Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 29, 2018 | Jan. 31, 2019 | Jun. 30, 2018 | |
Document And Entity Information [Abstract] | |||
Entity Registrant Name | National Vision Holdings, Inc. | ||
Entity Central Index Key | 1,710,155 | ||
Current Fiscal Year End Date | --12-29 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 29, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 78,208,539 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 1.3 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 29, 2018 | Dec. 30, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 17,132 | $ 4,208 |
Accounts receivable, net | 50,735 | 43,193 |
Inventories | 116,022 | 91,151 |
Prepaid expenses and other current assets | 30,815 | 23,925 |
Total current assets | 214,704 | 162,477 |
Property and equipment, net | 355,117 | 302,280 |
Other assets: | ||
Goodwill | 777,613 | 792,744 |
Trademarks and trade names | 240,547 | 240,547 |
Other intangible assets, net | 64,532 | 72,903 |
Other assets | 8,876 | 10,988 |
Total non-current assets | 1,446,685 | 1,419,462 |
Total assets | 1,661,389 | 1,581,939 |
Current liabilities: | ||
Accounts payable | 43,642 | 35,708 |
Other payables and accrued expenses | 81,004 | 77,611 |
Unearned revenue | 27,295 | 27,739 |
Deferred revenue | 52,144 | 62,993 |
Current maturities of long-term debt | 7,567 | 7,258 |
Total current liabilities | 211,652 | 211,309 |
Long-term debt, less current portion and debt discount | 570,545 | 561,980 |
Other non-current liabilities: | ||
Deferred revenue | 20,134 | 31,222 |
Other liabilities | 53,964 | 50,902 |
Deferred income taxes, net | 61,940 | 71,926 |
Total other non-current liabilities | 136,038 | 154,050 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Common stock, $0.01 par value; 200,000 shares authorized; 78,246 and 74,654 shares issued as of December 29, 2018 and December 30, 2017, respectively; 78,167 and 74,654 shares outstanding as of December 29, 2018 and December 30, 2017, respectively | 782 | 746 |
Additional paid-in capital | 672,503 | 631,798 |
Accumulated other comprehensive loss | (2,810) | (9,868) |
Retained earnings | 74,840 | 32,157 |
Treasury stock, at cost; 79 and 28 shares as of December 29, 2018 and December 30, 2017, respectively | (2,161) | (233) |
Total stockholders’ equity | 743,154 | 654,600 |
Total liabilities and stockholders’ equity | $ 1,661,389 | $ 1,581,939 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 29, 2018 | Dec. 30, 2017 | Oct. 30, 2017 | Feb. 02, 2017 |
Statement of Financial Position [Abstract] | ||||
Common stock, par value (in usd per share) | $ 0.01 | $ 0.01 | ||
Common stock, authorized (shares) | 200,000,000 | 200,000,000 | 200,000,000 | |
Common stock, issued (shares) | 78,246,000 | 74,654,000 | ||
Common stock, outstanding (shares) | 78,167,000 | 74,654,000 | 110,500,000 | |
Treasury stock, at cost (shares) | 79,000 | 28,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 30, 2017 | Sep. 30, 2017 | Jul. 01, 2017 | Apr. 01, 2017 | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Revenue: | |||||||||||
Total net revenue | $ 355,922 | $ 387,425 | $ 385,532 | $ 407,975 | $ 321,819 | $ 346,089 | $ 337,541 | $ 369,859 | $ 1,536,854 | $ 1,375,308 | $ 1,196,195 |
Costs applicable to revenue (exclusive of depreciation and amortization): | |||||||||||
Total costs applicable to revenue | 173,470 | 182,588 | 177,059 | 180,454 | 152,393 | 162,358 | 156,408 | 165,808 | 713,571 | 636,966 | 544,781 |
Operating expenses: | |||||||||||
Selling, general and administrative expenses | 687,476 | 600,010 | 525,869 | ||||||||
Depreciation and amortization | 74,339 | 61,974 | 52,677 | ||||||||
Asset impairment | 17,630 | 4,117 | 7,132 | ||||||||
Litigation settlement | 0 | 7,000 | 0 | ||||||||
Other expense, net | 1,487 | 950 | 1,667 | ||||||||
Total operating expenses | 780,932 | 674,051 | 587,345 | ||||||||
Income from operations | (19,387) | (2,083) | 24,973 | 38,848 | (3,606) | 15,816 | 13,059 | 39,022 | 42,351 | 64,291 | 64,069 |
Interest expense, net | 37,283 | 55,536 | 39,092 | ||||||||
Debt issuance costs | 200 | 4,527 | 0 | ||||||||
Earnings before income taxes | 4,868 | 4,228 | 24,977 | ||||||||
Income tax provision (benefit) | (18,785) | (38,910) | 11,634 | ||||||||
Net income | $ (18,440) | $ 5,171 | $ 12,467 | $ 24,455 | $ 27,341 | $ 1,089 | $ (1,933) | $ 16,641 | $ 23,653 | $ 43,138 | $ 13,343 |
Earnings per share: | |||||||||||
Basic (in usd per share) | $ (0.24) | $ 0.07 | $ 0.17 | $ 0.33 | $ 0.39 | $ 0.02 | $ (0.03) | $ 0.30 | $ 0.31 | $ 0.72 | $ 0.24 |
Diluted (in usd per share) | $ (0.24) | $ 0.06 | $ 0.16 | $ 0.31 | $ 0.37 | $ 0.02 | $ (0.03) | $ 0.29 | $ 0.30 | $ 0.70 | $ 0.23 |
Weighted average shares outstanding: | |||||||||||
Basic (shares) | 77,526 | 76,118 | 75,249 | 74,714 | 70,454 | 56,414 | 56,414 | 56,261 | 75,899 | 59,895 | 56,185 |
Diluted (shares) | 77,526 | 79,710 | 77,858 | 77,837 | 73,256 | 58,459 | 56,414 | 57,934 | 79,041 | 62,035 | 57,001 |
Comprehensive income: | |||||||||||
Net income | $ (18,440) | $ 5,171 | $ 12,467 | $ 24,455 | $ 27,341 | $ 1,089 | $ (1,933) | $ 16,641 | $ 23,653 | $ 43,138 | $ 13,343 |
Unrealized gain (loss) on hedge instruments | 9,488 | 7,613 | (5,116) | ||||||||
Tax provision (benefit) of unrealized gain (loss) on hedge instruments | 2,430 | 2,925 | (1,844) | ||||||||
Comprehensive income | 30,711 | 47,826 | 10,071 | ||||||||
Products | |||||||||||
Revenue: | |||||||||||
Total net revenue | 1,269,612 | 1,129,313 | 980,953 | ||||||||
Costs applicable to revenue (exclusive of depreciation and amortization): | |||||||||||
Total costs applicable to revenue | 511,406 | 456,078 | 390,369 | ||||||||
Services and plans | |||||||||||
Revenue: | |||||||||||
Total net revenue | 267,242 | 245,995 | 215,242 | ||||||||
Costs applicable to revenue (exclusive of depreciation and amortization): | |||||||||||
Total costs applicable to revenue | $ 202,165 | $ 180,888 | $ 154,412 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Loss | Retained Earnings (Accumulated Deficit) | Treasury Stock |
Beginning balance (shares) at Jan. 02, 2016 | 56,088 | |||||
Beginning balance at Jan. 02, 2016 | $ 385,339 | $ 561 | $ 420,386 | $ (11,284) | $ (24,324) | $ 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Tax impact of stock option exercises | (619) | (619) | ||||
Common stock issuances (shares) | 142 | |||||
Common stock issuances | 1,041 | $ 1 | 1,040 | |||
Share based compensation | 4,293 | 4,293 | ||||
Repurchase of stock options | (167) | (167) | ||||
Purchase of treasury stock (shares) | (28) | |||||
Purchase of treasury stock | (377) | (144) | (233) | |||
Unrealized gain on hedge instruments, net of tax | (3,272) | (3,272) | ||||
Net income | 13,343 | 13,343 | ||||
Ending balance (shares) at Dec. 31, 2016 | 56,202 | |||||
Ending balance at Dec. 31, 2016 | 399,581 | $ 562 | 424,789 | (14,556) | (10,981) | (233) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Dividends to stockholders | (170,983) | (170,983) | ||||
Issuance of common stock, net (shares) | 18,452 | |||||
Issuance of common stock | 373,024 | $ 184 | 372,840 | |||
Share based compensation | 5,152 | 5,152 | ||||
Unrealized gain on hedge instruments, net of tax | 4,688 | 4,688 | ||||
Net income | 43,138 | 43,138 | ||||
Ending balance (shares) at Dec. 30, 2017 | 74,654 | |||||
Ending balance at Dec. 30, 2017 | 654,600 | $ 746 | 631,798 | (9,868) | 32,157 | (233) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of common stock, net (shares) | 3,564 | |||||
Issuance of common stock | 19,802 | $ 36 | 19,766 | |||
Share based compensation | 20,939 | 20,939 | ||||
Purchase of treasury stock (shares) | (51) | |||||
Purchase of treasury stock | (1,928) | (1,928) | ||||
Unrealized gain on hedge instruments, net of tax | 7,058 | 7,058 | ||||
Net income | 23,653 | |||||
Ending balance (shares) at Dec. 29, 2018 | 78,167 | |||||
Ending balance at Dec. 29, 2018 | $ 743,154 | $ 782 | $ 672,503 | $ (2,810) | $ 74,840 | $ (2,161) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Cash flows from operating activities: | |||
Net income | $ 23,653 | $ 43,138 | $ 13,343 |
Adjustments to reconcile net income to cash provided by operating activities: | |||
Depreciation and amortization | 74,339 | 61,974 | 52,677 |
Amortization of loan costs | 1,848 | 7,078 | 3,906 |
Asset impairment | 17,630 | 4,117 | 7,132 |
Deferred income tax expense (benefit) | (19,340) | (39,997) | 10,281 |
Non-cash stock option compensation | 20,939 | 5,152 | 4,293 |
Non-cash inventory adjustments | 3,868 | 5,496 | 1,728 |
Bad debt expense | 7,107 | 8,035 | 4,052 |
Debt issuance costs | 200 | 4,527 | 0 |
Other | 2,413 | 1,188 | 1,028 |
Changes in operating assets and liabilities: | |||
Accounts receivable, net | (14,649) | (16,858) | (9,075) |
Inventories | (28,739) | (9,583) | (13,827) |
Other assets | (7,011) | (2,075) | (4,153) |
Accounts payable | 7,934 | (3,692) | 5,616 |
Deferred revenue | 3,839 | 6,787 | 9,550 |
Other liabilities | 12,597 | 14,965 | 11,037 |
Net cash provided by operating activities | 106,628 | 90,252 | 97,588 |
Cash flows from investing activities: | |||
Purchase of property and equipment | (104,493) | (93,219) | (90,026) |
Purchase of investments | 0 | (1,500) | (1,000) |
Other | 272 | 136 | 54 |
Net cash used for investing activities | (104,221) | (94,583) | (90,972) |
Cash flows from financing activities: | |||
Proceeds from issuance of long-term debt | 200,000 | 174,924 | 0 |
Proceeds from issuance of common stock | 19,802 | 373,024 | 915 |
Principal payments on long-term debt | (204,275) | (367,660) | (6,515) |
Purchase of treasury stock | (1,928) | 0 | (188) |
Payments on capital lease obligations | (1,802) | (940) | (587) |
Debt issuance costs | (1,400) | (4,527) | 0 |
Dividend to stockholders | 0 | (170,983) | 0 |
Other | 0 | 0 | (199) |
Net cash provided by (used for) financing activities | 10,397 | 3,838 | (6,574) |
Net change in cash, cash equivalents and restricted cash | 12,804 | (493) | 42 |
Cash and cash equivalents and restricted cash, beginning of year | 5,194 | 5,687 | 5,645 |
Cash and cash equivalents and restricted cash, end of year | 17,998 | 5,194 | 5,687 |
Supplemental cash flow information: | |||
Cash paid for interest | 33,469 | 47,090 | 34,873 |
Cash paid (received) for taxes | 1,447 | 2,647 | (415) |
Property and equipment accrued at the end of the period | 14,078 | 10,782 | 9,202 |
Fixed assets acquired under capital lease obligations | 14,303 | 10,117 | 1,004 |
Non-cash issuance of common shares | 446 | 0 | 157 |
Non-cash purchase of treasury stock | (446) | 0 | (188) |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract] | |||
Total cash, cash equivalents and restricted cash | $ 5,194 | $ 5,687 | $ 5,645 |
Business and Significant Accoun
Business and Significant Accounting Policies | 12 Months Ended |
Dec. 29, 2018 | |
Accounting Policies [Abstract] | |
Business and Significant Accounting Policies | Nature of Operations National Vision Holdings, Inc. (“NVHI,” the “Company,” “we,” “our,” or “us”) is a holding company whose operating subsidiaries include its indirect wholly owned subsidiary, National Vision, Inc. (“NVI”) and NVI’s direct wholly owned subsidiaries. We are a leading value retailer of eyeglasses and contact lenses in the United States. We operated 1,082 and 1,013 retail optical locations in the United States and its territories as of the fiscal years ended December 29, 2018 and December 30, 2017 , respectively, through our five store brands, including America’s Best Contacts and Eyeglasses (“America’s Best”), Eyeglass World, Vista Optical locations on U.S. Army/Air Force military bases (“Military”) and within Fred Meyer (“Fred Meyer”) stores, and our management and services arrangement with Walmart (“legacy”). We sell contact lenses and optical accessory products to retail customers through our wholly owned e-commerce subsidiary, Arlington Contact Lens Service, Inc. (“AC Lens”). AC Lens operates several of its own proprietary retail web sites and web sites on behalf of certain independent retailers and insurance companies. AC Lens also distributes contact lenses at its cost to Walmart and Sam's Club store locations and earns a fulfillment fee per order shipped. Our wholly-owned subsidiary is a specialized health maintenance organization (“HMO”), FirstSight Vision Services, Inc. (“FirstSight”) that is licensed as a single-service health plan under California law. FirstSight issues individual vision care benefit plans in connection with our America’s Best operations in California, and provides or arranges for the provision of optometric services at the offices next to certain Walmart stores throughout California. Fiscal Year We operate on a retail fiscal calendar that results in a given fiscal year consisting of a 52- or 53-week period ending on the Saturday closest to December 31. In a 52-week fiscal year, each quarter contains 13 weeks of operations; in a 53-week fiscal year, each of the first, second and third quarters includes 13 weeks of operations and the fourth quarter includes 14 weeks of operations. References herein to “fiscal year 2018 ,” “fiscal year 2017 ,” and “fiscal year 2016 ,” relate to the 52 weeks ended December 29, 2018 , December 30, 2017 and December 31, 2016 , respectively. Unless otherwise stated, references to years in this report relate to fiscal years rather than calendar years. Basis of Presentation and Principles of Consolidation We prepare our consolidated financial statements in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The consolidated financial statements include our accounts and those of our subsidiaries, all of which are wholly-owned. All intercompany balances and transactions have been eliminated in consolidation. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Initial and Secondary Public Offerings On October 30, 2017, we completed an initial public offering of our common stock (“IPO”) in which we issued and sold 18,170,000 shares, including 2,370,000 shares pursuant to the exercise in full of the underwriters’ option to purchase additional shares. The shares sold in the offering were registered under the Securities Act pursuant to our Registration Statement on Form S-1 (File No. 333-220719), which was declared effective by the Securities and Exchange Commission on October 25, 2017 . The shares were sold at an initial offering price of $22.00 per share, which generated net proceeds of approximately $375.8 million to the Company, after deducting underwriting discounts and commissions of approximately $24.0 million which included $0.7 million paid to KKR Capital Markets LLC (“KCM”), an affiliate of Kohlberg Kravis Roberts & Co. (“KKR Sponsor”), for underwriting services in connection with the IPO. We primarily used the proceeds from the IPO to repay $125.0 million in outstanding aggregate principal amount of our second lien term loans and approximately $235.0 million of the outstanding principal amount of our Term Loan B under our first lien credit agreement and accrued and unpaid interest thereon. The repayment resulted in a retirement of debt in the amount of $353.3 million . Additionally, we paid $4.8 million of transaction related costs which are recorded as a charge against additional paid-in capital included in the consolidated balance sheets. The remaining $11.0 million of the proceeds was used for general corporate purposes, and payment of the termination fees described below. NVI was party to a Monitoring Agreement, dated as of March 14, 2014 , with KKR Sponsor and Berkshire Partners LLC (“Berkshire”), which was terminated automatically in accordance with its terms upon the completion of the IPO. The Company paid termination fees of approximately $3.6 million and $0.8 million to KKR Sponsor and Berkshire, respectively, recorded in selling, general and administrative expenses (“SG&A”) in the consolidated statements of operations. Affiliates of KKR Sponsor and Berkshire retained 58.2% and 13.6% ownership interest, respectively, in the Company after the IPO. During fiscal year 2018, we completed three underwritten public offerings in which KKR Sponsor, Berkshire and certain management stockholders (“selling stockholders”) sold an aggregate of 42,914,852 shares of the Company’s common stock. The Company did not receive any proceeds from the offerings. However, the second and third offerings resulted in certain incentive compensation expenses relating to vesting of performance-based stock options and a payout under a non-executive long-term incentive plan. See Note 5 . “Stock Incentive Plan” for details. Affiliates of KKR Sponsor and Berkshire retained 11.7% and 2.7% ownership interest, respectively, as of fiscal year end 2018 . Second Amended and Restated Certificate of Incorporation and Bylaws The Company’s Second Amended and Restated Certificate of Incorporation became effective in connection with the completion of the IPO on October 30, 2017 , which among other things, provides that the Company’s authorized capital stock consists of 200,000,000 shares of common stock and 50,000,000 shares of preferred stock, par value $0.01 per share. The Company’s bylaws were also amended and restated as of October 30, 2017 . Stock Split On October 12, 2017 , the Company’s Board of Directors approved a 1.96627 -for-one reverse stock split of the Company’s common stock, effective October 24, 2017 . The accompanying consolidated financial statements and notes thereto give retroactive effect to the reverse stock split for all periods presented. Cash and Cash Equivalents Cash consists of currency and demand deposits with financial institutions. We consider all highly liquid investments with an original maturity of three months or less at the date of purchase to be cash equivalents. We maintain the majority of our cash and cash equivalents in one large national banking institution. Such amounts are in excess of federally insured limits. We also review cash balances on a bank by bank basis to identify book overdrafts. Book overdrafts occur when the amount of outstanding checks exceed the cash deposited at a bank. We reclassify book overdrafts, if any, to accounts payable in the accompanying consolidated balance sheets. Accounts Receivable, Net Accounts receivable associated with revenues consist primarily of trade receivables and credit card receivables. Trade receivables consist primarily of receivables from managed care payors and receivables from major retailers. While we have relationships with almost all vision care insurers in the United States and with all of the major carriers, currently, a relatively small number of payors comprise the majority of our managed care revenues, subjecting us to concentration risk. Trade receivables and credit card receivables are included in accounts receivable, net, on our consolidated balance sheets, and are presented separately in Note 2 . “Details of Certain Balance Sheet Accounts.” Accounts receivable are reduced by allowances for amounts that may become uncollectible. Estimates of our allowance for uncollectible accounts are based on our historical and current operating, billing and collection trends. Bad debt expense recognized on our receivables were approximately $7.1 million , $8.0 million and $4.1 million for the fiscal years 2018 , 2017 and 2016 , respectively. Inventories The cost of inventory is determined using the weighted average cost method. Inventories at retail stores are comprised of finished goods and are valued at the lower of cost or estimated net realizable value (“NRV”). Manufactured inventories are valued using absorption accounting which includes material, labor, other variable costs and other applicable manufacturing overhead. Inventory values are adjusted for estimated obsolescence and written down to NRV based on estimates of current and anticipated demand, customer preference, merchandise age, planned promotional activities, contact lens vendor return acceptance activity, and estimates of future retail sales prices. Shrinkage is estimated and recorded throughout the period as a percentage of cost of sales based on historical results and current inventory levels. Actual shrinkage is recorded throughout the year based upon periodic physical counts. See Note 2 . “Details of Certain Balance Sheet Accounts” for further details. The Company’s inventory consists primarily of contact lenses, eyeglass frames and unprocessed eyeglass lenses. A significant portion of our inventory is supplied by a small number of key vendors. During fiscal year 2018 , 93% of contact lens expenditures were with three vendors, 52% of frame expenditures were with two vendors and 90% of lens expenditures were with one vendor. This exposes us to concentration of vendor risk. Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets primarily include prepaid software maintenance and licensing fees, prepaid rent, prepaid advertising, prepaid insurance, supplies inventory and income taxes receivable. Property and Equipment Property and equipment (“P&E”) is stated at cost less accumulated depreciation. Depreciation associated with P&E is included in depreciation and amortization in the accompanying consolidated statements of operations. When we retire or otherwise dispose of P&E, the cost and related accumulated depreciation are removed from the accounts and any gain or loss on sale of such assets is included in SG&A in the consolidated statements of operations. Major replacements, remodeling, or betterments are capitalized. Expenditures for maintenance and repairs are charged to SG&A. P&E is depreciated for financial accounting purposes using the straight-line method over the following estimated useful lives: Buildings 34 years Equipment 5 - 7 years Information systems hardware and software (a) 2 - 5 years Furniture and fixtures 6 years Leasehold improvements (b) 10 years P&E under capital leases (b) 10 years ____________ (a) Costs of developing or obtaining software for internal use, such as direct costs of materials or services and internal payroll costs related to the software development projects, are capitalized to information systems hardware and software. (b) Depreciation of leasehold improvements is recognized over the shorter of the estimated useful life of the asset or the term of the lease. The term of the lease includes renewal options for additional periods if the exercise of the renewal is considered to be reasonably assured. Goodwill and Intangible Assets Indefinite-lived, non-amortizing intangible assets include goodwill and our trademarks and tradenames and are evaluated annually for impairment. Our annual testing date for impairment of goodwill and indefinite-lived intangible assets is the first day of the fourth fiscal quarter, which for fiscal years 2018 and 2017 was September 30, 2018 , and October 1, 2017, respectively. Definite-lived, amortizing intangible assets primarily consist of our contracts and relationships with certain retailers and our customer database tool. We amortize definite-lived intangible assets on a straight-line basis over their estimated useful lives, ranging from four to 23 years . Amortization expense associated with definite-lived intangible assets is included in depreciation and amortization in the accompanying consolidated statements of operations. Goodwill impairment is present if a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying value of goodwill. We consider each of our operating segments to be reporting units. We estimate the fair value of our reporting units using the income approach, which is based on a discounted cash flow analysis and calculate the fair value of reporting units by estimating after-tax cash flows discounted using the Company’s consolidated weighted average cost of capital. The cash flows used in the analysis are based on financial forecasts developed internally by management and require significant judgment. The significant unobservable inputs used in the fair value measurement of the reporting units are revenue growth rate, cost of sales, payroll expense growth rate and other store expenses growth rate. These assumptions are sensitive to future changes in the business profitability, changes in our business strategy and external market conditions, among other factors. A decrease to the long term revenue growth rate assumption or an increase to the expense growth rate assumptions could require us to record additional impairment charges for goodwill, which could lead to decreased assets and reduced net income. If impairment indicators related to amortizing intangible assets are present, we estimate cash flows expected to be generated over the remaining useful lives of the related assets based on current projections. If the projected net undiscounted cash flows are less than the carrying value of the related assets, we then measure impairment based on a discounted cash flow model and record an impairment charge as the excess of carrying value and estimated fair value. We evaluate non-amortizing trademarks and trade names for impairment annually or whenever events or changes in circumstances indicate that those assets may be impaired. We use the relief-from-royalty method to estimate fair value, whereby an estimated royalty rate is determined based on comparable licensing arrangements, which is then applied to the revenue projections for the subject asset. The estimated fair value is calculated using a discounted cash flow analysis. We record an impairment charge as the excess of carrying value over estimated fair value. See Note 3 . “Goodwill and Intangible Assets” for further detail on impairment of goodwill and intangible assets. Other Assets Other non-current assets consist primarily of our investment in and loans to our equity method investee, below market leases, self-insurance recoveries and technology support service contracts. Equity Method Investment The Company has an investment in a private start-up company whose principal business is licensing software to eyeglass retailers. We evaluate the recoverability of our investment by first reviewing the investment for any indicators of impairment. If indicators are present, we estimate the fair value of the investment. If the carrying value of the investment exceeds the estimated fair value, we make an assessment of whether the impairment is other-than-temporary (“OTTI”). In making this assessment, we consider the length of time and the extent to which fair value has been less than cost and our intent and ability to retain our interest long enough for a recovery in market value. Based on our current year assessment, we did not identify OTTI in our equity method investment. See Note 9 . “Equity in Net Assets of Non-Consolidated Investee,” for further discussion relating to this investment. Fair Value Measurement of Assets and Liabilities (Non-Recurring Basis) Non-financial assets such as P&E, intangible assets and goodwill are subject to nonrecurring fair value measurements if impairment indicators are present. Factors we consider important that could trigger an impairment review include a significant under-performance compared to expected operating results, a significant or adverse change in customer business climate, or a significant negative industry or economic trend. Deferred Financing Costs and Loan Discounts Costs incurred in connection with long-term debt which are paid directly to the Company’s lenders and to third parties are treated as debt discounts. Loan discounts are amortized over the term of the related financing agreement and included in interest expense in the accompanying consolidated statements of operations. Self-Insurance Accruals We are primarily self-insured for workers’ compensation, employee health benefits and general liability claims. We record self-insurance liabilities based on claims filed, including the development of those claims and an estimate of claims incurred but not yet reported. Should a different amount of claims occur compared to what was estimated, or costs of the claims increase or decrease beyond what was anticipated, reserves may need to be adjusted accordingly. We periodically update our estimates and record such adjustments in the period in which such determination is made. Self-insurance reserves are recorded in other payables and accrued expenses (current portion) and other non-current liabilities on an undiscounted basis in the accompanying consolidated balance sheets. We reinsure worker’s compensation and medical claims above our retention levels of $0.3 million per claim and $0.2 million per individual, respectively. Estimated recoveries from reinsurance are included in prepaid expenses and other current assets in the amounts of $0.8 million and $0.6 million (current portion) as of fiscal year end 2018 and fiscal year end 2017 , respectively, and other assets in the amounts of $1.1 million and $1.0 million (non-current portion) as of fiscal year end 2018 and fiscal year end 2017 , respectively, in the accompanying consolidated balance sheets. The accrued obligation for self-insurance programs was $8.1 million and $6.9 million (current portion) and $5.1 million and $4.6 million (non-current portion) as of fiscal year end 2018 and fiscal year end 2017 , respectively. Derivative Financial Instruments The Company uses interest rate swaps to manage its exposure to adverse fluctuations in interest rates by converting a portion of our debt portfolio from a floating rate to a fixed rate. We designate our interest rate swaps as cash flow hedges and formally document our hedge relationships, including identification of the hedging instruments and the hedged items, as well as our risk management objectives and strategies for undertaking the hedge transactions. We record all interest rate swaps in our consolidated balance sheets on a gross basis at fair value. Fair value represents estimated amounts we would receive or pay upon a termination of interest rate swaps prior to their scheduled expiration dates. The fair value was based on information that is model-driven and whose inputs were observable (Level 2 inputs). We do not hold or enter into financial instruments for trading or speculative purposes. The gain or loss resulting from fair value adjustments on cash flow hedges are recorded in accumulated other comprehensive loss (“AOCL”) in the accompanying consolidated balance sheets until the hedged item is recognized as interest expense in the consolidated statements of operations. We perform periodic assessments of the effectiveness of our derivative contracts designated as hedges, including the possibility of counterparty default. To manage credit risk associated with our interest rate hedging program, we select counterparties based on their credit ratings and limit our exposure to any single counterparty. The counterparties to our derivative contracts are major domestic financial institutions with investment grade credit ratings. The impact of credit risk, as well as the ability of each party to fulfill its obligations under our derivative financial instruments, is considered in determining the fair value of the contracts. Credit risk has not had a significant effect on the fair value of our derivative instruments. We do not have any credit risk-related contingent features or collateral requirements associated with our derivative contracts. See Note 13 . “Interest Rate Derivatives” for further details. Accumulated Other Comprehensive Loss AOCL is defined as the change in equity of a business enterprise during a period from transactions and other events and circumstances from non-owner sources. Accumulated other comprehensive loss, net of income tax, is entirely comprised of the cumulative unrealized loss on our hedging instruments. See Note 16 . “Accumulated Other Comprehensive Loss” for details of reclassifications out of AOCL. Revenue Recognition Product revenues include sales of prescription and non-prescription eyewear, contact lenses, related accessories to retail customers (including those covered by managed care) and sales of inventory in which our customer is another retail entity. Revenues from services and plans include eye exams, eye-care club membership fees, product protection plans (i.e. warranties) and HMO membership fees. Service revenue also includes fees we earn for managing certain Vision Centers and performing laboratory processing services for our legacy partner. At our America’s Best brand, our signature offer is two pairs of eyeglasses and a free eye exam for one low price (“ two -pair offer”). Since an eye exam is a key component in the ability for acceptable prescription eyewear to be delivered to a customer, we concluded that the eye exam service, while capable of being distinct from the eyeglass product delivery, was not distinct in the context of the two -pair offer. As a result, we do not allocate revenue to the eye exam associated with the two -pair offer, and we record all revenue associated with the offer in owned & host net product sales when the customer has received and accepted the merchandise. Our retail customers generally make payments for prescription eyewear products at the time they place an order. Amounts we collect in advance for undelivered merchandise are reported as unearned revenue in the accompanying consolidated balance sheets. Unearned revenue at the end of a reporting period is estimated based on processing and delivery times throughout the current month and generally ranges from four to 10 days with most sales having an average processing versus delivery time difference of seven to eight days. All unearned revenue at the end of a reporting period is recognized in the next fiscal period Revenue is recognized net of sales taxes and returns. The returns allowance is based on historical return patterns. Provisions for estimated returns are established and the expected costs continue to be recognized as contra-revenue when the products are sold. Refer to Note 7 . “Revenue from Contracts With Customers” for further details of our revenues. Costs Applicable To Revenue Costs applicable to revenue consist primarily of cost of products sold and costs of administering services and plans. Costs of products sold include (i) costs to procure non-prescription eyewear, contacts and accessories which we purchase and sell in their finished form, (ii) costs to manufacture finished prescription eyeglasses, including direct materials, labor and overhead and (iii) remake costs, warehousing and distribution expenses and internal transfer costs. Costs of services and plans include costs associated with warranty programs, eye-care club memberships, HMO memberships, eye-care practitioner and eye exam technician payroll, taxes and benefits and optometric and other service costs. Depreciation and amortization are excluded from costs applicable to revenue and are presented as separate items on the accompanying consolidated statements of operations. As a component of the Company's procurement program, the Company frequently enters into contracts with its vendors that provide for payments of rebates or other allowances. These vendor payments are reflected in the carrying value of the inventory when earned or as progress is made toward earning the rebate or allowance and as a component of cost of products as the inventory is sold. Selling, General and Administrative Expenses SG&A includes store associate payroll, taxes and benefits, occupancy and other store expenses, advertising and promotion, field supervision, and corporate support. Advertising and promotion costs, including online marketing arrangements, newspaper, direct mail, television and radio, are recorded in SG&A and expensed at the time the advertising first occurs. Production costs of future media advertising and related promotional campaigns are deferred until the advertising events occur. Non-capital expenditures associated with opening new stores, including rent, store remodels, marketing expenses, travel and relocation costs, and training costs, are recorded in SG&A as incurred. Advertising expenses were $107.5 million , $93.2 million and $85.4 million for fiscal years 2018 , 2017 and 2016 , respectively. Leases We lease our retail stores, optometric examination offices, distribution centers, vehicles, office space and optical laboratories, with the exception of our St. Cloud, Minnesota lab, which we own. Rent expense on operating leases is recorded in SG&A on a straight-line basis over the term of the lease, commencing on the date the Company obtains the right to use the leased property. Generally, the Company is required to pay base rent, real estate taxes, maintenance and insurance. Certain of our lease agreements include rent holidays and rent escalation provisions and may include contingent rent provisions for sales in excess of specified levels. The Company recognizes rent holidays, including the time period during which the Company has control of the property prior to the opening of the store, as well as escalating rent provisions, as deferred rent expense and amortizes these balances on a straight-line basis over the term of the lease. Most leases include one or more options to renew, with renewal terms that can extend the lease term from one to 10 years or more. The lease term includes renewal option periods when the renewal is reasonably assured, and is consistent with the depreciable life of corresponding leasehold improvements. Deferred rent is included in non-current other liabilities on the accompanying consolidated balance sheets. For capital leases, a lease asset is recorded as P&E and corresponding amounts are recorded as debt obligations at an amount equal to the lesser of the net present value of minimum lease payments to be made over the lease term or the fair value of the property. The Company allocates capital lease payments to reductions in the lease obligation and interest expense using the effective interest method. See Note 4 . “Long-term Debt” for further details related to our capital lease commitments and Note 12 . “Commitments and Contingencies” for further details related to our operating lease commitments. Tenant improvement allowances (“TIAs”) are contractual amounts received by a lessee from a lessor for improvements made to leased properties by the lessee. TIAs are recorded in other non-current liabilities in the accompanying consolidated balance sheets, and are amortized as a reduction in rental expense over the life of the respective leases. Receivables for TIA’s are recorded in accounts receivable in the accompanying consolidated balance sheets. In the event a leased store is closed before the expiration of the lease, the discounted remaining lease obligation (less estimated sublease rental income), asset impairment charges related to improvements and fixtures, inventory write-downs and other miscellaneous expenses are recognized when the store closes. Accruals for store closure costs are recorded in current and non-current other liabilities in the accompanying consolidated balance sheets and are not material. Stock-Based Compensation We measure stock-based compensation cost, which consists of grants of stock options, restricted stock units and restricted shares to employees, consultants and non-employee directors, based on the estimated grant date fair value of the awards. We recognize compensation expense for service-based vesting awards over the requisite service period. For awards that are subject to performance conditions, we recognize compensation expense once achievement of the conditions is considered to be probable. See Note 5 . “Stock Incentive Plan” for further details related to our stock-based compensation plans. Impairment of P&E We evaluate impairment of long-lived tangible store assets at the store level, which is the lowest level at which independent cash flows can be identified, when events or conditions indicate the carrying value of such assets may not be recoverable. If the store's projected undiscounted net cash flows expected to be generated by the related assets over the shorter of the remaining useful life or the remaining term of the lease are less than the carrying value of the subject assets, we then measure impairment based on a discounted cash flow model and record an impairment charge as the excess of carrying value and estimated fair value using Level 3 fair valuation inputs. As a result of our tests for impairment of our long-lived tangible store assets classified as held and used, an impairment of $2.5 million , $1.6 million and $1.2 million was recorded for fiscal years 2018 , 2017 and 2016 , respectively. There was $0.1 million remaining fair value of the assets that were impaired during fiscal year 2018 and no remaining fair value of the assets that were impaired during fiscal year 2017 . We assess non-store tangible assets, including capitalized software costs in use or under development, for impairment if events or changes in circumstances indicate that the carrying value of those assets may not be recoverable. During fiscal years 2018 and 2016 there was no impairment of capitalized software. There was $1.5 million in impairment of capitalized software during fiscal year 2017 . Income Taxes We account for deferred income taxes based on the asset and liability method. The Company must make certain estimates and judgments in determining income tax expense. We are required to determine the aggregate amount of income tax expense to accrue and the amount which will be currently payable or refundable based upon tax statutes of each jurisdiction in which the Company does business. Deferred income taxes are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets also include future tax benefits to be derived from the utilization of tax loss carry-forwards and application of certain carry-forward credits. The net carrying amount of deferred income tax assets and liabilities is recorded in non-current deferred income tax liabilities in the accompanying consolidated balance sheets. Deferred income taxes are measured using enacted tax rates in effect for the years in which those differences are expected to be recovered or settled. The effect on deferred taxes from a change in the tax rate is recognized through continuing operations in the period that includes the enactment of the change. Changes in tax laws and rates could affect recorded deferred tax assets and liabilities in the future. A valuation allowance is recorded if it is more-likely-than-not that some portion of a deferred tax asset will not be realized. Valuation allowances are released as positive evidence of future taxable income sufficient to realize the underlying deferred tax assets becomes available. We establish a liability for tax positions for which there is uncertainty as to whether the position will ultimately be sustained. We assess our tax positions by determining whether it is more-likely-than-not that the position will be |
Details of Certain Balance Shee
Details of Certain Balance Sheet Accounts | 12 Months Ended |
Dec. 29, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Details of Certain Balance Sheet Accounts | Details of Certain Balance Sheet Accounts In thousands As of As of Accounts receivable, net: Trade receivables $ 27,356 $ 28,862 Credit card receivables 16,636 10,459 Tenant improvement allowances receivable 5,149 4,794 Other receivables 4,206 2,936 Allowance for uncollectible accounts (2,612 ) (3,858 ) $ 50,735 $ 43,193 In thousands As of As of Inventories: Raw materials and work in process (1) $ 59,946 $ 43,953 Finished goods 56,076 47,198 $ 116,022 $ 91,151 (1) Due to the immaterial amount of estimated work in process and the short lead times for the conversion of raw materials to finished goods, the Company does not separately present raw materials and work in process. In thousands As of As of Property and equipment, net: Land and building $ 3,632 $ 3,608 Equipment 160,958 136,876 Information systems hardware and software 101,809 83,212 Furniture and fixtures 48,992 42,708 Leasehold improvements 186,499 155,369 Construction in progress 40,697 18,375 Property under capital leases 25,446 11,756 568,033 451,904 Less accumulated depreciation 212,916 149,624 $ 355,117 $ 302,280 In thousands As of As of Other payables and accrued expenses: Employee compensation and benefits $ 20,529 $ 21,134 Self-insurance reserves 8,117 6,854 Capital expenditures 14,078 10,782 Advertising 2,076 2,900 Reserves for customer returns and remakes 4,645 4,565 Legacy management and services agreement 5,383 6,000 Fair value of derivative liabilities 3,130 6,969 Supplies and other store support expenses 4,929 3,014 Litigation settlements 3,938 3,942 Other 14,179 11,451 $ 81,004 $ 77,611 In thousands As of As of Other non-current liabilities: Fair value of derivative liabilities $ 3,505 $ 9,155 Tenant improvements (1) 30,851 25,854 Deferred rental expenses 11,926 9,144 Self-insurance reserves 5,114 4,564 Other 2,568 2,185 $ 53,964 $ 50,902 (1) Obligations for tenant improvements are amortized as a reduction of rental expense over the life of the respective leases. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 29, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets During the fourth quarter of fiscal year 2018, as a result of our annual goodwill impairment test, we fully impaired the remaining carrying value of goodwill at Fred Meyer and Military of $11.4 million and $3.7 million , respectively. Management lowered the revenue growth rate assumptions at Fred Meyer and Military resulting in the fair values at these reporting units to be lower than their carrying values. The lower revenue growth rate assumptions at Fred Meyer and Military were primarily the result of recent sales underperformance resulting from decreases in projected customer transaction volume. Fair value exceeded carrying value by a substantial margin (in excess of 75% ) for America’s Best and Eyeglass World. Legacy fair value exceeded carrying value by 21% and represents 8% of consolidated goodwill. No goodwill impairment was identified during fiscal year 2017 . A goodwill impairment of $3.3 million was identified at the AC Lens reporting unit for fiscal year 2016 . The gross carrying amount and accumulated impairment of Company’s goodwill balances for 2018 and 2017 are as follows: As of As of In thousands Gross Carrying Accumulated Gross Carrying Accumulated Owned & Host Segment $ 736,901 $ (19,357 ) $ 736,901 $ (4,226 ) Legacy Segment 60,069 — 60,069 — Corporate/Other 8,107 (8,107 ) 8,107 (8,107 ) $ 805,077 $ (27,464 ) $ 805,077 $ (12,333 ) No impairment of indefinite-lived or definite-lived intangible assets was identified during fiscal years 2018 and 2017 . We recorded impairment of $1.3 million in definite-lived intangible assets during fiscal year 2016 at AC Lens. Indefinite-lived, non-amortizing intangible assets by major asset class are as follows: In thousands As of As of Trademarks and trade names: America's Best $ 200,547 $ 200,547 Eyeglass World 40,000 40,000 $ 240,547 $ 240,547 Definite-lived, amortizing intangible assets by major asset class are as follows: As of As of In thousands Gross Carrying Accumulated Remaining Life Gross Carrying Accumulated Remaining Life Contracts and relationships: Legacy $ 65,000 $ 28,359 6 $ 65,000 $ 22,470 7 Fred Meyer 35,000 7,303 18 35,000 5,787 19 Customer database 4,400 4,224 — 4,400 3,347 1 Other 738 720 — 738 631 1 $ 105,138 $ 40,606 $ 105,138 $ 32,235 Aggregate amortization expense is included in depreciation and amortization in the accompanying consolidated statements of operations. Aggregate future estimated amortization expense is shown in the following table: Fiscal Year In thousands 2019 $ 7,598 2020 7,547 2021 7,405 2022 7,405 2023 7,405 Thereafter 27,172 $ 64,532 |
Long-term Debt
Long-term Debt | 12 Months Ended |
Dec. 29, 2018 | |
Debt Disclosure [Abstract] | |
Long-term Debt | Long-term Debt Long-term debt consists of the following: In thousands As of As of First Lien - Term Loan B, due November 20, 2024 $ 364,300 $ 568,575 First Lien - Term Loan A, due October 9, 2023 200,000 — Total term loans before unamortized discount 564,300 568,575 Unamortized discount (10,673 ) (11,322 ) Total term loans 553,627 557,253 Less current maturities (5,000 ) (5,700 ) Term loans - non-current portion 548,627 551,553 Capitalized lease obligations 24,485 11,985 Less current maturities (2,567 ) (1,558 ) Long-term debt, less current portion and unamortized debt discount $ 570,545 $ 561,980 The dividend discussed in Note 8 . “Related Party Transactions” was funded with $175.0 million in borrowed funds under the Company’s first lien credit agreement, which was then repaid with IPO proceeds, as discussed in Note 1 . "Business and Significant Accounting Policies". Scheduled annual maturities of debt are as follows: Fiscal Year In thousands 2019 $ 5,000 2020 5,000 2021 5,000 2022 10,000 2023 175,000 Thereafter 364,300 $ 564,300 First Lien - Term Loan B On October 31, 2017 and November 20, 2017 , the credit agreement dated as of March 13, 2014 , among Nautilus Acquisition Holdings, Inc., a wholly-owned subsidiary of the Company, NVI, as borrower, Goldman Sachs Bank USA, as administrative agent, collateral agent, and letter of credit issuer, and the lenders from time to time party thereto and the other parties thereto (as amended, restated, supplemented or otherwise modified from time to time, the “first lien credit agreement”) was amended pursuant to separate joinder and amendment agreements (collectively, the “Amendments”) to, among other things, (a) establish new first lien term loans (“First Lien - Term Loan B”) in an aggregate principal amount of $570.0 million to refinance all of the first lien term loans outstanding immediately prior to the amendment, (b) extend the maturity of such term loans to November 20, 2024 and (c) reprice the rates applicable to such term loans by amending the definition of Applicable Margin (as defined in the first lien credit agreement). The Amendments further provide that the Applicable Margins for First Lien - Term Loan B will be based on NVI’s public corporate credit rating from Moody’s as follows: (i) if NVI’s rating is lower than Ba3 (stable), the Applicable Margin will be 2.75% for LIBOR Loans and 1.75% for ABR Loans and (ii) if NVI’s rating is Ba3 (stable) or better, the Applicable Margin will step down to 2.50% for LIBOR Loans and 1.50% for ABR Loans, as specified in the Amendments. We are required to prepay an amount equal to 50% of the preceding fiscal year’s excess cash flow, as defined in the agreement. The required prepayment is reduced to 25% of the preceding year’s excess cash flow if our consolidated earnings before interest, tax, depreciation and amortization (“Credit Agreement EBITDA”) ratio, as defined in the agreement, is less than or equal to 4.25 to 1.00 . No prepayment is required if such ratio is less than or equal to 4.00 to 1.00 . We have not been required to make a prepayment related to our first lien credit agreement. First Lien - Term Loan B contains covenants that, among other things, limit our ability to incur additional debt, create liens against our assets, make acquisitions, pay dividends or distributions on our stock, merge or consolidate with another entity and transfer or sell assets. On September 7, 2018 , Moody’s announced that it had upgraded NVI’s public corporate credit rating from B1 to Ba3 (stable) and as a result, the Applicable Margin to LIBOR for this term loan decreased from 2.75% to 2.50% . Additionally, $200.0 million of the proceeds from the issuance of new term loans in the current year as described below, was used to prepay a portion of First Lien - Term Loan B on October 9, 2018 . As a result of the $200.0 million prepayment, no required principal payments are due until November 24, 2024 . First Lien - Term Loan A On October 9, 2018 (the “Closing Date”), our first lien credit agreement, dated as of March 13, 2014 (as amended, the “Credit Agreement”), was amended pursuant to a joinder and amendment agreement (the “October 2018 Joinder”) to, among other things, (i) establish new first lien term loans in an aggregate principal amount of $200.0 million (“First Lien - Term Loan A”) to prepay a portion of First Lien - Term Loan B outstanding immediately prior to the Closing Date, (ii) set the maturity of such term loans to October 9, 2023 and (iii) set the rates applicable to such term loans. Pursuant to the October 2018 Joinder, the initial new Applicable Margins are (i) 1.75% for the new first lien term loans that are LIBOR Loans (as defined in the Credit Agreement) and (ii) 0.75% for the new first lien term loans that are ABR Loans (as defined in the Credit Agreement). The October 2018 Joinder further provides that following the Closing Date, the above Applicable Margins for First Lien - Term Loan A will be based on either (x) NVI’s total leverage ratio or (y) NVI’s public corporate credit rating from Moody’s and/or NVI’s public corporate credit rating from S&P as follows: (a) if NVI’s total leverage ratio is less than 2.00 to 1.00 or NVI’s rating is either Ba2 (stable) or better from Moody’s or BB (stable) or better from S&P, the Applicable Margin will be 1.25% for LIBOR Loans and 0.25% for ABR Loans, (b) if NVI’s total leverage ratio is equal to or greater than 2.00 to 1.00 , but less than 2.50 to 1.00 , or NVI’s rating is BB- (stable) from S&P, the Applicable Margin will be 1.50% for LIBOR Loans and 0.50% for ABR Loans and (c) if NVI’s total leverage ratio is equal to or greater than 2.50 to 1.00 , the Applicable Margin will be 1.75% for LIBOR Loans and 0.75% for ABR Loans, as specified in the October 2018 Joinder. First Lien - Term Loan A will amortize in equal quarterly installments equal to 2.50% per annum in the first three years of the loan and 5.00% per annum thereafter. In addition, pursuant to the October 2018 Joinder, solely with respect to the First Lien - Term Loan A, commencing on the fiscal quarter ending on December 29, 2018 , the Company will not permit (i) the Consolidated Total Debt to Consolidated EBITDA Ratio (as defined in the Credit Agreement) as of the last day of any fiscal quarter of the Company to be greater than 4.75 to 1.00 or (ii) the Consolidated Interest Coverage Ratio (as defined in the Credit Agreement) of the Company as of the last day of any fiscal quarter of the Company to be less than 3.00 to 1.00 . First Lien - Revolving Credit Facility The first lien credit agreement provides for a revolving credit facility which was amended in October 2017 pursuant to a joinder and amendment agreement to (a) increase the size of the credit facility from $75.0 million to $100.0 million and (b) extend the maturity of such facility to October 15, 2022. Amounts borrowed under the revolving credit facility bear interest, at our election, at either 2.00% over ABR or 3.00% over LIBOR. These interest rate spreads will decline to 1.75% and 2.75% , respectively, if our Credit Agreement EBITDA ratio declines to 4.25 to 1.00 or less, and the spreads will further decline to 1.50% and 2.50% , respectively, if such ratio declines to 3.75 to 1.00 or less. We may use up to $20.0 million of the revolving credit facility to issue letters of credit. Letter of credit fees accrue at the same rate as the then-applicable LIBOR spread. Our credit agreement also provides that, if aggregate borrowings (inclusive of certain letters of credit) under our revolving credit facility exceed 30% of the total revolving commitment, the ratio of debt under our first lien credit agreement to Credit Agreement EBITDA may not, on the last day of the applicable measurement period, exceed 7.75 to 1.00 . Capital Leases Our obligations under capital leases are included in the consolidated balance sheets as long-term debt, less current portion and debt discount (non-current portion) and current maturities of long-term debt (current portion). Future minimum lease payments required under our capital leases as of fiscal year end 2018 are as follows: Fiscal Year In thousands 2019 $ 5,786 2020 5,500 2021 5,395 2022 5,324 2023 4,346 Thereafter 13,062 Total minimum lease payments 39,413 Less: Amount representing interest (14,928 ) Present value of net minimum lease payments 24,485 Less: Current maturities of capital lease obligations (2,567 ) Capital lease obligations - non-current portion $ 21,918 |
Stock Incentive Plans
Stock Incentive Plans | 12 Months Ended |
Dec. 29, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Incentive Plans | Stock Incentive Plans 2014 Stock Incentive Plan In 2014 , our Board of Directors and stockholders of the Company approved the 2014 Stock Incentive Plan for Key Employees of National Vision Holdings, Inc. (formerly known as Nautilus Parent, Inc.) and its Subsidiaries (the “2014 Stock Incentive Plan”). Only stock options to purchase common stock of NVHI have been granted under the 2014 Stock Incentive Plan. The Board of Directors determined the exercise price of service-based and performance-based options on the basis of the fair value of the common stock as of the grant date. Due to the limited number of participants in the plan and high levels of retention among participants, forfeitures of outstanding service-based options are not expected to be material. Therefore, all service-based options outstanding at fiscal year end 2018 are expected to vest. Service-based and performance-based options have a contractual maturity of 10 years . There were 10,988,827 stock options authorized for issuance pursuant to the 2014 Stock Incentive Plan, of which 6,618,288 are issued and outstanding, and 468,975 are authorized but unissued as of fiscal year end 2018 . Performance-based awards under the 2014 Stock Incentive Plan Vesting of performance-based options is conditional upon the achievement by KKR Sponsor, with respect to its investment in the Company, of both a minimum internal rate of return and a minimum multiple of invested capital and then increases proportionally as the multiple of invested capital increases up to a defined target. Compensation expense of $16.1 million and $0.4 million was recorded during fiscal years 2018 and 2017 , respectively, from the achievement of vesting conditions resulting from secondary offerings previously discussed in Note 1 . “Business and Significant Accounting Policies.” No compensation expense was recorded relating to performance-based options for fiscal year 2016 since achievement of vesting conditions was not considered probable. Secondary offerings also resulted in $7.0 million of cash compensation expense associated with a non-executive long-term incentive plan for fiscal year 2018 , which is included in SG&A in the accompanying statement of operations. The following table summarizes performance-based stock option activity: Number of Options Outstanding Weighted Average Exercise Price ($) Weighted Average Remaining Contractual Life (Years) Aggregate Intrinsic Value (In Thousands) Outstanding options at December 30, 2017 6,524,152 6.07 Exercised (2,051,033 ) 5.87 Forfeited (329,338 ) 5.33 Outstanding options at December 29, 2018 4,143,781 6.23 5.91 $ 94,291 Vested and exercisable at December 29, 2018 1,737,952 5.87 5.79 $ 40,172 There were no grants of performance-based options during fiscal year 2018 . The weighted average grant date fair value of performance-based options granted during fiscal years 2017 and 2016 was $3.68 and $3.49 , respectively. The fair value of performance-based options vested during fiscal years 2018 and 2017 was $16.1 million and $0.4 million , respectively. No vesting of performance-based options occurred during fiscal year 2016 . The aggregate intrinsic value of performance-based options exercised during fiscal year 2018 was $70.2 million . No performance-based options were exercised during fiscal years 2017 and 2016 . The grant date fair value of performance-based shares was estimated using Monte Carlo simulation assuming expected term range of 2.37 to 5.00 years , expected volatility range of 46.9% to 65.8% and expected risk free interest rate of 1.19% to 1.51% . Service-based awards under the 2014 Stock Incentive Plan Substantially all service-based options vest in 20% annual increments on each of the first five anniversaries of the grant date. The Company has selected an accelerated method of recording compensation expense associated with service-based options, whereby the total grant date fair value of the awards is amortized 46% , 25% , 16% , 9% , and 4% for years one through five, respectively. The Company recorded $3.1 million , $4.4 million and $4.3 million of compensation expense associated with service-based stock options in SG&A in the accompanying consolidated statements of operations during fiscal years 2018 , 2017 and 2016 , respectively. The following table summarizes service-based stock option activity (amounts reflect the effects of modifications to exercise prices resulting from the recapitalization dividend discussed in Note 8 . “Related Party Transactions”): Number of Options Outstanding Weighted Average Exercise Price ($) Weighted Average Remaining Contractual Life (Years) Aggregate Intrinsic Value (In Thousands) Outstanding options at December 30, 2017 3,822,915 7.22 Exercised (1,278,223 ) 5.67 Forfeited (70,185 ) 7.42 Outstanding options at December 29, 2018 2,474,507 8.02 6.26 $ 51,877 Vested and exercisable at December 29, 2018 1,212,053 7.35 5.81 $ 26,219 There were no grants of service-based options during fiscal year 2018 . The weighted average grant date fair value of service-based options granted during fiscal years 2017 and 2016 was $9.01 and $8.58 , respectively. The fair value of service-based options vested during fiscal years 2018 , 2017 and 2016 was $5.6 million , $4.6 million and $4.3 million , respectively. The aggregate intrinsic value of service-based options exercised during fiscal years 2018 , 2017 and 2016 was $39.6 million , $1.5 million and $0.3 million , respectively. As of December 29, 2018 , unrecognized compensation cost related to nonvested shares is $2.7 million expected to be recognized over 1.70 years. The fair value of service-based stock option grants was estimated at the grant date using the Black-Scholes-Merton option pricing model with assumed expected term of 6.5 years, expected volatility of 60.4% and risk free interest rate of 1.6% to 2% . The expected term was based on the mid-point between the weighted average time to vesting and the contractual time to maturity. Since all options granted in the 2014 Stock Incentive Plan were issued prior to the IPO, expected volatility was based on the volatility of comparable publicly traded companies. The risk free interest rate was based on the U.S. Treasury yield curve. The dividend yield was based on our expectation of not paying dividends on the common stock of NVHI for the foreseeable future. Vision Holding Corp. Amended and Restated 2013 Equity Incentive Plan As of December 30, 2017 there were 169,049 options outstanding with a maximum contractual life of 10 years. During fiscal year ended December 29, 2018 , there were 152,619 options exercised under the Vision Holding Corp. Amended and Restated 2013 Equity Incentive Plan at a weighted average exercise price of $1.66 and an intrinsic value of $6.1 million . As of fiscal year end 2018 , there were 16,430 options remaining that are vested and outstanding at a weighted average exercise price of $1.66 , a weighted average remaining contractual life of 5.20 years and an intrinsic value of $0.5 million . There was no expense associated with these options for fiscal years 2018 , 2017 and 2016 since the options were fully vested prior to fiscal year 2016 . 2017 Omnibus Incentive Plan In connection with the IPO, on October 23, 2017 the Company’s Board of Directors adopted, and its stockholders approved, the National Vision Holdings, Inc. 2017 Omnibus Incentive Plan (the “2017 Omnibus Incentive Plan”) in October 2017. The total number of shares of common stock that may be issued under the plan is 4,000,000 . The plan authorizes the grant of stock options, stock appreciation rights, restricted stock, restricted stock units, other equity-based awards and other cash-based awards to our employees, directors, officers, consultants and advisers. The maximum contractual period of shares granted under the plan is 10 years. During fiscal year 2017 , we granted stock options to purchase 92,443 shares of our common stock at an exercise price of $22.00 per share to a named executive officer. The grant date fair value of the award was $0.8 million , with three year vesting. Fair value of the awards is calculated on a straight-line basis. The expense associated with this grant is recorded in SG&A in the consolidated statements of operations and was $0.3 million and $0.1 million for fiscal years 2018 and 2017 , respectively. As of fiscal year end 2018 , the options have a remaining contractual life of 8.82 years, an intrinsic value of $0.6 million , and remaining unrecognized service cost of $0.5 million . The remaining requisite service period is 1.82 years. All of the options remain outstanding and the intrinsic value of the 30,814 options that have vested is $0.2 million . During fiscal year 2017 , we granted an aggregate of 182,138 restricted stock units, net of forfeitures, at a weighted average exercise price of $22.00 , to certain employees. These restricted stock units include 59,800 restricted stock units that vest in two equal installments on the first and second anniversaries of the grant date, and 122,338 restricted stock units that vest in three equal installments on the first, second and third anniversaries of the grant date. The aggregate grant date fair value of the awards was $4.0 million . During fiscal year 2018 , 63,872 and 20,190 restricted stock units had vested and forfeited, respectively. The expense associated with restricted stock units is recorded in SG&A in the consolidated statements of operations and was $1.4 million and $0.3 million for fiscal years 2018 and 2017 , respectively. The remaining weighted average requisite service period of outstanding restricted stock units was 1.51 years, and the remaining unrecognized service cost was $2.3 million . During fiscal year 2018 , we granted an aggregate of 7,193 restricted stock awards, to certain directors under the 2017 Omnibus Incentive Plan. The awards vest proportionally over three years. The aggregate grant date fair value of the awards, based on the stock price on the date of grant, was $0.3 million for fiscal year 2018 . As of fiscal year end 2018 , the intrinsic value of the awards was $0.1 million , the remaining unrecognized service cost was $0.2 million and the remaining requisite service period was 2.40 years. Associate Stock Purchase Plan On June 6, 2018 , the Company’s Board of Directors adopted, and its stockholders approved, the National Vision Holdings, Inc. 2018 Associate Stock Purchase Plan (the “ASPP”). The ASPP provides that up to 850,000 shares of common stock, at par value of $0.01 per share, may be offered and issued under the ASPP. During fiscal year 2018 , the compensation cost related to the plan was not material. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 29, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The income tax provision (benefit) consists of: In thousands Fiscal Year Fiscal Year Fiscal Year Current income tax: Federal $ 174 $ 5 $ 51 State 381 1,082 1,302 Deferred income tax: Federal (15,687 ) (40,136 ) 9,243 State (3,653 ) 139 1,038 Income tax provision (benefit) $ (18,785 ) $ (38,910 ) $ 11,634 Our income tax provision (benefit) differs from the amounts computed by multiplying earnings before income taxes by the statutory federal income tax rate as shown in the following table: In thousands Fiscal Year Fiscal Year Fiscal Year Federal income tax provision at statutory rate $ 1,022 $ 1,480 $ 8,742 State income tax provision, net of federal income tax 226 165 973 Increase in deferred tax asset valuation allowance 318 769 979 Goodwill impairment 3,879 — — Benefit of tax legislation — (42,089 ) — Tax benefit of equity-based compensation deductions (25,544 ) — — Other, net 1,314 765 940 Net income tax provision (benefit) $ (18,785 ) $ (38,910 ) $ 11,634 Effective income tax rate (385.9 )% (920.3 )% 46.6 % The Tax Legislation signed into law on December 22, 2017 makes broad and complex changes to the U.S. tax code including, but not limited to: (1) reducing the U.S. federal rate from 35% to 21%, effective January 1, 2018; (2) eliminating the corporate alternative minimum tax (“AMT”) and changing how the credits can be realized; (3) creating new limitations on deductions for interest expense; (4) changing rules related to limitations of net operating loss (“NOL”) carryforwards, and (5) enhancing and extending through 2026 the option to claim accelerated depreciation deductions on qualified property. The effects of new legislation are required to be recognized upon enactment. Accordingly, recognition of the tax effects of the legislation is required in the annual period that includes December 22, 2017. The Company recorded a tax benefit of $42.1 million due to a re-measurement of deferred tax assets and liabilities in fiscal year 2017. Pursuant to SEC Staff Accounting Bulletin No. 118, Income Tax Accounting Implications of the Tax Legislation, the Company recognized provisional effects of the enactment of the 2017 Tax Legislation for which measurement could be reasonably estimated as of fiscal year end 2017 . As of fiscal year end 2018 , the Company recorded adjustments to the provisional estimates related to depreciation expense. The adjustments to the provisional estimates of December 30, 2017 did not materially impact the effective tax rate of the Company during fiscal year 2018 . The sources of the differences between the financial accounting and tax bases of our assets and liabilities that give rise to the deferred tax assets and deferred tax liabilities and the tax effects of each are as follows: In thousands As of As of Deferred tax assets: NOL carry-forwards $ 13,614 $ 6,278 Deferred interest expense carry-forwards 4,655 — AMT payment and employment credits 4,679 3,741 Deferred revenue 4,984 7,643 Accrued expenses and reserves 11,370 14,178 Loss on equity and other investments 1,493 1,175 Stock option compensation 5,893 6,606 Unrealized losses on hedging instruments 1,700 4,130 Other 1,193 4,222 Subtotal 49,581 47,973 Valuation allowances 1,614 1,296 Total net deferred tax assets 47,967 46,677 Deferred tax liabilities: Depreciation of property and equipment (32,631 ) (37,877 ) Amortization of intangible assets (75,422 ) (78,329 ) Other (1,854 ) (2,397 ) Total deferred tax liabilities (109,907 ) (118,603 ) Net deferred tax liabilities $ (61,940 ) $ (71,926 ) As of fiscal year end 2018 , we had available U.S. federal NOL carry-forwards aggregating to $55.8 million that can be utilized to reduce future federal income taxes. The Company has $37.7 million of carry-forward losses that do not expire and $5.1 million , $3.3 million and $9.7 million of carry-forward losses expiring at the end of fiscal year 2019, fiscal year 2033 and fiscal year 2037 respectively. In addition, we have NOL carry-forwards in varying amounts and with varying expiration dates in various states in which we operate. We believe it is more-likely-than-not that we will realize a tax benefit for these NOL’s in the future. As of fiscal year end 2018 , we also have non-expiring federal and state AMT carry-forward credits and employment credits totaling $4.7 million available to offset certain future taxes. We have a $1.3 million deferred income tax asset on losses associated with our equity method non-consolidated investee and a $0.2 million deferred income tax asset for capital losses associated with the impairment of an investment recorded during fiscal year 2017 . We do not expect to generate significant capital gains from these investments, or other sources, in the near future. Therefore, we believe it is more-likely-than-not that we will not realize a tax benefit for these deferred income tax assets, and accordingly we have established a full valuation allowance for those amounts. As a result of our utilization of NOL carry-forwards to reduce or eliminate subsequent years’ tax obligations, our federal and a substantial number of our state income tax returns for fiscal years 2001 through 2018 remain open for examination by the tax authorities. We had no uncertain tax positions or unrecognized tax benefits as of fiscal years 2018 and 2017 . |
Revenue From Contracts With Cus
Revenue From Contracts With Customers | 12 Months Ended |
Dec. 29, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue From Contracts With Customers | The majority of our annual revenues are recognized either at the point of sale or upon delivery and customer acceptance, paid for at the time of sale in cash, credit card, or on account with managed care payors having terms generally between 14 and 120 days, with most paying within 90 days. For sales of in-store non-prescription eyewear and related accessories, and paid eye exams, we recognize revenue at the point of sale. Our point in time revenues include 1) retail sales of prescription and non-prescription eyewear, contact lenses and related accessories to retail customers (including those covered by managed care), 2) eye exams and 3) wholesale sales of inventory in which our customer is another retail entity. Revenues recognized over time primarily include product protection plans, eyecare club memberships and management fees earned from our legacy partner. Revenues Recognized at a Point in Time Owned & Host Within our owned & host segment, product revenues include sales of prescription and non-prescription eyewear, contact lenses and related accessories to retail customers. For sales of in-store non-prescription eyewear and related accessories, we recognize revenue at the point of sale. For sales of prescription eyewear, we recognize revenue when the performance obligations identified under the terms of contracts with our customers are satisfied, which generally occurs, for products, when those products have been delivered and accepted by our customers. Within our owned & host segment services and plans revenues, eye exam services sold on a stand-alone basis are also recognized at the point of sale which occurs immediately after the exam is performed. Legacy Within our legacy segment, product revenues include sales of prescription and non-prescription eyewear, contact lenses and related accessories to retail customers in transactions where the retail customer uses a managed-care payor; and wholesale sales of the same inventory types to the legacy partner. The revenue recognition for the retail sales are identical to similar sales in the owned & host segment. Wholesale sales of inventory to the legacy partner are recognized at the point in time when control of the inventory has been transferred in accordance with the contractual terms and conditions of sale. Since the wholesale sales of inventory to the legacy partner are a separate performance obligation in our management and services agreement with the legacy partner, we considered the appropriate allocation of consideration to wholesale inventory sales. We concluded that the difference between the stand-alone-selling price of the wholesale inventory and the contractual prices was not material. Within our legacy segment services and plans revenues, eye exam services sold to retail customers are recognized at the point of sale which occurs immediately after the exam is performed. Corporate/Other Revenues from our non-reportable Corporate/Other segment are attributable to wholly owned subsidiaries AC Lens and FirstSight. AC Lens sells contact lenses and optical accessory products to retail customers through e-commerce. AC Lens also distributes contact lenses at its cost to Walmart and Sam’s Club under fee for services arrangements, reports revenue on a gross basis and is the principal in the arrangement since AC Lens controls the products in those transactions before the products are transferred to the customer. FirstSight issues individual vision care benefit plans in connection with our America’s Best operations in California, and provides or arranges for the provision of optometric services at certain optometric offices next to Walmart and Sam’s Club stores in California. Revenues Recognized Over Time Owned & Host Within our owned & host segment, services and plans revenues include revenues from product protection plans (i.e. warranties), eyecare club memberships and HMO membership fees. We offer extended warranty plans in our owned & host segment that generally provide for repair and replacement of eyeglasses for primarily a one -year term after purchase. We recognize service revenue under these programs on a straight-line basis over the warranty or service period which is consistent with our efforts expended to satisfy the obligation. We offer three- or five-year eyecare club memberships in our owned & host segment to our contact lens customers. For these programs we apply the portfolio approach of recognizing revenues of contracts with similar characteristics and use estimates and assumptions that reflect the size and composition of the portfolio of contracts. We selected the portfolio approach because our historical club membership data demonstrate that our club customers behave similarly, such that the difference between the portfolio approach and calculating revenue of each individual contract is not material. We recognize revenue across the contract portfolio based on the value delivered to the customers relative to the remaining services promised under the programs. We determine the value delivered based on the expected timing and amount of customer usage of benefits over the terms of the contracts. The unamortized portion of amounts we collect in advance for these services and plans are reported as deferred revenue (current and non-current portions) in the accompanying consolidated balance sheets. Legacy Sales of services and plans in our legacy segment include fees earned for managing the operations of our legacy partner. These fees are recorded on a net basis and are based primarily on sales of products and product protection plans to non-managed care customers. We determined that under the terms of the arrangement our legacy partner controls the products and services in the transaction with the retail customer and therefore we act as the agent in those transactions. We recognize this service revenue using the “right to invoice” method because our right to payment corresponds directly with the value of the management services provided to our legacy partner. The following disaggregation of revenues depicts our revenues based on the timing of revenue recognition: In thousands Fiscal Year Revenues recognized at a point in time $ 1,397,801 Revenues recognized over time 139,053 Total net revenue $ 1,536,854 Refer to Note 15 ."Segment Reporting" for the Company’s disaggregation of net revenue by reportable segment and product type. As the reportable segments are aligned by similar economic factors, trends and customers, the reportable segment disaggregation view best depicts how the nature, amount and uncertainty of revenue and cash flows are affected by economic factors. following depicts a roll-forward of deferred revenue: Fiscal Year 2018 In thousands Product Protection Plans Eye Care Clubs HMO Memberships Total Beginning of the year $ 26,731 $ 67,430 $ 54 $ 94,215 Adjustment for adoption of ASU 2014-09 — (25,776 ) — (25,776 ) Beginning of the year - As Adjusted 26,731 41,654 54 68,439 Sold 58,860 47,923 1,384 108,167 Revenue recognized (56,816 ) (46,089 ) (1,423 ) (104,328 ) End of year $ 28,775 $ 43,488 $ 15 $ 72,278 Current $ 28,403 $ 23,726 $ 15 $ 52,144 Non-current 372 19,762 — 20,134 $ 28,775 $ 43,488 $ 15 $ 72,278 Fiscal Year 2017 In thousands Product Protection Plans Eye Care HMO Memberships Total Beginning of the year $ 23,855 $ 63,478 $ 95 $ 87,428 Sold 54,028 46,443 7,926 108,397 Revenue recognized (51,152 ) (42,491 ) (7,967 ) (101,610 ) End of year $ 26,731 $ 67,430 $ 54 $ 94,215 Current $ 26,312 $ 36,627 $ 54 $ 62,993 Non-current 419 30,803 — 31,222 $ 26,731 $ 67,430 $ 54 $ 94,215 Deferred revenue recorded as of fiscal year end 2018 is expected to be reflected in future operating results as follows: Fiscal Year In thousands 2019 $ 52,144 2020 15,029 2021 4,840 2022 204 2023 61 $ 72,278 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 29, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions Transactions with KKR Sponsor and Berkshire During the fiscal year 2018 , KCM acted as a lead arranger with respect to the joinder and amendment agreement, dated as of October 9, 2018, relating to the first lien credit agreement, and received $1.2 million in fees in connection therewith. Under certain agreements we have entered into with KKR Sponsor and Berkshire, we recorded the following expenses: In thousands Fiscal Year Fiscal Year Fiscal Year KKR Sponsor $ — $ 7,259 $ 851 Berkshire $ — $ 955 $ 199 Fees paid to KKR Sponsor and Berkshire include retainer fees and certain other on-going project-oriented initiatives and are presented in SG&A in the accompanying consolidated statements of operations, except KKR Sponsor fees during the fiscal year 2017 include $2.3 million presented in debt issuance costs. Fiscal year 2017 expenses also include the monitoring agreement termination fee discussed in Note 1 . “Business and Significant Accounting Policies.” Dividend & Stockholders’ Equity On February 2, 2017 , the Company declared a recapitalization dividend to its stockholders. Common stockholders received a dividend per common share of $1.51 . There were 110.5 million common shares outstanding and eligible for the dividend. Vested and roll-over option holders received an additional cash payment of $1.51 per option, for an aggregate payment of $3.7 million . The income tax benefit of the additional cash payment was $1.4 million . The exercise price of unvested options was reduced by $1.51 per option. Since the Company was in an accumulated deficit position on the date of declaration, according to our accounting policy the combined total cash payment of $171.0 million was recorded as a reduction to additional paid-in capital in the accompanying consolidated balance sheet. |
Equity in Net Assets of Non-Con
Equity in Net Assets of Non-Consolidated Investee | 12 Months Ended |
Dec. 29, 2018 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity in Net Assets of Non-Consolidated Investee | From time to time the Company invests in technological innovators across the optical retail industry. One of these investments is a nonconsolidated investee (the “investee”) in which an equity ownership interest is maintained and for which the equity method of accounting is used due to our ability to exert significant influence over decisions relating to our investee’s operations and financial affairs. We hold a 28% equity interest in our investee as of fiscal year end 2018 . Revenues and expenses of the investee are not consolidated into our financial statements; rather, our proportionate share of the earnings or losses of the investee is reflected as equity income or loss in other expense, net in our consolidated statements of operations. We have determined that we should not consolidate our investee because, although it is a variable interest entity, we are not the primary beneficiary. After adjusting the carrying value of our interest in the investee’s reported net losses, our investment balance in the business was $1.0 million and $2.3 million at the end of fiscal years 2018 and 2017 , respectively, which is included in other assets in the accompanying consolidated balance sheets. The Company’s fiscal year end for 2018 was December 29, 2018 , while our investee’s year end date was December 31, 2018. The Company’s fiscal year end for 2017 was December 30, 2017. Our investee’s year end date was December 31, 2017. No material transactions occurred from December 29, 2018 to December 31, 2018 or on December 31, 2017, requiring adjustment to our investee's or our results as presented in the tables below. Summarized balance sheet information for our investee is as follows: In thousands As of As of Current assets $ 2,197 $ 2,407 Non-current assets 558 557 Total assets 2,755 2,964 Current liabilities 6,321 1,046 Non-current liabilities 3,000 3,000 Total liabilities 9,321 4,046 Net assets $ (6,566 ) $ (1,082 ) Summarized income statement information for our investee is as follows: In thousands Fiscal Year Fiscal Year Fiscal Year Revenues $ 3,871 $ 6,244 $ 5,847 Net loss $ (5,632 ) $ (3,433 ) $ (4,153 ) National Vision’s share of net loss $ (1,304 ) $ (1,001 ) $ (1,370 ) In the ordinary course of business we are a licensee of our investee. Additionally, on August 29, 2017 , the investee issued a secured convertible promissory note to the Company, in the principal amount of $1.5 million , due on August 29, 2020 . The note bears interest at a fixed rate of 5.00% with an additional variable interest component based on the base rate of the Bank of England, as published each calendar year, which is 0.75% as of December 29, 2018 and is included in other assets in the accompanying consolidated balance sheets. Transactions with our non-consolidated investee included in our consolidated balance sheets and statements of operations were as follows: In thousands As of As of Balance sheets Prepaid expenses and other current assets $ — $ 172 Other assets (1) $ 1,522 $ 1,518 (1) Other assets include loan receivable of $1.5 million as of December 29, 2018 and December 30, 2017. In thousands Fiscal Year Fiscal Year Fiscal Year Statements of operations Licensing fees (SG&A) $ 172 $ 955 $ 987 |
Fair Value Measurement of Finan
Fair Value Measurement of Financial Assets and Liabilities | 12 Months Ended |
Dec. 29, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement of Financial Assets and Liabilities | Fair Value Measurement of Financial Assets and Liabilities The Company uses a fair value hierarchy that is intended to increase consistency and comparability in fair value measurements and related disclosures. The fair value hierarchy is based on inputs to valuation techniques that are used to measure fair value that are either observable or unobservable. Observable inputs reflect assumptions market participants would use in pricing an asset or liability based on market data obtained from independent sources while unobservable inputs reflect a reporting entity’s pricing based upon its own market assumptions. Under U.S. GAAP, the Company is required to, a) measure certain assets and liabilities at fair value or, b) disclose the fair values of certain assets and liabilities recorded at cost. Accounting standards define fair value as the price that would be received upon sale of an asset or paid upon transfer of a liability in an orderly transaction between market participants at the measurement date. Fair value is estimated assuming the transaction occurs in the principal or most advantageous market for the asset or liability and includes consideration of non-performance risk and credit risk of both parties. A three-tier fair value hierarchy prioritizes the inputs used in measuring fair value. These tiers include: • Level 1 - Valuation inputs are based upon unadjusted quoted prices for identical instruments traded in active markets. • Level 2 - Valuation inputs are based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in inactive markets, and model-based valuation techniques for which all significant assumptions are observable in the market or can be corroborated by observable market data for substantially the full term of the assets or liabilities. • Level 3 - Valuation inputs are unobservable and typically reflect management's estimates of assumptions that market participants would use in pricing the asset or liability. The fair values are determined using model-based techniques that include option pricing models, discounted cash flow models, and similar techniques. The fair value estimates of financial instruments are not necessarily indicative of the amounts we might pay or receive in actual market transactions. The use of different market assumptions and/or estimation methodologies may have a material impact on the estimated fair value amounts. Cash and Cash Equivalents The carrying amount of cash and cash equivalents approximates fair value due to the short term maturity of the instruments. All cash and cash equivalents are denominated in U.S. currency. Accounts Receivable The carrying amount of accounts receivable approximates fair value due to the short-term nature of those items and the effect of related allowances for doubtful accounts. Accounts Payable and Other Payables and Accrued Expenses The carrying amounts of accounts payable and other payables and accrued expenses approximate fair value due to the short-term nature of those items. Long-term Debt - First Lien Credit Agreement Our long-term debt is traded in private markets on a less-than-daily basis. Fair value is based on the average of trading prices and bid/ask quotes around period end (Level 2 inputs). The estimated fair values of our long term debt was $556.1 million and $570.2 million as of fiscal year end 2018 and 2017 , respectively, compared to carrying values of $553.6 million and $557.3 million , respectively, which includes the current portion, and is net of unamortized discounts and deferred debt issuance costs. Long-term Debt - Capital Leases The fair value of capital lease obligations is based on estimated future contractual cash flows discounted at an appropriate market rate of interest (Level 2 inputs). The estimated fair values of our capital leases were $30.7 million and $14.0 million as of fiscal year end 2018 and 2017 , respectively, compared to carrying values of $24.5 million and $12.0 million , respectively. Interest Rate Derivatives We recognize as assets or liabilities at fair value the estimated amounts we would receive or pay upon a termination of interest rate swaps prior to their scheduled expiration dates. The fair value was based on information that is model-driven and whose inputs were observable (Level 2 inputs). See Note 13 . “Interest Rate Derivatives” for further details. |
Deferred Revenue
Deferred Revenue | 12 Months Ended |
Dec. 29, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Deferred Revenue | The majority of our annual revenues are recognized either at the point of sale or upon delivery and customer acceptance, paid for at the time of sale in cash, credit card, or on account with managed care payors having terms generally between 14 and 120 days, with most paying within 90 days. For sales of in-store non-prescription eyewear and related accessories, and paid eye exams, we recognize revenue at the point of sale. Our point in time revenues include 1) retail sales of prescription and non-prescription eyewear, contact lenses and related accessories to retail customers (including those covered by managed care), 2) eye exams and 3) wholesale sales of inventory in which our customer is another retail entity. Revenues recognized over time primarily include product protection plans, eyecare club memberships and management fees earned from our legacy partner. Revenues Recognized at a Point in Time Owned & Host Within our owned & host segment, product revenues include sales of prescription and non-prescription eyewear, contact lenses and related accessories to retail customers. For sales of in-store non-prescription eyewear and related accessories, we recognize revenue at the point of sale. For sales of prescription eyewear, we recognize revenue when the performance obligations identified under the terms of contracts with our customers are satisfied, which generally occurs, for products, when those products have been delivered and accepted by our customers. Within our owned & host segment services and plans revenues, eye exam services sold on a stand-alone basis are also recognized at the point of sale which occurs immediately after the exam is performed. Legacy Within our legacy segment, product revenues include sales of prescription and non-prescription eyewear, contact lenses and related accessories to retail customers in transactions where the retail customer uses a managed-care payor; and wholesale sales of the same inventory types to the legacy partner. The revenue recognition for the retail sales are identical to similar sales in the owned & host segment. Wholesale sales of inventory to the legacy partner are recognized at the point in time when control of the inventory has been transferred in accordance with the contractual terms and conditions of sale. Since the wholesale sales of inventory to the legacy partner are a separate performance obligation in our management and services agreement with the legacy partner, we considered the appropriate allocation of consideration to wholesale inventory sales. We concluded that the difference between the stand-alone-selling price of the wholesale inventory and the contractual prices was not material. Within our legacy segment services and plans revenues, eye exam services sold to retail customers are recognized at the point of sale which occurs immediately after the exam is performed. Corporate/Other Revenues from our non-reportable Corporate/Other segment are attributable to wholly owned subsidiaries AC Lens and FirstSight. AC Lens sells contact lenses and optical accessory products to retail customers through e-commerce. AC Lens also distributes contact lenses at its cost to Walmart and Sam’s Club under fee for services arrangements, reports revenue on a gross basis and is the principal in the arrangement since AC Lens controls the products in those transactions before the products are transferred to the customer. FirstSight issues individual vision care benefit plans in connection with our America’s Best operations in California, and provides or arranges for the provision of optometric services at certain optometric offices next to Walmart and Sam’s Club stores in California. Revenues Recognized Over Time Owned & Host Within our owned & host segment, services and plans revenues include revenues from product protection plans (i.e. warranties), eyecare club memberships and HMO membership fees. We offer extended warranty plans in our owned & host segment that generally provide for repair and replacement of eyeglasses for primarily a one -year term after purchase. We recognize service revenue under these programs on a straight-line basis over the warranty or service period which is consistent with our efforts expended to satisfy the obligation. We offer three- or five-year eyecare club memberships in our owned & host segment to our contact lens customers. For these programs we apply the portfolio approach of recognizing revenues of contracts with similar characteristics and use estimates and assumptions that reflect the size and composition of the portfolio of contracts. We selected the portfolio approach because our historical club membership data demonstrate that our club customers behave similarly, such that the difference between the portfolio approach and calculating revenue of each individual contract is not material. We recognize revenue across the contract portfolio based on the value delivered to the customers relative to the remaining services promised under the programs. We determine the value delivered based on the expected timing and amount of customer usage of benefits over the terms of the contracts. The unamortized portion of amounts we collect in advance for these services and plans are reported as deferred revenue (current and non-current portions) in the accompanying consolidated balance sheets. Legacy Sales of services and plans in our legacy segment include fees earned for managing the operations of our legacy partner. These fees are recorded on a net basis and are based primarily on sales of products and product protection plans to non-managed care customers. We determined that under the terms of the arrangement our legacy partner controls the products and services in the transaction with the retail customer and therefore we act as the agent in those transactions. We recognize this service revenue using the “right to invoice” method because our right to payment corresponds directly with the value of the management services provided to our legacy partner. The following disaggregation of revenues depicts our revenues based on the timing of revenue recognition: In thousands Fiscal Year Revenues recognized at a point in time $ 1,397,801 Revenues recognized over time 139,053 Total net revenue $ 1,536,854 Refer to Note 15 ."Segment Reporting" for the Company’s disaggregation of net revenue by reportable segment and product type. As the reportable segments are aligned by similar economic factors, trends and customers, the reportable segment disaggregation view best depicts how the nature, amount and uncertainty of revenue and cash flows are affected by economic factors. following depicts a roll-forward of deferred revenue: Fiscal Year 2018 In thousands Product Protection Plans Eye Care Clubs HMO Memberships Total Beginning of the year $ 26,731 $ 67,430 $ 54 $ 94,215 Adjustment for adoption of ASU 2014-09 — (25,776 ) — (25,776 ) Beginning of the year - As Adjusted 26,731 41,654 54 68,439 Sold 58,860 47,923 1,384 108,167 Revenue recognized (56,816 ) (46,089 ) (1,423 ) (104,328 ) End of year $ 28,775 $ 43,488 $ 15 $ 72,278 Current $ 28,403 $ 23,726 $ 15 $ 52,144 Non-current 372 19,762 — 20,134 $ 28,775 $ 43,488 $ 15 $ 72,278 Fiscal Year 2017 In thousands Product Protection Plans Eye Care HMO Memberships Total Beginning of the year $ 23,855 $ 63,478 $ 95 $ 87,428 Sold 54,028 46,443 7,926 108,397 Revenue recognized (51,152 ) (42,491 ) (7,967 ) (101,610 ) End of year $ 26,731 $ 67,430 $ 54 $ 94,215 Current $ 26,312 $ 36,627 $ 54 $ 62,993 Non-current 419 30,803 — 31,222 $ 26,731 $ 67,430 $ 54 $ 94,215 Deferred revenue recorded as of fiscal year end 2018 is expected to be reflected in future operating results as follows: Fiscal Year In thousands 2019 $ 52,144 2020 15,029 2021 4,840 2022 204 2023 61 $ 72,278 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 29, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Leases Total rental expenses related to operating leases were approximately $89.6 million , $79.2 million and $71.3 million in the fiscal years ended 2018 , 2017 and 2016 , respectively. Total rental expense includes percentage rent of approximately $5.8 million , $6.1 million and $6.3 million during the fiscal years ended 2018 , 2017 and 2016 , respectively. As of fiscal year end 2018 , aggregate future minimum rental payments under our operating leases are as follows: Fiscal Year In thousands 2019 $ 69,372 2020 63,218 2021 56,219 2022 49,303 2023 42,545 Thereafter 126,388 $ 407,045 The future minimal rental payments above do not include amounts for variable executory costs such as insurance, real estate taxes and common area maintenance. These costs were approximately $18.0 million , $14.9 million and $13.9 million during fiscal years ended 2018 , 2017 and 2016 , respectively. Other Agreements The Company is a party to a multi-year marketing agreement with a term from January 2017 through December 2019 , with no renewal provision. As of fiscal year end 2018 , $3.3 million of fees remain unpaid over the remaining term of the agreement. Minimum purchase commitments with our trade vendors represent a small portion of our costs applicable to revenue at approximately $8.0 million annually through 2023. Warranty Costs The Company records an allowance for the estimated amount of future warranty costs when the related revenue is recognized, which is recorded in other payables and accrued expenses on the accompanying consolidated balance sheets. Expense associated with warranty costs is presented in cost of services and plans in the accompanying consolidated statements of operations. Estimated future warranty costs are primarily based on historical experience of identified warranty claims. However, there can be no assurance that future warranty costs will not exceed historical amounts. The following details the activity in our product warranty liability accounts: In thousands Fiscal Year Fiscal Year Beginning of year balance $ 1,593 $ 1,343 Accrued obligation 29,943 26,806 Claims paid (29,794 ) (26,556 ) End of year balance $ 1,742 $ 1,593 401(k) Plan The Company sponsors a 401(k) plan into which employees may defer a portion of their wages. We match a portion of such deferred wages. The expense for the plan was $4.2 million , $3.1 million and $2.6 million in the fiscal years ended 2018 , 2017 and 2016 , respectively. Expense associated with our 401(k) plan is presented in SG&A in the accompanying consolidated statements of operations. Legal Proceedings From time to time, the Company is involved in various legal proceedings incidental to its business. Because of the nature and inherent uncertainties of litigation, we cannot predict with certainty the ultimate resolution of these actions and, should the outcome of these actions be unfavorable, the Company’s business, financial position, results of operations or cash flows could be materially and adversely affected. The Company reviews the status of its legal proceedings and records a provision for a liability when it is considered probable that both a liability has been incurred and the amount of the loss can be reasonably estimated. This review is updated periodically as additional information becomes available. If either or both of the criteria are not met, we reassess whether there is at least a reasonable possibility that a loss, or additional losses, may be incurred. If there is a reasonable possibility that a loss may be incurred, we disclose the estimate of the amount of the loss or range of losses, or that an estimate of loss cannot be made. The Company expenses its legal fees as incurred. In January 29, 2016 , FirstSight, our wholly-owned specialized health maintenance organization, was named as a defendant in a proposed class action filed on behalf of all persons who paid for an eye examination from an optometrist at a Walmart location in California from November 5, 2009 through the date of the resolution of the litigation. The complaint alleges in particular that FirstSight participated in arrangements that caused the illegal delivery of eye examinations to the plaintiffs, and that FirstSight thereby violated, among other statutes, the Unfair Competition and False Advertising laws of California. In March 2017 , the Court granted a motion to dismiss previously filed by FirstSight. The plaintiffs filed an appeal to the U.S. Court of Appeals for the Ninth Circuit in April 2017. In July 2018, the U.S. Court of Appeals for the Ninth Circuit vacated in part, and reversed in part, the district court’s dismissal and remanded for further proceedings. In October 2018, the plaintiffs filed a second amended complaint with the district court and in November 2018, FirstSight filed a motion to dismiss. The Company believes that the claims are without merit and intends to continue to vigorously defend the litigation. In May 2017 , a complaint (the “1-800 Contacts Matter”) was filed against the Company and other defendants alleging, on behalf of a proposed class of consumers who purchased contact lenses online, that 1-800 Contacts, Inc. entered into a series of agreements with the other defendants, including AC Lens, the Company’s subsidiary, to suppress certain online advertising and that each defendant thereby engaged in anticompetitive conduct in violation of the Sherman Antitrust Act. The Company has settled the 1-800 Contacts Matter for $7.0 million , without admitting liability. Accordingly, the Company recorded a charge for this amount in litigation settlement in the accompanying consolidated statement of operations during the second quarter of fiscal year 2017 . On November 8, 2017 , the court in the 1-800 Contacts Matter entered an order preliminarily approving the settlement agreement, subject to a settlement hearing. Pursuant to this order, the Company deposited 50% of the settlement amount, or $3.5 million , into an escrow account, to be distributed subject to and in accordance with the terms of the settlement agreement and any further order of the court. |
Interest Rate Derivatives
Interest Rate Derivatives | 12 Months Ended |
Dec. 29, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Interest Rate Derivatives | Interest Rate Derivatives The Company is party to three pay-fixed and receive-floating interest rate swap agreements to offset the variability of cash flows in LIBOR-indexed debt interest payments, subject to a 1.0% floor, attributable to changes in the benchmark interest rate from March 13, 2017 to March 13, 2021 related to its credit agreements. During the first quarter of 2018, in accordance with the original agreements with the counterparties, the notional amount of the first derivative decreased from $175 million to $140 million . There were no other changes in the terms of the arrangements. The fixed rates associated with the first derivative (“Derivative 1”) notional amount of $140.0 million and the second derivative (“Derivative 2”) notional amount of $225.0 million were 3.4063% and 3.5125% , respectively. The fixed rate associated with the third derivative (“Derivative 3”) notional amount of $100.0 million was 2.6000% . Derivative 1 will hedge the first amount of LIBOR-based interest payments up to its applicable notional amount and Derivative 2 will hedge the next amount (i.e., the first amount not already hedged by Derivative 1) up to its applicable notional amount. Derivative 3 will hedge interest payments not already hedged by Derivatives 1 and 2. Changes in the cash flows of each derivative are expected to be highly effective in offsetting the changes in interest payments on a principal balance equal to the derivative’s notional amount, attributable to the hedged risk. Our hedges have been deemed effective since inception as a result of our quarterly hedge effectiveness testing. Our cash flow hedge position related to interest rate derivative contracts is as follows: In thousands Notional Amount Final Maturity Date Other Payables and Accrued Expenses Other Liabilities AOCL, Net of Tax (1) As of $ 500,000 March 2021 $ 6,969 $ 9,155 $ 9,868 As of $ 465,000 March 2021 $ 3,130 $ 3,505 $ 2,810 (1) Includes stranded income tax benefit of $2.1 million within AOCL from adopting provisions of the Tax Legislation of 2017 during the year ended December 30, 2017. As of December 29, 2018 , the Company expects to reclassify $2.3 million of AOCL into earnings in the next 12 months . See Note 16 . “Accumulated Other Comprehensive Loss” for further detail regarding AOCL. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 29, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | ic earnings per share (“EPS”) is computed by dividing net income by the weighted average number of common shares outstanding for the period. Diluted EPS is computed by dividing net income by the weighted average shares outstanding for the period and includes the dilutive impact of potential new shares issuable upon vesting and exercise of stock options and vesting of restricted stock units. Potentially dilutive securities are excluded from the computation of diluted EPS if their effect is anti-dilutive. A reconciliation of the numerators and denominators of the basic and diluted EPS calculations is as follows: In thousands, except EPS Fiscal Year Fiscal Year Fiscal Year Net income $ 23,653 $ 43,138 $ 13,343 Weighted average shares outstanding for basic EPS 75,899 59,895 56,185 Effect of dilutive securities: Stock options 3,129 2,140 817 Restricted Stock 13 — — Weighted average shares outstanding for diluted EPS 79,041 62,035 57,001 Basic EPS $ 0.31 $ 0.72 $ 0.24 Diluted EPS $ 0.30 $ 0.70 $ 0.23 Anti-dilutive options outstanding excluded from EPS — 254 88 |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 29, 2018 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting The Company’s reportable segments were determined on the same basis as used by the Chief Operating Decision Maker (“CODM”) to evaluate performance internally. Our operations consist of two reportable segments: • Owned & host store brands - Our owned brands consist of our America’s Best and Eyeglass World operating segments. In America’s Best stores, vision care services are provided by optometrists employed either by us or by independent professional corporations. Eyeglass World locations primarily feature independent optometrists to perform eye exams and on-site laboratories. Our two host operating segments consist of Military and Fred Meyer. These brands provide eye exams principally by independent optometrists in nearly all locations. We have aggregated our America’s Best, Eyeglass World, Military and Fred Meyer operating segments into a single reportable segment due to similar economic characteristics and similarity of the nature of products and services, production processes, class of customers, regulatory environment and distribution methods of those brands. • Legacy - The Company manages the operations of, and supplies inventory and lab processing services to, 227 legacy retail Vision Centers. We earn management fees as a result of providing such services and therefore we record revenue related to sales of products and product protection plans to our legacy partner’s customers on a net basis. We also sell to our legacy partner wholesale merchandise that is stocked in retail locations, and provide central lab processing for the finished eyeglasses and frames expected to be sold to our legacy partner’s customers. We lease space from our legacy partner within or adjacent to each of the locations we manage and use this space for providing optometric examination services. During fiscal year 2018 , sales associated with our legacy partner arrangement represented 10.0% of consolidated net revenue. This exposes us to concentration of customer risk. Our legacy agreements were renewed on January 13, 2017 , and expire on August 23, 2020 , subject to extension pursuant to the terms of the agreements. Sales of services and plans in our legacy segment consist of fees earned for managing the operations of our legacy partner and revenues associated with the provision of eye exams for our managed care customers. Revenues associated with managing operations of our legacy partner were $34.7 million , $36.7 million and $38.3 million for fiscal years ended 2018 , 2017 and 2016 , respectively. Our management & services agreement also allows our legacy partner to collect penalties if the Vision Centers do not generate a requisite amount of revenues. No such penalties have been assessed under our current arrangement. The “Corporate/Other” category includes the results of operations of our other operating segments and corporate overhead support. The “Reconciliations” category represents other adjustments to reportable segment results necessary for the presentation of consolidated financial results in accordance with U.S. GAAP for the two reportable segments. The operating segments identified above are the business activities of the Company for which discrete financial information is available and for which operating results are regularly reviewed by our CODM to allocate resources and assess performance. Our CODM is our Chief Executive Officer. The Company considers each of our brands to be an operating segment and has further concluded that presenting the results of our reportable segments provides meaningful information consistent with the objectives of ASC 280, Segment Reporting . Strategic initiatives and financial objectives for each reportable segment are determined at the corporate level. Each operating segment is responsible for implementing defined strategic initiatives and achieving certain financial objectives, and has a general manager responsible for the sales and marketing initiatives and financial results for product lines within the segment. Revenues from the Corporate/Other segments are attributable to the AC Lens and FirstSight operating segments. AC Lens primarily sells contact lenses and optical accessory products to retail customers through e-commerce. AC Lens also distributes contact lenses to certain Walmart and Sam’s Club under fee for services arrangements. FirstSight sells single service health plans in connection with the operations of America’s Best operations in California, and arranges for the provision of optometric services at the offices next to Walmart and Sam’s Club stores throughout California. None of those segments met the quantitative thresholds for determining reportable segments for any of the periods presented. Our reportable segment profit measure is earnings before interest, tax, depreciation and amortization (“EBITDA”), or net revenue, less costs applicable to revenue, less selling, general and administrative costs. Depreciation and amortization, asset impairment, litigation settlement and other corporate costs that are not allocated to the reportable segments, including interest expense and debt issuance costs are excluded from segment EBITDA. There are no transactions between our reportable segments. There are no differences between the measurement of our reportable segments’ assets and consolidated assets. There have been no changes from prior periods in the measurement methods used to determine reportable segment profit or loss, and there have been no asymmetrical allocations to segments. The following is a summary of certain financial data for each of our segments. Reportable segment information is presented on the same basis as our consolidated financial statements, except for net revenue, which is presented on a cash basis, including point of sales for managed care payors and excluding the effects of unearned and deferred revenue, consistent with what the CODM regularly reviews. Asset information is not included in the following summary since the CODM does not regularly review such information for the reportable segments. Fiscal Year 2018 In thousands Owned & Host Legacy Corporate/Other Reconciliations Total Segment product revenues $ 956,355 $ 103,890 $ 208,875 $ 492 $ 1,269,612 Segment services and plans revenues 217,047 50,522 3,552 (3,879 ) 267,242 Total net revenue 1,173,402 154,412 212,427 (3,387 ) 1,536,854 Cost of products 280,720 46,986 183,459 241 511,406 Cost of services and plans 178,362 20,272 3,531 — 202,165 Total costs applicable to revenue 459,082 67,258 186,990 241 713,571 SG&A 457,618 54,091 175,767 — 687,476 Asset impairment — — 17,630 — 17,630 Debt issuance cost — — 200 — 200 Other expense, net — — 1,487 — 1,487 EBITDA $ 256,702 $ 33,063 $ (169,647 ) $ (3,628 ) $ 116,490 Depreciation and amortization 74,339 Interest expense, net 37,283 Income before income taxes $ 4,868 Fiscal Year 2017 In thousands Owned & Host Legacy Corporate/Other Reconciliations Total Segment product revenues $ 847,866 $ 103,887 $ 179,718 $ (2,158 ) $ 1,129,313 Segment services and plans revenues 190,701 49,955 12,172 (6,833 ) 245,995 Total net revenue 1,038,567 153,842 191,890 (8,991 ) 1,375,308 Cost of products 248,548 48,275 159,789 (534 ) 456,078 Cost of services and plans 153,691 16,624 10,573 — 180,888 Total costs applicable to revenue 402,239 64,899 170,362 (534 ) 636,966 SG&A 403,848 52,705 143,457 — 600,010 Asset impairment — — 4,117 — 4,117 Debt issuance cost — — 4,527 — 4,527 Litigation settlement — — 7,000 — 7,000 Other expense, net — — 950 — 950 EBITDA $ 232,480 $ 36,238 $ (138,523 ) $ (8,457 ) $ 121,738 Depreciation and amortization 61,974 Interest expense, net 55,536 Income before income taxes $ 4,228 Fiscal Year 2016 In thousands Owned & Host Legacy Corporate/Other Reconciliations Total Segment product revenues $ 730,741 $ 103,618 $ 151,083 $ (4,489 ) $ 980,953 Segment services and plans revenues 158,667 48,592 17,533 (9,550 ) 215,242 Total net revenue 889,408 152,210 168,616 (14,039 ) 1,196,195 Cost of products 212,208 48,097 131,257 (1,193 ) 390,369 Cost of services and plans 127,904 11,510 14,998 — 154,412 Total costs applicable to revenue 340,112 59,607 146,255 (1,193 ) 544,781 SG&A 345,469 52,925 127,475 — 525,869 Asset impairment — — 7,132 — 7,132 Other expense, net — — 1,667 — 1,667 EBITDA $ 203,827 $ 39,678 $ (113,913 ) $ (12,846 ) $ 116,746 Depreciation and amortization 52,677 Interest expense, net 39,092 Income before income taxes $ 24,977 Consolidated Net Product Revenue Information The following table presents our consolidated net product revenue information: In thousands Fiscal Year Fiscal Year Fiscal Year Net Product Sales Eyeglasses and sunglasses $ 851,328 $ 763,268 $ 663,253 Contact lenses 410,839 358,808 310,322 Accessories and other 7,445 7,237 7,378 Total net product revenues $ 1,269,612 $ 1,129,313 $ 980,953 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 12 Months Ended |
Dec. 29, 2018 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | h flow hedge derivative instruments are recorded in AOCL. Amounts reclassified from AOCL to earnings are included in interest expense, net in the accompanying consolidated statements of operations. The following table presents the change in AOCL, net of tax during the fiscal years 2018 , 2017 and 2016 , respectively: In thousands Fiscal Year Fiscal Year Fiscal Year Cash flow hedging activity Balance at beginning of fiscal year $ (9,868 ) $ (14,556 ) $ (11,284 ) Other comprehensive income (loss) before reclassification 3,182 (1,051 ) (5,116 ) Tax effect of other comprehensive income (loss) before reclassification (815 ) 436 1,844 Amount reclassified from AOCL 6,306 8,664 — Tax effect of amount reclassified from AOCL (1,615 ) (3,361 ) — Net current period other comprehensive income (loss), net of tax 7,058 4,688 (3,272 ) Balance at end of fiscal year $ (2,810 ) $ (9,868 ) $ (14,556 ) |
Quarterly Financial Information
Quarterly Financial Information (Unaudited) | 12 Months Ended |
Dec. 29, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information (Unaudited) | Quarterly results are not necessarily indicative of a full year’s operations because of various factors. The following tables present unaudited quarterly financial information for the periods presented: Fiscal Year 2018 In thousands, except EPS Fourth Quarter Third Quarter Second Quarter First Quarter Total net revenue $ 355,922 $ 387,425 $ 385,532 $ 407,975 Total costs applicable to revenue $ 173,470 $ 182,588 $ 177,059 $ 180,454 Income (loss) from operations $ (19,387 ) $ (2,083 ) $ 24,973 $ 38,848 Net income (loss) $ (18,440 ) $ 5,171 $ 12,467 $ 24,455 Weighted-average shares used in computing basic EPS 77,526 76,118 75,249 74,714 Weighted-average shares used in computing diluted EPS 77,526 79,710 77,858 77,837 Basic EPS $ (0.24 ) $ 0.07 $ 0.17 $ 0.33 Diluted EPS $ (0.24 ) $ 0.06 $ 0.16 $ 0.31 Anti-dilutive options outstanding excluded from EPS 3,130 — — — Fiscal Year 2017 In thousands, except EPS Fourth Quarter Third Quarter Second Quarter First Quarter Total net revenue $ 321,819 $ 346,089 $ 337,541 $ 369,859 Total costs applicable to revenue $ 152,393 $ 162,358 $ 156,408 $ 165,808 Income (loss) from operations $ (3,606 ) $ 15,816 $ 13,059 $ 39,022 Net income (loss) $ 27,341 $ 1,089 $ (1,933 ) $ 16,641 Weighted-average shares used in computing basic EPS 70,454 56,414 56,414 56,261 Weighted-average shares used in computing diluted EPS 73,256 58,459 56,414 57,934 Basic EPS $ 0.39 $ 0.02 $ (0.03 ) $ 0.30 Diluted EPS $ 0.37 $ 0.02 $ (0.03 ) $ 0.29 Anti-dilutive options outstanding excluded from EPS — — 2,036 218 |
Condensed Financial Information
Condensed Financial Information of the Registrant | 12 Months Ended |
Dec. 29, 2018 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Condensed Financial Information of Registrant | National Vision Holdings, Inc. and Subsidiaries (Parent Company Only) Condensed Balance Sheets In Thousands, Except Par Value As of As of ASSETS Current assets: Cash and cash equivalents $ 246 $ 23 Total current assets 246 23 Deferred income taxes 393 304 Investment in subsidiary 745,198 654,548 Total non-current assets 745,591 654,852 Total assets $ 745,837 $ 654,875 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Other current liabilities $ 65 $ 46 Non-current liabilities: Other non-current liabilities 2,618 229 Stockholders’ equity: Common stock, $0.01 par value; 200,000 shares authorized; 78,246 and 74,654 shares issued as of December 29, 2018 and December 30, 2017, respectively; 78,167 and 74,654 shares outstanding as of December 29, 2018 and December 30, 2017, respectively 782 746 Additional paid-in capital 672,503 631,798 Accumulated other comprehensive loss (2,810 ) (9,868 ) Retained earnings 74,840 32,157 Treasury stock, at cost; 79 and 28 shares as of December 29, 2018 and December 30, 2017, respectively (2,161 ) (233 ) Total stockholders’ equity 743,154 654,600 Total liabilities and stockholders’ equity $ 745,837 $ 654,875 The accompanying notes are an integral part of these condensed financial statements. Schedule I - Condensed Financial Information of Registrant National Vision Holdings, Inc. And Subsidiaries (Parent Company Only) Condensed Statements of Operations and Comprehensive Income In Thousands Fiscal Year Fiscal Year Fiscal Year Total net revenue $ — $ — $ — Cost applicable to revenue — — — Operating expenses 265 218 195 Loss before income taxes (265 ) (218 ) (195 ) Income tax benefit (91 ) (85 ) (76 ) Loss before equity in net income of subsidiaries (174 ) (133 ) (119 ) Net income of subsidiaries 23,827 43,271 13,462 Net income $ 23,653 $ 43,138 $ 13,343 Comprehensive income: Net income 23,653 43,138 13,343 Unrealized gain (loss) on hedge instruments 9,488 7,613 (5,116 ) Tax provision (benefit) of unrealized gain (loss) on hedge instruments 2,430 2,925 (1,844 ) Comprehensive income $ 30,711 $ 47,826 $ 10,071 The accompanying notes are an integral part of these condensed financial statements. Schedule I - Condensed Financial Information of Registrant National Vision Holdings, Inc. and Subsidiaries (Parent Company Only) Condensed Statements of Cash Flows In Thousands Fiscal Year Fiscal Year Fiscal Year Operating Activities Net cash provided by (used for) operating activities $ 223 $ 11 $ (564 ) Investing Activities Dividend from subsidiary — 170,983 167 Investment in subsidiary (19,802 ) (373,024 ) (884 ) Net cash provided by (used for) investing activities (19,802 ) (202,041 ) (717 ) Financing Activities Proceeds from stock option exercises and employee stock purchase plan 19,802 1,092 915 Proceeds from sale of common stock — 371,932 — Dividend to stockholders — (170,983 ) — Other — — (387 ) Net cash provided by (used for) financing activities 19,802 202,041 528 Net change in cash and cash equivalents 223 11 (753 ) Cash and cash equivalents, beginning of year 23 12 765 Cash and cash equivalents, end of year $ 246 $ 23 $ 12 The accompanying notes are an integral part of these condensed financial statements. 1. Basis of Presentation National Vision Holdings, Inc. (“NVHI,” or the “Company”) conducts substantially all of its activities through its indirect wholly owned subsidiary, National Vision, Inc. (“NVI”) and its subsidiaries. NVHI was incorporated in Delaware on February 14, 2014 under the name Nautilus Parent, Inc. There were no financial transactions between the inception date and March 13, 2014, the date the majority ownership of NVI was transferred from private equity funds managed by Berkshire Partners LLC to affiliates of Kohlberg Kravis Roberts & Co. L.P. In the parent-company-only financial statements, NVHI’s investment in subsidiaries is stated at cost, plus equity in undistributed earnings of subsidiaries since the date of acquisition, less dividends. The parent-company-only financial statements should be read in conjunction with the NVHI consolidated financial statements. Certain prior amounts have been revised to correct the effect of immaterial errors related to lease accounting. See further discussion in the “Correction of Errors in Previously Issued Financial Statements” section of Note 1. Business and Significant Accounting Policies” of the accompanying consolidated financial statements. 2. Guarantees and Restrictions On February 2, 2017 , the Company declared a recapitalization dividend to its stockholders. The dividend was funded with $175.0 million in new term loans under NVI’s first lien credit agreement. As described in the Initial and Secondary Public Offerings section included in Note 1 . “Business and Significant Accounting Policies,” to the NVHI consolidated financial statements, NVI used proceeds from the NVHI IPO to repay all $125.0 million outstanding aggregate amount of its second lien term loans and approximately $235.0 million of the outstanding amount of its First Lien - Term Loan B and accrued and unpaid interest thereon. As of December 29, 2018 , NVI had $564.3 million of principal amount of long-term debt outstanding under its first lien credit agreement. Pursuant to the joinder and amendment agreements, as described in Note 4 . “Long-term Debt,” to the NVHI consolidated financial statements, the first lien credit agreement also provides for up to $100.0 million in revolving loans (“revolving credit facility”). As of fiscal year end 2018 , NVI had no outstanding revolving loan obligations and had $5.5 million in outstanding letters of credit related to the revolving credit facility. The first lien credit agreement contains covenants that, among other things, limit NVI’s ability to incur additional debt, create liens against our assets, make acquisitions, pay dividends or distributions on our stock, merge or consolidate with another entity, and transfer or sell assets. Under the agreement, provided no event of default has occurred and is continuing, NVI is permitted to pay dividends to NVHI with certain restrictions as stated in the credit agreement. |
Business and Significant Acco_2
Business and Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 29, 2018 | |
Accounting Policies [Abstract] | |
Fiscal Year | Fiscal Year We operate on a retail fiscal calendar that results in a given fiscal year consisting of a 52- or 53-week period ending on the Saturday closest to December 31. In a 52-week fiscal year, each quarter contains 13 weeks of operations; in a 53-week fiscal year, each of the first, second and third quarters includes 13 weeks of operations and the fourth quarter includes 14 weeks of operations. References herein to “fiscal year 2018 ,” “fiscal year 2017 ,” and “fiscal year 2016 ,” relate to the 52 weeks ended December 29, 2018 , December 30, 2017 and December 31, 2016 , respectively. Unless otherwise stated, references to years in this report relate to fiscal years rather than calendar years. |
Basis of Presentation and Principles of Consolidation | Basis of Presentation and Principles of Consolidation We prepare our consolidated financial statements in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The consolidated financial statements include our accounts and those of our subsidiaries, all of which are wholly-owned. All intercompany balances and transactions have been eliminated in consolidation. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash consists of currency and demand deposits with financial institutions. We consider all highly liquid investments with an original maturity of three months or less at the date of purchase to be cash equivalents. We maintain the majority of our cash and cash equivalents in one large national banking institution. Such amounts are in excess of federally insured limits. We also review cash balances on a bank by bank basis to identify book overdrafts. Book overdrafts occur when the amount of outstanding checks exceed the cash deposited at a bank. We reclassify book overdrafts, if any, to accounts payable in the accompanying consolidated balance sheets. |
Accounts Receivable, Net | Accounts Receivable, Net Accounts receivable associated with revenues consist primarily of trade receivables and credit card receivables. Trade receivables consist primarily of receivables from managed care payors and receivables from major retailers. While we have relationships with almost all vision care insurers in the United States and with all of the major carriers, currently, a relatively small number of payors comprise the majority of our managed care revenues, subjecting us to concentration risk. Trade receivables and credit card receivables are included in accounts receivable, net, on our consolidated balance sheets, and are presented separately in Note 2 . “Details of Certain Balance Sheet Accounts.” Accounts receivable are reduced by allowances for amounts that may become uncollectible. Estimates of our allowance for uncollectible accounts are based on our historical and current operating, billing and collection trends. |
Inventories | Inventories The cost of inventory is determined using the weighted average cost method. Inventories at retail stores are comprised of finished goods and are valued at the lower of cost or estimated net realizable value (“NRV”). Manufactured inventories are valued using absorption accounting which includes material, labor, other variable costs and other applicable manufacturing overhead. Inventory values are adjusted for estimated obsolescence and written down to NRV based on estimates of current and anticipated demand, customer preference, merchandise age, planned promotional activities, contact lens vendor return acceptance activity, and estimates of future retail sales prices. Shrinkage is estimated and recorded throughout the period as a percentage of cost of sales based on historical results and current inventory levels. Actual shrinkage is recorded throughout the year based upon periodic physical counts. |
Prepaid Expenses and Other Current Assets | Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets primarily include prepaid software maintenance and licensing fees, prepaid rent, prepaid advertising, prepaid insurance, supplies inventory and income taxes receivable. |
Property and Equipment | Property and Equipment Property and equipment (“P&E”) is stated at cost less accumulated depreciation. Depreciation associated with P&E is included in depreciation and amortization in the accompanying consolidated statements of operations. When we retire or otherwise dispose of P&E, the cost and related accumulated depreciation are removed from the accounts and any gain or loss on sale of such assets is included in SG&A in the consolidated statements of operations. Major replacements, remodeling, or betterments are capitalized. Expenditures for maintenance and repairs are charged to SG&A. P&E is depreciated for financial accounting purposes using the straight-line method over the following estimated useful lives: Buildings 34 years Equipment 5 - 7 years Information systems hardware and software (a) 2 - 5 years Furniture and fixtures 6 years Leasehold improvements (b) 10 years P&E under capital leases (b) 10 years ____________ (a) Costs of developing or obtaining software for internal use, such as direct costs of materials or services and internal payroll costs related to the software development projects, are capitalized to information systems hardware and software. (b) Depreciation of leasehold improvements is recognized over the shorter of the estimated useful life of the asset or the term of the lease. The term of the lease includes renewal options for additional periods if the exercise of the renewal is considered to be reasonably assured. |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Indefinite-lived, non-amortizing intangible assets include goodwill and our trademarks and tradenames and are evaluated annually for impairment. Our annual testing date for impairment of goodwill and indefinite-lived intangible assets is the first day of the fourth fiscal quarter, which for fiscal years 2018 and 2017 was September 30, 2018 , and October 1, 2017, respectively. Definite-lived, amortizing intangible assets primarily consist of our contracts and relationships with certain retailers and our customer database tool. We amortize definite-lived intangible assets on a straight-line basis over their estimated useful lives, ranging from four to 23 years . Amortization expense associated with definite-lived intangible assets is included in depreciation and amortization in the accompanying consolidated statements of operations. |
Equity Method Investment | Equity Method Investment The Company has an investment in a private start-up company whose principal business is licensing software to eyeglass retailers. We evaluate the recoverability of our investment by first reviewing the investment for any indicators of impairment. If indicators are present, we estimate the fair value of the investment. If the carrying value of the investment exceeds the estimated fair value, we make an assessment of whether the impairment is other-than-temporary (“OTTI”). In making this assessment, we consider the length of time and the extent to which fair value has been less than cost and our intent and ability to retain our interest long enough for a recovery in market value. Based on our current year assessment, we did not identify OTTI in our equity method investment. |
Fair Value Measurement of Assets and Liabilities (Non-Recurring Basis) | Fair Value Measurement of Assets and Liabilities (Non-Recurring Basis) Non-financial assets such as P&E, intangible assets and goodwill are subject to nonrecurring fair value measurements if impairment indicators are present. Factors we consider important that could trigger an impairment review include a significant under-performance compared to expected operating results, a significant or adverse change in customer business climate, or a significant negative industry or economic trend. |
Deferred Financing Costs and Loan Discounts | Deferred Financing Costs and Loan Discounts Costs incurred in connection with long-term debt which are paid directly to the Company’s lenders and to third parties are treated as debt discounts. Loan discounts are amortized over the term of the related financing agreement and included in interest expense in the accompanying consolidated statements of operations. |
Self-Insurance Accruals | Self-Insurance Accruals We are primarily self-insured for workers’ compensation, employee health benefits and general liability claims. We record self-insurance liabilities based on claims filed, including the development of those claims and an estimate of claims incurred but not yet reported. Should a different amount of claims occur compared to what was estimated, or costs of the claims increase or decrease beyond what was anticipated, reserves may need to be adjusted accordingly. We periodically update our estimates and record such adjustments in the period in which such determination is made. Self-insurance reserves are recorded in other payables and accrued expenses (current portion) and other non-current liabilities on an undiscounted basis in the accompanying consolidated balance sheets. |
Derivative Financial Instruments | Derivative Financial Instruments The Company uses interest rate swaps to manage its exposure to adverse fluctuations in interest rates by converting a portion of our debt portfolio from a floating rate to a fixed rate. We designate our interest rate swaps as cash flow hedges and formally document our hedge relationships, including identification of the hedging instruments and the hedged items, as well as our risk management objectives and strategies for undertaking the hedge transactions. We record all interest rate swaps in our consolidated balance sheets on a gross basis at fair value. Fair value represents estimated amounts we would receive or pay upon a termination of interest rate swaps prior to their scheduled expiration dates. The fair value was based on information that is model-driven and whose inputs were observable (Level 2 inputs). We do not hold or enter into financial instruments for trading or speculative purposes. The gain or loss resulting from fair value adjustments on cash flow hedges are recorded in accumulated other comprehensive loss (“AOCL”) in the accompanying consolidated balance sheets until the hedged item is recognized as interest expense in the consolidated statements of operations. We perform periodic assessments of the effectiveness of our derivative contracts designated as hedges, including the possibility of counterparty default. To manage credit risk associated with our interest rate hedging program, we select counterparties based on their credit ratings and limit our exposure to any single counterparty. The counterparties to our derivative contracts are major domestic financial institutions with investment grade credit ratings. The impact of credit risk, as well as the ability of each party to fulfill its obligations under our derivative financial instruments, is considered in determining the fair value of the contracts. Credit risk has not had a significant effect on the fair value of our derivative instruments. We do not have any credit risk-related contingent features or collateral requirements associated with our derivative contracts. |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss AOCL is defined as the change in equity of a business enterprise during a period from transactions and other events and circumstances from non-owner sources. Accumulated other comprehensive loss, net of income tax, is entirely comprised of the cumulative unrealized loss on our hedging instruments. See Note 16 . “Accumulated Other Comprehensive Loss” for details of reclassifications out of AOCL. |
Revenue Recognition and Costs Applicable to Revenue | Revenue Recognition Product revenues include sales of prescription and non-prescription eyewear, contact lenses, related accessories to retail customers (including those covered by managed care) and sales of inventory in which our customer is another retail entity. Revenues from services and plans include eye exams, eye-care club membership fees, product protection plans (i.e. warranties) and HMO membership fees. Service revenue also includes fees we earn for managing certain Vision Centers and performing laboratory processing services for our legacy partner. At our America’s Best brand, our signature offer is two pairs of eyeglasses and a free eye exam for one low price (“ two -pair offer”). Since an eye exam is a key component in the ability for acceptable prescription eyewear to be delivered to a customer, we concluded that the eye exam service, while capable of being distinct from the eyeglass product delivery, was not distinct in the context of the two -pair offer. As a result, we do not allocate revenue to the eye exam associated with the two -pair offer, and we record all revenue associated with the offer in owned & host net product sales when the customer has received and accepted the merchandise. Our retail customers generally make payments for prescription eyewear products at the time they place an order. Amounts we collect in advance for undelivered merchandise are reported as unearned revenue in the accompanying consolidated balance sheets. Unearned revenue at the end of a reporting period is estimated based on processing and delivery times throughout the current month and generally ranges from four to 10 days with most sales having an average processing versus delivery time difference of seven to eight days. All unearned revenue at the end of a reporting period is recognized in the next fiscal period Revenue is recognized net of sales taxes and returns. The returns allowance is based on historical return patterns. Provisions for estimated returns are established and the expected costs continue to be recognized as contra-revenue when the products are sold. Refer to Note 7 . “Revenue from Contracts With Customers” for further details of our revenues. Costs Applicable To Revenue Costs applicable to revenue consist primarily of cost of products sold and costs of administering services and plans. Costs of products sold include (i) costs to procure non-prescription eyewear, contacts and accessories which we purchase and sell in their finished form, (ii) costs to manufacture finished prescription eyeglasses, including direct materials, labor and overhead and (iii) remake costs, warehousing and distribution expenses and internal transfer costs. Costs of services and plans include costs associated with warranty programs, eye-care club memberships, HMO memberships, eye-care practitioner and eye exam technician payroll, taxes and benefits and optometric and other service costs. Depreciation and amortization are excluded from costs applicable to revenue and are presented as separate items on the accompanying consolidated statements of operations. As a component of the Company's procurement program, the Company frequently enters into contracts with its vendors that provide for payments of rebates or other allowances. These vendor payments are reflected in the carrying value of the inventory when earned or as progress is made toward earning the rebate or allowance and as a component of cost of products as the inventory is sold. |
Selling, General and Administrative Expenses | Selling, General and Administrative Expenses SG&A includes store associate payroll, taxes and benefits, occupancy and other store expenses, advertising and promotion, field supervision, and corporate support. Advertising and promotion costs, including online marketing arrangements, newspaper, direct mail, television and radio, are recorded in SG&A and expensed at the time the advertising first occurs. Production costs of future media advertising and related promotional campaigns are deferred until the advertising events occur. Non-capital expenditures associated with opening new stores, including rent, store remodels, marketing expenses, travel and relocation costs, and training costs, are recorded in SG&A as incurred. |
Leases | Leases We lease our retail stores, optometric examination offices, distribution centers, vehicles, office space and optical laboratories, with the exception of our St. Cloud, Minnesota lab, which we own. Rent expense on operating leases is recorded in SG&A on a straight-line basis over the term of the lease, commencing on the date the Company obtains the right to use the leased property. Generally, the Company is required to pay base rent, real estate taxes, maintenance and insurance. Certain of our lease agreements include rent holidays and rent escalation provisions and may include contingent rent provisions for sales in excess of specified levels. The Company recognizes rent holidays, including the time period during which the Company has control of the property prior to the opening of the store, as well as escalating rent provisions, as deferred rent expense and amortizes these balances on a straight-line basis over the term of the lease. Most leases include one or more options to renew, with renewal terms that can extend the lease term from one to 10 years or more. The lease term includes renewal option periods when the renewal is reasonably assured, and is consistent with the depreciable life of corresponding leasehold improvements. Deferred rent is included in non-current other liabilities on the accompanying consolidated balance sheets. For capital leases, a lease asset is recorded as P&E and corresponding amounts are recorded as debt obligations at an amount equal to the lesser of the net present value of minimum lease payments to be made over the lease term or the fair value of the property. The Company allocates capital lease payments to reductions in the lease obligation and interest expense using the effective interest method. See Note 4 . “Long-term Debt” for further details related to our capital lease commitments and Note 12 . “Commitments and Contingencies” for further details related to our operating lease commitments. Tenant improvement allowances (“TIAs”) are contractual amounts received by a lessee from a lessor for improvements made to leased properties by the lessee. TIAs are recorded in other non-current liabilities in the accompanying consolidated balance sheets, and are amortized as a reduction in rental expense over the life of the respective leases. Receivables for TIA’s are recorded in accounts receivable in the accompanying consolidated balance sheets. In the event a leased store is closed before the expiration of the lease, the discounted remaining lease obligation (less estimated sublease rental income), asset impairment charges related to improvements and fixtures, inventory write-downs and other miscellaneous expenses are recognized when the store closes. Accruals for store closure costs are recorded in current and non-current other liabilities in the accompanying consolidated balance sheets and are not material. |
Stock-Based Compensation | Stock-Based Compensation We measure stock-based compensation cost, which consists of grants of stock options, restricted stock units and restricted shares to employees, consultants and non-employee directors, based on the estimated grant date fair value of the awards. We recognize compensation expense for service-based vesting awards over the requisite service period. For awards that are subject to performance conditions, we recognize compensation expense once achievement of the conditions is considered to be probable. See Note 5 . “Stock Incentive Plan” for further details related to our stock-based compensation plans. |
Impairment of P&E, Goodwill and Intangible Assets | Impairment of P&E We evaluate impairment of long-lived tangible store assets at the store level, which is the lowest level at which independent cash flows can be identified, when events or conditions indicate the carrying value of such assets may not be recoverable. If the store's projected undiscounted net cash flows expected to be generated by the related assets over the shorter of the remaining useful life or the remaining term of the lease are less than the carrying value of the subject assets, we then measure impairment based on a discounted cash flow model and record an impairment charge as the excess of carrying value and estimated fair value using Level 3 fair valuation inputs. As a result of our tests for impairment of our long-lived tangible store assets classified as held and used, an impairment of $2.5 million , $1.6 million and $1.2 million was recorded for fiscal years 2018 , 2017 and 2016 , respectively. There was $0.1 million remaining fair value of the assets that were impaired during fiscal year 2018 and no remaining fair value of the assets that were impaired during fiscal year 2017 . We assess non-store tangible assets, including capitalized software costs in use or under development, for impairment if events or changes in circumstances indicate that the carrying value of those assets may not be recoverable. During fiscal years 2018 and 2016 there was no impairment of capitalized software. There was $1.5 million in impairment of capitalized software during fiscal year 2017 . |
Income Taxes | Income Taxes We account for deferred income taxes based on the asset and liability method. The Company must make certain estimates and judgments in determining income tax expense. We are required to determine the aggregate amount of income tax expense to accrue and the amount which will be currently payable or refundable based upon tax statutes of each jurisdiction in which the Company does business. Deferred income taxes are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets also include future tax benefits to be derived from the utilization of tax loss carry-forwards and application of certain carry-forward credits. The net carrying amount of deferred income tax assets and liabilities is recorded in non-current deferred income tax liabilities in the accompanying consolidated balance sheets. Deferred income taxes are measured using enacted tax rates in effect for the years in which those differences are expected to be recovered or settled. The effect on deferred taxes from a change in the tax rate is recognized through continuing operations in the period that includes the enactment of the change. Changes in tax laws and rates could affect recorded deferred tax assets and liabilities in the future. A valuation allowance is recorded if it is more-likely-than-not that some portion of a deferred tax asset will not be realized. Valuation allowances are released as positive evidence of future taxable income sufficient to realize the underlying deferred tax assets becomes available. We establish a liability for tax positions for which there is uncertainty as to whether the position will ultimately be sustained. We assess our tax positions by determining whether it is more-likely-than-not that the position will be sustained upon examination by the appropriate taxing authorities, including resolution of any related appeals or litigation, based solely on the technical merits of the position. These calculations and assessments involve estimates and judgments because the ultimate tax outcomes are uncertain and future events are unpredictable. See Note 6 . “Income Taxes” for further details. On December 22, 2017, the 2017 Tax Cuts and Jobs Act (the “Tax Legislation”) was enacted into law. We are required to recognize the effect of tax law changes in the period of enactment, such as re-measuring and reassessing the net realizability of our deferred tax assets and liabilities. Pursuant to SEC Staff Accounting Bulletin No. 118, Income Tax Accounting Implications of the Tax Legislation, the Company recognized provisional effects of the enactment of the Tax Legislation for which measurement could be reasonably estimated as of fiscal year end 2017. For fiscal year 2018 , the Company recorded adjustments to the provisional estimates related to depreciation expense. The adjustments to the provisional estimates of fiscal year end 2017 did not materially impact the effective tax rate of the Company during fiscal year 2018. See Note 6 . “Income Taxes” for additional information. |
Recently Issued Accounting Pronouncements | Adoption of New Accounting Pronouncements Revenue from Contracts with Customers. In May 2014, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2014-09, Revenue from Contracts with Customers. ASU No. 2014-09 provides new guidance related to the core principle that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. It also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments. Under the new guidance, there is a five-step model to apply to revenue recognition, consisting of: (1) determination of whether a contract, an agreement between two or more parties that creates legally enforceable rights and obligations, exists; (2) identification of the performance obligations in the contract; (3) determination of the transaction price; (4) allocation of the transaction price to the performance obligations in the contract; and (5) recognition of revenue when (or as) the performance obligation is satisfied. The Company adopted this new guidance in the first quarter of 2018 using the modified retrospective transition method. The adoption resulted in a $14.0 million and $11.8 million decrease in current and non-current deferred revenue, respectively, for certain contracts where we satisfy performance obligations over time and a related $6.8 million increase in deferred income tax liability, resulting in a net $19.0 million increase to retained earnings on the consolidated balance sheet as of December 30, 2017. Under previous guidance, we recognized revenue for eyecare club memberships on a ratable basis over the service period. Currently, we have selected the portfolio approach because our historical club membership data demonstrated that our club customers behave similarly, such that the difference between the portfolio approach and applying ASC 606 to each contract is not material. This change did not have a significant impact on our ongoing consolidated results of operations and the cumulative effect and the impact on revenues is described in Note 7 . “Revenue From Contracts with Customers”. Our results of operations for the reported periods after December 30, 2017 are presented under this amended guidance, while prior period amounts are not adjusted and continue to be reported in accordance with historical accounting guidance. Adoption of this new guidance did not result in significant changes to our business processes, systems or controls, or have a material impact on our results of operations and cash flows. The impact of adopting the amended guidance primarily relates to the timing of revenue recognition for our eyecare club memberships, which comprised approximately 3% of our consolidated net revenue during each of the most recent three fiscal years. See Note 7 . “Revenue From Contracts with Customers” for additional information. The following table summarizes the cumulative effect of adoption of ASC 606 on the Company’s consolidated balance sheet as of December 29, 2018 , which reflects the change in timing of revenue recognition relating to eyecare club memberships. In thousands With ASC 606 Adoption Without ASC 606 Adoption Impact of Adoption Current liabilities: Deferred revenue $ 52,144 $ 67,435 $ (15,291 ) Total current liabilities $ 211,652 $ 226,943 $ (15,291 ) Other non-current liabilities: Deferred revenue $ 20,134 $ 31,926 $ (11,792 ) Deferred income taxes, net $ 61,940 $ 55,002 $ 6,938 Total other non-current liabilities $ 136,038 $ 140,892 $ (4,854 ) Stockholders' equity: Retained earnings $ 74,840 $ 54,695 $ 20,145 Total stockholders' equity $ 743,154 $ 723,009 $ 20,145 The following table summarizes the impact of adoption on the Company’s consolidated statement of operations for the year ended December 29, 2018 : In thousands, except earnings per share With ASC 606 Adoption Without ASC 606 Adoption Impact of Adoption Revenue: Net sales of services and plans $ 267,242 $ 265,935 $ 1,307 Total net revenue $ 1,536,854 $ 1,535,547 $ 1,307 Income from operations $ 42,351 $ 41,044 $ 1,307 Earnings before income taxes $ 4,868 $ 3,561 $ 1,307 Income tax provision (benefit) $ (18,785 ) $ (19,119 ) $ 334 Net income $ 23,653 $ 22,680 $ 973 Earnings per share: Basic $ 0.31 $ 0.30 $ 0.01 Diluted $ 0.30 $ 0.29 $ 0.01 There were no other material impacts on our consolidated financial statements as a result of our adoption of this new guidance. Restricted Cash. In November 2016, the FASB issued ASU No. 2016-18, Restricted Cash . This new guidance requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents and amounts generally described as restricted cash or restricted cash equivalents. The Company adopted this new guidance during the first quarter of 2018 using full retrospective application to each period presented. The adoption of this new guidance did not have a material impact on the Company’s financial condition, results of operations, or cash flows. Share Based Payment Accounting. In June 2018, the FASB issued ASU No. 2018-07, Compensation - Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting . This new guidance expands the scope of Topic 718 to include share-based payments issued to nonemployees for goods or services. Consequently, the accounting for share-based payments to nonemployees and employees will be substantially aligned. The Company adopted this new guidance effective beginning of fiscal year 2018 . The adoption of this new guidance did not have a material impact on Company’s financial condition, results of operations, or cash flows. Future Adoption of Accounting Pronouncements Lease. In February 2016, the FASB issued ASU No. 2016-02, Leases . This new guidance establishes a right-of-use (“ROU”) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either financing or operating, with such classification affecting the pattern of expense recognition in the statement of operations. Disclosure of key information about leasing arrangements will also be required. This new guidance is effective for fiscal years beginning after December 15, 2018, and interim reporting periods within that fiscal year. In July 2018, the FASB issued ASU 2018-11, “ Leases: Targeted Improvements ,” as an amendment to ASU 2016-02, “ Leases ,” which provides entities with an additional transition method to recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. We will adopt the accounting standard using a modified retrospective transition approach in the first quarter of 2019, which applies the provisions of the new guidance at the effective date without adjusting the comparative periods presented, and will elect the package of practical expedients, short-term practical expedient and the expedient to not separate lease components from non-lease components. We currently believe the most significant impact of adopting this ASU relates to recording operating lease liabilities and related ROU assets estimated to be between $325.0 million and $345.0 million on the consolidated balance sheet as of December 30, 2018. The Company does not expect the adoption of this new guidance to have a significant impact on the recognition, measurement or presentation of lease expenses within our consolidated statements of operations. Other Comprehensive Income. In February 2018, the FASB issued Accounting Standards Update ASU 2018-02, Income Statement–Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income ("ASU 2018-02") . This guidance allows for an optional reclassification from accumulated other comprehensive income or loss to retained earnings for stranded tax effects as a result of the newly enacted federal corporate income tax rate under the Tax Legislation. This guidance is effective for interim and annual periods beginning after December 15, 2018, with early adoption permitted. We will adopt the guidance during the first quarter of fiscal year 2019, and do not expect to reclassify the stranded income tax benefit resulting from adoption of the Tax Legislation from AOCL into earnings until the maturity of our interest rate derivative contracts. No other impact to the Company’s financial condition, result of operations, or cash flows is expected. Cloud Computing. In August 2018, the FASB issued ASU No. 2018-15, Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (a consensus of the FASB Emerging Issues Task Force). This new guidance aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). This new guidance is effective for fiscal years beginning after December 15, 2019, and for interim periods within those fiscal years, with early adoption permitted. The amendments in this new guidance may be applied either retrospectively or prospectively. The Company is in the process of assessing the new guidance. Correction of Errors in Previously Issued Financial Statements In conjunction with fiscal 2018 year end financial reporting process, the Company identified errors in its previously issued consolidated financial statements related to lease accounting, specifically the accounting for tenant improvement allowances, straight-line rent and leasehold improvements. For certain leases, we depreciated leasehold improvements over a period longer than the remaining lease term. In addition, rent expense was understated as a result of amortizing tenant improvement allowances and recording straight-line rent adjustments over a period that differed from the lease term, which was determined giving consideration to those renewal periods that were reasonably assured of being exercised. In accordance with SEC Staff Accounting Bulletin 108, Considering the Effects of Prior Year Misstatements When Quantifying Misstatements in Current Year Financial Statements (codified as Topic 1-N) , the Company concluded that the correction of the errors was not material to any of its previously issued annual or interim financial statements. The Company has revised its previously issued consolidated financial statements contained in this Annual Report on Form 10-K to correct the effect of these immaterial errors for the corresponding periods. Accordingly, for these prior periods we revised the affected line items of our consolidated balance sheets, consolidated statements of operations and comprehensive income, consolidated statements of stockholders’ equity, and consolidated statements of cash flows. The correction of the errors resulted in a $0.9 million increase in accumulated deficit as of January 2, 2016. The following table presents the impact of these corrections on affected consolidated statements of operations and comprehensive income line items for the years ended December 30, 2017 and December 31, 2016 : Fiscal Year Fiscal Year In thousands, except earnings per share As Previously Reported Adjustments As Corrected As Previously Reported Adjustments As Corrected Operating Expenses: Selling, general and administrative expenses $ 597,924 $ 2,086 $ 600,010 $ 524,238 $ 1,631 $ 525,869 Depreciation and amortization $ 61,115 $ 859 $ 61,974 $ 51,993 $ 684 $ 52,677 Total operating expenses $ 671,106 $ 2,945 $ 674,051 $ 585,030 $ 2,315 $ 587,345 Income from operations $ 67,236 $ (2,945 ) $ 64,291 $ 66,384 $ (2,315 ) $ 64,069 Earnings before income taxes $ 7,173 $ (2,945 ) $ 4,228 $ 27,292 $ (2,315 ) $ 24,977 Income tax provision (benefit) $ (38,647 ) $ (263 ) $ (38,910 ) $ 12,534 $ (900 ) $ 11,634 Net income $ 45,820 $ (2,682 ) $ 43,138 $ 14,758 $ (1,415 ) $ 13,343 Earnings per share: Basic $ 0.77 $ (0.05 ) $ 0.72 $ 0.26 $ (0.02 ) $ 0.24 Diluted $ 0.74 $ (0.04 ) $ 0.70 $ 0.26 $ (0.03 ) $ 0.23 Comprehensive income: $ 50,508 $ (2,682 ) $ 47,826 $ 11,486 $ (1,415 ) $ 10,071 The following table presents the impact of these corrections on affected consolidated balance sheet line items as of December 30, 2017 : As of In thousands As Previously Reported Adjustments As Corrected Property and equipment, net $ 304,132 $ (1,852 ) $ 302,280 Total non-current assets $ 1,421,314 $ (1,852 ) $ 1,419,462 Total assets $ 1,583,791 $ (1,852 ) $ 1,581,939 Other liabilities $ 46,044 $ 4,858 $ 50,902 Deferred income taxes, net $ 73,648 $ (1,722 ) $ 71,926 Total other non-current liabilities $ 150,914 $ 3,136 $ 154,050 Retained earnings $ 37,145 $ (4,988 ) $ 32,157 Total stockholders’ equity $ 659,588 $ (4,988 ) $ 654,600 Total liabilities and stockholders’ equity $ 1,583,791 $ (1,852 ) $ 1,581,939 The following table presents the impact of these corrections on affected consolidated statements of cash flows line items for fiscal years ended December 30, 2017 and December 31, 2016 : Fiscal Year Fiscal Year In thousands As Previously Reported Adjustments As Corrected As Previously Reported Adjustments As Corrected Net income $ 45,820 $ (2,682 ) $ 43,138 $ 14,758 $ (1,415 ) $ 13,343 Depreciation and amortization $ 61,115 $ 859 $ 61,974 $ 51,993 $ 684 $ 52,677 Deferred income tax expense (benefit) $ (39,734 ) $ (263 ) $ (39,997 ) $ 11,181 $ (900 ) $ 10,281 Changes in operating assets and liabilities: Other liabilities $ 12,879 $ 2,086 $ 14,965 $ 9,406 $ 1,631 $ 11,037 |
Business and Significant Acco_3
Business and Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Accounting Policies [Abstract] | |
Schedule of Property and Equipment, Net | P&E is depreciated for financial accounting purposes using the straight-line method over the following estimated useful lives: Buildings 34 years Equipment 5 - 7 years Information systems hardware and software (a) 2 - 5 years Furniture and fixtures 6 years Leasehold improvements (b) 10 years P&E under capital leases (b) 10 years ____________ (a) Costs of developing or obtaining software for internal use, such as direct costs of materials or services and internal payroll costs related to the software development projects, are capitalized to information systems hardware and software. (b) Depreciation of leasehold improvements is recognized over the shorter of the estimated useful life of the asset or the term of the lease. The term of the lease includes renewal options for additional periods if the exercise of the renewal is considered to be reasonably assured. In thousands As of As of Property and equipment, net: Land and building $ 3,632 $ 3,608 Equipment 160,958 136,876 Information systems hardware and software 101,809 83,212 Furniture and fixtures 48,992 42,708 Leasehold improvements 186,499 155,369 Construction in progress 40,697 18,375 Property under capital leases 25,446 11,756 568,033 451,904 Less accumulated depreciation 212,916 149,624 $ 355,117 $ 302,280 |
Schedule of Impact of Adoption of New Accounting Pronouncement | The following table summarizes the cumulative effect of adoption of ASC 606 on the Company’s consolidated balance sheet as of December 29, 2018 , which reflects the change in timing of revenue recognition relating to eyecare club memberships. In thousands With ASC 606 Adoption Without ASC 606 Adoption Impact of Adoption Current liabilities: Deferred revenue $ 52,144 $ 67,435 $ (15,291 ) Total current liabilities $ 211,652 $ 226,943 $ (15,291 ) Other non-current liabilities: Deferred revenue $ 20,134 $ 31,926 $ (11,792 ) Deferred income taxes, net $ 61,940 $ 55,002 $ 6,938 Total other non-current liabilities $ 136,038 $ 140,892 $ (4,854 ) Stockholders' equity: Retained earnings $ 74,840 $ 54,695 $ 20,145 Total stockholders' equity $ 743,154 $ 723,009 $ 20,145 The following table summarizes the impact of adoption on the Company’s consolidated statement of operations for the year ended December 29, 2018 : In thousands, except earnings per share With ASC 606 Adoption Without ASC 606 Adoption Impact of Adoption Revenue: Net sales of services and plans $ 267,242 $ 265,935 $ 1,307 Total net revenue $ 1,536,854 $ 1,535,547 $ 1,307 Income from operations $ 42,351 $ 41,044 $ 1,307 Earnings before income taxes $ 4,868 $ 3,561 $ 1,307 Income tax provision (benefit) $ (18,785 ) $ (19,119 ) $ 334 Net income $ 23,653 $ 22,680 $ 973 Earnings per share: Basic $ 0.31 $ 0.30 $ 0.01 Diluted $ 0.30 $ 0.29 $ 0.01 |
Schedule of Error Corrections and Prior Period Adjustments | The following table presents the impact of these corrections on affected consolidated statements of operations and comprehensive income line items for the years ended December 30, 2017 and December 31, 2016 : Fiscal Year Fiscal Year In thousands, except earnings per share As Previously Reported Adjustments As Corrected As Previously Reported Adjustments As Corrected Operating Expenses: Selling, general and administrative expenses $ 597,924 $ 2,086 $ 600,010 $ 524,238 $ 1,631 $ 525,869 Depreciation and amortization $ 61,115 $ 859 $ 61,974 $ 51,993 $ 684 $ 52,677 Total operating expenses $ 671,106 $ 2,945 $ 674,051 $ 585,030 $ 2,315 $ 587,345 Income from operations $ 67,236 $ (2,945 ) $ 64,291 $ 66,384 $ (2,315 ) $ 64,069 Earnings before income taxes $ 7,173 $ (2,945 ) $ 4,228 $ 27,292 $ (2,315 ) $ 24,977 Income tax provision (benefit) $ (38,647 ) $ (263 ) $ (38,910 ) $ 12,534 $ (900 ) $ 11,634 Net income $ 45,820 $ (2,682 ) $ 43,138 $ 14,758 $ (1,415 ) $ 13,343 Earnings per share: Basic $ 0.77 $ (0.05 ) $ 0.72 $ 0.26 $ (0.02 ) $ 0.24 Diluted $ 0.74 $ (0.04 ) $ 0.70 $ 0.26 $ (0.03 ) $ 0.23 Comprehensive income: $ 50,508 $ (2,682 ) $ 47,826 $ 11,486 $ (1,415 ) $ 10,071 The following table presents the impact of these corrections on affected consolidated balance sheet line items as of December 30, 2017 : As of In thousands As Previously Reported Adjustments As Corrected Property and equipment, net $ 304,132 $ (1,852 ) $ 302,280 Total non-current assets $ 1,421,314 $ (1,852 ) $ 1,419,462 Total assets $ 1,583,791 $ (1,852 ) $ 1,581,939 Other liabilities $ 46,044 $ 4,858 $ 50,902 Deferred income taxes, net $ 73,648 $ (1,722 ) $ 71,926 Total other non-current liabilities $ 150,914 $ 3,136 $ 154,050 Retained earnings $ 37,145 $ (4,988 ) $ 32,157 Total stockholders’ equity $ 659,588 $ (4,988 ) $ 654,600 Total liabilities and stockholders’ equity $ 1,583,791 $ (1,852 ) $ 1,581,939 The following table presents the impact of these corrections on affected consolidated statements of cash flows line items for fiscal years ended December 30, 2017 and December 31, 2016 : Fiscal Year Fiscal Year In thousands As Previously Reported Adjustments As Corrected As Previously Reported Adjustments As Corrected Net income $ 45,820 $ (2,682 ) $ 43,138 $ 14,758 $ (1,415 ) $ 13,343 Depreciation and amortization $ 61,115 $ 859 $ 61,974 $ 51,993 $ 684 $ 52,677 Deferred income tax expense (benefit) $ (39,734 ) $ (263 ) $ (39,997 ) $ 11,181 $ (900 ) $ 10,281 Changes in operating assets and liabilities: Other liabilities $ 12,879 $ 2,086 $ 14,965 $ 9,406 $ 1,631 $ 11,037 |
Details of Certain Balance Sh_2
Details of Certain Balance Sheet Accounts (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Accounts Receivable, Net | In thousands As of As of Accounts receivable, net: Trade receivables $ 27,356 $ 28,862 Credit card receivables 16,636 10,459 Tenant improvement allowances receivable 5,149 4,794 Other receivables 4,206 2,936 Allowance for uncollectible accounts (2,612 ) (3,858 ) $ 50,735 $ 43,193 |
Schedule of Inventories | In thousands As of As of Inventories: Raw materials and work in process (1) $ 59,946 $ 43,953 Finished goods 56,076 47,198 $ 116,022 $ 91,151 (1) Due to the immaterial amount of estimated work in process and the short lead times for the conversion of raw materials to finished goods, the Company does not separately present raw materials and work in process. |
Schedule of Property and Equipment, Net | P&E is depreciated for financial accounting purposes using the straight-line method over the following estimated useful lives: Buildings 34 years Equipment 5 - 7 years Information systems hardware and software (a) 2 - 5 years Furniture and fixtures 6 years Leasehold improvements (b) 10 years P&E under capital leases (b) 10 years ____________ (a) Costs of developing or obtaining software for internal use, such as direct costs of materials or services and internal payroll costs related to the software development projects, are capitalized to information systems hardware and software. (b) Depreciation of leasehold improvements is recognized over the shorter of the estimated useful life of the asset or the term of the lease. The term of the lease includes renewal options for additional periods if the exercise of the renewal is considered to be reasonably assured. In thousands As of As of Property and equipment, net: Land and building $ 3,632 $ 3,608 Equipment 160,958 136,876 Information systems hardware and software 101,809 83,212 Furniture and fixtures 48,992 42,708 Leasehold improvements 186,499 155,369 Construction in progress 40,697 18,375 Property under capital leases 25,446 11,756 568,033 451,904 Less accumulated depreciation 212,916 149,624 $ 355,117 $ 302,280 |
Schedule of Other Payables and Accrued Expenses | In thousands As of As of Other payables and accrued expenses: Employee compensation and benefits $ 20,529 $ 21,134 Self-insurance reserves 8,117 6,854 Capital expenditures 14,078 10,782 Advertising 2,076 2,900 Reserves for customer returns and remakes 4,645 4,565 Legacy management and services agreement 5,383 6,000 Fair value of derivative liabilities 3,130 6,969 Supplies and other store support expenses 4,929 3,014 Litigation settlements 3,938 3,942 Other 14,179 11,451 $ 81,004 $ 77,611 |
Schedule of Other Non-current Liabilities | In thousands As of As of Other non-current liabilities: Fair value of derivative liabilities $ 3,505 $ 9,155 Tenant improvements (1) 30,851 25,854 Deferred rental expenses 11,926 9,144 Self-insurance reserves 5,114 4,564 Other 2,568 2,185 $ 53,964 $ 50,902 (1) Obligations for tenant improvements are amortized as a reduction of rental expense over the life of the respective leases. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The gross carrying amount and accumulated impairment of Company’s goodwill balances for 2018 and 2017 are as follows: As of As of In thousands Gross Carrying Accumulated Gross Carrying Accumulated Owned & Host Segment $ 736,901 $ (19,357 ) $ 736,901 $ (4,226 ) Legacy Segment 60,069 — 60,069 — Corporate/Other 8,107 (8,107 ) 8,107 (8,107 ) $ 805,077 $ (27,464 ) $ 805,077 $ (12,333 ) |
Schedule of Indefinite-Lived Intangible Assets | Indefinite-lived, non-amortizing intangible assets by major asset class are as follows: In thousands As of As of Trademarks and trade names: America's Best $ 200,547 $ 200,547 Eyeglass World 40,000 40,000 $ 240,547 $ 240,547 |
Schedule of Definite-Lived Intangible Assets | Definite-lived, amortizing intangible assets by major asset class are as follows: As of As of In thousands Gross Carrying Accumulated Remaining Life Gross Carrying Accumulated Remaining Life Contracts and relationships: Legacy $ 65,000 $ 28,359 6 $ 65,000 $ 22,470 7 Fred Meyer 35,000 7,303 18 35,000 5,787 19 Customer database 4,400 4,224 — 4,400 3,347 1 Other 738 720 — 738 631 1 $ 105,138 $ 40,606 $ 105,138 $ 32,235 |
Schedule of Aggregate Future Estimated Amortization Expense | Aggregate amortization expense is included in depreciation and amortization in the accompanying consolidated statements of operations. Aggregate future estimated amortization expense is shown in the following table: Fiscal Year In thousands 2019 $ 7,598 2020 7,547 2021 7,405 2022 7,405 2023 7,405 Thereafter 27,172 $ 64,532 |
Long-term Debt (Tables)
Long-term Debt (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | Long-term debt consists of the following: In thousands As of As of First Lien - Term Loan B, due November 20, 2024 $ 364,300 $ 568,575 First Lien - Term Loan A, due October 9, 2023 200,000 — Total term loans before unamortized discount 564,300 568,575 Unamortized discount (10,673 ) (11,322 ) Total term loans 553,627 557,253 Less current maturities (5,000 ) (5,700 ) Term loans - non-current portion 548,627 551,553 Capitalized lease obligations 24,485 11,985 Less current maturities (2,567 ) (1,558 ) Long-term debt, less current portion and unamortized debt discount $ 570,545 $ 561,980 |
Schedule of Annual Maturities of Debt | Scheduled annual maturities of debt are as follows: Fiscal Year In thousands 2019 $ 5,000 2020 5,000 2021 5,000 2022 10,000 2023 175,000 Thereafter 364,300 $ 564,300 |
Schedule of Future Minimum Lease Payments for Capital Leases | Future minimum lease payments required under our capital leases as of fiscal year end 2018 are as follows: Fiscal Year In thousands 2019 $ 5,786 2020 5,500 2021 5,395 2022 5,324 2023 4,346 Thereafter 13,062 Total minimum lease payments 39,413 Less: Amount representing interest (14,928 ) Present value of net minimum lease payments 24,485 Less: Current maturities of capital lease obligations (2,567 ) Capital lease obligations - non-current portion $ 21,918 |
Stock Incentive Plans (Tables)
Stock Incentive Plans (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Stock Option Activity | The following table summarizes performance-based stock option activity: Number of Options Outstanding Weighted Average Exercise Price ($) Weighted Average Remaining Contractual Life (Years) Aggregate Intrinsic Value (In Thousands) Outstanding options at December 30, 2017 6,524,152 6.07 Exercised (2,051,033 ) 5.87 Forfeited (329,338 ) 5.33 Outstanding options at December 29, 2018 4,143,781 6.23 5.91 $ 94,291 Vested and exercisable at December 29, 2018 1,737,952 5.87 5.79 $ 40,172 The following table summarizes service-based stock option activity (amounts reflect the effects of modifications to exercise prices resulting from the recapitalization dividend discussed in Note 8 . “Related Party Transactions”): Number of Options Outstanding Weighted Average Exercise Price ($) Weighted Average Remaining Contractual Life (Years) Aggregate Intrinsic Value (In Thousands) Outstanding options at December 30, 2017 3,822,915 7.22 Exercised (1,278,223 ) 5.67 Forfeited (70,185 ) 7.42 Outstanding options at December 29, 2018 2,474,507 8.02 6.26 $ 51,877 Vested and exercisable at December 29, 2018 1,212,053 7.35 5.81 $ 26,219 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax (Benefit) Provision | The income tax provision (benefit) consists of: In thousands Fiscal Year Fiscal Year Fiscal Year Current income tax: Federal $ 174 $ 5 $ 51 State 381 1,082 1,302 Deferred income tax: Federal (15,687 ) (40,136 ) 9,243 State (3,653 ) 139 1,038 Income tax provision (benefit) $ (18,785 ) $ (38,910 ) $ 11,634 |
Schedule of Effective Income Tax Rate Reconciliation | Our income tax provision (benefit) differs from the amounts computed by multiplying earnings before income taxes by the statutory federal income tax rate as shown in the following table: In thousands Fiscal Year Fiscal Year Fiscal Year Federal income tax provision at statutory rate $ 1,022 $ 1,480 $ 8,742 State income tax provision, net of federal income tax 226 165 973 Increase in deferred tax asset valuation allowance 318 769 979 Goodwill impairment 3,879 — — Benefit of tax legislation — (42,089 ) — Tax benefit of equity-based compensation deductions (25,544 ) — — Other, net 1,314 765 940 Net income tax provision (benefit) $ (18,785 ) $ (38,910 ) $ 11,634 Effective income tax rate (385.9 )% (920.3 )% 46.6 % |
Schedule of Deferred Tax Assets and Liabilities | The sources of the differences between the financial accounting and tax bases of our assets and liabilities that give rise to the deferred tax assets and deferred tax liabilities and the tax effects of each are as follows: In thousands As of As of Deferred tax assets: NOL carry-forwards $ 13,614 $ 6,278 Deferred interest expense carry-forwards 4,655 — AMT payment and employment credits 4,679 3,741 Deferred revenue 4,984 7,643 Accrued expenses and reserves 11,370 14,178 Loss on equity and other investments 1,493 1,175 Stock option compensation 5,893 6,606 Unrealized losses on hedging instruments 1,700 4,130 Other 1,193 4,222 Subtotal 49,581 47,973 Valuation allowances 1,614 1,296 Total net deferred tax assets 47,967 46,677 Deferred tax liabilities: Depreciation of property and equipment (32,631 ) (37,877 ) Amortization of intangible assets (75,422 ) (78,329 ) Other (1,854 ) (2,397 ) Total deferred tax liabilities (109,907 ) (118,603 ) Net deferred tax liabilities $ (61,940 ) $ (71,926 ) |
Revenue From Contracts With C_2
Revenue From Contracts With Customers (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Revenues | The following disaggregation of revenues depicts our revenues based on the timing of revenue recognition: In thousands Fiscal Year Revenues recognized at a point in time $ 1,397,801 Revenues recognized over time 139,053 Total net revenue $ 1,536,854 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Agreements with Equity Sponsors | Under certain agreements we have entered into with KKR Sponsor and Berkshire, we recorded the following expenses: In thousands Fiscal Year Fiscal Year Fiscal Year KKR Sponsor $ — $ 7,259 $ 851 Berkshire $ — $ 955 $ 199 Transactions with our non-consolidated investee included in our consolidated balance sheets and statements of operations were as follows: In thousands As of As of Balance sheets Prepaid expenses and other current assets $ — $ 172 Other assets (1) $ 1,522 $ 1,518 (1) Other assets include loan receivable of $1.5 million as of December 29, 2018 and December 30, 2017. In thousands Fiscal Year Fiscal Year Fiscal Year Statements of operations Licensing fees (SG&A) $ 172 $ 955 $ 987 |
Equity in Net Assets of Non-C_2
Equity in Net Assets of Non-Consolidated Investee (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of Financial Information and Transactions with Equity Method Affiliate | Summarized balance sheet information for our investee is as follows: In thousands As of As of Current assets $ 2,197 $ 2,407 Non-current assets 558 557 Total assets 2,755 2,964 Current liabilities 6,321 1,046 Non-current liabilities 3,000 3,000 Total liabilities 9,321 4,046 Net assets $ (6,566 ) $ (1,082 ) Summarized income statement information for our investee is as follows: In thousands Fiscal Year Fiscal Year Fiscal Year Revenues $ 3,871 $ 6,244 $ 5,847 Net loss $ (5,632 ) $ (3,433 ) $ (4,153 ) National Vision’s share of net loss $ (1,304 ) $ (1,001 ) $ (1,370 ) |
Schedule of Transactions with Affiliate | Under certain agreements we have entered into with KKR Sponsor and Berkshire, we recorded the following expenses: In thousands Fiscal Year Fiscal Year Fiscal Year KKR Sponsor $ — $ 7,259 $ 851 Berkshire $ — $ 955 $ 199 Transactions with our non-consolidated investee included in our consolidated balance sheets and statements of operations were as follows: In thousands As of As of Balance sheets Prepaid expenses and other current assets $ — $ 172 Other assets (1) $ 1,522 $ 1,518 (1) Other assets include loan receivable of $1.5 million as of December 29, 2018 and December 30, 2017. In thousands Fiscal Year Fiscal Year Fiscal Year Statements of operations Licensing fees (SG&A) $ 172 $ 955 $ 987 |
Deferred Revenue (Tables)
Deferred Revenue (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Roll-Forward of Deferred Revenue | The following depicts a roll-forward of deferred revenue: Fiscal Year 2018 In thousands Product Protection Plans Eye Care Clubs HMO Memberships Total Beginning of the year $ 26,731 $ 67,430 $ 54 $ 94,215 Adjustment for adoption of ASU 2014-09 — (25,776 ) — (25,776 ) Beginning of the year - As Adjusted 26,731 41,654 54 68,439 Sold 58,860 47,923 1,384 108,167 Revenue recognized (56,816 ) (46,089 ) (1,423 ) (104,328 ) End of year $ 28,775 $ 43,488 $ 15 $ 72,278 Current $ 28,403 $ 23,726 $ 15 $ 52,144 Non-current 372 19,762 — 20,134 $ 28,775 $ 43,488 $ 15 $ 72,278 Fiscal Year 2017 In thousands Product Protection Plans Eye Care HMO Memberships Total Beginning of the year $ 23,855 $ 63,478 $ 95 $ 87,428 Sold 54,028 46,443 7,926 108,397 Revenue recognized (51,152 ) (42,491 ) (7,967 ) (101,610 ) End of year $ 26,731 $ 67,430 $ 54 $ 94,215 Current $ 26,312 $ 36,627 $ 54 $ 62,993 Non-current 419 30,803 — 31,222 $ 26,731 $ 67,430 $ 54 $ 94,215 |
Schedule of Expected Period of Recognition of Deferred Revenue in Future Operating Results | Deferred revenue recorded as of fiscal year end 2018 is expected to be reflected in future operating results as follows: Fiscal Year In thousands 2019 $ 52,144 2020 15,029 2021 4,840 2022 204 2023 61 $ 72,278 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases | As of fiscal year end 2018 , aggregate future minimum rental payments under our operating leases are as follows: Fiscal Year In thousands 2019 $ 69,372 2020 63,218 2021 56,219 2022 49,303 2023 42,545 Thereafter 126,388 $ 407,045 |
Schedule of Product Warranty Liability | The following details the activity in our product warranty liability accounts: In thousands Fiscal Year Fiscal Year Beginning of year balance $ 1,593 $ 1,343 Accrued obligation 29,943 26,806 Claims paid (29,794 ) (26,556 ) End of year balance $ 1,742 $ 1,593 |
Interest Rate Derivatives (Tabl
Interest Rate Derivatives (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Fair Value of Cash Flow Hedge Derivative Contracts | Our cash flow hedge position related to interest rate derivative contracts is as follows: In thousands Notional Amount Final Maturity Date Other Payables and Accrued Expenses Other Liabilities AOCL, Net of Tax (1) As of $ 500,000 March 2021 $ 6,969 $ 9,155 $ 9,868 As of $ 465,000 March 2021 $ 3,130 $ 3,505 $ 2,810 (1) Includes stranded income tax benefit of $2.1 million within AOCL from adopting provisions of the Tax Legislation of 2017 during the year ended December 30, 2017. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of Reconciliation of Basic and Diluted EPS Calculations | A reconciliation of the numerators and denominators of the basic and diluted EPS calculations is as follows: In thousands, except EPS Fiscal Year Fiscal Year Fiscal Year Net income $ 23,653 $ 43,138 $ 13,343 Weighted average shares outstanding for basic EPS 75,899 59,895 56,185 Effect of dilutive securities: Stock options 3,129 2,140 817 Restricted Stock 13 — — Weighted average shares outstanding for diluted EPS 79,041 62,035 57,001 Basic EPS $ 0.31 $ 0.72 $ 0.24 Diluted EPS $ 0.30 $ 0.70 $ 0.23 Anti-dilutive options outstanding excluded from EPS — 254 88 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Financial Data by Segment | The following is a summary of certain financial data for each of our segments. Reportable segment information is presented on the same basis as our consolidated financial statements, except for net revenue, which is presented on a cash basis, including point of sales for managed care payors and excluding the effects of unearned and deferred revenue, consistent with what the CODM regularly reviews. Asset information is not included in the following summary since the CODM does not regularly review such information for the reportable segments. Fiscal Year 2018 In thousands Owned & Host Legacy Corporate/Other Reconciliations Total Segment product revenues $ 956,355 $ 103,890 $ 208,875 $ 492 $ 1,269,612 Segment services and plans revenues 217,047 50,522 3,552 (3,879 ) 267,242 Total net revenue 1,173,402 154,412 212,427 (3,387 ) 1,536,854 Cost of products 280,720 46,986 183,459 241 511,406 Cost of services and plans 178,362 20,272 3,531 — 202,165 Total costs applicable to revenue 459,082 67,258 186,990 241 713,571 SG&A 457,618 54,091 175,767 — 687,476 Asset impairment — — 17,630 — 17,630 Debt issuance cost — — 200 — 200 Other expense, net — — 1,487 — 1,487 EBITDA $ 256,702 $ 33,063 $ (169,647 ) $ (3,628 ) $ 116,490 Depreciation and amortization 74,339 Interest expense, net 37,283 Income before income taxes $ 4,868 Fiscal Year 2017 In thousands Owned & Host Legacy Corporate/Other Reconciliations Total Segment product revenues $ 847,866 $ 103,887 $ 179,718 $ (2,158 ) $ 1,129,313 Segment services and plans revenues 190,701 49,955 12,172 (6,833 ) 245,995 Total net revenue 1,038,567 153,842 191,890 (8,991 ) 1,375,308 Cost of products 248,548 48,275 159,789 (534 ) 456,078 Cost of services and plans 153,691 16,624 10,573 — 180,888 Total costs applicable to revenue 402,239 64,899 170,362 (534 ) 636,966 SG&A 403,848 52,705 143,457 — 600,010 Asset impairment — — 4,117 — 4,117 Debt issuance cost — — 4,527 — 4,527 Litigation settlement — — 7,000 — 7,000 Other expense, net — — 950 — 950 EBITDA $ 232,480 $ 36,238 $ (138,523 ) $ (8,457 ) $ 121,738 Depreciation and amortization 61,974 Interest expense, net 55,536 Income before income taxes $ 4,228 Fiscal Year 2016 In thousands Owned & Host Legacy Corporate/Other Reconciliations Total Segment product revenues $ 730,741 $ 103,618 $ 151,083 $ (4,489 ) $ 980,953 Segment services and plans revenues 158,667 48,592 17,533 (9,550 ) 215,242 Total net revenue 889,408 152,210 168,616 (14,039 ) 1,196,195 Cost of products 212,208 48,097 131,257 (1,193 ) 390,369 Cost of services and plans 127,904 11,510 14,998 — 154,412 Total costs applicable to revenue 340,112 59,607 146,255 (1,193 ) 544,781 SG&A 345,469 52,925 127,475 — 525,869 Asset impairment — — 7,132 — 7,132 Other expense, net — — 1,667 — 1,667 EBITDA $ 203,827 $ 39,678 $ (113,913 ) $ (12,846 ) $ 116,746 Depreciation and amortization 52,677 Interest expense, net 39,092 Income before income taxes $ 24,977 |
Schedule of Net Product Revenue | The following table presents our consolidated net product revenue information: In thousands Fiscal Year Fiscal Year Fiscal Year Net Product Sales Eyeglasses and sunglasses $ 851,328 $ 763,268 $ 663,253 Contact lenses 410,839 358,808 310,322 Accessories and other 7,445 7,237 7,378 Total net product revenues $ 1,269,612 $ 1,129,313 $ 980,953 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Loss | The following table presents the change in AOCL, net of tax during the fiscal years 2018 , 2017 and 2016 , respectively: In thousands Fiscal Year Fiscal Year Fiscal Year Cash flow hedging activity Balance at beginning of fiscal year $ (9,868 ) $ (14,556 ) $ (11,284 ) Other comprehensive income (loss) before reclassification 3,182 (1,051 ) (5,116 ) Tax effect of other comprehensive income (loss) before reclassification (815 ) 436 1,844 Amount reclassified from AOCL 6,306 8,664 — Tax effect of amount reclassified from AOCL (1,615 ) (3,361 ) — Net current period other comprehensive income (loss), net of tax 7,058 4,688 (3,272 ) Balance at end of fiscal year $ (2,810 ) $ (9,868 ) $ (14,556 ) |
Quarterly Financial Informati_2
Quarterly Financial Information (Unaudited) (Tables) | 12 Months Ended |
Dec. 29, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | The following tables present unaudited quarterly financial information for the periods presented: Fiscal Year 2018 In thousands, except EPS Fourth Quarter Third Quarter Second Quarter First Quarter Total net revenue $ 355,922 $ 387,425 $ 385,532 $ 407,975 Total costs applicable to revenue $ 173,470 $ 182,588 $ 177,059 $ 180,454 Income (loss) from operations $ (19,387 ) $ (2,083 ) $ 24,973 $ 38,848 Net income (loss) $ (18,440 ) $ 5,171 $ 12,467 $ 24,455 Weighted-average shares used in computing basic EPS 77,526 76,118 75,249 74,714 Weighted-average shares used in computing diluted EPS 77,526 79,710 77,858 77,837 Basic EPS $ (0.24 ) $ 0.07 $ 0.17 $ 0.33 Diluted EPS $ (0.24 ) $ 0.06 $ 0.16 $ 0.31 Anti-dilutive options outstanding excluded from EPS 3,130 — — — Fiscal Year 2017 In thousands, except EPS Fourth Quarter Third Quarter Second Quarter First Quarter Total net revenue $ 321,819 $ 346,089 $ 337,541 $ 369,859 Total costs applicable to revenue $ 152,393 $ 162,358 $ 156,408 $ 165,808 Income (loss) from operations $ (3,606 ) $ 15,816 $ 13,059 $ 39,022 Net income (loss) $ 27,341 $ 1,089 $ (1,933 ) $ 16,641 Weighted-average shares used in computing basic EPS 70,454 56,414 56,414 56,261 Weighted-average shares used in computing diluted EPS 73,256 58,459 56,414 57,934 Basic EPS $ 0.39 $ 0.02 $ (0.03 ) $ 0.30 Diluted EPS $ 0.37 $ 0.02 $ (0.03 ) $ 0.29 Anti-dilutive options outstanding excluded from EPS — — 2,036 218 |
Business and Significant Acco_4
Business and Significant Accounting Policies - Nature of Operations (Details) | Dec. 29, 2018storestore_brand | Dec. 30, 2017store |
Accounting Policies [Abstract] | ||
Number of retail optical locations | store | 1,082 | 1,013 |
Number of store brands | store_brand | 5 |
Business and Significant Acco_5
Business and Significant Accounting Policies - Initial and Secondary Public Offerings (Details) - USD ($) $ / shares in Units, $ in Thousands | Oct. 09, 2018 | Oct. 30, 2017 | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 |
Class of Stock [Line Items] | |||||
Repayments of long-term debt | $ 204,275 | $ 367,660 | $ 6,515 | ||
Extinguishment of debt | $ 353,300 | ||||
Transaction-related costs expected during fourth quarter | 4,800 | ||||
Component of proceeds from initial public offering to be used for general corporate purposes | 11,000 | ||||
KKR | |||||
Class of Stock [Line Items] | |||||
Termination fees to related party | $ 3,600 | $ 0 | 7,259 | 851 | |
Ownership percentage in Company retained by equity sponsor (percent) | 58.20% | 11.70% | |||
Berkshire | |||||
Class of Stock [Line Items] | |||||
Termination fees to related party | $ 800 | $ 0 | $ 955 | $ 199 | |
Ownership percentage in Company retained by equity sponsor (percent) | 13.60% | 2.70% | |||
Term Loan | Second Lien Term Loans | |||||
Class of Stock [Line Items] | |||||
Repayments of long-term debt | $ 125,000 | ||||
Term Loan | First Lien Term Loans | |||||
Class of Stock [Line Items] | |||||
Repayments of long-term debt | $ 200,000 | $ 235,000 | |||
IPO | |||||
Class of Stock [Line Items] | |||||
Shares issued in public offering (shares) | 18,170,000 | ||||
Shares issued, offering price (in usd per share) | $ 22 | ||||
Net proceeds from initial public offering | $ 375,800 | ||||
Underwriting discounts and commissions | 24,000 | ||||
IPO | KKR | |||||
Class of Stock [Line Items] | |||||
Underwriting discounts and commissions | $ 700 | ||||
Underwriter Option | |||||
Class of Stock [Line Items] | |||||
Shares issued in public offering (shares) | 2,370,000 | ||||
Underwritten Public Offering | |||||
Class of Stock [Line Items] | |||||
Shares issued in public offering (shares) | 42,914,852 |
Business and Significant Acco_6
Business and Significant Accounting Policies - Certificate of Incorporation and Bylaws, and Stock Split (Details) | Oct. 24, 2017 | Dec. 29, 2018shares | Dec. 30, 2017shares | Oct. 30, 2017$ / sharesshares |
Accounting Policies [Abstract] | ||||
Common stock, authorized (shares) | 200,000,000 | 200,000,000 | 200,000,000 | |
Preferred stock, authorized (shares) | 50,000,000 | |||
Preferred stock, par value (in usd per share) | $ / shares | $ 0.01 | |||
Stock split conversion ratio | 1.96627 |
Business and Significant Acco_7
Business and Significant Accounting Policies - Accounts Receivable and Inventories (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Concentration Risk [Line Items] | |||
Impairment recognized on receivables | $ 7,107 | $ 8,035 | $ 4,052 |
Supplier Concentration Risk | Contact Lenses | Three Key Vendors | |||
Concentration Risk [Line Items] | |||
Concentration risk (percent) | 93.00% | ||
Supplier Concentration Risk | Frames | Two Key Vendors | |||
Concentration Risk [Line Items] | |||
Concentration risk (percent) | 52.00% | ||
Supplier Concentration Risk | Lenses | One Key Vendor | |||
Concentration Risk [Line Items] | |||
Concentration risk (percent) | 90.00% |
Business and Significant Acco_8
Business and Significant Accounting Policies - Property and Equipment, Goodwill and Intangible Assets (Details) - USD ($) | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Accounting Policies [Abstract] | |||
Impairment of capitalized software costs | $ 0 | $ 1,500,000 | $ 0 |
Minimum | |||
Intangible Assets | |||
Definite-lived intangible assets, estimated useful life (in years) | 4 years | ||
Maximum | |||
Intangible Assets | |||
Definite-lived intangible assets, estimated useful life (in years) | 23 years | ||
Long-lived tangible store assets held and used | |||
Property and Equipment | |||
Impairment of long-lived assets held and used | $ 2,500,000 | $ 1,600,000 | $ 1,200,000 |
Assets impaired during 2018 | |||
Property and Equipment | |||
Estimated fair value of impaired long-lived assets held and used | 100,000 | ||
Assets impaired during 2017 | |||
Property and Equipment | |||
Estimated fair value of impaired long-lived assets held and used | $ 0 | ||
Buildings | |||
Property and Equipment | |||
Estimated useful life (in years) | 34 years | ||
Equipment | Minimum | |||
Property and Equipment | |||
Estimated useful life (in years) | 5 years | ||
Equipment | Maximum | |||
Property and Equipment | |||
Estimated useful life (in years) | 7 years | ||
Information systems hardware and software | Minimum | |||
Property and Equipment | |||
Estimated useful life (in years) | 2 years | ||
Information systems hardware and software | Maximum | |||
Property and Equipment | |||
Estimated useful life (in years) | 5 years | ||
Furniture and fixtures | |||
Property and Equipment | |||
Estimated useful life (in years) | 6 years | ||
Leasehold improvements | |||
Property and Equipment | |||
Estimated useful life (in years) | 10 years | ||
P&E under capital leases | |||
Property and Equipment | |||
Estimated useful life (in years) | 10 years |
Business and Significant Acco_9
Business and Significant Accounting Policies - Narrative (Details) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018USD ($)optionpair | Dec. 30, 2017USD ($) | Dec. 31, 2016USD ($) | |
Accounting Policies [Abstract] | |||
Reinsurance retention level per claim | $ 300 | ||
Reinsurance retention level per individual | 200 | ||
Estimated insurance recoveries, current | 800 | $ 600 | |
Estimated insurance recoveries, non-current | 1,100 | 1,000 | |
Self-insurance reserves, current | 8,117 | 6,854 | |
Self-insurance reserves, non-current | $ 5,114 | 4,564 | |
Number of pairs of glasses in lead offer | pair | 2 | ||
Advertising expenses | $ 107,500 | $ 93,200 | $ 85,400 |
Minimum | |||
Revenue Recognition [Line Items] | |||
Delivery time used in period end unearned revenue calculation | 4 days | ||
Average difference in processing time versus delivery time | 7 days | ||
Number of options to renew per most leases | option | 1 | ||
Lease renewal term per most leases | 1 year | ||
Maximum | |||
Revenue Recognition [Line Items] | |||
Delivery time used in period end unearned revenue calculation | 10 days | ||
Average difference in processing time versus delivery time | 8 days | ||
Lease renewal term per most leases | 10 years |
Business and Significant Acc_10
Business and Significant Accounting Policies - Adoption of New Accounting Pronouncements (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 30, 2017 | Sep. 30, 2017 | Jul. 01, 2017 | Apr. 01, 2017 | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | Jan. 01, 2018 | Jan. 02, 2016 | |
Current liabilities: | |||||||||||||
Deferred revenue, current | $ 52,144 | $ 62,993 | $ 52,144 | $ 62,993 | |||||||||
Total current liabilities | 211,652 | 211,309 | 211,652 | 211,309 | |||||||||
Other non-current liabilities: | |||||||||||||
Deferred revenue, noncurrent | 20,134 | 31,222 | 20,134 | 31,222 | |||||||||
Deferred income taxes, net | 61,940 | 71,926 | 61,940 | 71,926 | |||||||||
Total other non-current liabilities | 136,038 | 154,050 | 136,038 | 154,050 | |||||||||
Stockholders’ equity: | |||||||||||||
Retained earnings | 74,840 | 32,157 | 74,840 | 32,157 | |||||||||
Total stockholders’ equity | 743,154 | 654,600 | 743,154 | 654,600 | $ 399,581 | $ 385,339 | |||||||
Income Statement [Abstract] | |||||||||||||
Total net revenue | 355,922 | $ 387,425 | $ 385,532 | $ 407,975 | 321,819 | $ 346,089 | $ 337,541 | $ 369,859 | 1,536,854 | 1,375,308 | 1,196,195 | ||
Income from operations | (19,387) | (2,083) | 24,973 | 38,848 | (3,606) | 15,816 | 13,059 | 39,022 | 42,351 | 64,291 | 64,069 | ||
Earnings before income taxes | 4,868 | 4,228 | 24,977 | ||||||||||
Income tax provision (benefit) | (18,785) | (38,910) | 11,634 | ||||||||||
Net income | $ (18,440) | $ 5,171 | $ 12,467 | $ 24,455 | $ 27,341 | $ 1,089 | $ (1,933) | $ 16,641 | $ 23,653 | $ 43,138 | $ 13,343 | ||
Earnings per share: | |||||||||||||
Basic (in usd per share) | $ (0.24) | $ 0.07 | $ 0.17 | $ 0.33 | $ 0.39 | $ 0.02 | $ (0.03) | $ 0.30 | $ 0.31 | $ 0.72 | $ 0.24 | ||
Diluted (in usd per share) | $ (0.24) | $ 0.06 | $ 0.16 | $ 0.31 | $ 0.37 | $ 0.02 | $ (0.03) | $ 0.29 | $ 0.30 | $ 0.70 | $ 0.23 | ||
Eyecare Club Memberships [Member] | |||||||||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||||||||
Percentage of consolidated net revenue | 3.00% | ||||||||||||
Services and plans | |||||||||||||
Income Statement [Abstract] | |||||||||||||
Total net revenue | $ 267,242 | $ 245,995 | $ 215,242 | ||||||||||
Without ASC 606 Adoption | |||||||||||||
Current liabilities: | |||||||||||||
Deferred revenue, current | $ 67,435 | 67,435 | |||||||||||
Total current liabilities | 226,943 | 226,943 | |||||||||||
Other non-current liabilities: | |||||||||||||
Deferred revenue, noncurrent | 31,926 | 31,926 | |||||||||||
Deferred income taxes, net | 55,002 | 55,002 | |||||||||||
Total other non-current liabilities | 140,892 | 140,892 | |||||||||||
Stockholders’ equity: | |||||||||||||
Retained earnings | 54,695 | 54,695 | |||||||||||
Total stockholders’ equity | 723,009 | 723,009 | |||||||||||
Income Statement [Abstract] | |||||||||||||
Total net revenue | 1,535,547 | ||||||||||||
Income from operations | 41,044 | ||||||||||||
Earnings before income taxes | 3,561 | ||||||||||||
Income tax provision (benefit) | (19,119) | ||||||||||||
Net income | $ 22,680 | ||||||||||||
Earnings per share: | |||||||||||||
Basic (in usd per share) | $ 0.30 | ||||||||||||
Diluted (in usd per share) | $ 0.29 | ||||||||||||
Without ASC 606 Adoption | Services and plans | |||||||||||||
Income Statement [Abstract] | |||||||||||||
Total net revenue | $ 265,935 | ||||||||||||
Impact of Adoption | ASU No. 2014-09 | |||||||||||||
Current liabilities: | |||||||||||||
Deferred revenue, current | (15,291) | (15,291) | $ (14,000) | ||||||||||
Total current liabilities | (15,291) | (15,291) | |||||||||||
Other non-current liabilities: | |||||||||||||
Deferred revenue, noncurrent | (11,792) | (11,792) | (11,800) | ||||||||||
Deferred income taxes, net | 6,938 | 6,938 | 6,800 | ||||||||||
Total other non-current liabilities | (4,854) | (4,854) | |||||||||||
Stockholders’ equity: | |||||||||||||
Retained earnings | 20,145 | 20,145 | $ 19,000 | ||||||||||
Total stockholders’ equity | $ 20,145 | 20,145 | |||||||||||
Income Statement [Abstract] | |||||||||||||
Total net revenue | 1,307 | ||||||||||||
Income from operations | 1,307 | ||||||||||||
Earnings before income taxes | 1,307 | ||||||||||||
Income tax provision (benefit) | 334 | ||||||||||||
Net income | $ 973 | ||||||||||||
Earnings per share: | |||||||||||||
Basic (in usd per share) | $ 0.01 | ||||||||||||
Diluted (in usd per share) | $ 0.01 | ||||||||||||
Impact of Adoption | ASU No. 2014-09 | Services and plans | |||||||||||||
Income Statement [Abstract] | |||||||||||||
Total net revenue | $ 1,307 |
Business and Significant Acc_11
Business and Significant Accounting Policies - Future Adoption of Accounting Pronouncements (Details) - ASU No. 2016-02 - Forecast $ in Millions | Dec. 30, 2018USD ($) |
Minimum | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Operating lease, liabilities | $ 325 |
Operating lease, right-of-use assets | 325 |
Maximum | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Operating lease, liabilities | 345 |
Operating lease, right-of-use assets | $ 345 |
Business and Significant Acc_12
Business and Significant Accounting Policies - Error Corrections and Prior Period Adjustments (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 30, 2017 | Sep. 30, 2017 | Jul. 01, 2017 | Apr. 01, 2017 | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | Jan. 02, 2016 | |
Income Statement [Abstract] | ||||||||||||
Selling, general and administrative expenses | $ 687,476 | $ 600,010 | $ 525,869 | |||||||||
Depreciation and amortization | 74,339 | 61,974 | 52,677 | |||||||||
Total operating expenses | 780,932 | 674,051 | 587,345 | |||||||||
Income (loss) from operations | $ (19,387) | $ (2,083) | $ 24,973 | $ 38,848 | $ (3,606) | $ 15,816 | $ 13,059 | $ 39,022 | 42,351 | 64,291 | 64,069 | |
Earnings before income taxes | 4,868 | 4,228 | 24,977 | |||||||||
Income tax provision (benefit) | (18,785) | (38,910) | 11,634 | |||||||||
Net income | $ (18,440) | $ 5,171 | $ 12,467 | $ 24,455 | $ 27,341 | $ 1,089 | $ (1,933) | $ 16,641 | $ 23,653 | $ 43,138 | $ 13,343 | |
Basic (in usd per share) | $ (0.24) | $ 0.07 | $ 0.17 | $ 0.33 | $ 0.39 | $ 0.02 | $ (0.03) | $ 0.30 | $ 0.31 | $ 0.72 | $ 0.24 | |
Diluted (in usd per share) | $ (0.24) | $ 0.06 | $ 0.16 | $ 0.31 | $ 0.37 | $ 0.02 | $ (0.03) | $ 0.29 | $ 0.30 | $ 0.70 | $ 0.23 | |
Comprehensive income | $ 30,711 | $ 47,826 | $ 10,071 | |||||||||
Balance Sheet [Abstract] | ||||||||||||
Property and equipment, net | $ 355,117 | $ 302,280 | 355,117 | 302,280 | ||||||||
Total non-current assets | 1,446,685 | 1,419,462 | 1,446,685 | 1,419,462 | ||||||||
Total assets | 1,661,389 | 1,581,939 | 1,661,389 | 1,581,939 | ||||||||
Other liabilities | 53,964 | 50,902 | 53,964 | 50,902 | ||||||||
Deferred income taxes, net | 61,940 | 71,926 | 61,940 | 71,926 | ||||||||
Total other non-current liabilities | 136,038 | 154,050 | 136,038 | 154,050 | ||||||||
Retained earnings | 74,840 | 32,157 | 74,840 | 32,157 | ||||||||
Total stockholders’ equity | 743,154 | 654,600 | 743,154 | 654,600 | 399,581 | $ 385,339 | ||||||
Total liabilities and stockholders’ equity | 1,661,389 | 1,581,939 | 1,661,389 | 1,581,939 | ||||||||
Statements of Cash Flow [Abstract] | ||||||||||||
Net income | $ (18,440) | $ 5,171 | $ 12,467 | $ 24,455 | 27,341 | $ 1,089 | $ (1,933) | $ 16,641 | 23,653 | 43,138 | 13,343 | |
Depreciation and amortization | 74,339 | 61,974 | 52,677 | |||||||||
Deferred income tax expense (benefit) | (19,340) | (39,997) | 10,281 | |||||||||
Other liabilities | $ 12,597 | 14,965 | 11,037 | |||||||||
As Previously Reported | ||||||||||||
Income Statement [Abstract] | ||||||||||||
Selling, general and administrative expenses | 597,924 | 524,238 | ||||||||||
Depreciation and amortization | 61,115 | 51,993 | ||||||||||
Total operating expenses | 671,106 | 585,030 | ||||||||||
Income (loss) from operations | 67,236 | 66,384 | ||||||||||
Earnings before income taxes | 7,173 | 27,292 | ||||||||||
Income tax provision (benefit) | (38,647) | 12,534 | ||||||||||
Net income | $ 45,820 | $ 14,758 | ||||||||||
Basic (in usd per share) | $ 0.77 | $ 0.26 | ||||||||||
Diluted (in usd per share) | $ 0.74 | $ 0.26 | ||||||||||
Comprehensive income | $ 50,508 | $ 11,486 | ||||||||||
Balance Sheet [Abstract] | ||||||||||||
Property and equipment, net | 304,132 | 304,132 | ||||||||||
Total non-current assets | 1,421,314 | 1,421,314 | ||||||||||
Total assets | 1,583,791 | 1,583,791 | ||||||||||
Other liabilities | 46,044 | 46,044 | ||||||||||
Deferred income taxes, net | 73,648 | 73,648 | ||||||||||
Total other non-current liabilities | 150,914 | 150,914 | ||||||||||
Retained earnings | 37,145 | 37,145 | ||||||||||
Total stockholders’ equity | 659,588 | 659,588 | ||||||||||
Total liabilities and stockholders’ equity | 1,583,791 | 1,583,791 | ||||||||||
Statements of Cash Flow [Abstract] | ||||||||||||
Net income | 45,820 | 14,758 | ||||||||||
Depreciation and amortization | 61,115 | 51,993 | ||||||||||
Deferred income tax expense (benefit) | (39,734) | 11,181 | ||||||||||
Other liabilities | 12,879 | 9,406 | ||||||||||
Immaterial Errors in Lease Accounting | Adjustments | ||||||||||||
Income Statement [Abstract] | ||||||||||||
Selling, general and administrative expenses | 2,086 | 1,631 | ||||||||||
Depreciation and amortization | 859 | 684 | ||||||||||
Total operating expenses | 2,945 | 2,315 | ||||||||||
Income (loss) from operations | (900) | (800) | (800) | (800) | (700) | (700) | (700) | (2,945) | (2,315) | |||
Earnings before income taxes | (2,945) | (2,315) | ||||||||||
Income tax provision (benefit) | (263) | (900) | ||||||||||
Net income | $ (600) | $ (600) | $ (600) | $ (1,400) | $ (500) | (400) | (400) | $ (2,682) | $ (1,415) | |||
Basic (in usd per share) | $ (0.01) | $ (0.01) | $ (0.02) | $ (0.01) | $ (0.05) | $ (0.02) | ||||||
Diluted (in usd per share) | $ (0.01) | $ (0.01) | $ (0.01) | $ (0.02) | $ (0.01) | $ (0.04) | $ (0.03) | |||||
Comprehensive income | $ (2,682) | $ (1,415) | ||||||||||
Balance Sheet [Abstract] | ||||||||||||
Property and equipment, net | $ (1,852) | (1,852) | ||||||||||
Total non-current assets | (1,852) | (1,852) | ||||||||||
Total assets | (1,852) | (1,852) | ||||||||||
Other liabilities | 4,858 | 4,858 | ||||||||||
Deferred income taxes, net | (1,722) | (1,722) | ||||||||||
Total other non-current liabilities | 3,136 | 3,136 | ||||||||||
Retained earnings | (4,988) | (4,988) | $ (900) | |||||||||
Total stockholders’ equity | (4,988) | (4,988) | ||||||||||
Total liabilities and stockholders’ equity | (1,852) | (1,852) | ||||||||||
Statements of Cash Flow [Abstract] | ||||||||||||
Net income | $ (600) | $ (600) | $ (600) | $ (1,400) | $ (500) | $ (400) | $ (400) | (2,682) | (1,415) | |||
Depreciation and amortization | 859 | 684 | ||||||||||
Deferred income tax expense (benefit) | (263) | (900) | ||||||||||
Other liabilities | $ 2,086 | $ 1,631 |
Details of Certain Balance Sh_3
Details of Certain Balance Sheet Accounts - Accounts Receivable, Net (Details) - USD ($) $ in Thousands | Dec. 29, 2018 | Dec. 30, 2017 |
Accounts receivable, net: | ||
Allowance for uncollectible accounts | $ (2,612) | $ (3,858) |
Accounts receivable, net | 50,735 | 43,193 |
Trade receivables | ||
Accounts receivable, net: | ||
Accounts receivable, gross | 27,356 | 28,862 |
Credit card receivables | ||
Accounts receivable, net: | ||
Accounts receivable, gross | 16,636 | 10,459 |
Tenant improvement allowances receivable | ||
Accounts receivable, net: | ||
Accounts receivable, gross | 5,149 | 4,794 |
Other receivables | ||
Accounts receivable, net: | ||
Accounts receivable, gross | $ 4,206 | $ 2,936 |
Details of Certain Balance Sh_4
Details of Certain Balance Sheet Accounts - Inventories (Details) - USD ($) $ in Thousands | Dec. 29, 2018 | Dec. 30, 2017 |
Inventories: | ||
Raw materials and work in process | $ 59,946 | $ 43,953 |
Finished goods | 56,076 | 47,198 |
Inventories | $ 116,022 | $ 91,151 |
Details of Certain Balance Sh_5
Details of Certain Balance Sheet Accounts - Property and Equipment, Net (Details) - USD ($) $ in Thousands | Dec. 29, 2018 | Dec. 30, 2017 |
Property and equipment, net: | ||
Property and equipment, gross | $ 568,033 | $ 451,904 |
Less accumulated depreciation | 212,916 | 149,624 |
Property and equipment, net | 355,117 | 302,280 |
Land and building | ||
Property and equipment, net: | ||
Property and equipment, gross | 3,632 | 3,608 |
Equipment | ||
Property and equipment, net: | ||
Property and equipment, gross | 160,958 | 136,876 |
Information systems hardware and software | ||
Property and equipment, net: | ||
Property and equipment, gross | 101,809 | 83,212 |
Furniture and fixtures | ||
Property and equipment, net: | ||
Property and equipment, gross | 48,992 | 42,708 |
Leasehold improvements | ||
Property and equipment, net: | ||
Property and equipment, gross | 186,499 | 155,369 |
Construction in progress | ||
Property and equipment, net: | ||
Property and equipment, gross | 40,697 | 18,375 |
Property under capital leases | ||
Property and equipment, net: | ||
Property and equipment, gross | $ 25,446 | $ 11,756 |
Details of Certain Balance Sh_6
Details of Certain Balance Sheet Accounts - Other Payables and Accrued Expenses (Details) - USD ($) $ in Thousands | Dec. 29, 2018 | Dec. 30, 2017 |
Other payables and accrued expenses: | ||
Employee compensation and benefits | $ 20,529 | $ 21,134 |
Self-insurance reserves | 8,117 | 6,854 |
Capital expenditures | 14,078 | 10,782 |
Advertising | 2,076 | 2,900 |
Reserves for customer returns and remakes | 4,645 | 4,565 |
Legacy management and services agreement | 5,383 | 6,000 |
Fair value of derivative liabilities | 3,130 | 6,969 |
Supplies and other store support expenses | 4,929 | 3,014 |
Litigation settlements | 3,938 | 3,942 |
Other | 14,179 | 11,451 |
Total other payables and accrued expenses | $ 81,004 | $ 77,611 |
Details of Certain Balance Sh_7
Details of Certain Balance Sheet Accounts - Other Non-Current Liabilities (Details) - USD ($) $ in Thousands | Dec. 29, 2018 | Dec. 30, 2017 |
Other non-current liabilities: | ||
Fair value of derivative liabilities | $ 3,505 | $ 9,155 |
Tenant improvements | 30,851 | 25,854 |
Deferred rental expenses | 11,926 | 9,144 |
Self-insurance reserves, non-current | 5,114 | 4,564 |
Other | 2,568 | 2,185 |
Other liabilities | $ 53,964 | $ 50,902 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Narrative (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Goodwill [Line Items] | ||||
Goodwill impairment | $ 0 | |||
Impairment of indefinite-lived intangible assets | $ 0 | 0 | ||
Impairment of definite-lived intangible assets | $ 0 | $ 0 | $ 1,300,000 | |
Fred Meyer | ||||
Goodwill [Line Items] | ||||
Goodwill impairment | $ 11,400,000 | |||
Military | ||||
Goodwill [Line Items] | ||||
Goodwill impairment | $ 3,700,000 | |||
America's Best and Eyeglass World | Minimum | ||||
Goodwill [Line Items] | ||||
Percentage of fair value in excess of carrying amount | 75.00% | 75.00% | ||
Legacy | ||||
Goodwill [Line Items] | ||||
Percentage of fair value in excess of carrying amount | 21.00% | 21.00% | ||
Reporting unit's percentage of total consolidated goodwill | 8.00% | 8.00% | ||
AC Lens | ||||
Goodwill [Line Items] | ||||
Goodwill impairment | $ 3,300,000 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Goodwill Carrying Amount (Details) - USD ($) $ in Thousands | Dec. 29, 2018 | Dec. 30, 2017 |
Goodwill [Line Items] | ||
Gross Carrying Amount | $ 805,077 | $ 805,077 |
Accumulated Impairment | (27,464) | (12,333) |
Owned & Host | ||
Goodwill [Line Items] | ||
Gross Carrying Amount | 736,901 | 736,901 |
Accumulated Impairment | (19,357) | (4,226) |
Legacy | ||
Goodwill [Line Items] | ||
Gross Carrying Amount | 60,069 | 60,069 |
Accumulated Impairment | 0 | 0 |
Corporate/Other | ||
Goodwill [Line Items] | ||
Gross Carrying Amount | 8,107 | 8,107 |
Accumulated Impairment | $ (8,107) | $ (8,107) |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Indefinite-Lived Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 29, 2018 | Dec. 30, 2017 |
Indefinite-lived Intangible Assets [Line Items] | ||
Indefinite-lived trademarks and trade names | $ 240,547 | $ 240,547 |
Trademarks and trade names - America's Best | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Indefinite-lived trademarks and trade names | 200,547 | 200,547 |
Trademarks and trade names - Eyeglass World | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Indefinite-lived trademarks and trade names | $ 40,000 | $ 40,000 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Definite-Lived Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 29, 2018 | Dec. 30, 2017 | |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 105,138 | $ 105,138 |
Accumulated Amortization | 40,606 | 32,235 |
Contracts and relationships - Legacy | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 65,000 | 65,000 |
Accumulated Amortization | $ 28,359 | $ 22,470 |
Remaining Life (Years) | 6 years | 7 years |
Contracts and relationships - Fred Meyer | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 35,000 | $ 35,000 |
Accumulated Amortization | $ 7,303 | $ 5,787 |
Remaining Life (Years) | 18 years | 19 years |
Customer database | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 4,400 | $ 4,400 |
Accumulated Amortization | 4,224 | $ 3,347 |
Remaining Life (Years) | 1 year | |
Other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 738 | $ 738 |
Accumulated Amortization | $ 720 | $ 631 |
Remaining Life (Years) | 1 year |
Goodwill and Intangible Asset_6
Goodwill and Intangible Assets - Estimated Future Amortization Expense (Details) - USD ($) $ in Thousands | Dec. 29, 2018 | Dec. 30, 2017 |
Definite-Lived Intangible Assets, Estimated Future Amortization Expense | ||
2,019 | $ 7,598 | |
2,020 | 7,547 | |
2,021 | 7,405 | |
2,022 | 7,405 | |
2,023 | 7,405 | |
Thereafter | 27,172 | |
Definite-lived intangible assets | $ 64,532 | $ 72,903 |
Long-term Debt - Summary of Lon
Long-term Debt - Summary of Long-term Debt (Details) - USD ($) $ in Thousands | Dec. 29, 2018 | Dec. 30, 2017 |
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 564,300 | |
Capitalized lease obligations | 24,485 | $ 11,985 |
Less current maturities | (2,567) | (1,558) |
Long-term debt, less current portion and unamortized debt discount | 570,545 | 561,980 |
Term Loan | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 564,300 | 568,575 |
Unamortized discount | (10,673) | (11,322) |
Total term loans | 553,627 | 557,253 |
Less current maturities | (5,000) | (5,700) |
Term loans - non-current portion | 548,627 | 551,553 |
Term Loan | First Lien - Term Loan B, due November 20, 2024 | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 364,300 | 568,575 |
Term Loan | First Lien - Term Loan A, due October 9, 2023 | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 200,000 | $ 0 |
Long-term Debt - Narrative (Det
Long-term Debt - Narrative (Details) | Oct. 09, 2018USD ($) | Sep. 07, 2018 | Nov. 20, 2017USD ($) | Oct. 30, 2017USD ($) | Dec. 29, 2018USD ($) | Dec. 30, 2017USD ($) | Dec. 31, 2016USD ($) | Oct. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Feb. 02, 2017USD ($) |
Debt Instrument [Line Items] | ||||||||||
Proceeds from issuance of long-term debt | $ 200,000,000 | $ 174,924,000 | $ 0 | |||||||
Principal payments on long-term debt | $ 204,275,000 | $ 367,660,000 | $ 6,515,000 | |||||||
Line of Credit | Revolving Credit Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Credit facility borrowing capacity | $ 100,000,000 | $ 75,000,000 | ||||||||
Credit facility aggregate borrowings as component of total commitment (percent) | 30.00% | |||||||||
Credit agreement ratio of debt To EBITDA | 7.75 | |||||||||
Line of Credit | Revolving Credit Facility | LIBOR | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Basis spread on variable rate (percent) | 3.00% | |||||||||
Line of Credit | Revolving Credit Facility | Base Rate | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Basis spread on variable rate (percent) | 2.00% | |||||||||
Line of Credit | Revolving Credit Facility | EBITDA Ratio 4.25 to 1.00 | LIBOR | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Basis spread on variable rate (percent) | 2.75% | |||||||||
Line of Credit | Revolving Credit Facility | EBITDA Ratio 4.25 to 1.00 | Base Rate | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Basis spread on variable rate (percent) | 1.75% | |||||||||
Line of Credit | Revolving Credit Facility | EBITDA Ratio 3.75 to 1.00 | LIBOR | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Basis spread on variable rate (percent) | 2.50% | |||||||||
Line of Credit | Revolving Credit Facility | EBITDA Ratio 3.75 to 1.00 | Base Rate | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Basis spread on variable rate (percent) | 1.50% | |||||||||
Line of Credit | Letter of Credit | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Credit facility borrowing capacity | $ 20,000,000 | |||||||||
First Lien Credit Agreement | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Required prepayment as percentage of prior year excess cash flow | 50.00% | |||||||||
First Lien Credit Agreement | Maximum | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Credit agreement EBITDA ratio, threshold one | 4.25 | |||||||||
Credit agreement EBITDA ratio, threshold two | 4 | |||||||||
Credit agreement EBITDA ratio, threshold three | 3.75 | |||||||||
First Lien Credit Agreement | EBITDA Ratio 4.25 to 1.00 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Required prepayment as percentage of prior year excess cash flow | 25.00% | |||||||||
First Lien Credit Agreement | Term Loan | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Borrowed funds | $ 175,000,000 | |||||||||
First Lien - Term Loan B, due November 20, 2024 | Term Loan | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Borrowed funds | $ 570,000,000 | |||||||||
Principal payments on long-term debt | $ 200,000,000 | $ 235,000,000 | ||||||||
First Lien - Term Loan B, due November 20, 2024 | Term Loan | LIBOR | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Basis spread on variable rate (percent) | 2.50% | 2.75% | ||||||||
First Lien - Term Loan B, due November 20, 2024 | Term Loan | Moody's credit rating lower than Ba3 | LIBOR | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Basis spread on variable rate (percent) | 2.75% | |||||||||
First Lien - Term Loan B, due November 20, 2024 | Term Loan | Moody's credit rating lower than Ba3 | Base Rate | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Basis spread on variable rate (percent) | 1.75% | |||||||||
First Lien - Term Loan B, due November 20, 2024 | Term Loan | Moody's credit rating Ba3 or better | LIBOR | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Basis spread on variable rate (percent) | 2.50% | |||||||||
First Lien - Term Loan B, due November 20, 2024 | Term Loan | Moody's credit rating Ba3 or better | Base Rate | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Basis spread on variable rate (percent) | 1.50% | |||||||||
First Lien - Term Loan A, due October 9, 2023 | Term Loan | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Borrowed funds | 200,000,000 | |||||||||
Proceeds from issuance of long-term debt | $ 200,000,000 | |||||||||
Amortization per annum, year one through year three (percent) | 2.50% | |||||||||
Amortization per annum, year four and thereafter (percent) | 5.00% | |||||||||
Maximum allowable quarter end Consolidated Total Debt To Consolidated EBITDA Ratio | 4.75 | |||||||||
Maximum allowable quarter end Consolidated Interest Coverage Ratio | 3 | |||||||||
First Lien - Term Loan A, due October 9, 2023 | Term Loan | LIBOR | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Basis spread on variable rate (percent) | 1.75% | |||||||||
First Lien - Term Loan A, due October 9, 2023 | Term Loan | Base Rate | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Basis spread on variable rate (percent) | 0.75% | |||||||||
First Lien - Term Loan A, due October 9, 2023 | Term Loan | Total Leverage Ratio Less Than 2.00 | Maximum | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Total leverage ratio | 2 | |||||||||
First Lien - Term Loan A, due October 9, 2023 | Term Loan | Total Leverage Ratio Less Than 2.00 | LIBOR | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Basis spread on variable rate (percent) | 1.25% | |||||||||
First Lien - Term Loan A, due October 9, 2023 | Term Loan | Total Leverage Ratio Less Than 2.00 | Base Rate | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Basis spread on variable rate (percent) | 0.25% | |||||||||
First Lien - Term Loan A, due October 9, 2023 | Term Loan | Total Leverage Ratio Between 2.00 and 2.50 | Maximum | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Total leverage ratio | 2.5 | |||||||||
First Lien - Term Loan A, due October 9, 2023 | Term Loan | Total Leverage Ratio Between 2.00 and 2.50 | Minimum | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Total leverage ratio | 2 | |||||||||
First Lien - Term Loan A, due October 9, 2023 | Term Loan | Total Leverage Ratio Between 2.00 and 2.50 | LIBOR | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Basis spread on variable rate (percent) | 1.50% | |||||||||
First Lien - Term Loan A, due October 9, 2023 | Term Loan | Total Leverage Ratio Between 2.00 and 2.50 | Base Rate | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Basis spread on variable rate (percent) | 0.50% | |||||||||
First Lien - Term Loan A, due October 9, 2023 | Term Loan | Total Leverage Ratio Greater Than 2.50 | Minimum | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Total leverage ratio | 2.50 | |||||||||
First Lien - Term Loan A, due October 9, 2023 | Term Loan | Total Leverage Ratio Greater Than 2.50 | LIBOR | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Basis spread on variable rate (percent) | 1.75% | |||||||||
First Lien - Term Loan A, due October 9, 2023 | Term Loan | Total Leverage Ratio Greater Than 2.50 | Base Rate | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Basis spread on variable rate (percent) | 0.75% |
Long-term Debt - Maturities of
Long-term Debt - Maturities of Debt (Details) $ in Thousands | Dec. 29, 2018USD ($) |
Long-term Debt, Fiscal Year Maturity | |
2,019 | $ 5,000 |
2,020 | 5,000 |
2,021 | 5,000 |
2,022 | 10,000 |
2,023 | 175,000 |
Thereafter | 364,300 |
Total | $ 564,300 |
Long-term Debt - Future Minimum
Long-term Debt - Future Minimum Lease Payments Under Capital Leases (Details) - USD ($) $ in Thousands | Dec. 29, 2018 | Dec. 30, 2017 |
Debt Disclosure [Abstract] | ||
2,019 | $ 5,786 | |
2,020 | 5,500 | |
2,021 | 5,395 | |
2,022 | 5,324 | |
2,023 | 4,346 | |
Thereafter | 13,062 | |
Total minimum lease payments | 39,413 | |
Less: Amount representing interest | (14,928) | |
Present value of net minimum lease payments | 24,485 | |
Less: Current maturities of capital lease obligations | (2,567) | $ (1,558) |
Capital lease obligations - non-current portion | $ 21,918 |
Stock Incentive Plans - 2014 St
Stock Incentive Plans - 2014 Stock Incentive Plan Narrative (Details) | 12 Months Ended | ||
Dec. 29, 2018USD ($)anniversary$ / sharesshares | Dec. 30, 2017USD ($)$ / sharesshares | Dec. 31, 2016USD ($)$ / sharesshares | |
Service-Based | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ | $ 3,100,000 | $ 4,400,000 | $ 4,300,000 |
2014 Stock Incentive Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation cost | $ | $ 2,700,000 | ||
Unrecognized compensation costs, period for recognition | 1 year 8 months 12 days | ||
2014 Stock Incentive Plan | Service-Based and Performance-Based | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options contractual maturity (years) | 10 years | ||
Aggregate number of shares reserved under the plan (shares) | 10,988,827 | ||
Number of options outstanding (shares) | 6,618,288 | ||
Number of shares available for future grants (shares) | 468,975 | ||
2014 Stock Incentive Plan | Performance-Based | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of options outstanding (shares) | 4,143,781 | 6,524,152 | |
Share-based compensation expense | $ | $ 16,100,000 | $ 400,000 | $ 0 |
Compensation from secondary offerings associated with long-term incentive plan | $ | $ 7,000,000 | ||
Number of options granted (shares) | 0 | ||
Weighted average exercise price of options exercised (usd per share) | $ / shares | $ 5.87 | $ 3.68 | $ 3.49 |
Fair value of options vested | $ | $ 16,100,000 | $ 400,000 | |
Number of shares vested (shares) | 0 | ||
Intrinsic value of options exercised | $ | $ 70,200,000 | ||
Options exercised (shares) | 2,051,033 | 0 | 0 |
2014 Stock Incentive Plan | Service-Based | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of options outstanding (shares) | 2,474,507 | 3,822,915 | |
Number of options granted (shares) | 0 | ||
Weighted average exercise price of options exercised (usd per share) | $ / shares | $ 5.67 | $ 9.01 | $ 8.58 |
Fair value of options vested | $ | $ 5,600,000 | $ 4,600,000 | $ 4,300,000 |
Intrinsic value of options exercised | $ | $ 39,600,000 | $ 1,500,000 | $ 300,000 |
Vesting percentage in annual increments | 20.00% | ||
Number of annual increments | anniversary | 5 | ||
Options exercised (shares) | 1,278,223 | ||
2014 Stock Incentive Plan | Service-Based | Year One | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Annual amortization percent for unrecognized compensation cost | 46.00% | ||
2014 Stock Incentive Plan | Service-Based | Year Two | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Annual amortization percent for unrecognized compensation cost | 25.00% | ||
2014 Stock Incentive Plan | Service-Based | Year Three | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Annual amortization percent for unrecognized compensation cost | 16.00% | ||
2014 Stock Incentive Plan | Service-Based | Year Four | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Annual amortization percent for unrecognized compensation cost | 9.00% | ||
2014 Stock Incentive Plan | Service-Based | Year Five | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Annual amortization percent for unrecognized compensation cost | 4.00% |
Stock Incentive Plans - Stock O
Stock Incentive Plans - Stock Option Valuation Assumptions (Details) - 2014 Stock Incentive Plan | 12 Months Ended |
Dec. 29, 2018 | |
Performance-Based | |
Fair Value Assumptions | |
Risk-free interest rate, minimum | 1.19% |
Risk-free interest rate, maximum | 1.51% |
Performance-Based | Minimum | |
Fair Value Assumptions | |
Expected term | 2 years 4 months 13 days |
Expected volatility | 46.90% |
Performance-Based | Maximum | |
Fair Value Assumptions | |
Expected term | 5 years |
Expected volatility | 65.80% |
Service-Based | |
Fair Value Assumptions | |
Expected term | 6 years 6 months |
Expected volatility | 60.40% |
Risk-free interest rate, minimum | 1.60% |
Risk-free interest rate, maximum | 2.00% |
Stock Incentive Plans - Stock_2
Stock Incentive Plans - Stock Option Activity (Details) - 2014 Stock Incentive Plan - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Performance-Based | |||
Number of Options Outstanding | |||
Outstanding, beginning balance (shares) | 6,524,152 | ||
Exercised (shares) | (2,051,033) | 0 | 0 |
Forfeited (shares) | (329,338) | ||
Outstanding, ending balance (shares) | 4,143,781 | 6,524,152 | |
Vested and exercisable (shares) | 1,737,952 | ||
Weighted Average Exercise Price ($) | |||
Outstanding, beginning balance (usd per share) | $ 6.07 | ||
Exercised (usd per share) | 5.87 | $ 3.68 | $ 3.49 |
Forfeited (usd per share) | 5.33 | ||
Outstanding, ending balance (usd per share) | 6.23 | $ 6.07 | |
Vested and exercisable (usd per share) | $ 5.87 | ||
Outstanding, weighted average remaining contractual term (years) | 5 years 10 months 28 days | ||
Vested and exercisable, weighted average remaining contractual term (years) | 5 years 9 months 15 days | ||
Outstanding, aggregate intrinsic value | $ 94,291 | ||
Vested and exercisable, aggregate intrinsic value | $ 40,172 | ||
Number of options granted (shares) | 0 | ||
Service-Based | |||
Number of Options Outstanding | |||
Outstanding, beginning balance (shares) | 3,822,915 | ||
Exercised (shares) | (1,278,223) | ||
Forfeited (shares) | (70,185) | ||
Outstanding, ending balance (shares) | 2,474,507 | 3,822,915 | |
Vested and exercisable (shares) | 1,212,053 | ||
Weighted Average Exercise Price ($) | |||
Outstanding, beginning balance (usd per share) | $ 7.22 | ||
Exercised (usd per share) | 5.67 | $ 9.01 | $ 8.58 |
Forfeited (usd per share) | 7.42 | ||
Outstanding, ending balance (usd per share) | 8.02 | $ 7.22 | |
Vested and exercisable (usd per share) | $ 7.35 | ||
Outstanding, weighted average remaining contractual term (years) | 6 years 3 months 4 days | ||
Vested and exercisable, weighted average remaining contractual term (years) | 5 years 9 months 22 days | ||
Outstanding, aggregate intrinsic value | $ 51,877 | ||
Vested and exercisable, aggregate intrinsic value | $ 26,219 | ||
Number of options granted (shares) | 0 |
Stock Incentive Plans - Vision
Stock Incentive Plans - Vision Holding Corp. Amended and Restated 2013 Equity Incentive Plan Narrative (Details) - Vision Holding Corp Amended And Restated 2013 Equity Incentive Plan - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |
Dec. 29, 2018 | Dec. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of options outstanding (shares) | 169,049 | |
Vested and exercisable (shares) | 16,430 | |
Options exercised (shares) | 152,619 | |
Weighted average exercise price of options exercised (usd per share) | $ 1.66 | |
Intrinsic value of options exercised | $ 6.1 | |
Options outstanding, weighted average exercise price (usd per share) | $ 1.66 | |
Terms of equity award (years) | P5Y2M12D | |
Aggregate intrinsic value | $ 0.5 |
Stock Incentive Plans - 2017 Om
Stock Incentive Plans - 2017 Omnibus Incentive Plan Narrative (Details) - 2017 Omnibus Incentive Plan - USD ($) $ / shares in Units, $ in Millions | Oct. 23, 2017 | Dec. 29, 2018 | Dec. 30, 2017 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares that may be issued under the plan (shares) | 4,000,000 | ||
Options contractual maturity (years) | 10 years | ||
Number of options granted (shares) | 92,443 | ||
Options granted exercise price (usd per share) | $ 22 | ||
Grant date fair value | $ 0.8 | ||
Weighted average remaining contractual term (years) | 8 years 9 months 26 days | ||
Aggregate intrinsic value | $ 0.6 | ||
Remaining unrecognized service cost | $ 0.5 | ||
Number of options that have vested (shares) | 30,814 | ||
Intrinsic value of options that have vested | $ 0.2 | ||
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period (years) | 3 years | ||
Share-based compensation expense | $ 0.3 | $ 0.1 | |
Remaining requisite service period (years) | 1 year 9 months 26 days | ||
Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 1.4 | $ 0.3 | |
Equity instruments other than options granted (shares) | 182,138 | ||
Equity instruments other than options, weighted average exercise price (usd per share) | $ 22 | ||
Aggregate grant date fair value | $ 4 | ||
Number of units vested (shares) | 63,872 | ||
Number of units forfeited (shares) | 20,190 | ||
Remaining requisite service period (years) | 1 year 6 months 4 days | ||
Remaining unrecognized service cost | $ 2.3 | ||
Restricted Stock Units | Vesting in Two Equal Installments | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unvested restricted units (shares) | 59,800 | ||
Restricted Stock Units | Vesting in Three Equal Installments | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unvested restricted units (shares) | 122,338 | ||
Restricted Stock | Directors | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period (years) | 3 years | ||
Equity instruments other than options granted (shares) | 7,193 | ||
Aggregate grant date fair value | $ 0.3 | ||
Remaining requisite service period (years) | 2 years 4 months 24 days | ||
Remaining unrecognized service cost | $ 0.2 | ||
Intrinsic value | $ 0.1 |
Stock Incentive Plans - Associa
Stock Incentive Plans - Associate Stock Purchase Plan (Details) - $ / shares | Dec. 29, 2018 | Jun. 06, 2018 | Dec. 30, 2017 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Common stock, par value (in usd per share) | $ 0.01 | $ 0.01 | |
Associate Stock Purchase Plan (ASPP) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Aggregate number of shares reserved under the plan (shares) | 850,000 | ||
Common stock, par value (in usd per share) | $ 0.01 |
Income Taxes - Components of In
Income Taxes - Components of Income Tax Provision (Benefit) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Current income tax: | |||
Federal | $ 174 | $ 5 | $ 51 |
State | 381 | 1,082 | 1,302 |
Deferred income tax: | |||
Federal | (15,687) | (40,136) | 9,243 |
State | (3,653) | 139 | 1,038 |
Income tax provision (benefit) | $ (18,785) | $ (38,910) | $ 11,634 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Effective Tax Rate (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Federal income tax provision at statutory rate | $ 1,022 | $ 1,480 | $ 8,742 |
State income tax provision, net of federal income tax | 226 | 165 | 973 |
Increase in deferred tax asset valuation allowance | 318 | 769 | 979 |
Goodwill impairment | 3,879 | 0 | 0 |
Benefit of tax legislation | 0 | (42,089) | 0 |
Tax benefit of equity-based compensation deductions | (25,544) | 0 | 0 |
Other, net | 1,314 | 765 | 940 |
Income tax provision (benefit) | $ (18,785) | $ (38,910) | $ 11,634 |
Effective income tax rate (percent) | (385.90%) | (920.30%) | 46.60% |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Deferred Tax Liabilities (Details) - USD ($) $ in Thousands | Dec. 29, 2018 | Dec. 30, 2017 |
Deferred tax assets: | ||
NOL carry-forwards | $ 13,614 | $ 6,278 |
Deferred interest expense carry-forwards | 4,655 | 0 |
AMT payment and employment credits | 4,679 | 3,741 |
Deferred revenue | 4,984 | 7,643 |
Accrued expenses and reserves | 11,370 | 14,178 |
Loss on equity and other investments | 1,493 | 1,175 |
Stock option compensation | 5,893 | 6,606 |
Unrealized losses on hedging instruments | 1,700 | 4,130 |
Other | 1,193 | 4,222 |
Subtotal | 49,581 | 47,973 |
Valuation allowances | 1,614 | 1,296 |
Total net deferred tax assets | 47,967 | 46,677 |
Deferred tax liabilities: | ||
Depreciation of property and equipment | (32,631) | (37,877) |
Amortization of intangible assets | (75,422) | (78,329) |
Other | (1,854) | (2,397) |
Total deferred tax liabilities | (109,907) | (118,603) |
Net deferred tax liabilities | $ (61,940) | $ (71,926) |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) | 12 Months Ended | |
Dec. 30, 2017 | Dec. 29, 2018 | |
Income Tax Disclosure [Abstract] | ||
Tax benefit due to re-measurement of deferred taxes as a result of new tax legislation | $ 42,100,000 | |
Operating Loss Carryforwards [Line Items] | ||
Non-expiring AMT carryforward credits and employment credits | 3,741,000 | $ 4,679,000 |
Deferred tax asset associated with equity method affiliate | 1,300,000 | |
Deferred tax asset related to impairment of cost method investment | 200,000 | |
Unrecognized tax benefits | $ 0 | 0 |
U.S. federal | ||
Operating Loss Carryforwards [Line Items] | ||
NOL carryforwards | 55,800,000 | |
NOL carryforwards not subject to expiration | 37,700,000 | |
NOL carryforwards expiring at end of fiscal year 2019 | 5,100,000 | |
NOL carryforwards expiring at end of fiscal year 2033 | 3,300,000 | |
NOL carryforwards expiring at end of fiscal year 2037 | 9,700,000 | |
AMT carryforward and employment credit | U.S. federal and state | ||
Operating Loss Carryforwards [Line Items] | ||
Non-expiring AMT carryforward credits and employment credits | $ 4,700,000 |
Revenue From Contracts With C_3
Revenue From Contracts With Customers - Narrative (Details) | 12 Months Ended |
Dec. 29, 2018 | |
Disaggregation of Revenue [Line Items] | |
Time frame for majority of payments on health care plans and programs accounts (in days) | 90 days |
Owned & Host | |
Disaggregation of Revenue [Line Items] | |
Extended warranty plan, term (in years) | 1 year |
Minimum | |
Disaggregation of Revenue [Line Items] | |
General payment terms for accounts on health care plans and programs (in days) | 14 days |
Maximum | |
Disaggregation of Revenue [Line Items] | |
General payment terms for accounts on health care plans and programs (in days) | 120 days |
Revenue From Contracts With C_4
Revenue From Contracts With Customers - Disaggregation of Revenues (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 30, 2017 | Sep. 30, 2017 | Jul. 01, 2017 | Apr. 01, 2017 | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Disaggregation of Revenue [Line Items] | |||||||||||
Total net revenue | $ 355,922 | $ 387,425 | $ 385,532 | $ 407,975 | $ 321,819 | $ 346,089 | $ 337,541 | $ 369,859 | $ 1,536,854 | $ 1,375,308 | $ 1,196,195 |
Revenues recognized at a point in time | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total net revenue | 1,397,801 | ||||||||||
Revenues recognized over time | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total net revenue | $ 139,053 |
Related Party Transactions - Tr
Related Party Transactions - Transactions with Equity Sponsors (Details) - USD ($) $ in Thousands | Oct. 30, 2017 | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 |
KCM | ||||
Related Party Transaction [Line Items] | ||||
Sponsor fees presented in debt issuance costs | $ 1,200 | |||
KKR | ||||
Related Party Transaction [Line Items] | ||||
Fees paid to equity sponsors | $ 3,600 | 0 | $ 7,259 | $ 851 |
Sponsor fees presented in debt issuance costs | 2,300 | |||
Berkshire | ||||
Related Party Transaction [Line Items] | ||||
Fees paid to equity sponsors | $ 800 | $ 0 | $ 955 | $ 199 |
Related Party Transactions - Di
Related Party Transactions - Dividend and Stockholders' Equity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | Feb. 02, 2017 | Dec. 29, 2018 | Dec. 30, 2017 |
Related Party Transaction [Line Items] | |||
Dividends paid per share of common stock (in usd per share) | $ 1.51 | ||
Common stock, outstanding (shares) | 110,500 | 78,167 | 74,654 |
Tax benefit from cash distribution to vested option holders | $ 1.4 | ||
Reduction in additional paid-in capital related to dividends in excess of retained earnings | $ 171 | ||
Stock Options | |||
Related Party Transaction [Line Items] | |||
Cash distribution per share to vested option holders (in usd per share) | $ 1.51 | ||
Cash distribution to vested option holders | $ 3.7 | ||
Reduction in exercise price for unvested options (in usd per share) | $ 1.51 |
Equity in Net Assets of Non-C_3
Equity in Net Assets of Non-Consolidated Investee - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Aug. 29, 2017 | |
Equity Method Investee | |||
Schedule of Equity Method Investments [Line Items] | |||
Secured convertible promissory note receivable | $ 1.5 | ||
Fixed interest rate on note receivable (percent) | 5.00% | ||
Equity Method Investee | Base Rate | |||
Schedule of Equity Method Investments [Line Items] | |||
Variable interest rate on note receivable (percent) | 0.75% | ||
Investee | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity interest in affiliate (percent) | 28.00% | ||
Investment in subsidiary | $ 1 | $ 2.3 |
Equity in Net Assets of Non-C_4
Equity in Net Assets of Non-Consolidated Investee - Financial Information of Investee (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Balance Sheet Information for Affiliate | |||
Current assets | $ 2,197 | $ 2,407 | |
Non-current assets | 558 | 557 | |
Total assets | 2,755 | 2,964 | |
Current liabilities | 6,321 | 1,046 | |
Non-current liabilities | 3,000 | 3,000 | |
Total liabilities | 9,321 | 4,046 | |
Net assets | (6,566) | (1,082) | |
Income Statement Information for Affiliate | |||
Revenues | 3,871 | 6,244 | $ 5,847 |
Net loss | (5,632) | (3,433) | (4,153) |
National Vision’s share of net loss | $ (1,304) | $ (1,001) | $ (1,370) |
Equity in Net Assets of Non-C_5
Equity in Net Assets of Non-Consolidated Investee - Transactions with Non-Consolidated Investee (Details) - Equity Method Investee - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | Aug. 29, 2017 | |
Balance sheets | ||||
Prepaid expenses and other current assets | $ 0 | $ 172 | ||
Other assets | 1,522 | 1,518 | ||
Loan receivable | $ 1,500 | |||
Statements of operations | ||||
Licensing fees (SG&A) | 172 | 955 | $ 987 | |
Other Assets | ||||
Balance sheets | ||||
Loan receivable | $ 1,500 | $ 1,500 |
Fair Value Measurement of Fin_2
Fair Value Measurement of Financial Assets and Liabilities - Narrative (Details) - Level 2 - USD ($) $ in Millions | Dec. 29, 2018 | Dec. 30, 2017 |
Term Loan | Estimated Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt instruments | $ 556.1 | $ 570.2 |
Term Loan | Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt instruments | 553.6 | 557.3 |
Capital Lease Obligations | Estimated Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt instruments | 30.7 | 14 |
Capital Lease Obligations | Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt instruments | $ 24.5 | $ 12 |
Deferred Revenue - Roll-Forward
Deferred Revenue - Roll-Forward of Deferred Revenue (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 29, 2018 | Dec. 30, 2017 |
Roll Forward Of Contract Liability [Roll Forward] | |||
Deferred revenue, beginning balance | $ 94,215 | $ 94,215 | $ 87,428 |
Sold | 108,167 | 108,397 | |
Revenue recognized | (104,328) | (101,610) | |
Deferred revenue, ending balance | 68,439 | 72,278 | 94,215 |
Adjustment | ASU No. 2014-09 | |||
Roll Forward Of Contract Liability [Roll Forward] | |||
Adjustment for adoption of ASU 2014-09 | (25,776) | ||
Product Protection Plans | |||
Roll Forward Of Contract Liability [Roll Forward] | |||
Deferred revenue, beginning balance | 26,731 | 26,731 | 23,855 |
Sold | 58,860 | 54,028 | |
Revenue recognized | (56,816) | (51,152) | |
Deferred revenue, ending balance | 26,731 | 28,775 | 26,731 |
Product Protection Plans | Adjustment | ASU No. 2014-09 | |||
Roll Forward Of Contract Liability [Roll Forward] | |||
Adjustment for adoption of ASU 2014-09 | 0 | ||
Eye Care Clubs | |||
Roll Forward Of Contract Liability [Roll Forward] | |||
Deferred revenue, beginning balance | 67,430 | 67,430 | 63,478 |
Sold | 47,923 | 46,443 | |
Revenue recognized | (46,089) | (42,491) | |
Deferred revenue, ending balance | 41,654 | 43,488 | 67,430 |
Eye Care Clubs | Adjustment | ASU No. 2014-09 | |||
Roll Forward Of Contract Liability [Roll Forward] | |||
Adjustment for adoption of ASU 2014-09 | (25,776) | ||
HMO Memberships | |||
Roll Forward Of Contract Liability [Roll Forward] | |||
Deferred revenue, beginning balance | 54 | 54 | 95 |
Sold | 1,384 | 7,926 | |
Revenue recognized | (1,423) | (7,967) | |
Deferred revenue, ending balance | 54 | $ 15 | $ 54 |
HMO Memberships | Adjustment | ASU No. 2014-09 | |||
Roll Forward Of Contract Liability [Roll Forward] | |||
Adjustment for adoption of ASU 2014-09 | $ 0 |
Deferred Revenue - Current and
Deferred Revenue - Current and Non-current Balances (Details) - USD ($) $ in Thousands | Dec. 29, 2018 | Dec. 31, 2017 | Dec. 30, 2017 | Dec. 31, 2016 |
Disaggregation of Revenue [Line Items] | ||||
Deferred revenue, current | $ 52,144 | $ 62,993 | ||
Deferred revenue, noncurrent | 20,134 | 31,222 | ||
Total | 72,278 | $ 68,439 | 94,215 | $ 87,428 |
Product Protection Plans | ||||
Disaggregation of Revenue [Line Items] | ||||
Deferred revenue, current | 28,403 | 26,312 | ||
Deferred revenue, noncurrent | 372 | 419 | ||
Total | 28,775 | 26,731 | 26,731 | 23,855 |
Eye Care Clubs | ||||
Disaggregation of Revenue [Line Items] | ||||
Deferred revenue, current | 23,726 | 36,627 | ||
Deferred revenue, noncurrent | 19,762 | 30,803 | ||
Total | 43,488 | 41,654 | 67,430 | 63,478 |
HMO Memberships | ||||
Disaggregation of Revenue [Line Items] | ||||
Deferred revenue, current | 15 | 54 | ||
Deferred revenue, noncurrent | 0 | 0 | ||
Total | $ 15 | $ 54 | $ 54 | $ 95 |
Deferred Revenue - Deferred Rev
Deferred Revenue - Deferred Revenue Remaining Performance Obligation (Details) $ in Thousands | 12 Months Ended |
Dec. 29, 2018USD ($) | |
Revenue from Contract with Customer [Abstract] | |
Performance obligation remaining | $ 72,278 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-01-01 | |
Revenue from Contract with Customer [Abstract] | |
Performance obligation remaining | $ 52,144 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Estimated timing of recognition of performance obligation | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | |
Revenue from Contract with Customer [Abstract] | |
Performance obligation remaining | $ 15,029 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Estimated timing of recognition of performance obligation | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Revenue from Contract with Customer [Abstract] | |
Performance obligation remaining | $ 4,840 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Estimated timing of recognition of performance obligation | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Revenue from Contract with Customer [Abstract] | |
Performance obligation remaining | $ 204 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Estimated timing of recognition of performance obligation | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Revenue from Contract with Customer [Abstract] | |
Performance obligation remaining | $ 61 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Estimated timing of recognition of performance obligation | 1 year |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) - USD ($) $ in Thousands | Nov. 08, 2017 | May 31, 2017 | Jul. 01, 2017 | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 |
Loss Contingencies [Line Items] | ||||||
Minimum purchase commitments with trade vendors | $ 8,000 | |||||
401(k) plan expense | 4,200 | $ 3,100 | $ 2,600 | |||
Charge for litigation settlement | 0 | $ 7,000 | $ 0 | |||
1-800 Contacts Matter | ||||||
Loss Contingencies [Line Items] | ||||||
Amount of litigation settlement | $ 7,000 | |||||
Charge for litigation settlement | $ 7,000 | |||||
Percent of settlement award deposited in escrow account (percent) | 50.00% | |||||
Amount of settlement deposited in escrow account | $ 3,500 | |||||
Multi-Year Marketing Agreement | ||||||
Loss Contingencies [Line Items] | ||||||
Marketing agreement commitment | $ 3,300 |
Commitments and Contingencies_2
Commitments and Contingencies - Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Total rent expense related to operating leases | $ 89,600 | $ 79,200 | $ 71,300 |
Percentage rent included in total rental expense | 5,800 | 6,100 | 6,300 |
Variable rent expense | 18,000 | $ 14,900 | $ 13,900 |
Future Minimum Rental Payments Under Operating Leases by Fiscal Year | |||
2,019 | 69,372 | ||
2,020 | 63,218 | ||
2,021 | 56,219 | ||
2,022 | 49,303 | ||
2,023 | 42,545 | ||
Thereafter | 126,388 | ||
Total | $ 407,045 |
Commitments and Contingencies_3
Commitments and Contingencies - Warranty Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 29, 2018 | Dec. 30, 2017 | |
Movement in Product Warrant Liability Accounts | ||
Beginning balance | $ 1,593 | $ 1,343 |
Accrued obligation | 29,943 | 26,806 |
Claims paid | (29,794) | (26,556) |
Ending balance | $ 1,742 | $ 1,593 |
Interest Rate Derivatives - Nar
Interest Rate Derivatives - Narrative (Details) | Dec. 29, 2018USD ($)agreement | Mar. 31, 2018USD ($) | Dec. 30, 2017USD ($) |
Derivative [Line Items] | |||
Estimated reclassification from AOCL to earnings in next 12 months | $ 2,300,000 | ||
Interest Rate Swap | Cash Flow Hedges | |||
Derivative [Line Items] | |||
Number of interest rate swap agreements | agreement | 3 | ||
Interest rate floor (percent) | 1.00% | ||
Interest Rate Swap | Designated as Hedging Instrument | Cash Flow Hedges | |||
Derivative [Line Items] | |||
Notional amount | $ 465,000,000 | $ 500,000,000 | |
Interest Rate Swap One | Designated as Hedging Instrument | Cash Flow Hedges | |||
Derivative [Line Items] | |||
Notional amount | $ 140,000,000 | $ 140,000,000 | $ 175,000,000 |
Fixed interest rate (percent) | 3.4063% | ||
Interest Rate Swap Two | Designated as Hedging Instrument | Cash Flow Hedges | |||
Derivative [Line Items] | |||
Notional amount | $ 225,000,000 | ||
Fixed interest rate (percent) | 3.5125% | ||
Interest Rate Swap Three | Designated as Hedging Instrument | Cash Flow Hedges | |||
Derivative [Line Items] | |||
Notional amount | $ 100,000,000 | ||
Fixed interest rate (percent) | 2.60% |
Interest Rate Derivatives - Cas
Interest Rate Derivatives - Cash Flow Hedge Derivative Instruments (Details) - USD ($) | Dec. 29, 2018 | Dec. 30, 2017 |
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative liabilities, current | $ 3,130,000 | $ 6,969,000 |
Fair value of derivative liabilities, noncurrent | 3,505,000 | 9,155,000 |
Stranded tax benefit in AOCL | 2,100,000 | |
Interest Rate Swap | Designated as Hedging Instrument | Cash Flow Hedges | ||
Derivatives, Fair Value [Line Items] | ||
Notional amount | 465,000,000 | 500,000,000 |
Fair value of derivative liabilities, current | 3,130,000 | 6,969,000 |
Fair value of derivative liabilities, noncurrent | 3,505,000 | 9,155,000 |
Hedge position in AOCL, net of tax | $ 2,810,000 | $ 9,868,000 |
Earnings Per Share - Reconcilia
Earnings Per Share - Reconciliation of Basic and Diluted EPS Calculations (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 30, 2017 | Sep. 30, 2017 | Jul. 01, 2017 | Apr. 01, 2017 | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |||||||||||
Net income | $ (18,440) | $ 5,171 | $ 12,467 | $ 24,455 | $ 27,341 | $ 1,089 | $ (1,933) | $ 16,641 | $ 23,653 | $ 43,138 | $ 13,343 |
Weighted average shares outstanding for basic EPS | 77,526 | 76,118 | 75,249 | 74,714 | 70,454 | 56,414 | 56,414 | 56,261 | 75,899 | 59,895 | 56,185 |
Effect of dilutive securities: | |||||||||||
Stock options | 3,129 | 2,140 | 817 | ||||||||
Restricted Stock | 13 | 0 | 0 | ||||||||
Weighted average shares outstanding for diluted EPS | 77,526 | 79,710 | 77,858 | 77,837 | 73,256 | 58,459 | 56,414 | 57,934 | 79,041 | 62,035 | 57,001 |
Basic EPS (in usd per share) | $ (0.24) | $ 0.07 | $ 0.17 | $ 0.33 | $ 0.39 | $ 0.02 | $ (0.03) | $ 0.30 | $ 0.31 | $ 0.72 | $ 0.24 |
Diluted EPS (in usd per share) | $ (0.24) | $ 0.06 | $ 0.16 | $ 0.31 | $ 0.37 | $ 0.02 | $ (0.03) | $ 0.29 | $ 0.30 | $ 0.70 | $ 0.23 |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||||
Anti-dilutive options outstanding excluded from EPS | 3,130 | 0 | 0 | 0 | 0 | 0 | 2,036 | 218 | |||
Stock Options | |||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||||
Anti-dilutive options outstanding excluded from EPS | 0 | 254 | 88 |
Segment Reporting - Narrative (
Segment Reporting - Narrative (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 29, 2018USD ($)store | Sep. 29, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 30, 2017USD ($)store | Sep. 30, 2017USD ($) | Jul. 01, 2017USD ($) | Apr. 01, 2017USD ($) | Dec. 29, 2018USD ($)storesegment | Dec. 30, 2017USD ($)store | Dec. 31, 2016USD ($) | |
Segment Reporting Information [Line Items] | |||||||||||
Number of reportable segments | segment | 2 | ||||||||||
Number of retail vision centers | store | 1,082 | 1,013 | 1,082 | 1,013 | |||||||
Net revenue | $ | $ 355,922 | $ 387,425 | $ 385,532 | $ 407,975 | $ 321,819 | $ 346,089 | $ 337,541 | $ 369,859 | $ 1,536,854 | $ 1,375,308 | $ 1,196,195 |
Legacy | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Number of retail vision centers | store | 227 | 227 | |||||||||
Legacy | Management of operations | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net revenue | $ | $ 34,700 | $ 36,700 | $ 38,300 | ||||||||
Customer Concentration Risk | Sales revenue | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Concentration risk (percent) | 10.00% |
Segment Reporting - Financial D
Segment Reporting - Financial Data by Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 30, 2017 | Sep. 30, 2017 | Jul. 01, 2017 | Apr. 01, 2017 | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | |||||||||||
Total net revenue | $ 355,922 | $ 387,425 | $ 385,532 | $ 407,975 | $ 321,819 | $ 346,089 | $ 337,541 | $ 369,859 | $ 1,536,854 | $ 1,375,308 | $ 1,196,195 |
Total costs applicable to revenue | $ 173,470 | $ 182,588 | $ 177,059 | $ 180,454 | $ 152,393 | $ 162,358 | $ 156,408 | $ 165,808 | 713,571 | 636,966 | 544,781 |
SG&A | 687,476 | 600,010 | 525,869 | ||||||||
Asset impairment | 17,630 | 4,117 | 7,132 | ||||||||
Debt issuance costs | 200 | 4,527 | 0 | ||||||||
Litigation settlement | 0 | 7,000 | 0 | ||||||||
Other expense, net | 1,487 | 950 | 1,667 | ||||||||
EBITDA | 116,490 | 121,738 | 116,746 | ||||||||
Depreciation and amortization | 74,339 | 61,974 | 52,677 | ||||||||
Interest expense, net | 37,283 | 55,536 | 39,092 | ||||||||
Earnings before income taxes | 4,868 | 4,228 | 24,977 | ||||||||
Products | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total net revenue | 1,269,612 | 1,129,313 | 980,953 | ||||||||
Total costs applicable to revenue | 511,406 | 456,078 | 390,369 | ||||||||
Services and plans | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total net revenue | 267,242 | 245,995 | 215,242 | ||||||||
Total costs applicable to revenue | 202,165 | 180,888 | 154,412 | ||||||||
Operating Segments | Owned & Host | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total net revenue | 1,173,402 | 1,038,567 | 889,408 | ||||||||
Total costs applicable to revenue | 459,082 | 402,239 | 340,112 | ||||||||
SG&A | 457,618 | 403,848 | 345,469 | ||||||||
Asset impairment | 0 | 0 | 0 | ||||||||
Debt issuance costs | 0 | 0 | |||||||||
Litigation settlement | 0 | ||||||||||
Other expense, net | 0 | 0 | 0 | ||||||||
EBITDA | 256,702 | 232,480 | 203,827 | ||||||||
Operating Segments | Owned & Host | Products | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total net revenue | 956,355 | 847,866 | 730,741 | ||||||||
Total costs applicable to revenue | 280,720 | 248,548 | 212,208 | ||||||||
Operating Segments | Owned & Host | Services and plans | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total net revenue | 217,047 | 190,701 | 158,667 | ||||||||
Total costs applicable to revenue | 178,362 | 153,691 | 127,904 | ||||||||
Operating Segments | Legacy | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total net revenue | 154,412 | 153,842 | 152,210 | ||||||||
Total costs applicable to revenue | 67,258 | 64,899 | 59,607 | ||||||||
SG&A | 54,091 | 52,705 | 52,925 | ||||||||
Asset impairment | 0 | 0 | 0 | ||||||||
Debt issuance costs | 0 | 0 | |||||||||
Litigation settlement | 0 | ||||||||||
Other expense, net | 0 | 0 | 0 | ||||||||
EBITDA | 33,063 | 36,238 | 39,678 | ||||||||
Operating Segments | Legacy | Products | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total net revenue | 103,890 | 103,887 | 103,618 | ||||||||
Total costs applicable to revenue | 46,986 | 48,275 | 48,097 | ||||||||
Operating Segments | Legacy | Services and plans | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total net revenue | 50,522 | 49,955 | 48,592 | ||||||||
Total costs applicable to revenue | 20,272 | 16,624 | 11,510 | ||||||||
Operating Segments | Corporate/Other | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total net revenue | 212,427 | 191,890 | 168,616 | ||||||||
Total costs applicable to revenue | 186,990 | 170,362 | 146,255 | ||||||||
SG&A | 175,767 | 143,457 | 127,475 | ||||||||
Asset impairment | 17,630 | 4,117 | 7,132 | ||||||||
Debt issuance costs | 200 | 4,527 | |||||||||
Litigation settlement | 7,000 | ||||||||||
Other expense, net | 1,487 | 950 | 1,667 | ||||||||
EBITDA | (169,647) | (138,523) | (113,913) | ||||||||
Operating Segments | Corporate/Other | Products | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total net revenue | 208,875 | 179,718 | 151,083 | ||||||||
Total costs applicable to revenue | 183,459 | 159,789 | 131,257 | ||||||||
Operating Segments | Corporate/Other | Services and plans | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total net revenue | 3,552 | 12,172 | 17,533 | ||||||||
Total costs applicable to revenue | 3,531 | 10,573 | 14,998 | ||||||||
Reconciling Items | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total net revenue | (3,387) | (8,991) | (14,039) | ||||||||
Total costs applicable to revenue | 241 | (534) | (1,193) | ||||||||
SG&A | 0 | 0 | 0 | ||||||||
Asset impairment | 0 | 0 | 0 | ||||||||
Debt issuance costs | 0 | 0 | |||||||||
Litigation settlement | 0 | ||||||||||
Other expense, net | 0 | 0 | 0 | ||||||||
EBITDA | (3,628) | (8,457) | (12,846) | ||||||||
Reconciling Items | Products | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total net revenue | 492 | (2,158) | (4,489) | ||||||||
Total costs applicable to revenue | 241 | (534) | (1,193) | ||||||||
Reconciling Items | Services and plans | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total net revenue | (3,879) | (6,833) | (9,550) | ||||||||
Total costs applicable to revenue | $ 0 | $ 0 | $ 0 |
Segment Reporting - Net Product
Segment Reporting - Net Product Revenue Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 30, 2017 | Sep. 30, 2017 | Jul. 01, 2017 | Apr. 01, 2017 | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Revenue from External Customer [Line Items] | |||||||||||
Total net revenue | $ 355,922 | $ 387,425 | $ 385,532 | $ 407,975 | $ 321,819 | $ 346,089 | $ 337,541 | $ 369,859 | $ 1,536,854 | $ 1,375,308 | $ 1,196,195 |
Products | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Total net revenue | 1,269,612 | 1,129,313 | 980,953 | ||||||||
Eyeglasses and sunglasses | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Total net revenue | 851,328 | 763,268 | 663,253 | ||||||||
Contact lenses | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Total net revenue | 410,839 | 358,808 | 310,322 | ||||||||
Accessories and other | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Total net revenue | $ 7,445 | $ 7,237 | $ 7,378 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Accumulated Other Comprehensive Loss, Net of Tax [Roll Forward] | |||
Beginning balance | $ 654,600 | $ 399,581 | $ 385,339 |
Ending balance | 743,154 | 654,600 | 399,581 |
Cash Flow Hedges | |||
Accumulated Other Comprehensive Loss, Net of Tax [Roll Forward] | |||
Beginning balance | (9,868) | (14,556) | (11,284) |
Other comprehensive income (loss) before reclassification | 3,182 | (1,051) | (5,116) |
Tax effect of other comprehensive income (loss) before reclassification | (815) | 436 | 1,844 |
Amount reclassified from AOCL | 6,306 | 8,664 | 0 |
Tax effect of amount reclassified from AOCL | (1,615) | (3,361) | 0 |
Net current period other comprehensive income (loss), net of tax | 7,058 | 4,688 | (3,272) |
Ending balance | $ (2,810) | $ (9,868) | $ (14,556) |
Quarterly Financial Informati_3
Quarterly Financial Information (Unaudited) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 30, 2017 | Sep. 30, 2017 | Jul. 01, 2017 | Apr. 01, 2017 | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Total net revenue | $ 355,922 | $ 387,425 | $ 385,532 | $ 407,975 | $ 321,819 | $ 346,089 | $ 337,541 | $ 369,859 | $ 1,536,854 | $ 1,375,308 | $ 1,196,195 |
Total costs applicable to revenue | 173,470 | 182,588 | 177,059 | 180,454 | 152,393 | 162,358 | 156,408 | 165,808 | 713,571 | 636,966 | 544,781 |
Income (loss) from operations | (19,387) | (2,083) | 24,973 | 38,848 | (3,606) | 15,816 | 13,059 | 39,022 | 42,351 | 64,291 | 64,069 |
Net income (loss) | $ (18,440) | $ 5,171 | $ 12,467 | $ 24,455 | $ 27,341 | $ 1,089 | $ (1,933) | $ 16,641 | $ 23,653 | $ 43,138 | $ 13,343 |
Weighted average shares outstanding for basic EPS | 77,526 | 76,118 | 75,249 | 74,714 | 70,454 | 56,414 | 56,414 | 56,261 | 75,899 | 59,895 | 56,185 |
Weighted average shares outstanding for diluted EPS | 77,526 | 79,710 | 77,858 | 77,837 | 73,256 | 58,459 | 56,414 | 57,934 | 79,041 | 62,035 | 57,001 |
Basic EPS (in usd per share) | $ (0.24) | $ 0.07 | $ 0.17 | $ 0.33 | $ 0.39 | $ 0.02 | $ (0.03) | $ 0.30 | $ 0.31 | $ 0.72 | $ 0.24 |
Diluted EPS (in usd per share) | $ (0.24) | $ 0.06 | $ 0.16 | $ 0.31 | $ 0.37 | $ 0.02 | $ (0.03) | $ 0.29 | $ 0.30 | $ 0.70 | $ 0.23 |
Anti-dilutive options outstanding excluded from EPS | 3,130 | 0 | 0 | 0 | 0 | 0 | 2,036 | 218 |
Quarterly Financial Informati_4
Quarterly Financial Information (Unaudited) - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 30, 2017 | Sep. 30, 2017 | Jul. 01, 2017 | Apr. 01, 2017 | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||
Income (loss) from operations | $ (19,387) | $ (2,083) | $ 24,973 | $ 38,848 | $ (3,606) | $ 15,816 | $ 13,059 | $ 39,022 | $ 42,351 | $ 64,291 | $ 64,069 |
Net income (loss) | $ (18,440) | $ 5,171 | $ 12,467 | $ 24,455 | $ 27,341 | $ 1,089 | $ (1,933) | $ 16,641 | $ 23,653 | $ 43,138 | $ 13,343 |
Basic EPS (in usd per share) | $ (0.24) | $ 0.07 | $ 0.17 | $ 0.33 | $ 0.39 | $ 0.02 | $ (0.03) | $ 0.30 | $ 0.31 | $ 0.72 | $ 0.24 |
Diluted EPS (in usd per share) | $ (0.24) | $ 0.06 | $ 0.16 | $ 0.31 | $ 0.37 | $ 0.02 | $ (0.03) | $ 0.29 | $ 0.30 | $ 0.70 | $ 0.23 |
Immaterial Errors in Lease Accounting | Adjustment | |||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||
Income (loss) from operations | $ (900) | $ (800) | $ (800) | $ (800) | $ (700) | $ (700) | $ (700) | $ (2,945) | $ (2,315) | ||
Net income (loss) | $ (600) | $ (600) | $ (600) | $ (1,400) | $ (500) | $ (400) | $ (400) | $ (2,682) | $ (1,415) | ||
Basic EPS (in usd per share) | $ (0.01) | $ (0.01) | $ (0.02) | $ (0.01) | $ (0.05) | $ (0.02) | |||||
Diluted EPS (in usd per share) | $ (0.01) | $ (0.01) | $ (0.01) | $ (0.02) | $ (0.01) | $ (0.04) | $ (0.03) |
Condensed Financial Informati_2
Condensed Financial Information of the Registrant - Condensed Balance Sheets (Details) - USD ($) $ in Thousands | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | Jan. 02, 2016 |
Current assets: | ||||
Cash and cash equivalents | $ 17,132 | $ 4,208 | $ 4,945 | |
Total current assets | 214,704 | 162,477 | ||
Total non-current assets | 1,446,685 | 1,419,462 | ||
Total assets | 1,661,389 | 1,581,939 | ||
Non-current liabilities: | ||||
Other non-current liabilities | 53,964 | 50,902 | ||
Stockholders’ equity: | ||||
Common stock, $0.01 par value; 200,000 shares authorized; 78,246 and 74,654 shares issued as of December 29, 2018 and December 30, 2017, respectively; 78,167 and 74,654 shares outstanding as of December 29, 2018 and December 30, 2017, respectively | 782 | 746 | ||
Additional paid-in capital | 672,503 | 631,798 | ||
Accumulated other comprehensive loss | (2,810) | (9,868) | ||
Retained earnings | 74,840 | 32,157 | ||
Treasury stock, at cost; 79 and 28 shares as of December 29, 2018 and December 30, 2017, respectively | (2,161) | (233) | ||
Total stockholders’ equity | 743,154 | 654,600 | 399,581 | $ 385,339 |
Total liabilities and stockholders’ equity | 1,661,389 | 1,581,939 | ||
Parent Company | ||||
Current assets: | ||||
Cash and cash equivalents | 246 | 23 | $ 12 | $ 765 |
Total current assets | 246 | 23 | ||
Deferred income taxes | 393 | 304 | ||
Investment in subsidiary | 745,198 | 654,548 | ||
Total non-current assets | 745,591 | 654,852 | ||
Total assets | 745,837 | 654,875 | ||
Current liabilities: | ||||
Other current liabilities | 65 | 46 | ||
Non-current liabilities: | ||||
Other non-current liabilities | 2,618 | 229 | ||
Stockholders’ equity: | ||||
Common stock, $0.01 par value; 200,000 shares authorized; 78,246 and 74,654 shares issued as of December 29, 2018 and December 30, 2017, respectively; 78,167 and 74,654 shares outstanding as of December 29, 2018 and December 30, 2017, respectively | 782 | 746 | ||
Additional paid-in capital | 672,503 | 631,798 | ||
Accumulated other comprehensive loss | (2,810) | (9,868) | ||
Retained earnings | 74,840 | 32,157 | ||
Treasury stock, at cost; 79 and 28 shares as of December 29, 2018 and December 30, 2017, respectively | (2,161) | (233) | ||
Total stockholders’ equity | 743,154 | 654,600 | ||
Total liabilities and stockholders’ equity | $ 745,837 | $ 654,875 |
Condensed Financial Informati_3
Condensed Financial Information of the Registrant - Condensed Balance Sheets Additional Information (Details) - $ / shares | Dec. 29, 2018 | Dec. 30, 2017 | Oct. 30, 2017 | Feb. 02, 2017 |
Condensed Financial Statements, Captions [Line Items] | ||||
Common stock, par value (in usd per share) | $ 0.01 | $ 0.01 | ||
Common stock, authorized (shares) | 200,000,000 | 200,000,000 | 200,000,000 | |
Common stock, issued (shares) | 78,246,000 | 74,654,000 | ||
Common stock, outstanding (shares) | 78,167,000 | 74,654,000 | 110,500,000 | |
Treasury stock, at cost (shares) | 79,000 | 28,000 | ||
Parent Company | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Common stock, par value (in usd per share) | $ 0.01 | $ 0.01 | ||
Common stock, authorized (shares) | 200,000,000 | 200,000,000 | ||
Common stock, issued (shares) | 78,246,000 | 74,654,000 | ||
Common stock, outstanding (shares) | 78,167,000 | 74,654,000 | ||
Treasury stock, at cost (shares) | 79,000 | 28,000 |
Condensed Financial Informati_4
Condensed Financial Information of the Registrant - Condensed Statements of Operations and Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 30, 2017 | Sep. 30, 2017 | Jul. 01, 2017 | Apr. 01, 2017 | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Total net revenue | $ 355,922 | $ 387,425 | $ 385,532 | $ 407,975 | $ 321,819 | $ 346,089 | $ 337,541 | $ 369,859 | $ 1,536,854 | $ 1,375,308 | $ 1,196,195 |
Cost applicable to revenue | 173,470 | 182,588 | 177,059 | 180,454 | 152,393 | 162,358 | 156,408 | 165,808 | 713,571 | 636,966 | 544,781 |
Operating expenses | 780,932 | 674,051 | 587,345 | ||||||||
Loss before income taxes | 4,868 | 4,228 | 24,977 | ||||||||
Income tax provision (benefit) | (18,785) | (38,910) | 11,634 | ||||||||
Net income | (18,440) | 5,171 | 12,467 | 24,455 | 27,341 | 1,089 | (1,933) | 16,641 | 23,653 | 43,138 | 13,343 |
Comprehensive income: | |||||||||||
Net income | $ (18,440) | $ 5,171 | $ 12,467 | $ 24,455 | $ 27,341 | $ 1,089 | $ (1,933) | $ 16,641 | 23,653 | 43,138 | 13,343 |
Unrealized gain (loss) on hedge instruments | 9,488 | 7,613 | (5,116) | ||||||||
Tax provision (benefit) of unrealized gain (loss) on hedge instruments | (2,430) | (2,925) | 1,844 | ||||||||
Comprehensive income | 30,711 | 47,826 | 10,071 | ||||||||
Parent Company | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Total net revenue | 0 | 0 | 0 | ||||||||
Cost applicable to revenue | 0 | 0 | 0 | ||||||||
Operating expenses | 265 | 218 | 195 | ||||||||
Loss before income taxes | (265) | (218) | (195) | ||||||||
Income tax provision (benefit) | (91) | (85) | (76) | ||||||||
Loss before equity in net income of subsidiaries | (174) | (133) | (119) | ||||||||
Net income of subsidiaries | 23,827 | 43,271 | 13,462 | ||||||||
Net income | 23,653 | 43,138 | 13,343 | ||||||||
Comprehensive income: | |||||||||||
Net income | 23,653 | 43,138 | 13,343 | ||||||||
Comprehensive income | $ 30,711 | $ 47,826 | $ 10,071 |
Condensed Financial Informati_5
Condensed Financial Information of the Registrant - Condensed Statements of Cash Flows (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Cash flows from operating activities: | |||
Net cash provided by (used for) operating activities | $ 106,628 | $ 90,252 | $ 97,588 |
Cash flows from investing activities: | |||
Net cash used for investing activities | (104,221) | (94,583) | (90,972) |
Cash flows from financing activities: | |||
Proceeds from issuance of common stock | 19,802 | 373,024 | 915 |
Purchase of treasury stock | (1,928) | 0 | (188) |
Dividend to stockholders | 0 | (170,983) | 0 |
Other | 0 | 0 | (199) |
Net cash provided by (used for) financing activities | 10,397 | 3,838 | (6,574) |
Cash and cash equivalents, beginning of year | 4,208 | 4,945 | |
Cash and cash equivalents, end of year | 17,132 | 4,208 | 4,945 |
Parent Company | |||
Cash flows from operating activities: | |||
Net cash provided by (used for) operating activities | 223 | 11 | (564) |
Cash flows from investing activities: | |||
Dividend from subsidiary | 0 | 170,983 | 167 |
Investment in subsidiary | (19,802) | (373,024) | (884) |
Net cash used for investing activities | (19,802) | (202,041) | (717) |
Cash flows from financing activities: | |||
Proceeds from stock option exercises and employee stock purchase plan | 19,802 | 1,092 | 915 |
Proceeds from issuance of common stock | 0 | 371,932 | 0 |
Dividend to stockholders | 0 | (170,983) | 0 |
Other | 0 | 0 | (387) |
Net cash provided by (used for) financing activities | 19,802 | 202,041 | 528 |
Net change in cash and cash equivalents | 223 | 11 | (753) |
Cash and cash equivalents, beginning of year | 23 | 12 | 765 |
Cash and cash equivalents, end of year | $ 246 | $ 23 | $ 12 |
Condensed Financial Informati_6
Condensed Financial Information of the Registrant - Notes to Condensed Financial Statements (Details) - USD ($) | Oct. 09, 2018 | Oct. 30, 2017 | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | Nov. 20, 2017 | Oct. 31, 2017 | Sep. 30, 2017 | Feb. 02, 2017 |
Condensed Financial Statements, Captions [Line Items] | |||||||||
Repayments of long-term debt | $ 204,275,000 | $ 367,660,000 | $ 6,515,000 | ||||||
Long-term debt, gross | 564,300,000 | ||||||||
Term Loan | |||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||
Long-term debt, gross | 564,300,000 | 568,575,000 | |||||||
Term Loan | First Lien Credit Agreement | |||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||
Borrowed funds | $ 175,000,000 | ||||||||
Term Loan | Second Lien Term Loans | |||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||
Repayments of long-term debt | $ 125,000,000 | ||||||||
Term Loan | First Lien Term Loans | |||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||
Borrowed funds | $ 570,000,000 | ||||||||
Repayments of long-term debt | $ 200,000,000 | $ 235,000,000 | |||||||
Long-term debt, gross | 364,300,000 | $ 568,575,000 | |||||||
Line of Credit | Revolving Credit Facility | |||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||
Credit facility borrowing capacity | $ 100,000,000 | $ 75,000,000 | |||||||
Amount outstanding on line of credit | 0 | ||||||||
Outstanding letters of credit | $ 5,500,000 |
Uncategorized Items - eye-20181
Label | Element | Value |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 19,030,000 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | 673,630,000 |
Restricted Cash and Cash Equivalents | us-gaap_RestrictedCashAndCashEquivalents | 742,000 |
Restricted Cash and Cash Equivalents | us-gaap_RestrictedCashAndCashEquivalents | 986,000 |
Restricted Cash and Cash Equivalents | us-gaap_RestrictedCashAndCashEquivalents | 866,000 |
Treasury Stock [Member] | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | (233,000) |
AOCI Attributable to Parent [Member] | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | (9,868,000) |
Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 19,030,000 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | $ 51,187,000 |
Common Stock [Member] | ||
Shares Outstanding, Adjusted Balance | eye_SharesOutstandingAdjustedBalance | 74,654,000 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | $ 746,000 |
Additional Paid-in Capital [Member] | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | $ 631,798,000 |