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Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 27, 2020	Dec. 28, 2019
Current assets:
Cash and cash equivalents	$ 256,292	$ 39,342
Accounts receivable, net	58,451	44,475
Inventories	117,859	127,556
Prepaid expenses and other current assets	20,520	23,266
Total current assets	453,122	234,639
Property and equipment, net	339,905	366,767
Other assets:
Goodwill	777,613	777,613
Trademarks and trade names	240,547	240,547
Other intangible assets, net	53,236	56,940
Right of use assets	341,743	348,090
Other assets	12,871	8,129
Total non-current assets	1,765,915	1,798,086
Total assets	2,219,037	2,032,725
Current liabilities:
Accounts payable	52,432	40,782
Other payables and accrued expenses	106,865	82,829
Unearned revenue	42,365	28,002
Deferred revenue	51,624	55,870
Current maturities of long-term debt and finance lease obligations	3,293	13,759
Current operating lease obligations	55,363	51,937
Total current liabilities	311,942	273,179
Long-term debt and finance lease obligations, less current portion and debt discount	644,941	555,933
Non-current operating lease obligations	328,453	331,769
Other non-current liabilities:
Deferred revenue	19,438	21,530
Other liabilities	25,928	13,731
Deferred income taxes, net	67,396	60,146
Total other non-current liabilities	112,762	95,407
Commitments and contingencies
Stockholders’ equity:
Common stock, $0.01 par value; 200,000 shares authorized; 81,342 and 80,603 shares issued as of June 27, 2020 and December 28, 2019, respectively; 80,415 and 79,678 shares outstanding as of June 27, 2020 and December 28, 2019, respectively	812	805
Additional paid-in capital	782,851	700,121
Accumulated other comprehensive loss	(7,355)	(3,814)
Retained earnings	72,512	107,132
Treasury stock, at cost; 927 and 925 shares as of June 27, 2020 and December 28, 2019, respectively	(27,881)	(27,807)
Total stockholders’ equity	820,939	776,437
Total liabilities and stockholders’ equity	$ 2,219,037	$ 2,032,725

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Jun. 27, 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)	81,342,000	80,603,000
Common stock, outstanding (shares)	80,415,000	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		6 Months Ended
	Jun. 27, 2020	Jun. 29, 2019	Jun. 27, 2020	Jun. 29, 2019
Revenue:
Total net revenue	$ 260,007	$ 429,451	$ 729,711	$ 890,666
Costs applicable to revenue (exclusive of depreciation and amortization):
Total costs applicable to revenue	140,780	202,506	359,334	414,475
Operating expenses:
Selling, general and administrative expenses	136,582	182,278	330,323	376,154
Depreciation and amortization	21,924	20,819	46,734	41,234
Asset impairment	2,411	1,790	13,766	3,872
Litigation settlement	0	0	4,395	0
Other expense (income), net	(92)	356	(158)	829
Total operating expenses	160,825	205,243	395,060	422,089
Income (loss) from operations	(41,598)	21,702	(24,683)	54,102
Interest expense, net	15,502	8,968	22,957	18,029
Debt issuance costs	136	0	136	0
Earnings (loss) before income taxes	(57,236)	12,734	(47,776)	36,073
Income tax provision (benefit)	(13,403)	2,477	(13,685)	8,387
Net income (loss)	$ (43,833)	$ 10,257	$ (34,091)	$ 27,686
Earnings (loss) per share:
Basic (in usd per share)	$ (0.55)	$ 0.13	$ (0.42)	$ 0.35
Diluted (in usd per share)	$ (0.55)	$ 0.13	$ (0.42)	$ 0.34
Weighted average shares outstanding:
Basic (shares)	80,325	78,318	80,226	78,262
Diluted (shares)	80,325	81,424	80,226	81,437
Comprehensive income (loss):
Net income (loss)	$ (43,833)	$ 10,257	$ (34,091)	$ 27,686
Unrealized gain (loss) on hedge instruments	4,111	(2,246)	(4,747)	(3,519)
Tax provision (benefit) of unrealized gain (loss) on hedge instruments	1,050	(576)	(1,206)	(902)
Comprehensive income (loss)	(40,772)	8,587	(37,632)	25,069
Products
Revenue:
Total net revenue	209,707	357,533	602,548	740,693
Costs applicable to revenue (exclusive of depreciation and amortization):
Total costs applicable to revenue	97,635	145,654	254,005	299,658
Services and plans
Revenue:
Total net revenue	50,300	71,918	127,163	149,973
Costs applicable to revenue (exclusive of depreciation and amortization):
Total costs applicable to revenue	$ 43,145	$ 56,852	$ 105,329	$ 114,817

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 (loss)	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. 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]
Net income (loss)	27,686
Ending balance (shares) at Jun. 29, 2019				78,484
Ending balance at Jun. 29, 2019	774,434			$ 786		679,216		(5,427)		102,020			(2,161)
Beginning balance (shares) at Mar. 30, 2019				78,218
Beginning balance at Mar. 30, 2019	762,580			$ 783		675,952		(3,757)		91,763			(2,161)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock (shares)				266
Issuance of common stock	1,553			$ 3		1,550
Stock based compensation	1,714					1,714
Unrealized gain (loss) on hedge instruments, net of tax	(1,670)							(1,670)
Net income (loss)	10,257									10,257
Ending balance (shares) at Jun. 29, 2019				78,484
Ending balance at Jun. 29, 2019	774,434			$ 786		679,216		(5,427)		102,020			(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 (loss)	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)
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]
Net income (loss)	(34,091)
Ending balance (shares) at Jun. 27, 2020				80,415
Ending balance at Jun. 27, 2020	820,939			$ 812		782,851		(7,355)		72,512			(27,881)
Beginning balance (shares) at Mar. 28, 2020				80,278
Beginning balance at Mar. 28, 2020	786,160			$ 811		707,301		(10,416)		116,345			(27,881)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock (shares)				137
Issuance of common stock	878			$ 1		877
Stock based compensation	3,324					3,324
Conversion option related to convertible senior notes, net of allocated costs and tax	71,349					71,349
Unrealized gain (loss) on hedge instruments, net of tax	3,061							3,061
Net income (loss)	(43,833)									(43,833)
Ending balance (shares) at Jun. 27, 2020				80,415
Ending balance at Jun. 27, 2020	$ 820,939			$ 812		$ 782,851		$ (7,355)		$ 72,512			$ (27,881)

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 27, 2020	Jun. 29, 2019
Cash flows from operating activities:
Net income (loss)	$ (34,091)	$ 27,686
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	46,734	41,234
Amortization of debt discount and deferred financing costs	2,717	892
Asset impairment	13,766	3,872
Deferred income tax expense (benefit)	(13,686)	8,239
Stock based compensation expense	5,445	4,717
Losses (gains) on change in fair value of derivatives	4,871	0
Inventory adjustments	2,883	2,043
Credit loss expense	432	3,865
Other	1,373	1,592
Changes in operating assets and liabilities:
Accounts receivable	(14,408)	(10,567)
Inventories	6,814	8,319
Other assets	3,444	11,391
Accounts payable	11,630	3,458
Deferred revenue	(6,338)	5,804
Other liabilities	39,834	6,734
Net cash provided by operating activities	71,420	119,279
Cash flows from investing activities:
Purchase of property and equipment	(25,796)	(52,103)
Other	265	315
Net cash used for investing activities	(25,531)	(51,788)
Cash flows from financing activities:
Borrowings on long-term debt, net of discounts	548,769	0
Repayments on long-term debt	(369,269)	(2,500)
Proceeds from exercise of stock options	5,998	2,066
Purchase of treasury stock	(74)	0
Payments of debt issuance costs	(12,400)	0
Payments on finance lease obligations	(1,587)	(1,190)
Net cash provided by (used for) financing activities	171,437	(1,624)
Net change in cash, cash equivalents and restricted cash	217,326	65,867
Cash, cash equivalents and restricted cash, beginning of year	40,307	17,998
Cash, cash equivalents and restricted cash, end of period	257,633	83,865
Supplemental cash flow disclosure information:
Cash paid for interest	13,810	17,438
Capital expenditures accrued at the end of the period	11,265	22,033
Right of use assets acquired under finance leases	1,257	9,763
Right of use assets acquired under operating leases	$ 35,870	$ 58,528

Description of Business and Basis of Presentation	6 Months Ended
Description of Business and Basis of Presentation	Jun. 27, 2020
Accounting Policies [Abstract]
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 1,185 and 1,151 retail optical locations as of June 27, 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 June 27, 2020, the consolidated results of operations and comprehensive income, the statements of changes in stockholders’ equity for the three and six months ended June 27, 2020 and June 29, 2019, and its statements of cash flows for the six months ended June 27, 2020 and June 29, 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 2019 Annual Report on Form 10-K. The Company’s significant accounting policies are set forth in Note 1 within those consolidated financial statements. We use the same accounting policies in preparing interim condensed consolidated financial information and annual consolidated financial statements. There were no changes to our significant accounting policies during the six months ended June 27, 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. Refer to Note 4. “Long-term Debt” for information on convertible debt issued in the second quarter of 2020. Refer to Note 3. “Fair Value Measurements of Financial Assets and Liabilities” for information on changes in our assessment of hedge effectiveness in the second quarter of 2020 and for information on our accounting for hedge ineffectiveness. 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 02, 2021. All three and six month periods presented herein contain 13 and 26 weeks, respectively. All references to years and quarters relate to fiscal periods rather than calendar periods. Seasonality The consolidated results of operations for the three and six months ended June 27, 2020 and June 29, 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. Due to the temporary closure of our stores for a portion of the first half of 2020, 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. We consider market-based indications of prevailing rental rates for retail space when estimating the fair values of ROU assets. 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 $2.4 million and $13.8 million of related asset impairment charges during the three and six months ended June 27, 2020, respectively, 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 $19.5 million as of June 27, 2020; this value includes fair value estimates related to impairments recorded in the first quarter of 2020. Substantially all of the remaining fair value of the impaired store assets in fiscal year 2020 represent the fair value of ROU assets. The asset impairment expense for the three and six months ended June 27, 2020 also includes $1.1 million related to a write-off of certain software assets that were deemed to be obsolete due to a decision to cease further development. Income Taxes Our income tax rate for the three months ended June 27, 2020 reflected our statutory federal and state rate of 25.5%, offset by a discrete benefit of $0.3 million associated primarily with stock option exercises. Our income tax benefit for the six months ended June 27, 2020 reflected income tax expense at our statutory federal and state rate of 25.5%, offset by a discrete benefit of $3.0 million associated primarily with stock option exercises. In comparison, the income tax rate associated with the three and six months ended June 29, 2019 reflected income tax expense at our statutory federal and state rate of 25.6% and was reduced by a $1.1 million and a $1.4 million income tax benefit resulting from stock option exercises, respectively. CARES Act On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act was enacted in response to the COVID-19 pandemic. The CARES Act, among other things, accelerates a company’s ability to recover Alternative Minimum Tax (“AMT”) refundable credits that otherwise could have been claimed in 2020 and 2021, to 2018 and 2019, with an option to elect recovery of the full credit amount for 2018. The Company 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 June 27, 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 June 27, 2020. In addition, the Company recorded a credit of $10.8 million as a reduction of costs applicable to revenue and SG&A as a result of the employee retention credits made available under the CARES Act for US employees during the three and six months ended June 27, 2020, recognizing $0.4 million as a reduction to costs of products, $6.2 million as a reduction to costs of services and plans, and $4.2 million as a reduction to SG&A. The Company recognizes government grants for which there is a reasonable assurance of compliance with grant conditions and receipt of credits. We believe there is a reasonable assurance that the Company will comply with the relevant conditions of the employee retention credit provision of the CARES Act, and that we will receive the credits for which we have applied. We will continue to assess our treatment of the CARES Act to the extent additional guidance and regulations are issued, the further applicability of the CARES Act to the Company, and the potential impacts on our business. 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 and exceptions for applying U.S. GAAP to contracts, hedging relationships, and other transactions that may be affected by the cessation of the London Inter-bank Offered Rate (“LIBOR.”) 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

6 Months Ended

Jun. 27, 2020

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Details of Certain Balance Sheet Accounts


In thousands	As of June 27, 2020		As of December 28, 2019
Accounts receivable, net:
Trade receivables	$	24,207	$	28,635
Credit card receivables	19,080		14,173
Other receivables ⁽¹⁾	15,817		4,707
Allowance for credit losses	(653)		(3,040)
	$	58,451	$	44,475
(1) Includes CARES Act receivable in the amount of $10.8 million as of June 27, 2020.


In thousands	As of June 27, 2020		As of December 28, 2019
Inventories:
Raw materials and work in process ⁽¹⁾	$	61,747	$	65,179
Finished goods	56,112		62,377
	$	117,859	$	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 June 27, 2020		As of December 28, 2019
Property and equipment, net:
Land and building	$	3,624	$	3,632
Equipment	193,875		188,593
Information technology hardware and software	117,777		115,283
Furniture and fixtures	54,963		55,146
Leasehold improvements	215,701		213,124
Construction in progress	19,792		26,517
Right of use assets under finance leases	37,162		36,437
	642,894		638,732
Less: Accumulated depreciation	302,989		271,965
	$	339,905	$	366,767


In thousands	As of June 27, 2020		As of December 28, 2019
Other payables and accrued expenses:
Employee compensation and benefits	$	31,157	$	28,347
Advertising	535		2,919
Self-insurance liabilities	9,266		8,403
Reserves for customer returns and remakes	7,457		7,158
Capital expenditures	11,265		6,782
Legacy management & services agreement	4,576		4,461
Fair value of derivative liabilities	7,228		6,382
Supplies and other store support expenses	6,894		2,926
Litigation settlements	8,228		3,840
Other	20,259		11,611
	$	106,865	$	82,829


In thousands	As of June 27, 2020		As of December 28, 2019
Other non-current liabilities:
Fair value of derivative liabilities	$	10,374	$	1,603
Self-insurance liabilities	8,048		7,283
Other ⁽¹⁾	7,506		4,845
	$	25,928	$	13,731
(1) Includes CARES Act deferred employer payroll taxes in the amount of $4.9 million as of June 27, 2020.

Fair Value Measurements of Financial Assets and Liabilities

6 Months Ended

Jun. 27, 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.

Tangible Long-lived and Right of Use (“ROU”) Store Assets

The non-recurring fair value measurements associated with these tangible long-lived and ROU store assets are classified as Level 3 measurements in the fair value hierarchy. Refer to Note 1. “Description of Business and Basis of Presentation”.

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. We also considered the effect of our own credit risk on the fair values of our term loan and revolving credit facility. Refer to Note 4. “Long-term Debt”.

Long-term Debt - 2025 Notes

The Company has $402.5 million in aggregate principal amount of 2.50% convertible senior notes due on May 15, 2025 (the “2025 Notes”) issued and outstanding as of June 27, 2020. The estimated fair value of the 2025 Notes was approximately $464.4 million as of June 27, 2020. The estimated fair value of the 2025 Notes is based on the prices the 2025 Notes have traded in the market as of June 27, 2020, as well as overall market conditions on the date of valuation, stated coupon rates, the number of coupon payments each year and the maturity dates, and represents a Level 2 measurement. Refer to Note 4. “Long-term Debt” for more information on the 2025 Notes.

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 $36.9 million and $38.2 million as of June 27, 2020 and December 28, 2019, respectively, compared to carrying values of $32.6 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).

During the second quarter of 2020, as a result of the partial repayment of the Company’s LIBOR based debt balances, certain forecasted hedged transactions were deemed not probable of occurring. The Company subsequently discontinued hedge accounting on $78.0 million of interest rate swap notional and $58.0 million of interest rate collar notional, reclassifying net unrealized losses of approximately $2.5 million from AOCL to interest expense, net during the three and six months ended June 27, 2020. Additionally, due to changes in the interest rates applicable to the Company’s term loan and revolver, the interest rate collar ceased to be a highly effective hedge. Losses on the change in fair value of the interest rate collar of approximately $2.6 million were recorded in interest expense, net during the quarter ended June 27, 2020. Interest expense, net related to derivatives considered to be highly effective hedges for the three and six months ended June 27, 2020 was $2.0 million and $3.9 million, respectively.

Changes in the cash flows of interest rate swap derivatives are expected to be highly effective in offsetting the changes in interest payments on a principal balance equal to the designated derivative’s notional amount, attributable to the hedged risk. Derivatives qualifying as hedges are included in the same section of the Condensed Consolidated Statements of Cash Flows as the underlying assets and liabilities being hedged. Cash flows during the six months ended June 27, 2020 related to derivatives not qualifying as hedges were included in the operating section of the Condensed Consolidated Statements of Cash Flows and were not material. As of June 27, 2020, the Company expects to reclassify $4.6 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.

Our positions related to interest rate derivative contracts are as follows:


In thousands			Balance Sheet Classification			As of June 27, 2020			As of December 28, 2019
Derivatives designated as hedging instruments under ASC 815
	Interest rate swaps	Other Payables and Accrued Expenses		$	5,497		$	6,382
	Interest rate swaps	Other Liabilities		—			1,603
Total derivative liabilities designated as hedging instruments							$	5,497		$	7,985

Derivatives not designated as hedging instruments under ASC 815
	Interest rate swap	Other Payables and Accrued Expenses		$	892		$	—
	Interest rate collar	Other Payables and Accrued Expenses		839			—
	Interest rate collar	Other Liabilities		10,374			—
Total derivative liabilities not designated as hedging instruments							$	12,106		$	—

Long-term Debt

6 Months Ended

Jun. 27, 2020

Debt Disclosure [Abstract]

Long-term Debt

Long-term debt consists of the following:


In thousands	As of June 27, 2020		As of December 28, 2019

2025 Notes, due May 15, 2025	$	402,500	$	—
Term loan, due July 18, 2024	317,375		392,375
Revolving credit facility, due July 18, 2024	—		148,000
Long-term debt before debt discount	719,875		540,375
Unamortized discount and issuance costs - 2025 Notes	(101,780)		—
Unamortized discount and issuance costs - term loan	(2,454)		(3,979)
Long-term debt less debt discount	615,641		536,396
Less current maturities	—		(10,500)
Long-term debt - non-current portion	615,641		525,896
Finance lease obligations	32,593		33,296
Less current maturities	(3,293)		(3,259)
Long-term debt and finance lease obligations, less current portion and debt discount	$	644,941	$	555,933

2025 Notes

In May 2020, we completed the issuance of the 2025 Notes, pursuant to an indenture (the “Indenture”), dated as of May 12, 2020, between the Company and U.S. Bank National Association, as trustee (the “Trustee”). The 2025 Notes were sold only to persons reasonably believed to be qualified institutional buyers in reliance on Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”). The 2025 Notes will pay interest semi-annually in arrears on May 15 and November 15 of each year, commencing on November 15, 2020, at an annual rate of 2.50% and will be convertible into cash, shares of common stock or a combination of cash and shares of common stock, at our election, based on the applicable conversion rate at such time.

We received proceeds from the offering of $390.9 million, net of $11.6 million in underwriter fees and other issuance costs. We used $294.3 million of the net proceeds from the offering to repay all outstanding amounts of the revolving credit facility and $75.0 million to partially repay the term loan. We intend to use the remainder of the net proceeds for general corporate purposes.

Prior to February 15, 2025, the 2025 Notes will be convertible at the option of the holder only under the following circumstances:

(i) during any calendar quarter commencing after the calendar quarter ending on September 30, 2020 (and only during such calendar quarter), if the Last Reported Sale Price (as defined in the Indenture) per share of the Company’s common stock exceeds 130% of the Conversion Price (as defined in the Indenture) for each of at least 20 Trading Days (as defined in the Indenture), whether or not consecutive, during the 30 consecutive Trading Days ending on, and including, the last Trading Day of the immediately preceding calendar quarter;

(ii) during the five consecutive business days immediately after any ten consecutive Trading Day period (such ten consecutive trading day period, the “measurement period”) in which the Trading Price (as defined in the Indenture) per $1,000 principal amount of the 2025 Notes for each Trading Day of the measurement period was less than 98% of the product of the Last Reported Sale Price per share of the Company’s common stock on such Trading Day and the conversion rate (as described below) on such Trading Day;

(iii) upon the occurrence of certain corporate events or distributions on the Company’s common stock, as described in the Indenture; or (iv) if the Company calls such Notes for redemption.

On or after February 15, 2025 until 5:00 p.m., New York City time, on the second Scheduled Trading Day (as defined in the Indenture) immediately before the maturity date, the 2025 Notes will be convertible at the option of the holder at any time.

The 2025 Notes will initially be convertible at a conversion rate of 32.0783 shares of common stock per 1000 principal amount of 2025 Notes, which is equivalent to an initial conversion price of approximately $31.17 per share of common stock. The conversion rate is subject to adjustment upon certain events. The Company can choose to settle upon conversion in cash, shares or a combination. Based on the initial conversion rate, the 2025 Notes are convertible into 12.9 million shares of our common stock and we reserved for the possible issuance of 16.5 million shares, which is the maximum amount that could be issued upon conversion. See Note 11. “Earnings Per Share” for the treatment of earnings per share in relation to the 2025 Notes.

In accordance with accounting guidance on embedded conversion features indexed to equity, the Company valued and bifurcated the conversion option associated with the 2025 Notes from the respective host debt instrument, which is referred to as debt discount, and initially recorded the post-tax conversion option of $73.5 million ($95.2 million pre-tax) for the 2025 Notes in stockholders’ equity. The resulting debt discount on the 2025 Notes is amortized to interest expense using the effective interest rate method over the contractual term of the 2025 Notes. The Company allocated post-tax debt issuance costs of $2.2 million ($2.7 million pre-tax) to the equity component and the remaining debt issuance costs of $8.9 million are amortized to interest expense under the effective interest rate method at 9.09% over the contractual term of the 2025 Notes. We recognized $2.3 million in interest expense for the interest coupon and amortization of debt discount and issuance costs during the three and six months ended June 27, 2020. As of June 27, 2020 the remaining period for the unamortized debt discount balance was approximately five years.

May 2020 Amendment to Credit Agreement

On March 17, 2020, as a precautionary measure to preserve financial flexibility during the COVID-19 pandemic, we borrowed the remaining $146.3 million in available funds under our revolving credit facility. On May 5, 2020, certain of the Company’s subsidiaries entered into an agreement (the “Credit Agreement 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 Credit Agreement 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 Credit Agreement 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 and management operational assumptions, we anticipate we will be in compliance with these amended covenants.

Pursuant to the Credit Agreement 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 Credit Agreement Amendment NVI has agreed 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 0.75% to 1.75% (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 to 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 four quarters is less than $0.

On May 12, 2020, we fully repaid the outstanding amount on our revolving credit facility of $294.3 million and partially repaid $75 million on the term loan. As a result of the repayments made in 2020 and the $25.0 million principal prepayment in 2019, the Company has no additional mandatory principal payments on the term loan until maturity on July 18, 2024. As a result of the repayment of the outstanding balance on our revolving credit facility, the Company reclassified a proportionate share of unamortized debt issuance costs of approximately $1.8 million to Other assets as of June 27, 2020.

We were in compliance with all covenants related to our long-term debt as of June 27, 2020.

Scheduled annual maturities of debt are as follows:


Fiscal Period	In thousands
2020 - remaining fiscal year	$	—
2021	—
2022	—
2023	—
2024	317,375
Thereafter	402,500
	$	719,875

Stock Incentive Plans	6 Months Ended
Stock Incentive Plans	Jun. 27, 2020
Share-based Payment Arrangement [Abstract]
Stock Incentive Plans	Stock Incentive Plans During the six months ended June 27, 2020, the Company granted 158,206 stock options, 124,863 performance-based restricted stock units (“PSUs”) and 155,550 time-based restricted stock units (“RSUs”) to eligible employees under the National Vision Holdings, Inc. 2017 Omnibus Incentive Plan (the “2017 Omnibus Incentive Plan”). The time-based options granted in fiscal 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. During the six months ended June 27, 2020, the Company granted 14,528 restricted stock awards (“RSAs”) to eligible members of the Company’s Board of Directors under the 2017 Omnibus Incentive Plan. The awards vest one year from the grant date.

Equity in Net Assets of Non-Consolidated Investee	6 Months Ended
Equity in Net Assets of Non-Consolidated Investee	Jun. 27, 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 (income), 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 June 27, 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 was 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 and six months ended June 27, 2020 and June 29, 2019. In April 2020, the Company converted the promissory note to an equity investment. The equity investment has a carrying value of zero as of June 27, 2020.

Revenue from Contracts with Customers

6 Months Ended

Jun. 27, 2020

Revenue from Contract with Customer [Abstract]

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						Six Months Ended
In thousands	June 27, 2020		June 29, 2019		June 27, 2020		June 29, 2019
Revenues recognized at a point in time	$	229,536	$	393,020	$	663,715	$	817,233
Revenues recognized over time	30,471		36,431		65,996		73,433
Total net revenue	$	260,007	$	429,451	$	729,711	$	890,666

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 immaterial for the three months ended June 27, 2020 and $0.4 million for the six months ended June 27, 2020 as compared to $1.8 million and $3.9 million for the three and six months ended June 29, 2019, respectively.

The following table summarizes the activity of allowance for expected credit losses for the six months ended June 27, 2020.


In thousands			Six Months Ended June 27, 2020
Beginning balance as of December 28, 2019			(3,040)
Current-period provision for expected credit losses			(432)
Write-offs charged against the allowance			612
Other adjustments ⁽¹⁾			2,207
Ending balance as of June 27, 2020			(653)
⁽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.

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 June 27, 2020 was $71.1 million. We expect future revenue recognition of this balance of $33.7 million, $26.9 million, $9.2 million, $1.2 million, and $0.1 million in fiscal years 2020, 2021, 2022, 2023, and 2024, respectively. We recognized $24.2 million and $52.2 million of previously deferred revenues during the three and six months ended June 27, 2020, respectively, and $27.5 million and $55.3 million during the three and six months ended June 29, 2019, respectively.

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-URI http://asc.fasb.org/topic&trid=49130388

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
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-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130551-203045

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 13
-Subparagraph (b)(2)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130556-203045

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
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-Section 50
-Paragraph 12
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-Paragraph 12
-Subparagraph (e)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
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-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 15
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130558-203045

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

+ Details

Leases

6 Months Ended

Jun. 27, 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 frequently 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 response to the COVID-19 pandemic, we began seeking relief from our landlords while our stores were temporarily closed to the public. On April 10, 2020, the Financial Accounting Standards Board staff issued a question-and-answer document providing guidance for lease concessions provided to lessees in response to the effects of COVID-19. Such guidance allows lessees to make an election to account for lease concessions as though the enforceable rights and obligations existed in the original lease. This election is only available when the concessions do not result in a substantial increase in the obligations of the lessee.

During the second quarter of 2020, we reached rent concession agreements where certain of these concession arrangements included lease term extensions between three and 12 months. The Company has elected to account for lease concessions and deferrals resulting directly from the COVID-19 pandemic as though the enforceable rights and obligations to the deferrals existed in the respective contracts at lease inception and will not account for the concessions as lease modifications, unless the concession results in a substantial increase in the Company’s obligations. The majority of leases where we received a concession did not result in a substantial increase in our obligations.


In thousands				As of June 27, 2020			As of December 28, 2019
Type	Classification
	ASSETS
Finance	Property and equipment, net ^(a)	$	26,680		$	28,128
Operating	Right of use assets^(b)	341,743			348,090
	Total leased assets	368,423			376,218
	LIABILITIES
	Current Liabilities:
Finance	Current maturities of long-term debt and finance lease obligations	$	3,293		$	3,259
Operating	Current operating lease obligations ^(c)	55,363			51,937
	Other non-current liabilities:
Finance	Long-term debt and finance lease obligations, less current portion and debt discount	29,300			30,037
Operating	Non-current operating lease obligations	328,453			331,769
	Total lease liabilities	$	416,409		$	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 $10.5 million and $8.3 million as of June 27, 2020 and December 28, 2019, respectively.

(b) TIA of $35.3 million and $35.2 million are treated as reductions of lease payments used to measure ROU assets as of June 27, 2020 and December 28, 2019, respectively. Deferred rent of $16.5 million and $15.0 million are treated as reductions of lease payments used to measure ROU assets as of June 27, 2020 and December 28, 2019, respectively.

(c) Current operating lease liabilities are measured net of TIA receivables of $4.4 million and $5.9 million as of June 27, 2020 and December 28, 2019, respectively.


	Three Months Ended						Six Months Ended
In thousands	June 27, 2020		June 29, 2019		June 27, 2020		June 29, 2019
Operating lease cost
Fixed lease cost ^(a)	$	19,100	$	18,250	$	38,412	$	36,413
Variable lease cost ^(b)	6,356		6,592		13,166		13,058
Sublease income^(c)	(292)		(954)		(882)		(1,916)

Finance lease cost
Amortization of finance lease assets	1,125		1,078		2,281		2,056

Interest expense, net:
Interest on finance lease liabilities	851		896		1,724		1,786

Net lease cost	$	27,140	$	25,862	$	54,701	$	51,397

(a) Includes short-term leases, which are immaterial.
(b) Includes costs for insurance, real estate taxes and common area maintenance expenses, which are variable, as are lease costs above minimum thresholds for Fred Meyer stores and lease costs for Military stores.
(c) Income from sub-leasing of stores includes rental income from operating lease properties to ophthalmologists and optometrists who are independent contractors.


Lease Term and Discount Rate	As of June 27, 2020		As of December 28, 2019
Weighted average remaining lease term (months)
Operating leases	80		82
Finance leases	85		88
Weighted average discount rate ^(a)
Operating leases	4.6	%	4.6	%
Finance leases ^(b)	12.6	%	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 term loan and revolving credit facility; (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 June 27, 2020		As of June 29, 2019
Other Information
Cash paid for amounts included in the measurement of lease liabilities
Operating cash outflows - operating leases	$	35,548	$	36,866

The following table summarizes the maturity of our lease liabilities as of June 27, 2020:


In thousands	Operating Leases ^(a)		Finance Leases^(b)
Fiscal Year
2020	$	31,312	$	3,166
2021	79,662		7,280
2022	72,081		7,215
2023	64,351		6,241
2024	56,598		4,673
Thereafter	146,931		16,460
Total lease liabilities	450,935		45,035
Less: Interest	67,119		12,442
Present value of lease liabilities^(c)	$	383,816	$	32,593

(a) Operating lease payments include $64.3 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 $13.3 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 June 27, 2020			As of December 28, 2019
Type	Classification
	ASSETS
Finance	Property and equipment, net ^(a)	$	26,680		$	28,128
Operating	Right of use assets^(b)	341,743			348,090
	Total leased assets	368,423			376,218
	LIABILITIES
	Current Liabilities:
Finance	Current maturities of long-term debt and finance lease obligations	$	3,293		$	3,259
Operating	Current operating lease obligations ^(c)	55,363			51,937
	Other non-current liabilities:
Finance	Long-term debt and finance lease obligations, less current portion and debt discount	29,300			30,037
Operating	Non-current operating lease obligations	328,453			331,769
	Total lease liabilities	$	416,409		$	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 $10.5 million and $8.3 million as of June 27, 2020 and December 28, 2019, respectively.

(c) Current operating lease liabilities are measured net of TIA receivables of $4.4 million and $5.9 million as of June 27, 2020 and December 28, 2019, respectively.


	Three Months Ended						Six Months Ended
In thousands	June 27, 2020		June 29, 2019		June 27, 2020		June 29, 2019
Operating lease cost
Fixed lease cost ^(a)	$	19,100	$	18,250	$	38,412	$	36,413
Variable lease cost ^(b)	6,356		6,592		13,166		13,058
Sublease income^(c)	(292)		(954)		(882)		(1,916)

Finance lease cost
Amortization of finance lease assets	1,125		1,078		2,281		2,056

Interest expense, net:
Interest on finance lease liabilities	851		896		1,724		1,786

Net lease cost	$	27,140	$	25,862	$	54,701	$	51,397

(a) Includes short-term leases, which are immaterial.
(b) Includes costs for insurance, real estate taxes and common area maintenance expenses, which are variable, as are lease costs above minimum thresholds for Fred Meyer stores and lease costs for Military stores.
(c) Income from sub-leasing of stores includes rental income from operating lease properties to ophthalmologists and optometrists who are independent contractors.


Lease Term and Discount Rate	As of June 27, 2020		As of December 28, 2019
Weighted average remaining lease term (months)
Operating leases	80		82
Finance leases	85		88
Weighted average discount rate ^(a)
Operating leases	4.6	%	4.6	%
Finance leases ^(b)	12.6	%	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 term loan and revolving credit facility; (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 June 27, 2020		As of June 29, 2019
Other Information
Cash paid for amounts included in the measurement of lease liabilities
Operating cash outflows - operating leases	$	35,548	$	36,866

The following table summarizes the maturity of our lease liabilities as of June 27, 2020:


In thousands	Operating Leases ^(a)		Finance Leases^(b)
Fiscal Year
2020	$	31,312	$	3,166
2021	79,662		7,280
2022	72,081		7,215
2023	64,351		6,241
2024	56,598		4,673
Thereafter	146,931		16,460
Total lease liabilities	450,935		45,035
Less: Interest	67,119		12,442
Present value of lease liabilities^(c)	$	383,816	$	32,593

(a) Operating lease payments include $64.3 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 $13.3 million of legally binding minimum lease payments for leases signed but not yet commenced.

Commitments and Contingencies	6 Months Ended
Commitments and Contingencies	Jun. 27, 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. FirstSight filed a motion to dismiss the third amended complaint on May 8, 2020. 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. On May 15, 2020, the plaintiffs filed a motion seeking preliminary approval of their settlement with the remaining defendant, 1-800 Contacts, Inc., as well as conditional certification of the class and approval of the plan of distribution of settlement funds. This motion was granted by the court on June 3, 2020. 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 was preliminarily approved by the court on April 29, 2020, and a final approval hearing has been scheduled for September 15, 2020. 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

6 Months Ended

Jun. 27, 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. We incurred $2.5 million and $3.1 million of costs in the three and six months ended June 27, 2020, respectively, primarily for personal protective equipment and other supplies needed to operate our stores safely, as well as for professional fees associated with adapting our operations to the COVID-19 pandemic. Incremental expenses related to the COVID-19 pandemic are not allocated to the reportable segments, but are included in the Corporate/Other category.

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.


	Three Months Ended June 27, 2020
In thousands	Owned & Host		Legacy		Corporate/Other		Reconciliations		Total
Segment product revenues	$	177,430	$	16,254	$	50,472	$	(34,449)	$	209,707
Segment services and plans revenues	34,275		9,159		—		6,866		50,300
Total net revenue	211,705		25,413		50,472		(27,583)		260,007
Cost of products	54,898		9,093		42,135		(8,491)		97,635
Cost of services and plans	38,573		4,572		—		—		43,145
Total costs applicable to revenue	93,471		13,665		42,135		(8,491)		140,780
SG&A	86,704		10,561		39,317		—		136,582
Asset impairment	—		—		2,411		—		2,411
Debt issuance costs	—		—		136		—		136

Other expense (income), net	—		—		(92)		—		(92)
EBITDA	$	31,530	$	1,187	$	(33,435)	$	(19,092)
Depreciation and amortization									21,924
Interest expense, net									15,502
Income (loss) before income taxes									$	(57,236)


	Three Months Ended June 29, 2019
In thousands	Owned & Host		Legacy		Corporate/Other		Reconciliations		Total
Segment product revenues	$	260,867	$	25,785	$	62,341	$	8,540	$	357,533
Segment services and plans revenues	59,549		13,479		5		(1,115)		71,918
Total net revenue	320,416		39,264		62,346		7,425		429,451
Cost of products	77,059		12,312		54,253		2,030		145,654
Cost of services and plans	50,581		6,270		1		—		56,852
Total costs applicable to revenue	127,640		18,582		54,254		2,030		202,506
SG&A	126,078		13,884		42,316		—		182,278
Asset impairment	—		—		1,790		—		1,790


Other expense, net	—		—		356		—		356
EBITDA	$	66,698	$	6,798	$	(36,370)	$	5,395
Depreciation and amortization									20,819
Interest expense, net									8,968
Income before income taxes									$	12,734


	Six Months Ended June 27, 2020
In thousands	Owned & Host		Legacy		Corporate/Other		Reconciliations		Total
Segment product revenues	$	459,343	$	40,672	$	117,044	$	(14,511)	$	602,548
Segment services and plans revenues	99,589		21,198		—		6,376		127,163
Total net revenue	558,932		61,870		117,044		(8,135)		729,711
Costs of products	136,814		20,496		100,045		(3,350)		254,005
Costs of services and plans	94,167		11,162		—		—		105,329
Total costs applicable to revenue	230,981		31,658		100,045		(3,350)		359,334
SG&A	221,418		24,192		84,713		—		330,323
Asset impairment	—		—		13,766		—		13,766
Debt issuance costs	—		—		136		—		136
Litigation settlement	—		—		4,395		—		4,395
Other expense (income), net	—		—		(158)		—		(158)
EBITDA	$	106,533	$	6,020	$	(85,853)	$	(4,785)
Depreciation and amortization									46,734
Interest expense, net									22,957
Income (loss) before income taxes									$	(47,776)


	Six Months Ended June 29, 2019
In thousands	Owned & Host		Legacy		Corporate/Other		Reconciliations		Total
Segment product revenues	$	557,786	$	55,926	$	126,216	$	765	$	740,693
Segment services and plans revenues	127,850		27,916		11		(5,804)		149,973
Total net revenue	685,636		83,842		126,227		(5,039)		890,666
Costs of products	162,305		26,442		110,848		63		299,658
Costs of services and plans	102,245		12,571		1		—		114,817
Total costs applicable to revenue	264,550		39,013		110,849		63		414,475
SG&A	259,291		28,121		88,742		—		376,154
Asset impairment	—		—		3,872		—		3,872


Other expense, net	—		—		829		—		829
EBITDA	$	161,795	$	16,708	$	(78,065)	$	(5,102)
Depreciation and amortization									41,234
Interest expense, net									18,029
Income before income taxes									$	36,073

Revenues associated with managing operations of our legacy partner were $6.3 million and $13.8 million for the three and six months ended June 27, 2020, respectively, and $8.9 million and $18.2 million for the three and six months ended June 29, 2019, respectively. During the six months ended June 27, 2020, sales associated with our Legacy partner arrangement represented 8.5% of consolidated net revenue. During the six months ended June 27, 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.

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8924-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 34
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8981-108599

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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-Section 50
-Paragraph 21
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-Subparagraph (f)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-Subparagraph (e)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
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-Topic 280
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-Paragraph 32
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-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599

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-Name Accounting Standards Codification
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-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599

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-Publisher FASB
-Name Accounting Standards Codification
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Reference 12: http://www.xbrl.org/2003/role/disclosureRef
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Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-URI http://asc.fasb.org/topic&trid=2134510

+ Details

Earnings Per Share

6 Months Ended

Jun. 27, 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, vesting of restricted stock units, and assumed conversion of $402.5 million of aggregate principal amount of the 2025 Notes. Potential shares of common stock are excluded from the computation of diluted EPS if their effect is anti-dilutive.

We have the intent to settle the principal amount of the 2025 Notes in cash upon conversion, and to pay the conversion premium in cash or stock at our option; potentially dilutive common shares related to the 2025 Notes will be determined by applying the treasury stock method. See Note 4. “Long-term Debt” for more information on the 2025 Notes.

The shares underlying the conversion option of the 2025 Notes will not have an impact on our diluted EPS when net income is reported until the average market price of our common stock exceeds the conversion price of $31.17 per share. In addition to the shares underlying the conversion option, outstanding options and unvested RSUs were also excluded from the computation of dilutive EPS since their effect would be anti-dilutive due to our net loss position for the three and six months ended June 27, 2020.

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


	Three Months Ended							Six Months Ended
In thousands, except EPS	June 27, 2020			June 29, 2019		June 27, 2020		June 29, 2019
Net income (loss)	$	(43,833)		$	10,257	$	(34,091)	$	27,686
Weighted average shares outstanding for basic EPS	80,325			78,318		80,226		78,262
Effect of dilutive securities:
Stock options	—			3,059		—		3,135
Restricted stock	—			47		—		40
Weighted average shares outstanding for diluted EPS	80,325		—	81,424		80,226		81,437
Basic EPS	$	(0.55)		$	0.13	$	(0.42)	$	0.35
Diluted EPS	$	(0.55)		$	0.13	$	(0.42)	$	0.34
Anti-dilutive options, RSUs outstanding excluded from EPS	2,458			391		2,512		391

Restricted Cash

6 Months Ended

Jun. 27, 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:


	Six Months Ended
In thousands	June 27, 2020		June 29, 2019
Cash and cash equivalents	$	256,292	$	82,779
Restricted cash included in other assets	1,341		1,086
Total cash, cash equivalents and restricted cash	$	257,633	$	83,865

Accumulated Other Comprehensive Loss

6 Months Ended

Jun. 27, 2020

Equity [Abstract]

Accumulated Other Comprehensive Loss

Changes in the fair value of the Company’s cash flow hedge derivative instruments from their inception are recorded in AOCL if the instruments are deemed to be highly effective as cash flow hedges. The following table presents the changes in AOCL during the three and six months ended June 27, 2020 and June 29, 2019, respectively:


	Three Months Ended						Six Months Ended
In thousands	June 27, 2020		June 29, 2019		June 27, 2020		June 29, 2019
Cash flow hedging activity:
Balance at beginning of period	$	(10,416)	$	(3,757)	$	(3,814)	$	(2,810)
Other comprehensive income (loss) before reclassification	(360)		(3,132)		(11,041)		(5,320)
Tax effect of other comprehensive income (loss) before reclassification	92		803		2,813		1,364
Amount reclassified from AOCL into interest expense	4,471		886		6,294		1,801
Tax effect of amount reclassified from AOCL into interest expense	(1,142)		(227)		(1,607)		(462)
Net current period other comprehensive income (loss), net of tax	3,061		(1,670)		(3,541)		(2,617)
Balance at end of period	$	(7,355)	$	(5,427)	$	(7,355)	$	(5,427)

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	6 Months Ended
Subsequent Events	Jun. 27, 2020
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events July 2020 Amendment to Management & Services Agreement On July 17, 2020, NVI and Walmart Inc. (“Walmart”) entered into Amendment 4 (“Walmart Amendment”) to the Management & Services Agreement (“MSA”), to extend the current term and economics of the MSA by three years, to February 23, 2024, and provide that the MSA will automatically renew for an additional three year term unless, no later than seven months prior to the end of the term, one party gives the other party written notice of non-renewal. In addition, the Amendment deletes certain provisions that are no longer applicable and updates certain administrative provisions, including with respect to background checks, and adds an obligation for the Company to provide Walmart an annual compliance certificate regarding certain of the Company’s obligations and to provide Walmart certain inspection and audit rights. All other terms and conditions of the MSA remain in effect.

Description of Business and Basis of Presentation (Policies)	6 Months Ended
	Jun. 27, 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 June 27, 2020, the consolidated results of operations and comprehensive income, the statements of changes in stockholders’ equity for the three and six months ended June 27, 2020 and June 29, 2019, and its statements of cash flows for the six months ended June 27, 2020 and June 29, 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 2019 Annual Report on Form 10-K. The Company’s significant accounting policies are set forth in Note 1 within those consolidated financial statements. We use the same accounting policies in preparing interim condensed consolidated financial information and annual consolidated financial statements. There were no changes to our significant accounting policies during the six months ended June 27, 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. Refer to Note 4. “Long-term Debt” for information on convertible debt issued in the second quarter of 2020. Refer to Note 3. “Fair Value Measurements of Financial Assets and Liabilities” for information on changes in our assessment of hedge effectiveness in the second quarter of 2020 and for information on our accounting for hedge ineffectiveness.
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 02, 2021. All three and six month periods presented herein contain 13 and 26 weeks, respectively. All references to years and quarters relate to fiscal periods rather than calendar periods.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
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. 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. We consider market-based indications of prevailing rental rates for retail space when estimating the fair values of ROU assets. 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.
Income Taxes	Income TaxesOur income tax rate for the three months ended June 27, 2020 reflected our statutory federal and state rate of 25.5%, offset by a discrete benefit of $0.3 million associated primarily with stock option exercises. Our income tax benefit for the six months ended June 27, 2020 reflected income tax expense at our statutory federal and state rate of 25.5%, offset by a discrete benefit of $3.0 million associated primarily with stock option exercises. In comparison, the income tax rate associated with the three and six months ended June 29, 2019 reflected income tax expense at our statutory federal and state rate of 25.6% and was reduced by a $1.1 million and a $1.4 million income tax benefit resulting from stock option exercises, respectively.
Adoption of New Accounting Pronouncements	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 and exceptions for applying U.S. GAAP to contracts, hedging relationships, and other transactions that may be affected by the cessation of the London Inter-bank Offered Rate (“LIBOR.”) 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)

6 Months Ended

Jun. 27, 2020

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of Accounts Receivable, Net


In thousands	As of June 27, 2020		As of December 28, 2019
Accounts receivable, net:
Trade receivables	$	24,207	$	28,635
Credit card receivables	19,080		14,173
Other receivables ⁽¹⁾	15,817		4,707
Allowance for credit losses	(653)		(3,040)
	$	58,451	$	44,475
(1) Includes CARES Act receivable in the amount of $10.8 million as of June 27, 2020.

Schedule of Inventories


In thousands	As of June 27, 2020		As of December 28, 2019
Inventories:
Raw materials and work in process ⁽¹⁾	$	61,747	$	65,179
Finished goods	56,112		62,377
	$	117,859	$	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 June 27, 2020		As of December 28, 2019
Property and equipment, net:
Land and building	$	3,624	$	3,632
Equipment	193,875		188,593
Information technology hardware and software	117,777		115,283
Furniture and fixtures	54,963		55,146
Leasehold improvements	215,701		213,124
Construction in progress	19,792		26,517
Right of use assets under finance leases	37,162		36,437
	642,894		638,732
Less: Accumulated depreciation	302,989		271,965
	$	339,905	$	366,767

Schedule of Other Payables and Accrued Expenses


In thousands	As of June 27, 2020		As of December 28, 2019
Other payables and accrued expenses:
Employee compensation and benefits	$	31,157	$	28,347
Advertising	535		2,919
Self-insurance liabilities	9,266		8,403
Reserves for customer returns and remakes	7,457		7,158
Capital expenditures	11,265		6,782
Legacy management & services agreement	4,576		4,461
Fair value of derivative liabilities	7,228		6,382
Supplies and other store support expenses	6,894		2,926
Litigation settlements	8,228		3,840
Other	20,259		11,611
	$	106,865	$	82,829

Schedule of Other Non-current Liabilities


In thousands	As of June 27, 2020		As of December 28, 2019
Other non-current liabilities:
Fair value of derivative liabilities	$	10,374	$	1,603
Self-insurance liabilities	8,048		7,283
Other ⁽¹⁾	7,506		4,845
	$	25,928	$	13,731
(1) Includes CARES Act deferred employer payroll taxes in the amount of $4.9 million as of June 27, 2020.

Fair Value Measurements of Financial Assets and Liabilities (Tables)

6 Months Ended

Jun. 27, 2020

Fair Value Disclosures [Abstract]

Schedule of Interest Rate Derivative Contracts

Our positions related to interest rate derivative contracts are as follows:


In thousands			Balance Sheet Classification			As of June 27, 2020			As of December 28, 2019
Derivatives designated as hedging instruments under ASC 815
	Interest rate swaps	Other Payables and Accrued Expenses		$	5,497		$	6,382
	Interest rate swaps	Other Liabilities		—			1,603
Total derivative liabilities designated as hedging instruments							$	5,497		$	7,985

Derivatives not designated as hedging instruments under ASC 815
	Interest rate swap	Other Payables and Accrued Expenses		$	892		$	—
	Interest rate collar	Other Payables and Accrued Expenses		839			—
	Interest rate collar	Other Liabilities		10,374			—
Total derivative liabilities not designated as hedging instruments							$	12,106		$	—

Long-term Debt (Tables)

6 Months Ended

Jun. 27, 2020

Debt Disclosure [Abstract]

Schedule of Long-term Debt Instruments

Long-term debt consists of the following:


In thousands	As of June 27, 2020		As of December 28, 2019

2025 Notes, due May 15, 2025	$	402,500	$	—
Term loan, due July 18, 2024	317,375		392,375
Revolving credit facility, due July 18, 2024	—		148,000
Long-term debt before debt discount	719,875		540,375
Unamortized discount and issuance costs - 2025 Notes	(101,780)		—
Unamortized discount and issuance costs - term loan	(2,454)		(3,979)
Long-term debt less debt discount	615,641		536,396
Less current maturities	—		(10,500)
Long-term debt - non-current portion	615,641		525,896
Finance lease obligations	32,593		33,296
Less current maturities	(3,293)		(3,259)
Long-term debt and finance lease obligations, less current portion and debt discount	$	644,941	$	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	—
2023	—
2024	317,375
Thereafter	402,500
	$	719,875

- 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)

6 Months Ended

Jun. 27, 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						Six Months Ended
In thousands	June 27, 2020		June 29, 2019		June 27, 2020		June 29, 2019
Revenues recognized at a point in time	$	229,536	$	393,020	$	663,715	$	817,233
Revenues recognized over time	30,471		36,431		65,996		73,433
Total net revenue	$	260,007	$	429,451	$	729,711	$	890,666

Schedule of Allowance for Expected Credit Loss

The following table summarizes the activity of allowance for expected credit losses for the six months ended June 27, 2020.


In thousands			Six Months Ended June 27, 2020
Beginning balance as of December 28, 2019			(3,040)
Current-period provision for expected credit losses			(432)
Write-offs charged against the allowance			612
Other adjustments ⁽¹⁾			2,207
Ending balance as of June 27, 2020			(653)
⁽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)

6 Months Ended

Jun. 27, 2020

Leases [Abstract]

Schedule of Lease Type and Classification On Balance Sheet


In thousands				As of June 27, 2020			As of December 28, 2019
Type	Classification
	ASSETS
Finance	Property and equipment, net ^(a)	$	26,680		$	28,128
Operating	Right of use assets^(b)	341,743			348,090
	Total leased assets	368,423			376,218
	LIABILITIES
	Current Liabilities:
Finance	Current maturities of long-term debt and finance lease obligations	$	3,293		$	3,259
Operating	Current operating lease obligations ^(c)	55,363			51,937
	Other non-current liabilities:
Finance	Long-term debt and finance lease obligations, less current portion and debt discount	29,300			30,037
Operating	Non-current operating lease obligations	328,453			331,769
	Total lease liabilities	$	416,409		$	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 $10.5 million and $8.3 million as of June 27, 2020 and December 28, 2019, respectively.

(c) Current operating lease liabilities are measured net of TIA receivables of $4.4 million and $5.9 million as of June 27, 2020 and December 28, 2019, respectively

Schedule of Lease Cost


	Three Months Ended						Six Months Ended
In thousands	June 27, 2020		June 29, 2019		June 27, 2020		June 29, 2019
Operating lease cost
Fixed lease cost ^(a)	$	19,100	$	18,250	$	38,412	$	36,413
Variable lease cost ^(b)	6,356		6,592		13,166		13,058
Sublease income^(c)	(292)		(954)		(882)		(1,916)

Finance lease cost
Amortization of finance lease assets	1,125		1,078		2,281		2,056

Interest expense, net:
Interest on finance lease liabilities	851		896		1,724		1,786

Net lease cost	$	27,140	$	25,862	$	54,701	$	51,397

(a) Includes short-term leases, which are immaterial.
(b) Includes costs for insurance, real estate taxes and common area maintenance expenses, which are variable, as are lease costs above minimum thresholds for Fred Meyer stores and lease costs for Military stores.
(c) Income from sub-leasing of stores includes rental income from 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 June 27, 2020		As of December 28, 2019
Weighted average remaining lease term (months)
Operating leases	80		82
Finance leases	85		88
Weighted average discount rate ^(a)
Operating leases	4.6	%	4.6	%
Finance leases ^(b)	12.6	%	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 term loan and revolving credit facility; (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 June 27, 2020		As of June 29, 2019
Other Information
Cash paid for amounts included in the measurement of lease liabilities
Operating cash outflows - operating leases	$	35,548	$	36,866

Schedule of Maturity for Operating Lease Liabilities

The following table summarizes the maturity of our lease liabilities as of June 27, 2020:


In thousands	Operating Leases ^(a)		Finance Leases^(b)
Fiscal Year
2020	$	31,312	$	3,166
2021	79,662		7,280
2022	72,081		7,215
2023	64,351		6,241
2024	56,598		4,673
Thereafter	146,931		16,460
Total lease liabilities	450,935		45,035
Less: Interest	67,119		12,442
Present value of lease liabilities^(c)	$	383,816	$	32,593

(a) Operating lease payments include $64.3 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 $13.3 million of legally binding minimum lease payments for leases signed but not yet commenced.

Schedule of Maturity for Finance Lease Liabilities

The following table summarizes the maturity of our lease liabilities as of June 27, 2020:


In thousands	Operating Leases ^(a)		Finance Leases^(b)
Fiscal Year
2020	$	31,312	$	3,166
2021	79,662		7,280
2022	72,081		7,215
2023	64,351		6,241
2024	56,598		4,673
Thereafter	146,931		16,460
Total lease liabilities	450,935		45,035
Less: Interest	67,119		12,442
Present value of lease liabilities^(c)	$	383,816	$	32,593

(a) Operating lease payments include $64.3 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 $13.3 million of legally binding minimum lease payments for leases signed but not yet commenced.

Segment Reporting (Tables)

6 Months Ended

Jun. 27, 2020

Segment Reporting [Abstract]

Schedule of Financial Data by Segment


	Three Months Ended June 27, 2020
In thousands	Owned & Host		Legacy		Corporate/Other		Reconciliations		Total
Segment product revenues	$	177,430	$	16,254	$	50,472	$	(34,449)	$	209,707
Segment services and plans revenues	34,275		9,159		—		6,866		50,300
Total net revenue	211,705		25,413		50,472		(27,583)		260,007
Cost of products	54,898		9,093		42,135		(8,491)		97,635
Cost of services and plans	38,573		4,572		—		—		43,145
Total costs applicable to revenue	93,471		13,665		42,135		(8,491)		140,780
SG&A	86,704		10,561		39,317		—		136,582
Asset impairment	—		—		2,411		—		2,411
Debt issuance costs	—		—		136		—		136

Other expense (income), net	—		—		(92)		—		(92)
EBITDA	$	31,530	$	1,187	$	(33,435)	$	(19,092)
Depreciation and amortization									21,924
Interest expense, net									15,502
Income (loss) before income taxes									$	(57,236)


	Three Months Ended June 29, 2019
In thousands	Owned & Host		Legacy		Corporate/Other		Reconciliations		Total
Segment product revenues	$	260,867	$	25,785	$	62,341	$	8,540	$	357,533
Segment services and plans revenues	59,549		13,479		5		(1,115)		71,918
Total net revenue	320,416		39,264		62,346		7,425		429,451
Cost of products	77,059		12,312		54,253		2,030		145,654
Cost of services and plans	50,581		6,270		1		—		56,852
Total costs applicable to revenue	127,640		18,582		54,254		2,030		202,506
SG&A	126,078		13,884		42,316		—		182,278
Asset impairment	—		—		1,790		—		1,790


Other expense, net	—		—		356		—		356
EBITDA	$	66,698	$	6,798	$	(36,370)	$	5,395
Depreciation and amortization									20,819
Interest expense, net									8,968
Income before income taxes									$	12,734


	Six Months Ended June 27, 2020
In thousands	Owned & Host		Legacy		Corporate/Other		Reconciliations		Total
Segment product revenues	$	459,343	$	40,672	$	117,044	$	(14,511)	$	602,548
Segment services and plans revenues	99,589		21,198		—		6,376		127,163
Total net revenue	558,932		61,870		117,044		(8,135)		729,711
Costs of products	136,814		20,496		100,045		(3,350)		254,005
Costs of services and plans	94,167		11,162		—		—		105,329
Total costs applicable to revenue	230,981		31,658		100,045		(3,350)		359,334
SG&A	221,418		24,192		84,713		—		330,323
Asset impairment	—		—		13,766		—		13,766
Debt issuance costs	—		—		136		—		136
Litigation settlement	—		—		4,395		—		4,395
Other expense (income), net	—		—		(158)		—		(158)
EBITDA	$	106,533	$	6,020	$	(85,853)	$	(4,785)
Depreciation and amortization									46,734
Interest expense, net									22,957
Income (loss) before income taxes									$	(47,776)


	Six Months Ended June 29, 2019
In thousands	Owned & Host		Legacy		Corporate/Other		Reconciliations		Total
Segment product revenues	$	557,786	$	55,926	$	126,216	$	765	$	740,693
Segment services and plans revenues	127,850		27,916		11		(5,804)		149,973
Total net revenue	685,636		83,842		126,227		(5,039)		890,666
Costs of products	162,305		26,442		110,848		63		299,658
Costs of services and plans	102,245		12,571		1		—		114,817
Total costs applicable to revenue	264,550		39,013		110,849		63		414,475
SG&A	259,291		28,121		88,742		—		376,154
Asset impairment	—		—		3,872		—		3,872


Other expense, net	—		—		829		—		829
EBITDA	$	161,795	$	16,708	$	(78,065)	$	(5,102)
Depreciation and amortization									41,234
Interest expense, net									18,029
Income before income taxes									$	36,073

Earnings Per Share (Tables)

6 Months Ended

Jun. 27, 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							Six Months Ended
In thousands, except EPS	June 27, 2020			June 29, 2019		June 27, 2020		June 29, 2019
Net income (loss)	$	(43,833)		$	10,257	$	(34,091)	$	27,686
Weighted average shares outstanding for basic EPS	80,325			78,318		80,226		78,262
Effect of dilutive securities:
Stock options	—			3,059		—		3,135
Restricted stock	—			47		—		40
Weighted average shares outstanding for diluted EPS	80,325		—	81,424		80,226		81,437
Basic EPS	$	(0.55)		$	0.13	$	(0.42)	$	0.35
Diluted EPS	$	(0.55)		$	0.13	$	(0.42)	$	0.34
Anti-dilutive options, RSUs outstanding excluded from EPS	2,458			391		2,512		391

Restricted Cash (Tables)

6 Months Ended

Jun. 27, 2020

Cash and Cash Equivalents [Abstract]

Schedule of Cash, Cash Equivalents, and Restricted Cash


	Six Months Ended
In thousands	June 27, 2020		June 29, 2019
Cash and cash equivalents	$	256,292	$	82,779
Restricted cash included in other assets	1,341		1,086
Total cash, cash equivalents and restricted cash	$	257,633	$	83,865

Accumulated Other Comprehensive Loss (Tables)

6 Months Ended

Jun. 27, 2020

Equity [Abstract]

Schedule of Accumulated Other Comprehensive Loss

The following table presents the changes in AOCL during the three and six months ended June 27, 2020 and June 29, 2019, respectively:


	Three Months Ended						Six Months Ended
In thousands	June 27, 2020		June 29, 2019		June 27, 2020		June 29, 2019
Cash flow hedging activity:
Balance at beginning of period	$	(10,416)	$	(3,757)	$	(3,814)	$	(2,810)
Other comprehensive income (loss) before reclassification	(360)		(3,132)		(11,041)		(5,320)
Tax effect of other comprehensive income (loss) before reclassification	92		803		2,813		1,364
Amount reclassified from AOCL into interest expense	4,471		886		6,294		1,801
Tax effect of amount reclassified from AOCL into interest expense	(1,142)		(227)		(1,607)		(462)
Net current period other comprehensive income (loss), net of tax	3,061		(1,670)		(3,541)		(2,617)
Balance at end of period	$	(7,355)	$	(5,427)	$	(7,355)	$	(5,427)

Description of Business and Basis of Presentation - Nature of Operations (Details)	Jun. 27, 2020 store store_brand	Dec. 28, 2019 store
Accounting Policies [Abstract]
Number of retail optical locations \| store	1,185	1,151
Number of store brands \| store_brand	5

Description of Business and Basis of Presentation - Asset Impairment (Details) $ in Millions	3 Months Ended	6 Months Ended
	Jun. 27, 2020 USD ($)	Jun. 27, 2020 USD ($)
Accounting Policies [Abstract]
Discount rate used in impairment analysis (percent)		8.00%
Asset impairment charges for certain stores and other assets	$ 2.4	$ 13.8
Estimated fair value of impaired assets	19.5	19.5
Write-off of certain obsolete software assets	$ 1.1	$ 1.1

Description of Business and Basis of Presentation - Income Taxes and CARES Act (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 27, 2020	Jun. 29, 2019	Jun. 27, 2020	Jun. 29, 2019
Income Taxes
Effective income tax rate (percent)	25.50%	25.60%	25.50%	25.60%
Tax benefit associated primarily with exercise of stock options	$ 0.3	$ 1.1	$ 3.0	$ 1.4
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
Employee retention credit, CARES Act	10.8		10.8
Products
Income Taxes
Employee retention credit, CARES Act	0.4		0.4
Services and plans
Income Taxes
Employee retention credit, CARES Act	6.2		6.2
SG&A
Income Taxes
Employee retention credit, CARES Act	$ 4.2		$ 4.2

Description of Business and Basis of Presentation - Adoption of New Accounting Pronouncements (Details) - USD ($) $ in Thousands	Jun. 27, 2020	Mar. 28, 2020	Dec. 29, 2019	Dec. 28, 2019	Jun. 29, 2019	Mar. 30, 2019	Dec. 29, 2018
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Equity	$ (820,939)	$ (786,160)		$ (776,437)	$ (774,434)	$ (762,580)	$ (743,154)
Retained Earnings
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Equity	$ (72,512)	$ (116,345)		(107,132)	$ (102,020)	$ (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

- Definition

Total of all stockholders' equity (deficit) items, net of receivables from officers, directors, owners, and affiliates of the entity which are attributable to the parent. The amount of the economic entity's stockholders' equity attributable to the parent excludes the amount of stockholders' equity which is allocable to that ownership interest in subsidiary equity which is not attributable to the parent (noncontrolling interest, minority interest). This excludes temporary equity and is sometimes called permanent equity.

+ References + Details

Details of Certain Balance Sheet Accounts - Accounts Receivable, Net (Details) - USD ($) $ in Thousands	Jun. 27, 2020	Dec. 28, 2019
Accounts receivable, net:
Allowance for credit losses	$ (653)	$ (3,040)
Accounts receivable, net of allowance	58,451	44,475
Employee retention credit in other receivables, CARES Act	10,800
Trade receivables
Accounts receivable, net:
Accounts receivable, gross	24,207	28,635
Credit card receivables
Accounts receivable, net:
Accounts receivable, gross	19,080	14,173
Other receivables (1)
Accounts receivable, net:
Accounts receivable, gross	$ 15,817	$ 4,707

Details of Certain Balance Sheet Accounts - Inventories (Details) - USD ($) $ in Thousands	Jun. 27, 2020	Dec. 28, 2019
Inventories:
Raw materials and work in process	$ 61,747	$ 65,179
Finished goods	56,112	62,377
Inventories	$ 117,859	$ 127,556

Details of Certain Balance Sheet Accounts - Property and Equipment, Net (Details) - USD ($) $ in Thousands	Jun. 27, 2020	Dec. 28, 2019
Property and equipment, net:
Property and equipment, gross	$ 642,894	$ 638,732
Less: Accumulated depreciation	302,989	271,965
Property and equipment, net	339,905	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	193,875	188,593
Information technology hardware and software
Property and equipment, net:
Property and equipment, gross	117,777	115,283
Furniture and fixtures
Property and equipment, net:
Property and equipment, gross	54,963	55,146
Leasehold improvements
Property and equipment, net:
Property and equipment, gross	215,701	213,124
Construction in progress
Property and equipment, net:
Property and equipment, gross	19,792	26,517
Right of use assets under finance leases
Property and equipment, net:
Right of use assets under finance leases	$ 37,162	$ 36,437

Details of Certain Balance Sheet Accounts - Other Payables and Accrued Expenses (Details) - USD ($) $ in Thousands	Jun. 27, 2020	Dec. 28, 2019
Other payables and accrued expenses:
Employee compensation and benefits	$ 31,157	$ 28,347
Advertising	535	2,919
Self-insurance liabilities	9,266	8,403
Reserves for customer returns and remakes	7,457	7,158
Capital expenditures	11,265	6,782
Legacy management & services agreement	4,576	4,461
Fair value of derivative liabilities	7,228	6,382
Supplies and other store support expenses	6,894	2,926
Litigation settlements	8,228	3,840
Other	20,259	11,611
Total other payables and accrued expenses	$ 106,865	$ 82,829

Details of Certain Balance Sheet Accounts - Other Non-Current Liabilities (Details) - USD ($) $ in Thousands	Jun. 27, 2020	Dec. 28, 2019
Other non-current liabilities:
Fair value of derivative liabilities	$ 10,374	$ 1,603
Self-insurance liabilities	8,048	7,283
Other	7,506	4,845
Total other non-current liabilities	25,928	$ 13,731
Deferred employer payroll taxes in other liabilities, CARES Act	$ 4,900

Fair Value Measurements of Financial Assets and Liabilities - Narrative (Details) - USD ($)	Jun. 27, 2020	May 31, 2020	Dec. 28, 2019
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Aggregate principal amount	$ 719,875,000		$ 540,375,000
Finance lease obligations	32,593,000		33,296,000
Convertible senior notes \| 2025 Notes
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Aggregate principal amount	$ 402,500,000		0
Stated interest rate (percent)	2.50%	2.50%
Estimated fair value \| Level 2 \| Convertible senior notes \| 2025 Notes
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Estimated fair value of convertible notes	$ 464,400,000
Estimated fair value \| Level 2 \| Finance lease obligations
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Finance lease obligation	$ 36,900,000		$ 38,200,000

Fair Value Measurements of Financial Assets and Liabilities - Interest Rate Derivatives (Details) - USD ($)	3 Months Ended	6 Months Ended
	Jun. 27, 2020	Jun. 27, 2020	Mar. 28, 2020	Dec. 28, 2019
Derivative [Line Items]
Interest expense on highly effective hedges	$ 2,000,000.0	$ 3,900,000
Estimated reclassification from AOCL to earnings in next 12 months	4,600,000	$ 4,600,000
Interest rate swap and collar \| Interest expense, net
Derivative [Line Items]
Reclassification of net unrealized losses on discontinuance of hedge accounting	$ 2,500,000
Interest rate swap \| Cash Flow Hedges
Derivative [Line Items]
Derivative interest rate floor	1.00%	1.00%
Interest rate swap \| Not Designated as Hedging Instrument
Derivative [Line Items]
Notional amount	$ 78,000,000.0	$ 78,000,000.0
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 \| Interest expense, net
Derivative [Line Items]
Loss on change in fair value	2,600,000
Interest rate collar \| Designated as Hedging Instrument \| Cash Flow Hedges
Derivative [Line Items]
Notional amount			$ 375,000,000
Interest rate collar \| Not Designated as Hedging Instrument
Derivative [Line Items]
Notional amount	$ 58,000,000.0	$ 58,000,000.0

Fair Value Measurements of Financial Assets and Liabilities - Positions Related to Interest Rate Derivative Contracts (Details) - USD ($) $ in Thousands	Jun. 27, 2020	Dec. 28, 2019
Designated as Hedging Instrument
Derivatives, Fair Value [Line Items]
Derivative liabilities	$ 5,497	$ 7,985
Not Designated as Hedging Instrument
Derivatives, Fair Value [Line Items]
Derivative liabilities	12,106	0
Interest rate swap \| Designated as Hedging Instrument \| Other Payables and Accrued Expenses
Derivatives, Fair Value [Line Items]
Derivative liabilities	5,497	6,382
Interest rate swap \| Designated as Hedging Instrument \| Other Liabilities
Derivatives, Fair Value [Line Items]
Derivative liabilities	0	1,603
Interest rate swap \| Not Designated as Hedging Instrument \| Other Payables and Accrued Expenses
Derivatives, Fair Value [Line Items]
Derivative liabilities	892	0
Interest rate collar \| Not Designated as Hedging Instrument \| Other Payables and Accrued Expenses
Derivatives, Fair Value [Line Items]
Derivative liabilities	839	0
Interest rate collar \| Not Designated as Hedging Instrument \| Other Liabilities
Derivatives, Fair Value [Line Items]
Derivative liabilities	$ 10,374	$ 0

Long-term Debt - Summary of Long-term Debt (Details) - USD ($)	Jun. 27, 2020	Dec. 28, 2019
Debt Instrument [Line Items]
Long-term debt, gross	$ 719,875,000	$ 540,375,000
Long-term debt less debt discount	615,641,000	536,396,000
Less current maturities	0	(10,500,000)
Long-term debt - non-current portion	615,641,000	525,896,000
Finance lease obligations	32,593,000	33,296,000
Less current maturities	(3,293,000)	(3,259,000)
Long-term debt and finance lease obligations, less current portion and debt discount	644,941,000	555,933,000
Revolving credit facility, due July 18, 2024 \| Credit facility
Debt Instrument [Line Items]
Long-term debt, gross	0	148,000,000
2025 Notes \| Convertible senior notes
Debt Instrument [Line Items]
Long-term debt, gross	402,500,000	0
Unamortized discount	(101,780,000)	0
Term loan, due July 18, 2024 \| Term loan
Debt Instrument [Line Items]
Long-term debt, gross	317,375,000	392,375,000
Unamortized discount	$ (2,454,000)	$ (3,979,000)

Long-term Debt - 2025 Notes Narrative (Details) $ / shares in Units, $ in Thousands, common_share in Millions			1 Months Ended	3 Months Ended	6 Months Ended		12 Months Ended	53 Months Ended	58 Months Ended
	Jun. 27, 2020 $ / shares	May 12, 2020 USD ($)	May 31, 2020 USD ($) common_share $ / shares	Jun. 27, 2020 USD ($) $ / shares	Jun. 27, 2020 USD ($) $ / shares	Jun. 29, 2019 USD ($)	Dec. 28, 2019 USD ($)	Feb. 14, 2025 day	Feb. 14, 2025 USD ($) day
Debt Instrument [Line Items]
Amortization of debt discount and deferred financing costs					$ 2,717	$ 892
Unamortized debt discount remaining period (in years)	5 years
2025 Notes \| Interest expense, net
Debt Instrument [Line Items]
Amortization of debt discount and deferred financing costs				$ 2,300	$ 2,300
Convertible senior notes \| 2025 Notes
Debt Instrument [Line Items]
Stated interest rate (percent)	2.50%		2.50%	2.50%	2.50%
Proceeds from convertible debt			$ 390,900
Debt issuance costs			11,600
Principal amount per note			$ 1
Conversion ratio			32.0783
Conversion price (in usd per share) \| $ / shares	$ 31.17		$ 31.17	$ 31.17	$ 31.17
Number of shares of common stock reserved for conversion of debt \| common_share			12.9
Post-tax conversion option recorded to equity			$ 73,500
Pre-tax conversion option recorded to equity			$ 95,200
Effective interest rate (percent)			9.09%
Convertible senior notes \| 2025 Notes \| Maximum
Debt Instrument [Line Items]
Number of shares of common stock reserved for conversion of debt \| common_share			16.5
Convertible senior notes \| 2025 Notes \| Equity component
Debt Instrument [Line Items]
Debt issuance costs			$ 2,700
Post-tax debt issuance costs			2,200
Convertible senior notes \| 2025 Notes \| Debt component
Debt Instrument [Line Items]
Debt issuance costs			8,900
Convertible senior notes \| 2025 Notes \| Forecast
Debt Instrument [Line Items]
Threshold stock price trigger (percent)								130.00%
Threshold trading days for conversion price metric \| day								20
Threshold consecutive trading days for conversion price measurement \| day								30
Threshold consecutive business days after measurement period \| day									5
Threshold consecutive trading days for measurement period \| day									10
Principal amount per note									$ 1
Trading price compared to factor of last reported sale price by conversion rate (percent)									98.00%
Credit facility \| Revolving credit facility, due July 18, 2024
Debt Instrument [Line Items]
Repayment of revolving credit facility		$ 294,300
Term loan \| Term loan, due July 18, 2024
Debt Instrument [Line Items]
Repayment of term loan		$ 75,000	$ 75,000				$ 25,000

Long-term Debt - Amendment to Credit Agreement Narrative (Details)				1 Months Ended	3 Months Ended	6 Months Ended	12 Months Ended	39 Months Ended
	May 12, 2020 USD ($)	May 05, 2020 USD ($)	Mar. 17, 2020 USD ($)	May 31, 2020 USD ($)	Jan. 01, 2022	Oct. 02, 2021	Dec. 28, 2019 USD ($)	Jul. 18, 2024	Jun. 27, 2020 USD ($)
Other assets
Debt Instrument [Line Items]
Unamortized debt issuance costs in other assets									$ 1,800,000
Amended credit facility
Debt Instrument [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
Term loan \| Term loan, due July 18, 2024
Debt Instrument [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
Repayment of term loan	$ 75,000,000			$ 75,000,000.0			$ 25,000,000.0
Term loan \| Term loan, due July 18, 2024 \| LIBOR \| Minimum
Debt Instrument [Line Items]
Basis spread on variable rate (percent)		1.75%
Term loan \| Term loan, due July 18, 2024 \| LIBOR \| Maximum
Debt Instrument [Line Items]
Basis spread on variable rate (percent)		2.75%
Term loan \| Term loan, due July 18, 2024 \| ABR \| Minimum
Debt Instrument [Line Items]
Basis spread on variable rate (percent)		0.75%
Term loan \| Term loan, due July 18, 2024 \| ABR \| Maximum
Debt Instrument [Line Items]
Basis spread on variable rate (percent)		1.75%
Revolving credit facility
Debt Instrument [Line Items]
Restriction on borrowings covenant, maximum unrestricted cash and cash equivalents		$ 50,000,000
Revolving credit facility \| Credit facility
Debt Instrument [Line Items]
Proceeds from revolving credit facility			$ 146,300,000
Forecast \| Amended credit facility
Debt Instrument [Line Items]
Consolidated Total Debt to Consolidated EBITDA Ratio					4.00	4.50
Consolidated Interest Coverage Ratio minimum								3.00

Long-term Debt - Maturities of Debt (Details) - USD ($) $ in Thousands	Jun. 27, 2020	Dec. 28, 2019
Schedule of annual maturities of debt:
2020 - remaining fiscal year	$ 0
2021	0
2022	0
2023	0
2024	317,375
Thereafter	402,500
Total	$ 719,875	$ 540,375

Stock Incentive Plans (Details) - 2017 Omnibus Incentive Plan	6 Months Ended
	Jun. 27, 2020 installment shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options granted (shares)	158,206
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of equal vesting installments \| installment	3
PSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Awards granted (shares)	124,863
RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Awards granted (shares)	155,550
Number of equal vesting installments \| installment	3
RSAs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Awards granted (shares)	14,528
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period	1 year

Equity in Net Assets of Non-Consolidated Investee (Details) - USD ($)	Jun. 27, 2020	Aug. 29, 2017
Equity Method Investee
Related Party Transaction [Line Items]
Loan receivable		$ 1,500,000
Promissory note \| Equity Method Investee
Related Party Transaction [Line Items]
Allowance for credit losses	$ 1,500,000
Nonconsolidated investee
Related Party Transaction [Line Items]
Equity investment	$ 0

Revenue from Contracts with Customers - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 27, 2020	Jun. 29, 2019	Jun. 27, 2020	Jun. 29, 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		$ 1,800	$ 432	$ 3,865
Deferred revenue	$ 71,100		71,100
Previously deferred revenue recognized	$ 24,200	$ 27,500	$ 52,200	$ 55,300
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		6 Months Ended
	Jun. 27, 2020	Jun. 29, 2019	Jun. 27, 2020	Jun. 29, 2019
Disaggregation of Revenue [Line Items]
Net revenue	$ 260,007	$ 429,451	$ 729,711	$ 890,666
Revenues recognized at a point in time
Disaggregation of Revenue [Line Items]
Net revenue	229,536	393,020	663,715	817,233
Revenues recognized over time
Disaggregation of Revenue [Line Items]
Net revenue	$ 30,471	$ 36,431	$ 65,996	$ 73,433

- Definition

Amount, excluding tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value added and excise.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8906-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 40
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9031-108599

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 41
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9038-108599

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 4
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130543-203045

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 42
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9054-108599

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130545-203045

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 924
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SAB Topic 11.L)
-URI http://asc.fasb.org/extlink&oid=6472922&loc=d3e499488-122856

+ Details

Revenue from Contracts with Customers - Summary of Activity of Allowance for Expected Credit Losses (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 29, 2019	Jun. 27, 2020	Jun. 29, 2019
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance		$ (3,040)
Current-period provision for expected credit losses	$ (1,800)	(432)	$ (3,865)
Write-offs charged against the allowance		612
Other adjustments		2,207
Ending balance		$ (653)

Revenue from Contracts with Customers - Unsatisfied Performance Obligations (Details) $ in Millions	Jun. 27, 2020 USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-06-28
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Performance obligations expected to be satisfied	$ 33.7
Performance obligations expected to be satisfied, expected timing	6 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	$ 26.9
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	$ 9.2
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	$ 1.2
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	1 year

Leases - Narrative (Details)	3 Months Ended	6 Months Ended
Leases - Narrative (Details)	Jun. 27, 2020	Jun. 27, 2020
Minimum
Lessee, Lease, Description [Line Items]
Lease extension term, COVID-19 related (in months)	3 months
Maximum
Lessee, Lease, Description [Line Items]
Lease extension term, COVID-19 related (in months)	12 months
Stores, laboratories, distribution centers, offices \| Minimum
Lessee, Lease, Description [Line Items]
Lease terms (in years)		5 years
Lease extension term, COVID-19 related (in months)		1 year
Stores, laboratories, distribution centers, offices \| 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	Jun. 27, 2020	Dec. 28, 2019
ASSETS
Finance lease, right-of-use assets	$ 26,680	$ 28,128
Operating lease, right-of-use assets	341,743	348,090
Total leased assets	368,423	376,218
Accumulated amortization	10,500	8,300
TIA treated as reduction of lease payments used to measure operating lease ROU assets	35,300	35,200
Deferred rent treated as reduction of lease payments used to measure operating lease ROU assets	16,500	15,000
TIA receivable netted to operating lease liabilities	4,400	5,900
LIABILITIES
Finance lease liability, current	3,293	3,259
Operating lease liability, current	55,363	51,937
Finance lease liabilities, non-current	29,300	30,037
Operating lease liabilities, non-current	328,453	331,769
Total lease liabilities	$ 416,409	$ 417,002

Leases - Lease Costs (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
Leases - Lease Costs (Details) - USD ($) $ in Thousands	Jun. 27, 2020	Jun. 29, 2019	Jun. 27, 2020	Jun. 29, 2019
Lease Cost
Operating lease cost	$ 19,100	$ 18,250	$ 38,412	$ 36,413
Variable lease cost	6,356	6,592	13,166	13,058
Sublease income	(292)	(954)	(882)	(1,916)
Amortization of finance lease assets	1,125	1,078	2,281	2,056
Interest on finance lease liabilities	851	896	1,724	1,786
Net lease cost	$ 27,140	$ 25,862	$ 54,701	$ 51,397

Leases - Lease Term and Discount Rate (Details)	Jun. 27, 2020	Dec. 28, 2019
Leases [Abstract]
Operating leases, weighted average remaining lease term (months)	80 months	82 months
Finance leases, weighted average remaining lease term (months)	85 months	88 months
Operating leases, weighted average discount rate (percent)	4.60%	4.60%
Finance leases, weighted average discount rate (percent)	12.60%	13.10%

Leases - Other Information (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 27, 2020	Jun. 29, 2019
Cash paid for amounts included in the measurement of lease liabilities
Operating cash outflows - operating leases	$ 35,548	$ 36,866

Leases - Maturity of Lease Liabilities (Details) - USD ($) $ in Thousands	Jun. 27, 2020	Dec. 28, 2019
Operating Leases
2020	$ 31,312
2021	79,662
2022	72,081
2023	64,351
2024	56,598
Thereafter	146,931
Total lease liabilities	450,935
Less: Interest	67,119
Present value of lease liabilities	383,816
Finance Leases
2020	3,166
2021	7,280
2022	7,215
2023	6,241
2024	4,673
Thereafter	16,460
Total lease liabilities	45,035
Less: Interest	12,442
Finance lease obligations	32,593	$ 33,296
Operating lease payments related to reasonably certain option extensions included in total lease payments	64,300
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	$ 13,300

Commitments and Contingencies (Details) $ in Thousands			1 Months Ended		3 Months Ended			6 Months Ended
Commitments and Contingencies (Details) $ in Thousands	Feb. 27, 2020 USD ($)	Nov. 08, 2017 USD ($)	Nov. 30, 2019 USD ($) plaintiff	May 31, 2017 USD ($)	Jun. 27, 2020 USD ($)	Jun. 29, 2019 USD ($)	Jul. 01, 2017 USD ($)	Jun. 27, 2020 USD ($)	Jun. 29, 2019 USD ($)
Loss Contingencies [Line Items]
Charge for litigation settlement					$ 0	$ 0		$ 4,395	$ 0
1-800 Contacts Matter
Loss Contingencies [Line Items]
Amount of litigation settlement				$ 7,000
Charge for litigation settlement							$ 7,000
Percent of settlement award deposited in escrow account (percent)		50.00%
Amount of settlement deposited in escrow account		$ 3,500
Wage and hours
Loss Contingencies [Line Items]
Gross settlement fund to be paid	$ 3,500
Fair Labor Standards Act
Loss Contingencies [Line Items]
Number of former employees \| plaintiff			6
Fair Labor Standards Act \| Maximum
Loss Contingencies [Line Items]
Amount of litigation settlement			$ 895

Segment Reporting - Narrative (Details) $ in Thousands	3 Months Ended		6 Months Ended
Segment Reporting - Narrative (Details) $ in Thousands	Jun. 27, 2020 USD ($)	Jun. 29, 2019 USD ($)	Jun. 27, 2020 USD ($) segment	Jun. 29, 2019 USD ($)
Segment Reporting Information [Line Items]
Number of reportable segments \| segment			2
Corporate level COVID-19 related supplies expense and professional fees	$ 2,500		$ 3,100
Net revenue	260,007	$ 429,451	$ 729,711	$ 890,666
Customer Concentration Risk \| Sales revenue \| Legacy partner arrangement
Segment Reporting Information [Line Items]
Concentration risk (percent)			8.50%
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	$ 6,300	$ 8,900	$ 13,800	$ 18,200

Segment Reporting - Financial Data by Segment (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 27, 2020	Jun. 29, 2019	Jun. 27, 2020	Jun. 29, 2019
Segment Reporting Information [Line Items]
Total net revenue	$ 260,007	$ 429,451	$ 729,711	$ 890,666
Total costs applicable to revenue	140,780	202,506	359,334	414,475
SG&A	136,582	182,278	330,323	376,154
Asset impairment	2,411	1,790	13,766	3,872
Debt issuance costs	136	0	136	0
Litigation settlement	0	0	4,395	0
Other expense (income), net	(92)	356	(158)	829
Depreciation and amortization	21,924	20,819	46,734	41,234
Interest expense, net	15,502	8,968	22,957	18,029
Earnings (loss) before income taxes	(57,236)	12,734	(47,776)	36,073
Products
Segment Reporting Information [Line Items]
Total net revenue	209,707	357,533	602,548	740,693
Total costs applicable to revenue	97,635	145,654	254,005	299,658
Services and plans
Segment Reporting Information [Line Items]
Total net revenue	50,300	71,918	127,163	149,973
Total costs applicable to revenue	43,145	56,852	105,329	114,817
Operating Segments \| Owned & Host
Segment Reporting Information [Line Items]
Total net revenue	211,705	320,416	558,932	685,636
Total costs applicable to revenue	93,471	127,640	230,981	264,550
SG&A	86,704	126,078	221,418	259,291
Asset impairment	0	0	0	0
Debt issuance costs	0		0
Litigation settlement			0
Other expense (income), net	0	0	0	0
EBITDA	31,530	66,698	106,533	161,795
Operating Segments \| Owned & Host \| Products
Segment Reporting Information [Line Items]
Total net revenue	177,430	260,867	459,343	557,786
Total costs applicable to revenue	54,898	77,059	136,814	162,305
Operating Segments \| Owned & Host \| Services and plans
Segment Reporting Information [Line Items]
Total net revenue	34,275	59,549	99,589	127,850
Total costs applicable to revenue	38,573	50,581	94,167	102,245
Operating Segments \| Legacy
Segment Reporting Information [Line Items]
Total net revenue	25,413	39,264	61,870	83,842
Total costs applicable to revenue	13,665	18,582	31,658	39,013
SG&A	10,561	13,884	24,192	28,121
Asset impairment	0	0	0	0
Debt issuance costs	0		0
Litigation settlement			0
Other expense (income), net	0	0	0	0
EBITDA	1,187	6,798	6,020	16,708
Operating Segments \| Legacy \| Products
Segment Reporting Information [Line Items]
Total net revenue	16,254	25,785	40,672	55,926
Total costs applicable to revenue	9,093	12,312	20,496	26,442
Operating Segments \| Legacy \| Services and plans
Segment Reporting Information [Line Items]
Total net revenue	9,159	13,479	21,198	27,916
Total costs applicable to revenue	4,572	6,270	11,162	12,571
Operating Segments \| Corporate/Other
Segment Reporting Information [Line Items]
Total net revenue	50,472	62,346	117,044	126,227
Total costs applicable to revenue	42,135	54,254	100,045	110,849
SG&A	39,317	42,316	84,713	88,742
Asset impairment	2,411	1,790	13,766	3,872
Debt issuance costs	136		136
Litigation settlement			4,395
Other expense (income), net	(92)	356	(158)	829
EBITDA	(33,435)	(36,370)	(85,853)	(78,065)
Operating Segments \| Corporate/Other \| Products
Segment Reporting Information [Line Items]
Total net revenue	50,472	62,341	117,044	126,216
Total costs applicable to revenue	42,135	54,253	100,045	110,848
Operating Segments \| Corporate/Other \| Services and plans
Segment Reporting Information [Line Items]
Total net revenue	0	5	0	11
Total costs applicable to revenue	0	1	0	1
Reconciliations
Segment Reporting Information [Line Items]
Total net revenue	(27,583)	7,425	(8,135)	(5,039)
Total costs applicable to revenue	(8,491)	2,030	(3,350)	63
SG&A	0	0	0	0
Asset impairment	0	0	0	0
Debt issuance costs	0		0
Litigation settlement			0
Other expense (income), net	0	0	0	0
EBITDA	(19,092)	5,395	(4,785)	(5,102)
Reconciliations \| Products
Segment Reporting Information [Line Items]
Total net revenue	(34,449)	8,540	(14,511)	765
Total costs applicable to revenue	(8,491)	2,030	(3,350)	63
Reconciliations \| Services and plans
Segment Reporting Information [Line Items]
Total net revenue	6,866	(1,115)	6,376	(5,804)
Total costs applicable to revenue	$ 0	$ 0	$ 0	$ 0

Earnings Per Share - Narrative (Details) - USD ($)	Jun. 27, 2020	May 31, 2020	Dec. 28, 2019
Debt Instrument [Line Items]
Aggregate principal amount	$ 719,875,000		$ 540,375,000
Convertible senior notes \| 2025 Notes
Debt Instrument [Line Items]
Aggregate principal amount	$ 402,500,000		$ 0
Conversion price (in usd per share)	$ 31.17	$ 31.17

Earnings Per Share - Reconciliation of Basic and Diluted EPS Calculations (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended				6 Months Ended
	Jun. 27, 2020	Mar. 28, 2020	Jun. 29, 2019	Mar. 30, 2019	Jun. 27, 2020	Jun. 29, 2019
Earnings Per Share [Abstract]
Net income (loss)	$ (43,833)	$ 9,742	$ 10,257	$ 17,429	$ (34,091)	$ 27,686
Weighted average shares outstanding for basic EPS (shares)	80,325		78,318		80,226	78,262
Effect of dilutive securities:
Stock options (shares)	0		3,059		0	3,135
Restricted stock (shares)	0		47		0	40
Weighted average shares outstanding for diluted EPS	80,325		81,424		80,226	81,437
Basic EPS (in usd per share)	$ (0.55)		$ 0.13		$ (0.42)	$ 0.35
Diluted EPS (in usd per share)	$ (0.55)		$ 0.13		$ (0.42)	$ 0.34
Options and RSUs
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive options, RSUs outstanding excluded from EPS (shares)	2,458		391		2,512	391

Restricted Cash (Details) - USD ($) $ in Thousands	Jun. 27, 2020	Dec. 28, 2019	Jun. 29, 2019	Dec. 29, 2018
Reconciliation of cash, cash equivalents, and restricted cash
Cash and cash equivalents	$ 256,292	$ 39,342	$ 82,779
Restricted cash included in other assets	1,341		1,086
Total cash, cash equivalents and restricted cash	$ 257,633	$ 40,307	$ 83,865	$ 17,998

Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 27, 2020	Jun. 29, 2019	Jun. 27, 2020	Jun. 29, 2019
Accumulated Other Comprehensive Loss, Net of Tax [Roll Forward]
Beginning balance	$ 786,160	$ 762,580	$ 776,437	$ 743,154
Ending balance	820,939	774,434	820,939	774,434
Cash Flow Hedges
Accumulated Other Comprehensive Loss, Net of Tax [Roll Forward]
Beginning balance	(10,416)	(3,757)	(3,814)	(2,810)
Other comprehensive income (loss) before reclassification	(360)	(3,132)	(11,041)	(5,320)
Tax effect of other comprehensive income (loss) before reclassification	92	803	2,813	1,364
Amount reclassified from AOCL into interest expense	4,471	886	6,294	1,801
Tax effect of amount reclassified from AOCL into interest expense	(1,142)	(227)	(1,607)	(462)
Net current period other comprehensive income (loss), net of tax	3,061	(1,670)	(3,541)	(2,617)
Ending balance	$ (7,355)	$ (5,427)	$ (7,355)	$ (5,427)

- Definition

+ References + Details

Subsequent Events (Details) - Subsequent Event - Walmart	Jul. 17, 2020
Subsequent Event [Line Items]
Management and Services Agreement, extension (in years)	3 years
Management and Services Agreement, automatic renewal (in years)	3 years
Period of time prior to end of term for written notice of non-renewal (in months)	7 months