0001710155-22-000010 | 10-K | XBRL Viewer | National Vision Holdings INC

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Consolidated Balance Sheets - USD ($) $ in Thousands	Jan. 01, 2022	Jan. 02, 2021
Current assets:
Cash and cash equivalents	$ 305,800	$ 373,903
Accounts receivable, net	55,697	57,989
Inventories	123,669	111,274
Prepaid expenses and other current assets	29,410	23,484
Total current assets	514,576	566,650
Property and equipment, net	346,436	341,293
Other assets:
Goodwill	777,613	777,613
Trademarks and trade names	240,547	240,547
Other intangible assets, net	42,020	49,511
Right of use assets	354,900	340,141
Other assets	16,999	17,743
Total non-current assets	1,778,515	1,766,848
Total assets	2,293,091	2,333,498
Current liabilities:
Accounts payable	64,331	64,861
Other payables and accrued expenses	119,323	110,309
Unearned revenue	29,895	32,657
Deferred revenue	65,325	58,899
Current maturities of long-term debt and finance lease obligations	3,999	3,598
Current operating lease obligations	60,930	58,356
Total current liabilities	343,803	328,680
Long-term debt and finance lease obligations, less current portion and debt discount	566,081	651,763
Non-current operating lease obligations	342,241	327,371
Other non-current liabilities:
Deferred revenue	23,166	20,828
Other liabilities	8,974	17,415
Deferred income taxes, net	82,846	80,939
Total other non-current liabilities	114,986	119,182
Commitments and contingencies
Stockholders’ equity:
Common stock, $0.01 par value; 200,000 shares authorized; 83,840 and 82,183 shares issued as of January 1, 2022 and January 2, 2021, respectively; 81,405 and 81,239 shares outstanding as of January 1, 2022 and January 2, 2021, respectively	838	821
Additional paid-in capital	750,478	795,697
Accumulated other comprehensive loss	(1,940)	(4,400)
Retained earnings	278,395	142,880
Treasury stock, at cost; 2,435 and 944 shares as of January 1, 2022 and January 2, 2021, respectively	(101,791)	(28,496)
Total stockholders’ equity	925,980	906,502
Total liabilities and stockholders’ equity	$ 2,293,091	$ 2,333,498

Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Thousands	Jan. 01, 2022	Aug. 07, 2019
Statement of Financial Position [Abstract]
Common stock, par value (in usd per share)	$ 0.01	$ 0.01
Treasury stock, at cost (shares)	2,435

Consolidated Statements of Operations and Comprehensive Income - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
Revenue:
Total net revenue	$ 2,079,525	$ 1,711,760	$ 1,724,331
Costs applicable to revenue (exclusive of depreciation and amortization):
Total costs applicable to revenue	904,779	786,624	806,519
Operating expenses:
Selling, general and administrative expenses	900,798	724,985	744,488
Depreciation and amortization	97,089	91,585	87,244
Asset impairment	4,427	22,004	8,894
Other expense (income), net	(2,505)	(445)	3,611
Total operating expenses	999,809	838,129	844,237
Income from operations	174,937	87,007	73,575
Interest expense, net	25,612	48,327	33,300
Loss on extinguishment of debt	0	0	9,786
Earnings before income taxes	149,325	38,680	30,489
Income tax provision (benefit)	21,081	2,403	(2,309)
Net income	$ 128,244	$ 36,277	$ 32,798
Earnings per share:
Basic (in usd per share)	$ 1.57	$ 0.45	$ 0.42
Diluted (in usd per share)	$ 1.43	$ 0.44	$ 0.40
Weighted average shares outstanding:
Basic (shares)	81,820	80,565	78,608
Diluted (shares)	96,134	82,793	81,683
Comprehensive income:
Net income	$ 128,244	$ 36,277	$ 32,798
Unrealized gain (loss) on hedge instruments	6,158	(780)	(1,350)
Tax provision (benefit) of unrealized gain (loss) on hedge instruments	3,698	(194)	(346)
Comprehensive income	130,704	35,691	31,794
Products
Revenue:
Total net revenue	1,718,344	1,418,283	1,426,136
Costs applicable to revenue (exclusive of depreciation and amortization):
Total costs applicable to revenue	633,116	551,783	574,351
Services and plans
Revenue:
Total net revenue	361,181	293,477	298,195
Costs applicable to revenue (exclusive of depreciation and amortization):
Total costs applicable to revenue	$ 271,663	$ 234,841	$ 232,168

Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands	Total	Cumulative effect of change in accounting principle	Balances, as adjusted	Common Stock	Common Stock Balances, as adjusted	Additional Paid-In Capital	Additional Paid-In Capital Cumulative effect of change in accounting principle	Additional Paid-In Capital Balances, as adjusted	Accumulated Other Comprehensive Loss	Accumulated Other Comprehensive Loss Balances, as adjusted	Retained Earnings	Retained Earnings Cumulative effect of change in accounting principle	Retained Earnings Balances, as adjusted	Treasury Stock	Treasury Stock Balances, as adjusted
Beginning balance (shares) at Dec. 29, 2018				78,167,000	78,167,000
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)				2,357,000
Issuance of common stock	15,090			$ 23		15,067
Stock based compensation	12,551					12,551
Purchase of treasury stock (shares)				(846,000)
Purchase of treasury stock	(25,646)													(25,646)
Unrealized gain (loss) on hedge instruments, net of tax	(1,004)								(1,004)
Net income	32,798										32,798
Ending balance (shares) at Dec. 28, 2019				79,678,000	79,678,000
Ending 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)				1,580,000
Issuance of common stock	13,591			$ 16		13,575
Stock based compensation	10,616					10,616
Purchase of treasury stock (shares)				(19,000)
Purchase of treasury stock	(689)													(689)
Conversion option related to convertible senior notes, net of allocated costs and tax	71,385					71,385
Unrealized gain (loss) on hedge instruments, net of tax	(586)								(586)
Net income	36,277										36,277
Ending balance (shares) at Jan. 02, 2021				81,239,000	81,239,000
Ending balance at Jan. 02, 2021	906,502	$ (64,114)	$ 842,388	$ 821	$ 821	795,697	$ (71,385)	$ 724,312	(4,400)	$ (4,400)	142,880	$ 7,271	$ 150,151	(28,496)	$ (28,496)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock (shares)				1,657,000
Issuance of common stock	11,482			$ 17		11,465
Stock based compensation	$ 14,701					14,701
Purchase of treasury stock (shares)	(1,400,000)			(1,491,000)
Purchase of treasury stock	$ (73,295)													(73,295)
Unrealized gain (loss) on hedge instruments, net of tax	2,460								2,460
Net income	128,244										128,244
Ending balance (shares) at Jan. 01, 2022				81,405,000
Ending balance at Jan. 01, 2022	$ 925,980			$ 838		$ 750,478			$ (1,940)		$ 278,395			$ (101,791)

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
Cash flows from operating activities:
Net income	$ 128,244	$ 36,277	$ 32,798
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation and amortization	97,089	91,585	87,244
Amortization of debt discount and deferred financing costs	4,321	11,895	1,289
Asset impairment	4,427	22,004	8,894
Deferred income tax expense (benefit)	16,701	(233)	(2,378)
Stock based compensation expense	14,886	10,740	12,670
Losses (gains) on change in fair value of derivatives	(3,286)	4,014	0
Inventory adjustments	2,481	4,852	4,352
Loss on extinguishment of debt	0	0	9,786
Other	94	5,092	16,078
Changes in operating assets and liabilities:
Accounts receivable, net	1,182	(13,697)	(6,925)
Inventories	(14,876)	11,430	(15,886)
Operating lease right of use assets and liabilities	(41)	1,518	(716)
Other assets	(6,456)	(8,096)	5,939
Accounts payable	(530)	24,079	(2,860)
Deferred and unearned revenue	6,002	6,982	5,829
Other liabilities	8,700	26,539	8,967
Net cash provided by operating activities	258,938	234,981	165,081
Cash flows from investing activities:
Purchase of property and equipment	(95,515)	(76,823)	(101,325)
Other	2,618	413	694
Net cash provided by (used for) investing activities	(92,897)	(76,410)	(100,631)
Cash flows from financing activities:
Borrowings on long-term debt, net of discounts	0	548,769	566,550
Repayments on long-term debt	(167,375)	(369,269)	(591,925)
Proceeds from issuance of common stock	11,838	13,105	14,767
Purchase of treasury stock	(73,295)	(689)	(25,646)
Payments of debt issuance costs	(900)	(12,439)	(2,930)
Payments on finance lease obligations	(4,592)	(3,196)	(2,957)
Net cash provided by (used for) financing activities	(234,324)	176,281	(42,141)
Net change in cash, cash equivalents and restricted cash	(68,283)	334,852	22,309
Cash, cash equivalents and restricted cash, beginning of year	375,159	40,307	17,998
Cash, cash equivalents and restricted cash, end of year	306,876	375,159	40,307
Supplemental cash flow information:
Cash paid for interest	24,897	30,786	33,935
Cash paid for taxes	10,428	894	684
Capital expenditures accrued at the end of the period	$ 10,571	$ 8,455	$ 9,059

Business and Significant Accounting Policies

12 Months Ended

Jan. 01, 2022

Accounting Policies [Abstract]

Business and Significant Accounting Policies

Nature of Operations

National Vision Holdings, Inc. (“NVHI,” the “Company,” “we,” “our,” or “us”) is a holding company whose operating subsidiaries include its indirect wholly owned subsidiary, National Vision, Inc. (“NVI”) and NVI’s direct wholly owned subsidiaries. We are a leading value retailer of eyeglasses and contact lenses in the United States. We operated 1,278 and 1,205 retail optical locations in the United States and its territories as of the fiscal years ended January 1, 2022 and January 2, 2021, respectively, through our five store brands, including America’s Best Contacts and Eyeglasses (“America’s Best”), Eyeglass World, Vista Optical locations on select U.S. Army/Air Force military bases (“Military”) and within select Fred Meyer stores, and our management & services arrangement with Walmart (“Legacy”).

We sell contact lenses and optical accessory products to retail customers through proprietary retail web sites and web sites on behalf of certain independent retailers and insurance companies. We also distribute contact lenses to Walmart and Sam’s Club store locations.

We also operate a specialized health maintenance organization (“HMO”) that is licensed as a single-service health plan under California law. The HMO issues individual vision plans in connection with our America’s Best operations in California, and provides, or arranges for the provision of, optometric services at the offices next to certain Walmart stores throughout California.

Fiscal Year

We operate on a retail fiscal calendar that results in a given fiscal year consisting of a 52- or 53-week period ending on the Saturday closest to December 31. In a 52-week fiscal year, each quarter contains 13 weeks of operations; in a 53-week fiscal year, each of the first, second and third quarters include 13 weeks of operations and the fourth quarter includes 14 weeks of operations.

References herein to “fiscal year 2021,” and “fiscal year 2019,” relate to the 52 weeks ended January 1, 2022 and December 28, 2019, respectively, and references to “fiscal year 2020,” relate to the 53 weeks ended January 2, 2021. Unless otherwise stated, references to years in this report relate to fiscal years rather than calendar years.

Basis of Presentation and Principles of Consolidation

We prepare our consolidated financial statements in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The consolidated financial statements include our accounts and those of our subsidiaries, all of which are wholly-owned. All intercompany balances and transactions have been eliminated in consolidation. Certain fiscal year 2020 and fiscal year 2019 amounts within the Consolidated Statements of Cash Flows, Consolidated Statements of Operations and footnotes to the financial statements have been reclassified to conform to the fiscal year 2021 presentation.

The Company has consolidated certain entities meeting the definition of a variable interest entity (“VIE”) as the Company concluded that it is the primary beneficiary of the entities under the provisions of Accounting Standards Codification 810, Consolidation. At January 1, 2022, the variable interest entities include 30 professional corporations. The total assets of the consolidated VIEs included in the accompanying Consolidated Balance Sheets as of year-end 2021 and 2020, were $6.0 million and $5.9 million, respectively, and the total liabilities of the consolidated VIEs were $6.8 million and $11.4 million, respectively.

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.

Secondary Public Offerings and Share Repurchases

On August 7, 2019, the Company entered into an Underwriting Agreement by and among the Company, KKR Vision Aggregator L.P. (the “Selling Stockholder”), and Goldman Sachs & Co. LLC, as underwriter (the “Underwriter”), relating to an underwritten offering of 9,149,908 shares of the Company’s common stock, par value $0.01 per share. The offering was completed on August 12, 2019. In connection with the offering, our Board of Directors authorized, and the Company completed, a repurchase of 819,134 shares out of the 9,149,908 shares of common stock subject to the offering from the Underwriter at $30.52 per share, which was the price the Underwriter purchased the shares from the Selling Stockholder in the offering. The Company did not receive any proceeds from the offering. As a result of this underwritten offering and concurrent share repurchase, the Selling Stockholder no longer owned any shares of our common stock.

The secondary offering constituted a vesting event whereby a final portion of the performance-based options vested and the remaining portion of unvested performance options awarded under the 2014 Stock Incentive Plan was forfeited. As a result of the offering, we incurred $4.2 million of non-cash stock-based compensation expense and additionally recorded $2.8 million in long-term cash incentive compensation expense and $0.4 million in offering related SG&A expenses for fiscal year 2019.

Effective November 8, 2021, the Company's Board of Directors authorized the Company to repurchase up to $50 million aggregate amount of shares of the Company's common stock. On November 29, 2021, the Company’s Board of Directors authorized an increase from $50 million to $100 million in aggregate amount of shares of the Company’s common stock that may be repurchased under the Company’s current share repurchase program. On February 23, 2022, our Board of Directors authorized a $100 million increase to the share repurchase authorization, for a total authorization of $200 million. Repurchases may be made from time to time in the Company’s discretion through one or more open market or privately negotiated transactions, and pursuant to pre-set trading plans meeting the requirements of all applicable securities laws and regulations. Shares may be repurchased under the program through December 30, 2023. The timing and amounts of any such repurchases will depend on a variety of factors, including the market price of the Company’s shares and general market and economic conditions. The Company expects to fund the share repurchases using cash on hand. During fiscal year 2021, the Company repurchased 1.4 million shares of its common stock for $69.9 million under the share repurchase program. After these repurchases, $130 million remains available under the share repurchase authorization. Repurchased shares are reflected in Treasury stock on the Consolidated Balance Sheets.

Related Party Transactions

During fiscal year 2019, KKR Capital Markets LLC acted as a lead arranger with respect to debt issuance and refinancing transactions, and received $1.0 million in fees, in connection therewith.

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 Prepaid expenses and other assets as of January 2, 2021. 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 ($6.4 million tax impact) as of January 2, 2021. In addition, as a result of the employee retention credits made available under the CARES Act for U.S. associates the Company recognized $0.4 million as a reduction to costs of products, $6.2 million as a reduction to costs of services and plans, and $4.4 million as a reduction to SG&A during fiscal year 2020. The Company recognizes government grants for which there is a reasonable assurance of compliance with grant conditions and receipt of credits. We elected to offset credits recognized under the CARES against payroll taxes that would otherwise be payable.

In addition to the CARES Act, the Consolidated Appropriations Act, 2021, H.R. 133 was signed into law on December 27, 2020 and, among other things, allows for 100% deductibility of meals and entertainment expenses for the tax years ending in 2021 and 2022.

Cash and Cash Equivalents

Cash consists of currency and demand deposits with financial institutions and money market funds. We consider all highly liquid investments with an original maturity of three months or less at the date of purchase to be cash equivalents. We also review cash balances on a bank by bank basis to identify book overdrafts. Book overdrafts occur when the amount of outstanding checks exceed the cash deposited at a bank. We reclassify book overdrafts, if any, to Accounts payable in the accompanying Consolidated Balance Sheets.

Accounts Receivable, Net

Accounts receivable associated with revenues consist primarily of trade receivables and credit card receivables. Trade receivables consist primarily of receivables from managed care payors and receivables from major retailers. While we have relationships with almost all vision care insurers in the 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 Consolidated Statements of Operations, was approximately $0.8 million, $0.7 million and $8.2 million for the fiscal years 2021, 2020 and 2019, respectively.

Inventories

The cost of inventory is determined using the weighted average cost method. Inventories at retail stores consist of finished goods and are valued at the lower of cost or estimated net realizable value (“NRV”). Manufactured inventories are valued using absorption accounting which includes material, labor, other variable costs and other applicable manufacturing overhead. Inventory values are adjusted for estimated obsolescence and written down to NRV based on estimates of current and anticipated demand, customer preference, merchandise age, planned promotional activities, contact lens vendor return acceptance activity, and estimates of future retail sales prices. Shrinkage is estimated and recorded throughout the period in cost of sales based on historical results and current inventory levels. Actual shrinkage is recorded throughout the year based upon periodic physical counts. See Note 2. “Details of Certain Balance Sheet Accounts” for further details.

The Company’s inventory consists primarily of contact lenses, eyeglass frames and unprocessed eyeglass lenses. A significant portion of our inventory is supplied by a small number of key vendors. During fiscal year 2021, 92% of contact lens expenditures were with three vendors and 90% of lens expenditures were with one vendor. This exposes us to vendor concentration risk. We are less exposed to a supplier risk for our eyeglass frames as only 57% of frame expenditures were with two vendors.

Property and Equipment

Property and equipment (“P&E”) is stated at cost less accumulated depreciation. Depreciation associated with P&E is included in Depreciation and amortization in the accompanying Consolidated Statements of Operations. When we retire or otherwise dispose of P&E, we remove the cost and related accumulated depreciation from our accounts and recognize any gain or loss on the sale of such assets in SG&A in the Consolidated Statements of Operations. We capitalize major replacements and remodeling, and recognize expenditures for maintenance and repairs in SG&A.

We depreciate P&E for financial accounting purposes using the straight-line method over the following estimated useful lives:


Buildings			34 years

Equipment			3 - 7 years
Information technology hardware and software (a)			2 - 5 years
Furniture and fixtures			6 years
Leasehold improvements(b)			5 - 10 years
P&E under finance leases (b)			10 years
____________
(a)Costs of developing or obtaining software for internal use, such as direct costs of materials or services and internal payroll costs related to the software development projects, are capitalized to information technology hardware and software. (b)Depreciation of leasehold improvements is recognized over the shorter of the estimated useful life of the asset or the term of the lease. The term of the lease includes renewal options for additional periods if the exercise of the renewal is considered to be reasonably assured.

Goodwill and Intangible Assets

Indefinite-lived intangible assets include goodwill and our trademarks and tradenames; we evaluate these assets annually for impairment, or more frequently if events and circumstances indicate that it is more likely than not that goodwill is impaired. Our annual testing date for impairment of goodwill and indefinite-lived intangible assets is the first day of the fourth fiscal quarter, which for fiscal years 2021 and 2020 was October 3, 2021, and September 27, 2020, respectively. Costs to renew intangible assets are expensed as incurred.

Finite-lived, amortizing intangible assets primarily consist of our contracts and relationships with certain retailers and our customer database tool. We amortize finite-lived intangible assets on a straight-line basis over their estimated useful lives, ranging from four to 23 years. Amortization expense associated with finite-lived intangible assets is included in Depreciation and amortization in the accompanying Consolidated Statements of Operations.

Goodwill is impaired if a reporting unit’s carrying value exceeds its fair value, and impairment is calculated as the excess between carrying value over fair value. We consider each of our operating segments to be reporting units. We estimate the fair value of our reporting units using the income approach, which is based on a discounted cash flow analysis and calculate the fair value of reporting units by estimating after-tax cash flows discounted using a weighted average cost of capital. The cash flows used in the analysis are based on financial forecasts developed internally by management and require significant judgment. The significant unobservable inputs used in the fair value measurement of the reporting units are revenue growth rate, cost of sales, payroll expense growth rate and other store expenses growth rate. These assumptions are sensitive to future changes in the business profitability, changes in our business strategy and external market conditions, among other factors. A decrease to the long term revenue growth rate assumption or an increase to the expense growth rate assumptions could require us to record goodwill impairment charges.

If impairment indicators related to amortizing intangible assets are present, we estimate cash flows expected to be generated over the remaining useful lives of the related assets based on current projections. If the projected net undiscounted cash flows are less than the carrying value of the related assets, we then measure impairment based on a discounted cash flow model and record an impairment charge as the excess of carrying value over estimated fair value.

We use the relief-from-royalty method to estimate fair value of our trademarks and tradenames, which involves estimating a royalty rate based on comparable licensing arrangements, applying that rate to the revenue projections for the subject asset, and then estimating fair value using a discounted cash flow analysis. We record an impairment charge as the excess of carrying value over estimated fair value.

See Note 3. “Goodwill and Intangible Assets” for further detail on impairment of goodwill and intangible assets.

Equity Method Investment

The Company previously had an investment in a private start-up company whose principal business is licensing software to eyeglass retailers. During fiscal year 2021, the Company’s equity method investee was acquired by a third party and in connection therewith the Company sold all of its ownership interests and received $2.4 million upon the consummation of the sale. These proceeds were included in Other in the investing section of the Consolidated Statements of Cash Flows for fiscal year 2021. As a result of this transaction, and as the carrying value of the investment was zero, the Company recorded a gain on sale of equity method investment of $2.4 million in Other expense (income), net on the Consolidated Statements of Operations for fiscal year 2021. In connection with the transaction, the Company is a party to an earnout agreement whereby we may be entitled to variable earnout payments based upon the achievement by the investee of certain performance metrics over a one year period. The Company will recognize income for payments received under the earnout once they are realized or realizable.

Fair Value Measurement of Assets and Liabilities

The Company accounts for certain assets and liabilities at fair value. The Company generally uses a market approach, when practicable, in valuing financial instruments. For certain assets the Company may also use a valuation technique consistent with the income approach whereby future cash flows are converted to a single discounted amount. The carrying value of the Company’s cash equivalents and restricted cash, accounts receivables, accounts payable and other payables and accrued expenses, approximate fair value due to their short-term nature.

Non-financial assets such as P&E, ROU assets and intangible assets are subject to nonrecurring fair value measurements if impairment indicators are present. Factors we consider important that could trigger an impairment review include a significant under-performance compared to expected operating results, a significant or adverse change in customer business climate, and a significant negative industry or economic trend.

Refer to “Long-lived Asset Impairment” section below and Note 9. “Fair Value Measurement” for the Company’s recurring and non-recurring fair value measurements.

Deferred Financing Costs and Loan Discounts

Costs incurred in connection with long-term debt which are paid directly to the Company’s lenders and to third parties are presented as reductions to our long-term debt balance, except for the costs related to our revolving credit facility which are presented as assets. These costs are amortized over the term of the related financing agreement and included in Interest expense, net in the accompanying Consolidated Statements of Operations.

Self-Insurance Liabilities

We are primarily self-insured for workers’ compensation, associate health benefits and general liability claims. We record self-insurance liabilities based on claims filed, including the development of those claims and an estimate of claims incurred but not yet reported. Should a different amount of claims occur compared to what was estimated, or costs of the claims increase or decrease beyond what was anticipated, liabilities may need to be adjusted accordingly. We periodically update our estimates and record such adjustments in the period in which such determination is made. Self-insurance liabilities are recorded on an undiscounted basis in the accompanying Consolidated Balance Sheets. Refer to the following table and Note 2. “Details of Certain Balance Sheet Accounts” for further details.

We reinsure worker’s compensation and medical claims above our retention levels with a highly rated financial institution that can be expected to fully perform under the terms of the arrangement. Estimated recoveries from reinsurance as of fiscal year end 2021 and 2020 are shown in the following table.


In thousands		Balance Sheet Classification	As of January 1, 2022		As of January 2, 2021
	Current portion	Prepaid Expenses and Other Current Assets	$	964	$	1,139
	Non-current portion	Other Assets	1,956		2,313
Total estimated recoveries from reinsurance			$	2,920	$	3,452

Derivative Financial Instruments

The Company uses interest rate derivatives to manage the exposure of its LIBOR-based debt to fluctuations in interest rates. If our derivatives are designated as cash flow hedges, we formally document our hedge relationships, including identification of the hedging instruments and the hedged items, as well as our risk management objectives and strategies for undertaking the hedge transactions. We record all interest rate derivatives in our Consolidated Balance Sheets on a gross basis at fair value. Fair value represents estimated amounts we would receive or pay upon a termination of interest rate derivatives prior to their scheduled expiration dates. The fair value was based on information that is model-driven and whose inputs were observable (Level 2 inputs) such as LIBOR forward rates. We do not hold or enter into financial instruments for trading or speculative purposes.

The gain or loss resulting from fair value adjustments for highly effective cash flow hedges is recorded in Accumulated other comprehensive loss (“AOCL”) in the accompanying Consolidated Balance Sheets until the hedged item is recognized as interest expense in the Consolidated Statements of Operations. The gain or loss resulting from fair value adjustments of derivatives not deemed to be highly effective cash flow hedges is recognized in interest expense immediately. We perform periodic assessments of the effectiveness of our derivative contracts designated as hedges.

To manage credit risk associated with our interest rate hedging program, we select as counterparties major financial institutions with investment grade credit ratings. The impact of credit risk, as well as the ability of each party to fulfill its obligations under our derivative financial instruments, is considered in determining the fair value of the contracts. We do not have any credit risk-related contingent features or collateral requirements associated with our derivative contracts. See Note 12. “Interest Rate Derivatives” for further details.

Accumulated Other Comprehensive Loss

AOCL is defined as the change in equity of a business enterprise during a period from transactions and other events and circumstances from non-owner sources. Accumulated other comprehensive loss, net of income tax, is entirely composed of the cumulative unrealized loss on our previously effective hedging instruments. See Note 15. “Accumulated Other Comprehensive Loss” for details of reclassifications out of AOCL.

Revenue Recognition

Net product sales include sales of prescription and non-prescription eyewear, contact lenses and related accessories to retail customers (including those covered by managed care) and sales of inventory in which our customer is another retail entity. Net sales of services and plans include sales of eye exams, eye care club membership fees, product protection plans (i.e. warranties) and HMO vision plan fees. Net sales of services and plans also include fees we earn for managing certain Vision Centers located in Walmart stores and performing laboratory processing services for our Legacy partner.

At our America’s Best brand, our signature offer is two pairs of eyeglasses and a free eye exam for one low price (“two-pair offer”). Since an eye exam is a key component in the ability for acceptable prescription eyewear to be delivered to a customer, we concluded that the eye exam service, while capable of being distinct from the eyeglass product delivery, was not distinct in the context of the two-pair offer. As a result, we do not allocate revenue to the eye exam associated with the two-pair offer, and we record all revenue associated with the offer in Owned & Host net product sales when the customer has received and accepted the merchandise.

Our retail customers generally make payments for prescription eyewear products at the time they place an order. Amounts we collect in advance for undelivered merchandise are reported as Unearned revenue in the accompanying Consolidated Balance Sheets. Unearned revenue at the end of a reporting period is estimated based on processing and delivery times throughout the current month which generally range from approximately seven to 10 days; all unearned revenue at the end of a reporting period is recognized in the next fiscal period.

Revenue is recognized net of sales taxes and returns and include amounts billed to customers related to shipping and handling costs. The returns allowance is based on historical return patterns. Provisions for estimated returns are established and the expected costs continue to be recognized as reductions to revenue when the products are sold. Shipping and handling costs are accounted for as fulfillment costs and are included in costs applicable to revenue.

We record reductions in revenue for estimated price concessions granted to managed care providers. The Company considers its revenue from managed care customers to include variable consideration and estimates such amounts associated with managed care customer revenues using the history of concessions provided and cash receipts from managed care providers. We reduced our net revenue for variable considerations of $10.2 million and $7.5 million during the fiscal years 2021 and 2020, respectively.

Refer to Note 7. “Revenue from Contracts With Customers” for further details of our revenues.

Costs Applicable To Revenue

Costs applicable to revenue consist primarily of cost of products sold and costs of administering services and plans. Costs of products sold include (i) costs to procure non-prescription eyewear, contacts and accessories which we purchase and sell in their finished form, (ii) costs to manufacture finished prescription eyeglasses, including direct materials, labor and overhead and (iii) remake costs, warehousing and distribution expenses and internal transfer costs. Costs of services and plans include costs associated with warranty programs, eye care club memberships, HMO vision plan fees, eye care practitioner and eye exam technician payroll, taxes and benefits and optometric and other service costs. Depreciation and amortization are excluded from costs applicable to revenue and are presented separately on the accompanying Consolidated Statements of Operations.

As a component of the Company’s procurement program, the Company frequently enters into contracts with its vendors that provide for payments of rebates or other allowances. These vendor payments are reflected when earned or as progress is made toward earning the rebate or allowance and, depending on the terms of the agreement with the vendor, are treated either as a reduction of the carrying value of the inventory and a resultant reduction of cost of products. Rebates that have been earned but not yet received are recognized as an increase to Accounts receivable, net or a reduction to Accounts payable, depending on the nature of the agreement with the vendor, until the payment has been received.

Selling, General and Administrative

SG&A includes store associate (including optician) payroll, taxes and benefits, occupancy and other store expenses, advertising and promotion, field services, and corporate support. Advertising and promotion costs, including online marketing arrangements, newspaper, direct mail, television and radio, are recorded in SG&A and expensed at the time the advertising first occurs. Production costs of future media advertising and related promotional campaigns are deferred until the advertising events occur. Non-capital expenditures associated with opening new stores, including rent, marketing expenses, travel and relocation costs, and training costs, are recorded in SG&A as incurred. Certain vendor contracts provide for marketing co-op allowances, such allowances are reflected when earned or as progress is made toward earning the allowance and are treated as a reduction of SG&A.

Advertising expenses were $149.6 million, $86.5 million and $113.3 million for fiscal years 2021, 2020 and 2019, respectively.

Leases

We lease our stores, distribution centers, corporate offices, and most of our laboratories. These leases generally have noncancelable lease terms of between five 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 the greater of fixed rent or 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 arrangements frequently include tenant improvement allowances (TIAs), which are contractual amounts received or receivable 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 Sheet as of fiscal year 2021 and are amortized as a reduction in rental expense over the life of the respective leases. 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.

The lease liability is measured at the present value of future lease payments over the lease term less TIAs receivable, and the ROU asset is measured at the lease liability amount, adjusted for prepaid lease payments, TIAs received and the lessee’s initial direct costs. As the rate implicit in the Company’s leases is not easily determinable, the Company’s incremental borrowing rate is used in calculating the present value of the sum of the lease payments. Factors incorporated into the calculation of the lease incremental borrowing rate include lease term, borrowing rates on the Company’s long-term debt, fixed rates on interest rate swaps, LIBOR margins for issuers of similar credit rating to NVI and effect of collateralization.

For finance leases, a lease ROU asset is recorded as property and equipment and corresponding amounts are recorded as finance lease debt obligations at the net present value of the minimum lease payments to be made over the lease term for new finance leases.

Stock-Based Compensation

We measure stock-based compensation cost, which consists of grants of stock options, restricted stock units (“RSUs”), performance stock units (“PSUs”), and restricted stock awards (“RSAs”) to associates and non-associate directors, based on the estimated grant date fair value of the awards. We recognize compensation expense for all awards containing only a service requirement over the requisite service period using a straight-line recognition method. Our PSUs contain both a service requirement and a performance requirement. We recognize expense for the proportionate share of the total fair value of PSUs related to the vesting period that has already lapsed for the shares expected to vest, which expectation is based on an evaluation of expected performance against predefined performance criteria and may also result in reversals of expense. The remaining fair value of the shares expected to vest is expensed on a straight-line basis over the balance of the vesting period. We account for forfeitures as they occur. See Note 5. “Stock Incentive Plan” for further details related to our stock-based compensation plans.

Long-lived Asset Impairment

Non-financial assets such as P&E, right of use (“ROU”) assets and intangible assets are subject to nonrecurring fair value measurements if impairment indicators are present. We evaluate impairment of long-lived tangible and ROU store assets at the store level, which is the lowest level at which independent cash flows can be identified, when events or conditions indicate the carrying values of such assets may not be recoverable. In making this evaluation, we may consider multiple factors including financial performance of the stores, regional and local business climates, industry or economic trends, future plans for the store operations and other qualitative factors. If the store’s projected undiscounted net cash flows expected to be generated by the related assets over the life of the primary asset within the asset group are less than the carrying value of the subject assets, we determine an estimate of the fair value of the asset group using an income approach based on discounted cash flows, which require estimates and assumptions related to forecasted store revenue growth rates and store profitability. If the fair value of the asset group is less than its carrying value, the loss is allocated to the long-lived assets of the group on a pro rata basis using the relative carrying amounts of those assets, except that the loss allocated to an individual long lived asset of the group shall not reduce the carrying amount of that asset below its fair value. We consider market-based indications of prevailing rental rates for retail space, market participant discount rates, and lease incentives when estimating the fair values of ROU assets.

We assess non-store long-lived assets, including capitalized software costs in use or under development, for impairment if events or changes in circumstances indicate that the carrying value of those assets may not be recoverable. The asset impairments recognized in fiscal years 2021 and 2020 include $0.8 million and $1.1 million, respectively, related to a write-off of certain capitalized software costs that were deemed to be obsolete due to a decision to cease further development. During fiscal year 2019 there was no impairment of non-store long-lived assets or capitalized software costs.

Income Taxes

We account for deferred income taxes based on the asset and liability method. The Company must make certain estimates and judgments in determining income tax expense. We are required to determine the aggregate amount of income tax expense to accrue and the amount which will be currently payable or refundable based upon tax statutes of each jurisdiction in which the Company does business. Deferred income taxes are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets also include future tax benefits to be derived from the utilization of tax loss carry-forwards and application of certain carry-forward credits. The net carrying amount of deferred income tax assets and liabilities is recorded in non-current deferred income tax liabilities in the accompanying Consolidated Balance Sheets.

Deferred income taxes are measured using enacted tax rates in effect for the years in which those differences are expected to be recovered or settled. The effect on deferred taxes from a change in the tax rate is recognized through continuing operations in the period that includes the enactment of the change. Changes in tax laws and rates could affect recorded deferred tax assets and liabilities in the future.

A valuation allowance is recorded if it is more likely than not that some portion of a deferred tax asset will not be realized. Valuation allowances are released as positive evidence of future taxable income sufficient to realize the underlying deferred tax assets becomes available.

We establish a liability for tax positions for which there is uncertainty as to whether the position will ultimately be sustained. We assess our tax positions by determining whether it is more likely than not that the position will be sustained upon examination by the appropriate taxing authorities, including resolution of any related appeals or litigation, based solely on the technical merits of the position. These calculations and assessments involve estimates and judgments because the ultimate tax outcomes are uncertain and future events are unpredictable. See Note 6. “Income Taxes” for further details.

Adoption of New Accounting Pronouncements

Leases. In February 2016, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2016-02, Leases. This new guidance establishes a ROU model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases are classified as either finance or operating, with such classification affecting the pattern of expense recognition in the statement of operations. Disclosure of key information about leasing arrangements is also required.

We adopted ASU No. 2016-02, as amended, as of December 30, 2018 (the first day of fiscal year 2019), using the modified retrospective transition approach without adjusting the comparative periods presented. We elected the package of practical expedients permitted under the transition guidance within the new standard, which allowed us to carry forward historical lease classification for leases in existence as of the adoption date, to not assess whether any expired or existing contracts are leases or contain leases and to not assess whether unamortized initial direct costs for existing leases meet the definition of initial direct costs. In addition, we elected the practical expedients to not separate lease components from non-lease components and to not apply this new guidance to leases with terms of less than 12 months.

Upon adoption, we recorded operating lease liabilities of approximately $339.6 million as of December 30, 2018. The Company treated TIAs and deferred rent of $24.3 million and $11.9 million, respectively, as of December 30, 2018 as reductions of lease payments and prepaid rent of $5.8 million as of December 30, 2018 as an increase in lease payments used to measure ROU assets and recorded $308.5 million of lease ROU assets upon adoption. The difference between the additional lease assets and lease liabilities net of the deferred tax impact was $0.5 million, which was recorded as an adjustment to fiscal year 2019 opening retained earnings. Adoption of this new guidance did not result in significant changes to our results of operations or cash flows. See Note 8. “Leases” for additional information.

Other Comprehensive Income. In February 2018, the FASB issued Accounting Standards Update ASU 2018-02, Income Statement–Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income (“ASU 2018-02”). This guidance allows for an optional reclassification from accumulated other comprehensive income or loss to retained earnings for stranded tax effects as a result of the newly enacted federal corporate income tax rate under the 2017 Tax Cuts and Jobs Act enacted into law on December 22, 2017 (the “Tax Legislation”). This guidance is effective for interim and annual periods beginning after December 15, 2018, with early adoption permitted. We adopted the guidance during the first quarter of fiscal year 2019, and did not reclassify the stranded income tax benefit resulting from adoption of the Tax Legislation from AOCL into earnings. There were no other impacts to the Company’s financial condition, result of operations, or cash flows.

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). We obtain a variety of software solutions and tools through cloud computing arrangements. 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 (“ASU 2016-13”). 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 related to a note receivable from our former equity method investee. 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.

Convertible Instruments and Contracts in an Entity’s Own Equity. In August 2020, the FASB issued ASU No. 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity (“ASU 2020-06”). This new guidance simplifies and adds disclosure requirements for the accounting and measurement of convertible instruments and the settlement assessment for contracts in an entity’s own equity. The guidance also requires the application of the if-converted method to calculate the impact of convertible instruments on diluted earnings per share. ASU 2020-06 is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2021. The company early adopted the guidance in the first quarter of 2021 using the modified retrospective approach and recognized a cumulative effect of the change of $7.3 million as an adjustment to the opening balance of retained earnings. Upon adoption of ASU 2020-06 the Company eliminated the equity components related to its convertible debt and increased the related liability components by $82.9 million. In addition, as a result of the adoption, our deferred tax liabilities decreased by $18.8 million and additional paid-in capital decreased by $71.4 million.

The following table summarizes the impact of adoption on the Company’s Consolidated Statement of Operations for fiscal year 2021:


	Fiscal Year 2021
In thousands (except earnings per share)	With ASU 2020-06 Adoption		Without ASU 2020-06 Adoption (1)		Impact of Adoption (2)

Income from operations	$	174,937	$	174,937	$	—
Interest expense, net	25,612		41,635		(16,023)
Earnings before income taxes	149,325		133,302		16,023
Income tax provision	21,081		17,482		3,599
Net income	$	128,244	$	115,820	$	12,424

Weighted average shares outstanding for basic EPS	81,820		81,820		—
Weighted average shares outstanding for diluted EPS	96,134		83,222		12,912
Earnings per share:
Basic	$	1.57	$	1.42	$	0.15
Diluted	$	1.43	$	1.39	$	0.04
(1)Antidilutive shares are excluded from the computation of weighted average shares outstanding for diluted EPS. The 2025 Notes would have been antidilutive for the fiscal year ended 2021 without the adoption of ASU 2020-06 and are, therefore, excluded from the computation of diluted EPS. (2) Impact of adoption on basic earnings per share is calculated using impact on net income divided by basic weighted average shares outstanding during the period.

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.”) An entity may elect to apply the amendments for contract modifications as of any date from the beginning of an interim period that includes or is subsequent to March 12, 2020 through December 31, 2022. A substantial portion of our debt is subject to interest payments that are indexed to LIBOR; additionally, we are party to an interest rate derivative based on LIBOR. We are currently evaluating the effect of this guidance and have not applied the provisions of this guidance during the current fiscal year.

Details of Certain Balance Sheet Accounts

12 Months Ended

Jan. 01, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Details of Certain Balance Sheet Accounts

The following table provides a reconciliation of Cash and cash equivalents reported within the Consolidated Balance Sheets to the total of Cash, cash equivalents and restricted cash shown in the Consolidated Statement of Cash Flows:


In thousands	Fiscal Year 2021		Fiscal Year 2020		Fiscal Year 2019
Cash, cash equivalents and restricted cash:
Cash and cash equivalents	$	305,800	$	373,903	$	39,342
Restricted cash included in other assets	1,076		1,256		965
	$	306,876	$	375,159	$	40,307


In thousands	As of January 1, 2022		As of January 2, 2021
Accounts receivable, net:
Trade receivables	$	32,504	$	28,405
Credit card receivables	17,010		21,557
Other receivables	6,685		8,460
Allowance for credit losses	(502)		(433)
	$	55,697	$	57,989


In thousands	As of January 1, 2022		As of January 2, 2021
Inventories:
Raw materials and work in process (1)	$	65,262	$	55,473
Finished goods	58,407		55,801
	$	123,669	$	111,274
(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 January 1, 2022		As of January 2, 2021
Property and equipment, net:
Land and building	$	3,625	$	3,624
Equipment	225,726		207,265
Information technology hardware and software	137,261		129,008
Furniture and fixtures	63,582		56,277
Leasehold improvements	251,023		220,720
Construction in progress	35,106		23,859
Right of use assets under finance leases	36,235		36,757
	752,558		677,510
Less: Accumulated depreciation	(406,122)		(336,217)
	$	346,436	$	341,293


In thousands	As of January 1, 2022		As of January 2, 2021
Other payables and accrued expenses:
Associate compensation and benefits (1)	$	55,670	$	51,081
Self-insurance liabilities	9,034		8,650
Capital expenditures	10,571		8,455
Advertising	6,962		2,173
Reserves for customer returns and remakes	7,556		8,084
Legacy management & services agreement	5,518		5,386
Fair value of derivative liabilities	2,846		5,116
Supplies and other store support expenses	5,511		3,461
Litigation settlements	2,100		1,107
Lease concessions	357		3,142
Other	13,198		13,654
	$	119,323	$	110,309
(1) Includes CARES Act deferred employer payroll taxes in the amount of $0.0 million and $12.8 million as of January 1, 2022 and January 2, 2021, respectively.


In thousands	As of January 1, 2022		As of January 2, 2021
Other non-current liabilities:
Fair value of derivative liabilities	$	488	$	7,663
Self-insurance liabilities	6,170		7,046
Other	2,316		2,706
	$	8,974	$	17,415

Goodwill and Intangible Assets

12 Months Ended

Jan. 01, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

The gross carrying amount and accumulated impairment of the Company’s goodwill balances for 2021 and 2020 are as follows:


	As of January 1, 2022				As of January 2, 2021
In thousands	Gross Carrying Amount		Accumulated Impairment		Gross Carrying Amount		Accumulated Impairment
Owned & Host Segment	$	736,901	$	(19,357)	$	736,901	$	(19,357)
Legacy Segment	60,069		—		60,069		—
Corporate/Other	8,107		(8,107)		8,107		(8,107)
	$	805,077	$	(27,464)	$	805,077	$	(27,464)

Accumulated goodwill impairment relates to our Fred Meyer, Military and AC Lens reporting units.

Indefinite-lived intangible assets by major asset class are as follows:


In thousands	As of January 1, 2022		As of January 2, 2021
Trademarks and trade names:
America’s Best	$	200,547	$	200,547
Eyeglass World	40,000		40,000

	$	240,547	$	240,547

We intend to maintain our trademarks; renewals will take place as needed.

Finite-lived, amortizing intangible assets by major asset class are as follows:


	As of January 1, 2022					As of January 2, 2021
In thousands	Gross Carrying Amount		Accumulated Amortization		Remaining Life (Years)	Gross Carrying Amount		Accumulated Amortization		Remaining Life (Years)
Contracts and relationships:
Legacy	$	65,000	$	46,117	3	$	65,000	$	40,154	4
Fred Meyer	35,000		11,864		15	35,000		10,339		16
Customer database	4,400		4,400		—	4,400		4,400		—
Other	746		745		—	746		742		—
	$	105,146	$	63,126		$	105,146	$	55,635

We extended our relationship with Walmart in fiscal year 2020. Refer to Note 14. “Segment Reporting” for more information. We are in the process of renewing our agreement with Fred Meyer and intend to maintain our intangible assets.

Aggregate amortization expense is included in Depreciation and amortization in the accompanying Consolidated Statements of Operations. Aggregate future estimated amortization expense is shown in the following table:


Fiscal Year	In thousands
2022	$	7,490
2023	7,488
2024	7,488
2025	2,519
2026	1,525
Thereafter	15,510
	$	42,020

Long-term Debt

12 Months Ended

Jan. 01, 2022

Debt Disclosure [Abstract]

Long-term Debt

Long-term debt consists of the following:


In thousands	As of January 1, 2022		As of January 2, 2021
2025 Notes, due May 15, 2025	$	402,500	$	402,500
Term loan, due July 18, 2024	150,000		317,375
Revolving credit facility, due July 18, 2024	—		—
Long-term debt before debt discount	552,500		719,875
Unamortized discount and issuance costs - 2025 Notes	(7,986)		(93,123)
Unamortized discount and issuance costs - term loan	(948)		(2,141)
Long-term debt less debt discount	543,566		624,611
Less current maturities	—		—
Long-term debt - non-current portion	543,566		624,611
Finance lease obligations	26,514		30,750
Less current maturities	(3,999)		(3,598)
Long-term debt and finance lease obligations, less current portion and debt discount	$	566,081	$	651,763

2025 Notes

In May 2020, we completed the issuance of the 2025 Notes, pursuant to an indenture between the Company and U.S. Bank, dated as of May 12, 2020 (the “Indenture”). The 2025 Notes were sold only to persons reasonably believed to be qualified institutional buyers in reliance on Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”). The 2025 Notes pay interest semi-annually in arrears on May 15 and November 15 of each year, commencing on November 15, 2020, at an annual rate of 2.50%.

We received proceeds from the offering of $390.9 million, net of $11.6 million in underwriter fees and other issuance costs. We used $294.3 million of the net proceeds from the offering to repay all outstanding amounts under the revolving credit facility and $75.0 million to partially repay the first lien term loan in an aggregate principal amount of $420.0 million (the “term loan”). The remainder of the net proceeds are being used for general corporate purposes.

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

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

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

(iii) upon the occurrence of certain corporate events or distributions on the Company’s common stock, as described in the Indenture; or

(iv) if the Company calls such Notes for redemption.

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

The 2025 Notes are initially convertible at a conversion rate of 32.0783 shares of common stock per $1,000 principal amount of 2025 Notes, which is equivalent to an initial conversion price of approximately $31.17 per share of common stock. The conversion rate will be subject to adjustment upon the occurrence of certain specified events including, but not limited to: issuance of stock dividends, splits and combinations; distribution of rights, options and

warrants; spin-offs and other distributed property; cash dividends or distributions; tender offers or exchange offers; and certain other corporate transactions. The Company can choose to settle upon conversion in cash, shares or a combination. Based on the initial conversion rate, the 2025 Notes 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. As of January 1, 2022, the 2025 Notes can be converted by holders based on condition (i) above. See Note 13. “Earnings Per Share” for the treatment of earnings per share in relation to the 2025 Notes. The holders of our term loan would have preference over the holders of the 2025 Notes in the event of a liquidation.

The Company adopted ASU 2020-06 as of January 3, 2021. ASU 2020-06 eliminates the cash conversion and the beneficial conversion feature models. Under the new convertible debt framework, the Company eliminated the equity components and increased the debt balance. Refer to Note 1. “Description of Business and Basis of Presentation” for further discussion of the adoption of ASU 2020-06. As a result of adopting ASU 2020-06, our effective interest rate decreased from 9.1% as of January 2, 2021 to 3.2% starting in the first quarter of 2021. We recognized interest expense for the interest coupon and amortization of issuance costs of $10.1 million and $2.2 million during fiscal 2021, respectively, and $6.4 million and $10.9 million during fiscal 2020, respectively. As of January 1, 2022, the remaining period for the unamortized debt issuance costs balance was approximately three years.

Credit Agreement

On July 18, 2019, our credit agreement, dated as of October 9, 2018 was amended and restated to establish a new first lien term loan of $420.0 million to repay all principal, interest fees and other amounts outstanding before the amendment and establish a new revolving credit facility in an aggregate principal amount of $300.0 million, including a $20.0 million letter of credit sublimit. In connection with the principal repayments of our existing debt, the Company wrote off associated deferred debt issuance costs of $6.0 million and associated unamortized debt discount of $3.8 million, in the third quarter of 2019.

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, we entered into an agreement with the lenders to amend certain provisions of our credit agreement. This amendment was 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. The amendment suspended certain financial maintenance covenants contained in our credit agreement until testing at the end of the second fiscal quarter of 2021.

Capitalized terms used but not defined herein shall have the meanings assigned to such terms in our credit agreement. During the second quarter of 2021, the Company amended its credit agreement to, among other things, add customary LIBOR replacement provisions, modify the applicable margins used to calculate the rate of interest payable on the first lien term loans thereunder to a range of 1.25% to 2.00% for LIBOR Loans and a range of 0.25% to 1.00% for ABR Loans, modify certain financial covenants related to maximum leverage and minimum interest coverage and remove the LIBOR floor, such that LIBOR shall be deemed to be no less than 0.00% per annum (instead of 1.00% per annum previously in effect).

Pursuant to our credit agreement, the Company will not permit (i) the Consolidated Total Debt to Consolidated EBITDA Ratio to be negative or greater than (x) 4.50 to 1.00 with respect to the last day of the Company’s second and third fiscal quarters of 2021 and (y) 4.25 to 1.00 from and after the last day of the Company’s fourth fiscal quarter of 2021, subject to certain step-ups after the consummation of a Material Acquisition, or (ii) the Consolidated Interest Coverage Ratio of the Company as of the last day of any fiscal quarter of the Company to be less than 3.00 to 1.00.

The amendment also contains covenants that, among other things, limit NVI’s ability to incur additional debt, create liens against assets, make acquisitions, pay dividends or distributions on its stock, merge or consolidate with another entity and transfer or sell assets. We were in compliance with all covenants related to our long-term debt as of January 1, 2022.

During the third quarter of 2019, we partially prepaid $25.0 million on the term loan. On May 12, 2020, we fully prepaid the $294.3 million outstanding under our revolving credit facility and partially prepaid $75.0 million on the term loan. During the second quarter of 2021, the Company partially prepaid $117.4 million of term loan principal and wrote off associated deferred debt issuance costs of $0.7 million. During the fourth quarter of 2021, the Company partially prepaid $50.0 million of term loan principal and wrote off associated deferred debt issuance costs of $0.3 million. As a result of the prepayments made in fiscal years 2019, 2020, and 2021, the Company has no additional mandatory principal payments on the term loan until maturity on July 18, 2024 and no amounts outstanding under the revolving credit facility. The borrowing capacity remaining as of January 1, 2022 was $293.6 million due to a reduction of $6.4 million for letters of credit outstanding. 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 to Other assets.

Scheduled annual maturities of debt are as follows:


Fiscal Year	In thousands
2022	$	—
2023	—
2024	150,000
2025	402,500
2026	—
Thereafter	—
	$	552,500

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
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+ Details

Stock Incentive Plans

12 Months Ended

Jan. 01, 2022

Share-based Payment Arrangement [Abstract]

Stock Incentive Plans

The Company has provided equity-based compensation awards to its associates under three plans. In connection with the initial public offering of our common stock (the “IPO”), on October 23, 2017, the Company’s Board of Directors adopted, and its stockholders approved, the National Vision Holdings, Inc. 2017 Omnibus Incentive Plan (the “2017 Omnibus Incentive Plan”). The total number of shares of common stock that may be issued under the plan is 4,000,000. The plan authorizes the grant of stock options, stock appreciation rights, RSAs, RSUs, PSUs, other equity-based awards and other cash-based awards to our associates, directors, officers, consultants and advisers. The Vision Holding Corp. 2013 Amended and Restated Stock Incentive Plans provided for the issuance of stock options to directors, certain associates and consultants of Vision Holding Corp., its subsidiaries and affiliates. In 2014, our Board of Directors and stockholders of the Company approved the 2014 Stock Incentive Plan for Key Employees of National Vision Holdings, Inc. (formerly known as Nautilus Parent, Inc.) and its subsidiaries (the “2014 Stock Incentive Plan”). There were 10,988,827 stock options authorized for issuance pursuant to the 2014 Stock Incentive Plan. All stock awards under these plans vest through continued service. All options under these plans have a contractual life of 10 years.

The Company also provides associates the opportunity to purchase Company common shares through the Associate Stock Purchase Plan (the “ASPP”), which the Company’s Board of Directors adopted and its stockholders approved on June 6, 2018. The ASPP provides that up to 850,000 shares of common stock, at par value of $0.01 per share, may be offered and issued under the ASPP.

The following table summarizes stock compensation expense under the Company’s plans, which is included in SG&A in the accompanying Consolidated Statements of Operations:


In thousands	Fiscal Year 2021		Fiscal Year 2020		Fiscal Year 2019
Stock options	$	2,632	$	2,827	$	8,562
RSUs and PSUs	11,217		7,201		3,655
RSAs	852		588		334
Associate stock purchase plan	185		124		119
Pre-tax stock based compensation expense	$	14,886	$	10,740	$	12,670
Income tax benefit	(3,788)		(2,743)		(3,237)
After-tax stock based compensation expense	$	11,098	$	7,997	$	9,433


	Stock options		RSUs and PSUs		RSAs
Unrecognized compensation cost (in thousands)	$	2,871	$	14,928	$	314
Expected remaining weighted-average period of expense recognition (in years)	1.74		1.83		0.42

Service-based options

The following tables summarize service-based stock option activity, including service-based options under the Vision Holding Corp. Amended and Restated 2013 Equity Incentive Plan, the 2014 Stock Incentive Plan, and the 2017 Omnibus Incentive Plan.


	Number of Options Outstanding (In thousands)	Weighted Average Exercise Price ($)		Weighted Average Remaining Contractual Life (Years)	Aggregate Intrinsic Value (In thousands) ($)
Outstanding options at January 2, 2021	1,194	$	18.92	6.19	$	31,490
Granted	111	46.19
Exercised	(550)	11.04
Forfeited	(29)	22.04
Outstanding options at January 1, 2022	726	$	28.91	6.83	$	13,891
Vested and exercisable at January 1, 2022	376	$	23.85	6.17	$	9,067


In thousands except per share values	Fiscal Year 2021		Fiscal Year 2020		Fiscal Year 2019
Weighted average grant date fair value per share of options granted	$	23.39	$	13.71	$	13.67
Fair value of options vested	$	3,138	$	3,313	$	5,676
Aggregate intrinsic value of options exercised	$	23,091	$	22,549	$	21,350

The fair value of service-based options was estimated using the Black-Scholes-Merton option pricing model. The following is a summary of the assumptions used in this model for service-based options:

2021

2020

2019

Expected volatility

52.49% to 54.03%

39.54% to 55.81%

34.50% to 37.10%

Expected term range (in years)

6.00

5.75 to 6.50

Expected risk-free interest rate

0.97% to 1.07%

0.47% to 1.13%

1.68% to 2.94%

The expected term was based on the mid-point between the weighted average time to vesting and the contractual time to maturity. Most service-based options vest in three equal installments on the first, second and third anniversaries of the grant date. The risk free interest rate was based on the U.S. Treasury yield curve. The dividend yield was based on our expectation of not paying dividends on our common stock for the foreseeable future.

Performance-based options

The following table summarizes performance-based stock option activity:


	Number of Options Outstanding (In thousands)	Weighted Average Exercise Price ($)		Weighted Average Remaining Contractual Life (Years)	Aggregate Intrinsic Value (In thousands) ($)
Outstanding options at January 2, 2021	855	$	5.50	3.42	$	34,018
Exercised	(805)	4.87
Forfeited	—	—
Outstanding options at January 1, 2022	50	$	15.70	5.56	$	1,604
Vested and exercisable at January 1, 2022	50	$	15.70	5.56	$	1,604

There were no grants of performance-based options during fiscal years 2021, 2020, and 2019. There were no vests of performance-based options during fiscal year 2021. The fair value of performance-based options vested during fiscal years 2020 and 2019 was $1.4 million and $4.4 million, respectively. The aggregate intrinsic value of performance-based options exercised during fiscal years 2021, 2020, and 2019 was $37.3 million, $20.0 million, and $29.9 million, respectively.

The following tables summarize RSU, PSU and RSA awards activity:


	RSUs (In thousands)	Weighted average grant date fair value ($)		PSUs (In thousands)	Weighted average grant date fair value ($)		RSAs (In thousands)	Weighted average grant date fair value ($)
Outstanding at January 2, 2021	454	$	30.85	220	$	34.36	22	$	31.85
Granted	139	46.52		112	46.17		17	48.39
Vested	(203)	30.37		—	—		(22)	31.85
Forfeited	(26)	36.78		(15)	38.26		—	—
Outstanding at January 1, 2022	364	$	36.67	317	$	38.34	17	$	48.39


	Fiscal Year 2021		Fiscal Year 2020		Fiscal Year 2019
RSUs
Weighted average grant date fair value of RSUs granted	$	46.52	$	34.73	$	29.56
Total fair value of RSUs vested (In thousands)	$	6,154	$	1,346	$	2,178
PSUs
Weighted average grant date fair value of PSUs granted	$	46.17	$	34.34	$	34.50
Total fair value of PSUs vested (In thousands)	$	—	$	—	$	—
RSAs
Weighted average grant date fair value of RSAs granted	$	48.39	$	30.65	$	29.18
Total fair value of RSAs vested (In thousands)	$	700	$	534	$	133

Restricted stock units (RSUs)

Most RSUs vest in three equal installments on the first, second and third anniversaries of the grant date. The RSUs outstanding as of January 1, 2022 have $17.5 million intrinsic value.

Performance stock units (PSUs)

PSUs are settled after the end of a three year performance period (i.e., cliff vesting), which begins on the first day of the grant year and are based on the Company’s achievement of certain performance targets. The performance stock units outstanding as of January 1, 2022 have $15.2 million intrinsic value. While the PSU amounts shown in the table above reflect achievement at target, the number of PSUs ultimately vested will be based on a comparison of certified performance results to predefined performance criteria that include threshold, target and maximum attainment levels.

Restricted stock awards (RSAs)

Most RSAs outstanding vest one year from grant date. As of fiscal year end 2021, the intrinsic value of the awards was $0.8 million.

Associate Stock Purchase Plan (ASPP)

Under the ASPP, eligible associates receive a 10% discount from the market trading value of common stock of the Company at the time of purchase. Participants may contribute to the ASPP, not to exceed $25,000 under the ASPP in any calendar year. As of January 1, 2022, the amount of shares issued to eligible participants through the ASPP was not material.

Income Taxes

12 Months Ended

Jan. 01, 2022

Income Tax Disclosure [Abstract]

Income Taxes

Income taxes

The income tax provision (benefit) consists of:


In thousands	Fiscal Year 2021		Fiscal Year 2020		Fiscal Year 2019
Current income tax:
Federal	$	138	$	86	$	443
State	4,242		2,550		864
Deferred income tax:
Federal	15,015		(219)		(2,972)
State	1,686		(14)		(644)
Income tax provision (benefit)	$	21,081	$	2,403	$	(2,309)

Our income tax provision (benefit) differs from the amounts computed by multiplying earnings before income taxes by the statutory federal income tax rate as shown in the following table:


In thousands	Fiscal Year 2021			Fiscal Year 2020			Fiscal Year 2019
Federal income tax provision at statutory rate	$	31,358		$	8,123		$	6,403
State income tax provision, net of federal income tax	7,130			1,755			1,387
Increase (decrease) in deferred tax asset valuation allowance	(441)			(216)			(386)

Stranded tax effect of matured interest rate swaps	(2,125)			—			—
Tax benefit of equity-based compensation deductions	(14,408)			(7,996)			(10,089)
Other, net	(433)			737			376
Net income tax provision (benefit)	$	21,081		$	2,403		$	(2,309)
Effective income tax rate	14.1		%	6.2		%	(7.6)		%

The Tax Legislation signed into law on December 22, 2017 makes broad and complex changes to the U.S. tax code including, but not limited to: (1) reducing the U.S. federal rate from 35% to 21%, effective January 1, 2018; (2) eliminating the corporate alternative minimum tax (“AMT”) and changing how the credits can be realized; (3) creating new limitations on deductions for interest expense; (4) changing rules related to limitations of net operating loss (“NOL”) carryforwards, and (5) enhancing and extending through 2026 the option to claim accelerated depreciation deductions on qualified property.

The sources of the differences between the financial accounting and tax bases of our assets and liabilities that give rise to the deferred tax assets and deferred tax liabilities and the tax effects of each are as follows:


In thousands	As of January 1, 2022		As of January 2, 2021
Deferred tax assets:
NOL carry-forwards	$	4,068	$	10,841
Deferred interest expense carry-forwards	—		180
AMT payment and employment credits	2,290		3,541
Deferred revenue	5,700		5,498
Accrued expenses and reserves	10,020		9,361
Loss on equity and other investments	1,521		2,135
Stock-based compensation	5,167		5,135
Unrealized losses on hedging instruments	849		2,237
Operating lease liabilities	105,728		100,759
Other	—		1,349
Subtotal	135,343		141,036
Valuation allowances	(3,045)		(3,486)
Total net deferred tax assets	132,298		137,550
Deferred tax liabilities:
Depreciation of property and equipment	(50,019)		(37,592)
Amortization of intangible assets	(72,111)		(73,590)
Convertible debt discount	—		(18,819)
Right of use asset	(90,751)		(86,266)
Other	(2,263)		(2,222)
Total deferred tax liabilities	(215,144)		(218,489)
Net deferred tax liabilities	$	(82,846)	$	(80,939)

As of fiscal year end 2021, we had available U.S. federal NOL carry-forwards aggregating to $7.8 million that can be utilized to reduce future federal income taxes. The Company has $7.5 million of carry-forward losses that do not expire and $0.3 million of carry-forward losses expiring at the end of fiscal year 2037, respectively. In addition, we have NOL carry-forwards in varying amounts and with varying expiration dates in various states in which we operate. We believe it is more likely than not that we will realize a tax benefit for these NOL’s in the future except for $4.3 million of NOL carry-forwards ($0.9 million tax effected) on certain professional corporations where we recognized a full valuation allowance as of fiscal year end 2021.

Non-expiring federal and state employment credits totaling $2.3 million are available to offset certain future taxes.

We have a $1.5 million deferred income tax asset for capital losses associated with the losses realized on the sale of our equity method non-consolidated investee and other investments. We do not expect to generate significant capital gains in the near future. Therefore, we believe it is more likely than not that we will not realize a tax benefit for the majority of these deferred income tax assets, and accordingly we have established a full valuation allowance for the amount deemed unrealizable.

As a result of our utilization of NOL carry-forwards to reduce or eliminate subsequent years’ tax obligations, our federal and a substantial number of our state income tax returns for fiscal years 2001 through 2021 remain open for examination by the tax authorities.

The Company evaluates uncertain tax positions using a “more-likely-than-not” threshold, and recognizes the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by tax authorities. The Company evaluates uncertain tax positions on a quarterly basis and considers various factors, including, but not limited to, changes in tax law, the measurement of tax positions taken or expected to be taken in tax returns, the effective settlement of matters subject to audit, information obtained during in-process audit activities and changes in facts or circumstances related to a tax position.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

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+ Details

Revenue From Contracts With Customers

12 Months Ended

Jan. 01, 2022

Revenue from Contract with Customer [Abstract]

Revenue From Contracts With Customers

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

Revenues Recognized at a Point in Time

Owned & Host

Within our Owned & Host segment, product revenues include sales of prescription and non-prescription eyewear, contact lenses and related accessories to retail customers.

For sales of in-store non-prescription eyewear and related accessories, we recognize revenue at the point of sale. For sales of prescription eyewear, we recognize revenue when the performance obligations identified under the terms of contracts with our customers are satisfied, which generally occurs, for products, when those products have been delivered and accepted by our customers. Within our Owned & Host segment services and plans revenues, eye exam services sold on a stand-alone basis are also recognized at the point of sale which occurs immediately after the exam is performed.

Legacy

Within our Legacy segment, product revenues include sales of prescription and non-prescription eyewear, contact lenses and related accessories to retail customers in transactions where the retail customer uses a managed-care payor; and wholesale sales of the same inventory types to the Legacy partner.

The revenue recognition for the retail sales are identical to similar sales in the Owned & Host segment.

Wholesale sales of inventory to the Legacy partner are recognized at the point in time when control of the inventory has been transferred in accordance with the contractual terms and conditions of sale. Since the wholesale sales of inventory to the Legacy partner are a separate performance obligation in our management & services agreement with the Legacy partner, we considered the appropriate allocation of consideration to wholesale inventory sales. We concluded that the difference between the stand-alone-selling price of the wholesale inventory and the contractual prices was not material.

Within our Legacy segment services and plans revenues, eye exam services sold to retail customers are recognized at the point of sale which occurs immediately after the exam is performed.

Corporate/Other

Revenues from our non-reportable Corporate/Other segment are attributable to wholly owned subsidiaries AC Lens and FirstSight Vision Services Inc. (“FirstSight”). AC Lens sells contact lenses and optical accessory products to retail customers through e-commerce, and recognizes revenue when products have been delivered to the customer. AC Lens also distributes contact lenses at its cost to Walmart and Sam’s Club under fee for services arrangements. This revenue is recorded on a gross basis as AC Lens is the principal in the arrangement since AC Lens controls the products in those transactions before the products are transferred to the customer.

FirstSight issues individual vision plans in connection with our America’s Best operations in California, and provides or arranges for the provision of optometric services at certain optometric offices next to Walmart and Sam’s Club stores in California.

Revenues Recognized Over Time

Owned & Host

Within our Owned & Host segment, services and plans revenues include revenues from product protection plans (i.e. warranties), eye care club memberships and HMO vision plan fees. We offer extended warranty plans in our Owned & Host segment that generally provide for repair and replacement of eyeglasses for primarily a one-year term after purchase. We recognize service revenue under these programs on a straight-line basis over the warranty or service period which is consistent with our efforts expended to satisfy the obligation. We offer three- or five-year eyecare club memberships in our Owned & Host segment to our contact lens customers. For these programs we apply the portfolio approach of recognizing revenues of contracts with similar characteristics and use estimates and assumptions that reflect the size and composition of the portfolio of contracts. We selected the portfolio approach because our historical club membership data demonstrate that our club customers behave similarly, such that the difference between the portfolio approach and calculating revenue of each individual contract is not material. We recognize revenue across the contract portfolio based on the value delivered to the customers relative to the remaining services promised under the programs. We determine the value delivered based on the expected timing and amount of customer usage of benefits over the terms of the contracts. The unamortized portion of amounts we collect in advance for these services and plans are reported as Deferred revenue (current and non-current portions) in the accompanying Consolidated Balance Sheets.

Legacy

Sales of services and plans in our Legacy segment include fees earned for managing the operations of our Legacy partner. These fees are recorded on a net basis and are based primarily on sales of products and product protection plans to non-managed care customers. We determined that under the terms of the arrangement our Legacy partner controls the products and services in the transaction with the retail customer and therefore we act as the agent in those transactions. We recognize this service revenue using the “right to invoice” method because our right to payment corresponds directly with the value of the management services provided to our Legacy partner.

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


In thousands	Fiscal Year 2021		Fiscal Year 2020		Fiscal Year 2019
Revenues recognized at a point in time	$	1,908,221	$	1,569,757	$	1,578,379
Revenues recognized over time	171,304		142,003		145,952
Total net revenue	$	2,079,525	$	1,711,760	$	1,724,331

Refer to Note 14. “Segment Reporting” for the Company’s disaggregation of net revenue by reportable segment and product type. As the reportable segments are aligned by similar economic factors, trends and customers, the reportable segment disaggregation view best depicts how the nature, amount and uncertainty of revenue and cash flows are affected by economic factors.

Deferred Revenue

The following depicts a roll-forward of deferred revenue:


	Fiscal Year 2021
In thousands	Product Protection Plans		Eye Care Clubs		Total
Beginning of the year	$	34,147	$	45,580	$	79,727
Sold	80,690		57,639		138,329
Revenue recognized	(76,198)		(53,367)		(129,565)
End of year	$	38,639	$	49,852	$	88,491

Current	$	38,335	$	26,990	$	65,325
Non-current	304		22,862		23,166
	$	38,639	$	49,852	$	88,491


	Fiscal Year 2020
In thousands	Product Protection Plans		Eye Care Clubs		HMO Memberships		Total
Beginning of the year	$	30,911	$	46,486	$	3	$	77,400
Sold	63,535		47,445		—		110,980
Revenue recognized	(60,299)		(48,351)		(3)		(108,653)
End of year	$	34,147	$	45,580	$	—	$	79,727

Current	$	33,810	$	25,089	$	—	$	58,899
Non-current	337		20,491		—		20,828
	$	34,147	$	45,580	$	—	$	79,727

Unsatisfied Performance Obligations (Contract Liabilities)

We recognized $58.9 million of deferred revenues outstanding at the beginning of the period during the fiscal year ended 2021, and $70.7 million of revenues from sale of club memberships and product protection plans during the fiscal year ended 2021. We recognized $55.9 million of deferred revenues outstanding at the beginning of the period during the fiscal year ended 2020, and $52.8 million of revenues from sale of club memberships and product protection plans during the fiscal year ended 2020.

Deferred revenue recorded as of fiscal year end 2021 is expected to be reflected in future operating results as follows:


Fiscal Year	In thousands
2022	$	65,325
2023	17,424
2024	5,510
2025	175
2026	57
	$	88,491

- 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
-SubTopic 10
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=123351226&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=123351226&loc=SL49130556-203045

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130554-203045

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 9
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130550-203045

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (e)
-URI http://asc.fasb.org/extlink&oid=123351226&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=123351226&loc=SL49130554-203045

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=123351226&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=123351226&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=123351226&loc=SL49130554-203045

+ Details

Leases

12 Months Ended

Jan. 01, 2022

Leases [Abstract]

Leases

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 payment and 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. Lease concessions of $0.4 million and $3.1 million were recorded in Other payables and accrued expenses as of January 1, 2022 and January 2, 2021, respectively. See Note 2. “Details of Certain Balance Sheet Accounts” for further details.


In thousands		As of January 1, 2022		As of January 2, 2021
Type	Classification
	ASSETS
Finance	Property and equipment, net (a)	$	19,390	$	24,373
Operating	Right of use assets (b)	354,900		340,141
	Total leased assets	$	374,290	$	364,514
	LIABILITIES
	Current Liabilities:
Finance	Current maturities of long-term debt and finance lease obligations	$	3,999	$	3,598
Operating	Current operating lease obligations (c)	60,930		58,356
	Other non-current liabilities:
Finance	Long-term debt and finance lease obligations, less current portion and debt discount	22,515		27,152
Operating	Non-current operating lease obligations	342,241		327,371
	Total lease liabilities	$	429,685	$	416,477
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 $16.8 million and $12.4 million as of January 1, 2022 and January 2, 2021, respectively.

(b) TIA and deferred rent are treated as reductions of lease payments used to measure ROU assets in the accompanying Consolidated Balance Sheets as of January 1, 2022 and January 2, 2021.

(c) Current operating lease liabilities are measured net of TIA receivables of $6.6 million and $3.8 million as of January 1, 2022 and January 2, 2021, respectively.


In thousands	Fiscal Year 2021		Fiscal Year 2020		Fiscal Year 2019
Operating lease cost
Fixed lease cost (a)	$	84,019	$	79,387	$	73,971
Variable lease cost (b)	30,643		28,158		26,466
Sublease income(c)	(3,557)		(2,700)		(2,930)

Finance lease cost
Amortization of finance lease assets	4,461		4,561		4,418


Interest on finance lease liabilities	2,923		3,656		3,573

Net lease cost	$	118,489	$	113,062	$	105,498
(a)Includes short-term leases, which are immaterial. (b)Includes costs for insurance, real estate taxes and common area maintenance expenses, which are variable as well as lease costs above minimum thresholds for Fred Meyer stores and lease costs for Military stores. (c)Income from sub-leasing of stores includes rental income from operating lease properties to independent optometrists.


Lease Term and Discount Rate	As of January 1, 2022		As of January 2, 2021
Weighted average remaining lease term (months)
Operating leases	76		77
Finance leases	72		79
Weighted average discount rate (a)
Operating leases	4.5	%	4.7	%
Finance leases (b)	11.7	%	12.3	%
(a)The discount rate used to determine the lease assets and lease liabilities was derived upon considering (i) incremental borrowing rates on our term loan and revolving credit facility; (ii) fixed rates on interest rate swaps; (iii) 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	Fiscal Year 2021		Fiscal Year 2020		Fiscal Year 2019
Other Information

Operating cash outflows - operating leases	$	89,324	$	84,913	$	75,330
Right of use assets acquired under finance leases	$	—	$	1,257	$	9,713
Right of use assets acquired under operating leases	$	91,451	$	68,081	$	108,712

The following table summarizes the maturity of our lease liabilities as of January 1, 2022:


In thousands	Operating Leases (a)		Finance Leases (b)
Fiscal Year
2022	$	77,373	$	6,752
2023	84,471		6,252
2024	73,461		4,753
2025	68,409		4,913
2026	51,160		4,519
Thereafter	111,468		6,917
Total lease liabilities	466,342		34,106
Less: Interest	63,171		7,592
Present value of lease liabilities(c)	$	403,171	$	26,514

_________

(a) Operating lease payments include $44.3 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 $24.5 million of legally binding minimum lease payments for leases signed but not yet commenced.

Leases


In thousands		As of January 1, 2022		As of January 2, 2021
Type	Classification
	ASSETS
Finance	Property and equipment, net (a)	$	19,390	$	24,373
Operating	Right of use assets (b)	354,900		340,141
	Total leased assets	$	374,290	$	364,514
	LIABILITIES
	Current Liabilities:
Finance	Current maturities of long-term debt and finance lease obligations	$	3,999	$	3,598
Operating	Current operating lease obligations (c)	60,930		58,356
	Other non-current liabilities:
Finance	Long-term debt and finance lease obligations, less current portion and debt discount	22,515		27,152
Operating	Non-current operating lease obligations	342,241		327,371
	Total lease liabilities	$	429,685	$	416,477
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 $16.8 million and $12.4 million as of January 1, 2022 and January 2, 2021, respectively.

(b) TIA and deferred rent are treated as reductions of lease payments used to measure ROU assets in the accompanying Consolidated Balance Sheets as of January 1, 2022 and January 2, 2021.

(c) Current operating lease liabilities are measured net of TIA receivables of $6.6 million and $3.8 million as of January 1, 2022 and January 2, 2021, respectively.


In thousands	Fiscal Year 2021		Fiscal Year 2020		Fiscal Year 2019
Operating lease cost
Fixed lease cost (a)	$	84,019	$	79,387	$	73,971
Variable lease cost (b)	30,643		28,158		26,466
Sublease income(c)	(3,557)		(2,700)		(2,930)

Finance lease cost
Amortization of finance lease assets	4,461		4,561		4,418


Interest on finance lease liabilities	2,923		3,656		3,573

Net lease cost	$	118,489	$	113,062	$	105,498
(a)Includes short-term leases, which are immaterial. (b)Includes costs for insurance, real estate taxes and common area maintenance expenses, which are variable as well as lease costs above minimum thresholds for Fred Meyer stores and lease costs for Military stores. (c)Income from sub-leasing of stores includes rental income from operating lease properties to independent optometrists.


Lease Term and Discount Rate	As of January 1, 2022		As of January 2, 2021
Weighted average remaining lease term (months)
Operating leases	76		77
Finance leases	72		79
Weighted average discount rate (a)
Operating leases	4.5	%	4.7	%
Finance leases (b)	11.7	%	12.3	%
(a)The discount rate used to determine the lease assets and lease liabilities was derived upon considering (i) incremental borrowing rates on our term loan and revolving credit facility; (ii) fixed rates on interest rate swaps; (iii) 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	Fiscal Year 2021		Fiscal Year 2020		Fiscal Year 2019
Other Information

Operating cash outflows - operating leases	$	89,324	$	84,913	$	75,330
Right of use assets acquired under finance leases	$	—	$	1,257	$	9,713
Right of use assets acquired under operating leases	$	91,451	$	68,081	$	108,712

The following table summarizes the maturity of our lease liabilities as of January 1, 2022:


In thousands	Operating Leases (a)		Finance Leases (b)
Fiscal Year
2022	$	77,373	$	6,752
2023	84,471		6,252
2024	73,461		4,753
2025	68,409		4,913
2026	51,160		4,519
Thereafter	111,468		6,917
Total lease liabilities	466,342		34,106
Less: Interest	63,171		7,592
Present value of lease liabilities(c)	$	403,171	$	26,514

_________

(a) Operating lease payments include $44.3 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 $24.5 million of legally binding minimum lease payments for leases signed but not yet commenced.

Fair Value Measurement	12 Months Ended
Fair Value Measurement	Jan. 01, 2022
Fair Value Disclosures [Abstract]
Fair Value Measurement	Fair Value Measurement General The Company uses a fair value hierarchy that is intended to increase consistency and comparability in fair value measurements and related disclosures. The fair value hierarchy is based on inputs to valuation techniques that are used to measure fair value that are either observable or unobservable. Observable inputs reflect assumptions market participants would use in pricing an asset or liability based on market data obtained from independent sources while unobservable inputs reflect a reporting entity’s own market assumptions. The Company is required to measure certain assets and liabilities at fair value or disclose the fair values of certain assets and liabilities recorded at cost. Accounting standards define fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is estimated assuming the transaction occurs in the principal or most advantageous market for the asset or liability and includes consideration of non-performance risk and credit risk of both parties. A three-tier fair value hierarchy prioritizes the inputs used in measuring fair value. These tiers include: •Level 1 - Valuation inputs are based upon unadjusted quoted prices for identical instruments traded in active markets. •Level 2 - Valuation inputs are based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in inactive markets, and model-based valuation techniques for which all significant assumptions are observable in the market or can be corroborated by observable market data for substantially the full term of the instruments. •Level 3 - Valuation inputs are unobservable and typically reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability. The fair values are determined using model-based techniques that include discounted cash flow models and similar techniques. The fair value estimates of financial instruments are not necessarily indicative of the amounts we might pay or receive in actual market transactions. The use of different market assumptions and/or estimation methodologies may have a material impact on the estimated fair value amounts. Recurring fair value measurements Interest Rate Derivatives We recognize as assets or liabilities at fair value the estimated amounts we would receive or pay upon a termination of interest rate derivatives prior to their scheduled expiration dates. The fair value is based on information that is model-driven and whose inputs were observable (Level 2 inputs) such as LIBOR forward rates. See Note 12. “Interest Rate Derivatives” for further details. Non-recurring fair value measurements Tangible Long-lived and Right of Use (“ROU”) Store Assets We recognized impairments of $4.4 million, $22.0 million and $8.9 million in fiscal years 2021, 2020 and 2019, respectively, related to our long-lived tangible store assets and ROU assets. The impairments were primarily driven by lower than projected customer sales volume in certain stores. The cash flows used in estimating fair value were discounted using a market rate of 7.5%. A decrease in the estimated cash flows would lead to a lower fair value measurement, as would an increase in the discount rate. These non-recurring fair value measurements are classified as Level 3 measurements in the fair value hierarchy. The estimated remaining fair value of the assets impaired during fiscal years 2021 and 2020 was $6.8 million and $30.6 million, respectively; the estimated remaining fair values include amounts estimated at various dates during the related fiscal years. Substantially all of the remaining fair value of the impaired store assets in fiscal years 2021 and 2020 represents the fair value of ROU assets. Refer to Note 1. “Business and Significant Accounting Policies.” Additional fair value information Cash Equivalents and Restricted Cash The carrying amount of cash equivalents and restricted cash approximates fair value due to the short term maturity of the instruments. All cash and cash equivalents are denominated in U.S. currency. Accounts Receivable, Net The carrying amount of accounts receivable approximates fair value due to the short-term nature of those items and the effect of credit losses. Accounts Payable and Other Payables and Accrued Expenses The carrying amounts of accounts payable and other payables and accrued expenses approximate fair value due to the short-term nature of those items. Long-term Debt - Term Loan and Revolving Credit Facility Since the borrowings under the 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 issued and outstanding as of January 1, 2022. The estimated fair value of the 2025 Notes was approximately $674.9 million as of January 1, 2022. The estimated fair value of the 2025 Notes is based on the prices the 2025 Notes have traded in the market as of January 1, 2022, 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.

Deferred Revenue

12 Months Ended

Jan. 01, 2022

Revenue from Contract with Customer [Abstract]

Deferred Revenue

Revenue From Contracts With Customers

Revenues Recognized at a Point in Time

Owned & Host

Within our Owned & Host segment, product revenues include sales of prescription and non-prescription eyewear, contact lenses and related accessories to retail customers.

Legacy

The revenue recognition for the retail sales are identical to similar sales in the Owned & Host segment.

Within our Legacy segment services and plans revenues, eye exam services sold to retail customers are recognized at the point of sale which occurs immediately after the exam is performed.

Corporate/Other

Revenues Recognized Over Time

Owned & Host

Legacy

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


In thousands	Fiscal Year 2021		Fiscal Year 2020		Fiscal Year 2019
Revenues recognized at a point in time	$	1,908,221	$	1,569,757	$	1,578,379
Revenues recognized over time	171,304		142,003		145,952
Total net revenue	$	2,079,525	$	1,711,760	$	1,724,331

Deferred Revenue

The following depicts a roll-forward of deferred revenue:


	Fiscal Year 2021
In thousands	Product Protection Plans		Eye Care Clubs		Total
Beginning of the year	$	34,147	$	45,580	$	79,727
Sold	80,690		57,639		138,329
Revenue recognized	(76,198)		(53,367)		(129,565)
End of year	$	38,639	$	49,852	$	88,491

Current	$	38,335	$	26,990	$	65,325
Non-current	304		22,862		23,166
	$	38,639	$	49,852	$	88,491


	Fiscal Year 2020
In thousands	Product Protection Plans		Eye Care Clubs		HMO Memberships		Total
Beginning of the year	$	30,911	$	46,486	$	3	$	77,400
Sold	63,535		47,445		—		110,980
Revenue recognized	(60,299)		(48,351)		(3)		(108,653)
End of year	$	34,147	$	45,580	$	—	$	79,727

Current	$	33,810	$	25,089	$	—	$	58,899
Non-current	337		20,491		—		20,828
	$	34,147	$	45,580	$	—	$	79,727

Unsatisfied Performance Obligations (Contract Liabilities)

Deferred revenue recorded as of fiscal year end 2021 is expected to be reflected in future operating results as follows:


Fiscal Year	In thousands
2022	$	65,325
2023	17,424
2024	5,510
2025	175
2026	57
	$	88,491

- Definition

+ References

+ Details

Commitments and Contingencies

12 Months Ended

Jan. 01, 2022

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Contractual Commitments

As of January 1, 2022, the Company had contractual commitments of approximately $118.1 million consisting of agreements for merchandise purchases, technology and advertising.

Warranty Costs

The Company records an allowance for the estimated amount of future warranty costs when the related revenue is recognized, which is recorded in Other payables and accrued expenses on the accompanying Consolidated Balance Sheets. Expense associated with warranty costs is presented in Cost of services and plans in the accompanying Consolidated Statements of Operations. Estimated future warranty costs are primarily based on historical experience of identified warranty claims. However, there can be no assurance that future warranty costs will not exceed historical amounts. The following details the activity in our product warranty liability accounts:


In thousands	Fiscal Year 2021		Fiscal Year 2020
Beginning of year balance	$	2,229	$	1,881
Accrued obligation	33,906		28,415
Claims paid	(34,072)		(28,067)
End of year balance	$	2,063	$	2,229

401(k) Plan

The Company sponsors a 401(k) plan into which associates may defer a portion of their wages. We match a portion of such deferred wages. The expense for the plan was $8.7 million, $5.3 million and $5.3 million in the fiscal years ended 2021, 2020 and 2019, respectively. Expense associated with our 401(k) plan is presented in SG&A in the Consolidated Statements of Operations.

Legal Proceedings

From time to time, the Company is involved in various legal proceedings incidental to its business. Because of the nature and inherent uncertainties of litigation, we cannot predict with certainty the ultimate resolution of these actions and, should the outcome of these actions be unfavorable, the Company’s business, financial position, results of operations or cash flows could be materially and adversely affected.

The Company reviews the status of its legal proceedings and records a provision for a liability when it is considered probable that 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.

Eyeglass World, LLC, which was acquired by the Company in 2009, is a defendant in a state court action filed on July 24, 2017 by a former sublease holder in Albuquerque, New Mexico. The lawsuit seeks compensatory and punitive damages for claims of conversion, misappropriation of trade secrets, negligent misrepresentation, and tortious interference with existing and prospective contractual relationships arising from the Company’s alleged unauthorized use of confidential information. On January 31, 2022, in order to avoid the burden and expense of further litigation, the parties agreed to a settlement of all claims alleged by the plaintiff. On February 9, 2022, the Company paid the settlement amount and on February 11, 2022, a notice of stipulated dismissal with prejudice was filed by the parties with the court to dismiss the action.

Interest Rate Derivatives	12 Months Ended
Interest Rate Derivatives	Jan. 01, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Interest Rate Derivatives	Interest Rate DerivativesWe are party to an interest rate collar to offset the variability of cash flows in LIBOR-indexed debt interest payments. The aggregate notional amount of the interest rate collar was $375.0 million as of January 1, 2022. The fair value of our interest rate collar instrument was $3.3 million as of January 1, 2022 and is not designated as a cash flow hedge. The interest rate swaps we held at the end of fiscal year 2020 matured in the first quarter of 2021. The fair value of our interest rate derivative instruments was $12.8 million as of January 2, 2021, $1.5 million of which was designated as a cash flow hedge. See Note 2. “Details of Certain Balance Sheet Accounts” and Note 9. “Fair Value Measurement” for further details. Due to changes in the interest rates applicable to the Company’s term loan and revolving credit facility during fiscal year 2020, the interest rate collar ceased to be a highly effective hedge. Gains (losses) on the change in fair value of the interest rate collar of approximately $4.2 million and $(2.6) million were recorded in interest expense, net during fiscal years 2021 and 2020, respectively. Interest expense, net related to our interest rate derivatives considered to be highly effective hedges for fiscal years 2021 and 2020 was $1.5 million and $7.7 million, respectively. Cash flows related to derivatives qualifying as hedges are included in the same section of the Consolidated Statements of Cash Flows as the underlying assets and liabilities being hedged. Cash flows during fiscal years 2021 and 2020 related to derivatives not qualifying as hedges were included in the operating section of the Consolidated Statements of Cash Flows and were immaterial. Certain forecasted hedged transactions were deemed not probable of occurring as a result of the Company’s repayments of debt balances. During the second quarter of 2020, as a result of the partial repayment of the Company’s LIBOR based debt balances, the Company subsequently reclassified net unrealized losses of approximately $2.5 million from AOCL to interest expense, net during fiscal year 2020. During the second and fourth quarters of 2021, as a result of the partial repayments of the Company’s LIBOR based term-loan debt balances, the Company subsequently reclassified unrealized losses of $3.4 million from AOCL to interest expense, net during fiscal year 2021. As of January 1, 2022, the Company expects to reclassify approximately $0.8 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 15. “Accumulated Other Comprehensive Loss” for further details.

Earnings Per Share

12 Months Ended

Jan. 01, 2022

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 shares outstanding for the period and includes the dilutive impact of potential new shares issuable upon vesting and exercise of stock options, vesting of restricted stock units, and assumed conversion of $402.5 million of aggregate principal amount of 2025 Notes. Potential shares of common stock are excluded from the computation of diluted EPS if their effect is anti-dilutive.

Diluted EPS related to the 2025 Notes is calculated using the if-converted method; the number of dilutive shares is based on the initial conversion rate associated with the 2025 Notes. Prior to the fourth quarter of the fiscal year 2020, we intended to settle the principal amount of the outstanding 2025 Notes in cash and, therefore, used the treasury stock method for calculating the potential effect of dilutive securities related to the 2025 Notes, if applicable. A reconciliation of the numerators and denominators of the basic and diluted EPS calculations is as follows:


In thousands, except EPS	Fiscal Year 2021		Fiscal Year 2020		Fiscal Year 2019
Net income	$	128,244	$	36,277	$	32,798
After-tax interest expense for 2025 Notes	9,483		—		—
Numerator for diluted EPS	$	137,727	$	36,277	$	32,798
Weighted average shares outstanding for basic EPS	81,820		80,565		78,608
Effect of dilutive securities:
Stock options	919		1,737		3,019
Restricted Stock	483		183		56
2025 Notes	12,912		308		—
Weighted average shares outstanding for diluted EPS	96,134		82,793		81,683
Basic EPS	$	1.57	$	0.45	$	0.42
Diluted EPS	$	1.43	$	0.44	$	0.40
Anti-dilutive options, RSUs outstanding, and 2025 Notes excluded from EPS	94		13,325		294

Segment Reporting

12 Months Ended

Jan. 01, 2022

Segment Reporting [Abstract]

Segment Reporting

Segment ReportingThe Company’s reportable segments were determined on the same basis as used by the Chief Operating Decision Maker (“CODM”) to evaluate performance internally. Our operations consist of two reportable segments:

•Owned & Host store brands - Our owned brands consist of our America’s Best and Eyeglass World operating segments. In America’s Best stores, vision care services are provided by optometrists employed either by us or by independent professional corporations. Eyeglass World locations primarily feature independent optometrists to perform eye exams and on-site laboratories. Our two Host operating segments consist of Military and Fred Meyer. These brands provide eye exams principally by independent optometrists in nearly all locations. We have aggregated our America’s Best, Eyeglass World, Military and Fred Meyer operating segments into a single reportable segment due to similar economic characteristics and similarity of the nature of products and services, production processes, class of customers, regulatory environment and distribution methods of those brands.

•Legacy - The Company manages the operations of, and supplies inventory and lab processing services to, 230 Legacy retail Vision Centers. We earn management fees as a result of providing such services and therefore we record revenue related to sales of products and product protection plans to our Legacy partner’s customers on a net basis. We also sell to our Legacy partner wholesale merchandise that is stocked in retail locations, and provide central lab processing for the finished eyeglasses and frames expected to be sold to our Legacy partner’s customers. We lease space from our Legacy partner within or adjacent to each of the locations we manage and use this space for providing optometric examination services. Sales of services and plans in our Legacy segment consist of fees earned for managing the operations of our Legacy partner and revenues associated with the provision of eye exams for our managed care customers. Revenues associated with managing operations of our Legacy partner were $41.7 million, $33.4 million and $35.5 million for fiscal years ended 2021, 2020 and 2019, respectively. Our management & services agreement also allows our Legacy partner to collect penalties if the Vision Centers do not generate a requisite amount of revenues. No such penalties have been assessed under our current arrangement.

On January 22, 2020, we entered into an amendment to our management & services agreement with Walmart which provided for a six month extension of the term and added five additional Vision Centers in Walmart stores to the agreement in fiscal year 2020.

On July 17, 2020, NVI and Walmart entered into a further amendment to the management & services agreement, to extend the current term and economics of the agreement by three years, to February 23, 2024, and provide that the agreement 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 deleted certain provisions that are no longer applicable and updated certain administrative provisions. All other terms and conditions of the agreement remain in effect.

The “Corporate/Other” category includes the results of operations of our other operating segments and corporate overhead support. Revenues from the Corporate/Other segments are attributable to the AC Lens and FirstSight operating segments. AC Lens primarily sells contact lenses and optical accessory products to retail customers through e-commerce. AC Lens also distributes contact lenses to certain Walmart and Sam’s Club under fee for services arrangements. FirstSight sells single service health plans in connection with the operations of America’s Best operations in California, and arranges for the provision of optometric services at the offices next to Walmart and Sam’s Club stores throughout California. None of those segments met the quantitative thresholds for determining reportable segments for any of the periods presented.

The “Reconciliations” category represents other adjustments to reportable segment results necessary for the presentation of consolidated financial results in accordance with U.S. GAAP for the two reportable segments.

The operating segments identified above are the business activities of the Company for which discrete financial information is available and for which operating results are regularly reviewed by our CODM to allocate resources and assess performance. Our CODM is our chief executive officer. The Company considers each of our brands to be an operating segment and has further concluded that presenting the results of our reportable segments provides meaningful information consistent with the objectives of ASC 280, Segment Reporting. Strategic initiatives and financial objectives for each reportable segment are determined at the corporate level. Each operating segment is responsible for implementing defined strategic initiatives and achieving certain financial objectives, and has a general manager responsible for the sales and marketing initiatives and financial results for product lines within the segment.

Our reportable segment profit measure is earnings before interest, tax, depreciation and amortization (“EBITDA”), or net revenue, less costs applicable to revenue, less SG&A expenses. Depreciation and amortization, asset impairment and other corporate costs that are not allocated to the reportable segments (including interest expense) are excluded from segment EBITDA. There are no revenue transactions between our reportable segments. There are no differences between the measurement of our reportable segments’ assets and consolidated assets. There have been no changes from prior periods in the measurement methods used to determine reportable segment profit or loss, and there have been no asymmetrical allocations to segments.

We incurred $1.5 million and $8.6 million of costs during fiscal years 2021 and 2020, respectively, directly related to adapting the Company’s operations to the COVID-19 pandemic such as personal protective equipment and other supplies needed to operate our stores safely and certain other costs such as compensation, a tangible appreciation bonus paid to our customer-facing doctors and associates in fiscal year 2020, and other administrative expenses. Incremental expenses related to the COVID-19 pandemic were allocated to the reportable segments in fiscal year 2021 but were included in the Corporate/Other category in fiscal year 2020.

The following is a summary of certain financial data for each of our segments. Reportable segment information is presented on the same basis as our consolidated financial statements, except for net revenue and associated costs applicable to revenue, which are presented on a cash basis, including point of sales for managed care payors and excluding the effects of unearned and deferred revenue, consistent with what the CODM regularly reviews. Asset information is not included in the following summary since the CODM does not regularly review such information for the reportable segments.


	Fiscal Year 2021
In thousands	Owned & Host		Legacy		Corporate/Other		Reconciliations		Total
Net product sales	$	1,375,983	$	103,249	$	236,299	$	2,813	$	1,718,344
Net sales of services and plans	307,732		62,228		—		(8,779)		361,181
Total net revenue	1,683,715		165,477		236,299		(5,966)		2,079,525
Cost of products	377,489		49,258		205,670		699		633,116
Cost of services and plans	246,342		25,321		—		—		271,663
Total costs applicable to revenue	623,831		74,579		205,670		699		904,779
SG&A	618,413		57,838		224,547		—		900,798
Asset impairment	—		—		4,427		—		4,427
Other expense (income), net	—		—		(2,505)		—		(2,505)
EBITDA	$	441,471	$	33,060	$	(195,840)	$	(6,665)
Depreciation and amortization									97,089
Interest expense, net									25,612
Income before income taxes									$	149,325


	Fiscal Year 2020
In thousands	Owned & Host		Legacy		Corporate/Other		Reconciliations		Total
Net product sales	$	1,097,749	$	90,909	$	234,403	$	(4,778)	$	1,418,283
Net sales of services and plans	244,650		51,108		—		(2,281)		293,477
Total net revenue	1,342,399		142,017		234,403		(7,059)		1,711,760
Cost of products	307,813		43,452		201,880		(1,362)		551,783
Cost of services and plans	210,313		23,777		751		—		234,841
Total costs applicable to revenue	518,126		67,229		202,631		(1,362)		786,624
SG&A	489,449		51,809		183,727		—		724,985
Asset impairment	—		—		22,004		—		22,004
Other expense (income), net	—		—		(445)		—		(445)
EBITDA	$	334,824	$	22,979	$	(173,514)	$	(5,697)
Depreciation and amortization									91,585
Interest expense, net									48,327
Income before income taxes									$	38,680


	Fiscal Year 2019
In thousands	Owned & Host		Legacy		Corporate/Other		Reconciliations		Total
Net product sales	$	1,076,315	$	105,450	$	245,206	$	(835)	$	1,426,136
Net sales of services and plans	248,685		54,599		12		(5,101)		298,195
Total net revenue	1,325,000		160,049		245,218		(5,936)		1,724,331
Cost of products	310,790		48,712		215,052		(203)		574,351
Cost of services and plans	206,878		25,289		1		—		232,168
Total costs applicable to revenue	517,668		74,001		215,053		(203)		806,519
SG&A	508,239		56,235		180,014		—		744,488
Asset impairment	—		—		8,894		—		8,894
Other expense (income), net	—		—		3,611		—		3,611
Loss on extinguishment of debt	—		—		9,786		—		9,786
EBITDA	$	299,093	$	29,813	$	(172,140)	$	(5,733)
Depreciation and amortization									87,244
Interest expense, net									33,300
Income before income taxes									$	30,489

Entity-wide Information

The following table presents our consolidated net product revenue information:


In thousands	Fiscal Year 2021		Fiscal Year 2020		Fiscal Year 2019
Net Product Sales
Eyeglasses and sunglasses	$	1,201,386	$	946,025	$	947,729
Contact lenses	509,992		466,262		471,042
Accessories and other	6,966		5,996		7,365
Total net product revenues	$	1,718,344	$	1,418,283	$	1,426,136

In fiscal years 2021 and 2020, respectively, revenues from Walmart, recognized in our Legacy segment and Corporate/Other category, represented $300.8 million and $268.6 million of our total net revenue, subjecting us to customer concentration 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.

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+ Details

Accumulated Other Comprehensive Loss

12 Months Ended

Jan. 01, 2022

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, net of tax during the fiscal years 2021, 2020 and 2019, respectively:


In thousands	Fiscal Year 2021		Fiscal Year 2020		Fiscal Year 2019
Cash flow hedging activity
Balance at beginning of fiscal year	$	(4,400)	$	(3,814)	$	(2,810)
Other comprehensive income (loss) before reclassification	(10)		(11,108)		(5,814)
Tax effect of other comprehensive income (loss) before reclassification	3		2,830		1,489
Amount reclassified from AOCL	6,168		10,328		4,464
Tax effect of amount reclassified from AOCL	(1,576)		(2,636)		(1,143)
Stranded tax effect of matured interest rate swaps	(2,125)		—		—
Net current period other comprehensive income (loss), net of tax	2,460		(586)		(1,004)
Balance at end of fiscal year	$	(1,940)	$	(4,400)	$	(3,814)

See Note 12. “Interest Rate Derivatives” for a description of the Company’s use of cash flow hedging derivatives.

- Definition

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

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+ Details

Schedule I - Condensed Financial Information of Registrant

12 Months Ended

Jan. 01, 2022

Condensed Financial Information Disclosure [Abstract]

Schedule I - Condensed Financial Information of Registrant

National Vision Holdings, Inc. and Subsidiaries (Parent Company Only)

Condensed Balance Sheets

In Thousands, Except Par Value


	As of January 1, 2022		As of January 2, 2021
ASSETS
Current assets:
Cash and cash equivalents	$	1,683	$	10
Accounts receivable, net	—		1,409
Prepaid expenses and other current assets	734		5
Total current assets	2,417		1,424

Deferred income taxes	4,975		—
Investment in subsidiary	1,388,583		1,268,846

Total non-current assets	1,393,558		1,268,846
Total assets	$	1,395,975	$	1,270,270

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Other payables and accrued expenses	$	1,342	$	1,341

Long-term debt, less current portion and debt discount	394,514		309,377
Non-current liabilities:
Other liabilities	74,139		36,308
Deferred income taxes	—		16,742
Total other non-current liabilities	74,139		53,050

Stockholders’ equity:
Common stock, $0.01 par value; 200,000 shares authorized; 83,840 and 82,183 shares issued as of January 1, 2022 and January 2, 2021, respectively; 81,405 and 81,239 shares outstanding as of January 1, 2022 and January 2, 2021, respectively	838		821
Additional paid-in capital	750,478		795,697
Accumulated other comprehensive loss	(1,940)		(4,400)
Retained earnings	278,395		142,880
Treasury stock, at cost; 2,435 and 944 shares as of January 1, 2022 and January 2, 2021, respectively	(101,791)		(28,496)
Total stockholders’ equity	925,980		906,502
Total liabilities and stockholders’ equity	$	1,395,975	$	1,270,270

Note: Fiscal year 2021 includes 52 weeks. Fiscal year 2020 includes 53 weeks.

The accompanying notes are an integral part of these condensed financial statements.

Schedule I - Condensed Financial Information of Registrant

National Vision Holdings, Inc. And Subsidiaries (Parent Company Only)

Condensed Statements of Operations and Comprehensive Income

In Thousands


	Fiscal Year 2021		Fiscal Year 2020		Fiscal Year 2019
Total net revenue	$	—	$	—	$	—
Total costs applicable to revenue	—		—		—
Total operating expenses	256		264		256
Interest expense, net	12,275		17,296		—
Earnings (loss) before income taxes	(12,531)		(17,560)		(256)
Income tax provision (benefit)	(2,898)		(3,959)		71
Earnings (loss) before equity in net income of subsidiaries	(9,633)		(13,601)		(327)
Net income of subsidiaries	137,877		49,878		33,125
Net income	$	128,244	$	36,277	$	32,798

Comprehensive income:
Net income	$	128,244	$	36,277	$	32,798
Unrealized gain (loss) on hedge instruments	6,158		(780)		(1,350)
Tax provision (benefit) of unrealized gain (loss) on hedge instruments	3,698		(194)		(346)
Comprehensive income	$	130,704	$	35,691	$	31,794

Note: Fiscal years 2021 and 2019 include 52 weeks. Fiscal year 2020 includes 53 weeks.

The accompanying notes are an integral part of these condensed financial statements.

Schedule I - Condensed Financial Information of Registrant

National Vision Holdings, Inc. and Subsidiaries (Parent Company Only)

Condensed Statements of Cash Flows

In Thousands


	Fiscal Year 2021		Fiscal Year 2020		Fiscal Year 2019
Cash flows from operating activities
Net cash provided by operating activities	$	16,530	$	1,189	$	25,455
Cash flows from investing activities
Investment in subsidiary	46,600		(404,537)		(15,090)
Net cash provided by (used for) investing activities	46,600		(404,537)		(15,090)
Cash flows from financing activities
Borrowings on long-term debt, net of discounts	—		402,500		—
Proceeds from issuance of common stock	11,838		13,105		15,090
Purchase of treasury stock	(73,295)		(689)		(25,646)
Payments of debt issuance costs	—		(11,613)		—
Net cash provided by (used for) financing activities	(61,457)		403,303		(10,556)
Net change in cash and cash equivalents	1,673		(45)		(191)
Cash and cash equivalents, beginning of year	10		55		246
Cash and cash equivalents, end of year	$	1,683	$	10	$	55

Note: Fiscal years 2021 and 2019 include 52 weeks. Fiscal year 2020 includes 53 weeks.

The accompanying notes are an integral part of these condensed financial statements.

1. Basis of Presentation

National Vision Holdings, Inc. (“NVHI,” or the “Company”) conducts substantially all of its activities through its indirect wholly owned subsidiary, National Vision, Inc. (“NVI”) and its subsidiaries. NVHI was incorporated in Delaware on February 14, 2014 under the name Nautilus Parent, Inc. There were no financial transactions between the inception date and March 13, 2014, the date the majority ownership of NVI was transferred from private equity funds managed by Berkshire Partners LLC to affiliates of Kohlberg Kravis Roberts & Co. L.P. In the parent-company-only financial statements, NVHI’s investment in subsidiaries is stated at cost, plus equity in undistributed earnings of subsidiaries since the date of acquisition, less dividends. The parent-company-only financial statements should be read in conjunction with the NVHI consolidated financial statements.

In May 2020, the Company issued $402.5 million principal amount of 2.50% convertible senior notes due 2025. The 2025 Notes pay interest semi-annually in arrears on May 15 and November 15 of each year, commencing on November 15, 2020, at an annual rate of 2.50% and are convertible into cash, shares of common stock or a combination of cash and shares of common stock, at our election, based on the applicable conversion rate at such time. NVHI contributed the proceeds from of the 2025 Notes to NVI as additional investments during the fiscal year 2020. See Note 4. “Long-term Debt” to the NVHI consolidated financial statements for details of the 2025 Notes.

2. Guarantees and Restrictions

As described in Note 4. “Long-term Debt” to the NVHI consolidated financial statements, NVI used proceeds from the 2025 Notes to fully repay the outstanding amount on its revolving credit facility of $294.3 million and partially repaid $75 million on the term loan. As of January 1, 2022, NVI had $150.0 million of principal amount of long-term debt outstanding under its term loan and no outstanding balance under its $300.0 million revolving credit facility, which includes $6.4 million in outstanding letters of credit.

Under the terms of NVI’s amended credit agreement, provided no event of default has occurred and is continuing, NVI is permitted to pay dividends to NVHI with certain restrictions.

Business and Significant Accounting Policies (Policies)

12 Months Ended

Jan. 01, 2022

Accounting Policies [Abstract]

Fiscal Year

Basis of Presentation and Principles of Consolidation

Use of Estimates

Cash and Cash Equivalents

Accounts Receivable, Net

Accounts Receivable, NetAccounts 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 Consolidated Statements of Operations, was approximately $0.8 million, $0.7 million and $8.2 million for the fiscal years 2021, 2020 and 2019, respectively.

Inventories

InventoriesThe cost of inventory is determined using the weighted average cost method. Inventories at retail stores consist of finished goods and are valued at the lower of cost or estimated net realizable value (“NRV”). Manufactured inventories are valued using absorption accounting which includes material, labor, other variable costs and other applicable manufacturing overhead. Inventory values are adjusted for estimated obsolescence and written down to NRV based on estimates of current and anticipated demand, customer preference, merchandise age, planned promotional activities, contact lens vendor return acceptance activity, and estimates of future retail sales prices. Shrinkage is estimated and recorded throughout the period in cost of sales based on historical results and current inventory levels. Actual shrinkage is recorded throughout the year based upon periodic physical counts.

Property and Equipment

We depreciate P&E for financial accounting purposes using the straight-line method over the following estimated useful lives:


Buildings			34 years

Equipment			3 - 7 years
Information technology hardware and software (a)			2 - 5 years
Furniture and fixtures			6 years
Leasehold improvements(b)			5 - 10 years
P&E under finance leases (b)			10 years
____________
(a)Costs of developing or obtaining software for internal use, such as direct costs of materials or services and internal payroll costs related to the software development projects, are capitalized to information technology hardware and software. (b)Depreciation of leasehold improvements is recognized over the shorter of the estimated useful life of the asset or the term of the lease. The term of the lease includes renewal options for additional periods if the exercise of the renewal is considered to be reasonably assured.

Goodwill and Intangible Assets

Equity Method Investment

Fair Value Measurement of Assets and Liabilities

Deferred Financing Costs and Loan Discounts

Self-Insurance Liabilities


In thousands		Balance Sheet Classification	As of January 1, 2022		As of January 2, 2021
	Current portion	Prepaid Expenses and Other Current Assets	$	964	$	1,139
	Non-current portion	Other Assets	1,956		2,313
Total estimated recoveries from reinsurance			$	2,920	$	3,452

Derivative Financial Instruments

Accumulated Other Comprehensive Loss

Accumulated Other Comprehensive LossAOCL is defined as the change in equity of a business enterprise during a period from transactions and other events and circumstances from non-owner sources. Accumulated other comprehensive loss, net of income tax, is entirely composed of the cumulative unrealized loss on our previously effective hedging instruments.

Revenue Recognition

Costs Applicable to Revenue

Costs Applicable To Revenue

Selling, General and Administrative

Leases

Stock-Based Compensation

Stock-Based CompensationWe measure stock-based compensation cost, which consists of grants of stock options, restricted stock units (“RSUs”), performance stock units (“PSUs”), and restricted stock awards (“RSAs”) to associates and non-associate directors, based on the estimated grant date fair value of the awards. We recognize compensation expense for all awards containing only a service requirement over the requisite service period using a straight-line recognition method. Our PSUs contain both a service requirement and a performance requirement. We recognize expense for the proportionate share of the total fair value of PSUs related to the vesting period that has already lapsed for the shares expected to vest, which expectation is based on an evaluation of expected performance against predefined performance criteria and may also result in reversals of expense. The remaining fair value of the shares expected to vest is expensed on a straight-line basis over the balance of the vesting period. We account for forfeitures as they occur.

Long-lived Asset Impairment

Income Taxes

Adoption of New Accounting Pronouncements

The following table summarizes the impact of adoption on the Company’s Consolidated Statement of Operations for fiscal year 2021:


	Fiscal Year 2021
In thousands (except earnings per share)	With ASU 2020-06 Adoption		Without ASU 2020-06 Adoption (1)		Impact of Adoption (2)

Income from operations	$	174,937	$	174,937	$	—
Interest expense, net	25,612		41,635		(16,023)
Earnings before income taxes	149,325		133,302		16,023
Income tax provision	21,081		17,482		3,599
Net income	$	128,244	$	115,820	$	12,424

Weighted average shares outstanding for basic EPS	81,820		81,820		—
Weighted average shares outstanding for diluted EPS	96,134		83,222		12,912
Earnings per share:
Basic	$	1.57	$	1.42	$	0.15
Diluted	$	1.43	$	1.39	$	0.04
(1)Antidilutive shares are excluded from the computation of weighted average shares outstanding for diluted EPS. The 2025 Notes would have been antidilutive for the fiscal year ended 2021 without the adoption of ASU 2020-06 and are, therefore, excluded from the computation of diluted EPS. (2) Impact of adoption on basic earnings per share is calculated using impact on net income divided by basic weighted average shares outstanding during the period.

Future Adoption of Accounting Pronouncements

Business and Significant Accounting Policies (Tables)

12 Months Ended

Jan. 01, 2022

Accounting Policies [Abstract]

Schedule of Property and Equipment, Net

We depreciate P&E for financial accounting purposes using the straight-line method over the following estimated useful lives:


Buildings			34 years

Equipment			3 - 7 years
Information technology hardware and software (a)			2 - 5 years
Furniture and fixtures			6 years
Leasehold improvements(b)			5 - 10 years
P&E under finance leases (b)			10 years
____________
(a)Costs of developing or obtaining software for internal use, such as direct costs of materials or services and internal payroll costs related to the software development projects, are capitalized to information technology hardware and software. (b)Depreciation of leasehold improvements is recognized over the shorter of the estimated useful life of the asset or the term of the lease. The term of the lease includes renewal options for additional periods if the exercise of the renewal is considered to be reasonably assured.


In thousands	As of January 1, 2022		As of January 2, 2021
Property and equipment, net:
Land and building	$	3,625	$	3,624
Equipment	225,726		207,265
Information technology hardware and software	137,261		129,008
Furniture and fixtures	63,582		56,277
Leasehold improvements	251,023		220,720
Construction in progress	35,106		23,859
Right of use assets under finance leases	36,235		36,757
	752,558		677,510
Less: Accumulated depreciation	(406,122)		(336,217)
	$	346,436	$	341,293

Business Insurance Recoveries

Estimated recoveries from reinsurance as of fiscal year end 2021 and 2020 are shown in the following table.


In thousands		Balance Sheet Classification	As of January 1, 2022		As of January 2, 2021
	Current portion	Prepaid Expenses and Other Current Assets	$	964	$	1,139
	Non-current portion	Other Assets	1,956		2,313
Total estimated recoveries from reinsurance			$	2,920	$	3,452

Summary of Impact of Adoption of New Accounting Standard

The following table summarizes the impact of adoption on the Company’s Consolidated Statement of Operations for fiscal year 2021:


	Fiscal Year 2021
In thousands (except earnings per share)	With ASU 2020-06 Adoption		Without ASU 2020-06 Adoption (1)		Impact of Adoption (2)

Income from operations	$	174,937	$	174,937	$	—
Interest expense, net	25,612		41,635		(16,023)
Earnings before income taxes	149,325		133,302		16,023
Income tax provision	21,081		17,482		3,599
Net income	$	128,244	$	115,820	$	12,424

Weighted average shares outstanding for basic EPS	81,820		81,820		—
Weighted average shares outstanding for diluted EPS	96,134		83,222		12,912
Earnings per share:
Basic	$	1.57	$	1.42	$	0.15
Diluted	$	1.43	$	1.39	$	0.04
(1)Antidilutive shares are excluded from the computation of weighted average shares outstanding for diluted EPS. The 2025 Notes would have been antidilutive for the fiscal year ended 2021 without the adoption of ASU 2020-06 and are, therefore, excluded from the computation of diluted EPS. (2) Impact of adoption on basic earnings per share is calculated using impact on net income divided by basic weighted average shares outstanding during the period.

Details of Certain Balance Sheet Accounts (Tables)

12 Months Ended

Jan. 01, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of Cash, Cash Equivalents, and Restricted Cash


In thousands	Fiscal Year 2021		Fiscal Year 2020		Fiscal Year 2019
Cash, cash equivalents and restricted cash:
Cash and cash equivalents	$	305,800	$	373,903	$	39,342
Restricted cash included in other assets	1,076		1,256		965
	$	306,876	$	375,159	$	40,307

Schedule of Accounts Receivable, Net


In thousands	As of January 1, 2022		As of January 2, 2021
Accounts receivable, net:
Trade receivables	$	32,504	$	28,405
Credit card receivables	17,010		21,557
Other receivables	6,685		8,460
Allowance for credit losses	(502)		(433)
	$	55,697	$	57,989

Schedule of Inventories


In thousands	As of January 1, 2022		As of January 2, 2021
Inventories:
Raw materials and work in process (1)	$	65,262	$	55,473
Finished goods	58,407		55,801
	$	123,669	$	111,274
(1) Due to the immaterial amount of estimated work in process and the short lead times for the conversion of raw materials to finished goods, the Company does not separately present raw materials and work in process.

Schedule of Property and Equipment, Net

We depreciate P&E for financial accounting purposes using the straight-line method over the following estimated useful lives:


Buildings			34 years

Equipment			3 - 7 years
Information technology hardware and software (a)			2 - 5 years
Furniture and fixtures			6 years
Leasehold improvements(b)			5 - 10 years
P&E under finance leases (b)			10 years
____________
(a)Costs of developing or obtaining software for internal use, such as direct costs of materials or services and internal payroll costs related to the software development projects, are capitalized to information technology hardware and software. (b)Depreciation of leasehold improvements is recognized over the shorter of the estimated useful life of the asset or the term of the lease. The term of the lease includes renewal options for additional periods if the exercise of the renewal is considered to be reasonably assured.


In thousands	As of January 1, 2022		As of January 2, 2021
Property and equipment, net:
Land and building	$	3,625	$	3,624
Equipment	225,726		207,265
Information technology hardware and software	137,261		129,008
Furniture and fixtures	63,582		56,277
Leasehold improvements	251,023		220,720
Construction in progress	35,106		23,859
Right of use assets under finance leases	36,235		36,757
	752,558		677,510
Less: Accumulated depreciation	(406,122)		(336,217)
	$	346,436	$	341,293

Schedule of Other Payables and Accrued Expenses


In thousands	As of January 1, 2022		As of January 2, 2021
Other payables and accrued expenses:
Associate compensation and benefits (1)	$	55,670	$	51,081
Self-insurance liabilities	9,034		8,650
Capital expenditures	10,571		8,455
Advertising	6,962		2,173
Reserves for customer returns and remakes	7,556		8,084
Legacy management & services agreement	5,518		5,386
Fair value of derivative liabilities	2,846		5,116
Supplies and other store support expenses	5,511		3,461
Litigation settlements	2,100		1,107
Lease concessions	357		3,142
Other	13,198		13,654
	$	119,323	$	110,309
(1) Includes CARES Act deferred employer payroll taxes in the amount of $0.0 million and $12.8 million as of January 1, 2022 and January 2, 2021, respectively.

Schedule of Other Non-current Liabilities


In thousands	As of January 1, 2022		As of January 2, 2021
Other non-current liabilities:
Fair value of derivative liabilities	$	488	$	7,663
Self-insurance liabilities	6,170		7,046
Other	2,316		2,706
	$	8,974	$	17,415

Goodwill and Intangible Assets (Tables)

12 Months Ended

Jan. 01, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Goodwill

The gross carrying amount and accumulated impairment of the Company’s goodwill balances for 2021 and 2020 are as follows:


	As of January 1, 2022				As of January 2, 2021
In thousands	Gross Carrying Amount		Accumulated Impairment		Gross Carrying Amount		Accumulated Impairment
Owned & Host Segment	$	736,901	$	(19,357)	$	736,901	$	(19,357)
Legacy Segment	60,069		—		60,069		—
Corporate/Other	8,107		(8,107)		8,107		(8,107)
	$	805,077	$	(27,464)	$	805,077	$	(27,464)

Schedule of Indefinite-Lived Intangible Assets

Indefinite-lived intangible assets by major asset class are as follows:


In thousands	As of January 1, 2022		As of January 2, 2021
Trademarks and trade names:
America’s Best	$	200,547	$	200,547
Eyeglass World	40,000		40,000

	$	240,547	$	240,547

Schedule of Finite-Lived Intangible Assets

Finite-lived, amortizing intangible assets by major asset class are as follows:


	As of January 1, 2022					As of January 2, 2021
In thousands	Gross Carrying Amount		Accumulated Amortization		Remaining Life (Years)	Gross Carrying Amount		Accumulated Amortization		Remaining Life (Years)
Contracts and relationships:
Legacy	$	65,000	$	46,117	3	$	65,000	$	40,154	4
Fred Meyer	35,000		11,864		15	35,000		10,339		16
Customer database	4,400		4,400		—	4,400		4,400		—
Other	746		745		—	746		742		—
	$	105,146	$	63,126		$	105,146	$	55,635

Schedule of Aggregate Future Estimated Amortization Expense

Aggregate future estimated amortization expense is shown in the following table:


Fiscal Year	In thousands
2022	$	7,490
2023	7,488
2024	7,488
2025	2,519
2026	1,525
Thereafter	15,510
	$	42,020

Long-term Debt (Tables)

12 Months Ended

Jan. 01, 2022

Debt Disclosure [Abstract]

Schedule of Long-term Debt

Long-term debt consists of the following:


In thousands	As of January 1, 2022		As of January 2, 2021
2025 Notes, due May 15, 2025	$	402,500	$	402,500
Term loan, due July 18, 2024	150,000		317,375
Revolving credit facility, due July 18, 2024	—		—
Long-term debt before debt discount	552,500		719,875
Unamortized discount and issuance costs - 2025 Notes	(7,986)		(93,123)
Unamortized discount and issuance costs - term loan	(948)		(2,141)
Long-term debt less debt discount	543,566		624,611
Less current maturities	—		—
Long-term debt - non-current portion	543,566		624,611
Finance lease obligations	26,514		30,750
Less current maturities	(3,999)		(3,598)
Long-term debt and finance lease obligations, less current portion and debt discount	$	566,081	$	651,763

Schedule of Annual Maturities of Debt

Scheduled annual maturities of debt are as follows:


Fiscal Year	In thousands
2022	$	—
2023	—
2024	150,000
2025	402,500
2026	—
Thereafter	—
	$	552,500

- 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.

+ References

+ Details

Stock Incentive Plans (Tables)

12 Months Ended

Jan. 01, 2022

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Schedule of Stock Compensation Expense

The following table summarizes stock compensation expense under the Company’s plans, which is included in SG&A in the accompanying Consolidated Statements of Operations:


In thousands	Fiscal Year 2021		Fiscal Year 2020		Fiscal Year 2019
Stock options	$	2,632	$	2,827	$	8,562
RSUs and PSUs	11,217		7,201		3,655
RSAs	852		588		334
Associate stock purchase plan	185		124		119
Pre-tax stock based compensation expense	$	14,886	$	10,740	$	12,670
Income tax benefit	(3,788)		(2,743)		(3,237)
After-tax stock based compensation expense	$	11,098	$	7,997	$	9,433


	Stock options		RSUs and PSUs		RSAs
Unrecognized compensation cost (in thousands)	$	2,871	$	14,928	$	314
Expected remaining weighted-average period of expense recognition (in years)	1.74		1.83		0.42

Schedule of RSU, PSU, and RSA Activity

The following tables summarize RSU, PSU and RSA awards activity:


	RSUs (In thousands)	Weighted average grant date fair value ($)		PSUs (In thousands)	Weighted average grant date fair value ($)		RSAs (In thousands)	Weighted average grant date fair value ($)
Outstanding at January 2, 2021	454	$	30.85	220	$	34.36	22	$	31.85
Granted	139	46.52		112	46.17		17	48.39
Vested	(203)	30.37		—	—		(22)	31.85
Forfeited	(26)	36.78		(15)	38.26		—	—
Outstanding at January 1, 2022	364	$	36.67	317	$	38.34	17	$	48.39


	Fiscal Year 2021		Fiscal Year 2020		Fiscal Year 2019
RSUs
Weighted average grant date fair value of RSUs granted	$	46.52	$	34.73	$	29.56
Total fair value of RSUs vested (In thousands)	$	6,154	$	1,346	$	2,178
PSUs
Weighted average grant date fair value of PSUs granted	$	46.17	$	34.34	$	34.50
Total fair value of PSUs vested (In thousands)	$	—	$	—	$	—
RSAs
Weighted average grant date fair value of RSAs granted	$	48.39	$	30.65	$	29.18
Total fair value of RSAs vested (In thousands)	$	700	$	534	$	133

Service-based options

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Schedule of Stock Option Activity


	Number of Options Outstanding (In thousands)	Weighted Average Exercise Price ($)		Weighted Average Remaining Contractual Life (Years)	Aggregate Intrinsic Value (In thousands) ($)
Outstanding options at January 2, 2021	1,194	$	18.92	6.19	$	31,490
Granted	111	46.19
Exercised	(550)	11.04
Forfeited	(29)	22.04
Outstanding options at January 1, 2022	726	$	28.91	6.83	$	13,891
Vested and exercisable at January 1, 2022	376	$	23.85	6.17	$	9,067


In thousands except per share values	Fiscal Year 2021		Fiscal Year 2020		Fiscal Year 2019
Weighted average grant date fair value per share of options granted	$	23.39	$	13.71	$	13.67
Fair value of options vested	$	3,138	$	3,313	$	5,676
Aggregate intrinsic value of options exercised	$	23,091	$	22,549	$	21,350

Schedule of Valuation Assumptions for Stock Option Grants

The fair value of service-based options was estimated using the Black-Scholes-Merton option pricing model. The following is a summary of the assumptions used in this model for service-based options:

2021

2020

2019

Expected volatility

52.49% to 54.03%

39.54% to 55.81%

34.50% to 37.10%

Expected term range (in years)

6.00

5.75 to 6.50

Expected risk-free interest rate

0.97% to 1.07%

0.47% to 1.13%

1.68% to 2.94%

Performance-based options

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Schedule of Stock Option Activity

The following table summarizes performance-based stock option activity:


	Number of Options Outstanding (In thousands)	Weighted Average Exercise Price ($)		Weighted Average Remaining Contractual Life (Years)	Aggregate Intrinsic Value (In thousands) ($)
Outstanding options at January 2, 2021	855	$	5.50	3.42	$	34,018
Exercised	(805)	4.87
Forfeited	—	—
Outstanding options at January 1, 2022	50	$	15.70	5.56	$	1,604
Vested and exercisable at January 1, 2022	50	$	15.70	5.56	$	1,604

Income Taxes (Tables)

12 Months Ended

Jan. 01, 2022

Income Tax Disclosure [Abstract]

Schedule of Components of Income Tax (Benefit) Provision

The income tax provision (benefit) consists of:


In thousands	Fiscal Year 2021		Fiscal Year 2020		Fiscal Year 2019
Current income tax:
Federal	$	138	$	86	$	443
State	4,242		2,550		864
Deferred income tax:
Federal	15,015		(219)		(2,972)
State	1,686		(14)		(644)
Income tax provision (benefit)	$	21,081	$	2,403	$	(2,309)

Schedule of Effective Income Tax Rate Reconciliation

Our income tax provision (benefit) differs from the amounts computed by multiplying earnings before income taxes by the statutory federal income tax rate as shown in the following table:


In thousands	Fiscal Year 2021			Fiscal Year 2020			Fiscal Year 2019
Federal income tax provision at statutory rate	$	31,358		$	8,123		$	6,403
State income tax provision, net of federal income tax	7,130			1,755			1,387
Increase (decrease) in deferred tax asset valuation allowance	(441)			(216)			(386)

Stranded tax effect of matured interest rate swaps	(2,125)			—			—
Tax benefit of equity-based compensation deductions	(14,408)			(7,996)			(10,089)
Other, net	(433)			737			376
Net income tax provision (benefit)	$	21,081		$	2,403		$	(2,309)
Effective income tax rate	14.1		%	6.2		%	(7.6)		%

Schedule of Deferred Tax Assets and Liabilities


In thousands	As of January 1, 2022		As of January 2, 2021
Deferred tax assets:
NOL carry-forwards	$	4,068	$	10,841
Deferred interest expense carry-forwards	—		180
AMT payment and employment credits	2,290		3,541
Deferred revenue	5,700		5,498
Accrued expenses and reserves	10,020		9,361
Loss on equity and other investments	1,521		2,135
Stock-based compensation	5,167		5,135
Unrealized losses on hedging instruments	849		2,237
Operating lease liabilities	105,728		100,759
Other	—		1,349
Subtotal	135,343		141,036
Valuation allowances	(3,045)		(3,486)
Total net deferred tax assets	132,298		137,550
Deferred tax liabilities:
Depreciation of property and equipment	(50,019)		(37,592)
Amortization of intangible assets	(72,111)		(73,590)
Convertible debt discount	—		(18,819)
Right of use asset	(90,751)		(86,266)
Other	(2,263)		(2,222)
Total deferred tax liabilities	(215,144)		(218,489)
Net deferred tax liabilities	$	(82,846)	$	(80,939)

Revenue From Contracts With Customers (Tables)

12 Months Ended

Jan. 01, 2022

Revenue from Contract with Customer [Abstract]

Schedule of Disaggregation of Revenues

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


In thousands	Fiscal Year 2021		Fiscal Year 2020		Fiscal Year 2019
Revenues recognized at a point in time	$	1,908,221	$	1,569,757	$	1,578,379
Revenues recognized over time	171,304		142,003		145,952
Total net revenue	$	2,079,525	$	1,711,760	$	1,724,331

Leases (Tables)

12 Months Ended

Jan. 01, 2022

Leases [Abstract]

Schedule of Lease Type and Classification on Balance Sheet


In thousands		As of January 1, 2022		As of January 2, 2021
Type	Classification
	ASSETS
Finance	Property and equipment, net (a)	$	19,390	$	24,373
Operating	Right of use assets (b)	354,900		340,141
	Total leased assets	$	374,290	$	364,514
	LIABILITIES
	Current Liabilities:
Finance	Current maturities of long-term debt and finance lease obligations	$	3,999	$	3,598
Operating	Current operating lease obligations (c)	60,930		58,356
	Other non-current liabilities:
Finance	Long-term debt and finance lease obligations, less current portion and debt discount	22,515		27,152
Operating	Non-current operating lease obligations	342,241		327,371
	Total lease liabilities	$	429,685	$	416,477
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 $16.8 million and $12.4 million as of January 1, 2022 and January 2, 2021, respectively.

(b) TIA and deferred rent are treated as reductions of lease payments used to measure ROU assets in the accompanying Consolidated Balance Sheets as of January 1, 2022 and January 2, 2021.

(c) Current operating lease liabilities are measured net of TIA receivables of $6.6 million and $3.8 million as of January 1, 2022 and January 2, 2021, respectively.

Schedule of Lease Cost


In thousands	Fiscal Year 2021		Fiscal Year 2020		Fiscal Year 2019
Operating lease cost
Fixed lease cost (a)	$	84,019	$	79,387	$	73,971
Variable lease cost (b)	30,643		28,158		26,466
Sublease income(c)	(3,557)		(2,700)		(2,930)

Finance lease cost
Amortization of finance lease assets	4,461		4,561		4,418


Interest on finance lease liabilities	2,923		3,656		3,573

Net lease cost	$	118,489	$	113,062	$	105,498
(a)Includes short-term leases, which are immaterial. (b)Includes costs for insurance, real estate taxes and common area maintenance expenses, which are variable as well as lease costs above minimum thresholds for Fred Meyer stores and lease costs for Military stores. (c)Income from sub-leasing of stores includes rental income from operating lease properties to independent optometrists.

Schedule of Lease Terms and Discount Rate


Lease Term and Discount Rate	As of January 1, 2022		As of January 2, 2021
Weighted average remaining lease term (months)
Operating leases	76		77
Finance leases	72		79
Weighted average discount rate (a)
Operating leases	4.5	%	4.7	%
Finance leases (b)	11.7	%	12.3	%
(a)The discount rate used to determine the lease assets and lease liabilities was derived upon considering (i) incremental borrowing rates on our term loan and revolving credit facility; (ii) fixed rates on interest rate swaps; (iii) 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	Fiscal Year 2021		Fiscal Year 2020		Fiscal Year 2019
Other Information

Operating cash outflows - operating leases	$	89,324	$	84,913	$	75,330
Right of use assets acquired under finance leases	$	—	$	1,257	$	9,713
Right of use assets acquired under operating leases	$	91,451	$	68,081	$	108,712

Schedule of Maturity for Operating Lease Liabilities

The following table summarizes the maturity of our lease liabilities as of January 1, 2022:


In thousands	Operating Leases (a)		Finance Leases (b)
Fiscal Year
2022	$	77,373	$	6,752
2023	84,471		6,252
2024	73,461		4,753
2025	68,409		4,913
2026	51,160		4,519
Thereafter	111,468		6,917
Total lease liabilities	466,342		34,106
Less: Interest	63,171		7,592
Present value of lease liabilities(c)	$	403,171	$	26,514

_________

(a) Operating lease payments include $44.3 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 $24.5 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 January 1, 2022:


In thousands	Operating Leases (a)		Finance Leases (b)
Fiscal Year
2022	$	77,373	$	6,752
2023	84,471		6,252
2024	73,461		4,753
2025	68,409		4,913
2026	51,160		4,519
Thereafter	111,468		6,917
Total lease liabilities	466,342		34,106
Less: Interest	63,171		7,592
Present value of lease liabilities(c)	$	403,171	$	26,514

_________

(a) Operating lease payments include $44.3 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 $24.5 million of legally binding minimum lease payments for leases signed but not yet commenced.

Deferred Revenue (Tables)

12 Months Ended

Jan. 01, 2022

Revenue from Contract with Customer [Abstract]

Schedule of Roll-Forward of Deferred Revenue

The following depicts a roll-forward of deferred revenue:


	Fiscal Year 2021
In thousands	Product Protection Plans		Eye Care Clubs		Total
Beginning of the year	$	34,147	$	45,580	$	79,727
Sold	80,690		57,639		138,329
Revenue recognized	(76,198)		(53,367)		(129,565)
End of year	$	38,639	$	49,852	$	88,491

Current	$	38,335	$	26,990	$	65,325
Non-current	304		22,862		23,166
	$	38,639	$	49,852	$	88,491


	Fiscal Year 2020
In thousands	Product Protection Plans		Eye Care Clubs		HMO Memberships		Total
Beginning of the year	$	30,911	$	46,486	$	3	$	77,400
Sold	63,535		47,445		—		110,980
Revenue recognized	(60,299)		(48,351)		(3)		(108,653)
End of year	$	34,147	$	45,580	$	—	$	79,727

Current	$	33,810	$	25,089	$	—	$	58,899
Non-current	337		20,491		—		20,828
	$	34,147	$	45,580	$	—	$	79,727

Schedule of Expected Deferred Revenue to be Reflected in Future Operating Results

Deferred revenue recorded as of fiscal year end 2021 is expected to be reflected in future operating results as follows:


Fiscal Year	In thousands
2022	$	65,325
2023	17,424
2024	5,510
2025	175
2026	57
	$	88,491

Commitments and Contingencies (Tables)

12 Months Ended

Jan. 01, 2022

Commitments and Contingencies Disclosure [Abstract]

Schedule of Product Warranty Liability

The following details the activity in our product warranty liability accounts:


In thousands	Fiscal Year 2021		Fiscal Year 2020
Beginning of year balance	$	2,229	$	1,881
Accrued obligation	33,906		28,415
Claims paid	(34,072)		(28,067)
End of year balance	$	2,063	$	2,229

Earnings Per Share (Tables)

12 Months Ended

Jan. 01, 2022

Earnings Per Share [Abstract]

Schedule of Reconciliation of Basic and Diluted EPS Calculations

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


In thousands, except EPS	Fiscal Year 2021		Fiscal Year 2020		Fiscal Year 2019
Net income	$	128,244	$	36,277	$	32,798
After-tax interest expense for 2025 Notes	9,483		—		—
Numerator for diluted EPS	$	137,727	$	36,277	$	32,798
Weighted average shares outstanding for basic EPS	81,820		80,565		78,608
Effect of dilutive securities:
Stock options	919		1,737		3,019
Restricted Stock	483		183		56
2025 Notes	12,912		308		—
Weighted average shares outstanding for diluted EPS	96,134		82,793		81,683
Basic EPS	$	1.57	$	0.45	$	0.42
Diluted EPS	$	1.43	$	0.44	$	0.40
Anti-dilutive options, RSUs outstanding, and 2025 Notes excluded from EPS	94		13,325		294

Segment Reporting (Tables)

12 Months Ended

Jan. 01, 2022

Segment Reporting [Abstract]

Schedule of Financial Data by Segment


	Fiscal Year 2021
In thousands	Owned & Host		Legacy		Corporate/Other		Reconciliations		Total
Net product sales	$	1,375,983	$	103,249	$	236,299	$	2,813	$	1,718,344
Net sales of services and plans	307,732		62,228		—		(8,779)		361,181
Total net revenue	1,683,715		165,477		236,299		(5,966)		2,079,525
Cost of products	377,489		49,258		205,670		699		633,116
Cost of services and plans	246,342		25,321		—		—		271,663
Total costs applicable to revenue	623,831		74,579		205,670		699		904,779
SG&A	618,413		57,838		224,547		—		900,798
Asset impairment	—		—		4,427		—		4,427
Other expense (income), net	—		—		(2,505)		—		(2,505)
EBITDA	$	441,471	$	33,060	$	(195,840)	$	(6,665)
Depreciation and amortization									97,089
Interest expense, net									25,612
Income before income taxes									$	149,325


	Fiscal Year 2020
In thousands	Owned & Host		Legacy		Corporate/Other		Reconciliations		Total
Net product sales	$	1,097,749	$	90,909	$	234,403	$	(4,778)	$	1,418,283
Net sales of services and plans	244,650		51,108		—		(2,281)		293,477
Total net revenue	1,342,399		142,017		234,403		(7,059)		1,711,760
Cost of products	307,813		43,452		201,880		(1,362)		551,783
Cost of services and plans	210,313		23,777		751		—		234,841
Total costs applicable to revenue	518,126		67,229		202,631		(1,362)		786,624
SG&A	489,449		51,809		183,727		—		724,985
Asset impairment	—		—		22,004		—		22,004
Other expense (income), net	—		—		(445)		—		(445)
EBITDA	$	334,824	$	22,979	$	(173,514)	$	(5,697)
Depreciation and amortization									91,585
Interest expense, net									48,327
Income before income taxes									$	38,680


	Fiscal Year 2019
In thousands	Owned & Host		Legacy		Corporate/Other		Reconciliations		Total
Net product sales	$	1,076,315	$	105,450	$	245,206	$	(835)	$	1,426,136
Net sales of services and plans	248,685		54,599		12		(5,101)		298,195
Total net revenue	1,325,000		160,049		245,218		(5,936)		1,724,331
Cost of products	310,790		48,712		215,052		(203)		574,351
Cost of services and plans	206,878		25,289		1		—		232,168
Total costs applicable to revenue	517,668		74,001		215,053		(203)		806,519
SG&A	508,239		56,235		180,014		—		744,488
Asset impairment	—		—		8,894		—		8,894
Other expense (income), net	—		—		3,611		—		3,611
Loss on extinguishment of debt	—		—		9,786		—		9,786
EBITDA	$	299,093	$	29,813	$	(172,140)	$	(5,733)
Depreciation and amortization									87,244
Interest expense, net									33,300
Income before income taxes									$	30,489

Schedule of Net Product Revenue

The following table presents our consolidated net product revenue information:


In thousands	Fiscal Year 2021		Fiscal Year 2020		Fiscal Year 2019
Net Product Sales
Eyeglasses and sunglasses	$	1,201,386	$	946,025	$	947,729
Contact lenses	509,992		466,262		471,042
Accessories and other	6,966		5,996		7,365
Total net product revenues	$	1,718,344	$	1,418,283	$	1,426,136

Accumulated Other Comprehensive Loss (Tables)

12 Months Ended

Jan. 01, 2022

Equity [Abstract]

Schedule of Accumulated Other Comprehensive Loss

The following table presents the changes in AOCL, net of tax during the fiscal years 2021, 2020 and 2019, respectively:


In thousands	Fiscal Year 2021		Fiscal Year 2020		Fiscal Year 2019
Cash flow hedging activity
Balance at beginning of fiscal year	$	(4,400)	$	(3,814)	$	(2,810)
Other comprehensive income (loss) before reclassification	(10)		(11,108)		(5,814)
Tax effect of other comprehensive income (loss) before reclassification	3		2,830		1,489
Amount reclassified from AOCL	6,168		10,328		4,464
Tax effect of amount reclassified from AOCL	(1,576)		(2,636)		(1,143)
Stranded tax effect of matured interest rate swaps	(2,125)		—		—
Net current period other comprehensive income (loss), net of tax	2,460		(586)		(1,004)
Balance at end of fiscal year	$	(1,940)	$	(4,400)	$	(3,814)

Business and Significant Accounting Policies - Nature of Operations (Details)	Jan. 01, 2022 store store_brand	Jan. 02, 2021 store
Accounting Policies [Abstract]
Number of retail vision centers \| store	1,278	1,205
Number of store brands \| store_brand	5

Business and Significant Accounting Policies - Basis of Presentation and Principles of Consolidation (Details) - USD ($) $ in Thousands	Jan. 01, 2022	Jan. 02, 2021
Variable Interest Entity [Line Items]
Assets	$ 2,293,091	$ 2,333,498
Variable Interest Entity, Primary Beneficiary
Variable Interest Entity [Line Items]
Assets	6,000	5,900
Liabilities	$ 6,800	$ 11,400

- Definition

Sum of the carrying amounts as of the balance sheet date of all assets that are recognized. Assets are probable future economic benefits obtained or controlled by an entity as a result of past transactions or events.

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Sum of the carrying amounts as of the balance sheet date of all liabilities that are recognized. Liabilities are probable future sacrifices of economic benefits arising from present obligations of an entity to transfer assets or provide services to other entities in the future.

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+ Details

Business and Significant Accounting Policies - Secondary Public Offerings (Details) - USD ($) $ / shares in Units, $ in Thousands		12 Months Ended
	Aug. 07, 2019	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019	Feb. 23, 2022	Nov. 29, 2021	Nov. 08, 2021
Class of Stock [Line Items]
Common stock, par value (in usd per share)	$ 0.01	$ 0.01
Shares repurchased (shares)	819,134	1,400,000
Shares repurchased price per share (in usd per share)	$ 30.52
Non-cash stock-based compensation expense		$ 14,886	$ 10,740	$ 12,670
Stock repurchase program authorized amount						$ 100,000	$ 50,000
Repurchase of common stock, value		69,900
Stock repurchase program, remaining authorized repurchase amount		$ 130,000
Subsequent Event
Class of Stock [Line Items]
Stock repurchase program authorized amount					$ 200,000
Secondary offering vesting event
Class of Stock [Line Items]
Non-cash stock-based compensation expense				4,200
SG&A \| Secondary offering vesting event
Class of Stock [Line Items]
Long-term incentive compensation expense				2,800
Stock offering expense				$ 400
Underwritten Public Offering
Class of Stock [Line Items]
Shares issued in public offering (shares)	9,149,908

Business and Significant Accounting Policies - Related Party Transactions (Details) $ in Millions	12 Months Ended
	Dec. 28, 2019 USD ($)
Accounting Policies [Abstract]
Debt related commitment fees and debt issuance costs	$ 1.0

Business and Significant Accounting Policies - CARES Act (Details) $ in Millions	12 Months Ended
	Jan. 02, 2021 USD ($)
Unusual or Infrequent Item, or Both [Line Items]
Reclassification of AMT credits from deferred income taxes to prepaid expenses and other assets, CARES Act	$ 1.3
Increase in gross deferred tax liability related to property and equipment, CARES Act	25.0
Tax impact due to increase in gross deferred tax liability related to property and equipment, CARES Act	6.4
Products
Unusual or Infrequent Item, or Both [Line Items]
Employee retention credit, CARES Act	0.4
Services and plans
Unusual or Infrequent Item, or Both [Line Items]
Employee retention credit, CARES Act	6.2
SG&A
Unusual or Infrequent Item, or Both [Line Items]
Employee retention credit, CARES Act	$ 4.4

Business and Significant Accounting Policies - Accounts Receivable and Inventories (Details) - USD ($) $ in Millions	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
Concentration Risk [Line Items]
Credit loss on receivables	$ 0.8	$ 0.7	$ 8.2
Supplier concentration risk \| Contact Lenses \| Three Key Vendors
Concentration Risk [Line Items]
Concentration risk (percent)	92.00%
Supplier concentration risk \| Lenses \| One Key Vendor
Concentration Risk [Line Items]
Concentration risk (percent)	90.00%
Supplier concentration risk \| Frames \| Two Key Vendors
Concentration Risk [Line Items]
Concentration risk (percent)	57.00%

Business and Significant Accounting Policies - Property and Equipment (Details)	12 Months Ended
	Jan. 01, 2022
Buildings
Property and Equipment
Estimated useful life (in years)	34 years
Equipment \| Minimum
Property and Equipment
Estimated useful life (in years)	3 years
Equipment \| Maximum
Property and Equipment
Estimated useful life (in years)	7 years
Information technology hardware and software \| Minimum
Property and Equipment
Estimated useful life (in years)	2 years
Information technology hardware and software \| Maximum
Property and Equipment
Estimated useful life (in years)	5 years
Furniture and fixtures
Property and Equipment
Estimated useful life (in years)	6 years
Leasehold improvements \| Minimum
Property and Equipment
Estimated useful life (in years)	5 years
Leasehold improvements \| Maximum
Property and Equipment
Estimated useful life (in years)	10 years
P&E under capital leases
Property and Equipment
Estimated useful life (in years)	10 years

Business and Significant Accounting Policies - Goodwill, Intangible Assets, and Equity Method Investment (Details) $ in Thousands	12 Months Ended
	Jan. 01, 2022 USD ($)
Finite-Lived Intangible Assets [Line Items]
Equity investment	$ 0
Time period for metrics	1 year
Investee
Finite-Lived Intangible Assets [Line Items]
Proceeds from sale of equity method investments	$ 2,400
Gain on sale of equity method investment	$ 2,400
Minimum
Finite-Lived Intangible Assets [Line Items]
Definite-lived intangible assets, estimated useful life (in years)	4 years
Maximum
Finite-Lived Intangible Assets [Line Items]
Definite-lived intangible assets, estimated useful life (in years)	23 years

Business and Significant Accounting Policies - Self-Insurance Liabilities (Details) - USD ($) $ in Thousands	Jan. 01, 2022	Jan. 02, 2021
Insurance [Abstract]
Current portion	$ 964	$ 1,139
Non-current portion	1,956	2,313
Total estimated recoveries from reinsurance	$ 2,920	$ 3,452

Business and Significant Accounting Policies - Revenue Recognition (Details) - USD ($) $ in Millions	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021
Disaggregation of Revenue [Line Items]
Net revenue reduction for variable considerations	$ 10.2	$ 7.5
Minimum
Disaggregation of Revenue [Line Items]
Delivery time used in period end unearned revenue calculation	7 days
Maximum
Disaggregation of Revenue [Line Items]
Delivery time used in period end unearned revenue calculation	10 days

Business and Significant Accounting Policies - Advertising Expenses (Details) - USD ($) $ in Millions	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
Accounting Policies [Abstract]
Advertising expenses	$ 149.6	$ 86.5	$ 113.3

Business and Significant Accounting Policies - Leases (Details) - Stores, laboratories, distribution centers, offices	12 Months Ended
	Jan. 01, 2022
Minimum
Lessee, Lease, Description [Line Items]
Lease terms (in years)	5 years
Renewal terms (in years)	1 year
Maximum
Lessee, Lease, Description [Line Items]
Lease terms (in years)	10 years
Renewal terms (in years)	10 years

Business and Significant Accounting Policies - Long-lived Asset Impairment (Details) - USD ($)	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
Accounting Policies [Abstract]
Impairment of non-store capitalized software costs	$ 800,000	$ 1,100,000	$ 0

Business and Significant Accounting Policies - New Accounting Pronouncements (Details) - USD ($) $ in Thousands	Jan. 01, 2022	Jan. 02, 2021	Dec. 29, 2019	Dec. 28, 2019	Dec. 30, 2018	Dec. 29, 2018
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Operating lease liabilities	$ 403,171
Right of use assets	354,900	$ 340,141
Retained earnings	278,395	142,880
Stockholders equity	925,980	906,502		$ 776,437		$ 743,154
Deferred tax liabilities, financing arrangements	0	18,819
Retained Earnings
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Stockholders equity	278,395	142,880		107,132		74,840
Additional Paid-In Capital
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Stockholders equity	$ 750,478	795,697		700,121		672,503
Effect of adoption of new accounting standard
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Stockholders equity		(64,114)		(529)		(506)
Effect of adoption of new accounting standard \| Retained Earnings
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Stockholders equity		7,271		$ (529)		$ (506)
Effect of adoption of new accounting standard \| Additional Paid-In Capital
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Stockholders equity		(71,385)
ASU No. 2016-02
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Operating lease liabilities					$ 339,600
TIA treated as reduction of lease payments used to measure operating lease ROU assets					24,300
Deferred rent treated as reduction of lease payments used to measure operating lease ROU assets					11,900
Prepaid rent as increase in lease payments used to measure ROU assets					5,800
Right of use assets					308,500
ASU No. 2016-02 \| Effect of adoption of new accounting standard
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Retained earnings					$ (500)
ASU No. 2016-13 \| Effect of adoption of new accounting standard
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Retained earnings			$ (500)
Allowance for credit losses			$ 700
ASU No. 2020-06 \| Effect of adoption of new accounting standard
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Deferred tax liabilities, financing arrangements		18,800
ASU No. 2020-06 \| Effect of adoption of new accounting standard \| 2025 Notes
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Unamortized discount		82,900
ASU No. 2020-06 \| Effect of adoption of new accounting standard \| Retained Earnings
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Stockholders equity		7,300
ASU No. 2020-06 \| Effect of adoption of new accounting standard \| Additional Paid-In Capital
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Stockholders equity		$ 71,400

Business and Significant Accounting Policies - Impact of Adoption of New Accounting Standard (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Income from operations	$ 174,937	$ 87,007	$ 73,575
Interest expense, net	25,612	48,327	33,300
Earnings before income taxes	149,325	38,680	30,489
Income tax provision (benefit)	21,081	2,403	(2,309)
Net income	$ 128,244	$ 36,277	$ 32,798
Weighted average shares outstanding:
Basic (shares)	81,820	80,565	78,608
Diluted (shares)	96,134	82,793	81,683
Earnings per share:
Basic (in usd per share)	$ 1.57	$ 0.45	$ 0.42
Diluted (in usd per share)	$ 1.43	$ 0.44	$ 0.40
Calculated Under Guidance In Effect Before New Standard \| ASU No. 2020-06
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Income from operations	$ 174,937
Interest expense, net	41,635
Earnings before income taxes	133,302
Income tax provision (benefit)	17,482
Net income	$ 115,820
Weighted average shares outstanding:
Basic (shares)	81,820
Diluted (shares)	83,222
Earnings per share:
Basic (in usd per share)	$ 1.42
Diluted (in usd per share)	$ 1.39
Difference Between Guidance In Effect Before And After New Standard \| ASU No. 2020-06
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Income from operations	$ 0
Interest expense, net	(16,023)
Earnings before income taxes	16,023
Income tax provision (benefit)	3,599
Net income	$ 12,424
Weighted average shares outstanding:
Basic (shares)	0
Diluted (shares)	12,912
Earnings per share:
Basic (in usd per share)	$ 0.15
Diluted (in usd per share)	$ 0.04

Details of Certain Balance Sheet Accounts - Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019	Dec. 29, 2018
Reconciliation of cash, cash equivalents, and restricted cash
Cash and cash equivalents	$ 305,800	$ 373,903	$ 39,342
Restricted cash included in other assets	1,076	1,256	965
Total cash, cash equivalents and restricted cash	$ 306,876	$ 375,159	$ 40,307	$ 17,998

Details of Certain Balance Sheet Accounts - Accounts Receivable, Net (Details) - USD ($) $ in Thousands	Jan. 01, 2022	Jan. 02, 2021
Accounts receivable, net:
Allowance for credit losses	$ (502)	$ (433)
Accounts receivable, net	55,697	57,989
Trade receivables
Accounts receivable, net:
Accounts receivable, gross	32,504	28,405
Credit card receivables
Accounts receivable, net:
Accounts receivable, gross	17,010	21,557
Other receivables
Accounts receivable, net:
Accounts receivable, gross	$ 6,685	$ 8,460

Details of Certain Balance Sheet Accounts - Inventories (Details) - USD ($) $ in Thousands	Jan. 01, 2022	Jan. 02, 2021
Inventories:
Raw materials and work in process	$ 65,262	$ 55,473
Finished goods	58,407	55,801
Inventories	$ 123,669	$ 111,274

Details of Certain Balance Sheet Accounts - Property and Equipment, Net (Details) - USD ($) $ in Thousands	Jan. 01, 2022	Jan. 02, 2021
Property and equipment, net
Right of use assets under finance leases	$ 36,235	$ 36,757
Property, equipment, and right of use assets under finance leases, gross	752,558	677,510
Less: Accumulated depreciation	(406,122)	(336,217)
Property and equipment, net	346,436	341,293
Land and building
Property and equipment, net
Property and equipment, gross	3,625	3,624
Equipment
Property and equipment, net
Property and equipment, gross	225,726	207,265
Information technology hardware and software
Property and equipment, net
Property and equipment, gross	137,261	129,008
Furniture and fixtures
Property and equipment, net
Property and equipment, gross	63,582	56,277
Leasehold improvements
Property and equipment, net
Property and equipment, gross	251,023	220,720
Construction in progress
Property and equipment, net
Property and equipment, gross	$ 35,106	$ 23,859

Details of Certain Balance Sheet Accounts - Other Payables and Accrued Expenses (Details) - USD ($) $ in Thousands	Jan. 01, 2022	Jan. 02, 2021
Other payables and accrued expenses:
Associate compensation and benefits	$ 55,670	$ 51,081
Self-insurance liabilities	9,034	8,650
Capital expenditures	10,571	8,455
Advertising	6,962	2,173
Reserves for customer returns and remakes	7,556	8,084
Legacy management & services agreement	5,518	5,386
Fair value of derivative liabilities	2,846	5,116
Supplies and other store support expenses	5,511	3,461
Litigation settlements	2,100	1,107
Lease concessions	357	3,142
Other	13,198	13,654
Total other payables and accrued expenses	119,323	110,309
Deferred employer payroll taxes in associate compensation and benefits, CARES Act	$ 0	$ 12,800

Details of Certain Balance Sheet Accounts - Other Non-Current Liabilities (Details) - USD ($) $ in Thousands	Jan. 01, 2022	Jan. 02, 2021
Other non-current liabilities:
Fair value of derivative liabilities	$ 488	$ 7,663
Self-insurance liabilities	6,170	7,046
Other	2,316	2,706
Total other non-current liabilities	$ 8,974	$ 17,415

Goodwill and Intangible Assets - Goodwill Carrying Amount (Details) - USD ($) $ in Thousands	Jan. 01, 2022	Jan. 02, 2021
Goodwill [Line Items]
Gross Carrying Amount	$ 805,077	$ 805,077
Accumulated Impairment	(27,464)	(27,464)
Owned & Host
Goodwill [Line Items]
Gross Carrying Amount	736,901	736,901
Accumulated Impairment	(19,357)	(19,357)
Legacy
Goodwill [Line Items]
Gross Carrying Amount	60,069	60,069
Accumulated Impairment	0	0
Corporate/Other
Goodwill [Line Items]
Gross Carrying Amount	8,107	8,107
Accumulated Impairment	$ (8,107)	$ (8,107)

Goodwill and Intangible Assets - Indefinite-Lived Intangible Assets (Details) - USD ($) $ in Thousands	Jan. 01, 2022	Jan. 02, 2021
Indefinite-lived Intangible Assets [Line Items]
Indefinite-lived trademarks and trade names	$ 240,547	$ 240,547
America’s Best
Indefinite-lived Intangible Assets [Line Items]
Indefinite-lived trademarks and trade names	200,547	200,547
Eyeglass World
Indefinite-lived Intangible Assets [Line Items]
Indefinite-lived trademarks and trade names	$ 40,000	$ 40,000

Goodwill and Intangible Assets - Finite-Lived Intangible Assets (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 105,146	$ 105,146
Accumulated Amortization	63,126	55,635
Legacy
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	65,000	65,000
Accumulated Amortization	$ 46,117	$ 40,154
Remaining Life (Years)	3 years	4 years
Fred Meyer
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 35,000	$ 35,000
Accumulated Amortization	$ 11,864	$ 10,339
Remaining Life (Years)	15 years	16 years
Customer database
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 4,400	$ 4,400
Accumulated Amortization	4,400	4,400
Other
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	746	746
Accumulated Amortization	$ 745	$ 742

Goodwill and Intangible Assets - Estimated Future Amortization Expense (Details) - USD ($) $ in Thousands	Jan. 01, 2022	Jan. 02, 2021
Aggregate future estimated amortization expense
2022	$ 7,490
2023	7,488
2024	7,488
2025	2,519
2026	1,525
Thereafter	15,510
Finite-lived intangible assets	$ 42,020	$ 49,511

Long-term Debt - Summary of Long-term Debt (Details) - USD ($) $ in Thousands	Jan. 01, 2022	Jan. 02, 2021
Debt Instrument [Line Items]
Long-term debt, gross	$ 552,500	$ 719,875
Long-term debt less debt discount	543,566	624,611
Less current maturities	0	0
Long-term debt - non-current portion	543,566	624,611
Finance lease obligations	26,514	30,750
Less current maturities	(3,999)	(3,598)
Long-term debt and finance lease obligations, less current portion and debt discount	566,081	651,763
Revolving credit facility, due July 18, 2024 \| Credit facility
Debt Instrument [Line Items]
Long-term debt, gross	0	0
2025 Notes \| Convertible senior notes
Debt Instrument [Line Items]
Long-term debt, gross	402,500	402,500
Unamortized discount	(7,986)	(93,123)
Term loan, due July 18, 2024 \| Term loan
Debt Instrument [Line Items]
Long-term debt, gross	150,000	317,375
Unamortized discount	$ (948)	$ (2,141)

Long-term Debt - 2025 Notes Narrative (Details) $ / shares in Units, common_share in Millions		1 Months Ended	3 Months Ended	12 Months Ended
	May 12, 2020 USD ($)	May 31, 2020 USD ($) common_share $ / shares	Sep. 28, 2019 USD ($)	Jan. 01, 2022 USD ($) day	Jan. 02, 2021 USD ($)	Apr. 03, 2021	Jul. 18, 2019 USD ($)
Debt Instrument [Line Items]
Remaining period for the unamortized debt issuance costs (in years)				3 years
Convertible senior notes \| 2025 Notes
Debt Instrument [Line Items]
Stated interest rate (percent)		2.50%		2.50%
Proceeds from convertible debt		$ 390,900,000
Debt issuance costs		11,600,000
Aggregate principal amount		$ 402,500,000
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				$ 1,000
Trading price compared to factor of last reported sale price by conversion rate (percent)				98.00%
Conversion ratio		0.0320783
Conversion price (in usd per share) \| $ / shares		$ 31.17
Number of shares of common stock reserved for conversion of debt \| common_share		12.9
Effective interest rate (percent)					9.10%	3.20%
Interest expense, net				$ 10,100,000	$ 6,400,000
Debt issuance costs				$ 2,200,000	$ 10,900,000
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
Credit facility \| Revolving Credit Facility
Debt Instrument [Line Items]
Repayment of revolving credit facility	$ 294,300,000
Term loan \| Term loan, due July 18, 2024
Debt Instrument [Line Items]
Repayment of term loan	75,000,000		$ 25,000,000
Term loan \| Term loan
Debt Instrument [Line Items]
Aggregate principal amount	$ 420,000,000						$ 420,000,000

Long-term Debt - Credit Agreement Narrative (Details)			3 Months Ended			6 Months Ended	12 Months Ended
Long-term Debt - Credit Agreement Narrative (Details)	May 12, 2020 USD ($)	Mar. 17, 2020 USD ($)	Jan. 01, 2022 USD ($)	Jul. 03, 2021 USD ($)	Sep. 28, 2019 USD ($)	Oct. 02, 2021	Jan. 01, 2022 USD ($)	Jan. 02, 2021 USD ($)	Dec. 28, 2019 USD ($)	Jul. 18, 2019 USD ($)
Debt Instrument [Line Items]
Write off of deferred debt issuance costs					$ 6,000,000
Write off of unamortized debt discount					3,800,000
Repayments of long-term debt							$ 167,375,000	$ 369,269,000	$ 591,925,000
Term loan \| Term loan
Debt Instrument [Line Items]
Aggregate principal amount	$ 420,000,000									$ 420,000,000
Debt Instrument LIBOR Floor			0.00%				0.00%	1.00%
Term loan \| Term loan, due July 18, 2024
Debt Instrument [Line Items]
Write off of deferred debt issuance costs			$ 300,000	$ 700,000
Repayment of term loan	75,000,000				$ 25,000,000
Repayments of long-term debt			50,000,000	$ 117,400,000
Term loan \| Term loan, due July 18, 2024 \| LIBOR \| Minimum
Debt Instrument [Line Items]
Applicable margin on rate (percent)				1.25%
Term loan \| Term loan, due July 18, 2024 \| LIBOR \| Maximum
Debt Instrument [Line Items]
Applicable margin on rate (percent)				2.00%
Term loan \| Term loan, due July 18, 2024 \| ABR \| Minimum
Debt Instrument [Line Items]
Applicable margin on rate (percent)				0.25%
Term loan \| Term loan, due July 18, 2024 \| ABR \| Maximum
Debt Instrument [Line Items]
Applicable margin on rate (percent)				1.00%
Revolving Credit Facility \| Credit facility
Debt Instrument [Line Items]
Credit facility borrowing capacity			$ 300,000,000				$ 300,000,000			300,000,000
Proceeds from revolving credit facility		$ 146,300,000
Debt Agreement Consolidated Total Debt To Consolidated EBITDA Ratio Quarter End Maximum			4.25			4.50
Consolidated Interest Coverage Ratio minimum							3.00
Repayment of revolving credit facility	$ 294,300,000
Amount outstanding on line of credit			$ 0				$ 0
Borrowing capacity remaining			293,600,000				293,600,000
Outstanding letters of credit			6,400,000				6,400,000
Letter of credit \| Credit facility
Debt Instrument [Line Items]
Credit facility sublimit										$ 20,000,000
Outstanding letters of credit			$ 6,400,000				$ 6,400,000

Long-term Debt - Maturities of Debt (Details) - USD ($) $ in Thousands	Jan. 01, 2022	Jan. 02, 2021
Annual Maturities of Debt
2022	$ 0
2023	0
2024	150,000
2025	402,500
2026	0
Thereafter	0
Total	$ 552,500	$ 719,875

Stock Incentive Plans - Narrative (Details) $ / shares in Units, $ in Millions	12 Months Ended
	Jan. 01, 2022 USD ($) plan installment $ / shares shares	Jan. 02, 2021 USD ($) $ / shares shares	Dec. 28, 2019 USD ($) $ / shares shares	Aug. 07, 2019 $ / shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of award plans \| plan	3
Common stock, par value (in usd per share) \| $ / shares	$ 0.01			$ 0.01
Performance-based options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options, vested (in shares)	0
Options granted (shares)	0	0	0
Fair value of options vested \| $		$ 1.4	$ 4.4
Aggregate intrinsic value of options exercised \| $	$ 37.3	$ 20.0	$ 29.9
RSUs (In thousands)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Intrinsic value \| $	$ 17.5
Shares or units granted (shares)	139,000
Granted (in dollars per share) \| $ / shares	$ 46.52	$ 34.73	$ 29.56
RSUs (In thousands) \| Vesting in three installments beginning on first anniversary
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of equal vesting installments \| installment	3
PSUs (In thousands)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Intrinsic value \| $	$ 15.2
Remaining requisite service period (in years)	3 years
Shares or units granted (shares)	112,000
Granted (in dollars per share) \| $ / shares	$ 46.17	34.34	34.50
RSAs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares or units granted (shares)	17,000
Granted (in dollars per share) \| $ / shares	$ 48.39	$ 30.65	$ 29.18
RSAs \| Directors
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Intrinsic value \| $	$ 0.8
RSAs \| Vest one year from grant date \| Directors
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period (years)	1 year
2017 Omnibus Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares authorized for issuance (shares)	4,000,000
2014 Stock Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares authorized for issuance (shares)	10,988,827
Stock Incentive Plans
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Awards contractual life (in years)	10 years
Associate stock purchase plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares authorized for issuance (shares)	850,000

Stock Incentive Plans - Stock Compensation Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
Stock compensation expense
Pre-tax stock based compensation expense	$ 14,886	$ 10,740	$ 12,670
Income tax benefit	(3,788)	(2,743)	(3,237)
After-tax stock based compensation expense	11,098	7,997	9,433
Stock options
Stock compensation expense
Pre-tax stock based compensation expense	2,632	2,827	8,562
Unrecognized compensation cost
Unrecognized compensation cost	$ 2,871
Expected remaining weighted-average period of expense recognition (in years)	1 year 8 months 26 days
RSUs and PSUs
Stock compensation expense
Pre-tax stock based compensation expense	$ 11,217	7,201	3,655
Unrecognized compensation cost
Unrecognized compensation cost	$ 14,928
Expected remaining weighted-average period of expense recognition (in years)	1 year 9 months 29 days
RSAs
Stock compensation expense
Pre-tax stock based compensation expense	$ 852	588	334
Unrecognized compensation cost
Unrecognized compensation cost	$ 314
Expected remaining weighted-average period of expense recognition (in years)	5 months 1 day
Associate stock purchase plan
Stock compensation expense
Pre-tax stock based compensation expense	$ 185	$ 124	$ 119

Stock Incentive Plans - Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
Service-based options
Number of Options Outstanding
Outstanding, beginning balance (shares)	1,194,000
Granted (shares)	111,000
Exercised (shares)	(550,000)
Forfeited (shares)	(29,000)
Outstanding, ending balance (shares)	726,000	1,194,000
Vested and exercisable (shares)	376,000
Weighted Average Exercise Price ($)
Outstanding, beginning balance (usd per share)	$ 18.92
Granted (usd per share)	46.19
Exercised (usd per share)	11.04
Forfeited (usd per share)	22.04
Outstanding, ending balance (usd per share)	28.91	$ 18.92
Vested and exercisable (usd per share)	$ 23.85
Outstanding, weighted average remaining contractual term (years)	6 years 9 months 29 days	6 years 2 months 8 days
Vested and exercisable, weighted average remaining contractual term (years)	6 years 2 months 1 day
Outstanding, aggregate intrinsic value (beginning balance)	$ 31,490
Outstanding, aggregate intrinsic value (ending Balance)	13,891	$ 31,490
Vested and exercisable, aggregate intrinsic value	$ 9,067
Weighted average grant date fair value (in usd per share)	$ 23.39	$ 13.71	$ 13.67
Fair value of options vested	$ 3,138	$ 3,313	$ 5,676
Aggregate intrinsic value of options exercised	$ 23,091	$ 22,549	$ 21,350
Performance-based options
Number of Options Outstanding
Outstanding, beginning balance (shares)	855,000
Granted (shares)	0	0	0
Exercised (shares)	(805,000)
Forfeited (shares)	0
Outstanding, ending balance (shares)	50,000	855,000
Vested and exercisable (shares)	50,000
Weighted Average Exercise Price ($)
Outstanding, beginning balance (usd per share)	$ 5.50
Exercised (usd per share)	4.87
Forfeited (usd per share)	0
Outstanding, ending balance (usd per share)	15.70	$ 5.50
Vested and exercisable (usd per share)	$ 15.70
Outstanding, weighted average remaining contractual term (years)	5 years 6 months 21 days	3 years 5 months 1 day
Vested and exercisable, weighted average remaining contractual term (years)	5 years 6 months 21 days
Outstanding, aggregate intrinsic value (beginning balance)	$ 34,018
Outstanding, aggregate intrinsic value (ending Balance)	1,604	$ 34,018
Vested and exercisable, aggregate intrinsic value	1,604
Fair value of options vested		1,400	$ 4,400
Aggregate intrinsic value of options exercised	$ 37,300	$ 20,000	$ 29,900

Stock Incentive Plans - Valuation Assumptions (Details) - Service-based options	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
Fair Value Assumptions
Expected volatility, minimum	52.49%	39.54%	34.50%
Expected volatility, maximum	54.03%	55.81%	37.10%
Expected term (in years)	6 years	6 years
Expected risk-free interest rate, minimum	0.97%	0.47%	1.68%
Expected risk-free interest rate, maximum	1.07%	1.13%	2.94%
Minimum
Fair Value Assumptions
Expected term (in years)			5 years 9 months
Maximum
Fair Value Assumptions
Expected term (in years)			6 years 6 months

Stock Incentive Plans - RSU, PSU, and RSA Activity (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
RSUs (In thousands)
Number of Awards Outstanding
Outstanding, beginning balance (shares)	454,000
Granted (shares)	139,000
Vested (shares)	(203,000)
Forfeited (shares)	(26,000)
Outstanding, ending balance (shares)	364,000	454,000
Weighted Average Grant Date Fair Value ($)
Outstanding, beginning balance (in dollars per share)	$ 30.85
Granted (in dollars per share)	46.52	$ 34.73	$ 29.56
Vested (in dollars per share)	30.37
Forfeited (in dollars per share)	36.78
Outstanding, ending balance (in dollars per share)	$ 36.67	$ 30.85
Vested in period, fair value	$ 6,154	$ 1,346	$ 2,178
PSUs (In thousands)
Number of Awards Outstanding
Outstanding, beginning balance (shares)	220,000
Granted (shares)	112,000
Vested (shares)	0
Forfeited (shares)	(15,000)
Outstanding, ending balance (shares)	317,000	220,000
Weighted Average Grant Date Fair Value ($)
Outstanding, beginning balance (in dollars per share)	$ 34.36
Granted (in dollars per share)	46.17	$ 34.34	$ 34.50
Vested (in dollars per share)	0
Forfeited (in dollars per share)	38.26
Outstanding, ending balance (in dollars per share)	$ 38.34	$ 34.36
Vested in period, fair value	$ 0	$ 0	$ 0
RSAs (In thousands)
Number of Awards Outstanding
Outstanding, beginning balance (shares)	22,000
Granted (shares)	17,000
Vested (shares)	(22,000)
Forfeited (shares)	0
Outstanding, ending balance (shares)	17,000	22,000
Weighted Average Grant Date Fair Value ($)
Outstanding, beginning balance (in dollars per share)	$ 31.85
Granted (in dollars per share)	48.39	$ 30.65	$ 29.18
Vested (in dollars per share)	31.85
Forfeited (in dollars per share)	0
Outstanding, ending balance (in dollars per share)	$ 48.39	$ 31.85
Vested in period, fair value	$ 700	$ 534	$ 133

Stock Incentive Plans - Associate Stock Purchase Plan (Details) - Associate stock purchase plan	12 Months Ended
	Jan. 01, 2022 USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Discount from the market trading value of common stock at time of purchase (percent)	10.00%
Maximum annual contribution per participant for stock purchase	$ 25,000

Income Taxes - Components of Income Tax Provision (Benefit) (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
Current income tax:
Federal	$ 138	$ 86	$ 443
State	4,242	2,550	864
Deferred income tax:
Federal	15,015	(219)	(2,972)
State	1,686	(14)	(644)
Income tax provision (benefit)	$ 21,081	$ 2,403	$ (2,309)

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References + Details

Income Taxes - Reconciliation of Effective Tax Rate (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
Income Tax Disclosure [Abstract]
Federal income tax provision at statutory rate	$ 31,358	$ 8,123	$ 6,403
State income tax provision, net of federal income tax	7,130	1,755	1,387
Increase (decrease) in deferred tax asset valuation allowance	(441)	(216)	(386)
Stranded tax effect of matured interest rate swaps	(2,125)	0	0
Tax benefit of equity-based compensation deductions	(14,408)	(7,996)	(10,089)
Other, net	(433)	737	376
Income tax provision (benefit)	$ 21,081	$ 2,403	$ (2,309)
Effective income tax rate (percent)	14.10%	6.20%	(7.60%)

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References + Details

Income Taxes - Deferred Tax Assets and Deferred Tax Liabilities (Details) - USD ($) $ in Thousands	Jan. 01, 2022	Jan. 02, 2021
Deferred tax assets:
NOL carry-forwards	$ 4,068	$ 10,841
Deferred interest expense carry-forwards	0	180
AMT payment and employment credits	2,290	3,541
Deferred revenue	5,700	5,498
Accrued expenses and reserves	10,020	9,361
Loss on equity and other investments	1,521	2,135
Stock-based compensation	5,167	5,135
Unrealized losses on hedging instruments	849	2,237
Operating lease liabilities	105,728	100,759
Other	0	1,349
Subtotal	135,343	141,036
Valuation allowances	(3,045)	(3,486)
Total net deferred tax assets	132,298	137,550
Deferred tax liabilities:
Depreciation of property and equipment	(50,019)	(37,592)
Amortization of intangible assets	(72,111)	(73,590)
Convertible debt discount	0	(18,819)
Gross deferred tax liabilities related to ROU assets	(90,751)	(86,266)
Other	(2,263)	(2,222)
Total deferred tax liabilities	(215,144)	(218,489)
Net deferred tax liabilities	$ (82,846)	$ (80,939)

Income Taxes - Narrative (Details) - USD ($) $ in Thousands	Jan. 01, 2022	Jan. 02, 2021
Operating Loss Carryforwards [Line Items]
Valuation allowance for NOL carry-forwards not likely to be realized	$ 4,300
Valuation allowances	3,045	$ 3,486
Deferred tax asset associated with equity method non-consolidated investee	1,500
Professional Corprations
Operating Loss Carryforwards [Line Items]
Valuation allowances	900
U.S. federal
Operating Loss Carryforwards [Line Items]
NOL carryforwards	7,800
NOL carryforwards not subject to expiration	7,500
NOL carryforwards expiring at end of fiscal year 2037	300
U.S. federal and state
Operating Loss Carryforwards [Line Items]
Non-expiring AMT carryforward credits and employment credits	$ 2,300

Revenue From Contracts With Customers - Narrative (Details)	12 Months Ended
	Jan. 01, 2022
Disaggregation of Revenue [Line Items]
Time frame for majority of payments on health care plans and programs accounts (in days)	90 days
Owned & Host
Disaggregation of Revenue [Line Items]
Extended warranty plan, term (in years)	1 year
Eye care club membership, term one (in years)	3 years
Eye care club membership, term two (in years)	5 years
Minimum
Disaggregation of Revenue [Line Items]
General payment terms for accounts on health care plans and programs (in days)	14 days
Maximum
Disaggregation of Revenue [Line Items]
General payment terms for accounts on health care plans and programs (in days)	120 days

Revenue From Contracts With Customers - Disaggregation of Revenues (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
Disaggregation of Revenue [Line Items]
Total net revenue	$ 2,079,525	$ 1,711,760	$ 1,724,331
Revenues recognized at a point in time
Disaggregation of Revenue [Line Items]
Total net revenue	1,908,221	1,569,757	1,578,379
Revenues recognized over time
Disaggregation of Revenue [Line Items]
Total net revenue	$ 171,304	$ 142,003	$ 145,952

- 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)
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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-Publisher FASB
-Name Accounting Standards Codification
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-Section 50
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-Publisher FASB
-Name Accounting Standards Codification
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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-Section 50
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-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9054-108599

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
-Topic 606
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Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-Section S99
-Paragraph 1
-Subparagraph (SAB Topic 11.L)
-URI http://asc.fasb.org/extlink&oid=6472922&loc=d3e499488-122856

+ Details

Leases - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended
Leases - Narrative (Details) - USD ($) $ in Thousands	Jul. 03, 2021	Jan. 01, 2022	Jan. 02, 2021
Lessee, Lease, Description [Line Items]
Lease concessions		$ 357	$ 3,142
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

Leases - Lease Type and Classification (Details) - USD ($) $ in Thousands	Jan. 01, 2022	Jan. 02, 2021
ASSETS
Property and equipment, net	$ 19,390	$ 24,373
Right of use assets	354,900	340,141
Total leased assets	374,290	364,514
LIABILITIES
Finance lease liabilities, current	3,999	3,598
Operating lease liabilities, current	60,930	58,356
Finance lease liabilities, non-current	22,515	27,152
Operating lease liabilities, non-current	342,241	327,371
Total lease liabilities	429,685	416,477
Finance lease assets accumulated amortization	16,800	12,400
TIA receivable netted to operating lease liabilities	$ 6,600	$ 3,800
Finance lease, right of use assets, balance sheet	Property and equipment, net	Property and equipment, net
Finance lease liabilities, current, balance sheet	Current maturities of long-term debt and finance lease obligations	Current maturities of long-term debt and finance lease obligations
Finance lease liabilities, non-current, balance sheet	Long-term debt and finance lease obligations, less current portion and debt discount	Long-term debt and finance lease obligations, less current portion and debt discount

Leases - Lease Costs (Details) - USD ($) $ in Thousands	12 Months Ended
Leases - Lease Costs (Details) - USD ($) $ in Thousands	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
Lease Cost
Fixed lease cost	$ 84,019	$ 79,387	$ 73,971
Variable lease cost	30,643	28,158	26,466
Sublease income	(3,557)	(2,700)	(2,930)
Amortization of finance lease assets	4,461	4,561	4,418
Interest on finance lease liabilities	2,923	3,656	3,573
Net lease cost	$ 118,489	$ 113,062	$ 105,498

Leases - Lease Term and Discount Rate (Details)	12 Months Ended
Leases - Lease Term and Discount Rate (Details)	Jan. 01, 2022	Jan. 02, 2021
Lessee, Lease, Description [Line Items]
Operating leases, weighted average remaining lease term (months)	76 months	77 months
Finance leases, weighted average remaining lease term (months)	72 months	79 months
Operating leases, weighted average discount rate (percent)	4.50%	4.70%
Finance leases, weighted average discount rate (percent)	11.70%	12.30%
Maximum \| Stores, laboratories, distribution centers, offices
Lessee, Lease, Description [Line Items]
Lease terms (in years)	10 years
Minimum \| Stores, laboratories, distribution centers, offices
Lessee, Lease, Description [Line Items]
Lease terms (in years)	5 years

Leases - Other Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
Cash paid for amounts included in the measurement of lease liabilities
Operating cash outflows - operating leases	$ 89,324	$ 84,913	$ 75,330
Right of use assets acquired under finance leases	0	1,257	9,713
Right of use assets acquired under operating leases	$ 91,451	$ 68,081	$ 108,712

Leases - Maturity of Lease Liabilities (Details) - USD ($) $ in Thousands	Jan. 01, 2022	Jan. 02, 2021
Operating Leases
2022	$ 77,373
2023	84,471
2024	73,461
2025	68,409
2026	51,160
Thereafter	111,468
Total lease liabilities	466,342
Less: Interest	63,171
Present value of lease liabilities	403,171
Finance Leases
2022	6,752
2023	6,252
2024	4,753
2025	4,913
2026	4,519
Thereafter	6,917
Total lease liabilities	34,106
Less: Interest	7,592
Finance lease obligations	26,514	$ 30,750
Operating lease payments related to reasonably certain option extensions included in total lease payments	44,300
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	$ 24,500

Fair Value Measurement (Details) - USD ($) $ in Thousands	12 Months Ended
Fair Value Measurement (Details) - USD ($) $ in Thousands	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019	May 31, 2020
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Discount rate used in impairment analysis (in percent)	7.50%
Aggregate principal amount	$ 552,500	$ 719,875
Convertible senior notes \| 2025 Notes
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Aggregate principal amount	$ 402,500	402,500
Stated interest rate (percent)	2.50%			2.50%
Convertible senior notes \| 2025 Notes \| Estimated Fair Value \| Level 2
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Estimated fair value of convertible notes	$ 674,900
Long-lived tangible store assets held and used
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Asset impairment charges for long-live tangible assets held and used	4,400	22,000	$ 8,900
Assets impaired during 2021
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Estimated fair value of impaired assets	$ 6,800
Assets impaired during 2020
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Estimated fair value of impaired assets		$ 30,600

Deferred Revenue - Roll-Forward of Deferred Revenue (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021
Contract Liability
Deferred revenue, beginning balance	$ 79,727	$ 77,400
Sold	138,329	110,980
Revenue recognized	(129,565)	(108,653)
Deferred revenue, ending balance	88,491	79,727
Product Protection Plans
Contract Liability
Deferred revenue, beginning balance	34,147	30,911
Sold	80,690	63,535
Revenue recognized	(76,198)	(60,299)
Deferred revenue, ending balance	38,639	34,147
Eye Care Clubs
Contract Liability
Deferred revenue, beginning balance	45,580	46,486
Sold	57,639	47,445
Revenue recognized	(53,367)	(48,351)
Deferred revenue, ending balance	49,852	45,580
HMO Memberships
Contract Liability
Deferred revenue, beginning balance	$ 0	3
Sold		0
Revenue recognized		(3)
Deferred revenue, ending balance		$ 0

Deferred Revenue - Current and Non-current Balances (Details) - USD ($) $ in Thousands	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
Disaggregation of Revenue [Line Items]
Deferred revenue, current	$ 65,325	$ 58,899
Deferred revenue, noncurrent	23,166	20,828
Deferred revenue	88,491	79,727	$ 77,400
Product Protection Plans
Disaggregation of Revenue [Line Items]
Deferred revenue, current	38,335	33,810
Deferred revenue, noncurrent	304	337
Deferred revenue	38,639	34,147	30,911
Eye Care Clubs
Disaggregation of Revenue [Line Items]
Deferred revenue, current	26,990	25,089
Deferred revenue, noncurrent	22,862	20,491
Deferred revenue	$ 49,852	45,580	46,486
HMO Memberships
Disaggregation of Revenue [Line Items]
Deferred revenue, current		0
Deferred revenue, noncurrent		0
Deferred revenue		$ 0	$ 3

Deferred Revenue - Narrative (Details) - USD ($) $ in Millions	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021
Revenue from Contract with Customer [Abstract]
Revenue recognized	$ 58.9	$ 55.9
Revenue recognized excluding opening balance	$ 70.7	$ 52.8

Deferred Revenue - Deferred Revenue Remaining Performance Obligation (Details) $ in Thousands	Jan. 01, 2022 USD ($)
Revenue from Contract with Customer [Abstract]
Performance obligation remaining	$ 88,491
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-02
Revenue from Contract with Customer [Abstract]
Performance obligation remaining	$ 65,325
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Estimated timing of recognition of performance obligation	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-02
Revenue from Contract with Customer [Abstract]
Performance obligation remaining	$ 17,424
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Estimated timing of recognition of performance obligation	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-02
Revenue from Contract with Customer [Abstract]
Performance obligation remaining	$ 5,510
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Estimated timing of recognition of performance obligation	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-02
Revenue from Contract with Customer [Abstract]
Performance obligation remaining	$ 175
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Estimated timing of recognition of performance obligation	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-02
Revenue from Contract with Customer [Abstract]
Performance obligation remaining	$ 57
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Estimated timing of recognition of performance obligation	1 year

Commitments and Contingencies - Narrative (Details) - USD ($) $ in Millions	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
Commitments and Contingencies Disclosure [Abstract]
Contractual commitments	$ 118.1
401(k) plan expense	$ 8.7	$ 5.3	$ 5.3

Commitments and Contingencies - Warranty Costs (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021
Movement in Product Warrant Liability Accounts
Beginning balance	$ 2,229	$ 1,881
Accrued obligation	33,906	28,415
Claims paid	(34,072)	(28,067)
Ending balance	$ 2,063	$ 2,229

Interest Rate Derivatives (Details) - USD ($) $ in Millions	12 Months Ended
Interest Rate Derivatives (Details) - USD ($) $ in Millions	Jan. 01, 2022	Jan. 02, 2021
Derivative [Line Items]
Gain on derivative	$ 4.2
Loss on change in fair value		$ (2.6)
Interest expense on highly effective hedges	1.5	7.7
Estimated reclassification from AOCL to earnings in next 12 months	0.8
Not Designated as Hedging Instrument
Derivative [Line Items]
Derivative liabilities	3.3
Designated as Hedging Instrument
Derivative [Line Items]
Derivative liabilities		1.5
Interest rate swap and collar
Derivative [Line Items]
Notional amount	375.0
Derivative liabilities		12.8
Interest rate swap and collar \| Interest expense, net
Derivative [Line Items]
Reclassification of net unrealized losses on discontinuance of hedge accounting	$ 3.4	$ 2.5

Earnings Per Share - Narrative (Details) - USD ($) $ in Thousands	Jan. 01, 2022	Jan. 02, 2021
Debt Instrument [Line Items]
Aggregate principal amount	$ 552,500	$ 719,875
Convertible senior notes \| 2025 Notes
Debt Instrument [Line Items]
Aggregate principal amount	$ 402,500	$ 402,500

Earnings Per Share - Reconciliation of Basic and Diluted EPS Calculations (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Net income	$ 128,244	$ 36,277	$ 32,798
After-tax interest expense for 2025 Notes	9,483	0	0
Numerator for diluted EPS	$ 137,727	$ 36,277	$ 32,798
Weighted average shares outstanding for basic EPS (shares)	81,820	80,565	78,608
Effect of dilutive securities:
Stock options (shares)	919	1,737	3,019
Restricted Stock (shares)	483	183	56
2025 Notes (shares)	12,912	308	0
Weighted average shares outstanding for diluted EPS (shares)	96,134	82,793	81,683
Basic EPS (in usd per share)	$ 1.57	$ 0.45	$ 0.42
Diluted EPS (in usd per share)	$ 1.43	$ 0.44	$ 0.40
Options, RSUs, and 2025 Notes
Effect of dilutive securities:
Anti-dilutive options, RSUs outstanding, and 2025 Notes excluded from EPS (shares)	94	13,325	294

Segment Reporting - Narrative (Details) $ in Thousands			12 Months Ended
Segment Reporting - Narrative (Details) $ in Thousands	Jul. 17, 2020	Jan. 22, 2020 visionCenter	Jan. 01, 2022 USD ($) store segment visionCenter	Jan. 02, 2021 USD ($) store	Dec. 28, 2019 USD ($)
Segment Reporting Information [Line Items]
Number of reportable segments \| segment			2
Number of host operating segments \| segment			2
Number of retail vision centers \| store			1,278	1,205
Net revenue			$ 2,079,525	$ 1,711,760	$ 1,724,331
Corporate level COVID-19 related supplies expense and professional fees			$ 1,500	8,600
Walmart
Segment Reporting Information [Line Items]
Management and services agreement, extension	3 years	6 months
Number of Vision Centers added to the management and services agreement \| visionCenter		5
Management and services agreement, automatic renewal	3 years
Period of time prior to end of term for written notice of non-renewal (in months)	7 months
Legacy
Segment Reporting Information [Line Items]
Number of retail vision centers \| visionCenter			230
Management of operations \| Legacy
Segment Reporting Information [Line Items]
Net revenue			$ 41,700	$ 33,400	$ 35,500

Segment Reporting - Financial Data by Segment (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
Segment Reporting Information [Line Items]
Total net revenue	$ 2,079,525	$ 1,711,760	$ 1,724,331
Total costs applicable to revenue	904,779	786,624	806,519
SG&A	900,798	724,985	744,488
Asset impairment	4,427	22,004	8,894
Other expense (income), net	(2,505)	(445)	3,611
Loss on extinguishment of debt	0	0	9,786
Depreciation and amortization	97,089	91,585	87,244
Interest expense, net	25,612	48,327	33,300
Earnings before income taxes	149,325	38,680	30,489
Products
Segment Reporting Information [Line Items]
Total net revenue	1,718,344	1,418,283	1,426,136
Total costs applicable to revenue	633,116	551,783	574,351
Services and plans
Segment Reporting Information [Line Items]
Total net revenue	361,181	293,477	298,195
Total costs applicable to revenue	271,663	234,841	232,168
Operating Segments \| Owned & Host
Segment Reporting Information [Line Items]
Total net revenue	1,683,715	1,342,399	1,325,000
Total costs applicable to revenue	623,831	518,126	517,668
SG&A	618,413	489,449	508,239
Asset impairment	0	0	0
Other expense (income), net	0	0	0
Loss on extinguishment of debt			0
EBITDA	441,471	334,824	299,093
Operating Segments \| Owned & Host \| Products
Segment Reporting Information [Line Items]
Total net revenue	1,375,983	1,097,749	1,076,315
Total costs applicable to revenue	377,489	307,813	310,790
Operating Segments \| Owned & Host \| Services and plans
Segment Reporting Information [Line Items]
Total net revenue	307,732	244,650	248,685
Total costs applicable to revenue	246,342	210,313	206,878
Operating Segments \| Legacy
Segment Reporting Information [Line Items]
Total net revenue	165,477	142,017	160,049
Total costs applicable to revenue	74,579	67,229	74,001
SG&A	57,838	51,809	56,235
Asset impairment	0	0	0
Other expense (income), net	0	0	0
Loss on extinguishment of debt			0
EBITDA	33,060	22,979	29,813
Operating Segments \| Legacy \| Products
Segment Reporting Information [Line Items]
Total net revenue	103,249	90,909	105,450
Total costs applicable to revenue	49,258	43,452	48,712
Operating Segments \| Legacy \| Services and plans
Segment Reporting Information [Line Items]
Total net revenue	62,228	51,108	54,599
Total costs applicable to revenue	25,321	23,777	25,289
Operating Segments \| Corporate/Other
Segment Reporting Information [Line Items]
Total net revenue	236,299	234,403	245,218
Total costs applicable to revenue	205,670	202,631	215,053
SG&A	224,547	183,727	180,014
Asset impairment	4,427	22,004	8,894
Other expense (income), net	(2,505)	(445)	3,611
Loss on extinguishment of debt			9,786
EBITDA	(195,840)	(173,514)	(172,140)
Operating Segments \| Corporate/Other \| Products
Segment Reporting Information [Line Items]
Total net revenue	236,299	234,403	245,206
Total costs applicable to revenue	205,670	201,880	215,052
Operating Segments \| Corporate/Other \| Services and plans
Segment Reporting Information [Line Items]
Total net revenue	0	0	12
Total costs applicable to revenue	0	751	1
Reconciliations
Segment Reporting Information [Line Items]
Total net revenue	(5,966)	(7,059)	(5,936)
Total costs applicable to revenue	699	(1,362)	(203)
SG&A	0	0	0
Asset impairment	0	0	0
Other expense (income), net	0	0	0
Loss on extinguishment of debt			0
EBITDA	(6,665)	(5,697)	(5,733)
Reconciliations \| Products
Segment Reporting Information [Line Items]
Total net revenue	2,813	(4,778)	(835)
Total costs applicable to revenue	699	(1,362)	(203)
Reconciliations \| Services and plans
Segment Reporting Information [Line Items]
Total net revenue	(8,779)	(2,281)	(5,101)
Total costs applicable to revenue	$ 0	$ 0	$ 0

Segment Reporting - Consolidated Net Product Revenue Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
Revenue from External Customer [Line Items]
Total net revenue	$ 2,079,525	$ 1,711,760	$ 1,724,331
Walmart
Revenue from External Customer [Line Items]
Total net revenue	300,800	268,600
Products
Revenue from External Customer [Line Items]
Total net revenue	1,718,344	1,418,283	1,426,136
Eyeglasses and sunglasses
Revenue from External Customer [Line Items]
Total net revenue	1,201,386	946,025	947,729
Contact lenses
Revenue from External Customer [Line Items]
Total net revenue	509,992	466,262	471,042
Accessories and other
Revenue from External Customer [Line Items]
Total net revenue	$ 6,966	$ 5,996	$ 7,365

- Definition

+ References

+ Details

Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
Accumulated Other Comprehensive Loss
Beginning balance	$ 906,502	$ 776,437	$ 743,154
Ending balance	925,980	906,502	776,437
Cash Flow Hedges
Accumulated Other Comprehensive Loss
Beginning balance	(4,400)	(3,814)	(2,810)
Other comprehensive income (loss) before reclassification	(10)	(11,108)	(5,814)
Tax effect of other comprehensive income (loss) before reclassification	3	2,830	1,489
Amount reclassified from AOCL	6,168	10,328	4,464
Tax effect of amount reclassified from AOCL	(1,576)	(2,636)	(1,143)
Stranded tax effect of matured interest rate swaps	(2,125)	0	0
Net current period other comprehensive income (loss), net of tax	2,460	(586)	(1,004)
Ending balance	$ (1,940)	$ (4,400)	$ (3,814)

- 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

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(g)(1)(ii))
-URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

Reference 2: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 852
-SubTopic 10
-Section 55
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=84165509&loc=d3e56426-112766

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 310
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SAB Topic 4.E)
-URI http://asc.fasb.org/extlink&oid=122038336&loc=d3e74512-122707

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02(31))
-URI http://asc.fasb.org/extlink&oid=120391452&loc=d3e13212-122682

Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02(29))
-URI http://asc.fasb.org/extlink&oid=120391452&loc=d3e13212-122682

Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02(30))
-URI http://asc.fasb.org/extlink&oid=120391452&loc=d3e13212-122682

Reference 7: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 28
-Subparagraph (f)
-URI http://asc.fasb.org/extlink&oid=123596393&loc=d3e14064-108612

Reference 8: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 323
-SubTopic 10
-Section 50
-Paragraph 3
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=114001798&loc=d3e33918-111571

+ Details

Schedule I - Condensed Financial Information of Registrant - Condensed Balance Sheets (Details) - USD ($) $ in Thousands	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019	Dec. 29, 2018
Current assets:
Cash and cash equivalents	$ 305,800	$ 373,903	$ 39,342
Accounts receivable, net	55,697	57,989
Prepaid expenses and other current assets	29,410	23,484
Total current assets	514,576	566,650
Total non-current assets	1,778,515	1,766,848
Total assets	2,293,091	2,333,498
Current liabilities:
Other payables and accrued expenses	119,323	110,309
Long-term debt, less current portion and debt discount	543,566	624,611
Non-current liabilities:
Other liabilities	8,974	17,415
Deferred income taxes, net	82,846	80,939
Total other non-current liabilities	114,986	119,182
Stockholders’ equity:
Common stock, $0.01 par value; 200,000 shares authorized; 83,840 and 82,183 shares issued as of January 1, 2022 and January 2, 2021, respectively; 81,405 and 81,239 shares outstanding as of January 1, 2022 and January 2, 2021, respectively	838	821
Additional paid-in capital	750,478	795,697
Accumulated other comprehensive loss	(1,940)	(4,400)
Retained earnings	278,395	142,880
Treasury stock, at cost; 2,435 and 944 shares as of January 1, 2022 and January 2, 2021, respectively	(101,791)	(28,496)
Total stockholders’ equity	925,980	906,502	$ 776,437	$ 743,154
Total liabilities and stockholders’ equity	2,293,091	2,333,498
Parent Company
Current assets:
Cash and cash equivalents	1,683	10
Accounts receivable, net	0	1,409
Prepaid expenses and other current assets	734	5
Total current assets	2,417	1,424
Deferred income taxes	4,975	0
Investment in subsidiary	1,388,583	1,268,846
Total non-current assets	1,393,558	1,268,846
Total assets	1,395,975	1,270,270
Current liabilities:
Other payables and accrued expenses	1,342	1,341
Long-term debt, less current portion and debt discount	394,514	309,377
Non-current liabilities:
Other liabilities	74,139	36,308
Deferred income taxes, net	0	16,742
Total other non-current liabilities	74,139	53,050
Stockholders’ equity:
Common stock, $0.01 par value; 200,000 shares authorized; 83,840 and 82,183 shares issued as of January 1, 2022 and January 2, 2021, respectively; 81,405 and 81,239 shares outstanding as of January 1, 2022 and January 2, 2021, respectively		821
Additional paid-in capital		795,697
Accumulated other comprehensive loss	(1,940)	(4,400)
Retained earnings	278,395	142,880
Treasury stock, at cost; 2,435 and 944 shares as of January 1, 2022 and January 2, 2021, respectively	(101,791)	(28,496)
Total stockholders’ equity	925,980	906,502
Total liabilities and stockholders’ equity	$ 1,395,975	$ 1,270,270

Schedule I - Condensed Financial Information of Registrant - Condensed Balance Sheets Additional Information (Details) - $ / shares	Jan. 01, 2022	Jan. 02, 2021	Aug. 07, 2019
Condensed Financial Statements, Captions [Line Items]
Common stock, par value (in usd per share)	$ 0.01		$ 0.01
Treasury stock, at cost (shares)	2,435,000
Parent Company
Condensed Financial Statements, Captions [Line Items]
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)	83,840,000	82,183,000
Common stock, outstanding (shares)	81,405,000	81,239,000
Treasury stock, at cost (shares)		944,000

Schedule I - Condensed Financial Information of Registrant - Condensed Statements of Operations and Comprehensive Income (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
Condensed Financial Statements, Captions [Line Items]
Total net revenue	$ 2,079,525	$ 1,711,760	$ 1,724,331
Total costs applicable to revenue	904,779	786,624	806,519
Total operating expenses	999,809	838,129	844,237
Interest expense, net	25,612	48,327	33,300
Earnings (loss) before income taxes	149,325	38,680	30,489
Income tax provision (benefit)	21,081	2,403	(2,309)
Net income	128,244	36,277	32,798
Comprehensive income:
Net income	128,244	36,277	32,798
Unrealized gain (loss) on hedge instruments	6,158	(780)	(1,350)
Tax provision (benefit) of unrealized gain (loss) on hedge instruments	3,698	(194)	(346)
Comprehensive income	130,704	35,691	31,794
Parent Company
Condensed Financial Statements, Captions [Line Items]
Total net revenue	0	0	0
Total costs applicable to revenue	0	0	0
Total operating expenses	256	264	256
Interest expense, net	12,275	17,296	0
Earnings (loss) before income taxes	(12,531)	(17,560)	(256)
Income tax provision (benefit)	(2,898)	(3,959)	71
Earnings (loss) before equity in net income of subsidiaries	(9,633)	(13,601)	(327)
Net income of subsidiaries	137,877	49,878	33,125
Net income	128,244	36,277	32,798
Comprehensive income:
Net income	128,244	36,277	32,798
Unrealized gain (loss) on hedge instruments	6,158	(780)	(1,350)
Tax provision (benefit) of unrealized gain (loss) on hedge instruments	3,698	(194)	(346)
Comprehensive income	$ 130,704	$ 35,691	$ 31,794

Schedule I - Condensed Financial Information of Registrant - Condensed Statements of Cash Flows (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 01, 2022	Jan. 02, 2021	Dec. 28, 2019
Cash flows from operating activities
Net cash provided by operating activities	$ 258,938	$ 234,981	$ 165,081
Cash flows from investing activities
Net cash provided by (used for) investing activities	(92,897)	(76,410)	(100,631)
Cash flows from financing activities
Borrowings on long-term debt, net of discounts	0	548,769	566,550
Proceeds from issuance of common stock	11,838	13,105	14,767
Purchase of treasury stock	(73,295)	(689)	(25,646)
Payments of debt issuance costs	(900)	(12,439)	(2,930)
Net cash provided by (used for) financing activities	(234,324)	176,281	(42,141)
Net change in cash, cash equivalents and restricted cash	(68,283)	334,852	22,309
Cash, cash equivalents and restricted cash, beginning of year	375,159	40,307	17,998
Cash, cash equivalents and restricted cash, end of year	306,876	375,159	40,307
Parent Company
Cash flows from operating activities
Net cash provided by operating activities	16,530	1,189	25,455
Cash flows from investing activities
Investment in subsidiary	46,600	(404,537)	(15,090)
Net cash provided by (used for) investing activities	46,600	(404,537)	(15,090)
Cash flows from financing activities
Borrowings on long-term debt, net of discounts	0	402,500	0
Proceeds from issuance of common stock	11,838	13,105	15,090
Purchase of treasury stock	(73,295)	(689)	(25,646)
Payments of debt issuance costs	0	(11,613)	0
Net cash provided by (used for) financing activities	(61,457)	403,303	(10,556)
Net change in cash, cash equivalents and restricted cash	1,673	(45)	(191)
Cash, cash equivalents and restricted cash, beginning of year	10	55	246
Cash, cash equivalents and restricted cash, end of year	$ 1,683	$ 10	$ 55

Schedule I - Condensed Financial Information of Registrant - Notes to Condensed Financial Statements (Details) - USD ($)		3 Months Ended
	May 12, 2020	Sep. 28, 2019	Jan. 01, 2022	Jan. 02, 2021	May 31, 2020	Jul. 18, 2019
Condensed Financial Statements, Captions [Line Items]
Aggregate principal amount			$ 552,500,000	$ 719,875,000
Convertible senior notes \| 2025 Notes
Condensed Financial Statements, Captions [Line Items]
Aggregate principal amount					$ 402,500,000
Stated interest rate (percent)			2.50%		2.50%
Aggregate principal amount			$ 402,500,000	402,500,000
Credit facility \| Revolving Credit Facility
Condensed Financial Statements, Captions [Line Items]
Repayment of revolving credit facility	$ 294,300,000
Aggregate principal amount			0	0
Amount outstanding on line of credit			0
Credit facility borrowing capacity			300,000,000			$ 300,000,000
Outstanding letters of credit			6,400,000
Term loan \| Term loan, due July 18, 2024
Condensed Financial Statements, Captions [Line Items]
Repayment of term loan	$ 75,000,000	$ 25,000,000
Aggregate principal amount			$ 150,000,000	$ 317,375,000