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Cover Page - shares	3 Months Ended
Cover Page - shares	Mar. 28, 2020	Apr. 30, 2020
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 28, 2020
Document Transition Report	false
Entity File Number	001-38257
Entity Registrant Name	National Vision Holdings, Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	46-4841717
Entity Address, Address Line One	2435 Commerce Ave
Entity Address, Address Line Two	Building 2200
Entity Address, City or Town	Duluth
Entity Address, State or Province	GA
Entity Address, Postal Zip Code	30096
City Area Code	770
Local Phone Number	822‑3600
Title of 12(b) Security	Common stock, par value $0.01 per share
Trading Symbol	EYE
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		80,278,228
Entity Central Index Key	0001710155
Current Fiscal Year End Date	--01-02
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q1
Amendment Flag	false

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 28, 2020	Dec. 28, 2019
Current assets:
Cash and cash equivalents	$ 263,154	$ 39,342
Accounts receivable, net	27,596	44,475
Inventories	130,372	127,556
Prepaid expenses and other current assets	20,095	23,266
Total current assets	441,217	234,639
Property and equipment, net	349,767	366,767
Other assets:
Goodwill	777,613	777,613
Trademarks and trade names	240,547	240,547
Other intangible assets, net	55,088	56,940
Right of use assets	343,731	348,090
Other assets	10,783	8,129
Total non-current assets	1,777,529	1,798,086
Total assets	2,218,746	2,032,725
Current liabilities:
Accounts payable	59,953	40,782
Other payables and accrued expenses	98,972	82,829
Unearned revenue	8,487	28,002
Deferred revenue	56,508	55,870
Current maturities of long-term debt and finance lease obligations	3,531	13,759
Current operating lease obligations	60,014	51,937
Total current liabilities	287,465	273,179
Long-term debt and finance lease obligations, less current portion and debt discount	713,246	555,933
Non-current operating lease obligations	331,234	331,769
Other non-current liabilities:
Deferred revenue	21,401	21,530
Other liabilities	20,526	13,731
Deferred income taxes, net	58,714	60,146
Total other non-current liabilities	100,641	95,407
Commitments and contingencies
Stockholders’ equity:
Common stock, $0.01 par value; 200,000 shares authorized; 81,205 and 80,603 shares issued as of March 28, 2020 and December 28, 2019, respectively; 80,278 and 79,678 shares outstanding as of March 28, 2020 and December 28, 2019, respectively	811	805
Additional paid-in capital	707,301	700,121
Accumulated other comprehensive loss	(10,416)	(3,814)
Retained earnings	116,345	107,132
Treasury stock, at cost; 927 and 925 shares as of March 28, 2020 and December 28, 2019, respectively	(27,881)	(27,807)
Total stockholders’ equity	786,160	776,437
Total liabilities and stockholders’ equity	$ 2,218,746	$ 2,032,725

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Mar. 28, 2020	Dec. 28, 2019
Statement of Financial Position [Abstract]
Common stock, par value (in usd per share)	$ 0.01	$ 0.01
Common stock, authorized (shares)	200,000,000	200,000,000
Common stock, issued (shares)	81,205,000	80,603,000
Common stock, outstanding (shares)	80,278,000	79,678,000
Treasury stock (shares)	927,000	925,000

Condensed Consolidated Statements of Operations and Comprehensive Income - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 28, 2020	Mar. 30, 2019
Revenue:
Total net revenue	$ 469,704	$ 461,215
Costs applicable to revenue (exclusive of depreciation and amortization):
Total costs applicable to revenue	218,554	211,969
Operating expenses:
Selling, general and administrative expenses	193,741	193,876
Depreciation and amortization	24,810	20,415
Asset impairment	11,355	2,082
Litigation settlement	4,395	0
Other expense (income), net	(66)	473
Total operating expenses	234,235	216,846
Income from operations	16,915	32,400
Interest expense, net	7,455	9,061
Earnings before income taxes	9,460	23,339
Income tax provision (benefit)	(282)	5,910
Net income	$ 9,742	$ 17,429
Earnings per share:
Basic (in usd per share)	$ 0.12	$ 0.22
Diluted (in usd per share)	$ 0.12	$ 0.21
Weighted average shares outstanding:
Basic (shares)	80,129	78,205
Diluted (shares)	82,242	81,466
Comprehensive income:
Net income	$ 9,742	$ 17,429
Unrealized gain (loss) on hedge instruments	(8,858)	(1,273)
Tax provision (benefit) of unrealized gain (loss) on hedge instruments	(2,256)	(326)
Comprehensive income	3,140	16,482
Products
Revenue:
Total net revenue	392,841	383,160
Costs applicable to revenue (exclusive of depreciation and amortization):
Total costs applicable to revenue	156,370	154,004
Services and plans
Revenue:
Total net revenue	76,863	78,055
Costs applicable to revenue (exclusive of depreciation and amortization):
Total costs applicable to revenue	$ 62,184	$ 57,965

Condensed Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands	Total	Cumulative effect of change in accounting principle	Balance as adjusted	Common Stock	Common Stock Balance as adjusted	Additional Paid-In Capital	Additional Paid-In Capital Balance as adjusted	Accumulated Other Comprehensive Loss	Accumulated Other Comprehensive Loss Balance as adjusted	Retained Earnings	Retained Earnings Cumulative effect of change in accounting principle	Retained Earnings Balance as adjusted	Treasury Stock	Treasury Stock Balance as adjusted
Beginning balance (shares) at Dec. 29, 2018				78,167	78,167
Beginning balance at Dec. 29, 2018	$ 743,154	$ (506)	$ 742,648	$ 782	$ 782	$ 672,503	$ 672,503	$ (2,810)	$ (2,810)	$ 74,840	$ (506)	$ 74,334	$ (2,161)	$ (2,161)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock (shares)				51
Issuance of common stock	513			$ 1		512
Stock based compensation	2,937					2,937
Unrealized gain (loss) on hedge instruments, net of tax	(947)							(947)
Net income	17,429									17,429
Ending balance (shares) at Mar. 30, 2019				78,218
Ending balance at Mar. 30, 2019	762,580			$ 783		675,952		(3,757)		91,763			(2,161)
Beginning balance (shares) at Dec. 28, 2019				79,678	79,678
Beginning balance at Dec. 28, 2019	776,437	$ (529)	$ 775,908	$ 805	$ 805	700,121	$ 700,121	(3,814)	$ (3,814)	107,132	$ (529)	$ 106,603	(27,807)	$ (27,807)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock (shares)				602
Issuance of common stock	5,120			$ 6		5,114
Stock based compensation	2,066					2,066
Purchase of treasury stock (shares)				(2)
Purchase of treasury stock	(74)												(74)
Unrealized gain (loss) on hedge instruments, net of tax	(6,602)							(6,602)
Net income	9,742									9,742
Ending balance (shares) at Mar. 28, 2020				80,278
Ending balance at Mar. 28, 2020	$ 786,160			$ 811		$ 707,301		$ (10,416)		$ 116,345			$ (27,881)

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 28, 2020	Mar. 30, 2019
Cash flows from operating activities:
Net income	$ 9,742	$ 17,429
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	24,810	20,415
Amortization of loan costs	217	406
Asset impairment	11,355	2,082
Deferred income tax expense (benefit)	(282)	5,910
Stock based compensation expense	2,093	2,976
Inventory adjustments	1,695	1,319
Credit loss expense	448	2,021
Other	1,014	1,041
Changes in operating assets and liabilities:
Accounts receivable	16,431	(9,307)
Inventories	(4,511)	2,767
Other assets	4,372	5,791
Accounts payable	19,171	1,445
Deferred revenue	509	4,684
Other liabilities	(1,004)	24,035
Net cash provided by operating activities	86,060	83,014
Cash flows from investing activities:
Purchase of property and equipment	(13,053)	(25,992)
Other	199	186
Net cash used for investing activities	(12,854)	(25,806)
Cash flows from financing activities:
Proceeds from issuance of long-term debt, net of discounts	146,269	0
Proceeds from exercise of stock options	5,120	513
Principal payments on long-term debt	0	(1,250)
Purchase of treasury stock	(74)	0
Payments on finance lease obligations	(714)	(617)
Net cash provided by (used for) financing activities	150,601	(1,354)
Net change in cash, cash equivalents and restricted cash	223,807	55,854
Cash, cash equivalents and restricted cash, beginning of year	40,307	17,998
Cash, cash equivalents and restricted cash, end of period	264,114	73,852
Supplemental cash flow disclosure information:
Cash paid for interest	7,065	9,857
Capital expenditures accrued at the end of the period	12,176	13,980
Right of use assets acquired under finance leases	1,244	7,270
Right of use assets acquired under operating leases	$ 17,658	$ 32,981

Description of Business and Basis of Presentation	3 Months Ended
Description of Business and Basis of Presentation	Mar. 28, 2020
Accounting Policies [Abstract]
Description of Business and Basis of Presentation	Description of Business and Basis of Presentation Nature of Operations National Vision Holdings, Inc. (“NVHI,” the “Company,” “we,” “our,” or “us”) is a holding company whose operating subsidiaries include its indirect wholly owned subsidiary, National Vision, Inc. (“NVI”) and NVI’s direct wholly owned subsidiaries. We are a leading value retailer of eyeglasses and contact lenses in the United States and its territories. We operated 1,173 and 1,151 retail optical locations as of March 28, 2020 and December 28, 2019, respectively, through our five store brands, including America’s Best Contacts and Eyeglasses (“America’s Best”), Eyeglass World, Vista Optical locations on U.S. Army/Air Force military bases (“Military”) and within Fred Meyer stores, and our management & services arrangement with Walmart (“Legacy”). Basis of Presentation We prepared the accompanying unaudited interim condensed consolidated financial statements in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and, therefore, do not include all information and disclosures required by U.S. GAAP for complete consolidated financial statements. The condensed consolidated balance sheet as of December 28, 2019 has been derived from the audited consolidated balance sheet for the fiscal year then ended. These condensed consolidated financial statements reflect all normal and recurring adjustments which are, in the opinion of management, necessary to present fairly the Company’s consolidated financial position as of March 28, 2020, the consolidated results of operations and comprehensive income, the statements of changes in stockholders’ equity for the three months ended March 28, 2020 and March 30, 2019, and its statements of cash flows for the three months ended March 28, 2020 and March 30, 2019. Certain information and disclosures normally included in our annual consolidated financial statements have been condensed or omitted; however, we believe that the disclosures included herein are sufficient for a fair presentation of the information presented. These condensed consolidated financial statements should be read in conjunction with our audited consolidated financial statements and the notes thereto for the fiscal year ended December 28, 2019 included in the Company’s Annual Report on Form 10-K filed with the SEC on February 26, 2020. The Company’s significant accounting policies are set forth in Note 1 within those consolidated financial statements. We use the same accounting policies in preparing interim condensed consolidated financial information and annual consolidated financial statements. There were no changes to our significant accounting policies during the three months ended March 28, 2020, except for the adoption of Accounting Standards Update (“ASU”) No. 2018-15, Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract and ASU No. 2016-13, Measurement of Credit Losses on Financial Instruments. See “Adoption of New Accounting Pronouncements” below for further discussion. The condensed consolidated financial statements include our accounts and those of our subsidiaries, all of which are wholly-owned. All intercompany balances and transactions have been eliminated in consolidation. Fiscal Year Our fiscal year consists of 52 or 53 weeks ending on the Saturday closest to December 31. Fiscal year 2020 contains 53 weeks and will end on January 2, 2021. All three month periods presented herein contain 13 weeks. All references to years and quarters relate to fiscal periods rather than calendar periods. Seasonality The consolidated results of operations for the three months ended March 28, 2020 and March 30, 2019 are not necessarily indicative of the results to be expected for the full fiscal year due to seasonality and uncertainty of general economic conditions that may impact our key end markets. Historically, our business has realized a higher portion of net revenue, income from operations, and cash flows from operations in the first half of the year, and a lower portion of net revenue, income from operations, and cash flows from operations in the fourth fiscal quarter. The first half seasonality is attributable primarily to the timing of our customers’ personal income tax refunds and annual health insurance program start/reset periods. Seasonality related to fourth quarter holiday spending by retail customers generally does not impact our business. Our quarterly consolidated results generally may also be affected by the timing of new store openings, store closings, and certain holidays. The COVID-19 pandemic has caused changes in fiscal year 2020 seasonality and may cause changes beyond 2020 to the seasonality we have historically experienced. 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. Asset Impairment We evaluate impairment of long-lived tangible and right of use (“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 value 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, 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 (generally leasehold improvements) 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. The cash flows used in estimating fair value were discounted using a market rate of approximately 8%. 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. A significant decrease in the estimated cash flows would lead to a lower fair value measurement, as would a significant increase in the discount rate. These non-recurring fair value measurements are classified as Level 3 measurements in the fair value hierarchy. We identified indicators of impairment of certain stores and other assets and recorded $11.4 million of related asset impairment charges during the three months ended March 28, 2020 in Corporate/Other. These impairment charges were primarily driven by lower than projected customer sales volume in certain stores; we also considered the effect of store closures and uncertainty in store revenues over the remaining useful life of the asset group as a result of the COVID-19 pandemic. The estimated remaining fair value of the impaired assets was $16.6 million as of March 28, 2020. Substantially all of the remaining fair value of the impaired store assets in fiscal year 2020 represent the fair value of ROU assets. Income Taxes Our income tax benefit for the three months ended March 28, 2020 reflected income tax expense at our statutory federal and state rate of 25.5%, offset by a discrete benefit of $2.7 million associated primarily with stock option exercises. In comparison, the income tax rate associated with the three months ended March 30, 2019 reflected income tax expense at our statutory federal and state rate of 25.7% and was reduced by a $0.2 million income tax benefit resulting from stock option exercises. 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 has elected to apply the AMT refundable credit provision of the CARES Act and has reclassified $1.3 million of AMT credits from deferred income taxes, net as of December 28, 2019 to Other assets as of March 28, 2020. The CARES Act also includes a technical correction wherein qualified improvement property placed in service in 2018 and after is eligible for 100% bonus depreciation. This provision of the CARES Act resulted in an increase in our NOL carry-forwards with an offsetting increase in our gross deferred tax liability relating to property and equipment of approximately $25.0 million as of March 28, 2020. We are evaluating the applicability of the CARES Act to the Company, and the potential impacts on our business. There is no guarantee that we will meet the eligibility requirements to participate in such programs or, even if we are able to participate, that such programs will provide meaningful benefit to our business. Consequently, it is not possible to estimate at this time the availability, extent or impact of any such relief. Adoption of New Accounting Pronouncements Cloud Computing. In August 2018, the FASB issued ASU No. 2018-15, Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. This new guidance aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). This new guidance is effective for fiscal years beginning after December 15, 2019, and for interim periods within those fiscal years and may be adopted on a prospective or retrospective basis. We adopted the accounting standard on a prospective basis in the first quarter of 2020. The adoption of this guidance did not have a material impact on the Company’s financial condition, results of operations or cash flows. Credit Losses. In June 2016, the FASB issued ASU No. 2016-13, Measurement of Credit Losses on Financial Instruments. This new guidance requires an entity to assess impairment of its financial instruments based on its estimate of expected credit losses. Initial adoption of ASU 2016-13 is required to be reported on a modified retrospective basis, with a cumulative-effect adjustment to retained earnings as of the beginning of the year of adoption, except for certain provisions that are required to be applied prospectively. This guidance is effective for fiscal years beginning after December 15, 2019, and for interim reporting periods within those fiscal years. We adopted ASU No. 2016-13 as of December 29, 2019 (the first day of fiscal year 2020), using the modified retrospective approach without adjusting the comparative periods presented. Upon adoption, the Company recorded a $0.7 million increase to the allowance for credit losses as a result of increases in our allowance for credit losses of notes receivable (Refer to Note 6. “Equity in Assets of Non-Consolidated Investee” for more information on our non-consolidated investee’s secured convertible promissory note). After adjusting for deferred taxes, we recorded a $0.5 million decrease in retained earnings through a cumulative-effect adjustment. Adoption of this new guidance did not have a material impact on the Company’s financial condition, results of operations or cash flows. Future Adoption of Accounting Pronouncements Reference Rate Reform. In March 2020, the FASB issued ASU No. 2020-04, Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“ASU 2020-04”). This guidance provides optional expedients for applying U.S. GAAP to contracts that may be affected by the cessation of the London Inter-bank Offered Rate (“LIBOR.”) ASU 2020-04 is effective from March 2020 through December 2022. A substantial portion of our debt is subject to interest payments that are indexed to LIBOR; additionally, we are party to multiple interest rate derivatives based on LIBOR. We are currently evaluating the effect of this guidance.

Details of Certain Balance Sheet Accounts

3 Months Ended

Mar. 28, 2020

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Details of Certain Balance Sheet Accounts



In thousands	As of March 28, 2020			As of December 28, 2019
Accounts receivable, net:
Trade receivables	$	22,763		$	28,635
Credit card receivables	2,441			14,173
Other receivables	3,344			4,707
Allowance for credit losses	(952		)	(3,040		)
	$	27,596		$	44,475



In thousands	As of March 28, 2020		As of December 28, 2019
Inventories:
Raw materials and work in process ⁽¹⁾	$	69,706	$	65,179
Finished goods	60,666		62,377
	$	130,372	$	127,556
(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 March 28, 2020		As of December 28, 2019
Property and equipment, net:
Land and building	$	3,624	$	3,632
Equipment	188,239		188,593
Information technology hardware and software	116,569		115,283
Furniture and fixtures	54,446		55,146
Leasehold improvements	212,431		213,124
Construction in progress	22,548		26,517
Right of use assets under finance leases	36,073		36,437
	633,930		638,732
Less: Accumulated depreciation	284,163		271,965
	$	349,767	$	366,767



In thousands	As of March 28, 2020		As of December 28, 2019
Other payables and accrued expenses:
Employee compensation and benefits	$	30,680	$	28,347
Advertising	2,746		2,919
Self-insurance liabilities	8,313		8,403
Reserves for customer returns and remakes	7,004		7,158
Capital expenditures	10,062		6,782
Legacy management & services agreement	3,932		4,461
Fair value of derivative liabilities	8,230		6,382
Supplies and other store support expenses	3,479		2,926
Litigation settlements	8,228		3,840
Other	16,298		11,611
	$	98,972	$	82,829



In thousands	As of March 28, 2020		As of December 28, 2019
Other non-current liabilities:
Fair value of derivative liabilities	$	8,613	$	1,603
Self-insurance liabilities	7,351		7,283
Other	4,562		4,845
	$	20,526	$	13,731

Fair Value Measurements of Financial Assets and Liabilities

3 Months Ended

Mar. 28, 2020

Fair Value Disclosures [Abstract]

Fair Value Measurements of Financial Assets and Liabilities

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 pricing based upon 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.

Cash Equivalents and Restricted Cash

The carrying amount of cash equivalents 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 related allowances for 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 and Revolving Credit Facility

Since the borrowings under our term loan and revolving credit facility utilize variable interest rate setting mechanisms such as LIBOR, the fair values of these borrowings are deemed to approximate the carrying values. Refer to Note 4. “Long-term Debt” and Note 14. “Subsequent Events” for additional information on our term loan and revolving credit facility.

Finance Lease Obligations

The fair value of finance lease obligations is based on estimated future contractual cash flows discounted at an appropriate market rate of interest (Level 2 inputs). The estimated fair values of our finance leases were $38.5 million and $38.2 million as of March 28, 2020 and December 28, 2019, respectively, compared to carrying values of $33.9 million and $33.3 million, respectively.

Interest Rate Derivatives

The Company is party to pay-fixed and receive-floating interest rate swap agreements to offset the variability of cash flows in LIBOR-indexed debt interest payments, subject to a 1.0% floor, attributable to changes in the benchmark interest rate from March 13, 2017 to March 13, 2021 related to its credit agreement. During the first quarter of 2020, in accordance with the original agreements with the counterparties, the notional amount of one swap decreased from $105.0 million to $70.0 million. There were no other changes in the terms of the agreements. Also, during the first quarter of 2020, the Company entered into a forward-starting interest rate collar that will hedge variability of cash flows of LIBOR-indexed debt interest payments from March 13, 2021 to July 18, 2024, following the maturity of the interest rate swap agreements, with an aggregate notional amount of $375 million.

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. Fair value is based on information that is model-driven and whose inputs are observable (Level 2 inputs). Cumulative unrealized losses on derivative instruments are recorded in accumulated other comprehensive loss (“AOCL”), net of tax. As of March 28, 2020, the Company expects to reclassify $6.1 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 13. “Accumulated Other Comprehensive Loss” for further details.

Changes in the cash flows of each derivative are expected to be highly effective in offsetting the changes in interest payments on a principal balance equal to the derivative’s notional amount, attributable to the hedged risk. Our hedges have been deemed highly effective since inception as a result of our quarterly hedge effectiveness testing.

Our cash flow hedge position related to interest rate derivative contracts is as follows:



In thousands	Notional Amount		Other Payables and Accrued Expenses		Other Liabilities		AOCL, Net of Tax⁽¹⁾
As of March 28, 2020	$	395,000	$	8,230	$	8,613	$	10,416
As of December 28, 2019	$	430,000	$	6,382	$	1,603	$	3,814

(1)

Includes stranded tax benefit of $2.1 million within AOCL from adopting provisions of the Tax Cuts and Jobs Act of 2017 during the year ended December 30, 2017.

Long-term Debt

3 Months Ended

Mar. 28, 2020

Debt Disclosure [Abstract]

Long-term Debt

Long-term debt consists of the following:



In thousands	As of March 28, 2020			As of December 28, 2019
Term loan, due July 18, 2024	392,375			392,375
Revolving credit facility, due July 18, 2024	294,269			148,000
Term loan and revolving credit facility before unamortized discount	686,644			540,375
Unamortized discount	(3,762		)	(3,979		)
Total term loan and revolving credit facility	682,882			536,396
Less current maturities	—			(10,500		)
Term loan and revolving credit facility - non-current portion	682,882			525,896
Finance lease obligations	33,895			33,296
Less current maturities	(3,531		)	(3,259		)
Long-term debt, less current portion and unamortized debt discount	$	713,246		$	555,933

The Company made a $25.0 million principal prepayment in 2019; the table below reflects the application of the prepayment towards quarterly principal payment obligations in 2020, 2021 and 2022.

Scheduled annual maturities of debt are as follows:



Fiscal Period	In thousands
2020 - remaining fiscal year	$	—
2021	—
2022	9,125
2023	21,000
2024	656,519
	$	686,644

We were in compliance with all covenants related to our long-term debt as of March 28, 2020. In March 2020, as a precautionary measure to preserve financial flexibility in light of the uncertainties surrounding the COVID-19 pandemic, the Company borrowed the remaining $146.3 million in available funds under its revolving credit facility all due in 2024. Refer to Note 14. “Subsequent Events” for more information on our long-term debt.

Stock Incentive Plans	3 Months Ended
Stock Incentive Plans	Mar. 28, 2020
Share-based Payment Arrangement [Abstract]
Stock Incentive Plans	During the three months ended March 28, 2020, the Company granted 158,206 stock options, 124,863 performance-based restricted stock units (“PSUs”) and 155,550 restricted stock units (“RSUs”) to eligible employees under the National Vision Holdings, Inc. 2017 Omnibus Incentive Plan (the “2017 Omnibus Incentive Plan”). The time-based options granted in fiscal 2020 vest in three equal annual installments, with one-third of the total options vesting on each of the first, second, and third anniversaries of the grant date, subject to continued employment through the applicable vesting date. The PSUs granted in fiscal 2020 are settled after the end of the performance period (i.e., cliff vesting), which begins on the first day of our 2020 fiscal year and ends on the last day of our 2022 fiscal year, and are based on the Company’s achievement of certain performance targets. The RSUs granted in fiscal 2020 vest primarily in three equal installments through February 28, 2023.

Equity in Net Assets of Non-Consolidated Investee	3 Months Ended
Equity in Net Assets of Non-Consolidated Investee	Mar. 28, 2020
Equity Method Investments and Joint Ventures [Abstract]
Equity in Net Assets of Non-Consolidated Investee	Equity in Net Assets of Non-Consolidated Investee The Company has an investment in a private start-up company whose principal business is licensing software to eyeglass retailers. Under the equity method of accounting, we are required to record our interest in the investee’s reported net income or loss for each reporting period, which is presented in other expense, net in the Company’s condensed consolidated statements of operations. After adjusting the carrying value of our interest in the investee’s reported net losses, there is no remaining equity investment balance associated with this investee as of March 28, 2020. On August 29, 2017, the investee issued a secured convertible promissory note to the Company, in the principal amount of $1.5 million, due on August 29, 2020. Upon adoption of ASU No. 2016-13, Measurement of Credit Losses on Financial Instruments in the first quarter of 2020, the Company increased the allowance for credit losses related to the convertible promissory note to $1.5 million. After adjusting for the estimated credit losses, there is no remaining carrying value of the convertible promissory note as of March 28, 2020. Interest income associated with the note was immaterial for the three months ended March 28, 2020 and March 30, 2019. In April 2020, subsequent to the date of the financial statements, the Company converted the promissory note to an equity investment.

Revenue From Contracts with Customers

3 Months Ended

Mar. 28, 2020

Revenue from Contract with Customer [Abstract]

Revenue From Contracts with Customers

Revenue from Contracts with Customers

The Company’s revenues are recognized either at the point of sale or upon delivery and customer acceptance, paid for at the time of sale in cash, credit card, or on account with managed care payors having terms generally between 14 and 120 days, with most paying within 90 days. Our point in time revenues include 1) retail sales of prescription and non-prescription eyewear, contact lenses and related accessories to retail customers (including those covered by managed care), 2) eye exams and 3) wholesale sales of inventory in which our customer is another retail entity. Revenues recognized over time primarily include product protection plans, eye care club memberships and management fees earned from our legacy partner.

The following disaggregation of revenues is based on the timing of revenue recognition:



	Three Months Ended
In thousands	March 28, 2020		March 30, 2019
Revenues recognized at a point in time	$	434,179	$	424,214
Revenues recognized over time	35,525		37,001
Total net revenue	$	469,704	$	461,215

Refer to Note 10. “Segment Reporting” for the Company’s disaggregation of net revenue by reportable segment. As the reportable segments are aligned by similar economic factors, trends and customers, the reportable segment disaggregation view best depicts how the nature, amount and uncertainty of revenue and cash flows are affected by economic factors.

Contract Assets and Liabilities

The Company’s contract assets and contract liabilities primarily result from timing differences between the performance of our obligations and the customer’s payment.

Accounts Receivable

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 United States 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 condensed consolidated statements of operations, were approximately $0.4 million for the three months ended March 28, 2020 as compared to $2.0 million for the three months ended March 30, 2019.

The following table summarizes the activity of allowance for expected credit losses for the three months ended March 28, 2020.



In thousands	Three Months Ended March 28, 2020
Beginning balance as of December 28, 2019	(3,040	)
Current-period provision for expected credit losses	(448	)
Write-offs charged against the allowance	329
Other adjustments ⁽¹⁾	2,207
Ending balance as of March 28, 2020	(952	)
⁽¹⁾ As part of our adoption of ASU 2016-13 we adjusted the allowance for certain amounts recognized in prior periods that no longer represented an allowance for credit losses. The adjustment was immaterial to the financial results of current and prior periods. See Note 2. “Details of Certain Balance Sheet Accounts” for further details.

Unsatisfied Performance Obligations (Contract Liabilities)

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 condensed consolidated balance sheets. Unearned revenue at the end of a reporting period is estimated based on delivery times throughout the current month and generally ranges from approximately seven to 10 days; all unearned revenue at the end of a reporting period is recognized in the next fiscal period. Due to the temporary closure of our stores on March 19, 2020, we additionally evaluated eyeglass sales orders placed closer to March 19, 2020 for unearned revenue considering ship-to-home and delivery dates. The unearned revenue methodology for unearned revenue on contact lenses remained the same as a majority of contact lenses sales are ship-to-home which do not require store pick-up.

Our contract liabilities also consist of deferred revenue on services and plans obligations, primarily product protection plans and eyecare club memberships. The unamortized portion of amounts we collect in advance for these services and plans is reported as deferred revenue in the accompanying condensed consolidated balance sheets (current and non-current portions). Our deferred revenue balance as of March 28, 2020 was $77.9 million. We expect future revenue recognition of this balance of $48.5 million, $21.1 million, $7.7 million, $0.5 million, and $0.1 million in fiscal years 2020, 2021, 2022, 2023, and 2024, respectively. We recognized $28.0 million of previously deferred revenues during the three months ended March 28, 2020, and $27.7 million during the three months ended March 30, 2019.

Leases

3 Months Ended

Mar. 28, 2020

Leases [Abstract]

Leases

We lease our stores, laboratories, distribution centers, and corporate offices. These leases generally have noncancelable lease terms of between five and 10 years, with an option to renew for additional terms of one to 10 years or more. The lease term includes renewal option periods when the renewal is deemed reasonably certain after considering the value of the leasehold improvements at the end of the noncancelable lease period. Most leases for our stores provide for a minimum rent and typically include escalating rent over time with the exception of Military for which lease payments are variable and based on a percentage of sales. For Vista Optical locations in Fred Meyer stores, we pay fixed rent plus a percentage of sales after certain minimum thresholds are achieved. The Company’s leases generally require us to pay insurance, real estate taxes and common area maintenance expenses, substantially all of which are variable and not included in the measurement of the lease liability. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. With respect to lease accounting guidance, the Company’s management & services agreement with its legacy partner does not contain a lease arrangement.

Our lease arrangements include Tenant Improvement Allowances (“TIAs”), which are contractual amounts received from a lessor for improvements made to leased properties by the Company. For operating leases, TIAs are treated as a reduction of the lease payments used to measure the ROU assets in the accompanying consolidated balance sheets, and are amortized as a reduction in rental expense over the life of the respective leases.

We rent or sublease certain parts of our stores to third parties. Our sublease portfolio consists mainly of operating leases with our ophthalmologists and optometrists within our stores.



In thousands		As of March 28, 2020		As of December 28, 2019
Type	Classification
	ASSETS
Finance	Property and equipment, net ^(a)	$	26,716	$	28,128
Operating	Right of use assets^(b)	343,731		348,090
	Total leased assets	370,447		376,218
	LIABILITIES
	Current Liabilities:
Finance	Current maturities of long-term debt and finance lease obligations	$	3,531	$	3,259
Operating	Current operating lease obligations ^(c)	60,014		51,937
	Other non-current liabilities:
Finance	Long-term debt and finance lease obligations, less current portion and debt discount	30,364		30,037
Operating	Non-current operating lease obligations	331,234		331,769
	Total lease liabilities	$	425,143	$	417,002
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 $9.4 million and $8.3 million as of March 28, 2020 and December 28, 2019, respectively.

(b) TIA of $35.5 million and $35.2 million are treated as reductions of lease payments used to measure ROU assets as of March 28, 2020 and December 28, 2019, respectively. Deferred rent of $15.7 million and $15.0 million are treated as reductions of lease payments used to measure ROU assets as of March 28, 2020 and December 28, 2019, respectively.

(c) Current operating lease liabilities are measured net of TIA receivables of $4.6 million and $5.9 million as of March 28, 2020 and December 28, 2019, respectively.



In thousands	As of March 28, 2020			As of March 30, 2019
Operating lease cost
Fixed lease cost ^(a)	$	19,312		$	18,163
Variable lease cost ^(b)	6,810			6,466
Sublease income^(c)	(591		)	(962		)

Finance lease cost
Amortization of finance lease assets	1,156			978

Interest expense, net:
Interest on finance lease liabilities	872			890

Net lease cost	$	27,559		$	25,535
(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 ophthalmologists and optometrists who are independent contractors.



Lease Term and Discount Rate	As of March 28, 2020		As of December 28, 2019
Weighted average remaining lease term (months)
Operating leases	81		82
Finance leases	87		88
Weighted average discount rate ^(a)
Operating leases	4.6	%	4.6	%
Finance leases ^(b)	12.7	%	13.1	%
(a) The discount rate used to determine the lease assets and lease liabilities was derived upon considering (i) incremental borrowing rates on our long-term debt; (ii) fixed rates we pay on our interest rate swaps; (iii) LIBOR margins for issuers of similar credit rating; and (iv) effect of collateralization. As a majority of our leases are five-year and 10-year leases, we determined a lease discount rate for such tenors and determined this discount rate is reasonable for leases that were entered into during the period.
(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	As of March 28, 2020		As of March 30, 2019
Other Information	As of March 28, 2020		As of March 30, 2019
Cash paid for amounts included in the measurement of lease liabilities
Operating cash outflows - operating leases	$	15,269	$	18,146

The following table summarizes the maturity of our lease liabilities as of March 28, 2020:



In thousands	Operating Leases ^(a)		Finance Leases^(b)
Fiscal Year	Operating Leases ^(a)		Finance Leases^(b)
2020	$	56,224	$	5,319
2021	77,307		7,280
2022	69,631		7,215
2023	62,360		6,241
2024	55,206		4,673
Thereafter	138,152		16,460
Total lease liabilities	458,880		47,188
Less: Interest	67,632		13,293
Present value of lease liabilities^(c)	$	391,248	$	33,895
(a) Operating lease payments include $69.8 million related to options to extend lease terms that are reasonably certain of being exercised.
(b) Finance lease payments include $1.7 million related to options to extend lease terms that are reasonably certain of being exercised.
(c) The present value of lease liabilities excludes $21.0 million of legally binding minimum lease payments for leases signed but not yet commenced.

Leases

We rent or sublease certain parts of our stores to third parties. Our sublease portfolio consists mainly of operating leases with our ophthalmologists and optometrists within our stores.



In thousands		As of March 28, 2020		As of December 28, 2019
Type	Classification
	ASSETS
Finance	Property and equipment, net ^(a)	$	26,716	$	28,128
Operating	Right of use assets^(b)	343,731		348,090
	Total leased assets	370,447		376,218
	LIABILITIES
	Current Liabilities:
Finance	Current maturities of long-term debt and finance lease obligations	$	3,531	$	3,259
Operating	Current operating lease obligations ^(c)	60,014		51,937
	Other non-current liabilities:
Finance	Long-term debt and finance lease obligations, less current portion and debt discount	30,364		30,037
Operating	Non-current operating lease obligations	331,234		331,769
	Total lease liabilities	$	425,143	$	417,002
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 $9.4 million and $8.3 million as of March 28, 2020 and December 28, 2019, respectively.

(c) Current operating lease liabilities are measured net of TIA receivables of $4.6 million and $5.9 million as of March 28, 2020 and December 28, 2019, respectively.



In thousands	As of March 28, 2020			As of March 30, 2019
Operating lease cost
Fixed lease cost ^(a)	$	19,312		$	18,163
Variable lease cost ^(b)	6,810			6,466
Sublease income^(c)	(591		)	(962		)

Finance lease cost
Amortization of finance lease assets	1,156			978

Interest expense, net:
Interest on finance lease liabilities	872			890

Net lease cost	$	27,559		$	25,535
(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 ophthalmologists and optometrists who are independent contractors.



Lease Term and Discount Rate	As of March 28, 2020		As of December 28, 2019
Weighted average remaining lease term (months)
Operating leases	81		82
Finance leases	87		88
Weighted average discount rate ^(a)
Operating leases	4.6	%	4.6	%
Finance leases ^(b)	12.7	%	13.1	%
(a) The discount rate used to determine the lease assets and lease liabilities was derived upon considering (i) incremental borrowing rates on our long-term debt; (ii) fixed rates we pay on our interest rate swaps; (iii) LIBOR margins for issuers of similar credit rating; and (iv) effect of collateralization. As a majority of our leases are five-year and 10-year leases, we determined a lease discount rate for such tenors and determined this discount rate is reasonable for leases that were entered into during the period.
(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	As of March 28, 2020		As of March 30, 2019
Other Information	As of March 28, 2020		As of March 30, 2019
Cash paid for amounts included in the measurement of lease liabilities
Operating cash outflows - operating leases	$	15,269	$	18,146

The following table summarizes the maturity of our lease liabilities as of March 28, 2020:



In thousands	Operating Leases ^(a)		Finance Leases^(b)
Fiscal Year	Operating Leases ^(a)		Finance Leases^(b)
2020	$	56,224	$	5,319
2021	77,307		7,280
2022	69,631		7,215
2023	62,360		6,241
2024	55,206		4,673
Thereafter	138,152		16,460
Total lease liabilities	458,880		47,188
Less: Interest	67,632		13,293
Present value of lease liabilities^(c)	$	391,248	$	33,895
(a) Operating lease payments include $69.8 million related to options to extend lease terms that are reasonably certain of being exercised.
(b) Finance lease payments include $1.7 million related to options to extend lease terms that are reasonably certain of being exercised.
(c) The present value of lease liabilities excludes $21.0 million of legally binding minimum lease payments for leases signed but not yet commenced.

Commitments and Contingencies	3 Months Ended
Commitments and Contingencies	Mar. 28, 2020
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Legal Proceedings From time to time, the Company is involved in various legal proceedings incidental to its business. Because of the nature and inherent uncertainties of litigation, we cannot predict with certainty the ultimate resolution of these actions and, should the outcome of these actions be unfavorable, the Company’s business, financial position, results of operations or cash flows could be materially and adversely affected. The Company reviews the status of its legal proceedings and records a provision for a liability when it is considered probable that both a liability has been incurred and the amount of the loss can be reasonably estimated. This review is updated periodically as additional information becomes available. If either or both of the criteria are not met, we reassess whether there is at least a reasonable possibility that a loss, or additional losses, may be incurred. If there is a reasonable possibility that a loss may be incurred, we disclose the estimate of the amount of the loss or range of losses, or that an estimate of loss cannot be made. The Company expenses its legal fees as incurred. We are currently and may in the future become subject to various claims and pending or threatened lawsuits in the ordinary course of our business. Our subsidiary, FirstSight Vision Services, Inc. (“FirstSight”), is a defendant in a purported class action in the U.S. District Court for the Southern District of California that alleges that FirstSight participated in arrangements that caused the illegal delivery of eye examinations and that FirstSight thereby violated, among other laws, the corporate practice of optometry and the unfair competition and false advertising laws of California. The lawsuit was filed in 2013 and FirstSight was added as a defendant in 2016. In March 2017, the court granted the motion to dismiss previously filed by FirstSight and dismissed the complaint with prejudice. The plaintiffs filed an appeal with the U.S. Court of Appeals for the Ninth Circuit in April 2017. In July 2018, the U.S. Court of Appeals for the Ninth Circuit vacated in part, and reversed in part, the district court’s dismissal and remanded for further proceedings. In October 2018, the plaintiffs filed a second amended complaint with the district court, and, in November 2018, FirstSight filed a motion to dismiss. On March 23, 2020, the district court granted FirstSight’s motion to dismiss the second amended complaint. On April 24, 2020, the plaintiffs filed a third amended complaint. We believe that the claims alleged are without merit and intend to continue to defend the litigation vigorously. In May 2017, a complaint was filed against us and other defendants alleging, on behalf of a proposed class of consumers who purchased contact lenses online, that 1-800 Contacts, Inc. entered into a series of agreements with the other defendants, including our wholly-owned subsidiary, Arlington Contact Lens Service, Inc. (“AC Lens”), to suppress certain online advertising and that each defendant thereby engaged in anticompetitive conduct in violation of the Sherman Antitrust Act. We have settled this litigation for $7.0 million, without admitting liability. Accordingly, we recorded a charge for this amount in litigation settlement in the consolidated statement of operations during the second quarter of fiscal year 2017. On November 8, 2017, the court in the 1-800 Contacts matter entered an order preliminarily approving the settlement agreement, subject to a settlement hearing. Pursuant to this order, we deposited 50% of the settlement amount, or $3.5 million, into an escrow account, to be distributed subject to and in accordance the terms of the settlement agreement and any further order of the court. In February 2019, we were served with a lawsuit by a former employee who alleges, on behalf of himself and a proposed class, several violations of California wage and hour laws and seeks unspecified alleged unpaid wages, monetary damages, injunctive relief and attorneys’ fees. On March 21, 2019, we removed the lawsuit from state court to the United States District Court for the Northern District of California. The plaintiff moved to remand the action to state court on April 18, 2019, and the Court denied this motion on July 8, 2019. On July 22, 2019, the plaintiff filed an amended complaint. On July 26, 2019, the parties filed a joint stipulation wherein the Company denied all claims in the amended complaint but joined the plaintiff in seeking a stay of further proceedings in the lawsuit based on the parties’ agreement to attend early mediation in an effort to avoid further costs and expenses of protracted litigation. The parties participated in mediation on February 19, 2020, but a resolution of the matter was not reached at that time. On February 27, 2020, following mediation, the parties agreed to a settlement of all claims alleged by the named claimant on behalf of himself and all putative class members and other aggrieved employees. The Company will pay $3.5 million as the gross settlement fund in connection with this settlement. This settlement is subject to approval by the court following a fairness hearing. In November 2019, the Company agreed to enter into a pre-litigation settlement with six former employees who asserted, on behalf of themselves and a proposed class, violations of the Fair Labor Standards Act and of California wage and hour laws. In order to avoid the burden, expense and uncertainty of litigation, and without admitting liability, the Company agreed to a settlement with the named claimants and all participating class members for a maximum settlement amount of $895,000. This settlement is subject to approval by a tribunal following a fairness hearing.

Segment Reporting

3 Months Ended

Mar. 28, 2020

Segment Reporting [Abstract]

Segment Reporting

The Company provides its principal products and services through two reportable segments: Owned & Host and Legacy. The “Corporate/Other” category includes the results of operations of our other operating segments, AC Lens and FirstSight, as well as corporate overhead support. The “Reconciliations” category represents other adjustments to reportable segment results necessary for the presentation of consolidated financial results in accordance with U.S. GAAP.

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 condensed consolidated financial statements, except for net revenue and associated costs applicable to revenue, which is presented on a cash basis, including point of sales for managed care payors and excluding the effects of unearned and deferred revenue, consistent with what the chief operating decision maker (“CODM”) regularly reviews. Asset information is not included in the following summary since the CODM does not regularly review such information for the reportable segments. Our reportable segment profit measure is earnings before interest, tax, depreciation and amortization (“EBITDA”), or net revenue, less costs applicable to revenue, less selling, general and administrative costs. Depreciation and amortization, asset impairment, litigation settlement and other corporate costs that are not allocated to the reportable segments, including interest expense are excluded from segment EBITDA. There are no revenue transactions between our reportable segments. We measure assets in our reportable segments on the same basis as 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. As the reportable segments are aligned by similar economic factors, trends and customers, this disaggregation view best depicts how the nature, amount, and uncertainty of revenue and cash flows are affected by economic factors.



	Three Months Ended March 28, 2020
In thousands	Owned & Host		Legacy		Corporate/Other			Reconciliations			Total
Segment product revenues	$	281,914	$	24,418	$	66,571		$	19,938		$	392,841
Segment services and plans revenues	65,313		12,039		—			(489		)	76,863
Total net revenue	347,227		36,457		66,571			19,449			469,704
Costs of products	81,917		11,404		57,907			5,142			156,370
Costs of services and plans	55,594		6,590		—			—			62,184
Total costs applicable to revenue	137,511		17,994		57,907			5,142			218,554
SG&A	134,714		13,631		45,396			—			193,741
Asset impairment	—		—		11,355			—			11,355
Litigation settlement	—		—		4,395			—			4,395
Other expense (income), net	—		—		(66		)	—			(66		)
EBITDA	$	75,002	$	4,832	$	(52,416	)	$	14,307
Depreciation and amortization											24,810
Interest expense, net											7,455
Income before income taxes											$	9,460



	Three Months Ended March 30, 2019
In thousands	Owned & Host		Legacy		Corporate/Other			Reconciliations			Total
Segment product revenues	$	296,919	$	30,141	$	63,875		$	(7,775	)	$	383,160
Segment services and plans revenues	68,301		14,437		6			(4,689		)	78,055
Total net revenue	365,220		44,578		63,881			(12,464		)	461,215
Costs of products	85,246		14,130		56,595			(1,967		)	154,004
Costs of services and plans	51,664		6,301		—			—			57,965
Total costs applicable to revenue	136,910		20,431		56,595			(1,967		)	211,969
SG&A	133,213		14,237		46,426			—			193,876
Asset impairment	—		—		2,082			—			2,082
Other expense, net	—		—		473			—			473
EBITDA	$	95,097	$	9,910	$	(41,695	)	$	(10,497	)
Depreciation and amortization											20,415
Interest expense, net											9,061
Income before income taxes											$	23,339

Revenues associated with managing operations of our legacy partner were $7.5 million and $9.3 million for the three months ended March 28, 2020 and March 30, 2019, respectively. During the three months ended March 28, 2020, sales associated with our Legacy partner arrangement represented 7.8% of consolidated net revenue. During the three months ended March 28, 2020, AC Lens sales associated with Walmart and Sam’s Club contact lenses distribution arrangements represented 8.6% of consolidated net revenue. This exposes us to concentration of customer risk.

Earnings Per Share

3 Months Ended

Mar. 28, 2020

Earnings Per Share [Abstract]

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 common shares outstanding for the period and includes the dilutive impact of potential new common shares issuable upon vesting and exercise of stock options and vesting of restricted stock units. Potential shares of common stock are excluded from the computation of diluted EPS if their effect is anti-dilutive. A reconciliation of the numerators and denominators of the basic and diluted EPS calculations is as follows:



	Three Months Ended
In thousands, except EPS	March 28, 2020		March 30, 2019
Net income	$	9,742	$	17,429
Weighted average shares outstanding for basic EPS	80,129		78,205
Effect of dilutive securities:
Stock options	2,020		3,221
Restricted stock	93		40
Weighted average shares outstanding for diluted EPS	82,242		81,466
Basic EPS	$	0.12	$	0.22
Diluted EPS	$	0.12	$	0.21
Anti-dilutive options, RSUs outstanding excluded from EPS	394		356

Restricted Cash Restricted Cash

3 Months Ended

Mar. 28, 2020

Cash and Cash Equivalents [Abstract]

Restricted Cash

The following table provides a reconciliation of cash and cash equivalents reported within the condensed consolidated balance sheets to the total of cash, cash equivalents and restricted cash shown in the consolidated statement of cash flows:



	Three Months Ended
In thousands	March 28, 2020		March 30, 2019
Cash and cash equivalents	$	263,154	$	72,506
Restricted cash included in other assets	960		1,346
Total cash, cash equivalents and restricted cash	$	264,114	$	73,852

Accumulated Other Comprehensive Loss

3 Months Ended

Mar. 28, 2020

Equity [Abstract]

Accumulated Other Comprehensive Loss

Changes in the fair value of the Company’s cash flow hedge derivative instruments since inception are recorded in AOCL. The following table presents the changes in AOCL during the three months ended March 28, 2020 and March 30, 2019, respectively:



	Three Months Ended
In thousands	March 28, 2020			March 30, 2019
Cash flow hedging activity:
Balance at beginning of period	$	(3,814	)	$	(2,810	)
Other comprehensive income (loss) before reclassification	(10,681		)	(2,188		)
Tax effect of other comprehensive income (loss) before reclassification	2,721			561
Amount reclassified from AOCL into interest expense	1,823			915
Tax effect of amount reclassified from AOCL into interest expense	(465		)	(235		)
Net current period other comprehensive income (loss), net of tax	(6,602		)	(947		)
Balance at end of period	$	(10,416	)	$	(3,757	)

See Note 3. “Fair Value Measurements of Financial Assets and Liabilities” for a description of the Company’s use of cash flow hedging derivatives.

Subsequent Events	3 Months Ended
Subsequent Events	Mar. 28, 2020
Subsequent Events [Abstract]
Subsequent Events	Impacts of COVID-19 Pandemic The unprecedented and rapid spread of the COVID-19 pandemic and the related federal, state and local governmental and healthcare authority guidelines have caused business disruption globally and in the U.S., including the temporary closure of our stores to the public beginning in March 2020. On April 7, 2020, we temporarily furloughed a significant portion of our employees and implemented expense reduction initiatives including a pause in new store openings, reduced near term marketing spend, and reduced compensation and work hours across the organization. We also identified additional expense reductions that we intend to implement throughout the remainder of fiscal 2020 as necessary, including working with a base of vendors and landlords to extend payment terms and modify existing contracts. On April 23, 2020, we announced plans to re-open stores selectively over the coming weeks with a goal for all stores within our family of retail brands to be open to the public by early June. The Company has seen, and expects to continue to see, material reductions in sales as a result of the COVID-19 pandemic. The Company could experience other material impacts as a result of the COVID-19 pandemic, including, but not limited to, charges from additional asset impairments, deferred tax valuation allowances and changes in the effectiveness of the Company’s hedging instruments. The current circumstances are dynamic and the continued impacts of the COVID-19 pandemic on the Company’s business operations, including the duration and impact on overall customer demand, are highly uncertain, and the Company anticipates the COVID-19 pandemic will continue to have a material adverse impact on its business, results of operations, financial condition and cash flows in fiscal 2020. May 2020 Amendment to Credit Agreement On May 5, 2020, certain of the Company’s subsidiaries entered into an agreement (the “Amendment”) with the lenders under their existing secured credit facility in order to amend certain provisions of the Amended and Restated Credit Agreement, dated as of July 18, 2019 (as amended by the Amendment, the “Credit Agreement”), by and among Nautilus Acquisition Holdings, Inc. (“Holdings”), National Vision, Inc. (“NVI”), the other subsidiaries of the Company party thereto, as guarantors, each lender party thereto and Bank of America, N.A., in its capacity as administrative agent and as collateral agent. Capitalized terms used but not defined herein shall have the meanings assigned to such terms in the Credit Agreement and Amendment, as applicable. This Amendment is intended to prevent the effects of the COVID-19 pandemic, including the temporary closure of our stores, from creating uncertainty relative to our ability to comply with certain financial covenants and allow the Company to focus on prudent management of the business over the quarters ahead. As set forth in greater detail below, the Amendment suspends certain financial maintenance covenants contained in the Credit Agreement until testing at the end of the second fiscal quarter of 2021. Based on our current plans to gradually and safely re-open stores and management operational assumptions, we anticipate we will be in compliance with these amended covenants. Pursuant to the Amendment, the financial covenants relating to maintenance of a maximum Consolidated Total Debt to Consolidated EBITDA Ratio and a minimum Consolidated Interest Coverage Ratio are suspended until testing at the end of the second fiscal quarter of 2021. From and after such time, such covenants will be reinstated on a modified basis so that, subject to certain exceptions and limitations as described in the Amendment, (i) with respect to the second and third fiscal quarters of 2021, the Consolidated Total Debt to Consolidated EBITDA Ratio shall not exceed 4.50 to 1.00 and, with respect to the fourth fiscal quarter of fiscal 2021 and thereafter, the Consolidated Total Debt to Consolidated EBITDA Ratio shall not exceed 4.00 to 1.00, in each case with NVI being able to elect to annualize certain quarterly periods so that quarterly performance from fiscal 2020 is excluded and (ii) with respect to the second fiscal quarter of 2021 and thereafter, the Consolidated Interest Coverage Ratio shall not be less than 3.00 to 1.00. In lieu of such financial covenants, pursuant to the Amendment NVI will agree during the suspension period, (i) not to have Consolidated EBITDA for any six fiscal quarter period be less than $0, with the second fiscal quarter of 2020 permitted to be excluded in certain circumstances, and (ii) to have a minimum level of liquidity (defined as cash and cash equivalents plus the unused portion of the revolving credit facility) equal to the lesser of (x) $100,000,000 and (y) $40,000,000 plus the amount of any net proceeds from capital markets financings during such period in excess of $75,000,000. In addition, the Credit Agreement was amended pursuant to the Amendment to, among other things, (i) limit the flexibility of NVI and Holdings with respect to certain transactions during the covenant suspension period, including the ability to declare or pay dividends, incur debt and make investments and dispositions, (ii) require prepayments of the term loans under certain circumstances during the covenant suspension period from the net proceeds from debt or equity capital markets transactions by the Company (with the amount of the term loans to be paid down equal to $75 million from the first $400 million of capital raised and 50% of any proceeds above such amount) and (iii) restrict NVI’s ability to borrow under the revolving credit facility if unrestricted cash and cash equivalents exceeds $50 million (and, in the event of any such excess, to require a mandatory prepayment of such amount). Also pursuant to the Amendment, the margins upon which interest is calculated for the term loans were amended to a range of 1.75% to 2.75% (for LIBOR Loans) and 1.75% to 1.00% (for ABR Loans), in each case based on NVI’s Consolidated First Lien Secured Debt to Consolidated EBITDA Ratio at such time, with such margins subject an increase of 50 basis points in the event that either (i) the Company has not raised at least $135 million in additional proceeds from certain capital markets transactions within 30 days of the date of the Amendment or (ii) Consolidated EBITDA for the most recently ended fiscal period is less than $0.

Description of Business and Basis of Presentation (Policies)	3 Months Ended
	Mar. 28, 2020
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation We prepared the accompanying unaudited interim condensed consolidated financial statements in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and, therefore, do not include all information and disclosures required by U.S. GAAP for complete consolidated financial statements. The condensed consolidated balance sheet as of December 28, 2019 has been derived from the audited consolidated balance sheet for the fiscal year then ended. These condensed consolidated financial statements reflect all normal and recurring adjustments which are, in the opinion of management, necessary to present fairly the Company’s consolidated financial position as of March 28, 2020, the consolidated results of operations and comprehensive income, the statements of changes in stockholders’ equity for the three months ended March 28, 2020 and March 30, 2019, and its statements of cash flows for the three months ended March 28, 2020 and March 30, 2019. Certain information and disclosures normally included in our annual consolidated financial statements have been condensed or omitted; however, we believe that the disclosures included herein are sufficient for a fair presentation of the information presented. These condensed consolidated financial statements should be read in conjunction with our audited consolidated financial statements and the notes thereto for the fiscal year ended December 28, 2019 included in the Company’s Annual Report on Form 10-K filed with the SEC on February 26, 2020. The Company’s significant accounting policies are set forth in Note 1 within those consolidated financial statements. We use the same accounting policies in preparing interim condensed consolidated financial information and annual consolidated financial statements. There were no changes to our significant accounting policies during the three months ended March 28, 2020, except for the adoption of Accounting Standards Update (“ASU”) No. 2018-15, Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract and ASU No. 2016-13, Measurement of Credit Losses on Financial Instruments. See “Adoption of New Accounting Pronouncements” below for further discussion. The condensed consolidated financial statements include our accounts and those of our subsidiaries, all of which are wholly-owned. All intercompany balances and transactions have been eliminated in consolidation.
Fiscal Year	Fiscal Year Our fiscal year consists of 52 or 53 weeks ending on the Saturday closest to December 31. Fiscal year 2020 contains 53 weeks and will end on January 2, 2021. All three month periods presented herein contain 13 weeks. All references to years and quarters relate to fiscal periods rather than calendar periods.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Asset Impairment	Asset Impairment We evaluate impairment of long-lived tangible and right of use (“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 value 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, 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 (generally leasehold improvements) 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
Income Taxes	Income Taxes Our income tax benefit for the three months ended March 28, 2020 reflected income tax expense at our statutory federal and state rate of 25.5%, offset by a discrete benefit of $2.7 million associated primarily with stock option exercises. In comparison, the income tax rate associated with the three months ended March 30, 2019 reflected income tax expense at our statutory federal and state rate of 25.7% and was reduced by a $0.2 million income tax benefit resulting from stock option exercises.
Adoption of New Accounting Pronouncements	doption of New Accounting Pronouncements Cloud Computing. In August 2018, the FASB issued ASU No. 2018-15, Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. This new guidance aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). This new guidance is effective for fiscal years beginning after December 15, 2019, and for interim periods within those fiscal years and may be adopted on a prospective or retrospective basis. We adopted the accounting standard on a prospective basis in the first quarter of 2020. The adoption of this guidance did not have a material impact on the Company’s financial condition, results of operations or cash flows. Credit Losses. In June 2016, the FASB issued ASU No. 2016-13, Measurement of Credit Losses on Financial Instruments. This new guidance requires an entity to assess impairment of its financial instruments based on its estimate of expected credit losses. Initial adoption of ASU 2016-13 is required to be reported on a modified retrospective basis, with a cumulative-effect adjustment to retained earnings as of the beginning of the year of adoption, except for certain provisions that are required to be applied prospectively. This guidance is effective for fiscal years beginning after December 15, 2019, and for interim reporting periods within those fiscal years. We adopted ASU No. 2016-13 as of December 29, 2019 (the first day of fiscal year 2020), using the modified retrospective approach without adjusting the comparative periods presented. Upon adoption, the Company recorded a $0.7 million increase to the allowance for credit losses as a result of increases in our allowance for credit losses of notes receivable (Refer to Note 6. “Equity in Assets of Non-Consolidated Investee” for more information on our non-consolidated investee’s secured convertible promissory note). After adjusting for deferred taxes, we recorded a $0.5 million decrease in retained earnings through a cumulative-effect adjustment. Adoption of this new guidance did not have a material impact on the Company’s financial condition, results of operations or cash flows. Future Adoption of Accounting Pronouncements Reference Rate Reform. In March 2020, the FASB issued ASU No. 2020-04, Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“ASU 2020-04”). This guidance provides optional expedients for applying U.S. GAAP to contracts that may be affected by the cessation of the London Inter-bank Offered Rate (“LIBOR.”) ASU 2020-04 is effective from March 2020 through December 2022. A substantial portion of our debt is subject to interest payments that are indexed to LIBOR; additionally, we are party to multiple interest rate derivatives based on LIBOR. We are currently evaluating the effect of this guidance.

- Definition

Disclosure of accounting policy for income taxes, which may include its accounting policies for recognizing and measuring deferred tax assets and liabilities and related valuation allowances, recognizing investment tax credits, operating loss carryforwards, tax credit carryforwards, and other carryforwards, methodologies for determining its effective income tax rate and the characterization of interest and penalties in the financial statements.

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+ Details

Details of Certain Balance Sheet Accounts (Tables)

3 Months Ended

Mar. 28, 2020

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of Accounts Receivable, Net



In thousands	As of March 28, 2020			As of December 28, 2019
Accounts receivable, net:
Trade receivables	$	22,763		$	28,635
Credit card receivables	2,441			14,173
Other receivables	3,344			4,707
Allowance for credit losses	(952		)	(3,040		)
	$	27,596		$	44,475

Schedule of Inventories



In thousands	As of March 28, 2020		As of December 28, 2019
Inventories:
Raw materials and work in process ⁽¹⁾	$	69,706	$	65,179
Finished goods	60,666		62,377
	$	130,372	$	127,556
(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



In thousands	As of March 28, 2020		As of December 28, 2019
Property and equipment, net:
Land and building	$	3,624	$	3,632
Equipment	188,239		188,593
Information technology hardware and software	116,569		115,283
Furniture and fixtures	54,446		55,146
Leasehold improvements	212,431		213,124
Construction in progress	22,548		26,517
Right of use assets under finance leases	36,073		36,437
	633,930		638,732
Less: Accumulated depreciation	284,163		271,965
	$	349,767	$	366,767

Schedule of Other Payables and Accrued Expenses



In thousands	As of March 28, 2020		As of December 28, 2019
Other payables and accrued expenses:
Employee compensation and benefits	$	30,680	$	28,347
Advertising	2,746		2,919
Self-insurance liabilities	8,313		8,403
Reserves for customer returns and remakes	7,004		7,158
Capital expenditures	10,062		6,782
Legacy management & services agreement	3,932		4,461
Fair value of derivative liabilities	8,230		6,382
Supplies and other store support expenses	3,479		2,926
Litigation settlements	8,228		3,840
Other	16,298		11,611
	$	98,972	$	82,829

Schedule of Other Non-current Liabilities



In thousands	As of March 28, 2020		As of December 28, 2019
Other non-current liabilities:
Fair value of derivative liabilities	$	8,613	$	1,603
Self-insurance liabilities	7,351		7,283
Other	4,562		4,845
	$	20,526	$	13,731

Fair Value Measurements of Financial Assets and Liabilities (Tables)

3 Months Ended

Mar. 28, 2020

Fair Value Disclosures [Abstract]

Schedule of Fair Value of Cash Flow Hedge Derivative Contracts

Our cash flow hedge position related to interest rate derivative contracts is as follows:



In thousands	Notional Amount		Other Payables and Accrued Expenses		Other Liabilities		AOCL, Net of Tax⁽¹⁾
As of March 28, 2020	$	395,000	$	8,230	$	8,613	$	10,416
As of December 28, 2019	$	430,000	$	6,382	$	1,603	$	3,814

(1)

Includes stranded tax benefit of $2.1 million within AOCL from adopting provisions of the Tax Cuts and Jobs Act of 2017 during the year ended December 30, 2017.

Long-term Debt (Tables)

3 Months Ended

Mar. 28, 2020

Debt Disclosure [Abstract]

Schedule of Long-term Debt Instruments

Long-term debt consists of the following:



In thousands	As of March 28, 2020			As of December 28, 2019
Term loan, due July 18, 2024	392,375			392,375
Revolving credit facility, due July 18, 2024	294,269			148,000
Term loan and revolving credit facility before unamortized discount	686,644			540,375
Unamortized discount	(3,762		)	(3,979		)
Total term loan and revolving credit facility	682,882			536,396
Less current maturities	—			(10,500		)
Term loan and revolving credit facility - non-current portion	682,882			525,896
Finance lease obligations	33,895			33,296
Less current maturities	(3,531		)	(3,259		)
Long-term debt, less current portion and unamortized debt discount	$	713,246		$	555,933

Schedule of Maturities of Long-term Debt

Scheduled annual maturities of debt are as follows:



Fiscal Period	In thousands
2020 - remaining fiscal year	$	—
2021	—
2022	9,125
2023	21,000
2024	656,519
	$	686,644

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

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+ Details

Revenue From Contracts with Customers (Tables)

3 Months Ended

Mar. 28, 2020

Revenue from Contract with Customer [Abstract]

Schedule of Disaggregation of Revenues

The following disaggregation of revenues is based on the timing of revenue recognition:



	Three Months Ended
In thousands	March 28, 2020		March 30, 2019
Revenues recognized at a point in time	$	434,179	$	424,214
Revenues recognized over time	35,525		37,001
Total net revenue	$	469,704	$	461,215

Schedule of Allowance for Expected Credit Loss

The following table summarizes the activity of allowance for expected credit losses for the three months ended March 28, 2020.



In thousands	Three Months Ended March 28, 2020
Beginning balance as of December 28, 2019	(3,040	)
Current-period provision for expected credit losses	(448	)
Write-offs charged against the allowance	329
Other adjustments ⁽¹⁾	2,207
Ending balance as of March 28, 2020	(952	)
⁽¹⁾ As part of our adoption of ASU 2016-13 we adjusted the allowance for certain amounts recognized in prior periods that no longer represented an allowance for credit losses. The adjustment was immaterial to the financial results of current and prior periods. See Note 2. “Details of Certain Balance Sheet Accounts” for further details.

Leases (Tables)

3 Months Ended

Mar. 28, 2020

Leases [Abstract]

Schedule of Lease Type and Classification On Balance Sheet



In thousands		As of March 28, 2020		As of December 28, 2019
Type	Classification
	ASSETS
Finance	Property and equipment, net ^(a)	$	26,716	$	28,128
Operating	Right of use assets^(b)	343,731		348,090
	Total leased assets	370,447		376,218
	LIABILITIES
	Current Liabilities:
Finance	Current maturities of long-term debt and finance lease obligations	$	3,531	$	3,259
Operating	Current operating lease obligations ^(c)	60,014		51,937
	Other non-current liabilities:
Finance	Long-term debt and finance lease obligations, less current portion and debt discount	30,364		30,037
Operating	Non-current operating lease obligations	331,234		331,769
	Total lease liabilities	$	425,143	$	417,002
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 $9.4 million and $8.3 million as of March 28, 2020 and December 28, 2019, respectively.

(c) Current operating lease liabilities are measured net of TIA receivables of $4.6 million and $5.9 million as of March 28, 2020 and December 28, 2019, respectively

Schedule of Lease Cost



In thousands	As of March 28, 2020			As of March 30, 2019
Operating lease cost
Fixed lease cost ^(a)	$	19,312		$	18,163
Variable lease cost ^(b)	6,810			6,466
Sublease income^(c)	(591		)	(962		)

Finance lease cost
Amortization of finance lease assets	1,156			978

Interest expense, net:
Interest on finance lease liabilities	872			890

Net lease cost	$	27,559		$	25,535
(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 ophthalmologists and optometrists who are independent contractors.

Schedule of Lease Terms and Discount Rate



Lease Term and Discount Rate	As of March 28, 2020		As of December 28, 2019
Weighted average remaining lease term (months)
Operating leases	81		82
Finance leases	87		88
Weighted average discount rate ^(a)
Operating leases	4.6	%	4.6	%
Finance leases ^(b)	12.7	%	13.1	%
(a) The discount rate used to determine the lease assets and lease liabilities was derived upon considering (i) incremental borrowing rates on our long-term debt; (ii) fixed rates we pay on our interest rate swaps; (iii) LIBOR margins for issuers of similar credit rating; and (iv) effect of collateralization. As a majority of our leases are five-year and 10-year leases, we determined a lease discount rate for such tenors and determined this discount rate is reasonable for leases that were entered into during the period.
(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	As of March 28, 2020		As of March 30, 2019
Other Information	As of March 28, 2020		As of March 30, 2019
Cash paid for amounts included in the measurement of lease liabilities
Operating cash outflows - operating leases	$	15,269	$	18,146

Schedule of Maturity for Operating Lease Liabilities

The following table summarizes the maturity of our lease liabilities as of March 28, 2020:



In thousands	Operating Leases ^(a)		Finance Leases^(b)
Fiscal Year	Operating Leases ^(a)		Finance Leases^(b)
2020	$	56,224	$	5,319
2021	77,307		7,280
2022	69,631		7,215
2023	62,360		6,241
2024	55,206		4,673
Thereafter	138,152		16,460
Total lease liabilities	458,880		47,188
Less: Interest	67,632		13,293
Present value of lease liabilities^(c)	$	391,248	$	33,895
(a) Operating lease payments include $69.8 million related to options to extend lease terms that are reasonably certain of being exercised.
(b) Finance lease payments include $1.7 million related to options to extend lease terms that are reasonably certain of being exercised.
(c) The present value of lease liabilities excludes $21.0 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 March 28, 2020:



In thousands	Operating Leases ^(a)		Finance Leases^(b)
Fiscal Year	Operating Leases ^(a)		Finance Leases^(b)
2020	$	56,224	$	5,319
2021	77,307		7,280
2022	69,631		7,215
2023	62,360		6,241
2024	55,206		4,673
Thereafter	138,152		16,460
Total lease liabilities	458,880		47,188
Less: Interest	67,632		13,293
Present value of lease liabilities^(c)	$	391,248	$	33,895
(a) Operating lease payments include $69.8 million related to options to extend lease terms that are reasonably certain of being exercised.
(b) Finance lease payments include $1.7 million related to options to extend lease terms that are reasonably certain of being exercised.
(c) The present value of lease liabilities excludes $21.0 million of legally binding minimum lease payments for leases signed but not yet commenced.

Segment Reporting (Tables)

3 Months Ended

Mar. 28, 2020

Segment Reporting [Abstract]

Schedule of Financial Data by Segment



	Three Months Ended March 28, 2020
In thousands	Owned & Host		Legacy		Corporate/Other			Reconciliations			Total
Segment product revenues	$	281,914	$	24,418	$	66,571		$	19,938		$	392,841
Segment services and plans revenues	65,313		12,039		—			(489		)	76,863
Total net revenue	347,227		36,457		66,571			19,449			469,704
Costs of products	81,917		11,404		57,907			5,142			156,370
Costs of services and plans	55,594		6,590		—			—			62,184
Total costs applicable to revenue	137,511		17,994		57,907			5,142			218,554
SG&A	134,714		13,631		45,396			—			193,741
Asset impairment	—		—		11,355			—			11,355
Litigation settlement	—		—		4,395			—			4,395
Other expense (income), net	—		—		(66		)	—			(66		)
EBITDA	$	75,002	$	4,832	$	(52,416	)	$	14,307
Depreciation and amortization											24,810
Interest expense, net											7,455
Income before income taxes											$	9,460



	Three Months Ended March 30, 2019
In thousands	Owned & Host		Legacy		Corporate/Other			Reconciliations			Total
Segment product revenues	$	296,919	$	30,141	$	63,875		$	(7,775	)	$	383,160
Segment services and plans revenues	68,301		14,437		6			(4,689		)	78,055
Total net revenue	365,220		44,578		63,881			(12,464		)	461,215
Costs of products	85,246		14,130		56,595			(1,967		)	154,004
Costs of services and plans	51,664		6,301		—			—			57,965
Total costs applicable to revenue	136,910		20,431		56,595			(1,967		)	211,969
SG&A	133,213		14,237		46,426			—			193,876
Asset impairment	—		—		2,082			—			2,082
Other expense, net	—		—		473			—			473
EBITDA	$	95,097	$	9,910	$	(41,695	)	$	(10,497	)
Depreciation and amortization											20,415
Interest expense, net											9,061
Income before income taxes											$	23,339

Earnings Per Share (Tables)

3 Months Ended

Mar. 28, 2020

Earnings Per Share [Abstract]

Schedule of Reconciliation of Basic and Diluted EPS Calculations

A reconciliation of the numerators and denominators of the basic and diluted EPS calculations is as follows:



	Three Months Ended
In thousands, except EPS	March 28, 2020		March 30, 2019
Net income	$	9,742	$	17,429
Weighted average shares outstanding for basic EPS	80,129		78,205
Effect of dilutive securities:
Stock options	2,020		3,221
Restricted stock	93		40
Weighted average shares outstanding for diluted EPS	82,242		81,466
Basic EPS	$	0.12	$	0.22
Diluted EPS	$	0.12	$	0.21
Anti-dilutive options, RSUs outstanding excluded from EPS	394		356

Restricted Cash (Tables)

3 Months Ended

Mar. 28, 2020

Cash and Cash Equivalents [Abstract]

Schedule of Cash, Cash Equivalents, and Restricted Cash



	Three Months Ended
In thousands	March 28, 2020		March 30, 2019
Cash and cash equivalents	$	263,154	$	72,506
Restricted cash included in other assets	960		1,346
Total cash, cash equivalents and restricted cash	$	264,114	$	73,852

Accumulated Other Comprehensive Loss (Tables)

3 Months Ended

Mar. 28, 2020

Equity [Abstract]

Schedule of Accumulated Other Comprehensive Loss

The following table presents the changes in AOCL during the three months ended March 28, 2020 and March 30, 2019, respectively:



	Three Months Ended
In thousands	March 28, 2020			March 30, 2019
Cash flow hedging activity:
Balance at beginning of period	$	(3,814	)	$	(2,810	)
Other comprehensive income (loss) before reclassification	(10,681		)	(2,188		)
Tax effect of other comprehensive income (loss) before reclassification	2,721			561
Amount reclassified from AOCL into interest expense	1,823			915
Tax effect of amount reclassified from AOCL into interest expense	(465		)	(235		)
Net current period other comprehensive income (loss), net of tax	(6,602		)	(947		)
Balance at end of period	$	(10,416	)	$	(3,757	)

Description of Business and Basis of Presentation - Nature of Operations (Details)	Mar. 28, 2020 store store_brand	Dec. 28, 2019 store
Accounting Policies [Abstract]
Number of retail optical locations \| store	1,173	1,151
Number of store brands \| store_brand	5

Description of Business and Basis of Presentation - Asset Impairment (Details) $ in Millions	3 Months Ended
	Mar. 28, 2020 USD ($)
Accounting Policies [Abstract]
Discount rate used in impairment analysis (percent)	8.00%
Impairment charge on long-lived assets held and used	$ 11.4
Estimated fair value of impaired assets held and used	$ 16.6

Description of Business and Basis of Presentation - Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 28, 2020	Mar. 30, 2019
Accounting Policies [Abstract]
Effective income tax rate (percent)	25.50%	25.70%
Tax benefit associated primarily with exercise of stock options	$ 2.7	$ 0.2
Reclassification of AMT credits from deferred income taxes to other assets, CARES Act	1.3
Increase in gross deferred tax liability related to property and equipment, CARES Act	$ 25.0

Description of Business and Basis of Presentation - Adoption of New Accounting Pronouncements (Details) - USD ($) $ in Thousands	Mar. 28, 2020	Dec. 29, 2019	Dec. 28, 2019	Mar. 30, 2019	Dec. 29, 2018
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Equity	$ (786,160)		$ (776,437)	$ (762,580)	$ (743,154)
Retained Earnings
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Equity	$ (116,345)		(107,132)	$ (91,763)	(74,840)
Cumulative effect of change in accounting principle
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Equity			529		506
Cumulative effect of change in accounting principle \| ASU No. 2016-13
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Allowance for credit losses		$ 700
Cumulative effect of change in accounting principle \| Retained Earnings
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Equity			$ 529		$ 506
Cumulative effect of change in accounting principle \| Retained Earnings \| ASU No. 2016-13
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Equity		$ 500

Details of Certain Balance Sheet Accounts - Accounts Receivable, Net (Details) - USD ($) $ in Thousands	Mar. 28, 2020	Dec. 28, 2019
Accounts receivable, net:
Allowance for credit losses	$ (952)	$ (3,040)
Accounts receivable, net of allowance	27,596	44,475
Trade receivables
Accounts receivable, net:
Accounts receivable, gross	22,763	28,635
Credit card receivables
Accounts receivable, net:
Accounts receivable, gross	2,441	14,173
Other receivables
Accounts receivable, net:
Accounts receivable, gross	$ 3,344	$ 4,707

Details of Certain Balance Sheet Accounts - Inventories (Details) - USD ($) $ in Thousands	Mar. 28, 2020	Dec. 28, 2019
Inventories:
Raw materials and work in process	$ 69,706	$ 65,179
Finished goods	60,666	62,377
Inventories	$ 130,372	$ 127,556

Details of Certain Balance Sheet Accounts - Property and Equipment, Net (Details) - USD ($) $ in Thousands	Mar. 28, 2020	Dec. 28, 2019
Property and equipment, net:
Property and equipment, gross	$ 633,930	$ 638,732
Less: Accumulated depreciation	284,163	271,965
Property and equipment, net	349,767	366,767
Land and building
Property and equipment, net:
Property and equipment, gross	3,624	3,632
Equipment
Property and equipment, net:
Property and equipment, gross	188,239	188,593
Information technology hardware and software
Property and equipment, net:
Property and equipment, gross	116,569	115,283
Furniture and fixtures
Property and equipment, net:
Property and equipment, gross	54,446	55,146
Leasehold improvements
Property and equipment, net:
Property and equipment, gross	212,431	213,124
Construction in progress
Property and equipment, net:
Property and equipment, gross	22,548	26,517
Right of use assets under finance leases
Property and equipment, net:
Right of use assets under finance leases	$ 36,073	$ 36,437

Details of Certain Balance Sheet Accounts - Other Payables and Accrued Expenses (Details) - USD ($) $ in Thousands	Mar. 28, 2020	Dec. 28, 2019
Other payables and accrued expenses:
Employee compensation and benefits	$ 30,680	$ 28,347
Advertising	2,746	2,919
Self-insurance liabilities	8,313	8,403
Reserves for customer returns and remakes	7,004	7,158
Capital expenditures	10,062	6,782
Legacy management & services agreement	3,932	4,461
Fair value of derivative liabilities	8,230	6,382
Supplies and other store support expenses	3,479	2,926
Litigation settlements	8,228	3,840
Other	16,298	11,611
Total other payables and accrued expenses	$ 98,972	$ 82,829

Details of Certain Balance Sheet Accounts - Other Non-Current Liabilities (Details) - USD ($) $ in Thousands	Mar. 28, 2020	Dec. 28, 2019
Other non-current liabilities:
Fair value of derivative liabilities	$ 8,613	$ 1,603
Self-insurance liabilities	7,351	7,283
Other	4,562	4,845
Total other non-current liabilities	$ 20,526	$ 13,731

Fair Value Measurements of Financial Assets and Liabilities - Narrative (Details) - Finance Lease Obligations - Level 2 - USD ($) $ in Millions	Mar. 28, 2020	Dec. 28, 2019
Estimated Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt instruments	$ 38.5	$ 38.2
Carrying Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt instruments	$ 33.9	$ 33.3

Fair Value Measurements of Financial Assets and Liabilities - Interest Rate Derivatives (Details) - USD ($)	Mar. 28, 2020	Dec. 28, 2019
Derivative [Line Items]
Estimated reclassification from AOCL to earnings in next 12 months	$ 6,100,000
Interest rate swap \| Cash Flow Hedges
Derivative [Line Items]
Derivative interest rate floor	1.00%
Interest rate swap \| Designated as Hedging Instrument \| Cash Flow Hedges
Derivative [Line Items]
Notional amount	$ 395,000,000	$ 430,000,000
Interest rate swap one \| Designated as Hedging Instrument \| Cash Flow Hedges
Derivative [Line Items]
Notional amount	70,000,000.0	$ 105,000,000.0
Interest rate collar \| Designated as Hedging Instrument \| Cash Flow Hedges
Derivative [Line Items]
Notional amount	$ 375,000,000

Fair Value Measurements of Financial Assets and Liabilities - Cash Flow Hedge Position of Interest Rate Derivative Contracts (Details) - USD ($)	Mar. 28, 2020	Dec. 28, 2019
Derivatives, Fair Value [Line Items]
Other Payables and Accrued Expenses	$ 8,230,000	$ 6,382,000
Other Liabilities	8,613,000	1,603,000
Stranded tax benefit in AOCL	2,100,000
Interest rate swap \| Designated as Hedging Instrument \| Cash Flow Hedges
Derivatives, Fair Value [Line Items]
Notional Amount	395,000,000	430,000,000
AOCL, Net of Tax	$ 10,416,000	$ 3,814,000

Long-term Debt - Summary of Long-term Debt (Details) - USD ($) $ in Thousands	Mar. 28, 2020	Dec. 28, 2019
Debt Instrument [Line Items]
Long-term debt, gross	$ 686,644
Finance lease obligations	33,895	$ 33,296
Less current maturities	(3,531)	(3,259)
Long-term debt and finance lease obligations, less current portion and debt discount	713,246	555,933
Term Loan
Debt Instrument [Line Items]
Long-term debt, gross	686,644	540,375
Unamortized discount	(3,762)	(3,979)
Total term loan and revolving credit facility	682,882	536,396
Less current maturities	0	(10,500)
Term loan and revolving credit facility - non-current portion	682,882	525,896
Revolving credit facility, due July 18, 2024 \| Term Loan
Debt Instrument [Line Items]
Long-term debt, gross	294,269	148,000
Term loan, due July 18, 2024 \| Term Loan
Debt Instrument [Line Items]
Long-term debt, gross	$ 392,375	$ 392,375

Long-term Debt - Maturities of Debt (Details) $ in Thousands	Mar. 28, 2020 USD ($)
Debt Disclosure [Abstract]
2020 - remaining fiscal year	$ 0
2021	0
2022	9,125
2023	21,000
2024	656,519
Long-term debt, gross	$ 686,644

Long-term Debt - Narrative (Details) - USD ($) $ in Millions	1 Months Ended	12 Months Ended
	Mar. 28, 2020	Dec. 28, 2019
Revolving credit facility
Debt Instrument [Line Items]
Borrowings under revolving credit facility	$ 146.3
Term Loan \| Term loan, due July 18, 2024
Debt Instrument [Line Items]
Principal prepayment		$ 25.0

Stock Incentive Plans - Narrative (Details)	3 Months Ended
Stock Incentive Plans - Narrative (Details)	Mar. 28, 2020 installment shares
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of equal vesting installments \| installment	3
RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of equal vesting installments \| installment	3
2017 Omnibus Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options granted (shares)	158,206
2017 Omnibus Incentive Plan \| PSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Awards granted (shares)	124,863
2017 Omnibus Incentive Plan \| RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Awards granted (shares)	155,550

Equity in Net Assets of Non-Consolidated Investee (Details) - Equity Method Investee - USD ($) $ in Millions	Mar. 28, 2020	Aug. 29, 2017
Related Party Transaction [Line Items]
Loan receivable		$ 1.5
Promissory note
Related Party Transaction [Line Items]
Allowance for credit losses	$ 1.5

Revenue From Contracts with Customers - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 28, 2020	Mar. 30, 2019
Disaggregation of Revenue [Line Items]
Time frame for majority of payments on health care plans and programs accounts (in days)	90 days
Credit loss expense	$ 448	$ 2,021
Deferred revenue	77,900
Previously deferred revenue recognized	$ 28,000	$ 27,700
Minimum
Disaggregation of Revenue [Line Items]
General payment terms for accounts on health care plans and programs (in days)	14 days
Unearned revenue, estimated delivery time for period end calculation (in days)	7 days
Maximum
Disaggregation of Revenue [Line Items]
General payment terms for accounts on health care plans and programs (in days)	120 days
Unearned revenue, estimated delivery time for period end calculation (in days)	10 days

Revenue From Contracts with Customers - Disaggregation of Revenues (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 28, 2020	Mar. 30, 2019
Disaggregation of Revenue [Line Items]
Net revenue	$ 469,704	$ 461,215
Revenues recognized at a point in time
Disaggregation of Revenue [Line Items]
Net revenue	434,179	424,214
Revenues recognized over time
Disaggregation of Revenue [Line Items]
Net revenue	$ 35,525	$ 37,001

Revenue From Contracts with Customers - Summary of Activity of Allowance for Expected Credit Losses (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 28, 2020	Mar. 30, 2019
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	$ (3,040)
Current-period provision for expected credit losses	(448)	$ (2,021)
Write-offs charged against the allowance	329
Other adjustments	2,207
Ending balance	$ (952)

Revenue From Contracts with Customers - Unsatisfied Performance Obligations (Details) $ in Millions	Mar. 28, 2020 USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-03-29
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Performance obligations expected to be satisfied	$ 48.5
Performance obligations expected to be satisfied, expected timing	9 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-03
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Performance obligations expected to be satisfied	$ 21.1
Performance obligations expected to be satisfied, expected timing	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-02
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Performance obligations expected to be satisfied	$ 7.7
Performance obligations expected to be satisfied, expected timing	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Performance obligations expected to be satisfied	$ 0.5
Performance obligations expected to be satisfied, expected timing	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-12-31
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Performance obligations expected to be satisfied	$ 0.1
Performance obligations expected to be satisfied, expected timing

Leases - Narrative (Details) - Stores, laboratories, distribution centers, offices	3 Months Ended
	Mar. 28, 2020
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

Leases - Lease Type and Classification (Details) - USD ($) $ in Thousands	Mar. 28, 2020	Dec. 28, 2019
ASSETS
Finance lease, right-of-use assets	$ 26,716	$ 28,128
Operating lease, right-of-use assets	343,731	348,090
Total leased assets	370,447	376,218
Accumulated amortization	9,400	8,300
TIA treated as reduction of lease payments used to measure operating lease ROU assets	35,500	35,200
Deferred rent treated as reduction of lease payments used to measure operating lease ROU assets	15,700	15,000
TIA receivable netted to operating lease liabilities	4,600	5,900
LIABILITIES
Finance lease liability, current	3,531	3,259
Operating lease liability, current	60,014	51,937
Finance lease liabilities, non-current	30,364	30,037
Operating lease liabilities, non-current	331,234	331,769
Total lease liabilities	$ 425,143	$ 417,002

Leases - Lease Costs (Details) - USD ($) $ in Thousands	3 Months Ended
Leases - Lease Costs (Details) - USD ($) $ in Thousands	Mar. 28, 2020	Mar. 30, 2019
Lease Cost
Operating lease cost	$ 19,312	$ 18,163
Variable lease cost	6,810	6,466
Sublease income	(591)	(962)
Amortization of finance lease assets	1,156	978
Interest on finance lease liabilities	872	890
Net lease cost	$ 27,559	$ 25,535

Leases - Lease Term and Discount Rate (Details)	Mar. 28, 2020	Dec. 28, 2019
Leases [Abstract]
Operating leases, weighted average remaining lease term (months)	81 months	82 months
Finance leases, weighted average remaining lease term (months)	87 months	88 months
Operating leases, weighted average discount rate (percent)	4.60%	4.60%
Finance leases, weighted average discount rate (percent)	12.70%	13.10%

Leases - Other Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 28, 2020	Mar. 30, 2019
Cash paid for amounts included in the measurement of lease liabilities
Operating cash outflows - operating leases	$ 15,269	$ 18,146

Leases - Maturity of Lease Liabilities (Details) - USD ($) $ in Thousands	Mar. 28, 2020	Dec. 28, 2019
Operating Leases
2020	$ 56,224
2021	77,307
2022	69,631
2023	62,360
2024	55,206
Thereafter	138,152
Total lease liabilities	458,880
Less: Interest	67,632
Present value of lease liabilities	391,248
Finance Leases
2020	5,319
2021	7,280
2022	7,215
2023	6,241
2024	4,673
Thereafter	16,460
Total lease liabilities	47,188
Less: Interest	13,293
Finance lease obligations	33,895	$ 33,296
Operating lease payments related to reasonably certain option extensions included in total lease payments	69,800
Finance lease payments related to reasonably certain option extensions included in total lease payments	1,700
Minimum lease payments for leases signed but not yet commenced excluded from lease liability	$ 21,000

Commitments and Contingencies - Narrative (Details)		1 Months Ended			3 Months Ended
Commitments and Contingencies - Narrative (Details)	Nov. 08, 2017 USD ($)	Nov. 30, 2019 USD ($) plaintiff	Feb. 28, 2019 USD ($)	May 31, 2017 USD ($)	Mar. 28, 2020 USD ($)	Mar. 30, 2019 USD ($)	Jul. 01, 2017 USD ($)
Loss Contingencies [Line Items]
Charge for litigation settlement					$ 4,395,000	$ 0
1-800 Contacts Matter
Loss Contingencies [Line Items]
Amount of litigation settlement				$ 7,000,000.0
Charge for litigation settlement							$ 7,000,000
Percent of settlement award deposited in escrow account (percent)	50.00%
Amount of settlement deposited in escrow account	$ 3,500,000
Wage and hours
Loss Contingencies [Line Items]
Gross settlement fund to be paid			$ 3,500,000
Fair Labor Standards Act \| Maximum
Loss Contingencies [Line Items]
Amount of litigation settlement		$ 895,000
Number of former employees \| plaintiff		6

Segment Reporting - Narrative (Details) $ in Thousands	3 Months Ended
Segment Reporting - Narrative (Details) $ in Thousands	Mar. 28, 2020 USD ($) segment	Mar. 30, 2019 USD ($)
Segment Reporting Information [Line Items]
Number of reportable segments \| segment	2
Net revenue	$ 469,704	$ 461,215
Customer Concentration Risk \| Sales revenue \| Legacy partner arrangement
Segment Reporting Information [Line Items]
Concentration risk (percent)	7.80%
Customer Concentration Risk \| Sales revenue \| AC Lens Walmart and Sam's Club contact lenses distribution arrangements
Segment Reporting Information [Line Items]
Concentration risk (percent)	8.60%
Legacy \| Management of operations
Segment Reporting Information [Line Items]
Net revenue	$ 7,500	$ 9,300

Segment Reporting - Financial Data by Segment (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 28, 2020	Mar. 30, 2019
Segment Reporting Information [Line Items]
Total net revenue	$ 469,704	$ 461,215
Total costs applicable to revenue	218,554	211,969
SG&A	193,741	193,876
Asset impairment	11,355	2,082
Litigation settlement	4,395	0
Other expense (income), net	(66)	473
Other expense, net		473
Depreciation and amortization	24,810	20,415
Interest expense, net	7,455	9,061
Earnings before income taxes	9,460	23,339
Products
Segment Reporting Information [Line Items]
Total net revenue	392,841	383,160
Total costs applicable to revenue	156,370	154,004
Services and plans
Segment Reporting Information [Line Items]
Total net revenue	76,863	78,055
Total costs applicable to revenue	62,184	57,965
Operating Segments \| Owned & Host
Segment Reporting Information [Line Items]
Total net revenue	347,227	365,220
Total costs applicable to revenue	137,511	136,910
SG&A	134,714	133,213
Asset impairment	0	0
Litigation settlement	0
Other expense (income), net	0
Other expense, net		0
EBITDA	75,002	95,097
Operating Segments \| Owned & Host \| Products
Segment Reporting Information [Line Items]
Total net revenue	281,914	296,919
Total costs applicable to revenue	81,917	85,246
Operating Segments \| Owned & Host \| Services and plans
Segment Reporting Information [Line Items]
Total net revenue	65,313	68,301
Total costs applicable to revenue	55,594	51,664
Operating Segments \| Legacy
Segment Reporting Information [Line Items]
Total net revenue	36,457	44,578
Total costs applicable to revenue	17,994	20,431
SG&A	13,631	14,237
Asset impairment	0	0
Litigation settlement	0
Other expense (income), net	0
Other expense, net		0
EBITDA	4,832	9,910
Operating Segments \| Legacy \| Products
Segment Reporting Information [Line Items]
Total net revenue	24,418	30,141
Total costs applicable to revenue	11,404	14,130
Operating Segments \| Legacy \| Services and plans
Segment Reporting Information [Line Items]
Total net revenue	12,039	14,437
Total costs applicable to revenue	6,590	6,301
Operating Segments \| Corporate/Other
Segment Reporting Information [Line Items]
Total net revenue	66,571	63,881
Total costs applicable to revenue	57,907	56,595
SG&A	45,396	46,426
Asset impairment	11,355	2,082
Litigation settlement	4,395
Other expense (income), net	(66)
Other expense, net		473
EBITDA	(52,416)	(41,695)
Operating Segments \| Corporate/Other \| Products
Segment Reporting Information [Line Items]
Total net revenue	66,571	63,875
Total costs applicable to revenue	57,907	56,595
Operating Segments \| Corporate/Other \| Services and plans
Segment Reporting Information [Line Items]
Total net revenue	0	6
Total costs applicable to revenue	0	0
Reconciliations
Segment Reporting Information [Line Items]
Total net revenue	19,449	(12,464)
Total costs applicable to revenue	5,142	(1,967)
SG&A	0	0
Asset impairment	0	0
Litigation settlement	0
Other expense (income), net	0
Other expense, net		0
EBITDA	14,307	(10,497)
Reconciliations \| Products
Segment Reporting Information [Line Items]
Total net revenue	19,938	(7,775)
Total costs applicable to revenue	5,142	(1,967)
Reconciliations \| Services and plans
Segment Reporting Information [Line Items]
Total net revenue	(489)	(4,689)
Total costs applicable to revenue	$ 0	$ 0

Earnings Per Share - Reconciliation of Basic and Diluted EPS Calculations (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 28, 2020	Mar. 30, 2019
Earnings Per Share [Abstract]
Net income	$ 9,742	$ 17,429
Weighted average shares outstanding for basic EPS (shares)	80,129	78,205
Effect of dilutive securities:
Stock options (shares)	2,020	3,221
Restricted stock (shares)	93	40
Weighted average shares outstanding for diluted EPS	82,242	81,466
Basic EPS (in usd per share)	$ 0.12	$ 0.22
Diluted EPS (in usd per share)	$ 0.12	$ 0.21
Options and RSUs
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive options, RSUs outstanding excluded from EPS (shares)	394	356

Restricted Cash (Details) - USD ($) $ in Thousands	Mar. 28, 2020	Dec. 28, 2019	Mar. 30, 2019	Dec. 29, 2018
Reconciliation of cash, cash equivalents, and restricted cash
Cash and cash equivalents	$ 263,154	$ 39,342	$ 72,506
Restricted cash included in other assets	960		1,346
Total cash, cash equivalents and restricted cash	$ 264,114	$ 40,307	$ 73,852	$ 17,998

Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 28, 2020	Mar. 30, 2019
Accumulated Other Comprehensive Loss, Net of Tax [Roll Forward]
Beginning balance	$ 776,437	$ 743,154
Ending balance	786,160	762,580
Cash Flow Hedges
Accumulated Other Comprehensive Loss, Net of Tax [Roll Forward]
Beginning balance	(3,814)	(2,810)
Other comprehensive income (loss) before reclassification	(10,681)	(2,188)
Tax effect of other comprehensive income (loss) before reclassification	2,721	561
Amount reclassified from AOCL into interest expense	1,823	915
Tax effect of amount reclassified from AOCL into interest expense	(465)	(235)
Net current period other comprehensive income (loss), net of tax	(6,602)	(947)
Ending balance	$ (10,416)	$ (3,757)

Subsequent Events Narrative (Details)		3 Months Ended	6 Months Ended	39 Months Ended
Subsequent Events Narrative (Details)	May 05, 2020 USD ($)	Jan. 01, 2022	Oct. 02, 2021	Jul. 18, 2024
Forecast \| Amended credit facility
Subsequent Event [Line Items]
Consolidated Total Debt to Consolidated EBITDA Ratio		4.00	4.50
Consolidated Interest Coverage Ratio minimum				3.00
Subsequent Event \| Amended credit facility
Subsequent Event [Line Items]
Consolidated EBITDA for any six fiscal quarter period	$ 0
Minimum liquidity level per amendment, component one	100,000,000
Minimum liquidity level per amendment, component two base	40,000,000
Minimum liquidity level per amendment, component two variable	75,000,000
Subsequent Event \| Term Loan \| Term loan, due July 18, 2024
Subsequent Event [Line Items]
Required prepayment based on capital raised	75,000,000
Capital threshold for basis of required prepayment	$ 400,000,000
Required prepayment as percentage of proceeds in excess of capital threshold	50.00%
Basis spread adjustment (percent)	0.50%
Variable rate adjustment factor, minimum threshold for capital market transactions within 30 days of amendment	$ 135,000,000
Variable rate adjustment factor, minimum threshold for EBITDA	$ 0
Subsequent Event \| Term Loan \| Term loan, due July 18, 2024 \| LIBOR \| Minimum
Subsequent Event [Line Items]
Basis spread on variable rate (percent)	1.75%
Subsequent Event \| Term Loan \| Term loan, due July 18, 2024 \| LIBOR \| Maximum
Subsequent Event [Line Items]
Basis spread on variable rate (percent)	2.75%
Subsequent Event \| Term Loan \| Term loan, due July 18, 2024 \| ABR \| Maximum
Subsequent Event [Line Items]
Basis spread on variable rate (percent)	1.75%
Subsequent Event \| Revolving credit facility
Subsequent Event [Line Items]
Restriction on borrowings covenant, maximum unrestricted cash and cash equivalents	$ 50,000,000