National Vision (EYE) 10-Q10 Nov 212021 Q3 Quarterly reportFinancial data

Company Profile

Cover

Cover - shares	9 Months Ended
Cover - shares	Oct. 02, 2021	Oct. 29, 2021
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Oct. 2, 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		82,700,895
Entity Central Index Key	0001710155
Current Fiscal Year End Date	--01-01
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q3
Amendment Flag	false

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Oct. 02, 2021	Jan. 02, 2021
Current assets:
Cash and cash equivalents	$ 439,117	$ 373,903
Accounts receivable, net	54,080	57,989
Inventories	124,637	111,274
Prepaid expenses and other current assets	28,553	23,484
Total current assets	646,387	566,650
Property and equipment, net	333,820	341,293
Other assets:
Goodwill	777,613	777,613
Trademarks and trade names	240,547	240,547
Other intangible assets, net	43,893	49,511
Right of use assets	344,341	340,141
Other assets	18,870	17,743
Total non-current assets	1,759,084	1,766,848
Total assets	2,405,471	2,333,498
Current liabilities:
Accounts payable	76,124	64,861
Other payables and accrued expenses	98,749	110,309
Unearned revenue	35,328	32,657
Deferred revenue	68,763	58,899
Current maturities of long-term debt and finance lease obligations	4,418	3,598
Current operating lease obligations	65,454	58,356
Total current liabilities	348,836	328,680
Long-term debt and finance lease obligations, less current portion and debt discount	615,620	651,763
Non-current operating lease obligations	325,786	327,371
Other non-current liabilities:
Deferred revenue	23,992	20,828
Other liabilities	13,586	17,415
Deferred income taxes, net	89,094	80,939
Total other non-current liabilities	126,672	119,182
Commitments and contingencies (See Note 9)
Stockholders’ equity:
Common stock, $0.01 par value; 200,000 shares authorized; 83,667 and 82,183 shares issued as of October 2, 2021 and January 2, 2021, respectively; 82,693 and 81,239 shares outstanding as of October 2, 2021 and January 2, 2021, respectively	836	821
Additional paid-in capital	748,422	795,697
Accumulated other comprehensive loss	(2,840)	(4,400)
Retained earnings	272,176	142,880
Treasury stock, at cost; 974 and 944 shares as of October 2, 2021 and January 2, 2021, respectively	(30,037)	(28,496)
Total stockholders’ equity	988,557	906,502
Total liabilities and stockholders’ equity	$ 2,405,471	$ 2,333,498

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Oct. 02, 2021	Jan. 02, 2021
Statement of Financial Position [Abstract]
Common stock, par value (in usd per share)	$ 0.01	$ 0.01
Common stock, authorized (in shares)	200,000,000	200,000,000
Common stock, issued (in shares)	83,667,000	82,183,000
Common stock, outstanding (in shares)	82,693,000	81,239,000
Treasury stock (in shares)	974,000	944,000

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations and Comprehensive Income - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 02, 2021	Sep. 26, 2020	Oct. 02, 2021	Sep. 26, 2020
Revenue:
Total net revenue	$ 518,005	$ 485,353	$ 1,601,674	$ 1,215,064
Costs applicable to revenue (exclusive of depreciation and amortization):
Total costs applicable to revenue	226,458	210,809	687,094	570,143
Operating expenses:
Selling, general and administrative expenses	218,214	190,518	676,042	520,841
Depreciation and amortization	25,059	22,236	72,639	68,970
Asset impairment	0	7,150	1,478	20,916
Litigation settlement	0	0	0	4,395
Other expense (income), net	(2,437)	(154)	(2,567)	(312)
Total operating expenses	240,836	219,750	747,592	614,810
Income from operations	50,711	54,794	166,988	30,111
Interest expense, net	5,743	12,475	22,169	35,432
Debt issuance costs	0	0	92	136
Earnings (loss) before income taxes	44,968	42,319	144,727	(5,457)
Income tax provision (benefit)	3,976	7,030	22,702	(6,655)
Net income	$ 40,992	$ 35,289	$ 122,025	$ 1,198
Earnings per share:
Basic (in usd per share)	$ 0.50	$ 0.44	$ 1.49	$ 0.01
Diluted (in usd per share)	$ 0.45	$ 0.42	$ 1.34	$ 0.01
Weighted average shares outstanding:
Basic (in shares)	82,290	80,676	81,729	80,376
Diluted (in shares)	96,508	83,795	96,193	82,718
Comprehensive income (loss):
Net income	$ 40,992	$ 35,289	$ 122,025	$ 1,198
Unrealized gain (loss) on hedge instruments	340	1,894	4,949	(2,853)
Tax provision (benefit) of unrealized gain (loss) on hedge instruments	87	483	3,389	(723)
Comprehensive income (loss)	41,245	36,700	123,585	(932)
Net product sales
Revenue:
Total net revenue	425,594	403,336	1,326,867	1,005,884
Costs applicable to revenue (exclusive of depreciation and amortization):
Total costs applicable to revenue	158,371	148,274	485,090	402,279
Net sales of services and plans
Revenue:
Total net revenue	92,411	82,017	274,807	209,180
Costs applicable to revenue (exclusive of depreciation and amortization):
Total costs applicable to revenue	$ 68,087	$ 62,535	$ 202,004	$ 167,864

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 (in 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 (in shares)				602
Issuance of common stock	5,120			$ 6		5,114
Stock based compensation	2,066					2,066
Purchase of treasury stock (in 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 (in 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 (in 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]
Net income	1,198
Ending balance (in shares) at Sep. 26, 2020				80,989
Balance at end of period at Sep. 26, 2020	864,963			$ 818		790,188			(5,944)		107,801			(27,900)
Beginning balance (in shares) at Mar. 28, 2020				80,278
Balance at beginning of period at Mar. 28, 2020	786,160			$ 811		707,301			(10,416)		116,345			(27,881)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock (in shares)				137
Issuance of common stock	878			$ 1		877
Stock based compensation	3,324					3,324
Conversion option related to convertible senior notes, net of allocated costs and tax	71,349					71,349
Unrealized gain (loss) on hedge instruments, net of tax	3,061								3,061
Net income	(43,833)										(43,833)
Ending balance (in shares) at Jun. 27, 2020				80,415
Balance at end of period at Jun. 27, 2020	820,939			$ 812		782,851			(7,355)		72,512			(27,881)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock (in shares)				575
Issuance of common stock	4,480			$ 6		4,474
Stock based compensation	2,863					2,863
Purchase of treasury stock (in shares)				(1)
Purchase of treasury stock	(19)													(19)
Unrealized gain (loss) on hedge instruments, net of tax	1,411								1,411
Net income	35,289										35,289
Ending balance (in shares) at Sep. 26, 2020				80,989
Balance at end of period at Sep. 26, 2020	864,963			$ 818		790,188			(5,944)		107,801			(27,900)
Beginning balance (in 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 (in shares)				174
Issuance of common stock	1,058			$ 2		1,056
Stock based compensation	2,971					2,971
Purchase of treasury stock (in 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 (in 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)
Beginning balance (in 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]
Net income	122,025
Ending balance (in shares) at Oct. 02, 2021				82,693
Balance at end of period at Oct. 02, 2021	988,557			$ 836		748,422			(2,840)		272,176			(30,037)
Beginning balance (in shares) at Apr. 03, 2021				81,385
Balance at beginning of period at Apr. 03, 2021	887,532			$ 823		728,339			(5,296)		193,583			(29,917)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock (in shares)				471
Issuance of common stock	3,868			$ 5		3,863
Stock based compensation	7,178					7,178
Purchase of treasury stock (in shares)				(1)
Purchase of treasury stock	(45)													(45)
Unrealized gain (loss) on hedge instruments, net of tax	2,203								2,203
Net income	37,601										37,601
Ending balance (in shares) at Jul. 03, 2021				81,855
Balance at end of period at Jul. 03, 2021	938,337			$ 828		739,380			(3,093)		231,184			(29,962)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock (in shares)				839
Issuance of common stock	5,431			$ 8		5,423
Stock based compensation	3,619					3,619
Purchase of treasury stock (in shares)				(1)
Purchase of treasury stock	(75)													(75)
Unrealized gain (loss) on hedge instruments, net of tax	253								253
Net income	40,992										40,992
Ending balance (in shares) at Oct. 02, 2021				82,693
Balance at end of period at Oct. 02, 2021	$ 988,557			$ 836		$ 748,422			$ (2,840)		$ 272,176			$ (30,037)

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Oct. 02, 2021	Sep. 26, 2020
Cash flows from operating activities:
Net income	$ 122,025	$ 1,198
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	72,639	68,970
Amortization of debt discount and deferred financing costs	3,140	7,248
Asset impairment	1,478	20,916
Deferred income tax expense (benefit)	23,585	(6,735)
Stock based compensation expense	13,866	8,335
Losses (gains) on change in fair value of derivatives	(421)	4,596
Inventory adjustments	1,546	3,502
Other	(242)	4,238
Changes in operating assets and liabilities:
Accounts receivable	2,746	(5,685)
Inventories	(14,909)	12,354
Operating lease right of use assets and lease liabilities	(456)	(1,258)
Other assets	(6,813)	1,044
Accounts payable	11,263	27,847
Deferred and unearned revenue	15,699	16,940
Other liabilities	(11,339)	40,206
Net cash provided by operating activities	233,807	203,716
Cash flows from investing activities:
Purchase of property and equipment	(58,920)	(40,837)
Other	2,475	323
Net cash used for investing activities	(56,445)	(40,514)
Cash flows from financing activities:
Borrowings on long-term debt, net of discounts	0	548,769
Repayments on long-term debt	(117,375)	(369,269)
Proceeds from exercise of stock options	11,170	10,478
Purchase of treasury stock	(1,414)	(93)
Payments of debt issuance costs	(900)	(12,462)
Payments on finance lease obligations	(3,546)	(2,517)
Net cash provided by (used for) financing activities	(112,065)	174,906
Net change in cash, cash equivalents and restricted cash	65,297	338,108
Cash, cash equivalents and restricted cash, beginning of year	375,159	40,307
Cash, cash equivalents and restricted cash, end of period	440,456	378,415
Supplemental cash flow disclosure information:
Cash paid for interest	17,316	19,508
Cash paid (received) for taxes	9,293
Cash paid (received) for taxes		(693)
Capital expenditures accrued at the end of the period	$ 10,455	$ 13,516

Description of Business and Bas

Description of Business and Basis of Presentation	9 Months Ended
Description of Business and Basis of Presentation	Oct. 02, 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 1,262 and 1,205 retail optical locations in the United States and its territories as of October 2, 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 nine months ended October 2, 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 and nine month periods presented herein contain 13 and 39 weeks, respectively. All references to years and quarters relate to fiscal periods rather than calendar periods. Seasonality The consolidated results of operations for the three and nine months ended October 2, 2021 and September 26, 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 October 2, 2021 and September 26, 2020 reflected our statutory federal and state rate of 25.5%, offset by discrete benefits from stock option exercises of $9.1 million and $3.0 million, respectively. Our income tax provision (benefit) for the nine months ended October 2, 2021 and September 26, 2020 reflected our statutory federal and state rate of 25.5% offset by discrete benefits from stock option exercises of $13.6 million and $6.0 million, respectively, and a stranded tax effect of $2.1 million associated with our matured interest rate swaps during the nine months ended October 2, 2021. Sale of Equity Method Investee During t he third quarter of fiscal year 2021, the Company’s equity method investee was acquired by a third party and in connection therewith the Company sold all of its ownership interests and received $2.4 million upon the consummation of the sale. These proceeds were included in the investing section of the Condensed Consolidated Statements of Cash Flows for the nine months ended October 2, 2021. As a result of this transaction, and as the carrying value of the investment was zero, the Company recorded a gain on sale of equity method investment of $2.4 million in Other expense (income), net on the Condensed Consolidated Statements of Operations for the three and nine months ended October 2, 2021. In connection with the transaction, the Company is a party to an earnout agreement whereby we may be entitled to certain variable earnout payments based upon the achievement by the investee of certain performance metrics over a one year period. The Company will recognize income for payments received under the earnout once they are realized or realizable. 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 tables summarize the impact of adoption on the Company’s condensed consolidated statement of operations for the three and nine months ended October 2, 2021: Three Months Ended October 2, 2021 In thousands (except earnings per share) With ASU 2020-06 Adoption Without ASU 2020-06 Adoption Impact of Adoption Income from operations $ 50,711 $ 50,711 $ — Interest expense, net 5,743 9,829 (4,086) Earnings before income taxes 44,968 40,882 4,086 Income tax provision 3,976 3,046 930 Net income $ 40,992 $ 37,836 $ 3,156 Earnings per share: Basic $ 0.50 $ 0.46 $ 0.04 Diluted $ 0.45 $ 0.45 $ — 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. Nine Months Ended October 2, 2021 In thousands (except earnings per share) With ASU 2020-06 Adoption Without ASU 2020-06 Adoption Impact of Adoption Income from operations $ 166,988 $ 166,988 $ — Interest expense, net 22,169 34,005 (11,836) Debt issuance costs 92 92 — Earnings before income taxes 144,727 132,891 11,836 Income tax provision 22,702 20,056 2,646 Net income $ 122,025 $ 112,835 $ 9,190 Earnings per share: Basic $ 1.49 $ 1.38 $ 0.11 Diluted $ 1.34 $ 1.34 $ — 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 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	9 Months Ended
Details of Certain Balance Sheet Accounts	Oct. 02, 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 $ 29,356 $ 28,405 Credit card receivables 18,606 21,557 Other receivables 6,644 8,460 Allowance for credit losses (526) (433) $ 54,080 $ 57,989 In thousands As of As of Inventories: Raw materials and work in process (1) $ 65,094 $ 55,473 Finished goods 59,543 55,801 $ 124,637 $ 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) $ 39,466 $ 51,081 Advertising 3,219 2,173 Self-insurance liabilities 9,519 8,650 Reserves for customer returns and remakes 7,274 8,084 Capital expenditures 10,455 8,455 Legacy management & services agreement 5,649 5,386 Fair value of derivative liabilities 4,023 5,116 Supplies and other store support expenses 2,353 3,461 Litigation settlements 637 1,107 Lease concessions 491 3,142 Other 15,663 13,654 $ 98,749 $ 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 October 2, 2021 and January 2, 2021, respectively. In thousands As of As of Other non-current liabilities: Fair value of derivative liabilities $ 3,385 $ 7,663 Self-insurance liabilities 7,761 7,046 Other 2,440 2,706 $ 13,586 $ 17,415

Fair Value Measurement

Fair Value Measurement	9 Months Ended
Fair Value Measurement	Oct. 02, 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 no impairm ents during the three months ended October 2, 2021, and $1.5 million d uring the nine months ended October 2, 2021, respectively, related to our long-lived tangible store assets and RO U 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% . W e 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 nine months ended October 2, 2021 was $2.9 million; this value includes fair value estimates related to impairments recorded in the first and second quarters of 2021. 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 ha s $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 October 2, 2021. Refer to Note 4. “Long-term Debt” for more information on the 2025 Notes. The estimated fair value of the 2025 Notes was approxima tely $757.7 million a nd $655.3 million as of October 2, 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 October 2, 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	9 Months Ended
Long-term Debt	Oct. 02, 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 200,000 317,375 Long-term debt before debt discount 602,500 719,875 Unamortized discount and issuance costs - 2025 Notes (8,572) (93,123) Unamortized discount and issuance costs - term loan (1,402) (2,141) Long-term debt less debt discount 592,526 624,611 Less current maturities — — Long-term debt - non-current portion 592,526 624,611 Finance lease obligations 27,512 30,750 Less current maturities (4,418) (3,598) Long-term debt and finance lease obligations, less current portion and debt discount $ 615,620 $ 651,763 Credit Agreement During the second quarter of 2021, the Company voluntarily prepaid $117.4 million of term loan principal and wrote off associated deferred debt issuance costs of $0.7 million. The Company also amended its credit agreement to, among other things, add customary LIBOR replacement provisions, modify the applicable margins used to calculate the rate of interest payable on the first lien term loans thereunder to a range of 1.25% to 2.00% for LIBOR Loans and a range of 0.25% to 1.00% for ABR Loans, modify certain financial covenants related to maximum leverage and minimum interest coverage and remove the LIBOR floor, such that LIBOR shall be deemed to be no less than 0.00% per annum (instead of 1.00% per annum previously in effect). As a result of the principal prepayments made by the Company, we have no additional mandatory principal payments on the remaining term loan balance until maturity on July 18, 2024. Capitalized terms used but not defined herein shall have the meanings assigned to such terms in our credit agreement. Pursuant to our credit agreement, the Company will not permit (i) the Consolidated Total Debt to Consolidated EBITDA Ratio to be negative or greater than (x) 4.50 to 1.00 with respect to the last day of the Company’s second and third fiscal quarters of 2021 and (y) 4.25 to 1.00 from and after the last day of the Company’s fourth fiscal quarter of 2021, subject to certain step-ups after the consummation of a Material Acquisition, or (ii) the Consolidated Interest Coverage Ratio of the Company as of the last day of any fiscal quarter of the Company to be less than 3.00 to 1.00. We were in compliance with all covenants related to our long-term debt as of October 2, 2021. See Note 14. “Subsequent Events” for developments on our term loan occurring after the date of the financial statements. 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 re cognized $2.5 million and $0.6 million in interest expense for the interest coupon and amortization of issuance costs, respectively, during the three months ended October 2, 2021 and $7.5 million and $1.6 million, respectiv ely during the nine months ended October 2, 2021. As of October 2, 2021, the remaining period for the unamortized debt issuance costs balance was approximately four years. As of October 2, 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. The holders of our term loan would have preference over the holders of the 2025 Notes in the event of a liquidation.

Interest Rate Derivatives

Interest Rate Derivatives	9 Months Ended
Interest Rate Derivatives	Oct. 02, 2021
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Interest Rate Derivatives	Interest Rate Derivatives We 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 October 2, 2021. The fair value of our interest rate collar instrument was $7.4 million as of October 2, 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 (losses) on the change in fair value of the interest rate collar of approximately $(0.2) million and $1.3 million were recorded in interest expense, net during the three and nine months ended October 2, 2021, respectively. Interest expense, net related to our interest rate derivatives considered to be highly effective hedges for the nine months ended October 2, 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 nine months ended October 2, 2021 and September 26, 2020 related to derivatives not qualifying as hedges were included in the operating section of the Condensed Consolidated Statements of Cash Flows and were immaterial. During the second quarter of 2021, as a result of the partial repayment of the Company’s LIBOR based term-loan debt balances, certain forecasted hedged transactions were deemed not probable of occurring. The Company subsequently reclassified unrealized losses of $2.5 million from AOCL to interest expense on $115.0 million of interest rate collar notional, during the nine months ended October 2, 2021. As of October 2, 2021, the Company expects to reclassify approximately $0.9 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. During the second quarter of 2020, as a result of the partial repayment of the Company’s LIBOR based debt balances, certain forecasted hedged transactions were deemed not probable of occurring. The Company subsequently discontinued hedge accounting on $78.0 million of interest rate swap notional and $58.0 million of interest rate collar notional, reclassifying net unrealized losses of approximately $2.5 million from AOCL to interest expense, net during the nine months ended September 26, 2020. Additionally, due to changes in the interest rates applicable to the Company’s term loan and revolver, the interest rate collar ceased to be a highly effective hedge. Losses on the change in fair value of the interest rate collar of approximately $2.6 million were recorded in interest expense, net during the nine months ended September 26, 2020. Interest expense, net related to derivatives considered to be highly effective hedges for the three and nine months ended September 26, 2020 was $2.0 million and $5.9 million, respectively.

Stock Incentive Plans

Stock Incentive Plans	9 Months Ended
Stock Incentive Plans	Oct. 02, 2021
Share-based Payment Arrangement [Abstract]
Stock Incentive Plans	Stock Incentive Plans During the nine months ended October 2, 2021, the Company granted 110,531 stock options, 111,601 performance-based restricted stock units (“PSUs”) and 132,327 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 nine months ended October 2, 2021, the Company granted 16,539 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	9 Months Ended
Revenue From Contracts With Customers	Oct. 02, 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 (i.e. warranties), 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 Nine Months Ended In thousands October 2, 2021 September 26, 2020 October 2, 2021 September 26, 2020 Revenues recognized at a point in time $ 473,449 $ 447,403 $ 1,471,856 $ 1,111,118 Revenues recognized over time 44,556 37,950 129,818 103,946 Total net revenue $ 518,005 $ 485,353 $ 1,601,674 $ 1,215,064 Refer to Note 10. “Segment Reporting” for the Company’s disaggregation of net revenue by reportable segment. 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. We record reductions in revenue for estimated price concessions granted to managed care providers. The Company considers its revenue from managed care customers to include variable consideration and estimates such amounts associated with managed care customer revenues using the history of concessions provided and cash receipts from managed care providers; we reduced our net revenue for variable considerations of $2.4 million and $1.8 million during the three months ended October 2, 2021 and September 26, 2020, respectively, and $7.0 million and $5.9 million during the nine months ended October 2, 2021 and September 26, 2020, respectively. 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, was $0.3 million for the three months ended October 2, 2021 and $0.6 million for the nine months ended October 2, 2021 as compared to $0.1 million and $0.5 million for the three and nine months ended September 26, 2020, respectively. Unsatisfied Performance Obligations (Contract Liabilities) We recognized $24.6 million and $50.4 million of deferred revenues outstanding at the beginning of each respective period during the three and nine months ended October 2, 2021, respectively, and $9.2 million and $46.5 million of revenues from sale of club memberships and product protection plans during the three and nine months ended October 2, 2021, respectively. We recognized $18.6 million and $48.1 million of deferred revenues outstanding at the beginning of each respective period during the three and nine months ended September 26, 2020, respectively, and $9.3 million and $31.9 million of revenues from sale of club memberships and product protection plans during the three and nine months ended September 26, 2020, respectively.

Leases

Leases	9 Months Ended
Leases	Oct. 02, 2021
Leases [Abstract]
Leases	Leases Our lease costs for the three months ended October 2, 2021 and September 26, 2020 were as follows: Three Months Ended Nine Months Ended In thousands October 2, 2021 September 26, 2020 October 2, 2021 September 26, 2020 Operating lease cost Fixed lease cost (a) $ 21,035 $ 19,473 $ 62,589 $ 57,885 Variable lease cost (b) 7,976 7,203 22,894 20,369 Sublease income (c) (866) (896) (2,695) (1,778) Finance lease cost Amortization of finance lease assets 1,113 1,143 3,349 3,424 Interest expense, net: Interest on finance lease liabilities 716 826 2,239 2,550 Net lease cost $ 29,974 $ 27,749 $ 88,376 $ 82,450 (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 77 77 Finance leases 74 79 Weighted average discount rate (a) Operating leases 4.7 % 4.7 % Finance leases (b) 11.9 % 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 Nine Months Ended Other Information October 2, 2021 September 26, 2020 Operating cash outflows - operating leases $ 66,358 $ 53,816 Right of use assets acquired under finance leases $ — $ 1,257 Right of use assets acquired under operating leases $ 64,260 $ 45,154 The following table summarizes the maturity of our lease liabilities as of October 2, 2021: In thousands Operating Leases (a) Finance Leases (b) Fiscal Year 2021 $ 16,190 $ 1,820 2022 80,102 6,635 2023 79,713 6,252 2024 68,844 4,753 2025 63,581 4,913 Thereafter 146,019 11,399 Total lease liabilities 454,449 35,772 Less: Interest 63,209 8,260 Present value of lease liabilities (c) $ 391,240 $ 27,512 (a) Operating lease payments include $50.1 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 $30.2 million of legally binding minimum lease payments for leases signed but not yet commenced.
Leases	Leases Our lease costs for the three months ended October 2, 2021 and September 26, 2020 were as follows: Three Months Ended Nine Months Ended In thousands October 2, 2021 September 26, 2020 October 2, 2021 September 26, 2020 Operating lease cost Fixed lease cost (a) $ 21,035 $ 19,473 $ 62,589 $ 57,885 Variable lease cost (b) 7,976 7,203 22,894 20,369 Sublease income (c) (866) (896) (2,695) (1,778) Finance lease cost Amortization of finance lease assets 1,113 1,143 3,349 3,424 Interest expense, net: Interest on finance lease liabilities 716 826 2,239 2,550 Net lease cost $ 29,974 $ 27,749 $ 88,376 $ 82,450 (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 77 77 Finance leases 74 79 Weighted average discount rate (a) Operating leases 4.7 % 4.7 % Finance leases (b) 11.9 % 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 Nine Months Ended Other Information October 2, 2021 September 26, 2020 Operating cash outflows - operating leases $ 66,358 $ 53,816 Right of use assets acquired under finance leases $ — $ 1,257 Right of use assets acquired under operating leases $ 64,260 $ 45,154 The following table summarizes the maturity of our lease liabilities as of October 2, 2021: In thousands Operating Leases (a) Finance Leases (b) Fiscal Year 2021 $ 16,190 $ 1,820 2022 80,102 6,635 2023 79,713 6,252 2024 68,844 4,753 2025 63,581 4,913 Thereafter 146,019 11,399 Total lease liabilities 454,449 35,772 Less: Interest 63,209 8,260 Present value of lease liabilities (c) $ 391,240 $ 27,512 (a) Operating lease payments include $50.1 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 $30.2 million of legally binding minimum lease payments for leases signed but not yet commenced.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
Commitments and Contingencies	Oct. 02, 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. The parties participated in mediation on July 6, 2021 and, in order to avoid the burden and expense of litigation, agreed to a settlement of all claims alleged by the named plaintiffs for an immaterial amount. On September 3, 2021, FirstSight paid the settlement amount and on September 8, 2021, the court entered an order dismissing the action with prejudice as to the named plaintiffs and without prejudice as to the putative class. 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 and expense 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 final approval of the settlement and dismissing the action was issued by the arbitrator on July 13, 2021. The Company paid the settlement amount on August 12, 2021. Eyeglass World, LLC, which was acquired by the Company in 2009, is a defendant in a state court action filed on July 24, 2017 by a former sublease holder in Albuquerque, New Mexico. The lawsuit seeks monetary damages for claims of conversion, misappropriation of trade secrets, misrepresentation, and tortious interference with existing and prospective contractual relationships arising from the Company’s alleged unauthorized use of confidential information. The parties have engaged in extensive discovery and pre-trial dispositive motions are currently pending on several material issues of liability and damages. We believe the claims are without merit and intend to continue to defend the litigation vigorously. The Company does not believe a reasonable estimate of the range of possible losses is currently possible in view of the uncertainty regarding the amount of damages, if any, that could be awarded in this matter.

Segment Reporting

Segment Reporting	9 Months Ended
Segment Reporting	Oct. 02, 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. Changes in unearned revenue and deferred revenue recognized in the Reconciliations category reflect the effects of our stores being temporarily closed to the public for a portion of 2020. 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 October 2, 2021 In thousands Owned & Host Legacy Corporate/Other Reconciliations Total Net product services $ 338,931 $ 24,934 $ 58,063 $ 3,666 $ 425,594 Net sales of services and plans 77,171 15,908 — (668) 92,411 Total net revenue 416,102 40,842 58,063 2,998 518,005 Cost of products 95,004 12,012 50,477 878 158,371 Cost of services and plans 61,695 6,392 — — 68,087 Total costs applicable to revenue 156,699 18,404 50,477 878 226,458 SG&A 156,814 14,363 47,037 — 218,214 Other expense (income), net — — (2,437) — (2,437) EBITDA $ 102,589 $ 8,075 $ (37,014) $ 2,120 Depreciation and amortization 25,059 Interest expense, net 5,743 Earnings before income taxes $ 44,968 Three Months Ended September 26, 2020 In thousands Owned & Host Legacy Corporate/Other Reconciliations Total Net product sales $ 323,159 $ 24,900 $ 57,906 $ (2,629) $ 403,336 Net sales of services and plans 73,241 15,332 — (6,556) 82,017 Total net revenue 396,400 40,232 57,906 (9,185) 485,353 Cost of products 86,945 11,676 50,154 (501) 148,274 Cost of services and plans 55,680 6,108 747 — 62,535 Total costs applicable to revenue 142,625 17,784 50,901 (501) 210,809 SG&A 128,206 13,068 49,244 — 190,518 Asset impairment — — 7,150 — 7,150 Other expense (income), net — — (154) — (154) EBITDA $ 125,569 $ 9,380 $ (49,235) $ (8,684) Depreciation and amortization 22,236 Interest expense, net 12,475 Earnings before income taxes $ 42,319 Nine Months Ended October 2, 2021 In thousands Owned & Host Legacy Corporate/Other Reconciliations Total Net product sales $ 1,069,678 $ 79,209 $ 180,801 $ (2,821) $ 1,326,867 Net sales of services and plans 239,028 48,815 — (13,036) 274,807 Total net revenue 1,308,706 128,024 180,801 (15,857) 1,601,674 Costs of products 290,647 37,781 157,186 (524) 485,090 Costs of services and plans 182,947 19,057 — — 202,004 Total costs applicable to revenue 473,594 56,838 157,186 (524) 687,094 SG&A 465,690 43,458 166,894 — 676,042 Asset impairment — — 1,478 — 1,478 Other expense (income), net — — (2,567) — (2,567) Debt issuance costs — — 92 — 92 EBITDA $ 369,422 $ 27,728 $ (142,282) $ (15,333) Depreciation and amortization 72,639 Interest expense, net 22,169 Earnings before income taxes $ 144,727 Nine Months Ended September 26, 2020 In thousands Owned & Host Legacy Corporate/Other Reconciliations Total Net product sales $ 782,502 $ 65,572 $ 174,950 $ (17,140) $ 1,005,884 Net sales of services and plans 172,829 36,530 — (179) 209,180 Total net revenue 955,331 102,102 174,950 (17,319) 1,215,064 Costs of products 223,759 32,173 150,198 (3,851) 402,279 Costs of services and plans 149,847 17,270 747 — 167,864 Total costs applicable to revenue 373,606 49,443 150,945 (3,851) 570,143 SG&A 349,624 37,260 133,957 — 520,841 Asset impairment — — 20,916 — 20,916 Litigation settlement — — 4,395 — 4,395 Other expense (income), net — — (312) — (312) Debt issuance costs — — 136 — 136 EBITDA $ 232,101 $ 15,399 $ (135,087) $ (13,468) Depreciation and amortization 68,970 Interest expense, net 35,432 Earnings (loss) before income taxes $ (5,457)

Earnings Per Share

Earnings Per Share	9 Months Ended
Earnings Per Share	Oct. 02, 2021
Earnings Per Share [Abstract]
Earnings Per Share	Earnings Per ShareDiluted EPS related to the 2025 Notes in the current year is calculated using the if-converted method; the number of dilutive shares is based on the initial conversion rate associated with the 2025 Notes. Prior to the fourth quarter of the fiscal year 2020, we intended to settle the principal amount of the outstanding 2025 Notes in cash and, therefore, used the treasury stock method for calculating the potential effect of dilutive securities related to the 2025 Notes, if applicable. A reconciliation of the numerators and denominators of the basic and diluted EPS calculations is as follows: Three Months Ended Nine Months Ended In thousands, except EPS October 2, 2021 September 26, 2020 October 2, 2021 September 26, 2020 Net income $ 40,992 $ 35,289 $ 122,025 $ 1,198 After-tax interest expense for 2025 Notes 2,393 — 7,087 — Numerator for diluted EPS $ 43,385 $ 35,289 $ 129,112 $ 1,198 Weighted average shares outstanding for basic EPS 82,290 80,676 81,729 80,376 Effect of dilutive securities: Stock options 709 1,694 1,107 1,818 Restricted stock 597 195 445 114 2025 Notes 12,912 1,230 12,912 410 Weighted average shares outstanding for diluted EPS 96,508 83,795 96,193 82,718 Basic EPS $ 0.50 $ 0.44 $ 1.49 $ 0.01 Diluted EPS $ 0.45 $ 0.42 $ 1.34 $ 0.01 Anti-dilutive options and RSUs outstanding excluded from EPS 111 426 87 516

Restricted Cash

Restricted Cash	9 Months Ended
Restricted Cash	Oct. 02, 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: Nine Months Ended In thousands October 2, 2021 September 26, 2020 Cash and cash equivalents $ 439,117 $ 377,007 Restricted cash included in other assets 1,339 1,408 Total cash, cash equivalents and restricted cash $ 440,456 $ 378,415

Accumulated Other Comprehensive

Accumulated Other Comprehensive Loss	9 Months Ended
Accumulated Other Comprehensive Loss	Oct. 02, 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 and nine months ended October 2, 2021 and September 26, 2020, respectively: Three Months Ended Nine Months Ended In thousands October 2, 2021 September 26, 2020 October 2, 2021 September 26, 2020 Cash flow hedging activity: Balance at beginning of period $ (3,093) $ (7,355) $ (4,400) $ (3,814) Other comprehensive income (loss) before reclassification — (47) (10) (11,088) Tax effect of other comprehensive income (loss) before reclassification — 12 3 2,825 Amount reclassified from AOCL into interest expense 340 1,941 4,959 8,235 Tax effect of amount reclassified from AOCL into interest expense (87) (495) (1,267) (2,102) Stranded tax effect of matured interest rate swaps — — (2,125) — Net current period other comprehensive income (loss), net of tax 253 1,411 1,560 (2,130) Balance at end of period $ (2,840) $ (5,944) $ (2,840) $ (5,944) See Note 5. “Interest Rate Derivatives” for a description of the Company’s use of cash flow hedging derivatives.

Subsequent Events

Subsequent Events	9 Months Ended
Subsequent Events	Oct. 02, 2021
Subsequent Events [Abstract]
Subsequent Events	Subsequent EventsOn November 9, 2021, subsequent to the date of the financial statements, the Company voluntarily prepaid $50 million in existing Term A loans under its credit agreement; as a result, the remaining principal balance of the Company’s term loan is now $150 million.

Description of Business and B_2

Description of Business and Basis of Presentation (Policies)	9 Months Ended
	Oct. 02, 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 nine months ended October 2, 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 and nine month periods presented herein contain 13 and 39 weeks, respectively. 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 October 2, 2021 and September 26, 2020 reflected our statutory federal and state rate of 25.5%, offset by discrete benefits from stock option exercises of $9.1 million and $3.0 million, respectively. Our income tax provision (benefit) for the nine months ended October 2, 2021 and September 26, 2020 reflected our statutory federal and state rate of 25.5% offset by discrete benefits from stock option exercises of $13.6 million and $6.0 million, respectively, and a stranded tax effect of $2.1 million associated with our matured interest rate swaps during the nine months ended October 2, 2021.
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 tables summarize the impact of adoption on the Company’s condensed consolidated statement of operations for the three and nine months ended October 2, 2021: Three Months Ended October 2, 2021 In thousands (except earnings per share) With ASU 2020-06 Adoption Without ASU 2020-06 Adoption Impact of Adoption Income from operations $ 50,711 $ 50,711 $ — Interest expense, net 5,743 9,829 (4,086) Earnings before income taxes 44,968 40,882 4,086 Income tax provision 3,976 3,046 930 Net income $ 40,992 $ 37,836 $ 3,156 Earnings per share: Basic $ 0.50 $ 0.46 $ 0.04 Diluted $ 0.45 $ 0.45 $ — 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. Nine Months Ended October 2, 2021 In thousands (except earnings per share) With ASU 2020-06 Adoption Without ASU 2020-06 Adoption Impact of Adoption Income from operations $ 166,988 $ 166,988 $ — Interest expense, net 22,169 34,005 (11,836) Debt issuance costs 92 92 — Earnings before income taxes 144,727 132,891 11,836 Income tax provision 22,702 20,056 2,646 Net income $ 122,025 $ 112,835 $ 9,190 Earnings per share: Basic $ 1.49 $ 1.38 $ 0.11 Diluted $ 1.34 $ 1.34 $ — 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 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)	9 Months Ended
Description of Business and Basis of Presentation (Tables)	Oct. 02, 2021
Accounting Policies [Abstract]
Accounting Standards Update and Change in Accounting Principle	The following tables summarize the impact of adoption on the Company’s condensed consolidated statement of operations for the three and nine months ended October 2, 2021: Three Months Ended October 2, 2021 In thousands (except earnings per share) With ASU 2020-06 Adoption Without ASU 2020-06 Adoption Impact of Adoption Income from operations $ 50,711 $ 50,711 $ — Interest expense, net 5,743 9,829 (4,086) Earnings before income taxes 44,968 40,882 4,086 Income tax provision 3,976 3,046 930 Net income $ 40,992 $ 37,836 $ 3,156 Earnings per share: Basic $ 0.50 $ 0.46 $ 0.04 Diluted $ 0.45 $ 0.45 $ — 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. Nine Months Ended October 2, 2021 In thousands (except earnings per share) With ASU 2020-06 Adoption Without ASU 2020-06 Adoption Impact of Adoption Income from operations $ 166,988 $ 166,988 $ — Interest expense, net 22,169 34,005 (11,836) Debt issuance costs 92 92 — Earnings before income taxes 144,727 132,891 11,836 Income tax provision 22,702 20,056 2,646 Net income $ 122,025 $ 112,835 $ 9,190 Earnings per share: Basic $ 1.49 $ 1.38 $ 0.11 Diluted $ 1.34 $ 1.34 $ — 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)	9 Months Ended
Details of Certain Balance Sheet Accounts (Tables)	Oct. 02, 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 $ 29,356 $ 28,405 Credit card receivables 18,606 21,557 Other receivables 6,644 8,460 Allowance for credit losses (526) (433) $ 54,080 $ 57,989
Schedule of Inventories	In thousands As of As of Inventories: Raw materials and work in process (1) $ 65,094 $ 55,473 Finished goods 59,543 55,801 $ 124,637 $ 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) $ 39,466 $ 51,081 Advertising 3,219 2,173 Self-insurance liabilities 9,519 8,650 Reserves for customer returns and remakes 7,274 8,084 Capital expenditures 10,455 8,455 Legacy management & services agreement 5,649 5,386 Fair value of derivative liabilities 4,023 5,116 Supplies and other store support expenses 2,353 3,461 Litigation settlements 637 1,107 Lease concessions 491 3,142 Other 15,663 13,654 $ 98,749 $ 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 October 2, 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 $ 3,385 $ 7,663 Self-insurance liabilities 7,761 7,046 Other 2,440 2,706 $ 13,586 $ 17,415

Long-term Debt (Tables)

Long-term Debt (Tables)	9 Months Ended
Long-term Debt (Tables)	Oct. 02, 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 200,000 317,375 Long-term debt before debt discount 602,500 719,875 Unamortized discount and issuance costs - 2025 Notes (8,572) (93,123) Unamortized discount and issuance costs - term loan (1,402) (2,141) Long-term debt less debt discount 592,526 624,611 Less current maturities — — Long-term debt - non-current portion 592,526 624,611 Finance lease obligations 27,512 30,750 Less current maturities (4,418) (3,598) Long-term debt and finance lease obligations, less current portion and debt discount $ 615,620 $ 651,763

Revenue From Contracts With C_2

Revenue From Contracts With Customers (Tables)	9 Months Ended
Revenue From Contracts With Customers (Tables)	Oct. 02, 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 Nine Months Ended In thousands October 2, 2021 September 26, 2020 October 2, 2021 September 26, 2020 Revenues recognized at a point in time $ 473,449 $ 447,403 $ 1,471,856 $ 1,111,118 Revenues recognized over time 44,556 37,950 129,818 103,946 Total net revenue $ 518,005 $ 485,353 $ 1,601,674 $ 1,215,064

Leases (Tables)

Leases (Tables)	9 Months Ended
Leases (Tables)	Oct. 02, 2021
Leases [Abstract]
Schedule of Lease Cost	Three Months Ended Nine Months Ended In thousands October 2, 2021 September 26, 2020 October 2, 2021 September 26, 2020 Operating lease cost Fixed lease cost (a) $ 21,035 $ 19,473 $ 62,589 $ 57,885 Variable lease cost (b) 7,976 7,203 22,894 20,369 Sublease income (c) (866) (896) (2,695) (1,778) Finance lease cost Amortization of finance lease assets 1,113 1,143 3,349 3,424 Interest expense, net: Interest on finance lease liabilities 716 826 2,239 2,550 Net lease cost $ 29,974 $ 27,749 $ 88,376 $ 82,450 (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 77 77 Finance leases 74 79 Weighted average discount rate (a) Operating leases 4.7 % 4.7 % Finance leases (b) 11.9 % 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 Nine Months Ended Other Information October 2, 2021 September 26, 2020 Operating cash outflows - operating leases $ 66,358 $ 53,816 Right of use assets acquired under finance leases $ — $ 1,257 Right of use assets acquired under operating leases $ 64,260 $ 45,154
Schedule of Maturity for Operating Lease Liabilities	The following table summarizes the maturity of our lease liabilities as of October 2, 2021: In thousands Operating Leases (a) Finance Leases (b) Fiscal Year 2021 $ 16,190 $ 1,820 2022 80,102 6,635 2023 79,713 6,252 2024 68,844 4,753 2025 63,581 4,913 Thereafter 146,019 11,399 Total lease liabilities 454,449 35,772 Less: Interest 63,209 8,260 Present value of lease liabilities (c) $ 391,240 $ 27,512 (a) Operating lease payments include $50.1 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 $30.2 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 October 2, 2021: In thousands Operating Leases (a) Finance Leases (b) Fiscal Year 2021 $ 16,190 $ 1,820 2022 80,102 6,635 2023 79,713 6,252 2024 68,844 4,753 2025 63,581 4,913 Thereafter 146,019 11,399 Total lease liabilities 454,449 35,772 Less: Interest 63,209 8,260 Present value of lease liabilities (c) $ 391,240 $ 27,512 (a) Operating lease payments include $50.1 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 $30.2 million of legally binding minimum lease payments for leases signed but not yet commenced.

Segment Reporting (Tables)

Segment Reporting (Tables)	9 Months Ended
Segment Reporting (Tables)	Oct. 02, 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 October 2, 2021 In thousands Owned & Host Legacy Corporate/Other Reconciliations Total Net product services $ 338,931 $ 24,934 $ 58,063 $ 3,666 $ 425,594 Net sales of services and plans 77,171 15,908 — (668) 92,411 Total net revenue 416,102 40,842 58,063 2,998 518,005 Cost of products 95,004 12,012 50,477 878 158,371 Cost of services and plans 61,695 6,392 — — 68,087 Total costs applicable to revenue 156,699 18,404 50,477 878 226,458 SG&A 156,814 14,363 47,037 — 218,214 Other expense (income), net — — (2,437) — (2,437) EBITDA $ 102,589 $ 8,075 $ (37,014) $ 2,120 Depreciation and amortization 25,059 Interest expense, net 5,743 Earnings before income taxes $ 44,968 Three Months Ended September 26, 2020 In thousands Owned & Host Legacy Corporate/Other Reconciliations Total Net product sales $ 323,159 $ 24,900 $ 57,906 $ (2,629) $ 403,336 Net sales of services and plans 73,241 15,332 — (6,556) 82,017 Total net revenue 396,400 40,232 57,906 (9,185) 485,353 Cost of products 86,945 11,676 50,154 (501) 148,274 Cost of services and plans 55,680 6,108 747 — 62,535 Total costs applicable to revenue 142,625 17,784 50,901 (501) 210,809 SG&A 128,206 13,068 49,244 — 190,518 Asset impairment — — 7,150 — 7,150 Other expense (income), net — — (154) — (154) EBITDA $ 125,569 $ 9,380 $ (49,235) $ (8,684) Depreciation and amortization 22,236 Interest expense, net 12,475 Earnings before income taxes $ 42,319 Nine Months Ended October 2, 2021 In thousands Owned & Host Legacy Corporate/Other Reconciliations Total Net product sales $ 1,069,678 $ 79,209 $ 180,801 $ (2,821) $ 1,326,867 Net sales of services and plans 239,028 48,815 — (13,036) 274,807 Total net revenue 1,308,706 128,024 180,801 (15,857) 1,601,674 Costs of products 290,647 37,781 157,186 (524) 485,090 Costs of services and plans 182,947 19,057 — — 202,004 Total costs applicable to revenue 473,594 56,838 157,186 (524) 687,094 SG&A 465,690 43,458 166,894 — 676,042 Asset impairment — — 1,478 — 1,478 Other expense (income), net — — (2,567) — (2,567) Debt issuance costs — — 92 — 92 EBITDA $ 369,422 $ 27,728 $ (142,282) $ (15,333) Depreciation and amortization 72,639 Interest expense, net 22,169 Earnings before income taxes $ 144,727 Nine Months Ended September 26, 2020 In thousands Owned & Host Legacy Corporate/Other Reconciliations Total Net product sales $ 782,502 $ 65,572 $ 174,950 $ (17,140) $ 1,005,884 Net sales of services and plans 172,829 36,530 — (179) 209,180 Total net revenue 955,331 102,102 174,950 (17,319) 1,215,064 Costs of products 223,759 32,173 150,198 (3,851) 402,279 Costs of services and plans 149,847 17,270 747 — 167,864 Total costs applicable to revenue 373,606 49,443 150,945 (3,851) 570,143 SG&A 349,624 37,260 133,957 — 520,841 Asset impairment — — 20,916 — 20,916 Litigation settlement — — 4,395 — 4,395 Other expense (income), net — — (312) — (312) Debt issuance costs — — 136 — 136 EBITDA $ 232,101 $ 15,399 $ (135,087) $ (13,468) Depreciation and amortization 68,970 Interest expense, net 35,432 Earnings (loss) before income taxes $ (5,457)

Earnings Per Share (Tables)

Earnings Per Share (Tables)	9 Months Ended
Earnings Per Share (Tables)	Oct. 02, 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 Nine Months Ended In thousands, except EPS October 2, 2021 September 26, 2020 October 2, 2021 September 26, 2020 Net income $ 40,992 $ 35,289 $ 122,025 $ 1,198 After-tax interest expense for 2025 Notes 2,393 — 7,087 — Numerator for diluted EPS $ 43,385 $ 35,289 $ 129,112 $ 1,198 Weighted average shares outstanding for basic EPS 82,290 80,676 81,729 80,376 Effect of dilutive securities: Stock options 709 1,694 1,107 1,818 Restricted stock 597 195 445 114 2025 Notes 12,912 1,230 12,912 410 Weighted average shares outstanding for diluted EPS 96,508 83,795 96,193 82,718 Basic EPS $ 0.50 $ 0.44 $ 1.49 $ 0.01 Diluted EPS $ 0.45 $ 0.42 $ 1.34 $ 0.01 Anti-dilutive options and RSUs outstanding excluded from EPS 111 426 87 516

Restricted Cash (Tables)

Restricted Cash (Tables)	9 Months Ended
Restricted Cash (Tables)	Oct. 02, 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: Nine Months Ended In thousands October 2, 2021 September 26, 2020 Cash and cash equivalents $ 439,117 $ 377,007 Restricted cash included in other assets 1,339 1,408 Total cash, cash equivalents and restricted cash $ 440,456 $ 378,415

Accumulated Other Comprehensi_2

Accumulated Other Comprehensive Loss (Tables)	9 Months Ended
Accumulated Other Comprehensive Loss (Tables)	Oct. 02, 2021
Equity [Abstract]
Schedule of Accumulated Other Comprehensive Loss	The following table presents the changes in AOCL, net of tax during the three and nine months ended October 2, 2021 and September 26, 2020, respectively: Three Months Ended Nine Months Ended In thousands October 2, 2021 September 26, 2020 October 2, 2021 September 26, 2020 Cash flow hedging activity: Balance at beginning of period $ (3,093) $ (7,355) $ (4,400) $ (3,814) Other comprehensive income (loss) before reclassification — (47) (10) (11,088) Tax effect of other comprehensive income (loss) before reclassification — 12 3 2,825 Amount reclassified from AOCL into interest expense 340 1,941 4,959 8,235 Tax effect of amount reclassified from AOCL into interest expense (87) (495) (1,267) (2,102) Stranded tax effect of matured interest rate swaps — — (2,125) — Net current period other comprehensive income (loss), net of tax 253 1,411 1,560 (2,130) Balance at end of period $ (2,840) $ (5,944) $ (2,840) $ (5,944)

Description of Business and B_4

Description of Business and Basis of Presentation - Nature of Operations (Details)	Oct. 02, 2021storestore_brand	Jan. 02, 2021store
Accounting Policies [Abstract]
Number of retail optical locations \| store	1,262	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		9 Months Ended
	Oct. 02, 2021	Sep. 26, 2020	Oct. 02, 2021	Sep. 26, 2020
Accounting Policies [Abstract]
Effective income tax rate (percent)	25.50%	25.50%	25.50%	25.50%
Tax benefit related to exercise of stock options	$ 9.1	$ 3	$ 13.6	$ 6
Tax benefit related to stranded tax effect of interest rate swaps			$ 2.1

Description of Business and B_6

Description of Business and Basis of Presentation - Sale of Equity Method Investee (Details) - USD ($)	3 Months Ended	9 Months Ended
	Oct. 02, 2021	Oct. 02, 2021	Jul. 03, 2021
Schedule of Equity Method Investments [Line Items]
Performance metrics time period per earnout agreement	1 year
Investee
Schedule of Equity Method Investments [Line Items]
Proceeds from sale of ownership interest in equity method investee		$ 2,400,000
Equity investment			$ 0
Gain on sale of equity method investment	$ 2,400,000	$ 2,400,000

Description of Business and B_7

Description of Business and Basis of Presentation - Adoption of New Accounting Pronouncements (Details) - USD ($) $ in Thousands	Oct. 02, 2021	Jul. 03, 2021	Apr. 03, 2021	Jan. 02, 2021	Sep. 26, 2020	Jun. 27, 2020	Mar. 28, 2020	Dec. 28, 2019
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Impact on equity	$ 988,557	$ 938,337	$ 887,532	$ 906,502	$ 864,963	$ 820,939	$ 786,160	$ 776,437
Retained Earnings
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Impact on equity	272,176	231,184	193,583	142,880	107,801	72,512	116,345	107,132
Additional Paid-In Capital
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Impact on equity	$ 748,422	$ 739,380	$ 728,339	795,697	$ 790,188	$ 782,851	$ 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_8

Description of Business and Basis of Presentation - Summary of Adoption on Statement of Operations (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended						9 Months Ended
	Oct. 02, 2021	Jul. 03, 2021	Apr. 03, 2021	Sep. 26, 2020	Jun. 27, 2020	Mar. 28, 2020	Oct. 02, 2021	Sep. 26, 2020
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Income from operations	$ 50,711			$ 54,794			$ 166,988	$ 30,111
Interest expense, net	5,743			12,475			22,169	35,432
Debt issuance costs	0			0			92	136
Earnings (loss) before income taxes	44,968			42,319			144,727	(5,457)
Income tax provision	3,976			7,030			22,702	(6,655)
Net income	$ 40,992	$ 37,601	$ 43,432	$ 35,289	$ (43,833)	$ 9,742	$ 122,025	$ 1,198
Earnings per share:
Basic (in usd per share)	$ 0.50			$ 0.44			$ 1.49	$ 0.01
Diluted (in usd per share)	$ 0.45			$ 0.42			$ 1.34	$ 0.01
ASU 2020-06 \| Without ASU 2020-06 Adoption
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Income from operations	$ 50,711						$ 166,988
Interest expense, net	9,829						34,005
Debt issuance costs							92
Earnings (loss) before income taxes	40,882						132,891
Income tax provision	3,046						20,056
Net income	$ 37,836						$ 112,835
Earnings per share:
Basic (in usd per share)	$ 0.46						$ 1.38
Diluted (in usd per share)	$ 0.45						$ 1.34
ASU 2020-06 \| Impact of Adoption
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Income from operations	$ 0						$ 0
Interest expense, net	(4,086)						(11,836)
Debt issuance costs							0
Earnings (loss) before income taxes	4,086						11,836
Income tax provision	930						2,646
Net income	$ 3,156						$ 9,190
Earnings per share:
Basic (in usd per share)	$ 0.04						$ 0.11
Diluted (in usd per share)	$ 0						$ 0

Details of Certain Balance Sh_3

Details of Certain Balance Sheet Accounts - Accounts Receivable, Net (Details) - USD ($) $ in Thousands	Oct. 02, 2021	Jan. 02, 2021
Accounts receivable, net:
Allowance for credit losses	$ (526)	$ (433)
Accounts receivable, net of allowance	54,080	57,989
Trade receivables
Accounts receivable, net:
Accounts receivable, gross	29,356	28,405
Credit card receivables
Accounts receivable, net:
Accounts receivable, gross	18,606	21,557
Other receivables
Accounts receivable, net:
Accounts receivable, gross	$ 6,644	$ 8,460

Details of Certain Balance Sh_4

Details of Certain Balance Sheet Accounts - Inventories (Details) - USD ($) $ in Thousands	Oct. 02, 2021	Jan. 02, 2021
Inventories:
Raw materials and work in process	$ 65,094	$ 55,473
Finished goods	59,543	55,801
Inventories	$ 124,637	$ 111,274

Details of Certain Balance Sh_5

Details of Certain Balance Sheet Accounts - Other Payables and Accrued Expenses (Details) - USD ($) $ in Thousands	Oct. 02, 2021	Jan. 02, 2021
Other payables and accrued expenses:
Associate compensation and benefits	$ 39,466	$ 51,081
Advertising	3,219	2,173
Self-insurance liabilities	9,519	8,650
Reserves for customer returns and remakes	7,274	8,084
Capital expenditures	10,455	8,455
Legacy management & services agreement	5,649	5,386
Fair value of derivative liabilities	4,023	5,116
Supplies and other store support expenses	2,353	3,461
Litigation settlements	637	1,107
Lease concessions	491	3,142
Other	15,663	13,654
Total other payables and accrued expenses	98,749	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	Oct. 02, 2021	Jan. 02, 2021
Other non-current liabilities:
Fair value of derivative liabilities	$ 3,385	$ 7,663
Self-insurance liabilities	7,761	7,046
Other	2,440	2,706
Total other non-current liabilities	$ 13,586	$ 17,415

Fair Value Measurement (Details

Fair Value Measurement (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
Fair Value Measurement (Details) - USD ($) $ in Thousands	Oct. 02, 2021	Oct. 02, 2021	Jan. 02, 2021
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Impairments of long-lived tangible store assets and ROU assets	$ 0	$ 1,500
Discount rate used in impairment analysis (percent)		7.50%
Estimated fair value of impaired assets	2,900	$ 2,900
Aggregate principal amount	602,500	602,500	$ 719,875
Convertible senior notes \| 2025 Notes
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Aggregate principal amount	$ 402,500	$ 402,500	402,500
Stated interest rate (percent)	2.50%	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	$ 757,700	$ 757,700	$ 655,300

Long-term Debt - Summary of Lon

Long-term Debt - Summary of Long-term Debt (Details) - USD ($) $ in Thousands	Oct. 02, 2021	Jan. 02, 2021
Debt Instrument [Line Items]
Long-term debt before debt discount	$ 602,500	$ 719,875
Long-term debt less debt discount	592,526	624,611
Less current maturities	0	0
Long-term debt - non-current portion	592,526	624,611
Finance lease obligations	27,512	30,750
Less current maturities	(4,418)	(3,598)
Long-term debt and finance lease obligations, less current portion and debt discount	615,620	651,763
2025 Notes \| Convertible senior notes
Debt Instrument [Line Items]
Long-term debt before debt discount	402,500	402,500
Unamortized discount and issuance cost	(8,572)	(93,123)
Term loan, due July 18, 2024 \| Term loan
Debt Instrument [Line Items]
Long-term debt before debt discount	200,000	317,375
Unamortized discount and issuance cost	$ (1,402)	$ (2,141)

Long-term Debt - Narrative (Det

Long-term Debt - Narrative (Details) $ in Thousands	Oct. 02, 2021	Oct. 02, 2021USD ($)	Jul. 03, 2021USD ($)	Oct. 02, 2021	Oct. 02, 2021USD ($)	Sep. 26, 2020USD ($)	Jul. 18, 2024	Apr. 03, 2021	Jan. 02, 2021
Debt Instrument [Line Items]
Repayments on long-term debt					$ 117,375	$ 369,269
Term loan \| Term loan, due July 18, 2024
Debt Instrument [Line Items]
Repayments on long-term debt			$ 117,400
Write off of deferred debt issuance costs			$ 700
LIBOR floor	0.00%	0.00%	1.00%	0.00%	0.00%
Term loan \| Term loan, due July 18, 2024 \| LIBOR \| Minimum
Debt Instrument [Line Items]
Basis spread on variable rate (percent)			1.25%
Term loan \| Term loan, due July 18, 2024 \| LIBOR \| Maximum
Debt Instrument [Line Items]
Basis spread on variable rate (percent)			2.00%
Term loan \| Term loan, due July 18, 2024 \| ABR \| Minimum
Debt Instrument [Line Items]
Basis spread on variable rate (percent)			0.25%
Term loan \| Term loan, due July 18, 2024 \| ABR \| Maximum
Debt Instrument [Line Items]
Basis spread on variable rate (percent)			1.00%
Credit facility \| Credit Agreement
Debt Instrument [Line Items]
Consolidated Total Debt to Consolidated EBITDA Ratio maximum				4.50
Consolidated Interest Coverage Ratio minimum				3
Credit facility \| Credit Agreement \| Forecast
Debt Instrument [Line Items]
Consolidated Total Debt to Consolidated EBITDA Ratio maximum							4.25
Convertible senior notes \| 2025 Notes
Debt Instrument [Line Items]
Effective interest rate (percent)								3.20%	9.10%
Interest expense for the interest coupon		$ 2,500			$ 7,500
Amortization of issuance costs		$ 600			$ 1,600
Remaining period for amortization of debt issuance costs	4 years

Interest Rate Derivatives (Deta

Interest Rate Derivatives (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
Interest Rate Derivatives (Details) - USD ($) $ in Millions	Oct. 02, 2021	Sep. 26, 2020	Oct. 02, 2021	Sep. 26, 2020	Jan. 02, 2021
Derivative [Line Items]
Interest expense on highly effective hedges		$ 2		$ 5.9
Interest rate derivatives
Derivative [Line Items]
Fair value of derivative liabilities					$ 12.8
Interest rate derivatives \| Interest expense, net
Derivative [Line Items]
Reclassification of net unrealized losses on discontinuance of hedge accounting				2.5
Interest rate collar
Derivative [Line Items]
Notional amount	$ 375		$ 375
Loss on change in fair value	0.2
Gain on change in fair value			1.3
Interest expense on highly effective hedges			1.5
Reclassification of unrealized losses from AOCL to interest expense			2.5
Estimated reclassification from AOCL to earnings in next 12 months	0.9		0.9
Interest rate collar \| Interest expense, net
Derivative [Line Items]
Loss on change in fair value				2.6
Interest rate collar \| Not designated as hedge
Derivative [Line Items]
Notional amount		58		58
Fair value of derivative liabilities	7.4		7.4
Interest rate swap \| Not designated as hedge
Derivative [Line Items]
Notional amount		$ 78		$ 78
Interest rate swap \| Designated as hedge \| Cash flow hedge
Derivative [Line Items]
Fair value of derivative liabilities					$ 1.5
Interest rate collar basis for reclass
Derivative [Line Items]
Notional amount	$ 115		$ 115

Stock Incentive Plans (Details)

Stock Incentive Plans (Details)	9 Months Ended
Stock Incentive Plans (Details)	Oct. 02, 2021installmentshares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options granted (in shares)	110,531
PSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Awards granted (in shares)	111,601
RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Awards granted (in shares)	132,327
Number of equal vesting installments \| installment	3
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of equal vesting installments \| installment	3
RSAs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Awards granted (in shares)	16,539
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		9 Months Ended
	Oct. 02, 2021	Sep. 26, 2020	Oct. 02, 2021	Sep. 26, 2020
Disaggregation of Revenue [Line Items]
Time frame for majority of payments on health care plans and programs accounts (in days)			90 days
Reductions in revenue for estimated price concessions granted to managed care providers	$ 2.4	$ 1.8	$ 7	$ 5.9
Credit loss expense	0.3	0.1	0.6	0.5
Deferred revenue	92.8		92.8
Previously deferred revenue recognized	24.6	18.6	50.4	48.1
Revenues from sale of club memberships and product protection plans during the period	$ 9.2	$ 9.3	$ 46.5	$ 31.9
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		9 Months Ended
	Oct. 02, 2021	Sep. 26, 2020	Oct. 02, 2021	Sep. 26, 2020
Disaggregation of Revenue [Line Items]
Total net revenue	$ 518,005	$ 485,353	$ 1,601,674	$ 1,215,064
Revenues recognized at a point in time
Disaggregation of Revenue [Line Items]
Total net revenue	473,449	447,403	1,471,856	1,111,118
Revenues recognized over time
Disaggregation of Revenue [Line Items]
Total net revenue	$ 44,556	$ 37,950	$ 129,818	$ 103,946

Revenue From Contracts With C_5

Revenue From Contracts With Customers - Unsatisfied Performance Obligations (Details) $ in Millions	Oct. 02, 2021USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-10-03
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Performance obligations expected to be satisfied	$ 25.2
Performance obligations expected to be satisfied, expected timing	3 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	$ 49.1
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	$ 14.7
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	$ 3.5
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	$ 0.3
Performance obligations expected to be satisfied, expected timing

Leases - Lease Costs (Details)

Leases - Lease Costs (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Leases - Lease Costs (Details) - USD ($) $ in Thousands	Oct. 02, 2021	Sep. 26, 2020	Oct. 02, 2021	Sep. 26, 2020
Lease cost
Fixed lease cost	$ 21,035	$ 19,473	$ 62,589	$ 57,885
Variable lease cost	7,976	7,203	22,894	20,369
Sublease income	(866)	(896)	(2,695)	(1,778)
Amortization of finance lease assets	1,113	1,143	3,349	3,424
Interest on finance lease liabilities	716	826	2,239	2,550
Net lease cost	$ 29,974	$ 27,749	$ 88,376	$ 82,450

Leases - Lease Term and Discoun

Leases - Lease Term and Discount Rate (Details)	Oct. 02, 2021	Jan. 02, 2021
Lessee, Lease, Description [Line Items]
Operating Lease, Weighted Average Remaining Lease Term	77 months	77 months
Finance Lease, Weighted Average Remaining Lease Term	74 months	79 months
Operating leases, weighted average discount rate (percent)	4.70%	4.70%
Finance leases, weighted average discount rate (percent)	11.90%	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	9 Months Ended
	Oct. 02, 2021	Sep. 26, 2020
Leases [Abstract]
Operating cash outflows - operating leases	$ 66,358	$ 53,816
Right of use assets acquired under finance leases	0	1,257
Right of use assets acquired under operating leases	$ 64,260	$ 45,154

Leases - Maturity of Lease Liab

Leases - Maturity of Lease Liabilities (Details) - USD ($) $ in Thousands	Oct. 02, 2021	Jan. 02, 2021
Operating Leases
2021	$ 16,190
2022	80,102
2023	79,713
2024	68,844
2025	63,581
Thereafter	146,019
Total lease liabilities	454,449
Less: Interest	63,209
Present value of lease liabilities	391,240
Finance Leases
2021	1,820
2022	6,635
2023	6,252
2024	4,753
2025	4,913
Thereafter	11,399
Total lease liabilities	35,772
Less: Interest	8,260
Finance lease obligations	27,512	$ 30,750
Operating lease payments related to reasonably certain option extensions included in total lease payments	50,100
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	$ 30,200

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 associates \| plaintiff	6
Maximum
Loss Contingencies [Line Items]
Maximum amount of litigation settlement \| $	$ 895

Segment Reporting - Narrative (

Segment Reporting - Narrative (Details)	9 Months Ended
Segment Reporting - Narrative (Details)	Oct. 02, 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		9 Months Ended
	Oct. 02, 2021	Sep. 26, 2020	Oct. 02, 2021	Sep. 26, 2020
Segment Reporting Information [Line Items]
Total net revenue	$ 518,005	$ 485,353	$ 1,601,674	$ 1,215,064
Total costs applicable to revenue	226,458	210,809	687,094	570,143
SG&A	218,214	190,518	676,042	520,841
Asset impairment	0	7,150	1,478	20,916
Litigation settlement	0	0	0	4,395
Debt issuance costs	0	0	92	136
Other expense (income), net	(2,437)	(154)	(2,567)	(312)
Depreciation and amortization	25,059	22,236	72,639	68,970
Interest expense, net	5,743	12,475	22,169	35,432
Earnings before income taxes	44,968	42,319	144,727	(5,457)
Net product sales
Segment Reporting Information [Line Items]
Total net revenue	425,594	403,336	1,326,867	1,005,884
Total costs applicable to revenue	158,371	148,274	485,090	402,279
Net sales of services and plans
Segment Reporting Information [Line Items]
Total net revenue	92,411	82,017	274,807	209,180
Total costs applicable to revenue	68,087	62,535	202,004	167,864
Operating Segments \| Owned & Host
Segment Reporting Information [Line Items]
Total net revenue	416,102	396,400	1,308,706	955,331
Total costs applicable to revenue	156,699	142,625	473,594	373,606
SG&A	156,814	128,206	465,690	349,624
Asset impairment		0	0	0
Litigation settlement				0
Debt issuance costs			0	0
Other expense (income), net	0	0	0	0
EBITDA	102,589	125,569	369,422	232,101
Operating Segments \| Owned & Host \| Net product sales
Segment Reporting Information [Line Items]
Total net revenue	338,931	323,159	1,069,678	782,502
Total costs applicable to revenue	95,004	86,945	290,647	223,759
Operating Segments \| Owned & Host \| Net sales of services and plans
Segment Reporting Information [Line Items]
Total net revenue	77,171	73,241	239,028	172,829
Total costs applicable to revenue	61,695	55,680	182,947	149,847
Operating Segments \| Legacy
Segment Reporting Information [Line Items]
Total net revenue	40,842	40,232	128,024	102,102
Total costs applicable to revenue	18,404	17,784	56,838	49,443
SG&A	14,363	13,068	43,458	37,260
Asset impairment		0	0	0
Litigation settlement				0
Debt issuance costs			0	0
Other expense (income), net	0	0	0	0
EBITDA	8,075	9,380	27,728	15,399
Operating Segments \| Legacy \| Net product sales
Segment Reporting Information [Line Items]
Total net revenue	24,934	24,900	79,209	65,572
Total costs applicable to revenue	12,012	11,676	37,781	32,173
Operating Segments \| Legacy \| Net sales of services and plans
Segment Reporting Information [Line Items]
Total net revenue	15,908	15,332	48,815	36,530
Total costs applicable to revenue	6,392	6,108	19,057	17,270
Operating Segments \| Corporate/Other
Segment Reporting Information [Line Items]
Total net revenue	58,063	57,906	180,801	174,950
Total costs applicable to revenue	50,477	50,901	157,186	150,945
SG&A	47,037	49,244	166,894	133,957
Asset impairment		7,150	1,478	20,916
Litigation settlement				4,395
Debt issuance costs			92	136
Other expense (income), net	(2,437)	(154)	(2,567)	(312)
EBITDA	(37,014)	(49,235)	(142,282)	(135,087)
Operating Segments \| Corporate/Other \| Net product sales
Segment Reporting Information [Line Items]
Total net revenue	58,063	57,906	180,801	174,950
Total costs applicable to revenue	50,477	50,154	157,186	150,198
Operating Segments \| Corporate/Other \| Net sales of services and plans
Segment Reporting Information [Line Items]
Total net revenue	0	0	0	0
Total costs applicable to revenue	0	747	0	747
Reconciliations
Segment Reporting Information [Line Items]
Total net revenue	2,998	(9,185)	(15,857)	(17,319)
Total costs applicable to revenue	878	(501)	(524)	(3,851)
SG&A	0	0	0	0
Asset impairment		0	0	0
Litigation settlement				0
Debt issuance costs			0	0
Other expense (income), net	0	0	0	0
EBITDA	2,120	(8,684)	(15,333)	(13,468)
Reconciliations \| Net product sales
Segment Reporting Information [Line Items]
Total net revenue	3,666	(2,629)	(2,821)	(17,140)
Total costs applicable to revenue	878	(501)	(524)	(3,851)
Reconciliations \| Net sales of services and plans
Segment Reporting Information [Line Items]
Total net revenue	(668)	(6,556)	(13,036)	(179)
Total costs applicable to revenue	$ 0	$ 0	$ 0	$ 0

Earnings Per Share (Details)

Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended						9 Months Ended
	Oct. 02, 2021	Jul. 03, 2021	Apr. 03, 2021	Sep. 26, 2020	Jun. 27, 2020	Mar. 28, 2020	Oct. 02, 2021	Sep. 26, 2020
Earnings Per Share [Abstract]
Net income	$ 40,992	$ 37,601	$ 43,432	$ 35,289	$ (43,833)	$ 9,742	$ 122,025	$ 1,198
After-tax interest expense for 2025 Notes	2,393			0			7,087	0
Numerator for diluted EPS	$ 43,385			$ 35,289			$ 129,112	$ 1,198
Weighted average shares outstanding for basic EPS (in shares)	82,290			80,676			81,729	80,376
Effect of dilutive securities:
Stock options	709			1,694			1,107	1,818
Restricted stock	597			195			445	114
2025 Notes	12,912			1,230			12,912	410
Weighted average shares outstanding for diluted EPS	96,508			83,795			96,193	82,718
Basic EPS (in usd per share)	$ 0.50			$ 0.44			$ 1.49	$ 0.01
Diluted EPS (in usd per share)	$ 0.45			$ 0.42			$ 1.34	$ 0.01
Options and RSUs
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive options, RSUs outstanding excluded from EPS (shares)	111			426			87	516

Restricted Cash (Details)

Restricted Cash (Details) - USD ($) $ in Thousands	Oct. 02, 2021	Jan. 02, 2021	Sep. 26, 2020	Dec. 28, 2019
Reconciliation of cash, cash equivalents, and restricted cash
Cash and cash equivalents	$ 439,117	$ 373,903	$ 377,007
Restricted cash included in other assets	1,339		1,408
Total cash, cash equivalents and restricted cash	$ 440,456	$ 375,159	$ 378,415	$ 40,307

Accumulated Other Comprehensi_3

Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 02, 2021	Sep. 26, 2020	Oct. 02, 2021	Sep. 26, 2020
Accumulated Other Comprehensive Loss, Net of Tax [Roll Forward]
Balance at beginning of period	$ 938,337	$ 820,939	$ 906,502	$ 776,437
Balance at end of period	988,557	864,963	988,557	864,963
Cash flow hedges
Accumulated Other Comprehensive Loss, Net of Tax [Roll Forward]
Balance at beginning of period	(3,093)	(7,355)	(4,400)	(3,814)
Other comprehensive income (loss) before reclassification	0	(47)	(10)	(11,088)
Tax effect of other comprehensive income (loss) before reclassification	0	12	3	2,825
Amount reclassified from AOCL into interest expense	340	1,941	4,959	8,235
Tax effect of amount reclassified from AOCL into interest expense	(87)	(495)	(1,267)	(2,102)
Stranded tax effect of matured interest rate swaps	0	0	(2,125)	0
Net current period other comprehensive income (loss), net of tax	253	1,411	1,560	(2,130)
Balance at end of period	$ (2,840)	$ (5,944)	$ (2,840)	$ (5,944)

Subsequent Events (Details)

Subsequent Events (Details) - USD ($) $ in Thousands	Nov. 09, 2021	Jul. 03, 2021	Oct. 02, 2021	Sep. 26, 2020	Jan. 02, 2021
Subsequent Event [Line Items]
Repayments on long-term debt			$ 117,375	$ 369,269
Aggregate principal amount			602,500		$ 719,875
Term loan, due July 18, 2024 \| Term loan
Subsequent Event [Line Items]
Repayments on long-term debt		$ 117,400
Aggregate principal amount			$ 200,000		$ 317,375
Subsequent event \| Term loan, due July 18, 2024 \| Term loan
Subsequent Event [Line Items]
Repayments on long-term debt	$ 50,000
Aggregate principal amount	$ 150,000