National Vision (EYE) 10-Q 10 Aug 23 2023 Q2 Quarterly report Financial data

Cover Page

Cover Page - shares	6 Months Ended
	Jul. 01, 2023	Jul. 28, 2023
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jul. 01, 2023
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		78,157,788
Entity Central Index Key	0001710155
Current Fiscal Year End Date	--12-30
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q2
Amendment Flag	false

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jul. 01, 2023	Dec. 31, 2022
Current assets:
Cash and cash equivalents	$ 254,647	$ 229,425
Accounts receivable, net	78,904	79,892
Inventories	120,871	123,158
Prepaid expenses and other current assets	39,865	41,361
Total current assets	494,287	473,836
Noncurrent assets:
Property and equipment, net	367,333	359,775
Goodwill	777,613	777,613
Trademarks and trade names	240,547	240,547
Other intangible assets, net	30,900	34,669
Right of use assets	398,469	382,825
Other assets	24,779	21,981
Total noncurrent assets	1,839,641	1,817,410
Total assets	2,333,928	2,291,246
Current liabilities:
Accounts payable	64,108	65,276
Other payables and accrued expenses	112,946	94,225
Unearned revenue	39,818	41,239
Deferred revenue	64,101	62,201
Current maturities of long-term debt and finance lease obligations	10,501	4,137
Current operating lease obligations	71,759	77,186
Total current liabilities	363,233	344,264
Noncurrent liabilities:
Long-term debt and finance lease obligations, less current portion and debt discount	555,182	563,388
Noncurrent operating lease obligations	380,675	358,110
Deferred revenue	21,946	21,601
Other liabilities	9,261	8,900
Deferred income taxes, net	95,219	93,870
Total noncurrent liabilities	1,062,283	1,045,869
Commitments and contingencies (See Note 9)
Stockholders’ equity:
Common stock, $0.01 par value; 200,000 shares authorized; 84,625 and 84,273 shares issued as of July 1, 2023 and December 31, 2022, respectively; 78,154 and 78,992 shares outstanding as of July 1, 2023 and December 31, 2022, respectively	846	842
Additional paid-in capital	777,762	767,112
Accumulated other comprehensive loss	(801)	(1,179)
Retained earnings	344,401	320,517
Treasury stock, at cost; 6,471 and 5,281 shares as of July 1, 2023 and December 31, 2022, respectively	(213,796)	(186,179)
Total stockholders’ equity	908,412	901,113
Total liabilities and stockholders’ equity	$ 2,333,928	$ 2,291,246

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Jul. 01, 2023	Dec. 31, 2022
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)	84,625,000	84,273,000
Common stock, outstanding (in shares)	78,154,000	78,992,000
Treasury stock (in shares)	6,471,000	5,281,000

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations and Comprehensive Income - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 01, 2023	Jul. 02, 2022	Jul. 01, 2023	Jul. 02, 2022
Revenue:
Total net revenue	$ 525,340	$ 509,555	$ 1,087,709	$ 1,037,266
Costs applicable to revenue (exclusive of depreciation and amortization):
Total costs applicable to revenue	247,839	234,567	501,891	470,604
Operating expenses:
Selling, general and administrative expenses	243,971	227,829	493,893	456,383
Depreciation and amortization	24,929	25,245	49,742	50,396
Asset impairment	893	3,509	1,280	3,915
Other expense (income), net	(17)	34	(134)	265
Total operating expenses	269,776	256,617	544,781	510,959
Income from operations	7,725	18,371	41,037	55,703
Interest expense (income), net	1,836	3,963	6,703	(181)
Earnings before income taxes	5,889	14,408	34,334	55,884
Income tax provision	275	4,674	10,450	16,003
Net income	$ 5,614	$ 9,734	$ 23,884	$ 39,881
Earnings per share:
Basic (in usd per share)	$ 0.07	$ 0.12	$ 0.30	$ 0.49
Diluted (in usd per share)	$ 0.07	$ 0.12	$ 0.30	$ 0.47
Weighted average shares outstanding:
Basic (in shares)	78,101	80,061	78,411	80,744
Diluted (in shares)	78,343	80,403	78,784	94,109
Comprehensive income:
Net income	$ 5,614	$ 9,734	$ 23,884	$ 39,881
Unrealized gain on hedge instruments	255	255	508	507
Tax provision of unrealized gain on hedge instruments	65	65	130	129
Comprehensive income	5,804	9,924	24,262	40,259
Products
Revenue:
Total net revenue	432,925	421,600	897,686	854,853
Costs applicable to revenue (exclusive of depreciation and amortization):
Total costs applicable to revenue	167,514	163,361	340,616	327,580
Services and plans
Revenue:
Total net revenue	92,415	87,955	190,023	182,413
Costs applicable to revenue (exclusive of depreciation and amortization):
Total costs applicable to revenue	$ 80,325	$ 71,206	$ 161,275	$ 143,024

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Additional Paid-In Capital	Accumulated Other Comprehensive Loss	Retained Earnings	Treasury Stock
Balance at beginning of period (in shares) at Jan. 01, 2022		81,405
Balance at beginning of period at Jan. 01, 2022	$ 925,980	$ 838	$ 750,478	$ (1,940)	$ 278,395	$ (101,791)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock (in shares)		289
Issuance of common stock	1,369	$ 3	1,366
Stock-based compensation	3,692		3,692
Purchase of treasury stock (in shares)		(272)
Purchase of treasury stock	(10,649)					(10,649)
Settlement of 2025 Notes	(1)		(1)
Unrealized gain on hedge instruments, net of tax	188			188
Net income	30,147				30,147
Balance at end of period (in shares) at Apr. 02, 2022		81,422
Balance at end of period at Apr. 02, 2022	950,726	$ 841	755,535	(1,752)	308,542	(112,440)
Balance at beginning of period (in shares) at Jan. 01, 2022		81,405
Balance at beginning of period at Jan. 01, 2022	$ 925,980	$ 838	750,478	(1,940)	278,395	(101,791)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Purchase of treasury stock (in shares)	(2,700)
Net income	$ 39,881
Balance at end of period (in shares) at Jul. 02, 2022		78,885
Balance at end of period at Jul. 02, 2022	891,669	$ 841	759,562	(1,562)	318,276	(185,448)
Balance at beginning of period (in shares) at Apr. 02, 2022		81,422
Balance at beginning of period at Apr. 02, 2022	950,726	$ 841	755,535	(1,752)	308,542	(112,440)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock (in shares)		18
Issuance of common stock	421		421
Stock-based compensation	3,606		3,606
Purchase of treasury stock (in shares)		(2,555)
Purchase of treasury stock	(73,008)					(73,008)
Unrealized gain on hedge instruments, net of tax	190			190
Net income	9,734				9,734
Balance at end of period (in shares) at Jul. 02, 2022		78,885
Balance at end of period at Jul. 02, 2022	$ 891,669	$ 841	759,562	(1,562)	318,276	(185,448)
Balance at beginning of period (in shares) at Dec. 31, 2022	78,992	78,992
Balance at beginning of period at Dec. 31, 2022	$ 901,113	$ 842	767,112	(1,179)	320,517	(186,179)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock (in shares)		282
Issuance of common stock	493	$ 3	490
Stock-based compensation	4,271		4,271
Purchase of treasury stock (in shares)		(1,189)
Purchase of treasury stock	(27,609)					(27,609)
Settlement of 2025 Notes	0
Unrealized gain on hedge instruments, net of tax	188			188
Net income	18,270				18,270
Balance at end of period (in shares) at Apr. 01, 2023		78,085
Balance at end of period at Apr. 01, 2023	$ 896,726	$ 845	771,873	(991)	338,787	(213,788)
Balance at beginning of period (in shares) at Dec. 31, 2022	78,992	78,992
Balance at beginning of period at Dec. 31, 2022	$ 901,113	$ 842	767,112	(1,179)	320,517	(186,179)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Purchase of treasury stock (in shares)	(1,100)
Net income	$ 23,884
Balance at end of period (in shares) at Jul. 01, 2023	78,154	78,154
Balance at end of period at Jul. 01, 2023	$ 908,412	$ 846	777,762	(801)	344,401	(213,796)
Balance at beginning of period (in shares) at Apr. 01, 2023		78,085
Balance at beginning of period at Apr. 01, 2023	896,726	$ 845	771,873	(991)	338,787	(213,788)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock (in shares)		70
Issuance of common stock	452	$ 1	451
Stock-based compensation	5,438		5,438
Purchase of treasury stock (in shares)		(1)
Purchase of treasury stock	(8)					(8)
Unrealized gain on hedge instruments, net of tax	190			190
Net income	$ 5,614				5,614
Balance at end of period (in shares) at Jul. 01, 2023	78,154	78,154
Balance at end of period at Jul. 01, 2023	$ 908,412	$ 846	$ 777,762	$ (801)	$ 344,401	$ (213,796)

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jul. 01, 2023	Jul. 02, 2022
Cash flows from operating activities:
Net income	$ 23,884	$ 39,881
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	49,742	50,396
Amortization of debt discount and deferred financing costs	1,800	1,584
Asset impairment	1,280	3,915
Deferred income tax expense (benefit)	1,220	3,512
Stock-based compensation expense	9,788	7,372
Losses (gains) on change in fair value of derivatives	(1,750)	(10,745)
Inventory adjustments	1,996	1,429
Other	1,509	2,455
Changes in operating assets and liabilities:
Accounts receivable	560	(8,661)
Inventories	290	(7,253)
Operating lease right of use assets and lease liabilities	525	568
Other assets	3,528	2,246
Accounts payable	(1,168)	5,669
Deferred and unearned revenue	824	3,253
Other liabilities	18,188	(7,590)
Net cash provided by operating activities	112,216	88,031
Cash flows from investing activities:
Purchase of property and equipment	(54,120)	(55,714)
Other	(665)	20
Net cash used for investing activities	(54,785)	(55,694)
Cash flows from financing activities:
Repayments on long-term debt	0	(4)
Proceeds from issuance of common stock	945	2,246
Purchase of treasury stock	(27,611)	(83,632)
Payments of debt issuance costs	(2,869)	0
Payments on finance lease obligations	(2,536)	(2,218)
Net cash used for financing activities	(32,071)	(83,608)
Net change in cash, cash equivalents and restricted cash	25,360	(51,271)
Cash, cash equivalents and restricted cash, beginning of year	230,624	306,876
Cash, cash equivalents and restricted cash, end of period	255,984	255,605
Supplemental cash flow disclosure information:
Cash paid for interest	5,399	9,329
Cash paid for taxes	4,347	5,632
Capital expenditures accrued at the end of the period	$ 10,770	$ 9,300

Description of Business and Bas

Description of Business and Basis of Presentation	6 Months Ended
	Jul. 01, 2023
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 1,381 and 1,354 retail optical locations in the United States and its territories as of July 1, 2023 and December 31, 2022, 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”). Refer to Note 12. “Subsequent Events” for developments related to the Walmart partnership that occurred after July 1, 2023. Basis of Presentation and Principles of Consolidation 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 December 31, 2022 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 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 December 31, 2022 included in the 2022 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 six months ended July 1, 2023. The condensed consolidated financial statements include our accounts and those of our wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Certain amounts within the footnotes to the financial statements for fiscal year 2022 have been reclassified to conform to the fiscal year 2023 presentation. The Company has consolidated certain entities meeting the definition of a variable interest entity (“VIE”) as the Company concluded that it is the primary beneficiary of the entities under the provisions of Accounting Standards Codification 810, Consolidation. At July 1, 2023, the variable interest entities include 32 professional corporations. The total assets of the consolidated VIEs included in the accompanying Condensed Consolidated Balance Sheets as of July 1, 2023 and December 31, 2022, were $6.2 million and $7.9 million, respectively, and the total liabilities of the consolidated VIEs were $7.9 million and $8.3 million, respectively. Fiscal Year Our fiscal year consists of 52 or 53 weeks ending on the Saturday closest to December 31. Fiscal year 2023 contains 52 weeks and will end on December 30, 2023. All three and six month periods presented herein contain 13 and 26 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 six months ended July 1, 2023 and July 2, 2022, 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. 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 effective tax rate for the three months ended July 1, 2023 was 4.7%, reflecting our statutory federal and state rate of 25.4%, tax impacts of employee-related federal tax credits and effects of other permanent items. Our effective tax rate for the three months ended July 2, 2022 was 32.4%, reflecting our statutory federal and state rate of 25.5% and effects of other permanent items. Our effective tax rate for the six months ended July 1, 2023 was 30.4%, reflecting our statutory federal and state rate of 25.4%, tax impacts of consolidated VIEs and non-deductible compensation expenses, as well as other permanent items. Our effective tax rate for the six months ended July 2, 2022 was 28.6%, reflecting our statutory federal and state rate of 25.5% and effects of other permanent items. Share Repurchases During the six months ended July 1, 2023 and July 2, 2022, the Company repurchased 1.1 million shares of its common stock for $25.0 million, and 2.7 million shares of its common stock for $80.0 million, respectively, under the share repurchase program. As of July 1, 2023, $25.0 million remains available under the share repurchase authorization. In August 2022, the U.S. government enacted the Inflation Reduction Act (“IRA”) which, among other things, provides for a 15% corporate alternative minimum tax based on a prescribed measure of income as well as a 1% excise tax on stock repurchases. Investment In the second quarter of fiscal year 2023, we completed an investment in an entity specializing in applying artificial intelligence-powered screening and diagnostic tools to retinal imaging. The initial investment of $0.9 million was recognized in Other assets on the Condensed Consolidated Balance Sheets as of July 1, 2023 and in Other in the investing section of the Condensed Consolidated Statements of Cash Flows for the six months ended July 1, 2023. We have agreed to invest up to an additional $2.4 million in the entity upon the completion of certain milestones. Future Adoption of Accounting Pronouncements Reference Rate Reform. The Financial Accounting Standards Board (“FASB”) has issued guidance at various points over the last several years that 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”). We are currently able to apply this new guidance 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, 2024. Refer to Note 4. “Long-term Debt” and Note 5. “Interest Rate Derivatives” for more information on our transition from LIBOR to Term Secured Overnight Financing Rate (“Term SOFR”). 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	6 Months Ended
	Jul. 01, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Details of Certain Balance Sheet Accounts	Details of Certain Balance Sheet Accounts 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: Six Months Ended In thousands July 1, 2023 July 2, 2022 Cash, cash equivalents and restricted cash: Cash and cash equivalents $ 254,647 $ 254,382 Restricted cash included in other assets 1,337 1,223 $ 255,984 $ 255,605 The following tables provide additional details of certain balance sheet accounts as of the dates shown below: In thousands As of As of Accounts receivable, net: Trade receivables $ 44,213 $ 41,622 Credit card receivables 18,599 23,311 Other receivables (1) 16,542 15,478 Allowance for credit losses (450) (519) $ 78,904 $ 79,892 (1) Includes Coronavirus Aid, Relief, and Economic Security (“CARES”) Act receivable in the amount of $9.0 million as of July 1, 2023 and December 31, 2022. In thousands As of As of Inventories: Raw materials and work in process (1) $ 57,761 $ 64,786 Finished goods 63,110 58,372 $ 120,871 $ 123,158 (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 $ 50,228 $ 37,451 Self-insurance liabilities 9,381 8,744 Capital expenditures 10,770 9,594 Advertising 5,260 3,811 Reserves for customer returns and remakes 9,194 7,676 Legacy management & services agreement 5,038 6,488 Income taxes payable (1) 1,111 103 Supplies and other store support expenses 3,520 4,215 Other 18,444 16,143 $ 112,946 $ 94,225 (1) Income tax receivables of $4.6 million were included in Prepaid expenses and other current assets as of December 31, 2022. In thousands As of As of Other noncurrent liabilities: Self-insurance liabilities $ 6,874 $ 6,292 Other 2,387 2,608 $ 9,261 $ 8,900

Fair Value Measurement

Fair Value Measurement	6 Months Ended
	Jul. 01, 2023
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) such as Term SOFR forward rates. See Note 5. “Interest Rate Derivatives” for further details. Non-recurring fair value measurements Tangible Long-lived and Right of Use (“ROU”) Store Assets We recognized impairments of $0.9 million and $1.3 million during the three and six months ended July 1, 2023, respectively, and $3.5 million and $3.9 million during the three and six months ended July 2, 2022 respectively, related to our long-lived tangible store assets and ROU assets. The impairments were primarily driven by lower than projected customer sales volume in certain stores. The cash flows used in estimating fair value were discounted using market rates from 10.8% to 11.3%. 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 six months ended July 1, 2023 and July 2, 2022 was $0.8 million and $4.0 million, respectively; the estimated remaining fair values include amounts estimated at various dates during the related fiscal years. Substantially all of the remaining fair value of the impaired store assets represents the fair value of ROU assets. Additional fair value information Long-term Debt - Term A Loans and Revolving Loans Since the borrowings under the $150.0 million aggregate principal first lien term loan (“Term A Loans”) and revolving credit loans in an aggregate principal amount of $300.0 million (the “Revolving Loans”) utilize variable interest rate setting mechanisms such as Term SOFR, the fair values of these borrowings are deemed to approximate the carrying values. We also considered the effect of our own credit risk on the fair values of our Term A Loans and Revolving Loans. Refer to Note 4. “Long-term Debt” for more information on these borrowings. Long-term Debt - 2025 Notes The Company has $402.5 million in aggregate principal amount of 2.50% convertible senior notes due on May 15, 2025 (the “2025 Notes”) issued and outstanding as of July 1, 2023. Refer to Note 4. “Long-term Debt” for more information on the 2025 Notes. The estimated fair value of the 2025 Notes was approximately $422.0 million a nd $553.9 million as of July 1, 2023 and December 31, 2022, respectively. The estimated fair value of the 2025 Notes is based on the prices the 2025 Notes have traded in the market, as well as overall market conditions on the date of valuation, stated coupon rates, the number of coupon payments each year and the maturity dates, and represents a Level 2 measurement in the fair value hierarchy. Refer to Note 4. “Long-term Debt” for more information on the 2025 Notes.

Long-term Debt

Long-term Debt	6 Months Ended
	Jul. 01, 2023
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 $ 402,497 $ 402,497 Term A Loans, due June 13, 2028 150,000 150,000 Revolving Loans, due June 13, 2028 — — Long-term debt before unamortized discount and issuance costs 552,497 552,497 Unamortized discount and issuance costs - 2025 Notes (4,589) (5,696) Unamortized discount and issuance costs - Term A Loans (1,183) (570) Long-term debt less debt discount and issuance costs 546,725 546,231 Less current maturities (7,500) — Long-term debt - noncurrent portion 539,225 546,231 Finance lease obligations 18,958 21,294 Less current maturities (3,001) (4,137) Long-term debt and finance lease obligations, less current portion, discount, and issuance costs $ 555,182 $ 563,388 Scheduled annual maturities of debt are as follows: Fiscal Period In thousands 2023 - remainder of fiscal year $ 3,750 2024 5,625 2025 411,872 2026 7,500 2027 7,500 Thereafter 116,250 $ 552,497 Credit Agreement Reference is made to (i) that certain Second Joinder and Restatement Agreement, dated as of June 13, 2023 (the “Second Restatement Agreement”), by and among the New Lenders party thereto, the Letter of Credit Issuers party thereto, Nautilus Acquisition Holdings, Inc. (“Holdings”), a Delaware corporation and a wholly-owned subsidiary of the Company, NVI, the subsidiaries of NVI party thereto, as guarantors, Bank of America, N.A. in its capacity as administrative agent and as collateral agent and (ii) the Second Amended and Restated Credit Agreement, dated as of June 13, 2023 (the “Credit Agreement”). On June 13, 2023 (the “Second Restatement Effective Date”), the Second Restatement Agreement amended and restated the Joinder and Amendment and Restatement Agreement, dated as of July 18, 2019 (as amended, restated, amended and restated, supplemented or otherwise modified prior to the Second Restatement Agreement, the “Original Credit Agreement”) to, among other things, (i) establish new Term A Loans to repay all principal, interest, fees and other amounts outstanding (other than contingent obligations) under the Original Credit Agreement immediately prior to the Second Restatement Effective Date, (ii) establish new Revolving Loans, (iii) provide for a Secured Overnight Financing Rate as administered by the Federal Reserve Bank of New York (or a successor administrator) (“SOFR”)-based rate, with a credit spread adjustment of 10 basis points for all Interest Periods and a SOFR floor of 0.00% per annum, and (iv) as set forth below, modify the Applicable Margins used to calculate the rate of interest payable with respect to the Term A Loans and Revolving Loans (collectively, the “Loans”). The Credit Agreement, as amended by the Second Restatement Agreement, provides that the Loans mature on the fifth anniversary of the Second Restatement Effective Date, subject to a springing maturity date, which is 91 days before the maturity date of the Company’s 2025 Notes if Minimum Liquidity is less than the sum of the redemption value of such convertible notes on that date plus $25.0 million (the “Maturity Date”). Commencing on the last day of the first full fiscal quarter ended after the Second Restatement Effective Date, the Term A Loans will amortize in equal calendar quarterly installments at a rate of 5.00% per calendar year. The $114.4 million balance (assuming the springing maturity date does not occur) will be payable on the Maturity Date. The new Applicable Margins are initially (i) 1.75% for the Loans that are Term SOFR Loans and (ii) 0.75% for the Loans that are Alternative Base Rate (“ABR”) Loans. Following the delivery of the financial statements for the period ending on September 30, 2023, the Applicable Margins for the Loans will instead be based on NVI’s total leverage ratio as follows: (a) if NVI’s consolidated total debt to consolidated EBITDA ratio is greater than 2.50 to 1.00, the Applicable Margin will be 2.25% for Term SOFR Loans and 1.25% for ABR Loans, (b) if NVI’s consolidated total debt to consolidated EBITDA ratio is less than or equal to 2.50 to 1.00 but greater than 1.75 to 1.00, the Applicable Margin will be 2.00% for Term SOFR Loans and 1.00% for ABR Loans, (c) if NVI’s consolidated total debt to consolidated EBITDA ratio is less than or equal to 1.75 to 1.00 but greater than 0.75 to 1.00, the Applicable Margin will be 1.75% for Term SOFR Loans and 0.75% for ABR Loans, (d) if NVI’s consolidated total debt to consolidated EBITDA ratio is less than or equal to 0.75 to 1.00, the Applicable Margin will be 1.50% for Term SOFR Loans and 0.50% for ABR Loans. In connection with the Second Amended and Restated Credit Agreement, we deferred $2.0 million of debt issuance costs related to the Revolving Loans in Other assets and $0.9 million of debt issuance costs related to the Term A Loans in Long-term debt and finance lease obligations, less current portion and debt discount on our Condensed Consolidated Balance Sheets as of July 1, 2023. We will amortize these costs over the term of the amended credit agreement. We wrote off previously unamortized debt issuance costs of $0.2 million in Interest expense (income), net during the three and six months ended July 1, 2023 related to lenders who were parties to the Original Credit Agreement but are not parties to the Second Restatement Agreement. We recognized $0.2 million of other refinancing fees in Interest expense (income), net during the three and six months ended July 1, 2023. The Second Restatement Agreement contains customary affirmative covenants, negative covenants, and events of default substantially comparable to the Original Credit Agreement. We were in compliance with all covenants related to our long-term debt as of July 1, 2023. 2025 Notes We recognized the following in Interest expense (income), net related to the 2025 Notes: Three Months Ended Six Months Ended In thousands July 1, 2023 July 2, 2022 July 1, 2023 July 2, 2022 Contractual interest expense $ 2,515 $ 2,516 $ 5,031 $ 5,031 Amortization of issuance costs $ 578 $ 560 $ 1,116 $ 1,080 As of July 1, 2023, the remaining period for the unamortized debt issuance costs balance was approximately two years. An immaterial amount of the principal balance of the 2025 Notes was converted during the six months ended July 2, 2022. As of July 1, 2023, the stock price conditions under which the 2025 Notes can be converted at the holders’ option were not met.

Interest Rate Derivatives

Interest Rate Derivatives	6 Months Ended
	Jul. 01, 2023
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 Term SOFR-indexed debt interest payments. During the second quarter of 2023, we amended the reference rate of the collar from LIBOR to Term SOFR. To manage credit risk associated with our interest rate hedging program, we select as counterparties major financial institutions with investment grade credit ratings. The aggregate notional amount of the interest rate collar, which is not designated as a cash flow hedge, was $325.0 million as of July 1, 2023. The fair value of our interest rate collar instrument was an asset of $11.3 million ($10.8 million in Prepaid expenses and other current assets and $0.5 million in Other assets) as of July 1, 2023, and an asset of $14.1 million ($10.0 million in Prepaid expenses and other current assets and $4.1 million in Other assets) as of December 31, 2022. See Note 3. “Fair Value Measurement” for further details. We recognized (gains) losses on the change in fair value of the interest rate collar of $(2.8) million and $(2.3) million during the three and six months ended July 1, 2023 respectively, and $(0.8) million and $(9.8) million during the three and six months ended July 2, 2022, respectively, in interest expense (income) 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 six months ended July 1, 2023 and July 2, 2022 related to derivatives not qualifying as hedges were included in the operating section of the Condensed Consolidated Statements of Cash Flows and were immaterial.

Stock Incentive Plans

Stock Incentive Plans	6 Months Ended
	Jul. 01, 2023
Share-Based Payment Arrangement [Abstract]
Stock Incentive Plans	Stock Incentive PlansDuring the six months ended July 1, 2023, the Company granted 451,425 performance-based restricted stock units (“PSUs”) and 694,204 time-based restricted stock units (“RSUs”) to eligible employees and non-employee directors under the National Vision Holdings, Inc. 2017 Omnibus Incentive Plan (the “2017 Omnibus Incentive Plan”). The PSUs granted in fiscal 2023 are settled after the end of the performance period (i.e., cliff vesting), which begins on the first day of our 2023 fiscal year and ends on the last day of our 2025 fiscal year, and are based on the Company’s achievement of certain performance targets. The RSUs granted in fiscal 2023 vest primarily in three equal installments.

Revenue From Contracts With Cus

Revenue From Contracts With Customers	6 Months Ended
	Jul. 01, 2023
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 Six Months Ended In thousands July 1, 2023 July 2, 2022 July 1, 2023 July 2, 2022 Revenues recognized at a point in time $ 485,743 $ 468,245 $ 1,008,681 $ 953,330 Revenues recognized over time 39,597 41,310 79,028 83,936 Total net revenue $ 525,340 $ 509,555 $ 1,087,709 $ 1,037,266 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 consideration of $4.2 million and $3.0 million during the three months ended July 1, 2023 and July 2, 2022, respectively, and $8.4 million and $5.7 million during the six months ended July 1, 2023 and July 2, 2022, respectively. 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 $0.1 million and $0.5 million for the three months ended July 1, 2023 and July 2, 2022, respectively, and $0.3 million and $0.6 million for the six months ended July 1, 2023 and July 2, 2022, respectively. Unsatisfied Performance Obligations (Contract Liabilities) During the three months ended July 1, 2023 and July 2, 2022, we recognized $23.0 million and $23.9 million, respectively, of deferred revenues outstanding at the beginning of each respective period. During the six months ended July 1, 2023 and July 2, 2022, we recognized $40.4 million and $43.3 million, respectively, of deferred revenues outstanding at the beginning of each respective period. Our deferred revenue balance as of July 1, 2023 was $86.0 million. We expect future revenue recognition of this balance of $41.7 million, $32.2 million, $10.7 million and $1.4 million in fiscal years 2023, 2024, 2025 and thereafter, respectively.

Leases

Leases	6 Months Ended
	Jul. 01, 2023
Leases [Abstract]
Leases	Leases Our lease costs for the three and six months ended July 1, 2023 and July 2, 2022 were as follows: Three Months Ended Six Months Ended In thousands July 1, 2023 July 2, 2022 July 1, 2023 July 2, 2022 Operating lease cost Fixed lease cost (a) $ 24,731 $ 22,488 $ 48,639 $ 44,437 Variable lease cost (b) 9,109 8,255 18,080 16,353 Sublease income (c) (921) (945) (1,862) (1,820) Finance lease cost Amortization of finance lease assets 893 1,080 1,750 2,161 Interest on finance lease liabilities 440 611 889 1,258 Net lease cost $ 34,252 $ 31,489 $ 67,496 $ 62,389 (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 well as 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 independent optometrists. In thousands Six Months Ended Other Information July 1, 2023 July 2, 2022 Operating cash outflows - operating leases $ 60,487 $ 47,337 Right of use assets acquired under operating leases $ 59,929 $ 58,180
Leases	Leases Our lease costs for the three and six months ended July 1, 2023 and July 2, 2022 were as follows: Three Months Ended Six Months Ended In thousands July 1, 2023 July 2, 2022 July 1, 2023 July 2, 2022 Operating lease cost Fixed lease cost (a) $ 24,731 $ 22,488 $ 48,639 $ 44,437 Variable lease cost (b) 9,109 8,255 18,080 16,353 Sublease income (c) (921) (945) (1,862) (1,820) Finance lease cost Amortization of finance lease assets 893 1,080 1,750 2,161 Interest on finance lease liabilities 440 611 889 1,258 Net lease cost $ 34,252 $ 31,489 $ 67,496 $ 62,389 (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 well as 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 independent optometrists. In thousands Six Months Ended Other Information July 1, 2023 July 2, 2022 Operating cash outflows - operating leases $ 60,487 $ 47,337 Right of use assets acquired under operating leases $ 59,929 $ 58,180

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jul. 01, 2023
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. On September 23, 2022, we were served with notice of a lawsuit filed by a former employee in California state court alleging, on behalf of a proposed class of employees, several violations of California wage and hour laws. On December 9, 2022, the case was removed to the federal District Court for the Northern District of California. On January 18, 2023, we were served with a related representative action filed in California state court pursuant to California’s Private Attorneys General Act. We filed an answer to this action on February 17, 2023. We believe that the claims in these lawsuits are without merit and intend to oppose the certification of a class and to defend the litigation vigorously. On June 6, 2023, the Company was served with notice of a former employee’s intention to file a representative action against the Company pursuant to California’s Private Attorneys General Act based on alleged violations of California’s wage and hour laws. On June 22, 2023, the Company was served with a related lawsuit filed by the former employee in California state court alleging, on behalf of a proposed class of employees, violations of California wage and hour laws. On July 24, 2023, the Company filed its answer and a notice of removal of the case to the federal District Court for the Southern District of California. On July 28, 2023, the Company filed a Notice of Related Cases, seeking for both the case currently pending in the Northern District of California and described in the paragraph above and this case to be assigned to the same Judge/Magistrate Judge in an effort to save judicial effort and avoid duplication of labor. We believe that the claims in these lawsuits are without merit and intend to oppose the certification of a class and to defend the litigation vigorously. On January 27, 2023, a purported class action complaint was filed in federal court in the Northern District of Georgia against the Company and two of the Company’s officers. The complaint alleges violations of Sections 10(b) and 20(a) of the Exchange Act and Rule 10b-5 for materially false and misleading statements made between May 2021 and May 2022. The complaint seeks unspecified damages as well as equitable relief. On March 28, 2023, the original plaintiff, City of Southfield General Employees Retirement System, and a new plaintiff, International Union of Operating Engineers, Local No. 793, Members Pension Benefit Trust of Ontario, filed a lead plaintiff motion, seeking to be appointed co-lead plaintiffs. On April 3, 2023, the Company along with its named officers filed a motion to dismiss the complaint. On May 19, 2023, the court granted the lead plaintiff motion. On June 30, 2023, the plaintiffs filed an Amended Complaint, which added a claim under Section 20A of the Exchange Act and extended the alleged class period to February 28, 2023. We believe that the claims alleged are without merit and intend to defend the litigation vigorously.

Segment Reporting

Segment Reporting	6 Months Ended
	Jul. 01, 2023
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. Refer to Note 12. “Subsequent Events” for developments related to the Legacy segment, AC Lens and FirstSight that occurred after July 1, 2023. 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), net 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 1, 2023 In thousands Owned & Host Legacy Corporate/Other Reconciliations Total Net product sales $ 339,311 $ 25,681 $ 63,288 $ 4,645 $ 432,925 Net sales of services and plans 79,443 12,784 26 162 92,415 Total net revenue 418,754 38,465 63,314 4,807 525,340 Costs of products 99,521 12,132 55,055 806 167,514 Costs of services and plans 73,958 6,336 31 — 80,325 Total costs applicable to revenue 173,479 18,468 55,086 806 247,839 SG&A 165,772 14,490 63,709 — 243,971 Asset impairment — — 893 — 893 Other expense (income), net — — (17) — (17) EBITDA $ 79,503 $ 5,507 $ (56,357) $ 4,001 Depreciation and amortization 24,929 Interest expense (income), net 1,836 Earnings before income taxes $ 5,889 Three Months Ended July 2, 2022 In thousands Owned & Host Legacy Corporate/Other Reconciliations Total Net product sales $ 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 Costs of products 95,264 11,506 54,499 2,092 163,361 Costs 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 Six Months Ended July 1, 2023 In thousands Owned & Host Legacy Corporate/Other Reconciliations Total Net product sales $ 714,147 $ 54,031 $ 128,129 $ 1,379 $ 897,686 Net sales of services and plans 166,513 25,709 50 (2,249) 190,023 Total net revenue 880,660 79,740 128,179 (870) 1,087,709 Costs of products 204,878 24,819 110,783 136 340,616 Costs of services and plans 149,011 12,211 53 — 161,275 Total costs applicable to revenue 353,889 37,030 110,836 136 501,891 SG&A 333,617 29,262 131,014 — 493,893 Asset impairment — — 1,280 — 1,280 Other expense (income), net — — (134) — (134) EBITDA $ 193,154 $ 13,448 $ (114,817) $ (1,006) Depreciation and amortization 49,742 Interest expense (income), net 6,703 Earnings before income taxes $ 34,334 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 (income), 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

Earnings Per Share

Earnings Per Share	6 Months Ended
	Jul. 01, 2023
Earnings Per Share [Abstract]
Earnings Per Share	Earnings Per Share Diluted EPS related to the 2025 Notes is calculated using the if-converted method; the number of dilutive shares is based on the initial conversion rate associated with the 2025 Notes. The 2025 Notes were dilutive for the six months ended July 2, 2022. A reconciliation of the numerators and denominators of the basic and diluted EPS calculations is as follows: Three Months Ended Six Months Ended In thousands, except EPS July 1, 2023 July 2, 2022 July 1, 2023 July 2, 2022 Net income $ 5,614 $ 9,734 $ 23,884 $ 39,881 After-tax interest expense for 2025 Notes — — — 4,721 Numerator for diluted EPS $ 5,614 $ 9,734 $ 23,884 $ 44,602 Weighted average shares outstanding for basic EPS 78,101 80,061 78,411 80,744 Effect of dilutive securities: Stock options 83 170 115 200 Restricted stock units 159 172 258 254 2025 Notes — — — 12,911 Weighted average shares outstanding for diluted EPS 78,343 80,403 78,784 94,109 Basic EPS $ 0.07 $ 0.12 $ 0.30 $ 0.49 Diluted EPS $ 0.07 $ 0.12 $ 0.30 $ 0.47 Anti-dilutive securities excluded from diluted weighted average common shares 13,790 13,625 13,614 464

Subsequent Events

Subsequent Events	6 Months Ended
	Jul. 01, 2023
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events On July 20, 2023, the Company received a notice of non-renewal from Walmart Inc. (“Walmart”) of the Management & Services Agreement by and between NVI and Walmart, dated as of May 1, 2012 (as amended, supplemented or otherwise modified from time to time, the “Walmart MSA”). In accordance with the terms of the Walmart MSA and the notice, the agreement will terminate as of February 23, 2024, unless an alternate date is agreed by the parties (the “Termination Date”). In connection with the termination of the Walmart MSA, that certain Amended and Restated Supplier Agreement between NVI and Walmart, dated as of January 17, 2017 (the “Walmart Supplier Agreement”), and certain other related agreements will also terminate as of the Termination Date. The Walmart MSA includes provisions governing the transition period and post-termination obligations of the parties. In connection with the termination of the Walmart MSA, the agreement between FirstSight Vision Services, Inc. (“FirstSight”), a wholly-owned subsidiary of the Company, and Walmart, which arranges for the provision by FirstSight of optometric services at optometric offices next to certain Walmart stores throughout California, will also terminate as of the Termination Date. Additionally, another wholly-owned subsidiary of the Company, Arlington Contacts Lens Service, Inc. (“AC Lens”), has delivered notices of non-renewal of the agreements it has with Walmart and its affiliate Sam’s Club regarding wholesale contact lenses distribution and related services, such that these agreements will terminate as of June 30, 2024, unless an earlier date is agreed by the parties. In connection with the termination of the Walmart MSA, the Company expects to record noncash goodwill and intangible asset impairment charges of approximately $60 million and $10 million, respectively, in the third quarter of fiscal 2023.

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended				6 Months Ended
	Jul. 01, 2023	Apr. 01, 2023	Jul. 02, 2022	Apr. 02, 2022	Jul. 01, 2023	Jul. 02, 2022
Pay vs Performance Disclosure
Net income	$ 5,614	$ 18,270	$ 9,734	$ 30,147	$ 23,884	$ 39,881

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended	6 Months Ended
	Jul. 01, 2023 shares	Jul. 01, 2023 shares
Trading Arrangements, by Individual
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false
Reade L. Fahs [Member]
Trading Arrangements, by Individual
Material Terms of Trading Arrangement		On June 2, 2023, L. Reade Fahs, the Company’s Chief Executive Officer, entered into a Rule 10b5-1 trading arrangement (the “Fahs 10b5-1 Sales Plan”) intended to satisfy the affirmative defense of Rule 10b5-1(c) under the Exchange Act. The Fahs 10b5-1 Sales Plan provides for the potential sale of up to an aggregate of 250,000 shares of the Company’s common stock until the earlier of (1) May 31, 2024 and (2) the date on which all such shares have been sold under the Fahs 10b5-1 Sales Plan.
Name	Reade Fahs
Title	Chief Executive Officer
Rule 10b5-1 Arrangement Adopted	true
Adoption Date	June 2, 2023
Arrangement Duration	364 days
Aggregate Available	250,000	250,000

Description of Business and B_2

Description of Business and Basis of Presentation (Policies)	6 Months Ended
	Jul. 01, 2023
Accounting Policies [Abstract]
Basis of Presentation and Principles of Consolidation	Basis of Presentation and Principles of Consolidation 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 December 31, 2022 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 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 December 31, 2022 included in the 2022 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 six months ended July 1, 2023. The condensed consolidated financial statements include our accounts and those of our wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Certain amounts within the footnotes to the financial statements for fiscal year 2022 have been reclassified to conform to the fiscal year 2023 presentation.
Fiscal Year	Fiscal Year Our fiscal year consists of 52 or 53 weeks ending on the Saturday closest to December 31. Fiscal year 2023 contains 52 weeks and will end on December 30, 2023. All three and six month periods presented herein contain 13 and 26 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 effective tax rate for the three months ended July 1, 2023 was 4.7%, reflecting our statutory federal and state rate of 25.4%, tax impacts of employee-related federal tax credits and effects of other permanent items. Our effective tax rate for the three months ended July 2, 2022 was 32.4%, reflecting our statutory federal and state rate of 25.5% and effects of other permanent items. Our effective tax rate for the six months ended July 1, 2023 was 30.4%, reflecting our statutory federal and state rate of 25.4%, tax impacts of consolidated VIEs and non-deductible compensation expenses, as well as other permanent items. Our effective tax rate for the six months ended July 2, 2022 was 28.6%, reflecting our statutory federal and state rate of 25.5% and effects of other permanent items.
Future Adoption of Accounting Pronouncements	Future Adoption of Accounting Pronouncements Reference Rate Reform. The Financial Accounting Standards Board (“FASB”) has issued guidance at various points over the last several years that 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”). We are currently able to apply this new guidance 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, 2024. Refer to Note 4. “Long-term Debt” and Note 5. “Interest Rate Derivatives” for more information on our transition from LIBOR to Term Secured Overnight Financing Rate (“Term SOFR”). 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 Sh_2

Details of Certain Balance Sheet Accounts (Tables)	6 Months Ended
	Jul. 01, 2023
Organization, Consolidation and Presentation of Financial Statements [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: Six Months Ended In thousands July 1, 2023 July 2, 2022 Cash, cash equivalents and restricted cash: Cash and cash equivalents $ 254,647 $ 254,382 Restricted cash included in other assets 1,337 1,223 $ 255,984 $ 255,605
Schedule of Accounts Receivable, Net	The following tables provide additional details of certain balance sheet accounts as of the dates shown below: In thousands As of As of Accounts receivable, net: Trade receivables $ 44,213 $ 41,622 Credit card receivables 18,599 23,311 Other receivables (1) 16,542 15,478 Allowance for credit losses (450) (519) $ 78,904 $ 79,892 (1) Includes Coronavirus Aid, Relief, and Economic Security (“CARES”) Act receivable in the amount of $9.0 million as of July 1, 2023 and December 31, 2022.
Schedule of Inventories	In thousands As of As of Inventories: Raw materials and work in process (1) $ 57,761 $ 64,786 Finished goods 63,110 58,372 $ 120,871 $ 123,158 (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 $ 50,228 $ 37,451 Self-insurance liabilities 9,381 8,744 Capital expenditures 10,770 9,594 Advertising 5,260 3,811 Reserves for customer returns and remakes 9,194 7,676 Legacy management & services agreement 5,038 6,488 Income taxes payable (1) 1,111 103 Supplies and other store support expenses 3,520 4,215 Other 18,444 16,143 $ 112,946 $ 94,225 (1) Income tax receivables of $4.6 million were included in Prepaid expenses and other current assets as of December 31, 2022.
Schedule of Other Non-current Liabilities	In thousands As of As of Other noncurrent liabilities: Self-insurance liabilities $ 6,874 $ 6,292 Other 2,387 2,608 $ 9,261 $ 8,900

Long-term Debt (Tables)

Long-term Debt (Tables)	6 Months Ended
	Jul. 01, 2023
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 $ 402,497 $ 402,497 Term A Loans, due June 13, 2028 150,000 150,000 Revolving Loans, due June 13, 2028 — — Long-term debt before unamortized discount and issuance costs 552,497 552,497 Unamortized discount and issuance costs - 2025 Notes (4,589) (5,696) Unamortized discount and issuance costs - Term A Loans (1,183) (570) Long-term debt less debt discount and issuance costs 546,725 546,231 Less current maturities (7,500) — Long-term debt - noncurrent portion 539,225 546,231 Finance lease obligations 18,958 21,294 Less current maturities (3,001) (4,137) Long-term debt and finance lease obligations, less current portion, discount, and issuance costs $ 555,182 $ 563,388 We recognized the following in Interest expense (income), net related to the 2025 Notes: Three Months Ended Six Months Ended In thousands July 1, 2023 July 2, 2022 July 1, 2023 July 2, 2022 Contractual interest expense $ 2,515 $ 2,516 $ 5,031 $ 5,031 Amortization of issuance costs $ 578 $ 560 $ 1,116 $ 1,080
Schedule of Maturities of Long-term Debt	Scheduled annual maturities of debt are as follows: Fiscal Period In thousands 2023 - remainder of fiscal year $ 3,750 2024 5,625 2025 411,872 2026 7,500 2027 7,500 Thereafter 116,250 $ 552,497

Revenue From Contracts With C_2

Revenue From Contracts With Customers (Tables)	6 Months Ended
	Jul. 01, 2023
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 Six Months Ended In thousands July 1, 2023 July 2, 2022 July 1, 2023 July 2, 2022 Revenues recognized at a point in time $ 485,743 $ 468,245 $ 1,008,681 $ 953,330 Revenues recognized over time 39,597 41,310 79,028 83,936 Total net revenue $ 525,340 $ 509,555 $ 1,087,709 $ 1,037,266

Leases (Tables)

Leases (Tables)	6 Months Ended
	Jul. 01, 2023
Leases [Abstract]
Schedule of Lease Cost	Our lease costs for the three and six months ended July 1, 2023 and July 2, 2022 were as follows: Three Months Ended Six Months Ended In thousands July 1, 2023 July 2, 2022 July 1, 2023 July 2, 2022 Operating lease cost Fixed lease cost (a) $ 24,731 $ 22,488 $ 48,639 $ 44,437 Variable lease cost (b) 9,109 8,255 18,080 16,353 Sublease income (c) (921) (945) (1,862) (1,820) Finance lease cost Amortization of finance lease assets 893 1,080 1,750 2,161 Interest on finance lease liabilities 440 611 889 1,258 Net lease cost $ 34,252 $ 31,489 $ 67,496 $ 62,389 (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 well as 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 independent optometrists.
Schedule of Operating Lease Cash Flows	In thousands Six Months Ended Other Information July 1, 2023 July 2, 2022 Operating cash outflows - operating leases $ 60,487 $ 47,337 Right of use assets acquired under operating leases $ 59,929 $ 58,180

Segment Reporting (Tables)

Segment Reporting (Tables)	6 Months Ended
	Jul. 01, 2023
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 July 1, 2023 In thousands Owned & Host Legacy Corporate/Other Reconciliations Total Net product sales $ 339,311 $ 25,681 $ 63,288 $ 4,645 $ 432,925 Net sales of services and plans 79,443 12,784 26 162 92,415 Total net revenue 418,754 38,465 63,314 4,807 525,340 Costs of products 99,521 12,132 55,055 806 167,514 Costs of services and plans 73,958 6,336 31 — 80,325 Total costs applicable to revenue 173,479 18,468 55,086 806 247,839 SG&A 165,772 14,490 63,709 — 243,971 Asset impairment — — 893 — 893 Other expense (income), net — — (17) — (17) EBITDA $ 79,503 $ 5,507 $ (56,357) $ 4,001 Depreciation and amortization 24,929 Interest expense (income), net 1,836 Earnings before income taxes $ 5,889 Three Months Ended July 2, 2022 In thousands Owned & Host Legacy Corporate/Other Reconciliations Total Net product sales $ 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 Costs of products 95,264 11,506 54,499 2,092 163,361 Costs 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 Six Months Ended July 1, 2023 In thousands Owned & Host Legacy Corporate/Other Reconciliations Total Net product sales $ 714,147 $ 54,031 $ 128,129 $ 1,379 $ 897,686 Net sales of services and plans 166,513 25,709 50 (2,249) 190,023 Total net revenue 880,660 79,740 128,179 (870) 1,087,709 Costs of products 204,878 24,819 110,783 136 340,616 Costs of services and plans 149,011 12,211 53 — 161,275 Total costs applicable to revenue 353,889 37,030 110,836 136 501,891 SG&A 333,617 29,262 131,014 — 493,893 Asset impairment — — 1,280 — 1,280 Other expense (income), net — — (134) — (134) EBITDA $ 193,154 $ 13,448 $ (114,817) $ (1,006) Depreciation and amortization 49,742 Interest expense (income), net 6,703 Earnings before income taxes $ 34,334 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 (income), 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

Earnings Per Share (Tables)

Earnings Per Share (Tables)	6 Months Ended
	Jul. 01, 2023
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 Six Months Ended In thousands, except EPS July 1, 2023 July 2, 2022 July 1, 2023 July 2, 2022 Net income $ 5,614 $ 9,734 $ 23,884 $ 39,881 After-tax interest expense for 2025 Notes — — — 4,721 Numerator for diluted EPS $ 5,614 $ 9,734 $ 23,884 $ 44,602 Weighted average shares outstanding for basic EPS 78,101 80,061 78,411 80,744 Effect of dilutive securities: Stock options 83 170 115 200 Restricted stock units 159 172 258 254 2025 Notes — — — 12,911 Weighted average shares outstanding for diluted EPS 78,343 80,403 78,784 94,109 Basic EPS $ 0.07 $ 0.12 $ 0.30 $ 0.49 Diluted EPS $ 0.07 $ 0.12 $ 0.30 $ 0.47 Anti-dilutive securities excluded from diluted weighted average common shares 13,790 13,625 13,614 464

Description of Business and B_3

Description of Business and Basis of Presentation - Nature of Operations (Details)	Jul. 01, 2023 store storeBrand	Dec. 31, 2022 store
Accounting Policies [Abstract]
Number of retail optical locations | store	1,381	1,354
Number of store brands | storeBrand	5

Description of Business and B_4

Description of Business and Basis of Presentation - Basis of Presentation and Principles of Consolidation (Details) $ in Thousands	Jul. 01, 2023 USD ($) corporation	Dec. 31, 2022 USD ($)
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Number of corporations | corporation	32
Assets	$ 2,333,928	$ 2,291,246
Variable Interest Entity, Primary Beneficiary
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Assets	6,200	7,900
Liabilities	$ 7,900	$ 8,300

Description of Business and B_5

Description of Business and Basis of Presentation - Income Taxes (Details)	3 Months Ended		6 Months Ended
	Jul. 01, 2023	Jul. 02, 2022	Jul. 01, 2023	Jul. 02, 2022
Accounting Policies [Abstract]
Effective income tax rate (percent)	4.70%	32.40%	30.40%	28.60%
Statutory federal and state rate (percent)	25.40%	25.50%	25.40%	25.50%

Description of Business and B_6

Description of Business and Basis of Presentation - Share Repurchases (Details) - USD ($) shares in Millions, $ in Millions	6 Months Ended
	Jul. 01, 2023	Jul. 02, 2022
Accounting Policies [Abstract]
Shares repurchased (in shares)	1.1	2.7
Repurchase of common stock, value	$ 25	$ 80
Stock repurchase program, remaining authorized repurchase amount	$ 25

Description of Business and B_7

Description of Business and Basis of Presentation - Investment (Details) $ in Millions	3 Months Ended
	Jul. 01, 2023 USD ($)
Accounting Policies [Abstract]
Investments	$ 0.9
Investments, maximum milestone payment amount	$ 2.4

Details of Certain Balance Sh_3

Details of Certain Balance Sheet Accounts - Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands	Jul. 01, 2023	Dec. 31, 2022	Jul. 02, 2022	Jan. 01, 2022
Cash, cash equivalents and restricted cash:
Cash and cash equivalents	$ 254,647	$ 229,425	$ 254,382
Restricted cash included in other assets	1,337		1,223
Total cash, cash equivalents and restricted cash	$ 255,984	$ 230,624	$ 255,605	$ 306,876

Details of Certain Balance Sh_4

Details of Certain Balance Sheet Accounts - Accounts Receivable, Net (Details) - USD ($) $ in Thousands	Jul. 01, 2023	Dec. 31, 2022
Accounts receivable, net:
Allowance for credit losses	$ (450)	$ (519)
Accounts receivable, net of allowance	78,904	79,892
The CARES Act
Accounts receivable, net:
Government assistance receivable	9,000	9,000
Trade receivables
Accounts receivable, net:
Accounts receivable, gross	44,213	41,622
Credit card receivables
Accounts receivable, net:
Accounts receivable, gross	18,599	23,311
Other receivables
Accounts receivable, net:
Accounts receivable, gross	$ 16,542	$ 15,478

Details of Certain Balance Sh_5

Details of Certain Balance Sheet Accounts - Inventories (Details) - USD ($) $ in Thousands	Jul. 01, 2023	Dec. 31, 2022
Inventories:
Raw materials and work in process	$ 57,761	$ 64,786
Finished goods	63,110	58,372
Inventories	$ 120,871	$ 123,158

Details of Certain Balance Sh_6

Details of Certain Balance Sheet Accounts - Other Payables and Accrued Expenses (Details) - USD ($) $ in Thousands	Jul. 01, 2023	Dec. 31, 2022
Other payables and accrued expenses:
Associate compensation and benefits	$ 50,228	$ 37,451
Self-insurance liabilities	9,381	8,744
Capital expenditures	10,770	9,594
Advertising	5,260	3,811
Reserves for customer returns and remakes	9,194	7,676
Legacy management & services agreement	5,038	6,488
Income taxes payable	1,111	103
Supplies and other store support expenses	3,520	4,215
Other	18,444	16,143
Total other payables and accrued expenses	$ 112,946	94,225
Income tax receivables		$ 4,600

Details of Certain Balance Sh_7

Details of Certain Balance Sheet Accounts - Other Non-Current Liabilities (Details) - USD ($) $ in Thousands	Jul. 01, 2023	Dec. 31, 2022
Other noncurrent liabilities:
Self-insurance liabilities	$ 6,874	$ 6,292
Other	2,387	2,608
Total other non-current liabilities	$ 9,261	$ 8,900

Fair Value Measurement (Details

Fair Value Measurement (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jul. 01, 2023	Jul. 02, 2022	Jul. 01, 2023	Jul. 02, 2022	Dec. 31, 2022
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Asset impairment	$ 893,000	$ 3,509,000	$ 1,280,000	$ 3,915,000
Estimated fair value of impaired assets			800,000	$ 4,000,000
Aggregate principal amount	552,497,000		552,497,000		$ 552,497,000
Convertible Senior Notes | 2025 Notes
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Aggregate principal amount	$ 402,497,000		$ 402,497,000		402,497,000
Stated interest rate (percent)	2.50%		2.50%
Convertible Senior Notes | 2025 Notes | Estimated fair value | Level 2
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Estimated fair value of convertible notes	$ 422,000,000		$ 422,000,000		$ 553,900,000
Term A Loans, due June 13, 2028 | First Lien Term A Loan and Revolving Loans | Revolving Loans, due June 13, 2028 | SOFR
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Aggregate principal amount	150,000,000		150,000,000
Line of credit facility borrowing capacity	$ 300,000,000		$ 300,000,000
Minimum
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Discount rate used in impairment analysis (percent)			10.80%
Maximum
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Discount rate used in impairment analysis (percent)			11.30%

Long-term Debt - Summary of Lon

Long-term Debt - Summary of Long-term Debt (Details) - USD ($) $ in Thousands	Jul. 01, 2023	Dec. 31, 2022
Debt Instrument [Line Items]
Long-term debt before unamortized discount and issuance costs	$ 552,497	$ 552,497
Long-term debt less debt discount and issuance costs	546,725	546,231
Less current maturities	(7,500)	0
Long-term debt - noncurrent portion	539,225	546,231
Finance lease obligations	18,958	21,294
Less current maturities	(3,001)	(4,137)
Long-term debt and finance lease obligations, less current portion, discount, and issuance costs	555,182	563,388
Credit Facility | Revolving Loans, due June 13, 2028
Debt Instrument [Line Items]
Long-term debt before unamortized discount and issuance costs	0	0
2025 Notes | Convertible Senior Notes
Debt Instrument [Line Items]
Long-term debt before unamortized discount and issuance costs	402,497	402,497
Unamortized discount and issuance cost	(4,589)	(5,696)
Term A Loans, due June 13, 2028 | Term Loan
Debt Instrument [Line Items]
Long-term debt before unamortized discount and issuance costs	150,000	150,000
Unamortized discount and issuance cost	$ (1,183)	$ (570)

Long-term Debt - Maturities of

Long-term Debt - Maturities of Debt (Details) - USD ($) $ in Thousands	Jul. 01, 2023	Dec. 31, 2022
Schedule of annual maturities of debt:
2023 - remainder of fiscal year	$ 3,750
2024	5,625
2025	411,872
2026	7,500
2027	7,500
Thereafter	116,250
Total	$ 552,497	$ 552,497

Long-term Debt - Narrative (Det

Long-term Debt - Narrative (Details) $ in Millions		3 Months Ended	6 Months Ended
	Jun. 13, 2023 USD ($)	Jul. 01, 2023 USD ($)	Jul. 01, 2023 USD ($)
Credit Agreement | Secured Overnight Financing Rate (SOFR)
Debt Instrument [Line Items]
Basis spread on variable rate (percent)	0.10%
Credit Agreement | Secured Overnight Financing Rate (SOFR) | Minimum
Debt Instrument [Line Items]
Basis spread on variable rate (percent)	0%
Line of Credit | Credit Agreement
Debt Instrument [Line Items]
Debt instrument, term	91 days
Redemption value	$ 25
Quarterly installments rate (percent)	5%
Aggregate principal amount	$ 114.4
Write off of deferred debt issuance costs		$ 0.2	$ 0.2
Refinancing fees		0.2	0.2
Line of Credit | Credit Agreement | Debt Covenant Term One
Debt Instrument [Line Items]
Debt covenant, minimum EBITDA ratio	2.50
Line of Credit | Credit Agreement | Debt Covenant Term Two
Debt Instrument [Line Items]
Debt covenant, minimum EBITDA ratio	2.50
Debt covenant, maximum EBITDA ratio	1.75
Line of Credit | Credit Agreement | Debt Covenant Term Three
Debt Instrument [Line Items]
Debt covenant, minimum EBITDA ratio	1.75
Debt covenant, maximum EBITDA ratio	0.75
Line of Credit | Credit Agreement | Debt Covenant Term Four
Debt Instrument [Line Items]
Debt covenant, maximum EBITDA ratio	0.75
Line of Credit | Credit Agreement | Secured Overnight Financing Rate (SOFR)
Debt Instrument [Line Items]
Basis spread on variable rate (percent)	1.75%
Line of Credit | Credit Agreement | Secured Overnight Financing Rate (SOFR) | Debt Covenant Term One
Debt Instrument [Line Items]
Basis spread on variable rate (percent)	2.25%
Line of Credit | Credit Agreement | Secured Overnight Financing Rate (SOFR) | Debt Covenant Term Two
Debt Instrument [Line Items]
Basis spread on variable rate (percent)	2%
Line of Credit | Credit Agreement | Secured Overnight Financing Rate (SOFR) | Debt Covenant Term Three
Debt Instrument [Line Items]
Basis spread on variable rate (percent)	1.75%
Line of Credit | Credit Agreement | Secured Overnight Financing Rate (SOFR) | Debt Covenant Term Four
Debt Instrument [Line Items]
Basis spread on variable rate (percent)	1.50%
Line of Credit | Credit Agreement | ABR
Debt Instrument [Line Items]
Basis spread on variable rate (percent)	0.75%
Line of Credit | Credit Agreement | ABR | Debt Covenant Term One
Debt Instrument [Line Items]
Basis spread on variable rate (percent)	1.25%
Line of Credit | Credit Agreement | ABR | Debt Covenant Term Two
Debt Instrument [Line Items]
Basis spread on variable rate (percent)	1%
Line of Credit | Credit Agreement | ABR | Debt Covenant Term Three
Debt Instrument [Line Items]
Basis spread on variable rate (percent)	0.75%
Line of Credit | Credit Agreement | ABR | Debt Covenant Term Four
Debt Instrument [Line Items]
Basis spread on variable rate (percent)	0.50%
Line of Credit | Credit Agreement | Revolving Credit Facility | Other Assets
Debt Instrument [Line Items]
Debt issuance costs		2	2
Line of Credit | Credit Agreement | Term Loan | Other Noncurrent Liabilities
Debt Instrument [Line Items]
Debt issuance costs		$ 0.9	$ 0.9
Convertible Senior Notes | 2025 Notes
Debt Instrument [Line Items]
Remaining period for the unamortized debt issuance costs (in years)			2 years
Principal balance converted			$ 0

Long-term Debt - Interest Expen

Long-term Debt - Interest Expense (Details) - 2025 Notes - Convertible Senior Notes - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 01, 2023	Jul. 02, 2022	Jul. 01, 2023	Jul. 02, 2022
Debt Instrument [Line Items]
Contractual interest expense	$ 2,515	$ 2,516	$ 5,031	$ 5,031
Amortization of issuance costs	$ 578	$ 560	$ 1,116	$ 1,080

Interest Rate Derivatives (Deta

Interest Rate Derivatives (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jul. 01, 2023	Jul. 02, 2022	Jul. 01, 2023	Jul. 02, 2022	Dec. 31, 2022
Derivative [Line Items]
Estimated reclassification from AOCL to earnings in next 12 months	$ 0.8		$ 0.8
Derivative, Gain, Statement of Income or Comprehensive Income [Extensible Enumeration]	Nonoperating Income (Expense)	Nonoperating Income (Expense)	Nonoperating Income (Expense)	Nonoperating Income (Expense)
Interest rate collar
Derivative [Line Items]
Notional amount	$ 325		$ 325
(Gains) losses on change in fair value of derivative	(2.8)	$ (0.8)	(2.3)	$ (9.8)
Interest rate collar | Not designated as hedge
Derivative [Line Items]
Fair value of derivative assets	11.3		11.3		$ 14.1
Interest rate collar | Not designated as hedge | Other Payables and Accrued Expenses
Derivative [Line Items]
Fair value of derivative liabilities	10.8		10.8
Interest rate collar | Not designated as hedge | Other Noncurrent Liabilities
Derivative [Line Items]
Fair value of derivative liabilities	$ 0.5		$ 0.5
Interest rate collar | Not designated as hedge | Prepaid Expenses and Other Current Assets
Derivative [Line Items]
Fair value of derivative assets					10
Interest rate collar | Not designated as hedge | Other Assets
Derivative [Line Items]
Fair value of derivative assets					$ 4.1

Stock Incentive Plans (Details)

Stock Incentive Plans (Details)	6 Months Ended
	Jul. 01, 2023 installment shares
PSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Awards granted (in shares)	451,425
RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Awards granted (in shares)	694,204
Number of equal vesting installments | installment	3

Revenue From Contracts With C_3

Revenue From Contracts With Customers - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jul. 01, 2023	Jul. 02, 2022	Jul. 01, 2023	Jul. 02, 2022
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	$ 4.2	$ 3	$ 8.4	$ 5.7
Credit loss expense	0.1	0.5	0.3	0.6
Previously deferred revenue recognized	23	$ 23.9	40.4	$ 43.3
Deferred revenue	86		86
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-07-03
Disaggregation of Revenue [Line Items]
Performance obligations expected to be satisfied	$ 41.7		$ 41.7
Performance obligations expected to be satisfied, expected timing	6 months		6 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01
Disaggregation of Revenue [Line Items]
Performance obligations expected to be satisfied	$ 32.2		$ 32.2
Performance obligations expected to be satisfied, expected timing	1 year		1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-12-31
Disaggregation of Revenue [Line Items]
Performance obligations expected to be satisfied	$ 10.7		$ 10.7
Performance obligations expected to be satisfied, expected timing	1 year		1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-12-30
Disaggregation of Revenue [Line Items]
Performance obligations expected to be satisfied	$ 1.4		$ 1.4
Performance obligations expected to be satisfied, expected timing
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		6 Months Ended
	Jul. 01, 2023	Jul. 02, 2022	Jul. 01, 2023	Jul. 02, 2022
Disaggregation of Revenue [Line Items]
Total net revenue	$ 525,340	$ 509,555	$ 1,087,709	$ 1,037,266
Revenues recognized at a point in time
Disaggregation of Revenue [Line Items]
Total net revenue	485,743	468,245	1,008,681	953,330
Revenues recognized over time
Disaggregation of Revenue [Line Items]
Total net revenue	$ 39,597	$ 41,310	$ 79,028	$ 83,936

Leases - Lease Costs (Details)

Leases - Lease Costs (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 01, 2023	Jul. 02, 2022	Jul. 01, 2023	Jul. 02, 2022
Lease cost
Fixed lease cost	$ 24,731	$ 22,488	$ 48,639	$ 44,437
Variable lease cost	9,109	8,255	18,080	16,353
Sublease income	(921)	(945)	(1,862)	(1,820)
Amortization of finance lease assets	893	1,080	1,750	2,161
Interest on finance lease liabilities	440	611	889	1,258
Net lease cost	$ 34,252	$ 31,489	$ 67,496	$ 62,389

Leases - Other Information (Det

Leases - Other Information (Details) - USD ($) $ in Thousands	6 Months Ended
	Jul. 01, 2023	Jul. 02, 2022
Cash paid for amounts included in the measurement of lease liabilities
Operating cash outflows - operating leases	$ 60,487	$ 47,337
Right of use assets acquired under operating leases	$ 59,929	$ 58,180

Commitments and Contingencies (

Commitments and Contingencies (Details)	Jan. 27, 2023 officer
Northern District of Georgia - Federal Court
Loss Contingencies [Line Items]
Number of company officers filed a complaint	2

Segment Reporting - Narrative (

Segment Reporting - Narrative (Details)	6 Months Ended
	Jul. 01, 2023 segment
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		6 Months Ended
	Jul. 01, 2023	Jul. 02, 2022	Jul. 01, 2023	Jul. 02, 2022
Segment Reporting Information [Line Items]
Total net revenue	$ 525,340	$ 509,555	$ 1,087,709	$ 1,037,266
Total costs applicable to revenue	247,839	234,567	501,891	470,604
SG&A	243,971	227,829	493,893	456,383
Asset impairment	893	3,509	1,280	3,915
Other expense (income), net	(17)	34	(134)	265
Depreciation and amortization	24,929	25,245	49,742	50,396
Interest expense (income), net	1,836	3,963	6,703	(181)
Earnings before income taxes	5,889	14,408	34,334	55,884
Products
Segment Reporting Information [Line Items]
Total net revenue	432,925	421,600	897,686	854,853
Total costs applicable to revenue	167,514	163,361	340,616	327,580
Services and plans
Segment Reporting Information [Line Items]
Total net revenue	92,415	87,955	190,023	182,413
Total costs applicable to revenue	80,325	71,206	161,275	143,024
Operating Segments | Owned & Host
Segment Reporting Information [Line Items]
Total net revenue	418,754	399,158	880,660	837,077
Total costs applicable to revenue	173,479	160,578	353,889	327,219
SG&A	165,772	156,234	333,617	313,695
Asset impairment	0	0	0	0
Other expense (income), net	0	0	0	0
EBITDA	79,503	82,346	193,154	196,163
Operating Segments | Owned & Host | Products
Segment Reporting Information [Line Items]
Total net revenue	339,311	326,000	714,147	683,904
Total costs applicable to revenue	99,521	95,264	204,878	196,304
Operating Segments | Owned & Host | Services and plans
Segment Reporting Information [Line Items]
Total net revenue	79,443	73,158	166,513	153,173
Total costs applicable to revenue	73,958	65,314	149,011	130,915
Operating Segments | Legacy
Segment Reporting Information [Line Items]
Total net revenue	38,465	37,837	79,740	79,995
Total costs applicable to revenue	18,468	17,398	37,030	36,522
SG&A	14,490	14,758	29,262	29,864
Asset impairment	0	0	0	0
Other expense (income), net	0	0	0	0
EBITDA	5,507	5,681	13,448	13,609
Operating Segments | Legacy | Products
Segment Reporting Information [Line Items]
Total net revenue	25,681	24,301	54,031	51,931
Total costs applicable to revenue	12,132	11,506	24,819	24,413
Operating Segments | Legacy | Services and plans
Segment Reporting Information [Line Items]
Total net revenue	12,784	13,536	25,709	28,064
Total costs applicable to revenue	6,336	5,892	12,211	12,109
Operating Segments | Corporate/Other
Segment Reporting Information [Line Items]
Total net revenue	63,314	61,885	128,179	123,582
Total costs applicable to revenue	55,086	54,499	110,836	107,964
SG&A	63,709	56,837	131,014	112,824
Asset impairment	893	3,509	1,280	3,915
Other expense (income), net	(17)	34	(134)	265
EBITDA	(56,357)	(52,994)	(114,817)	(101,386)
Operating Segments | Corporate/Other | Products
Segment Reporting Information [Line Items]
Total net revenue	63,288	61,885	128,129	123,582
Total costs applicable to revenue	55,055	54,499	110,783	107,964
Operating Segments | Corporate/Other | Services and plans
Segment Reporting Information [Line Items]
Total net revenue	26	0	50	0
Total costs applicable to revenue	31	0	53	0
Reconciliations
Segment Reporting Information [Line Items]
Total net revenue	4,807	10,675	(870)	(3,388)
Total costs applicable to revenue	806	2,092	136	(1,101)
SG&A	0	0	0	0
Asset impairment	0	0	0	0
Other expense (income), net	0	0	0	0
EBITDA	4,001	8,583	(1,006)	(2,287)
Reconciliations | Products
Segment Reporting Information [Line Items]
Total net revenue	4,645	9,414	1,379	(4,564)
Total costs applicable to revenue	806	2,092	136	(1,101)
Reconciliations | Services and plans
Segment Reporting Information [Line Items]
Total net revenue	162	1,261	(2,249)	1,176
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				6 Months Ended
	Jul. 01, 2023	Apr. 01, 2023	Jul. 02, 2022	Apr. 02, 2022	Jul. 01, 2023	Jul. 02, 2022
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Net income	$ 5,614	$ 18,270	$ 9,734	$ 30,147	$ 23,884	$ 39,881
After-tax interest expense for 2025 Notes	0		0		0	4,721
Numerator for diluted EPS	$ 5,614		$ 9,734		$ 23,884	$ 44,602
Weighted average shares outstanding for basic EPS (in shares)	78,101		80,061		78,411	80,744
Effect of dilutive securities:
Stock options (in shares)	83		170		115	200
Restricted stock units (in shares)	159		172		258	254
2025 Notes (in shares)	0		0		0	12,911
Weighted average shares outstanding for diluted EPS (in shares)	78,343		80,403		78,784	94,109
Basic EPS (in usd per share)	$ 0.07		$ 0.12		$ 0.30	$ 0.49
Diluted EPS (in usd per share)	$ 0.07		$ 0.12		$ 0.30	$ 0.47
Stock Options, Restricted Stock Units (RSUs) and Convertible Notes
Effect of dilutive securities:
Anti-dilutive securities excluded from diluted weighted average common shares (in shares)	13,790		13,625		13,614	464

Subsequent Events (Details)

Subsequent Events (Details) - Forecast $ in Millions	3 Months Ended
	Sep. 30, 2023 USD ($)
Subsequent Event [Line Items]
Goodwill impairment	$ 60
Impairment of indefinite-lived intangible assets	$ 10