展示99.1
SHARKNINJA, INC.
財務諸表の索引
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1
SHARKNINJA, INC.
連結簡易貸借対照表
（千ドル、株式および株式当たり金額を除く）
(未監査)
| 2024年3月31日現在の | |||||||||||
2024年9月30日 | ¨ | ||||||||||
| 資産 | |||||||||||
| 流動資産: | |||||||||||
| 現金及び現金同等物 | $ | 127,948 | $ | 154,061 | |||||||
売掛金の純額(1) | 1,190,410 | 985,172 | |||||||||
| 在庫 | 1,076,246 | 699,740 | |||||||||
前払費用およびその他の流動資産 | 121,721 | 58,311 | |||||||||
| 流動資産合計 | 2,516,325 | 1,897,284 | |||||||||
| 有形固定資産、正味額 | 196,002 | 166,252 | |||||||||
| 運用リース契約に基づく資産 | 149,975 | 63,333 | |||||||||
| 無形資産、純額 | 466,826 | 477,816 | |||||||||
| のれん | 834,781 | 834,203 | |||||||||
| 繰延税資産 | 19,713 | 12 | |||||||||
| その他の資産、非流動 | 53,703 | 48,170 | |||||||||
| 総資産 | $ | 4,237,325 | $ | 3,487,070 | |||||||
| 負債および株主資本 | |||||||||||
| 流動負債： | |||||||||||
支払調整(2) | $ | 632,850 | $ | 459,651 | |||||||
発生利息およびその他流動負債 | 640,947 | 620,333 | |||||||||
| 税金負担 | 22,025 | 20,991 | |||||||||
| 流動負債 | 214,344 | 24,157 | |||||||||
| 流動負債合計 | 1,510,166 | 1,125,132 | |||||||||
| 不動産債務（長期） | 745,975 | 775,483 | |||||||||
| 運転リース債務（非流動） | 152,100 | 63,043 | |||||||||
| 繰延税金負債 | 3,750 | 16,500 | |||||||||
| その他の負債（長期） | 30,795 | 28,019 | |||||||||
| 負債合計 | 2,442,786 | 2,008,177 | |||||||||
コミットメント及び引当金(注記10) | |||||||||||
| 株主資本: | |||||||||||
普通株式、1株あたりの帳面価額$0.0001、1,000,000,000株を認可済み；2024年9月30日および2023年12月31日現在で、それぞれ140,219,933株および139,083,369株が発行済みかつ未処分株式となっています | 14 | 14 | |||||||||
| 追加の資本金 | 1,012,407 | 1,009,590 | |||||||||
| 留保利益 | 780,308 | 470,319 | |||||||||
| その他包括利益/損失差額額 | 1,810 | (1,030) | |||||||||
| 総株主資本 | 1,794,539 | 1,478,893 | |||||||||
| 負債および株主資本の合計 | $ | 4,237,325 | $ | 3,487,070 | |||||||
(1) 2024年9月30日および2023年12月31日時点で、関連会社からの金額をそれぞれ$7,948および$3,594含んでいます。
(2) 2024年9月30日および2023年12月31日時点で、関係会社への金額はそれぞれ$52,740および$101,538含まれています。
添付の注記は、これらの未監査の簡約連結財務諸表の統合一体の部分です。
2
SHARKNINJA, INC.
損益計算書要約（未監査）
（千ドル、株式および株式当たり金額を除く）
（未監査）
| 9月30日に終了した3か月間 | 9月30日に終了した9か月間 | ||||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
純売上高(1) | $ | 1,426,566 | $ | 1,070,617 | $ | 3,741,452 | $ | 2,876,211 | |||||||||||||||
売上原価(2) | 731,559 | 583,124 | 1,918,929 | 1,591,254 | |||||||||||||||||||
| 売上総利益 | 695,007 | 487,493 | 1,822,523 | 1,284,957 | |||||||||||||||||||
| 営業経費: | |||||||||||||||||||||||
研究開発(3) | 94,808 | 60,691 | 254,457 | 180,430 | |||||||||||||||||||
| セールスとマーケティング | 300,841 | 207,599 | 818,594 | 568,035 | |||||||||||||||||||
一般と管理(4) | 119,096 | 124,655 | 310,432 | 263,682 | |||||||||||||||||||
| 営業費用の合計 | 514,745 | 392,945 | 1,383,483 | 1,012,147 | |||||||||||||||||||
| 営業利益 | 180,262 | 94,548 | 439,040 | 272,810 | |||||||||||||||||||
| 支払利息、純額 | (16,916) | (13,003) | (46,482) | (28,523) | |||||||||||||||||||
| その他の収益（費用）、純額 | 11,031 | (5,865) | 14,968 | (41,315) | |||||||||||||||||||
| 税引前利益 | 174,377 | 75,680 | 407,526 | 202,972 | |||||||||||||||||||
| 所得税の引当金 | 42,048 | 56,958 | 97,537 | 85,218 | |||||||||||||||||||
| 純利益 | $ | 132,329 | $ | 18,722 | $ | 309,989 | $ | 117,754 | |||||||||||||||
| 1株当たり純利益、基本利益 | $ | 0.94 | $ | 0.13 | $ | 2.22 | $ | 0.85 | |||||||||||||||
| 希薄化後の1株当たり純利益 | $ | 0.94 | $ | 0.13 | $ | 2.20 | $ | 0.85 | |||||||||||||||
| 1株当たり純利益の計算に使用される加重平均株式数、基本 | 140,114,282 | 139,073,181 | 139,818,196 | 139,059,206 | |||||||||||||||||||
希薄化後の1株当たり純利益の計算に使用される加重平均株式数 | 141,305,999 | 139,430,805 | 140,974,062 | 139,179,724 | |||||||||||||||||||
(1) 関連会社に関連する金額を含めた金額は、それぞれ2024年および2023年9月30日を終了した3か月間でそれぞれ$4,612および$620。また、それぞれ2024年および2023年9月30日を終了した9か月間でそれぞれ$6,962および$1,871。
(2) 2024年9月30日および2023年、2024年9月30日、2023年、それぞれに終了した3か月間の金額と関係会社に関連する額$56,997および$259,784; および2024年9月30日および2023年に終了した9か月間の金額$189,149および$953,013。
(3) 包括了与关联方有关的金额，分别为截至2024年9月30日和2023年的三个月345美元和640美元；以及分别为截至2024年和2023年9月30日的九个月1,095美元和2,405美元。
(4) 関係会社に関連する金額を含めると、2024年と2023年の9月30日までの3ヶ月間はそれぞれ$(750)および$(500)、2024年と2023年の9月30日までの9ヶ月間はそれぞれ$(2,250)および$(500)です。
添付の注記は、これらの未監査の簡約連結財務諸表の統合一体の部分です。
3
SHARKNINJA, INC.
総合利益計算書（連結）の簡易版
（千米ドル単位）
(未監査)
| 9月30日までの3か月間 | 9月30日までの9ヶ月間 | ||||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
| 当期純利益 | $ | 132,329 | $ | 18,722 | $ | 309,989 | $ | 117,754 | |||||||||||||||
| その他の総合的な所得（損失）税引後純額： | |||||||||||||||||||||||
| 外貨翻訳調整 | 23,351 | (12,380) | 21,229 | (3,967) | |||||||||||||||||||
| デリバティブ取引に係る未実現（損失）利益、純額 | (16,660) | 14,486 | (18,389) | 5,545 | |||||||||||||||||||
| 包括的利益 | $ | 139,020 | $ | 20,828 | $ | 312,829 | $ | 119,332 | |||||||||||||||
添付の注記は、これらの未監査の簡約連結財務諸表の統合一体の部分です。
4
SHARKNINJA, INC.
株主資本のコンデンス化された連結財務諸表
(千ドル、株式データを除く)
(未監査)
| 2024年9月30日終了の3か月間 | |||||||||||||||||||||||||||||||||||
| その他包括利益(損失) | |||||||||||||||||||||||||||||||||||
| 資本剰余金 | 株主資本の合計 | ||||||||||||||||||||||||||||||||||
| 普通株式 | 保留利益 | ||||||||||||||||||||||||||||||||||
| 株式 | 数量 | ||||||||||||||||||||||||||||||||||
| 2024年6月30日の残高 | 139,936,246 | $ | 14 | $ | 1,002,931 | $ | 647,979 | $ | (4,881) | $ | 1,646,043 | ||||||||||||||||||||||||
| 株式報酬費用 | — | — | 13,785 | — | — | 13,785 | |||||||||||||||||||||||||||||
| 制限付き株式選択権が発生した後、税金を差し引いた株式数 | 148,823 | — | (9,796) | — | — | (9,796) | |||||||||||||||||||||||||||||
| 従業員株式購入計画による発行株式 | 134,864 | — | 5,487 | — | — | 5,487 | |||||||||||||||||||||||||||||
| その他の包括利益、税引後 | — | — | — | — | 6,691 | 6,691 | |||||||||||||||||||||||||||||
| 当期純利益 | — | — | — | 132,329 | — | 132,329 | |||||||||||||||||||||||||||||
| 2024年9月30日現在の残高 | 140,219,933 | $ | 14 | $ | 1,012,407 | $ | 780,308 | $ | 1,810 | $ | 1,794,539 | ||||||||||||||||||||||||
| 2023年9月30日終了の3ヶ月間 | |||||||||||||||||||||||||||||||||||
| その他包括利益累積損失 | |||||||||||||||||||||||||||||||||||
| 資本剰余金 | 株主資本の合計 | ||||||||||||||||||||||||||||||||||
| 普通株式 | 保留利益 | ||||||||||||||||||||||||||||||||||
| 株式 | 数量 | ||||||||||||||||||||||||||||||||||
| 2023年6月30日の残高 | 138,982,872 | $ | 14 | $ | 941,206 | $ | 935,487 | $ | (10,197) | $ | 1,866,510 | ||||||||||||||||||||||||
| 株式報酬費用 | — | — | 21,337 | — | — | 21,337 | |||||||||||||||||||||||||||||
| 元親会社に支払われる配当 | — | — | — | (383,035) | — | (383,035) | |||||||||||||||||||||||||||||
| 元親会社へのSharkNinja Co、Ltd.の売却 | — | — | (3,295) | — | — | (3,295) | |||||||||||||||||||||||||||||
| その他の包括利益、税引後 | — | — | — | — | 2,106 | 2,106 | |||||||||||||||||||||||||||||
| 当期純利益 | — | — | — | 18,722 | — | 18,722 | |||||||||||||||||||||||||||||
| 2023年9月30日時点の残高 | 138,982,872 | $ | 14 | $ | 959,248 | $ | 571,174 | $ | (8,091) | $ | 1,522,345 | ||||||||||||||||||||||||
添付の注記は、これらの未監査の簡約連結財務諸表の統合一体の部分です。
5
SHARKNINJA, INC.
株主資本のコンデンス化された連結財務諸表
(千ドル、株式データを除く)
(未監査)
| 2024年9月30日に終了した9か月間 | |||||||||||||||||||||||||||||||||||
| その他の包括利益（損失）の累計 | |||||||||||||||||||||||||||||||||||
| 追加払込資本 | 株主資本の合計 | ||||||||||||||||||||||||||||||||||
| 普通株式 | 利益剰余金 | ||||||||||||||||||||||||||||||||||
| 株式 | 金額 | ||||||||||||||||||||||||||||||||||
| 2023年12月31日現在の残高 | 139,083,369 | $ | 14 | $ | 1,009,590 | $ | 470,319 | $ | (1,030) | $ | 1,478,893 | ||||||||||||||||||||||||
| 株式ベースの報酬 | — | — | 47,341 | — | — | 47,341 | |||||||||||||||||||||||||||||
| 源泉徴収された株式を差し引いた制限付株式単位の権利確定 | 1,001,700 | — | (50,011) | — | — | (50,011) | |||||||||||||||||||||||||||||
| 従業員株式購入プランに基づいて発行された株式 | 134,864 | — | 5,487 | — | — | 5,487 | |||||||||||||||||||||||||||||
| その他の包括利益（税引後） | — | — | — | — | 2,840 | 2,840 | |||||||||||||||||||||||||||||
| 純利益 | — | — | — | 309,989 | — | 309,989 | |||||||||||||||||||||||||||||
| 2024年9月30日現在の残高 | 140,219,933 | $ | 14 | $ | 1,012,407 | $ | 780,308 | $ | 1,810 | $ | 1,794,539 | ||||||||||||||||||||||||
| すべて投信 | |||||||||||||||||||||||||||||||||||
| その他包括利益累積損失 | |||||||||||||||||||||||||||||||||||
| 資本剰余金 | 株主資本の合計 | ||||||||||||||||||||||||||||||||||
| 普通株式 | 保留利益 | ||||||||||||||||||||||||||||||||||
| 株式 | 数量 | ||||||||||||||||||||||||||||||||||
| 2022年12月31日時点の残高 | 138,982,872 | $ | 14 | $ | 941,206 | $ | 896,738 | $ | (9,669) | $ | 1,828,289 | ||||||||||||||||||||||||
| 元親会社に支払われる配当 | — | — | — | (443,318) | — | (443,318) | |||||||||||||||||||||||||||||
| 株式報酬費用 | — | — | 24,502 | — | — | 24,502 | |||||||||||||||||||||||||||||
| 元親会社からの株価ベースの報酬の再チャージ | — | — | (3,165) | — | — | (3,165) | |||||||||||||||||||||||||||||
| 元親会社へのSharkNinja Co、Ltd.の売却 | — | — | (3,295) | — | — | (3,295) | |||||||||||||||||||||||||||||
| その他の包括利益、税引後 | — | — | — | — | 1,578 | 1,578 | |||||||||||||||||||||||||||||
| 当期純利益 | — | — | — | 117,754 | — | 117,754 | |||||||||||||||||||||||||||||
| 2023年9月30日時点の残高 | 138,982,872 | $ | 14 | $ | 959,248 | $ | 571,174 | $ | (8,091) | $ | 1,522,345 | ||||||||||||||||||||||||
添付の注記は、これらの未監査の簡約連結財務諸表の統合一体の部分です。
6
| SHARKNINJA, INC. | |||||||||||
| キャッシュフローの概要 | |||||||||||
| （千米ドル単位） | |||||||||||
| (未監査) | |||||||||||
| 9月30日までの9ヶ月間 | |||||||||||
| 2024 | 2023 | ||||||||||
| （千円単位） | |||||||||||
| 当期純利益 | $ | 309,989 | $ | 117,754 | |||||||
| 当期純利益を当期に提供された(使用された)キャッシュに調整する項目: | |||||||||||
| 減価償却費および償却費 | 86,870 | 77,394 | |||||||||
| 株式報酬費用 | 47,341 | 24,502 | |||||||||
| 貸倒引当金 | 3,744 | 2,266 | |||||||||
| キャッシュレスリース料 | 15,963 | 9,688 | |||||||||
| 繰延税金負債合計 | (32,420) | 3,905 | |||||||||
| 他 | 1,631 | 1,662 | |||||||||
| 営業資産および負債の変動: | |||||||||||
売掛金 (1) | (193,151) | (192,209) | |||||||||
| 在庫 | (357,114) | (258,982) | |||||||||
前払費用およびその他の資産(2) | (69,477) | 65,508 | |||||||||
支払調整(3) | 162,019 | 343,603 | |||||||||
| 税金負担 | 1,034 | 883 | |||||||||
| オペレーティングリース債務 | (7,428) | (9,280) | |||||||||
未払費用およびその他の負債(4) | (12,050) | (90,914) | |||||||||
| 営業活動による自己資金流入（流出） | (43,049) | 95,780 | |||||||||
| 投資活動によるキャッシュフロー： | |||||||||||
| 有形固定資産の購入 | (95,232) | (70,501) | |||||||||
| 無形資産の購入 | (6,571) | (6,905) | |||||||||
| 内部利用ソフトウェア開発 | (1,100) | (683) | |||||||||
| 売掛債権譲渡における恩恵を受ける現金受領 | — | 16,777 | |||||||||
| その他の投資活動、純額 | — | (3,051) | |||||||||
| 投資活動によるキャッシュフローの純流出 | (102,903) | (64,363) | |||||||||
| 財務活動からのキャッシュフロー: | |||||||||||
| 債務発行による収益、発行コストを差し引いた額 | — | 800,915 | |||||||||
| 借入金の返済 | (15,188) | (437,500) | |||||||||
| リボ払い入力増資からの純収益 | 175,000 | — | |||||||||
| 元親会社に支払われる配当 | — | (435,292) | |||||||||
| 元親会社からの株価ベースの報酬の再チャージ | — | (3,165) | |||||||||
| 制限株式ユニット発行時の源泉徴収された普通株式の純額 | (50,011) | — | |||||||||
| 従業員株式購入プランにおける発行株式の収益 | 5,487 | — | |||||||||
| 財務活動による純現金提供（使用） | 115,288 | (75,042) | |||||||||
| 為替レートの変動の影響 | 4,551 | (4,768) | |||||||||
| 現金、現金同等物、および制限付き現金の純減少 | (26,113) | (48,393) | |||||||||
| 期初時の現金、現金同等物及び制限付き現金 | 154,061 | 218,770 | |||||||||
| 期末の現金及び現金同等物 | $ | 127,948 | $ | 170,377 | |||||||
| 非現金取引及び投資、財務活動の補足情報： | |||||||||||
| 未払いの債務に係る物件と設備の購入 | $ | 1,390 | $ | 408 | |||||||
| 関係者ノートの配布を通じたキャンセル | — | (8,026) | |||||||||
| キャッシュ・フロー・ヘッジによる未実現の損失 | (20,562) | 5,725 | |||||||||
(1) 関係会社残高の変動を含む$(4,354)および$(5,048)の変化を含んでいます。 2024年9月30日および2023年に終了した9ヶ月間。
(2) 2024年9月30日までの9か月間および2023年について、関係者残高に変化を含めると、それぞれ0ドルおよび18,555ドルです。
(3) 関係する当事者の残高の変動を含め、2024年と2023年の9月30日までの9か月間でそれぞれ$(48,798)および$(119,704)。
(4) 関連当事者残高の変動を含め、2024年および2023年の9月30日にそれぞれ$0および$(8,399)の変動がありました。 2024年7月31日までの9か月間、会社はプットオプションの公正価値を再評価し、50ドルの未実現利益を認識しました（2023年7月31日までの3か月間および9か月間：未実現利益354ドルおよび1,300ドル）。...（省略） 2024年および2023年の9月30日にそれぞれ。
添付の注記は、これらの未監査の簡約連結財務諸表の統合一体の部分です。
7
SHARKNINJA, INC.
コンデンスド連結財務諸表に関する注記
(未監査)
1. 組織と事業の説明。
SharkNinja, Inc.（以下、「会社」という）は、クリーニング家電、調理・飲料家電、食品調理家電および「Shark」と「Ninja」というブランドのその他製品を含む、複数のサブカテゴリーにわたる革新的なライフスタイル製品ソリューションを生み出すグローバルな製品設計およびテクノロジー企業です。SharkNinjaの本社はマサチューセッツ州ニードハムにあり、製品の流通は北アメリカ、ヨーロッパ、およびその他選択された国際市場全体に及んでいます。
SharkNinja, Inc.は、2023年5月17日にケイマン諸島に完全子会社として設立されました（「JS Global」とも呼ばれる「元親会社」）。同社は、SharkNinja Global SPV、Ltd.およびその子会社のビジネスを継続するために、同社の上場を完了し、関連取引を行う目的で設立されました。
SharkNinja Global SPV、株式会社は2017年にJS Globalの完全子会社として設立されました。2023年7月28日以前、SharkNinja Global SPV、株式会社はホンコン取引所に上場するJS Globalの完全子会社として運営されていました。
2023年7月30日、（１）会社がJS Globalから分離されたこと（以下「分離」という）および（２）JS Globalの普通株主に対して、JS Globalの全株式会社利益をSharkNinja Global SPV、LTD.の形で会社の普通株式の配当として配布するため、JS Globalはすべての未払株式をSharkNinja Global SPV、Ltd.に寄付しました。そして、JS Globalは、SharkNinja, Inc.の株式と引き換えにSharkNinja Global SPV、Ltd.のすべての未払株式をSharkNinja, Inc.に寄付しました。2023年7月31日、JS GlobalはSharkNinja, Inc.の138,982,872株の普通株をJS Globalの普通株主とSharkNinja, Inc.に配布し、SharkNinja, Inc.はnyseで取引を開始しました。
分離および配布は、共同管理下のエンティティ間の取引と見なされたため、取引前期およびnyseでの上場の財務諸表は、それまで別々だったエンティティであるSharkNinja, Inc.とSharkNinja Global SPV, Ltd.を、提示目的で結合するよう調整されました。さらに、SharkNinja, Inc.の配布株式数は、これらの簡約連結財務諸表中のすべての株および関連する財務情報に反映されています。
分離および配布前のSharkNinja Global SPV、Ltd.は、分離および配布後のSharkNinja、Inc.およびその子会社とともに、以下「SharkNinja」または「企業」として参照されます。
2.重要な会計方針の概要
「Performance-Based Awards（成果に基づく受賞）」は、第7.7条に基づき、委員会によって設定されたパフォーマンス目標や他の事業目標の達成に依存して現金、株式またはその他の受賞を受け取るための受賞です。
これらの注釈と共に添付されている要約された連結財務諸表は、米国で一般的に受け入れられている会計原則（「米国会計基準」）に従って作成され、SharkNinja, Inc.及び完全子会社の勘定を含んでいます。全セクター取引と残高は連結において除去されています。比較可能性を考慮して、特定の前期金額は現在期の表示に整理されています。
2023年12月31日時点の要約された連結貸借対照表は、その日付の監査された連結財務諸表から導出されていますが、米国会計基準（U.S. GAAP）に基づく年次報告の基準に従って、一部の開示、特定ノートを含まないことに注意してください。 米国会計基準に準拠して作成された財務諸表に通常含まれる一部の情報およびノート開示は、証券取引委員会（SEC）の規則に基づき要約されたり省略されています。したがって、これらの未監査の要約された連結財務諸表は、2023年12月31日時点および期末の監査された連結財務諸表および関連するノートと連動して読む必要があります。
経営陣の見解では、未監査の要約連結財務諸表は、年次連結財務諸表と同じ基準で作成され、全セクターを反映しており、含まれるのは、
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2024年9月30日時点の会社の財務状況、2024年9月30日および2023年9月30日までの会社の簡約連結損益計算書、包括損益計算書、株主資本の説明書についての公正な表示が必要とされているために必要な通常の定期調整および2024年9月30日および2023年9月30日までの9か月間の現金フロー。2024年9月30日までの3か月および9か月間の結果は、2024年12月31日までの会計年度または将来の運営期間で期待される運用結果を必ずしも示すものではありません。
企業は、ビジネスおよび業績を理解する上で重要な会計方針を特定しました。2024年9月30日までの9か月間に、企業の監査済み連結財務諸表および関連する注記に開示された重要な会計方針に変更はありませんでした。これらの内容は、2023年12月31日においておよび同年3月1日に提出された20-Fフォーム内で開示されています。
見積もりの使用
米国会計基準（U.S. GAAP）に準拠して簡易連結財務諸表を作成するには、経営陣が資産と負債の報告額および財務諸表作成時点の潜在的資産と負債の開示、報告期間中の純売上高と費用の報告額、およびそれに付随する注記に影響を及ぼす見積および仮定を行う必要があります。こうした見積および仮定に関する重要な項目には、返品の変動的な考慮、販売リベートや割引、信用損失引当金、製品保証金積立額、金融資産および負債の公正価値（デリバティブの会計および公正価値を含む）、棚卸資産の評価、取得時の無形資産との公正価値、取得時の無形資産の役務使用期間、リースのための増分借入金利の決定、株式報酬（成果条件付与の達成尤度と市場条件付与の発行日公正価値を含む）、および繰延税金資産と不確かな税制ポジションの評価が含まれます。実際の結果はこれらの見積と異なる可能性があります。
当社が潜在的にクレジットリスクに晒される金融商品には、現金や現金同等物、売掛金、及び先物契約が含まれます。当社は、高品質な金融機関によって現金及び現金同等物を保有し、その構成と償期間を定期的に監視しています。
会社に信用リスクの集中をもたらす可能性のある金融機関は、現金及び現金同等物、売掛金、フォワード契約です。会社は、高質なファイナンシャルインスティテューションズに現金及び現金同等物を保有しており、その構成と満期は定期的に会社によって監視されています。
その他の小売業者、流通業者、および直接消費者(DTC)顧客に未回収残高がある。会社は、総資産負債計算表に記載されている金額の範囲で、顧客による未払いのリスクにさらされています。会社は、一定の信用を与える顧客が担保を預けることなく、クレジットの異なるレベルを拡大し、必要に応じて売掛金の回収可能性に基づき信用損失の可能性に備えた引当金を維持します。会社は、信用リスクの管理に関連する顧客に対して定期的な信用格付けの評価を行い、その他の信用リスク監視手続きを適用しています。
企業は、製品のかなりの部分を小売業者を通じて販売しており、その結果、これらの取引先とは個別に有意な受取残高を維持しています。これらの小売業者の財勢や業務が著しく悪化した場合、企業の業績が影響を受ける可能性があります。
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以下の表は、会社の売掛金残高の10％以上を占める顧客をまとめたものです。
| 2024年3月31日現在の | |||||||||||
2024年9月30日 | 2023年12月31日 | ||||||||||
| 顧客A | 25.5 | % | 22.4 | % | |||||||
| 顧客B | 12.0 | 16.7 | |||||||||
以下の表は、会社の売上高の10％以上を占める顧客をまとめたものです:
| 9月30日までの3か月間 | 9月30日までの9ヶ月間 | ||||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
| 顧客A | 23.5 | % | 19.2 | % | 20.1 | % | 18.9 | % | |||||||||||||||
| 顧客C | 12.1 | 15.2 | 11.7 | 15.0 | |||||||||||||||||||
売掛金、その他債権 - 差引支払い引当金
売掛金は信用損失穆担当売戻の債権を控除して示されます。債権は債務が存在する場合、債務を控除して示されます。会社は顧客インセンティブの引当金および返品の引当金を負債として計上すべきだと判断しました。
会社は、顧客契約に含まれる特定の条件に基づいて顧客インセンティブに関連する引当金を維持しています。または、過去の経験および会社が割引を期待していることに基づいています。
企業は、回収されないと見込まれる売掛金の見積もり金額を提供するために信用損失の引当金を維持しています。信用損失の引当金を推定するために、企業は、歴史的な償却活動、現在の状況、合理的かつ支持可能な予測を含む関連する利用可能な情報を使用した損失率法を適用しました。信用損失の引当金は、類似のリスク特性が存在する場合にプールされたベースで計測されます。特定の金融資産をプールされたベースで計測するかどうかを評価する際、企業は、地理的位置や顧客の業種を含むさまざまなリスク特性を考慮しました。
財務資産の契約期間中に見込まれる貸借対照額の損失を見積もります。売掛金の帳消しは貸倒引当金に計上されます。以前に帳消しになった残高の後での回収は、貸倒引当債務の減少として計上されます。
以下は、会社の信用損失引当金のキャリーオーバーです：
| 9月30日までの3か月間 | 9月30日までの9ヶ月間 | ||||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
| （千米ドル単位） | |||||||||||||||||||||||
| 前日残高 | $ | 7,692 | $ | 6,926 | $ | 8,225 | $ | 6,998 | |||||||||||||||
| 貸倒引当金 | 1,219 | 1,048 | 3,744 | 2,266 | |||||||||||||||||||
| 償却およびその他の調整 | (1,211) | (1,328) | (4,269) | (2,618) | |||||||||||||||||||
| 終了残高 | $ | 7,700 | $ | 6,646 | $ | 7,700 | $ | 6,646 | |||||||||||||||
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Disaggregation of Net Sales
The following table summarizes net sales by region based on the billing address of customers:
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||||||||||||||||||||||||||
| Amount | Percentage of Net Sales | Amount | Percentage of Net Sales | Amount | Percentage of Net Sales | Amount | Percentage of Net Sales | ||||||||||||||||||||||||||||||||||||||||
| (in thousands, except percentages) | |||||||||||||||||||||||||||||||||||||||||||||||
Domestic(1) | $ | 1,005,667 | 70.5 | % | $ | 797,344 | 74.5 | % | $ | 2,609,152 | 69.7 | % | $ | 2,044,986 | 71.1 | % | |||||||||||||||||||||||||||||||
International(2) | 420,899 | 29.5 | 273,273 | 25.5 | 1,132,300 | 30.3 | 831,225 | 28.9 | |||||||||||||||||||||||||||||||||||||||
| Total net sales | $ | 1,426,566 | 100.0 | % | $ | 1,070,617 | 100.0 | % | $ | 3,741,452 | 100.0 | % | $ | 2,876,211 | 100.0 | % | |||||||||||||||||||||||||||||||
(1) Domestic consists of net sales in the United States and Canada. Net sales from the United States represented 64.6% and 67.8% of total net sales for the three months ended September 30, 2024 and 2023, respectively; and 64.3% and 65.5% of total net sales for the nine months ended September 30, 2024 and 2023, respectively.
(2) Net sales from the United Kingdom represented 13.1% and 16.6% of total net sales for the three months ended September 30, 2024 and 2023, respectively; and 16.0% and 19.2% of total net sales for the nine months ended September 30, 2024 and 2023, respectively.
The following table presents net sales by brand:
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||||||||||||||||||||||||||
| Amount | Percentage of Net Sales | Amount | Percentage of Net Sales | Amount | Percentage of Net Sales | Amount | Percentage of Net Sales | ||||||||||||||||||||||||||||||||||||||||
| (in thousands, except percentages) | |||||||||||||||||||||||||||||||||||||||||||||||
| Shark | $ | 648,279 | 45.4 | % | $ | 519,828 | 48.6 | % | $ | 1,784,299 | 47.7 | % | $ | 1,464,466 | 50.9 | % | |||||||||||||||||||||||||||||||
| Ninja | 778,287 | 54.6 | 550,789 | 51.4 | 1,957,153 | 52.3 | 1,411,745 | 49.1 | |||||||||||||||||||||||||||||||||||||||
| Total net sales | $ | 1,426,566 | 100.0 | % | $ | 1,070,617 | 100.0 | % | $ | 3,741,452 | 100.0 | % | $ | 2,876,211 | 100.0 | % | |||||||||||||||||||||||||||||||
The following table presents net sales by product category:
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||||||||||||||||||||||||||
| Amount | Percentage of Net Sales | Amount | Percentage of Net Sales | Amount | Percentage of Net Sales | Amount | Percentage of Net Sales | ||||||||||||||||||||||||||||||||||||||||
| (in thousands, except percentages) | |||||||||||||||||||||||||||||||||||||||||||||||
| Cleaning Appliances | $ | 527,453 | 37.0 | % | $ | 449,319 | 42.0 | % | $ | 1,415,488 | 37.8 | % | $ | 1,277,986 | 44.4 | % | |||||||||||||||||||||||||||||||
| Cooking and Beverage Appliances | 411,453 | 28.8 | 339,328 | 31.7 | 1,120,371 | 29.9 | 939,060 | 32.7 | |||||||||||||||||||||||||||||||||||||||
| Food Preparation Appliances | 366,834 | 25.7 | 211,461 | 19.7 | 836,782 | 22.4 | 472,685 | 16.4 | |||||||||||||||||||||||||||||||||||||||
| Other | 120,826 | 8.5 | 70,509 | 6.6 | 368,811 | 9.9 | 186,480 | 6.5 | |||||||||||||||||||||||||||||||||||||||
| Total net sales | $ | 1,426,566 | 100.0 | % | $ | 1,070,617 | 100.0 | % | $ | 3,741,452 | 100.0 | % | $ | 2,876,211 | 100.0 | % | |||||||||||||||||||||||||||||||
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Warranty Costs
The Company accrues the estimated cost of product warranties at the time it recognizes net sales and records warranty expense to cost of goods sold. The Company’s standard warranty provides for repair or replacement of the associated products during the warranty period. The amount of the provision for the warranties is estimated based on sales volume and past experience of the level of repairs and returns. If actual product failure rates or repair costs differ from estimates, revisions to the estimated warranty obligation may be required.
Product warranty liabilities and changes were as follows:
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
| (in thousands) | |||||||||||||||||||||||
| Beginning balance | $ | 27,226 | $ | 21,173 | $ | 28,090 | $ | 20,958 | |||||||||||||||
| Accruals for warranties issued | 12,927 | 17,738 | 28,880 | 31,488 | |||||||||||||||||||
| Changes in liability for pre-existing warranties | — | (964) | — | (964) | |||||||||||||||||||
| Settlements made | (11,140) | (13,621) | (27,957) | (27,156) | |||||||||||||||||||
| Ending balance | $ | 29,013 | $ | 24,326 | $ | 29,013 | $ | 24,326 | |||||||||||||||
Segment Information
The Company operates in one operating and reportable segment. Operating segments are defined as components of an enterprise about which separate financial information is evaluated regularly by the chief operating decision maker, who is the Company’s chief executive officer (“CEO”), in deciding how to allocate resources and assessing performance. The Company’s CEO allocates resources and assesses performance based upon discrete financial information at the consolidated level.
Net sales by geographical region can be found in the disaggregation of net sales in Note 2 above. The following table presents the Company’s property and equipment, net of depreciation and amortization, by geographic region:
| As of | |||||||||||
| September 30, 2024 | December 31, 2023 | ||||||||||
| (in thousands) | |||||||||||
| United States | $ | 63,706 | $ | 60,644 | |||||||
| China | 108,471 | 92,931 | |||||||||
| Rest of World | 23,825 | 12,677 | |||||||||
| Total property and equipment, net | $ | 196,002 | $ | 166,252 | |||||||
Recently Issued Accounting Pronouncements
In November 2023, the Financial Accounting Standard Board (“FASB”) issued Accounting Standard Update (“ASU”) 2023-07, Segment Reporting (Topic 280), Improvements to Reportable Segment Disclosures, which expands reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The amendments in the ASU require, among other things, disclosure of significant segment expenses that are regularly provided to an entity’s chief operating decision maker (“CODM”) and a description of other segment items (the difference between segment revenue less the segment expenses disclosed under the significant expense principle and each reported measure of segment profit or loss) by reportable segment,
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as well as disclosure of the title and position of the CODM, and an explanation of how the CODM uses the reported measure(s) of segment profit or loss in assessing segment performance and deciding how to allocate resources. The new standard is effective for the Company in fiscal year 2024, and interim periods beginning in fiscal year 2025. Retrospective application is required. The Company is currently evaluating the impact this ASU may have on its consolidated financial statements.
In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740), Improvements to Income Tax Disclosures, which requires disclosure of disaggregated income taxes paid, prescribes standard categories for the components of the effective tax rate reconciliation, and modifies other income tax-related disclosures. The standard is effective for the Company in fiscal year 2025, and may be applied prospectively or retrospectively. The Company is currently evaluating the impact this ASU may have on its consolidated financial statements.
3. Condensed Consolidated Balance Sheet Components
Property and Equipment, Net
Property and equipment, net consisted of the following:
| As of | |||||||||||
| September 30, 2024 | December 31, 2023 | ||||||||||
| (in thousands) | |||||||||||
| Molds and tooling | $ | 279,518 | $ | 286,305 | |||||||
| Computer and software | 53,998 | 100,225 | |||||||||
| Displays | 59,261 | 91,074 | |||||||||
| Equipment | 20,334 | 19,391 | |||||||||
| Furniture and fixtures | 13,098 | 10,614 | |||||||||
| Leasehold improvements | 41,247 | 36,061 | |||||||||
| Total property and equipment | 467,456 | 543,670 | |||||||||
| Less: accumulated depreciation and amortization | (294,403) | (389,689) | |||||||||
| Construction in progress | 22,949 | 12,271 | |||||||||
| Property and equipment, net | $ | 196,002 | $ | 166,252 | |||||||
Depreciation and amortization expense was $23.9 million and $20.0 million for the three months ended September 30, 2024 and 2023, respectively, and $69.2 million and $60.6 million for the nine months ended September 30, 2024 and 2023, respectively.
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Accrued Expenses and Other Current Liabilities
Accrued expenses and other current liabilities consisted of the following:
| As of | |||||||||||
| September 30, 2024 | December 31, 2023 | ||||||||||
| (in thousands) | |||||||||||
| Accrued customer incentives | $ | 208,408 | $ | 207,593 | |||||||
| Accrued expenses | 134,927 | 106,198 | |||||||||
| Accrued compensation and benefits | 83,903 | 89,658 | |||||||||
| Accrued returns | 46,569 | 58,828 | |||||||||
| Sales and other tax payable | 3,629 | 19,904 | |||||||||
| Accrued advertising | 4,007 | 35,968 | |||||||||
| Accrued delivery and distributions | 52,844 | 29,850 | |||||||||
| Accrued warranty | 29,013 | 28,090 | |||||||||
| Operating lease liabilities, current | 14,745 | 8,390 | |||||||||
| Accrued professional fees and legal reserves | 34,301 | 8,071 | |||||||||
| Derivative liabilities | 13,907 | 3,370 | |||||||||
| Other | 14,694 | 24,413 | |||||||||
| Accrued expenses and other current liabilities | $ | 640,947 | $ | 620,333 | |||||||
4. Sale of SharkNinja Co., Ltd
On July 27, 2023, as part of the separation, the Company executed a reorganization whereby SharkNinja sold its Japanese subsidiary, SharkNinja Co., Ltd., to JS Global for a note equal to $8.0 million. The transaction did not result in a change in reporting entity or meet the criteria for discontinued operations and, therefore, the Company has reflected SharkNinja Co., Ltd. in its financial position and results of operations using SharkNinja Co., Ltd.'s carrying values, prior to the separation, and has accounted for the transaction on a prospective basis.
The transaction was accounted for as a common control transaction during the three months ended September 30, 2023, whereby the difference of $3.3 million between the proceeds received through the note of $8.0 million and the net carrying value of the assets at the time of the transaction of $11.3 million was recorded as a reduction to additional paid-in capital. The note of $8.0 million was then distributed to JS Global and recorded as a reduction to retained earnings.
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5. Fair Value Measurements
The following table presents information about the Company’s assets and liabilities that are measured at fair value on a recurring basis as of September 30, 2024:
| September 30, 2024 | |||||||||||||||||||||||
| Fair Value | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||
| (in thousands) | |||||||||||||||||||||||
| Financial Assets: | |||||||||||||||||||||||
| Money market funds included in cash and cash equivalents | $ | 10,838 | $ | 10,838 | $ | — | $ | — | |||||||||||||||
| Total financial assets | $ | 10,838 | $ | 10,838 | $ | — | $ | — | |||||||||||||||
| Financial Liabilities: | |||||||||||||||||||||||
| Derivatives designated as hedging instruments: | |||||||||||||||||||||||
Forward contracts included in accrued expenses and other current liabilities (Note 6) | $ | 13,907 | $ | — | $ | 13,907 | $ | — | |||||||||||||||
| Total financial liabilities | $ | 13,907 | $ | — | $ | 13,907 | $ | — | |||||||||||||||
The following table presents information about the Company’s assets and liabilities that are measured at fair value on a recurring basis as of December 31, 2023:
| December 31, 2023 | |||||||||||||||||||||||
| Fair Value | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||
| (in thousands) | |||||||||||||||||||||||
| Financial Assets: | |||||||||||||||||||||||
| Money market funds included in cash and cash equivalents | $ | 1,806 | $ | 1,806 | $ | — | $ | — | |||||||||||||||
| Total financial assets | $ | 1,806 | $ | 1,806 | $ | — | $ | — | |||||||||||||||
| Financial Liabilities: | |||||||||||||||||||||||
| Derivatives designated as hedging instruments: | |||||||||||||||||||||||
Forward contracts included in accrued expenses and other current liabilities (Note 6) | $ | 3,370 | $ | — | $ | 3,370 | $ | — | |||||||||||||||
| Total financial liabilities | $ | 3,370 | $ | — | $ | 3,370 | $ | — | |||||||||||||||
The Company classifies its money market funds within Level 1 because they are valued using quoted prices in active markets. The Company classifies its derivative financial instruments within Level 2 because they are valued using inputs other than quoted prices which are directly or indirectly observable in the market, including readily-available pricing sources for the identical underlying security which may not be actively traded.
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6. Derivative Financial Instruments and Hedging
Notional Amount of Forward Contracts
The gross notional amounts of the Company’s forward contracts are USD denominated. The notional amounts of outstanding forward contracts in USD as of the periods presented were as follows:
| As of | |||||||||||
September 30, 2024 | December 31, 2023 | ||||||||||
| (in thousands) | |||||||||||
| Derivatives designated as hedging instruments: | |||||||||||
| Forward contracts | $ | 183,670 | $ | 350,000 | |||||||
| Total derivative instruments | $ | 183,670 | $ | 350,000 | |||||||
Effect of Forward Contracts on the Condensed Consolidated Statements of Income
The Company did not have any forward contracts that were not designated as hedging instruments for the three and nine months ended September 30, 2024. Total gain (loss) recognized from derivatives that were not designated as hedging instruments was $0.7 million for the three months ended September 30, 2023 and $(31.6) million for the nine months ended September 30, 2023, and was recorded in other expense, net within the condensed consolidated statements of income.
Effect of Forward Contracts on Accumulated Other Comprehensive Income
The following table represents the unrealized gains (losses) of forward contracts that were designated as hedging instruments, net of tax effects, that were recorded in accumulated other comprehensive income as of September 30, 2024 and 2023, and their effect on other comprehensive income for the three and nine months ended September 30, 2024 and 2023:
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
| (in thousands) | |||||||||||||||||||||||
| Beginning balance | $ | (3,902) | $ | (8,941) | $ | (2,173) | $ | — | |||||||||||||||
| Amount of net (losses) gains recorded in other comprehensive income | (16,423) | 15,698 | (16,838) | 5,607 | |||||||||||||||||||
| Amount of net losses reclassified from other comprehensive income to earnings | (237) | (1,212) | (1,551) | (62) | |||||||||||||||||||
| Ending balance | $ | (20,562) | $ | 5,545 | $ | (20,562) | $ | 5,545 | |||||||||||||||
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7. Intangible Assets, Net and Goodwill
Intangible Assets, Net
Intangible assets consisted of the following as of September 30, 2024:
| Gross Carrying Value | Accumulated Amortization | Net Carrying Value | Weighted-Average Remaining Useful Life | ||||||||||||||||||||
| (in thousands) | (in years) | ||||||||||||||||||||||
| Intangible assets subject to amortization: | |||||||||||||||||||||||
| Customer relationships | $ | 143,083 | $ | (111,287) | $ | 31,796 | 2.0 | ||||||||||||||||
| Patents | 63,442 | (29,027) | 34,415 | 5.4 | |||||||||||||||||||
| Developed technology | 22,860 | (7,509) | 15,351 | 7.4 | |||||||||||||||||||
| Total intangible assets subject to amortization | $ | 229,385 | $ | (147,823) | $ | 81,562 | |||||||||||||||||
| Intangible assets not subject to amortization: | |||||||||||||||||||||||
| Trade name and trademarks | $ | 385,264 | $ | — | $ | 385,264 | Indefinite | ||||||||||||||||
| Total intangible assets, net | $ | 614,649 | $ | (147,823) | $ | 466,826 | |||||||||||||||||
Intangible assets consisted of the following as of December 31, 2023:
| Gross Carrying Value | Accumulated Amortization | Net Carrying Value | Weighted-Average Remaining Useful Life | ||||||||||||||||||||
| (in thousands) | (in years) | ||||||||||||||||||||||
| Intangible assets subject to amortization: | |||||||||||||||||||||||
| Customer relationships | $ | 143,083 | $ | (99,363) | $ | 43,720 | 2.8 | ||||||||||||||||
| Patents | 57,436 | (24,763) | 32,673 | 5.4 | |||||||||||||||||||
| Developed technology | 22,677 | (5,953) | 16,724 | 8.3 | |||||||||||||||||||
| Total intangible assets subject to amortization | $ | 223,196 | $ | (130,079) | $ | 93,117 | |||||||||||||||||
| Intangible assets not subject to amortization: | |||||||||||||||||||||||
| Trade name and trademarks | $ | 384,699 | $ | — | $ | 384,699 | Indefinite | ||||||||||||||||
| Total intangible assets, net | $ | 607,895 | $ | (130,079) | $ | 477,816 | |||||||||||||||||
Amortization expenses for intangible assets were as follows:
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
| (in thousands) | |||||||||||||||||||||||
| Research and development | $ | 1,914 | $ | 1,632 | $ | 5,738 | $ | 4,918 | |||||||||||||||
| Sales and marketing | 3,974 | 3,975 | 11,923 | 11,924 | |||||||||||||||||||
| Total amortization expenses | $ | 5,888 | $ | 5,607 | $ | 17,661 | $ | 16,842 | |||||||||||||||
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The expected future amortization expenses related to the intangible assets as of September 30, 2024 were as follows:
| Amount | |||||
| (in thousands) | |||||
| Years ending December 31, | |||||
| Remainder of 2024 | $ | 6,310 | |||
| 2025 | 24,269 | ||||
| 2026 | 20,294 | ||||
| 2027 | 7,449 | ||||
| 2028 | 4,682 | ||||
| Thereafter | 18,558 | ||||
| Total | $ | 81,562 | |||
Goodwill
The following table represents the changes to goodwill:
| Carrying Amount | |||||
| (in thousands) | |||||
| Balance as of December 31, 2023 | $ | 834,203 | |||
| Effect of foreign currency translation | 578 | ||||
| Balance as of September 30, 2024 | $ | 834,781 | |||
8. Operating Leases
The components of total lease costs for operating leases for the periods presented were as follows:
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
| (in thousands) | |||||||||||||||||||||||
| Operating lease cost | $ | 7,437 | $ | 4,429 | $ | 21,317 | $ | 13,822 | |||||||||||||||
| Variable lease cost | 5,236 | 4,233 | 12,032 | 9,672 | |||||||||||||||||||
| Short-term lease cost | 305 | 172 | 663 | 363 | |||||||||||||||||||
| Total lease cost | $ | 12,978 | $ | 8,834 | $ | 34,012 | $ | 23,857 | |||||||||||||||
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The supplemental cash flow information related to operating leases for the periods presented were as follows:
| Nine Months Ended September 30, | |||||||||||
| 2024 | 2023 | ||||||||||
| (in thousands) | |||||||||||
| Cash payments for operating lease liabilities | $ | 14,223 | $ | 13,669 | |||||||
| Operating lease liabilities arising from obtaining new operating lease right-of-use assets during the period | $ | 99,345 | $ | 9,116 | |||||||
The weighted-average remaining lease terms and discount rates for operating leases were as follows:
| As of | |||||||||||
September 30, 2024 | December 31, 2023 | ||||||||||
| Weighted-average remaining lease term (years) | 7.1 | 5.7 | |||||||||
| Weighted-average discount rate | 6.3% | 4.6% | |||||||||
Future minimum lease payments under non-cancellable leases as of September 30, 2024, were as follows:
| Amount | |||||
| (in thousands) | |||||
| Years ending December 31, | |||||
| Remainder of 2024 | $ | 4,614 | |||
| 2025 | 25,272 | ||||
| 2026 | 30,195 | ||||
| 2027 | 30,562 | ||||
| 2028 | 30,536 | ||||
| Thereafter | 89,316 | ||||
| Total undiscounted lease payments | 210,496 | ||||
| Less: imputed interest | (43,651) | ||||
| Total operating lease liabilities | $ | 166,845 | |||
9. Debt
On July 20, 2023, the Company entered into a credit agreement (“2023 Credit Agreement”) with Bank of America, N.A., as administrative agent, and certain banks and financial institutions party thereto as lenders and issuing banks. The 2023 Credit Agreement provides for an $810.0 million term loan facility (the “2023 Term Loans”) and a $500.0 million revolving credit facility (“2023 Revolving Facility”). The 2023 Term Loans and 2023 Revolving Facility mature in July 2028, and both facilities bear interest at the Secured Overnight Financing Rate (“SOFR”) plus 1.75%. All SOFR borrowings under the 2023 Credit Agreement also incur a 0.1% credit adjustment. The Company has the ability to borrow in certain alternative currencies under the 2023 Credit Agreement. Alternative currency loans are priced using an Alternative Currency Term Rate plus any applicable spread adjustments. The Company may request increases to the 2023 Term Loans or 2023 Revolving Facility in a maximum aggregate amount not to exceed the greater of $520.0 million or 100% of adjusted earnings before interest, taxes, depreciation, and amortization, as defined in the 2023 Credit Agreement, for the most recently completed fiscal year. The 2023 Credit Agreement replaced the Company’s existing credit facility that had a
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remaining principal balance of $400.0 million and accrued interest of $9.2 million.
No amounts were outstanding on the 2023 Revolving Facility as of December 31, 2023. During the nine months ended September 30, 2024, there were $210.0 million in draw downs on the 2023 Revolving Facility, of which $35.0 million has been repaid and $175.0 million remained outstanding as of September 30, 2024 and is recorded within debt, current on the condensed consolidated balance sheets. As of September 30, 2024, $9.1 million of letters of credit were outstanding, resulting in an available balance of $315.9 million under the 2023 Revolving Facility.
The Company is required to meet certain financial covenants customary with this type of agreement, including, but not limited to, maintaining a maximum ratio of indebtedness and a minimum specified interest coverage ratio. As of September 30, 2024, the Company was in compliance with the covenants under the 2023 Credit Agreement.
The obligations of the loan parties under the 2023 Credit Agreement with respect to the 2023 Term Loans and 2023 Revolving Facility are secured by (i) equity interests owned by the loan parties in each other loan party and in certain of the Company's wholly-owned domestic restricted subsidiaries and (ii) substantially all assets of the domestic loan parties (subject to certain customary exceptions). In addition, subject to certain customary exceptions, these obligations are guaranteed by (i) the Company, (ii) each subsidiary of the Company that directly or indirectly owns a borrower and (iii) each other direct and indirect wholly-owned domestic restricted subsidiary of the Company.
Debt consisted of the following:
| As of | |||||||||||
September 30, 2024 | December 31, 2023 | ||||||||||
| (in thousands) | |||||||||||
| 2023 Term Loans with principal payments due quarterly; final balance due on maturity date of July 20, 2028 | $ | 789,750 | $ | 804,938 | |||||||
| 2023 Revolving Facility | 175,000 | — | |||||||||
| Less: deferred financing costs | (4,431) | (5,298) | |||||||||
| Total debt, net of deferred financing costs | 960,319 | 799,640 | |||||||||
| Less: debt, current | (214,344) | (24,157) | |||||||||
| Debt, noncurrent | $ | 745,975 | $ | 775,483 | |||||||
Aggregate maturities on debt (excluding the 2023 Revolving Facility) as of September 30, 2024 were as follows:
| Amount | |||||
| (in thousands) | |||||
| Years ending December 31, | |||||
| Remainder of 2024 | $ | 10,125 | |||
| 2025 | 40,500 | ||||
| 2026 | 40,500 | ||||
| 2027 | 40,500 | ||||
| 2028 | 658,125 | ||||
| Total future principal payments | $ | 789,750 | |||
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The Company recognizes and records interest expense related to its debt in interest expense, net, which totaled $18.0 million and $14.0 million for the three months ended September 30, 2024 and 2023, respectively, and $49.3 million and $28.3 million for the nine months ended September 30, 2024 and 2023, respectively.
10. Commitments and Contingencies
Non-Cancelable Purchase Obligations
In the normal course of business, the Company enters into non-cancelable purchase commitments, including marketing and endorsement agreements. Certain of these agreements extend over terms of up to five years, with payments required in varying installments over the term. As of September 30, 2024, the Company has remaining obligations associated with agreements with original terms greater than 12 months totaling $28.7 million, which is payable in a combination of cash and ordinary shares of SharkNinja, Inc.
Indemnifications and Contingencies
The Company enters into indemnification provisions under certain agreements with other parties in the ordinary course of business. In its customer agreements, the Company has agreed to indemnify, defend and hold harmless the indemnified party for third-party claims and related losses suffered or incurred by the indemnified party from actual or threatened third-party intellectual property infringement claims. For certain large or strategic customers, the Company has agreed to indemnify, defend and hold harmless the indemnified party for non-compliance with certain additional representations and warranties made by the Company.
Legal Proceedings
From time to time, the Company may be involved in various legal proceedings arising from the normal course of business activities, including certain patent infringement claims and false advertising claims against us. The Company investigates these claims as they arise. In the opinion of management, the amount of ultimate loss with respect to any current legal proceedings and claims, if determined adversely to the Company, will not have a material adverse effect on its business, financial condition and results of operation.
During the three months ended September 30, 2024, the Company reached a settlement agreement related to asserted patent infringement claims associated with certain product technology. Under the terms of the settlement, both parties agreed to dismiss all claims and counterclaims with prejudice. As a result of this settlement, the Company recognized a liability of $13.5 million as of September 30, 2024, which was recorded in accrued expenses and other current liabilities in the condensed consolidated balance sheet, and such amount was paid in full in October 2024.
11. Shareholders' Equity and Equity Incentive Plan
Distributions to Former Parent
During the year ended December 31, 2022, the Company entered into a note agreement with the Former Parent (the “2022 Intercompany Note to Former Parent”) in which SharkNinja transferred $49.3 million to its Former Parent. Due to the nature of the note receivable, the Company considered it to be an in-substance distribution to its Former Parent accounted for as contra-equity at inception. During the nine months ended September 30, 2023, the Company declared and issued distributions to the Former Parent of $485.4 million which included amounts receivable of $50.4 million under the 2022 Intercompany Note to Former Parent, including interest, in satisfaction of such note, a cash distribution of $60.3 million paid in February, a cash distribution of $375.0 million paid in July for the repayment of JS Global’s outstanding debt under the 2020 Facilities Agreement as discussed in Note 9 - Debt, and a non-cash distribution of the note of $8.0 million related to the sale of the Company's Japanese subsidiary, SharkNinja Co., Ltd, as discussed in Note 4 - Sale of SharkNinja Co., Ltd.
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Restricted Share Units
SharkNinja Equity Incentive Plan
On July 28, 2023, the Company's board of directors adopted the 2023 Equity Incentive Plan (the "2023 Plan”) to grant cash and equity incentive awards to eligible participants in order to attract, motivate and retain talent. The 2023 Plan provides for the issuance of stock options, share appreciation rights, restricted stock awards, restricted share units (“RSUs”), performance awards and other awards. The 2023 Plan initially made 13,898,287 ordinary shares available for future award grants.
RSU activities for the nine months ended September 30, 2024 for RSUs granted under the 2023 Plan to the Company's employees were as follows:
| Number of Shares | Weighted Average Grant Date Fair Value per share | ||||||||||
Unvested as of December 31, 2023 | 3,857,986 | $ | 28.32 | ||||||||
| Granted | 212,750 | 63.07 | |||||||||
| Vested | (1,862,980) | (26.17) | |||||||||
| Cancelled/Forfeited | (98,295) | (30.05) | |||||||||
Unvested as of September 30, 2024 | 2,109,461 | $ | 33.64 | ||||||||
RSUs granted for the nine months ended September 30, 2024 under the 2023 Plan were 212,750, of which 85,174 RSUs were granted with service-only conditions, 115,452 performance-based RSUs were granted with vesting conditions tied to the achievement of certain performance growth metrics, such as net sales, gross profit and operating cash flow and 12,124 market-based RSUs were granted with conditions tied to the achievement of a certain level of market capitalization over a consecutive period of time.
In October 2024, the compensation committee and our board of directors approved the grant of 227,371 market-based RSUs to certain senior executives with vesting conditions tied to the achievement of a certain level of market capitalization over a consecutive period of time. Vesting of these market-based RSUs and recognition of all related compensation expense is expected to occur during the three months ended December 31, 2024.
Employee Stock Purchase Plan
On July 28, 2023, the board of directors approved the 2023 Employee Share Purchase Plan (the "ESPP"). A maximum of 1% of the Company's outstanding ordinary shares (or 1,389,828 shares) were made available for sale under the ESPP. The ESPP contains an evergreen provision whereby the shares available for sale will automatically increase on the first day of each calendar year from January 1, 2025 through and including January 1, 2033, in an amount equal to the lesser of (i) 0.15% of the total number of shares of the Company's ordinary shares outstanding on December 31 of the preceding year; (ii) 300,000 shares; or (iii) such lesser number of shares as determined by the board at any time prior to the first day of a given calendar year. The ESPP provides for six-month offering periods during which the Company will grant rights to purchase ordinary shares to eligible employees. The first offering period began in February 2024. During the nine months ended September 30, 2024, there were 134,864 shares purchased under the ESPP. As of September 30, 2024, total unrecognized share-based compensation was $1.8 million, which is to be recognized over a weighted-average remaining period of 0.3 years.
22
Share-Based Compensation
The share-based compensation by line item in the accompanying condensed consolidated statements of income is summarized as follows:
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
| (in thousands) | |||||||||||||||||||||||
| Research and development | $ | 2,030 | $ | 3,160 | $ | 7,815 | $ | 4,229 | |||||||||||||||
| Sales and marketing | 2,778 | 1,920 | 7,485 | 2,432 | |||||||||||||||||||
| General and administrative | 8,977 | 16,257 | 32,041 | 17,841 | |||||||||||||||||||
| Total share-based compensation | $ | 13,785 | $ | 21,337 | $ | 47,341 | $ | 24,502 | |||||||||||||||
As of September 30, 2024, the Company had $38.3 million unrecognized share-based compensation cost related to RSUs granted under the 2023 Plan that will be recognized over a weighted average period of 1.3 years. Of this unrecognized share-based compensation cost, $19.9 million related to RSUs granted under the 2023 Plan with performance conditions. There was no unrecognized share-based compensation cost related to RSUs granted under the 2023 Plan with market conditions.
For those RSUs with service conditions, performance conditions or a combination of both, the grant date fair value was measured based on the quoted price of our ordinary shares at the date of grant. The weighted average grant date fair value of these awards for the nine months ended September 30, 2024 was $63.52 per share.
The total grant-date fair value of RSUs vested during the nine months ended September 30, 2024 was $48.8 million.
12. Income Taxes
The Company recorded a provision for income taxes of $42.0 million and $57.0 million for the three months ended September 30, 2024 and 2023, respectively, and $97.5 million and $85.2 million for the nine months ended September 30, 2024 and 2023, respectively. The Company’s effective tax rate (“ETR”) was 24.1% and 75.3% for the three months ended September 30, 2024 and 2023, respectively, and 23.9% and 42.0% for the nine months ended September 30, 2024 and 2023, respectively. This decrease in the ETR was primarily related to the impacts of the separation and distribution and refinancing, such as withholding taxes and transaction costs, in the prior year.
13. Net Income Per Share
On July 31, 2023, in connection with the separation from JS Global, 138,982,872 ordinary shares of SharkNinja, Inc. were distributed to JS Global shareholders. The distributed share amount of SharkNinja, Inc. is utilized for the calculation of basic and diluted net income per share of the Company for all periods presented prior to the separation and distribution from JS Global. For the three and nine months ended September 30, 2024 and 2023, these shares are treated as issued and outstanding for purposes of calculating historical net income per share. For periods prior to the separation and distribution, it is assumed that there are no dilutive equity instruments as there were no equity awards of SharkNinja, Inc. outstanding prior to the separation and distribution.
23
The following table sets forth the computation of basic and diluted net income per share for the periods presented:
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
| (in thousands, except share and per share data) | |||||||||||||||||||||||
| Numerator: | |||||||||||||||||||||||
| Net income | $ | 132,329 | $ | 18,722 | $ | 309,989 | $ | 117,754 | |||||||||||||||
| Denominator: | |||||||||||||||||||||||
| Weighted-average shares used in computing net income per share, basic | 140,114,282 | 139,073,181 | 139,818,196 | 139,059,206 | |||||||||||||||||||
| Dilutive effect of RSUs | 1,191,717 | 357,624 | 1,155,866 | 120,518 | |||||||||||||||||||
| Weighted-average shares used in computing net income per share, diluted | 141,305,999 | 139,430,805 | 140,974,062 | 139,179,724 | |||||||||||||||||||
| Net income per share, basic | $ | 0.94 | $ | 0.13 | $ | 2.22 | $ | 0.85 | |||||||||||||||
| Net income per share, diluted | $ | 0.94 | $ | 0.13 | $ | 2.20 | $ | 0.85 | |||||||||||||||
Potential ordinary shares of certain performance-based and market-based RSUs of approximately 736,405 and 959,263 for the three and nine months ended September 30, 2024, respectively, for which all targets required to trigger vesting had not been achieved, were excluded from the calculations of weighted average shares used in computing diluted net income per share.
14. Related Party Transactions
Transactions with JS Global
Prior to the separation, the Company operated as part of JS Global’s broader corporate organization rather than as a stand-alone public company and engaged in various transactions with JS Global entities. Following the separation and distribution, JS Global continues to be a related party due to a common shareholder that has majority control of both the Company and JS Global. Our arrangements with JS Global entities and/or other related persons or entities as of the separation are described below.
Supplier Agreements
The Company historically relied on a JS Global purchasing office entity to source finished goods on the Company’s behalf and to provide certain procurement and quality control services. Additionally, the Company purchases certain finished goods directly from a subsidiary of JS Global. Finished goods purchased by the Company from JS Global entities amounted to $49.1 million and $242.8 million for the three months ended September 30, 2024 and 2023, respectively, and $156.2 million and $952.0 million for the nine months ended September 30, 2024 and 2023, respectively. In connection with these agreements, the Company historically incurred costs related to certain procurement and quality control activities that were reimbursed by JS Global entities. For the three and nine months ended September 30, 2024, JS Global entities made no payments of this nature to the Company. In comparison, for the three and nine months ended September 30, 2023, JS Global entities paid the Company $2.0 million and $18.0 million, respectively, which were recorded as a reduction to cost of sales for services rendered under these agreements.
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Sourcing Services Agreement
In connection with the separation, the Company entered into a sourcing services agreement with JS Global. Pursuant to the agreement, the Company procures products from certain suppliers in the Asia-Pacific region (“APAC”), and JS Global provides coordination, process management and relationship management support to us with respect to such suppliers. The Company retains the right to procure such products and services from third parties. The Company pays JS Global a service fee based on the aggregate amount of products procured by the Company from such suppliers managed by JS Global under the agreement. The Sourcing Services Agreement has a term commencing July 28, 2023 and ending on June 30, 2025. The Company will pay JS Global the following: (i) for the period July 28, 2023 to June 30, 2024, an amount equal to 4% of the procurement amount during such period; and (ii) for the period from July 1, 2024 until December 31, 2024, an amount equal to 2% of the procurement amount during such period; and (iii) for the period from January 1, 2025 until the end of the Term, an amount equal to 1% of the procurement amount during such period. Fees incurred by the Company related to this agreement were $7.9 million and $19.0 million for the three months ended September 30, 2024 and 2023, respectively, and $32.9 million and $19.0 million for the nine months ended September 30, 2024 and 2023, respectively, and were included in cost of inventories.
Brand License Agreement
In connection with the separation, the Company entered into a brand license agreement with JS Global, in which the Company granted to JS Global the non-exclusive rights to obtain, produce and source, and the exclusive rights to distribute and sell, our brands of products in certain international markets in APAC. The brand license agreement has a term of 20 years from the date of the separation. Under this agreement, JS Global pays to SharkNinja a royalty of 3% of net sales of licensed products. The Company earned royalty income of $4.6 million and $0.6 million for the three months ended September 30, 2024 and 2023, respectively, and $7.0 million and $0.6 million for the nine months ended September 30, 2024 and 2023, respectively, which was included in net sales.
Product Development Agreements
The Company has historically utilized JS Global subsidiaries for certain research and development services. For these services, the Company paid $0.9 million and $0.8 million for the three months ended September 30, 2024 and 2023, respectively, and $2.6 million for the nine months ended September 30, 2024 and 2023.
In connection with the separation, the Company entered into an agreement with JS Global to provide certain research and development, and related product management, services to JS Global entities related to the distribution of products in APAC. Under this agreement, the Company earned product development service fees of $0.5 million and $0.2 million for the three months ended September 30, 2024 and 2023, respectively, and $1.5 million and $0.2 million for the nine months ended September 30, 2024 and 2023, respectively, which were recorded as a reduction of research and development expenses.
Transition Services Agreement
In connection with the separation, the Company entered into a transition services agreement with JS Global pursuant to which the Company provides certain transition services to JS Global, in order to facilitate the transition of the separated JS Global business. The services are provided on a transitional basis for a term of twenty-four months, subject to a three-month extension by JS Global. Service fees related to this agreement were $0.8 million and $0.5 million for the three months ended September 30, 2024 and 2023, respectively, and $2.3 million and $0.5 million for the nine months ended September 30, 2024 and 2023, respectively, and were recorded as a reduction of general and administrative expenses.
Transactions with Former Parent
See “Note 11 - Shareholders' Equity and Equity Incentive Plan” for details on the Company’s distributions to Former Parent.
25
The following is a summary of the related party transactions associated with JS Global:
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
| (in thousands) | |||||||||||||||||||||||
| Related party revenue | |||||||||||||||||||||||
| Sale of goods | $ | — | $ | 13 | $ | — | $ | 1,264 | |||||||||||||||
| Royalty income | 4,612 | 607 | 6,962 | 607 | |||||||||||||||||||
| Related party expense (income) | |||||||||||||||||||||||
| Cost of sales - purchases of goods and services, net | $ | 56,997 | $ | 259,784 | $ | 189,149 | $ | 953,013 | |||||||||||||||
| Research and development services, net | 355 | 640 | 1,095 | 2,405 | |||||||||||||||||||
| General and administrative | (750) | (500) | (2,250) | (500) | |||||||||||||||||||
| As of | |||||||||||
| September 30, 2024 | December 31, 2023 | ||||||||||
| (in thousands) | |||||||||||
| Related party assets | |||||||||||
| Accounts receivable, net | $ | 7,948 | $ | 3,594 | |||||||
| Related party liabilities | |||||||||||
| Accounts payable | $ | 52,740 | $ | 101,538 | |||||||
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