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. Incremental expenses related to the COVID-19 pandemic are allocated to the reportable segments. 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, and other corporate costs that are not allocated to the reportable segments, including interest expense (income) 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 July 2, 2022 In thousands Owned & Host Legacy Corporate/Other Reconciliations Total Net product services $ 326,000 $ 24,301 $ 61,885 $ 9,414 $ 421,600 Net sales of services and plans 73,158 13,536 — 1,261 87,955 Total net revenue 399,158 37,837 61,885 10,675 509,555 Cost of products 95,264 11,506 54,499 2,092 163,361 Cost of services and plans 65,314 5,892 — — 71,206 Total costs applicable to revenue 160,578 17,398 54,499 2,092 234,567 SG&A 156,234 14,758 56,837 — 227,829 Asset impairment — — 3,509 — 3,509 Other expense (income), net — — 34 — 34 EBITDA $ 82,346 $ 5,681 $ (52,994) $ 8,583 Depreciation and amortization 25,245 Interest expense (income), net 3,963 Earnings before income taxes $ 14,408 Three Months Ended July 3, 2021 In thousands Owned & Host Legacy Corporate/Other Reconciliations Total Net product sales $ 361,377 $ 26,855 $ 61,520 $ 8,454 $ 458,206 Net sales of services and plans 78,780 16,745 — (4,242) 91,283 Total net revenue 440,157 43,600 61,520 4,212 549,489 Cost of products 98,539 12,910 53,683 1,896 167,028 Cost of services and plans 62,448 6,470 — — 68,918 Total costs applicable to revenue 160,987 19,380 53,683 1,896 235,946 SG&A 158,913 14,802 60,520 — 234,235 Asset impairment — — 519 — 519 Other expense (income), net — — (65) — (65) EBITDA $ 120,257 $ 9,418 $ (53,137) $ 2,316 Depreciation and amortization 24,025 Interest expense (income), net 10,188 Earnings before income taxes $ 44,641 Six Months Ended July 2, 2022 In thousands Owned & Host Legacy Corporate/Other Reconciliations Total Net product sales $ 683,904 $ 51,931 $ 123,582 $ (4,564) $ 854,853 Net sales of services and plans 153,173 28,064 — 1,176 182,413 Total net revenue 837,077 79,995 123,582 (3,388) 1,037,266 Costs of products 196,304 24,413 107,964 (1,101) 327,580 Costs of services and plans 130,915 12,109 — — 143,024 Total costs applicable to revenue 327,219 36,522 107,964 (1,101) 470,604 SG&A 313,695 29,864 112,824 — 456,383 Asset impairment — — 3,915 — 3,915 Other expense, net — — 265 — 265 EBITDA $ 196,163 $ 13,609 $ (101,386) $ (2,287) Depreciation and amortization 50,396 Interest expense (income), net (181) Earnings before income taxes $ 55,884 Six Months Ended July 3, 2021 In thousands Owned & Host Legacy Corporate/Other Reconciliations Total Net product sales $ 730,747 $ 54,275 $ 122,738 $ (6,487) $ 901,273 Net sales of services and plans 161,857 32,907 — (12,368) 182,396 Total net revenue 892,604 87,182 122,738 (18,855) 1,083,669 Costs of products 195,643 25,769 106,709 (1,402) 326,719 Costs of services and plans 121,252 12,665 — — 133,917 Total costs applicable to revenue 316,895 38,434 106,709 (1,402) 460,636 SG&A 308,876 29,095 119,857 — 457,828 Asset impairment — — 1,478 — 1,478 Other expense (income), net — — (130) — (130) EBITDA $ 266,833 $ 19,653 $ (105,176) $ (17,453) Depreciation and amortization 47,580 Interest expense (income), net 16,518 Earnings before income taxes $ 99,759 |