National Vision (EYE) 10-Q 13 May 21 2021 Q1 Quarterly report Financial data

Cover

Cover - shares	3 Months Ended
	Apr. 03, 2021	Apr. 30, 2021
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Apr. 3, 2021
Document Transition Report	false
Entity File Number	001-38257
Entity Registrant Name	National Vision Holdings, Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	46-4841717
Entity Address, Address Line One	2435 Commerce Ave
Entity Address, Address Line Two	Building 2200
Entity Address, City or Town	Duluth
Entity Address, State or Province	GA
Entity Address, Postal Zip Code	30096
City Area Code	770
Local Phone Number	822‑3600
Title of 12(b) Security	Common Stock, par value $0.01 per share
Trading Symbol	EYE
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		81,423,974
Entity Central Index Key	0001710155
Current Fiscal Year End Date	--01-01
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q1
Amendment Flag	false

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Apr. 03, 2021	Jan. 02, 2021
Current assets:
Cash and cash equivalents	$ 453,792	$ 373,903
Accounts receivable, net	60,036	57,989
Inventories	119,525	111,274
Prepaid expenses and other current assets	23,597	23,484
Total current assets	656,950	566,650
Property and equipment, net	336,214	341,293
Other assets:
Goodwill	777,613	777,613
Trademarks and trade names	240,547	240,547
Other intangible assets, net	47,638	49,511
Right of use assets	343,580	340,141
Other assets	17,303	17,743
Total non-current assets	1,762,895	1,766,848
Total assets	2,419,845	2,333,498
Current liabilities:
Accounts payable	79,807	64,861
Other payables and accrued expenses	98,796	110,309
Unearned revenue	47,498	32,657
Deferred revenue	65,617	58,899
Current maturities of long-term debt and finance lease obligations	4,165	3,598
Current operating lease obligations	63,945	58,356
Total current liabilities	359,828	328,680
Long-term debt and finance lease obligations, less current portion and debt discount	733,731	651,763
Non-current operating lease obligations	325,618	327,371
Other non-current liabilities:
Deferred revenue	22,242	20,828
Other liabilities	14,542	17,415
Deferred income taxes, net	76,352	80,939
Total other non-current liabilities	113,136	119,182
Commitments and contingencies
Stockholders’ equity:
Common stock, $0.01 par value; 200,000 shares authorized; 82,357 and 82,183 shares issued as of April 3, 2021 and January 2, 2021, respectively; 81,385 and 81,239 shares outstanding as of April 3, 2021 and January 2, 2021, respectively	823	821
Additional paid-in capital	728,339	795,697
Accumulated other comprehensive loss	(5,296)	(4,400)
Retained earnings	193,583	142,880
Treasury stock, at cost; 972 and 944 shares as of April 3, 2021 and January 2, 2021, respectively	(29,917)	(28,496)
Total stockholders’ equity	887,532	906,502
Total liabilities and stockholders’ equity	$ 2,419,845	$ 2,333,498

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Apr. 03, 2021	Jan. 02, 2021
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
Common stock, issued (shares)	82,357,000	82,183,000
Common stock, outstanding (shares)	81,385,000	81,239,000
Treasury stock (shares)	972,000	944,000

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations and Comprehensive Income - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Apr. 03, 2021	Mar. 28, 2020
Revenue:
Total net revenue	$ 534,180	$ 469,704
Costs applicable to revenue (exclusive of depreciation and amortization):
Total costs applicable to revenue	224,690	218,554
Operating expenses:
Selling, general and administrative expenses	223,593	193,741
Depreciation and amortization	23,555	24,810
Asset impairment	959	11,355
Litigation settlement	0	4,395
Other expense (income), net	(65)	(66)
Total operating expenses	248,042	234,235
Income from operations	61,448	16,915
Interest expense, net	6,330	7,455
Earnings before income taxes	55,118	9,460
Income tax provision (benefit)	11,686	(282)
Net income	$ 43,432	$ 9,742
Earnings per share:
Basic (in usd per share)	$ 0.53	$ 0.12
Diluted (in usd per share)	$ 0.48	$ 0.12
Weighted average shares outstanding:
Basic (shares)	81,333	80,129
Diluted (shares)	96,025	82,242
Comprehensive income:
Net income	$ 43,432	$ 9,742
Unrealized gain (loss) on hedge instruments	1,650	(8,858)
Tax provision (benefit) of unrealized gain (loss) on hedge instruments	2,546	(2,256)
Comprehensive income (loss)	42,536	3,140
Products
Revenue:
Total net revenue	443,067	392,841
Costs applicable to revenue (exclusive of depreciation and amortization):
Total costs applicable to revenue	159,691	156,370
Services and plans
Revenue:
Total net revenue	91,113	76,863
Costs applicable to revenue (exclusive of depreciation and amortization):
Total costs applicable to revenue	$ 64,999	$ 62,184

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands	Total	Cumulative effect of change in accounting principle	Balance as adjusted	Common Stock	Common StockBalance as adjusted	Additional Paid-In Capital	Additional Paid-In CapitalCumulative effect of change in accounting principle	Additional Paid-In CapitalBalance as adjusted	Accumulated Other Comprehensive Loss	Accumulated Other Comprehensive LossBalance as adjusted	Retained Earnings	Retained EarningsCumulative effect of change in accounting principle	Retained EarningsBalance as adjusted	Treasury Stock	Treasury StockBalance as adjusted
Beginning balance (shares) at Dec. 28, 2019				79,678	79,678
Balance at beginning of period at Dec. 28, 2019	$ 776,437	$ (529)	$ 775,908	$ 805	$ 805	$ 700,121		$ 700,121	$ (3,814)	$ (3,814)	$ 107,132	$ (529)	$ 106,603	$ (27,807)	$ (27,807)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock (shares)				602
Issuance of common stock	5,120			$ 6		5,114
Stock based compensation	2,066					2,066
Purchase of treasury stock (shares)				(2)
Purchase of treasury stock	(74)													(74)
Unrealized gain (loss) on hedge instruments, net of tax	(6,602)								(6,602)
Net income	9,742										9,742
Ending balance (shares) at Mar. 28, 2020				80,278
Balance at end of period at Mar. 28, 2020	786,160			$ 811		707,301			(10,416)		116,345			(27,881)
Beginning balance (shares) at Jan. 02, 2021				81,239	81,239
Balance at beginning of period at Jan. 02, 2021	906,502	$ (64,114)	$ 842,388	$ 821	$ 821	795,697	$ (71,385)	$ 724,312	(4,400)	$ (4,400)	142,880	$ 7,271	$ 150,151	(28,496)	$ (28,496)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock (shares)				174
Issuance of common stock	1,058			$ 2		1,056
Stock based compensation	2,971					2,971
Purchase of treasury stock (shares)				(28)
Purchase of treasury stock	(1,421)													(1,421)
Unrealized gain (loss) on hedge instruments, net of tax	(896)								(896)
Net income	43,432										43,432
Ending balance (shares) at Apr. 03, 2021				81,385
Balance at end of period at Apr. 03, 2021	$ 887,532			$ 823		$ 728,339			$ (5,296)		$ 193,583			$ (29,917)

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Apr. 03, 2021	Mar. 28, 2020
Cash flows from operating activities:
Net income	$ 43,432	$ 9,742
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	23,555	24,810
Amortization of debt discount and deferred financing costs	762	217
Asset impairment	959	11,355
Deferred income tax expense (benefit)	11,686	(282)
Stock based compensation expense	2,988	2,093
Losses (gains) on change in fair value of derivatives	(2,252)	0
Inventory adjustments	177	1,695
Other	594	2,099
Changes in operating assets and liabilities:
Accounts receivable	(2,698)	16,431
Inventories	(8,428)	(4,511)
Operating lease right of use assets and lease liabilities	(484)	7,525
Other assets	(235)	3,524
Accounts payable	14,946	19,171
Deferred and unearned revenue	22,973	(19,006)
Other liabilities	(10,323)	11,197
Net cash provided by operating activities	97,652	86,060
Cash flows from investing activities:
Purchase of property and equipment	(16,382)	(13,053)
Other	8	199
Net cash used for investing activities	(16,374)	(12,854)
Cash flows from financing activities:
Borrowings on long-term debt, net of discounts	0	146,269
Repayments on long-term debt	0	0
Proceeds from exercise of stock options	1,868	5,120
Purchase of treasury stock	(1,421)	(74)
Payments of debt issuance costs	0	0
Payments on finance lease obligations	(1,536)	(714)
Net cash provided by (used for) financing activities	(1,089)	150,601
Net change in cash, cash equivalents and restricted cash	80,189	223,807
Cash, cash equivalents and restricted cash, beginning of year	375,159	40,307
Cash, cash equivalents and restricted cash, end of period	455,348	264,114
Supplemental cash flow disclosure information:
Cash paid for interest	5,706	7,065
Capital expenditures accrued at the end of the period	$ 9,247	$ 12,176

Description of Business and Bas

Description of Business and Basis of Presentation	3 Months Ended
	Apr. 03, 2021
Accounting Policies [Abstract]
Description of Business and Basis of Presentation	Description of Business and Basis of Presentation 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 wholly owned subsidiaries. We are a leading value retailer of eyeglasses and contact lenses in the United States. We operated 1,230 and 1,205 retail optical locations in the United States and its territories as of April 3, 2021 and January 2, 2021, respectively, through our five store brands, including America’s Best Contacts and Eyeglasses (“America’s Best”), Eyeglass World, Vista Optical locations on select U.S. Army/Air Force military bases (“Military”) and within select Fred Meyer stores, and our management & services arrangement with Walmart (“Legacy”). Basis of Presentation We prepare our unaudited interim condensed consolidated financial statements in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and, therefore, do not include all information and disclosures required by U.S. GAAP for complete consolidated financial statements. The condensed consolidated balance sheet as of January 2, 2021 has been derived from the audited consolidated balance sheet for the fiscal year then ended. These condensed consolidated financial statements reflect all normal and recurring adjustments which are, in the opinion of management, necessary to present fairly the Company’s consolidated results of the interim period. Certain prior year amounts in the Condensed Consolidated Statements of Cash Flows have been reclassified to conform to the current presentation. Certain information and disclosures normally included in our annual consolidated financial statements have been condensed or omitted; however, we believe that the disclosures included herein are sufficient for a fair presentation of the information presented. These condensed consolidated financial statements should be read in conjunction with our audited consolidated financial statements and the notes thereto for the fiscal year ended January 2, 2021 included in the 2020 Annual Report on Form 10-K. The Company’s significant accounting policies are set forth in Note 1 within those consolidated financial statements. We use the same accounting policies in preparing interim condensed consolidated financial information and annual consolidated financial statements. There were no changes to our significant accounting policies during the three months ended April 3, 2021, except for the adoption of Accounting Standards Update (“ASU”) No. 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity (“ASU 2020-06”) . See “Adoption of New Accounting Pronouncements” below for further discussion. The condensed 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. Fiscal Year Our fiscal year consists of 52 or 53 weeks ending on the Saturday closest to December 31. Fiscal year 2021 contains 52 weeks and will end on January 1, 2022. All three month periods presented herein contain 13 weeks. All references to years and quarters relate to fiscal periods rather than calendar periods. Seasonality The consolidated results of operations for the three months ended April 3, 2021 and March 28, 2020, are not necessarily indicative of the results to be expected for the full fiscal year due to seasonality and uncertainty of general economic conditions that may impact our key end markets. Historically, our business has realized a higher portion of net revenue, income from operations, and cash flows from operations in the first half of the year, and a lower portion of net revenue, income from operations, and cash flows from operations in the fourth fiscal quarter. The first half seasonality is attributable primarily to the timing of our customers’ personal income tax refunds and annual health insurance program start/reset periods. Seasonality related to fourth quarter holiday spending by retail customers generally does not impact our business. Our quarterly consolidated results generally may also be affected by the timing of new store openings, store closings, and certain holidays. The COVID-19 pandemic resulted in the temporary closure of our stores for a portion of the first half of fiscal year 2020 and caused changes in fiscal year 2020 seasonality. COVID-19 may continue to cause changes to the seasonality we have historically experienced in fiscal year 2021 and beyond. 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. Income Taxes Our income tax provision for the three months ended April 3, 2021 reflected our statutory federal and state rate of 25.5%, combined with a benefit of $2.1 million for the stranded tax effect associated with our interest rate swaps that matured in the first quarter of 2021. In comparison, the income tax benefit for the three months ended March 28, 2020 reflected our statutory federal and state rate of 25.5% combined with a benefit of $2.7 million resulting from stock option exercises. Adoption of New Accounting Pronouncements Convertible Instruments and Contracts in an Entity’s Own Equity. In August 2020, the Financial Accounting Standards Board (“FASB”) issued ASU 2020-06. This new guidance simplifies and adds disclosure requirements for the accounting and measurement of convertible instruments and the settlement assessment for contracts in an entity’s own equity. The guidance also requires the application of the if-converted method to calculate the impact of convertible instruments on diluted earnings per share. ASU 2020-06 is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2021. The company early adopted the guidance in the first quarter of 2021 using the modified retrospective approach and recognized a cumulative effect of the change of $7.3 million as an adjustment to the opening balance of retained earnings. Upon adoption of ASU 2020-06 the Company eliminated the equity components related to its convertible debt and increased the related liability components by $82.9 million. In addition, as a result of the adoption, our deferred tax liabilities decreased by $18.8 million and additional paid-in capital decreased by $71.4 million. The adoption did not have an impact on the calculated weighted average shares outstanding used in the calculation of diluted EPS since the Company was using the if-converted method prior to the adoption of ASU 2020-06. Refer to Note 11. “Earnings per Share” for more information. The following table summarizes the impact of adoption on the Company’s condensed consolidated statement of operations for the three months ended April 3, 2021: In thousands (except earnings per share) With ASU 2020-06 Adoption Without ASU 2020-06 Adoption Impact of Adoption Income from operations $ 61,448 $ 61,448 $ — Interest expense, net 6,330 10,136 (3,806) Earnings before income taxes 55,118 51,312 3,806 Income tax provision 11,686 10,866 820 Net income $ 43,432 $ 40,446 $ 2,986 Earnings per share: Basic $ 0.53 $ 0.50 $ 0.04 Diluted $ 0.48 $ 0.48 $ — Impact of adoption on basic earnings per share is calculated using impact on net income divided by basic weighted average shares outstanding during the period. Future Adoption of Accounting Pronouncements Reference Rate Reform. In March 2020, the FASB issued ASU No. 2020-04, Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“ASU 2020-04”). This guidance provides optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships, and other transactions that may be affected by the cessation of the London Inter-bank Offered Rate (“LIBOR.”) An entity may elect to apply the amendments for contract modifications as of any date from the beginning of an interim period that includes or is subsequent to March 12, 2020 through December 31, 2022. A substantial portion of our debt is subject to interest payments that are indexed to LIBOR; additionally, we are party to an interest rate derivative based on LIBOR. We are currently evaluating the effect of this guidance and have not applied the provisions of this guidance during the current fiscal year. The FASB issued other accounting guidance during the period that is not currently applicable or expected to have a material impact on the Company’s condensed consolidated financial statements, and therefore, is not described above.

Details of Certain Balance Shee

Details of Certain Balance Sheet Accounts	3 Months Ended
	Apr. 03, 2021
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 $ 30,885 $ 28,405 Credit card receivables 22,968 21,557 Other receivables 6,569 8,460 Allowance for credit losses (386) (433) $ 60,036 $ 57,989 In thousands As of As of Inventories: Raw materials and work in process (1) $ 56,081 $ 55,473 Finished goods 63,444 55,801 $ 119,525 $ 111,274 (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 Other payables and accrued expenses: Associate compensation and benefits (1) $ 38,125 $ 51,081 Advertising 1,966 2,173 Self-insurance liabilities 8,979 8,650 Reserves for customer returns and remakes 9,786 8,084 Capital expenditures 9,247 8,455 Legacy management & services agreement 6,109 5,386 Fair value of derivative liabilities 4,086 5,116 Supplies and other store support expenses 2,170 3,461 Litigation settlements 1,114 1,107 Lease concessions 1,251 3,142 Other 15,963 13,654 $ 98,796 $ 110,309 (1) Includes the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act deferred employer payroll taxes in the amount of $0.0 million and $12.8 million as of April 3, 2021 and January 2, 2021, respectively. In thousands As of As of Other non-current liabilities: Fair value of derivative liabilities $ 4,790 $ 7,663 Self-insurance liabilities 7,279 7,046 Other 2,473 2,706 $ 14,542 $ 17,415

Fair Value Measurement

Fair Value Measurement	3 Months Ended
	Apr. 03, 2021
Fair Value Disclosures [Abstract]
Fair Value Measurement	Fair Value Measurement Recurring fair value measurements 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 derivatives prior to their scheduled expiration dates. The fair value is based on information that is model-driven and whose inputs were observable (Level 2 inputs). See Note 5. “Interest Rate Derivatives” for further details. Nonrecurring fair value measurements Tangible Long-lived and Right of Use (“ROU”) Store Assets We recognized impairments of $1.0 million during the three months ended April 3, 2021 related to our long-lived tangible store assets and ROU assets. The impairments were primarily driven by lower than projected customer sales volume in certain stores. The cash flows used in estimating fair value were discounted using a market rate of 7.5%. We consider market-based indications of prevailing rental rates for retail space, market participant discount rates, and lease incentives when estimating the fair values of ROU assets. A decrease in the estimated cash flows would lead to a lower fair value measurement, as would an increase in the discount rate. These non-recurring fair value measurements are classified as Level 3 measurements in the fair value hierarchy. The estimated remaining fair value of the assets impaired during the three months ended April 3, 2021 was $2.0 million. Substantially all of the remaining fair value of the impaired store assets in fiscal year 2021 represents the fair value of ROU assets. Additional fair value information Long-term Debt - 2025 Notes The Company has $402.5 million in aggregate principal amount of 2.50% convertible senior notes due on May 15, 2025 (the “2025 Notes”) issued and outstanding as of April 3, 2021. Refer to Note 4. “Long-term Debt” for more information on the 2025 Notes. The estimated fair value of the 2025 Notes was approximately $644.3 million and $655.3 million as of April 3, 2021 and January 2, 2021, respectively. The estimated fair value of the 2025 Notes is based on the prices the 2025 Notes have traded in the market as of April 3, 2021, as well as overall market conditions on the date of valuation, stated coupon rates, the number of coupon payments each year and the maturity date, and represents a Level 2 measurement in the fair value hierarchy.

Long-term Debt

Long-term Debt	3 Months Ended
	Apr. 03, 2021
Debt Disclosure [Abstract]
Long-term Debt	Long-term Debt Long-term debt consists of the following: In thousands As of As of 2025 Notes, due May 15, 2025 $ 402,500 $ 402,500 Term loan, due July 18, 2024 317,375 317,375 Long-term debt before debt discount 719,875 719,875 Unamortized discount and issuance costs - 2025 Notes (9,688) (93,123) Unamortized discount and issuance costs - term loan (1,991) (2,141) Long-term debt less debt discount 708,196 624,611 Less current maturities — — Long-term debt - non-current portion 708,196 624,611 Finance lease obligations 29,700 30,750 Less current maturities (4,165) (3,598) Long-term debt and finance lease obligations, less current portion and debt discount $ 733,731 $ 651,763 We were in compliance with all covenants related to our long-term debt as of April 3, 2021. 2025 Notes The Company adopted ASU 2020-06 as of January 3, 2021. ASU 2020-06 eliminates the cash conversion and the beneficial conversion feature models. Under the new convertible debt framework, the Company eliminated the equity components and increased the debt balance. Refer to Note 1. “Description of Business and Basis of Presentation” for further discussion of the adoption of ASU 2020-06. As a result of adopting ASU 2020-06, our effective interest rate decreased from 9.1% as of January 2, 2021 to 3.2% starting in the first quarter of 2021. We recognized $2.5 million and $0.5 million in interest expense for the interest coupon and amortization of issuance costs, respectively, during the three months ended April 3, 2021. As of April 3, 2021, the remaining period for the unamortized debt issuance costs balance was approximately four years. As of April 3, 2021, the 2025 Notes can be converted by holders. The conversion rate will be subject to adjustment upon the occurrence of certain specified events including, but not limited to: issuance of stock dividends, splits and combinations; distribution of rights, options and warrants; spin-offs and other distributed property; cash dividends or distributions; tender offers or exchange offers; and certain other corporate transactions.

Interest Rate Derivatives

Interest Rate Derivatives	3 Months Ended
	Apr. 03, 2021
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Interest Rate Derivatives	Interest Rate DerivativesWe are party to an interest rate collar to offset the variability of cash flows in LIBOR-indexed debt interest payments. The aggregate notional amount of the interest rate collar was $375.0 million as of April 3, 2021. The fair value of our interest rate collar instrument was $8.9 million as of April 3, 2021 and is not designated as a cash flow hedge. The interest rate swaps we held at the end of fiscal year 2020 matured in the first quarter of 2021. The fair value of our interest rate derivative instruments was $12.8 million as of January 2, 2021, $1.5 million of which was designated as a cash flow hedge. See Note 3. “Fair Value Measurement” for further details.Gains on the change in fair value of the interest rate collar of approximately $2.0 million were recorded in interest expense, net during the three months ended April 3, 2021. Interest expense, net related to our interest rate derivatives considered to be highly effective hedges for the three months ended April 3, 2021 was $1.5 million.Cash flows related to derivatives qualifying as hedges are included in the same section of the Condensed Consolidated Statements of Cash Flows as the underlying assets and liabilities being hedged. Cash flows during the three months ended April 3, 2021 related to derivatives not qualifying as hedges were included in the operating section of the Condensed Consolidated Statements of Cash Flows and were immaterial. As of April 3, 2021, the Company expects to reclassify approximately $1.7 million of unrealized losses on derivative instruments, net of tax, from Accumulated other comprehensive loss (“AOCL”) into earnings in the next 12 months as the derivative instruments mature. See Note 13. “Accumulated Other Comprehensive Loss” for further details.

Stock Incentive Plans

Stock Incentive Plans	3 Months Ended
	Apr. 03, 2021
Share-based Payment Arrangement [Abstract]
Stock Incentive Plans	Stock Incentive Plans During the three months ended April 3, 2021, the Company granted 100,634 stock options, 102,100 performance-based restricted stock units (“PSUs”) and 122,802 time-based restricted stock units (“RSUs”) to eligible employees under the National Vision Holdings, Inc. 2017 Omnibus Incentive Plan (the “2017 Omnibus Incentive Plan”). The time-based options granted in fiscal 2021 vest in three equal annual installments, with one-third of the total options vesting on each of the first, second, and third anniversaries of the grant date, subject to continued employment through the applicable vesting date. The PSUs granted in fiscal 2021 are settled after the end of the performance period (i.e., cliff vesting), which begins on the first day of our 2021 fiscal year and ends on the last day of our 2023 fiscal year, and are based on the Company’s achievement of certain performance targets. The RSUs granted in fiscal 2021 vest primarily in three equal installments. During the three months ended April 3, 2021, the Company granted 2,112 restricted stock awards (“RSAs”) to eligible members of the Company’s Board of Directors under the 2017 Omnibus Incentive Plan. The awards vest one year from the grant date.

Revenue From Contracts With Cus

Revenue From Contracts With Customers	3 Months Ended
	Apr. 03, 2021
Revenue from Contract with Customer [Abstract]
Revenue From Contracts With Customers	Revenue From Contracts With Customers The majority of our 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, eye care club memberships and management fees earned from our legacy partner. The following disaggregation of revenues depicts our revenue based on the timing of revenue recognition: Three Months Ended In thousands April 3, 2021 March 28, 2020 Revenues recognized at a point in time $ 493,438 $ 434,179 Revenues recognized over time 40,742 35,525 Total net revenue $ 534,180 $ 469,704 Refer to Note 10. “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. Contract Assets and Liabilities The Company’s contract assets and contract liabilities primarily result from timing differences between the performance of our obligations and the customer’s payment. Accounts Receivable Credit loss expense recognized on our receivables, which is presented in SG&A expenses in the Company’s condensed consolidated statements of operations, were $0.1 million for the three months ended April 3, 2021 as compared to $0.4 million for the three months ended March 28, 2020. Unsatisfied Performance Obligations (Contract Liabilities) Our deferred revenue balance as of April 3, 2021 was $87.9 million. We expect future revenue recognition of this balance of $56.4 million, $22.5 million, $8.3 million, $0.6 million, and $0.1 million in fiscal years 2021, 2022, 2023, 2024, and 2025, respectively. We recognized $20.2 million of previously deferred revenues during the three months ended April 3, 2021 and $28.0 million during the three months ended March 28, 2020.

Leases

Leases	3 Months Ended
	Apr. 03, 2021
Leases [Abstract]
Leases	Leases Our lease costs for the three months ended April 3, 2021 and March 28, 2020 were as follows: Three Months Ended In thousands April 3, 2021 March 28, 2020 Operating lease cost Fixed lease cost (a) $ 20,651 $ 19,312 Variable lease cost (b) 7,403 6,810 Sublease income (c) (910) (591) Finance lease cost Amortization of finance lease assets 1,123 1,156 Interest expense, net: Interest on finance lease liabilities 780 872 Net lease cost $ 29,047 $ 27,559 (a) Includes short-term leases, which are immaterial. (b) Includes costs for insurance, real estate taxes and common area maintenance expenses, which are variable, as are lease costs above minimum thresholds for Fred Meyer stores and lease costs for Military stores. (c) Income from sub-leasing of stores includes rental income from leasing space to ophthalmologists and optometrists who are independent contractors. Lease Term and Discount Rate As of As of Weighted average remaining lease term (months) Operating leases 78 77 Finance leases 78 79 Weighted average discount rate (a) Operating leases 4.8 % 4.7 % Finance leases (b) 12.2 % 12.3 % (a) The discount rate used to determine the lease assets and lease liabilities was derived upon considering (i) incremental borrowing rates on our term loan and revolving credit facility; (ii) fixed rates on interest rate swaps; (iii) LIBOR margins for issuers of similar credit rating; and (iv) effect of collateralization. As a majority of our leases are five (b) The discount rate on finance leases is higher than operating leases because the present value of minimum lease payments was higher than the fair value of leased properties for certain leases entered into prior to adoption of ASC 842. The discount rate differential for those leases is not material to our results of operations. In thousands Three Months Ended April 3, 2021 Three Months Ended March 28, 2020 Other Information Operating cash outflows - operating leases $ 21,914 $ 15,269 Right of use assets acquired under finance leases $ — $ 1,244 Right of use assets acquired under operating leases $ 23,726 $ 17,658 The following table summarizes the maturity of our lease liabilities as of April 3, 2021: In thousands Operating Leases (a) Finance Leases (b) Fiscal Year 2021 $ 59,803 $ 5,447 2022 74,503 6,635 2023 73,434 6,252 2024 63,682 4,753 2025 58,538 4,913 Thereafter 124,480 11,420 Total lease liabilities 454,440 39,420 Less: Interest 64,877 9,720 Present value of lease liabilities (c) $ 389,563 $ 29,700 (a) Operating lease payments include $56.6 million related to options to extend lease terms that are reasonably certain of being exercised. (b) Finance lease payments include $1.7 million related to options to extend lease terms that are reasonably certain of being exercised. (c) The present value of lease liabilities excludes $24.3 million of legally binding minimum lease payments for leases signed but not yet commenced.
Leases	Leases Our lease costs for the three months ended April 3, 2021 and March 28, 2020 were as follows: Three Months Ended In thousands April 3, 2021 March 28, 2020 Operating lease cost Fixed lease cost (a) $ 20,651 $ 19,312 Variable lease cost (b) 7,403 6,810 Sublease income (c) (910) (591) Finance lease cost Amortization of finance lease assets 1,123 1,156 Interest expense, net: Interest on finance lease liabilities 780 872 Net lease cost $ 29,047 $ 27,559 (a) Includes short-term leases, which are immaterial. (b) Includes costs for insurance, real estate taxes and common area maintenance expenses, which are variable, as are lease costs above minimum thresholds for Fred Meyer stores and lease costs for Military stores. (c) Income from sub-leasing of stores includes rental income from leasing space to ophthalmologists and optometrists who are independent contractors. Lease Term and Discount Rate As of As of Weighted average remaining lease term (months) Operating leases 78 77 Finance leases 78 79 Weighted average discount rate (a) Operating leases 4.8 % 4.7 % Finance leases (b) 12.2 % 12.3 % (a) The discount rate used to determine the lease assets and lease liabilities was derived upon considering (i) incremental borrowing rates on our term loan and revolving credit facility; (ii) fixed rates on interest rate swaps; (iii) LIBOR margins for issuers of similar credit rating; and (iv) effect of collateralization. As a majority of our leases are five (b) The discount rate on finance leases is higher than operating leases because the present value of minimum lease payments was higher than the fair value of leased properties for certain leases entered into prior to adoption of ASC 842. The discount rate differential for those leases is not material to our results of operations. In thousands Three Months Ended April 3, 2021 Three Months Ended March 28, 2020 Other Information Operating cash outflows - operating leases $ 21,914 $ 15,269 Right of use assets acquired under finance leases $ — $ 1,244 Right of use assets acquired under operating leases $ 23,726 $ 17,658 The following table summarizes the maturity of our lease liabilities as of April 3, 2021: In thousands Operating Leases (a) Finance Leases (b) Fiscal Year 2021 $ 59,803 $ 5,447 2022 74,503 6,635 2023 73,434 6,252 2024 63,682 4,753 2025 58,538 4,913 Thereafter 124,480 11,420 Total lease liabilities 454,440 39,420 Less: Interest 64,877 9,720 Present value of lease liabilities (c) $ 389,563 $ 29,700 (a) Operating lease payments include $56.6 million related to options to extend lease terms that are reasonably certain of being exercised. (b) Finance lease payments include $1.7 million related to options to extend lease terms that are reasonably certain of being exercised. (c) The present value of lease liabilities excludes $24.3 million of legally binding minimum lease payments for leases signed but not yet commenced.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Apr. 03, 2021
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies 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. We are currently and may in the future become subject to various claims and pending or threatened lawsuits in the ordinary course of our business. Our subsidiary, FirstSight Vision Services, Inc. (“FirstSight”), is a defendant in a purported class action in the U.S. District Court for the Southern District of California that alleges that FirstSight participated in arrangements that caused the illegal delivery of eye examinations and that FirstSight thereby violated, among other laws, the corporate practice of optometry and the unfair competition and false advertising laws of California. The lawsuit was filed in 2013 and FirstSight was added as a defendant in 2016. In March 2017, the court granted the motion to dismiss previously filed by FirstSight and dismissed the complaint with prejudice. The plaintiffs filed an appeal with 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. On March 23, 2020, the district court granted FirstSight’s motion to dismiss the second amended complaint. On April 24, 2020, the plaintiffs filed a third amended complaint. FirstSight filed a motion to dismiss the third amended complaint on May 8, 2020. On February 4, 2021, the district court granted FirstSight’s motion in part and denied it in part. FirstSight’s answer to the remaining claims was filed February 18, 2021. We believe that the claims alleged are without merit and intend to continue to defend the litigation vigorously. In November 2019, the Company agreed to enter into a pre-litigation settlement with six former associates who asserted, on behalf of themselves and a proposed class, violations of the Fair Labor Standards Act and of California wage and hour laws. In order to avoid the burden, expense and uncertainty of litigation, and without admitting liability, the Company agreed to a settlement with the named claimants and all participating class members for a maximum settlement amount of $895,000. This settlement was submitted by the parties for approval through arbitration and an order granting preliminary approval of the settlement was issued by the arbitrator on February 27, 2021.

Segment Reporting

Segment Reporting	3 Months Ended
	Apr. 03, 2021
Segment Reporting [Abstract]
Segment Reporting	Segment Reporting The Company provides its principal products and services through two reportable segments: Owned & Host and Legacy. The “Corporate/Other” category includes the results of operations of our other operating segments, AC Lens and FirstSight, as well as 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. Beginning in the first quarter of 2021, incremental expenses related to the COVID-19 pandemic were allocated to the reportable segments but were included in the Corporate/Other category in 2020. The change in unearned revenue recognized in net product sales in the Reconciliations category during the three months ended April 3, 2021 compared to the three months ended March 28, 2020 is due to stronger sales at the end of the first quarter of 2021 and lower sales in the first quarter of 2020 due to the impact of store closures. Our reportable segment profit measure is earnings before interest, tax, depreciation and amortization (“EBITDA”), or net revenue, less costs applicable to revenue, less SG&A expenses. Depreciation and amortization, asset impairment, litigation settlement and other corporate costs that are not allocated to the reportable segments, including interest expense are excluded from segment EBITDA. There are no revenue 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 and associated costs applicable to revenue, which are 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 Chief Operating Decision Maker (“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. Three Months Ended April 3, 2021 In thousands Owned & Host Legacy Corporate/Other Reconciliations Total Net product sales $ 369,370 $ 27,420 $ 61,218 $ (14,941) $ 443,067 Net sales of services and plans 83,077 16,162 — (8,126) 91,113 Total net revenue 452,447 43,582 61,218 (23,067) 534,180 Costs of products 97,104 12,859 53,026 (3,298) 159,691 Costs of services and plans 58,804 6,195 — — 64,999 Total costs applicable to revenue 155,908 19,054 53,026 (3,298) 224,690 SG&A 149,963 14,293 59,337 — 223,593 Asset impairment — — 959 — 959 Other expense (income), net — — (65) — (65) EBITDA $ 146,576 $ 10,235 $ (52,039) $ (19,769) Depreciation and amortization 23,555 Interest expense, net 6,330 Earnings before income taxes $ 55,118 Three Months Ended March 28, 2020 In thousands Owned & Host Legacy Corporate/Other Reconciliations Total Net product sales $ 281,914 $ 24,418 $ 66,571 $ 19,938 $ 392,841 Net sales of services and plans 65,313 12,039 — (489) 76,863 Total net revenue 347,227 36,457 66,571 19,449 469,704 Costs of products 81,917 11,404 57,907 5,142 156,370 Costs of services and plans 55,594 6,590 — — 62,184 Total costs applicable to revenue 137,511 17,994 57,907 5,142 218,554 SG&A 134,714 13,631 45,396 — 193,741 Asset impairment — — 11,355 — 11,355 Litigation settlement — — 4,395 — 4,395 Other expense (income), net — — (66) — (66) EBITDA $ 75,002 $ 4,832 $ (52,416) $ 14,307 Depreciation and amortization 24,810 Interest expense, net 7,455 Earnings before income taxes $ 9,460

Earnings Per Share

Earnings Per Share	3 Months Ended
	Apr. 03, 2021
Earnings Per Share [Abstract]
Earnings Per Share	Earnings Per ShareDiluted EPS related to the 2025 Notes is calculated using the if-converted method; the number of dilutive shares is based on the initial conversion rate associated with the 2025 Notes. A reconciliation of the numerators and denominators of the basic and diluted EPS calculations is as follows: Three Months Ended In thousands, except EPS April 3, 2021 March 28, 2020 Net income $ 43,432 $ 9,742 After-tax interest expense for 2025 Notes 2,332 — Numerator for diluted EPS $ 45,764 $ 9,742 Weighted average shares outstanding for basic EPS 81,333 80,129 Effect of dilutive securities: Stock options 1,397 2,020 Restricted stock 383 93 2025 Notes 12,912 — Weighted average shares outstanding for diluted EPS 96,025 82,242 Basic EPS $ 0.53 $ 0.12 Diluted EPS $ 0.48 $ 0.12 Anti-dilutive options and RSUs outstanding excluded from EPS 38 394

Restricted Cash

Restricted Cash	3 Months Ended
	Apr. 03, 2021
Cash and Cash Equivalents [Abstract]
Restricted Cash	Restricted Cash The following table provides a reconciliation of cash and cash equivalents reported within the condensed consolidated balance sheets to the total of cash, cash equivalents and restricted cash shown in the condensed consolidated statement of cash flows: Three Months Ended In thousands April 3, 2021 March 28, 2020 Cash and cash equivalents $ 453,792 $ 263,154 Restricted cash included in other assets 1,556 960 Total cash, cash equivalents and restricted cash $ 455,348 $ 264,114

Accumulated Other Comprehensive

Accumulated Other Comprehensive Loss	3 Months Ended
	Apr. 03, 2021
Equity [Abstract]
Accumulated Other Comprehensive Loss	Accumulated Other Comprehensive Loss Changes in the fair value of the Company’s cash flow hedge derivative instruments from their inception are recorded in AOCL if the instruments are deemed to be highly effective as cash flow hedges. The following table presents the changes in AOCL, net of tax during the three months ended April 3, 2021 and March 28, 2020, respectively: Three Months Ended In thousands April 3, 2021 March 28, 2020 Cash flow hedging activity: Balance at beginning of period $ (4,400) $ (3,814) Other comprehensive income (loss) before reclassification (10) (10,681) Tax effect of other comprehensive income (loss) before reclassification 3 2,721 Amount reclassified from AOCL into interest expense 1,660 1,823 Tax effect of amount reclassified from AOCL into interest expense (424) (465) Stranded tax effect of matured interest rate swaps (2,125) — Net current period other comprehensive income (loss), net of tax (896) (6,602) Balance at end of period $ (5,296) $ (10,416) See Note 5. “Interest Rate Derivatives” for a description of the Company’s use of cash flow hedging derivatives.

Description of Business and B_2

Description of Business and Basis of Presentation (Policies)	3 Months Ended
	Apr. 03, 2021
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation We prepare our unaudited interim condensed consolidated financial statements in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and, therefore, do not include all information and disclosures required by U.S. GAAP for complete consolidated financial statements. The condensed consolidated balance sheet as of January 2, 2021 has been derived from the audited consolidated balance sheet for the fiscal year then ended. These condensed consolidated financial statements reflect all normal and recurring adjustments which are, in the opinion of management, necessary to present fairly the Company’s consolidated results of the interim period. Certain prior year amounts in the Condensed Consolidated Statements of Cash Flows have been reclassified to conform to the current presentation. Certain information and disclosures normally included in our annual consolidated financial statements have been condensed or omitted; however, we believe that the disclosures included herein are sufficient for a fair presentation of the information presented. These condensed consolidated financial statements should be read in conjunction with our audited consolidated financial statements and the notes thereto for the fiscal year ended January 2, 2021 included in the 2020 Annual Report on Form 10-K. The Company’s significant accounting policies are set forth in Note 1 within those consolidated financial statements. We use the same accounting policies in preparing interim condensed consolidated financial information and annual consolidated financial statements. There were no changes to our significant accounting policies during the three months ended April 3, 2021, except for the adoption of Accounting Standards Update (“ASU”) No. 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity (“ASU 2020-06”) . See “Adoption of New Accounting Pronouncements” below for further discussion. The condensed 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.
Fiscal Year	Fiscal Year Our fiscal year consists of 52 or 53 weeks ending on the Saturday closest to December 31. Fiscal year 2021 contains 52 weeks and will end on January 1, 2022. All three month periods presented herein contain 13 weeks. All references to years and quarters relate to fiscal periods rather than calendar periods.
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.
Income Taxes	Income Taxes Our income tax provision for the three months ended April 3, 2021 reflected our statutory federal and state rate of 25.5%, combined with a benefit of $2.1 million for the stranded tax effect associated with our interest rate swaps that matured in the first quarter of 2021. In comparison, the income tax benefit for the three months ended March 28, 2020 reflected our statutory federal and state rate of 25.5% combined with a benefit of $2.7 million resulting from stock option exercises.
Adoption of New Accounting Pronouncements	Adoption of New Accounting Pronouncements Convertible Instruments and Contracts in an Entity’s Own Equity. In August 2020, the Financial Accounting Standards Board (“FASB”) issued ASU 2020-06. This new guidance simplifies and adds disclosure requirements for the accounting and measurement of convertible instruments and the settlement assessment for contracts in an entity’s own equity. The guidance also requires the application of the if-converted method to calculate the impact of convertible instruments on diluted earnings per share. ASU 2020-06 is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2021. The company early adopted the guidance in the first quarter of 2021 using the modified retrospective approach and recognized a cumulative effect of the change of $7.3 million as an adjustment to the opening balance of retained earnings. Upon adoption of ASU 2020-06 the Company eliminated the equity components related to its convertible debt and increased the related liability components by $82.9 million. In addition, as a result of the adoption, our deferred tax liabilities decreased by $18.8 million and additional paid-in capital decreased by $71.4 million. The adoption did not have an impact on the calculated weighted average shares outstanding used in the calculation of diluted EPS since the Company was using the if-converted method prior to the adoption of ASU 2020-06. Refer to Note 11. “Earnings per Share” for more information. The following table summarizes the impact of adoption on the Company’s condensed consolidated statement of operations for the three months ended April 3, 2021: In thousands (except earnings per share) With ASU 2020-06 Adoption Without ASU 2020-06 Adoption Impact of Adoption Income from operations $ 61,448 $ 61,448 $ — Interest expense, net 6,330 10,136 (3,806) Earnings before income taxes 55,118 51,312 3,806 Income tax provision 11,686 10,866 820 Net income $ 43,432 $ 40,446 $ 2,986 Earnings per share: Basic $ 0.53 $ 0.50 $ 0.04 Diluted $ 0.48 $ 0.48 $ — Impact of adoption on basic earnings per share is calculated using impact on net income divided by basic weighted average shares outstanding during the period. Future Adoption of Accounting Pronouncements Reference Rate Reform. In March 2020, the FASB issued ASU No. 2020-04, Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“ASU 2020-04”). This guidance provides optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships, and other transactions that may be affected by the cessation of the London Inter-bank Offered Rate (“LIBOR.”) An entity may elect to apply the amendments for contract modifications as of any date from the beginning of an interim period that includes or is subsequent to March 12, 2020 through December 31, 2022. A substantial portion of our debt is subject to interest payments that are indexed to LIBOR; additionally, we are party to an interest rate derivative based on LIBOR. We are currently evaluating the effect of this guidance and have not applied the provisions of this guidance during the current fiscal year. The FASB issued other accounting guidance during the period that is not currently applicable or expected to have a material impact on the Company’s condensed consolidated financial statements, and therefore, is not described above.

Description of Business and B_3

Description of Business and Basis of Presentation (Tables)	3 Months Ended
	Apr. 03, 2021
Accounting Policies [Abstract]
Accounting Standards Update and Change in Accounting Principle	The following table summarizes the impact of adoption on the Company’s condensed consolidated statement of operations for the three months ended April 3, 2021: In thousands (except earnings per share) With ASU 2020-06 Adoption Without ASU 2020-06 Adoption Impact of Adoption Income from operations $ 61,448 $ 61,448 $ — Interest expense, net 6,330 10,136 (3,806) Earnings before income taxes 55,118 51,312 3,806 Income tax provision 11,686 10,866 820 Net income $ 43,432 $ 40,446 $ 2,986 Earnings per share: Basic $ 0.53 $ 0.50 $ 0.04 Diluted $ 0.48 $ 0.48 $ — Impact of adoption on basic earnings per share is calculated using impact on net income divided by basic weighted average shares outstanding during the period.

Details of Certain Balance Sh_2

Details of Certain Balance Sheet Accounts (Tables)	3 Months Ended
	Apr. 03, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Schedule of Accounts Receivable, Net	In thousands As of As of Accounts receivable, net: Trade receivables $ 30,885 $ 28,405 Credit card receivables 22,968 21,557 Other receivables 6,569 8,460 Allowance for credit losses (386) (433) $ 60,036 $ 57,989
Schedule of Inventories	In thousands As of As of Inventories: Raw materials and work in process (1) $ 56,081 $ 55,473 Finished goods 63,444 55,801 $ 119,525 $ 111,274 (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 Other Payables and Accrued Expenses	In thousands As of As of Other payables and accrued expenses: Associate compensation and benefits (1) $ 38,125 $ 51,081 Advertising 1,966 2,173 Self-insurance liabilities 8,979 8,650 Reserves for customer returns and remakes 9,786 8,084 Capital expenditures 9,247 8,455 Legacy management & services agreement 6,109 5,386 Fair value of derivative liabilities 4,086 5,116 Supplies and other store support expenses 2,170 3,461 Litigation settlements 1,114 1,107 Lease concessions 1,251 3,142 Other 15,963 13,654 $ 98,796 $ 110,309 (1) Includes the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act deferred employer payroll taxes in the amount of $0.0 million and $12.8 million as of April 3, 2021 and January 2, 2021, respectively.
Schedule of Other Non-current Liabilities	In thousands As of As of Other non-current liabilities: Fair value of derivative liabilities $ 4,790 $ 7,663 Self-insurance liabilities 7,279 7,046 Other 2,473 2,706 $ 14,542 $ 17,415

Long-term Debt (Tables)

Long-term Debt (Tables)	3 Months Ended
	Apr. 03, 2021
Debt Disclosure [Abstract]
Schedule of Long-term Debt	Long-term debt consists of the following: In thousands As of As of 2025 Notes, due May 15, 2025 $ 402,500 $ 402,500 Term loan, due July 18, 2024 317,375 317,375 Long-term debt before debt discount 719,875 719,875 Unamortized discount and issuance costs - 2025 Notes (9,688) (93,123) Unamortized discount and issuance costs - term loan (1,991) (2,141) Long-term debt less debt discount 708,196 624,611 Less current maturities — — Long-term debt - non-current portion 708,196 624,611 Finance lease obligations 29,700 30,750 Less current maturities (4,165) (3,598) Long-term debt and finance lease obligations, less current portion and debt discount $ 733,731 $ 651,763

Revenue From Contracts With C_2

Revenue From Contracts With Customers (Tables)	3 Months Ended
	Apr. 03, 2021
Revenue from Contract with Customer [Abstract]
Schedule of Disaggregation of Revenues	The following disaggregation of revenues depicts our revenue based on the timing of revenue recognition: Three Months Ended In thousands April 3, 2021 March 28, 2020 Revenues recognized at a point in time $ 493,438 $ 434,179 Revenues recognized over time 40,742 35,525 Total net revenue $ 534,180 $ 469,704

Leases (Tables)

Leases (Tables)	3 Months Ended
	Apr. 03, 2021
Leases [Abstract]
Schedule of Lease Cost	Three Months Ended In thousands April 3, 2021 March 28, 2020 Operating lease cost Fixed lease cost (a) $ 20,651 $ 19,312 Variable lease cost (b) 7,403 6,810 Sublease income (c) (910) (591) Finance lease cost Amortization of finance lease assets 1,123 1,156 Interest expense, net: Interest on finance lease liabilities 780 872 Net lease cost $ 29,047 $ 27,559 (a) Includes short-term leases, which are immaterial. (b) Includes costs for insurance, real estate taxes and common area maintenance expenses, which are variable, as are lease costs above minimum thresholds for Fred Meyer stores and lease costs for Military stores. (c) Income from sub-leasing of stores includes rental income from leasing space to ophthalmologists and optometrists who are independent contractors.
Schedule of Lease Terms and Discount Rate	Lease Term and Discount Rate As of As of Weighted average remaining lease term (months) Operating leases 78 77 Finance leases 78 79 Weighted average discount rate (a) Operating leases 4.8 % 4.7 % Finance leases (b) 12.2 % 12.3 % (a) The discount rate used to determine the lease assets and lease liabilities was derived upon considering (i) incremental borrowing rates on our term loan and revolving credit facility; (ii) fixed rates on interest rate swaps; (iii) LIBOR margins for issuers of similar credit rating; and (iv) effect of collateralization. As a majority of our leases are five (b) The discount rate on finance leases is higher than operating leases because the present value of minimum lease payments was higher than the fair value of leased properties for certain leases entered into prior to adoption of ASC 842. The discount rate differential for those leases is not material to our results of operations.
Schedule of Operating Lease Cash Flows	In thousands Three Months Ended April 3, 2021 Three Months Ended March 28, 2020 Other Information Operating cash outflows - operating leases $ 21,914 $ 15,269 Right of use assets acquired under finance leases $ — $ 1,244 Right of use assets acquired under operating leases $ 23,726 $ 17,658
Schedule of Maturity for Operating Lease Liabilities	The following table summarizes the maturity of our lease liabilities as of April 3, 2021: In thousands Operating Leases (a) Finance Leases (b) Fiscal Year 2021 $ 59,803 $ 5,447 2022 74,503 6,635 2023 73,434 6,252 2024 63,682 4,753 2025 58,538 4,913 Thereafter 124,480 11,420 Total lease liabilities 454,440 39,420 Less: Interest 64,877 9,720 Present value of lease liabilities (c) $ 389,563 $ 29,700 (a) Operating lease payments include $56.6 million related to options to extend lease terms that are reasonably certain of being exercised. (b) Finance lease payments include $1.7 million related to options to extend lease terms that are reasonably certain of being exercised. (c) The present value of lease liabilities excludes $24.3 million of legally binding minimum lease payments for leases signed but not yet commenced.
Schedule of Maturity for Finance Lease Liabilities	The following table summarizes the maturity of our lease liabilities as of April 3, 2021: In thousands Operating Leases (a) Finance Leases (b) Fiscal Year 2021 $ 59,803 $ 5,447 2022 74,503 6,635 2023 73,434 6,252 2024 63,682 4,753 2025 58,538 4,913 Thereafter 124,480 11,420 Total lease liabilities 454,440 39,420 Less: Interest 64,877 9,720 Present value of lease liabilities (c) $ 389,563 $ 29,700 (a) Operating lease payments include $56.6 million related to options to extend lease terms that are reasonably certain of being exercised. (b) Finance lease payments include $1.7 million related to options to extend lease terms that are reasonably certain of being exercised. (c) The present value of lease liabilities excludes $24.3 million of legally binding minimum lease payments for leases signed but not yet commenced.

Segment Reporting (Tables)

Segment Reporting (Tables)	3 Months Ended
	Apr. 03, 2021
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 and associated costs applicable to revenue, which are 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 Chief Operating Decision Maker (“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. Three Months Ended April 3, 2021 In thousands Owned & Host Legacy Corporate/Other Reconciliations Total Net product sales $ 369,370 $ 27,420 $ 61,218 $ (14,941) $ 443,067 Net sales of services and plans 83,077 16,162 — (8,126) 91,113 Total net revenue 452,447 43,582 61,218 (23,067) 534,180 Costs of products 97,104 12,859 53,026 (3,298) 159,691 Costs of services and plans 58,804 6,195 — — 64,999 Total costs applicable to revenue 155,908 19,054 53,026 (3,298) 224,690 SG&A 149,963 14,293 59,337 — 223,593 Asset impairment — — 959 — 959 Other expense (income), net — — (65) — (65) EBITDA $ 146,576 $ 10,235 $ (52,039) $ (19,769) Depreciation and amortization 23,555 Interest expense, net 6,330 Earnings before income taxes $ 55,118 Three Months Ended March 28, 2020 In thousands Owned & Host Legacy Corporate/Other Reconciliations Total Net product sales $ 281,914 $ 24,418 $ 66,571 $ 19,938 $ 392,841 Net sales of services and plans 65,313 12,039 — (489) 76,863 Total net revenue 347,227 36,457 66,571 19,449 469,704 Costs of products 81,917 11,404 57,907 5,142 156,370 Costs of services and plans 55,594 6,590 — — 62,184 Total costs applicable to revenue 137,511 17,994 57,907 5,142 218,554 SG&A 134,714 13,631 45,396 — 193,741 Asset impairment — — 11,355 — 11,355 Litigation settlement — — 4,395 — 4,395 Other expense (income), net — — (66) — (66) EBITDA $ 75,002 $ 4,832 $ (52,416) $ 14,307 Depreciation and amortization 24,810 Interest expense, net 7,455 Earnings before income taxes $ 9,460

Earnings Per Share (Tables)

Earnings Per Share (Tables)	3 Months Ended
	Apr. 03, 2021
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: Three Months Ended In thousands, except EPS April 3, 2021 March 28, 2020 Net income $ 43,432 $ 9,742 After-tax interest expense for 2025 Notes 2,332 — Numerator for diluted EPS $ 45,764 $ 9,742 Weighted average shares outstanding for basic EPS 81,333 80,129 Effect of dilutive securities: Stock options 1,397 2,020 Restricted stock 383 93 2025 Notes 12,912 — Weighted average shares outstanding for diluted EPS 96,025 82,242 Basic EPS $ 0.53 $ 0.12 Diluted EPS $ 0.48 $ 0.12 Anti-dilutive options and RSUs outstanding excluded from EPS 38 394

Restricted Cash (Tables)

Restricted Cash (Tables)	3 Months Ended
	Apr. 03, 2021
Cash and Cash Equivalents [Abstract]
Schedule of Cash, Cash Equivalents, and Restricted Cash	The following table provides a reconciliation of cash and cash equivalents reported within the condensed consolidated balance sheets to the total of cash, cash equivalents and restricted cash shown in the condensed consolidated statement of cash flows: Three Months Ended In thousands April 3, 2021 March 28, 2020 Cash and cash equivalents $ 453,792 $ 263,154 Restricted cash included in other assets 1,556 960 Total cash, cash equivalents and restricted cash $ 455,348 $ 264,114

Accumulated Other Comprehensi_2

Accumulated Other Comprehensive Loss (Tables)	3 Months Ended
	Apr. 03, 2021
Equity [Abstract]
Schedule of Accumulated Other Comprehensive Loss	The following table presents the changes in AOCL, net of tax during the three months ended April 3, 2021 and March 28, 2020, respectively: Three Months Ended In thousands April 3, 2021 March 28, 2020 Cash flow hedging activity: Balance at beginning of period $ (4,400) $ (3,814) Other comprehensive income (loss) before reclassification (10) (10,681) Tax effect of other comprehensive income (loss) before reclassification 3 2,721 Amount reclassified from AOCL into interest expense 1,660 1,823 Tax effect of amount reclassified from AOCL into interest expense (424) (465) Stranded tax effect of matured interest rate swaps (2,125) — Net current period other comprehensive income (loss), net of tax (896) (6,602) Balance at end of period $ (5,296) $ (10,416)

Description of Business and B_4

Description of Business and Basis of Presentation - Nature of Operations (Details)	Apr. 03, 2021storestore_brand	Jan. 02, 2021store
Accounting Policies [Abstract]
Number of retail optical locations | store	1,230	1,205
Number of store brands | store_brand	5

Description of Business and B_5

Description of Business and Basis of Presentation - Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended
	Apr. 03, 2021	Mar. 28, 2020
Accounting Policies [Abstract]
Effective income tax rate (percent)	25.50%	25.50%
Tax benefit related to stranded tax effect of interest rate swaps	$ 2.1
Tax benefit related to exercise of stock options		$ 2.7

Description of Business and B_6

Description of Business and Basis of Presentation - Adoption of New Accounting Pronouncements (Details) - USD ($) $ in Thousands	Apr. 03, 2021	Jan. 02, 2021	Mar. 28, 2020	Dec. 28, 2019
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Impact on equity	$ 887,532	$ 906,502	$ 786,160	$ 776,437
Retained Earnings
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Impact on equity	193,583	142,880	116,345	107,132
Additional Paid-In Capital
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Impact on equity	$ 728,339	795,697	$ 707,301	700,121
Cumulative effect of change in accounting principle
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Impact on equity		(64,114)		(529)
Cumulative effect of change in accounting principle | ASU 2020-06
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Decrease to deferred tax liability		18,800
Cumulative effect of change in accounting principle | ASU 2020-06 | 2025 Notes
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Increase liability component through unamortized discount		82,900
Cumulative effect of change in accounting principle | Retained Earnings
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Impact on equity		7,271		$ (529)
Cumulative effect of change in accounting principle | Retained Earnings | ASU 2020-06
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Impact on equity		7,300
Cumulative effect of change in accounting principle | Additional Paid-In Capital
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Impact on equity		(71,385)
Cumulative effect of change in accounting principle | Additional Paid-In Capital | ASU 2020-06
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Impact on equity		$ (71,400)

Description of Business and B_7

Description of Business and Basis of Presentation - Summary of Adoption on Statement of Operations (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Apr. 03, 2021	Mar. 28, 2020
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Income from operations	$ 61,448	$ 16,915
Interest expense, net	6,330	7,455
Earnings before income taxes	55,118	9,460
Income tax provision	11,686	(282)
Net income	$ 43,432	$ 9,742
Earnings per share:
Basic (in usd per share)	$ 0.53	$ 0.12
Diluted (in usd per share)	$ 0.48	$ 0.12
ASU 2020-06 | Without ASU 2020-06 Adoption
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Income from operations	$ 61,448
Interest expense, net	10,136
Earnings before income taxes	51,312
Income tax provision	10,866
Net income	$ 40,446
Earnings per share:
Basic (in usd per share)	$ 0.50
Diluted (in usd per share)	$ 0.48
ASU 2020-06 | Impact of Adoption
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Income from operations	$ 0
Interest expense, net	(3,806)
Earnings before income taxes	3,806
Income tax provision	820
Net income	$ 2,986
Earnings per share:
Basic (in usd per share)	$ 0.04
Diluted (in usd per share)	$ 0

Details of Certain Balance Sh_3

Details of Certain Balance Sheet Accounts - Accounts Receivable, Net (Details) - USD ($) $ in Thousands	Apr. 03, 2021	Jan. 02, 2021
Accounts receivable, net:
Allowance for credit losses	$ (386)	$ (433)
Accounts receivable, net of allowance	60,036	57,989
Trade receivables
Accounts receivable, net:
Accounts receivable, gross	30,885	28,405
Credit card receivables
Accounts receivable, net:
Accounts receivable, gross	22,968	21,557
Other receivables
Accounts receivable, net:
Accounts receivable, gross	$ 6,569	$ 8,460

Details of Certain Balance Sh_4

Details of Certain Balance Sheet Accounts - Inventories (Details) - USD ($) $ in Thousands	Apr. 03, 2021	Jan. 02, 2021
Inventories:
Raw materials and work in process	$ 56,081	$ 55,473
Finished goods	63,444	55,801
Inventories	$ 119,525	$ 111,274

Details of Certain Balance Sh_5

Details of Certain Balance Sheet Accounts - Other Payables and Accrued Expenses (Details) - USD ($) $ in Thousands	Apr. 03, 2021	Jan. 02, 2021
Other payables and accrued expenses:
Associate compensation and benefits (1)	$ 38,125	$ 51,081
Advertising	1,966	2,173
Self-insurance liabilities	8,979	8,650
Reserves for customer returns and remakes	9,786	8,084
Capital expenditures	9,247	8,455
Legacy management & services agreement	6,109	5,386
Fair value of derivative liabilities	4,086	5,116
Supplies and other store support expenses	2,170	3,461
Litigation settlements	1,114	1,107
Lease concessions	1,251	3,142
Other	15,963	13,654
Total other payables and accrued expenses	98,796	110,309
Deferred employer payroll taxes, CARES Act, included in associate compensation and benefits	$ 0	$ 12,800

Details of Certain Balance Sh_6

Details of Certain Balance Sheet Accounts - Other Non-Current Liabilities (Details) - USD ($) $ in Thousands	Apr. 03, 2021	Jan. 02, 2021
Other non-current liabilities:
Fair value of derivative liabilities	$ 4,790	$ 7,663
Self-insurance liabilities	7,279	7,046
Other	2,473	2,706
Total other non-current liabilities	$ 14,542	$ 17,415

Fair Value Measurement (Details

Fair Value Measurement (Details) - USD ($)	3 Months Ended
	Apr. 03, 2021	Jan. 02, 2021
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Impairments of long-lived tangible store assets and ROU assets	$ 1,000,000
Discount rate used in impairment analysis (percent)	7.50%
Estimated fair value of impaired assets	$ 2,000,000
Aggregate principal amount	719,875,000	$ 719,875,000
Convertible senior notes | 2025 Notes
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Aggregate principal amount	$ 402,500,000	402,500,000
Stated interest rate (percent)	2.50%
Estimated fair value | Level 2 | Convertible senior notes | 2025 Notes
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Estimated fair value of convertible notes	$ 644,300,000	$ 655,300,000

Long-term Debt - Summary of Lon

Long-term Debt - Summary of Long-term Debt (Details) - USD ($)	Apr. 03, 2021	Jan. 02, 2021
Debt Instrument [Line Items]
Long-term debt before debt discount	$ 719,875,000	$ 719,875,000
Long-term debt less debt discount	708,196,000	624,611,000
Less current maturities	0	0
Long-term debt - non-current portion	708,196,000	624,611,000
Finance lease obligations	29,700,000	30,750,000
Less current maturities	(4,165,000)	(3,598,000)
Long-term debt and finance lease obligations, less current portion and debt discount	733,731,000	651,763,000
2025 Notes | Convertible senior notes
Debt Instrument [Line Items]
Long-term debt before debt discount	402,500,000	402,500,000
Unamortized discount	(9,688,000)	(93,123,000)
Term loan, due July 18, 2024 | Term loan
Debt Instrument [Line Items]
Long-term debt before debt discount	317,375,000	317,375,000
Unamortized discount	$ (1,991,000)	$ (2,141,000)

Long-term Debt - Narrative (Det

Long-term Debt - Narrative (Details) - Convertible senior notes - 2025 Notes - USD ($) $ in Millions	Apr. 03, 2021	Apr. 03, 2021	Jan. 02, 2021
Debt Instrument [Line Items]
Effective interest rate (percent)	3.20%	3.20%	9.10%
Interest expense for the interest coupon		$ 2.5
Amortization of issuance costs		$ 0.5
Remaining period for amortization of debt issuance costs	4 years

Interest Rate Derivatives (Deta

Interest Rate Derivatives (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 03, 2021	Jan. 02, 2021
Derivative [Line Items]
Gain on change in fair value	$ 2,000
Interest expense on highly effective hedges	1,500
Estimated reclassification from AOCL to earnings in next 12 months	1,700
Interest rate swap and collar
Derivative [Line Items]
Fair value of derivative liabilities		$ 12,800
Interest rate collar
Derivative [Line Items]
Notional amount	375,000
Interest rate collar | Not designated as hedging instrument
Derivative [Line Items]
Fair value of derivative liabilities	$ 8,900
Interest rate swap | Designated as hedging instrument | Cash flow hedge
Derivative [Line Items]
Fair value of derivative liabilities		$ 1,500

Stock Incentive Plans (Details)

Stock Incentive Plans (Details)	3 Months Ended
	Apr. 03, 2021installmentshares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options granted (shares)	100,634
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of equal vesting installments | installment	3
PSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Awards granted (shares)	102,100
RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Awards granted (shares)	122,802
Number of equal vesting installments | installment	3
RSAs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Awards granted (shares)	2,112
Vesting period (in years)	1 year

Revenue From Contracts With C_3

Revenue From Contracts With Customers - Narrative (Details) - USD ($) $ in Millions	3 Months Ended
	Apr. 03, 2021	Mar. 28, 2020
Disaggregation of Revenue [Line Items]
Time frame for majority of payments on health care plans and programs accounts (in days)	90 days
Credit loss expense	$ 0.1	$ 0.4
Deferred revenue	87.9
Previously deferred revenue recognized	$ 20.2	$ 28
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
	Apr. 03, 2021	Mar. 28, 2020
Disaggregation of Revenue [Line Items]
Total net revenue	$ 534,180	$ 469,704
Revenues recognized at a point in time
Disaggregation of Revenue [Line Items]
Total net revenue	493,438	434,179
Revenues recognized over time
Disaggregation of Revenue [Line Items]
Total net revenue	$ 40,742	$ 35,525

Revenue From Contracts With C_5

Revenue From Contracts With Customers - Unsatisfied Performance Obligations (Details) $ in Millions	Apr. 03, 2021USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-04-04
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Performance obligations expected to be satisfied	$ 56.4
Performance obligations expected to be satisfied, expected timing	9 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-02
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Performance obligations expected to be satisfied	$ 22.5
Performance obligations expected to be satisfied, expected timing	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Performance obligations expected to be satisfied	$ 8.3
Performance obligations expected to be satisfied, expected timing	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-12-31
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Performance obligations expected to be satisfied	$ 0.6
Performance obligations expected to be satisfied, expected timing	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Performance obligations expected to be satisfied	$ 0.1
Performance obligations expected to be satisfied, expected timing	1 year

Leases - Lease Costs (Details)

Leases - Lease Costs (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 03, 2021	Mar. 28, 2020
Lease Cost
Operating lease cost	$ 20,651	$ 19,312
Variable lease cost	7,403	6,810
Sublease income	(910)	(591)
Amortization of finance lease assets	1,123	1,156
Interest on finance lease liabilities	780	872
Net lease cost	$ 29,047	$ 27,559

Leases - Lease Term and Discoun

Leases - Lease Term and Discount Rate (Details)	Apr. 03, 2021	Jan. 02, 2021
Lessee, Lease, Description [Line Items]
Operating leases, weighted average remaining lease term (months)	78 months	77 months
Finance leases, weighted average remaining lease term (months)	78 months	79 months
Operating leases, weighted average discount rate (percent)	4.80%	4.70%
Finance leases, weighted average discount rate (percent)	12.20%	12.30%
Minimum
Lessee, Lease, Description [Line Items]
Operating leases term (in years)	5 years
Finance leases term (in years)	5 years
Maximum
Lessee, Lease, Description [Line Items]
Operating leases term (in years)	10 years
Finance leases term (in years)	10 years

Leases - Other Information (Det

Leases - Other Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 03, 2021	Mar. 28, 2020
Leases [Abstract]
Operating cash outflows - operating leases	$ 21,914	$ 15,269
Right of use assets acquired under finance leases	0	1,244
Right of use assets acquired under operating leases	$ 23,726	$ 17,658

Leases - Maturity of Lease Liab

Leases - Maturity of Lease Liabilities (Details) - USD ($) $ in Thousands	Apr. 03, 2021	Jan. 02, 2021
Operating Leases
2021	$ 59,803
2022	74,503
2023	73,434
2024	63,682
2025	58,538
Thereafter	124,480
Total lease liabilities	454,440
Less: Interest	64,877
Present value of lease liabilities	389,563
Finance Leases
2021	5,447
2022	6,635
2023	6,252
2024	4,753
2025	4,913
Thereafter	11,420
Total lease liabilities	39,420
Less: Interest	9,720
Finance lease obligations	29,700	$ 30,750
Operating lease payments related to reasonably certain option extensions included in total lease payments	56,600
Finance lease payments related to reasonably certain option extensions included in total lease payments	1,700
Minimum lease payments for leases signed but not yet commenced excluded from lease liability	$ 24,300

Commitments and Contingencies (

Commitments and Contingencies (Details) - Fair Labor Standards Act $ in Thousands	1 Months Ended
	Nov. 30, 2019USD ($)plaintiff
Loss Contingencies [Line Items]
Number of former employees | plaintiff	6
Maximum
Loss Contingencies [Line Items]
Amount of litigation settlement | $	$ 895

Segment Reporting - Narrative (

Segment Reporting - Narrative (Details)	3 Months Ended
	Apr. 03, 2021segment
Segment Reporting [Abstract]
Number of reportable segments	2

Segment Reporting - Financial D

Segment Reporting - Financial Data by Segment (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 03, 2021	Mar. 28, 2020
Segment Reporting Information [Line Items]
Total net revenue	$ 534,180	$ 469,704
Total costs applicable to revenue	224,690	218,554
SG&A	223,593	193,741
Asset impairment	959	11,355
Litigation settlement	0	4,395
Other expense (income), net	(65)	(66)
Depreciation and amortization	23,555	24,810
Interest expense, net	6,330	7,455
Earnings before income taxes	55,118	9,460
Products
Segment Reporting Information [Line Items]
Total net revenue	443,067	392,841
Total costs applicable to revenue	159,691	156,370
Services and plans
Segment Reporting Information [Line Items]
Total net revenue	91,113	76,863
Total costs applicable to revenue	64,999	62,184
Operating Segments | Owned & Host
Segment Reporting Information [Line Items]
Total net revenue	452,447	347,227
Total costs applicable to revenue	155,908	137,511
SG&A	149,963	134,714
Asset impairment	0	0
Litigation settlement		0
Other expense (income), net	0	0
EBITDA	146,576	75,002
Operating Segments | Owned & Host | Products
Segment Reporting Information [Line Items]
Total net revenue	369,370	281,914
Total costs applicable to revenue	97,104	81,917
Operating Segments | Owned & Host | Services and plans
Segment Reporting Information [Line Items]
Total net revenue	83,077	65,313
Total costs applicable to revenue	58,804	55,594
Operating Segments | Legacy
Segment Reporting Information [Line Items]
Total net revenue	43,582	36,457
Total costs applicable to revenue	19,054	17,994
SG&A	14,293	13,631
Asset impairment	0	0
Litigation settlement		0
Other expense (income), net	0	0
EBITDA	10,235	4,832
Operating Segments | Legacy | Products
Segment Reporting Information [Line Items]
Total net revenue	27,420	24,418
Total costs applicable to revenue	12,859	11,404
Operating Segments | Legacy | Services and plans
Segment Reporting Information [Line Items]
Total net revenue	16,162	12,039
Total costs applicable to revenue	6,195	6,590
Operating Segments | Corporate/Other
Segment Reporting Information [Line Items]
Total net revenue	61,218	66,571
Total costs applicable to revenue	53,026	57,907
SG&A	59,337	45,396
Asset impairment	959	11,355
Litigation settlement		4,395
Other expense (income), net	(65)	(66)
EBITDA	(52,039)	(52,416)
Operating Segments | Corporate/Other | Products
Segment Reporting Information [Line Items]
Total net revenue	61,218	66,571
Total costs applicable to revenue	53,026	57,907
Operating Segments | Corporate/Other | Services and plans
Segment Reporting Information [Line Items]
Total net revenue	0	0
Total costs applicable to revenue	0	0
Reconciliations
Segment Reporting Information [Line Items]
Total net revenue	(23,067)	19,449
Total costs applicable to revenue	(3,298)	5,142
SG&A	0	0
Asset impairment	0	0
Litigation settlement		0
Other expense (income), net	0	0
EBITDA	(19,769)	14,307
Reconciliations | Products
Segment Reporting Information [Line Items]
Total net revenue	(14,941)	19,938
Total costs applicable to revenue	(3,298)	5,142
Reconciliations | Services and plans
Segment Reporting Information [Line Items]
Total net revenue	(8,126)	(489)
Total costs applicable to revenue	$ 0	$ 0

Earnings Per Share (Details)

Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Apr. 03, 2021	Mar. 28, 2020
Earnings Per Share [Abstract]
Net income	$ 43,432	$ 9,742
After-tax interest expense for 2025 Notes	2,332	0
Numerator for diluted EPS	$ 45,764	$ 9,742
Weighted average shares outstanding for basic EPS (shares)	81,333	80,129
Effect of dilutive securities:
Stock options	1,397	2,020
Restricted stock	383	93
2025 Notes	12,912	0
Weighted average shares outstanding for diluted EPS	96,025	82,242
Basic EPS (in usd per share)	$ 0.53	$ 0.12
Diluted EPS (in usd per share)	$ 0.48	$ 0.12
Options and RSUs
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive options, RSUs outstanding excluded from EPS (shares)	38	394

Restricted Cash (Details)

Restricted Cash (Details) - USD ($) $ in Thousands	Apr. 03, 2021	Jan. 02, 2021	Mar. 28, 2020	Dec. 28, 2019
Reconciliation of cash, cash equivalents, and restricted cash
Cash and cash equivalents	$ 453,792	$ 373,903	$ 263,154
Restricted cash included in other assets	1,556		960
Total cash, cash equivalents and restricted cash	$ 455,348	$ 375,159	$ 264,114	$ 40,307

Accumulated Other Comprehensi_3

Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 03, 2021	Mar. 28, 2020
Accumulated Other Comprehensive Loss, Net of Tax [Roll Forward]
Balance at beginning of period	$ 906,502	$ 776,437
Balance at end of period	887,532	786,160
Cash flow hedges
Accumulated Other Comprehensive Loss, Net of Tax [Roll Forward]
Balance at beginning of period	(4,400)	(3,814)
Other comprehensive income (loss) before reclassification	(10)	(10,681)
Tax effect of other comprehensive income (loss) before reclassification	3	2,721
Amount reclassified from AOCL into interest expense	1,660	1,823
Tax effect of amount reclassified from AOCL into interest expense	(424)	(465)
Stranded tax effect of matured interest rate swaps	(2,125)	0
Net current period other comprehensive income (loss), net of tax	(896)	(6,602)
Balance at end of period	$ (5,296)	$ (10,416)