is estimated by comparing (i) the present value of all future monthly fixed rate payments versus (ii) the variable payments based on the forward LIBOR curve. As of December 31, 2019 and 2020, the Company’s interest rate swap liability was $0 and $0.3 million, which was recorded within other long-term liabilities on the consolidated balance sheets.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

GOODWILL AND INTANGIBLE ASSETS, NET

9 Months Ended

12 Months Ended

Oct. 02, 2021

Dec. 31, 2020

GOODWILL AND INTANGIBLE ASSETS, NET

GOODWILL AND INTANGIBLE ASSETS, NET

6.GOODWILL AND INTANGIBLE ASSETS, NET

Goodwill

The carrying amount of goodwill as of October 2, 2021 and as of December 31, 2020 was $115.2 million and $115.8 million, respectively. The change in the carrying value during the three fiscal quarters ended October 2, 2021 was solely due to fluctuations in foreign currency exchange rates.

Intangible Assets

Intangible assets, net as of October 2, 2021 consisted of the following (in thousands):


	October 2, 2021
	Gross		Foreign
	Carrying		Currency		Accumulated
	Amount		Translation		Amortization		Net Amount
Trade names and trademarks	$	135,100	$	476	$	14,839	$	120,737
Patented technology		16,126		70		4,772		11,424
Pool designs		5,728		286		956		5,058
Franchise relationships		1,187		59		694		552
Dealer relationships		160,376		23		27,434		132,965
Non-competition agreements		2,476		—		1,381		1,095
	$	320,993	$	914	$	50,076	$	271,831

The Company recognized $16.6 million of amortization expense related to intangible assets during the three fiscal quarters ended October 2, 2021.

Intangible assets, net as of December 31, 2020 consisted of the following (in thousands):


	December 31,2020
	Gross		Foreign
	Carrying		Currency		Accumulated
	Amount		Translation		Amortization		Net Amount
Trade names and trademarks	$	135,100	$	1,047	$	10,258	$	125,889
Patented technology		16,126		155		3,452		12,829
Pool designs		5,728		629		648		5,709
Franchise relationships		1,187		130		470		847
Dealer relationships		160,376		52		17,697		142,731
Non-competition agreements		2,476		—		1,008		1,468
	$	320,993	$	2,013	$	33,533	$	289,473

The Company recognized $12.2 million of amortization expense related to intangible assets during the three fiscal quarters ended September 26, 2020.

The Company estimates that amortization expense related to definite-lived intangible assets will be as follows in each of the next five years and thereafter (in thousands):


	Estimated Future
Year Ended	Amortization Expense
Remainder of fiscal 2021	$	5,415
2022		21,959
2023		21,768
2024		20,948
2025		20,791
Thereafter		180,950
	$	271,831

6.GOODWILL AND INTANGIBLE ASSETS, NET

Goodwill

The following table presents the changes in the carrying value of goodwill during the years ended December 31, 2019 and 2020 (in thousands):


	Amount
Balance as of December 31, 2018	$	91,782
Acquisition		9,788
Foreign currency translation adjustment		102
Balance as of December 31, 2019		101,672
Acquisition		13,105
Foreign currency translation adjustment		973
Balance as of December 31, 2020	$	115,750

The Company performed an annual test for goodwill impairment in the fourth quarter of the fiscal year ended December 31, 2019 and 2020 in accordance with Step 1 of ASC 350 and determined that goodwill was not impaired.

Intangible Assets

Intangible assets, net as of December 31, 2019 consisted of the following (in thousands):


	December 31, 2019
	Gross		Foreign
	Carrying		Currency		Accumulated		Net
	Amount		Translation		Amortization		Amount
Trade names and trademarks	$	125,600	$	99	$	5,032	$	120,667
Patented technology		16,126		14		1,698		14,442
Pool designs		5,728		59		239		5,548
Franchise relationships		1,187		12		173		1,026
Dealer relationships		123,176		5		8,530		114,651
Non-competition agreements		2,476		—		513		1,963
	$	274,293	$	189	$	16,185	$	258,297

The Company recognized $15.6 million of amortization expense related to intangible assets during the year ended December 31, 2019.

Intangible assets, net as of December 31, 2020 consisted of the following (in thousands):


	December 31, 2020
	Gross		Foreign
	Carrying		Currency		Accumulated		Net
	Amount		Translation		Amortization		Amount
Trade names and trademarks	$	135,100	$	1,047	$	10,258	$	125,889
Patented technology		16,126		155		3,452		12,829
Pool designs		5,728		629		648		5,709
Franchise relationships		1,187		130		470		847
Dealer relationships		160,376		52		17,697		142,731
Non-competition agreements		2,476		—		1,008		1,468
	$	320,993	$	2,013	$	33,533	$	289,473

The Company recognized $17.3 million of amortization expense related to intangible assets during the year ended December 31, 2020.

The Company estimates that amortization expense related to definite-lived intangible assets will be as follows in each of the next five years and thereafter (in thousands):


	Estimated Future
	Amortization
Year Ended	Expense
2021	$	21,959
2022		21,959
2023		21,768
2024		20,948
2025		20,791
Thereafter		182,048
	$	289,473

INVENTORIES, NET

9 Months Ended

12 Months Ended

Oct. 02, 2021

Dec. 31, 2020

INVENTORIES, NET

INVENTORIES, NET

7.INVENTORIES, NET

Inventories, net consisted of the following (in thousands):


	October 2, 2021		December 31,2020
Raw materials	$	57,165	$	37,010
Finished goods		23,540		27,808
	$	80,705	$	64,818

7.INVENTORIES, NET

Inventories, net consisted of the following (in thousands):


	December 31,
	2019		2020
Raw materials	$	19,035	$	37,010
Finished goods		16,576		27,808
	$	35,611	$	64,818

PROPERTY AND EQUIPMENT, NET

12 Months Ended

Dec. 31, 2020

PROPERTY AND EQUIPMENT, NET

PROPERTY AND EQUIPMENT, NET

8.PROPERTY AND EQUIPMENT, NET

Property and equipment, net consisted of the following (in thousands):


	December 31,
	2019		2020
Land	$	1,613	$	1,613
Building and improvements		5,495		5,898
Machinery and equipment		17,661		21,478
Furniture and fixtures		511		1,406
Computer equipment and software		5,090		6,633
Molds and dyes		5,602		9,051
Leasehold improvements		2,611		3,573
Vehicles		2,338		3,061
Construction in progress		3,046		8,525
		43,967		61,238
Less: Accumulated depreciation		(6,122)		(13,881)
	$	37,845	$	47,357

Depreciation and amortization expense related to property and equipment during the years ended December 31, 2019 and 2020 was $6.0 million and $8.0 million, respectively. Construction in progress recorded as of December 31, 2019 and 2020 primarily related to an increase in fiberglass molds and fiberglass production capacity. The Company recorded aggregate losses on sales and disposals of property and equipment of $0.7 million and $0.3 million during the years ended December 31, 2019 and 2020 respectively.

LONG-TERM DEBT

9 Months Ended

12 Months Ended

Oct. 02, 2021

Dec. 31, 2020

LONG-TERM DEBT

LONG-TERM DEBT

8.LONG-TERM DEBT

The components of the Company’s outstanding debt obligations consisted of the following (in thousands):


	October 2,2021		December 31, 2020
Term loan	$	238,314	$	228,147
Less: Unamortized discount and debt issuance costs		(4,113)		(6,651)
Total debt		234,201		221,496
Less: Current portion of long-term debt		(14,234)		(13,042)
Total long-term debt	$	219,967	$	208,454

Revolving Credit Facility

On December 18, 2018, the Latham Pool Products entered into an agreement (the “Credit Agreement”) with Nomura Corporate Funding Americas, LLC (“Nomura”) that included a revolving line of credit (the “Revolver”) and letters of credit (“Letters of Credit” or collectively with the Revolver, the “Revolving Credit Facility”), as well as a term loan (as described below). The Revolving Credit Facility is available to finance ongoing general corporate and working capital needs with the Revolver of up to $30.0 million. The Revolving Credit Facility matures on December 18, 2023. On April 27, 2021, upon completion of the IPO, the Company used $16.0 million of the net proceeds from the IPO to repay $16.0 million then outstanding on the Revolver.

The Revolving Credit Facility allows for either Eurocurrency borrowings, bearing interest ranging from 4.50% to 4.75%, or base rate borrowings, bearing interest ranging from 3.50% to 3.75% depending on the First Lien Net Leverage Ratio, as defined in the Credit Agreement. A commitment fee accrues on any unused portion of the commitments under the Revolving Credit Facility. The commitment fee is due and payable quarterly in arrears and is equal to the applicable margin times the actual daily amount by which the $30.0 million initial commitment exceeds the sum of the outstanding borrowings under the Revolver and outstanding Letters of Credit obligations. The applicable margin ranges from 0.375% to 0.500% as determined by the Company’s First Lien Net Leverage Ratio as defined in the Credit Agreement.

investments, consolidate or merge with other entities, enter into transactions with affiliates and make prepayments. As of October 2, 2021 and December 31, 2020, the Company was in compliance with all financial-related covenants related to the Credit Agreement. There were no amounts outstanding as of both October 2, 2021 and December 31, 2020, on the Revolving Credit Facility or Letters of Credit.

Term Loan Facility

On December 18, 2018, in connection with the Acquisition, the Company entered into the Credit Agreement with Nomura to borrow $215.0 million (the “Original Term Loan”). The Company incurred debt issuance costs of $11.5 million related to the transaction.

The Original Term Loan was amended on May 29, 2019, to provide additional borrowings of $23.0 million at a discount of $0.7 million (the “First Amendment”) to fund the Narellan Acquisition. Any portion of the First Amendment not used to fund the Narellan Acquisition was required to be applied to repay the First Amendment in an aggregate amount equal to such portion of the First Amendment, without any premium or penalty.

On August 6, 2020, the Company entered into a Form of Affiliated Lender Assignment and Assumption with Nomura (the “Assignment”). Under the Assignment, the Company repaid $5.0 million of the outstanding principal balance.

On October 14, 2020, the Company entered into a subsequent amendment under the Original Term Loan with Nomura to borrow an additional $20.0 million (the “Second Amendment” and collectively with the Original Term Loan and the First Amendment, the “Term Loan”). The Company accounted for the borrowings under the Second Amendment as new debt and recorded $0.1 million of third-party costs as a direct reduction to the carrying amount of long-term debt on the condensed consolidated balance sheet. There were no financing costs incurred with the Second Amendment. The Term Loan has a maturity date of June 18, 2025. Interest and principal payments are due quarterly.

On January 25, 2021, the Company entered into a subsequent amendment to the Term Loan with Nomura to borrow an additional $175.0 million (the “Third Amendment” and collectively with the “Term Loan,” the “Amended Term Loan”). In connection with the Third Amendment, the Company is required to repay the outstanding principal balance of the Amended Term Loan in fixed quarterly payments of $5.8 million, commencing March 31, 2021. The amendment did not change the maturity date of the Term Loan and the Amended Term Loan bears interest under the same terms as the Term Loan. The Company accounted for $165.0 million of the borrowings under the Third Amendment as new debt and $10.0 million of the borrowings under the Third Amendment as a debt modification. The Company recorded an aggregate of $1.2 million of debt issuance costs as a direct reduction to the carrying amount of long-term debt on the condensed consolidated balance sheet. During the fiscal quarter ended July 3, 2021, in accordance with the terms of the Amended Term Loan, the Company elected to change the terms of the prepayment schedule from an inverse application to a pro rata application and as a result the Company is required to repay the outstanding principal balance of the Amended Term Loan in fixed quarterly payments of $3.6 million, commencing June 30, 2021.

The Amended Term Loan allowed for the $175.0 million of proceeds to be distributed to common stockholders. On February 2, 2021, the Company used the proceeds of the Amended Term Loan to repurchase and retire treasury stock of $64.9 million and to pay a dividend to Class A unitholders of $110.0 million.

On April 27, 2021, upon completion of the IPO, the Company used $152.7 million of the net proceeds from the IPO to repay $152.7 million of the Amended Term Loan.

The Term Loan bears interest at (1) a base rate equal to the highest of (i) the Federal Funds Rate plus 1∕2 of 1%, (ii) the “prime rate” published in the Money Rates section of the Wall Street Journal and (iii) LIBOR (2) plus a Loan Margin of (i) 6.00% for Eurocurrency Rate Loans and (ii) 5.00% for Base Rate Loans, as defined in the Credit Agreement. Principal payments under the First Amendment were calculated as 0.629% of the outstanding principal balance. Outstanding borrowings as of October 2, 2021 and December 31, 2020 were $234.2 million and $221.5 million, respectively, net of discount and debt issuance costs of $4.1 million and $6.7 million, respectively. In connection with the Term Loan, the Company is subject to various financial reporting, financial and other covenants, including maintaining specific liquidity measurements.

As of October 2, 2021, the unamortized debt issuance costs and discount on the Term Loan were $2.9 million and $1.2 million, respectively. As of December 31, 2020, the unamortized debt issuance costs and discount on the Term Loan were $6.3 million and $0.4 million, respectively. The effective interest rate was 7.24% at October 2, 2021.

Interest rate risk associated with the Company’s Credit Agreement is managed through an interest rate swap which the Company executed on April 30, 2020. The swap has an effective date of May 18, 2020 and a termination date of May 18, 2023. Under the terms of the swap, the Company fixed its LIBOR borrowing rate at 0.442% on a notional amount of $200.0 million. The interest rate swap is not designated as a hedging instrument for accounting purposes (see Note 2 and Note 5).

Principal payments due on the outstanding debt in the next five fiscal years, excluding any potential payments based on excess cash flow levels, are as follows (in thousands):


Year Ended	Term Loan Facility
Remainder of fiscal 2021	$	3,558
2022		14,234
2023		14,234
2024		14,234
2025		192,054
	$	238,314

The obligations under the Credit Agreement are guaranteed by certain wholly owned subsidiaries (the “Guarantors”) of the Company as defined in the security agreement. The obligations under the Credit Agreement are secured by substantially all of the Guarantors’ tangible and intangible assets, including their accounts receivables, equipment, intellectual property, inventory, cash and cash equivalents, deposit accounts and security accounts. The Credit Agreement also restricts payments and other distributions unless certain conditions are met, which could restrict the Company’s ability to pay dividends.

9.LONG-TERM DEBT

The components of the Company’s outstanding debt obligations consisted of the following (in thousands):


	December 31,
	2019		2020
Term loan	$	232,191	$	228,147
Less: Unamortized discount and debt issuance costs		(8,968)		(6,651)
Total debt		223,223		221,496
Less: Current portion of long-term debt		(6,891)		(13,042)
Total long-term debt	$	216,332	$	208,454

Revolving Credit Facility

On December 18, 2018, the Latham Pool Products entered into an agreement (the “Credit Agreement”) with Nomura Corporate Funding Americas, LLC (“Nomura”) that included a revolving line of credit (the “Revolver”) and letters of credit (“Letters of Credit” or collectively with the Revolver, the “Revolving Credit Facility”), as well as a term loan (as described below). The Revolving Credit Facility was utilized to finance ongoing general corporate and working capital needs with the Revolver of up to $30.0 million. The Revolving Credit Facility matures on December 18, 2023.

The Company is required to meet certain financial covenants, including maintaining specific liquidity measurements. There are also negative covenants, including certain restrictions on the Company’s ability to incur additional indebtedness, create liens, make investments, consolidate or merge with other entities, enter into transactions with affiliates and make prepayments. As of December 31, 2019 and 2020, the Company was in compliance with all financial-related covenants related to the Credit Agreement. There were no amounts outstanding as of December 31, 2019 and 2020 on the Revolving Credit Facility or Letters of Credit.

Term Loan Facility

The Original Term Loan was amended on May 29, 2019, to provide additional borrowings of $23.0 million at a discount of $0.7 million (the “First Amendment”) to fund the Company’s acquisition of Narellan (see Note 3). Any portion of the First Amendment not used to fund the acquisition of Narellan was required to be applied to repay the First Amendment in an aggregate amount equal to such portion of the First Amendment, without any premium or penalty.

On August 6, 2020, the Company entered into a Form of Affiliated Lender Assignment and Assumption with Nomura (the “Assignment”). Under the Assignment, the Company repaid $4.975 million of the outstanding principal balance, which was accepted as full repayment of $5.0 million of the outstanding principal balance. The Company treated the $25.0 thousand as a gain on extinguishment of debt and recorded it within interest expense, net in its consolidated statements of operations during the year ended December 31, 2020.

On October 14, 2020, the Company entered into a subsequent amendment under the Original Term Loan with Nomura to borrow an additional $20.0 million (the “Second Amendment” and collectively with the Original Term Loan and the First Amendment, the “Term Loan”). The Company accounted for the borrowings under the Second Amendment as new debt and recorded $0.1 million of third party costs as a direct reduction to the carrying amount of long-term debt on the consolidated balance sheet. There were no financing costs incurred with the Second Amendment. The Term Loan has a maturity date of June 18, 2025. Interest and principal payments are due quarterly.

The Term Loan bears interest at (1) a base rate equal to the highest of (i) the Federal Funds Rate plus 1∕2 of 1%, (ii) the “prime rate” published in the Money Rates section of the Wall Street Journal and (iii) LIBOR plus 1.00% (2) plus a Loan Margin of (i) 6.00% for Eurocurrency Rate Loans and (ii) 5.00% for Base Rate Loans, as defined in the Credit Agreement. Principal payments under the First Amendment were calculated as 0.629% of the outstanding principal balance. In connection with the Second Amendment, the Company is required to repay the outstanding principal balance of the Term Loan in fixed quarterly payments of $3.3 million, commencing March 31, 2021. The Company was required to make a $1.6 million principal payment for the partial period of October 14, 2020 through December 31, 2020. Outstanding borrowings at December 31, 2019 and 2020 were $223.2 million and $221.5 million, respectively, net of discount and debt issuance costs of $9.0 million and $6.7 million, respectively. In connection with the Term Loan, the Company is subject to various financial reporting, financial and other covenants, including maintaining specific liquidity measurements.

Under the Term Loan, the Company is required to make mandatory prepayments based on the Company’s excess cash flow for the year, as follows (as a percentage of the Company’s excess cash flow for the year):


	Mandatory
	Prepayment
Leverage Ratio	Percentage
> 3.50:1.00	90	%
> 3.00:1.00 and ≤ 3.50:1.00	75	%
> 2.50:1.00 and ≤ 3.00:1.00	50	%
> 2.00:1.00 and ≤ 2.50:1.00	25	%
≤ 2.00:1.00	0	%

Leverage Ratio in the table above is defined as of any date of determination, the ratio of the aggregate principal amount of indebtedness at such date to consolidated earnings before interest, taxes, depreciation and amortization.

As of December 31, 2019, the estimated mandatory prepayment to be paid was $0.9 million. There was no estimated mandatory prepayment to be paid as of December 31, 2020. As of December 31, 2020, the current portion of principal due on the Term Loan was $13.0 million, and this amount is shown as a current liability in current maturities of long-term debt on the consolidated balance sheets. There are also negative covenants, including, but not limited to, certain restrictions on the Company’s ability to incur additional indebtedness, create liens, make investments, consolidate or merge with other entities, enter into transactions with affiliates and make prepayments. As of December 31, 2019 and 2020, the Company was in compliance with all financial-related covenants related to the Term Loan.

As of December 31, 2019, the unamortized debt issuance costs and discount on the Term Loan were $8.4 million and $0.5 million, respectively. As of December 31, 2020, the unamortized debt issuance costs and discount on the Term Loan were $6.3 million and $0.4 million, respectively. The effective interest rate was 10.47% and 8.03% for the years ended December 31, 2019 and 2020, respectively.

The Company recorded interest expense associated with the Revolving Credit Facility, Second Amendment and interest rate swap, as follows (in thousands):


	Year Ended
	December 31,
	2019		2020
Cash interest expense	$	19,488	$	15,625
Amortization of debt issuance costs		2,968		2,179
Amortization of original issue discount		183		138
Interest rate swap		—		334
Gain on extinguishment of debt		—		(25)
Total interest expense	$	22,639	$	18,251

Principal payments due on the outstanding debt in the next five fiscal years, excluding any potential payments based on excess cash flow levels, are as follows (in thousands):


	Term Loan
Year Ended	Facility
2021	$	13,042
2022		13,042
2023		13,042
2024		13,042
2025		175,979
	$	228,147

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

12 Months Ended

Dec. 31, 2020

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

10.ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

Accrued expenses and other current liabilities consisted of the following (in thousands):


	December 31,
	2019		2020
Accrued sales rebates	$	6,520	$	15,511
Accrued product warranties		2,663		2,705
Accrued incentives		2,448		11,244
Accrued vacation		2,425		3,805
Accrued payroll		2,334		6,098
Deferred offering costs		—		1,040
Accrued third-party services		1,556		2,172
Other		4,287		8,031
Total accrued expenses and other current liabilities	$	22,233	$	50,606

PRODUCT WARRANTIES

9 Months Ended

12 Months Ended

Oct. 02, 2021

Dec. 31, 2020

PRODUCT WARRANTIES

PRODUCT WARRANTIES

9.PRODUCT WARRANTIES

The warranty reserve activity consisted of the following (in thousands):


	Three Fiscal Quarters Ended
	October 2,2021		September 26, 2020
Balance at the beginning of the year	$	2,882	$	2,846
Accruals for warranties issued		4,369		2,270
Less: Settlements made (in cash or in kind)		(3,825)		(2,501)
Balance at the end of the year	$	3,426	$	2,615

11.PRODUCT WARRANTIES

The warranty reserve activity consisted of the following (in thousands):


	Year Ended
	December 31,
	2019		2020
Balance at the beginning of the year	$	1,977	$	2,846
Accruals for warranties issued		3,729		3,966
Warranty liabilities assumed in GLI Acquisition		—		118
Less: Settlements made (in cash or in kind)		(2,860)		(4,048)
Balance at the end of the year		2,846		2,882
Less: Current portion of accrued warranty costs		(2,663)		(2,705)
Accrued warranty costs — less current portion	$	183	$	177

NET SALES

9 Months Ended

12 Months Ended

Oct. 02, 2021

Dec. 31, 2020

NET SALES

NET SALES

10.NET SALES

The following table sets forth the Company’s disaggregation of net sales by product line (in thousands):


	Three Fiscal Quarters Ended
	October 2, 2021		September 26, 2020
In-ground Swimming Pools	$	285,704	$	169,681
Covers		94,354		53,528
Liners		111,534		68,259
	$	491,592	$	291,468

12.NET SALES

The following table sets forth the Company’s disaggregation of net sales by product line (in thousands):


	Year Ended
	December 31,
	2019		2020
In-ground Swimming Pools	$	175,033	$	237,410
Covers		70,984		84,524
Liners		71,958		81,455
	$	317,975	$	403,389

The allowance for bad debt activity during the years ended December 31, 2019 and 2020 was as follows (in thousands):


	Year Ended
	December 31,
	2019		2020
Balance at the beginning of the year	$	1,535	$	1,322
Bad debt expense		253		358
Write-offs		(466)		(242)
Balance at the end of the year	$	1,322	$	1,438

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-URI http://asc.fasb.org/topic&trid=49130388

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-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
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+ Details

INCOME TAXES

9 Months Ended

12 Months Ended

Oct. 02, 2021

Dec. 31, 2020

INCOME TAXES

INCOME TAXES

11.INCOME TAXES

The effective income tax rate for the three fiscal quarters ended October 2, 2021 was (39.3)%, compared to 30.6% for the three fiscal quarters ended September 26, 2020. The difference between the U.S. federal statutory income tax rate and our effective income tax rate for the three fiscal quarters ended October 2, 2021 was primarily attributable to the discrete impact of stock compensation expense pursuant to the Reorganization. The results include pre-tax stock compensation expense of $98.9 million for three fiscal quarters ended October 2, 2021 related to the Reorganization for which there is no associated tax benefit. The difference between the

U.S. federal statutory income tax rate and our effective income tax rate for the three fiscal quarters ended September 26, 2020 was impacted by a variety of factors, primarily stemming from impact of state taxes. The pre-tax income for three fiscal quarters ended September 26, 2020 included losses in tax jurisdictions for which the company did not record a tax benefit, which increased the effective income tax rate for the three fiscal quarters ended September 26, 2020.

13.INCOME TAXES

The Company is subject to United States federal, state and local income taxes, as well as other foreign income taxes. The domestic and foreign components of its income (loss) before income taxes are as follows (in thousands):


	Year Ended
	December 31,
	2019		2020
Income (loss) before income taxes:
Domestic	$	9,939	$	19,609
Foreign		(7,153)		3,150
Total	$	2,786	$	22,759

Current and deferred income tax (benefit) expense is composed of the following (in thousands):


	Year Ended
	December 31,
	2019		2020
Current income tax (benefit) expense:
Domestic	$	5,424	$	10,342
Foreign		131		1,104
Total current tax (benefit) expense		5,555		11,446
Deferred income tax (benefit) expense:
Domestic		(10,020)		(4,532)
Foreign		(206)		(138)
Total deferred tax (benefit) expense		(10,226)		(4,670)
Total income tax (benefit) expense	$	(4,671)	$	6,776

The reconciliation of the statutory federal income tax rate with the Company’s effective income tax rate is as follows (% of Income Before Income Taxes):


	Year Ended		Year Ended
	December 31, 2019		December 31, 2020
Federal statutory tax rate	21.0	%	21.0	%
Foreign taxes less than U.S. statutory rate	1.1	%	1.2	%
State income tax, net of federal benefit	(67.2)	%	1.4	%
Uncertain tax positions	348.2	%	0.8	%
Change in valuation allowance	(5.9)	%	(1.1)	%
GILTI	21.1	%	1.5	%
Meals and entertainment	6.8	%	0.5	%
Foreign expenses not deductible for tax	56.1	%	1.7	%
Transaction costs not deductible for tax	13.3	%	2.0	%
Canadian restructuring	(562.4)	%	—
Canadian Branch Income	0.0	%	1.8	%
Other expenses not deductible for tax	(0.1)	%	(1.0)	%
	(168.0)	%	29.8	%

The Company continues to maintain valuation allowances in Canada primarily related to tax losses where it believes it is not more likely than not that the losses will be utilized. The following table summarizes changes in the valuation allowance (in thousands):


	Year Ended
	December 31,
	2019		2020
Balance at January 1	$	(12,300)	$	(12,463)
Additions		(163)		(241)
Balance at December 31	$	(12,463)	$	(12,704)

On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the U.S. Tax Cuts and Jobs Act of 2017 (the “Act”). The Act made broad and complex changes to the U.S. tax code, including, but not limited to (1) reducing the U.S. federal corporate tax rate from 35% to 21% effective January 1, 2018, (2) bonus depreciation that allows for full expensing of qualified property, (3) interest expense deduction limitation rules, and (4) new international tax provisions including, but not limited to, GILTI and Foreign Derived Intangible Income (“FDII”). The Act also required companies to record/pay a one-time transition tax on earnings of certain foreign subsidiaries that were previously tax deferred. The one-time transition tax was based on the Company’s total post-1986 earnings and profits (“E&P”) that were previously deferred for U.S. income tax purposes. The Company did not record a liability for the one-time transition tax for all of its foreign subsidiaries as the Company did not have aggregate E&P from those foreign subsidiaries.

During the year ended December 31, 2019, the Company finalized the computations of the income tax effects of the Act. Although the Company has completed its accounting for the effects of the Act, the determination of the Act’s income tax effects may change following future legislation or further interpretation of the Act based on the publication of recently proposed U.S. Treasury regulations and guidance from the Internal Revenue Service and state tax authorities. The Company has elected with respect to its treatment of GILTI to account for taxes on GILTI as incurred.

On March 27, 2020, the Coronavirus Aid, Relief and Economic Security Act (the “CARES Act”) was enacted in response to the coronavirus (“COVID-19”) pandemic. The CARES Act is aimed at providing assistance and health care for individuals, families, and businesses affected by COVID-19 and generally supporting the U.S. economy. The CARES Act, among other things, includes provisions related to refundable payroll tax credits, deferment of the employer portion of social security payments, net operating loss carryback periods, modifications to the net interest deduction limitations, and technical corrections to tax depreciation methods for qualified improvement property. The CARES Act did not have a material impact on the Company’s consolidated financial condition or results of operations for the year ended December 31, 2020.

On December 27, 2020, the Consolidated Appropriations Act (“CAA”) was enacted in further response to the COVID-19 pandemic. The CAA extended many of the provisions enacted by the CARES Act, the extension of which likewise did not have a material impact on the Company’s consolidated financial statements for the year ended December 31, 2020.

Deferred Income Taxes

Deferred income taxes recognize the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the carrying amounts used for income tax purposes, and the impact of available net operating loss (“NOL”) and tax credit carryforwards. These items are stated at the enacted tax rates that are expected to be in effect when taxes are actually paid or recovered. Deferred income tax assets and liabilities recorded on the balance sheets as of December 31, 2019 and 2020 consist of the following (in thousands):


	December 31,
	2019		2020
Deferred tax assets:
Net operating loss carryforwards	$	12,110	$	12,099
Inventories, net		680		473
Warranty reserve		649		789
Trade receivables		477		360
Profits interest units		389		760
Section 163(j)		289		—
Deferred taxes in equity		257		257
Accrued expenses		224		498
Transaction costs		107		607
Canadian tax credits		86		255
Other		64		216
Gross deferred tax assets		15,332		16,314
Valuation allowance		(12,463)		(12,704)
Total deferred tax asset		2,869		3,610
Less: Foreign deferred tax benefit		(206)		(345)
Total domestic deferred tax asset		2,663		3,265
Deferred tax liabilities:
Intangible assets		(57,221)		(53,874)
Property and equipment, net		(4,677)		(4,120)
Prepaid expenses		(773)		(464)
Total deferred tax liabilities		(62,671)		(58,458)
Net deferred tax liabilities	$	(60,008)	$	(55,193)

ASC 740 requires that the Company reduce its deferred income tax assets by a valuation allowance if, based on the weight of the available evidence, it is more likely than not that all or a portion of a deferred tax asset will not be realized. After consideration of all evidence, both positive and negative, the Company concluded that it is more likely than not that it will be unable to realize a portion of its deferred tax assets and that a valuation allowance of $12.7 million is necessary as of December 31, 2020. It is reasonably possible that the Company’s estimates of future taxable income may change within the next 12 months, resulting in a change to the valuation allowance in one or more jurisdictions.

As of December 31, 2020, the Company had net operating loss (“NOL”) carryforwards of approximately $12.1 million (tax effected), which will be available to offset future taxable income and tax liabilities. The NOL carryforwards expire in calendar years 2026 through 2039. As of December 31, 2020, a valuation allowance of $12.1 million has been recorded against the NOL carryforwards, where it appears more likely than not that such benefits will not be realized. The NOL carryforwards are in Canada.

The Company reinvests earnings of foreign operations indefinitely and, accordingly, does not provide for income taxes that could result from the remittance of such earnings. The Company acknowledges that it would need to accrue and pay taxes should it decide to repatriate cash generated from earnings of its foreign subsidiaries that are considered indefinitely reinvested but expect that the potential tax liability would be insignificant.

Tax Uncertainties

The liability related to uncertain tax positions, exclusive of interest, is $5.4 million at December 31, 2020. Of this amount, $5.4 million, if recognized, would impact the effective tax rate. The Company does not expect this balance to significantly change within the next twelve months. The Company’s policy is to record interest and penalties related to unrecognized tax benefits in the income tax provision (benefit). As of December 31, 2020, the Company had $0.2 million of accrued interest and no accrued penalties.

The Company is subject to income taxes in the U.S., certain states and numerous foreign jurisdictions. While the Company believes it has adequately provided for all tax positions, amounts asserted by taxing authorities could be greater than its accrued position. Accordingly, additional provisions on federal and foreign tax-related matters could be recorded in the future as revised estimates are made or the underlying matters are settled or otherwise resolved.

The Company files a federal consolidated tax return which includes all U.S. entities as well as several combined or consolidated state tax returns and separate state tax returns. In addition, the Company files Canadian and Australian tax returns for its Canadian, Australian, and New Zealand entities. The Company is subject to the regular examination of its income tax returns by tax authorities. The Company has audits ongoing for the year 2018 related to Utah State Income Tax. Examinations in material jurisdictions or changes in laws, rules, regulations or interpretations by local taxing authorities could result in impacts to tax years open under statute or to foreign operating structures currently in place. The Company regularly assesses the likelihood of adverse outcomes resulting from these examinations or changes in laws, rules, regulations or interpretations to determine the adequacy of its provision for taxes. It is possible the outcomes from these examinations will have a material adverse effect on the Company’s financial condition and operating results.

Tax years from the fiscal year ended December 31, 2017 through present are open for examination in the U.S. Tax years and tax periods ended December 31, 2016 through present are open for state examination. Tax years and tax periods from June 30, 2017 through present are currently open for examination in Canada. Tax years and tax periods from June 30, 2016 through present are currently open for examination in Australia. Tax years and tax periods from March 31, 2016 through present are currently open for examination in New Zealand.

The following is a reconciliation of the beginning and ending amount of uncertain tax positions (in thousands):


	Year Ended
	December 31,
	2019		2020
Balance at the beginning of the year	$	—	$	9,681
Additions for tax positions taken during prior years		—		181
Additions for tax positions taken during the current year		9,681		—
Balance at the end of the year	$	9,681	$	9,862

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References + Details

COMMITMENTS AND CONTINGENCIES

12 Months Ended

Dec. 31, 2020

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES

14.COMMITMENTS AND CONTINGENCIES

Lease Commitments

The Company leases certain property and equipment under agreements generally with terms of five years or less and may include certain renewal options. Rental expense during the years ended December 31, 2019 and 2020 was $6.1 million and $6.8 million, respectively.

The minimum annual rental commitments under non-cancelable operating leases as of December 31, 2020 are due as follows (in thousands):


Year Ended
2021	$	6,484
2022		5,971
2023		4,455
2024		3,834
2025		3,491
Thereafter		5,094
	$	29,329

Litigation

In the normal course of its business, the Company is involved in various legal proceedings involving contractual and employment relationships, product liability claims, trademark rights and a variety of other matters. The Company does not believe there are any pending legal proceedings that will have a material impact on the Company’s financial position, results of operations or cash flows. At each reporting date, the Company evaluates whether or not a potential loss amount or a potential range of loss is probable and reasonably estimable under the provisions of the authoritative guidance that addresses accounting for contingencies. The Company expenses as incurred the costs related to such legal proceedings.

EMPLOYEE BENEFIT PLANS

12 Months Ended

Dec. 31, 2020

EMPLOYEE BENEFIT PLANS

EMPLOYEE BENEFIT PLANS

15.EMPLOYEE BENEFIT PLANS

The Company has various retirement savings plans covering substantially all employees of the Company. These plans allow eligible employees to make discretionary contributions. The Company makes discretionary matching and other contributions depending on the plan and contributed $0.9 million and $0.8 million to such plans during the years ended December 31, 2019 and 2020, respectively.

During the year-ended December 31, 2020, the Company terminated its defined benefit pension plan, liquidating the existing plan assets and settling all remaining plan obligations associated with the Company’s pension plans, which resulted in an immaterial impact to the consolidated financial statements.

- Definition

The entire disclosure for retirement benefits.

+ References

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+ Details

PROFITS INTEREST UNITS

9 Months Ended

12 Months Ended

Oct. 02, 2021

Dec. 31, 2020

PROFITS INTEREST UNITS

PROFITS INTEREST UNITS

13.PROFITS INTEREST UNITS

Prior to the Reorganization, the Company’s Parent granted PIUs in the form of Class B units of the Parent to certain key employees and directors for purposes of retaining them and enabling such individuals to participate in the long-term growth and financial success of the Company. The following table summarizes the activity for all PIUs during the three fiscal quarters ended October 2, 2021 and the year ended December 31, 2020:


		Weighted-
		Average Grant-
	Number of PIUs	Date Fair Value
Balance at January 1, 2020	21,734,170	$	0.60
Granted	7,843,107		0.35
Forfeited	(2,152,315)		0.43
Balance at December 31, 2020	27,424,962
Granted	—
Forfeited	(1,266,068)		0.34
Balance at April 21, 2021	26,158,894
Converted at IPO in connection with the Reorganization	(26,158,894)	$	0.43
Balance at October 2, 2021	—

On January 29, 2021 an employee holder of PIUs terminated his employment with the Company, at which time all 1,055,057 of his performance-vesting units were forfeited. At the time of his termination, the employee held 527,528 of time-vesting units, of which 211,011 time-vesting units were vested. Per the terms of his termination agreement, the Company accelerated the vesting of an additional 105,506 time-vesting units, such that the total time-vesting units vested were equal to 316,517 upon his termination and the remaining 211,011 of unvested time-vesting units were forfeited upon his termination. As the employee’s profits interest units had not vested from an accounting perspective, the retention and immediate vesting of the retained time-vesting units was accounted for as a cancellation of the original award and a new grant under the revised terms. A cumulative catch-up charge of $1.1 million was recorded during the fiscal quarter ended April 3, 2021 to reflect the incremental fair value of the awards as of the date of the modification, as compared to the grant-date fair value.

16.PROFITS INTEREST UNITS

Total stock-based compensation expense related to the PIUs was $0.8 million and $1.2 million during the years ended December 31, 2019 and 2020, respectively, which is recorded in selling, general and administrative expense in the consolidated statements of operations. There was $6.4 million and $9.8 million of unrecognized compensation expense related to the units as of December 31, 2019 and 2020, respectively. The following table summarizes the activity for all PIUs during the years ended December 31, 2019 and 2020:


		Weighted-Average
		Grant-Date
	Number of PIUs	Fair Value
Balance at January 1, 2019	20,890,124	$	0.41
Granted	3,692,699	$	0.38
Forfeited	(2,848,653)	$	0.41
Balance at December 31, 2019	21,734,170
Granted	7,843,107	$	0.60
Forfeited	(2,152,315)	$	0.35
Balance at December 31, 2020	27,424,962	$	0.43

As of December 31, 2020, there are 18,011,127 Performance PIUs which are not expected to vest as the performance condition is not considered to be probable. As of December 31, 2020, there are 9,413,835 Time-Vesting PIUs which will continue to vest over the employees’ requisite service periods. As of December 31, 2019 and 2020, none of the Time-Vesting PIUs have vested for accounting purposes due to the Parent’s $0 Repurchase Right.

The Company uses the following assumptions in conjunction with the Contingent Claims Analysis Model to estimate the fair value of the PIUs:


	Year Ended		Year Ended
	December 31, 2019		December 31, 2020
Expected volatility	49.00	%	55.00	%
Risk-free interest rate	1.90	%	0.20	%
Expected term (in years)	4.6		3.2	%
Expected dividend yield	—	%	—	%

During the year ended December 31, 2020, the Company recorded $0.6 million in stock-based compensation expense related to the settlement of the Contingent Consideration (see Note 3 and Note 5), which is recorded in selling, general and administrative expense in the consolidated statements of operations.

COMMON STOCK

12 Months Ended

Dec. 31, 2020

COMMON STOCK

COMMON STOCK

17.COMMON STOCK

As of December 31, 2019 and 2020, the Company’s amended and restated certificate of incorporation authorized the Company to issue 500,000,000 shares of $0.0001 par value common stock.

Each share of common stock entitles the holder to one vote for each share of common stock held. Common stockholders are entitled to receive dividends, as declared by the board of directors. Through December 31, 2020, no dividends had been paid. During the years ended December 31, 2019 and 2020, the Company paid $0.2 million and $0.6 million, respectively, for the repurchase and retirement of treasury stock. During the years ended December 31, 2019 and 2020, the Company repurchased and retired 100,087 and 275,238 shares of treasury stock, respectively.

On October 14 and 20, 2020, the Company authorized the sale of 21,666,653 shares of the Company’s common stock to its existing shareholders for an aggregate of $64.9 million. The Company repurchased and retired those shares on February 2, 2021 (see Note 21).

NET INCOME PER SHARE

9 Months Ended

12 Months Ended

Oct. 02, 2021

Dec. 31, 2020

NET INCOME (LOSS) PER SHARE

NET INCOME (LOSS) PER SHARE

15.NET INCOME (LOSS) PER SHARE

Basic and diluted net income (loss) per share attributable to common stockholders was calculated as follows (in thousands, except share and per share data):


	Three Fiscal Quarters Ended
	October 2, 2021		September 26, 2020
Numerator:
Net (loss) income attributable to common stockholders	$	(56,361)	$	18,703
Denominator:
Weighted-average common shares outstanding
Basic		110,121,240		96,665,708
Diluted		110,121,240		97,122,885
Net (loss) income per share attributable to common stockholders:
Basic	$	(0.51)	$	0.19
Diluted	$	(0.51)	$	0.19

The following table includes the number of shares that may be dilutive common shares in the future that were not included in the computation of diluted net income (loss) per share because the effect was anti-dilutive:


	Three Fiscal Quarters Ended
	October 2, 2021	September 26, 2020
Restricted stock awards	6,813,166	47,446
Restricted stock units	84,866	—
Stock options	4,235	—

18.NET INCOME PER SHARE

Basic and diluted net income per share attributable to common stockholders was calculated as follows (in thousands, except share and per share data):


	Year Ended December 31,
	2019		2020
Numerator:
Net income attributable to common stockholders	$	7,457	$	15,983
Denominator:
Weighted-average common shares outstanding
Basic		95,032,265		101,606,966
Diluted		95,400,528		102,602,738
Net income per share attributable to common stockholders
Basic	$	0.08	$	0.16
Diluted	$	0.08	$	0.16

There were no potentially dilutive securities outstanding during the year ended December 31, 2019.

The following table includes the number of shares that may be dilutive common shares in the future that were not included in the computation of diluted net income per share because the effect was anti-dilutive:


	Year Ended December 31,
	2019	2020
Restricted stock awards	97,718	22,524

RELATED PARTY TRANSACTIONS

9 Months Ended

12 Months Ended

Oct. 02, 2021

Dec. 31, 2020

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS

16.RELATED PARTY TRANSACTIONS

BrightAI Services

Starting in 2020, BrightAI rendered services to the Company, for which the cost was capitalized as internal-use software. A co-founder of BrightAI Services has served on the Company’s board of directors since December 9, 2020. During the three fiscal quarters ended October 2, 2021 and the year ended December 31, 2020, the Company incurred $1.9 million and $0.5 million, respectively, associated with services performed by BrightAI, which is recorded as construction in progress within property and equipment, net on the condensed consolidated balance sheet as of October 2, 2021. As of October 2, 2021 and December 31, 2020, the Company had accounts payable-related party to BrightAI of $1.1 million and $0.5 million, respectively. There were no services rendered by BrightAI during the three fiscal quarters ended September 26, 2020.

Expense Reimbursement and Management Fees

The Company had an expense reimbursement agreement (the “management fee arrangement”) with the Sponsor and Wynnchurch Capital, L.P. for ongoing consulting and advisory services. The management fee arrangement provided for the aggregate payment of up to $1.0 million each year for reimbursement of expenses incurred with services provided and, depending on the extent of services provided, management fees. The management fee arrangement terminated upon consummation of the Company’s IPO.

The Company entered into a Stockholders’ Agreement with the Sponsor and Wynnchurch Capital, L.P. on April 27, 2021. The Stockholders’ Agreement requires the Company to reimburse the Sponsor and Wynnchurch Capital, L.P. the reasonable out-of-pocket costs and expenses in connection with monitoring and overseeing their investment in the Company.

There were no management fees incurred by the Company during the three fiscal quarters ended October 2, 2021 and September 26, 2020. The Company reimbursed less than $0.1 million of out-of-pocket costs and expenses to the Sponsor and Wynnchurch Capital, L.P. during both the three fiscal quarters ended October 2, 2021 and September 26, 2020. As of October 2, 2021, there were no outstanding amounts payable to the Sponsor and Wynnchurch Capital, L.P. As of September 26, 2020, there was less than $0.1 million outstanding amounts payable to the Sponsor and Wynnchurch Capital, L.P.

Operating Lease

In May 2019, in connection with the Narellan Acquisition, the Company assumed an operating lease for the manufacture, sale and storage of swimming pools and associated equipment with Acquigen Pty Ltd, which is owned by an employee who is also a shareholder of the Company. The lease expires in June 2028. As of October 2, 2021 and December 31, 2020, future minimum lease payments related to this lease totaled $3.6 million and $4.2 million, respectively. The Company recognized $0.1 million of rent expense related to this lease during each of the fiscal quarters ended October 2, 2021 and September 26, 2020, as well as $0.4 million and $0.3 million of rent expense during the three fiscal quarters ended October 2, 2021 and September 26, 2020, which is recognized within selling, general and administrative expense on the condensed consolidated statements of operations.

19.RELATED PARTY TRANSACTIONS

BrightAI Services

Starting in 2020, BrightAI rendered services to the Company, for which the cost was capitalized as internal-use software. A co-founder of BrightAI Services has served on the Company’s board of directors since December 9, 2020. During the year ended December 31, 2020, the Company incurred $0.5 million associated with services performed by BrightAI, which is recorded as construction in progress within in property and equipment, net and accounts payable — related party on the consolidated balance sheet as of December 31, 2020.

Expense Reimbursement and Management Fees

The Company has an expense reimbursement agreement (the “management fee arrangement”) with the Sponsor and Wynnchurch Capital, L.P. for ongoing consulting and advisory services. The management fee arrangement provides for the aggregate payment of up to $1.0 million each year for reimbursement of expenses incurred with services provided and, depending on the extent of services provided, management fees. The management fee arrangement will terminate upon consummation of the Company’s initial public offering.

The Company expensed $0.5 million of management fees during the year ended December 31, 2019 and expensed $47.7 thousand of reimbursement expenses during the year ended December 31, 2020. These fees are reported in selling, general and administrative expense in the consolidated statements of operations. As of December 31, 2019 and 2020, there were no outstanding amounts payable to the Sponsor and Wynnchurch Capital, L.P.

Operating Lease

In May 2019, in connection with the Narellan Acquisition, the Company assumed an operating lease for the manufacture, sale and storage of swimming pools and associated equipment with Acquigen Pty Ltd, which is owned by an employee who is also a shareholder of the Company. The lease expires in June 2028. As of December 31, 2019 and 2020, future minimum lease payments totaled $4.3 million and $4.2 million, respectively, related to this lease. The Company recognized $0.2 million and $0.4 million of rent expense related to this lease during the years ended December 31, 2019 and 2020, respectively, which is recognized within selling, general and administrative expense on the consolidated statements of operations.

SEGMENT AND GEOGRAPHIC INFORMATION

9 Months Ended

12 Months Ended

Oct. 02, 2021

Dec. 31, 2020

SEGMENT AND GEOGRAPHIC INFORMATION

SEGMENT AND GEOGRAPHIC INFORMATION

17.SEGMENT AND GEOGRAPHIC INFORMATION

Segment Information

During 2020, the Company made operational changes in how its CODM manages the business including organizational alignment, performance assessment and resource allocation. The segment disclosure is based on the intention to provide the users of the financial statements with a view of the business from the Company’s perspective. The Company conducts its business as one operating and reportable segment that designs, manufactures and markets in-ground swimming pools, liners and covers.

Geographic Information

Net sales by geography is based on the delivery address of the customer as specified in purchase order. Net sales by geographic area was as follows (in thousands):


	Three Fiscal Quarters Ended
	October 2, 2021		September 26, 2020
Net sales
United States	$	385,259	$	234,439
Canada		76,619		38,197
Australia		18,581		13,187
New Zealand		5,277		2,357
Other		5,856		3,288
Total	$	491,592	$	291,468

Our long-lived assets by geographic area, which consist of property and equipment, net assets were as follows (in thousands):


	October 2, 2021		December 31, 2020
Long-lived assets
United States	$	48,158	$	37,680
Canada		4,358		3,050
Australia		4,394		4,979
New Zealand		1,857		1,648
Total	$	58,767	$	47,357

20.SEGMENT AND GEOGRAPHIC INFORMATION

Segment Information

Geographic Information

Net sales by geography is based on the delivery address of the customer as specified in purchase order. Net sales by geographic area was as follows (in thousands):


	December 31,
	2019		2020
Net sales
United States	$	257,786	$	325,716
Canada		43,157		50,499
Australia		12,126		20,181
New Zealand		2,432		3,984
Other		2,474		3,009
Total	$	317,975	$	403,389

Our long-lived assets by geographic area, which consist of property and equipment, net assets were as follows (in thousands):


	December 31,
	2019		2020
Long-lived assets
United States	$	30,433	$	37,680
Canada		2,279		3,050
Australia		4,094		4,979
New Zealand		1,039		1,648
Total	$	37,845	$	47,357

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

CONDENSED FINANCIAL INFORMATION OF REGISTRANT (PARENT COMPANY ONLY)

12 Months Ended

Dec. 31, 2020

CONDENSED FINANCIAL INFORMATION OF REGISTRANT (PARENT COMPANY ONLY)

CONDENSED FINANCIAL INFORMATION OF REGISTRANT (PARENT COMPANY ONLY)

21.CONDENSED FINANCIAL INFORMATION OF REGISTRANT (PARENT COMPANY ONLY)

Latham Group, Inc.

(Parent Company Only)

CONDENSED BALANCE SHEETS

(in thousands, except share and per share data)


	December 31,
	2019		2020
Assets
Investment in subsidiary	$	193,795	$	281,609
Total assets	$	193,795	$	281,609
Liabilities and Stockholders’ Equity
Total liabilities	$	—	$	—
Stockholders’ Equity
Common stock, $0.0001 par value; 500,000,000 shares authorized at December 31, 2019 and 2020; 96,498,943 and 118,854,249 shares issued and outstanding as of December 31, 2019 and 2020, respectively		10		12
Additional paid-in capital		196,474		265,478
Retained earnings (accumulated deficit)		(2,218)		13,765
Accumulated other comprehensive income (loss)		(471)		2,354
Total stockholders’ equity		193,795		281,609
Total liabilities and stockholders’ equity	$	193,795	$	281,609

The accompanying notes are an integral part of these condensed financial statements.

Latham Group, Inc.

(Parent Company Only)

CONDENSED STATEMENTS OF OPERATIONS

(in thousands, except share and per share data)


	Year Ended December 31,
	2019		2020

Equity in net income of subsidiary	$	7,457	$	15,983
Net income attributable to common stockholders	$	7,457	$	15,983
Net income per share
Net income per share attributable to common stockholders
Basic	$	0.08	$	0.16
Diluted	$	0.08	$	0.16
Weighted-average common shares outstanding—basic and diluted
Basic		95,032,265		101,606,966
Diluted		95,400,528		102,602,738

The accompanying notes are an integral part of these condensed financial statements.

Latham Group, Inc.

(Parent Company Only)

CONDENSED STATEMENTS OF COMPREHENSIVE INCOME

(in thousands)


	Year Ended
	December 31,
	2019		2020
Net income	$	7,457	$	15,983
Equity in other comprehensive income (loss) of subsidiary		(670)		2,825
Comprehensive income	$	6,787	$	18,808

The accompanying notes are an integral part of these condensed financial statements.

Latham Group, Inc.

(Parent Company Only)

CONDENSED STATEMENT OF CASH FLOWS

(in thousands)


	Year Ended
	December 31,
	2019		2020
Cash flows from operating activities:
Net income	$	7,457	$	15,983
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in net income of subsidiary		(7,457)		(15,983)
Net cash provided by operating activities		—		—
Cash flows from investing activities:
Investment in subsidiary		—		(65,553)
Net cash used in investing activities		—		(65,553)
Cash flows from financing activities:
Proceeds from issuance of common stock		—		65,553
Net cash provided by financing activities		—		65,553
Net increase in cash		—		—
Cash at beginning of period		—		—
Cash at end of period	$	—	$	—

The accompanying notes are an integral part of these condensed financial statements.

Notes to Condensed Financial Statements of Registrant (Parent Company Only)

1.Basis of Presentation

These condensed parent company-only financial statements have been prepared in accordance with Rule 12-04, Schedule I of Regulation S-X. Latham Group, Inc. has no material assets or standalone operations other than its ownership in its consolidated subsidiaries. Under the terms of the Credit Agreement entered into by the Latham Pool Products, a wholly owned subsidiary of LIMC, which itself is a wholly owned subsidiary of Latham Group, Inc., Latham Pool Products is restricted from making dividend payments, loans or advances to Latham Group, Inc., unless certain conditions are met. As of December 31, 2019 and 2020, substantially all of the consolidated net assets of Latham Pool Products are considered restricted net assets as defined in Rule 4-08(e)(3) of Regulation S-X.

Latham Group, Inc. is able to transfer assets from Latham Pool Products in order to pay certain tax liabilities.

These condensed parent company financial statements have been prepared using the same accounting principles and policies described in the notes to the condensed financial statements, with the only exception being that the parent company accounts for its subsidiary using the equity method.

2.Common Stock

On October 14, 2020 and October 20, 2020, existing shareholders purchased an aggregate of 21,666,653 shares of Latham Group, Inc.’s common stock for an aggregate of $64.9 million. In addition, during the year ended December 31, 2020, the Company issued 205,197 shares of common stock for an aggregate of $0.6 million.

SUBSEQUENT EVENT

9 Months Ended

12 Months Ended

Oct. 02, 2021

Dec. 31, 2020

SUBSEQUENT EVENT

SUBSEQUENT EVENT

18.SUBSEQUENT EVENTS

Debt Amendment and Acquisition

On November 24, 2021, the Company entered into a subsequent amendment to the Amended Term Loan (the “Fifth Amendment”) with Nomura to provide for incremental term loans in an aggregate principal amount of $50.0 million (the “Incremental Term Loans”). The Incremental Term Loans will constitute a single class of term loans with the existing Amended Term Loan and will have terms identical including with respect to, among other things, maturity, the interest rate and amortization. The other terms of the existing Amended Term Loan as previously disclosed remain unchanged. In connection with the Fifth Amendment and the Amended Term Loan, the Company is required to repay the outstanding principal balance in fixed quarterly payments of $4.3 million, commencing December 31, 2021.

On November 24, 2021, the Incremental Term Loans, along with cash on hand, were used to finance the acquisition of Trojan Leisure Products, LLC d/b/a Radiant Pools (“Radiant Acquisition”) and to pay the fees and expenses incurred in connection with the Radiant Acquisition and the Fifth Amendment. The purchase price for the Radiant Acquisition was $90.0 million, subject to certain adjustments, including for working capital as compared to an agreed target, and certain indebtedness, cash and transaction expenses.

22.SUBSEQUENT EVENT

Debt Recapitalization

The Amended Term Loan allowed for the $175.0 million of proceeds to be distributed to common stockholders. On February 2, 2021, the Company used the proceeds of the Amended Term Loan to repurchase and retire treasury stock of $64.9 million and pay a dividend to Class A unitholders of $110.0 million.

SUBSEQUENT EVENT (UNAUDITED)

12 Months Ended

Dec. 31, 2020

SUBSEQUENT EVENT (UNAUDITED)

SUBSEQUENT EVENT (UNAUDITED)

23.SUBSEQUENT EVENT (UNAUDITED)

Omnibus Incentive Plan

On April 12, 2021, the Company’s stockholders approved the 2021 Omnibus Incentive Plan (the “Omnibus Incentive Plan”), which became effective on April 22, 2021, upon pricing of the IPO. The Omnibus Incentive Plan provides for the issuance of incentive stock options, non-qualified stock options, stock appreciation rights, restricted stock, restricted stock units and other stock-based and cash-based awards. The maximum aggregate number of shares reserved for issuance under the Omnibus Incentive Plan is 13,170,212 shares. The maximum grant date fair value of cash and equity awards that may be awarded to a non-employee director under the Omnibus Incentive Plan during any one fiscal year, together with any cash fees paid to such non-employee director during such fiscal year, will be $750 thousand. If any award granted under the Omnibus Incentive Plan expires, terminates, or is canceled or forfeited without being settled, vested or exercised, shares of the Company's common stock subject to such award will again be made available for future grants. Any shares that are surrendered or tendered to pay the exercise price of an award or to satisfy withholding taxes owed, or any shares reserved for issuance, but not issued, with respect to settlement of a stock appreciation right, will not again be available for grant under the Omnibus Incentive Plan.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

9 Months Ended

12 Months Ended

Oct. 02, 2021

Dec. 31, 2020

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

Unaudited Interim Financial Information

Basis of Presentation

Use of Estimates

Seasonality

Although the Company generally has demand for its products throughout the year, its business is seasonal and weather is one of the principal external factors affecting the business. In general, net sales and net income are highest during spring and summer, representing the peak months of swimming pool use, pool installation and remodeling and repair activities. Sales periods having severe weather may also affect net sales.

Revenue Recognition

The Company does not engage in contracts greater than one year, and therefore does not have any contract costs capitalized as of December 31, 2019 and 2020.

Warranties

Cost of Sales

Trade Receivables, Net

Concentration of Credit Risk

Fair Value Measurements

Level 1—Quoted prices in active markets for identical assets or liabilities.

Level 2—Inputs, other than quoted prices in active markets, that are observable either directly or indirectly.

Level 3—Unobservable inputs that reflect the Company’s own assumptions incorporated into valuation techniques. These valuations require significant judgment.

Interest Rate Swap

Business Combinations

Equity Method Investments

Investments and ownership interests in common stock or in-substance common stock are accounted for under the equity method accounting if the Company has the ability to exercise significant influence over the entity, but does not have a controlling financial interest. Under the equity method, investments are initially recognized at cost and adjusted to reflect the Company’s interest in net earnings, dividends received and other-than-temporary impairments. The Company records its interest in the net earnings of its equity method investee, along with adjustments for amortization of basis differences, investee capital transactions and other comprehensive income (loss), within earnings (losses) from equity method investment in the consolidated statements of operations. Basis differences represent differences between the cost of the investment and the underlying equity in net assets of the investment and are generally amortized over the lives of the related assets that gave rise to the underlying basis differences. Profits or losses related to intra-entity sales with its equity method investee are eliminated until realized by the investor or investee.

Equity method goodwill is not amortized or tested for impairment; instead the Company evaluates equity method investments for impairment when events or changes in circumstances indicate that the decline in value below the carrying amount of its equity method investment is determined to be other than temporary. In such a case, the decline in value below the carrying amount of its equity method investment is recognized in the consolidated statements of operations in the period the impairment occurs.

Inventories, Net

Property and Equipment, Net


		Estimated
		Useful Life
Building and improvements		25 years
Molds and dyes		5 – 10 years
Machinery and equipment (including computer equipment and software)		3 – 10 years
Furniture and fixtures		5 – 7 years
Vehicles		5 years

Long-Lived Assets


		Estimated
Asset		Useful Life
Patented technology		5 – 10 years
Trade names and trademarks		9 – 25 years
Pool designs		14 years
Franchise relationships		4 years
Dealer relationships		5 – 15 years
Non-competition agreements		5 years

Goodwill

Debt Issuance Costs

Deferred Offering Costs

Segment Reporting

Income Taxes

Stock-Based Compensation

Stock-based Compensation

Stock-Based Compensation

The Company accounts for forfeitures of stock-based awards as they occur rather than applying an estimated forfeiture rate to stock-based compensation expense.

Pension and Other Postretirement Plans

Foreign Currency Translation and Foreign Currency Transactions

Advertising Costs

Comprehensive Income (Loss)

Income tax (benefit) expense on the components of other comprehensive income (loss) was not significant for the years ended December 31, 2019 and 2020.

Earnings Per Share

Treasury Stock

Recently Adopted Accounting Standards

Recently Issued Accounting Pronouncements

Recently Adopted Accounting Standards

Recently Issued Accounting Pronouncements

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

12 Months Ended

Dec. 31, 2020

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Schedule of estimated useful lives of property, plant and equipment

Depreciation and amortization expense are recognized using the straight-line method over the estimated useful lives of each respective asset category as follows:


		Estimated
		Useful Life
Building and improvements		25 years
Molds and dyes		5 – 10 years
Machinery and equipment (including computer equipment and software)		3 – 10 years
Furniture and fixtures		5 – 7 years
Vehicles		5 years

Schedule of weighted-average estimated useful lives of finite lived intangible assets


		Estimated
Asset		Useful Life
Patented technology		5 – 10 years
Trade names and trademarks		9 – 25 years
Pool designs		14 years
Franchise relationships		4 years
Dealer relationships		5 – 15 years
Non-competition agreements		5 years

ACQUISITIONS (Tables)

9 Months Ended

12 Months Ended

Oct. 02, 2021

Dec. 31, 2020

Business Acquisition [Line Items]

Summary of purchase price allocation


(in thousands)	October 22, 2020
Total consideration	$	79,743
Allocation of purchase price:
Cash		5,007
Trade receivables		10,639
Inventories		11,854
Prepaid expenses and other current assets		3,949
Property and equipment		1,402
Intangible assets		46,700
Total assets acquired		79,551
Accounts payable		3,536
Accrued expenses and other current liabilities		8,853
Other long-term liabilities		524
Total liabilities assumed		12,913
Total fair value of net assets acquired, excluding goodwill:		66,638
Goodwill	$	13,105

Schedule of purchase price to specific intangible asset categories


	Fair Value		Amortization Period
Definite-lived intangible assets:	(in thousands)		(in years)
Trade names	$	9,500	9
Dealer relationships		37,200	8
	$	46,700

Schedule of pro forma financial information


	Three Fiscal Quarters
	Ended
(in thousands)	September 26,2020
Net sales	$	345,200
Net loss	$	21,952


	Year Ended
	December 31,
(in thousands)	2019		2020
Net sales	$	382,029	$	462,802
Net income	$	6,066	$	26,344

Narellan Group Pty Limited

Business Acquisition [Line Items]

Summary of purchase price allocation

The following summarizes the purchase price allocation for the Company’s acquisition of Narellan:


(in thousands)	May 31, 2019
Total consideration	$	35,233
Allocation of purchase price:
Cash		24
Trade receivables		1,420
Inventories		4,501
Prepaid expenses and other current assets		472
Property and equipment		4,861
Intangible assets		18,332
Deferred tax asset		126
Total assets acquired		29,736
Accounts payable		3,379
Accrued expenses and other current liabilities		442
Deferred tax liabilities		470
Total liabilities assumed		4,291
Total fair value of net assets acquired, excluding goodwill:		25,445
Goodwill	$	9,788

Schedule of purchase price to specific intangible asset categories

The Company allocated a portion of the purchase price to specific intangible asset categories as follows:


	Fair Value		Amortization
Definite-lived intangible assets:	(in thousands)		Period (in years)
Trade names and trademarks	$	9,535	25
Pool designs		5,728	14
Patented technology		1,410	5
Franchise relationships		1,187	4
Dealer relationships		472	5

Schedule of components total consideration

Total consideration was comprised of the following:


(in thousands)	Amount
Cash consideration	$	20,238
Fair value of equity consideration		7,567
Fair value of contingent consideration		7,428
Total consideration	$	35,233

Schedule of net sales and net loss from acquiree included in the Company's results from the Acquisition Date

The following are the net sales and net loss from Narellan included in the Company’s results from the Acquisition Date through December 31, 2019:


(in thousands)	Amount
Net sales	$	15,893
Net loss	$	(1,047)

GL International, LLC

Business Acquisition [Line Items]

Summary of purchase price allocation

The following summarizes the purchase price allocation for the Company’s acquisition of GLI:


(in thousands)	October 22, 2020
Total consideration	$	79,743
Allocation of purchase price:
Cash		5,007
Trade receivables		10,639
Inventories		11,854
Prepaid expenses and other current assets		3,949
Property and equipment		1,402
Intangible assets		46,700
Total assets acquired		79,551
Accounts payable		3,536
Accrued expenses and other current liabilities		8,853
Other long-term liabilities		524
Total liabilities assumed		12,913
Total fair value of net assets acquired, excluding goodwill:		66,638
Goodwill	$	13,105

Schedule of purchase price to specific intangible asset categories

The Company allocated a portion of the purchase price to specific intangible asset categories as follows:


	Fair Value		Amortization
Definite-lived intangible assets:	(in thousands)		Period (in years)
Trade names	$	9,500	9
Dealer relationships		37,200	8
	$	46,700

Schedule of net sales and net loss from acquiree included in the Company's results from the Acquisition Date

The following are the net sales and net loss from GLI included in the Company’s results from the GLI Acquisition Date through December 31, 2020:


	Year Ended
(in thousands)	December 31, 2020
Net sales	$	7,689
Net loss	$	(1,123)

FAIR VALUE MEASUREMENTS (Tables)

9 Months Ended

12 Months Ended

Oct. 02, 2021

Dec. 31, 2020

Contingent consideration

Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]

Schedule of reconciliation of Company's Contingent Consideration measured and recorded at fair value on a recurring basis, using significant unobservable inputs (Level 3)


	Fair Value
Balance as of May 31, 2019	$	7,428
Change in fair value of Contingent Consideration		1,441
Foreign currency translation adjustment		109
Balance as of December 31, 2019		8,978
Change in fair value of Contingent Consideration		(204)
Foreign currency translation adjustment		58
Payment of Contingent Consideration and issuance of common stock (see Note 3)		(8,832)
Balance as of September 25, 2020	$	—

Schedule of significant unobservable inputs for fair value measurements

The Monte Carlo simulation utilized the following unobservable inputs to determine the fair value of the Contingent Consideration as of December 31, 2019:


	Year Ended
	December 31, 2019
EBITDA risk adjustment	17.30	%
Annual EBITDA volatility	55.00	%
Risk-free rate of return	2.10	%

Term loan

Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]

Schedule of financial liabilities at fair value on a recurring basis


	October 2, 2021				December 31, 2020
	Carrying		Estimated		Carrying		Estimated
	Value		Fair Value		Value		Fair Value
Term loan	$	234,201	$	235,372	$	221,496	$	221,081

The following table sets forth the carrying amount and fair value of the term loan (in thousands):


	December 31,
	2019				2020
	Carrying		Estimated		Carrying		Estimated
	Value		Fair Value		Value		Fair Value
Term loan	$	223,223	$	220,712	$	221,496	$	221,081

GOODWILL AND INTANGIBLE ASSETS, NET (Tables)

9 Months Ended

12 Months Ended

Oct. 02, 2021

Dec. 31, 2020

GOODWILL AND INTANGIBLE ASSETS, NET

Schedule of changes in the carrying value of goodwill

The following table presents the changes in the carrying value of goodwill during the years ended December 31, 2019 and 2020 (in thousands):


	Amount
Balance as of December 31, 2018	$	91,782
Acquisition		9,788
Foreign currency translation adjustment		102
Balance as of December 31, 2019		101,672
Acquisition		13,105
Foreign currency translation adjustment		973
Balance as of December 31, 2020	$	115,750

Schedule of Intangible assets

Intangible assets, net as of October 2, 2021 consisted of the following (in thousands):


	October 2, 2021
	Gross		Foreign
	Carrying		Currency		Accumulated
	Amount		Translation		Amortization		Net Amount
Trade names and trademarks	$	135,100	$	476	$	14,839	$	120,737
Patented technology		16,126		70		4,772		11,424
Pool designs		5,728		286		956		5,058
Franchise relationships		1,187		59		694		552
Dealer relationships		160,376		23		27,434		132,965
Non-competition agreements		2,476		—		1,381		1,095
	$	320,993	$	914	$	50,076	$	271,831

Intangible assets, net as of December 31, 2020 consisted of the following (in thousands):


	December 31,2020
	Gross		Foreign
	Carrying		Currency		Accumulated
	Amount		Translation		Amortization		Net Amount
Trade names and trademarks	$	135,100	$	1,047	$	10,258	$	125,889
Patented technology		16,126		155		3,452		12,829
Pool designs		5,728		629		648		5,709
Franchise relationships		1,187		130		470		847
Dealer relationships		160,376		52		17,697		142,731
Non-competition agreements		2,476		—		1,008		1,468
	$	320,993	$	2,013	$	33,533	$	289,473

Intangible assets, net as of December 31, 2019 consisted of the following (in thousands):


	December 31, 2019
	Gross		Foreign
	Carrying		Currency		Accumulated		Net
	Amount		Translation		Amortization		Amount
Trade names and trademarks	$	125,600	$	99	$	5,032	$	120,667
Patented technology		16,126		14		1,698		14,442
Pool designs		5,728		59		239		5,548
Franchise relationships		1,187		12		173		1,026
Dealer relationships		123,176		5		8,530		114,651
Non-competition agreements		2,476		—		513		1,963
	$	274,293	$	189	$	16,185	$	258,297

The Company recognized $15.6 million of amortization expense related to intangible assets during the year ended December 31, 2019.

Intangible assets, net as of December 31, 2020 consisted of the following (in thousands):


	December 31, 2020
	Gross		Foreign
	Carrying		Currency		Accumulated		Net
	Amount		Translation		Amortization		Amount
Trade names and trademarks	$	135,100	$	1,047	$	10,258	$	125,889
Patented technology		16,126		155		3,452		12,829
Pool designs		5,728		629		648		5,709
Franchise relationships		1,187		130		470		847
Dealer relationships		160,376		52		17,697		142,731
Non-competition agreements		2,476		—		1,008		1,468
	$	320,993	$	2,013	$	33,533	$	289,473

Schedule of estimated amortization expense related to definite-lived intangible assets

The Company estimates that amortization expense related to definite-lived intangible assets will be as follows in each of the next five years and thereafter (in thousands):


	Estimated Future
Year Ended	Amortization Expense
Remainder of fiscal 2021	$	5,415
2022		21,959
2023		21,768
2024		20,948
2025		20,791
Thereafter		180,950
	$	271,831

The Company estimates that amortization expense related to definite-lived intangible assets will be as follows in each of the next five years and thereafter (in thousands):


	Estimated Future
	Amortization
Year Ended	Expense
2021	$	21,959
2022		21,959
2023		21,768
2024		20,948
2025		20,791
Thereafter		182,048
	$	289,473

INVENTORIES, NET (Tables)

9 Months Ended

12 Months Ended

Oct. 02, 2021

Dec. 31, 2020

INVENTORIES, NET

Schedule of inventories, net

Inventories, net consisted of the following (in thousands):


	October 2, 2021		December 31,2020
Raw materials	$	57,165	$	37,010
Finished goods		23,540		27,808
	$	80,705	$	64,818

Inventories, net consisted of the following (in thousands):


	December 31,
	2019		2020
Raw materials	$	19,035	$	37,010
Finished goods		16,576		27,808
	$	35,611	$	64,818

PROPERTY AND EQUIPMENT, NET (Tables)

12 Months Ended

Dec. 31, 2020

PROPERTY AND EQUIPMENT, NET

Schedule of Property and Equipment, net

Property and equipment, net consisted of the following (in thousands):


	December 31,
	2019		2020
Land	$	1,613	$	1,613
Building and improvements		5,495		5,898
Machinery and equipment		17,661		21,478
Furniture and fixtures		511		1,406
Computer equipment and software		5,090		6,633
Molds and dyes		5,602		9,051
Leasehold improvements		2,611		3,573
Vehicles		2,338		3,061
Construction in progress		3,046		8,525
		43,967		61,238
Less: Accumulated depreciation		(6,122)		(13,881)
	$	37,845	$	47,357

LONG-TERM DEBT (Tables)

9 Months Ended

12 Months Ended

Oct. 02, 2021

Dec. 31, 2020

LONG-TERM DEBT

Components of the Company's outstanding debt obligations

The components of the Company’s outstanding debt obligations consisted of the following (in thousands):


	October 2,2021		December 31, 2020
Term loan	$	238,314	$	228,147
Less: Unamortized discount and debt issuance costs		(4,113)		(6,651)
Total debt		234,201		221,496
Less: Current portion of long-term debt		(14,234)		(13,042)
Total long-term debt	$	219,967	$	208,454

The components of the Company’s outstanding debt obligations consisted of the following (in thousands):


	December 31,
	2019		2020
Term loan	$	232,191	$	228,147
Less: Unamortized discount and debt issuance costs		(8,968)		(6,651)
Total debt		223,223		221,496
Less: Current portion of long-term debt		(6,891)		(13,042)
Total long-term debt	$	216,332	$	208,454

Schedule of mandatory prepayments based on Company's excess cash flow for the year


	Mandatory
	Prepayment
Leverage Ratio	Percentage
> 3.50:1.00	90	%
> 3.00:1.00 and ≤ 3.50:1.00	75	%
> 2.50:1.00 and ≤ 3.00:1.00	50	%
> 2.00:1.00 and ≤ 2.50:1.00	25	%
≤ 2.00:1.00	0	%

Components of interest expense

Principal payments due on the outstanding debt in the next five fiscal years, excluding any potential payments based on excess cash flow levels, are as follows (in thousands):


Year Ended	Term Loan Facility
Remainder of fiscal 2021	$	3,558
2022		14,234
2023		14,234
2024		14,234
2025		192,054
	$	238,314

The Company recorded interest expense associated with the Revolving Credit Facility, Second Amendment and interest rate swap, as follows (in thousands):


	Year Ended
	December 31,
	2019		2020
Cash interest expense	$	19,488	$	15,625
Amortization of debt issuance costs		2,968		2,179
Amortization of original issue discount		183		138
Interest rate swap		—		334
Gain on extinguishment of debt		—		(25)
Total interest expense	$	22,639	$	18,251

Principal payments due on the outstanding debt

Principal payments due on the outstanding debt in the next five fiscal years, excluding any potential payments based on excess cash flow levels, are as follows (in thousands):


	Term Loan
Year Ended	Facility
2021	$	13,042
2022		13,042
2023		13,042
2024		13,042
2025		175,979
	$	228,147

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

+ References

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Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
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-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21475-112644

+ Details

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables)

12 Months Ended

Dec. 31, 2020

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

Summary of accrued expenses and other current liabilities

Accrued expenses and other current liabilities consisted of the following (in thousands):


	December 31,
	2019		2020
Accrued sales rebates	$	6,520	$	15,511
Accrued product warranties		2,663		2,705
Accrued incentives		2,448		11,244
Accrued vacation		2,425		3,805
Accrued payroll		2,334		6,098
Deferred offering costs		—		1,040
Accrued third-party services		1,556		2,172
Other		4,287		8,031
Total accrued expenses and other current liabilities	$	22,233	$	50,606

PRODUCT WARRANTIES (Tables)

9 Months Ended

12 Months Ended

Oct. 02, 2021

Dec. 31, 2020

PRODUCT WARRANTIES

Summary of Warranty reserve activity

The warranty reserve activity consisted of the following (in thousands):


	Three Fiscal Quarters Ended
	October 2,2021		September 26, 2020
Balance at the beginning of the year	$	2,882	$	2,846
Accruals for warranties issued		4,369		2,270
Less: Settlements made (in cash or in kind)		(3,825)		(2,501)
Balance at the end of the year	$	3,426	$	2,615

The warranty reserve activity consisted of the following (in thousands):


	Year Ended
	December 31,
	2019		2020
Balance at the beginning of the year	$	1,977	$	2,846
Accruals for warranties issued		3,729		3,966
Warranty liabilities assumed in GLI Acquisition		—		118
Less: Settlements made (in cash or in kind)		(2,860)		(4,048)
Balance at the end of the year		2,846		2,882
Less: Current portion of accrued warranty costs		(2,663)		(2,705)
Accrued warranty costs — less current portion	$	183	$	177

NET SALES (Tables)

9 Months Ended

12 Months Ended

Oct. 02, 2021

Dec. 31, 2020

NET SALES

Summary of disaggregation of net sales by product line

The following table sets forth the Company’s disaggregation of net sales by product line (in thousands):


	Three Fiscal Quarters Ended
	October 2, 2021		September 26, 2020
In-ground Swimming Pools	$	285,704	$	169,681
Covers		94,354		53,528
Liners		111,534		68,259
	$	491,592	$	291,468

The following table sets forth the Company’s disaggregation of net sales by product line (in thousands):


	Year Ended
	December 31,
	2019		2020
In-ground Swimming Pools	$	175,033	$	237,410
Covers		70,984		84,524
Liners		71,958		81,455
	$	317,975	$	403,389

Schedule for allowance of bad debt activity

The allowance for bad debt activity during the years ended December 31, 2019 and 2020 was as follows (in thousands):


	Year Ended
	December 31,
	2019		2020
Balance at the beginning of the year	$	1,535	$	1,322
Bad debt expense		253		358
Write-offs		(466)		(242)
Balance at the end of the year	$	1,322	$	1,438

INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2020

INCOME TAXES

Schedule of domestic and foreign components of its income (loss) before income taxes


	Year Ended
	December 31,
	2019		2020
Income (loss) before income taxes:
Domestic	$	9,939	$	19,609
Foreign		(7,153)		3,150
Total	$	2,786	$	22,759

Schedule of current and deferred income tax (benefit) expense


	Year Ended
	December 31,
	2019		2020
Current income tax (benefit) expense:
Domestic	$	5,424	$	10,342
Foreign		131		1,104
Total current tax (benefit) expense		5,555		11,446
Deferred income tax (benefit) expense:
Domestic		(10,020)		(4,532)
Foreign		(206)		(138)
Total deferred tax (benefit) expense		(10,226)		(4,670)
Total income tax (benefit) expense	$	(4,671)	$	6,776

Schedule of reconciliation of statutory federal income tax rate with Company's effective income tax rate


	Year Ended		Year Ended
	December 31, 2019		December 31, 2020
Federal statutory tax rate	21.0	%	21.0	%
Foreign taxes less than U.S. statutory rate	1.1	%	1.2	%
State income tax, net of federal benefit	(67.2)	%	1.4	%
Uncertain tax positions	348.2	%	0.8	%
Change in valuation allowance	(5.9)	%	(1.1)	%
GILTI	21.1	%	1.5	%
Meals and entertainment	6.8	%	0.5	%
Foreign expenses not deductible for tax	56.1	%	1.7	%
Transaction costs not deductible for tax	13.3	%	2.0	%
Canadian restructuring	(562.4)	%	—
Canadian Branch Income	0.0	%	1.8	%
Other expenses not deductible for tax	(0.1)	%	(1.0)	%
	(168.0)	%	29.8	%

Schedule of changes in valuation allowance


	Year Ended
	December 31,
	2019		2020
Balance at January 1	$	(12,300)	$	(12,463)
Additions		(163)		(241)
Balance at December 31	$	(12,463)	$	(12,704)

Schedule of deferred income tax assets and liabilities


	December 31,
	2019		2020
Deferred tax assets:
Net operating loss carryforwards	$	12,110	$	12,099
Inventories, net		680		473
Warranty reserve		649		789
Trade receivables		477		360
Profits interest units		389		760
Section 163(j)		289		—
Deferred taxes in equity		257		257
Accrued expenses		224		498
Transaction costs		107		607
Canadian tax credits		86		255
Other		64		216
Gross deferred tax assets		15,332		16,314
Valuation allowance		(12,463)		(12,704)
Total deferred tax asset		2,869		3,610
Less: Foreign deferred tax benefit		(206)		(345)
Total domestic deferred tax asset		2,663		3,265
Deferred tax liabilities:
Intangible assets		(57,221)		(53,874)
Property and equipment, net		(4,677)		(4,120)
Prepaid expenses		(773)		(464)
Total deferred tax liabilities		(62,671)		(58,458)
Net deferred tax liabilities	$	(60,008)	$	(55,193)

Schedule of reconciliation of beginning and ending amount of uncertain tax positions


	Year Ended
	December 31,
	2019		2020
Balance at the beginning of the year	$	—	$	9,681
Additions for tax positions taken during prior years		—		181
Additions for tax positions taken during the current year		9,681		—
Balance at the end of the year	$	9,681	$	9,862

COMMITMENTS AND CONTINGENCIES (Tables)

12 Months Ended

Dec. 31, 2020

COMMITMENTS AND CONTINGENCIES

Summary of minimum annual rental commitments under non-cancelable operating leases

The minimum annual rental commitments under non-cancelable operating leases as of December 31, 2020 are due as follows (in thousands):


Year Ended
2021	$	6,484
2022		5,971
2023		4,455
2024		3,834
2025		3,491
Thereafter		5,094
	$	29,329

PROFITS INTEREST UNITS (Tables)

12 Months Ended

Dec. 31, 2020

PROFITS INTEREST UNITS

Schedule of activity of all PIUs


		Weighted-Average
		Grant-Date
	Number of PIUs	Fair Value
Balance at January 1, 2019	20,890,124	$	0.41
Granted	3,692,699	$	0.38
Forfeited	(2,848,653)	$	0.41
Balance at December 31, 2019	21,734,170
Granted	7,843,107	$	0.60
Forfeited	(2,152,315)	$	0.35
Balance at December 31, 2020	27,424,962	$	0.43

Schedule of assumptions in conjunction with the Contingent Claims Analysis Model to estimate the fair value of the PIUs


	Year Ended		Year Ended
	December 31, 2019		December 31, 2020
Expected volatility	49.00	%	55.00	%
Risk-free interest rate	1.90	%	0.20	%
Expected term (in years)	4.6		3.2	%
Expected dividend yield	—	%	—	%

NET INCOME PER SHARE (Tables)

9 Months Ended

12 Months Ended

Oct. 02, 2021

Dec. 31, 2020

NET INCOME (LOSS) PER SHARE

Schedule of basic and diluted earnings (loss) per share


	Three Fiscal Quarters Ended
	October 2, 2021		September 26, 2020
Numerator:
Net (loss) income attributable to common stockholders	$	(56,361)	$	18,703
Denominator:
Weighted-average common shares outstanding
Basic		110,121,240		96,665,708
Diluted		110,121,240		97,122,885
Net (loss) income per share attributable to common stockholders:
Basic	$	(0.51)	$	0.19
Diluted	$	(0.51)	$	0.19

Basic and diluted net income per share attributable to common stockholders was calculated as follows (in thousands, except share and per share data):


	Year Ended December 31,
	2019		2020
Numerator:
Net income attributable to common stockholders	$	7,457	$	15,983
Denominator:
Weighted-average common shares outstanding
Basic		95,032,265		101,606,966
Diluted		95,400,528		102,602,738
Net income per share attributable to common stockholders
Basic	$	0.08	$	0.16
Diluted	$	0.08	$	0.16

Schedule of antidilutive securities excluded from computation of dilutive net income per share


	Three Fiscal Quarters Ended
	October 2, 2021	September 26, 2020
Restricted stock awards	6,813,166	47,446
Restricted stock units	84,866	—
Stock options	4,235	—


	Year Ended December 31,
	2019	2020
Restricted stock awards	97,718	22,524

SEGMENT AND GEOGRAPHIC INFORMATION (Tables)

9 Months Ended

12 Months Ended

Oct. 02, 2021

Dec. 31, 2020

SEGMENT AND GEOGRAPHIC INFORMATION

Schedule of Net sales by geography

Our long-lived assets by geographic area, which consist of property and equipment, net assets were as follows (in thousands):


	October 2, 2021		December 31, 2020
Long-lived assets
United States	$	48,158	$	37,680
Canada		4,358		3,050
Australia		4,394		4,979
New Zealand		1,857		1,648
Total	$	58,767	$	47,357

Net sales by geography is based on the delivery address of the customer as specified in purchase order. Net sales by geographic area was as follows (in thousands):


	December 31,
	2019		2020
Net sales
United States	$	257,786	$	325,716
Canada		43,157		50,499
Australia		12,126		20,181
New Zealand		2,432		3,984
Other		2,474		3,009
Total	$	317,975	$	403,389

Schedule of Long-lived assets by geographic area

Net sales by geography is based on the delivery address of the customer as specified in purchase order. Net sales by geographic area was as follows (in thousands):


	Three Fiscal Quarters Ended
	October 2, 2021		September 26, 2020
Net sales
United States	$	385,259	$	234,439
Canada		76,619		38,197
Australia		18,581		13,187
New Zealand		5,277		2,357
Other		5,856		3,288
Total	$	491,592	$	291,468

Our long-lived assets by geographic area, which consist of property and equipment, net assets were as follows (in thousands):


	December 31,
	2019		2020
Long-lived assets
United States	$	30,433	$	37,680
Canada		2,279		3,050
Australia		4,094		4,979
New Zealand		1,039		1,648
Total	$	37,845	$	47,357

CONDENSED FINANCIAL INFORMATION OF REGISTRANT (PARENT COMPANY ONLY) (Tables)

12 Months Ended

Dec. 31, 2020

CONDENSED FINANCIAL INFORMATION OF REGISTRANT (PARENT COMPANY ONLY)

Schedule of condensed balance sheets

CONDENSED BALANCE SHEETS

(in thousands, except share and per share data)


	December 31,
	2019		2020
Assets
Investment in subsidiary	$	193,795	$	281,609
Total assets	$	193,795	$	281,609
Liabilities and Stockholders’ Equity
Total liabilities	$	—	$	—
Stockholders’ Equity
Common stock, $0.0001 par value; 500,000,000 shares authorized at December 31, 2019 and 2020; 96,498,943 and 118,854,249 shares issued and outstanding as of December 31, 2019 and 2020, respectively		10		12
Additional paid-in capital		196,474		265,478
Retained earnings (accumulated deficit)		(2,218)		13,765
Accumulated other comprehensive income (loss)		(471)		2,354
Total stockholders’ equity		193,795		281,609
Total liabilities and stockholders’ equity	$	193,795	$	281,609

Schedule of condensed statements of operations

CONDENSED STATEMENTS OF OPERATIONS

(in thousands, except share and per share data)


	Year Ended December 31,
	2019		2020

Equity in net income of subsidiary	$	7,457	$	15,983
Net income attributable to common stockholders	$	7,457	$	15,983
Net income per share
Net income per share attributable to common stockholders
Basic	$	0.08	$	0.16
Diluted	$	0.08	$	0.16
Weighted-average common shares outstanding—basic and diluted
Basic		95,032,265		101,606,966
Diluted		95,400,528		102,602,738

Schedule of condensed statements of comprehensive income

CONDENSED STATEMENTS OF COMPREHENSIVE INCOME

(in thousands)


	Year Ended
	December 31,
	2019		2020
Net income	$	7,457	$	15,983
Equity in other comprehensive income (loss) of subsidiary		(670)		2,825
Comprehensive income	$	6,787	$	18,808

Schedule of condensed statements of cash flows

CONDENSED STATEMENT OF CASH FLOWS

(in thousands)


	Year Ended
	December 31,
	2019		2020
Cash flows from operating activities:
Net income	$	7,457	$	15,983
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in net income of subsidiary		(7,457)		(15,983)
Net cash provided by operating activities		—		—
Cash flows from investing activities:
Investment in subsidiary		—		(65,553)
Net cash used in investing activities		—		(65,553)
Cash flows from financing activities:
Proceeds from issuance of common stock		—		65,553
Net cash provided by financing activities		—		65,553
Net increase in cash		—		—
Cash at beginning of period		—		—
Cash at end of period	$	—	$	—

NATURE OF THE BUSINESS (Details)					9 Months Ended	12 Months Ended
NATURE OF THE BUSINESS (Details)	Apr. 27, 2021 USD ($) shares	Apr. 13, 2021 $ / shares shares	Oct. 20, 2020 shares	Oct. 14, 2020 shares	Sep. 26, 2020 shares	Dec. 31, 2020 $ / shares shares	Dec. 31, 2019 $ / shares shares	Oct. 02, 2021 $ / shares shares	Apr. 22, 2021 $ / shares shares
Business Acquisition [Line Items]
Common stock, shares authorized		500,000,000				500,000,000	500,000,000	900,000,000	900,000,000
Common stock, par value \| $ / shares		$ 0.0001				$ 0.0001	$ 0.0001	$ 0.0001	$ 0.0001
Stock split ratio		109,673,709
Issuance of common stock (in shares)			21,666,653	21,666,653	758,694	758,694	3,548,568
IPO
Business Acquisition [Line Items]
Issuance of common stock (in shares)	23,000,000
Net proceeds from the IPO \| $	$ 399.3
Underwriters Option
Business Acquisition [Line Items]
Issuance of common stock (in shares)	3,000,000
Subsequent Event
Business Acquisition [Line Items]
Common stock, shares authorized		500,000,000
Common stock, par value \| $ / shares		$ 0.0001
Stock split ratio		109,673,709

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Revenue Recognition (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Oct. 02, 2021	Dec. 31, 2019	Jan. 01, 2019
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Retained earnings (accumulated deficit)	$ 13,765	$ (42,596)	$ (2,218)
Increase to accrued expenses	$ 50,606	$ 59,454	$ 22,233
Product warranty term	5 years
ASC 606 \| Initial application cumulative effect
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Retained earnings (accumulated deficit)				$ 1,700
Reduction to prepaid expenses				1,200
Increase to accrued expenses				$ 500

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Trade Receivables, Net (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Allowance for bad debts	$ 1.4	$ 1.3

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Concentration of Credit Risk (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2020 USD ($) customer	Dec. 31, 2019 USD ($) customer	Oct. 02, 2021 USD ($)
Concentration Risk [Line Items]
Number of largest customers \| customer	1	1
Trade receivables	$ 32,758	$ 31,427	$ 75,314
Net sales \| Customer concentration \| Customer one
Concentration Risk [Line Items]
Concentration risk percentage	22.30%	25.70%
Trade receivables	$ 5,400	$ 12,000

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Interest Rate Swap (Details) - Interest Rate Swap $ in Millions	1 Months Ended
	Apr. 30, 2020 USD ($)
Derivative [Line Items]
Derivative notional amount	$ 200.0
Derivative contract term	3 years

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Inventories, Net (Details) - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Reserves for estimated slow moving products or obsolescence	$ 1.8	$ 2.1

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Property and Equipment, Net (Details)	12 Months Ended
	Dec. 31, 2020
Building and improvements
Property, Plant and Equipment [Line Items]
Estimated useful life	25 years
Molds and dyes \| Maximum
Property, Plant and Equipment [Line Items]
Estimated useful life	10 years
Molds and dyes \| Minimum
Property, Plant and Equipment [Line Items]
Estimated useful life	5 years
Machinery and equipment (including computer equipment and software) \| Maximum
Property, Plant and Equipment [Line Items]
Estimated useful life	10 years
Machinery and equipment (including computer equipment and software) \| Minimum
Property, Plant and Equipment [Line Items]
Estimated useful life	3 years
Furniture and fixtures \| Maximum
Property, Plant and Equipment [Line Items]
Estimated useful life	7 years
Furniture and fixtures \| Minimum
Property, Plant and Equipment [Line Items]
Estimated useful life	5 years
Vehicles
Property, Plant and Equipment [Line Items]
Estimated useful life	5 years
Software
Property, Plant and Equipment [Line Items]
Estimated useful life	5 years

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Long-Lived Assets (Details)	12 Months Ended
	Dec. 31, 2020
Pool designs
Finite-Lived Intangible Assets [Line Items]
Weighted-average estimated useful lives (in years)	14 years
Franchise relationships
Finite-Lived Intangible Assets [Line Items]
Weighted-average estimated useful lives (in years)	4 years
Non-competition agreements
Finite-Lived Intangible Assets [Line Items]
Weighted-average estimated useful lives (in years)	5 years
Maximum \| Patented technology
Finite-Lived Intangible Assets [Line Items]
Weighted-average estimated useful lives (in years)	10 years
Maximum \| Trade names and trademarks
Finite-Lived Intangible Assets [Line Items]
Weighted-average estimated useful lives (in years)	25 years
Maximum \| Dealer relationships
Finite-Lived Intangible Assets [Line Items]
Weighted-average estimated useful lives (in years)	15 years
Minimum \| Patented technology
Finite-Lived Intangible Assets [Line Items]
Weighted-average estimated useful lives (in years)	5 years
Minimum \| Trade names and trademarks
Finite-Lived Intangible Assets [Line Items]
Weighted-average estimated useful lives (in years)	9 years
Minimum \| Dealer relationships
Finite-Lived Intangible Assets [Line Items]
Weighted-average estimated useful lives (in years)	5 years

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Goodwill, Deferred Offering Costs, Segment Reporting, Income Taxes (Details)	1 Months Ended	9 Months Ended	12 Months Ended
	Nov. 30, 2020 item	Oct. 02, 2021 segment	Dec. 31, 2020 USD ($) segment item	Dec. 31, 2019 USD ($)
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Number of reporting units \| item	1		2
Weightage applied to income approach			75.00%
Weightage applied to market approach			25.00%
Deferred offering costs			$ 1,000,000.0	$ 0
Number of operating segments \| segment		1	1
Number of reportable segments \| segment		1	1
Penalties or accrued interest on unrecognized tax benefits				$ 0
Accrued interest on unrecognized tax benefits			$ 200,000
Accrued penalties on unrecognized tax benefits			0
Impairment			$ 0

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Stock-Based Compensation, Pension and Other Postretirement Plans, Advertising , Earnings Per Share (Details)	12 Months Ended
	Dec. 31, 2020 USD ($) installment $ / shares shares	Dec. 31, 2019 USD ($) shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Defined benefit plan assets		$ 1,300,000
Defined benefit plan obligations		$ 1,500,000
Plan assets as percentage of total assets		0.30%
Benefit obligations as percentage of total assets		0.30%
Total advertising costs	$ 5,900,000	$ 3,800,000
Outstanding potentially dilutive securities \| shares	0	0
PIUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of vesting annual installments \| installment	5
Amount of repurchase right per share \| $ / shares	$ 0
Repurchase Right voluntary termination	$ 0
Stock-based compensation expense	$ 0

ACQUISITIONS (Details) - USD ($) $ in Thousands					9 Months Ended		12 Months Ended
ACQUISITIONS (Details) - USD ($) $ in Thousands	Oct. 22, 2021	Oct. 22, 2020	Sep. 25, 2020	May 31, 2019	Oct. 02, 2021	Sep. 26, 2020	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Business Acquisition [Line Items]
Total purchase price, net of cash acquired							$ 74,736	$ 20,214
Net working capital adjustment receivable							750
Proceeds from long term debt used to pay Acquisition consideration					$ 172,813		20,000	22,310
Contingent Consideration settled through a cash payment						$ 6,624	6,624
Fair value of the Class A units issued in settlement of contingent consideration							2,208	7,567
Goodwill					115,158		115,750	101,672	$ 91,782
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract]
Deferred tax asset					793		345	206
Deferred tax liabilities					55,949		55,193	60,008
Goodwill					115,158		115,750	$ 101,672	$ 91,782
Narellan Group Pty Limited
Business Acquisition [Line Items]
Total purchase price				$ 35,233
Total purchase price in cash				20,238
Business acquisition, transaction costs				1,100
Business acquisition, equity consideration				7,567
Business acquisition, contingent consideration				7,400			$ 7,400
Proceeds from long term debt used to pay Acquisition consideration				22,300
long-term debt, discount				700
Contingent Consideration settled through a cash payment			$ 6,600
Contingent Consideration settled through Class A units as equity consideration			758,697
Contractual value of shares issued to settle contingent consideration			$ 2,200
Fair value of the Class A units issued in settlement of contingent consideration			2,800
Stock-based compensation expense arising in contingent consideration settlement			$ 600
Goodwill				9,788
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract]
Total consideration				35,233
Cash				24
Trade receivables				1,420
Inventories				4,501
Prepaid expenses and other current assets				472
Property and equipment				4,861
Intangible assets				18,332
Deferred tax asset				126
Total assets acquired				29,736
Accounts payable				3,379
Accrued expenses and other current liabilities				442
Deferred tax liabilities				470
Total liabilities assumed				4,291
Total fair value of net assets acquired, excluding goodwill:				25,445
Goodwill				$ 9,788
GL International, LLC
Business Acquisition [Line Items]
Total purchase price	$ 79,700	$ 79,700
Total purchase price in cash	79,700
Total purchase price, net of cash acquired	74,700	74,700
Cash acquired	5,000	5,000
Net working capital adjustment receivable	800	800
Business acquisition, transaction costs	2,400	2,400
Goodwill	13,105	13,105			13,100
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract]
Total consideration	79,743	79,743
Cash	5,007	5,007
Trade receivables	10,639	10,639
Inventories	11,854	11,854
Prepaid expenses and other current assets	3,949	3,949
Property and equipment	1,402	1,402
Intangible assets	46,700	46,700
Total assets acquired	79,551	79,551
Accounts payable	3,536	3,536
Accrued expenses and other current liabilities	8,853	8,853
Other long-term liabilities	524	524
Total liabilities assumed	12,913	12,913
Total fair value of net assets acquired, excluding goodwill:	66,638	66,638
Goodwill	$ 13,105	$ 13,105			$ 13,100

ACQUISITIONS - Financial Information (Details) - USD ($) $ in Thousands			9 Months Ended	12 Months Ended
	Oct. 22, 2020	May 31, 2019	Sep. 26, 2020	Dec. 31, 2020	Dec. 31, 2019
Business Acquisition, Pro Forma Information [Abstract]
Net sales				$ 462,802	$ 382,029
Net income (loss)				$ 26,344	6,066
Narellan Group Pty Limited
Business Acquisition, Pro Forma Information [Abstract]
Net sales					15,893
Net income (loss)					$ (1,047)
GL International, LLC
Acquired Finite-Lived Intangible Assets [Line Items]
Fair Value	$ 46,700
Business Acquisition, Pro Forma Information [Abstract]
Net sales	7,689		$ 345,200
Net income (loss)	(1,123)		$ 21,952
Trade names \| GL International, LLC
Acquired Finite-Lived Intangible Assets [Line Items]
Fair Value	$ 9,500
Amortization Period	9 years
Trade names and trademarks \| Narellan Group Pty Limited
Acquired Finite-Lived Intangible Assets [Line Items]
Fair Value		$ 9,535
Amortization Period		25 years
Pool designs
Acquired Finite-Lived Intangible Assets [Line Items]
Amortization Period				14 years
Pool designs \| Narellan Group Pty Limited
Acquired Finite-Lived Intangible Assets [Line Items]
Fair Value		$ 5,728
Amortization Period		14 years
Patented technology \| Narellan Group Pty Limited
Acquired Finite-Lived Intangible Assets [Line Items]
Fair Value		$ 1,410
Amortization Period		5 years
Franchise relationships
Acquired Finite-Lived Intangible Assets [Line Items]
Amortization Period				4 years
Franchise relationships \| Narellan Group Pty Limited
Acquired Finite-Lived Intangible Assets [Line Items]
Fair Value		$ 1,187
Amortization Period		4 years
Dealer relationships \| Narellan Group Pty Limited
Acquired Finite-Lived Intangible Assets [Line Items]
Fair Value		$ 472
Amortization Period		5 years
Dealer relationships \| GL International, LLC
Acquired Finite-Lived Intangible Assets [Line Items]
Fair Value	$ 37,200
Amortization Period	8 years

ACQUISITIONS - Consideration (Details) - USD ($) $ in Thousands	Oct. 22, 2021	Oct. 22, 2020	May 31, 2019
Narellan Group Pty Limited
Business Combination, Consideration Transferred [Abstract]
Cash consideration			$ 20,238
Fair value of equity consideration			7,567
Fair value of contingent consideration as of the acquisition date			7,428
Total consideration			$ 35,233
GL International, LLC
Business Combination, Consideration Transferred [Abstract]
Cash consideration	$ 79,700
Total consideration	$ 79,700	$ 79,700

EQUITY METHOD INVESTMENT (Details) - USD ($) $ in Thousands		2 Months Ended	9 Months Ended	12 Months Ended
EQUITY METHOD INVESTMENT (Details) - USD ($) $ in Thousands	Oct. 30, 2020	Dec. 31, 2020	Oct. 02, 2021	Dec. 31, 2020
Schedule of Equity Method Investments [Line Items]
Consideration paid				$ 25,384
Distributions received from equity method investment			$ 1,808
Premier Pools & Spas
Schedule of Equity Method Investments [Line Items]
Ownership percentage	28.00%		20.10%
Consideration paid	$ 25,400
Term of the supply agreement	10 years	3 months	10 years
Period defined in agreement for calculating percentage of rebates	3 years		3 years
Distributions received from equity method investment			$ 2,200	$ 25,400

FAIR VALUE MEASUREMENTS - Reconciliation of the Company's Contingent Consideration (Details) - USD ($) $ in Thousands	7 Months Ended	9 Months Ended	12 Months Ended
	Dec. 31, 2019	Sep. 25, 2020	Dec. 31, 2020	Dec. 31, 2019
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Change in fair value of Contingent Consideration			$ (204)	$ 1,441
Recurring \| Level 3 \| Contingent consideration
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning balance	$ 7,428	$ 8,978	$ 8,978
Change in fair value of Contingent Consideration	1,441	(204)
Foreign currency translation adjustment	109	58
Payment of Contingent Consideration and issuance of Class A units (see Note 3)		(8,832)
Ending balance	$ 8,978	$ 0		$ 8,978

FAIR VALUE MEASUREMENTS - Assets and liabilities measured at fair value on a recurring basis (Details) $ in Millions	Dec. 31, 2019 USD ($)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair value of plan assets	$ 1.3
Contingent consideration \| EBITDA risk adjustment
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement inputs	17.30
Contingent consideration \| Annual EBITDA volatility
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement inputs	55.00
Contingent consideration \| Risk-free rate of return
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement inputs	2.10
Level 2
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair value of plan assets	$ 1.3

- Definition

Amount of asset segregated and restricted to provide benefit under defined benefit plan. Asset includes, but is not limited to, stock, bond, other investment, earning from investment, and contribution by employer and employee.

+ References + Details

FAIR VALUE MEASUREMENTS - Fair value of financial instruments (Details) - USD ($)	Oct. 02, 2021	Dec. 31, 2020	Dec. 31, 2019
Level 2
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative liabilities	$ 600,000	$ 300,000
Term loan \| Carrying Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Amount	234,201,000	221,496,000
Term loan \| Carrying Value \| Level 2
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Amount		221,496,000	$ 223,223,000
Term loan \| Estimated Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Amount	$ 235,372,000	221,081,000
Term loan \| Estimated Fair Value \| Level 2
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative liabilities		221,081,000	220,712,000
Interest Rate Swap
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative liabilities		$ 300,000	$ 0

GOODWILL AND INTANGIBLE ASSETS, NET - Goodwill (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
GOODWILL AND INTANGIBLE ASSETS, NET
Beginning balance	$ 101,672	$ 91,782
Acquisition	13,105	9,788
Foreign currency translation adjustment	973	102
Ending balance	$ 115,750	$ 101,672

GOODWILL AND INTANGIBLE ASSETS, NET - Intangible Assets (Details) - USD ($) $ in Thousands	9 Months Ended		12 Months Ended
	Oct. 02, 2021	Sep. 26, 2020	Dec. 31, 2020	Dec. 31, 2019
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 320,993		$ 320,993	$ 274,293
Foreign Currency Translation	914		2,013	189
Accumulated Amortization	50,076		33,533	16,185
Net Amount	271,831		289,473	258,297
Amortization of Intangible Assets	16,560	$ 12,173	17,347	15,643
Trade names and trademarks
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	135,100		135,100	125,600
Foreign Currency Translation	476		1,047	99
Accumulated Amortization	14,839		10,258	5,032
Net Amount	120,737		125,889	120,667
Patented technology
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	16,126		16,126	16,126
Foreign Currency Translation	70		155	14
Accumulated Amortization	4,772		3,452	1,698
Net Amount	11,424		12,829	14,442
Pool designs
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	5,728		5,728	5,728
Foreign Currency Translation	286		629	59
Accumulated Amortization	956		648	239
Net Amount	5,058		5,709	5,548
Franchise relationships
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	1,187		1,187	1,187
Foreign Currency Translation	59		130	12
Accumulated Amortization	694		470	173
Net Amount	552		847	1,026
Dealer relationships
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	160,376		160,376	123,176
Foreign Currency Translation	23		52	5
Accumulated Amortization	27,434		17,697	8,530
Net Amount	132,965		142,731	114,651
Non-competition agreements
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	2,476		2,476	2,476
Accumulated Amortization	1,381		1,008	513
Net Amount	$ 1,095		$ 1,468	$ 1,963

GOODWILL AND INTANGIBLE ASSETS, NET - Amortization Expense (Details) - USD ($) $ in Thousands	Oct. 02, 2021	Dec. 31, 2020	Dec. 31, 2019
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
2021	$ 5,415	$ 21,959
2022	21,959	21,959
2023	21,768	21,768
2024	20,948	20,948
2025	20,791	20,791
Thereafter	180,950	182,048
Total	$ 271,831	$ 289,473	$ 258,297

INVENTORIES, NET (Details) - USD ($) $ in Thousands	Oct. 02, 2021	Dec. 31, 2020	Dec. 31, 2019
INVENTORIES, NET
Raw materials	$ 57,165	$ 37,010	$ 19,035
Finished goods	23,540	27,808	16,576
Inventory, Net, Total	$ 80,705	$ 64,818	$ 35,611

PROPERTY AND EQUIPMENT, NET (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Oct. 02, 2021
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	$ 61,238	$ 43,967
Less: Accumulated depreciation	(13,881)	(6,122)
Property and equipment, net	47,357	37,845	$ 58,767
Depreciation and amortization expense	8,000	6,000
Loss on sales and disposal of Property and Equipment	300	700
Land
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	1,613	1,613
Building and improvements
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	5,898	5,495
Machinery and equipment
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	21,478	17,661
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	1,406	511
Computer equipment and software
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	6,633	5,090
Molds and dyes
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	9,051	5,602
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	3,573	2,611
Vehicles
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	3,061	2,338
Construction in progress
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	$ 8,525	$ 3,046

LONG-TERM DEBT (Details) - USD ($) $ in Thousands	Oct. 02, 2021	Dec. 31, 2020	Dec. 31, 2019
Debt Instrument [Line Items]
Term loan	$ 238,314	$ 228,147
Less: Unamortized discount and debt issuance costs	(4,113)	(6,651)	$ (8,968)
Total debt	234,201	221,496	223,223
Less: Current portion of long-term debt	(14,234)	(13,042)	(6,891)
Total long-term debt	219,967	208,454	216,332
Term loan
Debt Instrument [Line Items]
Term loan	238,314	228,147	232,191
Less: Unamortized discount and debt issuance costs	$ (4,100)	(6,700)	$ (9,000)
Less: Current portion of long-term debt		$ (13,000)

LONG-TERM DEBT - Revolving Credit Facility (Details) - USD ($) $ in Thousands	Dec. 18, 2018	Oct. 02, 2021	Dec. 31, 2020	Dec. 31, 2019
Debt Instrument [Line Items]
Debt, principal amount outstanding		$ 238,314	$ 228,147
Minimum
Debt Instrument [Line Items]
Commitment fee rate range, depending on leverage ratio	0.375%
Maximum
Debt Instrument [Line Items]
Commitment fee rate range, depending on leverage ratio	0.50%
Revolving Credit Facility
Debt Instrument [Line Items]
Borrowing capacity	$ 30,000
Debt, principal amount outstanding		$ 0	$ 0	$ 0
Eurocurrency \| Minimum
Debt Instrument [Line Items]
Interest rate range, depending on leverage ratio	4.50%
Eurocurrency \| Maximum
Debt Instrument [Line Items]
Interest rate range, depending on leverage ratio	4.75%
Base \| Minimum
Debt Instrument [Line Items]
Interest rate range, depending on leverage ratio	3.50%
Base \| Maximum
Debt Instrument [Line Items]
Interest rate range, depending on leverage ratio	3.75%

LONG-TERM DEBT - Term Loan Facility (Details) - USD ($) $ in Thousands								3 Months Ended	9 Months Ended		12 Months Ended
	Jun. 30, 2021	Mar. 31, 2021	Feb. 02, 2021	Jan. 25, 2021	Oct. 14, 2020	Aug. 06, 2020	Dec. 18, 2018	Dec. 31, 2020	Oct. 02, 2021	Sep. 26, 2020	Dec. 31, 2020	Dec. 31, 2019	May 29, 2019
Debt Instrument [Line Items]
Additional borrowings under amendment													$ 23,000
Long-term debt, net of discount and current portion								$ 208,454	$ 219,967		$ 208,454	$ 216,332
Repayment of debt									164,833	$ 20,925	24,044	5,809
Gain on extinguishment of debt											25
Proceeds used to pay dividend to Parent			$ 110,000
Discount and debt issuance costs								6,651	4,113		6,651	8,968
Amount outstanding, net of discount and issuance costs								221,496	234,201		221,496	223,223
Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net								6,651	$ 4,113		$ 6,651	$ 8,968
Effective interest rate									7.24%		8.03%	10.47%
Estimated mandatory prepayment to be paid								0			$ 0	$ 900
Current maturities of long-term debt								13,042	$ 14,234		13,042	6,891
Financing costs									1,250
Term loan
Debt Instrument [Line Items]
Original term loan							$ 215,000
Debt issuance costs incurred				$ 1,200	$ 100		$ 11,500
Additional borrowings under amendment				175,000	$ 20,000
Debt discount								400	$ 1,200		$ 400	500	700
Long-term debt, net of discount and current portion						$ 4,975
Repayment of debt						5,000
Amount of debt extinguished						$ 25,000
Repayment amount to be paid quarterly	$ 3,600			5,800				1,600
Borrowings treated as principal				165,000
Borrowings treated as debt modification				10,000
Proceeds used to repay note to Parent			$ 64,900	175,000
Principal payments calculated as percent of outstanding principal									0.629%		0.629%
Outstanding Borrowings									$ 234,200		$ 221,500	223,200
Discount and debt issuance costs								6,700	4,100		6,700	9,000
Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net								6,700	4,100		6,700	9,000
Unamortized debt issuance costs								6,300	2,900		6,300	8,400
Unamortized discount								400	$ 1,200		400	$ 500	$ 700
Current maturities of long-term debt								$ 13,000			$ 13,000
Term loan \| Federal Funds Rate
Debt Instrument [Line Items]
Interest added to the specified index rate									0.05%
Term loan \| LIBOR
Debt Instrument [Line Items]
Interest added to the specified index rate											1.00%
Eurocurrency \| Term loan
Debt Instrument [Line Items]
Interest added to the specified index rate									6.00%		6.00%
Base
Debt Instrument [Line Items]
Interest added to the specified index rate											5.00%
Base \| Term loan
Debt Instrument [Line Items]
Interest added to the specified index rate									5.00%
Subsequent Event
Debt Instrument [Line Items]
Debt issuance costs incurred				$ 1,200
Subsequent Event \| Term loan
Debt Instrument [Line Items]
Repayment amount to be paid quarterly		$ 3,300

LONG-TERM DEBT - Interest rate swap (Details) - Interest Rate Swap $ in Millions	Dec. 31, 2020 USD ($)	May 18, 2020 USD ($)
Derivative [Line Items]
LIBOR borrowings fixed interest rate	0.442	0.442
LIBOR borrowings hedged	$ 200.0	$ 200.0

LONG-TERM DEBT - Schedule of mandatory prepayments based on Company's excess cash flow for the year (Details)	12 Months Ended
	Dec. 31, 2020
> 3.50:1.00
Debt Instrument [Line Items]
Mandatory Prepayment Percentage	90.00%
> 3.00:1.00 and 3.50:1.00
Debt Instrument [Line Items]
Mandatory Prepayment Percentage	75.00%
> 2.50:1.00 and 3.00:1.00
Debt Instrument [Line Items]
Mandatory Prepayment Percentage	50.00%
> 2.00:1.00 and 2.50:1.00
Debt Instrument [Line Items]
Mandatory Prepayment Percentage	25.00%
2.00:1.00
Debt Instrument [Line Items]
Mandatory Prepayment Percentage	0.00%

LONG-TERM DEBT - Amendments and Interest rate swap (Details) - USD ($) $ in Thousands	9 Months Ended		12 Months Ended
	Oct. 02, 2021	Sep. 26, 2020	Dec. 31, 2020	Dec. 31, 2019
LONG-TERM DEBT
Cash interest expense			$ 15,625	$ 19,488
Amortization of debt issuance costs			2,179	2,968
Amortization of original issue discount			138	183
Interest rate swap			334
Gain on extinguishment of debt			(25)
Total interest expense	$ 20,843	$ 13,633	$ 18,251	$ 22,639

LONG-TERM DEBT - Principal payments due (Details) - USD ($) $ in Thousands	Oct. 02, 2021	Dec. 31, 2020	Dec. 31, 2019
Principal payments due
Total payments due	$ 238,314	$ 228,147
Term loan
Principal payments due
Remainder of fiscal 2021	3,558
2022	14,234	13,042
2023	14,234	13,042
2024	14,234	13,042
2025	192,054	13,042
2025		175,979
Total payments due	$ 238,314	$ 228,147	$ 232,191

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES
Accrued sales rebates	$ 15,511	$ 6,520
Accrued product warranties	2,705	2,663
Accrued incentives	11,244	2,448
Accrued vacation	3,805	2,425
Accrued payroll	6,098	2,334
Deferred offering costs	1,040
Accrued third-party services	2,172	1,556
Other	8,031	4,287
Total accrued expenses and other current liabilities	$ 50,606	$ 22,233

PRODUCT WARRANTIES (Details) - USD ($) $ in Thousands	9 Months Ended		12 Months Ended
PRODUCT WARRANTIES (Details) - USD ($) $ in Thousands	Oct. 02, 2021	Sep. 26, 2020	Dec. 31, 2020	Dec. 31, 2019
Movement in Standard Product Warranty Accrual [Roll Forward]
Balance at the beginning of the year	$ 2,882	$ 2,846	$ 2,846	$ 1,977
Accruals for warranties issued	4,369	2,270	3,966	3,729
Warranty liabilities assume in GLI Acquisition			118
Less: Settlements made (in cash or in kind)	(3,825)	(2,501)	(4,048)	(2,860)
Balance at the end of the year	$ 3,426	$ 2,615	2,882	2,846
Less: Current portion of accrued warranty costs			(2,705)	(2,663)
Accrued warranty costs - less current portion			$ 177	$ 183

NET SALES (Details) - USD ($) $ in Thousands	9 Months Ended		12 Months Ended
NET SALES (Details) - USD ($) $ in Thousands	Oct. 02, 2021	Sep. 26, 2020	Dec. 31, 2020	Dec. 31, 2019
Disaggregation of Revenue [Line Items]
Net sales	$ 491,592	$ 291,468	$ 403,389	$ 317,975
In-ground Swimming Pools
Disaggregation of Revenue [Line Items]
Net sales	285,704	169,681	237,410	175,033
Covers
Disaggregation of Revenue [Line Items]
Net sales	94,354	53,528	84,524	70,984
Liners
Disaggregation of Revenue [Line Items]
Net sales	$ 111,534	$ 68,259	$ 81,455	$ 71,958

- Definition

Amount, excluding tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value added and excise.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8906-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 40
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9031-108599

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 41
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9038-108599

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 4
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130543-203045

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 42
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9054-108599

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130545-203045

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 924
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SAB Topic 11.L)
-URI http://asc.fasb.org/extlink&oid=6472922&loc=d3e499488-122856

+ Details

NET SALES - Allowance for bad debt activity (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Allowance for bad debt activity roll forward
Balance at the beginning of the year	$ 1,322	$ 1,535
Bad debt expense	358	253
Write-offs	(242)	(466)
Balance at the end of the year	$ 1,438	$ 1,322

INCOME TAXES - Components of income taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Income (loss) before income taxes:
Domestic	$ 19,609	$ 9,939
Foreign	3,150	(7,153)
Total	$ 22,759	$ 2,786

INCOME TAXES - Current and deferred income tax (benefit) expense (Details) - USD ($) $ in Thousands	9 Months Ended		12 Months Ended
	Oct. 02, 2021	Sep. 26, 2020	Dec. 31, 2020	Dec. 31, 2019
Current income tax (benefit) expense:
Domestic			$ 10,342	$ 5,424
Foreign			1,104	131
Total current tax (benefit) expense			11,446	5,555
Deferred income tax (benefit) expense:
Domestic			(4,532)	(10,020)
Foreign			(138)	(206)
Total deferred tax (benefit) expense			(4,670)	(10,226)
Total income tax (benefit) expense	$ 15,908	$ 8,251	$ 6,776	$ (4,671)

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References + Details

INCOME TAXES - Reconciliation of the statutory federal income tax rate with the Company's effective income tax rate (Details)		9 Months Ended		12 Months Ended
	Jan. 01, 2018	Oct. 02, 2021	Sep. 26, 2020	Dec. 31, 2020	Dec. 31, 2019
INCOME TAXES
Federal statutory tax rate	35.00%			21.00%	21.00%
Foreign taxes less than U.S. statutory rate				1.20%	1.10%
State income tax, net of federal benefit				1.40%	(67.20%)
Uncertain tax positions				0.80%	348.20%
Change in valuation allowance				(1.10%)	(5.90%)
GILTI				1.50%	21.10%
Meals and entertainment				0.50%	6.80%
Foreign expenses not deductible for tax				1.70%	56.10%
Transaction costs not deductible for tax				2.00%	13.30%
Canadian restructuring					(562.40%)
Canadian Branch Income				1.80%	0.00%
Other expenses not deductible for tax				(1.00%)	(0.10%)
Total		39.30%	30.60%	29.80%	(168.00%)

INCOME TAXES - Changes in the valuation allowance (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
INCOME TAXES
Balance at January 1	$ (12,463)	$ (12,300)
Additions	(241)	(163)
Balance at December 31	$ (12,704)	$ (12,463)

INCOME TAXES - Deferred Income Taxes (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Deferred tax assets:
Net operating loss carryforwards	$ 12,099	$ 12,110
Inventories, net	473	680
Warranty reserve	789	649
Trade receivables	360	477
Profits interest units	760	389
Section 163(j)		289
Deferred taxes in equity	257	257
Accrued expenses	498	224
Transaction costs	607	107
Canadian tax credits	255	86
Other	216	64
Gross deferred tax assets	16,314	15,332
Valuation allowance	(12,704)	(12,463)	$ (12,300)
Total deferred tax asset	3,610	2,869
Less: Foreign deferred tax benefit	(345)	(206)
Total domestic deferred tax asset	3,265	2,663
Deferred tax liabilities:
Intangible assets	(53,874)	(57,221)
Property and equipment, net	(4,120)	(4,677)
Prepaid expenses	(464)	(773)
Total deferred tax liabilities	(58,458)	(62,671)
Net deferred tax liabilities	$ (55,193)	$ (60,008)

INCOME TAXES - Uncertain tax positions (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
INCOME TAXES
Balance at the beginning of the year	$ 9,681
Additions for tax positions taken during prior years	181
Additions for tax positions taken during the current year		$ 9,681
Balance at the end of the year	$ 9,862	$ 9,681

INCOME TAXES - Narrative (Details) - USD ($) $ in Thousands		12 Months Ended
INCOME TAXES - Narrative (Details) - USD ($) $ in Thousands	Jan. 01, 2018	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
INCOME TAXES
Federal statutory tax rate	35.00%	21.00%	21.00%
Valuation allowance		$ 12,704	$ 12,463	$ 12,300
Operating Loss Carryforwards		12,100
Liability related to uncertain tax positions, exclusive of interest		5,400
Liability related to uncertain tax positions, if recognized, would impact the effective tax rate		5,400
Accrued interest		200
Accrued penalty		$ 0

COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
COMMITMENTS AND CONTINGENCIES
Term of lease	5 years
Rental expense	$ 6,800	$ 6,100
Minimum annual rental commitments under non-cancelable operating leases
2021	6,484
2022	5,971
2023	4,455
2024	3,834
2025	3,491
Thereafter	5,094
Total	$ 29,329

EMPLOYEE BENEFIT PLANS (Details) - USD ($) $ in Millions	12 Months Ended
EMPLOYEE BENEFIT PLANS (Details) - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019
EMPLOYEE BENEFIT PLANS
Discretionary matching and other contributions	$ 0.8	$ 0.9

PROFITS INTEREST UNITS (Details) - USD ($) $ in Thousands	9 Months Ended		12 Months Ended
PROFITS INTEREST UNITS (Details) - USD ($) $ in Thousands	Oct. 02, 2021	Sep. 26, 2020	Dec. 31, 2020	Dec. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Payment Arrangement, Expense	$ 104,600	$ 1,400
Contingent consideration
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Payment Arrangement, Expense			$ 600
Selling, general and administrative expense
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Payment Arrangement, Expense	$ 97,800
Unrecognized compensation expense			9,800	$ 6,400
Performance PIUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Payment Arrangement, Expense			$ 1,200	800
Units that are not expected to vest			18,011,127
Time-Vesting PIUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Payment Arrangement, Expense			$ 0	$ 0
Units expected to vest			9,413,835
Units vested			0	0

PROFITS INTEREST UNITS - Number of PIUs and Weighted - Average Grant Date Fair Value - (Details) - $ / shares	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Number of PIUs
Balance at beginning	21,734,170	20,890,124
Granted	7,843,107	3,692,699
Forfeited	(2,152,315)	(2,848,653)
Balance at ending	27,424,962	21,734,170
Weighted-Average Grant Date Fair Value
Balance at beginning		$ 0.41
Granted	$ 0.60	0.38
Forfeited	0.35	$ 0.41
Balance at ending	$ 0.43

PROFITS INTEREST UNITS - Fair value of the PIUs - (Details)	9 Months Ended	12 Months Ended
	Oct. 02, 2021	Dec. 31, 2020	Dec. 31, 2019
PROFITS INTEREST UNITS
Expected volatility	38.16%	55.00%	49.00%
Risk-free interest rate	0.63%	0.20%	1.90%
Expected term (in years)	6 years 3 months	3 years 2 months 12 days	4 years 7 months 6 days
Expected dividend yield	0.00%

COMMON STOCK (Details) $ / shares in Units, $ in Thousands			3 Months Ended					9 Months Ended	12 Months Ended
COMMON STOCK (Details) $ / shares in Units, $ in Thousands	Oct. 20, 2020 USD ($) shares	Oct. 14, 2020 USD ($) shares	Jul. 03, 2021 USD ($)	Apr. 03, 2021 USD ($)	Sep. 26, 2020 USD ($)	Jun. 27, 2020 USD ($)	Mar. 28, 2020 USD ($)	Sep. 26, 2020 shares	Dec. 31, 2020 USD ($) Vote $ / shares shares	Dec. 31, 2019 USD ($) $ / shares shares	Oct. 02, 2021 $ / shares shares	Apr. 22, 2021 $ / shares shares	Apr. 13, 2021 $ / shares shares
COMMON STOCK
Common stock, shares authorized \| shares									500,000,000	500,000,000	900,000,000	900,000,000	500,000,000
Common stock, par value \| $ / shares									$ 0.0001	$ 0.0001	$ 0.0001	$ 0.0001	$ 0.0001
Common stock, votes per share \| Vote									1
Common stock, dividends paid									$ 0
Common stock, distributions to Parent for the repurchase of Parent's shares									$ 600	$ 200
Issuance of common stock (in shares) \| shares	21,666,653	21,666,653						758,694	758,694	3,548,568
Value of shares issued during the period	$ 64,900	$ 64,900			$ 615				$ 65,553	$ 7,817
Number of shares repurchased and retired during the period \| shares									275,238	100,087
Value of shares repurchased and retired			$ 216,700	$ 64,938		$ 176	$ 400		$ 582	$ 200

NET INCOME PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended						9 Months Ended		12 Months Ended
	Oct. 02, 2021	Jul. 03, 2021	Apr. 03, 2021	Sep. 26, 2020	Jun. 27, 2020	Mar. 28, 2020	Oct. 02, 2021	Sep. 26, 2020	Dec. 31, 2020	Dec. 31, 2019
Numerator:
Net income attributable to common stockholders	$ (11,296)	$ (53,598)	$ 8,533	$ 17,740	$ 16,414	$ (15,451)	$ (56,361)	$ 18,703	$ 15,983	$ 7,457
Weighted-average common shares outstanding
Basic							110,121,240	96,665,708	101,606,966	95,032,265
Diluted							110,121,240	97,122,885	102,602,738	95,400,528
Net income per share attributable to common stockholders
Basic							$ (0.51)	$ 0.19	$ 0.16	$ 0.08
Diluted							$ (0.51)	$ 0.19	$ 0.16	$ 0.08
Potentially dilutive securities outstanding									0	0
Restricted stock awards
Net income per share attributable to common stockholders
Potentially dilutive securities outstanding							6,813,166	47,446	22,524,000	97,718,000

RELATED PARTY TRANSACTIONS - Bright AI Services (Details) - Bright AI Services - USD ($) $ in Millions	9 Months Ended		12 Months Ended
	Oct. 02, 2021	Sep. 26, 2020	Dec. 31, 2020
Related Party Transaction [Line Items]
Costs incurred	$ 1.1	$ 0.0	$ 0.5
Development Of Internal Use Software
Related Party Transaction [Line Items]
Costs incurred	$ 1.9		$ 0.5

RELATED PARTY TRANSACTIONS - Expense Reimbursement and Management Fees (Details) - Sponsor - Management Fee Arrangement - USD ($)	9 Months Ended	12 Months Ended
	Oct. 02, 2021	Dec. 31, 2020	Dec. 31, 2019	Sep. 26, 2020
Related Party Transaction [Line Items]
Maximum annual reimbursement	$ 1,000,000.0	$ 1,000,000.0
Management fees incurred	0	47,700	$ 500,000
Amounts payable	$ 0	$ 0	$ 0	$ 100,000

RELATED PARTY TRANSACTIONS - Operating Lease (Details) - Lease Agreement - USD ($) $ in Millions	9 Months Ended		12 Months Ended
	Oct. 02, 2021	Sep. 26, 2020	Dec. 31, 2020	Dec. 31, 2019
Related Party Transaction [Line Items]
Rent expense	$ 0.1	$ 0.1
Acquigen Pty Ltd.
Related Party Transaction [Line Items]
Future minimum lease payments	3.6		$ 4.2	$ 4.3
Rent expense	$ 0.4	$ 0.3	$ 0.4	$ 0.2

SEGMENT AND GEOGRAPHIC INFORMATION - Segment Information (Details) - segment	9 Months Ended	12 Months Ended
	Oct. 02, 2021	Dec. 31, 2020
SEGMENT AND GEOGRAPHIC INFORMATION
Number of operating segments	1	1
Number of reportable segments	1	1

SEGMENT AND GEOGRAPHIC INFORMATION - Geographic Information (Details) - USD ($) $ in Thousands	9 Months Ended		12 Months Ended
	Oct. 02, 2021	Sep. 26, 2020	Dec. 31, 2020	Dec. 31, 2019
Revenues from External Customers and Long-Lived Assets [Line Items]
Net sales	$ 491,592	$ 291,468	$ 403,389	$ 317,975
Property and equipment, net	58,767		47,357	37,845
United States
Revenues from External Customers and Long-Lived Assets [Line Items]
Net sales	385,259	234,439	325,716	257,786
Property and equipment, net	48,158		37,680	30,433
Canada
Revenues from External Customers and Long-Lived Assets [Line Items]
Net sales	76,619	38,197	50,499	43,157
Property and equipment, net	4,358		3,050	2,279
Australia
Revenues from External Customers and Long-Lived Assets [Line Items]
Net sales	18,581	13,187	20,181	12,126
Property and equipment, net	4,394		4,979	4,094
New Zealand
Revenues from External Customers and Long-Lived Assets [Line Items]
Net sales	5,277	2,357	3,984	2,432
Property and equipment, net	1,857		1,648	1,039
Other
Revenues from External Customers and Long-Lived Assets [Line Items]
Net sales	$ 5,856	$ 3,288	$ 3,009	$ 2,474

- Definition

+ References

+ Details

CONDENSED FINANCIAL INFORMATION OF REGISTRANT (PARENT COMPANY ONLY) - CONDENSED BALANCE SHEETS (Details) - USD ($) $ in Thousands	Oct. 02, 2021	Jul. 03, 2021	Apr. 03, 2021	Dec. 31, 2020	Sep. 26, 2020	Jun. 27, 2020	Mar. 28, 2020	Dec. 31, 2019	Dec. 31, 2018
Assets
Total assets	$ 733,745			$ 646,676				$ 525,711
Liabilities and Stockholders' Equity
Total liabilities	398,250			365,067				331,916
Stockholders' equity:
Common stock, $0.0001 par value; 500,000,000 shares authorized at December 31, 2019 and 2020; 96,498,943 and 118,854,249 shares issued and outstanding as of December 31, 2019 and 2020, respectively	12			12				10
Additional paid-in capital	377,649			265,478				196,474
Retained earnings (accumulated deficit)	(42,596)			13,765				(2,218)
Accumulated other comprehensive income (loss)	430			2,354				(471)
Total stockholders' equity	335,495	$ 320,075	$ 115,434	281,609	$ 216,591	$ 195,003	$ 176,230	193,795	$ 180,280
Total liabilities and stockholders' equity	$ 733,745			646,676				525,711
Parent
Assets
Investment in subsidiary				281,609				193,795
Total assets				281,609				193,795
Stockholders' equity:
Common stock, $0.0001 par value; 500,000,000 shares authorized at December 31, 2019 and 2020; 96,498,943 and 118,854,249 shares issued and outstanding as of December 31, 2019 and 2020, respectively				12				10
Additional paid-in capital				265,478				196,474
Retained earnings (accumulated deficit)				13,765				(2,218)
Accumulated other comprehensive income (loss)				2,354				(471)
Total stockholders' equity				281,609				193,795
Total liabilities and stockholders' equity				$ 281,609				$ 193,795

CONDENSED FINANCIAL INFORMATION OF REGISTRANT (PARENT COMPANY ONLY) - CONDENSED BALANCE SHEETS (Parenthetical) (Details) - $ / shares	Oct. 02, 2021	Apr. 22, 2021	Apr. 13, 2021	Dec. 31, 2020	Dec. 31, 2019
Condensed Balance Sheet Statements, Captions [Line Items]
Common Stock, Par or Stated Value Per Share	$ 0.0001	$ 0.0001	$ 0.0001	$ 0.0001	$ 0.0001
Common Stock, Shares Authorized	900,000,000	900,000,000	500,000,000	500,000,000	500,000,000
Common Stock, Shares, Issued	119,849,589			118,854,249	96,498,943
Common Stock, Shares, Outstanding	119,849,589			118,854,249	96,498,943
Parent
Condensed Balance Sheet Statements, Captions [Line Items]
Common Stock, Par or Stated Value Per Share				$ 0.0001	$ 0.0001
Common Stock, Shares Authorized				500,000,000	500,000,000
Common Stock, Shares, Issued				118,854,249	96,498,943
Common Stock, Shares, Outstanding				118,854,249	96,498,943

CONDENSED FINANCIAL INFORMATION OF REGISTRANT (PARENT COMPANY ONLY) - CONDENSED STATEMENTS OF OPERATIONS (Details) - USD ($) $ / shares in Units, $ in Thousands	9 Months Ended		12 Months Ended
	Oct. 02, 2021	Sep. 26, 2020	Dec. 31, 2020	Dec. 31, 2019
Net income per share
Net income per share attributable to common stockholders - Basic	$ (0.51)	$ 0.19	$ 0.16	$ 0.08
Net income per share attributable to common stockholders - Diluted	$ (0.51)	$ 0.19	$ 0.16	$ 0.08
Weighted-average common shares outstanding-basic and diluted
Weighted-average common shares outstanding - Basic	110,121,240	96,665,708	101,606,966	95,032,265
Weighted-average common shares outstanding - Diluted	110,121,240	97,122,885	102,602,738	95,400,528
Parent
Condensed Income Statements, Captions [Line Items]
Equity in net income of subsidiary			$ 15,983	$ 7,457
Net income attributable to common stockholders			$ 15,983	$ 7,457
Net income per share
Net income per share attributable to common stockholders - Basic			$ 0.16	$ 0.08
Net income per share attributable to common stockholders - Diluted			$ 0.16	$ 0.08
Weighted-average common shares outstanding-basic and diluted
Weighted-average common shares outstanding - Basic			101,606,966	95,032,265
Weighted-average common shares outstanding - Diluted			102,602,738	95,400,528

CONDENSED FINANCIAL INFORMATION OF REGISTRANT (PARENT COMPANY ONLY) - CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (Details) - USD ($) $ in Thousands	3 Months Ended						9 Months Ended		12 Months Ended
	Oct. 02, 2021	Jul. 03, 2021	Apr. 03, 2021	Sep. 26, 2020	Jun. 27, 2020	Mar. 28, 2020	Oct. 02, 2021	Sep. 26, 2020	Dec. 31, 2020	Dec. 31, 2019
Condensed Statement of Income Captions [Line Items]
Net (loss) income	$ (11,296)	$ (53,598)	$ 8,533	$ 17,740	$ 16,414	$ (15,451)	$ (56,361)	$ 18,703	$ 15,983	$ 7,457
Equity in other comprehensive income (loss) of subsidiary									2,825	(670)
Comprehensive (loss) income							$ (58,285)	$ 19,107	18,808	6,787
Parent
Condensed Statement of Income Captions [Line Items]
Net (loss) income									15,983	7,457
Equity in other comprehensive income (loss) of subsidiary									2,825	(670)
Comprehensive (loss) income									$ 18,808	$ 6,787

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

+ Details

CONDENSED FINANCIAL INFORMATION OF REGISTRANT (PARENT COMPANY ONLY) - CONDENSED STATEMENT OF CASH FLOWS (Details) - USD ($) $ in Thousands	9 Months Ended		12 Months Ended
	Oct. 02, 2021	Sep. 26, 2020	Dec. 31, 2020	Dec. 31, 2019
Cash flows from operating activities:
Net income	$ (56,361)	$ 18,703	$ 15,983	$ 7,457
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Net cash provided by operating activities	29,426	55,056	63,161	35,655
Cash flows from investing activities:
Net cash used in investing activities	(11,966)	(9,117)	(115,805)	(27,083)
Cash flows from financing activities:
Proceeds from issuance of common stock		615	65,553	250
Net cash provided by financing activities	14,323	(27,510)	54,302	16,551
Net increase in cash	31,559	19,198	2,655	24,167
Cash at beginning of period	59,310	56,655	56,655	32,488
Cash at end of period	90,869	75,853	59,310	56,655
Supplemental cash flow information:
Cash paid for interest	$ 14,208	$ 12,693	15,625	19,488
Parent
Cash flows from operating activities:
Net income			15,983	7,457
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Equity in net income of subsidiary			(15,983)	$ (7,457)
Cash flows from investing activities:
Investment in subsidiary			(65,553)
Net cash used in investing activities			(65,553)
Cash flows from financing activities:
Proceeds from issuance of common stock			65,553
Net cash provided by financing activities			$ 65,553

CONDENSED FINANCIAL INFORMATION OF REGISTRANT (PARENT COMPANY ONLY) - Additional information (Details) - USD ($) $ in Thousands			3 Months Ended	9 Months Ended	12 Months Ended
	Oct. 20, 2020	Oct. 14, 2020	Sep. 26, 2020	Sep. 26, 2020	Dec. 31, 2020	Dec. 31, 2019
Condensed Financial Statements, Captions [Line Items]
Issuance of common stock (in shares)	21,666,653	21,666,653		758,694	758,694	3,548,568
Value of shares issued during the period	$ 64,900	$ 64,900	$ 615		$ 65,553	$ 7,817
Parent
Condensed Financial Statements, Captions [Line Items]
Issuance of common stock (in shares)	21,666,653	21,666,653			205,197
Value of shares issued during the period	$ 64,900	$ 64,900			$ 600

SUBSEQUENT EVENT (Details) - USD ($) $ in Millions				12 Months Ended
SUBSEQUENT EVENT (Details) - USD ($) $ in Millions	Mar. 31, 2021	Feb. 02, 2021	Jan. 25, 2021	Dec. 31, 2020	Dec. 31, 2019
Subsequent Event [Line Items]
Common stock, distributions to Parent for the repurchase of Parent's shares				$ 0.6	$ 0.2
Payment of dividend to Parent		$ 110.0
Subsequent Event
Subsequent Event [Line Items]
Aggregate debt issuance costs			$ 1.2
Subsequent Event \| Amended Term Loan
Subsequent Event [Line Items]
Fixed quarterly payments	$ 5.8
Common stock, distributions to Parent for the repurchase of Parent's shares		175.0
Payment of note payable to Parent		64.9
Payment of dividend to Parent		$ 110.0
Subsequent Event \| Third Amendment [Member]
Subsequent Event [Line Items]
Principal amount			175.0
Borrowings treated as debt modification			10.0
Amount Borrowed Treated As Debt			$ 165.0

SUBSEQUENT EVENT (UNAUDITED) (Details) - USD ($) $ in Thousands		9 Months Ended
	Apr. 12, 2021	Oct. 02, 2021	Sep. 26, 2020
Subsequent Event [Line Items]
Cash fees paid		$ 104,600	$ 1,400
2021 Omnibus Incentive Plan \| Subsequent Event
Subsequent Event [Line Items]
Maximum aggregate number of shares reserved for issuance	13,170,212
2021 Omnibus Incentive Plan \| Subsequent Event \| Non-employee director
Subsequent Event [Line Items]
Cash fees paid	$ 750

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Oct. 02, 2021	Dec. 31, 2020
Current assets:
Cash	$ 90,869	$ 59,310
Trade receivables, net	75,314	32,758
Inventories, net	80,705	64,818
Income tax receivable	6,129	4,377
Prepaid expenses and other current assets	10,676	6,063
Total current assets	263,693	167,326
Property and equipment, net	58,767	47,357
Equity method investment	21,997	25,384
Deferred tax assets	793	345
Deferred offering costs		1,041
Goodwill	115,158	115,750
Intangible assets, net	271,831	289,473
Other assets	1,506	0
Total assets	733,745	646,676
Current liabilities:
Accounts payable	39,921	29,789
Accounts payable-related party	1,050	500
Current maturities of long-term debt	14,234	13,042
Accrued expenses and other current liabilities	59,454	50,606
Total current liabilities	114,659	93,937
Long-term debt, net of discount and current portion	219,967	208,454
Deferred income tax liabilities, net	55,949	55,193
Liability for uncertain tax positions	5,649	5,540
Other long-term liabilities	2,026	1,943
Total liabilities	398,250	365,067
Commitments and contingencies
Stockholders' equity:
Preferred stock, $0.0001 par value; 100,000,000 and no shares authorized as of October 2, 2021 and December 31, 2020 respectively; no shares issued and outstanding as of both October 2, 2021 and December 31, 2020
Common stock, $0.0001 par value; 500,000,000 shares authorized as of December 31, 2020 and 2019; 118,854,249 and 96,498,943 shares issued and outstanding as of December 31, 2020 and 2019, respectively	12	12
Additional paid-in capital	377,649	265,478
(Accumulated deficit) retained earnings	(42,596)	13,765
Accumulated other comprehensive income	430	2,354
Total stockholders' equity	335,495	281,609
Total liabilities and stockholders' equity	$ 733,745	$ 646,676

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Oct. 02, 2021	Dec. 31, 2020
Consolidated Balance Sheets
Preferred stock, par value	$ 0.0001	$ 0.0001
Preferred stock, shares authorized	100,000,000	0
Preferred Stock, shares issued	0	0
Preferred Stock, shares outstanding	0	0
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	900,000,000	500,000,000
Common stock, shares issued	119,849,589	118,854,249
Common stock, shares outstanding	119,849,589	118,854,249

Condensed Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended						9 Months Ended		12 Months Ended
	Oct. 02, 2021	Jul. 03, 2021	Apr. 03, 2021	Sep. 26, 2020	Jun. 27, 2020	Mar. 28, 2020	Oct. 02, 2021	Sep. 26, 2020	Dec. 31, 2020	Dec. 31, 2019
Consolidated Statements of Operations
Net sales							$ 491,592	$ 291,468	$ 403,389	$ 317,975
Cost of sales							329,805	186,699	260,616	219,819
Gross profit							161,787	104,769	142,773	98,156
Selling, general and administrative expense							170,532	50,888	85,527	57,388
Amortization							16,560	12,173	17,347	15,643
(Loss) income from operations							(25,305)	41,708	39,899	25,125
Other expense (income):
Interest expense							20,843	13,633	18,251	22,639
Other (income) expense , net							(3,887)	1,121	(1,111)	(300)
Total other expense, net							16,956	14,754	17,140	22,339
Earnings from equity method investment							1,808
(Loss) income before income taxes							(40,453)	26,954	22,759	2,786
Income tax expense							15,908	8,251	6,776	(4,671)
Net (loss) income	$ (11,296)	$ (53,598)	$ 8,533	$ 17,740	$ 16,414	$ (15,451)	$ (56,361)	$ 18,703	$ 15,983	$ 7,457
Net income per share attributable to common stockholders
Basic							$ (0.51)	$ 0.19	$ 0.16	$ 0.08
Diluted							$ (0.51)	$ 0.19	$ 0.16	$ 0.08
Weighted average common shares outstanding:
Basic							110,121,240	96,665,708	101,606,966	95,032,265
Diluted							110,121,240	97,122,885	102,602,738	95,400,528

Condensed Consolidated Statements of Comprehensive (Loss) Income - USD ($) $ in Thousands	3 Months Ended						9 Months Ended		12 Months Ended
	Oct. 02, 2021	Jul. 03, 2021	Apr. 03, 2021	Sep. 26, 2020	Jun. 27, 2020	Mar. 28, 2020	Oct. 02, 2021	Sep. 26, 2020	Dec. 31, 2020	Dec. 31, 2019
Consolidated Statements of Comprehensive Income
Net (loss) income	$ (11,296)	$ (53,598)	$ 8,533	$ 17,740	$ 16,414	$ (15,451)	$ (56,361)	$ 18,703	$ 15,983	$ 7,457
Other comprehensive (loss) income, net of tax:
Foreign currency translation adjustments							(1,924)	404	2,825	(664)
Comprehensive (loss) income							$ (58,285)	$ 19,107	$ 18,808	$ 6,787

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

+ Details

Condensed Consolidated Statements of Stockholders' Equity - USD ($)	Common Stock	Additional Paid-in Capital	(Accumulated Deficit) Retained Earnings	Accumulated Other Comprehensive Income (Loss)	Total
Balance, beginning of period at Dec. 31, 2018	$ 10,000	$ 188,049,000	$ (7,978,000)	$ 199,000	$ 180,280,000
Balance, beginning of period (in shares) at Dec. 31, 2018	92,925,353
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net (loss) income			7,457,000		7,457,000
Foreign currency translation adjustments				(664,000)	(664,000)
Issuance of common stock		7,817,000			$ 7,817,000
Issuance of common stock (in shares)	3,673,677				3,548,568
Shares issued to parent	3,673,677				3,548,568
Repurchase and retirement of treasury stock		(200,000)			$ (200,000)
Repurchase and retirement of treasury stock (in shares)	100,087				(100,087)
Stock-based compensation expense		808,000			$ 808,000
Balance, end of period at Dec. 31, 2019	$ 10,000	196,474,000	(2,218,000)	(471,000)	193,795,000
Balance, end of period (in shares) at Dec. 31, 2019	96,498,943
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net (loss) income			(15,451,000)		(15,451,000)
Foreign currency translation adjustments				(1,938,000)	(1,938,000)
Repurchase and retirement of treasury stock		(400,000)			(400,000)
Repurchase and retirement of treasury stock (in shares)	(200,173)
Stock-based compensation expense		224,000			224,000
Balance, end of period at Mar. 28, 2020	$ 10,000	196,298,000	(17,669,000)	(2,409,000)	176,230,000
Balance, end of period (in shares) at Mar. 28, 2020	96,298,770
Balance, beginning of period at Dec. 31, 2019	$ 10,000	196,474,000	(2,218,000)	(471,000)	193,795,000
Balance, beginning of period (in shares) at Dec. 31, 2019	96,498,943
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net (loss) income					$ 18,703,000
Issuance of common stock (in shares)					758,694
Shares issued to parent					758,694
Balance, end of period at Sep. 26, 2020	$ 10,000	200,163,000	16,485,000	(67,000)	$ 216,591,000
Balance, end of period (in shares) at Sep. 26, 2020	97,187,596
Balance, beginning of period at Dec. 31, 2019	$ 10,000	196,474,000	(2,218,000)	(471,000)	193,795,000
Balance, beginning of period (in shares) at Dec. 31, 2019	96,498,943
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net (loss) income			15,983,000		15,983,000
Foreign currency translation adjustments				2,825,000	2,825,000
Issuance of common stock	$ 2,000	65,551,000			$ 65,553,000
Issuance of common stock (in shares)	21,871,850				758,694
Shares issued to parent	21,871,850				758,694
Repurchase and retirement of treasury stock		(582,000)			$ (582,000)
Repurchase and retirement of treasury stock (in shares)	275,238				(275,238)
Contingent consideration settlement	$ 758,694	2,208,000			$ 2,208,000
Stock-based compensation expense		1,827,000			1,827,000
Balance, end of period at Dec. 31, 2020	$ 12,000	265,478,000	13,765,000	2,354,000	281,609,000
Balance, end of period (in shares) at Dec. 31, 2020	118,854,249
Balance, beginning of period at Mar. 28, 2020	$ 10,000	196,298,000	(17,669,000)	(2,409,000)	176,230,000
Balance, beginning of period (in shares) at Mar. 28, 2020	96,298,770
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net (loss) income			16,414,000		16,414,000
Foreign currency translation adjustments				2,295,000	2,295,000
Repurchase and retirement of treasury stock		(176,000)			(176,000)
Repurchase and retirement of treasury stock (in shares)	(75,065)
Stock-based compensation expense		240,000			240,000
Balance, end of period at Jun. 27, 2020	$ 10,000	196,362,000	(1,255,000)	(114,000)	195,003,000
Balance, end of period (in shares) at Jun. 27, 2020	96,223,705
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net (loss) income			17,740,000		17,740,000
Foreign currency translation adjustments				47,000	47,000
Issuance of common stock		615,000			615,000
Issuance of common stock (in shares)	205,197
Shares issued to parent	205,197
Contingent consideration settlement		2,208,000			2,208,000
Contingent consideration settlement (In shares)	758,694
Stock-based compensation expense		978,000			978,000
Balance, end of period at Sep. 26, 2020	$ 10,000	200,163,000	16,485,000	(67,000)	216,591,000
Balance, end of period (in shares) at Sep. 26, 2020	97,187,596
Balance, beginning of period at Dec. 31, 2020	$ 12,000	265,478,000	13,765,000	2,354,000	281,609,000
Balance, beginning of period (in shares) at Dec. 31, 2020	118,854,249
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net (loss) income			8,533,000		8,533,000
Foreign currency translation adjustments				(1,201,000)	(1,201,000)
Dividend		(110,033,000)			(110,033,000)
Repurchase and retirement of treasury stock	$ (2,000)	(64,936,000)			(64,938,000)
Repurchase and retirement of treasury stock (in shares)	(21,666,653)
Stock-based compensation expense		1,464,000			1,464,000
Balance, end of period at Apr. 03, 2021	$ 10,000	91,973,000	22,298,000	1,153,000	115,434,000
Balance, end of period (in shares) at Apr. 03, 2021	97,187,596
Balance, beginning of period at Dec. 31, 2020	$ 12,000	265,478,000	13,765,000	2,354,000	281,609,000
Balance, beginning of period (in shares) at Dec. 31, 2020	118,854,249
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net (loss) income					(56,361,000)
Aggregate net proceeds received from IPO					399,264,000
Balance, end of period at Oct. 02, 2021	$ 12,000	377,649,000	(42,596,000)	430,000	335,495,000
Balance, end of period (in shares) at Oct. 02, 2021	119,849,589
Balance, beginning of period at Apr. 03, 2021	$ 10,000	$ 91,973,000	22,298,000	1,153,000	115,434,000
Balance, beginning of period (in shares) at Apr. 03, 2021	97,187,596
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net (loss) income			(53,598,000)		(53,598,000)
Foreign currency translation adjustments				164,000	$ 164,000
Aggregate net proceeds received from IPO	$ 2,000
Net proceeds from initial public offering (in shares)	23,000,000	399,262,000			399,264,000
Repurchase and retirement of treasury stock	$ (1,000)	$ (216,699,000)			$ (216,700,000)
Repurchase and retirement of treasury stock (in shares)	(12,264,438)
Issuance of restricted stock in connection with the Reorganization	$ 1,000	(1,000)
Issuance of restricted stock in connection with the Reorganization (in shares)	8,340,126
Issuance of common stock upon conversion of Class B units (in shares)	4,145,987
Stock-based compensation expense		75,511,000			75,511,000
Balance, end of period at Jul. 03, 2021	$ 12,000	350,046,000	(31,300,000)	1,317,000	320,075,000
Balance, end of period (in shares) at Jul. 03, 2021	120,409,271
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net (loss) income			(11,296,000)		(11,296,000)
Foreign currency translation adjustments				(887,000)	(887,000)
Retirement of restricted stock	$ (559,682)
Stock-based compensation expense		27,603,000			27,603,000
Balance, end of period at Oct. 02, 2021	$ 12,000	$ 377,649,000	$ (42,596,000)	$ 430,000	$ 335,495,000
Balance, end of period (in shares) at Oct. 02, 2021	119,849,589

Condensed Consolidated Statements of Stockholders' Equity (Parenthetical)	3 Months Ended
	Apr. 03, 2021 $ / shares
Condensed Consolidated Statements of Stockholders' Equity
Dividend per share	$ 1.00

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Oct. 02, 2021	Sep. 26, 2020
Cash flows from operating activities:
Net income	$ (56,361)	$ 18,703
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Depreciation and amortization	23,689	17,461
Amortization of deferred financing costs and debt discount	5,907	1,867
Stock-based compensation expense	104,578	1,442
Other non-cash	1,349	825
Gain on sale of equity method investment	(3,856)
Earnings from equity method investment	(1,808)
Distribution received from equity method investment	1,808
Changes in operating assets and liabilities:
Trade receivables	(43,134)	(18,732)
Inventories	(16,128)	(2,202)
Prepaid expenses and other current assets	(4,774)	279
Income tax receivable	(1,752)	(1,287)
Other assets	(465)
Accounts payable	10,550	16,192
Accrued expenses and other current liabilities	9,740	20,449
Other long-term liabilities	83	59
Net cash provided by operating activities	29,426	55,056
Cash flows from investing activities:
Purchases of property and equipment	(19,242)	(9,677)
Proceeds from the sale of property and equipment	33	560
Return of equity method investment	447
Proceeds from the sale of equity method investment	6,796
Net cash used in investing activities	(11,966)	(9,117)
Cash flows from financing activities:
Proceeds from long-term debt borrowings	172,813
Payments on long-term debt borrowings	(164,833)	(20,925)
Proceeds from borrowings on the revolving credit facility	16,000	5,000
Payments on revolving credit facility borrowings	(16,000)	(5,000)
Deferred financing fees paid	(1,250)
Dividend to Class A unitholders	(110,033)
Proceeds from issuance of common stock		615
Proceeds from initial public offering, net of underwriting discounts, commissions and offering costs	399,264
Repurchase and retirement of treasury stock	(281,638)	(576)
Payments of Narellan Group Pty Limited contingent consideration		(6,624)
Net cash provided by financing activities	14,323	(27,510)
Effect of exchange rate changes on cash	(224)	769
Net increase in cash	31,559	19,198
Cash at beginning of period	59,310	56,655
Cash at end of period	90,869	75,853
Supplemental cash flow information:
Cash paid for interest	14,208	12,693
Income taxes paid, net	15,213	9,100
Supplemental disclosure of non-cash investing and financing activities:
Purchases of property and equipment included in accounts payable and accrued expenses	226	635
Capitalized internal-use software included in accounts payable - related party	$ 1,050
Fair value of 758,694 shares of common stock issued during the three fiscal quarters ended September 26, 2020 in connection with the acquisition of Narellan Group Pty Limited		$ 2,208

Consolidated Statements of Cash Flows (Parenthetical) - shares			9 Months Ended	12 Months Ended
	Oct. 20, 2020	Oct. 14, 2020	Sep. 26, 2020	Dec. 31, 2020	Dec. 31, 2019
Consolidated Statements of Cash Flows
Issuance of common stock (in shares)	21,666,653	21,666,653	758,694	758,694	3,548,568

NATURE OF THE BUSINESS

9 Months Ended

12 Months Ended

Oct. 02, 2021

Dec. 31, 2020

NATURE OF THE BUSINESS

NATURE OF THE BUSINESS

1.NATURE OF THE BUSINESS

Initial Public Offering, Reorganization and Stock Split

1.NATURE OF THE BUSINESS

On December 18, 2018, Latham Investment Holdings, LP (“Parent”), an investment fund managed by affiliates of Pamplona Capital Management (the “Sponsor”), Wynnchurch Capital, L.P. and management acquired all of the outstanding equity interests of Latham Topco., Inc. a newly incorporated entity in the State of Delaware. Latham Topco, Inc. changed its name to Latham Group, Inc. on March 3, 2021.

Impact of COVID-19 Pandemic

Stock Split

Reorganization

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

9 Months Ended

12 Months Ended

Oct. 02, 2021

Dec. 31, 2020

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

2.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

Unaudited Interim Financial Information

Use of Estimates

Seasonality

Accounting Policies

Refer to the Company’s Audited Consolidated Financial Statements herein for a discussion of the Company’s accounting policies, as updated below.

Stock-based Compensation

Equity Method Investments

Recently Issued Accounting Pronouncements

2.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

Use of Estimates

Seasonality

Although the Company generally has demand for its products throughout the year, its business is seasonal and weather is one of the principal external factors affecting the business. In general, net sales and net income are highest during spring and summer, representing the peak months of swimming pool use, pool installation and remodeling and repair activities. Sales periods having severe weather may also affect net sales.

Revenue Recognition

The Company does not engage in contracts greater than one year, and therefore does not have any contract costs capitalized as of December 31, 2019 and 2020.

Warranties

Cost of Sales

Trade Receivables, Net

Concentration of Credit Risk

Fair Value Measurements

Level 1—Quoted prices in active markets for identical assets or liabilities.

Level 2—Inputs, other than quoted prices in active markets, that are observable either directly or indirectly.

Level 3—Unobservable inputs that reflect the Company’s own assumptions incorporated into valuation techniques. These valuations require significant judgment.

Interest Rate Swap

Business Combinations

Equity Method Investments

Investments and ownership interests in common stock or in-substance common stock are accounted for under the equity method accounting if the Company has the ability to exercise significant influence over the entity, but does not have a controlling financial interest. Under the equity method, investments are initially recognized at cost and adjusted to reflect the Company’s interest in net earnings, dividends received and other-than-temporary impairments. The Company records its interest in the net earnings of its equity method investee, along with adjustments for amortization of basis differences, investee capital transactions and other comprehensive income (loss), within earnings (losses) from equity method investment in the consolidated statements of operations. Basis differences represent differences between the cost of the investment and the underlying equity in net assets of the investment and are generally amortized over the lives of the related assets that gave rise to the underlying basis differences. Profits or losses related to intra-entity sales with its equity method investee are eliminated until realized by the investor or investee.

Equity method goodwill is not amortized or tested for impairment; instead the Company evaluates equity method investments for impairment when events or changes in circumstances indicate that the decline in value below the carrying amount of its equity method investment is determined to be other than temporary. In such a case, the decline in value below the carrying amount of its equity method investment is recognized in the consolidated statements of operations in the period the impairment occurs.

Inventories, Net

Property and Equipment, Net


		Estimated
		Useful Life
Building and improvements		25 years
Molds and dyes		5 – 10 years
Machinery and equipment (including computer equipment and software)		3 – 10 years
Furniture and fixtures		5 – 7 years
Vehicles		5 years

Long-Lived Assets


		Estimated
Asset		Useful Life
Patented technology		5 – 10 years
Trade names and trademarks		9 – 25 years
Pool designs		14 years
Franchise relationships		4 years
Dealer relationships		5 – 15 years
Non-competition agreements		5 years

Goodwill

Debt Issuance Costs

Deferred Offering Costs

Segment Reporting

Income Taxes

Stock-Based Compensation

The Company accounts for forfeitures of stock-based awards as they occur rather than applying an estimated forfeiture rate to stock-based compensation expense.

Pension and Other Postretirement Plans

Foreign Currency Translation and Foreign Currency Transactions

Advertising Costs

Comprehensive Income (Loss)

Income tax (benefit) expense on the components of other comprehensive income (loss) was not significant for the years ended December 31, 2019 and 2020.

Earnings Per Share

Treasury Stock

Recently Adopted Accounting Standards

Recently Issued Accounting Pronouncements

ACQUISITIONS

9 Months Ended

12 Months Ended

Oct. 02, 2021

Dec. 31, 2020

ACQUISITIONS

ACQUISITIONS

3.ACQUISITIONS

GL International, LLC

The following summarizes the purchase price allocation for the GLI Acquisition:


(in thousands)	October 22, 2020
Total consideration	$	79,743
Allocation of purchase price:
Cash		5,007
Trade receivables		10,639
Inventories		11,854
Prepaid expenses and other current assets		3,949
Property and equipment		1,402
Intangible assets		46,700
Total assets acquired		79,551
Accounts payable		3,536
Accrued expenses and other current liabilities		8,853
Other long-term liabilities		524
Total liabilities assumed		12,913
Total fair value of net assets acquired, excluding goodwill:		66,638
Goodwill	$	13,105

The Company allocated a portion of the purchase price to specific intangible asset categories as follows:


	Fair Value		Amortization Period
Definite-lived intangible assets:	(in thousands)		(in years)
Trade names	$	9,500	9
Dealer relationships		37,200	8
	$	46,700

Pro Forma Financial Information (Unaudited)


	Three Fiscal Quarters
	Ended
(in thousands)	September 26,2020
Net sales	$	345,200
Net loss	$	21,952

3.ACQUISITIONS

Narellan Group Pty Limited

statements of operations and as contributed capital in the consolidated statements of stockholders’ equity as of and for the year-ended December 31, 2020.

The following summarizes the purchase price allocation for the Company’s acquisition of Narellan:


(in thousands)	May 31, 2019
Total consideration	$	35,233
Allocation of purchase price:
Cash		24
Trade receivables		1,420
Inventories		4,501
Prepaid expenses and other current assets		472
Property and equipment		4,861
Intangible assets		18,332
Deferred tax asset		126
Total assets acquired		29,736
Accounts payable		3,379
Accrued expenses and other current liabilities		442
Deferred tax liabilities		470
Total liabilities assumed		4,291
Total fair value of net assets acquired, excluding goodwill:		25,445
Goodwill	$	9,788

Total consideration was comprised of the following:


(in thousands)	Amount
Cash consideration	$	20,238
Fair value of equity consideration		7,567
Fair value of contingent consideration		7,428
Total consideration	$	35,233

The excess of the purchase price over the fair value of the identifiable assets acquired and the liabilities assumed in the acquisition was allocated to goodwill in the amount of $9.8 million. Goodwill resulting from the acquisition was attributable to the expanded market share and broader geographical footprint. The goodwill recognized is not deductible for tax purposes.

The Company allocated a portion of the purchase price to specific intangible asset categories as follows:


	Fair Value		Amortization
Definite-lived intangible assets:	(in thousands)		Period (in years)
Trade names and trademarks	$	9,535	25
Pool designs		5,728	14
Patented technology		1,410	5
Franchise relationships		1,187	4
Dealer relationships		472	5

The following are the net sales and net loss from Narellan included in the Company’s results from the Acquisition Date through December 31, 2019:


(in thousands)	Amount
Net sales	$	15,893
Net loss	$	(1,047)

GL International, LLC

On October 22, 2020, Latham Pool Products acquired GL International, LLC ( “GLI”) for a total purchase price of $79.7 million (the “GLI Acquisition”). The results of GLI’s operations have been included in the consolidated financial statements since that date. GLI specializes in manufacturing custom pool liners and safety covers. As a result, this acquisition expanded the Company’s liner and safety cover product offerings. In connection with the GLI Acquisition, consideration paid was $79.7 million in cash, or $74.7 million net of cash acquired of $5.0 million, and excluding a net working capital adjustment receivable of $0.8 million. The net working capital adjustment receivable was recorded in prepaid expenses and other current assets in the consolidated balance sheet as of December 31, 2020. The cash consideration was funded from existing cash on hand. The Company incurred $2.4 million in transaction costs.

The following summarizes the purchase price allocation for the Company’s acquisition of GLI:


(in thousands)	October 22, 2020
Total consideration	$	79,743
Allocation of purchase price:
Cash		5,007
Trade receivables		10,639
Inventories		11,854
Prepaid expenses and other current assets		3,949
Property and equipment		1,402
Intangible assets		46,700
Total assets acquired		79,551
Accounts payable		3,536
Accrued expenses and other current liabilities		8,853
Other long-term liabilities		524
Total liabilities assumed		12,913
Total fair value of net assets acquired, excluding goodwill:		66,638
Goodwill	$	13,105

The Company allocated a portion of the purchase price to specific intangible asset categories as follows:


	Fair Value		Amortization
Definite-lived intangible assets:	(in thousands)		Period (in years)
Trade names	$	9,500	9
Dealer relationships		37,200	8
	$	46,700

The following are the net sales and net loss from GLI included in the Company’s results from the GLI Acquisition Date through December 31, 2020:


	Year Ended
(in thousands)	December 31, 2020
Net sales	$	7,689
Net loss	$	(1,123)

Pro Forma Financial Information (Unaudited)


	Year Ended
	December 31,
(in thousands)	2019		2020
Net sales	$	382,029	$	462,802
Net income	$	6,066	$	26,344

EQUITY METHOD INVESTMENT

9 Months Ended

12 Months Ended

Oct. 02, 2021

Dec. 31, 2020

EQUITY METHOD INVESTMENT

EQUITY METHOD INVESTMENT

4.EQUITY METHOD INVESTMENT

FAIR VALUE MEASUREMENTS

9 Months Ended

12 Months Ended

Oct. 02, 2021

Dec. 31, 2020

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS

5.FAIR VALUE MEASUREMENTS

Level 1 — Quoted prices in active markets for identical assets or liabilities.

Level 2 — Inputs, other than quoted prices in active markets, that are observable either directly or indirectly.

Level 3 — Unobservable inputs that reflect the Company’s own assumptions incorporated into valuation techniques. These valuations require significant judgment.

Assets and liabilities measured at fair value on a nonrecurring basis

Assets and liabilities measured at fair value on a recurring basis

On May 31, 2019 (the “Acquisition Date”), Latham Pool Products acquired Narellan Group Pty Limited and its subsidiaries (collectively “Narellan”) for a total purchase price of $35.2 million (the “Narellan Acquisition”). In connection with the Narellan Acquisition, consideration paid included $20.2 million in cash, $7.6 million in equity consideration and $7.4 million of contingent consideration as of the Acquisition Date. The Company agreed to pay the contingent consideration in the form of cash and equity consideration to the seller if certain EBITDA targets were achieved for any of the trailing twelve months periods ended December 31, 2019, June 30, 2020 or the year ended December 31, 2020 (the “Contingent Consideration”). The fair value of the Contingent Consideration at the Acquisition Date was $7.4 million. On September 25, 2020, the Company amended the terms of the Narellan Share Purchase Agreement and settled the Contingent Consideration with the selling shareholders of Narellan based upon estimated EBITDA for the year ended December 31, 2020.

Pension Plan

Fair value of financial instruments

Term loan

which are classified as Level 2 inputs. The following table sets forth the carrying amount and fair value of the term loan (in thousands):


	October 2, 2021				December 31, 2020
	Carrying		Estimated		Carrying		Estimated
	Value		Fair Value		Value		Fair Value
Term loan	$	234,201	$	235,372	$	221,496	$	221,081

Interest rate swap

5.FAIR VALUE MEASUREMENTS

Assets and liabilities measured at fair value on a nonrecurring basis

Assets and liabilities measured at fair value on a recurring basis


	Fair Value
Balance as of May 31, 2019	$	7,428
Change in fair value of Contingent Consideration		1,441
Foreign currency translation adjustment		109
Balance as of December 31, 2019		8,978
Change in fair value of Contingent Consideration		(204)
Foreign currency translation adjustment		58
Payment of Contingent Consideration and issuance of common stock (see Note 3)		(8,832)
Balance as of September 25, 2020	$	—

The Monte Carlo simulation utilized the following unobservable inputs to determine the fair value of the Contingent Consideration as of December 31, 2019:


	Year Ended
	December 31, 2019
EBITDA risk adjustment	17.30	%
Annual EBITDA volatility	55.00	%
Risk-free rate of return	2.10	%

Fair value of financial instruments

Term loan


	December 31,
	2019				2020
	Carrying		Estimated		Carrying		Estimated
	Value		Fair Value		Value		Fair Value
Term loan	$	223,223	$	220,712	$	221,496	$	221,081

Interest rate swap

- Definition

+ References + Details

GOODWILL AND INTANGIBLE ASSETS, NET

9 Months Ended

12 Months Ended

Oct. 02, 2021

Dec. 31, 2020

GOODWILL AND INTANGIBLE ASSETS, NET

GOODWILL AND INTANGIBLE ASSETS, NET

6.GOODWILL AND INTANGIBLE ASSETS, NET

Goodwill

Intangible Assets

Intangible assets, net as of October 2, 2021 consisted of the following (in thousands):


	October 2, 2021
	Gross		Foreign
	Carrying		Currency		Accumulated
	Amount		Translation		Amortization		Net Amount
Trade names and trademarks	$	135,100	$	476	$	14,839	$	120,737
Patented technology		16,126		70		4,772		11,424
Pool designs		5,728		286		956		5,058
Franchise relationships		1,187		59		694		552
Dealer relationships		160,376		23		27,434		132,965
Non-competition agreements		2,476		—		1,381		1,095
	$	320,993	$	914	$	50,076	$	271,831

The Company recognized $16.6 million of amortization expense related to intangible assets during the three fiscal quarters ended October 2, 2021.

Intangible assets, net as of December 31, 2020 consisted of the following (in thousands):


	December 31,2020
	Gross		Foreign
	Carrying		Currency		Accumulated
	Amount		Translation		Amortization		Net Amount
Trade names and trademarks	$	135,100	$	1,047	$	10,258	$	125,889
Patented technology		16,126		155		3,452		12,829
Pool designs		5,728		629		648		5,709
Franchise relationships		1,187		130		470		847
Dealer relationships		160,376		52		17,697		142,731
Non-competition agreements		2,476		—		1,008		1,468
	$	320,993	$	2,013	$	33,533	$	289,473

The Company recognized $12.2 million of amortization expense related to intangible assets during the three fiscal quarters ended September 26, 2020.

The Company estimates that amortization expense related to definite-lived intangible assets will be as follows in each of the next five years and thereafter (in thousands):


	Estimated Future
Year Ended	Amortization Expense
Remainder of fiscal 2021	$	5,415
2022		21,959
2023		21,768
2024		20,948
2025		20,791
Thereafter		180,950
	$	271,831

6.GOODWILL AND INTANGIBLE ASSETS, NET

Goodwill

The following table presents the changes in the carrying value of goodwill during the years ended December 31, 2019 and 2020 (in thousands):


	Amount
Balance as of December 31, 2018	$	91,782
Acquisition		9,788
Foreign currency translation adjustment		102
Balance as of December 31, 2019		101,672
Acquisition		13,105
Foreign currency translation adjustment		973
Balance as of December 31, 2020	$	115,750

Intangible Assets

Intangible assets, net as of December 31, 2019 consisted of the following (in thousands):


	December 31, 2019
	Gross		Foreign
	Carrying		Currency		Accumulated		Net
	Amount		Translation		Amortization		Amount
Trade names and trademarks	$	125,600	$	99	$	5,032	$	120,667
Patented technology		16,126		14		1,698		14,442
Pool designs		5,728		59		239		5,548
Franchise relationships		1,187		12		173		1,026
Dealer relationships		123,176		5		8,530		114,651
Non-competition agreements		2,476		—		513		1,963
	$	274,293	$	189	$	16,185	$	258,297

The Company recognized $15.6 million of amortization expense related to intangible assets during the year ended December 31, 2019.

Intangible assets, net as of December 31, 2020 consisted of the following (in thousands):


	December 31, 2020
	Gross		Foreign
	Carrying		Currency		Accumulated		Net
	Amount		Translation		Amortization		Amount
Trade names and trademarks	$	135,100	$	1,047	$	10,258	$	125,889
Patented technology		16,126		155		3,452		12,829
Pool designs		5,728		629		648		5,709
Franchise relationships		1,187		130		470		847
Dealer relationships		160,376		52		17,697		142,731
Non-competition agreements		2,476		—		1,008		1,468
	$	320,993	$	2,013	$	33,533	$	289,473

The Company recognized $17.3 million of amortization expense related to intangible assets during the year ended December 31, 2020.

The Company estimates that amortization expense related to definite-lived intangible assets will be as follows in each of the next five years and thereafter (in thousands):


	Estimated Future
	Amortization
Year Ended	Expense
2021	$	21,959
2022		21,959
2023		21,768
2024		20,948
2025		20,791
Thereafter		182,048
	$	289,473

INVENTORIES, NET

9 Months Ended

12 Months Ended

Oct. 02, 2021

Dec. 31, 2020

INVENTORIES, NET

INVENTORIES, NET

7.INVENTORIES, NET

Inventories, net consisted of the following (in thousands):


	October 2, 2021		December 31,2020
Raw materials	$	57,165	$	37,010
Finished goods		23,540		27,808
	$	80,705	$	64,818

7.INVENTORIES, NET

Inventories, net consisted of the following (in thousands):


	December 31,
	2019		2020
Raw materials	$	19,035	$	37,010
Finished goods		16,576		27,808
	$	35,611	$	64,818

LONG-TERM DEBT

9 Months Ended

12 Months Ended

Oct. 02, 2021

Dec. 31, 2020

LONG-TERM DEBT

LONG-TERM DEBT

8.LONG-TERM DEBT

The components of the Company’s outstanding debt obligations consisted of the following (in thousands):


	October 2,2021		December 31, 2020
Term loan	$	238,314	$	228,147
Less: Unamortized discount and debt issuance costs		(4,113)		(6,651)
Total debt		234,201		221,496
Less: Current portion of long-term debt		(14,234)		(13,042)
Total long-term debt	$	219,967	$	208,454

Revolving Credit Facility

Term Loan Facility

On April 27, 2021, upon completion of the IPO, the Company used $152.7 million of the net proceeds from the IPO to repay $152.7 million of the Amended Term Loan.

Principal payments due on the outstanding debt in the next five fiscal years, excluding any potential payments based on excess cash flow levels, are as follows (in thousands):


Year Ended	Term Loan Facility
Remainder of fiscal 2021	$	3,558
2022		14,234
2023		14,234
2024		14,234
2025		192,054
	$	238,314

9.LONG-TERM DEBT

The components of the Company’s outstanding debt obligations consisted of the following (in thousands):


	December 31,
	2019		2020
Term loan	$	232,191	$	228,147
Less: Unamortized discount and debt issuance costs		(8,968)		(6,651)
Total debt		223,223		221,496
Less: Current portion of long-term debt		(6,891)		(13,042)
Total long-term debt	$	216,332	$	208,454

Revolving Credit Facility

On December 18, 2018, the Latham Pool Products entered into an agreement (the “Credit Agreement”) with Nomura Corporate Funding Americas, LLC (“Nomura”) that included a revolving line of credit (the “Revolver”) and letters of credit (“Letters of Credit” or collectively with the Revolver, the “Revolving Credit Facility”), as well as a term loan (as described below). The Revolving Credit Facility was utilized to finance ongoing general corporate and working capital needs with the Revolver of up to $30.0 million. The Revolving Credit Facility matures on December 18, 2023.

Term Loan Facility

On October 14, 2020, the Company entered into a subsequent amendment under the Original Term Loan with Nomura to borrow an additional $20.0 million (the “Second Amendment” and collectively with the Original Term Loan and the First Amendment, the “Term Loan”). The Company accounted for the borrowings under the Second Amendment as new debt and recorded $0.1 million of third party costs as a direct reduction to the carrying amount of long-term debt on the consolidated balance sheet. There were no financing costs incurred with the Second Amendment. The Term Loan has a maturity date of June 18, 2025. Interest and principal payments are due quarterly.

The Term Loan bears interest at (1) a base rate equal to the highest of (i) the Federal Funds Rate plus 1∕2 of 1%, (ii) the “prime rate” published in the Money Rates section of the Wall Street Journal and (iii) LIBOR plus 1.00% (2) plus a Loan Margin of (i) 6.00% for Eurocurrency Rate Loans and (ii) 5.00% for Base Rate Loans, as defined in the Credit Agreement. Principal payments under the First Amendment were calculated as 0.629% of the outstanding principal balance. In connection with the Second Amendment, the Company is required to repay the outstanding principal balance of the Term Loan in fixed quarterly payments of $3.3 million, commencing March 31, 2021. The Company was required to make a $1.6 million principal payment for the partial period of October 14, 2020 through December 31, 2020. Outstanding borrowings at December 31, 2019 and 2020 were $223.2 million and $221.5 million, respectively, net of discount and debt issuance costs of $9.0 million and $6.7 million, respectively. In connection with the Term Loan, the Company is subject to various financial reporting, financial and other covenants, including maintaining specific liquidity measurements.


	Mandatory
	Prepayment
Leverage Ratio	Percentage
> 3.50:1.00	90	%
> 3.00:1.00 and ≤ 3.50:1.00	75	%
> 2.50:1.00 and ≤ 3.00:1.00	50	%
> 2.00:1.00 and ≤ 2.50:1.00	25	%
≤ 2.00:1.00	0	%

The Company recorded interest expense associated with the Revolving Credit Facility, Second Amendment and interest rate swap, as follows (in thousands):


	Year Ended
	December 31,
	2019		2020
Cash interest expense	$	19,488	$	15,625
Amortization of debt issuance costs		2,968		2,179
Amortization of original issue discount		183		138
Interest rate swap		—		334
Gain on extinguishment of debt		—		(25)
Total interest expense	$	22,639	$	18,251

Principal payments due on the outstanding debt in the next five fiscal years, excluding any potential payments based on excess cash flow levels, are as follows (in thousands):


	Term Loan
Year Ended	Facility
2021	$	13,042
2022		13,042
2023		13,042
2024		13,042
2025		175,979
	$	228,147

PRODUCT WARRANTIES

9 Months Ended

12 Months Ended

Oct. 02, 2021

Dec. 31, 2020

PRODUCT WARRANTIES

PRODUCT WARRANTIES

9.PRODUCT WARRANTIES

The warranty reserve activity consisted of the following (in thousands):


	Three Fiscal Quarters Ended
	October 2,2021		September 26, 2020
Balance at the beginning of the year	$	2,882	$	2,846
Accruals for warranties issued		4,369		2,270
Less: Settlements made (in cash or in kind)		(3,825)		(2,501)
Balance at the end of the year	$	3,426	$	2,615

11.PRODUCT WARRANTIES

The warranty reserve activity consisted of the following (in thousands):


	Year Ended
	December 31,
	2019		2020
Balance at the beginning of the year	$	1,977	$	2,846
Accruals for warranties issued		3,729		3,966
Warranty liabilities assumed in GLI Acquisition		—		118
Less: Settlements made (in cash or in kind)		(2,860)		(4,048)
Balance at the end of the year		2,846		2,882
Less: Current portion of accrued warranty costs		(2,663)		(2,705)
Accrued warranty costs — less current portion	$	183	$	177

NET SALES

9 Months Ended

12 Months Ended

Oct. 02, 2021

Dec. 31, 2020

NET SALES

NET SALES

10.NET SALES

The following table sets forth the Company’s disaggregation of net sales by product line (in thousands):


	Three Fiscal Quarters Ended
	October 2, 2021		September 26, 2020
In-ground Swimming Pools	$	285,704	$	169,681
Covers		94,354		53,528
Liners		111,534		68,259
	$	491,592	$	291,468

12.NET SALES

The following table sets forth the Company’s disaggregation of net sales by product line (in thousands):


	Year Ended
	December 31,
	2019		2020
In-ground Swimming Pools	$	175,033	$	237,410
Covers		70,984		84,524
Liners		71,958		81,455
	$	317,975	$	403,389

The allowance for bad debt activity during the years ended December 31, 2019 and 2020 was as follows (in thousands):


	Year Ended
	December 31,
	2019		2020
Balance at the beginning of the year	$	1,535	$	1,322
Bad debt expense		253		358
Write-offs		(466)		(242)
Balance at the end of the year	$	1,322	$	1,438

- Definition

+ References

+ Details

INCOME TAXES

9 Months Ended

12 Months Ended

Oct. 02, 2021

Dec. 31, 2020

INCOME TAXES

INCOME TAXES

11.INCOME TAXES

13.INCOME TAXES


	Year Ended
	December 31,
	2019		2020
Income (loss) before income taxes:
Domestic	$	9,939	$	19,609
Foreign		(7,153)		3,150
Total	$	2,786	$	22,759

Current and deferred income tax (benefit) expense is composed of the following (in thousands):


	Year Ended
	December 31,
	2019		2020
Current income tax (benefit) expense:
Domestic	$	5,424	$	10,342
Foreign		131		1,104
Total current tax (benefit) expense		5,555		11,446
Deferred income tax (benefit) expense:
Domestic		(10,020)		(4,532)
Foreign		(206)		(138)
Total deferred tax (benefit) expense		(10,226)		(4,670)
Total income tax (benefit) expense	$	(4,671)	$	6,776

The reconciliation of the statutory federal income tax rate with the Company’s effective income tax rate is as follows (% of Income Before Income Taxes):


	Year Ended		Year Ended
	December 31, 2019		December 31, 2020
Federal statutory tax rate	21.0	%	21.0	%
Foreign taxes less than U.S. statutory rate	1.1	%	1.2	%
State income tax, net of federal benefit	(67.2)	%	1.4	%
Uncertain tax positions	348.2	%	0.8	%
Change in valuation allowance	(5.9)	%	(1.1)	%
GILTI	21.1	%	1.5	%
Meals and entertainment	6.8	%	0.5	%
Foreign expenses not deductible for tax	56.1	%	1.7	%
Transaction costs not deductible for tax	13.3	%	2.0	%
Canadian restructuring	(562.4)	%	—
Canadian Branch Income	0.0	%	1.8	%
Other expenses not deductible for tax	(0.1)	%	(1.0)	%
	(168.0)	%	29.8	%


	Year Ended
	December 31,
	2019		2020
Balance at January 1	$	(12,300)	$	(12,463)
Additions		(163)		(241)
Balance at December 31	$	(12,463)	$	(12,704)

Deferred Income Taxes


	December 31,
	2019		2020
Deferred tax assets:
Net operating loss carryforwards	$	12,110	$	12,099
Inventories, net		680		473
Warranty reserve		649		789
Trade receivables		477		360
Profits interest units		389		760
Section 163(j)		289		—
Deferred taxes in equity		257		257
Accrued expenses		224		498
Transaction costs		107		607
Canadian tax credits		86		255
Other		64		216
Gross deferred tax assets		15,332		16,314
Valuation allowance		(12,463)		(12,704)
Total deferred tax asset		2,869		3,610
Less: Foreign deferred tax benefit		(206)		(345)
Total domestic deferred tax asset		2,663		3,265
Deferred tax liabilities:
Intangible assets		(57,221)		(53,874)
Property and equipment, net		(4,677)		(4,120)
Prepaid expenses		(773)		(464)
Total deferred tax liabilities		(62,671)		(58,458)
Net deferred tax liabilities	$	(60,008)	$	(55,193)

Tax Uncertainties

The following is a reconciliation of the beginning and ending amount of uncertain tax positions (in thousands):


	Year Ended
	December 31,
	2019		2020
Balance at the beginning of the year	$	—	$	9,681
Additions for tax positions taken during prior years		—		181
Additions for tax positions taken during the current year		9,681		—
Balance at the end of the year	$	9,681	$	9,862

- Definition

+ References + Details

SHAREHOLDERS' EQUITY

9 Months Ended

Oct. 02, 2021

SHAREHOLDERS' EQUITY

SHAREHOLDERS' EQUITY

12.SHAREHOLDERS’ EQUITY

Equity Structure Prior to Reorganization

Prior to the IPO and the Reorganization, the Parent owned 100% of the issued and outstanding common stock of the Company. The capital structure of the Parent consisted of two different classes of limited partnership interests, Class A and Class B units (profits interests). Prior to the Reorganization, none of the Class B units would have been vested for accounting purposes due to the Parent’s $0 Repurchase Right, which applied in the event of a voluntary termination or termination without cause, since it functions as a vesting condition.

Equity Structure Subsequent to the Reorganization

On April 13, 2021, the Company’s certificate of incorporation was amended, which amended and restated certain terms of the certificate of incorporation. Under the amended certificate of incorporation, the Company had authority to issue 500,000,000 shares of common stock, par value $0.0001 per share. On April 12, 2021, the Company’s board of directors declared and on April 13, 2021, the Company effected a 109,673,709-for-one stock split of its issued and outstanding shares of common stock.

As a part of the equity Reorganization, on April 22, 2021, 194,207,115 Class A units converted into 97,187,596 shares of common stock and 26,158,894 Class B units converted into 4,145,987 shares of common stock and 8,340,126 shares of unvested restricted stock. Refer to Note 1 for detail regarding the Company’s Reorganization and conversion of Class A and Class B units to common and restricted shares.

Amendment and Restatement of Certificate of Incorporation

On April 22, 2021, the Company’s certificate of incorporation was further amended and restated to, among other things, increase the authorized shares to 1,000,000,000, of which 900,000,000 are shares of common stock, par value $0.0001 per share and 100,000,000 are shares of preferred stock, par value 0.0001 per share.

As of October 2, 2021 and December 31, 2020, 112,153,832 and 118,854,249 shares of common stock are issued and outstanding for accounting purposes, respectively.

PROFITS INTEREST UNITS

9 Months Ended

12 Months Ended

Oct. 02, 2021

Dec. 31, 2020

PROFITS INTEREST UNITS

PROFITS INTEREST UNITS

13.PROFITS INTEREST UNITS


		Weighted-
		Average Grant-
	Number of PIUs	Date Fair Value
Balance at January 1, 2020	21,734,170	$	0.60
Granted	7,843,107		0.35
Forfeited	(2,152,315)		0.43
Balance at December 31, 2020	27,424,962
Granted	—
Forfeited	(1,266,068)		0.34
Balance at April 21, 2021	26,158,894
Converted at IPO in connection with the Reorganization	(26,158,894)	$	0.43
Balance at October 2, 2021	—

16.PROFITS INTEREST UNITS


		Weighted-Average
		Grant-Date
	Number of PIUs	Fair Value
Balance at January 1, 2019	20,890,124	$	0.41
Granted	3,692,699	$	0.38
Forfeited	(2,848,653)	$	0.41
Balance at December 31, 2019	21,734,170
Granted	7,843,107	$	0.60
Forfeited	(2,152,315)	$	0.35
Balance at December 31, 2020	27,424,962	$	0.43

The Company uses the following assumptions in conjunction with the Contingent Claims Analysis Model to estimate the fair value of the PIUs:


	Year Ended		Year Ended
	December 31, 2019		December 31, 2020
Expected volatility	49.00	%	55.00	%
Risk-free interest rate	1.90	%	0.20	%
Expected term (in years)	4.6		3.2	%
Expected dividend yield	—	%	—	%

STOCK-BASED COMPENSATION

9 Months Ended

Oct. 02, 2021

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION

14.STOCK-BASED COMPENSATION

Contemporaneously with the pricing of the Company’s IPO, on April 22, 2021 the Company granted 8,340,126 of restricted stock awards, 341,301 of restricted stock units and 886,862 of option awards under the Omnibus Incentive Plan to employees of the Company. Of the 8,340,126 restricted stock awards granted, (i) 6,799,414 vest every six months in equal installments beginning on December 27, 2021 and ending on December 27, 2023, and (ii) 1,540,712 vest every six months in equal installments, beginning on December 27, 2021 and ending on December 27, 2024. Of the 341,301 restricted stock unit awards granted, (i) 251,828 vest 1/3 on the nine-month anniversary of the Closing of the IPO, 1/3 on the first anniversary of the Closing of the IPO, and 1/3 on the two-year anniversary of the Closing of the IPO; (ii) 22,367 vest on the first anniversary of the Closing of the IPO; (iii) 51,316 vest on the nine-month anniversary of the Closing of the IPO; and (iv) 15,790 vest evenly on each of the first three anniversaries of the Closing of the IPO. All 886,862 of the option awards vest 25% annually on each of the first four anniversaries of the Closing of the IPO. The option awards were granted with a strike price of $19.00 per share. Under the terms of the Omnibus Incentive Plan, all stock options will expire if not exercised within ten years of the grant date.

Stock-based compensation expense for the three fiscal quarters ended October 2, 2021 was $104.6 million. Stock-based compensation expense for the three fiscal quarters ended September 26, 2020 was $1.4 million. Stock-based compensation expense of $6.8 million and $97.8 million was recorded in cost of sales and selling, general and administrative expense, respectively, for the three fiscal quarters ended October 2, 2021. Stock-based compensation expense for the three fiscal quarters ended September 26, 2020 was recorded in selling, general and administrative expense on the condensed consolidated statements of operations. Of the $104.6 million of stock-based compensation expense recorded during the three fiscal quarters ended October 2, 2021, $0.5 million was due to the accelerated vesting of restricted stock and $49.0 million was due to the modification as a result of the Reorganization. Refer to Note 12 above for detail regarding the Company’s equity-based awards issued in the form of PIUs prior to the Reorganization and IPO. As of October 2, 2021, total unrecognized stock-based compensation expense related to all unvested stock-based awards of $106.2 million, which is expected to be recognized over a weighted-average period of 1.49 years.

The following table sets forth the significant assumptions used in the Black-Scholes option-pricing model on a weighted-average basis to determine the fair value of option awards granted:


	Three Fiscal
	Quarters Ended
	October 2, 2021
Risk-free interest rate	0.63	%
Expected volatility	38.16	%
Expected term (in years)	6.25
Expected dividend yield	0.00	%

Restricted Stock Awards

The following table represents the Company’s restricted stock awards activity during the three fiscal quarters ended October 2, 2021:


		Weighted-
		Average Grant-
	Shares	Date Fair Value
Outstanding at January 1, 2021	—	$	—
Granted	8,340,126		19.00
Vested	(84,687)		—
Forfeited	(559,682)		19.00
Outstanding at October 2, 2021	7,695,757	$	19.00

Restricted Stock Units

The following table represents the Company’s restricted stock units activity during the three fiscal quarters ended October 2, 2021:


		Weighted-
		Average Grant-
	Shares	Date Fair Value
Outstanding at January 1, 2021	—	$	—
Granted	341,301		19.00
Vested	—		—
Forfeited	(16,767)		19.00
Outstanding at October 2, 2021	324,534	$	19.00

Stock Options

The following table represents the Company’s stock option activity during the three fiscal quarters ended October 2, 2021:


		Weighted-		Weighted-Average
		Average Exercise		Remaining	Aggregate
	Shares	Price per Share		Contract Term	Intrinsic Value
				(in years)	(in thousands)
Outstanding on January 1, 2021	—	$	—	—	$	—
Granted	886,862		19.00
Exercised	—
Forfeited	(81,092)
Outstanding at October 2, 2021	805,770	$	19.00	9.55	$	—
Vested and expected to vest at October 2, 2021	805,770	$	19.00	9.55	$	—
Options exercisable at October 2, 2021	—		—	—		—

The aggregate intrinsic value of stock options is calculated as the difference between the exercise price of the stock options and the fair value of the Company’s common stock for those stock options that had exercise prices lower than the fair value of the Company’s common stock.

The weighted average grant-date fair value of stock options granted during the three fiscal quarters ended October 2, 2021 was $7.20 per share.

NET INCOME (LOSS) PER SHARE

9 Months Ended

12 Months Ended

Oct. 02, 2021

Dec. 31, 2020

NET INCOME (LOSS) PER SHARE

NET INCOME (LOSS) PER SHARE

15.NET INCOME (LOSS) PER SHARE

Basic and diluted net income (loss) per share attributable to common stockholders was calculated as follows (in thousands, except share and per share data):


	Three Fiscal Quarters Ended
	October 2, 2021		September 26, 2020
Numerator:
Net (loss) income attributable to common stockholders	$	(56,361)	$	18,703
Denominator:
Weighted-average common shares outstanding
Basic		110,121,240		96,665,708
Diluted		110,121,240		97,122,885
Net (loss) income per share attributable to common stockholders:
Basic	$	(0.51)	$	0.19
Diluted	$	(0.51)	$	0.19


	Three Fiscal Quarters Ended
	October 2, 2021	September 26, 2020
Restricted stock awards	6,813,166	47,446
Restricted stock units	84,866	—
Stock options	4,235	—

18.NET INCOME PER SHARE

Basic and diluted net income per share attributable to common stockholders was calculated as follows (in thousands, except share and per share data):


	Year Ended December 31,
	2019		2020
Numerator:
Net income attributable to common stockholders	$	7,457	$	15,983
Denominator:
Weighted-average common shares outstanding
Basic		95,032,265		101,606,966
Diluted		95,400,528		102,602,738
Net income per share attributable to common stockholders
Basic	$	0.08	$	0.16
Diluted	$	0.08	$	0.16

There were no potentially dilutive securities outstanding during the year ended December 31, 2019.


	Year Ended December 31,
	2019	2020
Restricted stock awards	97,718	22,524

RELATED PARTY TRANSACTIONS

9 Months Ended

12 Months Ended

Oct. 02, 2021

Dec. 31, 2020

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS

16.RELATED PARTY TRANSACTIONS

BrightAI Services

Expense Reimbursement and Management Fees

Operating Lease

19.RELATED PARTY TRANSACTIONS

BrightAI Services

Starting in 2020, BrightAI rendered services to the Company, for which the cost was capitalized as internal-use software. A co-founder of BrightAI Services has served on the Company’s board of directors since December 9, 2020. During the year ended December 31, 2020, the Company incurred $0.5 million associated with services performed by BrightAI, which is recorded as construction in progress within in property and equipment, net and accounts payable — related party on the consolidated balance sheet as of December 31, 2020.

Expense Reimbursement and Management Fees

Operating Lease

In May 2019, in connection with the Narellan Acquisition, the Company assumed an operating lease for the manufacture, sale and storage of swimming pools and associated equipment with Acquigen Pty Ltd, which is owned by an employee who is also a shareholder of the Company. The lease expires in June 2028. As of December 31, 2019 and 2020, future minimum lease payments totaled $4.3 million and $4.2 million, respectively, related to this lease. The Company recognized $0.2 million and $0.4 million of rent expense related to this lease during the years ended December 31, 2019 and 2020, respectively, which is recognized within selling, general and administrative expense on the consolidated statements of operations.

SEGMENT AND GEOGRAPHIC INFORMATION

9 Months Ended

12 Months Ended

Oct. 02, 2021

Dec. 31, 2020

SEGMENT AND GEOGRAPHIC INFORMATION

SEGMENT AND GEOGRAPHIC INFORMATION

17.SEGMENT AND GEOGRAPHIC INFORMATION

Segment Information

Geographic Information

Net sales by geography is based on the delivery address of the customer as specified in purchase order. Net sales by geographic area was as follows (in thousands):


	Three Fiscal Quarters Ended
	October 2, 2021		September 26, 2020
Net sales
United States	$	385,259	$	234,439
Canada		76,619		38,197
Australia		18,581		13,187
New Zealand		5,277		2,357
Other		5,856		3,288
Total	$	491,592	$	291,468

Our long-lived assets by geographic area, which consist of property and equipment, net assets were as follows (in thousands):


	October 2, 2021		December 31, 2020
Long-lived assets
United States	$	48,158	$	37,680
Canada		4,358		3,050
Australia		4,394		4,979
New Zealand		1,857		1,648
Total	$	58,767	$	47,357

20.SEGMENT AND GEOGRAPHIC INFORMATION

Segment Information

Geographic Information

Net sales by geography is based on the delivery address of the customer as specified in purchase order. Net sales by geographic area was as follows (in thousands):


	December 31,
	2019		2020
Net sales
United States	$	257,786	$	325,716
Canada		43,157		50,499
Australia		12,126		20,181
New Zealand		2,432		3,984
Other		2,474		3,009
Total	$	317,975	$	403,389

Our long-lived assets by geographic area, which consist of property and equipment, net assets were as follows (in thousands):


	December 31,
	2019		2020
Long-lived assets
United States	$	30,433	$	37,680
Canada		2,279		3,050
Australia		4,094		4,979
New Zealand		1,039		1,648
Total	$	37,845	$	47,357

- Definition

+ References

+ Details

SUBSEQUENT EVENTS

9 Months Ended

12 Months Ended

Oct. 02, 2021

Dec. 31, 2020

SUBSEQUENT EVENT

SUBSEQUENT EVENTS

18.SUBSEQUENT EVENTS

Debt Amendment and Acquisition

22.SUBSEQUENT EVENT

Debt Recapitalization

The Amended Term Loan allowed for the $175.0 million of proceeds to be distributed to common stockholders. On February 2, 2021, the Company used the proceeds of the Amended Term Loan to repurchase and retire treasury stock of $64.9 million and pay a dividend to Class A unitholders of $110.0 million.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	9 Months Ended	12 Months Ended
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	Oct. 02, 2021	Dec. 31, 2020
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation	Basis of Presentation The accompanying unaudited condensed consolidated financial statements and accompanying notes have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”). The Company’s unaudited condensed consolidated financial statements include the accounts of the Company and its subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Unaudited Interim Financial Information The consolidated balance sheet at December 31, 2020 was derived from audited financial statements but does not include all disclosures required by GAAP. The accompanying unaudited condensed consolidated financial statements as of October 2, 2021 and for the three fiscal quarters ended October 2, 2021 and September 26, 2020 have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial statements. Certain information and footnote disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. In the opinion of management, all adjustments, consisting only of normal recurring adjustments necessary for a fair statement of the Company’s financial position as of October 2, 2021 and results of operations for the three fiscal quarters ended October 2, 2021 and September 26, 2020 and cash flows for the three fiscal quarters ended October 2, 2021 and September 26, 2020 have been made. The Company’s results of operations for the three fiscal quarters ended October 2, 2021 are not necessarily indicative of the results of operations that may be expected for the year ending December 31, 2021.	Basis of Presentation The accompanying consolidated financial statements and accompanying notes have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”). The Company’s consolidated financial statements include the accounts of the Company and its subsidiaries. All intercompany balances and transactions have been eliminated in consolidation.
Use of Estimates	Use of Estimates The preparation of the Company’s condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. The Company bases its estimates on historical experience, known trends and other market-specific or other relevant factors that it believes to be reasonable under the circumstances. Estimates are evaluated on an ongoing basis and revised as there are changes in circumstances, facts and experience. Changes in estimates are recorded in the period in which they become known.	Use of Estimates The preparation of the Company’s consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. The Company bases its estimates on historical experience, known trends and other market-specific or other relevant factors that it believes to be reasonable under the circumstances. Estimates are evaluated on an ongoing basis and revised as there are changes in circumstances, facts and experience. Changes in estimates are recorded in the period in which they become known.
Seasonality	Seasonality Although the Company generally has demand for its products throughout the year, its business is seasonal and weather is one of the principal external factors affecting the business. Historically, net sales and net income are highest during spring and summer, representing the peak months of swimming pool use, pool installation and remodeling and repair activities. Sales periods having severe weather may also affect net sales.	Seasonality Although the Company generally has demand for its products throughout the year, its business is seasonal and weather is one of the principal external factors affecting the business. In general, net sales and net income are highest during spring and summer, representing the peak months of swimming pool use, pool installation and remodeling and repair activities. Sales periods having severe weather may also affect net sales.
Accounting Policies	Accounting Policies Refer to the Company’s Audited Consolidated Financial Statements herein for a discussion of the Company’s accounting policies, as updated below.
Stock-Based Compensation	Stock-based Compensation Stock-based compensation is measured and recognized based on the grant date fair value of the awards. The Class B units of the Parent were granted to employees in the form of Profits Interest Units (“PIUs”). The Company determined the grant date fair value of PIUs using the Black-Scholes option pricing model. As part of the Reorganization, the vested and unvested PIUs of the Parent, were converted on a pro rata basis into equivalent restricted stock units and restricted stock awards of the Company’s underlying common stock. The fair value of the awards is expensed using a graded vesting method over the requisite service period in which employees earn the awards. The Company accounts for forfeitures of stock-based awards as they occur rather than applying an estimated forfeiture rate to stock-based compensation expense. The Black-Scholes pricing model requires critical assumptions including risk-free rate, volatility, expected term and expected dividend yield. The expected term is computed using the simplified method. The Company uses the simplified method to calculate expected term of the PIUs as the Company does not have sufficient historical exercise data to provide a reasonable basis upon which to estimate expected term. The risk-free interest rate is based on the yield available on U.S. Treasury zero-coupon issues similar in duration to the expected term of the stock-based award. The Company considers the historical volatility of the Company’s stock price, as well as implied volatility. The Company utilized a dividend yield of zero, as it had no history or plan of declaring dividends on its common stock. The assumptions underlying these valuations represented the Company’s best estimate, which involved inherent uncertainties and the application of judgment. As a result, if the Company had used significantly different assumptions or estimates, the fair value of the Company’s stock-based compensation expense could have been materially different. Contemporaneously with the pricing of the Company’s IPO, on April 22, 2021, the Company effected its Omnibus Incentive Plan in which it granted to certain employees of the Company restricted stock awards, restricted stock units and option awards inclusive of the as converted Class B units as a result of the Reorganization (see Note 14).	Stock-Based Compensation Prior to the Reorganization, certain of the Company’s employees, directors and officers have been granted profits interest units (“PIUs”) in the form of Class B units in the Company’s parent entity, Latham Investment Holdings, LP (“Parent”). As the employees and officers provide services to the Company, the stock-based compensation is deemed to be for the benefit of the Company (see Note 16). The Company records an allocation of stock-based compensation expense based on the fair value of the award at grant date from its Parent and recognizes a corresponding capital contribution in additional paid-in capital. The Company accounts for the PIUs as equity classified awards. PIUs are measured at fair value on the grant date. The Company estimates the grant-date fair value of PIUs using the Contingent Claims Analysis Model, which uses the risk-free rate, expected term, volatility and dividend yield as inputs. A portion of the PIUs vest in five equal annual installments, based on continued service (“Time Vesting PIUs”). The Company recognizes the grant date fair value of these Time Vesting PIUs as an expense over the employee’s requisite service period. However, the Parent has a repurchase right for $0 per share until the third anniversary of the Acquisition in the event of voluntary termination or termination without cause (the “$0 Repurchase Right”). The Company will reverse stock-based compensation expense in the event that the Parent exercises the $0 Repurchase Right since it functions as a vesting condition. In the event of a change-in-control event, the Company will immediately recognize the unrecognized stock-based compensation expense related to the unvested Time Vesting PIUs. The remaining units (the “Performance PIUs”) will vest upon the consummation of a change-in-control, as defined in the Parent’s partnership agreement, a performance condition and the achievement of either a specified internal rate of return or a specific return on the Sponsor’s investment, both of which are market conditions. As the Performance PIUs contain both performance and market conditions, compensation expense for those awards will be equal to the grant date fair value of all awards for which the performance condition is met and the requisite service period is satisfied regardless of whether the market conditions are ultimately satisfied. No stock-based compensation expense has been recognized to-date for the remaining units as the Company has not deemed the performance condition to be probable. The Company accounts for forfeitures of stock-based awards as they occur rather than applying an estimated forfeiture rate to stock-based compensation expense.
Equity Method Investments	Equity Method Investments Investments and ownership interests in common stock or in-substance common stock are accounted for under the equity method accounting if the Company has the ability to exercise significant influence over the entity but does not have a controlling financial interest. Under the equity method, investments are initially recognized at cost and adjusted to reflect the Company’s interest in net earnings, dividends received and other-than-temporary impairments. The Company records its interest in the net earnings of its equity method investee, along with adjustments for amortization of basis differences, investee capital transactions and other comprehensive income (loss), within earnings from equity method investment in the condensed consolidated statements of operations. Basis differences represent differences between the cost of the investment and the underlying equity in net assets of the investment and are generally amortized over the lives of the related assets that gave rise to the underlying basis differences. Profits or losses related to intra-entity sales with its equity method investee are eliminated until realized by the investor or investee. The Company records its proportionate share of earnings or losses of Premier Holdco, LLC (“Premier Pools & Spas”) within earnings from equity method investment in the condensed consolidated statements of operations on a three-month lag. The Company recorded its interest in the net earnings of Premier Pools & Spas of $1.8 million for the three fiscal quarters ended October 2, 2021, which included a $0.2 million adjustment for the amortization of basis differences, within earnings from equity method investment in the condensed consolidated statements of operations during the three fiscal quarters ended October 2, 2021. As the Company initially invested in Premier Pools & Spas on October 30, 2020, there was no earnings from equity method investment recorded during the three fiscal quarters ended September 26, 2020. The Company received distributions of $2.2 million during the three fiscal quarters ended October 2, 2021. For presentation in the condensed consolidated statements of cash flows, the Company utilizes the cumulative earnings approach for purposes of determining whether distributions should be classified as either a return on investment, which are be included in operating activities, or a return of investment, which would be included in investing activities. Under the cumulative earnings approach, the Company compares the distributions received to its cumulative equity-method earnings since inception. Any distributions received up to the amount of cumulative equity earnings are be considered a return on investment and classified in operating activities. Any excess distributions would be considered a return of investment and classified in investing activities. Equity method goodwill is not amortized or tested for impairment; instead the Company evaluates equity method investments for impairment when events or changes in circumstances indicate that the decline in value below the carrying amount of its equity method investment is determined to be other than temporary. In such a case, the decline in value below the carrying amount of its equity method investment is recognized in the condensed consolidated statements of operations in the period the impairment occurs.	Equity Method Investments Investments and ownership interests in common stock or in-substance common stock are accounted for under the equity method accounting if the Company has the ability to exercise significant influence over the entity, but does not have a controlling financial interest. Under the equity method, investments are initially recognized at cost and adjusted to reflect the Company’s interest in net earnings, dividends received and other-than-temporary impairments. The Company records its interest in the net earnings of its equity method investee, along with adjustments for amortization of basis differences, investee capital transactions and other comprehensive income (loss), within earnings (losses) from equity method investment in the consolidated statements of operations. Basis differences represent differences between the cost of the investment and the underlying equity in net assets of the investment and are generally amortized over the lives of the related assets that gave rise to the underlying basis differences. Profits or losses related to intra-entity sales with its equity method investee are eliminated until realized by the investor or investee. The Company records its proportionate share of earnings or losses of Premier Holdco, LLC (“Premier Pools & Spas”) within earnings (losses) from equity method investment in the consolidated statements of operations on a three-month lag. Accordingly, the consolidated statement of operations for the year ended December 31, 2020 does not reflect any proportionate share of earnings or losses of Premier Pools & Spas. Equity method goodwill is not amortized or tested for impairment; instead the Company evaluates equity method investments for impairment when events or changes in circumstances indicate that the decline in value below the carrying amount of its equity method investment is determined to be other than temporary. In such a case, the decline in value below the carrying amount of its equity method investment is recognized in the consolidated statements of operations in the period the impairment occurs.
Recently Adopted Accounting Standards	Recently Issued Accounting Pronouncements The Company qualifies as “emerging growth company” as defined in the Jumpstart Our Business Startups Act of 2012 and has elected to “opt in” to the extended transition related to complying with new or revised accounting standards, which means that when a standard is issued or revised and it has different application dates for public and nonpublic companies, the Company will adopt the new or revised standard at the time nonpublic companies adopt the new or revised standard and will do so until such time that the Company either (i) irrevocably elects to “opt out” of such extended transition period or (ii) no longer qualifies as an emerging growth company. The Company may choose to early adopt any new or revised accounting standards whenever such early adoption is permitted for private companies. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) (“ASU 2016-02”), which sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract (i.e., lessees and lessors). The new standard requires lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase by the lessee. This classification will determine whether lease expense is recognized based on an effective interest method or on a straight-line basis over the term of the lease. In addition, a lessee is required to record (i) a right-of-use asset and a lease liability on its balance sheet for all leases with accounting lease terms of more than 12 months regardless of whether it is an operating or financing lease and (ii) lease expense in its consolidated statement of operations for operating leases and amortization and interest expense in its consolidated statement of operations for financing leases. Leases with a term of 12 months or less may be accounted for similar to prior guidance for operating leases today. In July 2018, the FASB issued ASU No. 2018-11, Leases (Topic 842), which added an optional transition method that allows companies to adopt the standard as of the beginning of the year of adoption as opposed to the earliest comparative period presented. In November 2019, the FASB issued guidance delaying the effective date for all entities, except for public business entities. For nonpublic entities, this guidance is effective for annual periods beginning after December 15, 2020. In June 2020, the FASB issued additional guidance delaying the effective date for all entities, except for public business entities. For public entities, ASU 2016-02 was effective for annual periods beginning after December 15, 2018, including interim periods within those fiscal years. For nonpublic entities, this guidance is effective for annual periods beginning after December 15, 2021. Early adoption is permitted. The Company is currently evaluating the impact that the adoption of ASU 2016-02 will have on its consolidated financial statements. In June 2016, the FASB issued ASU 2016-13, Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”), which requires the measurement and recognition of expected credit losses for financial assets held at amortized cost. ASU 2016-13 replaces the existing incurred loss impairment model with an expected loss model. It also eliminates the concept of other-than-temporary impairment and requires credit losses related to available-for-sale debt securities to be recorded through an allowance for credit losses rather than as a reduction in the amortized cost basis of the securities. These changes will result in earlier recognition of credit losses. In November 2018, the FASB issued ASU 2018-19, Codification Improvements to Topic 326, Financial Instruments — Credit Losses, which narrowed the scope and changed the effective date for nonpublic entities for ASU 2016-13. The FASB subsequently issued supplemental guidance within ASU 2019-05, Financial Instruments — Credit Losses (Topic 326): Targeted Transition Relief (“ASU 2019-05”). ASU 2019-05 provides an option to irrevocably elect the fair value option for certain financial assets previously measured at amortized cost basis. For public entities that are SEC filers, excluding entities eligible to be smaller reporting companies, ASU 2016-13 is effective for annual periods beginning after December 15, 2019, including interim periods within those fiscal years. For all other entities, ASU 2016-13 is effective for annual periods beginning after December 15, 2022, including interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the impact that the adoption of ASU 2016-13 will have on its consolidated financial statements. In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities (“ASU 2017-12”), which is intended to improve the financial reporting of hedging relationships to better portray the economic results of an entity’s risk management activities in its consolidated financial statements. In addition to that main objective, the amendments in the update make certain targeted improvements to simplify the application of the hedge accounting guidance in current GAAP. Additional updates to further clarify the guidance in ASU 2017-12 were issued by the FASB in October 2018 within ASU 2018-16. For public entities, the amendment is effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. For nonpublic entities, ASU 2017-12 is effective for fiscal years beginning after December 15, 2020 and interim periods beginning after December 15, 2021. Early application is permitted in any interim period after the issuance of the update. The Company is currently evaluating the impact that the adoption of ASU 2017-12 will have on its consolidated financial statements. In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (“ASU 2019-12”), which is intended to simplify various aspects related to accounting for income taxes. ASU 2019-12 removes certain exceptions to the general principles in ASC 740 and also clarifies and amends existing guidance to improve consistent application. For public entities, ASU 2019-12 is effective for annual periods beginning after December 15, 2020, and interim periods within those reporting periods. For nonpublic companies, ASU 2019-12 is effective for annual periods beginning after December 15, 2021, and interim periods within those reporting periods. Early adoption is permitted. The Company is currently evaluating the impact that the adoption of ASU 2019-12 will have on its consolidated financial statements. In January 2020, the FASB issued ASU 2020-01, Investments — Equity Securities (Topic 321), Investments — Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815) (“ASU 2020-01”), which is intended to clarify the interaction of the accounting for equity securities under Topic 321 and investments accounted for under the equity method of accounting in Topic 323 and the accounting for certain forward contracts and purchased options accounted for under Topic 815. For public entities, ASU 2020-01 is effective for annual periods beginning after December 15, 2020, and interim periods within those reporting periods. For nonpublic companies, ASU 2020-01 is effective for annual periods beginning after December 15, 2021, and interim periods within those reporting periods. The Company is currently evaluating the impact that the adoption of ASU 2020-01 will have on its consolidated financial statements. In March 2020, the FASB issued ASU 2020-04, Facilitation of the Effects of Reference Rate Reform on Financial Reporting which provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by the discontinuation of the London Interbank Offered Rate (“LIBOR”) or by another reference rate expected to be discontinued. This guidance is effective for all entities upon issuance on March 12, 2020 and may be applied through December 31, 2022. The expedients and exceptions in this guidance are optional, and the Company is evaluating the potential future financial statement impact of any such expedient or exception that it may elect to apply as the Company evaluates the effects of adopting this guidance on its consolidated financial statements. In January 2021, the FASB issued ASU 2021-01, Reference Rate Reform (Topic 848): Scope, which clarifies that certain optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting apply to derivatives that are affected by the discounting transition. Specifically, this guidance applies to derivative instruments that use an interest rate for margining, discounting, or contract price alignment that is modified as a result of reference rate reform. The ASU became effective as of March 12, 2020 and can be adopted anytime during the period of January 1, 2020 through December 31, 2022. The Company is currently evaluating the impact that the adoption of ASU 2021-01 will have on its consolidated financial statements.	Recently Adopted Accounting Standards In June 2018, the FASB issued ASU 2018-07, Compensation-Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting (“ASU 2018-07”). The standard largely aligns the accounting for share-based payment awards issued to employees and non-employees by expanding the scope of ASC 718 to apply to non-employee share-based transactions, as long as the transaction is not effectively a form of financing. For public entities, ASU 2018-07 was required to be adopted for annual periods beginning after December 15, 2018, including interim periods within those fiscal years. For nonpublic entities, ASU 2018-07 is effective for annual periods beginning after December 15, 2019 and interim periods within those fiscal years. Early adoption is permitted for all entities but no earlier than the Company’s adoption of ASU 2018-07. The Company adopted ASU 2018-07 as of the required effective date of January 1, 2020. The adoption of ASU 2018-07 adoption of this standard did not have a material impact on the Company’s consolidated financial statements. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework — Changes to the Disclosure Requirements for Fair Value Measurement (“ASU 2018-13”), which modifies the existing disclosure requirements for fair value measurements in ASC 820. The new disclosure requirements include disclosure related to changes in unrealized gains or losses included in other comprehensive income (loss) for recurring Level 3 fair value measurements held at the end of each reporting period and the explicit requirement to disclose the range and weighted-average of significant unobservable inputs used for Level 3 fair value measurements. The other provisions of ASU 2018-13 include eliminated and modified disclosure requirements. For all entities, this guidance is required to be adopted for annual periods beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted. The Company adopted ASU 2018-13 as of the required effective date of January 1, 2020. The adoption of ASU 2018-13 did not have a material impact on the Company’s consolidated financial statements.

ACQUISITIONS (Tables)

9 Months Ended

12 Months Ended

Oct. 02, 2021

Dec. 31, 2020

ACQUISITIONS

Summary of purchase price allocation


(in thousands)	October 22, 2020
Total consideration	$	79,743
Allocation of purchase price:
Cash		5,007
Trade receivables		10,639
Inventories		11,854
Prepaid expenses and other current assets		3,949
Property and equipment		1,402
Intangible assets		46,700
Total assets acquired		79,551
Accounts payable		3,536
Accrued expenses and other current liabilities		8,853
Other long-term liabilities		524
Total liabilities assumed		12,913
Total fair value of net assets acquired, excluding goodwill:		66,638
Goodwill	$	13,105

Schedule of purchase price to specific intangible asset categories


	Fair Value		Amortization Period
Definite-lived intangible assets:	(in thousands)		(in years)
Trade names	$	9,500	9
Dealer relationships		37,200	8
	$	46,700

Schedule of pro forma financial information


	Three Fiscal Quarters
	Ended
(in thousands)	September 26,2020
Net sales	$	345,200
Net loss	$	21,952


	Year Ended
	December 31,
(in thousands)	2019		2020
Net sales	$	382,029	$	462,802
Net income	$	6,066	$	26,344

FAIR VALUE MEASUREMENTS (Tables)

9 Months Ended

12 Months Ended

Oct. 02, 2021

Dec. 31, 2020

Contingent consideration

Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]

Schedule of significant unobservable inputs for fair value measurements

The Monte Carlo simulation utilized the following unobservable inputs to determine the fair value of the Contingent Consideration as of December 31, 2019:


	Year Ended
	December 31, 2019
EBITDA risk adjustment	17.30	%
Annual EBITDA volatility	55.00	%
Risk-free rate of return	2.10	%

Term loan

Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]

Schedule of financial liabilities at fair value on a recurring basis


	October 2, 2021				December 31, 2020
	Carrying		Estimated		Carrying		Estimated
	Value		Fair Value		Value		Fair Value
Term loan	$	234,201	$	235,372	$	221,496	$	221,081

The following table sets forth the carrying amount and fair value of the term loan (in thousands):


	December 31,
	2019				2020
	Carrying		Estimated		Carrying		Estimated
	Value		Fair Value		Value		Fair Value
Term loan	$	223,223	$	220,712	$	221,496	$	221,081

GOODWILL AND INTANGIBLE ASSETS, NET (Tables)

9 Months Ended

12 Months Ended

Oct. 02, 2021

Dec. 31, 2020

GOODWILL AND INTANGIBLE ASSETS, NET

Schedule of Intangible assets

Intangible assets, net as of October 2, 2021 consisted of the following (in thousands):


	October 2, 2021
	Gross		Foreign
	Carrying		Currency		Accumulated
	Amount		Translation		Amortization		Net Amount
Trade names and trademarks	$	135,100	$	476	$	14,839	$	120,737
Patented technology		16,126		70		4,772		11,424
Pool designs		5,728		286		956		5,058
Franchise relationships		1,187		59		694		552
Dealer relationships		160,376		23		27,434		132,965
Non-competition agreements		2,476		—		1,381		1,095
	$	320,993	$	914	$	50,076	$	271,831

Intangible assets, net as of December 31, 2020 consisted of the following (in thousands):


	December 31,2020
	Gross		Foreign
	Carrying		Currency		Accumulated
	Amount		Translation		Amortization		Net Amount
Trade names and trademarks	$	135,100	$	1,047	$	10,258	$	125,889
Patented technology		16,126		155		3,452		12,829
Pool designs		5,728		629		648		5,709
Franchise relationships		1,187		130		470		847
Dealer relationships		160,376		52		17,697		142,731
Non-competition agreements		2,476		—		1,008		1,468
	$	320,993	$	2,013	$	33,533	$	289,473

Intangible assets, net as of December 31, 2019 consisted of the following (in thousands):


	December 31, 2019
	Gross		Foreign
	Carrying		Currency		Accumulated		Net
	Amount		Translation		Amortization		Amount
Trade names and trademarks	$	125,600	$	99	$	5,032	$	120,667
Patented technology		16,126		14		1,698		14,442
Pool designs		5,728		59		239		5,548
Franchise relationships		1,187		12		173		1,026
Dealer relationships		123,176		5		8,530		114,651
Non-competition agreements		2,476		—		513		1,963
	$	274,293	$	189	$	16,185	$	258,297

The Company recognized $15.6 million of amortization expense related to intangible assets during the year ended December 31, 2019.

Intangible assets, net as of December 31, 2020 consisted of the following (in thousands):


	December 31, 2020
	Gross		Foreign
	Carrying		Currency		Accumulated		Net
	Amount		Translation		Amortization		Amount
Trade names and trademarks	$	135,100	$	1,047	$	10,258	$	125,889
Patented technology		16,126		155		3,452		12,829
Pool designs		5,728		629		648		5,709
Franchise relationships		1,187		130		470		847
Dealer relationships		160,376		52		17,697		142,731
Non-competition agreements		2,476		—		1,008		1,468
	$	320,993	$	2,013	$	33,533	$	289,473

Schedule of estimated amortization expense related to definite-lived intangible assets

The Company estimates that amortization expense related to definite-lived intangible assets will be as follows in each of the next five years and thereafter (in thousands):


	Estimated Future
Year Ended	Amortization Expense
Remainder of fiscal 2021	$	5,415
2022		21,959
2023		21,768
2024		20,948
2025		20,791
Thereafter		180,950
	$	271,831

The Company estimates that amortization expense related to definite-lived intangible assets will be as follows in each of the next five years and thereafter (in thousands):


	Estimated Future
	Amortization
Year Ended	Expense
2021	$	21,959
2022		21,959
2023		21,768
2024		20,948
2025		20,791
Thereafter		182,048
	$	289,473

INVENTORIES, NET (Tables)

9 Months Ended

12 Months Ended

Oct. 02, 2021

Dec. 31, 2020

INVENTORIES, NET

Schedule of inventories, net

Inventories, net consisted of the following (in thousands):


	October 2, 2021		December 31,2020
Raw materials	$	57,165	$	37,010
Finished goods		23,540		27,808
	$	80,705	$	64,818

Inventories, net consisted of the following (in thousands):


	December 31,
	2019		2020
Raw materials	$	19,035	$	37,010
Finished goods		16,576		27,808
	$	35,611	$	64,818

LONG-TERM DEBT (Tables)

9 Months Ended

12 Months Ended

Oct. 02, 2021

Dec. 31, 2020

LONG-TERM DEBT

Components of the Company's outstanding debt obligations

The components of the Company’s outstanding debt obligations consisted of the following (in thousands):


	October 2,2021		December 31, 2020
Term loan	$	238,314	$	228,147
Less: Unamortized discount and debt issuance costs		(4,113)		(6,651)
Total debt		234,201		221,496
Less: Current portion of long-term debt		(14,234)		(13,042)
Total long-term debt	$	219,967	$	208,454

The components of the Company’s outstanding debt obligations consisted of the following (in thousands):


	December 31,
	2019		2020
Term loan	$	232,191	$	228,147
Less: Unamortized discount and debt issuance costs		(8,968)		(6,651)
Total debt		223,223		221,496
Less: Current portion of long-term debt		(6,891)		(13,042)
Total long-term debt	$	216,332	$	208,454

Components of interest expense

Principal payments due on the outstanding debt in the next five fiscal years, excluding any potential payments based on excess cash flow levels, are as follows (in thousands):


Year Ended	Term Loan Facility
Remainder of fiscal 2021	$	3,558
2022		14,234
2023		14,234
2024		14,234
2025		192,054
	$	238,314

The Company recorded interest expense associated with the Revolving Credit Facility, Second Amendment and interest rate swap, as follows (in thousands):


	Year Ended
	December 31,
	2019		2020
Cash interest expense	$	19,488	$	15,625
Amortization of debt issuance costs		2,968		2,179
Amortization of original issue discount		183		138
Interest rate swap		—		334
Gain on extinguishment of debt		—		(25)
Total interest expense	$	22,639	$	18,251

Principal payments due on the outstanding debt

Principal payments due on the outstanding debt in the next five fiscal years, excluding any potential payments based on excess cash flow levels, are as follows (in thousands):


	Term Loan
Year Ended	Facility
2021	$	13,042
2022		13,042
2023		13,042
2024		13,042
2025		175,979
	$	228,147

- Definition

+ References

+ Details

PRODUCT WARRANTIES (Tables)

9 Months Ended

12 Months Ended

Oct. 02, 2021

Dec. 31, 2020

PRODUCT WARRANTIES

Summary of Warranty reserve activity

The warranty reserve activity consisted of the following (in thousands):


	Three Fiscal Quarters Ended
	October 2,2021		September 26, 2020
Balance at the beginning of the year	$	2,882	$	2,846
Accruals for warranties issued		4,369		2,270
Less: Settlements made (in cash or in kind)		(3,825)		(2,501)
Balance at the end of the year	$	3,426	$	2,615

The warranty reserve activity consisted of the following (in thousands):


	Year Ended
	December 31,
	2019		2020
Balance at the beginning of the year	$	1,977	$	2,846
Accruals for warranties issued		3,729		3,966
Warranty liabilities assumed in GLI Acquisition		—		118
Less: Settlements made (in cash or in kind)		(2,860)		(4,048)
Balance at the end of the year		2,846		2,882
Less: Current portion of accrued warranty costs		(2,663)		(2,705)
Accrued warranty costs — less current portion	$	183	$	177

NET SALES (Tables)

9 Months Ended

12 Months Ended

Oct. 02, 2021

Dec. 31, 2020

NET SALES

Summary of disaggregation of net sales by product line

The following table sets forth the Company’s disaggregation of net sales by product line (in thousands):


	Three Fiscal Quarters Ended
	October 2, 2021		September 26, 2020
In-ground Swimming Pools	$	285,704	$	169,681
Covers		94,354		53,528
Liners		111,534		68,259
	$	491,592	$	291,468

The following table sets forth the Company’s disaggregation of net sales by product line (in thousands):


	Year Ended
	December 31,
	2019		2020
In-ground Swimming Pools	$	175,033	$	237,410
Covers		70,984		84,524
Liners		71,958		81,455
	$	317,975	$	403,389

PROFITS INTEREST UNITS (Tables)

9 Months Ended

Oct. 02, 2021

PROFITS INTEREST UNITS

Summary of the activity for all PIUs


		Weighted-
		Average Grant-
	Number of PIUs	Date Fair Value
Balance at January 1, 2020	21,734,170	$	0.60
Granted	7,843,107		0.35
Forfeited	(2,152,315)		0.43
Balance at December 31, 2020	27,424,962
Granted	—
Forfeited	(1,266,068)		0.34
Balance at April 21, 2021	26,158,894
Converted at IPO in connection with the Reorganization	(26,158,894)	$	0.43
Balance at October 2, 2021	—

STOCK-BASED COMPENSATION (Tables)

9 Months Ended

Oct. 02, 2021

STOCK-BASED COMPENSATION

Summary of significant assumptions used in the Black-Scholes option-pricing model on a weighted-average basis to determine the fair value of option awards granted

The following table sets forth the significant assumptions used in the Black-Scholes option-pricing model on a weighted-average basis to determine the fair value of option awards granted:


	Three Fiscal
	Quarters Ended
	October 2, 2021
Risk-free interest rate	0.63	%
Expected volatility	38.16	%
Expected term (in years)	6.25
Expected dividend yield	0.00	%

Summary of restricted stock awards activity

The following table represents the Company’s restricted stock awards activity during the three fiscal quarters ended October 2, 2021:


		Weighted-
		Average Grant-
	Shares	Date Fair Value
Outstanding at January 1, 2021	—	$	—
Granted	8,340,126		19.00
Vested	(84,687)		—
Forfeited	(559,682)		19.00
Outstanding at October 2, 2021	7,695,757	$	19.00

Summary of restricted stock units activity

The following table represents the Company’s restricted stock units activity during the three fiscal quarters ended October 2, 2021:


		Weighted-
		Average Grant-
	Shares	Date Fair Value
Outstanding at January 1, 2021	—	$	—
Granted	341,301		19.00
Vested	—		—
Forfeited	(16,767)		19.00
Outstanding at October 2, 2021	324,534	$	19.00

Summary of stock option activity

The following table represents the Company’s stock option activity during the three fiscal quarters ended October 2, 2021:


		Weighted-		Weighted-Average
		Average Exercise		Remaining	Aggregate
	Shares	Price per Share		Contract Term	Intrinsic Value
				(in years)	(in thousands)
Outstanding on January 1, 2021	—	$	—	—	$	—
Granted	886,862		19.00
Exercised	—
Forfeited	(81,092)
Outstanding at October 2, 2021	805,770	$	19.00	9.55	$	—
Vested and expected to vest at October 2, 2021	805,770	$	19.00	9.55	$	—
Options exercisable at October 2, 2021	—		—	—		—

NET INCOME (LOSS) PER SHARE (Tables)

9 Months Ended

12 Months Ended

Oct. 02, 2021

Dec. 31, 2020

NET INCOME (LOSS) PER SHARE

Schedule of basic and diluted earnings (loss) per share


	Three Fiscal Quarters Ended
	October 2, 2021		September 26, 2020
Numerator:
Net (loss) income attributable to common stockholders	$	(56,361)	$	18,703
Denominator:
Weighted-average common shares outstanding
Basic		110,121,240		96,665,708
Diluted		110,121,240		97,122,885
Net (loss) income per share attributable to common stockholders:
Basic	$	(0.51)	$	0.19
Diluted	$	(0.51)	$	0.19

Basic and diluted net income per share attributable to common stockholders was calculated as follows (in thousands, except share and per share data):


	Year Ended December 31,
	2019		2020
Numerator:
Net income attributable to common stockholders	$	7,457	$	15,983
Denominator:
Weighted-average common shares outstanding
Basic		95,032,265		101,606,966
Diluted		95,400,528		102,602,738
Net income per share attributable to common stockholders
Basic	$	0.08	$	0.16
Diluted	$	0.08	$	0.16

Schedule of antidilutive securities excluded from computation of dilutive net income per share


	Three Fiscal Quarters Ended
	October 2, 2021	September 26, 2020
Restricted stock awards	6,813,166	47,446
Restricted stock units	84,866	—
Stock options	4,235	—


	Year Ended December 31,
	2019	2020
Restricted stock awards	97,718	22,524

SEGMENT AND GEOGRAPHIC INFORMATION (Tables)

9 Months Ended

12 Months Ended

Oct. 02, 2021

Dec. 31, 2020

SEGMENT AND GEOGRAPHIC INFORMATION

Schedule of Net sales by geography

Our long-lived assets by geographic area, which consist of property and equipment, net assets were as follows (in thousands):


	October 2, 2021		December 31, 2020
Long-lived assets
United States	$	48,158	$	37,680
Canada		4,358		3,050
Australia		4,394		4,979
New Zealand		1,857		1,648
Total	$	58,767	$	47,357

Net sales by geography is based on the delivery address of the customer as specified in purchase order. Net sales by geographic area was as follows (in thousands):


	December 31,
	2019		2020
Net sales
United States	$	257,786	$	325,716
Canada		43,157		50,499
Australia		12,126		20,181
New Zealand		2,432		3,984
Other		2,474		3,009
Total	$	317,975	$	403,389

Schedule of Long-lived assets by geographic area

Net sales by geography is based on the delivery address of the customer as specified in purchase order. Net sales by geographic area was as follows (in thousands):


	Three Fiscal Quarters Ended
	October 2, 2021		September 26, 2020
Net sales
United States	$	385,259	$	234,439
Canada		76,619		38,197
Australia		18,581		13,187
New Zealand		5,277		2,357
Other		5,856		3,288
Total	$	491,592	$	291,468

Our long-lived assets by geographic area, which consist of property and equipment, net assets were as follows (in thousands):


	December 31,
	2019		2020
Long-lived assets
United States	$	30,433	$	37,680
Canada		2,279		3,050
Australia		4,094		4,979
New Zealand		1,039		1,648
Total	$	37,845	$	47,357

NATURE OF THE BUSINESS (Details) - USD ($)					9 Months Ended	12 Months Ended
NATURE OF THE BUSINESS (Details) - USD ($)	Apr. 27, 2021	Apr. 22, 2021	Oct. 20, 2020	Oct. 14, 2020	Sep. 26, 2020	Dec. 31, 2020	Dec. 31, 2019
Subsequent Event [Line Items]
Issuance of common stock (in shares)			21,666,653	21,666,653	758,694	758,694	3,548,568
Class A units
Subsequent Event [Line Items]
Number of shares issued upon conversion of units		97,187,596
Class B units
Subsequent Event [Line Items]
Number of shares issued upon conversion of units		4,145,987
IPO
Subsequent Event [Line Items]
Issuance of common stock (in shares)	23,000,000
Net proceeds from the IPO	$ 399.3
Underwriters Option
Subsequent Event [Line Items]
Issuance of common stock (in shares)	3,000,000

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($)	9 Months Ended		12 Months Ended
	Oct. 02, 2021	Sep. 26, 2020	Dec. 31, 2020
Schedule of Equity Method Investments [Line Items]
Interest in net earnings	$ 1,808,000
Distribution received from equity method investment	1,808,000
Premier Pools & Spas
Schedule of Equity Method Investments [Line Items]
Interest in net earnings	1,800,000	$ 0
Adjustment for the amortization of basis differences	200,000
Distribution received from equity method investment	$ 2,200,000		$ 25,400,000

ACQUISITIONS (Details) - USD ($) $ in Thousands			12 Months Ended
ACQUISITIONS (Details) - USD ($) $ in Thousands	Oct. 22, 2021	Oct. 22, 2020	Dec. 31, 2020	Dec. 31, 2019	Oct. 02, 2021	Dec. 31, 2018
Business Acquisition [Line Items]
Total purchase price, net of cash acquired			$ 74,736	$ 20,214
Net working capital adjustment receivable			750
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract]
Goodwill			$ 115,750	$ 101,672	$ 115,158	$ 91,782
GL International, LLC
Business Acquisition [Line Items]
Total purchase price	$ 79,700	$ 79,700
Total purchase price in cash	79,700
Total purchase price, net of cash acquired	74,700	74,700
Cash acquired	5,000	5,000
Net working capital adjustment receivable	800	800
Business acquisition, transaction costs	2,400	2,400
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract]
Total consideration	79,743	79,743
Cash	5,007	5,007
Trade receivables	10,639	10,639
Inventories	11,854	11,854
Prepaid expenses and other current assets	3,949	3,949
Property and equipment	1,402	1,402
Intangible assets	46,700	46,700
Total assets acquired	79,551	79,551
Accounts payable	3,536	3,536
Accrued expenses and other current liabilities	8,853	8,853
Other long-term liabilities	524	524
Total liabilities assumed	12,913	12,913
Total fair value of net assets acquired, excluding goodwill:	66,638	66,638
Goodwill	$ 13,105	$ 13,105			$ 13,100

ACQUISITIONS - Financial Information (Details) - USD ($) $ in Thousands		9 Months Ended	12 Months Ended
	Oct. 22, 2020	Sep. 26, 2020	Dec. 31, 2020	Dec. 31, 2019
Business Acquisition, Pro Forma Information [Abstract]
Net sales			$ 462,802	$ 382,029
Net loss			$ 26,344	$ 6,066
GL International, LLC
Acquired Finite-Lived Intangible Assets [Line Items]
Fair Value	$ 46,700
Business Acquisition, Pro Forma Information [Abstract]
Net sales	7,689	$ 345,200
Net loss	(1,123)	$ 21,952
Trade names \| GL International, LLC
Acquired Finite-Lived Intangible Assets [Line Items]
Fair Value	$ 9,500
Amortization Period	9 years
Dealer relationships \| GL International, LLC
Acquired Finite-Lived Intangible Assets [Line Items]
Fair Value	$ 37,200
Amortization Period	8 years

EQUITY METHOD INVESTMENT (Details) - USD ($)		2 Months Ended	3 Months Ended	9 Months Ended		12 Months Ended
EQUITY METHOD INVESTMENT (Details) - USD ($)	Oct. 30, 2020	Dec. 31, 2020	Oct. 02, 2021	Oct. 02, 2021	Sep. 26, 2020	Dec. 31, 2020	Aug. 06, 2020
Schedule of Equity Method Investments [Line Items]
Consideration paid						$ 25,384,000
Proceeds from the sale of equity method investment				$ 6,796,000
Gain on sale of equity method investment				3,856,000
Equity method investment		$ 25,384,000	$ 21,997,000	21,997,000		25,384,000
Distributions received from equity method investment				1,808,000
Return of equity method investment				400,000
Interest in net earnings				$ 1,808,000
Premier Pools & Spas
Schedule of Equity Method Investments [Line Items]
Ownership percentage	28.00%		20.10%	20.10%
Consideration paid	$ 25,400,000
Proceeds from the sale of equity method investment			$ 6,800,000
Gain on sale of equity method investment			3,900,000
Term of the supply agreement	10 years	3 months		10 years
Period defined in agreement for calculating percentage of rebates	3 years			3 years
Equity method investment			$ 22,000,000.0	$ 22,000,000.0
Distributions received from equity method investment				2,200,000		$ 25,400,000
Interest in net earnings				1,800,000	$ 0
Basis difference adjustment				$ 200,000
Premier Pools & Spas \| Premier Group Holdings Inc.
Schedule of Equity Method Investments [Line Items]
Ownership percentage							29.80%

FAIR VALUE MEASUREMENTS - Assets and liabilities measured at fair value on a recurring basis (Details) $ in Thousands		12 Months Ended
	May 31, 2019 USD ($)	Dec. 31, 2020 USD ($)	Dec. 31, 2019 USD ($)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair value of plan assets			$ 1,300
Change in fair value of Contingent Consideration		$ (204)	$ 1,441
Contingent consideration
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair value of contingent consideration as of the acquisition date	$ 7,400
Contingent consideration \| EBITDA risk adjustment
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement inputs			17.30
Contingent consideration \| Annual EBITDA volatility
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement inputs			55.00
Contingent consideration \| Risk-free rate of return
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement inputs			2.10
Narellan Group Pty Limited
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash consideration	20,238
Total purchase price	35,233
Fair value of equity consideration	7,567
Fair value of contingent consideration as of the acquisition date	7,400	$ 7,400
Narellan Group Pty Limited \| Contingent consideration
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash consideration	20,200
Fair value of equity consideration	7,600
Fair value of contingent consideration as of the acquisition date	$ 7,400

FAIR VALUE MEASUREMENTS - Fair value of financial instruments (Details) - USD ($)	Oct. 02, 2021	Dec. 31, 2020	Dec. 31, 2019
Level 2
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative liabilities	$ 600,000	$ 300,000
Term loan \| Carrying Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Amount	234,201,000	221,496,000
Term loan \| Carrying Value \| Level 2
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Amount		221,496,000	$ 223,223,000
Term loan \| Estimated Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Amount	$ 235,372,000	221,081,000
Term loan \| Estimated Fair Value \| Level 2
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative liabilities		221,081,000	220,712,000
Interest Rate Swap
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative liabilities		$ 300,000	$ 0

GOODWILL AND INTANGIBLE ASSETS, NET - Goodwill (Details) - USD ($) $ in Thousands	Oct. 02, 2021	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
GOODWILL AND INTANGIBLE ASSETS, NET
Carrying amount of goodwill	$ 115,158	$ 115,750	$ 101,672	$ 91,782

GOODWILL AND INTANGIBLE ASSETS, NET - Intangible Assets (Details) - USD ($) $ in Thousands	9 Months Ended		12 Months Ended
	Oct. 02, 2021	Sep. 26, 2020	Dec. 31, 2020	Dec. 31, 2019
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 320,993		$ 320,993	$ 274,293
Foreign Currency Translation	914		2,013	189
Accumulated Amortization	50,076		33,533	16,185
Net Amount	271,831		289,473	258,297
Amortization of Intangible Assets	16,560	$ 12,173	17,347	15,643
Trade names and trademarks
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	135,100		135,100	125,600
Foreign Currency Translation	476		1,047	99
Accumulated Amortization	14,839		10,258	5,032
Net Amount	120,737		125,889	120,667
Patented technology
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	16,126		16,126	16,126
Foreign Currency Translation	70		155	14
Accumulated Amortization	4,772		3,452	1,698
Net Amount	11,424		12,829	14,442
Pool designs
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	5,728		5,728	5,728
Foreign Currency Translation	286		629	59
Accumulated Amortization	956		648	239
Net Amount	5,058		5,709	5,548
Franchise relationships
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	1,187		1,187	1,187
Foreign Currency Translation	59		130	12
Accumulated Amortization	694		470	173
Net Amount	552		847	1,026
Dealer relationships
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	160,376		160,376	123,176
Foreign Currency Translation	23		52	5
Accumulated Amortization	27,434		17,697	8,530
Net Amount	132,965		142,731	114,651
Non-competition agreements
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	2,476		2,476	2,476
Accumulated Amortization	1,381		1,008	513
Net Amount	$ 1,095		$ 1,468	$ 1,963

GOODWILL AND INTANGIBLE ASSETS, NET - Amortization Expense (Details) - USD ($) $ in Thousands	Oct. 02, 2021	Dec. 31, 2020	Dec. 31, 2019
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
Remainder of fiscal 2021	$ 5,415	$ 21,959
2022	21,959	21,959
2023	21,768	21,768
2024	20,948	20,948
2025	20,791	20,791
Thereafter	180,950	182,048
Total	$ 271,831	$ 289,473	$ 258,297

INVENTORIES, NET (Details) - USD ($) $ in Thousands	Oct. 02, 2021	Dec. 31, 2020	Dec. 31, 2019
INVENTORIES, NET
Raw materials	$ 57,165	$ 37,010	$ 19,035
Finished goods	23,540	27,808	16,576
Inventory, Net, Total	$ 80,705	$ 64,818	$ 35,611

LONG-TERM DEBT (Details) - USD ($) $ in Thousands	Oct. 02, 2021	Dec. 31, 2020	Dec. 31, 2019
Debt Instrument [Line Items]
Term loan	$ 238,314	$ 228,147
Less: Unamortized discount and debt issuance costs	(4,113)	(6,651)	$ (8,968)
Total debt	234,201	221,496	223,223
Less: Current portion of long-term debt	(14,234)	(13,042)	(6,891)
Total long-term debt	219,967	208,454	216,332
Term loan
Debt Instrument [Line Items]
Term loan	238,314	228,147	232,191
Less: Unamortized discount and debt issuance costs	(4,100)	(6,700)	(9,000)
Less: Current portion of long-term debt		(13,000)
Revolving Credit Facility
Debt Instrument [Line Items]
Term loan	$ 0	$ 0	$ 0

LONG-TERM DEBT - Revolving Credit Facility (Details) - USD ($) $ in Thousands			9 Months Ended
	Apr. 27, 2021	Dec. 18, 2018	Oct. 02, 2021	Sep. 26, 2020	Dec. 31, 2020	Dec. 31, 2019
Debt Instrument [Line Items]
Aggregate net proceeds received from IPO			$ 399,264
Repayment of Revolver credit facility			16,000	$ 5,000
Debt, principal amount outstanding			238,314		$ 228,147
Minimum
Debt Instrument [Line Items]
Commitment fee rate range, depending on leverage ratio		0.375%
Maximum
Debt Instrument [Line Items]
Commitment fee rate range, depending on leverage ratio		0.50%
Revolving Credit Facility
Debt Instrument [Line Items]
Borrowing capacity		$ 30,000
Aggregate net proceeds received from IPO	$ 16,000
Repayment of Revolver credit facility	$ 16,000
Debt, principal amount outstanding			$ 0		$ 0	$ 0
Eurocurrency \| Minimum
Debt Instrument [Line Items]
Interest rate range, depending on leverage ratio		4.50%
Eurocurrency \| Maximum
Debt Instrument [Line Items]
Interest rate range, depending on leverage ratio		4.75%
Base \| Minimum
Debt Instrument [Line Items]
Interest rate range, depending on leverage ratio		3.50%
Base \| Maximum
Debt Instrument [Line Items]
Interest rate range, depending on leverage ratio		3.75%

LONG-TERM DEBT - Term Loan Facility (Details) - USD ($) $ in Thousands								3 Months Ended	9 Months Ended		12 Months Ended
	Jun. 30, 2021	Apr. 27, 2021	Feb. 02, 2021	Jan. 25, 2021	Oct. 14, 2020	Aug. 06, 2020	Dec. 18, 2018	Dec. 31, 2020	Oct. 02, 2021	Sep. 26, 2020	Dec. 31, 2020	Dec. 31, 2019	May 29, 2019
Debt Instrument [Line Items]
Additional borrowings under amendment													$ 23,000
Repayment of debt									$ 164,833	$ 20,925	$ 24,044	$ 5,809
Gain on extinguishment of debt											25
Aggregate net proceeds received from IPO									399,264
Repayment of Revolver credit facility									16,000	$ 5,000
Proceeds used to pay dividend to Parent			$ 110,000
Discount and debt issuance costs								$ 6,651	$ 4,113		$ 6,651	$ 8,968
Effective interest rate									7.24%		8.03%	10.47%
Term loan
Debt Instrument [Line Items]
Original term loan							$ 215,000
Debt issuance costs incurred				$ 1,200	$ 100		$ 11,500
Additional borrowings under amendment				175,000	$ 20,000
Debt discount								400	$ 1,200		$ 400	$ 500	700
Repayment of debt						$ 5,000
Amount of debt extinguished						$ 25,000
Repayment amount to be paid quarterly	$ 3,600			5,800				1,600
Aggregate net proceeds received from IPO		$ 152,700
Repayment of Revolver credit facility		$ 152,700
Borrowings treated as principal				165,000
Borrowings treated as debt modification				10,000
Proceeds used to repay note to Parent			$ 64,900	$ 175,000
Principal payments calculated as percent of outstanding principal									0.629%		0.629%
Outstanding Borrowings									$ 234,200		$ 221,500	223,200
Discount and debt issuance costs								6,700	4,100		6,700	9,000
Unamortized debt issuance costs								6,300	2,900		6,300	8,400
Unamortized discount								$ 400	$ 1,200		$ 400	$ 500	$ 700
Term loan \| Federal Funds Rate
Debt Instrument [Line Items]
Interest added to the specified index rate									0.05%
Term loan \| LIBOR
Debt Instrument [Line Items]
Interest added to the specified index rate											1.00%
Eurocurrency \| Term loan
Debt Instrument [Line Items]
Interest added to the specified index rate									6.00%		6.00%
Base
Debt Instrument [Line Items]
Interest added to the specified index rate											5.00%
Base \| Term loan
Debt Instrument [Line Items]
Interest added to the specified index rate									5.00%

LONG-TERM DEBT - Interest rate swap (Details) - Interest Rate Swap $ in Millions	Dec. 31, 2020 USD ($)	May 18, 2020 USD ($)
Derivative [Line Items]
LIBOR borrowings fixed interest rate	0.442	0.442
LIBOR borrowings hedged	$ 200.0	$ 200.0

LONG-TERM DEBT - Principal payments due (Details) - USD ($) $ in Thousands	Oct. 02, 2021	Dec. 31, 2020	Dec. 31, 2019
Principal payments due
Total payments due	$ 238,314	$ 228,147
Term loan
Principal payments due
Remainder of fiscal 2021	3,558
2022	14,234	13,042
2023	14,234	13,042
2024	14,234	13,042
2025	192,054	13,042
Total payments due	$ 238,314	$ 228,147	$ 232,191

PRODUCT WARRANTIES (Details) - USD ($) $ in Thousands	9 Months Ended		12 Months Ended
PRODUCT WARRANTIES (Details) - USD ($) $ in Thousands	Oct. 02, 2021	Sep. 26, 2020	Dec. 31, 2020	Dec. 31, 2019
Movement in Standard Product Warranty Accrual [Roll Forward]
Balance at the beginning of the year	$ 2,882	$ 2,846	$ 2,846	$ 1,977
Accruals for warranties issued	4,369	2,270	3,966	3,729
Warranty liabilities assume in GLI Acquisition			118
Less: Settlements made (in cash or in kind)	(3,825)	(2,501)	(4,048)	(2,860)
Balance at the end of the year	$ 3,426	$ 2,615	2,882	2,846
Less: Current portion of accrued warranty costs			(2,705)	(2,663)
Accrued warranty costs - less current portion			$ 177	$ 183

NET SALES (Details) - USD ($) $ in Thousands	9 Months Ended		12 Months Ended
NET SALES (Details) - USD ($) $ in Thousands	Oct. 02, 2021	Sep. 26, 2020	Dec. 31, 2020	Dec. 31, 2019
Disaggregation of Revenue [Line Items]
Net sales	$ 491,592	$ 291,468	$ 403,389	$ 317,975
In-ground Swimming Pools
Disaggregation of Revenue [Line Items]
Net sales	285,704	169,681	237,410	175,033
Covers
Disaggregation of Revenue [Line Items]
Net sales	94,354	53,528	84,524	70,984
Liners
Disaggregation of Revenue [Line Items]
Net sales	$ 111,534	$ 68,259	$ 81,455	$ 71,958

- Definition

+ References

+ Details

INCOME TAXES (Details) - USD ($) $ in Thousands	3 Months Ended						9 Months Ended		12 Months Ended
INCOME TAXES (Details) - USD ($) $ in Thousands	Oct. 02, 2021	Jul. 03, 2021	Apr. 03, 2021	Sep. 26, 2020	Jun. 27, 2020	Mar. 28, 2020	Oct. 02, 2021	Sep. 26, 2020	Dec. 31, 2020	Dec. 31, 2019
Effective income tax rate							39.30%	30.60%	29.80%	(168.00%)
Stock-based compensation expense	$ 27,603	$ 75,511	$ 1,464	$ 978	$ 240	$ 224			$ 1,827	$ 808
Reorganization
Stock-based compensation expense							$ 98,900

SHAREHOLDERS' EQUITY (Details) $ / shares in Units, $ in Thousands						9 Months Ended		12 Months Ended
	Apr. 27, 2021 shares	Apr. 22, 2021 $ / shares shares	Apr. 13, 2021 $ / shares shares	Oct. 20, 2020 shares	Oct. 14, 2020 shares	Oct. 02, 2021 USD ($) $ / shares shares	Sep. 26, 2020 shares	Dec. 31, 2020 $ / shares shares	Dec. 31, 2019 $ / shares shares
Class of Stock [Line Items]
Common stock, shares authorized		900,000,000	500,000,000			900,000,000		500,000,000	500,000,000
Common stock, par value \| $ / shares		$ 0.0001	$ 0.0001			$ 0.0001		$ 0.0001	$ 0.0001
Stock split ratio			109,673,709
Preferred stock shares authorised		100,000,000				100,000,000		0
Preferred stock par value \| $ / shares		$ 0.0001				$ 0.0001		$ 0.0001
Number of restricted shares issued upon conversion of units								7,843,107	3,692,699
Issuance of common stock (in shares)				21,666,653	21,666,653		758,694	758,694	3,548,568
Aggregate net proceeds received from IPO \| $						$ 399,264
Common stock issued and outstanding						112,153,832		118,854,249
Total authorized shares under certificate of incorporation		1,000,000,000
Parent
Class of Stock [Line Items]
Ownership interest of parent before reorganization						100.00%
Class A units
Class of Stock [Line Items]
Number of units converted		194,207,115
Number of shares issued upon conversion of units		97,187,596
Class B units
Class of Stock [Line Items]
Number of units converted		26,158,894
Number of shares issued upon conversion of units		4,145,987
Number of restricted shares issued upon conversion of units		8,340,126
IPO
Class of Stock [Line Items]
Issuance of common stock (in shares)	23,000,000
Underwriters Option
Class of Stock [Line Items]
Issuance of common stock (in shares)	3,000,000

PROFITS INTEREST UNITS -Summary of the activity for all PIUs (Details) - $ / shares	3 Months Ended	6 Months Ended	12 Months Ended
	Apr. 03, 2021	Oct. 02, 2021	Dec. 31, 2020	Dec. 31, 2019
Weighted-Average Grant Date Fair Value
Balance at beginning	$ 0.43			$ 0.41
Weighted average grant date fair, Granted			$ 0.60	0.38
Weighted average grant date fair, Forfeited			0.35	$ 0.41
Balance at ending			$ 0.43
Performance-vesting Units
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward]
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding, Number, Beginning Balance	27,424,962	26,158,894	21,734,170
Granted			7,843,107
Forfeited	(1,266,068)		(2,152,315)
Converted at IPO in connection with the Reorganization		(26,158,894)
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding, Number, Ending Balance	26,158,894		27,424,962	21,734,170
Weighted-Average Grant Date Fair Value
Balance at beginning			$ 0.60
Weighted average grant date fair, Granted			0.35
Weighted average grant date fair, Forfeited	$ 0.34		$ 0.43
Weighted average grant date fair, Converted at IPO in connection with the Reorganization		$ 0.43
Balance at ending				$ 0.60

PROFITS INTEREST UNITS (Details) - USD ($) $ in Millions		3 Months Ended	9 Months Ended	12 Months Ended
PROFITS INTEREST UNITS (Details) - USD ($) $ in Millions	Jan. 29, 2021	Apr. 03, 2021	Oct. 02, 2021	Dec. 31, 2020	Dec. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Cumulative catch-up charge from modification			$ 0.5
Terminated Employee
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Cumulative catch-up charge from modification			$ 1.1
Performance-vesting Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Units forfeited		1,266,068		2,152,315
Vested and nonvested units held at time of termination		26,158,894		27,424,962	21,734,170
Performance-vesting Units \| Terminated Employee
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Units forfeited	1,055,057
Vested and nonvested units held at time of termination	527,528
Vested units at time of termination, pre-modification	211,011
Accelerated vesting, number of units	105,506
Vested units at time of termination, after modification	316,517

PROFITS INTEREST UNITS - Additional Information (Details) - shares		12 Months Ended
	Apr. 22, 2021	Dec. 31, 2020	Dec. 31, 2019
Class of Stock [Line Items]
Number of restricted shares issued upon conversion of units		7,843,107	3,692,699
Class B units
Class of Stock [Line Items]
Number of units converted	26,158,894
Number of shares issued upon conversion of units	4,145,987
Number of restricted shares issued upon conversion of units	8,340,126

STOCK-BASED COMPENSATION (Details) $ in Thousands	Apr. 12, 2021 USD ($) shares
STOCK-BASED COMPENSATION
Shares reserved for issuance \| shares	13,170,212
Maximum grant date fair value of cash and equity awards that may be awarded to a non-employee director \| $	$ 750

STOCK-BASED COMPENSATION - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions		9 Months Ended		12 Months Ended
	Apr. 22, 2021	Oct. 02, 2021	Sep. 26, 2020	Dec. 31, 2020	Dec. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted				7,843,107	3,692,699
Expiration term	10 years
Share based compensation expense		$ 104.6	$ 1.4
Stock-based compensation expense due to accelerated vesting of restricted stock		0.5
Stock-based compensation expense due to the modification		49.0
Total unrecognized stock-based compensation expense		$ 106.2
Total unrecognized stock-based compensation expense expected to be recognized over a weighted-average period		1 year 5 months 26 days
Cost of sales
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share based compensation expense		$ 6.8
Selling, general and administrative expense
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share based compensation expense		$ 97.8
Share-based Payment Arrangement, Tranche One
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Restricted shares vested	6,799,414
Share-based Payment Arrangement, Tranche Two
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Restricted shares vested	1,540,712
Share-based Payment Arrangement, Tranche Three
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Restricted shares vested	251,828
Vesting percentage	0.33%
Share-based Payment Arrangement, Tranche Four
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage	0.33%
Vest 1/3 on the two-year anniversary of the Closing of the IPO
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage	0.33%
Vest on the first anniversary of the Closing of the IPO
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Restricted shares vested	22,367
Vest on the nine-month anniversary of the Closing of the IPO
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Restricted shares vested	51,316
Vest evenly on each of the first three anniversaries of the Closing of the IPO
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Restricted shares vested	15,790
Vest 25% annually on each of the first four anniversaries of the Closing of the IPO
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options granted	886,862
Vesting percentage	25.00%
Restricted stock awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted	8,340,126	8,340,126
Number of Restricted shares vested		84,687
Restricted stock awards \| Share-based Payment Arrangement, Tranche One
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted	8,340,126
Restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted	341,301	341,301
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options granted	886,862	886,862
Strike price	$ 19.00
weighted average grant-date fair		$ 7.20

STOCK-BASED COMPENSATION - Weighted average basis for fair value option award granted (Details)	9 Months Ended	12 Months Ended
	Oct. 02, 2021	Dec. 31, 2020	Dec. 31, 2019
STOCK-BASED COMPENSATION
Risk-free interest rate	0.63%	0.20%	1.90%
Expected volatility	38.16%	55.00%	49.00%
Expected term (in years)	6 years 3 months	3 years 2 months 12 days	4 years 7 months 6 days
Expected dividend yield	0.00%

STOCK-BASED COMPENSATION - Restricted Stock Awards (Details) - $ / shares		9 Months Ended	12 Months Ended
	Apr. 22, 2021	Oct. 02, 2021	Dec. 31, 2020	Dec. 31, 2019
Shares
Balance at beginning		27,424,962	21,734,170	20,890,124
Granted			7,843,107	3,692,699
Forfeited			(2,152,315)	(2,848,653)
Balance at ending			27,424,962	21,734,170
Weighted-Average Grant-Date Fair Value
Balance at beginning		$ 0.43		$ 0.41
Granted			$ 0.60	0.38
Forfeited			0.35	$ 0.41
Balance at ending			$ 0.43
Restricted stock awards
Shares
Granted	8,340,126	8,340,126
Vested		(84,687)
Forfeited		(559,682)
Balance at ending		7,695,757
Weighted-Average Grant-Date Fair Value
Granted		$ 19.00
Forfeited		19.00
Balance at ending		$ 19.00

STOCK-BASED COMPENSATION - Restricted Stock Units (Details) - $ / shares		9 Months Ended	12 Months Ended
	Apr. 22, 2021	Oct. 02, 2021	Dec. 31, 2020	Dec. 31, 2019
Shares
Balance at beginning		27,424,962	21,734,170	20,890,124
Granted			7,843,107	3,692,699
Forfeited			(2,152,315)	(2,848,653)
Balance at ending			27,424,962	21,734,170
Weighted-Average Grant-Date Fair Value
Balance at beginning		$ 0.43		$ 0.41
Granted			$ 0.60	0.38
Forfeited			0.35	$ 0.41
Balance at ending			$ 0.43
Restricted stock units
Shares
Granted	341,301	341,301
Forfeited		(16,767)
Balance at ending		324,534
Weighted-Average Grant-Date Fair Value
Granted		$ 19.00
Forfeited		19.00
Balance at ending		$ 19.00

STOCK-BASED COMPENSATION - Stock Options (Details) - Stock options - $ / shares		9 Months Ended
	Apr. 22, 2021	Oct. 02, 2021
Shares
Granted	886,862	886,862
Forfeited		(81,092)
Outstanding at the end		805,770
Vested and expected to vest at the end		805,770
Weighted-Average Exercise Price per Share
Granted (in dollars per share)		$ 19.00
Outstanding at the end (in dollars per share)		19.00
Vested and expected to vest at the end (in dollars per share)		$ 19.00
Weighted-Average Remaining Contract Term
Outstanding at the beginning (in years)		9 years 6 months 18 days
Vested and expected to vest at the end (in years)		9 years 6 months 18 days
Options exercisable at the end (in years)		0 years
Outstanding at the end (in years)		9 years 6 months 18 days

NET INCOME (LOSS) PER SHARE - Basic and diluted net income (loss) per share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended						9 Months Ended		12 Months Ended
	Oct. 02, 2021	Jul. 03, 2021	Apr. 03, 2021	Sep. 26, 2020	Jun. 27, 2020	Mar. 28, 2020	Oct. 02, 2021	Sep. 26, 2020	Dec. 31, 2020	Dec. 31, 2019
Numerator:
Net income attributable to common stockholders	$ (11,296)	$ (53,598)	$ 8,533	$ 17,740	$ 16,414	$ (15,451)	$ (56,361)	$ 18,703	$ 15,983	$ 7,457
Weighted average common shares outstanding:
Basic							110,121,240	96,665,708	101,606,966	95,032,265
Diluted							110,121,240	97,122,885	102,602,738	95,400,528
Net income per share attributable to common stockholders
Basic							$ (0.51)	$ 0.19	$ 0.16	$ 0.08
Diluted							$ (0.51)	$ 0.19	$ 0.16	$ 0.08

- Definition

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

+ References

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- Definition

The amount of net income (loss) for the period available to each share of common stock or common unit outstanding during the reporting period and to each share or unit that would have been outstanding assuming the issuance of common shares or units for all dilutive potential common shares or units outstanding during the reporting period.

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+ Details

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

+ Details

NET INCOME (LOSS) PER SHARE - Antidilutive securities (Details) - shares	9 Months Ended		12 Months Ended
	Oct. 02, 2021	Sep. 26, 2020	Dec. 31, 2020	Dec. 31, 2019
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Outstanding potentially dilutive securities			0	0
Restricted stock awards
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Outstanding potentially dilutive securities	6,813,166	47,446	22,524,000	97,718,000
Restricted stock units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Outstanding potentially dilutive securities	84,866
Stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Outstanding potentially dilutive securities	4,235

RELATED PARTY TRANSACTIONS - Bright AI Services (Details) - Bright AI Services - USD ($) $ in Millions	9 Months Ended		12 Months Ended
	Oct. 02, 2021	Sep. 26, 2020	Dec. 31, 2020
Related Party Transaction [Line Items]
Costs incurred	$ 1.1	$ 0.0	$ 0.5
Development Of Internal Use Software
Related Party Transaction [Line Items]
Costs incurred	$ 1.9		$ 0.5

RELATED PARTY TRANSACTIONS - Expense Reimbursement and Management Fees (Details) - Sponsor - Management Fee Arrangement - USD ($)	9 Months Ended	12 Months Ended
	Oct. 02, 2021	Dec. 31, 2020	Dec. 31, 2019	Sep. 26, 2020
Related Party Transaction [Line Items]
Maximum annual reimbursement	$ 1,000,000.0	$ 1,000,000.0
Management fees incurred	0	47,700	$ 500,000
Reimbursement of out-of-pocket costs and expenses	100,000
Amounts payable	$ 0	$ 0	$ 0	$ 100,000

RELATED PARTY TRANSACTIONS - Operating Lease (Details) - Lease Agreement - USD ($) $ in Millions	9 Months Ended		12 Months Ended
	Oct. 02, 2021	Sep. 26, 2020	Dec. 31, 2020	Dec. 31, 2019
Related Party Transaction [Line Items]
Rent expense	$ 0.1	$ 0.1
Acquigen Pty Ltd.
Related Party Transaction [Line Items]
Future minimum lease payments	3.6		$ 4.2	$ 4.3
Rent expense	$ 0.4	$ 0.3	$ 0.4	$ 0.2

SEGMENT AND GEOGRAPHIC INFORMATION - Segment Information (Details) - segment	9 Months Ended	12 Months Ended
	Oct. 02, 2021	Dec. 31, 2020
SEGMENT AND GEOGRAPHIC INFORMATION
Number of operating segments	1	1
Number of reportable segments	1	1

SEGMENT AND GEOGRAPHIC INFORMATION - Geographic Information (Details) - USD ($) $ in Thousands	9 Months Ended		12 Months Ended
	Oct. 02, 2021	Sep. 26, 2020	Dec. 31, 2020	Dec. 31, 2019
Revenues from External Customers and Long-Lived Assets [Line Items]
Net sales	$ 491,592	$ 291,468	$ 403,389	$ 317,975
Property and equipment, net	58,767		47,357	37,845
United States
Revenues from External Customers and Long-Lived Assets [Line Items]
Net sales	385,259	234,439	325,716	257,786
Property and equipment, net	48,158		37,680	30,433
Canada
Revenues from External Customers and Long-Lived Assets [Line Items]
Net sales	76,619	38,197	50,499	43,157
Property and equipment, net	4,358		3,050	2,279
Australia
Revenues from External Customers and Long-Lived Assets [Line Items]
Net sales	18,581	13,187	20,181	12,126
Property and equipment, net	4,394		4,979	4,094
New Zealand
Revenues from External Customers and Long-Lived Assets [Line Items]
Net sales	5,277	2,357	3,984	2,432
Property and equipment, net	1,857		1,648	1,039
Other
Revenues from External Customers and Long-Lived Assets [Line Items]
Net sales	$ 5,856	$ 3,288	$ 3,009	$ 2,474

- Definition

+ References

+ Details

SUBSEQUENT EVENTS (Details) - Subsequent Event - USD ($) $ in Millions	Nov. 24, 2021	Mar. 31, 2021
Radiant Acquisition
Subsequent Event [Line Items]
Total purchase price	$ 90.0
Amended Term Loan
Subsequent Event [Line Items]
Fixed quarterly payments		$ 5.8
Fifth Amendment
Subsequent Event [Line Items]
Principal amount	50.0
Fixed quarterly payments	$ 4.3