Cover
Cover - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 30, 2023 | Feb. 16, 2024 | Jul. 01, 2023 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 30, 2023 | ||
Current Fiscal Year End Date | --12-30 | ||
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 Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
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 | ||
ICFR Auditor Attestation Flag | true | ||
Document Financial Statement Error Correction [Flag] | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 1.7 | ||
Entity Common Stock, Shares Outstanding | 78,312,620 | ||
Documents Incorporated by Reference | Portions of the registrant's definitive Proxy Statement for its 2024 Annual Meeting of Stockholders are incorporated by reference into Part III of this Annual Report on Form 10-K. The Proxy Statement will be filed with the Securities and Exchange Commission within 120 days of the registrant’s fiscal year ended December 30, 2023. | ||
Entity Central Index Key | 0001710155 | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus (Q1,Q2,Q3,FY) | FY | ||
Amendment Flag | false |
Audit Information
Audit Information | 12 Months Ended |
Dec. 30, 2023 | |
Audit Information [Abstract] | |
Auditor Name | Deloitte & Touche LLP |
Auditor Location | Atlanta, GA |
Auditor Firm ID | 34 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 30, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 149,896 | $ 229,425 |
Accounts receivable, net | 86,854 | 79,892 |
Inventories | 119,908 | 123,158 |
Prepaid expenses and other current assets | 40,012 | 41,361 |
Total current assets | 396,670 | 473,836 |
Noncurrent assets | ||
Property and equipment, net | 362,563 | 359,775 |
Goodwill | 717,544 | 777,613 |
Trademarks and trade names | 240,547 | 240,547 |
Other intangible assets, net | 20,272 | 34,669 |
Right of use assets | 406,579 | 382,825 |
Other assets | 28,336 | 21,981 |
Total noncurrent assets | 1,775,841 | 1,817,410 |
Total assets | 2,172,511 | 2,291,246 |
Current liabilities: | ||
Accounts payable | 67,556 | 65,276 |
Other payables and accrued expenses | 123,288 | 94,225 |
Unearned revenue | 48,117 | 41,239 |
Deferred revenue | 62,867 | 62,201 |
Current maturities of long-term debt and finance lease obligations | 10,480 | 4,137 |
Current operating lease obligations | 85,392 | 77,186 |
Total current liabilities | 397,700 | 344,264 |
Noncurrent liabilities: | ||
Long-term debt and finance lease obligations, less current portion and debt discount | 450,771 | 563,388 |
Noncurrent operating lease obligations | 376,814 | 358,110 |
Deferred revenue | 21,459 | 21,601 |
Other liabilities | 8,465 | 8,900 |
Deferred income taxes, net | 87,884 | 93,870 |
Total noncurrent liabilities | 945,393 | 1,045,869 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Common stock, $0.01 par value; 200,000 shares authorized; 84,831 and 84,273 shares issued as of December 30, 2023 and December 31, 2022, respectively; 78,311 and 78,992 shares outstanding as of December 30, 2023 and December 31, 2022, respectively | 848 | 842 |
Additional paid-in capital | 788,967 | 767,112 |
Accumulated other comprehensive loss | (419) | (1,179) |
Retained earnings | 254,616 | 320,517 |
Treasury stock, at cost; 6,520 and 5,281 shares as of December 30, 2023 and December 31, 2022, respectively | (214,594) | (186,179) |
Total stockholders’ equity | 829,418 | 901,113 |
Total liabilities and stockholders’ equity | $ 2,172,511 | $ 2,291,246 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 30, 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) | 84,831,000 | 84,273,000 |
Common stock, outstanding (in shares) | 78,311,000 | 78,992,000 |
Treasury stock, at cost (in shares) | 6,520,000 | 5,281,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Revenue: | |||
Total net revenue | $ 2,126,468 | $ 2,005,404 | $ 2,079,525 |
Costs applicable to revenue (exclusive of depreciation and amortization): | |||
Total costs applicable to revenue | 1,000,910 | 925,587 | 904,779 |
Operating expenses: | |||
Selling, general and administrative expenses | 991,883 | 915,355 | 900,798 |
Depreciation and amortization | 98,252 | 99,956 | 97,089 |
Asset impairment | 82,413 | 5,783 | 4,427 |
Other expense (income), net | (164) | (2,552) | (2,505) |
Total operating expenses | 1,172,384 | 1,018,542 | 999,809 |
Income (loss) from operations | (46,826) | 61,275 | 174,937 |
Interest expense, net | 14,339 | 462 | 25,612 |
Loss on extinguishment of debt | 599 | 0 | 0 |
Earnings (loss) before income taxes | (61,764) | 60,813 | 149,325 |
Income tax provision | 4,137 | 18,691 | 21,081 |
Net income (loss) | $ (65,901) | $ 42,122 | $ 128,244 |
Earnings (loss) per share: | |||
Basic (in usd per share) | $ (0.84) | $ 0.53 | $ 1.57 |
Diluted (in usd per share) | $ (0.84) | $ 0.52 | $ 1.43 |
Weighted average shares outstanding: | |||
Basic (in shares) | 78,313 | 79,831 | 81,820 |
Diluted (in shares) | 78,313 | 80,298 | 96,134 |
Comprehensive income (loss): | |||
Net income (loss) | $ (65,901) | $ 42,122 | $ 128,244 |
Unrealized gain on hedge instruments | 1,019 | 1,020 | 6,158 |
Tax provision of unrealized gain on hedge instruments | 259 | 259 | 3,698 |
Comprehensive income (loss) | (65,141) | 42,883 | 130,704 |
Products | |||
Revenue: | |||
Total net revenue | 1,744,136 | 1,648,315 | 1,718,344 |
Costs applicable to revenue (exclusive of depreciation and amortization): | |||
Total costs applicable to revenue | 664,589 | 636,324 | 633,116 |
Services and plans | |||
Revenue: | |||
Total net revenue | 382,332 | 357,089 | 361,181 |
Costs applicable to revenue (exclusive of depreciation and amortization): | |||
Total costs applicable to revenue | $ 336,321 | $ 289,263 | $ 271,663 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Cumulative effect of change in accounting principle | Balances, as adjusted | Common Stock | Common Stock Balances, as adjusted | Additional Paid-In Capital | Additional Paid-In Capital Cumulative effect of change in accounting principle | Additional Paid-In Capital Balances, as adjusted | Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss Balances, as adjusted | Retained Earnings | Retained Earnings Cumulative effect of change in accounting principle | Retained Earnings Balances, as adjusted | Treasury Stock | Treasury Stock Balances, as adjusted |
Beginning balance (in shares) at Jan. 02, 2021 | 81,239 | 81,239 | |||||||||||||
Beginning balance at Jan. 02, 2021 | $ 906,502 | $ (64,114) | $ 842,388 | $ 821 | $ 821 | $ 795,697 | $ (71,385) | $ 724,312 | $ (4,400) | $ (4,400) | $ 142,880 | $ 7,271 | $ 150,151 | $ (28,496) | $ (28,496) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||
Issuance of common stock (in shares) | 1,657 | ||||||||||||||
Issuance of common stock | 11,482 | $ 17 | 11,465 | ||||||||||||
Stock-based compensation | $ 14,701 | 14,701 | |||||||||||||
Purchase of treasury stock (in shares) | (1,400) | (1,491) | |||||||||||||
Purchase of treasury stock | $ (73,295) | (73,295) | |||||||||||||
Unrealized gain on hedge instruments, net of tax | 2,460 | 2,460 | |||||||||||||
Net income (loss) | 128,244 | 128,244 | |||||||||||||
Ending balance (in shares) at Jan. 01, 2022 | 81,405 | ||||||||||||||
Ending balance 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) | 433 | ||||||||||||||
Issuance of common stock | 3,286 | $ 4 | 3,282 | ||||||||||||
Stock-based compensation | $ 13,353 | 13,353 | |||||||||||||
Purchase of treasury stock (in shares) | (2,700) | (2,846) | |||||||||||||
Purchase of treasury stock | $ (84,388) | (84,388) | |||||||||||||
Unrealized gain on hedge instruments, net of tax | 761 | 761 | |||||||||||||
Repurchase of 2025 Notes | (1) | (1) | |||||||||||||
Net income (loss) | $ 42,122 | 42,122 | |||||||||||||
Ending balance (in shares) at Dec. 31, 2022 | 78,992 | 78,992 | |||||||||||||
Ending balance 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) | 558 | ||||||||||||||
Issuance of common stock | 1,838 | $ 6 | 1,832 | ||||||||||||
Stock-based compensation | $ 20,023 | 20,023 | |||||||||||||
Purchase of treasury stock (in shares) | (1,100) | (1,239) | |||||||||||||
Purchase of treasury stock | $ (28,415) | (28,415) | |||||||||||||
Unrealized gain on hedge instruments, net of tax | 760 | 760 | |||||||||||||
Net income (loss) | $ (65,901) | (65,901) | |||||||||||||
Ending balance (in shares) at Dec. 30, 2023 | 78,311 | 78,311 | |||||||||||||
Ending balance at Dec. 30, 2023 | $ 829,418 | $ 848 | $ 788,967 | $ (419) | $ 254,616 | $ (214,594) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Cash flows from operating activities: | |||
Net income (loss) | $ (65,901) | $ 42,122 | $ 128,244 |
Adjustments to reconcile net income (loss) to cash provided by operating activities: | |||
Depreciation and amortization | 98,252 | 99,956 | 97,089 |
Amortization of debt discount and deferred financing costs | 3,351 | 3,314 | 4,321 |
Amortization of cloud computing implementation costs | 3,170 | 6,012 | 4,714 |
Asset impairment | 82,413 | 5,783 | 4,427 |
Deferred income tax expense (benefit) | (5,989) | 11,024 | 16,701 |
Stock-based compensation expense | 20,174 | 13,512 | 14,886 |
Losses (gains) on change in fair value of derivatives | (1,274) | (16,377) | (3,286) |
Inventory adjustments | 3,707 | 2,371 | 2,481 |
Other | 3,891 | 2,122 | 94 |
Changes in operating assets and liabilities: | |||
Accounts receivable | (7,817) | (24,816) | 1,182 |
Inventories | (457) | (1,860) | (14,876) |
Operating lease right of use assets and liabilities | 524 | 859 | (41) |
Other assets | (3,171) | (10,268) | (11,170) |
Accounts payable | 2,280 | 945 | (530) |
Deferred and unearned revenue | 7,401 | 6,655 | 6,002 |
Other liabilities | 32,479 | (22,156) | 8,700 |
Net cash provided by operating activities | 173,033 | 119,198 | 258,938 |
Cash flows from investing activities: | |||
Purchase of property and equipment | (114,774) | (113,547) | (95,515) |
Other | (1,048) | 2,653 | 2,618 |
Net cash provided by (used for) investing activities | (115,822) | (110,894) | (92,897) |
Cash flows from financing activities: | |||
Borrowings on long-term debt, net of discounts | 0 | 0 | 0 |
Repayments on long-term debt | (103,000) | (4) | (167,375) |
Proceeds from issuance of common stock | 1,837 | 3,744 | 11,838 |
Purchase of treasury stock | (28,415) | (84,388) | (73,295) |
Payments of debt issuance costs | (3,312) | 0 | (900) |
Payments on finance lease obligations | (3,918) | (3,908) | (4,592) |
Net cash used for financing activities | (136,808) | (84,556) | (234,324) |
Net change in cash, cash equivalents and restricted cash | (79,597) | (76,252) | (68,283) |
Cash, cash equivalents and restricted cash, beginning of year | 230,624 | 306,876 | 375,159 |
Cash, cash equivalents and restricted cash, end of year | 151,027 | 230,624 | 306,876 |
Supplemental cash flow disclosure information: | |||
Cash paid for interest | 11,735 | 16,940 | 24,897 |
Cash paid for taxes | 7,571 | 7,481 | 10,428 |
Capital expenditures accrued at the end of the period | $ 5,412 | $ 9,594 | $ 10,571 |
Business and Significant Accoun
Business and Significant Accounting Policies | 12 Months Ended |
Dec. 30, 2023 | |
Accounting Policies [Abstract] | |
Business and Significant Accounting Policies | Business and Significant Accounting Policies Nature of Operations National Vision Holdings, Inc. (“NVHI,” the “Company,” “we,” “our,” or “us”) is a holding company whose operating subsidiaries include its indirect wholly owned subsidiary, National Vision, Inc. (“NVI”) and NVI’s direct wholly owned subsidiaries. We are a leading value retailer of eyeglasses and contact lenses in the United States (“U.S”). We operated 1,413 and 1,354 retail optical locations in the U.S. and its territories as of the fiscal years ended December 30, 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 2. “Termination of Walmart Partnership” for developments related to the Walmart exit. We sell eyeglasses, contact lenses and optical accessory products to retail customers through proprietary retail web sites and web sites on behalf of certain independent retailers and insurance companies. We also distribute contact lenses to Walmart and Sam’s Club store locations. We also operate a specialized health maintenance organization (“HMO”) that is licensed as a single-service health plan under California law. The HMO issues individual vision plans in connection with our America’s Best operations in California, and until February 23, 2024, provided, or arranged for the provision of, optometric services at the offices next to certain Walmart stores throughout California. Fiscal Year We operate on a retail fiscal calendar that results in a given fiscal year consisting of a 52- or 53-week period ending on the Saturday closest to December 31. In a 52-week fiscal year, each quarter contains 13 weeks of operations; in a 53-week fiscal year, each of the first, second and third quarters include 13 weeks of operations and the fourth quarter includes 14 weeks of operations. References herein to “fiscal year 2023”, “fiscal year 2022” and “fiscal year 2021,” relate to the 52 weeks ended December 30, 2023, December 31, 2022, and January 1, 2022, respectively. Unless otherwise stated, references to years in this report relate to fiscal years rather than calendar years. Basis of Presentation and Principles of Consolidation We prepare our consolidated financial statements in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The consolidated financial statements include our accounts and those of our subsidiaries, all of which are wholly-owned. All intercompany balances and transactions have been eliminated in consolidation. 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. As of December 30, 2023, the variable interest entities include 32 professional corporations. The total assets of the consolidated VIEs included in the accompanying Consolidated Balance Sheets as of December 30, 2023 and December 31, 2022, were $8.3 million and $7.9 million, respectively, and the total liabilities of the consolidated VIEs were $9.8 million and $8.3 million, respectively. Certain fiscal year 2022 and fiscal year 2021 amounts within the Consolidated Statements of Cash Flows and footnotes to the financial statements have been reclassified to conform to the fiscal year 2023 presentation. 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. Share Repurchases Effective November 8, 2021, the Company’s Board of Directors (the “Board”) authorized the Company to repurchase up to $50 million aggregate amount of shares of the Company's common stock. On November 29, 2021, the Board authorized an increase from $50 million to $100 million in aggregate amount of shares of the Company’s common stock that may be repurchased under the Company’s current share repurchase program. On February 23, 2022, our Board of Directors authorized a $100 million increase to the share repurchase authorization, for a total authorization of $200 million. During fiscal years 2023, 2022, and 2021, the Company repurchased 1.1 million shares of its common stock for $25.0 million, 2.7 million shares of its common stock for $80.0 million, and 1.4 million shares of its common stock for $69.9 million, respectively, under the share repurchase program. The Company’s original share repurchase authorization expired on December 30, 2023, and had remaining capacity of $25 million. Effective February 23, 2024, the Board authorized the Company to repurchase up to $50 million aggregate amount of shares of the Company’s common stock until January 3, 2026. The authorization permits the Company to make purchases of its common stock from time to time in the open market or privately negotiated transactions, and pursuant to pre-set trading plans meeting the requirements of all applicable securities laws and regulations. The timing and amounts of any such repurchases will depend on a variety of factors, including the market price of the Company’s shares, general market and economic conditions, legal requirements and tax implications. The Company expects to fund the share repurchases using cash on hand. Repurchased shares are reflected in Treasury stock on the Consolidated Balance Sheets. CARES Act On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act was enacted in response to the COVID-19 pandemic. The CARES Act, among other things, accelerates a company’s ability to recover Alternative Minimum Tax (“AMT”) refundable credits that otherwise could have been claimed in 2020 and 2021, to 2018 and 2019, with an option to elect recovery of the full credit amount for 2018. The Company recognizes government grants for which there is a reasonable assurance of compliance with grant conditions and receipt of credits. Amounts receivable under the CARES Act In addition to the CARES Act, the Consolidated Appropriations Act, 2021, H.R. 133 was signed into law on December 27, 2020 and, among other things, allows for 100% deductibility of meals and entertainment expenses for the tax years ending in 2022 and 2021. In 2023, the deductibility was reduced to 50% of meals and 0% of entertainment expenses. Cash and Cash Equivalents Cash consists of currency and demand deposits with financial institutions and money market funds. We consider all highly liquid investments with an original maturity of three months or less at the date of purchase to be cash equivalents. We also review cash balances on a bank by bank basis to identify book overdrafts. Book overdrafts occur when the amount of outstanding checks exceed the cash deposited at a bank. We reclassify book overdrafts, if any, to Accounts payable in the accompanying Consolidated Balance Sheets. Accounts Receivable, Net Accounts receivable associated with revenues consist primarily of trade receivables and credit card receivables. Trade receivables consist primarily of receivables from managed care payors and receivables from major retailers. While we have relationships with almost all vision care insurers in the U.S. and with all of the major carriers, currently, a relatively small number of payors comprise the majority of our managed care revenues, subjecting us to concentration risk. Accounts receivable are reduced by allowances for credit losses. Estimates of our allowance for credit losses are based on our historical and current operating, billing, and collection trends, as well as current conditions and reasonable and supportable forecasts about the future. Accounts receivable are written off after all collection attempts have been exhausted. Credit loss expense recognized on our receivables, which is presented in SG&A expenses in the Company’s Consolidated Statements of Operations, was approximately $0.6 million, $0.9 million and $0.8 million for the fiscal years 2023, 2022 and 2021, respectively. Inventories The cost of inventory is determined using the weighted average cost method. Inventories at retail stores consist of finished goods and are valued at the lower of cost or estimated net realizable value (“NRV”). Manufactured inventories are valued using absorption accounting which includes material, labor, other variable costs and other applicable manufacturing overhead. Inventory values are adjusted for estimated obsolescence and written down to NRV based on estimates of current and anticipated demand, customer preference, merchandise age, planned promotional activities, contact lens vendor return acceptance activity, and estimates of future retail sales prices. Shrinkage is estimated and recorded throughout the period in costs applicable to revenue based on historical results and current inventory levels. Actual shrinkage is recorded throughout the year based upon periodic physical counts. See Note 3. “Details of Certain Balance Sheet Accounts” for further details. The Company’s inventory consists primarily of contact lenses, eyeglass frames and unprocessed eyeglass lenses. A significant portion of our inventory is supplied by a small number of key vendors. During fiscal year 2023, 92% of contact lens expenditures were with three vendors and 89% of lens expenditures were with one vendor. This exposes us to vendor concentration risk. We are less exposed to a supplier risk for our eyeglass frames as only 60% of frame expenditures were with two vendors. Property and Equipment Property and equipment (“P&E”) is stated at cost less accumulated depreciation. Depreciation associated with P&E is included in Depreciation and amortization in the accompanying Consolidated Statements of Operations. When we retire or otherwise dispose of P&E, we remove the cost and related accumulated depreciation from our accounts and recognize any gain or loss on the sale of such assets in SG&A in the Consolidated Statements of Operations. We capitalize major replacements and remodeling, and recognize expenditures for maintenance and repairs in SG&A. We depreciate P&E for financial accounting purposes using the straight-line method over the following estimated useful lives: Buildings 34 years Equipment 3 - 10 years Information technology hardware and software (a) 2 - 5 years Furniture and fixtures 6 years Leasehold improvements (b) 5 - 10 years P&E under finance leases (b) 10 years ____________ (a) Costs of developing or obtaining software for internal use, such as direct costs of materials or services and internal payroll costs related to the software development projects, are capitalized to information technology hardware and software. (b) Depreciation of leasehold improvements is recognized over the shorter of the estimated useful life of the asset or the term of the lease. The term of the lease includes renewal options for additional periods if the exercise of the renewal is considered to be reasonably assured. Cloud Computing Arrangements The Company capitalizes certain costs related to the acquisition and development of internal use software, including implementation costs incurred in a cloud computing arrangement during the application development stages of projects. Capitalized implementation costs are amortized on a straight-line basis over the expected term of the hosting arrangement, which includes consideration of the non-cancellable contractual term and reasonably certain renewals. Costs incurred during the preliminary project or the post-implementation stages of the project are expensed as incurred. Implementation costs are included in Other assets in our Consolidated Balance Sheets. Amortization of capitalized implementation costs is included in Selling, general and administrative expenses in the Consolidated Statements of Operations and Comprehensive Income. Goodwill and Intangible Assets Indefinite-lived intangible assets include goodwill and our trademarks and tradenames; we evaluate these assets annually for impairment, or more frequently if events and circumstances indicate that it is more likely than not that goodwill or intangible assets are impaired. Our annual testing date for impairment of goodwill and indefinite-lived intangible assets is the first day of the fourth fiscal quarter, which for fiscal year 2023 was October 1, 2023. Costs to renew intangible assets are expensed as incurred. Finite-lived, amortizing intangible assets primarily consist of our contracts and relationships with certain retailers. We amortize finite-lived intangible assets on a straight-line basis over their estimated useful lives. Amortization expense associated with finite-lived intangible assets is included in Depreciation and amortization in the accompanying Consolidated Statements of Operations. Goodwill is impaired if a reporting unit’s carrying value exceeds its fair value, and impairment is calculated as the excess between carrying value over fair value. We consider each of our operating segments to be reporting units. We estimate the fair value of our reporting units using the income approach, which is based on a discounted cash flow analysis and calculate the fair value of reporting units by estimating after-tax cash flows discounted using a weighted average cost of capital that includes a company-specific risk premium. The cash flows used in the analysis are based on financial forecasts developed internally by management and require significant judgment. The significant unobservable inputs used in the fair value measurement of the reporting units are revenue growth rate, cost of sales, payroll expense growth rate and other store expenses growth rate. These assumptions are sensitive to future changes in the business profitability, changes in our business strategy and external market conditions, among other factors. A decrease to the long-term revenue growth rate assumption or an increase to the expense growth rate assumptions could require us to record goodwill impairment charges. If impairment indicators related to amortizing intangible assets are present, we estimate cash flows expected to be generated over the remaining useful lives of the related assets based on current projections. If the projected net undiscounted cash flows are less than the carrying value of the related assets, we then measure impairment based on a discounted cash flow model and record an impairment charge as the excess of carrying value over estimated fair value. We use the relief-from-royalty method to estimate fair value of our trademarks and trade names, which involves estimating a royalty rate based on comparable licensing arrangements, applying that rate to the revenue projections for the subject asset, and then estimating fair value using a discounted cash flow analysis; the discounted cash flow analysis uses a weighted average cost of capital that includes a company-specific risk premium. We record an impairment charge as the excess of carrying value over estimated fair value. See Note 2. “Termination of Walmart Partnership” and Note 4. “Goodwill and Intangible Assets” for further detail on impairment of goodwill and intangible assets. Investments The Company previously had an investment in a private start-up company whose principal business is licensing software to eyeglass retailers. During fiscal year 2021, the Company’s equity method investee was acquired by a third party and in connection therewith the Company sold all of its ownership interests and received $2.4 million upon the consummation of the sale. The Company subsequently received $2.7 million in fiscal year 2022 related to an earnout associated with the sale. These proceeds were included in Other in the investing section of the Consolidated Statements of Cash Flows. As a result of this transaction, and as the carrying value of the investment was zero, the Company recorded a gain on sale of equity method investment in Other expense (income), net on the Consolidated Statement of Operations of $2.7 million in fiscal year 2022 and $2.4 million in fiscal year 2021. 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 and subsequent milestone payment of $0.9 million were both recognized in Other assets in the Consolidated Balance Sheets as of December 30, 2023 and in Other in the investing section of the Consolidated Statements of Cash Flows for fiscal year 2023. We have agreed to invest up to an additional $1.5 million in the entity upon the completion of certain milestones. Fair Value Measurement of Assets and Liabilities The Company accounts for certain assets and liabilities at fair value. The Company generally uses a market approach, when practicable, in valuing financial instruments. For certain assets the Company may also use a valuation technique consistent with the income approach whereby future cash flows are converted to a single discounted amount. The carrying value of the Company’s cash equivalents and restricted cash, accounts receivables, accounts payable and other payables and accrued expenses, approximate fair value due to their short-term nature. Non-financial assets such as P&E, right of use (“ROU”) assets and intangible assets are subject to nonrecurring fair value measurements if impairment indicators are present. Factors we consider important that could trigger an impairment review include a significant under-performance compared to expected operating results, a significant or adverse change in customer business climate, and a significant negative industry or economic trend. Refer to “Long-lived Asset Impairment” section below and Note 10. “Fair Value Measurement” for the Company’s recurring and non-recurring fair value measurements. Deferred Financing Costs and Loan Discounts Costs incurred in connection with long-term debt which are paid directly to the Company’s lenders and to third parties are presented as reductions to our long-term debt balance, except for the costs related to our revolving credit facility which are presented as assets. These costs are amortized over the term of the related financing agreement and included in Interest expense, net in the accompanying Consolidated Statements of Operations. Self-Insurance Liabilities We are primarily self-insured for workers’ compensation, associate health benefits and general liability claims. We record self-insurance liabilities based on claims filed, including the development of those claims and an estimate of claims incurred but not yet reported. Should a different amount of claims occur compared to what was estimated, or costs of the claims increase or decrease beyond what was anticipated, liabilities may need to be adjusted accordingly. We periodically update our estimates and record such adjustments in the period in which such determination is made. Self-insurance liabilities are recorded on an undiscounted basis in the accompanying Consolidated Balance Sheets. Refer to the following table and Note 3. “Details of Certain Balance Sheet Accounts” for further details. We reinsure worker’s compensation and medical claims above our retention levels with a highly rated financial institution that can be expected to fully perform under the terms of the arrangement. Estimated recoveries from reinsurance as of fiscal year end 2023 and 2022 are shown in the following table. In thousands Balance Sheet Classification As of As of Current portion Prepaid Expenses and Other Current Assets $ 990 $ 1,047 Noncurrent portion Other Assets 1,549 2,125 Total estimated recoveries from reinsurance $ 2,539 $ 3,172 Derivative Financial Instruments The Company uses interest rate derivatives to manage the exposure of its Term Secured Overnight Financing Rate (“Term SOFR”)-based debt to fluctuations in interest rates. If our derivatives are designated as cash flow hedges, we formally document our hedge relationships, including identification of the hedging instruments and the hedged items, as well as our risk management objectives and strategies for undertaking the hedge transactions. We record all interest rate derivatives in our Consolidated Balance Sheets on a gross basis at fair value. Fair value represents estimated amounts we would receive or pay upon a termination of interest rate derivatives prior to their scheduled expiration dates. The fair value was based on information that is model-driven and whose inputs were observable (Level 2 inputs) such as Term SOFR forward rates. We do not hold or enter into financial instruments for trading or speculative purposes. The gain or loss res ulting from fair value adjustments for highly effective cash flow hedges is recorded in Accumulated other comprehensive loss (“AOCL”) in the accompanying Consolidated Balance Sheets until the hedged item is recognized as Interest expense, net in the Consolidated Statements of Operations. The gain or loss resulting from fair value adjustments of derivatives not deemed to be highly effective cash flow hedges is recognized in Interest expense, net immediately. We perform periodic assessments of the effectiveness of our derivative contracts designated as hedges, if applicable. To manage credit risk associated with our interest rate hedging program, we select as counterparties major financial institutions with investment grade credit ratings. The impact of credit risk, as well as the ability of each party to fulfill its obligations under our derivative financial instruments, is considered in determining the fair value of the contracts. We do not have any credit risk-related contingent features or collateral requirements associated with our derivative contracts. See Note 13. “Interest Rate Derivatives” for further details. Accumulated Other Comprehensive Loss AOCL is defined as the change in equity of a business enterprise during a period from transactions and other events and circumstances from non-owner sources. Accumulated other comprehensive loss, net of income tax, is entirely composed of the cumulative unrealized loss on our previously effective hedging instruments. See Note 16. “Accumulated Other Comprehensive Loss” for details of reclassifications out of AOCL. Revenue Recognition Net product sales include sales of prescription and non-prescription eyewear, contact lenses and related accessories to retail customers (including those covered by managed care) and sales of inventory in which our customer is another retail entity. Net sales of services and plans include sales of eye exams, eye care club membership fees, product protection plans (i.e. warranties) and HMO vision plan fees. Net sales of services and plans also include fees we earn for managing certain Vision Centers located in Walmart stores and performing laboratory processing services for our Legacy partner. At our America’s Best brand, our signature offer is two pairs of eyeglasses and a free eye exam for one low price (“two-pair offer”). Since an eye exam is a key component in the ability for acceptable prescription eyewear to be delivered to a customer, we concluded that the eye exam service, while capable of being distinct from the eyeglass product delivery, was not distinct in the context of the two-pair offer. As a result, we do not allocate revenue to the eye exam associated with the two-pair offer, and we record all revenue associated with the offer in Owned & Host net product sales when the customer has received and accepted the merchandise. Our retail customers generally make payments for prescription eyewear products at the time they place an order. Amounts we collect in advance for undelivered merchandise are reported as Unearned revenue in the accompanying Consolidated Balance Sheets. Unearned revenue at the end of a reporting period is estimated based on processing and delivery times throughout the current month which generally range from approximately seven Revenue is recognized net of sales taxes and returns and includes amounts billed to customers related to shipping and handling costs. The returns allowance is based on historical return patterns. Provisions for estimated returns are established and the expected costs continue to be recognized as reductions to revenue when the products are sold. Shipping and handling costs are accounted for as fulfillment costs and are included in costs applicable to revenue. We record reductions in revenue for estimated price concessions granted to managed care providers. The Company considers its revenue from managed care customers to include variable consideration and estimates such amounts associated with managed care customer revenues using the history of concessions provided and cash receipts from managed care providers. We reduced our net revenue for variable considerations of $17.3 million, $14.8 million and $10.2 million during the fiscal years 2023, 2022 and 2021, respectively. Refer to Note 8. “Revenue from Contracts with Customers” for further details of our revenues. Costs Applicable to Revenue Costs applicable to revenue consist primarily of cost of products sold and costs of administering services and plans. Costs of products sold include (i) costs to procure non-prescription eyewear, contacts and accessories which we purchase and sell in their finished form, (ii) costs to manufacture finished prescription eyeglasses, including direct materials, labor and overhead and (iii) remake costs, warehousing and distribution expenses and internal transfer costs. Costs of services and plans include costs associated with warranty programs, eye care club memberships, HMO vision plan fees, eye care practitioner and eye exam technician payroll, taxes and benefits and optometric and other service costs. Depreciation and amortization are excluded from costs applicable to revenue and are presented separately on the accompanying Consolidated Statements of Operations. As a component of the Company’s procurement program, the Company frequently enters into contracts with its vendors that provide for payments of rebates or other allowances. These vendor payments are reflected when earned or as progress is made toward earning the rebate or allowance and, depending on the terms of the agreement with the vendor, are treated as a reduction of the carrying value of the inventory and a resultant reduction of cost of products. Rebates that have been earned but not yet received are recognized as an increase to Accounts receivable, net or a reduction to Accounts payable, depending on the nature of the agreement with the vendor, until the payment has been received. Selling, General and Administrative SG&A includes store associate (including optician) payroll, taxes and benefits, occupancy and other store expenses, advertising and promotion, field services, and corporate support. Advertising and promotion costs, including online marketing arrangements, newspaper, direct mail, television and radio, are recorded in SG&A and expensed at the time the advertising first occurs. Production costs of future media advertising and related promotional campaigns are deferred until the advertising events occur. Non-capital expenditures associated with opening new stores, including rent, marketing expenses, travel and relocation costs, and training costs, are recorded in SG&A as incurred. Certain vendor contracts provide for marketing co-op allowances; such allowances are reflected when earned or as progress is made toward earning the allowance and are treated as a reduction of SG&A. Advertising expenses were $139.9 million, $141.4 million and $149.6 million for fiscal years 2023, 2022 and 2021, respectively. Leases We lease our stores, distribution centers, corporate offices, and most of our laboratories. These leases generally have noncancelable lease terms of between five one The lease liability is measured at the present value of future lease payments over the lease term less TIAs receivable, and the ROU asset is measured at the lease liability amount, adjusted for prepaid lease payments, TIAs received and the lessee’s initial direct costs. As the rate implicit in the Company’s leases is not easily determinable, the Company’s incremental borrowing rate is used in calculating the present value of the sum of the lease payments. Factors incorporated into the calculation of the lease incremental borrowing rate include lease term, borrowing rates on the Company’s long-term debt, fixed rates on interest rate swaps, Term SOFR margins for issuers of similar credit rating to NVI and effect of collateralization. For finance leases, a lease ROU asset is recorded as property and equipment and corresponding amounts are recorded as finance lease debt obligations at the net present value of the minimum lease payments to be made over the lease term for new finance leases. Stock-Based Compensation We measure stock-based compensation cost, which consists of grants of stock options, performance stock units (“PSUs”), and restricted stock units (“RSUs”), to associates and non-employee directors, based on the estimated grant date fair value of the awards. We recognize compensation expense for all awards containing only a service requirement over the requisite service period using a straight-line recognition method. Our PSUs contain both a service requirement and a performance requirement. We recognize expense for the proportionate share of the total fair value of PSUs related to the vesting period that has already lapsed for the shares expected to vest, which expectation is based on an evaluation of expected performance against predefined performance criteria and may also result in reversals of expense. The remaining fair value of the shares expected to vest is expensed on a straight-line basis over the balance of the vesting period. We account for forfeitures as they occur. See Note 6. “Stock Incentive Plan” for further details related to our stock-based compensation plans. Long-lived Asset Impairment Non-financial assets such as P&E, ROU assets and intangible assets are subject to nonrecurring fair value measurements if impairment indicators are present. We evaluate impairment of long-lived tangible and ROU store assets at the store level, which is the lowest level at which independent cash flows can be identified, when events or conditions indicate the carrying values of such assets may not be recoverable. In making this evaluation, we may consider multiple factors including financial performance of the stores, regional and local business climates, industry or economic trends, future plans for the store operations and other qualitative factors. If the store’s projected undiscounted net cash flows expected to be generated by the related assets over the life of the primary asset within the asset group are less than the carrying value of the subject assets, we determine an estimate of the fair value of the asset group using an income approach based on discounted cash flows, which require estimates and assumptions related to forecasted store revenue growth rates and store profitability. If the fair value of the asset group is less than its carrying value, the loss is allocated to the long-lived assets of the group on a pro rata basis using the relative carrying amounts of those assets, except that the loss allocated to an individual long lived asset of the group shall not reduce the carrying amount of that asset below its fair value. We consider market-based indications of prevailing rental rates for retail space, market participant discount rates, and lease incentives when estimating the fair values of ROU assets. We assess non-store long-lived assets, including capitalized software costs in use or under development, for impairment if events or changes in circumstances indicate that the carrying value of those assets may not be recoverable. In fiscal year 2021, we impaired $0.8 million related to a write-off of certain capitalized software costs that were deemed to be obsolete due to a decision to cease further development. We did not recognize impairment related to capitalized software costs in fiscal year 2022. In fiscal year 2023, we impaired $5.6 million of capita |
Termination of Walmart Partners
Termination of Walmart Partnership | 12 Months Ended |
Dec. 30, 2023 | |
Restructuring and Related Activities [Abstract] | |
Termination of Walmart Partnership | Termination of Walmart Partnership 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 terminated as of February 23, 2024 (the “Termination Date”). In connection with the termination of the Walmart MSA, the Amended and Restated Supplier Agreement between NVI and Walmart, dated as of January 17, 2017 (the “Walmart Supplier Agreement”), and certain other related agreements also terminated 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 arranged for the provision by FirstSight of optometric services at optometric offices next to certain Walmart stores throughout California, also terminated 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, and the Company will wind down its remaining AC Lens operations, including the closure of its Ohio distribution center, which largely supported the wholesale distribution and e-commerce contact lens services that the Company provided to Walmart and Sam’s Club. Additionally, in view of the termination of the Walmart MSA and impending wind down of AC Lens operations, the Company took actions in fiscal year 2023 to streamline corporate overhead including optimizing non-customer facing labor costs, as well as reducing travel expenses and third-party spend. The following table details charges recognized in the periods shown. We may incur other exit-related costs, which may be material. We anticipate approximately $8 million of additional costs to be incurred in connection with the termination of the Walmart partnership in 2024. In thousands Fiscal Year 2023 Impairment charges $ 79,658 Employee compensation benefits $ 5,666 Professional fees and other expenses $ 1,179 Inventory obsolescence $ 158 Total $ 86,661 The table below summarized the Company’s Other payables and accrued expenses balance related to the termination of the Walmart partnership. In thousands Employee Compensation Benefits Balance at December 31, 2022 $ — Expenses recognized during the period 5,666 Expenses paid during the period (442) Balance at December 30, 2023 $ 5,224 Impairment charges We determined that the various terminations of agreements described above as well as the subsequent decision to consolidate our distribution network and close the distribution center in Ohio constituted triggering events, and accordingly, performed impairment tests during the year ended December 30, 2023 on assets related to the Walmart partnership. We used the discounted cash flow method of the income approach in our analyses and considered projected cash flows for the remaining terms of the various agreements and other costs related to the termination of the Walmart partnership, and used discount rates between 7.8% and 10.0% depending on the asset or asset group being valued. 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 impairment charges recognized during the year ended December 30, 2023 resulting from the termination of the Walmart partnership include $60.1 million related to goodwill of the Legacy segment, $9.1 million related to the Walmart contracts and relationship intangible asset, and $10.5 million related to property and equipment at Walmart stores and associated with our AC Lens business. These expenses were recognized in Corporate/Other, and the impairment charges are reflected in Asset impairment in the Consolidated Statements of Operations and Comprehensive Income. The assets impaired during the year ended December 30, 2023 as a result of the termination of the Walmart partnership were written down to their fair values totaling $1.5 million as of the respective valuation dates. We adjusted the useful lives of the impaired intangible and fixed assets to be aligned with the respective contract termination dates. The impairment testing date for (i) goodwill related to the Legacy segment, (ii) the Walmart contracts and relationships intangible asset and (iii) property and equipment located in Walmart stores was contemporaneous with the date that we received notice of non-renewal from Walmart. Other assets related to the AC Lens operations and Walmart partnership were tested at various dates during the third and fourth quarters. We did not impair certain assets that we believe can be sold or used in other stores in our Owned & Host segment after the Termination Date. We determined that all long-lived Walmart and AC Lens assets were held and used as of December 30, 2023 and were not available for immediate sale. Refer to the Note 1. “Description of Business and Basis of Presentation” for more details on our impairment testing. Employee compensation benefits During the year ended December 30, 2023, we recognized $0.6 million in Costs of services and plans and $5.1 million in Selling, general and administrative expenses in the Consolidated Statements of Operations and Comprehensive Income, in the Corporate/Other category, related to retention bonus programs implemented for certain associates to ensure continuity of business, as well as termination benefits for certain associates that have occurred and are probable to occur within the next 12 months. Of the amounts recorded in Selling, general and administrative expenses, $1.5 million is related to termination benefits for associates affected by the actions taken to streamline corporate overhead. The liability for employee compensation benefits is recorded in Other payables and accrued expenses in the Consolidated Balance Sheets. Professional Fees and Other expenses During the year ended December 30, 2023, we recognized $1.2 million in Selling, general, and administrative expenses in the Consolidated Statements of Operations and Comprehensive Income, in the Corporate/Other category, related to professional fees and other expenses, including advisory fees to assist with the exit. Inventory Obsolescence During the year ended December 30, 2023, we recognized $0.2 million in Costs applicable to revenue in the Consolidated Statements of Operations and Comprehensive Income, in the Corporate/Other category, related to inventory obsolescence. |
Details of Certain Balance Shee
Details of Certain Balance Sheet Accounts | 12 Months Ended |
Dec. 30, 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 Consolidated Balance Sheets to the total of Cash, cash equivalents and restricted cash shown in the Consolidated Statement of Cash Flows: In thousands Fiscal Year 2023 Fiscal Year 2022 Fiscal Year 2021 Cash, cash equivalents and restricted cash: Cash and cash equivalents $ 149,896 $ 229,425 $ 305,800 Restricted cash included in other assets 1,131 1,199 1,076 $ 151,027 $ 230,624 $ 306,876 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 $ 43,518 $ 41,622 Credit card receivables 27,905 23,311 Other receivables (1) 15,747 15,478 Allowance for credit losses (316) (519) $ 86,854 $ 79,892 (1) Includes CARES Act receivable in the amount of $9.0 million and $9.0 million as of December 30, 2023 and December 31, 2022, respectively. In thousands As of As of Inventories: Raw materials and work in process (1) $ 57,367 $ 64,786 Finished goods 62,541 58,372 $ 119,908 $ 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 Property and equipment, net: Land and building $ 3,736 $ 3,770 Equipment 287,983 257,661 Information technology hardware and software 131,954 151,562 Furniture and fixtures 77,890 71,932 Leasehold improvements 323,524 285,505 Construction in progress 29,643 36,099 Right of use assets under finance leases 36,219 36,219 890,949 842,748 Less: Accumulated depreciation (528,386) (482,973) $ 362,563 $ 359,775 In thousands As of As of Other payables and accrued expenses: Associate compensation and benefits $ 62,614 $ 37,451 Self-insurance liabilities 9,139 8,744 Capital expenditures 5,412 9,594 Advertising 6,446 3,811 Reserves for customer returns and remakes 9,093 7,676 Legacy management & services agreement 6,068 6,488 Income tax payable 1,863 103 Supplies and other store support expenses 5,434 4,215 Other 17,219 16,143 $ 123,288 $ 94,225 In thousands As of As of Other noncurrent liabilities: Self-insurance liabilities $ 5,657 $ 6,292 Other 2,808 2,608 $ 8,465 $ 8,900 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets The gross carrying amount and accumulated impairment of the Company’s goodwill balances for 2023 and 2022 are as follows: As of As of In thousands Gross Carrying Accumulated Gross Carrying Accumulated Owned & Host Segment $ 736,901 $ (19,357) $ 736,901 $ (19,357) Legacy Segment 60,069 (60,069) 60,069 — Corporate/Other 8,107 (8,107) 8,107 (8,107) $ 805,077 $ (87,533) $ 805,077 $ (27,464) The Owned & Host Segment’s goodwill contains $606.5 million related to America’s Best and $111.1 million related to Eyeglass World. Accumulated goodwill impairment relates to our Legacy, Fred Meyer, Military and AC Lens reporting units. Indefinite-lived intangible assets by major asset class are as follows: In thousands As of As of Trademarks and trade names: America’s Best $ 200,547 $ 200,547 Eyeglass World 40,000 40,000 $ 240,547 $ 240,547 We intend to maintain our trademarks; renewals will take place as needed. Finite-lived, amortizing intangible assets by major asset class are as shown in the following table. We remove assets from the table below once they are fully amortized. As of December 30, 2023 As of December 31, 2022 In thousands Gross Carrying Accumulated Remaining Life Gross Carrying Accumulated Remaining Life Contracts and relationships: Legacy (1) $ 345 $ (247) 0 $ 65,000 $ (52,080) 2 Fred Meyer 35,000 (14,915) 13 35,000 (13,389) 14 Other 151 (62) 2 897 (759) 3 $ 35,496 $ (15,224) $ 100,897 $ (66,228) (1) We recognized We extended our relationship with Fred Meyer in fiscal year 2022. Refer to Note 2. “Termination of Walmart Partnership” for more information on our relationship with Walmart. We intend to maintain our intangible assets. We amortized $5.3 million, $7.5 million, and $7.5 million in 2023, 2022, and 2021, respectively. Aggregate amortization expense is included in Depreciation and amortization in the accompanying Consolidated Statements of Operations. Aggregate future estimated amortization expense is shown in the following table: Fiscal Year In thousands 2024 $ 1,675 2025 1,563 2026 1,525 2027 1,525 2028 1,525 Thereafter 12,459 $ 20,272 |
Long-term Debt
Long-term Debt | 12 Months Ended |
Dec. 30, 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 $ 302,497 $ 402,497 Term Loan A, due June 13, 2028 146,250 150,000 Revolving Loans, due June 13, 2028 — — Long-term debt before unamortized discount and issuance costs 448,747 552,497 Unamortized discount and issuance costs - 2025 Notes (2,497) (5,696) Unamortized discount and issuance costs - Term Loan A (1,066) (570) Long-term debt less debt discount and issuance costs 445,184 546,231 Less current maturities (7,500) — Long-term debt - noncurrent portion 437,684 546,231 Finance lease obligations 16,067 21,294 Less current maturities (2,980) (4,137) Long-term debt and finance lease obligations, less current portion, discount, and issuance costs $ 450,771 $ 563,388 2025 Notes In May 2020, we completed the issuance of $402.5 million in aggregate principal amount of 2.50% convertible senior notes due on May 15, 2025 (the “2025 Notes”), pursuant to an indenture between the Company and U.S. Bank, dated as of May 12, 2020 (the “Indenture”). The 2025 Notes were sold only to persons reasonably believed to be qualified institutional buyers in reliance on Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”). The 2025 Notes pay interest semi-annually in arrears on May 15 and November 15 of each year, commencing on November 15, 2020, at an annual rate of 2.50%. We received proceeds from the offering of $390.9 million, net of $11.6 million in underwriter fees and other issuance costs. We used $294.3 million of the net proceeds from the offering to repay all outstanding amounts under the revolving credit facility and $75.0 million to partially repay the first lien term loan in an aggregate principal amount of $420.0 million (the “term loan”). The remainder of the net proceeds are being used for general corporate purposes. Prior to February 15, 2025, the 2025 Notes are convertible at the option of the holder only under the following circumstances: (i) during any calendar quarter commencing after the calendar quarter ending on September 30, 2020 (and only during such calendar quarter), if the Last Reported Sale Price (as defined in the Indenture) per share of the Company’s common stock exceeds 130% of the Conversion Price (as defined in the Indenture) for each of at least 20 Trading Days (as defined in the Indenture), whether or not consecutive, during the 30 consecutive Trading Days ending on, and including, the last Trading Day of the immediately preceding calendar quarter; (ii) during the five consecutive business days immediately after any ten consecutive Trading Day period (such ten consecutive trading day period, the “measurement period”) in which the Trading Price (as defined in the Indenture) per $1,000 principal amount of the 2025 Notes for each Trading Day of the measurement period was less than 98% of the product of the Last Reported Sale Price per share of the Company’s common stock on such Trading Day and the conversion rate (as described below) on such Trading Day; (iii) upon the occurrence of certain corporate events or distributions on the Company’s common stock, as described in the Indenture; or (iv) if the Company calls such Notes for redemption. On or after February 15, 2025 until 5:00 p.m., New York City time, on the second Scheduled Trading Day (as defined in the Indenture) immediately before the maturity date, the 2025 Notes will be convertible at the option of the holder at any time. The 2025 Notes are initially convertible at a conversion rate of 32.0783 shares of common stock per $1,000 principal amount of 2025 Notes, which is equivalent to an initial conversion price of approximately $31.17 per share of common stock. The conversion rate will be subject to adjustment upon the occurrence of certain specified events including, but not limited to: issuance of stock dividends, splits and combinations; distribution of rights, options and warrants; spin-offs and other distributed property; cash dividends or distributions; tender offers or exchange offers; and certain other corporate transactions. The Company can choose to settle upon conversion in cash, shares or a combination. Based on the initial conversion rate, the 2025 Notes were convertible into 12.9 million shares of our common stock and we reserved for the possible issuance of 16.5 million shares, which is the maximum amount that could be issued upon conversion. As of December 30, 2023, the 2025 Notes are convertible into 9.7 million shares of our common stock and a maximum of 12.4 million shares of our common stock. See Note 14. “Earnings Per Share” for the treatment of earnings per share in relation to the 2025 Notes. The holders of our term loan would have preference over the holders of the 2025 Notes in the event of a liquidation. The Company adopted ASU 2020-06 as of January 3, 2021. ASU 2020-06 eliminates the cash conversion and the beneficial conversion feature models. Under the new convertible debt framework, the Company eliminated the equity components and increased the debt balance. Refer to Note 1. “Description of Business and Basis of Presentation” for further discussion of the adoption of ASU 2020-06. As a result of adopting ASU 2020-06, our effective interest rate decreased from 9.1% as of January 2, 2021 to 3.2% starting in the first quarter of 2021. On November 14, 2023, the Company repurchased $100.0 million aggregate principal amount of the 2025 Notes for an aggregate cash repurchase price of $99.3 million. The repurchase of the 2025 Notes was accounted for as an extinguishment of debt and resulted in a loss on extinguishment of debt of $0.6 million on its Consolidated Statement of Operations during fiscal year ended December 30, 2023, which includes a write-off of related deferred issuance costs of $0.9 million and third-party fees of $0.4 million. After giving effect to the repurchase, $302.5 million principal amount remains outstanding from an initial issued principal balance of $402.5 million. An immaterial amount of the principal balance of the 2025 Notes was converted during fiscal year 2022. We recognized the following in Interest expense, net related to the 2025 Notes: In thousands Fiscal Year 2023 Fiscal Year 2022 Fiscal Year 2021 Contractual interest expense $ 9,747 $ 10,062 $ 10,063 Amortization of issuance costs $ 2,293 $ 2,283 $ 2,213 As of December 30, 2023, the remaining period for the unamortized debt issuance costs balance related to the 2025 Notes was approximately one year. As of December 30, 2023, the stock price conditions under which the 2025 Notes can be converted at the holders’ option were not met. 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 Loan A 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 Loan A 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 Loan A 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 were 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 Loan A in Long-term debt and finance lease obligations, less current portion and debt discount on our Consolidated Balance Sheets. 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 fiscal year 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 fiscal year 2023. The Second Restatement Agreement contains customary affirmative covenants, negative covenants, and events of default substantially comparable to the Original Credit Agreement. The Second Restatement Agreement also contains covenants that, among other things, limit NVI’s ability to incur additional debt, create liens against assets, make acquisitions, pay dividends or distributions on its stock, merge or consolidate with another entity and transfer or sell assets. We were in compliance with all covenants related to our long-term debt as of December 30, 2023. During the second quarter of 2021, the Company partially prepaid $117.4 million of term loan principal and wrote off associated deferred debt issuance costs of $0.7 million. During the fourth quarter of 2021, the Company partially prepaid $50.0 million of term loan principal and wrote off associated deferred debt issuance costs of $0.3 million. The borrowing capacity remaining as of December 30, 2023 was $293.6 million due to a reduction of $6.4 million for letters of credit outstanding. Scheduled annual maturities of debt are as follows: Fiscal Year In thousands 2024 $ 5,625 2025 311,872 2026 7,500 2027 7,500 2028 116,250 Thereafter — $ 448,747 |
Stock Incentive Plans
Stock Incentive Plans | 12 Months Ended |
Dec. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock Incentive Plans | Stock Incentive Plans The Company has provided equity-based compensation awards to its associates under three plans. In connection with the initial public offering of our common stock (the “IPO”), on October 23, 2017, the Company’s Board of Directors adopted, and its stockholders approved, the National Vision Holdings, Inc. 2017 Omnibus Incentive Plan (the “2017 Omnibus Incentive Plan”). The total number of shares of common stock that may be issued under the 2017 Omnibus Incentive Plan is 4,000,000. The plan authorizes the grant of stock options, stock appreciation rights, restricted stock awards (“RSAs”), RSUs, PSUs, other equity-based awards and other cash-based awards to our associates, non-employee directors, officers, consultants and advisers. The Vision Holding Corp. 2013 Amended and Restated Stock Incentive Plans provided for the issuance of stock options to directors, certain associates and consultants of Vision Holding Corp., its subsidiaries and affiliates. In 2014, our Board of Directors and stockholders of the Company approved the 2014 Stock Incentive Plan for Key Employees of National Vision Holdings, Inc. (formerly known as Nautilus Parent, Inc.) and its subsidiaries (the “2014 Stock Incentive Plan”). There were 10,988,827 stock options authorized for issuance pursuant to the 2014 Stock Incentive Plan. All stock awards under these plans vest through continued service. All options under these plans have a contractual life of 10 years. The Company also provides associates the opportunity to purchase Company common shares through the Associate Stock Purchase Plan (the “ASPP”), which the Company’s Board of Directors adopted and its stockholders approved on June 6, 2018. The ASPP provides that up to 850,000 shares of common stock, at par value of $0.01 per share, may be offered and issued under the ASPP. The following table summarizes stock compensation expense under the Company’s plans, which is included in SG&A in the accompanying Consolidated Statements of Operations: In thousands Fiscal Year 2023 Fiscal Year 2022 Fiscal Year 2021 Stock options $ 763 $ 1,579 $ 2,632 RSUs and PSUs 19,260 11,460 11,217 RSAs — 314 852 Associate stock purchase plan 151 159 185 Pre-tax stock-based compensation expense $ 20,174 $ 13,512 $ 14,886 Income tax benefit (5,085) (3,428) (3,788) After-tax stock-based compensation expense $ 15,089 $ 10,084 $ 11,098 Stock options RSUs and PSUs Unrecognized compensation cost ( in thousands ) $ 126 $ 30,791 Expected remaining weighted-average period of expense recognition (in years) 0.20 1.91 Service-based options The following tables summarize service-based stock option activity. No service-based options were granted in fiscal years 2023 and 2022. Number of Options Outstanding (In thousands) Weighted Average Exercise Price ($) Weighted Average Remaining Contractual Life (Years) Aggregate Intrinsic Value (In thousands) ($) Outstanding options at December 31, 2022 628 $ 29.07 5.95 $ 6,733 Exercised (16) 15.59 Forfeited (13) 40.91 Outstanding options at December 30, 2023 599 $ 29.20 4.93 $ 981 Vested and exercisable at December 30, 2023 569 $ 28.35 4.82 $ 981 In thousands except per share values Fiscal Year 2023 Fiscal Year 2022 Fiscal Year 2021 Weighted average grant date fair value per share of options granted $ — $ — $ 23.39 Fair value of options vested $ 1,251 $ 3,073 $ 3,138 Aggregate intrinsic value of options exercised $ 147 $ 979 $ 23,091 The fair value of service-based options was estimated using the Black-Scholes-Merton option pricing model. The following is a summary of the assumptions used in this model for service-based options: 2021 Expected volatility 52.49% to 54.03% Expected term range (in years) 6.00 Expected risk-free interest rate 0.97% to 1.07% The expected term was based on the mid-point between the weighted average time to vesting and the contractual time to maturity . Most service-based options vest in three equal installments on the first, second and third anniversaries of the grant date. The risk-free interest rate was based on the U.S. Treasury yield curve. The dividend yield was based on our expectation of not paying dividends on our common stock for the foreseeable future. Performance-based options The following table summarizes performance-based stock option activity: Number of Options Outstanding (In thousands) Weighted Average Exercise Price ($) Weighted Average Remaining Contractual Life (Years) Aggregate Intrinsic Value (In thousands) ($) Outstanding options at December 31, 2022 49 $ 15.74 4.56 $ 1,132 Exercised — — Outstanding options at December 30, 2023 49 $ 15.74 3.56 $ 255 Vested and exercisable at December 30, 2023 49 $ 15.74 3.56 $ 255 There were no grants of performance-based options during fiscal years 2023, 2022, and 2021. There were no vests of performance-based options during fiscal years 2023, 2022, and 2021. There were no exercises of performance-based options during fiscal year 2023. The aggregate intrinsic value of performance-based options exercised during fiscal years 2022 and 2021 was immaterial and $37.3 million, respectively. The following tables summarize RSU and PSU awards activity: RSUs Weighted average grant date fair value ($) PSUs Weighted average grant date fair value ($) Outstanding at December 31, 2022 786 $ 35.36 361 $ 38.86 Granted 725 22.65 451 22.35 Vested (352) 34.35 (112) 34.28 Forfeited (99) 30.19 (28) 35.45 Outstanding at December 30, 2023 1,060 $ 27.50 672 $ 28.68 Fiscal Year 2023 Fiscal Year 2022 Fiscal Year 2021 RSUs Weighted average grant date fair value of RSUs granted $ 22.65 $ 34.83 $ 46.52 Total fair value of RSUs vested (In thousands) $ 12,084 $ 6,176 $ 6,154 PSUs Weighted average grant date fair value of PSUs granted $ 22.35 $ 37.96 $ 46.17 Total fair value of PSUs vested (In thousands) $ 3,852 $ 3,118 $ — RSAs Weighted average grant date fair value of RSAs granted $ — $ — $ 48.39 Total fair value of RSAs vested (In thousands) $ — $ 800 $ 700 Restricted stock units (RSUs) Most RSUs vest in three equal annual installments on the first, second and third anniversary of the grant date. The RSUs outstanding as of December 30, 2023 have $22.2 million intrinsic value. Non-employee directors were granted RSUs in fiscal year 2023. Performance stock units (PSUs) PSUs are settled after the end of a three-year performance period (i.e., cliff vesting), which begins on the first day of the grant year and are based on the Company’s achievement of certain performance targets. The performance stock units outstanding as of December 30, 2023 have $14.1 million intrinsic value. While the PSU amounts shown in the tables above reflect achievement at target, the number of PSUs ultimately vested will be based on a comparison of certified performance results to predefined performance criteria that include threshold, target and maximum attainment levels. Associate Stock Purchase Plan Under the ASPP, eligible associates receive a 10% discount from the market trading value of common stock of the Company at the time of purchase. Participants may contribute to the ASPP, not to exceed $25,000 under the ASPP in any calendar year. During fiscal year 2023, the amount of shares issued to eligible participants through the ASPP was not material. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income taxes The income tax provision (benefit) consists of: In thousands Fiscal Year 2023 Fiscal Year 2022 Fiscal Year 2021 Current income tax: Federal $ 6,880 $ 2,829 $ 138 State 3,246 4,838 4,242 Deferred income tax: Federal (3,878) 11,079 15,015 State (2,111) (55) 1,686 Income tax provision (benefit) $ 4,137 $ 18,691 $ 21,081 Our income tax provision (benefit) differs from the amounts computed by multiplying earnings (loss) before income taxes by the statutory federal income tax rate as shown in the following table: In thousands Fiscal Year 2023 Fiscal Year 2022 Fiscal Year 2021 Federal income tax provision at statutory rate $ (12,970) $ 12,771 $ 31,358 State income tax provision, net of federal income tax 1,305 3,527 7,130 Increase (decrease) in deferred tax asset valuation allowance 2,238 477 (441) Executive compensation limitation 354 1,218 283 Goodwill impairment 12,614 — — Stranded tax effect of matured interest rate swaps — — (2,125) Tax provision (benefit) of equity-based compensation deductions 1,211 (27) (14,408) Other, net (615) 725 (716) Net income tax provision (benefit) $ 4,137 $ 18,691 $ 21,081 Effective income tax rate (6.7) % 30.7 % 14.1 % The tax legislation signed into law on December 22, 2017 makes broad and complex changes to the U.S. tax code including, but not limited to: (1) reducing the U.S. federal rate from 35% to 21%, effective January 1, 2018; (2) eliminating the corporate alternative minimum tax (“AMT”) and changing how the credits can be realized; (3) creating new limitations on deductions for interest expense; (4) changing rules related to limitations of net operating loss (“NOL”) carryforwards, and (5) enhancing and extending through 2026 the option to claim accelerated depreciation deductions on qualified property. 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 made after December 31, 2022. The sources of the differences between the financial accounting and tax bases of our assets and liabilities that give rise to the deferred tax assets and deferred tax liabilities and the tax effects of each are as follows: In thousands As of As of Deferred tax assets: NOL carry-forwards $ 7,399 $ 5,708 Credit carryforwards 267 547 Deferred revenue 5,984 6,376 Accrued expenses and reserves 13,344 10,233 Loss on equity and other investments 888 899 Stock-based compensation 6,050 5,214 Operating lease liabilities 119,916 115,870 Subtotal 153,848 144,847 Valuation allowances (5,760) (3,522) Total net deferred tax assets 148,088 141,325 Deferred tax liabilities: Depreciation of property and equipment (61,118) (59,446) Amortization of intangible assets (68,729) (70,946) Unrealized gains on hedging instruments (1,407) (3,568) Right of use asset (101,780) (97,954) Other (2,938) (3,281) Total deferred tax liabilities (235,972) (235,195) Net deferred tax liabilities $ (87,884) $ (93,870) As of fiscal year end 2023, our consolidated VIEs had available U.S. federal NOL carry-forwards aggregating to $21.7 million that can be utilized to reduce future federal income taxes, of which $21.6 million of carry-forward losses do not expire and $0.1 million of carry-forward losses expire at the end of fiscal year 2037. We believe it is more likely than not that we will realize a tax benefit for these NOL’s in the future except for $18.1 million of NOL carry-forwards ($3.8 million tax effected) on certain consolidated VIEs where we recognized a full valuation allowance as of fiscal year end 2023. In addition, we have NOL carry-forwards in varying amounts and with varying expiration dates in various states in which we operate. For the fiscal year end 2023, we have no federal credits remaining, but carry various state tax credits totaling $0.3 million are available to offset certain future taxes. These state credits carry a valuation allowance of $0.2 million as we do not expect to be able to utilize them in future tax years. We have a $0.9 million deferred income tax asset for capital losses associated with the losses realized on the sale of our equity method non-consolidated investee and other investments. We do not expect to generate significant capital gains in the near future. Therefore, we believe it is more likely than not that we will not realize a tax benefit for the majority of these deferred income tax assets, and accordingly we have established a full valuation allowance for the amount deemed unrealizable. As a result of our utilization of NOL carry-forwards to reduce or eliminate subsequent years’ tax obligations, our federal and a substantial number of our state income tax returns for fiscal years 2001 through 2023 remain open for examination by the tax authorities. The Company evaluates uncertain tax positions using a “more-likely-than-not” threshold and recognizes the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by tax authorities. The Company evaluates uncertain tax positions on a quarterly basis and considers various factors, including, but not limited to, changes in tax law, the measurement of tax positions taken or expected to be taken in tax returns, the effective settlement of matters subject to audit, information obtained during in-process audit activities and changes in facts or circumstances related to a tax position. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 12 Months Ended |
Dec. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | Revenue from Contracts with Customers The majority of our annual revenues are recognized either at the point of sale or upon delivery and customer acceptance, paid for at the time of sale in cash, credit card, or on account with managed care payors having terms generally between 14 and 120 days 90 days Revenues Recognized at a Point in Time Owned & Host Within our Owned & Host segment, product revenues include sales of prescription and non-prescription eyewear, contact lenses and related accessories to retail customers. For sales of in-store non-prescription eyewear and related accessories, we recognize revenue at the point of sale. For sales of prescription eyewear, we recognize revenue when the performance obligations identified under the terms of contracts with our customers are satisfied, which generally occurs, for products, when those products have been delivered and accepted by our customers. Within our Owned & Host segment services and plans revenues, eye exam services sold on a stand-alone basis are also recognized at the point of sale which occurs immediately after the exam is performed. Legacy Within our Legacy segment, product revenues include sales of prescription and non-prescription eyewear, contact lenses and related accessories to retail customers in transactions where the retail customer uses a managed-care payor; and wholesale sales of the same inventory types to the Legacy partner. The revenue recognition for the retail sales are identical to similar sales in the Owned & Host segment. Wholesale sales of inventory to the Legacy partner are recognized at the point in time when control of the inventory has been transferred in accordance with the contractual terms and conditions of sale. Since the wholesale sales of inventory to the Legacy partner are a separate performance obligation in our management & services agreement with the Legacy partner, we considered the appropriate allocation of consideration to wholesale inventory sales. We concluded that the difference between the stand-alone-selling price of the wholesale inventory and the contractual prices was not material. Within our Legacy segment services and plans revenues, eye exam services sold to retail customers are recognized at the point of sale which occurs immediately after the exam is performed. Corporate/Other Revenues from our non-reportable Corporate/Other segment are attributable to wholly owned subsidiaries AC Lens and FirstSight. AC Lens sells contact lenses and optical accessory products to retail customers through e-commerce, and recognizes revenue when products have been delivered to the customer. AC Lens also distributes contact lenses at its cost to Walmart and Sam’s Club under fee for services arrangements. This revenue is recorded on a gross basis as AC Lens is the principal in the arrangement since AC Lens controls the products in those transactions before the products are transferred to the customer. FirstSight issues individual vision plans in connection with our America’s Best operations in California, and, until February 23, 2024, provided or arranged for the provision of optometric services at certain optometric offices next to Walmart and Sam’s Club stores in California. Revenues Recognized Over Time Owned & Host Within our Owned & Host segment, services and plans revenues include revenues from product protection plans (i.e. warranties), eye care club memberships and HMO vision plan fees. We offer extended warranty plans in our Owned & Host segment that generally provide repair and replacement of eyeglasses for primarily a one-year term after purchase. We recognize service revenue under these programs on a straight-line basis over the warranty or service period which is consistent with our efforts expended to satisfy the obligation. We offer three-year eyecare club memberships in our Owned & Host segment to our contact lens customers. For these programs we apply the portfolio approach of recognizing revenues of contracts with similar characteristics and use estimates and assumptions that reflect the size and composition of the portfolio of contracts. We selected the portfolio approach because our historical club membership data demonstrate that our club customers behave similarly, such that the difference between the portfolio approach and calculating revenue of each individual contract is not material. We recognize revenue across the contract portfolio based on the value delivered to the customers relative to the remaining services promised under the programs. We determine the value delivered based on the expected timing and amount of customer usage of benefits over the terms of the contracts. The unamortized portion of amounts we collect in advance for these services and plans are reported as Deferred revenue (current and noncurrent portions) in the accompanying Consolidated Balance Sheets. Legacy Sales of services and plans in our Legacy segment include fees earned for managing the operations of our Legacy partner. These fees are recorded on a net basis and are based primarily on sales of products and product protection plans to non-managed care customers. We determined that under the terms of the arrangement our Legacy partner controls the products and services in the transaction with the retail customer and therefore we act as the agent in those transactions. We recognize this service revenue using the “right to invoice” method because our right to payment corresponds directly with the value of the management services provided to our Legacy partner. The following disaggregation of revenues depicts our revenues based on the timing of revenue recognition: In thousands Fiscal Year 2023 Fiscal Year 2022 Fiscal Year 2021 Revenues recognized at a point in time $ 1,970,509 $ 1,843,796 $ 1,908,221 Revenues recognized over time 155,959 161,608 171,304 Total net revenue $ 2,126,468 $ 2,005,404 $ 2,079,525 Refer to Note 15. “Segment Reporting” for the Company’s disaggregation of net revenue by reportable segment and product type. As the reportable segments are aligned by similar economic factors, trends and customers, the reportable segment disaggregation view best depicts how the nature, amount and uncertainty of revenue and cash flows are affected by economic factors. The following depicts a roll-forward of deferred revenue: Fiscal Year 2023 In thousands Product Protection Plans Eye Care Total Beginning of the year $ 35,119 $ 48,683 $ 83,802 Sold 73,369 52,496 125,865 Revenue recognized (72,069) (53,272) (125,341) End of year $ 36,419 $ 47,907 $ 84,326 Current $ 36,113 $ 26,754 $ 62,867 Noncurrent 306 21,153 21,459 $ 36,419 $ 47,907 $ 84,326 Fiscal Year 2022 In thousands Product Protection Plans Eye Care Total Beginning of the year $ 38,639 $ 49,852 $ 88,491 Sold 71,599 50,648 122,247 Revenue recognized (75,119) (51,817) (126,936) End of year $ 35,119 $ 48,683 $ 83,802 Current $ 34,808 $ 27,393 $ 62,201 Noncurrent 311 21,290 21,601 $ 35,119 $ 48,683 $ 83,802 Unsatisfied Performance Obligations (Contract Liabilities) During fiscal years 2023 and 2022, we recognized $62.1 million and $65.2 million, respectively, of deferred revenues outstanding at the beginning of each respective period. Deferred revenue recorded as of the end of fiscal year 2023 is expected to be reflected in future operating results as follows: Fiscal Year In thousands 2024 $ 62,867 2025 16,321 2026 5,111 Thereafter 27 $ 84,326 |
Leases
Leases | 12 Months Ended |
Dec. 30, 2023 | |
Leases [Abstract] | |
Leases | Leases Information related to our leases is presented below: In thousands As of As of Type Classification ASSETS Finance Property and equipment, net (a) $ 10,774 $ 14,962 Operating Right of use assets (b) 406,579 382,825 Total leased assets $ 417,353 $ 397,787 LIABILITIES Current Liabilities: Finance Current maturities of long-term debt and finance lease obligations $ 2,980 $ 4,137 Operating Current operating lease obligations (c) 85,392 77,186 Other noncurrent liabilities: Finance Long-term debt and finance lease obligations, less current portion and debt discount 13,087 17,157 Operating Noncurrent operating lease obligations 376,814 358,110 Total lease liabilities $ 478,273 $ 456,590 As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the net present value of minimum lease payments. We used the incremental borrowing rate on December 30, 2018 for operating leases that commenced prior to that date. _________ (a) Finance lease assets are recorded net of accumulated amortization of $25.4 million and $21.3 million as of December 30, 2023 and December 31, 2022, respectively. (b) TIA and deferred rent are treated as reductions of lease payments used to measure ROU assets in the accompanying Consolidated Balance Sheets as of December 30, 2023 and December 31, 2022. (c) Current operating lease liabilities are measured net of TIA receivables of $4.6 million and $6.7 million as of December 30, 2023 and December 31, 2022, respectively. In thousands Fiscal Year 2023 Fiscal Year 2022 Fiscal Year 2021 Operating lease cost Fixed lease cost (a) $ 99,334 $ 90,801 $ 84,019 Variable lease cost (b) 36,388 33,143 30,643 Sublease income (c) (3,684) (3,629) (3,557) Finance lease cost Amortization of finance lease assets 3,061 4,145 4,461 Interest on finance lease liabilities 1,675 2,342 2,923 Net lease cost $ 136,774 $ 126,802 $ 118,489 (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 operating lease properties to independent optometrists. Lease Term and Discount Rate As of As of Weighted average remaining lease term (months) Operating leases 73 74 Finance leases 58 65 Weighted average discount rate (a) Operating leases 4.7 % 4.4 % Finance leases (b) 10.4 % 10.8 % (a) The discount rate used to determine the lease assets and lease liabilities was derived upon considering (i) incremental borrowing rates on our term loan and revolving credit facility; (ii) fixed rates on interest rate swaps; (iii) Term SOFR margins for issuers of similar credit rating; and (iv) effect of collateralization. As a majority of our leases are five (b) The discount rate on finance leases is higher than operating leases because the present value of minimum lease payments was higher than the fair value of leased properties for certain leases entered into prior to adoption of ASC 842. The discount rate differential for those leases is not material to our results of operations. In thousands Fiscal Year 2023 Fiscal Year 2022 Fiscal Year 2021 Other Information Operating cash outflows - operating leases $ 106,168 $ 88,867 $ 89,324 Right of use assets acquired under operating leases $ 111,792 $ 110,387 $ 91,451 The following table summarizes the maturity of our lease liabilities as of December 30, 2023: In thousands Operating Leases (a) Finance Leases (b) Fiscal Year 2024 $ 96,270 $ 4,129 2025 108,628 4,625 2026 87,129 4,252 2027 72,277 3,379 2028 52,762 1,973 Thereafter 118,181 1,091 Total lease liabilities 535,247 19,449 Less: Interest 73,041 3,382 Present value of lease liabilities (c) $ 462,206 $ 16,067 _________ (a) Operating lease payments include $33.3 million related to options to extend lease terms that are reasonably certain of being exercised. (b) Finance lease payments include $1.1 million related to options to extend lease terms that are reasonably certain of being exercised. (c) The present value of lease liabilities excludes $35.3 million of legally binding minimum lease payments for leases signed but not yet commenced. |
Leases | Leases Information related to our leases is presented below: In thousands As of As of Type Classification ASSETS Finance Property and equipment, net (a) $ 10,774 $ 14,962 Operating Right of use assets (b) 406,579 382,825 Total leased assets $ 417,353 $ 397,787 LIABILITIES Current Liabilities: Finance Current maturities of long-term debt and finance lease obligations $ 2,980 $ 4,137 Operating Current operating lease obligations (c) 85,392 77,186 Other noncurrent liabilities: Finance Long-term debt and finance lease obligations, less current portion and debt discount 13,087 17,157 Operating Noncurrent operating lease obligations 376,814 358,110 Total lease liabilities $ 478,273 $ 456,590 As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the net present value of minimum lease payments. We used the incremental borrowing rate on December 30, 2018 for operating leases that commenced prior to that date. _________ (a) Finance lease assets are recorded net of accumulated amortization of $25.4 million and $21.3 million as of December 30, 2023 and December 31, 2022, respectively. (b) TIA and deferred rent are treated as reductions of lease payments used to measure ROU assets in the accompanying Consolidated Balance Sheets as of December 30, 2023 and December 31, 2022. (c) Current operating lease liabilities are measured net of TIA receivables of $4.6 million and $6.7 million as of December 30, 2023 and December 31, 2022, respectively. In thousands Fiscal Year 2023 Fiscal Year 2022 Fiscal Year 2021 Operating lease cost Fixed lease cost (a) $ 99,334 $ 90,801 $ 84,019 Variable lease cost (b) 36,388 33,143 30,643 Sublease income (c) (3,684) (3,629) (3,557) Finance lease cost Amortization of finance lease assets 3,061 4,145 4,461 Interest on finance lease liabilities 1,675 2,342 2,923 Net lease cost $ 136,774 $ 126,802 $ 118,489 (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 operating lease properties to independent optometrists. Lease Term and Discount Rate As of As of Weighted average remaining lease term (months) Operating leases 73 74 Finance leases 58 65 Weighted average discount rate (a) Operating leases 4.7 % 4.4 % Finance leases (b) 10.4 % 10.8 % (a) The discount rate used to determine the lease assets and lease liabilities was derived upon considering (i) incremental borrowing rates on our term loan and revolving credit facility; (ii) fixed rates on interest rate swaps; (iii) Term SOFR margins for issuers of similar credit rating; and (iv) effect of collateralization. As a majority of our leases are five (b) The discount rate on finance leases is higher than operating leases because the present value of minimum lease payments was higher than the fair value of leased properties for certain leases entered into prior to adoption of ASC 842. The discount rate differential for those leases is not material to our results of operations. In thousands Fiscal Year 2023 Fiscal Year 2022 Fiscal Year 2021 Other Information Operating cash outflows - operating leases $ 106,168 $ 88,867 $ 89,324 Right of use assets acquired under operating leases $ 111,792 $ 110,387 $ 91,451 The following table summarizes the maturity of our lease liabilities as of December 30, 2023: In thousands Operating Leases (a) Finance Leases (b) Fiscal Year 2024 $ 96,270 $ 4,129 2025 108,628 4,625 2026 87,129 4,252 2027 72,277 3,379 2028 52,762 1,973 Thereafter 118,181 1,091 Total lease liabilities 535,247 19,449 Less: Interest 73,041 3,382 Present value of lease liabilities (c) $ 462,206 $ 16,067 _________ (a) Operating lease payments include $33.3 million related to options to extend lease terms that are reasonably certain of being exercised. (b) Finance lease payments include $1.1 million related to options to extend lease terms that are reasonably certain of being exercised. (c) The present value of lease liabilities excludes $35.3 million of legally binding minimum lease payments for leases signed but not yet commenced. |
Fair Value Measurement
Fair Value Measurement | 12 Months Ended |
Dec. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement | Fair Value Measurement General The Company uses a fair value hierarchy that is intended to increase consistency and comparability in fair value measurements and related disclosures. The fair value hierarchy is based on inputs to valuation techniques that are used to measure fair value that are either observable or unobservable. Observable inputs reflect assumptions market participants would use in pricing an asset or liability based on market data obtained from independent sources while unobservable inputs reflect a reporting entity’s own market assumptions. The Company is required to measure certain assets and liabilities at fair value or disclose the fair values of certain assets and liabilities recorded at cost. Accounting standards define fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is estimated assuming the transaction occurs in the principal or most advantageous market for the asset or liability and includes consideration of non-performance risk and credit risk of both parties. A three-tier fair value hierarchy prioritizes the inputs used in measuring fair value. These tiers include: • Level 1 - Valuation inputs are based upon unadjusted quoted prices for identical instruments traded in active markets. • Level 2 - Valuation inputs are based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in inactive markets, and model-based valuation techniques for which all significant assumptions are observable in the market or can be corroborated by observable market data for substantially the full term of the instruments. • Level 3 - Valuation inputs are unobservable and typically reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability. The fair values are determined using model-based techniques that include discounted cash flow models and similar techniques. The fair value estimates of financial instruments are not necessarily indicative of the amounts we might pay or receive in actual market transactions. The use of different market assumptions and/or estimation methodologies may have a material impact on the estimated fair value amounts. 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 13. “Interest Rate Derivatives” for further details. Non-recurring fair value measurements Long-lived and Right of Use (“ROU”) Store Assets Refer to Note 2. “Termination of Walmart Partnership” for more information on impairment charges related to the termination of the Walmart partnership. This section discusses fair value measurements unrelated to the termination of the Walmart partnership. We recognized impairments of $2.8 million, $5.8 million and $4.4 million in fiscal years 2023, 2022 and 2021, respectively, primarily related to our store assets. The cash flows used in estimating fair value were discounted using market rates from 10.8% to 11.5%. 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 fiscal years 2023 and 2022 was $2.8 million and $7.0 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 in fiscal years 2023 and 2022 represents the fair value of ROU assets. Refer to Note 1. “Business and Significant Accounting Policies.” Additional fair value information Cash Equivalents and Restricted Cash The carrying amount of cash equivalents and restricted cash approximates fair value due to the short-term maturity of the instruments. All cash and cash equivalents are denominated in U.S. currency. Accounts Receivable, Net The carrying amount of accounts receivable approximates fair value due to the short-term nature of those items and the effect of credit losses. Accounts Payable and Other Payables and Accrued Expenses The carrying amounts of accounts payable and other payables and accrued expenses approximate fair value due to the short-term nature of those items. Long-term Debt - Term Loan A and Revolving Loans Since the borrowings under the $146.3 million outstanding principal Term Loan A and $300.0 million aggregate principal 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 Loan A and Revolving Loans. Refer to Note 5. “Long-term Debt.” Long-term Debt - 2025 Notes The estimated fair value of the 2025 Notes was approximately $303.3 million and $553.9 million, as of December 30, 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. Refer to Note 5. “Long-term Debt” for more information on the 2025 Notes. |
Deferred Revenue
Deferred Revenue | 12 Months Ended |
Dec. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Deferred Revenue | Revenue from Contracts with Customers The majority of our annual revenues are recognized either at the point of sale or upon delivery and customer acceptance, paid for at the time of sale in cash, credit card, or on account with managed care payors having terms generally between 14 and 120 days 90 days Revenues Recognized at a Point in Time Owned & Host Within our Owned & Host segment, product revenues include sales of prescription and non-prescription eyewear, contact lenses and related accessories to retail customers. For sales of in-store non-prescription eyewear and related accessories, we recognize revenue at the point of sale. For sales of prescription eyewear, we recognize revenue when the performance obligations identified under the terms of contracts with our customers are satisfied, which generally occurs, for products, when those products have been delivered and accepted by our customers. Within our Owned & Host segment services and plans revenues, eye exam services sold on a stand-alone basis are also recognized at the point of sale which occurs immediately after the exam is performed. Legacy Within our Legacy segment, product revenues include sales of prescription and non-prescription eyewear, contact lenses and related accessories to retail customers in transactions where the retail customer uses a managed-care payor; and wholesale sales of the same inventory types to the Legacy partner. The revenue recognition for the retail sales are identical to similar sales in the Owned & Host segment. Wholesale sales of inventory to the Legacy partner are recognized at the point in time when control of the inventory has been transferred in accordance with the contractual terms and conditions of sale. Since the wholesale sales of inventory to the Legacy partner are a separate performance obligation in our management & services agreement with the Legacy partner, we considered the appropriate allocation of consideration to wholesale inventory sales. We concluded that the difference between the stand-alone-selling price of the wholesale inventory and the contractual prices was not material. Within our Legacy segment services and plans revenues, eye exam services sold to retail customers are recognized at the point of sale which occurs immediately after the exam is performed. Corporate/Other Revenues from our non-reportable Corporate/Other segment are attributable to wholly owned subsidiaries AC Lens and FirstSight. AC Lens sells contact lenses and optical accessory products to retail customers through e-commerce, and recognizes revenue when products have been delivered to the customer. AC Lens also distributes contact lenses at its cost to Walmart and Sam’s Club under fee for services arrangements. This revenue is recorded on a gross basis as AC Lens is the principal in the arrangement since AC Lens controls the products in those transactions before the products are transferred to the customer. FirstSight issues individual vision plans in connection with our America’s Best operations in California, and, until February 23, 2024, provided or arranged for the provision of optometric services at certain optometric offices next to Walmart and Sam’s Club stores in California. Revenues Recognized Over Time Owned & Host Within our Owned & Host segment, services and plans revenues include revenues from product protection plans (i.e. warranties), eye care club memberships and HMO vision plan fees. We offer extended warranty plans in our Owned & Host segment that generally provide repair and replacement of eyeglasses for primarily a one-year term after purchase. We recognize service revenue under these programs on a straight-line basis over the warranty or service period which is consistent with our efforts expended to satisfy the obligation. We offer three-year eyecare club memberships in our Owned & Host segment to our contact lens customers. For these programs we apply the portfolio approach of recognizing revenues of contracts with similar characteristics and use estimates and assumptions that reflect the size and composition of the portfolio of contracts. We selected the portfolio approach because our historical club membership data demonstrate that our club customers behave similarly, such that the difference between the portfolio approach and calculating revenue of each individual contract is not material. We recognize revenue across the contract portfolio based on the value delivered to the customers relative to the remaining services promised under the programs. We determine the value delivered based on the expected timing and amount of customer usage of benefits over the terms of the contracts. The unamortized portion of amounts we collect in advance for these services and plans are reported as Deferred revenue (current and noncurrent portions) in the accompanying Consolidated Balance Sheets. Legacy Sales of services and plans in our Legacy segment include fees earned for managing the operations of our Legacy partner. These fees are recorded on a net basis and are based primarily on sales of products and product protection plans to non-managed care customers. We determined that under the terms of the arrangement our Legacy partner controls the products and services in the transaction with the retail customer and therefore we act as the agent in those transactions. We recognize this service revenue using the “right to invoice” method because our right to payment corresponds directly with the value of the management services provided to our Legacy partner. The following disaggregation of revenues depicts our revenues based on the timing of revenue recognition: In thousands Fiscal Year 2023 Fiscal Year 2022 Fiscal Year 2021 Revenues recognized at a point in time $ 1,970,509 $ 1,843,796 $ 1,908,221 Revenues recognized over time 155,959 161,608 171,304 Total net revenue $ 2,126,468 $ 2,005,404 $ 2,079,525 Refer to Note 15. “Segment Reporting” for the Company’s disaggregation of net revenue by reportable segment and product type. As the reportable segments are aligned by similar economic factors, trends and customers, the reportable segment disaggregation view best depicts how the nature, amount and uncertainty of revenue and cash flows are affected by economic factors. The following depicts a roll-forward of deferred revenue: Fiscal Year 2023 In thousands Product Protection Plans Eye Care Total Beginning of the year $ 35,119 $ 48,683 $ 83,802 Sold 73,369 52,496 125,865 Revenue recognized (72,069) (53,272) (125,341) End of year $ 36,419 $ 47,907 $ 84,326 Current $ 36,113 $ 26,754 $ 62,867 Noncurrent 306 21,153 21,459 $ 36,419 $ 47,907 $ 84,326 Fiscal Year 2022 In thousands Product Protection Plans Eye Care Total Beginning of the year $ 38,639 $ 49,852 $ 88,491 Sold 71,599 50,648 122,247 Revenue recognized (75,119) (51,817) (126,936) End of year $ 35,119 $ 48,683 $ 83,802 Current $ 34,808 $ 27,393 $ 62,201 Noncurrent 311 21,290 21,601 $ 35,119 $ 48,683 $ 83,802 Unsatisfied Performance Obligations (Contract Liabilities) During fiscal years 2023 and 2022, we recognized $62.1 million and $65.2 million, respectively, of deferred revenues outstanding at the beginning of each respective period. Deferred revenue recorded as of the end of fiscal year 2023 is expected to be reflected in future operating results as follows: Fiscal Year In thousands 2024 $ 62,867 2025 16,321 2026 5,111 Thereafter 27 $ 84,326 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Contractual Commitments As of December 30, 2023, the Company had contractual commitments of approximately $243.6 million consisting of agreements for merchandise purchases, technology and advertising. Warranty Costs The Company records an allowance for the estimated amount of future warranty costs when the related revenue is recognized, which is recorded in Other payables and accrued expenses on the accompanying Consolidated Balance Sheets. Expense associated with warranty costs is presented in Cost of services and plans in the accompanying Consolidated Statements of Operations. Estimated future warranty costs are primarily based on historical experience of identified warranty claims. However, there can be no assurance that future warranty costs will not exceed historical amounts. The following details the activity in our product warranty liability accounts: In thousands Fiscal Year 2023 Fiscal Year 2022 Beginning of year balance $ 2,183 $ 2,063 Accrued obligation 37,135 36,100 Claims paid (36,855) (35,980) End of year balance $ 2,463 $ 2,183 401(k) Plan The Company sponsors a 401(k) plan into which associates may defer a portion of their wages. We match a portion of such deferred wages. The expense for the plan was $7.8 million, $6.4 million and $8.7 million in the fiscal years ended 2023, 2022 and 2021, respectively. Expense associated with our 401(k) plan is presented in SG&A in the Consolidated Statements of Operations. Legal Proceedings From time to time, the Company is involved in various legal proceedings incidental to its business. Because of the nature and inherent uncertainties of litigation, we cannot predict with certainty the ultimate resolution of these actions and, should the outcome of these actions be unfavorable, the Company’s business, financial position, results of operations or cash flows could be materially and adversely affected. The Company reviews the status of its legal proceedings and records a provision for a liability when it is considered probable that 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. On September 29, 2023, the state court set the PAGA action for trial on October 7, 2024. Mediation has been scheduled in March 2024. The Company continues to dispute the plaintiff’s allegations and will vigorously defend the litigation. 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. On August 15, 2023, the parties filed a stipulation to stay the case in the Southern District of California pending the resolution of the lawsuit pending in the Northern District of California. On August 21, 2023, the court entered an Order to Show Cause why the action should not be either dismissed or transferred to the federal court for the Northern District of California. Following the parties’ submission of their respective responses, the court dismissed the action without prejudice on September 11, 2023. The plaintiff retains his ability to pursue a PAGA action in state court pursuant to the June 6, 2023 notice. On January 22, 2024, the plaintiff filed a demand for arbitration of the claims set forth in the Complaint previously filed in state court in June 2023. We dispute the plaintiff’s allegations and intend to vigorously defend the litigation. 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. On August 21, 2023, the Company filed a Motion to Dismiss the Amended Complaint. The plaintiffs filed their Response in Opposition to this motion on October 5, 2023. The court heard oral argument on this motion on January 18, 2024. We dispute these allegations and intend to defend the litigation vigorously. |
Interest Rate Derivatives
Interest Rate Derivatives | 12 Months Ended |
Dec. 30, 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. The aggregate notional amount of the interest rate collar, which is not designated as a cash flow hedge, was $325.0 million as of December 30, 2023. The fair value of our interest rate collar instrument was an asset of $5.6 million, which is recorded in Prepaid expenses and other current assets as of December 30, 2023. The fair value of our interest rate collar instrument was 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. “Details of Certain Balance Sheet Accounts” and Note 10. “Fair Value Measurement” for further details. We recognized (gains) losses on the change in fair value of the interest rate collar of $(2.3) million, $(18.0) million, and $(4.2) million in interest expense Cash flows related to derivatives qualifying as hedges are included in the same section of the Consolidated Statements of Cash Flows as the underlying assets and liabilities being hedged. Cash flows during fiscal years 2023 and 2022 related to derivatives not qualifying as hedges were included in the operating section of the Consolidated Statements of Cash Flows and were immaterial. As of December 30, 2023, the Company expects to reclassify approximately $0.4 million of unrealized losses on derivative instruments, net of tax, from AOCL into earnings in the next 12 months as the derivative instruments mature. See Note 16. “Accumulated Other Comprehensive Loss” for further details. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 30, 2023 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Basic earnings per share (“EPS”) is computed by dividing net income by the weighted average number of common shares outstanding for the period. Diluted EPS is computed by dividing net income by the weighted average shares outstanding for the period and includes the dilutive impact of potential new shares issuable upon vesting and exercise of stock options, vesting of restricted stock units, and assumed conversion of the 2025 Notes. Potential shares of common stock are excluded from the computation of diluted EPS if their effect is anti-dilutive. 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. A reconciliation of the numerators and denominators of the basic and diluted EPS calculations is as follows: In thousands, except EPS Fiscal Year 2023 Fiscal Year 2022 Fiscal Year 2021 Net income (loss) $ (65,901) $ 42,122 $ 128,244 After-tax interest expense for 2025 Notes — — 9,483 Numerator for diluted EPS $ (65,901) $ 42,122 $ 137,727 Weighted average shares outstanding for basic EPS 78,313 79,831 81,820 Effect of dilutive securities: Stock options — 190 919 Restricted Stock — 277 483 2025 Notes — — 12,912 Weighted average shares outstanding for diluted EPS 78,313 80,298 96,134 Basic EPS $ (0.84) $ 0.53 $ 1.57 Diluted EPS $ (0.84) $ 0.52 $ 1.43 Anti-dilutive securities excluded from diluted weighted average common shares 12,796 13,282 94 |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 30, 2023 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting The Company’s reportable segments were determined on the same basis as used by the Chief Operating Decision Maker (“CODM”) to evaluate performance internally. Our operations consist of two reportable segments: • Owned & Host store brands - Our owned brands consist of our America’s Best and Eyeglass World operating segments. In America’s Best stores, vision care services are provided by optometrists employed either by us or by independent professional corporations. Eyeglass World locations offer eye exams, primarily provided by independent optometrists, and have on-site laboratories. Our two Host operating segments consist of Military and Fred Meyer. These brands provide eye exams principally by independent optometrists in nearly all locations. We have aggregated our America’s Best, Eyeglass World, Military and Fred Meyer operating segments into a single reportable segment due to similar economic characteristics and similarity of the nature of products and services, production processes, class of customers, regulatory environment and distribution methods of those brands. • Legacy - As of December 30, 2023, the Company managed the operations of, and supplied inventory and lab processing services to, 225 Legacy retail Vision Centers. We earned management fees as a result of providing such services and therefore we recorded revenue related to sales of products and product protection plans to our Legacy partner’s customers on a net basis. We also sold to our Legacy partner wholesale merchandise that was stocked in retail locations and provided central lab processing for the finished eyeglasses and frames expected to be sold to our Legacy partner’s customers. Sales of services and plans in our Legacy segment consisted of fees earned for managing the operations of our Legacy partner and revenues associated with the provision of eye exams for our managed care customers. Revenues associated with managing operations of our Legacy partner were $30.6 million, $34.7 million and $41.7 million for fiscal years ended 2023, 2022 and 2021, respectively. The Walmart MSA terminated on February 23, 2024 and we no longer operate Vision Centers for Walmart. Refer to Note 2. “Termination of Walmart Partnership” for developments related to the Legacy segment, AC Lens and FirstSight. The “Corporate/Other” category includes the results of operations of our other operating segments and corporate overhead support. Revenues from the Corporate/Other segments are attributable to the AC Lens and FirstSight operating segments. AC Lens primarily sells contact lenses and optical accessory products to retail customers through e-commerce. AC Lens also distributes contact lenses to certain Walmart and Sam’s Club under fee for services arrangements. FirstSight sells single service health plans in connection with the operations of America’s Best operations in California, and, until February 23, 2024, arranged for the provision of optometric services at the offices next to Walmart stores throughout California, at which time the agreements between FirstSight and Walmart terminated. None of those segments met the quantitative thresholds for determining reportable segments for any of the periods presented. The “Reconciliations” category represents other adjustments to reportable segment results necessary for the presentation of consolidated financial results in accordance with U.S. GAAP for the two reportable segments. The operating segments identified above are the business activities of the Company for which discrete financial information is available and for which operating results are regularly reviewed by our CODM to allocate resources and assess performance. Our CODM is our chief executive officer. The Company considers each of our brands to be an operating segment and has further concluded that presenting the results of our reportable segments provides meaningful information consistent with the objectives of ASC 280, Segment Reporting . Strategic initiatives and financial objectives for each reportable segment are determined at the corporate level. Each operating segment is responsible for implementing defined strategic initiatives and achieving certain financial objectives, and has a general manager responsible for the sales and marketing initiatives and financial results for product lines within the segment. 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) 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. We incurred $0.6 million and $1.5 million of costs during fiscal years 2022 and 2021, respectively, directly related to adapting the Company’s operations to the COVID-19 pandemic such as personal protective equipment and other supplies needed to operate our stores safely and certain other costs such as compensation and other administrative expenses. Incremental expenses related to the COVID-19 pandemic were allocated to the reportable 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 CODM regularly reviews. Asset information is not included in the following summary since the CODM does not regularly review such information for the reportable segments. Fiscal Year 2023 In thousands Owned & Host Legacy Corporate/Other Reconciliations Total Net product sales $ 1,396,355 $ 101,776 $ 252,355 $ (6,350) $ 1,744,136 Net sales of services and plans 333,693 49,118 72 (551) 382,332 Total net revenue 1,730,048 150,894 252,427 (6,901) 2,126,468 Cost of products 401,385 46,036 218,814 (1,646) 664,589 Cost of services and plans 310,643 24,866 812 — 336,321 Total costs applicable to revenue 712,028 70,902 219,626 (1,646) 1,000,910 SG&A 670,337 56,790 264,756 — 991,883 Asset impairment — — 82,413 — 82,413 Other expense (income), net — — (164) — (164) Loss on extinguishment of debt — — 599 — 599 EBITDA $ 347,683 $ 23,202 $ (314,803) $ (5,255) Depreciation and amortization 98,252 Interest expense, net 14,339 Earnings (loss) before income taxes $ (61,764) Fiscal Year 2022 In thousands Owned & Host Legacy Corporate/Other Reconciliations Total Net product sales $ 1,317,673 $ 99,161 $ 242,822 $ (11,341) $ 1,648,315 Net sales of services and plans 299,695 52,716 — 4,678 357,089 Total net revenue 1,617,368 151,877 242,822 (6,663) 2,005,404 Cost of products 380,717 46,375 211,872 (2,640) 636,324 Cost of services and plans 265,598 23,665 — — 289,263 Total costs applicable to revenue 646,315 70,040 211,872 (2,640) 925,587 SG&A 629,421 58,217 227,717 — 915,355 Asset impairment — — 5,783 — 5,783 Other expense (income), net — — (2,552) — (2,552) EBITDA $ 341,632 $ 23,620 $ (199,998) $ (4,023) Depreciation and amortization 99,956 Interest expense, net 462 Earnings before income taxes $ 60,813 Fiscal Year 2021 In thousands Owned & Host Legacy Corporate/Other Reconciliations Total Net product sales $ 1,375,983 $ 103,249 $ 236,299 $ 2,813 $ 1,718,344 Net sales of services and plans 307,732 62,228 — (8,779) 361,181 Total net revenue 1,683,715 165,477 236,299 (5,966) 2,079,525 Cost of products 377,489 49,258 205,670 699 633,116 Cost of services and plans 246,342 25,321 — — 271,663 Total costs applicable to revenue 623,831 74,579 205,670 699 904,779 SG&A 618,413 57,838 224,547 — 900,798 Asset impairment — — 4,427 — 4,427 Other expense (income), net — — (2,505) — (2,505) EBITDA $ 441,471 $ 33,060 $ (195,840) $ (6,665) Depreciation and amortization 97,089 Interest expense, net 25,612 Earnings before income taxes $ 149,325 Entity-wide Information The following table presents our consolidated net product revenue information: In thousands Fiscal Year 2023 Fiscal Year 2022 Fiscal Year 2021 Net Product Sales Eyeglasses and sunglasses $ 1,192,525 $ 1,120,731 $ 1,201,386 Contact lenses 543,411 520,709 509,992 Accessories and other 8,200 6,875 6,966 Total net product revenues $ 1,744,136 $ 1,648,315 $ 1,718,344 In fiscal years 2023, 2022 and 2021, respectively, revenues from Walmart, recognized in our Legacy segment and Corporate/Other category, represented $297.1 million, $291.5 million and $300.8 million of our total net revenue. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 12 Months Ended |
Dec. 30, 2023 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss Changes in the fair value of the Company’s cash flow hedge derivative instruments from their inception are recorded in AOCL if the instruments are deemed to be highly effective as cash flow hedges. The following table presents the changes in AOCL, net of tax during the fiscal years 2023, 2022 and 2021, respectively: In thousands Fiscal Year 2023 Fiscal Year 2022 Fiscal Year 2021 Cash flow hedging activity Balance at beginning of fiscal year $ (1,179) $ (1,940) $ (4,400) Other comprehensive income (loss) before reclassification — — (10) Tax effect of other comprehensive income (loss) before reclassification — — 3 Amount reclassified from AOCL 1,019 1,020 6,168 Tax effect of amount reclassified from AOCL (259) (259) (1,576) Stranded tax effect of matured interest rate swaps — — (2,125) Net current period other comprehensive income (loss), net of tax 760 761 2,460 Balance at end of fiscal year $ (419) $ (1,179) $ (1,940) See Note 13. “Interest Rate Derivatives” for a description of the Company’s use of cash flow hedging derivatives. |
Schedule I - Condensed Financia
Schedule I - Condensed Financial Information of Registrant | 12 Months Ended |
Dec. 30, 2023 | |
Condensed Financial Information Disclosure [Abstract] | |
Schedule I - Condensed Financial Information of Registrant | Schedule I - Condensed Financial Information of Registrant National Vision Holdings, Inc. and Subsidiaries (Parent Company Only) Condensed Balance Sheets In Thousands, Except Par Value As of December 30, 2023 As of December 31, 2022 ASSETS Current assets: Cash and cash equivalents $ 233 $ 841 Prepaid expenses and other current assets — — Total current assets 233 841 Deferred income taxes 10,245 7,844 Investment in subsidiary 1,201,291 1,368,303 Total noncurrent assets 1,211,536 1,376,147 Total assets $ 1,211,769 $ 1,376,988 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Other payables and accrued expenses $ 1,130 $ 1,336 Long-term debt, less current portion and debt discount 300,000 396,801 Noncurrent liabilities: Other liabilities 81,221 77,738 Total other noncurrent liabilities 81,221 77,738 Stockholders’ equity: Common stock, $0.01 par value; 200,000 shares authorized; 84,831 and 84,273 shares issued as of December 30, 2023 and December 31, 2022, respectively; 78,311 and 78,992 shares outstanding as of December 30, 2023 and December 31, 2022, respectively 848 842 Additional paid-in capital 788,967 767,112 Accumulated other comprehensive loss (419) (1,179) Retained earnings 254,616 320,517 Treasury stock, at cost; 6,520 and 5,281 shares as of December 30, 2023 and December 31, 2022, respectively (214,594) (186,179) Total stockholders’ equity 829,418 901,113 Total liabilities and stockholders’ equity $ 1,211,769 $ 1,376,988 The accompanying notes are an integral part of these condensed financial statements. Schedule I - Condensed Financial Information of Registrant National Vision Holdings, Inc. And Subsidiaries (Parent Company Only) Condensed Statements of Operations and Comprehensive Income In Thousands Fiscal Year 2023 Fiscal Year 2022 Fiscal Year 2021 Total net revenue $ — $ — $ — Total costs applicable to revenue — — — Total operating expenses 214 266 256 Interest expense, net 12,040 12,345 12,275 Loss on extinguishment of debt 599 — — Earnings (loss) before income taxes (12,853) (12,611) (12,531) Income tax provision (benefit) (2,401) (2,869) (2,898) Earnings (loss) before equity in net income of subsidiaries (10,452) (9,742) (9,633) Net income (loss) of subsidiaries (55,449) 51,864 137,877 Net income (loss) $ (65,901) $ 42,122 $ 128,244 Comprehensive income: Net income (loss) $ (65,901) $ 42,122 $ 128,244 Unrealized gain on hedge instruments 1,019 1,020 6,158 Tax provision of unrealized gain on hedge instruments 259 259 3,698 Comprehensive income (loss) $ (65,141) $ 42,883 $ 130,704 The accompanying notes are an integral part of these condensed financial statements. Schedule I - Condensed Financial Information of Registrant National Vision Holdings, Inc. and Subsidiaries (Parent Company Only) Condensed Statements of Cash Flows In Thousands Fiscal Year 2023 Fiscal Year 2022 Fiscal Year 2021 Cash flows from operating activities Net cash provided by operating activities $ (6,780) $ (9,744) $ 16,530 Cash flows from investing activities Dividend from (investment in) subsidiary 132,443 89,550 46,600 Net cash provided by (used for) investing activities 132,443 89,550 46,600 Cash flows from financing activities Repayments on long-term debt (99,250) (4) — Borrowings on long-term debt, net of discounts — — — Proceeds from issuance of common stock 1,837 3,744 11,838 Purchase of treasury stock (28,415) (84,388) (73,295) Payments of debt issuance costs (443) — — Net cash provided by (used for) financing activities (126,271) (80,648) (61,457) Net change in cash and cash equivalents (608) (842) 1,673 Cash and cash equivalents, beginning of year 841 1,683 10 Cash and cash equivalents, end of year $ 233 $ 841 $ 1,683 The accompanying notes are an integral part of these condensed financial statements. 1. Basis of Presentation National Vision Holdings, Inc. (“NVHI,” or the “Company”) conducts substantially all of its activities through its indirect wholly owned subsidiary, National Vision, Inc. (“NVI”) and its subsidiaries. NVHI was incorporated in Delaware on February 14, 2014 under the name Nautilus Parent, Inc. There were no financial transactions between the inception date and March 13, 2014, the date the majority ownership of NVI was transferred from private equity funds managed by Berkshire Partners LLC to affiliates of Kohlberg Kravis Roberts & Co. L.P. In October 2017, we completed the initial public offering of our common stock. By August 2019, each of KKR and Berkshire had sold their remaining holdings of our common stock. In the parent-company-only financial statements, NVHI’s investment in subsidiaries is stated at cost, plus equity in undistributed earnings of subsidiaries since the date of acquisition, less dividends. The parent-company-only financial statements should be read in conjunction with the NVHI consolidated financial statements. In May 2020, the Company issued $402.5 million principal amount of 2.50% convertible senior notes due 2025. The 2025 Notes pay interest semi-annually in arrears on May 15 and November 15 of each year, commencing on November 15, 2020, at an annual rate of 2.50% and are convertible into cash, shares of common stock or a combination of cash and shares of common stock, at our election, based on the applicable conversion rate at such time. NVHI contributed the proceeds from the 2025 Notes to NVI as additional investments during the fiscal year 2020. See Note 5. “Long-term Debt” to the NVHI consolidated financial statements for details of the 2025 Notes, including information on a repurchase of $100.0 million aggregate principal amount of our 2025 Notes in November 2023. 2. Guarantees and Restrictions As of December 30, 2023, NVI had $146.3 million of principal amount of long-term debt outstanding under its Term Loan A and no outstanding cash borrowings under its $300.0 million Revolving Loans, which includes $6.4 million in outstanding letters of credit. Under the terms of NVI’s amended credit agreement, provided no event of default has occurred and is continuing, NVI is permitted to pay dividends to NVHI with certain restrictions. |
Business and Significant Acco_2
Business and Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 30, 2023 | |
Accounting Policies [Abstract] | |
Fiscal Year | Fiscal Year We operate on a retail fiscal calendar that results in a given fiscal year consisting of a 52- or 53-week period ending on the Saturday closest to December 31. In a 52-week fiscal year, each quarter contains 13 weeks of operations; in a 53-week fiscal year, each of the first, second and third quarters include 13 weeks of operations and the fourth quarter includes 14 weeks of operations. References herein to “fiscal year 2023”, “fiscal year 2022” and “fiscal year 2021,” relate to the 52 weeks ended December 30, 2023, December 31, 2022, and January 1, 2022, respectively. Unless otherwise stated, references to years in this report relate to fiscal years rather than calendar years. |
Basis of Presentation and Principles of Consolidation | Basis of Presentation and Principles of Consolidation We prepare our consolidated financial statements in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The consolidated financial statements include our accounts and those of our subsidiaries, all of which are wholly-owned. All intercompany balances and transactions have been eliminated in consolidation. |
Reclassification | Certain fiscal year 2022 and fiscal year 2021 amounts within the Consolidated Statements of Cash Flows and footnotes to the financial statements have been reclassified to conform to the fiscal year 2023 presentation. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash consists of currency and demand deposits with financial institutions and money market funds. We consider all highly liquid investments with an original maturity of three months or less at the date of purchase to be cash equivalents. We also review cash balances on a bank by bank basis to identify book overdrafts. Book overdrafts occur when the amount of outstanding checks exceed the cash deposited at a bank. We reclassify book overdrafts, if any, to Accounts payable in the accompanying Consolidated Balance Sheets. |
Accounts Receivable, Net | Accounts Receivable, Net Accounts receivable associated with revenues consist primarily of trade receivables and credit card receivables. Trade receivables consist primarily of receivables from managed care payors and receivables from major retailers. While we have relationships with almost all vision care insurers in the U.S. and with all of the major carriers, currently, a relatively small number of payors comprise the majority of our managed care revenues, subjecting us to concentration risk. Accounts receivable are reduced by allowances for credit losses. Estimates of our allowance for credit losses are based on our historical and current operating, billing, and collection trends, as well as current conditions and reasonable and supportable forecasts about the future. Accounts receivable are written off after all collection attempts have been exhausted. Credit loss expense recognized on our receivables, which is presented in SG&A expenses in the Company’s Consolidated Statements of Operations, was approximately |
Inventories | Inventories |
Property and Equipment | Property and Equipment Property and equipment (“P&E”) is stated at cost less accumulated depreciation. Depreciation associated with P&E is included in Depreciation and amortization in the accompanying Consolidated Statements of Operations. When we retire or otherwise dispose of P&E, we remove the cost and related accumulated depreciation from our accounts and recognize any gain or loss on the sale of such assets in SG&A in the Consolidated Statements of Operations. We capitalize major replacements and remodeling, and recognize expenditures for maintenance and repairs in SG&A. |
Cloud Computing Arrangements | Cloud Computing Arrangements The Company capitalizes certain costs related to the acquisition and development of internal use software, including implementation costs incurred in a cloud computing arrangement during the application development stages of projects. Capitalized implementation costs are amortized on a straight-line basis over the expected term of the hosting arrangement, which includes consideration of the non-cancellable contractual term and reasonably certain renewals. Costs incurred during the preliminary project or the post-implementation stages of the project are expensed as incurred. Implementation costs are included in Other assets in our Consolidated Balance Sheets. Amortization of capitalized implementation costs is included in Selling, general and administrative expenses in the Consolidated Statements of Operations and Comprehensive Income. |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Indefinite-lived intangible assets include goodwill and our trademarks and tradenames; we evaluate these assets annually for impairment, or more frequently if events and circumstances indicate that it is more likely than not that goodwill or intangible assets are impaired. Our annual testing date for impairment of goodwill and indefinite-lived intangible assets is the first day of the fourth fiscal quarter, which for fiscal year 2023 was October 1, 2023. Costs to renew intangible assets are expensed as incurred. Finite-lived, amortizing intangible assets primarily consist of our contracts and relationships with certain retailers. We amortize finite-lived intangible assets on a straight-line basis over their estimated useful lives. Amortization expense associated with finite-lived intangible assets is included in Depreciation and amortization in the accompanying Consolidated Statements of Operations. Goodwill is impaired if a reporting unit’s carrying value exceeds its fair value, and impairment is calculated as the excess between carrying value over fair value. We consider each of our operating segments to be reporting units. We estimate the fair value of our reporting units using the income approach, which is based on a discounted cash flow analysis and calculate the fair value of reporting units by estimating after-tax cash flows discounted using a weighted average cost of capital that includes a company-specific risk premium. The cash flows used in the analysis are based on financial forecasts developed internally by management and require significant judgment. The significant unobservable inputs used in the fair value measurement of the reporting units are revenue growth rate, cost of sales, payroll expense growth rate and other store expenses growth rate. These assumptions are sensitive to future changes in the business profitability, changes in our business strategy and external market conditions, among other factors. A decrease to the long-term revenue growth rate assumption or an increase to the expense growth rate assumptions could require us to record goodwill impairment charges. If impairment indicators related to amortizing intangible assets are present, we estimate cash flows expected to be generated over the remaining useful lives of the related assets based on current projections. If the projected net undiscounted cash flows are less than the carrying value of the related assets, we then measure impairment based on a discounted cash flow model and record an impairment charge as the excess of carrying value over estimated fair value. We use the relief-from-royalty method to estimate fair value of our trademarks and trade names, which involves estimating a royalty rate based on comparable licensing arrangements, applying that rate to the revenue projections for the subject asset, and then estimating fair value using a discounted cash flow analysis; the discounted cash flow analysis uses a weighted average cost of capital that includes a company-specific risk premium. We record an impairment charge as the excess of carrying value over estimated fair value. |
Investments | Investments |
Fair Value Measurement of Assets and Liabilities | Fair Value Measurement of Assets and Liabilities The Company accounts for certain assets and liabilities at fair value. The Company generally uses a market approach, when practicable, in valuing financial instruments. For certain assets the Company may also use a valuation technique consistent with the income approach whereby future cash flows are converted to a single discounted amount. The carrying value of the Company’s cash equivalents and restricted cash, accounts receivables, accounts payable and other payables and accrued expenses, approximate fair value due to their short-term nature. Non-financial assets such as P&E, right of use (“ROU”) assets and intangible assets are subject to nonrecurring fair value measurements if impairment indicators are present. Factors we consider important that could trigger an impairment review include a significant under-performance compared to expected operating results, a significant or adverse change in customer business climate, and a significant negative industry or economic trend. |
Deferred Financing Costs and Loan Discounts | Deferred Financing Costs and Loan Discounts Costs incurred in connection with long-term debt which are paid directly to the Company’s lenders and to third parties are presented as reductions to our long-term debt balance, except for the costs related to our revolving credit facility which are presented as assets. These costs are amortized over the term of the related financing agreement and included in Interest expense, net in the accompanying Consolidated Statements of Operations. |
Self-Insurance Liabilities | Self-Insurance Liabilities We are primarily self-insured for workers’ compensation, associate health benefits and general liability claims. We record self-insurance liabilities based on claims filed, including the development of those claims and an estimate of claims incurred but not yet reported. Should a different amount of claims occur compared to what was estimated, or costs of the claims increase or decrease beyond what was anticipated, liabilities may need to be adjusted accordingly. We periodically update our estimates and record such adjustments in the period in which such determination is made. Self-insurance liabilities are recorded on an undiscounted basis in the accompanying Consolidated Balance Sheets. Refer to the following table and Note 3. “Details of Certain Balance Sheet Accounts” for further details. We reinsure worker’s compensation and medical claims above our retention levels with a highly rated financial institution that can be expected to fully perform under the terms of the arrangement. Estimated recoveries from reinsurance as of fiscal year end 2023 and 2022 are shown in the following table. In thousands Balance Sheet Classification As of As of Current portion Prepaid Expenses and Other Current Assets $ 990 $ 1,047 Noncurrent portion Other Assets 1,549 2,125 Total estimated recoveries from reinsurance $ 2,539 $ 3,172 |
Derivative Financial Instruments | Derivative Financial Instruments The Company uses interest rate derivatives to manage the exposure of its Term Secured Overnight Financing Rate (“Term SOFR”)-based debt to fluctuations in interest rates. If our derivatives are designated as cash flow hedges, we formally document our hedge relationships, including identification of the hedging instruments and the hedged items, as well as our risk management objectives and strategies for undertaking the hedge transactions. We record all interest rate derivatives in our Consolidated Balance Sheets on a gross basis at fair value. Fair value represents estimated amounts we would receive or pay upon a termination of interest rate derivatives prior to their scheduled expiration dates. The fair value was based on information that is model-driven and whose inputs were observable (Level 2 inputs) such as Term SOFR forward rates. We do not hold or enter into financial instruments for trading or speculative purposes. The gain or loss res ulting from fair value adjustments for highly effective cash flow hedges is recorded in Accumulated other comprehensive loss (“AOCL”) in the accompanying Consolidated Balance Sheets until the hedged item is recognized as Interest expense, net in the Consolidated Statements of Operations. The gain or loss resulting from fair value adjustments of derivatives not deemed to be highly effective cash flow hedges is recognized in Interest expense, net immediately. We perform periodic assessments of the effectiveness of our derivative contracts designated as hedges, if applicable. |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss |
Revenue Recognition | Revenue Recognition Net product sales include sales of prescription and non-prescription eyewear, contact lenses and related accessories to retail customers (including those covered by managed care) and sales of inventory in which our customer is another retail entity. Net sales of services and plans include sales of eye exams, eye care club membership fees, product protection plans (i.e. warranties) and HMO vision plan fees. Net sales of services and plans also include fees we earn for managing certain Vision Centers located in Walmart stores and performing laboratory processing services for our Legacy partner. At our America’s Best brand, our signature offer is two pairs of eyeglasses and a free eye exam for one low price (“two-pair offer”). Since an eye exam is a key component in the ability for acceptable prescription eyewear to be delivered to a customer, we concluded that the eye exam service, while capable of being distinct from the eyeglass product delivery, was not distinct in the context of the two-pair offer. As a result, we do not allocate revenue to the eye exam associated with the two-pair offer, and we record all revenue associated with the offer in Owned & Host net product sales when the customer has received and accepted the merchandise. Our retail customers generally make payments for prescription eyewear products at the time they place an order. Amounts we collect in advance for undelivered merchandise are reported as Unearned revenue in the accompanying Consolidated Balance Sheets. Unearned revenue at the end of a reporting period is estimated based on processing and delivery times throughout the current month which generally range from approximately seven Revenue is recognized net of sales taxes and returns and includes amounts billed to customers related to shipping and handling costs. The returns allowance is based on historical return patterns. Provisions for estimated returns are established and the expected costs continue to be recognized as reductions to revenue when the products are sold. Shipping and handling costs are accounted for as fulfillment costs and are included in costs applicable to revenue. We record reductions in revenue for estimated price concessions granted to managed care providers. |
Costs Applicable to Revenue | Costs Applicable to Revenue Costs applicable to revenue consist primarily of cost of products sold and costs of administering services and plans. Costs of products sold include (i) costs to procure non-prescription eyewear, contacts and accessories which we purchase and sell in their finished form, (ii) costs to manufacture finished prescription eyeglasses, including direct materials, labor and overhead and (iii) remake costs, warehousing and distribution expenses and internal transfer costs. Costs of services and plans include costs associated with warranty programs, eye care club memberships, HMO vision plan fees, eye care practitioner and eye exam technician payroll, taxes and benefits and optometric and other service costs. Depreciation and amortization are excluded from costs applicable to revenue and are presented separately on the accompanying Consolidated Statements of Operations. As a component of the Company’s procurement program, the Company frequently enters into contracts with its vendors that provide for payments of rebates or other allowances. These vendor payments are reflected when earned or as progress is made toward earning the rebate or allowance and, depending on the terms of the agreement with the vendor, are treated as a reduction of the carrying value of the inventory and a resultant reduction of cost of products. Rebates that have been earned but not yet received are recognized as an increase to Accounts receivable, net or a reduction to Accounts payable, depending on the nature of the agreement with the vendor, until the payment has been received. |
Selling, General and Administrative | Selling, General and Administrative SG&A includes store associate (including optician) payroll, taxes and benefits, occupancy and other store expenses, advertising and promotion, field services, and corporate support. Advertising and promotion costs, including online marketing arrangements, newspaper, direct mail, television and radio, are recorded in SG&A and expensed at the time the advertising first occurs. Production costs of future media advertising and related promotional campaigns are deferred until the advertising events occur. Non-capital expenditures associated with opening new stores, including rent, marketing expenses, travel and relocation costs, and training costs, are recorded in SG&A as incurred. Certain vendor contracts provide for marketing co-op allowances; such allowances are reflected when earned or as progress is made toward earning the allowance and are treated as a reduction of SG&A. |
Leases | Leases We lease our stores, distribution centers, corporate offices, and most of our laboratories. These leases generally have noncancelable lease terms of between five one The lease liability is measured at the present value of future lease payments over the lease term less TIAs receivable, and the ROU asset is measured at the lease liability amount, adjusted for prepaid lease payments, TIAs received and the lessee’s initial direct costs. As the rate implicit in the Company’s leases is not easily determinable, the Company’s incremental borrowing rate is used in calculating the present value of the sum of the lease payments. Factors incorporated into the calculation of the lease incremental borrowing rate include lease term, borrowing rates on the Company’s long-term debt, fixed rates on interest rate swaps, Term SOFR margins for issuers of similar credit rating to NVI and effect of collateralization. |
Stock-Based Compensation | Stock-Based Compensation |
Long-lived Asset Impairment | Long-lived Asset Impairment Non-financial assets such as P&E, ROU assets and intangible assets are subject to nonrecurring fair value measurements if impairment indicators are present. We evaluate impairment of long-lived tangible and ROU store assets at the store level, which is the lowest level at which independent cash flows can be identified, when events or conditions indicate the carrying values of such assets may not be recoverable. In making this evaluation, we may consider multiple factors including financial performance of the stores, regional and local business climates, industry or economic trends, future plans for the store operations and other qualitative factors. If the store’s projected undiscounted net cash flows expected to be generated by the related assets over the life of the primary asset within the asset group are less than the carrying value of the subject assets, we determine an estimate of the fair value of the asset group using an income approach based on discounted cash flows, which require estimates and assumptions related to forecasted store revenue growth rates and store profitability. If the fair value of the asset group is less than its carrying value, the loss is allocated to the long-lived assets of the group on a pro rata basis using the relative carrying amounts of those assets, except that the loss allocated to an individual long lived asset of the group shall not reduce the carrying amount of that asset below its fair value. We consider market-based indications of prevailing rental rates for retail space, market participant discount rates, and lease incentives when estimating the fair values of ROU assets. We assess non-store long-lived assets, including capitalized software costs in use or under development, for impairment if events or changes in circumstances indicate that the carrying value of those assets may not be recoverable. In fiscal year 2021, we impaired $0.8 million related to a write-off of certain capitalized software costs that were deemed to be obsolete due to a decision to cease further development. We did not recognize impairment related to capitalized software costs in fiscal year 2022. In fiscal year 2023, we impaired $5.6 million of capitalized software costs related to the impending termination of the agreement between AC Lens and Walmart. Refer to Note 2. “Termination of Walmart Partnership” for more information related to impairment charges related to the Legacy segment and AC Lens. |
Income Taxes | Income Taxes We account for deferred income taxes based on the asset and liability method. The Company must make certain estimates and judgments in determining income tax expense. We are required to determine the aggregate amount of income tax expense to accrue and the amount which will be currently payable or refundable based upon tax statutes of each jurisdiction in which the Company does business. Deferred income taxes are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets also include future tax benefits to be derived from the utilization of tax loss carry-forwards and application of certain carry-forward credits. The net carrying amount of deferred income tax assets and liabilities is recorded in noncurrent deferred income tax liabilities in the accompanying Consolidated Balance Sheets. Deferred income taxes are measured using enacted tax rates in effect for the years in which those differences are expected to be recovered or settled. The effect on deferred taxes from a change in the tax rate is recognized through continuing operations in the period that includes the enactment of the change. Changes in tax laws and rates could affect recorded deferred tax assets and liabilities in the future. A valuation allowance is recorded if it is more likely than not that some portion of a deferred tax asset will not be realized. Valuation allowances are released as positive evidence of future taxable income sufficient to realize the underlying deferred tax assets becomes available. |
Adoption of New Accounting Pronouncements and Future Adoption of Accounting Pronouncements | Adoption of New Accounting Pronouncements Convertible Instruments and Contracts in an Entity’s Own Equity. In August 2020, the FASB issued ASU No. 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity (“ASU 2020-06”). This new guidance simplifies and adds disclosure requirements for the accounting and measurement of convertible instruments and the settlement assessment for contracts in an entity’s own equity. The guidance also requires the application of the if-converted method to calculate the impact of convertible instruments on diluted earnings per share. ASU 2020-06 is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2021. The company early adopted the guidance in the first quarter of 2021 using the modified retrospective approach and recognized a cumulative effect of the change of $7.3 million as an adjustment to the opening balance of retained earnings. Upon adoption of ASU 2020-06 the Company eliminated the equity components related to its convertible debt and increased the related liability components by $82.9 million. In addition, as a result of the adoption, our deferred tax liabilities decreased by $18.8 million and additional paid-in capital decreased by $71.4 million. 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 5. “Long-term Debt” and Note 13. “Interest Rate Derivatives” for more information on our transition from LIBOR to Term SOFR. Segment reporting. In November 2023, the FASB issued Accounting Standards Update ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures . This update provides, among other things, enhanced segment disclosure requirements including disclosures about significant segment expenses. This ASU is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, and requires retrospective application to all prior periods presented in the financial statements. The Company is currently evaluating the impact of the guidance on the consolidated financial statements and disclosures. Income taxes. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (“ASU 2023-09”). ASU 2023-09 is intended to enhance the transparency and decision usefulness of income tax disclosures. The amendments in ASU 2023-09 address investor requests for enhanced income tax information primarily through changes to the rate reconciliation and income taxes paid information. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024, and for interim periods within fiscal years beginning after December 15, 2025. The Company is currently evaluating the impact of the guidance on the consolidated financial statements and disclosures. The FASB issued other accounting guidance during fiscal year 2023 that is not currently applicable or expected to have a material impact on the Company’s financial statements, and therefore, is not described above. |
Business and Significant Acco_3
Business and Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
Accounting Policies [Abstract] | |
Schedule of Property and Equipment, Net | We depreciate P&E for financial accounting purposes using the straight-line method over the following estimated useful lives: Buildings 34 years Equipment 3 - 10 years Information technology hardware and software (a) 2 - 5 years Furniture and fixtures 6 years Leasehold improvements (b) 5 - 10 years P&E under finance leases (b) 10 years ____________ (a) Costs of developing or obtaining software for internal use, such as direct costs of materials or services and internal payroll costs related to the software development projects, are capitalized to information technology hardware and software. (b) Depreciation of leasehold improvements is recognized over the shorter of the estimated useful life of the asset or the term of the lease. The term of the lease includes renewal options for additional periods if the exercise of the renewal is considered to be reasonably assured. In thousands As of As of Property and equipment, net: Land and building $ 3,736 $ 3,770 Equipment 287,983 257,661 Information technology hardware and software 131,954 151,562 Furniture and fixtures 77,890 71,932 Leasehold improvements 323,524 285,505 Construction in progress 29,643 36,099 Right of use assets under finance leases 36,219 36,219 890,949 842,748 Less: Accumulated depreciation (528,386) (482,973) $ 362,563 $ 359,775 |
Schedule of Business Insurance Recoveries | Estimated recoveries from reinsurance as of fiscal year end 2023 and 2022 are shown in the following table. In thousands Balance Sheet Classification As of As of Current portion Prepaid Expenses and Other Current Assets $ 990 $ 1,047 Noncurrent portion Other Assets 1,549 2,125 Total estimated recoveries from reinsurance $ 2,539 $ 3,172 |
Termination of Walmart Partne_2
Termination of Walmart Partnership (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Exit-Related Costs Recognized | The following table details charges recognized in the periods shown. We may incur other exit-related costs, which may be material. We anticipate approximately $8 million of additional costs to be incurred in connection with the termination of the Walmart partnership in 2024. In thousands Fiscal Year 2023 Impairment charges $ 79,658 Employee compensation benefits $ 5,666 Professional fees and other expenses $ 1,179 Inventory obsolescence $ 158 Total $ 86,661 |
Schedule of Other Payables and Accrued Expenses | The table below summarized the Company’s Other payables and accrued expenses balance related to the termination of the Walmart partnership. In thousands Employee Compensation Benefits Balance at December 31, 2022 $ — Expenses recognized during the period 5,666 Expenses paid during the period (442) Balance at December 30, 2023 $ 5,224 |
Details of Certain Balance Sh_2
Details of Certain Balance Sheet Accounts (Tables) | 12 Months Ended |
Dec. 30, 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 Consolidated Balance Sheets to the total of Cash, cash equivalents and restricted cash shown in the Consolidated Statement of Cash Flows: In thousands Fiscal Year 2023 Fiscal Year 2022 Fiscal Year 2021 Cash, cash equivalents and restricted cash: Cash and cash equivalents $ 149,896 $ 229,425 $ 305,800 Restricted cash included in other assets 1,131 1,199 1,076 $ 151,027 $ 230,624 $ 306,876 |
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 $ 43,518 $ 41,622 Credit card receivables 27,905 23,311 Other receivables (1) 15,747 15,478 Allowance for credit losses (316) (519) $ 86,854 $ 79,892 (1) Includes CARES Act receivable in the amount of $9.0 million and $9.0 million as of December 30, 2023 and December 31, 2022, respectively. |
Schedule of Inventories | In thousands As of As of Inventories: Raw materials and work in process (1) $ 57,367 $ 64,786 Finished goods 62,541 58,372 $ 119,908 $ 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 Property and Equipment, Net | We depreciate P&E for financial accounting purposes using the straight-line method over the following estimated useful lives: Buildings 34 years Equipment 3 - 10 years Information technology hardware and software (a) 2 - 5 years Furniture and fixtures 6 years Leasehold improvements (b) 5 - 10 years P&E under finance leases (b) 10 years ____________ (a) Costs of developing or obtaining software for internal use, such as direct costs of materials or services and internal payroll costs related to the software development projects, are capitalized to information technology hardware and software. (b) Depreciation of leasehold improvements is recognized over the shorter of the estimated useful life of the asset or the term of the lease. The term of the lease includes renewal options for additional periods if the exercise of the renewal is considered to be reasonably assured. In thousands As of As of Property and equipment, net: Land and building $ 3,736 $ 3,770 Equipment 287,983 257,661 Information technology hardware and software 131,954 151,562 Furniture and fixtures 77,890 71,932 Leasehold improvements 323,524 285,505 Construction in progress 29,643 36,099 Right of use assets under finance leases 36,219 36,219 890,949 842,748 Less: Accumulated depreciation (528,386) (482,973) $ 362,563 $ 359,775 |
Schedule of Other Payables and Accrued Expenses | In thousands As of As of Other payables and accrued expenses: Associate compensation and benefits $ 62,614 $ 37,451 Self-insurance liabilities 9,139 8,744 Capital expenditures 5,412 9,594 Advertising 6,446 3,811 Reserves for customer returns and remakes 9,093 7,676 Legacy management & services agreement 6,068 6,488 Income tax payable 1,863 103 Supplies and other store support expenses 5,434 4,215 Other 17,219 16,143 $ 123,288 $ 94,225 |
Schedule of Other Non-current Liabilities | In thousands As of As of Other noncurrent liabilities: Self-insurance liabilities $ 5,657 $ 6,292 Other 2,808 2,608 $ 8,465 $ 8,900 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The gross carrying amount and accumulated impairment of the Company’s goodwill balances for 2023 and 2022 are as follows: As of As of In thousands Gross Carrying Accumulated Gross Carrying Accumulated Owned & Host Segment $ 736,901 $ (19,357) $ 736,901 $ (19,357) Legacy Segment 60,069 (60,069) 60,069 — Corporate/Other 8,107 (8,107) 8,107 (8,107) $ 805,077 $ (87,533) $ 805,077 $ (27,464) |
Schedule of Indefinite-Lived Intangible Assets | Indefinite-lived intangible assets by major asset class are as follows: In thousands As of As of Trademarks and trade names: America’s Best $ 200,547 $ 200,547 Eyeglass World 40,000 40,000 $ 240,547 $ 240,547 |
Schedule of Amortizing Finite-Lived Intangible Assets | Finite-lived, amortizing intangible assets by major asset class are as shown in the following table. We remove assets from the table below once they are fully amortized. As of December 30, 2023 As of December 31, 2022 In thousands Gross Carrying Accumulated Remaining Life Gross Carrying Accumulated Remaining Life Contracts and relationships: Legacy (1) $ 345 $ (247) 0 $ 65,000 $ (52,080) 2 Fred Meyer 35,000 (14,915) 13 35,000 (13,389) 14 Other 151 (62) 2 897 (759) 3 $ 35,496 $ (15,224) $ 100,897 $ (66,228) (1) We recognized |
Schedule of Aggregate Future Estimated Amortization Expense | Aggregate future estimated amortization expense is shown in the following table: Fiscal Year In thousands 2024 $ 1,675 2025 1,563 2026 1,525 2027 1,525 2028 1,525 Thereafter 12,459 $ 20,272 |
Long-term Debt (Tables)
Long-term Debt (Tables) | 12 Months Ended |
Dec. 30, 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 $ 302,497 $ 402,497 Term Loan A, due June 13, 2028 146,250 150,000 Revolving Loans, due June 13, 2028 — — Long-term debt before unamortized discount and issuance costs 448,747 552,497 Unamortized discount and issuance costs - 2025 Notes (2,497) (5,696) Unamortized discount and issuance costs - Term Loan A (1,066) (570) Long-term debt less debt discount and issuance costs 445,184 546,231 Less current maturities (7,500) — Long-term debt - noncurrent portion 437,684 546,231 Finance lease obligations 16,067 21,294 Less current maturities (2,980) (4,137) Long-term debt and finance lease obligations, less current portion, discount, and issuance costs $ 450,771 $ 563,388 We recognized the following in Interest expense, net related to the 2025 Notes: In thousands Fiscal Year 2023 Fiscal Year 2022 Fiscal Year 2021 Contractual interest expense $ 9,747 $ 10,062 $ 10,063 Amortization of issuance costs $ 2,293 $ 2,283 $ 2,213 |
Schedule of Annual Maturities of Debt | Scheduled annual maturities of debt are as follows: Fiscal Year In thousands 2024 $ 5,625 2025 311,872 2026 7,500 2027 7,500 2028 116,250 Thereafter — $ 448,747 |
Stock Incentive Plans (Tables)
Stock Incentive Plans (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Stock Compensation Expense | The following table summarizes stock compensation expense under the Company’s plans, which is included in SG&A in the accompanying Consolidated Statements of Operations: In thousands Fiscal Year 2023 Fiscal Year 2022 Fiscal Year 2021 Stock options $ 763 $ 1,579 $ 2,632 RSUs and PSUs 19,260 11,460 11,217 RSAs — 314 852 Associate stock purchase plan 151 159 185 Pre-tax stock-based compensation expense $ 20,174 $ 13,512 $ 14,886 Income tax benefit (5,085) (3,428) (3,788) After-tax stock-based compensation expense $ 15,089 $ 10,084 $ 11,098 Stock options RSUs and PSUs Unrecognized compensation cost ( in thousands ) $ 126 $ 30,791 Expected remaining weighted-average period of expense recognition (in years) 0.20 1.91 |
Schedule of RSU, PSU, and RSA Activity | The following tables summarize RSU and PSU awards activity: RSUs Weighted average grant date fair value ($) PSUs Weighted average grant date fair value ($) Outstanding at December 31, 2022 786 $ 35.36 361 $ 38.86 Granted 725 22.65 451 22.35 Vested (352) 34.35 (112) 34.28 Forfeited (99) 30.19 (28) 35.45 Outstanding at December 30, 2023 1,060 $ 27.50 672 $ 28.68 Fiscal Year 2023 Fiscal Year 2022 Fiscal Year 2021 RSUs Weighted average grant date fair value of RSUs granted $ 22.65 $ 34.83 $ 46.52 Total fair value of RSUs vested (In thousands) $ 12,084 $ 6,176 $ 6,154 PSUs Weighted average grant date fair value of PSUs granted $ 22.35 $ 37.96 $ 46.17 Total fair value of PSUs vested (In thousands) $ 3,852 $ 3,118 $ — RSAs Weighted average grant date fair value of RSAs granted $ — $ — $ 48.39 Total fair value of RSAs vested (In thousands) $ — $ 800 $ 700 |
Service-based options | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Stock Option Activity | The following tables summarize service-based stock option activity. No service-based options were granted in fiscal years 2023 and 2022. Number of Options Outstanding (In thousands) Weighted Average Exercise Price ($) Weighted Average Remaining Contractual Life (Years) Aggregate Intrinsic Value (In thousands) ($) Outstanding options at December 31, 2022 628 $ 29.07 5.95 $ 6,733 Exercised (16) 15.59 Forfeited (13) 40.91 Outstanding options at December 30, 2023 599 $ 29.20 4.93 $ 981 Vested and exercisable at December 30, 2023 569 $ 28.35 4.82 $ 981 In thousands except per share values Fiscal Year 2023 Fiscal Year 2022 Fiscal Year 2021 Weighted average grant date fair value per share of options granted $ — $ — $ 23.39 Fair value of options vested $ 1,251 $ 3,073 $ 3,138 Aggregate intrinsic value of options exercised $ 147 $ 979 $ 23,091 |
Schedule of Valuation Assumptions for Stock Option Grants | The fair value of service-based options was estimated using the Black-Scholes-Merton option pricing model. The following is a summary of the assumptions used in this model for service-based options: 2021 Expected volatility 52.49% to 54.03% Expected term range (in years) 6.00 Expected risk-free interest rate 0.97% to 1.07% |
Performance-based options | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Stock Option Activity | The following table summarizes performance-based stock option activity: Number of Options Outstanding (In thousands) Weighted Average Exercise Price ($) Weighted Average Remaining Contractual Life (Years) Aggregate Intrinsic Value (In thousands) ($) Outstanding options at December 31, 2022 49 $ 15.74 4.56 $ 1,132 Exercised — — Outstanding options at December 30, 2023 49 $ 15.74 3.56 $ 255 Vested and exercisable at December 30, 2023 49 $ 15.74 3.56 $ 255 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax (Benefit) Provision | The income tax provision (benefit) consists of: In thousands Fiscal Year 2023 Fiscal Year 2022 Fiscal Year 2021 Current income tax: Federal $ 6,880 $ 2,829 $ 138 State 3,246 4,838 4,242 Deferred income tax: Federal (3,878) 11,079 15,015 State (2,111) (55) 1,686 Income tax provision (benefit) $ 4,137 $ 18,691 $ 21,081 |
Schedule of Effective Income Tax Rate Reconciliation | Our income tax provision (benefit) differs from the amounts computed by multiplying earnings (loss) before income taxes by the statutory federal income tax rate as shown in the following table: In thousands Fiscal Year 2023 Fiscal Year 2022 Fiscal Year 2021 Federal income tax provision at statutory rate $ (12,970) $ 12,771 $ 31,358 State income tax provision, net of federal income tax 1,305 3,527 7,130 Increase (decrease) in deferred tax asset valuation allowance 2,238 477 (441) Executive compensation limitation 354 1,218 283 Goodwill impairment 12,614 — — Stranded tax effect of matured interest rate swaps — — (2,125) Tax provision (benefit) of equity-based compensation deductions 1,211 (27) (14,408) Other, net (615) 725 (716) Net income tax provision (benefit) $ 4,137 $ 18,691 $ 21,081 Effective income tax rate (6.7) % 30.7 % 14.1 % |
Schedule of Deferred Tax Assets and Liabilities | The sources of the differences between the financial accounting and tax bases of our assets and liabilities that give rise to the deferred tax assets and deferred tax liabilities and the tax effects of each are as follows: In thousands As of As of Deferred tax assets: NOL carry-forwards $ 7,399 $ 5,708 Credit carryforwards 267 547 Deferred revenue 5,984 6,376 Accrued expenses and reserves 13,344 10,233 Loss on equity and other investments 888 899 Stock-based compensation 6,050 5,214 Operating lease liabilities 119,916 115,870 Subtotal 153,848 144,847 Valuation allowances (5,760) (3,522) Total net deferred tax assets 148,088 141,325 Deferred tax liabilities: Depreciation of property and equipment (61,118) (59,446) Amortization of intangible assets (68,729) (70,946) Unrealized gains on hedging instruments (1,407) (3,568) Right of use asset (101,780) (97,954) Other (2,938) (3,281) Total deferred tax liabilities (235,972) (235,195) Net deferred tax liabilities $ (87,884) $ (93,870) |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Revenues | The following disaggregation of revenues depicts our revenues based on the timing of revenue recognition: In thousands Fiscal Year 2023 Fiscal Year 2022 Fiscal Year 2021 Revenues recognized at a point in time $ 1,970,509 $ 1,843,796 $ 1,908,221 Revenues recognized over time 155,959 161,608 171,304 Total net revenue $ 2,126,468 $ 2,005,404 $ 2,079,525 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
Leases [Abstract] | |
Schedule of Lease Type and Classification on Balance Sheet | Information related to our leases is presented below: In thousands As of As of Type Classification ASSETS Finance Property and equipment, net (a) $ 10,774 $ 14,962 Operating Right of use assets (b) 406,579 382,825 Total leased assets $ 417,353 $ 397,787 LIABILITIES Current Liabilities: Finance Current maturities of long-term debt and finance lease obligations $ 2,980 $ 4,137 Operating Current operating lease obligations (c) 85,392 77,186 Other noncurrent liabilities: Finance Long-term debt and finance lease obligations, less current portion and debt discount 13,087 17,157 Operating Noncurrent operating lease obligations 376,814 358,110 Total lease liabilities $ 478,273 $ 456,590 As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the net present value of minimum lease payments. We used the incremental borrowing rate on December 30, 2018 for operating leases that commenced prior to that date. _________ (a) Finance lease assets are recorded net of accumulated amortization of $25.4 million and $21.3 million as of December 30, 2023 and December 31, 2022, respectively. (b) TIA and deferred rent are treated as reductions of lease payments used to measure ROU assets in the accompanying Consolidated Balance Sheets as of December 30, 2023 and December 31, 2022. (c) Current operating lease liabilities are measured net of TIA receivables of $4.6 million and $6.7 million as of December 30, 2023 and December 31, 2022, respectively. |
Schedule of Lease Cost | In thousands Fiscal Year 2023 Fiscal Year 2022 Fiscal Year 2021 Operating lease cost Fixed lease cost (a) $ 99,334 $ 90,801 $ 84,019 Variable lease cost (b) 36,388 33,143 30,643 Sublease income (c) (3,684) (3,629) (3,557) Finance lease cost Amortization of finance lease assets 3,061 4,145 4,461 Interest on finance lease liabilities 1,675 2,342 2,923 Net lease cost $ 136,774 $ 126,802 $ 118,489 (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 operating lease properties to independent optometrists. |
Schedule of Lease Terms and Discount Rate | Lease Term and Discount Rate As of As of Weighted average remaining lease term (months) Operating leases 73 74 Finance leases 58 65 Weighted average discount rate (a) Operating leases 4.7 % 4.4 % Finance leases (b) 10.4 % 10.8 % (a) The discount rate used to determine the lease assets and lease liabilities was derived upon considering (i) incremental borrowing rates on our term loan and revolving credit facility; (ii) fixed rates on interest rate swaps; (iii) Term SOFR margins for issuers of similar credit rating; and (iv) effect of collateralization. As a majority of our leases are five (b) The discount rate on finance leases is higher than operating leases because the present value of minimum lease payments was higher than the fair value of leased properties for certain leases entered into prior to adoption of ASC 842. The discount rate differential for those leases is not material to our results of operations. |
Schedule of Operating Lease Cash Flows | In thousands Fiscal Year 2023 Fiscal Year 2022 Fiscal Year 2021 Other Information Operating cash outflows - operating leases $ 106,168 $ 88,867 $ 89,324 Right of use assets acquired under operating leases $ 111,792 $ 110,387 $ 91,451 |
Schedule of Maturity for Operating Lease Liabilities | The following table summarizes the maturity of our lease liabilities as of December 30, 2023: In thousands Operating Leases (a) Finance Leases (b) Fiscal Year 2024 $ 96,270 $ 4,129 2025 108,628 4,625 2026 87,129 4,252 2027 72,277 3,379 2028 52,762 1,973 Thereafter 118,181 1,091 Total lease liabilities 535,247 19,449 Less: Interest 73,041 3,382 Present value of lease liabilities (c) $ 462,206 $ 16,067 _________ (a) Operating lease payments include $33.3 million related to options to extend lease terms that are reasonably certain of being exercised. (b) Finance lease payments include $1.1 million related to options to extend lease terms that are reasonably certain of being exercised. (c) The present value of lease liabilities excludes $35.3 million of legally binding minimum lease payments for leases signed but not yet commenced. |
Schedule of Maturity for Finance Lease Liabilities | The following table summarizes the maturity of our lease liabilities as of December 30, 2023: In thousands Operating Leases (a) Finance Leases (b) Fiscal Year 2024 $ 96,270 $ 4,129 2025 108,628 4,625 2026 87,129 4,252 2027 72,277 3,379 2028 52,762 1,973 Thereafter 118,181 1,091 Total lease liabilities 535,247 19,449 Less: Interest 73,041 3,382 Present value of lease liabilities (c) $ 462,206 $ 16,067 _________ (a) Operating lease payments include $33.3 million related to options to extend lease terms that are reasonably certain of being exercised. (b) Finance lease payments include $1.1 million related to options to extend lease terms that are reasonably certain of being exercised. (c) The present value of lease liabilities excludes $35.3 million of legally binding minimum lease payments for leases signed but not yet commenced. |
Deferred Revenue (Tables)
Deferred Revenue (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Roll-Forward of Deferred Revenue | The following depicts a roll-forward of deferred revenue: Fiscal Year 2023 In thousands Product Protection Plans Eye Care Total Beginning of the year $ 35,119 $ 48,683 $ 83,802 Sold 73,369 52,496 125,865 Revenue recognized (72,069) (53,272) (125,341) End of year $ 36,419 $ 47,907 $ 84,326 Current $ 36,113 $ 26,754 $ 62,867 Noncurrent 306 21,153 21,459 $ 36,419 $ 47,907 $ 84,326 Fiscal Year 2022 In thousands Product Protection Plans Eye Care Total Beginning of the year $ 38,639 $ 49,852 $ 88,491 Sold 71,599 50,648 122,247 Revenue recognized (75,119) (51,817) (126,936) End of year $ 35,119 $ 48,683 $ 83,802 Current $ 34,808 $ 27,393 $ 62,201 Noncurrent 311 21,290 21,601 $ 35,119 $ 48,683 $ 83,802 |
Schedule of Expected Deferred Revenue to be Reflected in Future Operating Results | Deferred revenue recorded as of the end of fiscal year 2023 is expected to be reflected in future operating results as follows: Fiscal Year In thousands 2024 $ 62,867 2025 16,321 2026 5,111 Thereafter 27 $ 84,326 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Product Warranty Liability | The following details the activity in our product warranty liability accounts: In thousands Fiscal Year 2023 Fiscal Year 2022 Beginning of year balance $ 2,183 $ 2,063 Accrued obligation 37,135 36,100 Claims paid (36,855) (35,980) End of year balance $ 2,463 $ 2,183 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 30, 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: In thousands, except EPS Fiscal Year 2023 Fiscal Year 2022 Fiscal Year 2021 Net income (loss) $ (65,901) $ 42,122 $ 128,244 After-tax interest expense for 2025 Notes — — 9,483 Numerator for diluted EPS $ (65,901) $ 42,122 $ 137,727 Weighted average shares outstanding for basic EPS 78,313 79,831 81,820 Effect of dilutive securities: Stock options — 190 919 Restricted Stock — 277 483 2025 Notes — — 12,912 Weighted average shares outstanding for diluted EPS 78,313 80,298 96,134 Basic EPS $ (0.84) $ 0.53 $ 1.57 Diluted EPS $ (0.84) $ 0.52 $ 1.43 Anti-dilutive securities excluded from diluted weighted average common shares 12,796 13,282 94 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 30, 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 CODM regularly reviews. Asset information is not included in the following summary since the CODM does not regularly review such information for the reportable segments. Fiscal Year 2023 In thousands Owned & Host Legacy Corporate/Other Reconciliations Total Net product sales $ 1,396,355 $ 101,776 $ 252,355 $ (6,350) $ 1,744,136 Net sales of services and plans 333,693 49,118 72 (551) 382,332 Total net revenue 1,730,048 150,894 252,427 (6,901) 2,126,468 Cost of products 401,385 46,036 218,814 (1,646) 664,589 Cost of services and plans 310,643 24,866 812 — 336,321 Total costs applicable to revenue 712,028 70,902 219,626 (1,646) 1,000,910 SG&A 670,337 56,790 264,756 — 991,883 Asset impairment — — 82,413 — 82,413 Other expense (income), net — — (164) — (164) Loss on extinguishment of debt — — 599 — 599 EBITDA $ 347,683 $ 23,202 $ (314,803) $ (5,255) Depreciation and amortization 98,252 Interest expense, net 14,339 Earnings (loss) before income taxes $ (61,764) Fiscal Year 2022 In thousands Owned & Host Legacy Corporate/Other Reconciliations Total Net product sales $ 1,317,673 $ 99,161 $ 242,822 $ (11,341) $ 1,648,315 Net sales of services and plans 299,695 52,716 — 4,678 357,089 Total net revenue 1,617,368 151,877 242,822 (6,663) 2,005,404 Cost of products 380,717 46,375 211,872 (2,640) 636,324 Cost of services and plans 265,598 23,665 — — 289,263 Total costs applicable to revenue 646,315 70,040 211,872 (2,640) 925,587 SG&A 629,421 58,217 227,717 — 915,355 Asset impairment — — 5,783 — 5,783 Other expense (income), net — — (2,552) — (2,552) EBITDA $ 341,632 $ 23,620 $ (199,998) $ (4,023) Depreciation and amortization 99,956 Interest expense, net 462 Earnings before income taxes $ 60,813 Fiscal Year 2021 In thousands Owned & Host Legacy Corporate/Other Reconciliations Total Net product sales $ 1,375,983 $ 103,249 $ 236,299 $ 2,813 $ 1,718,344 Net sales of services and plans 307,732 62,228 — (8,779) 361,181 Total net revenue 1,683,715 165,477 236,299 (5,966) 2,079,525 Cost of products 377,489 49,258 205,670 699 633,116 Cost of services and plans 246,342 25,321 — — 271,663 Total costs applicable to revenue 623,831 74,579 205,670 699 904,779 SG&A 618,413 57,838 224,547 — 900,798 Asset impairment — — 4,427 — 4,427 Other expense (income), net — — (2,505) — (2,505) EBITDA $ 441,471 $ 33,060 $ (195,840) $ (6,665) Depreciation and amortization 97,089 Interest expense, net 25,612 Earnings before income taxes $ 149,325 |
Schedule of Net Product Revenue | The following table presents our consolidated net product revenue information: In thousands Fiscal Year 2023 Fiscal Year 2022 Fiscal Year 2021 Net Product Sales Eyeglasses and sunglasses $ 1,192,525 $ 1,120,731 $ 1,201,386 Contact lenses 543,411 520,709 509,992 Accessories and other 8,200 6,875 6,966 Total net product revenues $ 1,744,136 $ 1,648,315 $ 1,718,344 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Loss | The following table presents the changes in AOCL, net of tax during the fiscal years 2023, 2022 and 2021, respectively: In thousands Fiscal Year 2023 Fiscal Year 2022 Fiscal Year 2021 Cash flow hedging activity Balance at beginning of fiscal year $ (1,179) $ (1,940) $ (4,400) Other comprehensive income (loss) before reclassification — — (10) Tax effect of other comprehensive income (loss) before reclassification — — 3 Amount reclassified from AOCL 1,019 1,020 6,168 Tax effect of amount reclassified from AOCL (259) (259) (1,576) Stranded tax effect of matured interest rate swaps — — (2,125) Net current period other comprehensive income (loss), net of tax 760 761 2,460 Balance at end of fiscal year $ (419) $ (1,179) $ (1,940) |
Business and Significant Acco_4
Business and Significant Accounting Policies - Nature of Operations (Details) | Dec. 30, 2023 storeBrand store | Dec. 31, 2022 store |
Accounting Policies [Abstract] | ||
Number of retail optical locations | store | 1,413 | 1,354 |
Number of store brands | storeBrand | 5 |
Business and Significant Acco_5
Business and Significant Accounting Policies - Basis of Presentation and Principles of Consolidation (Details) $ in Thousands | Dec. 30, 2023 USD ($) corporation | Dec. 31, 2022 USD ($) |
Variable Interest Entity [Line Items] | ||
Assets | $ 2,172,511 | $ 2,291,246 |
Variable Interest Entity, Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Number of corporations | corporation | 32 | |
Assets | $ 8,300 | 7,900 |
Liabilities | $ 9,800 | $ 8,300 |
Business and Significant Acco_6
Business and Significant Accounting Policies - Share Repurchases (Details) - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||||||
Feb. 23, 2022 | Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | Feb. 23, 2024 | Nov. 29, 2021 | Nov. 08, 2021 | |
Equity, Class of Treasury Stock [Line Items] | |||||||
Stock repurchase program authorized amount | $ 200 | $ 100 | $ 50 | ||||
Stock repurchased program additional authorized amount | $ 100 | ||||||
Shares repurchased (in shares) | 1.1 | 2.7 | 1.4 | ||||
Repurchase of common stock, value | $ 25 | $ 80 | $ 69.9 | ||||
Stock repurchase program, remaining authorized repurchase amount | $ 25 | ||||||
Subsequent Event | |||||||
Equity, Class of Treasury Stock [Line Items] | |||||||
Stock repurchase program authorized amount | $ 50 |
Business and Significant Acco_7
Business and Significant Accounting Policies - CARES Act (Details) - USD ($) $ in Millions | Dec. 30, 2023 | Dec. 31, 2022 |
Unusual or Infrequent Item, or Both [Line Items] | ||
Government Assistance, Statement of Financial Position [Extensible Enumeration] | Accounts receivable, net | Accounts receivable, net |
The CARES Act | ||
Unusual or Infrequent Item, or Both [Line Items] | ||
Government assistance receivable | $ 9 | $ 9 |
Business and Significant Acco_8
Business and Significant Accounting Policies - Accounts Receivable and Inventories (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Concentration Risk [Line Items] | |||
Credit loss on receivables | $ 0.6 | $ 0.9 | $ 0.8 |
Supplier concentration risk | Contact Lenses | Three Key Vendors | |||
Concentration Risk [Line Items] | |||
Concentration risk (percent) | 92% | ||
Supplier concentration risk | Lenses | One Key Vendor | |||
Concentration Risk [Line Items] | |||
Concentration risk (percent) | 89% | ||
Supplier concentration risk | Frames | Two Key Vendors | |||
Concentration Risk [Line Items] | |||
Concentration risk (percent) | 60% |
Business and Significant Acco_9
Business and Significant Accounting Policies - Property and Equipment (Details) | Dec. 30, 2023 |
Buildings | |
Property and Equipment | |
Estimated useful life (in years) | 34 years |
Equipment | Minimum | |
Property and Equipment | |
Estimated useful life (in years) | 3 years |
Equipment | Maximum | |
Property and Equipment | |
Estimated useful life (in years) | 10 years |
Information technology hardware and software | Minimum | |
Property and Equipment | |
Estimated useful life (in years) | 2 years |
Information technology hardware and software | Maximum | |
Property and Equipment | |
Estimated useful life (in years) | 5 years |
Furniture and fixtures | |
Property and Equipment | |
Estimated useful life (in years) | 6 years |
Leasehold improvements | Minimum | |
Property and Equipment | |
Estimated useful life (in years) | 5 years |
Leasehold improvements | Maximum | |
Property and Equipment | |
Estimated useful life (in years) | 10 years |
P&E under finance leases | |
Property and Equipment | |
Estimated useful life (in years) | 10 years |
Business and Significant Acc_10
Business and Significant Accounting Policies - Goodwill, Intangible Assets and Investment (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Jul. 01, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | Dec. 30, 2023 | |
Finite-Lived Intangible Assets [Line Items] | ||||
Equity investment | $ 0 | |||
Investments | $ 900,000 | |||
Investments, subsequent, milestone payment | $ 900,000 | |||
Investments, maximum milestone payment amount | $ 1,500,000 | |||
Investee | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Proceeds from sale of equity method investments | $ 2,700,000 | 2,400,000 | ||
Gain on sale of equity method investment | $ 2,700,000 | $ 2,400,000 |
Business and Significant Acc_11
Business and Significant Accounting Policies - Self-Insurance Liabilities (Details) - USD ($) $ in Thousands | Dec. 30, 2023 | Dec. 31, 2022 |
Insurance [Abstract] | ||
Current portion | $ 990 | $ 1,047 |
Noncurrent portion | 1,549 | 2,125 |
Total estimated recoveries from reinsurance | $ 2,539 | $ 3,172 |
Business and Significant Acc_12
Business and Significant Accounting Policies - Revenue Recognition (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Disaggregation of Revenue [Line Items] | |||
Net revenue reduction for variable considerations | $ 17.3 | $ 14.8 | $ 10.2 |
Minimum | |||
Disaggregation of Revenue [Line Items] | |||
Delivery time used in period end unearned revenue calculation | 7 days | ||
Maximum | |||
Disaggregation of Revenue [Line Items] | |||
Delivery time used in period end unearned revenue calculation | 10 days |
Business and Significant Acc_13
Business and Significant Accounting Policies - Advertising Expenses (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Accounting Policies [Abstract] | |||
Advertising expenses | $ 139.9 | $ 141.4 | $ 149.6 |
Business and Significant Acc_14
Business and Significant Accounting Policies - Leases (Details) - Stores, laboratories, distribution centers, offices | 12 Months Ended |
Dec. 30, 2023 | |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Lease terms (in years) | 5 years |
Renewal terms (in years) | 1 year |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Lease terms (in years) | 10 years |
Renewal terms (in years) | 10 years |
Business and Significant Acc_15
Business and Significant Accounting Policies - Long-lived Asset Impairment (Details) - USD ($) | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Long-Lived Asset Impairment [Line Items] | |||
Impairment of non-store capitalized software costs | $ 0 | $ 800,000 | |
Termination of Walmart Partnership | |||
Long-Lived Asset Impairment [Line Items] | |||
Impairment of non-store capitalized software costs | $ 5,600,000 |
Business and Significant Acc_16
Business and Significant Accounting Policies - New Accounting Pronouncements (Details) - USD ($) $ in Thousands | Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Stockholders equity | $ 829,418 | $ 901,113 | $ 925,980 | $ 906,502 |
Retained Earnings | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Stockholders equity | 254,616 | 320,517 | 278,395 | 142,880 |
Additional Paid-In Capital | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Stockholders equity | $ 788,967 | $ 767,112 | $ 750,478 | 795,697 |
Effect of adoption of new accounting standard | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Stockholders equity | (64,114) | |||
Effect of adoption of new accounting standard | Retained Earnings | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Stockholders equity | 7,271 | |||
Effect of adoption of new accounting standard | Additional Paid-In Capital | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Stockholders equity | (71,385) | |||
ASU No. 2020-06 | Effect of adoption of new accounting standard | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Convertible debt discount | (18,800) | |||
ASU No. 2020-06 | Effect of adoption of new accounting standard | 2025 Notes | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Unamortized discount | 82,900 | |||
ASU No. 2020-06 | Effect of adoption of new accounting standard | Retained Earnings | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Stockholders equity | 7,300 | |||
ASU No. 2020-06 | Effect of adoption of new accounting standard | Additional Paid-In Capital | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Stockholders equity | $ (71,400) |
Termination of Walmart Partne_3
Termination of Walmart Partnership - Exit-Related Costs Recognized (Details) - Termination of Walmart Partnership $ in Thousands | 12 Months Ended |
Dec. 30, 2023 USD ($) | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges | $ 86,661 |
Impairment charges | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges | 79,658 |
Employee compensation benefits | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges | 5,666 |
Professional fees and other expenses | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges | 1,179 |
Inventory obsolescence | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges | $ 158 |
Termination of Walmart Partne_4
Termination of Walmart Partnership - Other Payables and Accrued Expenses (Details) - Termination of Walmart Partnership $ in Thousands | 12 Months Ended |
Dec. 30, 2023 USD ($) | |
Restructuring Reserve [Roll Forward] | |
Expenses recognized during the period | $ 86,661 |
Employee compensation benefits | |
Restructuring Reserve [Roll Forward] | |
Beginning balance | 0 |
Expenses recognized during the period | 5,666 |
Expenses paid during the period | (442) |
Ending balance | $ 5,224 |
Termination of Walmart Partne_5
Termination of Walmart Partnership - Narrative (Details) - Termination of Walmart Partnership $ in Thousands | 12 Months Ended |
Dec. 30, 2023 USD ($) | |
Restructuring Cost and Reserve [Line Items] | |
Additional restructuring costs to be incurred | $ 8,000 |
Restructuring charges | 86,661 |
Impaired assets, remaining fair value | $ 1,500 |
Termination benefits expected to occur, period | 12 months |
Minimum | Discounted Cash Flow | Discount Rate | |
Restructuring Cost and Reserve [Line Items] | |
Impaired assets, measurement input (as a percent) | 0.078 |
Maximum | Discounted Cash Flow | Discount Rate | |
Restructuring Cost and Reserve [Line Items] | |
Impaired assets, measurement input (as a percent) | 0.100 |
Goodwill impairment | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges | $ 60,100 |
Finite-lived intangible assets, impairment | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges | 9,100 |
Property and equipment impairment | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges | 10,500 |
Employee compensation benefits | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges | 5,666 |
Employee compensation benefits | Cost of Services and Plans | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges | 600 |
Employee compensation benefits | Selling, general and administrative expenses | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges | 5,100 |
Termination benefits | Selling, general and administrative expenses | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges | 1,500 |
Professional fees and other expenses | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges | 1,179 |
Inventory obsolescence | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges | $ 158 |
Details of Certain Balance Sh_3
Details of Certain Balance Sheet Accounts - Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands | Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 |
Reconciliation of cash, cash equivalents, and restricted cash | ||||
Cash and cash equivalents | $ 149,896 | $ 229,425 | $ 305,800 | |
Restricted cash included in other assets | 1,131 | 1,199 | 1,076 | |
Total cash, cash equivalents and restricted cash | $ 151,027 | $ 230,624 | $ 306,876 | $ 375,159 |
Details of Certain Balance Sh_4
Details of Certain Balance Sheet Accounts - Accounts Receivable, Net (Details) - USD ($) $ in Thousands | Dec. 30, 2023 | Dec. 31, 2022 |
Accounts receivable, net: | ||
Allowance for credit losses | $ (316) | $ (519) |
Accounts receivable, net | 86,854 | 79,892 |
The CARES Act | ||
Accounts receivable, net: | ||
Government assistance receivable | 9,000 | 9,000 |
Trade receivables | ||
Accounts receivable, net: | ||
Accounts receivable, gross | 43,518 | 41,622 |
Credit card receivables | ||
Accounts receivable, net: | ||
Accounts receivable, gross | 27,905 | 23,311 |
Other receivables | ||
Accounts receivable, net: | ||
Accounts receivable, gross | $ 15,747 | $ 15,478 |
Details of Certain Balance Sh_5
Details of Certain Balance Sheet Accounts - Inventories (Details) - USD ($) $ in Thousands | Dec. 30, 2023 | Dec. 31, 2022 |
Inventories: | ||
Raw materials and work in process | $ 57,367 | $ 64,786 |
Finished goods | 62,541 | 58,372 |
Inventories | $ 119,908 | $ 123,158 |
Details of Certain Balance Sh_6
Details of Certain Balance Sheet Accounts - Property and Equipment, Net (Details) - USD ($) $ in Thousands | Dec. 30, 2023 | Dec. 31, 2022 |
Property and equipment, net | ||
Right of use assets under finance leases | $ 36,219 | $ 36,219 |
Property, equipment, and right of use assets under finance leases, gross | 890,949 | 842,748 |
Less: Accumulated depreciation | (528,386) | (482,973) |
Property and equipment, net | 362,563 | 359,775 |
Land and building | ||
Property and equipment, net | ||
Property and equipment, gross | 3,736 | 3,770 |
Equipment | ||
Property and equipment, net | ||
Property and equipment, gross | 287,983 | 257,661 |
Information technology hardware and software | ||
Property and equipment, net | ||
Property and equipment, gross | 131,954 | 151,562 |
Furniture and fixtures | ||
Property and equipment, net | ||
Property and equipment, gross | 77,890 | 71,932 |
Leasehold improvements | ||
Property and equipment, net | ||
Property and equipment, gross | 323,524 | 285,505 |
Construction in progress | ||
Property and equipment, net | ||
Property and equipment, gross | $ 29,643 | $ 36,099 |
Details of Certain Balance Sh_7
Details of Certain Balance Sheet Accounts - Other Payables and Accrued Expenses (Details) - USD ($) $ in Thousands | Dec. 30, 2023 | Dec. 31, 2022 |
Other payables and accrued expenses: | ||
Associate compensation and benefits | $ 62,614 | $ 37,451 |
Self-insurance liabilities | 9,139 | 8,744 |
Capital expenditures | 5,412 | 9,594 |
Advertising | 6,446 | 3,811 |
Reserves for customer returns and remakes | 9,093 | 7,676 |
Legacy management & services agreement | 6,068 | 6,488 |
Income tax payable | 1,863 | 103 |
Supplies and other store support expenses | 5,434 | 4,215 |
Other | 17,219 | 16,143 |
Other payables and accrued expenses | $ 123,288 | $ 94,225 |
Details of Certain Balance Sh_8
Details of Certain Balance Sheet Accounts - Other Non-Current Liabilities (Details) - USD ($) $ in Thousands | Dec. 30, 2023 | Dec. 31, 2022 |
Other noncurrent liabilities: | ||
Self-insurance liabilities | $ 5,657 | $ 6,292 |
Other | 2,808 | 2,608 |
Total other non-current liabilities | $ 8,465 | $ 8,900 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Goodwill Carrying Amount (Details) - USD ($) $ in Thousands | Dec. 30, 2023 | Dec. 31, 2022 |
Goodwill [Line Items] | ||
Gross Carrying Amount | $ 805,077 | $ 805,077 |
Accumulated Impairment | (87,533) | (27,464) |
Owned & Host Segment | ||
Goodwill [Line Items] | ||
Gross Carrying Amount | 736,901 | 736,901 |
Accumulated Impairment | (19,357) | (19,357) |
Legacy Segment | ||
Goodwill [Line Items] | ||
Gross Carrying Amount | 60,069 | 60,069 |
Accumulated Impairment | (60,069) | 0 |
Corporate/Other | ||
Goodwill [Line Items] | ||
Gross Carrying Amount | 8,107 | 8,107 |
Accumulated Impairment | $ (8,107) | $ (8,107) |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Goodwill [Line Items] | |||
Goodwill | $ 805,077 | $ 805,077 | |
Amortization of intangible assets | 5,300 | 7,500 | $ 7,500 |
Owned & Host | |||
Goodwill [Line Items] | |||
Goodwill | 736,901 | $ 736,901 | |
America’s Best | Owned & Host | |||
Goodwill [Line Items] | |||
Goodwill | 606,500 | ||
Eyeglass World | Owned & Host | |||
Goodwill [Line Items] | |||
Goodwill | $ 111,100 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Indefinite-Lived Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 30, 2023 | Dec. 31, 2022 |
Indefinite-lived Intangible Assets [Line Items] | ||
Indefinite-lived trademarks and trade names | $ 240,547 | $ 240,547 |
America’s Best | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Indefinite-lived trademarks and trade names | 200,547 | 200,547 |
Eyeglass World | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Indefinite-lived trademarks and trade names | $ 40,000 | $ 40,000 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Finite-Lived Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 30, 2023 | Dec. 31, 2022 | |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 35,496 | $ 100,897 |
Accumulated Amortization | $ (15,224) | (66,228) |
Impairment, Intangible Asset, Finite-Lived, Statement of Income or Comprehensive Income [Extensible Enumeration] | Asset impairment | |
Legacy | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 345 | 65,000 |
Accumulated Amortization | $ (247) | $ (52,080) |
Remaining Life (Years) | 0 years | 2 years |
Intangible asset impairment charge | $ 9,100 | |
Fred Meyer | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 35,000 | $ 35,000 |
Accumulated Amortization | $ (14,915) | $ (13,389) |
Remaining Life (Years) | 13 years | 14 years |
Other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 151 | $ 897 |
Accumulated Amortization | $ (62) | $ (759) |
Remaining Life (Years) | 2 years | 3 years |
Goodwill and Intangible Asset_6
Goodwill and Intangible Assets - Estimated Future Amortization Expense (Details) - USD ($) $ in Thousands | Dec. 30, 2023 | Dec. 31, 2022 |
Aggregate future estimated amortization expense | ||
2024 | $ 1,675 | |
2025 | 1,563 | |
2026 | 1,525 | |
2027 | 1,525 | |
2028 | 1,525 | |
Thereafter | 12,459 | |
Finite-lived intangible assets | $ 20,272 | $ 34,669 |
Long-term Debt - Summary of Lon
Long-term Debt - Summary of Long-term Debt (Details) - USD ($) $ in Thousands | Dec. 30, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
Long-term debt before unamortized discount and issuance costs | $ 448,747 | $ 552,497 |
Long-term debt less debt discount and issuance costs | 445,184 | 546,231 |
Less current maturities | (7,500) | 0 |
Long-term debt - noncurrent portion | 437,684 | 546,231 |
Finance lease obligations | 16,067 | 21,294 |
Less current maturities | (2,980) | (4,137) |
Long-term debt and finance lease obligations, less current portion and debt discount | 450,771 | 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 | 302,497 | 402,497 |
Unamortized discount and issuance costs | (2,497) | (5,696) |
Term Loan A, due June 13, 2028 | Term loan | ||
Debt Instrument [Line Items] | ||
Long-term debt before unamortized discount and issuance costs | 146,250 | 150,000 |
Unamortized discount and issuance costs | $ (1,066) | $ (570) |
Long-term Debt - 2025 Notes Nar
Long-term Debt - 2025 Notes Narrative (Details) $ / shares in Units, common_share in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||
May 12, 2020 USD ($) | May 31, 2020 USD ($) common_share $ / shares | Jan. 01, 2022 USD ($) | Jul. 03, 2021 USD ($) | Dec. 30, 2023 USD ($) day common_share | Dec. 31, 2022 USD ($) | Jan. 01, 2022 USD ($) | Nov. 14, 2023 USD ($) | Apr. 03, 2021 | Jan. 02, 2021 | |
Debt Instrument [Line Items] | ||||||||||
Loss on extinguishment of debt | $ 599,000 | $ 0 | $ 0 | |||||||
Convertible senior notes | 2025 Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Aggregate principal amount | $ 402,500,000 | $ 402,500,000 | ||||||||
Stated interest rate (percent) | 2.50% | |||||||||
Proceeds from convertible debt | $ 390,900,000 | |||||||||
Debt issuance costs | $ 11,600,000 | |||||||||
Threshold stock price trigger (percent) | 130% | |||||||||
Threshold trading days for conversion price metric | day | 20 | |||||||||
Threshold consecutive trading days for conversion price measurement | day | 30 | |||||||||
Threshold consecutive business days after measurement period | day | 5 | |||||||||
Threshold consecutive trading days for measurement period | day | 10 | |||||||||
Principal amount per note | $ 1,000 | |||||||||
Trading price compared to factor of last reported sale price by conversion rate (percent) | 98% | |||||||||
Conversion ratio | 0.0320783 | |||||||||
Conversion price (in usd per share) | $ / shares | $ 31.17 | |||||||||
Number of shares of common stock reserved for conversion of debt (in shares) | common_share | 12.9 | 9.7 | ||||||||
Effective interest rate (percent) | 3.20% | 9.10% | ||||||||
Repurchased face amount | $ 100,000,000 | |||||||||
Repurchase amount | $ 99,300,000 | |||||||||
Loss on extinguishment of debt | $ 600,000 | |||||||||
Write off of deferred debt issuance costs | 900,000 | |||||||||
Third-party fees | $ 400,000 | |||||||||
Remaining period for the unamortized debt issuance costs (in years) | 1 year | |||||||||
Convertible senior notes | 2025 Notes | Maximum | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Number of shares of common stock reserved for conversion of debt (in shares) | common_share | 16.5 | 12.4 | ||||||||
Credit facility | Revolving Credit Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Repayment of revolving credit facility | $ 294,300,000 | |||||||||
Term loan | Term Loan A, due June 13, 2028 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Repayment of term loan | 75,000,000 | |||||||||
Write off of deferred debt issuance costs | $ 300,000 | $ 700,000 | ||||||||
Term loan | Term loan | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Aggregate principal amount | $ 420,000,000 |
Long-term Debt - Interest Expen
Long-term Debt - Interest Expense (Details) - 2025 Notes - Convertible senior notes - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Debt Instrument [Line Items] | |||
Contractual interest expense | $ 9,747 | $ 10,062 | $ 10,063 |
Amortization of issuance costs | $ 2,293 | $ 2,283 | $ 2,213 |
Long-term Debt - Credit Agreeme
Long-term Debt - Credit Agreement Narrative (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Jun. 13, 2023 USD ($) | Jan. 01, 2022 USD ($) | Jul. 03, 2021 USD ($) | Dec. 30, 2023 USD ($) | Dec. 31, 2022 USD ($) | Jan. 01, 2022 USD ($) | |
Debt Instrument [Line Items] | ||||||
Repayments of long-term debt | $ 103,000 | $ 4 | $ 167,375 | |||
Outstanding letters of credit | 6,400 | |||||
Credit Agreement | Secured Overnight Financing Rate (SOFR) | ||||||
Debt Instrument [Line Items] | ||||||
Applicable margin on rate (percent) | 0.10% | |||||
Credit Agreement | Secured Overnight Financing Rate (SOFR) | Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Applicable margin on rate (percent) | 0% | |||||
Credit facility | Revolving Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Borrowing capacity remaining | 293,600 | |||||
Credit facility | Credit Agreement | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, term | 91 days | |||||
Redemption value | $ 25,000 | |||||
Quarterly installments rate (percent) | 5% | |||||
Aggregate principal amount | $ 114,400 | |||||
Write off of deferred debt issuance costs | 200 | |||||
Debt related commitment fees and debt issuance costs | 200 | |||||
Credit facility | Credit Agreement | Debt Covenant Term One | ||||||
Debt Instrument [Line Items] | ||||||
Debt covenant, minimum EBITDA ratio | 2.50 | |||||
Credit facility | Credit Agreement | Debt Covenant Term Two | ||||||
Debt Instrument [Line Items] | ||||||
Debt covenant, minimum EBITDA ratio | 2.50 | |||||
Debt covenant, maximum EBITDA ratio | 1.75 | |||||
Credit facility | Credit Agreement | Debt Covenant Term Three | ||||||
Debt Instrument [Line Items] | ||||||
Debt covenant, minimum EBITDA ratio | 1.75 | |||||
Debt covenant, maximum EBITDA ratio | 0.75 | |||||
Credit facility | Credit Agreement | Debt Covenant Term Four | ||||||
Debt Instrument [Line Items] | ||||||
Debt covenant, maximum EBITDA ratio | 0.75 | |||||
Credit facility | Credit Agreement | Secured Overnight Financing Rate (SOFR) | ||||||
Debt Instrument [Line Items] | ||||||
Applicable margin on rate (percent) | 1.75% | |||||
Credit facility | Credit Agreement | Secured Overnight Financing Rate (SOFR) | Debt Covenant Term One | ||||||
Debt Instrument [Line Items] | ||||||
Applicable margin on rate (percent) | 2.25% | |||||
Credit facility | Credit Agreement | Secured Overnight Financing Rate (SOFR) | Debt Covenant Term Two | ||||||
Debt Instrument [Line Items] | ||||||
Applicable margin on rate (percent) | 2% | |||||
Credit facility | Credit Agreement | Secured Overnight Financing Rate (SOFR) | Debt Covenant Term Three | ||||||
Debt Instrument [Line Items] | ||||||
Applicable margin on rate (percent) | 1.75% | |||||
Credit facility | Credit Agreement | Secured Overnight Financing Rate (SOFR) | Debt Covenant Term Four | ||||||
Debt Instrument [Line Items] | ||||||
Applicable margin on rate (percent) | 1.50% | |||||
Credit facility | Credit Agreement | ABR | ||||||
Debt Instrument [Line Items] | ||||||
Applicable margin on rate (percent) | 0.75% | |||||
Credit facility | Credit Agreement | ABR | Debt Covenant Term One | ||||||
Debt Instrument [Line Items] | ||||||
Applicable margin on rate (percent) | 1.25% | |||||
Credit facility | Credit Agreement | ABR | Debt Covenant Term Two | ||||||
Debt Instrument [Line Items] | ||||||
Applicable margin on rate (percent) | 1% | |||||
Credit facility | Credit Agreement | ABR | Debt Covenant Term Three | ||||||
Debt Instrument [Line Items] | ||||||
Applicable margin on rate (percent) | 0.75% | |||||
Credit facility | Credit Agreement | ABR | Debt Covenant Term Four | ||||||
Debt Instrument [Line Items] | ||||||
Applicable margin on rate (percent) | 0.50% | |||||
Credit facility | Credit Agreement | Revolving Credit Facility | Other Assets | ||||||
Debt Instrument [Line Items] | ||||||
Debt issuance costs | 2,000 | |||||
Credit facility | Credit Agreement | Term Loan | Other Noncurrent Liabilities | ||||||
Debt Instrument [Line Items] | ||||||
Debt issuance costs | $ 900 | |||||
Term loan | Term Loan A, due June 13, 2028 | ||||||
Debt Instrument [Line Items] | ||||||
Write off of deferred debt issuance costs | $ 300 | $ 700 | ||||
Repayments of long-term debt | $ 50,000 | $ 117,400 |
Long-term Debt - Maturities of
Long-term Debt - Maturities of Debt (Details) - USD ($) $ in Thousands | Dec. 30, 2023 | Dec. 31, 2022 |
Annual Maturities of Debt | ||
2024 | $ 5,625 | |
2025 | 311,872 | |
2026 | 7,500 | |
2027 | 7,500 | |
2028 | 116,250 | |
Thereafter | 0 | |
Total | $ 448,747 | $ 552,497 |
Stock Incentive Plans - Narrati
Stock Incentive Plans - Narrative (Details) $ / shares in Units, $ in Millions | 12 Months Ended | |||
Dec. 30, 2023 USD ($) installment plan $ / shares shares | Dec. 31, 2022 $ / shares shares | Jan. 01, 2022 USD ($) shares | Jan. 02, 2021 USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of award plans | plan | 3 | |||
Common stock, par value (in usd per share) | $ / shares | $ 0.01 | $ 0.01 | ||
Performance-based options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options granted (in shares) | 0 | 0 | 0 | |
Options, vested (in shares) | 0 | 0 | 0 | |
Options exercised (in shares) | 0 | |||
Aggregate intrinsic value of options exercised | $ | $ 0 | $ 37.3 | ||
RSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Intrinsic value | $ | $ 22.2 | |||
RSUs | Vesting in three installments beginning on first anniversary | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of equal vesting installments | installment | 3 | |||
PSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Intrinsic value | $ | $ 14.1 | |||
Remaining requisite service period (in years) | 3 years | |||
2017 Omnibus Incentive Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares authorized for issuance (in shares) | 4,000,000 | |||
2014 Stock Incentive Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares authorized for issuance (in shares) | 10,988,827 | |||
Stock Incentive Plans | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Awards contractual life (in years) | 10 years | |||
Associate stock purchase plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares authorized for issuance (in shares) | 850,000 |
Stock Incentive Plans - Stock C
Stock Incentive Plans - Stock Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Stock compensation expense | |||
Pre-tax stock-based compensation expense | $ 20,174 | $ 13,512 | $ 14,886 |
Income tax benefit | (5,085) | (3,428) | (3,788) |
After-tax stock-based compensation expense | 15,089 | 10,084 | 11,098 |
Stock options | |||
Stock compensation expense | |||
Pre-tax stock-based compensation expense | 763 | 1,579 | 2,632 |
Unrecognized compensation cost | |||
Unrecognized compensation cost | $ 126 | ||
Expected remaining weighted-average period of expense recognition (in years) | 2 months 12 days | ||
RSUs and PSUs | |||
Stock compensation expense | |||
Pre-tax stock-based compensation expense | $ 19,260 | 11,460 | 11,217 |
Unrecognized compensation cost | |||
Unrecognized compensation cost | $ 30,791 | ||
Expected remaining weighted-average period of expense recognition (in years) | 1 year 10 months 28 days | ||
RSAs | |||
Stock compensation expense | |||
Pre-tax stock-based compensation expense | $ 0 | 314 | 852 |
Associate stock purchase plan | |||
Stock compensation expense | |||
Pre-tax stock-based compensation expense | $ 151 | $ 159 | $ 185 |
Stock Incentive Plans - Stock O
Stock Incentive Plans - Stock Option Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | |
Service-based options | ||||
Number of Options Outstanding | ||||
Outstanding, beginning balance (in shares) | 628 | |||
Exercised (in shares) | (16) | |||
Forfeited (in shares) | (13) | |||
Outstanding, ending balance (in shares) | 599 | 628 | ||
Vested and exercisable (in shares) | 569 | |||
Weighted Average Exercise Price | ||||
Outstanding, beginning balance (usd per share) | $ 29.07 | |||
Exercised (usd per share) | 15.59 | |||
Forfeited (usd per share) | 40.91 | |||
Outstanding, ending balance (usd per share) | 29.20 | $ 29.07 | ||
Vested and exercisable (usd per share) | $ 28.35 | |||
Outstanding, weighted average remaining contractual term (years) | 4 years 11 months 4 days | 5 years 11 months 12 days | ||
Vested and exercisable, weighted average remaining contractual term (years) | 4 years 9 months 25 days | |||
Outstanding, aggregate intrinsic value (beginning balance) | $ 6,733 | |||
Outstanding, aggregate intrinsic value (ending Balance) | 981 | $ 6,733 | ||
Vested and exercisable, aggregate intrinsic value | $ 981 | |||
Weighted average grant date fair value per share of options granted (in usd per share) | $ 0 | $ 0 | $ 23.39 | |
Fair value of options vested | $ 1,251 | $ 3,073 | $ 3,138 | |
Aggregate intrinsic value of options exercised | $ 147 | $ 979 | 23,091 | |
Performance-based options | ||||
Number of Options Outstanding | ||||
Outstanding, beginning balance (in shares) | 49 | |||
Exercised (in shares) | 0 | |||
Outstanding, ending balance (in shares) | 49 | 49 | ||
Vested and exercisable (in shares) | 49 | |||
Weighted Average Exercise Price | ||||
Outstanding, beginning balance (usd per share) | $ 15.74 | |||
Exercised (usd per share) | 0 | |||
Outstanding, ending balance (usd per share) | 15.74 | $ 15.74 | ||
Vested and exercisable (usd per share) | $ 15.74 | |||
Outstanding, weighted average remaining contractual term (years) | 3 years 6 months 21 days | 4 years 6 months 21 days | ||
Vested and exercisable, weighted average remaining contractual term (years) | 3 years 6 months 21 days | |||
Outstanding, aggregate intrinsic value (beginning balance) | $ 1,132 | |||
Outstanding, aggregate intrinsic value (ending Balance) | 255 | $ 1,132 | ||
Vested and exercisable, aggregate intrinsic value | $ 255 | |||
Aggregate intrinsic value of options exercised | $ 0 | $ 37,300 |
Stock Incentive Plans - Valuati
Stock Incentive Plans - Valuation Assumptions (Details) - Service-based options | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Assumptions | |
Expected volatility, minimum | 52.49% |
Expected volatility, maximum | 54.03% |
Expected term (in years) | 6 years |
Expected risk-free interest rate, minimum | 0.97% |
Expected risk-free interest rate, maximum | 1.07% |
Stock Incentive Plans - RSU, PS
Stock Incentive Plans - RSU, PSU, and RSA Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
RSUs | |||
Number of Awards Outstanding | |||
Outstanding, beginning balance (in shares) | 786 | ||
Granted (in shares) | 725 | ||
Vested (in shares) | (352) | ||
Forfeited (in shares) | (99) | ||
Outstanding, ending balance (in shares) | 1,060 | 786 | |
Weighted Average Grant Date Fair Value ($) | |||
Outstanding, beginning balance (in dollars per share) | $ 35.36 | ||
Granted (in dollars per share) | 22.65 | $ 34.83 | $ 46.52 |
Vested (in dollars per share) | 34.35 | ||
Forfeited (in dollars per share) | 30.19 | ||
Outstanding, ending balance (in dollars per share) | $ 27.50 | $ 35.36 | |
Vested in period, fair value | $ 12,084 | $ 6,176 | $ 6,154 |
PSUs | |||
Number of Awards Outstanding | |||
Outstanding, beginning balance (in shares) | 361 | ||
Granted (in shares) | 451 | ||
Vested (in shares) | (112) | ||
Forfeited (in shares) | (28) | ||
Outstanding, ending balance (in shares) | 672 | 361 | |
Weighted Average Grant Date Fair Value ($) | |||
Outstanding, beginning balance (in dollars per share) | $ 38.86 | ||
Granted (in dollars per share) | 22.35 | $ 37.96 | $ 46.17 |
Vested (in dollars per share) | 34.28 | ||
Forfeited (in dollars per share) | 35.45 | ||
Outstanding, ending balance (in dollars per share) | $ 28.68 | $ 38.86 | |
Vested in period, fair value | $ 3,852 | $ 3,118 | $ 0 |
RSAs | |||
Weighted Average Grant Date Fair Value ($) | |||
Granted (in dollars per share) | $ 0 | $ 0 | $ 48.39 |
Vested in period, fair value | $ 0 | $ 800 | $ 700 |
Stock Incentive Plans - Associa
Stock Incentive Plans - Associate Stock Purchase Plan (Details) - Associate stock purchase plan | 12 Months Ended |
Dec. 30, 2023 USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Discount from the market trading value of common stock at time of purchase (percent) | 10% |
Maximum annual contribution per participant for stock purchase | $ 25,000 |
Income Taxes - Components of In
Income Taxes - Components of Income Tax Provision (Benefit) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Current income tax: | |||
Federal | $ 6,880 | $ 2,829 | $ 138 |
State | 3,246 | 4,838 | 4,242 |
Deferred income tax: | |||
Federal | (3,878) | 11,079 | 15,015 |
State | (2,111) | (55) | 1,686 |
Income tax provision (benefit) | $ 4,137 | $ 18,691 | $ 21,081 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Effective Tax Rate (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Income Tax Disclosure [Abstract] | |||
Federal income tax provision at statutory rate | $ (12,970) | $ 12,771 | $ 31,358 |
State income tax provision, net of federal income tax | 1,305 | 3,527 | 7,130 |
Increase (decrease) in deferred tax asset valuation allowance | 2,238 | 477 | (441) |
Executive compensation limitation | 354 | 1,218 | 283 |
Goodwill impairment | 12,614 | 0 | 0 |
Stranded tax effect of matured interest rate swaps | 0 | 0 | (2,125) |
Tax provision (benefit) of equity-based compensation deductions | 1,211 | (27) | (14,408) |
Other, net | (615) | 725 | (716) |
Income tax provision (benefit) | $ 4,137 | $ 18,691 | $ 21,081 |
Effective income tax rate (percent) | (6.70%) | 30.70% | 14.10% |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Deferred Tax Liabilities (Details) - USD ($) $ in Thousands | Dec. 30, 2023 | Dec. 31, 2022 |
Deferred tax assets: | ||
NOL carry-forwards | $ 7,399 | $ 5,708 |
Credit carryforwards | 267 | 547 |
Deferred revenue | 5,984 | 6,376 |
Accrued expenses and reserves | 13,344 | 10,233 |
Loss on equity and other investments | 888 | 899 |
Stock-based compensation | 6,050 | 5,214 |
Operating lease liabilities | 119,916 | 115,870 |
Subtotal | 153,848 | 144,847 |
Valuation allowances | (5,760) | (3,522) |
Total net deferred tax assets | 148,088 | 141,325 |
Deferred tax liabilities: | ||
Depreciation of property and equipment | (61,118) | (59,446) |
Amortization of intangible assets | (68,729) | (70,946) |
Unrealized gains on hedging instruments | (1,407) | (3,568) |
Right of use asset | (101,780) | (97,954) |
Other | (2,938) | (3,281) |
Total deferred tax liabilities | (235,972) | (235,195) |
Net deferred tax liabilities | $ (87,884) | $ (93,870) |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | Dec. 30, 2023 | Dec. 31, 2022 |
Operating Loss Carryforwards [Line Items] | ||
Valuation allowance for NOL carry-forwards not likely to be realized | $ 18,100 | |
Valuation allowances | 5,760 | $ 3,522 |
Deferred tax asset associated with equity method non-consolidated investee | 900 | |
Professional Corprations | ||
Operating Loss Carryforwards [Line Items] | ||
Valuation allowances | 3,800 | |
U.S. federal | ||
Operating Loss Carryforwards [Line Items] | ||
NOL carryforwards | 21,700 | |
NOL carryforwards not subject to expiration | 21,600 | |
NOL carryforwards expiring at end of fiscal year 2037 | 100 | |
State and Local Jurisdiction | ||
Operating Loss Carryforwards [Line Items] | ||
Valuation allowances | 200 | |
Tax credit carryforward | $ 300 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Narrative (Details) | 12 Months Ended |
Dec. 30, 2023 | |
Disaggregation of Revenue [Line Items] | |
Time frame for majority of payments on health care plans and programs accounts (in days) | 90 days |
Owned & Host | |
Disaggregation of Revenue [Line Items] | |
Extended warranty plan, term (in years) | 1 year |
Eye care club membership, term one (in years) | 3 years |
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 | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Disaggregation of Revenue [Line Items] | |||
Total net revenue | $ 2,126,468 | $ 2,005,404 | $ 2,079,525 |
Revenues recognized at a point in time | |||
Disaggregation of Revenue [Line Items] | |||
Total net revenue | 1,970,509 | 1,843,796 | 1,908,221 |
Revenues recognized over time | |||
Disaggregation of Revenue [Line Items] | |||
Total net revenue | $ 155,959 | $ 161,608 | $ 171,304 |
Leases - Lease Type and Classif
Leases - Lease Type and Classification (Details) - USD ($) $ in Thousands | Dec. 30, 2023 | Dec. 31, 2022 |
ASSETS | ||
Property and equipment, net | $ 10,774 | $ 14,962 |
Right of use assets | 406,579 | 382,825 |
Total leased assets | 417,353 | 397,787 |
LIABILITIES | ||
Current maturities of long-term debt and finance lease obligations | 2,980 | 4,137 |
Current operating lease obligations | 85,392 | 77,186 |
Long-term debt and finance lease obligations, less current portion and debt discount | 13,087 | 17,157 |
Noncurrent operating lease obligations | 376,814 | 358,110 |
Total lease liabilities | 478,273 | 456,590 |
Finance lease assets accumulated amortization | 25,400 | 21,300 |
TIA receivable netted to operating lease liabilities | $ 4,600 | $ 6,700 |
Finance lease, right of use assets, balance sheet | Property and equipment, net | Property and equipment, net |
Finance lease liabilities, current, balance sheet | Current maturities of long-term debt and finance lease obligations | Current maturities of long-term debt and finance lease obligations |
Finance lease liabilities, non-current, balance sheet | Long-term debt and finance lease obligations, less current portion and debt discount | Long-term debt and finance lease obligations, less current portion and debt discount |
Leases - Lease Costs (Details)
Leases - Lease Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Lease Cost | |||
Fixed lease cost | $ 99,334 | $ 90,801 | $ 84,019 |
Variable lease cost | 36,388 | 33,143 | 30,643 |
Sublease income | (3,684) | (3,629) | (3,557) |
Amortization of finance lease assets | 3,061 | 4,145 | 4,461 |
Interest on finance lease liabilities | 1,675 | 2,342 | 2,923 |
Net lease cost | $ 136,774 | $ 126,802 | $ 118,489 |
Leases - Lease Term and Discoun
Leases - Lease Term and Discount Rate (Details) | 12 Months Ended | |
Dec. 30, 2023 | Dec. 31, 2022 | |
Weighted average remaining lease term (months) | ||
Operating leases, weighted average remaining lease term (months) | 73 months | 74 months |
Finance leases, weighted average remaining lease term (months) | 58 months | 65 months |
Weighted average discount rate | ||
Operating leases, weighted average discount rate (percent) | 4.70% | 4.40% |
Finance leases, weighted average discount rate (percent) | 10.40% | 10.80% |
Stores, laboratories, distribution centers, offices | Minimum | ||
Weighted average discount rate | ||
Lease terms (in years) | 5 years | |
Stores, laboratories, distribution centers, offices | Maximum | ||
Weighted average discount rate | ||
Lease terms (in years) | 10 years |
Leases - Other Information (Det
Leases - Other Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Cash paid for amounts included in the measurement of lease liabilities | |||
Operating cash outflows - operating leases | $ 106,168 | $ 88,867 | $ 89,324 |
Right of use assets acquired under operating leases | $ 111,792 | $ 110,387 | $ 91,451 |
Leases - Maturity of Lease Liab
Leases - Maturity of Lease Liabilities (Details) - USD ($) $ in Thousands | Dec. 30, 2023 | Dec. 31, 2022 |
Operating Leases | ||
2024 | $ 96,270 | |
2025 | 108,628 | |
2026 | 87,129 | |
2027 | 72,277 | |
2028 | 52,762 | |
Thereafter | 118,181 | |
Total lease liabilities | 535,247 | |
Less: Interest | 73,041 | |
Present value of lease liabilities | 462,206 | |
Finance Leases | ||
2024 | 4,129 | |
2025 | 4,625 | |
2026 | 4,252 | |
2027 | 3,379 | |
2028 | 1,973 | |
Thereafter | 1,091 | |
Total lease liabilities | 19,449 | |
Less: Interest | 3,382 | |
Finance lease obligations | 16,067 | $ 21,294 |
Operating lease payments related to reasonably certain option extensions included in total lease payments | 33,300 | |
Finance lease payments related to reasonably certain option extensions included in total lease payments | 1,100 | |
Minimum lease payments for leases signed but not yet commenced excluded from lease liability | $ 35,300 |
Fair Value Measurement (Details
Fair Value Measurement (Details) - USD ($) | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Asset impairment charges, unrelated to restructuring transaction | $ 2,800,000 | $ 5,800,000 | $ 4,400,000 |
Estimated fair value of impaired assets | 2,800,000 | 7,000,000 | |
Long-term debt before unamortized discount and issuance costs | 448,747,000 | 552,497,000 | |
Term loan | Term A Loans | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Long-term debt before unamortized discount and issuance costs | 146,250,000 | 150,000,000 | |
Credit facility | Revolving Credit Facility | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Long-term debt before unamortized discount and issuance costs | 0 | 0 | |
Credit facility borrowing capacity | 300,000,000 | ||
Convertible senior notes | 2025 Notes | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Long-term debt before unamortized discount and issuance costs | 302,497,000 | 402,497,000 | |
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 | $ 303,300,000 | $ 553,900,000 | |
Minimum | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Discount rate used in impairment analysis (in percent) | 10.80% | ||
Maximum | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Discount rate used in impairment analysis (in percent) | 11.50% |
Deferred Revenue - Roll-Forward
Deferred Revenue - Roll-Forward of Deferred Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 30, 2023 | Dec. 31, 2022 | |
Contract Liability | ||
Deferred revenue, beginning balance | $ 83,802 | $ 88,491 |
Sold | 125,865 | 122,247 |
Revenue recognized | (125,341) | (126,936) |
Deferred revenue, ending balance | 84,326 | 83,802 |
Product Protection Plans | ||
Contract Liability | ||
Deferred revenue, beginning balance | 35,119 | 38,639 |
Sold | 73,369 | 71,599 |
Revenue recognized | (72,069) | (75,119) |
Deferred revenue, ending balance | 36,419 | 35,119 |
Eye Care Clubs | ||
Contract Liability | ||
Deferred revenue, beginning balance | 48,683 | 49,852 |
Sold | 52,496 | 50,648 |
Revenue recognized | (53,272) | (51,817) |
Deferred revenue, ending balance | $ 47,907 | $ 48,683 |
Deferred Revenue - Current and
Deferred Revenue - Current and Non-current Balances (Details) - USD ($) $ in Thousands | Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 |
Disaggregation of Revenue [Line Items] | |||
Deferred revenue, current | $ 62,867 | $ 62,201 | |
Deferred revenue, noncurrent | 21,459 | 21,601 | |
Deferred revenue | 84,326 | 83,802 | $ 88,491 |
Product Protection Plans | |||
Disaggregation of Revenue [Line Items] | |||
Deferred revenue, current | 36,113 | 34,808 | |
Deferred revenue, noncurrent | 306 | 311 | |
Deferred revenue | 36,419 | 35,119 | 38,639 |
Eye Care Clubs | |||
Disaggregation of Revenue [Line Items] | |||
Deferred revenue, current | 26,754 | 27,393 | |
Deferred revenue, noncurrent | 21,153 | 21,290 | |
Deferred revenue | $ 47,907 | $ 48,683 | $ 49,852 |
Deferred Revenue - Narrative (D
Deferred Revenue - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 30, 2023 | Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | ||
Revenue recognized | $ 62.1 | $ 65.2 |
Deferred Revenue - Deferred Rev
Deferred Revenue - Deferred Revenue Remaining Performance Obligation (Details) $ in Thousands | Dec. 30, 2023 USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation remaining | $ 84,326 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation remaining | $ 62,867 |
Estimated timing of recognition of performance obligation | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation remaining | $ 16,321 |
Estimated timing of recognition of performance obligation | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation remaining | $ 5,111 |
Estimated timing of recognition of performance obligation | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation remaining | $ 27 |
Estimated timing of recognition of performance obligation |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) $ in Millions | 12 Months Ended | |||
Dec. 30, 2023 USD ($) | Dec. 31, 2022 USD ($) | Jan. 01, 2022 USD ($) | Jan. 27, 2023 officer | |
Loss Contingencies [Line Items] | ||||
Contractual commitments | $ 243.6 | |||
401(k) plan expense | $ 7.8 | $ 6.4 | $ 8.7 | |
Northern District of Georgia - Federal Court | ||||
Loss Contingencies [Line Items] | ||||
Number of company officers filed a complaint | officer | 2 |
Commitments and Contingencies_2
Commitments and Contingencies - Warranty Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 30, 2023 | Dec. 31, 2022 | |
Movement in Product Warrant Liability Accounts | ||
Beginning balance | $ 2,183 | $ 2,063 |
Accrued obligation | 37,135 | 36,100 |
Claims paid | (36,855) | (35,980) |
Ending balance | $ 2,463 | $ 2,183 |
Interest Rate Derivatives (Deta
Interest Rate Derivatives (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | |
Derivative [Line Items] | ||||
(Gains) losses on change in fair value of derivative | $ (2.3) | $ (18) | $ (4.2) | |
Estimated loss reclassification to earnings in next 12 months | $ 0.4 | |||
Derivative, Gain, Statement of Income or Comprehensive Income [Extensible Enumeration] | Nonoperating Income (Expense) | Nonoperating Income (Expense) | Nonoperating Income (Expense) | |
Interest rate collar | ||||
Derivative [Line Items] | ||||
Notional amount | $ 325 | |||
Interest rate collar | Not Designated as Hedging Instrument | ||||
Derivative [Line Items] | ||||
Fair value of derivative assets | $ 5.6 | |||
Fair value of derivative liabilities | $ 14.1 | |||
Interest rate collar | Not Designated as Hedging Instrument | Prepaid Expenses and Other Current Assets | ||||
Derivative [Line Items] | ||||
Fair value of derivative liabilities | 10 | |||
Interest rate collar | Not Designated as Hedging Instrument | Other assets | ||||
Derivative [Line Items] | ||||
Fair value of derivative liabilities | $ 4.1 |
Earnings Per Share - Reconcilia
Earnings Per Share - Reconciliation of Basic and Diluted EPS Calculations (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Net income (loss) | $ (65,901) | $ 42,122 | $ 128,244 |
After-tax interest expense for 2025 Notes | 0 | 0 | 9,483 |
Numerator for diluted EPS | $ (65,901) | $ 42,122 | $ 137,727 |
Weighted average shares outstanding for basic EPS (in shares) | 78,313 | 79,831 | 81,820 |
Effect of dilutive securities: | |||
Stock options (in shares) | 0 | 190 | 919 |
Restricted Stock (in shares) | 0 | 277 | 483 |
2025 Notes (in shares) | 0 | 0 | 12,912 |
Weighted average shares outstanding for diluted EPS (in shares) | 78,313 | 80,298 | 96,134 |
Basic EPS (in usd per share) | $ (0.84) | $ 0.53 | $ 1.57 |
Diluted EPS (in usd per share) | $ (0.84) | $ 0.52 | $ 1.43 |
Options, RSUs, and 2025 Notes | |||
Effect of dilutive securities: | |||
Anti-dilutive securities excluded from diluted weighted average common shares (in shares) | 12,796 | 13,282 | 94 |
Segment Reporting - Narrative (
Segment Reporting - Narrative (Details) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 USD ($) segment visionCenter store | Dec. 31, 2022 USD ($) store | Jan. 01, 2022 USD ($) | |
Segment Reporting Information [Line Items] | |||
Number of reportable segments | segment | 2 | ||
Number of host operating segments | segment | 2 | ||
Number of retail vision centers | store | 1,413 | 1,354 | |
Net revenue | $ 2,126,468 | $ 2,005,404 | $ 2,079,525 |
Corporate level COVID-19 related supplies expense and professional fees | 600 | 1,500 | |
Legacy | |||
Segment Reporting Information [Line Items] | |||
Number of retail vision centers | visionCenter | 225 | ||
Legacy | Management of operations | |||
Segment Reporting Information [Line Items] | |||
Net revenue | $ 30,600 | $ 34,700 | $ 41,700 |
Segment Reporting - Financial D
Segment Reporting - Financial Data by Segment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Segment Reporting Information [Line Items] | |||
Total net revenue | $ 2,126,468 | $ 2,005,404 | $ 2,079,525 |
Total costs applicable to revenue | 1,000,910 | 925,587 | 904,779 |
SG&A | 991,883 | 915,355 | 900,798 |
Asset impairment | 82,413 | 5,783 | 4,427 |
Other expense (income), net | (164) | (2,552) | (2,505) |
Loss on extinguishment of debt | 599 | 0 | 0 |
Depreciation and amortization | 98,252 | 99,956 | 97,089 |
Interest expense, net | 14,339 | 462 | 25,612 |
Earnings (loss) before income taxes | (61,764) | 60,813 | 149,325 |
Products | |||
Segment Reporting Information [Line Items] | |||
Total net revenue | 1,744,136 | 1,648,315 | 1,718,344 |
Total costs applicable to revenue | 664,589 | 636,324 | 633,116 |
Services and plans | |||
Segment Reporting Information [Line Items] | |||
Total net revenue | 382,332 | 357,089 | 361,181 |
Total costs applicable to revenue | 336,321 | 289,263 | 271,663 |
Operating Segments | Owned & Host | |||
Segment Reporting Information [Line Items] | |||
Total net revenue | 1,730,048 | 1,617,368 | 1,683,715 |
Total costs applicable to revenue | 712,028 | 646,315 | 623,831 |
SG&A | 670,337 | 629,421 | 618,413 |
Asset impairment | 0 | 0 | 0 |
Other expense (income), net | 0 | 0 | 0 |
Loss on extinguishment of debt | 0 | ||
EBITDA | 347,683 | 341,632 | 441,471 |
Operating Segments | Owned & Host | Products | |||
Segment Reporting Information [Line Items] | |||
Total net revenue | 1,396,355 | 1,317,673 | 1,375,983 |
Total costs applicable to revenue | 401,385 | 380,717 | 377,489 |
Operating Segments | Owned & Host | Services and plans | |||
Segment Reporting Information [Line Items] | |||
Total net revenue | 333,693 | 299,695 | 307,732 |
Total costs applicable to revenue | 310,643 | 265,598 | 246,342 |
Operating Segments | Legacy | |||
Segment Reporting Information [Line Items] | |||
Total net revenue | 150,894 | 151,877 | 165,477 |
Total costs applicable to revenue | 70,902 | 70,040 | 74,579 |
SG&A | 56,790 | 58,217 | 57,838 |
Asset impairment | 0 | 0 | 0 |
Other expense (income), net | 0 | 0 | 0 |
Loss on extinguishment of debt | 0 | ||
EBITDA | 23,202 | 23,620 | 33,060 |
Operating Segments | Legacy | Products | |||
Segment Reporting Information [Line Items] | |||
Total net revenue | 101,776 | 99,161 | 103,249 |
Total costs applicable to revenue | 46,036 | 46,375 | 49,258 |
Operating Segments | Legacy | Services and plans | |||
Segment Reporting Information [Line Items] | |||
Total net revenue | 49,118 | 52,716 | 62,228 |
Total costs applicable to revenue | 24,866 | 23,665 | 25,321 |
Operating Segments | Corporate/Other | |||
Segment Reporting Information [Line Items] | |||
Total net revenue | 252,427 | 242,822 | 236,299 |
Total costs applicable to revenue | 219,626 | 211,872 | 205,670 |
SG&A | 264,756 | 227,717 | 224,547 |
Asset impairment | 82,413 | 5,783 | 4,427 |
Other expense (income), net | (164) | (2,552) | (2,505) |
Loss on extinguishment of debt | 599 | ||
EBITDA | (314,803) | (199,998) | (195,840) |
Operating Segments | Corporate/Other | Products | |||
Segment Reporting Information [Line Items] | |||
Total net revenue | 252,355 | 242,822 | 236,299 |
Total costs applicable to revenue | 218,814 | 211,872 | 205,670 |
Operating Segments | Corporate/Other | Services and plans | |||
Segment Reporting Information [Line Items] | |||
Total net revenue | 72 | 0 | 0 |
Total costs applicable to revenue | 812 | 0 | 0 |
Reconciliations | |||
Segment Reporting Information [Line Items] | |||
Total net revenue | (6,901) | (6,663) | (5,966) |
Total costs applicable to revenue | (1,646) | (2,640) | 699 |
SG&A | 0 | 0 | 0 |
Asset impairment | 0 | 0 | 0 |
Other expense (income), net | 0 | 0 | 0 |
Loss on extinguishment of debt | 0 | ||
EBITDA | (5,255) | (4,023) | (6,665) |
Reconciliations | Products | |||
Segment Reporting Information [Line Items] | |||
Total net revenue | (6,350) | (11,341) | 2,813 |
Total costs applicable to revenue | (1,646) | (2,640) | 699 |
Reconciliations | Services and plans | |||
Segment Reporting Information [Line Items] | |||
Total net revenue | (551) | 4,678 | (8,779) |
Total costs applicable to revenue | $ 0 | $ 0 | $ 0 |
Segment Reporting - Consolidate
Segment Reporting - Consolidated Net Product Revenue Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Revenue from External Customer [Line Items] | |||
Total net revenue | $ 2,126,468 | $ 2,005,404 | $ 2,079,525 |
Walmart | |||
Revenue from External Customer [Line Items] | |||
Total net revenue | 297,100 | 291,500 | 300,800 |
Products | |||
Revenue from External Customer [Line Items] | |||
Total net revenue | 1,744,136 | 1,648,315 | 1,718,344 |
Eyeglasses and sunglasses | |||
Revenue from External Customer [Line Items] | |||
Total net revenue | 1,192,525 | 1,120,731 | 1,201,386 |
Contact lenses | |||
Revenue from External Customer [Line Items] | |||
Total net revenue | 543,411 | 520,709 | 509,992 |
Accessories and other | |||
Revenue from External Customer [Line Items] | |||
Total net revenue | $ 8,200 | $ 6,875 | $ 6,966 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Accumulated Other Comprehensive Loss | |||
Beginning balance | $ 901,113 | $ 925,980 | $ 906,502 |
Ending balance | 829,418 | 901,113 | 925,980 |
Cash Flow Hedges | |||
Accumulated Other Comprehensive Loss | |||
Beginning balance | (1,179) | (1,940) | (4,400) |
Other comprehensive income (loss) before reclassification | 0 | 0 | (10) |
Tax effect of other comprehensive income (loss) before reclassification | 0 | 0 | 3 |
Amount reclassified from AOCL | 1,019 | 1,020 | 6,168 |
Tax effect of amount reclassified from AOCL | (259) | (259) | (1,576) |
Stranded tax effect of matured interest rate swaps | 0 | 0 | (2,125) |
Net current period other comprehensive income (loss), net of tax | 760 | 761 | 2,460 |
Ending balance | $ (419) | $ (1,179) | $ (1,940) |
Schedule I - Condensed Financ_2
Schedule I - Condensed Financial Information of Registrant - Condensed Balance Sheets (Details) - USD ($) $ in Thousands | Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | Jan. 02, 2021 |
Current assets: | ||||
Cash and cash equivalents | $ 149,896 | $ 229,425 | $ 305,800 | |
Prepaid expenses and other current assets | 40,012 | 41,361 | ||
Total current assets | 396,670 | 473,836 | ||
Total noncurrent assets | 1,775,841 | 1,817,410 | ||
Total assets | 2,172,511 | 2,291,246 | ||
Current liabilities: | ||||
Other payables and accrued expenses | 123,288 | 94,225 | ||
Long-term debt, less current portion and debt discount | 437,684 | 546,231 | ||
Noncurrent liabilities: | ||||
Other liabilities | 8,465 | 8,900 | ||
Total noncurrent liabilities | 945,393 | 1,045,869 | ||
Stockholders’ equity: | ||||
Common stock, $0.01 par value; 200,000 shares authorized; 84,831 and 84,273 shares issued as of December 30, 2023 and December 31, 2022, respectively; 78,311 and 78,992 shares outstanding as of December 30, 2023 and December 31, 2022, respectively | 848 | 842 | ||
Additional paid-in capital | 788,967 | 767,112 | ||
Accumulated other comprehensive loss | (419) | (1,179) | ||
Retained earnings | 254,616 | 320,517 | ||
Treasury stock, at cost; 6,520 and 5,281 shares as of December 30, 2023 and December 31, 2022, respectively | (214,594) | (186,179) | ||
Total stockholders’ equity | 829,418 | 901,113 | $ 925,980 | $ 906,502 |
Total liabilities and stockholders’ equity | 2,172,511 | 2,291,246 | ||
Parent Company | ||||
Current assets: | ||||
Cash and cash equivalents | 233 | 841 | ||
Prepaid expenses and other current assets | 0 | 0 | ||
Total current assets | 233 | 841 | ||
Deferred income taxes | 10,245 | 7,844 | ||
Investment in subsidiary | 1,201,291 | 1,368,303 | ||
Total noncurrent assets | 1,211,536 | 1,376,147 | ||
Total assets | 1,211,769 | 1,376,988 | ||
Current liabilities: | ||||
Other payables and accrued expenses | 1,130 | 1,336 | ||
Long-term debt, less current portion and debt discount | 300,000 | 396,801 | ||
Noncurrent liabilities: | ||||
Other liabilities | 81,221 | 77,738 | ||
Total noncurrent liabilities | 81,221 | 77,738 | ||
Stockholders’ equity: | ||||
Common stock, $0.01 par value; 200,000 shares authorized; 84,831 and 84,273 shares issued as of December 30, 2023 and December 31, 2022, respectively; 78,311 and 78,992 shares outstanding as of December 30, 2023 and December 31, 2022, respectively | 848 | 842 | ||
Additional paid-in capital | 788,967 | 767,112 | ||
Accumulated other comprehensive loss | (419) | (1,179) | ||
Retained earnings | 254,616 | 320,517 | ||
Treasury stock, at cost; 6,520 and 5,281 shares as of December 30, 2023 and December 31, 2022, respectively | (214,594) | (186,179) | ||
Total stockholders’ equity | 829,418 | 901,113 | ||
Total liabilities and stockholders’ equity | $ 1,211,769 | $ 1,376,988 |
Schedule I - Condensed Financ_3
Schedule I - Condensed Financial Information of Registrant - Condensed Balance Sheets Additional Information (Details) - $ / shares | Dec. 30, 2023 | Dec. 31, 2022 |
Condensed Financial Statements, Captions [Line Items] | ||
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) | 84,831,000 | 84,273,000 |
Common stock, outstanding (in shares) | 78,311,000 | 78,992,000 |
Treasury stock, at cost (in shares) | 6,520,000 | 5,281,000 |
Parent Company | ||
Condensed Financial Statements, Captions [Line Items] | ||
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) | 84,831,000 | 84,273,000 |
Common stock, outstanding (in shares) | 78,311,000 | 78,992,000 |
Treasury stock, at cost (in shares) | 6,520,000 | 5,281,000 |
Schedule I - Condensed Financ_4
Schedule I - Condensed Financial Information of Registrant - Condensed Statements of Operations and Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Condensed Financial Statements, Captions [Line Items] | |||
Total net revenue | $ 2,126,468 | $ 2,005,404 | $ 2,079,525 |
Total costs applicable to revenue | 1,000,910 | 925,587 | 904,779 |
Total operating expenses | 1,172,384 | 1,018,542 | 999,809 |
Interest expense, net | 14,339 | 462 | 25,612 |
Loss on extinguishment of debt | 599 | 0 | 0 |
Earnings (loss) before income taxes | (61,764) | 60,813 | 149,325 |
Income tax provision (benefit) | 4,137 | 18,691 | 21,081 |
Net income (loss) | (65,901) | 42,122 | 128,244 |
Comprehensive income (loss): | |||
Net income (loss) | (65,901) | 42,122 | 128,244 |
Unrealized gain on hedge instruments | 1,019 | 1,020 | 6,158 |
Tax provision of unrealized gain on hedge instruments | 259 | 259 | 3,698 |
Comprehensive income (loss) | (65,141) | 42,883 | 130,704 |
Parent Company | |||
Condensed Financial Statements, Captions [Line Items] | |||
Total net revenue | 0 | 0 | 0 |
Total costs applicable to revenue | 0 | 0 | 0 |
Total operating expenses | 214 | 266 | 256 |
Interest expense, net | 12,040 | 12,345 | 12,275 |
Loss on extinguishment of debt | 599 | 0 | 0 |
Earnings (loss) before income taxes | (12,853) | (12,611) | (12,531) |
Income tax provision (benefit) | (2,401) | (2,869) | (2,898) |
Earnings (loss) before equity in net income of subsidiaries | (10,452) | (9,742) | (9,633) |
Net income (loss) of subsidiaries | (55,449) | 51,864 | 137,877 |
Net income (loss) | (65,901) | 42,122 | 128,244 |
Comprehensive income (loss): | |||
Net income (loss) | (65,901) | 42,122 | 128,244 |
Unrealized gain on hedge instruments | 1,019 | 1,020 | 6,158 |
Tax provision of unrealized gain on hedge instruments | 259 | 259 | 3,698 |
Comprehensive income (loss) | $ (65,141) | $ 42,883 | $ 130,704 |
Schedule I - Condensed Financ_5
Schedule I - Condensed Financial Information of Registrant - Condensed Statements of Cash Flows (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | |
Cash flows from operating activities | |||
Net cash provided by operating activities | $ 173,033 | $ 119,198 | $ 258,938 |
Cash flows from investing activities | |||
Net cash provided by (used for) investing activities | (115,822) | (110,894) | (92,897) |
Cash flows from financing activities | |||
Repayments on long-term debt | (103,000) | (4) | (167,375) |
Borrowings on long-term debt, net of discounts | 0 | 0 | 0 |
Purchase of treasury stock | (28,415) | (84,388) | (73,295) |
Payments of debt issuance costs | (3,312) | 0 | (900) |
Net cash used for financing activities | (136,808) | (84,556) | (234,324) |
Net change in cash, cash equivalents and restricted cash | (79,597) | (76,252) | (68,283) |
Cash, cash equivalents and restricted cash, beginning of year | 230,624 | 306,876 | 375,159 |
Cash, cash equivalents and restricted cash, end of year | 151,027 | 230,624 | 306,876 |
Parent Company | |||
Cash flows from operating activities | |||
Net cash provided by operating activities | (6,780) | (9,744) | 16,530 |
Cash flows from investing activities | |||
Dividend from (investment in) subsidiary | 132,443 | 89,550 | 46,600 |
Net cash provided by (used for) investing activities | 132,443 | 89,550 | 46,600 |
Cash flows from financing activities | |||
Repayments on long-term debt | (99,250) | (4) | 0 |
Borrowings on long-term debt, net of discounts | 0 | 0 | 0 |
Proceeds from issuance of common stock | 1,837 | 3,744 | 11,838 |
Purchase of treasury stock | (28,415) | (84,388) | (73,295) |
Payments of debt issuance costs | (443) | 0 | 0 |
Net cash used for financing activities | (126,271) | (80,648) | (61,457) |
Net change in cash, cash equivalents and restricted cash | (608) | (842) | 1,673 |
Cash, cash equivalents and restricted cash, beginning of year | 841 | 1,683 | 10 |
Cash, cash equivalents and restricted cash, end of year | $ 233 | $ 841 | $ 1,683 |
Schedule I - Condensed Financ_6
Schedule I - Condensed Financial Information of Registrant - Notes to Condensed Financial Statements (Details) - USD ($) | Dec. 30, 2023 | Nov. 14, 2023 | Dec. 31, 2022 | May 31, 2020 |
Condensed Financial Statements, Captions [Line Items] | ||||
Aggregate principal amount | $ 448,747,000 | $ 552,497,000 | ||
Outstanding letters of credit | 6,400,000 | |||
Convertible senior notes | 2025 Notes | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Aggregate principal amount | 402,500,000 | $ 402,500,000 | ||
Stated interest rate (percent) | 2.50% | |||
Repurchased face amount | $ 100,000,000 | |||
Aggregate principal amount | 302,497,000 | 402,497,000 | ||
Term loan | Term Loan A, due June 13, 2028 | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Aggregate principal amount | 146,250,000 | 150,000,000 | ||
Credit facility | Revolving Credit Facility | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Aggregate principal amount | 0 | $ 0 | ||
Amount outstanding on line of credit | 0 | |||
Credit facility borrowing capacity | $ 300,000,000 |
Uncategorized Items - eye-20231
Label | Element | Value |
Accounting Standards Update [Extensible Enumeration] | us-gaap_AccountingStandardsUpdateExtensibleList | Accounting Standards Update 2020-06 [Member] |