Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Sep. 29, 2018	Oct. 31, 2018
Document And Entity Information [Abstract]
Entity Registrant Name	National Vision Holdings, Inc.
Entity Central Index Key	0001710155
Current Fiscal Year End Date	--12-29
Entity Filer Category	Non-accelerated Filer
Document Type	10-Q
Document Period End Date	Sep. 29, 2018
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	Q3
Amendment Flag	false
Entity Common Stock, Shares Outstanding		77,164,296

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 29, 2018	Dec. 30, 2017
Current assets:
Cash and cash equivalents	$ 48,881	$ 4,208
Accounts receivable, net	38,875	43,193
Inventories	99,280	91,151
Prepaid expenses and other current assets	24,065	23,925
Total current assets	211,101	162,477
Property and equipment, net	340,626	304,132
Other assets:
Goodwill	792,744	792,744
Other assets	9,052	10,988
Total non-current assets	1,449,593	1,421,314
Total assets	1,660,694	1,583,791
Current liabilities:
Accounts payable	30,885	35,708
Other payables and accrued expenses	81,465	77,611
Unearned revenue	23,035	27,739
Deferred revenue	53,951	62,993
Current maturities of long-term debt	7,863	7,258
Total current liabilities	197,199	211,309
Long-term debt, less current portion and debt discount	566,932	561,980
Other non-current liabilities:
Deferred revenue	20,723	31,222
Other liabilities	42,291	46,044
Deferred income taxes, net	75,378	73,648
Total other non-current liabilities	138,392	150,914
Commitments and contingencies
Stockholders’ equity:
Common stock, $0.01 par value; 200,000 shares authorized; 77,136 and 74,654 shares issued as of September 29, 2018 and December 30, 2017, respectively; 77,082 and 74,654 shares outstanding as of September 29, 2018 and December 30, 2017, respectively	770	746
Additional paid-in capital	659,480	631,798
Accumulated other comprehensive loss	(1,059)	(9,868)
Retained earnings	100,113	37,145
Treasury stock, at cost; 54 and 28 shares as of September 29, 2018 and December 30, 2017, respectively	(1,133)	(233)
Total stockholders’ equity	758,171	659,588
Total liabilities and stockholders’ equity	1,660,694	1,583,791
Trademarks and trade names
Other assets:
Intangible assets	240,547	240,547
Other intangible assets, net
Other assets:
Intangible assets	$ 66,624	$ 72,903

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 29, 2018	Dec. 30, 2017
Statement of Financial Position [Abstract]
Common stock, par value (in usd per share)	$ 0.01	$ 0.01
Common stock, authorized (shares)	200,000,000	200,000,000
Common stock, issued (shares)	77,136,000	74,654,000
Common stock, outstanding (shares)	77,082,000	74,654,000
Treasury stock (shares)	54,000	28,000

Condensed Consolidated Statements of Operations and Comprehensive Income - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 29, 2018	Sep. 30, 2017	Sep. 29, 2018	Sep. 30, 2017
Revenue:
Total net revenue	$ 387,425	$ 346,089	$ 1,180,932	$ 1,053,489
Costs applicable to revenue (exclusive of depreciation and amortization):
Total costs applicable to revenue	182,588	162,358	540,101	484,573
Operating expenses:
Selling, general and administrative expenses	184,424	151,251	519,564	445,714
Depreciation and amortization	19,080	15,352	54,080	44,404
Asset impairment	2,137	0	2,137	1,000
Litigation settlement	0	0	0	7,000
Other expense, net	411	568	829	744
Total operating expenses	206,052	167,171	576,610	498,862
(Loss) income from operations	(1,215)	16,560	64,221	70,054
Interest expense, net	9,407	14,851	28,144	40,965
Debt issuance costs	0	0	0	2,702
(Loss) earnings before income taxes	(10,622)	1,709	36,077	26,387
Income tax (benefit) provision	(16,438)	163	(7,863)	9,267
Net income	$ 5,816	$ 1,546	$ 43,940	$ 17,120
Earnings per share:
Basic (in usd per share)	$ 0.08	$ 0.03	$ 0.58	$ 0.30
Diluted (in usd per share)	$ 0.07	$ 0.03	$ 0.56	$ 0.29
Weighted average shares outstanding:
Basic (shares)	76,118	56,414	75,361	56,363
Diluted (shares)	79,710	58,459	78,571	58,281
Comprehensive income:
Net income	$ 5,816	$ 1,546	$ 43,940	$ 17,120
Unrealized gain on hedge instruments	2,267	2,255	11,842	2,176
Tax provision of unrealized gain on hedge instruments	(580)	(872)	(3,033)	(843)
Comprehensive income	7,503	2,929	52,749	18,453
Products
Revenue:
Total net revenue	319,312	283,648	977,497	867,192
Costs applicable to revenue (exclusive of depreciation and amortization):
Total costs applicable to revenue	130,951	115,752	389,560	349,099
Services and plans
Revenue:
Total net revenue	68,113	62,441	203,435	186,297
Costs applicable to revenue (exclusive of depreciation and amortization):
Total costs applicable to revenue	$ 51,637	$ 46,606	$ 150,541	$ 135,474

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 29, 2018	Sep. 30, 2017
Cash flows from operating activities:
Net income	$ 43,940	$ 17,120
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	54,080	44,404
Amortization of loan costs	1,287	3,075
Asset impairment	2,137	1,000
Deferred income tax (benefit) expense	(8,060)	8,922
Non-cash stock option compensation	13,749	3,140
Non-cash inventory adjustments	2,491	4,695
Bad debt expense	4,981	4,513
Debt issuance costs	0	2,702
Other	1,555	388
Changes in operating assets and liabilities:
Accounts receivable	(663)	(9,254)
Inventories	(10,620)	(7,001)
Other assets	381	2,487
Accounts payable	(4,823)	(5,838)
Deferred revenue	6,235	9,022
Other liabilities	9,282	16,876
Net cash provided by operating activities	115,952	96,251
Cash flows from investing activities:
Purchase of property and equipment	(78,813)	(67,135)
Purchase of investments	0	(1,500)
Other	136	125
Net cash used for investing activities	(78,677)	(68,510)
Cash flows from financing activities:
Proceeds from issuance of long-term debt	0	173,712
Proceeds from exercise of stock options	0	1,004
Proceeds from exercise of stock options	14,032	1,088
Principal payments on long-term debt	(4,275)	(6,236)
Purchase of treasury stock	(900)	0
Payments on capital lease obligations	(1,256)	(710)
Debt issuance costs	0	(2,702)
Dividend to stockholders	0	(170,983)
Net cash provided by (used for) financing activities	7,601	(4,827)
Net change in cash, cash equivalents and restricted cash	44,876	22,914
Cash, cash equivalents and restricted cash, beginning of year	5,193	5,687
Cash, cash equivalents and restricted cash, end of period	50,069	28,601
Reconciliation of Cash, Cash Equivalents, and Restricted Cash:
Total cash, cash equivalents and restricted cash	$ 5,193	$ 5,687

Description of Business and Basis of Presentation	9 Months Ended
Description of Business and Basis of Presentation	Sep. 29, 2018
Accounting Policies [Abstract]
Description of Business and Basis of Presentation	Description of Business and Basis of Presentation Nature of Operations National Vision Holdings, Inc. (“NVHI,” the “Company,” “we,” “our,” or “us”) is a holding company whose operating subsidiaries include its indirect wholly owned subsidiary, National Vision, Inc. (“NVI”) and NVI’s direct wholly owned subsidiaries. The Company is a leading value retailer of eyeglasses and contact lenses in the United States and its territories. We operated 1,067 and 1,013 retail optical locations as of September 29, 2018 and December 30, 2017, respectively, through our five store brands, America’s Best Contacts and Eyeglasses (“America’s Best”), Eyeglass World, Vista Optical locations on U.S. Army/Air Force military bases and within Fred Meyer stores, and our management and services arrangement with Walmart (“legacy”). Basis of Presentation We prepared the accompanying condensed consolidated financial statements in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and, therefore, do not include all information and disclosures required by U.S. GAAP for complete consolidated financial statements. The condensed consolidated balance sheet as of December 30, 2017 has been derived from the audited consolidated balance sheet for the fiscal year then ended. These unaudited interim condensed consolidated financial statements reflect all normal and recurring adjustments which are, in the opinion of management, necessary to present fairly the Company’s consolidated financial position as of September 29, 2018, the consolidated results of operations and comprehensive income for the three and nine months ended September 29, 2018 and September 30, 2017 and its statements of cash flows for the nine months ended September 29, 2018 and September 30, 2017. Certain information and disclosures normally included in our annual consolidated financial statements have been condensed or omitted; however, we believe that the disclosures included herein are adequate to make the information presented not misleading. These interim condensed consolidated financial statements should be read in conjunction with our audited consolidated financial statements and the notes thereto for the fiscal year ended December 30, 2017 included in the Company’s Annual Report on Form 10-K for fiscal year 2017 filed on March 8, 2018. The Company’s significant accounting policies are set forth in Note 1 within those consolidated financial statements. We use the same accounting policies in preparing interim condensed consolidated financial information and annual consolidated financial statements. There were no changes to our significant accounting policies during the nine months ended September 29, 2018, except for the adoption of Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers and ASU No. 2016-18, Restricted Cash. See “Adoption of New Accounting Pronouncements” below for further discussion. Changes to stockholders’ equity associated with changes in unrealized gains and losses on cash flow hedging instruments, exercises of stock options, and the cumulative effect of adoption of ASU No. 2014-09 are discussed in Note 3. “Fair Value Measurements of Financial Assets and Liabilities,” Note 4. “Stock Incentive Plan,” and in Note 6. “Revenue from Contracts with Customers,” respectively. The condensed consolidated financial statements include our accounts and those of our subsidiaries, all of which are wholly-owned. All intercompany balances and transactions have been eliminated in consolidation. Fiscal Year Our fiscal year consists of 52 or 53 weeks ending on the Saturday closest to December 31. Fiscal year 2018 contains 52 weeks and will end on December 29, 2018. All three and nine month periods presented herein contain 13 and 39 weeks, respectively. All references to years and quarters relate to fiscal periods rather than calendar periods. Seasonality The consolidated results of operations for the three and nine months ended September 29, 2018 and September 30, 2017 are not necessarily indicative of the results to be expected for the full fiscal year due to seasonality and uncertainty of general economic conditions that may impact our key end markets. Historically, our business has realized a higher portion of net revenue, income from operations, and cash flows from operations in the first fiscal quarter, and a lower portion of net revenue, income from operations, and cash flows from operations in the fourth fiscal quarter. The seasonally larger first quarter is attributable primarily to the timing of our customers’ personal income tax refunds and annual health insurance program start or reset periods. Seasonality related to fourth quarter holiday spending by retail customers generally does not impact our business. Our quarterly consolidated results can also be affected by the timing of new store openings, store closings, and certain holidays. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Asset Impairment We evaluate impairment of long-lived tangible store assets at an individual store level, which is the lowest level at which independent cash flows can be identified, when events or conditions indicate the carrying value of such assets may not be recoverable. If the store's projected undiscounted cash flows expected to be generated by the related assets over the remaining useful life are less than the carrying value of the related assets, we then measure impairment based on a discounted cash flow model (Level 3 inputs) and record an impairment charge as the difference between carrying value and estimated fair value. During the three months ended September 29, 2018, we identified indicators of impairment in our long-lived tangible store assets classified as held and used and determined that assets belonging to certain stores with a carrying amount of $2.2 million were no longer recoverable due to underperformance. As a result of our interim tests, we recorded a $2.1 million impairment charge for the three and nine months ended September 29, 2018. The remaining estimated fair value of the impaired assets was $0.1 million. Income Taxes Our income tax benefit for the three months ended September 29, 2018 reflected a benefit associated with pre-tax losses at our statutory federal and state rate of 25.6%, and an additional discrete benefit of $13.9 million associated primarily with the exercise of stock options. In comparison, the income tax rate associated with the three months ended September 30, 2017 primarily reflected the rate necessary to achieve our 35.2% expected annual effective income tax rate (“ETR”) for the nine months ended September 30, 2017, as discrete items did not materially impact the rates used for those periods. Our income tax benefit for the nine months ended September 29, 2018 reflected income tax expense at our statutory federal and state rate of 25.6%, offset by a discrete benefit of $18.0 million associated primarily with the exercise of stock options. Pursuant to SEC Staff Accounting Bulletin No. 118, Income Tax Accounting Implications of the Tax Legislation, the Company recognized provisional effects of the enactment of the Tax Cuts and Jobs Act of 2017 for which measurement could be reasonably estimated as of December 30, 2017. For the nine months ended September 29, 2018, the Company recorded adjustments to the provisional estimates related to depreciation expense and believes the remeasurement of its 2017 provisional amount is complete. The adjustments to the provisional estimates of December 30, 2017 did not materially impact the ETR of the Company during nine months ended September 29, 2018. Adoption of New Accounting Pronouncements Revenue from Contracts with Customers In May 2014, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2014-09, Revenue from Contracts with Customers. ASU No. 2014-09 provides new guidance related to the core principle that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. It also requires additional disclosure about the nature, amount, timing, and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments. Under the new guidance, there is a five-step model to apply to revenue recognition, consisting of: (1) determination of whether a contract, an agreement between two or more parties that creates legally enforceable rights and obligations, exists; (2) identification of the performance obligations in the contract; (3) determination of the transaction price; (4) allocation of the transaction price to the performance obligations in the contract; and (5) recognition of revenue when (or as) the performance obligation is satisfied. The Company adopted this new guidance in the first quarter of 2018 using the modified retrospective transition method. The adoption resulted in a $14.0 million and $11.8 million decrease in current and non-current deferred revenue, respectively, for certain contracts where we satisfy performance obligations over time and a related $6.8 million increase in deferred income tax liability, resulting in a net $19.0 million increase to retained earnings on the condensed consolidated balance sheet as of December 31, 2017. Our results of operations for the reported periods after December 31, 2017 are presented under this amended guidance, while prior period amounts are not adjusted and continue to be reported in accordance with historical accounting guidance. Adoption of this new guidance did not result in significant changes to our accounting policies, business processes, systems or controls, or have a material impact on our results of operations and cash flows. The impact of adopting the amended guidance primarily relates to the timing of revenue recognition for our eyecare club memberships, which comprised approximately 3% of our consolidated net revenue during the most recent three fiscal years. See Note 6. “Revenue From Contracts with Customers” for additional information. Restricted Cash In November 2016, the FASB issued ASU No. 2016-18, Restricted Cash. This new guidance requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. The Company adopted this new guidance during the first quarter of 2018 using full retrospective application to each period presented. The adoption of this new guidance did not have a material effect on the Company’s financial condition, results of operations, or cash flows. Future Adoption of Accounting Pronouncements Leases In February 2016, the FASB issued ASU No. 2016-02, Leases. This new guidance establishes a right-of-use (“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 will be classified as either financing or operating, with such classification affecting the pattern of expense recognition in the statement of operations. Disclosure of key information about leasing arrangements will also be required. This new guidance is effective for fiscal years beginning after December 15, 2018, and interim reporting periods within that fiscal year. In July 2018, the FASB issued ASU 2018-11, “Leases: Targeted Improvements,” as an amendment to ASU 2016-02, “Leases,” which provides entities with an additional transition method to recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. We will adopt this new guidance in the first quarter of 2019. During the first quarter of 2018, we established a cross-functional team to evaluate and implement the new guidance. The Company made progress towards implementation of the new guidance including surveying the Company’s businesses, assessing the Company’s portfolio of leases and compiling a central repository of active leases. The Company evaluated key policy elections and considerations under the new guidance and is currently updating its accounting policies and internal controls to address the new guidance requirements, including disclosures. Additionally, the Company upgraded its lease accounting software solution to support the new reporting requirements. Significant progress has been made on extracting and loading lease data elements required for lease accounting into the software solution and testing of the lease management system is nearing completion. The Company does not expect the adoption of this new guidance to have a significant impact on the recognition, measurement or presentation of lease expenses within our condensed consolidated statements of operations. While the Company continues to assess all potential impacts of the new standard, we currently believe the most significant impact relates to recording lease assets and related liabilities on the condensed consolidated balance sheets. Share Based Payment Accounting In June 2018, the FASB issued ASU No. 2018-07, Compensation - Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting. This new guidance expands the scope of Topic 718 to include share-based payments issued to nonemployees for goods or services. Consequently, the accounting for share-based payments to nonemployees and employees will be substantially aligned. This new guidance is effective for fiscal years, and interim fiscal periods within those fiscal years, beginning after December 15, 2018. Early adoption is permitted. The Company is assessing this new guidance but does not expect it to have a material impact on its statement of financial condition, results of operations, or cash flows. Cloud Computing In August 2018, the FASB issued ASU No. 2018-15, Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (a consensus of the FASB Emerging Issues Task Force). This new guidance aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). This new guidance is effective for fiscal years beginning after December 15, 2019, and for interim periods within those fiscal years, with early adoption permitted. The amendments in this new guidance may be applied either retrospectively or prospectively. The Company is in the process of assessing the new guidance.

Details of Certain Balance Sheet Accounts

9 Months Ended

Sep. 29, 2018

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Details of Certain Balance Sheet Accounts



In thousands	As of September 29, 2018			As of December 30, 2017
Accounts receivable, net:
Trade receivables	$	24,500		$	28,862
Credit card receivables	9,289			10,459
Tenant improvement allowances receivable	4,984			4,794
Other receivables	2,626			2,936
Allowance for uncollectible accounts	(2,524		)	(3,858		)
	$	38,875		$	43,193



In thousands	As of September 29, 2018		As of December 30, 2017
Inventories:
Raw materials and work in process ⁽¹⁾	$	45,379	$	43,953
Finished goods	53,901		47,198
	$	99,280	$	91,151


(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 September 29, 2018		As of December 30, 2017
Property and equipment, net:
Land and building	$	3,632	$	3,608
Equipment	252,549		220,088
Furniture and fixtures	47,423		42,708
Leasehold improvements	178,346		155,369
Construction in progress	29,806		18,375
Property under capital leases	22,334		11,756
	534,090		451,904
Less accumulated depreciation	193,464		147,772
	$	340,626	$	304,132

2. Details of Certain Balance Sheet Accounts (continued)



In thousands	As of September 29, 2018		As of December 30, 2017
Other payables and accrued expenses:
Employee compensation and benefits	$	32,153	$	21,134
Advertising	1,524		2,900
Self-insurance reserves	7,102		6,854
Reserves for customer returns and remakes	6,502		4,565
Capital expenditures	9,060		10,782
Legacy management and services agreement	5,319		6,000
Fair value of derivative liabilities	3,050		6,969
Sales and use taxes	1,130		1,218
Supplies and other store support expenses	2,638		3,014
Litigation settlements	3,838		3,942
Other	9,149		10,233
	$	81,465	$	77,611



In thousands	As of September 29, 2018		As of December 30, 2017
Other non-current liabilities:
Fair value of derivative liabilities	$	1,230	$	9,155
Tenant improvements ⁽¹⁾	25,742		22,894
Deferred rental expenses	8,463		7,246
Self-insurance reserves	4,915		4,564
Other	1,941		2,185
	$	42,291	$	46,044


(1)	Obligations for tenant improvements are amortized as a reduction of rental expense over the respective lease term.

Fair Value Measurements of Financial Assets and Liabilities

9 Months Ended

Sep. 29, 2018

Fair Value Disclosures [Abstract]

Fair Value Measurements of Financial Assets and Liabilities

The Company uses a fair value hierarchy that is intended to increase consistency and comparability in fair value measurements and related disclosures. The fair value hierarchy is based on inputs to valuation techniques that are used to measure fair value that are either observable or unobservable. Observable inputs reflect assumptions market participants would use in pricing an asset or liability based on market data obtained from independent sources while unobservable inputs reflect pricing based upon a reporting entity’s own market assumptions.

Under U.S. GAAP, the Company is required to (a) measure certain assets and liabilities at fair value or (b) disclose the fair values of certain assets and liabilities recorded at cost. Accounting standards define fair value as the price that would be received upon sale of an asset or paid upon transfer of 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 assets or liabilities.

• 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 option pricing models, 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 effect on the estimated fair value amounts.

Cash and Cash Equivalents

The carrying amount of cash and cash equivalents approximates fair value due to the short term maturity of the instruments. All cash and cash equivalents are denominated in U.S. currency.

Accounts Receivable

The carrying amount of accounts receivable approximates fair value due to the short-term nature of those items and the effect of related allowances for doubtful accounts.

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 - Credit Agreement

Loans under our first lien credit agreement are traded in private markets on a less-than-daily basis. Fair value is based on the average of trading prices and bid/ask quotes around period-end (Level 2 inputs). The estimated fair values of our first lien term loans were $566.5 million and $570.2 million as of September 29, 2018 and December 30, 2017, respectively, compared to carrying values of $554.3 million and $557.3 million, respectively, which includes the current portion, and is net of unamortized discounts and deferred debt issuance costs.

See Note 11. “Subsequent Events,” for details regarding Term Loan A - Joinder and Amendment Agreement completed following the third quarter.

Long-term Debt - Capital Leases

The fair value of capital lease obligations is based on estimated future contractual cash flows discounted at an appropriate market rate of interest (Level 2 inputs). The estimated fair values of our capital leases were $25.0 million and $14.0 million as of September 29, 2018 and December 30, 2017, respectively, compared to carrying values of $20.5 million and $12.0 million, respectively.

Interest Rate Derivatives

The Company is a party to three pay-fixed and receive-floating interest rate swap agreements to offset the variability of cash flows in LIBOR-indexed debt interest payments attributable to changes in the benchmark interest rate from March 13, 2017 to March 13, 2021 related to its current first lien credit agreement. Changes in the cash flows of each derivative have historically been and are expected to be highly effective in offsetting the changes in interest payments on a principal balance equal to the derivative’s notional amount, attributable to the hedged risk. During the three months ended March 31, 2018, in accordance with the original agreements with the counterparties, the notional amount of the first derivative decreased from $175 million to $140 million. There were no other changes in the terms of the arrangements. All of our derivative instruments were deemed to be highly effective to meet the requirements for hedge accounting as of September 29, 2018.

We recognize as assets or liabilities at fair value the estimated amounts we would receive or pay upon a termination of interest rate swaps prior to their scheduled expiration dates. Fair value is based on information that is model-driven and whose inputs are observable (Level 2 inputs). Cumulative unrealized gains and losses on derivative instruments are recorded in accumulated other comprehensive loss (“AOCL”), net of tax. As of September 29, 2018, the Company expects to reclassify $2.3 million, net of tax, of AOCL into earnings in the next 12 months. See Note 10. “Accumulated Other Comprehensive Loss” for further details.

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



In thousands	Notional Amount		Final Maturity Date	Other Payables and Accrued Expenses		Other Liabilities		AOCL, Net of Tax⁽¹⁾
As of September 29, 2018	$	465,000	March 2021	$	3,050	$	1,230	$	1,059
As of December 30, 2017	$	500,000	March 2021	$	6,969	$	9,155	$	9,868


(1)	Includes stranded tax benefit of $2.1 million within AOCL from adopting provisions of the Tax Legislation of 2017 during the year ended December 30, 2017.

Stock Incentive Plan

9 Months Ended

Sep. 29, 2018

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock Incentive Plan

2014 Stock Incentive Plan

We have reserved an aggregate of 10,988,827 shares of our common stock for issuance under our 2014 Stock Incentive Plan. As of September 29, 2018, 468,975 shares remained available for future grants.

The following presents a roll-forward of stock options for the nine months ended September 29, 2018:



Options issued and outstanding	Rollover ⁽¹⁾		Service-Based		Performance-Based		Total
Balance, December 30, 2017	169,049		3,822,915		6,524,152		10,516,116
Exercised	(67,874	)	(1,117,583	)	(1,260,972	)	(2,446,429	)
Forfeited	—		(70,185	)	(329,338	)	(399,523	)
Balance, September 29, 2018	101,175		2,635,147		4,933,842		7,670,164
Options vested and exercisable
Balance, December 30, 2017	169,049		1,631,023		43,478		1,843,550
Vested	—		812,936		2,406,350		3,219,286
Exercised	(67,874	)	(1,117,583	)	(1,260,972	)	(2,446,429	)
Forfeited	—		(4,548	)	—		(4,548	)
Balance, September 29, 2018	101,175		1,321,828		1,188,856		2,611,859


(1)	Reflects options under the Vision Holding Corp. Amended and Restated 2013 Equity Incentive Plan

The weighted average price of exercises during the nine months ended September 29, 2018 was $5.74, for a total intrinsic value of $81.6 million, resulting in an income tax benefit of $18.0 million.

Compensation expense associated with stock options is presented in selling, general, and administrative expenses (“SG&A”) in the accompanying condensed consolidated statements of operations. The Company granted 217,390 performance based stock options to one of our named executive officers that vest as a result of certain profitability targets for fiscal years 2017 to 2021, of which 20% have vested based on fiscal 2017 results. Vesting of all other performance-based options is conditional upon the achievement by affiliates of Kohlberg Kravis & Co. L.P. (“KKR Sponsor”), with respect to its investment in NVHI, of both a minimum internal rate of return and a minimum multiple of invested capital (“MOIC”) and then increases proportionally as the MOIC increases up to a defined target.

During the three months ended September 29, 2018, we completed an underwritten public offering in which KKR Sponsor and Berkshire Partners LLC and certain management stockholders (“selling stockholders”) sold an aggregate of 16,614,852 shares of our common stock. We did not receive any proceeds from the shares sold by the selling stockholders. The secondary offering constituted a vesting event whereby 40% of the MOIC performance-based options vested. As a result, we incurred $9.5 million of non-cash stock-based compensation expense during the three months ended September 29, 2018. As a result of this offering, we additionally recorded $4.6 million in long-term incentives, $0.7 million in offering related expenses and $0.9 million in excess payroll taxes associated with exercises of stock options in SG&A during the three months ended September 29, 2018.

2017 Omnibus Incentive Plan

We have reserved an aggregate of 4,000,000 shares of our common stock for issuance under our 2017 Omnibus Incentive Plan. As of September 29, 2018, there were equity awards representing 174,298 of restricted stock and 92,443 stock options issued and outstanding, and 3,733,259 shares available for future grants. There was no material activity under the 2017 Omnibus Incentive Plan for the nine months ended September 29, 2018.

Related Party Transactions

9 Months Ended

Sep. 29, 2018

Related Party Transactions

Transactions With Equity Sponsors

We recorded the following fees paid to equity sponsors, which are presented in SG&A in the accompanying condensed consolidated statement of operations, except for $2.3 million in KKR Sponsor fees during the nine months ended September 30, 2017, which are presented in debt issuance costs.



	Three Months Ended				Nine Months Ended
In thousands	September 29, 2018		September 30, 2017		September 29, 2018		September 30, 2017
KKR Sponsor	$	—	$	220	$	—	$	2,993
Berkshire Partners LLC	$	—	$	52	$	—	$	156

Equity in Net Assets of Non-Consolidated Investee

The Company has an investment in a private start-up company whose principal business is licensing software to eyeglass retailers. Under the equity method of accounting we are required to record our interest in the investee’s reported net income or loss for each reporting period, which is presented in other expense, net in the Company’s condensed consolidated statements of operations. Our interest in the investee’s net losses was $0.4 million and $1.0 million for the three and nine months ended September 29, 2018 and $0.4 million and $0.7 million for the three and nine months ended September 30, 2017, respectively. After adjusting our investment for our interest in the investee’s reported net losses, our investment balance in the business was $1.4 million and $2.3 million as of September 29, 2018 and December 30, 2017, respectively, which is included in other assets in the accompanying condensed consolidated balance sheets.

In the ordinary course of business we are a licensee of our investee. We recorded licensing fees in SG&A in the accompanying condensed consolidated statements of operations in the amount of $0.2 million during the nine months ended September 29, 2018 and $0.2 million and $0.7 million during the three and nine months ended September 30, 2017, respectively. No licensing fees were recorded during the three months ended September 29, 2018. Additionally, on August 29, 2017, the investee issued a secured convertible promissory note to the Company, in the principal amount of $1.5 million, due on August 29, 2020, which is included in non-current other assets in the accompanying condensed consolidated balance sheets. Interest income associated with the note was immaterial for the three and nine months ended September 29, 2018.

Revenue From Contracts With Customers

9 Months Ended

Sep. 29, 2018

Revenue from Contract with Customer [Abstract]

Revenue From Contracts With Customers

A performance obligation is a promise in a contract to transfer a distinct good or service to a customer, and is the unit of account under ASU 2014-09, codified in ASC 606, Revenue from Contracts With Customers. As discussed in Note 1, we adopted ASC 606 in the first quarter of fiscal year 2018 using the modified retrospective transition method. All of our revenue is derived from contracts with customers and is reported as net revenue in the condensed consolidated statements of operations.

We recognize revenue from the products and services we provide in accordance with the five-step process outlined in ASC 606. We recognize revenue when we satisfy a performance obligation by transferring control of a product or service to a customer in an amount that reflects the consideration that we expect to receive. This revenue can be recognized at a point in time or over time. We invoice customers based on our contractual arrangements with each customer, which may not be consistent with the period that revenues are recognized. When there is a timing difference between when we invoice customers and when revenues are recognized, we record either a contract asset (accounts receivable) or a contract liability (deferred revenue or unearned revenue), as appropriate. See further discussion related to contract assets and liabilities below.

The majority of our revenue arrangements generally consist of a single performance obligation to transfer promised goods or services. Based on our evaluation process and review of our contracts with customers, in most circumstances the timing and amount of revenue recognized under the new guidance is consistent with our past revenue recognition policy. 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 health care plans and programs located throughout the United States (“managed care”) having terms generally between 14 and 120 days, with most paying within 90 days. Revenues recognized over time primarily include product protection plans, eyecare club memberships and management fees earned from our legacy partner.

Refer to Note 8 for the Company’s disaggregation of net revenue by reportable segment. As the reportable segments are aligned by similar economic factors, trends and customers, this disaggregation view best depicts how the nature, amount, and uncertainty of revenue and cash flows are affected by economic factors. The following disaggregation of revenues depicts our revenues based on the timing of revenue recognition.

Disaggregation of Revenues:



In thousands	Three Months Ended September 29, 2018		Nine Months Ended September 29, 2018
Revenues recognized at a point in time	$	352,245	$	1,075,355
Revenues recognized over time	35,180		105,577
Total net revenue	$	387,425	$	1,180,932

Revenues Recognized at a Point in Time

The 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.

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.

Revenue is recognized net of sales taxes and returns. The returns allowance is based on historical return patterns. Provisions for estimated returns are established and the expected costs continue to be recognized as contra-revenue when the products are sold.

At our America’s Best brand, our lead offer is two pairs of eyeglasses and a free eye exam for one low price (“two-pair deal”). 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 deal. As a result, we do not allocate revenue to the eye exam associated with the two-pair deal, and we record all revenue associated with the offer in owned & host net product sales when the customer has received and accepted the merchandise.

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 1) 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 2) 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 and 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 covered by a managed care payor are recognized identically to similar sales in the owned & host segment.

Corporate/Other

Revenues from our non-reportable corporate/other segment are attributable to wholly owned subsidiaries Arlington Contact Lens Services, Inc. (“AC Lens”) and FirstSight Vision Services, Inc. (“FirstSight”). AC Lens sells contact lenses and optical accessory products to retail customers through e-commerce. AC Lens also distributes contact lenses to Walmart and Sam’s Club under fee for services arrangements, reports revenue on a gross basis and 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 care benefit 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), eyecare club memberships and HMO membership 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. Amounts collected in advance for these programs are reported as deferred revenue in the accompanying condensed consolidated balance sheets.

We offer three-and five-year eyecare club memberships in our owned & host segment to our contact lens customers. For these plans we apply the guidance in ASC 606 to a portfolio of contracts with similar characteristics. We use estimates and assumptions when accounting for a portfolio that reflect the size and composition of the portfolio of contracts. We selected the portfolio approach because our historical club membership data demonstrated that our club customers behave similarly, such that the difference between the portfolio approach and applying ASC 606 to each 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 membership program. We determine the value delivered based on the expected timing and amount of customer usage of eyecare club benefits over the terms of the contracts. Under previous guidance, we recognized revenue for eyecare club memberships on a ratable basis over the service period. This change is not expected to have a significant impact on our ongoing consolidated results of operations. The cumulative effect and the impact on revenues is described in the impact section below.

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 allowed under ASC 606 because our right to payment corresponds directly with the value of the management services provided to our legacy partner.

Impact on Condensed Consolidated Financial Statements

The following table summarizes the cumulative effect of adoption of ASC 606 on the Company’s condensed consolidated balance sheet as of September 29, 2018, which reflects the change in timing of revenue recognition relating to eyecare club memberships.



In thousands	With ASC 606 Adoption		Without ASC 606 Adoption		Impact of Adoption
Current liabilities:
Deferred Revenue	$	53,951	$	69,764	$	(15,813	)
Total current liabilities	$	197,199	$	213,012	$	(15,813	)
Other non-current liabilities:
Deferred Revenue	$	20,723	$	32,515	$	(11,792	)
Deferred income taxes, net	$	75,378	$	68,306	$	7,072
Total other non-current liabilities	$	138,392	$	143,112	$	(4,720	)
Stockholders' equity:
Retained earnings	$	100,113	$	79,580	$	20,533
Total stockholders' equity	$	758,171	$	737,638	$	20,533

The following table summarizes the impact of adoption on the Company’s condensed consolidated statement of operations for the three months ended September 29, 2018:



In thousands, except earnings per share	With ASC 606 Adoption			Without ASC 606 Adoption			Impact of Adoption
Net sales of services and plans	$	68,113		$	67,651		$	462
Total net revenue	$	387,425		$	386,963		$	462
Loss from operations	$	(1,215	)	$	(1,677	)	$	462
Loss before income taxes	$	(10,622	)	$	(11,084	)	$	462
Income tax benefit	$	(16,438	)	$	(16,556	)	$	118
Net income	$	5,816		$	5,472		$	344
Earnings per share:
Basic	$	0.08		$	0.07		$	0.01
Diluted	$	0.07		$	0.07		$	—

The following table summarizes the impact of adoption on the Company’s condensed consolidated statement of operation for the nine months ended September 29, 2018:



In thousands, except earnings per share	With ASC 606 Adoption			Without ASC 606 Adoption			Impact of Adoption
Net sales of services and plans	$	203,435		$	201,606		$	1,829
Total net revenue	$	1,180,932		$	1,179,103		$	1,829
Income from operations	$	64,221		$	62,392		$	1,829
Earnings before income taxes	$	36,077		$	34,248		$	1,829
Income tax benefit	$	(7,863	)	$	(8,331	)	$	468
Net income	$	43,940		$	42,579		$	1,361
Earnings per share:
Basic	$	0.58		$	0.57		$	0.01
Diluted	$	0.56		$	0.54		$	0.02

There were no other material impacts on our condensed consolidated financial statements as a result of our adoption of this new guidance.

Contract Assets and Liabilities

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

Accounts Receivable

Accounts receivable associated with revenues consist primarily of trade receivables and credit card receivables. Trade receivables consist primarily of receivables from managed care payors and receivables from major retailers. While we have relationships with almost all vision care insurers in the United States and with all of the major carriers, currently, a relatively small number of payors comprise the majority of our managed care revenues, subjecting us to concentration risk. Trade receivables and credit card receivables are included in accounts receivable, net, on our condensed consolidated balance sheets, and are presented separately in Note 2. “Details of Certain Balance Sheet Accounts.” Accounts receivable are reduced by allowances for amounts that may become uncollectible. Estimates of our allowance for uncollectible accounts are based on our historical and current operating, billing, and collection trends. Impairment losses recognized on our receivables were approximately $1.7 million and $5.0 million for the three and nine months ended September 29, 2018 and $1.9 million and $4.5 million for the three and nine months ended September 30, 2017, respectively. There was no impact of adoption of ASC 606 on accounts receivable, net.

Unsatisfied Performance Obligations (Contract Liabilities)

Our retail customers generally make payments for prescription eyewear products at the time they place an order. Amounts we collect in advance for undelivered merchandise are reported as unearned revenue in the accompanying condensed consolidated balance sheets. Unearned revenue at the end of a reporting period is estimated based on delivery times throughout the current month and generally ranges from four to ten days. All unearned revenue at the end of a reporting period is recognized in the next fiscal period. There was no impact of adoption of ASC 606 on our unearned revenue accounts.

Our contract liabilities also consist of deferred revenue on services and plans obligations, primarily product protection plans and eyecare club memberships. The unamortized portion of amounts we collect in advance for these services and plans are reported as deferred revenue in the accompanying condensed consolidated balance sheets (current and non- current portions). Our deferred revenue balance as of September 29, 2018 was $74.7 million. We expect future revenue recognition of this balance of $19.2 million, $39.7 million, $12.5 million, $3.0 million, $0.2 million and $0.1 million in fiscal years 2018, 2019, 2020, 2021, 2022 and thereafter, respectively. We recognized $26.5 million and $78.5 million of previously deferred revenues for the three and nine months ended September 29, 2018, respectively.

Commitments and Contingencies	9 Months Ended
Commitments and Contingencies	Sep. 29, 2018
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies From time to time, the Company is involved in various legal proceedings incidental to its business. 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. The Company’s FirstSight subsidiary is a defendant in a purported class action in the U.S. District Court for the Southern District of California that alleges that FirstSight participated in arrangements that caused the illegal delivery of eye examinations and that FirstSight thereby violated, among other laws, the corporate practice of optometry and the unfair competition and false advertising laws of California. The lawsuit was filed in 2013 and FirstSight was added as a defendant in 2016. In March 2017, the court granted the motion to dismiss previously filed by FirstSight and dismissed the complaint with prejudice. The plaintiffs filed an appeal to the U.S. Court of Appeals for the Ninth Circuit in April 2017. In July 2018, the U.S. Court of Appeals for the Ninth Circuit vacated in part, and reversed in part, the district court’s dismissal and remanded for further proceedings. In October 2018, the plaintiffs filed a second amended complaint with the district court. The Company believes that the claims are without merit and intends to continue to defend the litigation vigorously. In May 2017, a complaint was filed against the Company and other defendants alleging, on behalf of a proposed class of consumers who purchased contact lenses online, that 1-800 Contacts, Inc. entered into a series of agreements with the other defendants, including the Company’s AC Lens subsidiary, to suppress certain online advertising and that each defendant thereby engaged in anticompetitive conduct in violation of the Sherman Antitrust Act (the “1-800 Contacts Matter”). The Company has settled the 1-800 Contacts Matter for $7.0 million, without admitting liability. Accordingly, the Company recorded a $7.0 million charge in the second quarter of fiscal year 2017. On November 8, 2017, the court in the 1-800 Contacts Matter entered an order preliminarily approving the settlement agreement, subject to a settlement hearing. Pursuant to this order, the Company deposited 50% of the settlement amount, or $3.5 million, into an escrow account, to be distributed subject to and in accordance with the terms of the settlement agreement and any further order of the court.

Segment Reporting

9 Months Ended

Sep. 29, 2018

Segment Reporting [Abstract]

Segment Reporting

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

•

Owned & host store brands - Our owned brands consist of our America’s Best and Eyeglass World operating segments. Our host brands consist of our Vista Optical operating segments at certain U.S. Military Branches and inside Fred Meyer stores. We have aggregated our owned and host 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 227 legacy retail vision centers within Walmart stores. 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 services 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 the provision of optometric examination services. Our legacy agreements were renewed on January 13, 2017, and expire on August 23, 2020, subject to extension pursuant to the terms of the agreements. 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. Revenue associated with managing operations of our legacy partner were $8.6 million and $27.0 million for the three and nine months ended September 29, 2018 and $9.1 million and $28.3 million for the three and nine months ended September 30, 2017, respectively. During the nine months ended September 29, 2018, sales associated with our legacy partner arrangement represented 10.1% of consolidated net revenue. This exposes us to concentration of customer risk.

The “Corporate/Other” category includes the results of operations of our other operating segments and corporate overhead support. The “Reconciliations” category represents other adjustments to reportable segment results necessary for the presentation of consolidated financial results in accordance with U.S. GAAP for the two reportable segments.

Revenues from the Corporate/Other segments are attributable to the AC Lens and FirstSight operating segments. AC Lens primarily sells contact lenses, eyeglasses and optical accessory products to retail customers through e-commerce. AC Lens also distributes contact lenses to 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 in California, arranges for the provision of eye exams at retail locations throughout California and also sells contact lenses to its members in certain locations. None of those segments met the quantitative thresholds for determining reportable segments for any of the periods presented.

Our reportable segment profit measure is EBITDA, or net revenue, less costs applicable to revenue, less selling, general and administrative costs. Depreciation and amortization, asset impairment, litigation settlement and other corporate costs that are not allocated to the reportable segments, including interest expense and debt issuance costs are excluded from segment EBITDA. There are no transactions between our reportable segments. There are no differences between the measurement of our reportable segments’ assets and consolidated assets. There have been no changes from prior periods in the measurement methods used to determine reportable segment profit or loss, and there have been no asymmetrical allocations to segments.

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



	Three Months Ended September 29, 2018
In thousands	Owned & Host		Legacy		Corporate/Other			Reconciliations			Total
Segment product revenues	$	240,882	$	24,739	$	53,286		$	405		$	319,312
Segment services and plans revenues	55,673		12,489		912			(961		)	68,113
Total net revenue	296,555		37,228		54,198			(556		)	387,425
Cost of products	72,532		11,328		46,881			210			130,951
Cost of services and plans	45,581		5,124		932			—			51,637
Total costs applicable to revenue	118,113		16,452		47,813			210			182,588
SG&A	118,384		13,621		52,419			—			184,424
Asset impairment	—		—		2,137			—			2,137
Other expense, net	—		—		411			—			411
EBITDA	$	60,058	$	7,155	$	(48,582	)	$	(766	)	17,865
Depreciation and amortization											19,080
Interest expense, net											9,407
Loss before income taxes											$	(10,622	)



	Three Months Ended September 30, 2017
In thousands	Owned & Host		Legacy		Corporate/Other			Reconciliations			Total
Segment product revenues	$	211,035	$	24,503	$	46,421		$	1,689		$	283,648
Segment services and plans revenues	48,119		12,864		3,110			(1,652		)	62,441
Total net revenue	259,154		37,367		49,531			37			346,089
Cost of products	63,159		11,427		40,699			467			115,752
Cost of services and plans	39,395		4,579		2,632			—			46,606
Total costs applicable to revenue	102,554		16,006		43,331			467			162,358
SG&A	103,851		12,904		34,496			—			151,251
Other expense, net	—		—		568			—			568
EBITDA	$	52,749	$	8,457	$	(28,864	)	$	(430	)	31,912
Depreciation and amortization											15,352
Interest expense, net											14,851
Income before income taxes											$	1,709



	Nine Months Ended September 29, 2018
In thousands	Owned & Host		Legacy		Corporate/Other			Reconciliations			Total
Segment product revenues	$	738,886	$	80,004	$	153,856		$	4,751		$	977,497
Segment services and plans revenues	167,679		39,088		2,939			(6,271		)	203,435
Total net revenue	906,565		119,092		156,795			(1,520		)	1,180,932
Costs of products	217,195		36,356		134,731			1,278			389,560
Costs of services and plans	132,708		14,965		2,868			—			150,541
Total costs applicable to revenue	349,903		51,321		137,599			1,278			540,101
SG&A	349,239		40,519		129,806			—			519,564
Asset impairment	—		—		2,137			—			2,137
Other expense, net	—		—		829			—			829
EBITDA	$	207,423	$	27,252	$	(113,576	)	$	(2,798	)	118,301
Depreciation and amortization											54,080
Interest expense, net											28,144
Income before income taxes											$	36,077



	Nine Months Ended September 30, 2017
In thousands	Owned & Host		Legacy		Corporate/Other			Reconciliations			Total
Segment product revenues	$	649,526	$	78,828	$	134,371		$	4,467		$	867,192
Segment services and plans revenues	146,415		37,840		11,274			(9,232		)	186,297
Total net revenue	795,941		116,668		145,645			(4,765		)	1,053,489
Costs of products	190,604		37,138		120,116			1,241			349,099
Costs of services and plans	113,902		11,909		9,663			—			135,474
Total costs applicable to revenue	304,506		49,047		129,779			1,241			484,573
SG&A	304,168		39,087		102,459			—			445,714
Asset impairment	—		—		1,000			—			1,000
Debt issuance costs	—		—		2,702			—			2,702
Litigation settlement	—		—		7,000			—			7,000
Other expense, net	—		—		744			—			744
EBITDA	$	187,267	$	28,534	$	(98,039	)	$	(6,006	)	111,756
Depreciation and amortization											44,404
Interest expense, net											40,965
Income before income taxes											$	26,387

Earnings Per Share

9 Months Ended

Sep. 29, 2018

Earnings Per Share [Abstract]

Earnings Per Share

Basic earnings per share (“EPS”) is computed by dividing net income by the weighted average number of common shares outstanding for the period. Diluted EPS is computed by dividing net income by the weighted average common shares outstanding for the period and includes the dilutive impact of potential new common shares issuable upon vesting and exercise of stock options and vesting of restricted stock units. Potentially dilutive securities are excluded from the computation of diluted EPS if their effect is anti-dilutive. A reconciliation of the numerators and denominators of the basic and diluted EPS calculations is as follows:



	Three Months Ended				Nine Months Ended
In thousands, except EPS data	September 29, 2018		September 30, 2017		September 29, 2018		September 30, 2017
Net income	$	5,816	$	1,546	$	43,940	$	17,120
Weighted average shares outstanding for basic EPS	76,118		56,414		75,361		56,363
Effect of dilutive securities:
Stock options	3,485		2,045		3,119		1,918
Restricted stock	107		—		91		—
Weighted average shares outstanding for diluted EPS	79,710		58,459		78,571		58,281
Basic EPS	$	0.08	$	0.03	$	0.58	$	0.30
Diluted EPS	$	0.07	$	0.03	$	0.56	$	0.29
Anti-dilutive options outstanding excluded from EPS	—		—		—		339

Accumulated Other Comprehensive Loss

9 Months Ended

Sep. 29, 2018

Equity [Abstract]

Accumulated Other Comprehensive Loss

Changes in the fair value of the Company’s cash flow hedge derivative instruments since inception are recorded in AOCL. The following table presents the change in AOCL during the three and nine months ended September 29, 2018 and September 30, 2017, respectively:



	Three Months Ended						Nine Months Ended
In thousands	September 29, 2018			September 30, 2017			September 29, 2018			September 30, 2017
Cash flow hedging activity:
Balance at beginning of period	$	(2,746	)	$	(14,605	)	$	(9,868	)	$	(14,556	)
Other comprehensive income (loss) before reclassification	854			(371		)	6,696			(3,950		)
Tax effect of other comprehensive income (loss) before reclassification	(218		)	143			(1,715		)	1,526
Amount reclassified from AOCL	1,413			2,625			5,146			6,126
Tax effect of amount reclassified from AOCL	(362		)	(1,015		)	(1,318		)	(2,369		)
Net current period other comprehensive income, net of tax	1,687			1,382			8,809			1,333
Balance at end of period	$	(1,059	)	$	(13,223	)	$	(1,059	)	$	(13,223	)

Amounts reclassified from AOCL are included in interest expense in the accompanying condensed consolidated statements of operations. See Note 3. “Fair Value Measurements of Financial Assets and Liabilities” for a description of the Company’s use of cash flow hedging derivatives.

Subsequent Events	9 Months Ended
Subsequent Events	Sep. 29, 2018
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events Term Loan A - Joinder and Amendment Agreement On October 9, 2018 (the “Closing Date”), our first lien credit agreement dated as of March 13, 2014 (as amended, the “Credit Agreement”), was amended pursuant to a joinder and amendment agreement (the “October 2018 Joinder”) to, among other things, (i) establish new first lien term loans in an aggregate principal amount of $200,000,000 (“Term A Loans”) to prepay a portion of the first lien term loans outstanding immediately prior to the Closing Date, (ii) set the maturity of such term loans to October 9, 2023 and (iii) set the rates applicable to such term loans. Pursuant to the October 2018 Joinder, the initial new Applicable Margins are (i) 1.75% for the new first lien term loans that are LIBOR Loans (as defined in the Credit Agreement) and (ii) 0.75% for the new first lien term loans that are ABR Loans (as defined in the Credit Agreement). The October 2018 Joinder further provides that following the Closing Date, the above Applicable Margins for the new first lien term loans will be based on (x) NVI’s total leverage ratio or (y) NVI’s public corporate credit rating from Moody’s and/or NVI’s public corporate credit rating from S&P as follows: (a) if NVI’s total leverage ratio is less than 2.00 to 1.00 or NVI’s rating is either Ba2 (stable) or better from Moody’s or BB (stable) or better from S&P, the Applicable Margin will be 1.25% for LIBOR Loans and 0.25% for ABR Loans, (b) if NVI’s total leverage ratio is equal to or greater than 2.00 to 1.00, but less than 2.50 to 1.00, or NVI’s rating is BB- (stable) from S&P, the Applicable Margin will be 1.50% for LIBOR Loans and 0.50% for ABR Loans and (c) if NVI’s total leverage ratio is greater than 2.50 to 1.00 and NVI’s rating is not BB- (stable) or better from S&P, the Applicable Margin will be 1.75% for LIBOR Loans and 0.75% for ABR Loans, as specified in the October 2018 Joinder. The new first lien term loans will amortize in equal quarterly installments equal to 2.5% per annum in the first three years of the loan and 5% per annum thereafter. In addition, pursuant to the October 2018 Joinder, solely with respect to the Term A Loans, commencing on the fiscal quarter ending on December 29, 2018, the Company will not permit (i) the Consolidated Total Debt to Consolidated EBITDA Ratio (as defined in the Credit Agreement) as of the last day of any fiscal quarter of the Company to be greater than 4.75 to 1.00 or (ii) the Consolidated Interest Coverage Ratio (as defined in the Credit Agreement) of the Company as of the last day of any fiscal quarter of the Company to be less than 3.00 to 1.00. Agreement with Esslior of America On November 12, 2018, the Company entered into a new letter agreement (the “Agreement”) with Essilor of America, Inc. (“Essilor”), which, when effective, will replace the current letter agreement, dated May 25, 2011, between the Company and Essilor. Under our agreement with Essilor, Essilor has the sole and exclusive right to supply certain lenses for eyeglasses to the Company. The Agreement extends the term of the Company’s contractual arrangement with Essilor from June 1, 2019 until May 31, 2023. Thereafter, the Agreement will automatically renew on a month-to-month basis unless either party gives 30 days’ prior written notice of termination. The Company also has the ability to unilaterally extend the Agreement an additional calendar quarter after the proposed termination date.

Description of Business and Basis of Presentation (Policies)	9 Months Ended
	Sep. 29, 2018
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation We prepared the accompanying condensed consolidated financial statements in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and, therefore, do not include all information and disclosures required by U.S. GAAP for complete consolidated financial statements. The condensed consolidated balance sheet as of December 30, 2017 has been derived from the audited consolidated balance sheet for the fiscal year then ended. These unaudited interim condensed consolidated financial statements reflect all normal and recurring adjustments which are, in the opinion of management, necessary to present fairly the Company’s consolidated financial position as of September 29, 2018, the consolidated results of operations and comprehensive income for the three and nine months ended September 29, 2018 and September 30, 2017 and its statements of cash flows for the nine months ended September 29, 2018 and September 30, 2017. Certain information and disclosures normally included in our annual consolidated financial statements have been condensed or omitted; however, we believe that the disclosures included herein are adequate to make the information presented not misleading. These interim condensed consolidated financial statements should be read in conjunction with our audited consolidated financial statements and the notes thereto for the fiscal year ended December 30, 2017 included in the Company’s Annual Report on Form 10-K for fiscal year 2017 filed on March 8, 2018. The Company’s significant accounting policies are set forth in Note 1 within those consolidated financial statements. We use the same accounting policies in preparing interim condensed consolidated financial information and annual consolidated financial statements. There were no changes to our significant accounting policies during the nine months ended September 29, 2018, except for the adoption of Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers and ASU No. 2016-18, Restricted Cash. See “Adoption of New Accounting Pronouncements” below for further discussion. Changes to stockholders’ equity associated with changes in unrealized gains and losses on cash flow hedging instruments, exercises of stock options, and the cumulative effect of adoption of ASU No. 2014-09 are discussed in Note 3. “Fair Value Measurements of Financial Assets and Liabilities,” Note 4. “Stock Incentive Plan,” and in Note 6. “Revenue from Contracts with Customers,” respectively. The condensed consolidated financial statements include our accounts and those of our subsidiaries, all of which are wholly-owned. All intercompany balances and transactions have been eliminated in consolidation.
Fiscal Year	Fiscal Year Our fiscal year consists of 52 or 53 weeks ending on the Saturday closest to December 31. Fiscal year 2018 contains 52 weeks and will end on December 29, 2018. All three and nine month periods presented herein contain 13 and 39 weeks, respectively. All references to years and quarters relate to fiscal periods rather than calendar periods.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Asset Impairment	Asset Impairment We evaluate impairment of long-lived tangible store assets at an individual store level, which is the lowest level at which independent cash flows can be identified, when events or conditions indicate the carrying value of such assets may not be recoverable. If the store's projected undiscounted cash flows expected to be generated by the related assets over the remaining useful life are less than the carrying value of the related assets, we then measure impairment based on a discounted cash flow model (Level 3 inputs) and record an impairment charge as the difference between carrying value and estimated fair value.
Income Taxes	Income Taxes Our income tax benefit for the three months ended September 29, 2018 reflected a benefit associated with pre-tax losses at our statutory federal and state rate of 25.6%, and an additional discrete benefit of $13.9 million associated primarily with the exercise of stock options. In comparison, the income tax rate associated with the three months ended September 30, 2017 primarily reflected the rate necessary to achieve our 35.2% expected annual effective income tax rate (“ETR”) for the nine months ended September 30, 2017, as discrete items did not materially impact the rates used for those periods. Our income tax benefit for the nine months ended September 29, 2018 reflected income tax expense at our statutory federal and state rate of 25.6%, offset by a discrete benefit of $18.0 million associated primarily with the exercise of stock options. Pursuant to SEC Staff Accounting Bulletin No. 118, Income Tax Accounting Implications of the Tax Legislation, the Company recognized provisional effects of the enactment of the Tax Cuts and Jobs Act of 2017 for which measurement could be reasonably estimated as of December 30, 2017. For the nine months ended September 29, 2018, the Company recorded adjustments to the provisional estimates related to depreciation expense and believes the remeasurement of its 2017 provisional amount is complete. The adjustments to the provisional estimates of December 30, 2017 did not materially impact the ETR of the Company during nine months ended September 29, 2018.
Recently Issued Accounting Pronouncements	Accounting Pronouncements Revenue from Contracts with Customers In May 2014, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2014-09, Revenue from Contracts with Customers. ASU No. 2014-09 provides new guidance related to the core principle that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. It also requires additional disclosure about the nature, amount, timing, and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments. Under the new guidance, there is a five-step model to apply to revenue recognition, consisting of: (1) determination of whether a contract, an agreement between two or more parties that creates legally enforceable rights and obligations, exists; (2) identification of the performance obligations in the contract; (3) determination of the transaction price; (4) allocation of the transaction price to the performance obligations in the contract; and (5) recognition of revenue when (or as) the performance obligation is satisfied. The Company adopted this new guidance in the first quarter of 2018 using the modified retrospective transition method. The adoption resulted in a $14.0 million and $11.8 million decrease in current and non-current deferred revenue, respectively, for certain contracts where we satisfy performance obligations over time and a related $6.8 million increase in deferred income tax liability, resulting in a net $19.0 million increase to retained earnings on the condensed consolidated balance sheet as of December 31, 2017. Our results of operations for the reported periods after December 31, 2017 are presented under this amended guidance, while prior period amounts are not adjusted and continue to be reported in accordance with historical accounting guidance. Adoption of this new guidance did not result in significant changes to our accounting policies, business processes, systems or controls, or have a material impact on our results of operations and cash flows. The impact of adopting the amended guidance primarily relates to the timing of revenue recognition for our eyecare club memberships, which comprised approximately 3% of our consolidated net revenue during the most recent three fiscal years. See Note 6. “Revenue From Contracts with Customers” for additional information. Restricted Cash In November 2016, the FASB issued ASU No. 2016-18, Restricted Cash. This new guidance requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. The Company adopted this new guidance during the first quarter of 2018 using full retrospective application to each period presented. The adoption of this new guidance did not have a material effect on the Company’s financial condition, results of operations, or cash flows. Future Adoption of Accounting Pronouncements Leases In February 2016, the FASB issued ASU No. 2016-02, Leases. This new guidance establishes a right-of-use (“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 will be classified as either financing or operating, with such classification affecting the pattern of expense recognition in the statement of operations. Disclosure of key information about leasing arrangements will also be required. This new guidance is effective for fiscal years beginning after December 15, 2018, and interim reporting periods within that fiscal year. In July 2018, the FASB issued ASU 2018-11, “Leases: Targeted Improvements,” as an amendment to ASU 2016-02, “Leases,” which provides entities with an additional transition method to recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. We will adopt this new guidance in the first quarter of 2019. During the first quarter of 2018, we established a cross-functional team to evaluate and implement the new guidance. The Company made progress towards implementation of the new guidance including surveying the Company’s businesses, assessing the Company’s portfolio of leases and compiling a central repository of active leases. The Company evaluated key policy elections and considerations under the new guidance and is currently updating its accounting policies and internal controls to address the new guidance requirements, including disclosures. Additionally, the Company upgraded its lease accounting software solution to support the new reporting requirements. Significant progress has been made on extracting and loading lease data elements required for lease accounting into the software solution and testing of the lease management system is nearing completion. The Company does not expect the adoption of this new guidance to have a significant impact on the recognition, measurement or presentation of lease expenses within our condensed consolidated statements of operations. While the Company continues to assess all potential impacts of the new standard, we currently believe the most significant impact relates to recording lease assets and related liabilities on the condensed consolidated balance sheets. Share Based Payment Accounting In June 2018, the FASB issued ASU No. 2018-07, Compensation - Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting. This new guidance expands the scope of Topic 718 to include share-based payments issued to nonemployees for goods or services. Consequently, the accounting for share-based payments to nonemployees and employees will be substantially aligned. This new guidance is effective for fiscal years, and interim fiscal periods within those fiscal years, beginning after December 15, 2018. Early adoption is permitted. The Company is assessing this new guidance but does not expect it to have a material impact on its statement of financial condition, results of operations, or cash flows. Cloud Computing In August 2018, the FASB issued ASU No. 2018-15, Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (a consensus of the FASB Emerging Issues Task Force). This new guidance aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). This new guidance is effective for fiscal years beginning after December 15, 2019, and for interim periods within those fiscal years, with early adoption permitted. The amendments in this new guidance may be applied either retrospectively or prospectively. The Company is in the process of assessing the new guidance.

- Definition

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

+ References + Details

Details of Certain Balance Sheet Accounts (Tables)

9 Months Ended

Sep. 29, 2018

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of Accounts Receivable, Net



In thousands	As of September 29, 2018			As of December 30, 2017
Accounts receivable, net:
Trade receivables	$	24,500		$	28,862
Credit card receivables	9,289			10,459
Tenant improvement allowances receivable	4,984			4,794
Other receivables	2,626			2,936
Allowance for uncollectible accounts	(2,524		)	(3,858		)
	$	38,875		$	43,193

Schedule of Inventories



In thousands	As of September 29, 2018		As of December 30, 2017
Inventories:
Raw materials and work in process ⁽¹⁾	$	45,379	$	43,953
Finished goods	53,901		47,198
	$	99,280	$	91,151


(1)	Due to the immaterial amount of estimated work in process and the short lead times for the conversion of raw materials to finished goods, the Company does not separately present raw materials and work in process.

Schedule of Property and Equipment, Net



In thousands	As of September 29, 2018		As of December 30, 2017
Property and equipment, net:
Land and building	$	3,632	$	3,608
Equipment	252,549		220,088
Furniture and fixtures	47,423		42,708
Leasehold improvements	178,346		155,369
Construction in progress	29,806		18,375
Property under capital leases	22,334		11,756
	534,090		451,904
Less accumulated depreciation	193,464		147,772
	$	340,626	$	304,132

Schedule of Other Payables and Accrued Expenses



In thousands	As of September 29, 2018		As of December 30, 2017
Other payables and accrued expenses:
Employee compensation and benefits	$	32,153	$	21,134
Advertising	1,524		2,900
Self-insurance reserves	7,102		6,854
Reserves for customer returns and remakes	6,502		4,565
Capital expenditures	9,060		10,782
Legacy management and services agreement	5,319		6,000
Fair value of derivative liabilities	3,050		6,969
Sales and use taxes	1,130		1,218
Supplies and other store support expenses	2,638		3,014
Litigation settlements	3,838		3,942
Other	9,149		10,233
	$	81,465	$	77,611

Schedule of Other Non-current Liabilities



In thousands	As of September 29, 2018		As of December 30, 2017
Other non-current liabilities:
Fair value of derivative liabilities	$	1,230	$	9,155
Tenant improvements ⁽¹⁾	25,742		22,894
Deferred rental expenses	8,463		7,246
Self-insurance reserves	4,915		4,564
Other	1,941		2,185
	$	42,291	$	46,044


(1)	Obligations for tenant improvements are amortized as a reduction of rental expense over the respective lease term.

Fair Value Measurements of Financial Assets and Liabilities (Tables)

9 Months Ended

Sep. 29, 2018

Fair Value Disclosures [Abstract]

Schedule of Fair Value of Cash Flow Hedge Derivative Contracts

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



In thousands	Notional Amount		Final Maturity Date	Other Payables and Accrued Expenses		Other Liabilities		AOCL, Net of Tax⁽¹⁾
As of September 29, 2018	$	465,000	March 2021	$	3,050	$	1,230	$	1,059
As of December 30, 2017	$	500,000	March 2021	$	6,969	$	9,155	$	9,868


(1)	Includes stranded tax benefit of $2.1 million within AOCL from adopting provisions of the Tax Legislation of 2017 during the year ended December 30, 2017.

Stock Incentive Plan (Tables)

9 Months Ended

Sep. 29, 2018

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Schedule of Stock Option Activity

The following presents a roll-forward of stock options for the nine months ended September 29, 2018:



Options issued and outstanding	Rollover ⁽¹⁾		Service-Based		Performance-Based		Total
Balance, December 30, 2017	169,049		3,822,915		6,524,152		10,516,116
Exercised	(67,874	)	(1,117,583	)	(1,260,972	)	(2,446,429	)
Forfeited	—		(70,185	)	(329,338	)	(399,523	)
Balance, September 29, 2018	101,175		2,635,147		4,933,842		7,670,164
Options vested and exercisable
Balance, December 30, 2017	169,049		1,631,023		43,478		1,843,550
Vested	—		812,936		2,406,350		3,219,286
Exercised	(67,874	)	(1,117,583	)	(1,260,972	)	(2,446,429	)
Forfeited	—		(4,548	)	—		(4,548	)
Balance, September 29, 2018	101,175		1,321,828		1,188,856		2,611,859


(1)	Reflects options under the Vision Holding Corp. Amended and Restated 2013 Equity Incentive Plan

Related Party Transactions (Tables)

9 Months Ended

Sep. 29, 2018



	Three Months Ended				Nine Months Ended
In thousands	September 29, 2018		September 30, 2017		September 29, 2018		September 30, 2017
KKR Sponsor	$	—	$	220	$	—	$	2,993
Berkshire Partners LLC	$	—	$	52	$	—	$	156

Revenue From Contracts With Customers (Tables)

9 Months Ended

Sep. 29, 2018

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.

Disaggregation of Revenues:



In thousands	Three Months Ended September 29, 2018		Nine Months Ended September 29, 2018
Revenues recognized at a point in time	$	352,245	$	1,075,355
Revenues recognized over time	35,180		105,577
Total net revenue	$	387,425	$	1,180,932

Schedule of Impact of Adoption of New Accounting Pronouncement



In thousands	With ASC 606 Adoption		Without ASC 606 Adoption		Impact of Adoption
Current liabilities:
Deferred Revenue	$	53,951	$	69,764	$	(15,813	)
Total current liabilities	$	197,199	$	213,012	$	(15,813	)
Other non-current liabilities:
Deferred Revenue	$	20,723	$	32,515	$	(11,792	)
Deferred income taxes, net	$	75,378	$	68,306	$	7,072
Total other non-current liabilities	$	138,392	$	143,112	$	(4,720	)
Stockholders' equity:
Retained earnings	$	100,113	$	79,580	$	20,533
Total stockholders' equity	$	758,171	$	737,638	$	20,533

The following table summarizes the impact of adoption on the Company’s condensed consolidated statement of operations for the three months ended September 29, 2018:



In thousands, except earnings per share	With ASC 606 Adoption			Without ASC 606 Adoption			Impact of Adoption
Net sales of services and plans	$	68,113		$	67,651		$	462
Total net revenue	$	387,425		$	386,963		$	462
Loss from operations	$	(1,215	)	$	(1,677	)	$	462
Loss before income taxes	$	(10,622	)	$	(11,084	)	$	462
Income tax benefit	$	(16,438	)	$	(16,556	)	$	118
Net income	$	5,816		$	5,472		$	344
Earnings per share:
Basic	$	0.08		$	0.07		$	0.01
Diluted	$	0.07		$	0.07		$	—

The following table summarizes the impact of adoption on the Company’s condensed consolidated statement of operation for the nine months ended September 29, 2018:



In thousands, except earnings per share	With ASC 606 Adoption			Without ASC 606 Adoption			Impact of Adoption
Net sales of services and plans	$	203,435		$	201,606		$	1,829
Total net revenue	$	1,180,932		$	1,179,103		$	1,829
Income from operations	$	64,221		$	62,392		$	1,829
Earnings before income taxes	$	36,077		$	34,248		$	1,829
Income tax benefit	$	(7,863	)	$	(8,331	)	$	468
Net income	$	43,940		$	42,579		$	1,361
Earnings per share:
Basic	$	0.58		$	0.57		$	0.01
Diluted	$	0.56		$	0.54		$	0.02

Segment Reporting (Tables)

9 Months Ended

Sep. 29, 2018

Segment Reporting [Abstract]

Schedule of Financial Data by Segment



	Three Months Ended September 29, 2018
In thousands	Owned & Host		Legacy		Corporate/Other			Reconciliations			Total
Segment product revenues	$	240,882	$	24,739	$	53,286		$	405		$	319,312
Segment services and plans revenues	55,673		12,489		912			(961		)	68,113
Total net revenue	296,555		37,228		54,198			(556		)	387,425
Cost of products	72,532		11,328		46,881			210			130,951
Cost of services and plans	45,581		5,124		932			—			51,637
Total costs applicable to revenue	118,113		16,452		47,813			210			182,588
SG&A	118,384		13,621		52,419			—			184,424
Asset impairment	—		—		2,137			—			2,137
Other expense, net	—		—		411			—			411
EBITDA	$	60,058	$	7,155	$	(48,582	)	$	(766	)	17,865
Depreciation and amortization											19,080
Interest expense, net											9,407
Loss before income taxes											$	(10,622	)



	Three Months Ended September 30, 2017
In thousands	Owned & Host		Legacy		Corporate/Other			Reconciliations			Total
Segment product revenues	$	211,035	$	24,503	$	46,421		$	1,689		$	283,648
Segment services and plans revenues	48,119		12,864		3,110			(1,652		)	62,441
Total net revenue	259,154		37,367		49,531			37			346,089
Cost of products	63,159		11,427		40,699			467			115,752
Cost of services and plans	39,395		4,579		2,632			—			46,606
Total costs applicable to revenue	102,554		16,006		43,331			467			162,358
SG&A	103,851		12,904		34,496			—			151,251
Other expense, net	—		—		568			—			568
EBITDA	$	52,749	$	8,457	$	(28,864	)	$	(430	)	31,912
Depreciation and amortization											15,352
Interest expense, net											14,851
Income before income taxes											$	1,709



	Nine Months Ended September 29, 2018
In thousands	Owned & Host		Legacy		Corporate/Other			Reconciliations			Total
Segment product revenues	$	738,886	$	80,004	$	153,856		$	4,751		$	977,497
Segment services and plans revenues	167,679		39,088		2,939			(6,271		)	203,435
Total net revenue	906,565		119,092		156,795			(1,520		)	1,180,932
Costs of products	217,195		36,356		134,731			1,278			389,560
Costs of services and plans	132,708		14,965		2,868			—			150,541
Total costs applicable to revenue	349,903		51,321		137,599			1,278			540,101
SG&A	349,239		40,519		129,806			—			519,564
Asset impairment	—		—		2,137			—			2,137
Other expense, net	—		—		829			—			829
EBITDA	$	207,423	$	27,252	$	(113,576	)	$	(2,798	)	118,301
Depreciation and amortization											54,080
Interest expense, net											28,144
Income before income taxes											$	36,077



	Nine Months Ended September 30, 2017
In thousands	Owned & Host		Legacy		Corporate/Other			Reconciliations			Total
Segment product revenues	$	649,526	$	78,828	$	134,371		$	4,467		$	867,192
Segment services and plans revenues	146,415		37,840		11,274			(9,232		)	186,297
Total net revenue	795,941		116,668		145,645			(4,765		)	1,053,489
Costs of products	190,604		37,138		120,116			1,241			349,099
Costs of services and plans	113,902		11,909		9,663			—			135,474
Total costs applicable to revenue	304,506		49,047		129,779			1,241			484,573
SG&A	304,168		39,087		102,459			—			445,714
Asset impairment	—		—		1,000			—			1,000
Debt issuance costs	—		—		2,702			—			2,702
Litigation settlement	—		—		7,000			—			7,000
Other expense, net	—		—		744			—			744
EBITDA	$	187,267	$	28,534	$	(98,039	)	$	(6,006	)	111,756
Depreciation and amortization											44,404
Interest expense, net											40,965
Income before income taxes											$	26,387

Earnings Per Share (Tables)

9 Months Ended

Sep. 29, 2018

Earnings Per Share [Abstract]

Schedule of Reconciliation of Basic and Diluted EPS Calculations

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



	Three Months Ended				Nine Months Ended
In thousands, except EPS data	September 29, 2018		September 30, 2017		September 29, 2018		September 30, 2017
Net income	$	5,816	$	1,546	$	43,940	$	17,120
Weighted average shares outstanding for basic EPS	76,118		56,414		75,361		56,363
Effect of dilutive securities:
Stock options	3,485		2,045		3,119		1,918
Restricted stock	107		—		91		—
Weighted average shares outstanding for diluted EPS	79,710		58,459		78,571		58,281
Basic EPS	$	0.08	$	0.03	$	0.58	$	0.30
Diluted EPS	$	0.07	$	0.03	$	0.56	$	0.29
Anti-dilutive options outstanding excluded from EPS	—		—		—		339

Accumulated Other Comprehensive Loss (Tables)

9 Months Ended

Sep. 29, 2018

Equity [Abstract]

Schedule of Accumulated Other Comprehensive Loss

The following table presents the change in AOCL during the three and nine months ended September 29, 2018 and September 30, 2017, respectively:



	Three Months Ended						Nine Months Ended
In thousands	September 29, 2018			September 30, 2017			September 29, 2018			September 30, 2017
Cash flow hedging activity:
Balance at beginning of period	$	(2,746	)	$	(14,605	)	$	(9,868	)	$	(14,556	)
Other comprehensive income (loss) before reclassification	854			(371		)	6,696			(3,950		)
Tax effect of other comprehensive income (loss) before reclassification	(218		)	143			(1,715		)	1,526
Amount reclassified from AOCL	1,413			2,625			5,146			6,126
Tax effect of amount reclassified from AOCL	(362		)	(1,015		)	(1,318		)	(2,369		)
Net current period other comprehensive income, net of tax	1,687			1,382			8,809			1,333
Balance at end of period	$	(1,059	)	$	(13,223	)	$	(1,059	)	$	(13,223	)

Description of Business and Basis of Presentation - Asset Impairment (Details) $ in Millions	3 Months Ended	9 Months Ended
	Sep. 29, 2018 USD ($)	Sep. 29, 2018 USD ($)
Accounting Policies [Abstract]
Carrying amount of impaired long-lived assets held and used	$ 2.2	$ 2.2
Impairment charge on long-lived assets held and used	2.1	2.1
Estimated fair value of impaired long-lived assets held and used	$ 0.1	$ 0.1

Description of Business and Basis of Presentation - Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended	9 Months Ended
	Sep. 29, 2018	Sep. 29, 2018	Sep. 30, 2017
Accounting Policies [Abstract]
Effective income tax rate (percent)	25.60%	25.60%	35.20%
Tax benefit associated primarily with exercise of stock options	$ 13.9	$ 18.0

Description of Business and Basis of Presentation - Revenue from Contracts with Customers (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 29, 2018	Dec. 30, 2017	Dec. 31, 2016	Jan. 01, 2018
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Decrease in deferred revenue, current	$ (53,951)	$ (62,993)
Decrease in deferred revenue, noncurrent	(20,723)	(31,222)
Increase in deferred income taxes, net	75,378	73,648
Increase in retained earnings	100,113	$ 37,145
Impact of Adoption \| ASU No. 2014-09
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Decrease in deferred revenue, current	15,813			$ 14,000
Decrease in deferred revenue, noncurrent	11,792			11,800
Increase in deferred income taxes, net	7,072			6,800
Increase in retained earnings	$ 20,533			$ 19,000
Eyecare Club Memberships
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Percentage of consolidated net revenue	3.00%	3.00%	3.00%

Details of Certain Balance Sheet Accounts - Accounts Receivable, Net (Details) - USD ($) $ in Thousands	Sep. 29, 2018	Dec. 30, 2017
Accounts receivable, net:
Allowance for uncollectible accounts	$ (2,524)	$ (3,858)
Accounts receivable, net of allowances	38,875	43,193
Trade receivables
Accounts receivable, net:
Accounts receivable, gross	24,500	28,862
Credit card receivables
Accounts receivable, net:
Accounts receivable, gross	9,289	10,459
Tenant improvement allowances receivable
Accounts receivable, net:
Accounts receivable, gross	4,984	4,794
Other receivables
Accounts receivable, net:
Accounts receivable, gross	$ 2,626	$ 2,936

Details of Certain Balance Sheet Accounts - Inventories (Details) - USD ($) $ in Thousands	Sep. 29, 2018	Dec. 30, 2017
Inventories:
Raw materials and work in process	$ 45,379	$ 43,953
Finished goods	53,901	47,198
Inventories	$ 99,280	$ 91,151

Details of Certain Balance Sheet Accounts - Property and Equipment, Net (Details) - USD ($) $ in Thousands	Sep. 29, 2018	Dec. 30, 2017
Property and equipment, net:
Property and equipment, gross	$ 534,090	$ 451,904
Less accumulated depreciation	193,464	147,772
Property and equipment, net	340,626	304,132
Land and building
Property and equipment, net:
Property and equipment, gross	3,632	3,608
Equipment
Property and equipment, net:
Property and equipment, gross	252,549	220,088
Furniture and fixtures
Property and equipment, net:
Property and equipment, gross	47,423	42,708
Leasehold improvements
Property and equipment, net:
Property and equipment, gross	178,346	155,369
Construction in progress
Property and equipment, net:
Property and equipment, gross	29,806	18,375
Property under capital leases
Property and equipment, net:
Property and equipment, gross	$ 22,334	$ 11,756

Details of Certain Balance Sheet Accounts - Other Payables and Accrued Expenses (Details) - USD ($) $ in Thousands	Sep. 29, 2018	Dec. 30, 2017
Other payables and accrued expenses:
Employee compensation and benefits	$ 32,153	$ 21,134
Advertising	1,524	2,900
Self-insurance reserves	7,102	6,854
Reserves for customer returns and remakes	6,502	4,565
Capital expenditures	9,060	10,782
Legacy management and services agreement	5,319	6,000
Fair value of derivative liabilities	3,050	6,969
Sales and use taxes	1,130	1,218
Supplies and other store support expenses	2,638	3,014
Litigation settlements	3,838	3,942
Other	9,149	10,233
Total other payables and accrued expenses	$ 81,465	$ 77,611

Details of Certain Balance Sheet Accounts - Other Non-Current Liabilities (Details) - USD ($) $ in Thousands	Sep. 29, 2018	Dec. 30, 2017
Other non-current liabilities:
Fair value of derivative liabilities	$ 1,230	$ 9,155
Tenant improvements	25,742	22,894
Deferred rental expenses	8,463	7,246
Self-insurance reserves	4,915	4,564
Other	1,941	2,185
Total other non-current liabilities	$ 42,291	$ 46,044

Fair Value Measurements of Financial Assets and Liabilities - Narrative (Details) - Level 2 - USD ($) $ in Millions	Sep. 29, 2018	Dec. 30, 2017
Term Loan \| Estimated Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt instruments	$ 566.5	$ 570.2
Term Loan \| Carrying Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt instruments	554.3	557.3
Capital Lease Obligations \| Estimated Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt instruments	25.0	14.0
Capital Lease Obligations \| Carrying Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt instruments	$ 20.5	$ 12.0

Fair Value Measurements of Financial Assets and Liabilities - Interest Rate Derivatives (Details)	Sep. 29, 2018 USD ($) agreement	Mar. 31, 2018 USD ($)	Dec. 30, 2017 USD ($)
Derivative [Line Items]
Estimated reclassification from AOCL to earnings in next 12 months	$ 2,300,000
Interest Rate Swap \| Cash Flow Hedges
Derivative [Line Items]
Number of interest rate swap agreements \| agreement	3
Interest Rate Swap \| Designated as Hedging Instrument \| Cash Flow Hedges
Derivative [Line Items]
Notional amount	$ 465,000,000		$ 500,000,000
Interest Rate Swap One \| Designated as Hedging Instrument \| Cash Flow Hedges
Derivative [Line Items]
Notional amount		$ 140,000,000	$ 175,000,000

Fair Value Measurements of Financial Assets and Liabilities - Cash Flow Hedge Position of Interest Rate Derivative Contracts (Details) - USD ($)	Sep. 29, 2018	Dec. 30, 2017
Derivatives, Fair Value [Line Items]
Fair value of derivative liabilities, current	$ 3,050,000	$ 6,969,000
Fair value of derivative liabilities, noncurrent	1,230,000	9,155,000
Stranded tax benefit in AOCL	2,100,000
Interest Rate Swap \| Designated as Hedging Instrument \| Cash Flow Hedges
Derivatives, Fair Value [Line Items]
Notional amount	465,000,000	500,000,000
Hedge position in AOCL, net of tax	$ 1,059,000	$ 9,868,000

Stock Incentive Plan - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended	9 Months Ended		12 Months Ended
	Sep. 29, 2018	Sep. 29, 2018	Sep. 30, 2017	Dec. 30, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Tax benefit from option exercises	$ 13,900	$ 18,000
Non-cash stock-based compensation expense	9,500	$ 13,749	$ 3,140
Long-term incentive expense	4,600
Offering-related expenses	700
Excess payroll taxes associated with exercises of stock options	$ 900
Number of option awards issued and outstanding (shares)	7,670,164	7,670,164		10,516,116
Underwritten Public Offering
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares sold (shares)	16,614,852
2014 Stock Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Aggregate number of shares reserved under stock incentive plan (shares)	10,988,827	10,988,827
Number of shares available for future grants (shares)	468,975	468,975
2017 Omnibus Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Aggregate number of shares reserved under stock incentive plan (shares)	4,000,000	4,000,000
Number of shares available for future grants (shares)	3,733,259	3,733,259
Number of option awards issued and outstanding (shares)	92,443	92,443
Service-Based and Performance-Based
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise price of options exercised (in usd per share)		$ 5.74
Intrinsic value of options exercised		$ 81,600
Performance-Based
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of option awards issued and outstanding (shares)	4,933,842	4,933,842		6,524,152
Performance-Based \| 2014 Stock Incentive Plan \| Executive Officer
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options granted (shares)				217,390
Percentage of performance-based grant that vested due to targets met (percent)		20.00%
MOIC Performance-Based
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of performance-based grant that vested due to targets met (percent)	40.00%
Service-Based
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of option awards issued and outstanding (shares)	2,635,147	2,635,147		3,822,915
Restricted Stock Units \| 2017 Omnibus Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of restricted stock unit awards issued and outstanding (shares)	174,298	174,298

Stock Incentive Plan - Stock Option Activity (Details)	9 Months Ended
Stock Incentive Plan - Stock Option Activity (Details)	Sep. 29, 2018 shares
Options issued and outstanding
Outstanding, beginning balance (shares)	10,516,116
Exercised (shares)	(2,446,429)
Forfeited (shares)	(399,523)
Outstanding, ending balance (shares)	7,670,164
Options vested and exercisable
Exercisable, beginning balance (shares)	1,843,550
Vested (shares)	3,219,286
Exercised (shares)	(2,446,429)
Forfeited (shares)	(4,548)
Exercisable, ending balance (shares)	2,611,859
Rollover
Options issued and outstanding
Outstanding, beginning balance (shares)	169,049
Exercised (shares)	(67,874)
Forfeited (shares)	0
Outstanding, ending balance (shares)	101,175
Options vested and exercisable
Exercisable, beginning balance (shares)	169,049
Vested (shares)	0
Exercised (shares)	(67,874)
Forfeited (shares)	0
Exercisable, ending balance (shares)	101,175
Service-Based
Options issued and outstanding
Outstanding, beginning balance (shares)	3,822,915
Exercised (shares)	(1,117,583)
Forfeited (shares)	(70,185)
Outstanding, ending balance (shares)	2,635,147
Options vested and exercisable
Exercisable, beginning balance (shares)	1,631,023
Vested (shares)	812,936
Exercised (shares)	(1,117,583)
Forfeited (shares)	(4,548)
Exercisable, ending balance (shares)	1,321,828
Performance-Based
Options issued and outstanding
Outstanding, beginning balance (shares)	6,524,152
Exercised (shares)	(1,260,972)
Forfeited (shares)	(329,338)
Outstanding, ending balance (shares)	4,933,842
Options vested and exercisable
Exercisable, beginning balance (shares)	43,478
Vested (shares)	2,406,350
Exercised (shares)	(1,260,972)
Forfeited (shares)	0
Exercisable, ending balance (shares)	1,188,856

Related Party Transactions - Transactions With Equity Sponsors (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 29, 2018	Sep. 30, 2017	Sep. 29, 2018	Sep. 30, 2017
KKR Sponsor
Related Party Transaction [Line Items]
Fees paid to equity sponsors	$ 0	$ 220	$ 0	$ 2,993
Sponsor fees presented in debt issuance costs				2,300
Berkshire Partners LLC
Related Party Transaction [Line Items]
Fees paid to equity sponsors	$ 0	$ 52	$ 0	$ 156

Related Party Transactions - Equity in Net Assets of Non-Consolidated Investee (Details) - Equity Method Investee - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 29, 2018	Sep. 30, 2017	Sep. 29, 2018	Sep. 30, 2017	Dec. 30, 2017	Aug. 29, 2017
Related Party Transaction [Line Items]
Interest in investee's net losses	$ 0.4	$ 0.4	$ 1.0	$ 0.7
Equity method investment	$ 1.4		1.4		$ 2.3
Licensing fees in SG&A		$ 0.2	$ 0.2	$ 0.7
Loan receivable						$ 1.5

Revenue From Contracts With Customers - Disaggregation of Revenues (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 29, 2018	Sep. 30, 2017	Sep. 29, 2018	Sep. 30, 2017
Disaggregation of Revenue [Line Items]
Net revenue	$ 387,425	$ 346,089	$ 1,180,932	$ 1,053,489
Revenues recognized at a point in time
Disaggregation of Revenue [Line Items]
Net revenue	352,245		1,075,355
Revenues recognized over time
Disaggregation of Revenue [Line Items]
Net revenue	$ 35,180		$ 105,577

Revenue From Contracts With Customers - Effect of Adoption on Balance Sheet (Details) - USD ($) $ in Thousands	Sep. 29, 2018	Jan. 01, 2018	Dec. 30, 2017
Current liabilities:
Deferred revenue, current	$ 53,951		$ 62,993
Total current liabilities	197,199		211,309
Other non-current liabilities:
Deferred revenue, noncurrent	20,723		31,222
Deferred income taxes, net	75,378		73,648
Total other non-current liabilities	138,392		150,914
Stockholders’ equity:
Retained earnings	100,113		37,145
Total stockholders’ equity	758,171		$ 659,588
Without ASC 606 Adoption
Current liabilities:
Deferred revenue, current	69,764
Total current liabilities	213,012
Other non-current liabilities:
Deferred revenue, noncurrent	32,515
Deferred income taxes, net	68,306
Total other non-current liabilities	143,112
Stockholders’ equity:
Retained earnings	79,580
Total stockholders’ equity	737,638
Impact of Adoption \| ASU No. 2014-09
Current liabilities:
Deferred revenue, current	(15,813)	$ (14,000)
Total current liabilities	(15,813)
Other non-current liabilities:
Deferred revenue, noncurrent	(11,792)	(11,800)
Deferred income taxes, net	7,072	6,800
Total other non-current liabilities	(4,720)
Stockholders’ equity:
Retained earnings	20,533	$ 19,000
Total stockholders’ equity	$ 20,533

Revenue From Contracts With Customers - Effect of Adoption on Statements of Operations (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 29, 2018	Sep. 30, 2017	Sep. 29, 2018	Sep. 30, 2017
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Net revenue	$ 387,425	$ 346,089	$ 1,180,932	$ 1,053,489
Income from operations	(1,215)	16,560	64,221	70,054
Earnings before income taxes	(10,622)	1,709	36,077	26,387
Income tax (benefit) provision	(16,438)	163	(7,863)	9,267
Net income	$ 5,816	$ 1,546	$ 43,940	$ 17,120
Earnings per share:
Basic (in usd per share)	$ 0.08	$ 0.03	$ 0.58	$ 0.30
Diluted (in usd per share)	$ 0.07	$ 0.03	$ 0.56	$ 0.29
Net sales of services and plans
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Net revenue	$ 68,113	$ 62,441	$ 203,435	$ 186,297
Without ASC 606 Adoption
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Net revenue	386,963		1,179,103
Income from operations	(1,677)		62,392
Earnings before income taxes	(11,084)		34,248
Income tax (benefit) provision	(16,556)		(8,331)
Net income	$ 5,472		$ 42,579
Earnings per share:
Basic (in usd per share)	$ 0.07		$ 0.57
Diluted (in usd per share)	$ 0.07		$ 0.54
Without ASC 606 Adoption \| Net sales of services and plans
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Net revenue	$ 67,651		$ 201,606
Impact of Adoption \| ASU No. 2014-09
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Net revenue	462		1,829
Income from operations	462		1,829
Earnings before income taxes	462		1,829
Income tax (benefit) provision	118		468
Net income	$ 344		$ 1,361
Earnings per share:
Basic (in usd per share)	$ 0.01		$ 0.01
Diluted (in usd per share)	$ 0.00		$ 0.02
Impact of Adoption \| ASU No. 2014-09 \| Net sales of services and plans
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Net revenue	$ 462		$ 1,829

Revenue From Contracts With Customers - Unsatisfied Performance Obligations (Details) $ in Millions	9 Months Ended
	Sep. 29, 2018 USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-09-30
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Performance obligations expected to be satisfied	$ 19.2
Performance obligations expected to be satisfied, expected timing	3 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Performance obligations expected to be satisfied	$ 39.7
Performance obligations expected to be satisfied, expected timing	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Performance obligations expected to be satisfied	$ 12.5
Performance obligations expected to be satisfied, expected timing	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Performance obligations expected to be satisfied	$ 3.0
Performance obligations expected to be satisfied, expected timing	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Performance obligations expected to be satisfied	$ 0.2
Performance obligations expected to be satisfied, expected timing	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Performance obligations expected to be satisfied	$ 0.1
Performance obligations expected to be satisfied, expected timing

Revenue From Contracts With Customers - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 29, 2018	Sep. 30, 2017	Sep. 29, 2018	Sep. 30, 2017
Disaggregation of Revenue [Line Items]
Time frame for majority of payments on health care plans and programs accounts (in days)			90 days
Bad debt expense	$ 1,700	$ 1,900	$ 4,981	$ 4,513
Deferred revenue	74,700		74,700
Previously deferred revenue recognized	$ 26,500		$ 78,500
Minimum
Disaggregation of Revenue [Line Items]
General payment terms for accounts on health care plans and programs (in days)			14 days
Unearned revenue, estimated delivery time for period end calculation (in days)			4 days
Maximum
Disaggregation of Revenue [Line Items]
General payment terms for accounts on health care plans and programs (in days)			120 days
Unearned revenue, estimated delivery time for period end calculation (in days)			10 days
Owned & Host
Disaggregation of Revenue [Line Items]
Extended warranty plan, term (in years)			1 year
Owned & Host \| Minimum
Disaggregation of Revenue [Line Items]
Eyecare club membership, term (in years)			3 years
Owned & Host \| Maximum
Disaggregation of Revenue [Line Items]
Eyecare club membership, term (in years)			5 years

Commitments and Contingencies - Narrative (Details) - USD ($) $ in Thousands		1 Months Ended	3 Months Ended			9 Months Ended
	Nov. 08, 2017	May 31, 2017	Sep. 29, 2018	Sep. 30, 2017	Jul. 01, 2017	Sep. 29, 2018	Sep. 30, 2017
Loss Contingencies [Line Items]
Litigation settlement			$ 0	$ 0		$ 0	$ 7,000
1-800 Contacts Matter
Loss Contingencies [Line Items]
Amount of litigation settlement		$ 7,000
Litigation settlement					$ 7,000
Percent of settlement award deposited in escrow account (percent)	50.00%
Amount of settlement deposited in escrow account	$ 3,500

Segment Reporting - Narrative (Details) $ in Thousands	3 Months Ended		9 Months Ended
Segment Reporting - Narrative (Details) $ in Thousands	Sep. 29, 2018 USD ($) store	Sep. 30, 2017 USD ($)	Sep. 29, 2018 USD ($) store segment	Sep. 30, 2017 USD ($)	Dec. 30, 2017 store
Segment Reporting Information [Line Items]
Number of reportable segments \| segment			2
Number of retail vision centers \| store	1,067		1,067		1,013
Net revenue \| $	$ 387,425	$ 346,089	$ 1,180,932	$ 1,053,489
Legacy
Segment Reporting Information [Line Items]
Number of retail vision centers \| store	227		227
Legacy \| Management of operations
Segment Reporting Information [Line Items]
Net revenue \| $	$ 8,600	$ 9,100	$ 27,000	$ 28,300
Customer Concentration Risk \| Sales revenue
Segment Reporting Information [Line Items]
Concentration risk (percent)			10.10%

Segment Reporting - Financial Data by Segment (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 29, 2018	Sep. 30, 2017	Sep. 29, 2018	Sep. 30, 2017
Segment Reporting Information [Line Items]
Total net revenue	$ 387,425	$ 346,089	$ 1,180,932	$ 1,053,489
Total costs applicable to revenue	182,588	162,358	540,101	484,573
SG&A	184,424	151,251	519,564	445,714
Asset impairment	2,137	0	2,137	1,000
Debt issuance costs	0	0	0	2,702
Litigation settlement	0	0	0	7,000
Other expense, net	411	568	829	744
EBITDA	17,865	31,912	118,301	111,756
Depreciation and amortization	19,080	15,352	54,080	44,404
Interest expense, net	9,407	14,851	28,144	40,965
(Loss) earnings before income taxes	(10,622)	1,709	36,077	26,387
Products
Segment Reporting Information [Line Items]
Total net revenue	319,312	283,648	977,497	867,192
Total costs applicable to revenue	130,951	115,752	389,560	349,099
Services and plans
Segment Reporting Information [Line Items]
Total net revenue	68,113	62,441	203,435	186,297
Total costs applicable to revenue	51,637	46,606	150,541	135,474
Operating Segments \| Owned & Host
Segment Reporting Information [Line Items]
Total net revenue	296,555	259,154	906,565	795,941
Total costs applicable to revenue	118,113	102,554	349,903	304,506
SG&A	118,384	103,851	349,239	304,168
Asset impairment	0		0	0
Debt issuance costs				0
Litigation settlement				0
Other expense, net	0	0	0	0
EBITDA	60,058	52,749	207,423	187,267
Operating Segments \| Owned & Host \| Products
Segment Reporting Information [Line Items]
Total net revenue	240,882	211,035	738,886	649,526
Total costs applicable to revenue	72,532	63,159	217,195	190,604
Operating Segments \| Owned & Host \| Services and plans
Segment Reporting Information [Line Items]
Total net revenue	55,673	48,119	167,679	146,415
Total costs applicable to revenue	45,581	39,395	132,708	113,902
Operating Segments \| Legacy
Segment Reporting Information [Line Items]
Total net revenue	37,228	37,367	119,092	116,668
Total costs applicable to revenue	16,452	16,006	51,321	49,047
SG&A	13,621	12,904	40,519	39,087
Asset impairment	0		0	0
Debt issuance costs				0
Litigation settlement				0
Other expense, net	0	0	0	0
EBITDA	7,155	8,457	27,252	28,534
Operating Segments \| Legacy \| Products
Segment Reporting Information [Line Items]
Total net revenue	24,739	24,503	80,004	78,828
Total costs applicable to revenue	11,328	11,427	36,356	37,138
Operating Segments \| Legacy \| Services and plans
Segment Reporting Information [Line Items]
Total net revenue	12,489	12,864	39,088	37,840
Total costs applicable to revenue	5,124	4,579	14,965	11,909
Operating Segments \| Corporate/Other
Segment Reporting Information [Line Items]
Total net revenue	54,198	49,531	156,795	145,645
Total costs applicable to revenue	47,813	43,331	137,599	129,779
SG&A	52,419	34,496	129,806	102,459
Asset impairment	2,137		2,137	1,000
Debt issuance costs				2,702
Litigation settlement				7,000
Other expense, net	411	568	829	744
EBITDA	(48,582)	(28,864)	(113,576)	(98,039)
Operating Segments \| Corporate/Other \| Products
Segment Reporting Information [Line Items]
Total net revenue	53,286	46,421	153,856	134,371
Total costs applicable to revenue	46,881	40,699	134,731	120,116
Operating Segments \| Corporate/Other \| Services and plans
Segment Reporting Information [Line Items]
Total net revenue	912	3,110	2,939	11,274
Total costs applicable to revenue	932	2,632	2,868	9,663
Reconciling Items
Segment Reporting Information [Line Items]
Total net revenue	(556)	37	(1,520)	(4,765)
Total costs applicable to revenue	210	467	1,278	1,241
SG&A	0	0	0	0
Asset impairment	0		0	0
Debt issuance costs				0
Litigation settlement				0
Other expense, net	0	0	0	0
EBITDA	(766)	(430)	(2,798)	(6,006)
Reconciling Items \| Products
Segment Reporting Information [Line Items]
Total net revenue	405	1,689	4,751	4,467
Total costs applicable to revenue	210	467	1,278	1,241
Reconciling Items \| Services and plans
Segment Reporting Information [Line Items]
Total net revenue	(961)	(1,652)	(6,271)	(9,232)
Total costs applicable to revenue	$ 0	$ 0	$ 0	$ 0

Earnings Per Share - Reconciliation of Basic and Diluted EPS Calculations (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 29, 2018	Sep. 30, 2017	Sep. 29, 2018	Sep. 30, 2017
Earnings Per Share [Abstract]
Net income	$ 5,816	$ 1,546	$ 43,940	$ 17,120
Weighted average shares outstanding for basic EPS	76,118	56,414	75,361	56,363
Effect of dilutive securities:
Stock options	3,485	2,045	3,119	1,918
Restricted stock	107	0	91	0
Weighted average shares outstanding for diluted EPS	79,710	58,459	78,571	58,281
Basic EPS (in usd per share)	$ 0.08	$ 0.03	$ 0.58	$ 0.30
Diluted EPS (in usd per share)	$ 0.07	$ 0.03	$ 0.56	$ 0.29
Stock Options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive options outstanding excluded from EPS	0	0	0	339

Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 29, 2018	Sep. 30, 2017	Sep. 29, 2018	Sep. 30, 2017
Accumulated Other Comprehensive Loss, Net of Tax [Roll Forward]
Beginning balance			$ 659,588
Ending balance	$ 758,171		758,171
Cash Flow Hedges
Accumulated Other Comprehensive Loss, Net of Tax [Roll Forward]
Beginning balance	(2,746)	$ (14,605)	(9,868)	$ (14,556)
Other comprehensive income (loss) before reclassification	854	(371)	6,696	(3,950)
Tax effect of other comprehensive income (loss) before reclassification	(218)	143	(1,715)	1,526
Amount reclassified from AOCL	1,413	2,625	5,146	6,126
Tax effect of amount reclassified from AOCL	(362)	(1,015)	(1,318)	(2,369)
Net current period other comprehensive income, net of tax	1,687	1,382	8,809	1,333
Ending balance	$ (1,059)	$ (13,223)	$ (1,059)	$ (13,223)

Subsequent Events - Narrative (Details) - Subsequent Event - October 2018 Joinder - Term A Loans	Oct. 09, 2018 USD ($)
Subsequent Event [Line Items]
Aggregate principal amount	$ 200,000,000
Amortization per annum, year one through year three (percent)	2.50%
Amortization per annum, year four and thereafter (percent)	5.00%
Maximum allowable quarter end Consolidated Total Debt To Consolidated EBITDA Ratio	4.75
Maximum allowable quarter end Consolidated Interest Coverage Ratio	3.00
LIBOR
Subsequent Event [Line Items]
Applicable margin (percent)	1.75%
ABR
Subsequent Event [Line Items]
Applicable margin (percent)	0.75%
Total Leverage Ratio Less Than 2.00 \| Maximum
Subsequent Event [Line Items]
Total leverage ratio	2.00
Total Leverage Ratio Less Than 2.00 \| LIBOR
Subsequent Event [Line Items]
Applicable margin (percent)	1.25%
Total Leverage Ratio Less Than 2.00 \| ABR
Subsequent Event [Line Items]
Applicable margin (percent)	0.25%
Total Leverage Ratio Between 2.00 and 2.50 \| Minimum
Subsequent Event [Line Items]
Total leverage ratio	2.00
Total Leverage Ratio Between 2.00 and 2.50 \| Maximum
Subsequent Event [Line Items]
Total leverage ratio	2.50
Total Leverage Ratio Between 2.00 and 2.50 \| LIBOR
Subsequent Event [Line Items]
Applicable margin (percent)	1.50%
Total Leverage Ratio Between 2.00 and 2.50 \| ABR
Subsequent Event [Line Items]
Applicable margin (percent)	0.50%
Total Leverage Ratio Greater Than 2.50 \| Minimum
Subsequent Event [Line Items]
Total leverage ratio	2.50
Total Leverage Ratio Greater Than 2.50 \| LIBOR
Subsequent Event [Line Items]
Applicable margin (percent)	1.75%
Total Leverage Ratio Greater Than 2.50 \| ABR
Subsequent Event [Line Items]
Applicable margin (percent)	0.75%

Label	Element	Value
Restricted Cash and Cash Equivalents	us-gaap_RestrictedCashAndCashEquivalents	$ 980,000
Restricted Cash and Cash Equivalents	us-gaap_RestrictedCashAndCashEquivalents	$ 1,188,000

Description of Business and Basis of Presentation - Nature of Operations (Details)	Sep. 29, 2018 store store_brand	Dec. 30, 2017 store
Accounting Policies [Abstract]
Number of retail optical locations \| store	1,067	1,013
Number of store brands \| store_brand	5