Cover Page
Cover Page - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 28, 2019 | Jan. 31, 2020 | Jun. 29, 2019 | |
Cover page. | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 28, 2019 | ||
Document Transition Report | false | ||
Entity File Number | 001-38257 | ||
Entity Registrant Name | National Vision Holdings, Inc. | ||
Entity Central Index Key | 0001710155 | ||
Current Fiscal Year End Date | --12-28 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 46-4841717 | ||
Entity Address, Address Line One | 2435 Commerce Ave | ||
Entity Address, Address Line Two | Building 2200 | ||
Entity Address, City or Town | Duluth | ||
Entity Address, State or Province | GA | ||
Entity Address, Postal Zip Code | 30096 | ||
City Area Code | 770 | ||
Local Phone Number | 822‑3600 | ||
Title of 12(b) Security | Common Stock, par value $0.01 per share | ||
Trading Symbol | EYE | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 2.1 | ||
Entity Common Stock, Shares Outstanding | 80,207,244 | ||
Documents Incorporated by Reference | Portions of the registrant's definitive Proxy Statement for its 2020 Annual Meeting of Stockholders are incorporated by reference into Part III of this Annual Report on Form 10-K. The Proxy Statement will be filed with the Securities and Exchange Commission within 120 days of the registrant’s fiscal year ended December 28, 2019. |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 28, 2019 | Dec. 29, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 39,342 | $ 17,132 |
Accounts receivable, net | 44,475 | 50,735 |
Inventories | 127,556 | 116,022 |
Prepaid expenses and other current assets | 23,266 | 30,815 |
Total current assets | 234,639 | 214,704 |
Property and equipment, net | 366,767 | |
Property and equipment, net | 355,117 | |
Other assets: | ||
Goodwill | 777,613 | 777,613 |
Trademarks and trade names | 240,547 | 240,547 |
Other intangible assets, net | 56,940 | 64,532 |
Right of use assets | 348,090 | |
Other assets | 8,129 | 8,876 |
Total non-current assets | 1,798,086 | 1,446,685 |
Total assets | 2,032,725 | 1,661,389 |
Current liabilities: | ||
Accounts payable | 40,782 | 43,642 |
Other payables and accrued expenses | 82,829 | 81,004 |
Unearned revenue | 28,002 | 27,295 |
Deferred revenue | 55,870 | 52,144 |
Current maturities of long-term debt and finance lease obligations | 13,759 | 7,567 |
Current operating lease obligations | 51,937 | |
Total current liabilities | 273,179 | 211,652 |
Long-term debt and finance lease obligations, less current portion and debt discount | 555,933 | 570,545 |
Non-current operating lease obligations | 331,769 | |
Other non-current liabilities: | ||
Deferred revenue | 21,530 | 20,134 |
Other liabilities | 13,731 | 53,964 |
Deferred income taxes, net | 60,146 | 61,940 |
Total other non-current liabilities | 95,407 | 136,038 |
Commitments and contingencies (See Note 13) | ||
Stockholders’ equity: | ||
Common stock, $0.01 par value; 200,000 shares authorized; 80,603 and 78,246 shares issued as of December 28, 2019 and December 29, 2018, respectively; 79,678 and 78,167 shares outstanding as of December 28, 2019 and December 29, 2018, respectively | 805 | 782 |
Additional paid-in capital | 700,121 | 672,503 |
Accumulated other comprehensive loss | (3,814) | (2,810) |
Retained earnings | 107,132 | 74,840 |
Treasury stock, at cost; 925 and 79 shares as of December 28, 2019 and December 29, 2018, respectively | (27,807) | (2,161) |
Total stockholders’ equity | 776,437 | 743,154 |
Total liabilities and stockholders’ equity | $ 2,032,725 | $ 1,661,389 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 28, 2019 | Aug. 12, 2019 | Dec. 29, 2018 | Oct. 30, 2017 | Feb. 02, 2017 |
Statement of Financial Position [Abstract] | |||||
Common stock, par value (in usd per share) | $ 0.01 | $ 0.01 | $ 0.01 | ||
Common stock, authorized (shares) | 200,000,000 | 200,000,000 | 200,000,000 | ||
Common stock, issued (shares) | 80,603,000 | 78,246,000 | |||
Common stock, outstanding (shares) | 79,678,000 | 78,167,000 | 110,500,000 | ||
Treasury stock, at cost (shares) | 925,000 | 79,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 28, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Revenue: | |||||||||||
Total net revenue | $ 401,763 | $ 431,902 | $ 429,451 | $ 461,215 | $ 355,922 | $ 387,425 | $ 385,532 | $ 407,975 | $ 1,724,331 | $ 1,536,854 | $ 1,375,308 |
Costs applicable to revenue (exclusive of depreciation and amortization): | |||||||||||
Total costs applicable to revenue | 187,542 | 204,502 | 202,506 | 211,969 | 173,470 | 182,588 | 177,059 | 180,454 | 806,519 | 713,571 | 636,966 |
Operating expenses: | |||||||||||
Selling, general and administrative expenses | 744,488 | 687,476 | 600,010 | ||||||||
Depreciation and amortization | 87,244 | 74,339 | 61,974 | ||||||||
Asset impairment | 8,894 | 17,630 | 4,117 | ||||||||
Litigation settlement | 0 | 0 | 7,000 | ||||||||
Other expense, net | 3,611 | 1,487 | 950 | ||||||||
Total operating expenses | 844,237 | 780,932 | 674,051 | ||||||||
Income from operations | 8,361 | 11,112 | 21,702 | 32,400 | (19,387) | (2,083) | 24,973 | 38,848 | 73,575 | 42,351 | 64,291 |
Interest expense, net | 33,300 | 37,283 | 55,536 | ||||||||
Debt issuance costs | 0 | 200 | 4,527 | ||||||||
Loss on extinguishment of debt | 9,786 | 0 | 0 | ||||||||
Earnings before income taxes | 30,489 | 4,868 | 4,228 | ||||||||
Income tax provision (benefit) | (2,309) | (18,785) | (38,910) | ||||||||
Net income | $ 3,920 | $ 1,192 | $ 10,257 | $ 17,429 | $ (18,440) | $ 5,171 | $ 12,467 | $ 24,455 | $ 32,798 | $ 23,653 | $ 43,138 |
Earnings per share: | |||||||||||
Basic (in usd per share) | $ 0.05 | $ 0.02 | $ 0.13 | $ 0.22 | $ (0.24) | $ 0.07 | $ 0.17 | $ 0.33 | $ 0.42 | $ 0.31 | $ 0.72 |
Diluted (in usd per share) | $ 0.05 | $ 0.01 | $ 0.13 | $ 0.21 | $ (0.24) | $ 0.06 | $ 0.16 | $ 0.31 | $ 0.40 | $ 0.30 | $ 0.70 |
Weighted average shares outstanding: | |||||||||||
Basic (shares) | 79,271 | 78,474 | 78,318 | 78,205 | 77,526 | 76,118 | 75,249 | 74,714 | 78,608 | 75,899 | 59,895 |
Diluted (shares) | 81,785 | 81,561 | 81,424 | 81,466 | 77,526 | 79,710 | 77,858 | 77,837 | 81,683 | 79,041 | 62,035 |
Comprehensive income: | |||||||||||
Net income | $ 3,920 | $ 1,192 | $ 10,257 | $ 17,429 | $ (18,440) | $ 5,171 | $ 12,467 | $ 24,455 | $ 32,798 | $ 23,653 | $ 43,138 |
Unrealized gain (loss) on hedge instruments | (1,350) | 9,488 | 7,613 | ||||||||
Tax provision (benefit) of unrealized gain (loss) on hedge instruments | (346) | 2,430 | 2,925 | ||||||||
Comprehensive income | 31,794 | 30,711 | 47,826 | ||||||||
Products | |||||||||||
Revenue: | |||||||||||
Total net revenue | 1,426,136 | 1,269,612 | 1,129,313 | ||||||||
Costs applicable to revenue (exclusive of depreciation and amortization): | |||||||||||
Total costs applicable to revenue | 574,351 | 511,406 | 456,078 | ||||||||
Services and plans | |||||||||||
Revenue: | |||||||||||
Total net revenue | 298,195 | 267,242 | 245,995 | ||||||||
Costs applicable to revenue (exclusive of depreciation and amortization): | |||||||||||
Total costs applicable to revenue | $ 232,168 | $ 202,165 | $ 180,888 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Loss | Retained Earnings (Accumulated Deficit) | Treasury Stock |
Beginning balance (shares) at Dec. 31, 2016 | 56,202 | |||||
Beginning balance at Dec. 31, 2016 | $ 399,581 | $ 562 | $ 424,789 | $ (14,556) | $ (10,981) | $ (233) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Dividends to stockholders | (170,983) | (170,983) | ||||
Issuance of common stock, net (shares) | 18,452 | |||||
Issuance of common stock | 373,024 | $ 184 | 372,840 | |||
Stock based compensation | 5,152 | 5,152 | ||||
Unrealized gain (loss) on hedge instruments, net of tax | 4,688 | 4,688 | ||||
Net income | 43,138 | 43,138 | ||||
Ending balance (shares) at Dec. 30, 2017 | 74,654 | |||||
Ending balance at Dec. 30, 2017 | 654,600 | $ 746 | 631,798 | (9,868) | 32,157 | (233) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of common stock, net (shares) | 3,564 | |||||
Issuance of common stock | 19,802 | $ 36 | 19,766 | |||
Stock based compensation | 20,939 | 20,939 | ||||
Purchase of treasury stock (shares) | (51) | |||||
Purchase of treasury stock | (1,928) | (1,928) | ||||
Unrealized gain (loss) on hedge instruments, net of tax | 7,058 | 7,058 | ||||
Net income | 23,653 | 23,653 | ||||
Ending balance (shares) at Dec. 29, 2018 | 78,167 | |||||
Ending balance at Dec. 29, 2018 | 743,154 | $ 782 | 672,503 | (2,810) | 74,840 | (2,161) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of common stock, net (shares) | 2,357 | |||||
Issuance of common stock | 15,090 | $ 23 | 15,067 | |||
Stock based compensation | 12,551 | 12,551 | ||||
Purchase of treasury stock (shares) | (846) | |||||
Purchase of treasury stock | (25,646) | (25,646) | ||||
Unrealized gain (loss) on hedge instruments, net of tax | (1,004) | (1,004) | ||||
Net income | 32,798 | 32,798 | ||||
Ending balance (shares) at Dec. 28, 2019 | 79,678 | |||||
Ending balance at Dec. 28, 2019 | $ 776,437 | $ 805 | $ 700,121 | $ (3,814) | $ 107,132 | $ (27,807) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Cash flows from operating activities: | |||
Net income | $ 32,798 | $ 23,653 | $ 43,138 |
Adjustments to reconcile net income to cash provided by operating activities: | |||
Depreciation and amortization | 87,244 | 74,339 | 61,974 |
Amortization of loan costs | 1,289 | 1,848 | 7,078 |
Asset impairment | 8,894 | 17,630 | 4,117 |
Deferred income tax expense (benefit) | (2,378) | (19,340) | (39,997) |
Stock based compensation expense | 12,670 | 20,939 | 5,152 |
Inventory adjustments | 4,352 | 3,868 | 5,496 |
Bad debt expense | 8,210 | 7,107 | 8,035 |
Debt issuance costs | 0 | 200 | 4,527 |
Loss on extinguishment of debt | 9,786 | 0 | 0 |
Other | 5,309 | 2,413 | 1,188 |
Changes in operating assets and liabilities: | |||
Accounts receivable, net | (6,925) | (14,649) | (16,858) |
Inventories | (15,886) | (28,739) | (9,583) |
Other assets | 10,103 | (7,011) | (2,075) |
Accounts payable | (2,860) | 7,934 | (3,692) |
Deferred revenue | 5,122 | 3,839 | 6,787 |
Other liabilities | 7,353 | 12,597 | 14,965 |
Net cash provided by operating activities | 165,081 | 106,628 | 90,252 |
Cash flows from investing activities: | |||
Purchase of property and equipment | (101,325) | (104,493) | (93,219) |
Purchase of investments | 0 | 0 | (1,500) |
Other | 694 | 272 | 136 |
Net cash used for investing activities | (100,631) | (104,221) | (94,583) |
Cash flows from financing activities: | |||
Proceeds from issuance of long-term debt, net of discounts | 566,550 | 200,000 | 174,924 |
Proceeds from issuance of common stock | 14,767 | 19,802 | 373,024 |
Principal payments on long-term debt | (591,925) | (204,275) | (367,660) |
Purchase of treasury stock | (25,646) | (1,928) | 0 |
Payments on finance lease obligations | (2,957) | ||
Payments on finance lease obligations | (1,802) | (940) | |
Payments of debt issuance costs | (2,930) | (1,400) | (4,527) |
Dividend to stockholders | 0 | 0 | (170,983) |
Net cash provided by (used for) financing activities | (42,141) | 10,397 | 3,838 |
Net change in cash, cash equivalents and restricted cash | 22,309 | 12,804 | (493) |
Cash and cash equivalents and restricted cash, beginning of year | 17,998 | 5,194 | 5,687 |
Cash and cash equivalents and restricted cash, end of year | 40,307 | 17,998 | 5,194 |
Supplemental cash flow information: | |||
Cash paid for interest | 33,935 | 33,469 | 47,090 |
Cash paid (received) for taxes | 684 | 1,447 | 2,647 |
Capital expenditures accrued at the end of the period | 9,059 | 14,078 | 10,782 |
Right of use assets acquired under finance leases | 9,713 | 14,303 | 10,117 |
Right of use assets acquired under operating leases | 108,712 | 0 | 0 |
Non-cash issuance of common shares | 0 | 446 | 0 |
Non-cash purchase of treasury stock | $ 0 | $ (446) | $ 0 |
Business and Significant Accoun
Business and Significant Accounting Policies | 12 Months Ended |
Dec. 28, 2019 | |
Accounting Policies [Abstract] | |
Business and Significant Accounting Policies | Nature of Operations National Vision Holdings, Inc. (“NVHI,” the “Company,” “we,” “our,” or “us”) is a holding company whose operating subsidiaries include its indirect wholly owned subsidiary, National Vision, Inc. (“NVI”) and NVI’s direct wholly owned subsidiaries. We are a leading value retailer of eyeglasses and contact lenses in the United States. We operated 1,151 and 1,082 retail optical locations in the United States and its territories as of the fiscal years ended December 28, 2019 and December 29, 2018 , respectively, through our five store brands, including America’s Best Contacts and Eyeglasses (“America’s Best”), Eyeglass World, Vista Optical locations on U.S. Army/Air Force military bases (“Military”) and within Fred Meyer (“Fred Meyer”) stores, and our management & services arrangement with Walmart (“Legacy”). We sell contact lenses and optical accessory products to retail customers through proprietary retail web sites and web sites on behalf of certain independent retailers and insurance companies. We also distribute contact lenses to Walmart and Sam's Club store locations. We also operate a specialized health maintenance organization (“HMO”) that is licensed as a single-service health plan under California law. The HMO issues individual vision care benefit plans in connection with our America’s Best operations in California, and provides, or arranges for the provision of, optometric services at the offices next to certain Walmart stores throughout California. Fiscal Year We operate on a retail fiscal calendar that results in a given fiscal year consisting of a 52 - or 53 -week period ending on the Saturday closest to December 31. In a 52 -week fiscal year, each quarter contains 13 weeks of operations; in a 53 -week fiscal year, each of the first, second and third quarters includes 13 weeks of operations and the fourth quarter includes 14 weeks of operations. References herein to “fiscal year 2019 ,” “fiscal year 2018 ,” and “fiscal year 2017 ,” relate to the 52 weeks ended December 28, 2019 , December 29, 2018 and December 30, 2017 , respectively. Unless otherwise stated, references to years in this report relate to fiscal years rather than calendar years. Basis of Presentation and Principles of Consolidation We prepare our consolidated financial statements in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The consolidated financial statements include our accounts and those of our subsidiaries, all of which are wholly-owned. All intercompany balances and transactions have been eliminated in consolidation. 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. Initial and Secondary Public Offerings On October 30, 2017 , we completed an initial public offering of our common stock (“IPO”) in which we issued and sold 18,170,000 shares, including 2,370,000 shares pursuant to the exercise in full of the underwriters’ option to purchase additional shares. The shares sold in the offering were registered under the Securities Act pursuant to our Registration Statement on Form S-1 (File No. 333-220719), which was declared effective by the Securities and Exchange Commission on October 25, 2017 . The shares were sold at an initial offering price of $22.00 per share, which generated net proceeds of approximately $375.8 million to the Company, after deducting underwriting discounts and commissions of approximately $24.0 million which included $0.7 million paid to KKR Capital Markets LLC (“KCM”), an affiliate of KKR, for underwriting services in connection with the IPO. We primarily used the proceeds from the IPO to repay $125.0 million in outstanding aggregate principal amount of our second lien term loans and approximately $235.0 million of the outstanding principal amount of our Term Loan B under our first lien credit agreement and accrued and unpaid interest thereon. The repayment resulted in a retirement of debt in the amount of $353.3 million . Additionally, we paid $4.8 million of transaction related costs which are recorded as a charge against additional paid-in capital included in the consolidated balance sheets. The remaining $11.0 million of the proceeds was used for general corporate purposes, and payment of the termination fees described below. NVI was party to a Monitoring Agreement, dated as of March 14, 2014 , with KKR and Berkshire Partners LLC (“Berkshire”), which was terminated automatically in accordance with its terms upon the completion of the IPO. The Company paid termination fees of approximately $3.6 million and $0.8 million to KKR and Berkshire, respectively, recorded in selling, general and administrative (“SG&A”) in the consolidated statements of operations. Affiliates of KKR and Berkshire retained 58.2% and 13.6% ownership interest, respectively, in the Company after the IPO. During fiscal year 2018 , we completed three underwritten public offerings in which KKR, Berkshire and certain management stockholders (“selling stockholders”) sold an aggregate of 42,914,852 shares of the Company’s common stock. The Company did not receive any proceeds from the offerings. However, the second and third offerings resulted in certain incentive compensation expenses relating to vesting of performance-based stock options and a payout under a non-executive long-term incentive plan. See Note 5 . “Stock Incentive Plan” for details. On August 7, 2019 , the Company entered into an Underwriting Agreement by and among the Company, KKR Vision Aggregator L.P. (the “Selling Stockholder”), and Goldman Sachs & Co. LLC, as underwriter (the “Underwriter”), relating to an underwritten offering of 9,149,908 shares of the Company’s common stock, par value $0.01 per share. The offering was completed on August 12, 2019 . In connection with the offering, our Board of Directors authorized, and the Company completed, a repurchase of 819,134 shares out of the 9,149,908 shares of common stock subject to the offering from the Underwriter at $30.52 per share, which was the price the Underwriter purchased the shares from the Selling Stockholder in the offering. The Company did not receive any proceeds from the offering. As a result of this underwritten offering and concurrent share repurchase, the Selling Stockholder no longer owned any shares of our common stock. The secondary offering constituted a vesting event whereby a final portion of the performance-based options vested and the remaining portion of unvested performance options awarded under the 2014 Stock Incentive Plan was forfeited. Refer to Note 5 . “Stock Incentive Plans” for further information on stock based compensation activity as of fiscal year end 2019 . As a result of the offering, we incurred $4.2 million of non-cash stock-based compensation expense and additionally recorded $2.8 million in long-term cash incentive compensation expense and $0.4 million in offering related SG&A expenses for fiscal year end 2019 . Second Amended and Restated Certificate of Incorporation and Bylaws The Company’s Second Amended and Restated Certificate of Incorporation became effective in connection with the completion of the IPO on October 30, 2017 , which among other things, provides that the Company’s authorized capital stock consists of 200,000,000 shares of common stock and 50,000,000 shares of preferred stock, par value $0.01 per share. The Company’s bylaws were also amended and restated as of October 30, 2017 . Stock Split On October 12, 2017 , the Company’s Board of Directors approved a 1.96627 -for-one reverse stock split of the Company’s common stock, effective October 24, 2017 . The accompanying consolidated financial statements and notes thereto give retroactive effect to the reverse stock split for all periods presented. Cash and Cash Equivalents Cash consists of currency and demand deposits with financial institutions. We consider all highly liquid investments with an original maturity of three months or less at the date of purchase to be cash equivalents. We maintain the majority of our cash and cash equivalents in one large national banking institution. Such amounts are in excess of federally insured limits. We also review cash balances on a bank by bank basis to identify book overdrafts. Book overdrafts occur when the amount of outstanding checks exceed the cash deposited at a bank. We reclassify book overdrafts, if any, to accounts payable in the accompanying consolidated balance sheets. Accounts Receivable, Net Accounts receivable associated with revenues consist primarily of trade receivables and credit card receivables. Trade receivables consist primarily of receivables from managed care payors and receivables from major retailers. While we have relationships with almost all vision care insurers in the United States and with all of the major carriers, currently, a relatively small number of payors comprise the majority of our managed care revenues, subjecting us to concentration risk. Accounts receivable are reduced by allowances for amounts that may become uncollectible. Estimates of our allowance for uncollectible accounts are based on our historical and current operating, billing and collection trends. Accounts receivable are written off after all collection attempts have been exhausted. Bad debt expense recognized on our receivables was approximately $8.2 million , $7.1 million and $8.0 million for the fiscal years 2019 , 2018 and 2017 , respectively. Inventories The cost of inventory is determined using the weighted average cost method. Inventories at retail stores consist of finished goods and are valued at the lower of cost or estimated net realizable value (“NRV”). Manufactured inventories are valued using absorption accounting which includes material, labor, other variable costs and other applicable manufacturing overhead. Inventory values are adjusted for estimated obsolescence and written down to NRV based on estimates of current and anticipated demand, customer preference, merchandise age, planned promotional activities, contact lens vendor return acceptance activity, and estimates of future retail sales prices. Shrinkage is estimated and recorded throughout the period as a percentage of cost of sales based on historical results and current inventory levels. Actual shrinkage is recorded throughout the year based upon periodic physical counts. See Note 2 . “Details of Certain Balance Sheet Accounts” for further details. The Company’s inventory consists primarily of contact lenses, eyeglass frames and unprocessed eyeglass lenses. A significant portion of our inventory is supplied by a small number of key vendors. During fiscal year 2019 , 92% of contact lens expenditures were with three vendors, 51% of frame expenditures were with two vendors and 88% of lens expenditures were with one vendor. This exposes us to vendor concentration risk. Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets primarily include prepaid software maintenance and licensing fees, prepaid rent, prepaid advertising, prepaid insurance, supplies and income taxes receivable. Property and Equipment Property and equipment (“P&E”) is stated at cost less accumulated depreciation. Depreciation associated with P&E is included in depreciation and amortization in the accompanying consolidated statements of operations. When we retire or otherwise dispose of P&E, we remove the cost and related accumulated depreciation from our accounts and recognize any gain or loss on the sale of such assets in SG&A in the consolidated statements of operations. We capitalize major replacements and remodeling, and recognize expenditures for maintenance and repairs in SG&A. We depreciate P&E for financial accounting purposes using the straight-line method over the following estimated useful lives: Buildings 34 years Equipment 3 - 7 years Information technology hardware and software (a) 2 - 5 years Furniture and fixtures 6 years Leasehold improvements (b) 10 years P&E under capital leases (b) 10 years ____________ (a) Costs of developing or obtaining software for internal use, such as direct costs of materials or services and internal payroll costs related to the software development projects, are capitalized to information technology hardware and software. (b) Depreciation of leasehold improvements is recognized over the shorter of the estimated useful life of the asset or the term of the lease. The term of the lease includes renewal options for additional periods if the exercise of the renewal is considered to be reasonably assured. Goodwill and Intangible Assets Indefinite-lived intangible assets include goodwill and our trademarks and tradenames; we evaluate these assets annually for impairment, or more frequently if events and circumstances indicate that it is more likely than not that goodwill is impaired. Our annual testing date for impairment of goodwill and indefinite-lived intangible assets is the first day of the fourth fiscal quarter, which for fiscal years 2019 and 2018 was September 29, 2019 , and September 30, 2018 , respectively. Finite-lived, amortizing intangible assets primarily consist of our contracts and relationships with certain retailers and our customer database tool. We amortize finite-lived intangible assets on a straight-line basis over their estimated useful lives, ranging from four to 23 years . Amortization expense associated with finite-lived intangible assets is included in depreciation and amortization in the accompanying consolidated statements of operations. Goodwill is impaired if a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying value of goodwill. We consider each of our operating segments to be reporting units. We estimate the fair value of our reporting units using the income approach, which is based on a discounted cash flow analysis and calculate the fair value of reporting units by estimating after-tax cash flows discounted using a weighted average cost of capital. The cash flows used in the analysis are based on financial forecasts developed internally by management and require significant judgment. The significant unobservable inputs used in the fair value measurement of the reporting units are revenue growth rate, cost of sales, payroll expense growth rate and other store expenses growth rate. These assumptions are sensitive to future changes in the business profitability, changes in our business strategy and external market conditions, among other factors. A decrease to the long term revenue growth rate assumption or an increase to the expense growth rate assumptions could require us to record goodwill impairment charges. If impairment indicators related to amortizing intangible assets are present, we estimate cash flows expected to be generated over the remaining useful lives of the related assets based on current projections. If the projected net undiscounted cash flows are less than the carrying value of the related assets, we then measure impairment based on a discounted cash flow model and record an impairment charge as the excess of carrying value and estimated fair value. We use the relief-from-royalty method to estimate fair value, which involves estimating a royalty rate based on comparable licensing arrangements, applying that rate to the revenue projections for the subject asset, and then estimating fair value using a discounted cash flow analysis. We record an impairment charge as the excess of carrying value over estimated fair value. See Note 3 . “Goodwill and Intangible Assets” for further detail on impairment of goodwill and intangible assets. Other Assets Other non-current assets consist primarily of our investment in and loans to our equity method investee, below market leases, self-insurance recoveries and technology support service contracts. Equity Method Investment The Company has an investment in a private start-up company whose principal business is licensing software to eyeglass retailers. We evaluate the recoverability of our investment by first reviewing the investment for any indicators of impairment. If indicators are present, we estimate the fair value of the investment. If the carrying value of the investment exceeds the estimated fair value, we assess whether the impairment is other-than-temporary (“OTTI”). In making this assessment, we consider the length of time and the extent to which fair value has been less than cost and our intent and ability to retain our interest long enough for a recovery in market value. Based on our current year assessment, we did not identify OTTI in our equity method investment. See Note 10 . “Equity in Net Assets of Non-Consolidated Investee,” for further discussion relating to this investment. Fair Value Measurement of Assets and Liabilities (Non-Recurring Basis) Non-financial assets such as P&E and intangible assets are subject to nonrecurring fair value measurements if impairment indicators are present. Factors we consider important that could trigger an impairment review include a significant under-performance compared to expected operating results, a significant or adverse change in customer business climate, and a significant negative industry or economic trend. Deferred Financing Costs and Loan Discounts Costs incurred in connection with long-term debt which are paid directly to the Company’s lenders and to third parties are treated as debt discounts. Loan discounts are amortized over the term of the related financing agreement and included in interest expense in the accompanying consolidated statements of operations. Self-Insurance Liabilities We are primarily self-insured for workers’ compensation, employee health benefits and general liability claims. We record self-insurance liabilities based on claims filed, including the development of those claims and an estimate of claims incurred but not yet reported. Should a different amount of claims occur compared to what was estimated, or costs of the claims increase or decrease beyond what was anticipated, liabilities may need to be adjusted accordingly. We periodically update our estimates and record such adjustments in the period in which such determination is made. Self-insurance liabilities are recorded in other payables and accrued expenses (current portion) and other non-current liabilities on an undiscounted basis in the accompanying consolidated balance sheets. We reinsure worker’s compensation and medical claims above our retention levels of $0.3 million per claim and $0.2 million per individual, respectively, with a highly rated financial institution that can be expected to fully perform under the terms of the arrangement. Estimated recoveries from reinsurance are included in prepaid expenses and other current assets in the amounts of $1.1 million and $0.8 million (current portion) as of fiscal year end 2019 and fiscal year end 2018 , respectively, and other assets in the amounts of $2.4 million and $1.1 million (non-current portion) as of fiscal year end 2019 and fiscal year end 2018 , respectively, in the accompanying consolidated balance sheets. The accrued obligation for self-insurance programs was $8.4 million and $8.1 million (current portion) and $7.3 million and $5.1 million (non-current portion) as of fiscal year end 2019 and fiscal year end 2018 , respectively. Derivative Financial Instruments The Company uses interest rate swaps to manage its exposure to adverse fluctuations in interest rates by converting a portion of our debt portfolio from a floating rate to a fixed rate. We designate our interest rate swaps as cash flow hedges and formally document our hedge relationships, including identification of the hedging instruments and the hedged items, as well as our risk management objectives and strategies for undertaking the hedge transactions. We record all interest rate swaps in our consolidated balance sheets on a gross basis at fair value. Fair value represents estimated amounts we would receive or pay upon a termination of interest rate swaps prior to their scheduled expiration dates. The fair value was based on information that is model-driven and whose inputs were observable (Level 2 inputs). We do not hold or enter into financial instruments for trading or speculative purposes. The gain or loss resulting from fair value adjustments on cash flow hedges is recorded in accumulated other comprehensive loss (“AOCL”) in the accompanying consolidated balance sheets until the hedged item is recognized as interest expense in the consolidated statements of operations. We perform periodic assessments of the effectiveness of our derivative contracts designated as hedges, including the possibility of counterparty default. To manage credit risk associated with our interest rate hedging program, we select counterparties based on their credit ratings and limit our exposure to any single counterparty. The counterparties to our derivative contracts are major financial institutions with investment grade credit ratings. The impact of credit risk, as well as the ability of each party to fulfill its obligations under our derivative financial instruments, is considered in determining the fair value of the contracts. Credit risk has not had a significant effect on the fair value of our derivative instruments. We do not have any credit risk-related contingent features or collateral requirements associated with our derivative contracts. See Note 14 . “Interest Rate Derivatives” for further details. Accumulated Other Comprehensive Loss AOCL is defined as the change in equity of a business enterprise during a period from transactions and other events and circumstances from non-owner sources. Accumulated other comprehensive loss, net of income tax, is entirely composed of the cumulative unrealized loss on our hedging instruments. See Note 18 . “Accumulated Other Comprehensive Loss” for details of reclassifications out of AOCL. Revenue Recognition Product revenues include sales of prescription and non-prescription eyewear, contact lenses, related accessories to retail customers (including those covered by managed care) and sales of inventory in which our customer is another retail entity. Revenues from services and plans include eye exams, eyecare club membership fees, product protection plans (i.e. warranties) and HMO membership fees. Service revenue also includes fees we earn for managing certain Vision Centers and performing laboratory processing services for our legacy partner. At our America’s Best brand, our signature offer is two pairs of eyeglasses and a free eye exam for one low price (“ two -pair offer”). Since an eye exam is a key component in the ability for acceptable prescription eyewear to be delivered to a customer, we concluded that the eye exam service, while capable of being distinct from the eyeglass product delivery, was not distinct in the context of the two -pair offer. As a result, we do not allocate revenue to the eye exam associated with the two -pair offer, and we record all revenue associated with the offer in Owned & Host net product sales when the customer has received and accepted the merchandise. Our retail customers generally make payments for prescription eyewear products at the time they place an order. Amounts we collect in advance for undelivered merchandise are reported as unearned revenue in the accompanying consolidated balance sheets. Unearned revenue at the end of a reporting period is estimated based on processing and delivery times throughout the current month and generally ranges from approximately seven to 10 days . All unearned revenue at the end of a reporting period is recognized in the next fiscal period. Revenue is recognized net of sales taxes and returns and include amounts billed to customers related to shipping and handling costs. The returns allowance is based on historical return patterns. Provisions for estimated returns are established and the expected costs continue to be recognized as reductions to revenue when the products are sold. Shipping and handling costs are accounted for as fulfillment costs and are included in costs applicable to revenue. Refer to Note 7 . “Revenue from Contracts With Customers” for further details of our revenues. Costs Applicable To Revenue Costs applicable to revenue consist primarily of cost of products sold and costs of administering services and plans. Costs of products sold include (i) costs to procure non-prescription eyewear, contacts and accessories which we purchase and sell in their finished form, (ii) costs to manufacture finished prescription eyeglasses, including direct materials, labor and overhead and (iii) remake costs, warehousing and distribution expenses and internal transfer costs. Costs of services and plans include costs associated with warranty programs, eyecare club memberships, HMO memberships, eyecare practitioner and eye exam technician payroll, taxes and benefits and optometric and other service costs. Depreciation and amortization are excluded from costs applicable to revenue and are presented separately on the accompanying consolidated statements of operations. As a component of the Company's procurement program, the Company frequently enters into contracts with its vendors that provide for payments of rebates or other allowances. These vendor payments are reflected in the carrying value of the inventory when earned or as progress is made toward earning the rebate or allowance and as a component of cost of products as the inventory is sold. Selling, General and Administrative SG&A includes store associate payroll, taxes and benefits, occupancy and other store expenses, advertising and promotion, field services, and corporate support. Advertising and promotion costs, including online marketing arrangements, newspaper, direct mail, television and radio, are recorded in SG&A and expensed at the time the advertising first occurs. Production costs of future media advertising and related promotional campaigns are deferred until the advertising events occur. Non-capital expenditures associated with opening new stores, including rent, marketing expenses, travel and relocation costs, and training costs, are recorded in SG&A as incurred. Advertising expenses were $113.3 million , $107.5 million and $93.2 million for fiscal years 2019 , 2018 and 2017 , respectively. Leases We lease our stores, laboratories, distribution centers, and corporate offices. These leases generally have noncancelable lease terms of between five and 10 years , with an option to renew for additional terms of one to 10 years or more. The lease term includes renewal option periods when the renewal is deemed reasonably certain after considering the value of the leasehold improvements at the end of the noncancelable lease period. Most leases for our stores provide for a minimum rent and typically include escalating rent over time with the exception of Military for which lease payments are variable and based on a percentage of sales. For Vista Optical locations in Fred Meyer stores, we pay fixed rent plus a percentage of sales after certain minimum thresholds are achieved. The Company’s leases generally require us to pay insurance, real estate taxes and common area maintenance expenses, substantially all of which are variable and not included in the measurement of the lease liability. Our lease arrangements include tenant improvement allowances (TIAs), which are contractual amounts received or receivable from a lessor for improvements made to leased properties by the Company. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. The Company does not consider its management & services agreement with its legacy partner to contain a lease arrangement. The lease liability is measured at the present value of future lease payments over the lease term less TIAs receivable, and the ROU asset is measured at the lease liability amount, adjusted for prepaid lease payments, TIAs received and the lessee’s initial direct costs. As the rate implicit in the Company’s leases is not easily determinable, the Company’s incremental borrowing rate is used in calculating the present value of the sum of the lease payments. Factors incorporated into the calculation of the lease incremental borrowing rate include lease term, borrowing rates on the Company’s long-term debt, fixed rates on the Company’s interest rate swaps, LIBOR margins for issuers of similar credit rating to NVI and effect of collateralization. For finance leases, a lease ROU asset is recorded as property and equipment and corresponding amounts are recorded as finance lease debt obligations at an amount equal to the lesser of the net present value of minimum lease payments to be made over the lease term or the fair value of the property for leases in existence as of fiscal year end 2018 and at the net present value of the minimum lease payments to be made over the lease term for new finance leases entered into subsequent to fiscal year end 2018 . Stock-Based Compensation We measure stock-based compensation cost, which consists of grants of stock options, restricted stock units and restricted shares to employees, consultants and non-employee directors, based on the estimated grant date fair value of the awards. We recognize compensation expense for service-based vesting awards over the requisite service period using a straight-line recognition method. For awards that are subject to performance conditions, we recognize compensation expense once achievement of the conditions is considered to be probable. We account for forfeitures as they occur. See Note 5 . “Stock Incentive Plan” for further details related to our stock-based compensation plans. Asset Impairment We evaluate impairment of long-lived tangible and right of use (“ROU”) store assets at the store level, which is the lowest level at which independent cash flows can be identified, when events or conditions indicate the carrying value of such assets may not be recoverable. In making this evaluation, we may consider multiple factors including financial performance of the stores, regional and local business climates, future plans for the store operations and other qualitative factors. If the store's projected undiscounted net cash flows expected to be generated by the related assets over the life of the primary asset within the asset group (generally leasehold improvements) are less than the carrying value of the subject assets, we determine an estimate of the fair value of the asset group using an income approach based on discounted cash flows, which require estimates and assumptions related to forecasted store revenue growth rates and store profitability. The cash flows used in estimating fair value were discounted using a market rate of approximately 8% . If the fair value of the asset group is less than its carrying value, the loss is allocated to the long-lived assets of the group on a pro rata basis using the relative carrying amounts of those assets, except that the loss allocated to an individual long lived asset of the group shall not reduce the carrying amount of that asset below its fair value. A significant decrease in the estimated cash flows would lead to a lower fair value measurement, as would a significant increase in the discount rate. These non-recurring fair value measurements are classified as Level 3 measurements in the fair value hierarchy. As a result of our tests for impairment of our long-lived tangible store assets classified as held and used, an impairment of $8.9 million , $2.5 million and $1.6 million was recorded for fiscal years 2019 , 2018 and 2017 , respectively. These impairment charges were primarily driven by lower than projected customer sales volume in certain stores. The estimated remaining fair value of the impaired assets was $16.6 million during fiscal year 2019 and $0.1 million remaining fair value of the assets that were impaired during fiscal year 2018 . Substantially all of the remaining fair value of the impaired store assets in fiscal year 2019 represent the fair value of ROU assets recorded upon adoption of ASU 2016-02, Leases ; the remaining fair value estimated in fiscal year 2019 includes amounts estimated at various dates during fiscal year 2019. We assess non-store tangible assets, including capitalize |
Details of Certain Balance Shee
Details of Certain Balance Sheet Accounts | 12 Months Ended |
Dec. 28, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Details of Certain Balance Sheet Accounts | In thousands As of As of Property and equipment, net: Land and building $ 3,632 $ 3,632 Equipment 188,593 160,958 Information technology hardware and software 115,283 101,809 Furniture and fixtures 55,146 48,992 Leasehold improvements 213,124 186,499 Construction in progress 26,517 40,697 Right of use assets under finance leases 36,437 25,446 638,732 568,033 Less: Accumulated depreciation 271,965 212,916 $ 366,767 $ 355,117 In thousands As of As of Other payables and accrued expenses: Employee compensation and benefits $ 28,347 $ 20,529 Self-insurance liabilities 8,403 8,117 Capital expenditures 6,782 14,078 Advertising 2,919 2,076 Reserves for customer returns and remakes 7,158 4,645 Legacy management & services agreement 4,461 5,383 Fair value of derivative liabilities 6,382 3,130 Supplies and other store support expenses 2,926 4,929 Litigation settlements 3,840 3,938 Other 11,611 14,179 $ 82,829 $ 81,004 In thousands As of As of Other non-current liabilities: Fair value of derivative liabilities $ 1,603 $ 3,505 Tenant improvements (1) — 30,851 Deferred rental expenses (1) — 11,926 Self-insurance liabilities 7,283 5,114 Other 4,845 2,568 $ 13,731 $ 53,964 (1) Tenant improvements and deferred rental expenses are used to measure ROU assets on the balance sheet under new lease accounting guidance effective in fiscal year 2019. See Note 8. “Leases” for further details. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 28, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets During fiscal year 2018 , as a result of our annual goodwill impairment test, we fully impaired the remaining carrying value of goodwill at Fred Meyer and Military of $11.4 million and $3.7 million , respectively. Management lowered the revenue growth rate assumptions at Fred Meyer and Military resulting in the fair values at these reporting units to be lower than their carrying values. The lower revenue growth rate assumptions at Fred Meyer and Military were primarily the result of recent sales underperformance resulting from decreases in projected customer transaction volume. The gross carrying amount and accumulated impairment of the Company’s goodwill balances for 2019 and 2018 are as follows: As of As of In thousands Gross Carrying Accumulated Gross Carrying Accumulated Owned & Host Segment $ 736,901 $ (19,357 ) $ 736,901 $ (19,357 ) Legacy Segment 60,069 — 60,069 — Corporate/Other 8,107 (8,107 ) 8,107 (8,107 ) $ 805,077 $ (27,464 ) $ 805,077 $ (27,464 ) Besides the goodwill impairments noted above, no other intangible asset impairment was identified during fiscal years 2019 , 2018 and 2017 . Indefinite-lived intangible assets by major asset class are as follows: In thousands As of As of Trademarks and trade names: America's Best $ 200,547 $ 200,547 Eyeglass World 40,000 40,000 $ 240,547 $ 240,547 We intend to maintain our trademarks; renewals will take place as needed. Finite-lived, amortizing intangible assets by major asset class are as follows: As of As of In thousands Gross Carrying Accumulated Remaining Life Gross Carrying Accumulated Remaining Life Contracts and relationships: Legacy $ 65,000 $ 34,247 5 $ 65,000 $ 28,359 6 Fred Meyer 35,000 8,820 17 35,000 7,303 18 Customer database 4,400 4,400 — 4,400 4,224 — Other 746 739 — 738 720 — $ 105,146 $ 48,206 $ 105,138 $ 40,606 Aggregate amortization expense is included in depreciation and amortization in the accompanying consolidated statements of operations. Aggregate future estimated amortization expense is shown in the following table: Fiscal Year In thousands 2020 $ 7,550 2021 7,408 2022 7,406 2023 7,405 2024 7,405 Thereafter 19,766 $ 56,940 |
Long-term Debt
Long-term Debt | 12 Months Ended |
Dec. 28, 2019 | |
Debt Disclosure [Abstract] | |
Long-term Debt | Long-term debt consists of the following: In thousands As of As of First Lien - Term Loan B $ — $ 364,300 First Lien - Term Loan A — 200,000 Term Loan, due July 18, 2024 392,375 — Revolving Credit Facility, due July 18, 2024 148,000 — Total term loans before unamortized discount 540,375 564,300 Unamortized discount (3,979 ) (10,673 ) Total term loans 536,396 553,627 Less current maturities (10,500 ) (5,000 ) Term loans - non-current portion 525,896 548,627 Finance lease obligations 33,296 24,485 Less current maturities (3,259 ) (2,567 ) Long-term debt, less current portion and unamortized debt discount $ 555,933 $ 570,545 The dividend discussed in Note 9 . “Related Party Transactions” was funded with $175.0 million in borrowed funds under the Company’s first lien credit agreement, which were then repaid with IPO proceeds, as discussed in Note 1 . "Business and Significant Accounting Policies". Scheduled annual maturities of debt are as follows: Fiscal Year In thousands 2020 $ 10,500 2021 10,500 2022 13,125 2023 21,000 2024 485,250 $ 540,375 Term Loan - Joinder and Amendment and Restatement Agreement On July 18, 2019 (the “Closing Date”), the credit agreement, dated as of October 9, 2018 (the “Existing Credit Agreement”), by and among Nautilus Acquisition Holdings, Inc. (“Holdings”), a Delaware corporation and a wholly-owned subsidiary of the Company, NVI, Goldman Sachs Bank USA, as administrative agent and collateral agent, and the lenders from time to time party thereto and the other parties thereto, was amended and restated pursuant to that certain Joinder and Amendment and Restatement Agreement, dated as of July 18, 2019 (the “Restatement Agreement”) by and among Holdings, NVI, as borrower, certain subsidiaries of NVI, as guarantors, Goldman Sachs Bank USA, as former administrative agent and collateral agent, Bank of America, N.A., as new administrative agent and collateral agent, and the lenders from time to time party thereto (the Existing Credit Agreement, as amended and restated by the Restatement Agreement, the “Credit Agreement”). The Existing Credit Agreement was amended and restated to, among other things, (i) establish new first lien term loans in an aggregate principal amount of $420.0 million (the “Term Loan”) to repay all principal, interest fees and other amounts outstanding under the Existing Credit Agreement immediately prior to the Closing Date, (ii) establish a new revolving credit facility in an aggregate principal amount of $300.0 million (the “Revolving Credit Facility”), of which $148.0 million was drawn as of closing and (iii) replace Goldman Sachs Bank USA with Bank of America, N.A. as administrative agent and collateral agent under the Credit Agreement and related documentation. In connection with the principal repayments of our existing debt, the Company wrote off associated deferred debt issuance costs of $6.0 million and associated unamortized debt discount of $3.8 million , in the third quarter of 2019 . Pursuant to the Restatement Agreement, the initial new Applicable Margins, as defined in the Credit Agreement, are (i) 1.50% for the new first lien term loans that are London Inter-bank Offered Rate (“LIBOR”) Loans and (ii) 0.50% for the new first lien term loans that are Alternative Base Rate (“ABR”) Loans. The Restatement Agreement further provides that following the Closing Date, the above Applicable Margins for the new first lien term loans will be based on NVI’s consolidated first lien leverage ratio as follows: (a) if NVI’s consolidated first lien leverage ratio is greater than 3.75 to 1.00 , the Applicable Margin will be 2.00% for LIBOR Loans and 1.00% for ABR Loans, (b) if NVI’s consolidated first lien leverage ratio is less than or equal to 3.75 to 1.00 , but greater than 2.75 to 1.00 , the Applicable Margin will be 1.75% for LIBOR Loans and 0.75% for ABR Loans, (c) if NVI’s consolidated first lien leverage ratio is less than or equal to 2.75 to 1.00 but greater than 1.75 to 1.00 , the Applicable Margin will be 1.50% for LIBOR Loans and 0.50% for ABR Loans, (d) if NVI’s consolidated first lien leverage ratio is less than or equal to 1.75 to 1.00 but greater than 0.75 to 1.00 , the Applicable Margin will be 1.25% for LIBOR Loans and 0.25% for ABR Loans and (e) if NVI’s consolidated first lien leverage ratio is less than or equal to 0.75 to 1.00 , the Applicable Margin will be 1.00% for LIBOR Loans and 0.00% for ABR Loans. The new first lien term loans will amortize in quarterly installments equal to 2.50% per annum in the first three years of the loan and 5.00% per annum thereafter. In addition, pursuant to the Restatement Agreement, solely with respect to the Term Loan, commencing on the fiscal quarter ending on December 28, 2019 , Holdings 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 Holdings to be greater than 4.75 to 1.00 for the first two years, and 4.50 to 1.00 thereafter, subject to certain step-ups after the consummation of a Material Acquisition, as defined in the Credit Agreement, or (ii) the Consolidated Interest Coverage Ratio of Holdings, as defined in the Credit Agreement, as of the last day of any fiscal quarter of Holdings to be less than 3.00 to 1.00 . We were in compliance with all covenants related to the Credit Agreement as of December 28, 2019. The Credit Agreement also contains covenants that, among other things, limit NVI’s ability to incur additional debt, create liens against assets, make acquisitions, pay dividends or distributions on its stock, merge or consolidate with another entity and transfer or sell assets. |
Stock Incentive Plans
Stock Incentive Plans | 12 Months Ended |
Dec. 28, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Stock Incentive Plans | The Company has provided equity-based compensation awards to its employees under three plans. The Vision Holding Corp. 2013 Amended and Restated Stock Incentive Plans provided for the issuance of stock options to directors, certain employees and consultants of Vision Holding Corp., its subsidiaries and affiliates. In 2014, our Board of Directors and stockholders of the Company approved the 2014 Stock Incentive Plan for Key Employees of National Vision Holdings, Inc. (formerly known as Nautilus Parent, Inc.) and its subsidiaries (the “2014 Stock Incentive Plan”). There were 10,988,827 stock options authorized for issuance pursuant to the 2014 Stock Incentive Plan. In connection with the IPO, on October 23, 2017, the Company’s Board of Directors adopted, and its stockholders approved, the National Vision Holdings, Inc. 2017 Omnibus Incentive Plan (the “2017 Omnibus Incentive Plan”). The total number of shares of common stock that may be issued under the plan is 4,000,000 . The plan authorizes the grant of stock options, stock appreciation rights, restricted stock awards (“RSAs”), restricted stock units (“RSUs”), performance stock units (“PSUs”), other equity-based awards and other cash-based awards to our employees, directors, officers, consultants and advisers. All awards under these plans have a contractual life of 10 years . The Company also provides associates the opportunity to purchase Company common shares through the Associate Stock Purchase Plan (the “ASPP”), which the Company’s Board of Directors adopted and its stockholders approved on June 6, 2018. The ASPP provides that up to 850,000 shares of common stock, at par value of $0.01 per share, may be offered and issued under the ASPP. The following table summarizes stock compensation expense under the Company’s plans, which is included in SG&A in the accompanying statements of operations: In thousands Fiscal Year 2019 Fiscal Year 2018 Fiscal Year 2017 Stock options $ 8,562 $ 19,397 $ 4,835 RSUs and PSUs 3,655 1,386 290 RSAs 334 108 27 Associate stock purchase plan 119 48 — Total stock based compensation expense $ 12,670 $ 20,939 $ 5,152 Income tax benefit (3,237 ) (5,367 ) (1,320 ) After-tax share based compensation expense $ 9,433 $ 15,572 $ 3,832 Stock options RSUs and PSUs RSAs Unrecognized compensation cost ( in thousands ) $ 4,158 $ 12,861 $ 354 Expected remaining weighted-average period of expense recognition (in years) 2.15 2.99 0.88 Service-based options The following table summarizes service-based stock option activity, including service-based options under the Vision Holding Corp. Amended and Restated 2013 Equity Incentive Plan, the 2014 Stock Incentive Plan, and the 2017 Omnibus Incentive Plan. Amounts also reflect the effects of modifications to exercise prices resulting from the recapitalization dividend discussed in Note 9 . “Related Party Transactions”. Number of Options Outstanding Weighted Average Exercise Price ($) Weighted Average Remaining Contractual Life (Years) Aggregate Intrinsic Value (In Thousands) ($) Outstanding options at December 29, 2018 2,583,380 8.48 Granted 300,201 34.18 Exercised (939,407 ) 6.45 Forfeited (38,016 ) 16.21 Outstanding options at December 28, 2019 1,906,158 13.37 6.14 38,132 Vested and exercisable at December 28, 2019 1,173,256 7.90 4.94 29,576 There were no grants of service-based options during fiscal year 2018 . The weighted average grant date fair value of service-based options granted during fiscal years 2019 and 2017 was $13.67 and $9.04 , respectively. The fair value of service-based options vested during fiscal years 2019 , 2018 and 2017 was $5.7 million , $5.9 million , and $4.6 million respectively. The aggregate intrinsic value of service-based options exercised during fiscal years 2019 , 2018 and 2017 was $21.4 million , $45.7 million , and $1.5 million , respectively. The fair value of service-based options was estimated using the Black-Scholes-Merton option pricing model. The following is a summary of the assumptions used in this model for service-based options: 2019 2017 Expected volatility 34.5% to 37.1% 60.4 % Expected term range (in years) 5.75 to 6.50 6.50 Expected risk-free interest rate 1.68% to 2.94% 1.60% to 2.00% The expected term was based on the mid-point between the weighted average time to vesting and the contractual time to maturity. Since all options granted in the 2014 Stock Incentive Plan were issued prior to the IPO, expected volatility was based on the volatility of comparable publicly traded companies. The volatility assumption subsequent to the IPO was calculated using daily closing prices of the stock. The risk free interest rate was based on the U.S. Treasury yield curve. The dividend yield was based on our expectation of not paying dividends on the common stock of NVHI for the foreseeable future. Performance-based options The following table summarizes performance-based stock option activity: Number of Options Outstanding Weighted Average Exercise Price ($) Weighted Average Remaining Contractual Life (Years) Aggregate Intrinsic Value (In Thousands) ($) Outstanding options at December 29, 2018 4,143,781 6.23 Exercised (1,281,653 ) 6.10 Forfeited (1,258,280 ) 5.87 Outstanding options at December 28, 2019 1,603,848 6.60 4.89 42,499 Vested and exercisable at December 28, 2019 1,473,414 5.79 4.65 40,235 There were no grants of performance-based options during fiscal years 2019 and 2018 . The weighted average grant date fair value of performance-based options granted during fiscal year 2017 was $3.68 . The fair value of performance-based options vested during fiscal years 2019 , 2018 and 2017 was $4.4 million , $16.1 million and $0.4 million , respectively. The aggregate intrinsic value of performance-based options exercised during fiscal year 2019 and 2018 was $29.9 million and $70.2 million , respectively. No performance-based options were exercised during fiscal year 2017 . The fair value of performance-based options was estimated using a Monte Carlo simulation. The following is a summary of the assumptions used in this model for performance options granted in 2017 : 2017 Expected volatility range 48.2% to 54.0% Expected term range (in years) 2.37 to 2.78 Expected risk-free interest rate 1.38% to 1.51% The following summarizes RSU, PSU and RSA awards activity: Service-based restricted stock unit (RSU) awards Weighted average grant date fair value ($) Performance-based restricted stock unit (PSU) awards Weighted average grant date fair value ($) Restricted stock (RSA) awards Weighted average grant date fair value ($) Outstanding at December 29, 2018 98,076 22.00 — — 11,431 32.08 Granted 373,082 29.56 116,046 34.50 13,712 29.18 Vested (82,640 ) 26.36 — — (4,515 ) 29.52 Forfeited (12,373 ) 28.45 (3,032 ) 35.19 — — Outstanding at December 28, 2019 376,145 28.45 113,014 34.49 20,628 30.71 Restricted stock units (RSUs) During fiscal year 2017 , we granted an aggregate of 182,138 RSUs, net of forfeitures, at a weighted average grant date fair value of $22.00 , to certain employees. During fiscal year 2019 , we granted an additional 373,082 shares of RSUs. RSUs include 10,977 RSUs that vest in two equal installments on the first and second anniversaries of the grant date, 123,674 RSUs that vest in three equal installments on the first, second and third anniversaries of the grant date, and 241,494 RSUs that vest in three installments on the second, third and fourth anniversaries of the grant date. The RSUs outstanding as of December 28, 2019 have $12.5 million intrinsic value and remaining weighted average requisite service period of 3.17 years . Performance stock units (PSUs) During fiscal year 2019 , we granted an aggregate of 116,046 PSUs. The PSUs granted in fiscal 2019 are settled after the end of the performance period (i.e., cliff vesting), which begins on the first day of our 2019 fiscal year and ends on the last day of our 2021 fiscal year, and are based on the Company’s achievement of certain performance targets. The performance stock units outstanding as of December 28, 2019 have $3.7 million intrinsic value and remaining weighted average requisite service period of 2.21 years . Restricted stock awards (RSAs) During fiscal years 2018 and 2019, we granted an aggregate of 11,431 and 13,712 RSAs, respectively, to certain directors. These RSAs outstanding include 6,916 awards that vest proportionally over three years and 13,712 awards that vest one year from grant date. As of fiscal year end 2019 , the intrinsic value of the awards was $0.7 million , the remaining requisite service period was 0.71 years . Associate Stock Purchase Plan (ASPP) Under the ASPP, eligible employees receive a 10% discount from the market trading value of common stock of the Company at the time of purchase. Participants may contribute to the ASPP, not to exceed $25,000 under the ASPP in any calendar year. As of December 28, 2019 , the amount of shares held by eligible participants through the ASPP was not material. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 28, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | The income tax provision (benefit) consists of: In thousands Fiscal Year Fiscal Year Fiscal Year Current income tax: Federal $ 443 $ 174 $ 5 State 864 381 1,082 Deferred income tax: Federal (2,972 ) (15,687 ) (40,136 ) State (644 ) (3,653 ) 139 Income tax provision (benefit) $ (2,309 ) $ (18,785 ) $ (38,910 ) Our income tax provision (benefit) differs from the amounts computed by multiplying earnings before income taxes by the statutory federal income tax rate as shown in the following table: In thousands Fiscal Year Fiscal Year Fiscal Year Federal income tax provision at statutory rate $ 6,403 $ 1,022 $ 1,480 State income tax provision, net of federal income tax 1,387 226 165 Increase (decrease) in deferred tax asset valuation allowance (386 ) 318 769 Goodwill impairment — 3,879 — Benefit of tax legislation — — (42,089 ) Tax benefit of equity-based compensation deductions (10,089 ) (25,544 ) — Other, net 376 1,314 765 Net income tax provision (benefit) $ (2,309 ) $ (18,785 ) $ (38,910 ) Effective income tax rate (7.6 )% (385.9 )% (920.3 )% The Tax Legislation signed into law on December 22, 2017 makes broad and complex changes to the U.S. tax code including, but not limited to: (1) reducing the U.S. federal rate from 35% to 21% , effective January 1, 2018 ; (2) eliminating the corporate alternative minimum tax (“AMT”) and changing how the credits can be realized; (3) creating new limitations on deductions for interest expense; (4) changing rules related to limitations of net operating loss (“NOL”) carryforwards, and (5) enhancing and extending through 2026 the option to claim accelerated depreciation deductions on qualified property. The effects of new legislation are required to be recognized upon enactment. Accordingly, recognition of the tax effects of the legislation is required in the annual period that includes December 22, 2017 . The Company recorded a tax benefit of $42.1 million due to a re-measurement of deferred tax assets and liabilities in fiscal year 2017 . 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 2017 Tax Legislation for which measurement could be reasonably estimated as of fiscal year end 2018 . As of fiscal year end 2018 , the Company recorded adjustments to the provisional estimates related to depreciation expense. The adjustments to the provisional estimates of December 30, 2017 did not materially impact the effective tax rate of the Company during fiscal year 2018 . The sources of the differences between the financial accounting and tax bases of our assets and liabilities that give rise to the deferred tax assets and deferred tax liabilities and the tax effects of each are as follows: In thousands As of As of Deferred tax assets: NOL carry-forwards $ 12,006 $ 13,614 Deferred interest expense carry-forwards 3,733 4,655 AMT payment and employment credits 4,155 4,679 Deferred revenue 5,145 4,984 Accrued expenses and reserves 12,542 11,370 Loss on equity and other investments 1,960 1,493 Stock option compensation 5,505 5,893 Unrealized losses on hedging instruments 2,039 1,700 Other 942 1,193 Subtotal 48,027 49,581 Valuation allowances 3,705 1,614 Total net deferred tax assets 44,322 47,967 Deferred tax liabilities: Depreciation of property and equipment (27,953 ) (32,631 ) Amortization of intangible assets (74,529 ) (75,422 ) Other (1,986 ) (1,854 ) Total deferred tax liabilities (104,468 ) (109,907 ) Net deferred tax liabilities $ (60,146 ) $ (61,940 ) As of fiscal year end 2019 , we had available U.S. federal NOL carry-forwards aggregating to $54.1 million that can be utilized to reduce future federal income taxes. The Company has $43.3 million of carry-forward losses that do not expire and $10.8 million of carry-forward losses expiring at the end of fiscal year 2037 , respectively. In addition, we have NOL carry-forwards in varying amounts and with varying expiration dates in various states in which we operate. We believe it is more-likely-than-not that we will realize a tax benefit for these NOL’s in the future except for $6.1 million of NOL carry-forwards on our professional corporations where we recognized a full valuation allowance as of fiscal year end 2019. As of fiscal year end 2019 , we also have non-expiring federal and state AMT carry-forward credits and employment credits net of valuation allowance, totaling $3.8 million available to offset certain future taxes. We have a $1.7 million deferred income tax asset on losses associated with our equity method non-consolidated investee and a $0.2 million deferred income tax asset for capital losses associated with the impairment of an investment recorded during fiscal year 2018 . We do not expect to generate significant capital gains from these investments, or other sources, in the near future. Therefore, we believe it is more-likely-than-not that we will not realize a tax benefit for the majority of these deferred income tax assets, and accordingly we have established a full valuation allowance for the amount deemed unrealizable. As a result of our utilization of NOL carry-forwards to reduce or eliminate subsequent years’ tax obligations, our federal and a substantial number of our state income tax returns for fiscal years 2001 through 2019 remain open for examination by the tax authorities. The Company evaluates uncertain tax positions using a “more-likely-than-not” threshold, and recognizes the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by tax authorities. The Company evaluates uncertain tax positions on a quarterly basis and considers various factors, including, but not limited to, changes in tax law, the measurement of tax positions taken or expected to be taken in tax returns, the effective settlement of matters subject to audit, information obtained during in-process audit activities and changes in facts or circumstances related to a tax position. |
Revenue From Contracts With Cus
Revenue From Contracts With Customers | 12 Months Ended |
Dec. 28, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue From Contracts With Customers | The majority of our annual revenues are recognized either at the point of sale or upon delivery and customer acceptance, paid for at the time of sale in cash, credit card, or on account with managed care payors having terms generally between 14 and 120 days, with most paying within 90 days. For sales of in-store non-prescription eyewear and related accessories, and paid eye exams, we recognize revenue at the point of sale. Our point in time revenues include 1) retail sales of prescription and non-prescription eyewear, contact lenses and related accessories to retail customers (including those covered by managed care), 2) eye exams and 3) wholesale sales of inventory in which our customer is another retail entity. Revenues recognized over time primarily include product protection plans, eye care club memberships and management fees earned from our legacy partner. Revenues Recognized at a Point in Time Owned & Host Within our Owned & Host segment, product revenues include sales of prescription and non-prescription eyewear, contact lenses and related accessories to retail customers. For sales of in-store non-prescription eyewear and related accessories, we recognize revenue at the point of sale. For sales of prescription eyewear, we recognize revenue when the performance obligations identified under the terms of contracts with our customers are satisfied, which generally occurs, for products, when those products have been delivered and accepted by our customers. Within our Owned & Host segment services and plans revenues, eye exam services sold on a stand-alone basis are also recognized at the point of sale which occurs immediately after the exam is performed. Legacy Within our Legacy segment, product revenues include sales of prescription and non-prescription eyewear, contact lenses and related accessories to retail customers in transactions where the retail customer uses a managed-care payor; and wholesale sales of the same inventory types to the legacy partner. The revenue recognition for the retail sales are identical to similar sales in the Owned & Host segment. Wholesale sales of inventory to the legacy partner are recognized at the point in time when control of the inventory has been transferred in accordance with the contractual terms and conditions of sale. Since the wholesale sales of inventory to the legacy partner are a separate performance obligation in our management & services agreement with the legacy partner, we considered the appropriate allocation of consideration to wholesale inventory sales. We concluded that the difference between the stand-alone-selling price of the wholesale inventory and the contractual prices was not material. Within our Legacy segment services and plans revenues, eye exam services sold to retail customers are recognized at the point of sale which occurs immediately after the exam is performed. Corporate/Other Revenues from our non-reportable Corporate/Other segment are attributable to wholly owned subsidiaries AC Lens and FirstSight. AC Lens sells contact lenses and optical accessory products to retail customers through e-commerce. AC Lens also distributes contact lenses at its cost to Walmart and Sam’s Club under fee for services arrangements. This revenue is recorded on a gross basis as AC Lens is the principal in the arrangement since AC Lens controls the products in those transactions before the products are transferred to the customer. FirstSight issues individual vision 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. We offer three- or five-year eyecare club memberships in our Owned & Host segment to our contact lens customers. For these programs we apply the portfolio approach of recognizing revenues of contracts with similar characteristics and use estimates and assumptions that reflect the size and composition of the portfolio of contracts. We selected the portfolio approach because our historical club membership data demonstrate that our club customers behave similarly, such that the difference between the portfolio approach and calculating revenue of each individual contract is not material. We recognize revenue across the contract portfolio based on the value delivered to the customers relative to the remaining services promised under the programs. We determine the value delivered based on the expected timing and amount of customer usage of benefits over the terms of the contracts. The unamortized portion of amounts we collect in advance for these services and plans are reported as deferred revenue (current and non-current portions) in the accompanying consolidated balance sheets. Legacy Sales of services and plans in our Legacy segment include fees earned for managing the operations of our legacy partner. These fees are recorded on a net basis and are based primarily on sales of products and product protection plans to non-managed care customers. We determined that under the terms of the arrangement our legacy partner controls the products and services in the transaction with the retail customer and therefore we act as the agent in those transactions. We recognize this service revenue using the “right to invoice” method because our right to payment corresponds directly with the value of the management services provided to our legacy partner. The following disaggregation of revenues depicts our revenues based on the timing of revenue recognition: In thousands Fiscal Year Fiscal Year Revenues recognized at a point in time $ 1,578,379 $ 1,397,801 Revenues recognized over time 145,952 139,053 Total net revenue $ 1,724,331 $ 1,536,854 Refer to Note 16 . "Segment Reporting" for the Company’s disaggregation of net revenue by reportable segment and product type. As the reportable segments are aligned by similar economic factors, trends and customers, the reportable segment disaggregation view best depicts how the nature, amount and uncertainty of revenue and cash flows are affected by economic factors. The following depicts a roll-forward of deferred revenue: Fiscal Year 2019 In thousands Product Protection Plans Eye Care Clubs HMO Memberships Total Beginning of the year $ 28,775 43,488 $ 15 $ 72,278 Sold 63,105 52,438 — 115,543 Revenue recognized (60,969 ) (49,440 ) (12 ) (110,421 ) End of year $ 30,911 $ 46,486 $ 3 $ 77,400 Current $ 30,547 $ 25,320 $ 3 $ 55,870 Non-current 364 21,166 — 21,530 $ 30,911 $ 46,486 $ 3 $ 77,400 Fiscal Year 2018 In thousands Product Protection Plans Eye Care HMO Memberships Total Beginning of the year $ 26,731 $ 67,430 $ 54 $ 94,215 Adjustment for adoption of ASU 2014-09 — (25,776 ) — (25,776 ) Beginning of the year - As Adjusted 26,731 41,654 54 68,439 Sold 58,860 47,923 1,384 108,167 Revenue recognized (56,816 ) (46,089 ) (1,423 ) (104,328 ) End of year $ 28,775 $ 43,488 $ 15 $ 72,278 Current $ 28,403 $ 23,726 $ 15 $ 52,144 Non-current 372 19,762 — 20,134 $ 28,775 $ 43,488 $ 15 $ 72,278 Deferred revenue recorded as of fiscal year end 2019 is expected to be reflected in future operating results as follows: Fiscal Year In thousands 2020 $ 55,870 2021 16,125 2022 5,185 2023 170 2024 50 $ 77,400 |
Leases
Leases | 12 Months Ended |
Dec. 28, 2019 | |
Leases [Abstract] | |
Leases | Leases We lease our stores, laboratories, distribution centers, and corporate offices. These leases generally have noncancelable lease terms of between five and 10 years , with an option to renew for additional terms of one to 10 years or more. The lease term includes renewal option periods when the renewal is deemed reasonably certain after considering the value of the leasehold improvements at the end of the noncancelable lease period. Most leases for our stores provide for a minimum rent and typically include escalating rent over time with the exception of Military for which lease payments are variable and based on a percentage of sales. For Vista Optical locations in Fred Meyer stores, we pay fixed rent plus a percentage of sales after certain minimum thresholds are achieved. The Company’s leases generally require us to pay insurance, real estate taxes and common area maintenance expenses, substantially all of which are variable and not included in the measurement of the lease liability. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. The Company does not consider its management & services agreement with its legacy partner to contain a lease arrangement. Our lease arrangements include TIAs, which are contractual amounts received from a lessor for improvements made to leased properties by the Company. For operating leases, TIAs are treated as a reduction of the lease payments used to measure the ROU assets in the accompanying consolidated balance sheet as of fiscal year 2019 (non-current liabilities as of fiscal year 2018 ), and are amortized as a reduction in rental expense over the life of the respective leases. For finance leases, a lease ROU asset is recorded as property and equipment and corresponding amounts are recorded as finance lease debt obligations at an amount equal to the lesser of the net present value of minimum lease payments to be made over the lease term or the fair value of the property for leases in existence as of fiscal year end 2018 and at the net present value of the minimum lease payments to be made over the lease term for new finance leases entered into subsequent to fiscal year end 2018 . We rent or sublease certain parts of our stores to third parties. Our sublease portfolio consists mainly of operating leases with our ophthalmologists and optometrists within our stores. In thousands As of Type Classification ASSETS Finance Property and equipment, net (a) $ 28,128 Operating Right of use assets (b) 348,090 Total leased assets $ 376,218 LIABILITIES Current Liabilities: Finance Current maturities of long-term debt and finance lease obligations $ 3,259 Operating Current operating lease obligations (c) 51,937 Other non-current liabilities: Finance Long-term debt and finance lease obligations, less current portion and debt discount 30,037 Operating Non-current operating lease obligations 331,769 Total lease liabilities $ 417,002 As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the net present value of minimum lease payments. We used the incremental borrowing rate on December 30, 2018 for operating leases that commenced prior to that date. _________ (a) Finance lease assets are recorded net of accumulated amortization of $8.3 million as of December 28, 2019 . (b) TIA of $35.2 million and deferred rent of $15.0 million are treated as reductions of lease payments used to measure ROU assets as of December 28, 2019 . (c) Current operating lease liabilities are measured net of TIA receivables of $5.9 million as of December 28, 2019 . In thousands Fiscal Year Operating lease cost Fixed lease cost (a) $ 73,971 Variable lease cost (b) 26,466 Sublease income (c) (2,930 ) Finance lease cost Amortization of finance lease assets 4,418 Interest on finance lease liabilities 3,573 Net lease cost $ 105,498 (a) Includes short-term leases, which are immaterial. (b) Includes costs for insurance, real estate taxes and common area maintenance expenses, which are variable as well as lease costs above minimum thresholds for Fred Meyer stores and lease costs for Military stores. (c) Income from sub-leasing of stores includes rental income from operating lease properties to ophthalmologists and optometrists who are independent contractors. Lease Term and Discount Rate Fiscal Year Weighted average remaining lease term (months) Operating leases 82 Finance leases 88 Weighted average discount rate (a) Operating leases 4.6 % Finance leases (b) 13.1 % (a) The discount rate used to determine the lease assets and lease liabilities was derived upon considering (i) incremental borrowing rates on our long-term debt; (ii) fixed rates we pay on our interest rate swaps; (iii) LIBOR margins for issuers of similar credit rating; and (iv) effect of collateralization. As a majority of our leases are five-year and 10-year leases, we determined a lease discount rate for such tenors and determined this discount rate is reasonable for leases that were entered into during the period. (b) The discount rate on finance leases is higher than operating leases because the present value of minimum lease payments was higher than the fair value of leased properties for certain leases entered into prior to adoption of ASC 842. The discount rate differential for those leases is not material to our results of operations. In thousands Fiscal Year Other Information Cash paid for amounts included in the measurement of lease liabilities Operating cash outflows - operating leases $ 75,330 The following table summarizes the maturity of our lease liabilities as of December 28, 2019 : In thousands Operating Leases (a) Finance Leases (b) Fiscal Year 2020 $ 67,240 $ 6,742 2021 74,451 7,127 2022 67,115 7,062 2023 59,981 6,088 2024 53,036 4,520 Thereafter 130,762 15,561 Total lease liabilities 452,585 47,100 Less: Interest 68,879 13,804 Present value of lease liabilities (c) $ 383,706 $ 33,296 _________ (a) Operating lease payments include $72.2 million related to options to extend lease terms that are reasonably certain of being exercised. (b) Finance lease payments include $1.7 million related to options to extend lease terms that are reasonably certain of being exercised. (c) The present value of lease liabilities excludes $16.4 million of legally binding minimum lease payments for leases signed but not yet commenced. As of fiscal year end 2018, aggregate future minimum rental payments under our operating leases were as follows: Fiscal Year In thousands 2019 $ 69,372 2020 63,218 2021 56,219 2022 49,303 2023 42,545 Thereafter 126,388 $ 407,045 The future minimum rental payments above do not include amounts for variable executory costs such as insurance, real estate taxes and the common area maintenance. These costs were approximately $18.0 million and $14.9 million during the fiscal years ended 2018 and 2017, respectively. |
Leases | Leases We lease our stores, laboratories, distribution centers, and corporate offices. These leases generally have noncancelable lease terms of between five and 10 years , with an option to renew for additional terms of one to 10 years or more. The lease term includes renewal option periods when the renewal is deemed reasonably certain after considering the value of the leasehold improvements at the end of the noncancelable lease period. Most leases for our stores provide for a minimum rent and typically include escalating rent over time with the exception of Military for which lease payments are variable and based on a percentage of sales. For Vista Optical locations in Fred Meyer stores, we pay fixed rent plus a percentage of sales after certain minimum thresholds are achieved. The Company’s leases generally require us to pay insurance, real estate taxes and common area maintenance expenses, substantially all of which are variable and not included in the measurement of the lease liability. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. The Company does not consider its management & services agreement with its legacy partner to contain a lease arrangement. Our lease arrangements include TIAs, which are contractual amounts received from a lessor for improvements made to leased properties by the Company. For operating leases, TIAs are treated as a reduction of the lease payments used to measure the ROU assets in the accompanying consolidated balance sheet as of fiscal year 2019 (non-current liabilities as of fiscal year 2018 ), and are amortized as a reduction in rental expense over the life of the respective leases. For finance leases, a lease ROU asset is recorded as property and equipment and corresponding amounts are recorded as finance lease debt obligations at an amount equal to the lesser of the net present value of minimum lease payments to be made over the lease term or the fair value of the property for leases in existence as of fiscal year end 2018 and at the net present value of the minimum lease payments to be made over the lease term for new finance leases entered into subsequent to fiscal year end 2018 . We rent or sublease certain parts of our stores to third parties. Our sublease portfolio consists mainly of operating leases with our ophthalmologists and optometrists within our stores. In thousands As of Type Classification ASSETS Finance Property and equipment, net (a) $ 28,128 Operating Right of use assets (b) 348,090 Total leased assets $ 376,218 LIABILITIES Current Liabilities: Finance Current maturities of long-term debt and finance lease obligations $ 3,259 Operating Current operating lease obligations (c) 51,937 Other non-current liabilities: Finance Long-term debt and finance lease obligations, less current portion and debt discount 30,037 Operating Non-current operating lease obligations 331,769 Total lease liabilities $ 417,002 As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the net present value of minimum lease payments. We used the incremental borrowing rate on December 30, 2018 for operating leases that commenced prior to that date. _________ (a) Finance lease assets are recorded net of accumulated amortization of $8.3 million as of December 28, 2019 . (b) TIA of $35.2 million and deferred rent of $15.0 million are treated as reductions of lease payments used to measure ROU assets as of December 28, 2019 . (c) Current operating lease liabilities are measured net of TIA receivables of $5.9 million as of December 28, 2019 . In thousands Fiscal Year Operating lease cost Fixed lease cost (a) $ 73,971 Variable lease cost (b) 26,466 Sublease income (c) (2,930 ) Finance lease cost Amortization of finance lease assets 4,418 Interest on finance lease liabilities 3,573 Net lease cost $ 105,498 (a) Includes short-term leases, which are immaterial. (b) Includes costs for insurance, real estate taxes and common area maintenance expenses, which are variable as well as lease costs above minimum thresholds for Fred Meyer stores and lease costs for Military stores. (c) Income from sub-leasing of stores includes rental income from operating lease properties to ophthalmologists and optometrists who are independent contractors. Lease Term and Discount Rate Fiscal Year Weighted average remaining lease term (months) Operating leases 82 Finance leases 88 Weighted average discount rate (a) Operating leases 4.6 % Finance leases (b) 13.1 % (a) The discount rate used to determine the lease assets and lease liabilities was derived upon considering (i) incremental borrowing rates on our long-term debt; (ii) fixed rates we pay on our interest rate swaps; (iii) LIBOR margins for issuers of similar credit rating; and (iv) effect of collateralization. As a majority of our leases are five-year and 10-year leases, we determined a lease discount rate for such tenors and determined this discount rate is reasonable for leases that were entered into during the period. (b) The discount rate on finance leases is higher than operating leases because the present value of minimum lease payments was higher than the fair value of leased properties for certain leases entered into prior to adoption of ASC 842. The discount rate differential for those leases is not material to our results of operations. In thousands Fiscal Year Other Information Cash paid for amounts included in the measurement of lease liabilities Operating cash outflows - operating leases $ 75,330 The following table summarizes the maturity of our lease liabilities as of December 28, 2019 : In thousands Operating Leases (a) Finance Leases (b) Fiscal Year 2020 $ 67,240 $ 6,742 2021 74,451 7,127 2022 67,115 7,062 2023 59,981 6,088 2024 53,036 4,520 Thereafter 130,762 15,561 Total lease liabilities 452,585 47,100 Less: Interest 68,879 13,804 Present value of lease liabilities (c) $ 383,706 $ 33,296 _________ (a) Operating lease payments include $72.2 million related to options to extend lease terms that are reasonably certain of being exercised. (b) Finance lease payments include $1.7 million related to options to extend lease terms that are reasonably certain of being exercised. (c) The present value of lease liabilities excludes $16.4 million of legally binding minimum lease payments for leases signed but not yet commenced. As of fiscal year end 2018, aggregate future minimum rental payments under our operating leases were as follows: Fiscal Year In thousands 2019 $ 69,372 2020 63,218 2021 56,219 2022 49,303 2023 42,545 Thereafter 126,388 $ 407,045 The future minimum rental payments above do not include amounts for variable executory costs such as insurance, real estate taxes and the common area maintenance. These costs were approximately $18.0 million and $14.9 million during the fiscal years ended 2018 and 2017, respectively. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 28, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions Transactions with KKR During fiscal year 2019 , KKR Capital Markets LLC acted as a lead arranger with respect to the refinancing of our Credit Agreement, and received $1.0 million in fees in connection therewith. See Note 4 . “Long-term Debt” for additional information on the refinancing. During fiscal year 2019 , the Company completed a secondary offering pursuant to which KKR Vision Aggregator L.P. sold 9,149,908 shares of the Company’s common stock in an underwritten offering. See Note 1 . “Description of Business and Basis of Presentation-Secondary Offering and Common Stock Repurchase” for further details. Transactions with KKR and Berkshire During fiscal year 2018 , KCM acted as a lead arranger with respect to the joinder and amendment agreement, dated as of October 9, 2018 , relating to the first lien credit agreement, and received $1.2 million in fees in connection therewith. Under certain agreements we have entered into with KKR and Berkshire, we recorded the following expenses: In thousands Fiscal Year Fiscal Year Fiscal Year KKR $ — $ — $ 7,259 Berkshire $ — $ — $ 955 Fees paid to KKR and Berkshire include retainer fees and certain other on-going project-oriented initiatives and are presented in SG&A in the accompanying consolidated statements of operations, except KKR fees during the fiscal year 2017 include $2.3 million presented in debt issuance costs. Fiscal year 2017 expenses also include the monitoring agreement termination fee discussed in Note 1 . “Business and Significant Accounting Policies.” Dividend & Stockholders’ Equity On February 2, 2017 , the Company declared a recapitalization dividend to its stockholders. Common stockholders received a dividend per common share of $1.51 . There were 110.5 million common shares outstanding and eligible for the dividend. Vested and roll-over option holders received an additional cash payment of $1.51 per option, for an aggregate payment of $3.7 million . The income tax benefit of the additional cash payment was $1.4 million . The exercise price of unvested options was reduced by $1.51 per option. Since the Company was in an accumulated deficit position on the date of declaration, according to our accounting policy the combined total cash payment of $171.0 million was recorded as a reduction to additional paid-in capital in the accompanying consolidated balance sheet. |
Equity in Net Assets of Non-Con
Equity in Net Assets of Non-Consolidated Investee | 12 Months Ended |
Dec. 28, 2019 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity in Net Assets of Non-Consolidated Investee | Equity in Net Assets of Non-Consolidated Investee From time to time the Company invests in technological innovators across the optical retail industry. One of these investments is a nonconsolidated investee (the “investee”) in which an equity ownership interest is maintained and for which the equity method of accounting is used due to our ability to exert significant influence over decisions relating to our investee’s operations and financial affairs. We hold a 26% equity interest in our investee as of fiscal year end 2019 . Revenues and expenses of the investee are not consolidated into our financial statements; rather, our proportionate share of the earnings or losses of the investee is reflected as equity income or loss in other expense, net in our consolidated statements of operations. We have determined that we should not consolidate our investee because, although it is a variable interest entity, we are not the primary beneficiary. After adjusting the carrying value of our interest in the investee’s reported net losses, there is no remaining investment balance associated with this investee as of December 28, 2019 . Our investment balance in the business was $1.0 million at the end of fiscal year 2018 , which is included in other assets in the accompanying consolidated balance sheets. Our investee’s fiscal year ends on December 31 of each year. The investee recognized no material transactions on the days between its fiscal year end and our fiscal year end for all periods presented below. Summarized balance sheet information for our investee is as follows: In thousands As of As of Current assets $ 1,351 $ 2,197 Non-current assets 450 558 Total assets 1,801 2,755 Current liabilities 3,821 6,321 Non-current liabilities 8,200 3,000 Total liabilities 12,021 9,321 Net assets $ (10,220 ) $ (6,566 ) Summarized income statement information for our investee is as follows: In thousands Fiscal Year Fiscal Year Fiscal Year Revenues $ 6,046 $ 3,871 $ 6,244 Net loss $ (5,481 ) $ (5,632 ) $ (3,433 ) National Vision’s share of net loss $ (1,804 ) $ (1,304 ) $ (1,001 ) In the ordinary course of business we are a licensee of our investee. 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 . The note bears interest at a fixed rate of 5.00% with an additional variable interest component based on the base rate of the Bank of England, as published each calendar year, which is 0.75% as of December 28, 2019 and is included in other assets in the accompanying consolidated balance sheets. Interest income associated with the note was immaterial for the fiscal year end 2019 . The net carrying amount of the convertible promissory note after applying our share of the investee’s net losses of $0.8 million was $0.7 million , and is included in other assets in the accompanying condensed consolidated balance sheets for the fiscal year end 2019 . Balances and transactions related to our non-consolidated investee included in our consolidated balance sheets and statements of operations were as follows: In thousands As of As of Balance sheets Other assets (1) $ 704 $ 1,522 (1) Other assets represent a loan receivable from our investee. In thousands Fiscal Year Fiscal Year Fiscal Year Statements of operations Licensing fees (SG&A) $ 132 $ 172 $ 955 |
Fair Value Measurement of Finan
Fair Value Measurement of Financial Assets and Liabilities | 12 Months Ended |
Dec. 28, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement of Financial Assets and Liabilities | Fair Value Measurement 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 a reporting entity’s own market assumptions. The Company is required to measure certain assets and liabilities at fair value or disclose the fair values of certain assets and liabilities recorded at cost. Accounting standards define fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is estimated assuming the transaction occurs in the principal or most advantageous market for the asset or liability and includes consideration of non-performance risk and credit risk of both parties. A three-tier fair value hierarchy prioritizes the inputs used in measuring fair value. These tiers include: • Level 1 - Valuation inputs are based upon unadjusted quoted prices for identical instruments traded in active markets. • Level 2 - Valuation inputs are based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in inactive markets, and model-based valuation techniques for which all significant assumptions are observable in the market or can be corroborated by observable market data for substantially the full term of the instruments. • Level 3 - Valuation inputs are unobservable and typically reflect management's estimates of assumptions that market participants would use in pricing the asset or liability. The fair values are determined using model-based techniques that include discounted cash flow models, and similar techniques. The fair value estimates of financial instruments are not necessarily indicative of the amounts we might pay or receive in actual market transactions. The use of different market assumptions and/or estimation methodologies may have a material impact on the estimated fair value amounts. Cash Equivalents and Restricted Cash The carrying amount of cash equivalents approximates fair value due to the short term maturity of the instruments. All cash and cash equivalents are denominated in U.S. currency. Accounts Receivable, Net The carrying amount of accounts receivable approximates fair value due to the short-term nature of those items and the effect of related allowances for 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 - Term Loan and Revolving Credit Facility Since the borrowings under the Term Loan and Revolving Credit Facility utilize variable interest rate setting mechanisms such as LIBOR, the fair values of these borrowings are deemed to approximate the carrying values. Refer to Note 4 . “Long-term Debt” for additional information on the Term Loan and Revolving Credit Facility. Finance Lease Obligations The fair value of finance lease obligations is based on estimated future contractual cash flows discounted at an appropriate market rate of interest (Level 2 inputs). The estimated fair values of our finance leases were $38.2 million and $30.7 million as of fiscal year end 2019 and 2018 , respectively, compared to carrying values of $33.3 million and $24.5 million , respectively. Interest Rate Derivatives We recognize as assets or liabilities at fair value the estimated amounts we would receive or pay upon a termination of interest rate swaps prior to their scheduled expiration dates. The fair value was based on information that is model-driven and whose inputs were observable (Level 2 inputs). See Note 14 |
Deferred Revenue
Deferred Revenue | 12 Months Ended |
Dec. 28, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Deferred Revenue | The majority of our annual revenues are recognized either at the point of sale or upon delivery and customer acceptance, paid for at the time of sale in cash, credit card, or on account with managed care payors having terms generally between 14 and 120 days, with most paying within 90 days. For sales of in-store non-prescription eyewear and related accessories, and paid eye exams, we recognize revenue at the point of sale. Our point in time revenues include 1) retail sales of prescription and non-prescription eyewear, contact lenses and related accessories to retail customers (including those covered by managed care), 2) eye exams and 3) wholesale sales of inventory in which our customer is another retail entity. Revenues recognized over time primarily include product protection plans, eye care club memberships and management fees earned from our legacy partner. Revenues Recognized at a Point in Time Owned & Host Within our Owned & Host segment, product revenues include sales of prescription and non-prescription eyewear, contact lenses and related accessories to retail customers. For sales of in-store non-prescription eyewear and related accessories, we recognize revenue at the point of sale. For sales of prescription eyewear, we recognize revenue when the performance obligations identified under the terms of contracts with our customers are satisfied, which generally occurs, for products, when those products have been delivered and accepted by our customers. Within our Owned & Host segment services and plans revenues, eye exam services sold on a stand-alone basis are also recognized at the point of sale which occurs immediately after the exam is performed. Legacy Within our Legacy segment, product revenues include sales of prescription and non-prescription eyewear, contact lenses and related accessories to retail customers in transactions where the retail customer uses a managed-care payor; and wholesale sales of the same inventory types to the legacy partner. The revenue recognition for the retail sales are identical to similar sales in the Owned & Host segment. Wholesale sales of inventory to the legacy partner are recognized at the point in time when control of the inventory has been transferred in accordance with the contractual terms and conditions of sale. Since the wholesale sales of inventory to the legacy partner are a separate performance obligation in our management & services agreement with the legacy partner, we considered the appropriate allocation of consideration to wholesale inventory sales. We concluded that the difference between the stand-alone-selling price of the wholesale inventory and the contractual prices was not material. Within our Legacy segment services and plans revenues, eye exam services sold to retail customers are recognized at the point of sale which occurs immediately after the exam is performed. Corporate/Other Revenues from our non-reportable Corporate/Other segment are attributable to wholly owned subsidiaries AC Lens and FirstSight. AC Lens sells contact lenses and optical accessory products to retail customers through e-commerce. AC Lens also distributes contact lenses at its cost to Walmart and Sam’s Club under fee for services arrangements. This revenue is recorded on a gross basis as AC Lens is the principal in the arrangement since AC Lens controls the products in those transactions before the products are transferred to the customer. FirstSight issues individual vision 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. We offer three- or five-year eyecare club memberships in our Owned & Host segment to our contact lens customers. For these programs we apply the portfolio approach of recognizing revenues of contracts with similar characteristics and use estimates and assumptions that reflect the size and composition of the portfolio of contracts. We selected the portfolio approach because our historical club membership data demonstrate that our club customers behave similarly, such that the difference between the portfolio approach and calculating revenue of each individual contract is not material. We recognize revenue across the contract portfolio based on the value delivered to the customers relative to the remaining services promised under the programs. We determine the value delivered based on the expected timing and amount of customer usage of benefits over the terms of the contracts. The unamortized portion of amounts we collect in advance for these services and plans are reported as deferred revenue (current and non-current portions) in the accompanying consolidated balance sheets. Legacy Sales of services and plans in our Legacy segment include fees earned for managing the operations of our legacy partner. These fees are recorded on a net basis and are based primarily on sales of products and product protection plans to non-managed care customers. We determined that under the terms of the arrangement our legacy partner controls the products and services in the transaction with the retail customer and therefore we act as the agent in those transactions. We recognize this service revenue using the “right to invoice” method because our right to payment corresponds directly with the value of the management services provided to our legacy partner. The following disaggregation of revenues depicts our revenues based on the timing of revenue recognition: In thousands Fiscal Year Fiscal Year Revenues recognized at a point in time $ 1,578,379 $ 1,397,801 Revenues recognized over time 145,952 139,053 Total net revenue $ 1,724,331 $ 1,536,854 Refer to Note 16 . "Segment Reporting" for the Company’s disaggregation of net revenue by reportable segment and product type. As the reportable segments are aligned by similar economic factors, trends and customers, the reportable segment disaggregation view best depicts how the nature, amount and uncertainty of revenue and cash flows are affected by economic factors. The following depicts a roll-forward of deferred revenue: Fiscal Year 2019 In thousands Product Protection Plans Eye Care Clubs HMO Memberships Total Beginning of the year $ 28,775 43,488 $ 15 $ 72,278 Sold 63,105 52,438 — 115,543 Revenue recognized (60,969 ) (49,440 ) (12 ) (110,421 ) End of year $ 30,911 $ 46,486 $ 3 $ 77,400 Current $ 30,547 $ 25,320 $ 3 $ 55,870 Non-current 364 21,166 — 21,530 $ 30,911 $ 46,486 $ 3 $ 77,400 Fiscal Year 2018 In thousands Product Protection Plans Eye Care HMO Memberships Total Beginning of the year $ 26,731 $ 67,430 $ 54 $ 94,215 Adjustment for adoption of ASU 2014-09 — (25,776 ) — (25,776 ) Beginning of the year - As Adjusted 26,731 41,654 54 68,439 Sold 58,860 47,923 1,384 108,167 Revenue recognized (56,816 ) (46,089 ) (1,423 ) (104,328 ) End of year $ 28,775 $ 43,488 $ 15 $ 72,278 Current $ 28,403 $ 23,726 $ 15 $ 52,144 Non-current 372 19,762 — 20,134 $ 28,775 $ 43,488 $ 15 $ 72,278 Deferred revenue recorded as of fiscal year end 2019 is expected to be reflected in future operating results as follows: Fiscal Year In thousands 2020 $ 55,870 2021 16,125 2022 5,185 2023 170 2024 50 $ 77,400 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 28, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Agreements In 2018 , the Company renewed an eyeglass lenses supply agreement with a trade vendor effective June 2019 . The Company also renewed certain other agreements with the same eyeglass vendor, including a cloud computing service arrangement. Additionally, during the fiscal year of 2019 , we entered into other minimum purchase commitments with our trade vendors. As a result of these arrangements, the Company has minimum purchase commitments of approximately $23.5 million , $24.9 million , $8.4 million and $3.7 million in fiscal years 2020, 2021, 2022 and 2023, respectively. Warranty Costs The Company records an allowance for the estimated amount of future warranty costs when the related revenue is recognized, which is recorded in other payables and accrued expenses on the accompanying consolidated balance sheets. Expense associated with warranty costs is presented in cost of services and plans in the accompanying consolidated statements of operations. Estimated future warranty costs are primarily based on historical experience of identified warranty claims. However, there can be no assurance that future warranty costs will not exceed historical amounts. The following details the activity in our product warranty liability accounts: In thousands Fiscal Year Fiscal Year Beginning of year balance $ 1,742 $ 1,593 Accrued obligation 33,014 29,943 Claims paid (32,875 ) (29,794 ) End of year balance $ 1,881 $ 1,742 401(k) Plan The Company sponsors a 401(k) plan into which employees may defer a portion of their wages. We match a portion of such deferred wages. The expense for the plan was $5.3 million , $4.2 million and $3.1 million in the fiscal years ended 2019 , 2018 and 2017 , respectively. Expense associated with our 401(k) plan is presented in SG&A in the consolidated statements of operations. Legal Proceedings From time to time, the Company is involved in various legal proceedings incidental to its business. Because of the nature and inherent uncertainties of litigation, we cannot predict with certainty the ultimate resolution of these actions and, should the outcome of these actions be unfavorable, the Company’s business, financial position, results of operations or cash flows could be materially and adversely affected. The Company reviews the status of its legal proceedings and records a provision for a liability when it is considered probable that both a liability has been incurred and the amount of the loss can be reasonably estimated. This review is updated periodically as additional information becomes available. If either or both of the criteria are not met, we reassess whether there is at least a reasonable possibility that a loss, or additional losses, may be incurred. If there is a reasonable possibility that a loss may be incurred, we disclose the estimate of the amount of the loss or range of losses, or that an estimate of loss cannot be made. The Company expenses its legal fees as incurred. We are currently and may in the future become subject to various claims and pending or threatened lawsuits in the ordinary course of our business. Our subsidiary, FirstSight, is a defendant in a purported class action in the U.S. District Court for the Southern District of California that alleges that FirstSight participated in arrangements that caused the illegal delivery of eye examinations and that FirstSight thereby violated, among other laws, the corporate practice of optometry and the unfair competition and false advertising laws of California. The lawsuit was filed in 2013 and FirstSight was added as a defendant in 2016. In March 2017, the court granted the motion to dismiss previously filed by FirstSight and dismissed the complaint with prejudice. The plaintiffs filed an appeal with the U.S. Court of Appeals for the Ninth Circuit in April 2017. In July 2018, the U.S. Court of Appeals for the Ninth Circuit vacated in part, and reversed in part, the district court’s dismissal and remanded for further proceedings. In October 2018, the plaintiffs filed a second amended complaint with the district court, and, in November 2018, FirstSight filed a motion to dismiss. We believe that the claims alleged are without merit and intend to continue to defend the litigation vigorously. In May 2017, a complaint was filed against us and other defendants alleging, on behalf of a proposed class of consumers who purchased contact lenses online, that 1-800 Contacts, Inc. entered into a series of agreements with the other defendants, including AC Lens, to suppress certain online advertising and that each defendant thereby engaged in anticompetitive conduct in violation of the Sherman Antitrust Act. We have settled this litigation for $7.0 million , without admitting liability. Accordingly, we recorded a charge for this amount in litigation settlement in the consolidated statement of operations during the second quarter of fiscal year 2017. On November 8, 2017, the court in the 1-800 Contacts matter entered an order preliminarily approving the settlement agreement, subject to a settlement hearing. Pursuant to this order, we deposited 50% of the settlement amount, or $3.5 million , into an escrow account, to be distributed subject to and in accordance the terms of the settlement agreement and any further order of the court. In February 2019, we were served with a lawsuit by a former employee who alleges, on behalf of himself and a proposed class, several violations of California wage and hour laws and seeks unspecified alleged unpaid wages, monetary damages, injunctive relief and attorneys’ fees. On March 21, 2019, we removed the lawsuit from state court to the United States District Court for the Northern District of California. The plaintiff moved to remand the action to state court on April 18, 2019, and the Court denied this motion on July 8, 2019. On July 22, 2019, the plaintiff filed an amended complaint. On July 26, 2019, the parties filed a joint stipulation wherein the Company denied all claims in the amended complaint but joined the plaintiff in seeking a stay of further proceedings in the lawsuit based on the parties’ agreement to attend early mediation in an effort to avoid further costs and expenses of protracted litigation. The parties participated in mediation on February 19, 2020, but a resolution of the matter was not reached at that time. The Company continues to believe that the plaintiff’s amended complaint lacks merit and will vigorously defend the litigation. In November 2019, the Company agreed to enter into a pre-litigation settlement with six former employees who asserted, on behalf of themselves and a proposed class, violations of the Fair Labor Standards Act and of California wage and hour laws. In order to avoid the burden, expense and uncertainty of litigation, and without admitting liability, the Company agreed to a settlement with the named claimants and all participating class members for a maximum settlement amount of $895,000 . This settlement is subject to approval by a tribunal following a fairness hearing. |
Interest Rate Derivatives
Interest Rate Derivatives | 12 Months Ended |
Dec. 28, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Interest Rate Derivatives | The Company is party to pay-fixed and receive-floating interest rate swap agreements to offset the variability of cash flows in LIBOR-indexed debt interest payments, subject to a 1.0% floor, attributable to changes in the benchmark interest rate from March 13, 2017 to March 13, 2021 related to its credit agreement. During 2019 , in accordance with the original agreements with the counterparties, the notional amount of the first derivative decreased from $140.0 million to $105.0 million . There were no other changes in the terms of the arrangements. The fixed rates associated with the first derivative (“Derivative 1”) notional amount of $105.0 million and the second derivative (“Derivative 2”) notional amount of $225.0 million were 3.4063% and 3.5125% , respectively. The fixed rate associated with the third derivative (“Derivative 3”) notional amount of $100.0 million was 2.6000% . Derivative 1 will hedge the first amount of LIBOR-based interest payments up to its applicable notional amount and Derivative 2 will hedge the next amount (i.e., the first amount not already hedged by Derivative 1) up to its applicable notional amount. Derivative 3 will hedge interest payments not already hedged by Derivatives 1 and 2. Changes in the cash flows of each derivative are expected to be highly effective in offsetting the changes in interest payments on a principal balance equal to the derivative’s notional amount, attributable to the hedged risk. Our hedges have been deemed highly effective since inception as a result of our quarterly hedge effectiveness testing. Our cash flow hedge position related to interest rate derivative contracts is as follows: In thousands Notional Amount Maturity Date Other Payables and Accrued Expenses Other Liabilities AOCL, Net of Tax (1) As of $ 430,000 March 2021 $ 6,382 $ 1,603 $ 3,814 As of $ 465,000 March 2021 $ 3,130 $ 3,505 $ 2,810 (1) Includes stranded income tax benefit of $2.1 million within AOCL from adopting provisions of the Tax Cuts and Jobs Act of 2017 during the year ended December 30, 2017. As of December 28, 2019 , the Company expects to reclassify $4.7 million of unrealized losses on derivative instruments from AOCL into earnings in the next 12 months as the derivative instruments mature. See Note 18 |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 28, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Basic earnings per share (“EPS”) is computed by dividing net income by the weighted average number of common shares outstanding for the period. Diluted EPS is computed by dividing net income by the weighted average shares outstanding for the period and includes the dilutive impact of potential new shares issuable upon vesting and exercise of stock options and vesting of restricted stock units. Potential shares of common stock are excluded from the computation of diluted EPS if their effect is anti-dilutive. A reconciliation of the numerators and denominators of the basic and diluted EPS calculations is as follows: In thousands, except EPS Fiscal Year Fiscal Year Fiscal Year Net income $ 32,798 $ 23,653 $ 43,138 Weighted average shares outstanding for basic EPS 78,608 75,899 59,895 Effect of dilutive securities: Stock options 3,019 3,129 2,140 Restricted Stock 56 13 — Weighted average shares outstanding for diluted EPS 81,683 79,041 62,035 Basic EPS $ 0.42 $ 0.31 $ 0.72 Diluted EPS $ 0.40 $ 0.30 $ 0.70 Anti-dilutive options, RSUs outstanding excluded from EPS 294 — 254 |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 28, 2019 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting The Company’s reportable segments were determined on the same basis as used by the Chief Operating Decision Maker (“CODM”) to evaluate performance internally. Our operations consist of two reportable segments: • Owned & Host store brands - Our owned brands consist of our America’s Best and Eyeglass World operating segments. In America’s Best stores, vision care services are provided by optometrists employed either by us or by independent professional corporations. Eyeglass World locations primarily feature independent optometrists to perform eye exams and on-site laboratories. Our two host operating segments consist of Military and Fred Meyer. These brands provide eye exams principally by independent optometrists in nearly all locations. We have aggregated our America’s Best, Eyeglass World, Military and Fred Meyer operating segments into a single reportable segment due to similar economic characteristics and similarity of the nature of products and services, production processes, class of customers, regulatory environment and distribution methods of those brands. • Legacy - The Company manages the operations of, and supplies inventory and lab processing services to, 226 Legacy retail Vision Centers. We earn management fees as a result of providing such services and therefore we record revenue related to sales of products and product protection plans to our Legacy partner’s customers on a net basis. We also sell to our Legacy partner wholesale merchandise that is stocked in retail locations, and provide central lab processing for the finished eyeglasses and frames expected to be sold to our Legacy partner’s customers. We lease space from our Legacy partner within or adjacent to each of the locations we manage and use this space for providing optometric examination services. During fiscal year 2019 , sales associated with our Legacy partner arrangement represented 9.3% of consolidated net revenue. This exposes us to concentration of customer risk. Sales of services and plans in our Legacy segment consist of fees earned for managing the operations of our Legacy partner and revenues associated with the provision of eye exams for our managed care customers. Revenues associated with managing operations of our Legacy partner were $35.5 million , $34.7 million and $36.7 million for fiscal years ended 2019 , 2018 and 2017 , respectively. Our management & services agreement also allows our Legacy partner to collect penalties if the Vision Centers do not generate a requisite amount of revenues. No such penalties have been assessed under our current arrangement. On January 22, 2020, we entered into an amendment to our management & services agreement with Walmart. The amendment extended the current term of the management & services agreement by six months, to February 23, 2021, and such term will automatically renew for an additional three-year term unless, no later than July 23, 2020, one party provides the other party written notice of non-renewal. Pursuant to the amendment, we will also be adding five additional Vision Centers in Walmart stores in fiscal year 2020. 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. The operating segments identified above are the business activities of the Company for which discrete financial information is available and for which operating results are regularly reviewed by our CODM to allocate resources and assess performance. Our CODM is our chief executive officer. The Company considers each of our brands to be an operating segment and has further concluded that presenting the results of our reportable segments provides meaningful information consistent with the objectives of ASC 280, Segment Reporting . Strategic initiatives and financial objectives for each reportable segment are determined at the corporate level. Each operating segment is responsible for implementing defined strategic initiatives and achieving certain financial objectives, and has a general manager responsible for the sales and marketing initiatives and financial results for product lines within the segment. Revenues from the Corporate/Other segments are attributable to the AC Lens and FirstSight operating segments. AC Lens primarily sells contact lenses and optical accessory products to retail customers through e-commerce. AC Lens also distributes contact lenses to certain Walmart and Sam’s Club under fee for services arrangements. During fiscal year 2019 , AC Lens sales associated with Walmart and Sam’s Club contact lenses distribution arrangements represented 8.7% of consolidated net revenue. FirstSight sells single service health plans in connection with the operations of America’s Best operations in California, and arranges for the provision of optometric services at the offices next to Walmart and Sam’s Club stores throughout California. None of those segments met the quantitative thresholds for determining reportable segments for any of the periods presented. Our reportable segment profit measure is earnings before interest, tax, depreciation and amortization (“EBITDA”), or net revenue, less costs applicable to revenue, less selling, general and administrative costs. Depreciation and amortization, asset impairment, litigation settlement and other corporate costs that are not allocated to the reportable segments, including interest expense 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 consolidated financial statements, except for net revenue, which is presented on a cash basis, including point of sales for managed care payors and excluding the effects of unearned and deferred revenue, consistent with what the CODM regularly reviews. Asset information is not included in the following summary since the CODM does not regularly review such information for the reportable segments. Fiscal Year 2019 In thousands Owned & Host Legacy Corporate/Other Reconciliations Total Segment product revenues $ 1,076,315 $ 105,450 $ 245,206 $ (835 ) $ 1,426,136 Segment services and plans revenues 248,685 54,599 12 (5,101 ) 298,195 Total net revenue 1,325,000 160,049 245,218 (5,936 ) 1,724,331 Cost of products 310,790 48,712 215,052 (203 ) 574,351 Cost of services and plans 206,878 25,289 1 — 232,168 Total costs applicable to revenue 517,668 74,001 215,053 (203 ) 806,519 SG&A 508,239 56,235 180,014 — 744,488 Asset impairment — — 8,894 — 8,894 Other expense, net — — 3,611 — 3,611 Loss on extinguishment of debt — — 9,786 — 9,786 EBITDA $ 299,093 $ 29,813 $ (172,140 ) $ (5,733 ) Depreciation and amortization 87,244 Interest expense, net 33,300 Income before income taxes $ 30,489 Fiscal Year 2018 In thousands Owned & Host Legacy Corporate/Other Reconciliations Total Segment product revenues $ 956,355 $ 103,890 $ 208,875 $ 492 $ 1,269,612 Segment services and plans revenues 217,047 50,522 3,552 (3,879 ) 267,242 Total net revenue 1,173,402 154,412 212,427 (3,387 ) 1,536,854 Cost of products 280,720 46,986 183,459 241 511,406 Cost of services and plans 178,362 20,272 3,531 — 202,165 Total costs applicable to revenue 459,082 67,258 186,990 241 713,571 SG&A 457,618 54,091 175,767 — 687,476 Asset impairment — — 17,630 — 17,630 Other expense, net — — 1,487 — 1,487 Debt issuance cost — — 200 — 200 EBITDA $ 256,702 $ 33,063 $ (169,647 ) $ (3,628 ) Depreciation and amortization 74,339 Interest expense, net 37,283 Income before income taxes $ 4,868 Fiscal Year 2017 In thousands Owned & Host Legacy Corporate/Other Reconciliations Total Segment product revenues $ 847,866 $ 103,887 $ 179,718 $ (2,158 ) $ 1,129,313 Segment services and plans revenues 190,701 49,955 12,172 (6,833 ) 245,995 Total net revenue 1,038,567 153,842 191,890 (8,991 ) 1,375,308 Cost of products 248,548 48,275 159,789 (534 ) 456,078 Cost of services and plans 153,691 16,624 10,573 — 180,888 Total costs applicable to revenue 402,239 64,899 170,362 (534 ) 636,966 SG&A 403,848 52,705 143,457 — 600,010 Asset impairment — — 4,117 — 4,117 Debt issuance cost — — 4,527 — 4,527 Litigation settlement — — 7,000 — 7,000 Other expense, net — — 950 — 950 EBITDA $ 232,480 $ 36,238 $ (138,523 ) $ (8,457 ) Depreciation and amortization 61,974 Interest expense, net 55,536 Income before income taxes $ 4,228 Consolidated Net Product Revenue Information The following table presents our consolidated net product revenue information: In thousands Fiscal Year Fiscal Year Fiscal Year Net Product Sales Eyeglasses and sunglasses $ 947,729 $ 851,328 $ 763,268 Contact lenses 471,042 410,839 358,808 Accessories and other 7,365 7,445 7,237 Total net product revenues $ 1,426,136 $ 1,269,612 $ 1,129,313 |
Restricted Cash
Restricted Cash | 12 Months Ended |
Dec. 28, 2019 | |
Cash and Cash Equivalents [Abstract] | |
Restricted Cash | Restricted Cash The following table provides a reconciliation of cash and cash equivalents reported within the consolidated balance sheets to the total of cash, cash equivalents and restricted cash shown in the consolidated statement of cash flows: In thousands Fiscal Year Fiscal Year Fiscal Year Cash and cash equivalents $ 39,342 $ 17,132 $ 4,208 Restricted cash included in other assets 965 866 986 Total cash, cash equivalents and restricted cash $ 40,307 $ 17,998 $ 5,194 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 12 Months Ended |
Dec. 28, 2019 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | h flow hedge derivative instruments are recorded in AOCL. The following table presents the changes in AOCL, net of tax during the fiscal years 2019 , 2018 and 2017 , respectively: In thousands Fiscal Year Fiscal Year Fiscal Year Cash flow hedging activity Balance at beginning of fiscal year $ (2,810 ) $ (9,868 ) $ (14,556 ) Other comprehensive income (loss) before reclassification (5,814 ) 3,182 (1,051 ) Tax effect of other comprehensive income (loss) before reclassification 1,489 (815 ) 436 Amount reclassified from AOCL 4,464 6,306 8,664 Tax effect of amount reclassified from AOCL (1,143 ) (1,615 ) (3,361 ) Net current period other comprehensive income (loss), net of tax (1,004 ) 7,058 4,688 Balance at end of fiscal year $ (3,814 ) $ (2,810 ) $ (9,868 ) |
Quarterly Financial Information
Quarterly Financial Information (Unaudited) | 12 Months Ended |
Dec. 28, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information (Unaudited) | The unaudited quarterly financial information reflects all normal and recurring accruals and adjustments necessary for a fair presentation of net income for interim periods. Quarterly results are not necessarily indicative of a full year’s operations because of various factors. The following tables present unaudited quarterly financial information: Fiscal Year 2019 In thousands, except EPS Fourth Quarter Third Quarter Second Quarter First Quarter Total net revenue $ 401,763 $ 431,902 $ 429,451 $ 461,215 Total costs applicable to revenue $ 187,542 $ 204,502 $ 202,506 $ 211,969 Income from operations $ 8,361 $ 11,112 $ 21,702 $ 32,400 Net income $ 3,920 $ 1,192 $ 10,257 $ 17,429 Weighted-average shares used in computing basic EPS 79,271 78,474 78,318 78,205 Weighted-average shares used in computing diluted EPS 81,785 81,561 81,424 81,466 Basic EPS $ 0.05 $ 0.02 $ 0.13 $ 0.22 Diluted EPS $ 0.05 $ 0.01 $ 0.13 $ 0.21 Anti-dilutive options, RSUs outstanding excluded from EPS 350 315 391 356 Fiscal Year 2018 In thousands, except EPS Fourth Quarter Third Quarter Second Quarter First Quarter Total net revenue $ 355,922 $ 387,425 $ 385,532 $ 407,975 Total costs applicable to revenue $ 173,470 $ 182,588 $ 177,059 $ 180,454 Income (loss) from operations $ (19,387 ) $ (2,083 ) $ 24,973 $ 38,848 Net income (loss) $ (18,440 ) $ 5,171 $ 12,467 $ 24,455 Weighted-average shares used in computing basic EPS 77,526 76,118 75,249 74,714 Weighted-average shares used in computing diluted EPS 77,526 79,710 77,858 77,837 Basic EPS $ (0.24 ) $ 0.07 $ 0.17 $ 0.33 Diluted EPS $ (0.24 ) $ 0.06 $ 0.16 $ 0.31 Anti-dilutive options outstanding excluded from EPS 3,130 — — — |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 28, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On January 22, 2020, we entered into an amendment to our management & services agreement with Walmart. The amendment extended the current term of the management & services agreement by six months , to February 23, 2021, and such term will automatically renew for an additional three-year term unless, no later than July 23, 2020, one party provides the other party written notice of non-renewal. Pursuant to the amendment, we will also be adding five additional Vision Centers in Walmart stores in fiscal year 2020. |
Schedule I - Condensed Financia
Schedule I - Condensed Financial Information of Registrant | 12 Months Ended |
Dec. 28, 2019 | |
Condensed Financial Information Disclosure [Abstract] | |
Schedule I - Condensed Financial Information of Registrant | National Vision Holdings, Inc. and Subsidiaries (Parent Company Only) Condensed Balance Sheets In Thousands, Except Par Value As of As of ASSETS Current assets: Cash and cash equivalents $ 55 $ 246 Accounts Receivable, net 534 — Total current assets 589 246 Deferred income taxes 320 393 Investment in subsidiary 804,443 745,198 Total non-current assets 804,763 745,591 Total assets $ 805,352 $ 745,837 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Other current liabilities $ 50 $ 65 Non-current liabilities: Other non-current liabilities 28,865 2,618 Stockholders’ equity: Common stock, $0.01 par value; 200,000 shares authorized; 80,603 and 78,246 shares issued as of December 28, 2019 and December 29, 2018, respectively; 79,678 and 78,167 shares outstanding as of December 28, 2019 and December 29, 2018, respectively 805 782 Additional paid-in capital 700,121 672,503 Accumulated other comprehensive loss (3,814 ) (2,810 ) Retained earnings 107,132 74,840 Treasury stock, at cost; 925 and 79 shares as of December 28, 2019 and December 29, 2018, respectively (27,807 ) (2,161 ) Total stockholders’ equity 776,437 743,154 Total liabilities and stockholders’ equity $ 805,352 $ 745,837 The accompanying notes are an integral part of these condensed financial statements. Schedule I - Condensed Financial Information of Registrant National Vision Holdings, Inc. And Subsidiaries (Parent Company Only) Condensed Statements of Operations and Comprehensive Income In Thousands Fiscal Year Fiscal Year Fiscal Year Total net revenue $ — $ — $ — Cost applicable to revenue — — — Operating expenses 256 265 218 Income (Loss) before income taxes (256 ) (265 ) (218 ) Income tax provision (benefit) 71 (91 ) (85 ) Income (Loss) before equity in net income of subsidiaries (327 ) (174 ) (133 ) Net income of subsidiaries 33,125 23,827 43,271 Net income $ 32,798 $ 23,653 $ 43,138 Comprehensive income: Net income 32,798 23,653 43,138 Unrealized gain (loss) on hedge instruments (1,350 ) 9,488 7,613 Tax provision (benefit) of unrealized gain (loss) on hedge instruments (346 ) 2,430 2,925 Comprehensive income $ 31,794 $ 30,711 $ 47,826 The accompanying notes are an integral part of these condensed financial statements. Schedule I - Condensed Financial Information of Registrant National Vision Holdings, Inc. and Subsidiaries (Parent Company Only) Condensed Statements of Cash Flows In Thousands Fiscal Year Fiscal Year Fiscal Year Operating Activities Net cash provided by (used for) operating activities $ 25,455 $ 223 $ 11 Investing Activities Dividend from subsidiary — — 170,983 Investment in subsidiary (15,090 ) (19,802 ) (373,024 ) Net cash provided by (used for) investing activities (15,090 ) (19,802 ) (202,041 ) Financing Activities Proceeds from stock option exercises and employee stock purchase plan 15,090 19,802 1,092 Proceeds from sale of common stock — — 371,932 Dividend to stockholders — — (170,983 ) Purchase of common stock (25,646 ) — — Net cash provided by (used for) financing activities (10,556 ) 19,802 202,041 Net change in cash and cash equivalents (191 ) 223 11 Cash and cash equivalents, beginning of year 246 23 12 Cash and cash equivalents, end of year $ 55 $ 246 $ 23 The accompanying notes are an integral part of these condensed financial statements. 1. Basis of Presentation National Vision Holdings, Inc. (“NVHI,” or the “Company”) conducts substantially all of its activities through its indirect wholly owned subsidiary, National Vision, Inc. (“NVI”) and its subsidiaries. NVHI was incorporated in Delaware on February 14, 2014 under the name Nautilus Parent, Inc. There were no financial transactions between the inception date and March 13, 2014, the date the majority ownership of NVI was transferred from private equity funds managed by Berkshire Partners LLC to affiliates of Kohlberg Kravis Roberts & Co. L.P. In the parent-company-only financial statements, NVHI’s investment in subsidiaries is stated at cost, plus equity in undistributed earnings of subsidiaries since the date of acquisition, less dividends. The parent-company-only financial statements should be read in conjunction with the NVHI consolidated financial statements. The increase in other non-current liabilities on the Condensed Balance Sheets was primarily due to funds provided by NVI to facilitate the Company’s repurchase of common stock in 2019. 2. Guarantees and Restrictions On February 2, 2017 , the Company declared a recapitalization dividend to its stockholders. The dividend was funded with $175.0 million in new term loans under NVI’s first lien credit agreement. As described in the Initial and Secondary Public Offerings section included in Note 1 . “Business and Significant Accounting Policies,” to the NVHI consolidated financial statements, NVI used proceeds from the NVHI IPO to repay all $125.0 million outstanding aggregate amount of its second lien term loans and approximately $235.0 million of the outstanding amount of its First Lien - Term Loan B and accrued and unpaid interest thereon. As of December 28, 2019 , NVI had $540.4 million of principal amount of long-term debt outstanding under its Term Loan and Revolving Credit Facility (as defined below). Pursuant to the Restatement Agreement, as described in Note 4 . “Long-term Debt,” to the NVHI consolidated financial statements, the credit agreement also provides for up to $300.0 million in revolving loans (“Revolving Credit Facility”). As of fiscal year end 2019 , NVI had $148.0 million outstanding revolving loan obligations and had $5.7 million in outstanding letters of credit related to the Revolving Credit Facility. Under the agreement, provided no event of default has occurred and is continuing, NVI is permitted to pay dividends to NVHI with certain restrictions as stated in the credit agreement. |
Business and Significant Acco_2
Business and Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 28, 2019 | |
Accounting Policies [Abstract] | |
Fiscal Year | Fiscal Year We operate on a retail fiscal calendar that results in a given fiscal year consisting of a 52 - or 53 -week period ending on the Saturday closest to December 31. In a 52 -week fiscal year, each quarter contains 13 weeks of operations; in a 53 -week fiscal year, each of the first, second and third quarters includes 13 weeks of operations and the fourth quarter includes 14 weeks of operations. References herein to “fiscal year 2019 ,” “fiscal year 2018 ,” and “fiscal year 2017 ,” relate to the 52 weeks ended December 28, 2019 , December 29, 2018 and December 30, 2017 , respectively. Unless otherwise stated, references to years in this report relate to fiscal years rather than calendar years. |
Basis of Presentation and Principles of Consolidation | Basis of Presentation and Principles of Consolidation We prepare our consolidated financial statements in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The consolidated financial statements include our accounts and those of our subsidiaries, all of which are wholly-owned. All intercompany balances and transactions have been eliminated in consolidation. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash consists of currency and demand deposits with financial institutions. We consider all highly liquid investments with an original maturity of three months or less at the date of purchase to be cash equivalents. We maintain the majority of our cash and cash equivalents in one large national banking institution. Such amounts are in excess of federally insured limits. We also review cash balances on a bank by bank basis to identify book overdrafts. Book overdrafts occur when the amount of outstanding checks exceed the cash deposited at a bank. We reclassify book overdrafts, if any, to accounts payable in the accompanying consolidated balance sheets. |
Accounts Receivable, Net | Accounts Receivable, Net |
Inventories | Inventories |
Prepaid Expenses and Other Current Assets | Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets primarily include prepaid software maintenance and licensing fees, prepaid rent, prepaid advertising, prepaid insurance, supplies and income taxes receivable. |
Property and Equipment | Property and Equipment Property and equipment (“P&E”) is stated at cost less accumulated depreciation. Depreciation associated with P&E is included in depreciation and amortization in the accompanying consolidated statements of operations. When we retire or otherwise dispose of P&E, we remove the cost and related accumulated depreciation from our accounts and recognize any gain or loss on the sale of such assets in SG&A in the consolidated statements of operations. We capitalize major replacements and remodeling, and recognize expenditures for maintenance and repairs in SG&A. We depreciate P&E for financial accounting purposes using the straight-line method over the following estimated useful lives: Buildings 34 years Equipment 3 - 7 years Information technology hardware and software (a) 2 - 5 years Furniture and fixtures 6 years Leasehold improvements (b) 10 years P&E under capital leases (b) 10 years ____________ (a) Costs of developing or obtaining software for internal use, such as direct costs of materials or services and internal payroll costs related to the software development projects, are capitalized to information technology hardware and software. (b) Depreciation of leasehold improvements is recognized over the shorter of the estimated useful life of the asset or the term of the lease. The term of the lease includes renewal options for additional periods if the exercise of the renewal is considered to be reasonably assured. |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Indefinite-lived intangible assets include goodwill and our trademarks and tradenames; we evaluate these assets annually for impairment, or more frequently if events and circumstances indicate that it is more likely than not that goodwill is impaired. Our annual testing date for impairment of goodwill and indefinite-lived intangible assets is the first day of the fourth fiscal quarter, which for fiscal years 2019 and 2018 was September 29, 2019 , and September 30, 2018 , respectively. Finite-lived, amortizing intangible assets primarily consist of our contracts and relationships with certain retailers and our customer database tool. We amortize finite-lived intangible assets on a straight-line basis over their estimated useful lives, ranging from four to 23 years . Amortization expense associated with finite-lived intangible assets is included in depreciation and amortization in the accompanying consolidated statements of operations. Goodwill is impaired if a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying value of goodwill. We consider each of our operating segments to be reporting units. We estimate the fair value of our reporting units using the income approach, which is based on a discounted cash flow analysis and calculate the fair value of reporting units by estimating after-tax cash flows discounted using a weighted average cost of capital. The cash flows used in the analysis are based on financial forecasts developed internally by management and require significant judgment. The significant unobservable inputs used in the fair value measurement of the reporting units are revenue growth rate, cost of sales, payroll expense growth rate and other store expenses growth rate. These assumptions are sensitive to future changes in the business profitability, changes in our business strategy and external market conditions, among other factors. A decrease to the long term revenue growth rate assumption or an increase to the expense growth rate assumptions could require us to record goodwill impairment charges. If impairment indicators related to amortizing intangible assets are present, we estimate cash flows expected to be generated over the remaining useful lives of the related assets based on current projections. If the projected net undiscounted cash flows are less than the carrying value of the related assets, we then measure impairment based on a discounted cash flow model and record an impairment charge as the excess of carrying value and estimated fair value. We use the relief-from-royalty method to estimate fair value, which involves estimating a royalty rate based on comparable licensing arrangements, applying that rate to the revenue projections for the subject asset, and then estimating fair value using a discounted cash flow analysis. We record an impairment charge as the excess of carrying value over estimated fair value. |
Equity Method Investment | Equity Method Investment |
Fair Value Measurement of Assets and Liabilities (Non-Recurring Basis) | Fair Value Measurement of Assets and Liabilities (Non-Recurring Basis) Non-financial assets such as P&E and intangible assets are subject to nonrecurring fair value measurements if impairment indicators are present. Factors we consider important that could trigger an impairment review include a significant under-performance compared to expected operating results, a significant or adverse change in customer business climate, and a significant negative industry or economic trend. |
Deferred Financing Costs and Loan Discounts | Deferred Financing Costs and Loan Discounts Costs incurred in connection with long-term debt which are paid directly to the Company’s lenders and to third parties are treated as debt discounts. Loan discounts are amortized over the term of the related financing agreement and included in interest expense in the accompanying consolidated statements of operations. |
Self-Insurance Accruals | Self-Insurance Liabilities |
Derivative Financial Instruments | Derivative Financial Instruments The Company uses interest rate swaps to manage its exposure to adverse fluctuations in interest rates by converting a portion of our debt portfolio from a floating rate to a fixed rate. We designate our interest rate swaps as cash flow hedges and formally document our hedge relationships, including identification of the hedging instruments and the hedged items, as well as our risk management objectives and strategies for undertaking the hedge transactions. We record all interest rate swaps in our consolidated balance sheets on a gross basis at fair value. Fair value represents estimated amounts we would receive or pay upon a termination of interest rate swaps prior to their scheduled expiration dates. The fair value was based on information that is model-driven and whose inputs were observable (Level 2 inputs). We do not hold or enter into financial instruments for trading or speculative purposes. The gain or loss resulting from fair value adjustments on cash flow hedges is recorded in accumulated other comprehensive loss (“AOCL”) in the accompanying consolidated balance sheets until the hedged item is recognized as interest expense in the consolidated statements of operations. We perform periodic assessments of the effectiveness of our derivative contracts designated as hedges, including the possibility of counterparty default. |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss AOCL is defined as the change in equity of a business enterprise during a period from transactions and other events and circumstances from non-owner sources. Accumulated other comprehensive loss, net of income tax, is entirely composed of the cumulative unrealized loss on our hedging instruments. See Note 18 . “Accumulated Other Comprehensive Loss” for details of reclassifications out of AOCL. |
Revenue Recognition and Costs Applicable to Revenue | Revenue Recognition Product revenues include sales of prescription and non-prescription eyewear, contact lenses, related accessories to retail customers (including those covered by managed care) and sales of inventory in which our customer is another retail entity. Revenues from services and plans include eye exams, eyecare club membership fees, product protection plans (i.e. warranties) and HMO membership fees. Service revenue also includes fees we earn for managing certain Vision Centers and performing laboratory processing services for our legacy partner. At our America’s Best brand, our signature offer is two pairs of eyeglasses and a free eye exam for one low price (“ two -pair offer”). Since an eye exam is a key component in the ability for acceptable prescription eyewear to be delivered to a customer, we concluded that the eye exam service, while capable of being distinct from the eyeglass product delivery, was not distinct in the context of the two -pair offer. As a result, we do not allocate revenue to the eye exam associated with the two -pair offer, and we record all revenue associated with the offer in Owned & Host net product sales when the customer has received and accepted the merchandise. Our retail customers generally make payments for prescription eyewear products at the time they place an order. Amounts we collect in advance for undelivered merchandise are reported as unearned revenue in the accompanying consolidated balance sheets. Unearned revenue at the end of a reporting period is estimated based on processing and delivery times throughout the current month and generally ranges from approximately seven to 10 days . All unearned revenue at the end of a reporting period is recognized in the next fiscal period. Revenue is recognized net of sales taxes and returns and include amounts billed to customers related to shipping and handling costs. The returns allowance is based on historical return patterns. Provisions for estimated returns are established and the expected costs continue to be recognized as reductions to revenue when the products are sold. Shipping and handling costs are accounted for as fulfillment costs and are included in costs applicable to revenue. Refer to Note 7 . “Revenue from Contracts With Customers” for further details of our revenues. Costs Applicable To Revenue Costs applicable to revenue consist primarily of cost of products sold and costs of administering services and plans. Costs of products sold include (i) costs to procure non-prescription eyewear, contacts and accessories which we purchase and sell in their finished form, (ii) costs to manufacture finished prescription eyeglasses, including direct materials, labor and overhead and (iii) remake costs, warehousing and distribution expenses and internal transfer costs. Costs of services and plans include costs associated with warranty programs, eyecare club memberships, HMO memberships, eyecare practitioner and eye exam technician payroll, taxes and benefits and optometric and other service costs. Depreciation and amortization are excluded from costs applicable to revenue and are presented separately on the accompanying consolidated statements of operations. |
Selling, General and Administrative Expenses | Selling, General and Administrative SG&A includes store associate payroll, taxes and benefits, occupancy and other store expenses, advertising and promotion, field services, and corporate support. Advertising and promotion costs, including online marketing arrangements, newspaper, direct mail, television and radio, are recorded in SG&A and expensed at the time the advertising first occurs. Production costs of future media advertising and related promotional campaigns are deferred until the advertising events occur. Non-capital expenditures associated with opening new stores, including rent, marketing expenses, travel and relocation costs, and training costs, are recorded in SG&A as incurred. |
Leases | Leases We lease our stores, laboratories, distribution centers, and corporate offices. These leases generally have noncancelable lease terms of between five and 10 years , with an option to renew for additional terms of one to 10 years or more. The lease term includes renewal option periods when the renewal is deemed reasonably certain after considering the value of the leasehold improvements at the end of the noncancelable lease period. Most leases for our stores provide for a minimum rent and typically include escalating rent over time with the exception of Military for which lease payments are variable and based on a percentage of sales. For Vista Optical locations in Fred Meyer stores, we pay fixed rent plus a percentage of sales after certain minimum thresholds are achieved. The Company’s leases generally require us to pay insurance, real estate taxes and common area maintenance expenses, substantially all of which are variable and not included in the measurement of the lease liability. Our lease arrangements include tenant improvement allowances (TIAs), which are contractual amounts received or receivable from a lessor for improvements made to leased properties by the Company. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. The Company does not consider its management & services agreement with its legacy partner to contain a lease arrangement. The lease liability is measured at the present value of future lease payments over the lease term less TIAs receivable, and the ROU asset is measured at the lease liability amount, adjusted for prepaid lease payments, TIAs received and the lessee’s initial direct costs. As the rate implicit in the Company’s leases is not easily determinable, the Company’s incremental borrowing rate is used in calculating the present value of the sum of the lease payments. Factors incorporated into the calculation of the lease incremental borrowing rate include lease term, borrowing rates on the Company’s long-term debt, fixed rates on the Company’s interest rate swaps, LIBOR margins for issuers of similar credit rating to NVI and effect of collateralization. For finance leases, a lease ROU asset is recorded as property and equipment and corresponding amounts are recorded as finance lease debt obligations at an amount equal to the lesser of the net present value of minimum lease payments to be made over the lease term or the fair value of the property for leases in existence as of fiscal year end 2018 and at the net present value of the minimum lease payments to be made over the lease term for new finance leases entered into subsequent to fiscal year end 2018 . |
Stock-Based Compensation | Stock-Based Compensation We measure stock-based compensation cost, which consists of grants of stock options, restricted stock units and restricted shares to employees, consultants and non-employee directors, based on the estimated grant date fair value of the awards. We recognize compensation expense for service-based vesting awards over the requisite service period using a straight-line recognition method. For awards that are subject to performance conditions, we recognize compensation expense once achievement of the conditions is considered to be probable. We account for forfeitures as they occur. See Note 5 . “Stock Incentive Plan” for further details related to our stock-based compensation plans. |
Asset Impairment | Asset Impairment We evaluate impairment of long-lived tangible and right of use (“ROU”) store assets at the store level, which is the lowest level at which independent cash flows can be identified, when events or conditions indicate the carrying value of such assets may not be recoverable. In making this evaluation, we may consider multiple factors including financial performance of the stores, regional and local business climates, future plans for the store operations and other qualitative factors. If the store's projected undiscounted net cash flows expected to be generated by the related assets over the life of the primary asset within the asset group (generally leasehold improvements) are less than the carrying value of the subject assets, we determine an estimate of the fair value of the asset group using an income approach based on discounted cash flows, which require estimates and assumptions related to forecasted store revenue growth rates and store profitability. The cash flows used in estimating fair value were discounted using a market rate of approximately 8% . If the fair value of the asset group is less than its carrying value, the loss is allocated to the long-lived assets of the group on a pro rata basis using the relative carrying amounts of those assets, except that the loss allocated to an individual long lived asset of the group shall not reduce the carrying amount of that asset below its fair value. A significant decrease in the estimated cash flows would lead to a lower fair value measurement, as would a significant increase in the discount rate. These non-recurring fair value measurements are classified as Level 3 measurements in the fair value hierarchy. As a result of our tests for impairment of our long-lived tangible store assets classified as held and used, an impairment of $8.9 million , $2.5 million and $1.6 million was recorded for fiscal years 2019 , 2018 and 2017 , respectively. These impairment charges were primarily driven by lower than projected customer sales volume in certain stores. The estimated remaining fair value of the impaired assets was $16.6 million during fiscal year 2019 and $0.1 million remaining fair value of the assets that were impaired during fiscal year 2018 . Substantially all of the remaining fair value of the impaired store assets in fiscal year 2019 represent the fair value of ROU assets recorded upon adoption of ASU 2016-02, Leases ; the remaining fair value estimated in fiscal year 2019 includes amounts estimated at various dates during fiscal year 2019. We assess non-store tangible assets, including capitalized software costs in use or under development, for impairment if events or changes in circumstances indicate that the carrying value of those assets may not be recoverable. During fiscal years 2019 and 2018 there was no impairment of capitalized software. There was $1.5 million in impairment of capitalized software during fiscal year 2017 . |
Income Taxes | Income Taxes We account for deferred income taxes based on the asset and liability method. The Company must make certain estimates and judgments in determining income tax expense. We are required to determine the aggregate amount of income tax expense to accrue and the amount which will be currently payable or refundable based upon tax statutes of each jurisdiction in which the Company does business. Deferred income taxes are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets also include future tax benefits to be derived from the utilization of tax loss carry-forwards and application of certain carry-forward credits. The net carrying amount of deferred income tax assets and liabilities is recorded in non-current deferred income tax liabilities in the accompanying consolidated balance sheets. Deferred income taxes are measured using enacted tax rates in effect for the years in which those differences are expected to be recovered or settled. The effect on deferred taxes from a change in the tax rate is recognized through continuing operations in the period that includes the enactment of the change. Changes in tax laws and rates could affect recorded deferred tax assets and liabilities in the future. A valuation allowance is recorded if it is more-likely-than-not that some portion of a deferred tax asset will not be realized. Valuation allowances are released as positive evidence of future taxable income sufficient to realize the underlying deferred tax assets becomes available. We establish a liability for tax positions for which there is uncertainty as to whether the position will ultimately be sustained. We assess our tax positions by determining whether it is more-likely-than-not that the position will be sustained upon examination by the appropriate taxing authorities, including resolution of any related appeals or litigation, based solely on the technical merits of the position. These calculations and assessments involve estimates and judgments because the ultimate tax outcomes are uncertain and future events are unpredictable. See Note 6 . “Income Taxes” for further details. On December 22, 2017 , the 2017 Tax Cuts and Jobs Act (the “Tax Legislation”) was enacted into law. We are required to recognize the effect of tax law changes in the period of enactment, such as re-measuring and reassessing the net realizability of our deferred tax assets and liabilities. 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 Legislation for which measurement could be reasonably estimated as of fiscal year end 2017 . For fiscal year 2018 , the Company recorded adjustments to the provisional estimates related to depreciation expense. The adjustments to the provisional estimates of fiscal year end 2017 did not materially impact the effective tax rate of the Company during fiscal year 2018 . See Note 6 . “Income Taxes” for additional information. |
Recently Issued Accounting Pronouncements | 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 consolidated balance sheet as of December 30, 2017 . Under previous guidance, we recognized revenue for eyecare club memberships on a ratable basis over the service period. Currently, we have 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. This change did not have a significant impact on our ongoing consolidated results of operations and the cumulative effect and the impact on revenues is described in Note 7 . “Revenue From Contracts with Customers”. Our results of operations for the reported periods after December 30, 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 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 each of the most recent three fiscal years. See Note 7 . “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 impact on the Company’s financial condition, results of operations, or cash flows. 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. The Company adopted this new guidance effective beginning of fiscal year 2018. The adoption of this new guidance did not have a material impact on Company’s financial condition, results of operations, or cash flows. Leases. In February 2016 , the Financial Accounting Standards Board (“FASB”) issued ASU No. 2016-02, Leases . This new guidance establishes a ROU model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases are classified as either finance or operating, with such classification affecting the pattern of expense recognition in the statement of operations. Disclosure of key information about leasing arrangements is also required. We adopted ASU No. 2016-02, as amended, as of December 30, 2018 (the first day of fiscal year 2019 ), using the modified retrospective transition approach without adjusting the comparative periods presented. We elected the package of practical expedients permitted under the transition guidance within the new standard, which allowed us to carry forward historical lease classification for leases in existence as of the adoption date, to not assess whether any expired or existing contracts are leases or contain leases and to not assess whether unamortized initial direct costs for existing leases meet the definition of initial direct costs. In addition, we elected the practical expedients to not separate lease components from non-lease components and to not apply this new guidance to leases with terms of less than 12 months. Upon adoption, we recorded operating lease liabilities of approximately $339.6 million as of December 30, 2018 . The Company treated TIAs and deferred rent of $24.3 million and $11.9 million , respectively, as of December 30, 2018 as reductions of lease payments and prepaid rent of $5.8 million as of December 30, 2018 as an increase in lease payments used to measure ROU assets and recorded $308.5 million of lease ROU assets upon adoption. The difference between the additional lease assets and lease liabilities net of the deferred tax impact was $0.5 million , which was recorded as an adjustment to fiscal year 2019 opening retained earnings. Adoption of this new guidance did not result in significant changes to our results of operations or cash flows. See Note 8 . “Leases” for additional information. Other Comprehensive Income. In February 2018 , the FASB issued Accounting Standards Update ASU 2018-02, Income Statement–Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income ("ASU 2018-02") . This guidance allows for an optional reclassification from accumulated other comprehensive income or loss to retained earnings for stranded tax effects as a result of the newly enacted federal corporate income tax rate under the Tax Legislation. This guidance is effective for interim and annual periods beginning after December 15, 2018 , with early adoption permitted. We adopted the guidance during the first quarter of fiscal year 2019 , and did not reclassify the stranded income tax benefit resulting from adoption of the Tax Legislation from AOCL into earnings. There were no other impacts to the Company’s financial condition, result of operations, or cash flows. Future Adoption of Accounting Pronouncements Cloud Computing. In August 2018 , the FASB issued ASU No. 2018-15, Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. This new guidance aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). This new guidance is effective for fiscal years beginning after December 15, 2019 , and for interim periods within those fiscal years and may be adopted on a prospective or retrospective basis. We will adopt the accounting standard on a prospective basis and do not expect adoption to have a material effect on the Company’s financial condition, results of operations, or cash flows. Credit Losses . In June 2016 , the FASB issued ASU No. 2016-13, Measurement of Credit Losses on Financial Instruments. This new guidance requires an entity to assess impairment of its financial instruments based on its estimate of expected credit losses. Initial adoption of ASU 2016-13 is required to be reported on a modified retrospective basis, with a cumulative-effect adjustment to retained earnings as of the beginning of the year of adoption, except for certain provisions that are required to be applied prospectively. This guidance is effective for fiscal years beginning after December 15, 2019 , and for interim reporting periods within those fiscal years. We will adopt the accounting standard on a modified retrospective basis and do not expect adoption to have a material effect on the Company’s financial condition, results of operations, or cash flows. |
Business and Significant Acco_3
Business and Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Accounting Policies [Abstract] | |
Schedule of Property and Equipment, Net | We depreciate P&E for financial accounting purposes using the straight-line method over the following estimated useful lives: Buildings 34 years Equipment 3 - 7 years Information technology hardware and software (a) 2 - 5 years Furniture and fixtures 6 years Leasehold improvements (b) 10 years P&E under capital leases (b) 10 years ____________ (a) Costs of developing or obtaining software for internal use, such as direct costs of materials or services and internal payroll costs related to the software development projects, are capitalized to information technology hardware and software. (b) Depreciation of leasehold improvements is recognized over the shorter of the estimated useful life of the asset or the term of the lease. The term of the lease includes renewal options for additional periods if the exercise of the renewal is considered to be reasonably assured. In thousands As of As of Property and equipment, net: Land and building $ 3,632 $ 3,632 Equipment 188,593 160,958 Information technology hardware and software 115,283 101,809 Furniture and fixtures 55,146 48,992 Leasehold improvements 213,124 186,499 Construction in progress 26,517 40,697 Right of use assets under finance leases 36,437 25,446 638,732 568,033 Less: Accumulated depreciation 271,965 212,916 $ 366,767 $ 355,117 |
Details of Certain Balance Sh_2
Details of Certain Balance Sheet Accounts (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Accounts Receivable, Net | In thousands As of As of Accounts receivable, net: Trade receivables $ 28,635 $ 27,356 Credit card receivables 14,173 16,636 Tenant improvement allowances receivable (1) — 5,149 Other receivables 4,707 4,206 Allowance for uncollectible accounts (3,040 ) (2,612 ) $ 44,475 $ 50,735 (1) TIA receivable is used to measure current operating lease obligations on the balance sheet under new lease accounting guidance effective in fiscal year 2019. See Note 8. “Leases” for further details. |
Schedule of Inventories | In thousands As of As of Inventories: Raw materials and work in process (1) $ 65,179 $ 59,946 Finished goods 62,377 56,076 $ 127,556 $ 116,022 (1) Due to the immaterial amount of estimated work in process and the short lead times for the conversion of raw materials to finished goods, the Company does not separately present raw materials and work in process. |
Schedule of Property and Equipment, Net | We depreciate P&E for financial accounting purposes using the straight-line method over the following estimated useful lives: Buildings 34 years Equipment 3 - 7 years Information technology hardware and software (a) 2 - 5 years Furniture and fixtures 6 years Leasehold improvements (b) 10 years P&E under capital leases (b) 10 years ____________ (a) Costs of developing or obtaining software for internal use, such as direct costs of materials or services and internal payroll costs related to the software development projects, are capitalized to information technology hardware and software. (b) Depreciation of leasehold improvements is recognized over the shorter of the estimated useful life of the asset or the term of the lease. The term of the lease includes renewal options for additional periods if the exercise of the renewal is considered to be reasonably assured. In thousands As of As of Property and equipment, net: Land and building $ 3,632 $ 3,632 Equipment 188,593 160,958 Information technology hardware and software 115,283 101,809 Furniture and fixtures 55,146 48,992 Leasehold improvements 213,124 186,499 Construction in progress 26,517 40,697 Right of use assets under finance leases 36,437 25,446 638,732 568,033 Less: Accumulated depreciation 271,965 212,916 $ 366,767 $ 355,117 |
Schedule of Other Payables and Accrued Expenses | In thousands As of As of Other payables and accrued expenses: Employee compensation and benefits $ 28,347 $ 20,529 Self-insurance liabilities 8,403 8,117 Capital expenditures 6,782 14,078 Advertising 2,919 2,076 Reserves for customer returns and remakes 7,158 4,645 Legacy management & services agreement 4,461 5,383 Fair value of derivative liabilities 6,382 3,130 Supplies and other store support expenses 2,926 4,929 Litigation settlements 3,840 3,938 Other 11,611 14,179 $ 82,829 $ 81,004 |
Schedule of Other Non-current Liabilities | In thousands As of As of Other non-current liabilities: Fair value of derivative liabilities $ 1,603 $ 3,505 Tenant improvements (1) — 30,851 Deferred rental expenses (1) — 11,926 Self-insurance liabilities 7,283 5,114 Other 4,845 2,568 $ 13,731 $ 53,964 (1) Tenant improvements and deferred rental expenses are used to measure ROU assets on the balance sheet under new lease accounting guidance effective in fiscal year 2019. See Note 8. “Leases” for further details. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The gross carrying amount and accumulated impairment of the Company’s goodwill balances for 2019 and 2018 are as follows: As of As of In thousands Gross Carrying Accumulated Gross Carrying Accumulated Owned & Host Segment $ 736,901 $ (19,357 ) $ 736,901 $ (19,357 ) Legacy Segment 60,069 — 60,069 — Corporate/Other 8,107 (8,107 ) 8,107 (8,107 ) $ 805,077 $ (27,464 ) $ 805,077 $ (27,464 ) |
Schedule of Indefinite-Lived Intangible Assets | Indefinite-lived intangible assets by major asset class are as follows: In thousands As of As of Trademarks and trade names: America's Best $ 200,547 $ 200,547 Eyeglass World 40,000 40,000 $ 240,547 $ 240,547 |
Schedule of Finite-Lived Intangible Assets | Finite-lived, amortizing intangible assets by major asset class are as follows: As of As of In thousands Gross Carrying Accumulated Remaining Life Gross Carrying Accumulated Remaining Life Contracts and relationships: Legacy $ 65,000 $ 34,247 5 $ 65,000 $ 28,359 6 Fred Meyer 35,000 8,820 17 35,000 7,303 18 Customer database 4,400 4,400 — 4,400 4,224 — Other 746 739 — 738 720 — $ 105,146 $ 48,206 $ 105,138 $ 40,606 |
Schedule of Aggregate Future Estimated Amortization Expense | Aggregate future estimated amortization expense is shown in the following table: Fiscal Year In thousands 2020 $ 7,550 2021 7,408 2022 7,406 2023 7,405 2024 7,405 Thereafter 19,766 $ 56,940 |
Long-term Debt (Tables)
Long-term Debt (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt | Long-term debt consists of the following: In thousands As of As of First Lien - Term Loan B $ — $ 364,300 First Lien - Term Loan A — 200,000 Term Loan, due July 18, 2024 392,375 — Revolving Credit Facility, due July 18, 2024 148,000 — Total term loans before unamortized discount 540,375 564,300 Unamortized discount (3,979 ) (10,673 ) Total term loans 536,396 553,627 Less current maturities (10,500 ) (5,000 ) Term loans - non-current portion 525,896 548,627 Finance lease obligations 33,296 24,485 Less current maturities (3,259 ) (2,567 ) Long-term debt, less current portion and unamortized debt discount $ 555,933 $ 570,545 |
Schedule of Annual Maturities of Debt | Scheduled annual maturities of debt are as follows: Fiscal Year In thousands 2020 $ 10,500 2021 10,500 2022 13,125 2023 21,000 2024 485,250 $ 540,375 |
Stock Incentive Plans (Tables)
Stock Incentive Plans (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Stock Compensation Expense | The following table summarizes stock compensation expense under the Company’s plans, which is included in SG&A in the accompanying statements of operations: In thousands Fiscal Year 2019 Fiscal Year 2018 Fiscal Year 2017 Stock options $ 8,562 $ 19,397 $ 4,835 RSUs and PSUs 3,655 1,386 290 RSAs 334 108 27 Associate stock purchase plan 119 48 — Total stock based compensation expense $ 12,670 $ 20,939 $ 5,152 Income tax benefit (3,237 ) (5,367 ) (1,320 ) After-tax share based compensation expense $ 9,433 $ 15,572 $ 3,832 Stock options RSUs and PSUs RSAs Unrecognized compensation cost ( in thousands ) $ 4,158 $ 12,861 $ 354 Expected remaining weighted-average period of expense recognition (in years) 2.15 2.99 0.88 |
Schedule of Restricted Stock and Restricted Stock Units Activity | The following summarizes RSU, PSU and RSA awards activity: Service-based restricted stock unit (RSU) awards Weighted average grant date fair value ($) Performance-based restricted stock unit (PSU) awards Weighted average grant date fair value ($) Restricted stock (RSA) awards Weighted average grant date fair value ($) Outstanding at December 29, 2018 98,076 22.00 — — 11,431 32.08 Granted 373,082 29.56 116,046 34.50 13,712 29.18 Vested (82,640 ) 26.36 — — (4,515 ) 29.52 Forfeited (12,373 ) 28.45 (3,032 ) 35.19 — — Outstanding at December 28, 2019 376,145 28.45 113,014 34.49 20,628 30.71 |
Service-based options | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Stock Option Activity | The following table summarizes service-based stock option activity, including service-based options under the Vision Holding Corp. Amended and Restated 2013 Equity Incentive Plan, the 2014 Stock Incentive Plan, and the 2017 Omnibus Incentive Plan. Amounts also reflect the effects of modifications to exercise prices resulting from the recapitalization dividend discussed in Note 9 . “Related Party Transactions”. Number of Options Outstanding Weighted Average Exercise Price ($) Weighted Average Remaining Contractual Life (Years) Aggregate Intrinsic Value (In Thousands) ($) Outstanding options at December 29, 2018 2,583,380 8.48 Granted 300,201 34.18 Exercised (939,407 ) 6.45 Forfeited (38,016 ) 16.21 Outstanding options at December 28, 2019 1,906,158 13.37 6.14 38,132 Vested and exercisable at December 28, 2019 1,173,256 7.90 4.94 29,576 |
Schedule of Valuation Assumptions for Stock Option Grants | The fair value of service-based options was estimated using the Black-Scholes-Merton option pricing model. The following is a summary of the assumptions used in this model for service-based options: 2019 2017 Expected volatility 34.5% to 37.1% 60.4 % Expected term range (in years) 5.75 to 6.50 6.50 Expected risk-free interest rate 1.68% to 2.94% 1.60% to 2.00% |
Performance-based options | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Stock Option Activity | The following table summarizes performance-based stock option activity: Number of Options Outstanding Weighted Average Exercise Price ($) Weighted Average Remaining Contractual Life (Years) Aggregate Intrinsic Value (In Thousands) ($) Outstanding options at December 29, 2018 4,143,781 6.23 Exercised (1,281,653 ) 6.10 Forfeited (1,258,280 ) 5.87 Outstanding options at December 28, 2019 1,603,848 6.60 4.89 42,499 Vested and exercisable at December 28, 2019 1,473,414 5.79 4.65 40,235 |
Schedule of Valuation Assumptions for Stock Option Grants | The following is a summary of the assumptions used in this model for performance options granted in 2017 : 2017 Expected volatility range 48.2% to 54.0% Expected term range (in years) 2.37 to 2.78 Expected risk-free interest rate 1.38% to 1.51% |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax (Benefit) Provision | The income tax provision (benefit) consists of: In thousands Fiscal Year Fiscal Year Fiscal Year Current income tax: Federal $ 443 $ 174 $ 5 State 864 381 1,082 Deferred income tax: Federal (2,972 ) (15,687 ) (40,136 ) State (644 ) (3,653 ) 139 Income tax provision (benefit) $ (2,309 ) $ (18,785 ) $ (38,910 ) |
Schedule of Effective Income Tax Rate Reconciliation | Our income tax provision (benefit) differs from the amounts computed by multiplying earnings before income taxes by the statutory federal income tax rate as shown in the following table: In thousands Fiscal Year Fiscal Year Fiscal Year Federal income tax provision at statutory rate $ 6,403 $ 1,022 $ 1,480 State income tax provision, net of federal income tax 1,387 226 165 Increase (decrease) in deferred tax asset valuation allowance (386 ) 318 769 Goodwill impairment — 3,879 — Benefit of tax legislation — — (42,089 ) Tax benefit of equity-based compensation deductions (10,089 ) (25,544 ) — Other, net 376 1,314 765 Net income tax provision (benefit) $ (2,309 ) $ (18,785 ) $ (38,910 ) Effective income tax rate (7.6 )% (385.9 )% (920.3 )% |
Schedule of Deferred Tax Assets and Liabilities | The sources of the differences between the financial accounting and tax bases of our assets and liabilities that give rise to the deferred tax assets and deferred tax liabilities and the tax effects of each are as follows: In thousands As of As of Deferred tax assets: NOL carry-forwards $ 12,006 $ 13,614 Deferred interest expense carry-forwards 3,733 4,655 AMT payment and employment credits 4,155 4,679 Deferred revenue 5,145 4,984 Accrued expenses and reserves 12,542 11,370 Loss on equity and other investments 1,960 1,493 Stock option compensation 5,505 5,893 Unrealized losses on hedging instruments 2,039 1,700 Other 942 1,193 Subtotal 48,027 49,581 Valuation allowances 3,705 1,614 Total net deferred tax assets 44,322 47,967 Deferred tax liabilities: Depreciation of property and equipment (27,953 ) (32,631 ) Amortization of intangible assets (74,529 ) (75,422 ) Other (1,986 ) (1,854 ) Total deferred tax liabilities (104,468 ) (109,907 ) Net deferred tax liabilities $ (60,146 ) $ (61,940 ) |
Revenue From Contracts With C_2
Revenue From Contracts With Customers (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Revenues | The following disaggregation of revenues depicts our revenues based on the timing of revenue recognition: In thousands Fiscal Year Fiscal Year Revenues recognized at a point in time $ 1,578,379 $ 1,397,801 Revenues recognized over time 145,952 139,053 Total net revenue $ 1,724,331 $ 1,536,854 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Leases [Abstract] | |
Schedule of Lease Type and Classification on Balance Sheet | In thousands As of Type Classification ASSETS Finance Property and equipment, net (a) $ 28,128 Operating Right of use assets (b) 348,090 Total leased assets $ 376,218 LIABILITIES Current Liabilities: Finance Current maturities of long-term debt and finance lease obligations $ 3,259 Operating Current operating lease obligations (c) 51,937 Other non-current liabilities: Finance Long-term debt and finance lease obligations, less current portion and debt discount 30,037 Operating Non-current operating lease obligations 331,769 Total lease liabilities $ 417,002 As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the net present value of minimum lease payments. We used the incremental borrowing rate on December 30, 2018 for operating leases that commenced prior to that date. _________ (a) Finance lease assets are recorded net of accumulated amortization of $8.3 million as of December 28, 2019 . (b) TIA of $35.2 million and deferred rent of $15.0 million are treated as reductions of lease payments used to measure ROU assets as of December 28, 2019 . (c) Current operating lease liabilities are measured net of TIA receivables of $5.9 million as of December 28, 2019 . |
Schedule of Lease Cost | In thousands Fiscal Year Operating lease cost Fixed lease cost (a) $ 73,971 Variable lease cost (b) 26,466 Sublease income (c) (2,930 ) Finance lease cost Amortization of finance lease assets 4,418 Interest on finance lease liabilities 3,573 Net lease cost $ 105,498 (a) Includes short-term leases, which are immaterial. (b) Includes costs for insurance, real estate taxes and common area maintenance expenses, which are variable as well as lease costs above minimum thresholds for Fred Meyer stores and lease costs for Military stores. (c) Income from sub-leasing of stores includes rental income from operating lease properties to ophthalmologists and optometrists who are independent contractors. |
Schedule of Lease Terms and Discount Rate | Lease Term and Discount Rate Fiscal Year Weighted average remaining lease term (months) Operating leases 82 Finance leases 88 Weighted average discount rate (a) Operating leases 4.6 % Finance leases (b) 13.1 % (a) The discount rate used to determine the lease assets and lease liabilities was derived upon considering (i) incremental borrowing rates on our long-term debt; (ii) fixed rates we pay on our interest rate swaps; (iii) LIBOR margins for issuers of similar credit rating; and (iv) effect of collateralization. As a majority of our leases are five-year and 10-year leases, we determined a lease discount rate for such tenors and determined this discount rate is reasonable for leases that were entered into during the period. (b) The discount rate on finance leases is higher than operating leases because the present value of minimum lease payments was higher than the fair value of leased properties for certain leases entered into prior to adoption of ASC 842. The discount rate differential for those leases is not material to our results of operations. |
Schedule of Operating Lease Cash Flows | In thousands Fiscal Year Other Information Cash paid for amounts included in the measurement of lease liabilities Operating cash outflows - operating leases $ 75,330 |
Schedule of Maturity for Operating Lease Liabilities | The following table summarizes the maturity of our lease liabilities as of December 28, 2019 : In thousands Operating Leases (a) Finance Leases (b) Fiscal Year 2020 $ 67,240 $ 6,742 2021 74,451 7,127 2022 67,115 7,062 2023 59,981 6,088 2024 53,036 4,520 Thereafter 130,762 15,561 Total lease liabilities 452,585 47,100 Less: Interest 68,879 13,804 Present value of lease liabilities (c) $ 383,706 $ 33,296 _________ (a) Operating lease payments include $72.2 million related to options to extend lease terms that are reasonably certain of being exercised. (b) Finance lease payments include $1.7 million related to options to extend lease terms that are reasonably certain of being exercised. (c) The present value of lease liabilities excludes $16.4 million of legally binding minimum lease payments for leases signed but not yet commenced. |
Schedule of Maturity for Finance Lease Liabilities | The following table summarizes the maturity of our lease liabilities as of December 28, 2019 : In thousands Operating Leases (a) Finance Leases (b) Fiscal Year 2020 $ 67,240 $ 6,742 2021 74,451 7,127 2022 67,115 7,062 2023 59,981 6,088 2024 53,036 4,520 Thereafter 130,762 15,561 Total lease liabilities 452,585 47,100 Less: Interest 68,879 13,804 Present value of lease liabilities (c) $ 383,706 $ 33,296 _________ (a) Operating lease payments include $72.2 million related to options to extend lease terms that are reasonably certain of being exercised. (b) Finance lease payments include $1.7 million related to options to extend lease terms that are reasonably certain of being exercised. (c) The present value of lease liabilities excludes $16.4 million of legally binding minimum lease payments for leases signed but not yet commenced. |
Schedule of Future Minimum Rental Payments for Operating Leases | As of fiscal year end 2018, aggregate future minimum rental payments under our operating leases were as follows: Fiscal Year In thousands 2019 $ 69,372 2020 63,218 2021 56,219 2022 49,303 2023 42,545 Thereafter 126,388 $ 407,045 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Agreements with Equity Sponsors | Under certain agreements we have entered into with KKR and Berkshire, we recorded the following expenses: In thousands Fiscal Year Fiscal Year Fiscal Year KKR $ — $ — $ 7,259 Berkshire $ — $ — $ 955 Balances and transactions related to our non-consolidated investee included in our consolidated balance sheets and statements of operations were as follows: In thousands As of As of Balance sheets Other assets (1) $ 704 $ 1,522 (1) Other assets represent a loan receivable from our investee. In thousands Fiscal Year Fiscal Year Fiscal Year Statements of operations Licensing fees (SG&A) $ 132 $ 172 $ 955 |
Equity in Net Assets of Non-C_2
Equity in Net Assets of Non-Consolidated Investee (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of Financial Information and Transactions with Equity Method Affiliate | Summarized balance sheet information for our investee is as follows: In thousands As of As of Current assets $ 1,351 $ 2,197 Non-current assets 450 558 Total assets 1,801 2,755 Current liabilities 3,821 6,321 Non-current liabilities 8,200 3,000 Total liabilities 12,021 9,321 Net assets $ (10,220 ) $ (6,566 ) Summarized income statement information for our investee is as follows: In thousands Fiscal Year Fiscal Year Fiscal Year Revenues $ 6,046 $ 3,871 $ 6,244 Net loss $ (5,481 ) $ (5,632 ) $ (3,433 ) National Vision’s share of net loss $ (1,804 ) $ (1,304 ) $ (1,001 ) |
Schedule of Transactions with Affiliate | Under certain agreements we have entered into with KKR and Berkshire, we recorded the following expenses: In thousands Fiscal Year Fiscal Year Fiscal Year KKR $ — $ — $ 7,259 Berkshire $ — $ — $ 955 Balances and transactions related to our non-consolidated investee included in our consolidated balance sheets and statements of operations were as follows: In thousands As of As of Balance sheets Other assets (1) $ 704 $ 1,522 (1) Other assets represent a loan receivable from our investee. In thousands Fiscal Year Fiscal Year Fiscal Year Statements of operations Licensing fees (SG&A) $ 132 $ 172 $ 955 |
Deferred Revenue (Tables)
Deferred Revenue (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Roll-Forward of Deferred Revenue | The following depicts a roll-forward of deferred revenue: Fiscal Year 2019 In thousands Product Protection Plans Eye Care Clubs HMO Memberships Total Beginning of the year $ 28,775 43,488 $ 15 $ 72,278 Sold 63,105 52,438 — 115,543 Revenue recognized (60,969 ) (49,440 ) (12 ) (110,421 ) End of year $ 30,911 $ 46,486 $ 3 $ 77,400 Current $ 30,547 $ 25,320 $ 3 $ 55,870 Non-current 364 21,166 — 21,530 $ 30,911 $ 46,486 $ 3 $ 77,400 Fiscal Year 2018 In thousands Product Protection Plans Eye Care HMO Memberships Total Beginning of the year $ 26,731 $ 67,430 $ 54 $ 94,215 Adjustment for adoption of ASU 2014-09 — (25,776 ) — (25,776 ) Beginning of the year - As Adjusted 26,731 41,654 54 68,439 Sold 58,860 47,923 1,384 108,167 Revenue recognized (56,816 ) (46,089 ) (1,423 ) (104,328 ) End of year $ 28,775 $ 43,488 $ 15 $ 72,278 Current $ 28,403 $ 23,726 $ 15 $ 52,144 Non-current 372 19,762 — 20,134 $ 28,775 $ 43,488 $ 15 $ 72,278 |
Schedule of Expected Period of Recognition of Deferred Revenue in Future Operating Results | Deferred revenue recorded as of fiscal year end 2019 is expected to be reflected in future operating results as follows: Fiscal Year In thousands 2020 $ 55,870 2021 16,125 2022 5,185 2023 170 2024 50 $ 77,400 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Product Warranty Liability | The following details the activity in our product warranty liability accounts: In thousands Fiscal Year Fiscal Year Beginning of year balance $ 1,742 $ 1,593 Accrued obligation 33,014 29,943 Claims paid (32,875 ) (29,794 ) End of year balance $ 1,881 $ 1,742 |
Interest Rate Derivatives (Tabl
Interest Rate Derivatives (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [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 Maturity Date Other Payables and Accrued Expenses Other Liabilities AOCL, Net of Tax (1) As of $ 430,000 March 2021 $ 6,382 $ 1,603 $ 3,814 As of $ 465,000 March 2021 $ 3,130 $ 3,505 $ 2,810 (1) Includes stranded income tax benefit of $2.1 million within AOCL from adopting provisions of the Tax Cuts and Jobs Act of 2017 during the year ended December 30, 2017. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Reconciliation of Basic and Diluted EPS Calculations | A reconciliation of the numerators and denominators of the basic and diluted EPS calculations is as follows: In thousands, except EPS Fiscal Year Fiscal Year Fiscal Year Net income $ 32,798 $ 23,653 $ 43,138 Weighted average shares outstanding for basic EPS 78,608 75,899 59,895 Effect of dilutive securities: Stock options 3,019 3,129 2,140 Restricted Stock 56 13 — Weighted average shares outstanding for diluted EPS 81,683 79,041 62,035 Basic EPS $ 0.42 $ 0.31 $ 0.72 Diluted EPS $ 0.40 $ 0.30 $ 0.70 Anti-dilutive options, RSUs outstanding excluded from EPS 294 — 254 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Financial Data by Segment | The following is a summary of certain financial data for each of our segments. Reportable segment information is presented on the same basis as our consolidated financial statements, except for net revenue, which is presented on a cash basis, including point of sales for managed care payors and excluding the effects of unearned and deferred revenue, consistent with what the CODM regularly reviews. Asset information is not included in the following summary since the CODM does not regularly review such information for the reportable segments. Fiscal Year 2019 In thousands Owned & Host Legacy Corporate/Other Reconciliations Total Segment product revenues $ 1,076,315 $ 105,450 $ 245,206 $ (835 ) $ 1,426,136 Segment services and plans revenues 248,685 54,599 12 (5,101 ) 298,195 Total net revenue 1,325,000 160,049 245,218 (5,936 ) 1,724,331 Cost of products 310,790 48,712 215,052 (203 ) 574,351 Cost of services and plans 206,878 25,289 1 — 232,168 Total costs applicable to revenue 517,668 74,001 215,053 (203 ) 806,519 SG&A 508,239 56,235 180,014 — 744,488 Asset impairment — — 8,894 — 8,894 Other expense, net — — 3,611 — 3,611 Loss on extinguishment of debt — — 9,786 — 9,786 EBITDA $ 299,093 $ 29,813 $ (172,140 ) $ (5,733 ) Depreciation and amortization 87,244 Interest expense, net 33,300 Income before income taxes $ 30,489 Fiscal Year 2018 In thousands Owned & Host Legacy Corporate/Other Reconciliations Total Segment product revenues $ 956,355 $ 103,890 $ 208,875 $ 492 $ 1,269,612 Segment services and plans revenues 217,047 50,522 3,552 (3,879 ) 267,242 Total net revenue 1,173,402 154,412 212,427 (3,387 ) 1,536,854 Cost of products 280,720 46,986 183,459 241 511,406 Cost of services and plans 178,362 20,272 3,531 — 202,165 Total costs applicable to revenue 459,082 67,258 186,990 241 713,571 SG&A 457,618 54,091 175,767 — 687,476 Asset impairment — — 17,630 — 17,630 Other expense, net — — 1,487 — 1,487 Debt issuance cost — — 200 — 200 EBITDA $ 256,702 $ 33,063 $ (169,647 ) $ (3,628 ) Depreciation and amortization 74,339 Interest expense, net 37,283 Income before income taxes $ 4,868 Fiscal Year 2017 In thousands Owned & Host Legacy Corporate/Other Reconciliations Total Segment product revenues $ 847,866 $ 103,887 $ 179,718 $ (2,158 ) $ 1,129,313 Segment services and plans revenues 190,701 49,955 12,172 (6,833 ) 245,995 Total net revenue 1,038,567 153,842 191,890 (8,991 ) 1,375,308 Cost of products 248,548 48,275 159,789 (534 ) 456,078 Cost of services and plans 153,691 16,624 10,573 — 180,888 Total costs applicable to revenue 402,239 64,899 170,362 (534 ) 636,966 SG&A 403,848 52,705 143,457 — 600,010 Asset impairment — — 4,117 — 4,117 Debt issuance cost — — 4,527 — 4,527 Litigation settlement — — 7,000 — 7,000 Other expense, net — — 950 — 950 EBITDA $ 232,480 $ 36,238 $ (138,523 ) $ (8,457 ) Depreciation and amortization 61,974 Interest expense, net 55,536 Income before income taxes $ 4,228 |
Schedule of Net Product Revenue | The following table presents our consolidated net product revenue information: In thousands Fiscal Year Fiscal Year Fiscal Year Net Product Sales Eyeglasses and sunglasses $ 947,729 $ 851,328 $ 763,268 Contact lenses 471,042 410,839 358,808 Accessories and other 7,365 7,445 7,237 Total net product revenues $ 1,426,136 $ 1,269,612 $ 1,129,313 |
Restricted Cash (Tables)
Restricted Cash (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Cash and Cash Equivalents [Abstract] | |
Schedule of Cash, Cash Equivalents, and Restricted Cash | The following table provides a reconciliation of cash and cash equivalents reported within the consolidated balance sheets to the total of cash, cash equivalents and restricted cash shown in the consolidated statement of cash flows: In thousands Fiscal Year Fiscal Year Fiscal Year Cash and cash equivalents $ 39,342 $ 17,132 $ 4,208 Restricted cash included in other assets 965 866 986 Total cash, cash equivalents and restricted cash $ 40,307 $ 17,998 $ 5,194 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Loss | The following table presents the changes in AOCL, net of tax during the fiscal years 2019 , 2018 and 2017 , respectively: In thousands Fiscal Year Fiscal Year Fiscal Year Cash flow hedging activity Balance at beginning of fiscal year $ (2,810 ) $ (9,868 ) $ (14,556 ) Other comprehensive income (loss) before reclassification (5,814 ) 3,182 (1,051 ) Tax effect of other comprehensive income (loss) before reclassification 1,489 (815 ) 436 Amount reclassified from AOCL 4,464 6,306 8,664 Tax effect of amount reclassified from AOCL (1,143 ) (1,615 ) (3,361 ) Net current period other comprehensive income (loss), net of tax (1,004 ) 7,058 4,688 Balance at end of fiscal year $ (3,814 ) $ (2,810 ) $ (9,868 ) |
Quarterly Financial Informati_2
Quarterly Financial Information (Unaudited) (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | The following tables present unaudited quarterly financial information: Fiscal Year 2019 In thousands, except EPS Fourth Quarter Third Quarter Second Quarter First Quarter Total net revenue $ 401,763 $ 431,902 $ 429,451 $ 461,215 Total costs applicable to revenue $ 187,542 $ 204,502 $ 202,506 $ 211,969 Income from operations $ 8,361 $ 11,112 $ 21,702 $ 32,400 Net income $ 3,920 $ 1,192 $ 10,257 $ 17,429 Weighted-average shares used in computing basic EPS 79,271 78,474 78,318 78,205 Weighted-average shares used in computing diluted EPS 81,785 81,561 81,424 81,466 Basic EPS $ 0.05 $ 0.02 $ 0.13 $ 0.22 Diluted EPS $ 0.05 $ 0.01 $ 0.13 $ 0.21 Anti-dilutive options, RSUs outstanding excluded from EPS 350 315 391 356 Fiscal Year 2018 In thousands, except EPS Fourth Quarter Third Quarter Second Quarter First Quarter Total net revenue $ 355,922 $ 387,425 $ 385,532 $ 407,975 Total costs applicable to revenue $ 173,470 $ 182,588 $ 177,059 $ 180,454 Income (loss) from operations $ (19,387 ) $ (2,083 ) $ 24,973 $ 38,848 Net income (loss) $ (18,440 ) $ 5,171 $ 12,467 $ 24,455 Weighted-average shares used in computing basic EPS 77,526 76,118 75,249 74,714 Weighted-average shares used in computing diluted EPS 77,526 79,710 77,858 77,837 Basic EPS $ (0.24 ) $ 0.07 $ 0.17 $ 0.33 Diluted EPS $ (0.24 ) $ 0.06 $ 0.16 $ 0.31 Anti-dilutive options outstanding excluded from EPS 3,130 — — — |
Business and Significant Acco_4
Business and Significant Accounting Policies - Nature of Operations (Details) | Dec. 28, 2019storestore_brand | Dec. 29, 2018store |
Accounting Policies [Abstract] | ||
Number of retail optical locations | store | 1,151 | 1,082 |
Number of store brands | store_brand | 5 |
Business and Significant Acco_5
Business and Significant Accounting Policies - Initial and Secondary Public Offerings (Details) $ / shares in Units, $ in Thousands | Aug. 12, 2019$ / sharesshares | Oct. 30, 2017USD ($)$ / sharesshares | Dec. 28, 2019USD ($)$ / shares | Dec. 29, 2018USD ($)public_offering$ / sharesshares | Dec. 30, 2017USD ($) |
Class of Stock [Line Items] | |||||
Repayments of long-term debt | $ 591,925 | $ 204,275 | $ 367,660 | ||
Extinguishment of debt | $ 353,300 | ||||
Transaction-related costs expected during fourth quarter | 4,800 | ||||
Component of proceeds from initial public offering to be used for general corporate purposes | 11,000 | ||||
Number of underwritten public offerings | public_offering | 3 | ||||
Common stock, par value (in usd per share) | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | ||
Shares repurchased (shares) | shares | 819,134 | ||||
Shares repurchased price per share (in usd per share) | $ / shares | $ 30.52 | ||||
Non-cash stock-based compensation expense | $ 12,670 | $ 20,939 | 5,152 | ||
KKR | |||||
Class of Stock [Line Items] | |||||
Termination fees to related party | $ 3,600 | 0 | 0 | 7,259 | |
Ownership percentage in Company retained by equity sponsor (percent) | 58.20% | ||||
Berkshire | |||||
Class of Stock [Line Items] | |||||
Termination fees to related party | $ 800 | 0 | $ 0 | $ 955 | |
Ownership percentage in Company retained by equity sponsor (percent) | 13.60% | ||||
Term Loan | Second Lien Term Loans | |||||
Class of Stock [Line Items] | |||||
Repayments of long-term debt | $ 125,000 | ||||
Term Loan | First Lien - Term Loan B | |||||
Class of Stock [Line Items] | |||||
Repayments of long-term debt | $ 235,000 | ||||
IPO | |||||
Class of Stock [Line Items] | |||||
Shares issued in public offering (shares) | shares | 18,170,000 | ||||
Shares issued, offering price (in usd per share) | $ / shares | $ 22 | ||||
Net proceeds from initial public offering | $ 375,800 | ||||
Underwriting discounts and commissions | 24,000 | ||||
IPO | KKR | |||||
Class of Stock [Line Items] | |||||
Underwriting discounts and commissions | $ 700 | ||||
Underwriter Option | |||||
Class of Stock [Line Items] | |||||
Shares issued in public offering (shares) | shares | 2,370,000 | ||||
Underwritten Public Offering | |||||
Class of Stock [Line Items] | |||||
Shares issued in public offering (shares) | shares | 9,149,908 | 42,914,852 | |||
Share-Based Payment Arrangement, Secondary Offering Vesting Event | |||||
Class of Stock [Line Items] | |||||
Non-cash stock-based compensation expense | 4,200 | ||||
Selling, General and Administrative Expenses | |||||
Class of Stock [Line Items] | |||||
Long-term incentive compensation expense | 2,800 | ||||
Stock offering expense | $ 400 |
Business and Significant Acco_6
Business and Significant Accounting Policies - Certificate of Incorporation and Bylaws, and Stock Split (Details) | Oct. 24, 2017 | Dec. 28, 2019shares | Dec. 29, 2018shares | Oct. 30, 2017$ / sharesshares |
Accounting Policies [Abstract] | ||||
Common stock, authorized (shares) | 200,000,000 | 200,000,000 | 200,000,000 | |
Preferred stock, authorized (shares) | 50,000,000 | |||
Preferred stock, par value (in usd per share) | $ / shares | $ 0.01 | |||
Stock split conversion ratio | 1.96627 |
Business and Significant Acco_7
Business and Significant Accounting Policies - Accounts Receivable and Inventories (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Concentration Risk [Line Items] | |||
Bad debt expense recognized on receivables | $ 8,210 | $ 7,107 | $ 8,035 |
Supplier Concentration Risk | Contact Lenses | Three Key Vendors | |||
Concentration Risk [Line Items] | |||
Concentration risk (percent) | 92.00% | ||
Supplier Concentration Risk | Frames | Two Key Vendors | |||
Concentration Risk [Line Items] | |||
Concentration risk (percent) | 51.00% | ||
Supplier Concentration Risk | Lenses | One Key Vendor | |||
Concentration Risk [Line Items] | |||
Concentration risk (percent) | 88.00% |
Business and Significant Acco_8
Business and Significant Accounting Policies - Property and Equipment, Goodwill and Intangible Assets (Details) - USD ($) | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Property and Equipment | |||
Impairment of long-lived assets held-for-use, discount rate | 8.00% | ||
Impairment of capitalized software costs | $ 0 | $ 0 | $ 1,500,000 |
Minimum | |||
Intangible Assets | |||
Definite-lived intangible assets, estimated useful life (in years) | 4 years | ||
Maximum | |||
Intangible Assets | |||
Definite-lived intangible assets, estimated useful life (in years) | 23 years | ||
Long-lived tangible store assets held and used | |||
Property and Equipment | |||
Impairment of long-lived assets held and used | $ 8,900,000 | $ 2,500,000 | $ 1,600,000 |
Assets impaired during 2018 | |||
Property and Equipment | |||
Estimated fair value of impaired long-lived assets held and used | 16,600,000 | ||
Assets impaired during 2017 | |||
Property and Equipment | |||
Estimated fair value of impaired long-lived assets held and used | $ 100,000 | ||
Buildings | |||
Property and Equipment | |||
Estimated useful life (in years) | 34 years | ||
Equipment | Minimum | |||
Property and Equipment | |||
Estimated useful life (in years) | 3 years | ||
Equipment | Maximum | |||
Property and Equipment | |||
Estimated useful life (in years) | 7 years | ||
Information technology hardware and software | Minimum | |||
Property and Equipment | |||
Estimated useful life (in years) | 2 years | ||
Information technology hardware and software | Maximum | |||
Property and Equipment | |||
Estimated useful life (in years) | 5 years | ||
Furniture and fixtures | |||
Property and Equipment | |||
Estimated useful life (in years) | 6 years | ||
Leasehold improvements | |||
Property and Equipment | |||
Estimated useful life (in years) | 10 years | ||
P&E under capital leases | |||
Property and Equipment | |||
Estimated useful life (in years) | 10 years |
Business and Significant Acco_9
Business and Significant Accounting Policies - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2017 | |
Accounting Policies [Abstract] | ||||
Reinsurance retention level per claim | $ 300 | |||
Reinsurance retention level per individual | 200 | |||
Estimated insurance recoveries, current | 1,100 | $ 800 | ||
Estimated insurance recoveries, non-current | 2,400 | 1,100 | ||
Self-insurance reserves, current | 8,403 | 8,117 | ||
Self-insurance liabilities | 7,283 | 5,114 | ||
Advertising expenses | 113,300 | 107,500 | $ 93,200 | |
Revenue Recognition [Line Items] | ||||
Deferred revenue, current | 55,870 | 52,144 | ||
Deferred revenue, noncurrent | 21,530 | 20,134 | ||
Deferred income taxes, net | 60,146 | 61,940 | ||
Retained earnings | $ 107,132 | $ 74,840 | ||
Minimum | ||||
Revenue Recognition [Line Items] | ||||
Delivery time used in period end unearned revenue calculation | 7 days | |||
Maximum | ||||
Revenue Recognition [Line Items] | ||||
Delivery time used in period end unearned revenue calculation | 10 days | |||
Difference between Revenue Guidance in Effect before and after Topic 606 | ASU 2014-09 | ||||
Revenue Recognition [Line Items] | ||||
Deferred revenue, current | $ (14,000) | |||
Deferred revenue, noncurrent | (11,800) | |||
Deferred income taxes, net | 6,800 | |||
Retained earnings | $ 19,000 | |||
Eyecare Club Memberships | ||||
Revenue Recognition [Line Items] | ||||
Percent of consolidated net revenue | 3.00% | |||
Stores, laboratories, distribution centers, offices | Minimum | ||||
Revenue Recognition [Line Items] | ||||
Lease terms (in years) | 5 years | |||
Renewal terms (in years) | 1 year | |||
Stores, laboratories, distribution centers, offices | Maximum | ||||
Revenue Recognition [Line Items] | ||||
Lease terms (in years) | 10 years | |||
Renewal terms (in years) | 10 years |
Business and Significant Acc_10
Business and Significant Accounting Policies - Leases (Details) - USD ($) $ in Thousands | Dec. 28, 2019 | Dec. 30, 2018 | Dec. 31, 2017 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating lease, liabilities | $ 383,706 | ||
TIA treated as reduction of lease payments used to measure operating lease ROU assets | 35,200 | ||
Deferred rent treated as reduction of lease payments used to measure operating lease ROU assets | 15,000 | ||
Right of use assets | $ 348,090 | ||
Cumulative effect of change in accounting principle | $ (506) | $ 19,030 | |
ASU No. 2016-02 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating lease, liabilities | 339,600 | ||
TIA treated as reduction of lease payments used to measure operating lease ROU assets | 24,300 | ||
Deferred rent treated as reduction of lease payments used to measure operating lease ROU assets | 11,900 | ||
Prepaid rent as increase in lease payments used to measure ROU assets | 5,800 | ||
Right of use assets | 308,500 | ||
Retained Earnings (Accumulated Deficit) | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Cumulative effect of change in accounting principle | (506) | $ 19,030 | |
Retained Earnings (Accumulated Deficit) | ASU No. 2016-02 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Cumulative effect of change in accounting principle | $ (500) |
Details of Certain Balance Sh_3
Details of Certain Balance Sheet Accounts - Accounts Receivable, Net (Details) - USD ($) $ in Thousands | Dec. 28, 2019 | Dec. 29, 2018 |
Accounts receivable, net: | ||
Allowance for uncollectible accounts | $ (3,040) | $ (2,612) |
Accounts receivable, net | 44,475 | 50,735 |
Trade receivables | ||
Accounts receivable, net: | ||
Accounts receivable, gross | 28,635 | 27,356 |
Credit card receivables | ||
Accounts receivable, net: | ||
Accounts receivable, gross | 14,173 | 16,636 |
Tenant improvement allowances receivable | ||
Accounts receivable, net: | ||
Accounts receivable, gross | 0 | 5,149 |
Other receivables | ||
Accounts receivable, net: | ||
Accounts receivable, gross | $ 4,707 | $ 4,206 |
Details of Certain Balance Sh_4
Details of Certain Balance Sheet Accounts - Inventories (Details) - USD ($) $ in Thousands | Dec. 28, 2019 | Dec. 29, 2018 |
Inventories: | ||
Raw materials and work in process | $ 65,179 | $ 59,946 |
Finished goods | 62,377 | 56,076 |
Inventories | $ 127,556 | $ 116,022 |
Details of Certain Balance Sh_5
Details of Certain Balance Sheet Accounts - Property and Equipment, Net (Details) - USD ($) $ in Thousands | Dec. 28, 2019 | Dec. 29, 2018 |
Property and equipment, net: | ||
Property and equipment, gross | $ 568,033 | |
Right of use assets under finance leases | $ 36,437 | |
Property and equipment, gross | 638,732 | |
Less: Accumulated depreciation | 271,965 | |
Property and equipment, net | 366,767 | |
Less: Accumulated depreciation | 212,916 | |
Property and equipment, net | 355,117 | |
Land and building | ||
Property and equipment, net: | ||
Property and equipment, gross | 3,632 | 3,632 |
Equipment | ||
Property and equipment, net: | ||
Property and equipment, gross | 188,593 | 160,958 |
Information technology hardware and software | ||
Property and equipment, net: | ||
Property and equipment, gross | 115,283 | 101,809 |
Furniture and fixtures | ||
Property and equipment, net: | ||
Property and equipment, gross | 55,146 | 48,992 |
Leasehold improvements | ||
Property and equipment, net: | ||
Property and equipment, gross | 213,124 | 186,499 |
Construction in progress | ||
Property and equipment, net: | ||
Property and equipment, gross | $ 26,517 | 40,697 |
Right of use assets under finance leases | ||
Property and equipment, net: | ||
Property and equipment, gross | $ 25,446 |
Details of Certain Balance Sh_6
Details of Certain Balance Sheet Accounts - Other Payables and Accrued Expenses (Details) - USD ($) $ in Thousands | Dec. 28, 2019 | Dec. 29, 2018 |
Other payables and accrued expenses: | ||
Employee compensation and benefits | $ 28,347 | $ 20,529 |
Self-insurance liabilities | 8,403 | 8,117 |
Capital expenditures | 6,782 | 14,078 |
Advertising | 2,919 | 2,076 |
Reserves for customer returns and remakes | 7,158 | 4,645 |
Legacy management & services agreement | 4,461 | 5,383 |
Fair value of derivative liabilities | 6,382 | 3,130 |
Supplies and other store support expenses | 2,926 | 4,929 |
Litigation settlements | 3,840 | 3,938 |
Other | 11,611 | 14,179 |
Total other payables and accrued expenses | $ 82,829 | $ 81,004 |
Details of Certain Balance Sh_7
Details of Certain Balance Sheet Accounts - Other Non-Current Liabilities (Details) - USD ($) $ in Thousands | Dec. 28, 2019 | Dec. 29, 2018 |
Other non-current liabilities: | ||
Fair value of derivative liabilities | $ 1,603 | $ 3,505 |
Tenant improvements | 30,851 | |
Deferred rental expenses | 11,926 | |
Self-insurance liabilities | 7,283 | 5,114 |
Other | 4,845 | 2,568 |
Other liabilities | $ 13,731 | $ 53,964 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Goodwill [Line Items] | |||
Other intangible asset impairment | $ 0 | ||
Intangible asset impairment | $ 0 | $ 0 | |
Fred Meyer | |||
Goodwill [Line Items] | |||
Goodwill impairment | 11,400,000 | ||
Military | |||
Goodwill [Line Items] | |||
Goodwill impairment | $ 3,700,000 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Goodwill Carrying Amount (Details) - USD ($) $ in Thousands | Dec. 28, 2019 | Dec. 29, 2018 |
Goodwill [Line Items] | ||
Gross Carrying Amount | $ 805,077 | $ 805,077 |
Accumulated Impairment | (27,464) | (27,464) |
Owned & Host | ||
Goodwill [Line Items] | ||
Gross Carrying Amount | 736,901 | 736,901 |
Accumulated Impairment | (19,357) | (19,357) |
Legacy | ||
Goodwill [Line Items] | ||
Gross Carrying Amount | 60,069 | 60,069 |
Accumulated Impairment | 0 | 0 |
Corporate/Other | ||
Goodwill [Line Items] | ||
Gross Carrying Amount | 8,107 | 8,107 |
Accumulated Impairment | $ (8,107) | $ (8,107) |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Indefinite-Lived Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 28, 2019 | Dec. 29, 2018 |
Indefinite-lived Intangible Assets [Line Items] | ||
Indefinite-lived trademarks and trade names | $ 240,547 | $ 240,547 |
Trademarks and trade names - America's Best | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Indefinite-lived trademarks and trade names | 200,547 | 200,547 |
Trademarks and trade names - Eyeglass World | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Indefinite-lived trademarks and trade names | $ 40,000 | $ 40,000 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Finite-Lived Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 28, 2019 | Dec. 29, 2018 | |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 105,146 | $ 105,138 |
Accumulated Amortization | 48,206 | 40,606 |
Contracts and relationships - Legacy | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 65,000 | 65,000 |
Accumulated Amortization | $ 34,247 | $ 28,359 |
Remaining Life (Years) | 5 years | 6 years |
Contracts and relationships - Fred Meyer | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 35,000 | $ 35,000 |
Accumulated Amortization | $ 8,820 | $ 7,303 |
Remaining Life (Years) | 17 years | 18 years |
Customer database | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 4,400 | $ 4,400 |
Accumulated Amortization | 4,400 | 4,224 |
Other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 746 | 738 |
Accumulated Amortization | $ 739 | $ 720 |
Goodwill and Intangible Asset_6
Goodwill and Intangible Assets - Estimated Future Amortization Expense (Details) - USD ($) $ in Thousands | Dec. 28, 2019 | Dec. 29, 2018 |
Definite-Lived Intangible Assets, Estimated Future Amortization Expense | ||
2020 | $ 7,550 | |
2021 | 7,408 | |
2022 | 7,406 | |
2023 | 7,405 | |
2024 | 7,405 | |
Thereafter | 19,766 | |
Definite-lived intangible assets | $ 56,940 | $ 64,532 |
Long-term Debt - Summary of Lon
Long-term Debt - Summary of Long-term Debt (Details) - USD ($) $ in Thousands | Dec. 28, 2019 | Dec. 29, 2018 |
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 540,375 | |
Finance lease obligations | 33,296 | |
Less current maturities | (3,259) | |
Finance lease obligations | $ 24,485 | |
Less current maturities | (2,567) | |
Long-term debt, less current portion and unamortized debt discount | 555,933 | 570,545 |
Term Loan | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 540,375 | 564,300 |
Unamortized discount | (3,979) | (10,673) |
Total term loans | 536,396 | 553,627 |
Less current maturities | (10,500) | (5,000) |
Term loans - non-current portion | 525,896 | 548,627 |
First Lien - Term Loan B | Term Loan | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 0 | 364,300 |
First Lien - Term Loan A | Term Loan | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 0 | 200,000 |
Term Loan, due July 18, 2024 | Term Loan | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 392,375 | 0 |
Revolving Credit Facility, due July 18, 2024 | Term Loan | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 148,000 | $ 0 |
Long-term Debt - Maturities of
Long-term Debt - Maturities of Debt (Details) $ in Thousands | Dec. 28, 2019USD ($) |
Long-term Debt, Fiscal Year Maturity | |
2020 | $ 10,500 |
2021 | 10,500 |
2022 | 13,125 |
2023 | 21,000 |
2024 | 485,250 |
Total | $ 540,375 |
Long-term Debt - Narrative (Det
Long-term Debt - Narrative (Details) - USD ($) | Jul. 18, 2019 | Sep. 28, 2019 |
Debt Instrument [Line Items] | ||
Write off of deferred debt issuance costs | $ 6,000,000 | |
Write off of unamortized debt discount | $ 3,800,000 | |
Line of Credit | Revolving Credit Facility, due July 18, 2024 | ||
Debt Instrument [Line Items] | ||
Aggregate principal amount | $ 300,000,000 | |
Amount drawn on line of credit | 148,000,000 | |
Term Loan | Term Loan | ||
Debt Instrument [Line Items] | ||
Aggregate principal amount | $ 420,000,000 | |
Amortization per annum, years one through 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, years one and two | 4.75 | |
Maximum allowable quarter end Consolidated Total Debt To Consolidated EBITDA Ratio, after year two | 4.50 | |
Maximum allowable quarter end Consolidated Interest Coverage Ratio | 3 | |
Term Loan | Term Loan | LIBOR | ||
Debt Instrument [Line Items] | ||
Applicable margin on rate (percent) | 1.50% | |
Term Loan | Term Loan | ABR | ||
Debt Instrument [Line Items] | ||
Applicable margin on rate (percent) | 0.50% | |
Term Loan | Term Loan | Leverage Ratio Greater Than 3.75 | Minimum | ||
Debt Instrument [Line Items] | ||
Consolidated first lien leverage ratio | 3.75 | |
Term Loan | Term Loan | Leverage Ratio Greater Than 3.75 | LIBOR | ||
Debt Instrument [Line Items] | ||
Applicable margin on rate (percent) | 2.00% | |
Term Loan | Term Loan | Leverage Ratio Greater Than 3.75 | ABR | ||
Debt Instrument [Line Items] | ||
Applicable margin on rate (percent) | 1.00% | |
Term Loan | Term Loan | Leverage Ratio Between 3.75 and 2.75 | Maximum | ||
Debt Instrument [Line Items] | ||
Consolidated first lien leverage ratio | 3.75 | |
Term Loan | Term Loan | Leverage Ratio Between 3.75 and 2.75 | Minimum | ||
Debt Instrument [Line Items] | ||
Consolidated first lien leverage ratio | 2.75 | |
Term Loan | Term Loan | Leverage Ratio Between 3.75 and 2.75 | LIBOR | ||
Debt Instrument [Line Items] | ||
Applicable margin on rate (percent) | 1.75% | |
Term Loan | Term Loan | Leverage Ratio Between 3.75 and 2.75 | ABR | ||
Debt Instrument [Line Items] | ||
Applicable margin on rate (percent) | 0.75% | |
Term Loan | Term Loan | Leverage Ratio Between 2.75 and 1.75 | Maximum | ||
Debt Instrument [Line Items] | ||
Consolidated first lien leverage ratio | 2.75 | |
Term Loan | Term Loan | Leverage Ratio Between 2.75 and 1.75 | Minimum | ||
Debt Instrument [Line Items] | ||
Consolidated first lien leverage ratio | 1.75 | |
Term Loan | Term Loan | Leverage Ratio Between 2.75 and 1.75 | LIBOR | ||
Debt Instrument [Line Items] | ||
Applicable margin on rate (percent) | 1.50% | |
Term Loan | Term Loan | Leverage Ratio Between 2.75 and 1.75 | ABR | ||
Debt Instrument [Line Items] | ||
Applicable margin on rate (percent) | 0.50% | |
Term Loan | Term Loan | Leverage Ratio Between 1.75 and 0.75 | Maximum | ||
Debt Instrument [Line Items] | ||
Consolidated first lien leverage ratio | 1.75 | |
Term Loan | Term Loan | Leverage Ratio Between 1.75 and 0.75 | Minimum | ||
Debt Instrument [Line Items] | ||
Consolidated first lien leverage ratio | 0.75 | |
Term Loan | Term Loan | Leverage Ratio Between 1.75 and 0.75 | LIBOR | ||
Debt Instrument [Line Items] | ||
Applicable margin on rate (percent) | 1.25% | |
Term Loan | Term Loan | Leverage Ratio Between 1.75 and 0.75 | ABR | ||
Debt Instrument [Line Items] | ||
Applicable margin on rate (percent) | 0.25% | |
Term Loan | Term Loan | Leverage Ratio Less Than 0.75 | Maximum | ||
Debt Instrument [Line Items] | ||
Consolidated first lien leverage ratio | 0.75 | |
Term Loan | Term Loan | Leverage Ratio Less Than 0.75 | LIBOR | ||
Debt Instrument [Line Items] | ||
Applicable margin on rate (percent) | 1.00% | |
Term Loan | Term Loan | Leverage Ratio Less Than 0.75 | ABR | ||
Debt Instrument [Line Items] | ||
Applicable margin on rate (percent) | 0.00% |
Stock Incentive Plans - Narrati
Stock Incentive Plans - Narrative (Details) $ / shares in Units, $ in Millions | 12 Months Ended | |||
Dec. 28, 2019USD ($)installment$ / sharesshares | Dec. 29, 2018USD ($)$ / sharesshares | Dec. 30, 2017USD ($)$ / sharesshares | Aug. 12, 2019$ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Common stock, par value (in usd per share) | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | |
Service-based options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options granted (shares) | 300,201 | 0 | ||
Weighted average grant date fair value (in usd per share) | $ / shares | $ 13.67 | $ 9.04 | ||
Fair value of options vested | $ | $ 5.7 | $ 5.9 | $ 4.6 | |
Aggregate intrinsic value of options exercised | $ | $ 21.4 | $ 45.7 | $ 1.5 | |
Options exercised (shares) | 939,407 | |||
Performance-based options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options granted (shares) | 0 | |||
Weighted average grant date fair value (in usd per share) | $ / shares | $ 3.68 | |||
Fair value of options vested | $ | $ 4.4 | $ 16.1 | $ 0.4 | |
Aggregate intrinsic value of options exercised | $ | $ 29.9 | $ 70.2 | ||
Options exercised (shares) | 1,281,653 | 0 | ||
Service-based restricted stock unit (RSU) awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares or units granted (shares) | 373,082 | 182,138 | ||
Weighted average exercise price (in usd per share) | $ / shares | $ 28.45 | $ 22 | $ 22 | |
Unvested restricted units (shares) | 376,145 | 98,076 | ||
Intrinsic value | $ | $ 12.5 | |||
Remaining requisite service period (in years) | 3 years 2 months 1 day | |||
Service-based restricted stock unit (RSU) awards | Vesting in two installments | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unvested restricted units (shares) | 10,977 | |||
Number of equal vesting installments | installment | 2 | |||
Service-based restricted stock unit (RSU) awards | Vesting in three installments beginning on first anniversary | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unvested restricted units (shares) | 123,674 | |||
Number of equal vesting installments | installment | 3 | |||
Service-based restricted stock unit (RSU) awards | Vesting in three installments beginning on second anniversary | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unvested restricted units (shares) | 241,494 | |||
Number of equal vesting installments | installment | 3 | |||
Performance-based restricted stock unit (PSU) awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares or units granted (shares) | 116,046 | |||
Weighted average exercise price (in usd per share) | $ / shares | $ 34.49 | $ 0 | ||
Unvested restricted units (shares) | 113,014 | 0 | ||
Intrinsic value | $ | $ 3.7 | |||
Remaining requisite service period (in years) | 2 years 2 months 15 days | |||
RSAs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares or units granted (shares) | 13,712 | |||
Weighted average exercise price (in usd per share) | $ / shares | $ 30.71 | $ 32.08 | ||
Unvested restricted units (shares) | 20,628 | 11,431 | ||
RSAs | Directors | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares or units granted (shares) | 13,712 | 11,431 | ||
Intrinsic value | $ | $ 0.7 | |||
Remaining requisite service period (in years) | 8 months 15 days | |||
RSAs | Vest proportionally over three years | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unvested restricted units (shares) | 6,916 | |||
Vesting period (years) | 3 years | |||
RSAs | Vest one year from grant date | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unvested restricted units (shares) | 13,712 | |||
Vesting period (years) | 1 year | |||
Stock Incentive Plans | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Awards contractual life (in years) | 10 years | |||
2014 Stock Incentive Plan | Stock options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares authorized for issuance (shares) | 10,988,827 | |||
2017 Omnibus Incentive Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares authorized for issuance (shares) | 4,000,000 | |||
Associate stock purchase plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares authorized for issuance (shares) | 850,000 | |||
Common stock, par value (in usd per share) | $ / shares | $ 0.01 |
Stock Incentive Plans - Stock C
Stock Incentive Plans - Stock Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Stock compensation expense | |||
Total stock based compensation expense | $ 12,670 | $ 20,939 | $ 5,152 |
Income tax benefit | (3,237) | (5,367) | (1,320) |
After-tax share based compensation expense | 9,433 | 15,572 | 3,832 |
Stock options | |||
Stock compensation expense | |||
Total stock based compensation expense | 8,562 | 19,397 | 4,835 |
Unrecognized compensation cost | |||
Unrecognized compensation cost | $ 4,158 | ||
Expected remaining weighted-average period of expense recognition (in years) | 2 years 1 month 24 days | ||
RSUs and PSUs | |||
Stock compensation expense | |||
Total stock based compensation expense | $ 3,655 | 1,386 | 290 |
Unrecognized compensation cost | |||
Unrecognized compensation cost | $ 12,861 | ||
Expected remaining weighted-average period of expense recognition (in years) | 2 years 11 months 26 days | ||
RSAs | |||
Stock compensation expense | |||
Total stock based compensation expense | $ 334 | 108 | 27 |
Unrecognized compensation cost | |||
Unrecognized compensation cost | $ 354 | ||
Expected remaining weighted-average period of expense recognition (in years) | 10 months 17 days | ||
Associate stock purchase plan | |||
Stock compensation expense | |||
Total stock based compensation expense | $ 119 | $ 48 | $ 0 |
Stock Incentive Plans - Stock O
Stock Incentive Plans - Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Service-based options | |||
Number of Options Outstanding | |||
Outstanding, beginning balance (shares) | 2,583,380 | ||
Granted (shares) | 300,201 | 0 | |
Exercised (shares) | (939,407) | ||
Forfeited (shares) | (38,016) | ||
Outstanding, ending balance (shares) | 1,906,158 | 2,583,380 | |
Vested and exercisable (shares) | 1,173,256 | ||
Weighted Average Exercise Price ($) | |||
Outstanding, beginning balance (usd per share) | $ 8.48 | ||
Granted (usd per share) | 34.18 | ||
Exercised (usd per share) | 6.45 | ||
Forfeited (usd per share) | 16.21 | ||
Outstanding, ending balance (usd per share) | 13.37 | $ 8.48 | |
Vested and exercisable (usd per share) | $ 7.90 | ||
Outstanding, weighted average remaining contractual term (years) | 6 years 1 month 20 days | ||
Vested and exercisable, weighted average remaining contractual term (years) | 4 years 11 months 8 days | ||
Outstanding, aggregate intrinsic value | $ 38,132 | ||
Vested and exercisable, aggregate intrinsic value | $ 29,576 | ||
Performance-based options | |||
Number of Options Outstanding | |||
Outstanding, beginning balance (shares) | 4,143,781 | ||
Granted (shares) | 0 | ||
Exercised (shares) | (1,281,653) | 0 | |
Forfeited (shares) | (1,258,280) | ||
Outstanding, ending balance (shares) | 1,603,848 | 4,143,781 | |
Vested and exercisable (shares) | 1,473,414 | ||
Weighted Average Exercise Price ($) | |||
Outstanding, beginning balance (usd per share) | $ 6.23 | ||
Exercised (usd per share) | 6.10 | ||
Forfeited (usd per share) | 5.87 | ||
Outstanding, ending balance (usd per share) | 6.60 | $ 6.23 | |
Vested and exercisable (usd per share) | $ 5.79 | ||
Outstanding, weighted average remaining contractual term (years) | 4 years 10 months 20 days | ||
Vested and exercisable, weighted average remaining contractual term (years) | 4 years 7 months 24 days | ||
Outstanding, aggregate intrinsic value | $ 42,499 | ||
Vested and exercisable, aggregate intrinsic value | $ 40,235 |
Stock Incentive Plans - Valuati
Stock Incentive Plans - Valuation Assumptions (Details) | 12 Months Ended | |
Dec. 28, 2019 | Dec. 30, 2017 | |
Service-based options | ||
Fair Value Assumptions | ||
Expected volatility | 60.40% | |
Expected volatility, minimum | 34.50% | |
Expected volatility, maximum | 37.10% | |
Expected term (in years) | 6 years 6 months | |
Expected risk-free interest rate, minimum | 1.68% | 1.60% |
Expected risk-free interest rate, maximum | 2.94% | 2.00% |
Service-based options | Minimum | ||
Fair Value Assumptions | ||
Expected term (in years) | 5 years 9 months | |
Service-based options | Maximum | ||
Fair Value Assumptions | ||
Expected term (in years) | 6 years 6 months | |
Performance-based options | ||
Fair Value Assumptions | ||
Expected volatility, minimum | 48.20% | |
Expected volatility, maximum | 54.00% | |
Expected risk-free interest rate, minimum | 1.38% | |
Expected risk-free interest rate, maximum | 1.51% | |
Performance-based options | Minimum | ||
Fair Value Assumptions | ||
Expected term (in years) | 2 years 4 months 13 days | |
Performance-based options | Maximum | ||
Fair Value Assumptions | ||
Expected term (in years) | 2 years 9 months 11 days |
Stock Incentive Plans - Restric
Stock Incentive Plans - Restricted Stock Unit and Award Activity (Details) - $ / shares | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Service-based restricted stock unit (RSU) awards | |||
Number of Awards Outstanding | |||
Outstanding, beginning balance (shares) | 98,076 | ||
Granted (shares) | 373,082 | 182,138 | |
Vested (shares) | (82,640) | ||
Forfeited (shares) | (12,373) | ||
Outstanding, ending balance (shares) | 376,145 | 98,076 | |
Weighted Average Grant Date Fair Value ($) | |||
Outstanding, beginning balance (in dollars per share) | $ 22 | $ 22 | |
Granted (in dollars per share) | 29.56 | ||
Vested (in dollars per share) | 26.36 | ||
Forfeited (in dollars per share) | 28.45 | ||
Outstanding, ending balance (in dollars per share) | $ 28.45 | $ 22 | $ 22 |
Performance-based restricted stock unit (PSU) awards | |||
Number of Awards Outstanding | |||
Outstanding, beginning balance (shares) | 0 | ||
Granted (shares) | 116,046 | ||
Vested (shares) | 0 | ||
Forfeited (shares) | (3,032) | ||
Outstanding, ending balance (shares) | 113,014 | 0 | |
Weighted Average Grant Date Fair Value ($) | |||
Outstanding, beginning balance (in dollars per share) | $ 0 | ||
Granted (in dollars per share) | 34.50 | ||
Vested (in dollars per share) | 0 | ||
Forfeited (in dollars per share) | 35.19 | ||
Outstanding, ending balance (in dollars per share) | $ 34.49 | $ 0 | |
Restricted stock (RSA) awards | |||
Number of Awards Outstanding | |||
Outstanding, beginning balance (shares) | 11,431 | ||
Granted (shares) | 13,712 | ||
Vested (shares) | (4,515) | ||
Forfeited (shares) | 0 | ||
Outstanding, ending balance (shares) | 20,628 | 11,431 | |
Weighted Average Grant Date Fair Value ($) | |||
Outstanding, beginning balance (in dollars per share) | $ 32.08 | ||
Granted (in dollars per share) | 29.18 | ||
Vested (in dollars per share) | 29.52 | ||
Forfeited (in dollars per share) | 0 | ||
Outstanding, ending balance (in dollars per share) | $ 30.71 | $ 32.08 |
Stock Incentive Plans - Associa
Stock Incentive Plans - Associate Stock Purchase Plan (Details) - Associate stock purchase plan | 12 Months Ended |
Dec. 28, 2019USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Discount from the market trading value of common stock at time of purchase (percent) | 10.00% |
Maximum annual contribution per participant for stock purchase | $ 25,000 |
Income Taxes - Components of In
Income Taxes - Components of Income Tax Provision (Benefit) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Current income tax: | |||
Federal | $ 443 | $ 174 | $ 5 |
State | 864 | 381 | 1,082 |
Deferred income tax: | |||
Federal | (2,972) | (15,687) | (40,136) |
State | (644) | (3,653) | 139 |
Income tax provision (benefit) | $ (2,309) | $ (18,785) | $ (38,910) |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Effective Tax Rate (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Income Tax Disclosure [Abstract] | |||
Federal income tax provision at statutory rate | $ 6,403 | $ 1,022 | $ 1,480 |
State income tax provision, net of federal income tax | 1,387 | 226 | 165 |
Increase (decrease) in deferred tax asset valuation allowance | (386) | 318 | 769 |
Goodwill impairment | 0 | 3,879 | 0 |
Benefit of tax legislation | 0 | 0 | (42,089) |
Tax benefit of equity-based compensation deductions | (10,089) | (25,544) | 0 |
Other, net | 376 | 1,314 | 765 |
Income tax provision (benefit) | $ (2,309) | $ (18,785) | $ (38,910) |
Effective income tax rate (percent) | (7.60%) | (385.90%) | (920.30%) |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Deferred Tax Liabilities (Details) - USD ($) $ in Thousands | Dec. 28, 2019 | Dec. 29, 2018 |
Deferred tax assets: | ||
NOL carry-forwards | $ 12,006 | $ 13,614 |
Deferred interest expense carry-forwards | 3,733 | 4,655 |
AMT payment and employment credits | 4,155 | 4,679 |
Deferred revenue | 5,145 | 4,984 |
Accrued expenses and reserves | 12,542 | 11,370 |
Loss on equity and other investments | 1,960 | 1,493 |
Stock option compensation | 5,505 | 5,893 |
Unrealized losses on hedging instruments | 2,039 | 1,700 |
Other | 942 | 1,193 |
Subtotal | 48,027 | 49,581 |
Valuation allowances | 3,705 | 1,614 |
Total net deferred tax assets | 44,322 | 47,967 |
Deferred tax liabilities: | ||
Depreciation of property and equipment | (27,953) | (32,631) |
Amortization of intangible assets | (74,529) | (75,422) |
Other | (1,986) | (1,854) |
Total deferred tax liabilities | (104,468) | (109,907) |
Net deferred tax liabilities | $ (60,146) | $ (61,940) |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2017 | Dec. 28, 2019 | Dec. 29, 2018 | |
Income Tax Disclosure [Abstract] | |||
Tax benefit due to re-measurement of deferred taxes as a result of new tax legislation | $ 42,100 | ||
Operating Loss Carryforwards [Line Items] | |||
Non-expiring AMT carryforward credits and employment credits | $ 4,155 | $ 4,679 | |
Deferred tax asset associated with equity method affiliate | 1,700 | ||
Deferred tax asset related to impairment of cost method investment | 200 | ||
U.S. federal | |||
Operating Loss Carryforwards [Line Items] | |||
NOL carryforwards | 54,100 | ||
NOL carryforwards not subject to expiration | 43,300 | ||
NOL carryforwards expiring at end of fiscal year 2037 | 10,800 | ||
NOL carry-forwards on professional corporations [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Valuation allowance for NOLs for which if it more-likely-than-not that tax benefit will not be realized | 6,100 | ||
AMT carryforward and employment credit | U.S. federal and state | |||
Operating Loss Carryforwards [Line Items] | |||
Non-expiring AMT carryforward credits and employment credits | $ 3,800 |
Revenue From Contracts With C_3
Revenue From Contracts With Customers - Narrative (Details) | 12 Months Ended |
Dec. 28, 2019 | |
Disaggregation of Revenue [Line Items] | |
Time frame for majority of payments on health care plans and programs accounts (in days) | 90 days |
Owned & Host | |
Disaggregation of Revenue [Line Items] | |
Extended warranty plan, term (in years) | 1 year |
Eye care club membership, term one (in years) | 3 years |
Eye care club membership, term two (in years) | 5 years |
Minimum | |
Disaggregation of Revenue [Line Items] | |
General payment terms for accounts on health care plans and programs (in days) | 14 days |
Maximum | |
Disaggregation of Revenue [Line Items] | |
General payment terms for accounts on health care plans and programs (in days) | 120 days |
Revenue From Contracts With C_4
Revenue From Contracts With Customers - Disaggregation of Revenues (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 28, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Disaggregation of Revenue [Line Items] | |||||||||||
Total net revenue | $ 401,763 | $ 431,902 | $ 429,451 | $ 461,215 | $ 355,922 | $ 387,425 | $ 385,532 | $ 407,975 | $ 1,724,331 | $ 1,536,854 | $ 1,375,308 |
Revenues recognized at a point in time | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total net revenue | 1,578,379 | 1,397,801 | |||||||||
Revenues recognized over time | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total net revenue | $ 145,952 | $ 139,053 |
Leases - Narrative (Details)
Leases - Narrative (Details) $ in Millions | 12 Months Ended |
Dec. 28, 2019USD ($) | |
Lessee, Lease, Description [Line Items] | |
Finance lease assets accumulated amortization | $ 8.3 |
Stores, laboratories, distribution centers, offices | Minimum | |
Lessee, Lease, Description [Line Items] | |
Lease terms (in years) | 5 years |
Renewal terms (in years) | 1 year |
Stores, laboratories, distribution centers, offices | Maximum | |
Lessee, Lease, Description [Line Items] | |
Lease terms (in years) | 10 years |
Renewal terms (in years) | 10 years |
Leases - Lease Type and Classif
Leases - Lease Type and Classification (Details) - USD ($) $ in Thousands | Dec. 28, 2019 | Dec. 29, 2018 |
ASSETS | ||
Finance lease, right-of-use assets | $ 28,128 | |
Operating lease, right of use assets | 348,090 | |
Total leased assets | 376,218 | |
TIA treated as reduction of lease payments used to measure operating lease ROU assets | (35,200) | |
Deferred rent treated as reduction of lease payments used to measure operating lease ROU assets | (15,000) | |
LIABILITIES | ||
Finance lease liabilities, current | 3,259 | |
Operating lease liabilities, current | 51,937 | |
Finance lease liabilities, non-current | 30,037 | |
Operating lease liabilities, non-current | 331,769 | |
Total lease liabilities | $ 417,002 | |
TIA receivable netted to operating lease liabilities | $ (5,900) |
Leases - Lease Costs (Details)
Leases - Lease Costs (Details) $ in Thousands | 12 Months Ended |
Dec. 28, 2019USD ($) | |
Lease Cost | |
Fixed lease cost | $ 73,971 |
Variable lease cost | 26,466 |
Sublease income | (2,930) |
Amortization of finance lease assets | 4,418 |
Interest on finance lease liabilities | 3,573 |
Net lease cost | $ 105,498 |
Leases - Lease Term and Discoun
Leases - Lease Term and Discount Rate (Details) | Dec. 28, 2019 |
Leases [Abstract] | |
Operating leases, weighted average remaining lease term (months) | 82 months |
Finance leases, weighted average remaining lease term (months) | 88 months |
Operating leases, weighted average discount rate (percent) | 4.60% |
Finance leases, weighted average discount rate (percent) | 13.10% |
Leases - Other Information (Det
Leases - Other Information (Details) $ in Thousands | 12 Months Ended |
Dec. 28, 2019USD ($) | |
Cash paid for amounts included in the measurement of lease liabilities | |
Operating cash outflows - operating leases | $ 75,330 |
Leases - Maturity of Lease Liab
Leases - Maturity of Lease Liabilities (Details) $ in Thousands | Dec. 28, 2019USD ($) |
Operating Leases | |
2020 | $ 67,240 |
2021 | 74,451 |
2022 | 67,115 |
2023 | 59,981 |
2024 | 53,036 |
Thereafter | 130,762 |
Total lease liabilities | 452,585 |
Less: Interest | 68,879 |
Present value of lease liabilities | 383,706 |
Finance Leases | |
2020 | 6,742 |
2021 | 7,127 |
2022 | 7,062 |
2023 | 6,088 |
2024 | 4,520 |
Thereafter | 15,561 |
Total lease liabilities | 47,100 |
Less: Interest | 13,804 |
Finance lease obligations | 33,296 |
Operating lease payments related to reasonably certain option extensions included in total lease payments | 72,200 |
Finance lease payments related to reasonably certain option extensions included in total lease payments | 1,700 |
Minimum lease payments for leases signed but not yet commenced excluded from lease liability | $ 16,400 |
Leases - Aggregate Future Minim
Leases - Aggregate Future Minimum Rental Payments at Prior Year End (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 29, 2018 | Dec. 30, 2017 | |
Leases [Abstract] | ||
Variable executory costs | $ 18,000 | $ 14,900 |
Future Minimum Rental Payments Under Operating Leases by Fiscal Year | ||
2019 | 69,372 | |
2020 | 63,218 | |
2021 | 56,219 | |
2022 | 49,303 | |
2023 | 42,545 | |
Thereafter | 126,388 | |
Total | $ 407,045 |
Related Party Transactions - Tr
Related Party Transactions - Transactions with Equity Sponsors (Details) - USD ($) $ in Thousands | Aug. 12, 2019 | Oct. 30, 2017 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 |
Related Party Transaction [Line Items] | |||||
Sponsor fees presented in debt issuance costs | $ 1,000 | ||||
KCM | |||||
Related Party Transaction [Line Items] | |||||
Sponsor fees presented in debt issuance costs | $ 1,200 | ||||
KKR | |||||
Related Party Transaction [Line Items] | |||||
Fees paid to equity sponsors | $ 3,600 | 0 | 0 | $ 7,259 | |
Sponsor fees presented in debt issuance costs | 2,300 | ||||
Berkshire | |||||
Related Party Transaction [Line Items] | |||||
Fees paid to equity sponsors | $ 800 | $ 0 | $ 0 | $ 955 | |
Secondary Offering | |||||
Related Party Transaction [Line Items] | |||||
Shares issued in public offering (shares) | 9,149,908 | 42,914,852 |
Related Party Transactions - Di
Related Party Transactions - Dividend and Stockholders' Equity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | Feb. 02, 2017 | Dec. 28, 2019 | Dec. 29, 2018 |
Related Party Transaction [Line Items] | |||
Dividends paid per share of common stock (in usd per share) | $ 1.51 | ||
Common stock, outstanding (shares) | 110,500 | 79,678 | 78,167 |
Tax benefit from cash distribution to vested option holders | $ 1.4 | ||
Reduction in additional paid-in capital related to dividends in excess of retained earnings | $ 171 | ||
Stock options | |||
Related Party Transaction [Line Items] | |||
Cash distribution per share to vested option holders (in usd per share) | $ 1.51 | ||
Cash distribution to vested option holders | $ 3.7 | ||
Reduction in exercise price for unvested options (in usd per share) | $ 1.51 |
Equity in Net Assets of Non-C_3
Equity in Net Assets of Non-Consolidated Investee - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Aug. 29, 2017 | |
Equity Method Investee | |||
Schedule of Equity Method Investments [Line Items] | |||
Secured convertible promissory note receivable | $ 0.7 | $ 1.5 | |
Fixed interest rate on note receivable (percent) | 5.00% | ||
Share of investee net losses offset to note receivable | $ 0.8 | ||
Equity Method Investee | Base Rate | |||
Schedule of Equity Method Investments [Line Items] | |||
Variable interest rate on note receivable (percent) | 0.75% | ||
Investee | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity interest in affiliate (percent) | 26.00% | ||
Investment in subsidiary | $ 1 |
Equity in Net Assets of Non-C_4
Equity in Net Assets of Non-Consolidated Investee - Financial Information of Investee (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Balance Sheet Information for Affiliate | |||
Current assets | $ 1,351 | $ 2,197 | |
Non-current assets | 450 | 558 | |
Total assets | 1,801 | 2,755 | |
Current liabilities | 3,821 | 6,321 | |
Non-current liabilities | 8,200 | 3,000 | |
Total liabilities | 12,021 | 9,321 | |
Net assets | (10,220) | (6,566) | |
Income Statement Information for Affiliate | |||
Revenues | 6,046 | 3,871 | $ 6,244 |
Net loss | (5,481) | (5,632) | (3,433) |
National Vision’s share of net loss | $ (1,804) | $ (1,304) | $ (1,001) |
Equity in Net Assets of Non-C_5
Equity in Net Assets of Non-Consolidated Investee - Transactions with Non-Consolidated Investee (Details) - Equity Method Investee - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Balance sheets | |||
Other assets | $ 704 | $ 1,522 | |
Statements of operations | |||
Licensing fees (SG&A) | $ 132 | $ 172 | $ 955 |
Fair Value Measurement of Fin_2
Fair Value Measurement of Financial Assets and Liabilities - Narrative (Details) - Finance lease obligations - Level 2 - USD ($) $ in Millions | Dec. 28, 2019 | Dec. 29, 2018 |
Estimated Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt instruments | $ 38.2 | $ 30.7 |
Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt instruments | $ 33.3 | $ 24.5 |
Deferred Revenue - Roll-Forward
Deferred Revenue - Roll-Forward of Deferred Revenue (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 28, 2019 | Dec. 29, 2018 |
Roll Forward Of Contract Liability [Roll Forward] | |||
Deferred revenue, beginning balance | $ 94,215 | $ 72,278 | $ 94,215 |
Sold | 115,543 | 108,167 | |
Revenue recognized | (110,421) | (104,328) | |
Deferred revenue, ending balance | 77,400 | 72,278 | |
Adjustment | |||
Roll Forward Of Contract Liability [Roll Forward] | |||
Deferred revenue, ending balance | 68,439 | ||
ASU 2014-09 | |||
Roll Forward Of Contract Liability [Roll Forward] | |||
Adjustment for adoption of ASU 2014-09 | (25,776) | ||
Product Protection Plans | |||
Roll Forward Of Contract Liability [Roll Forward] | |||
Deferred revenue, beginning balance | 26,731 | 28,775 | 26,731 |
Sold | 63,105 | 58,860 | |
Revenue recognized | (60,969) | (56,816) | |
Deferred revenue, ending balance | 30,911 | 28,775 | |
Product Protection Plans | Adjustment | |||
Roll Forward Of Contract Liability [Roll Forward] | |||
Deferred revenue, ending balance | 26,731 | ||
Product Protection Plans | ASU 2014-09 | |||
Roll Forward Of Contract Liability [Roll Forward] | |||
Adjustment for adoption of ASU 2014-09 | 0 | ||
Eye Care Clubs | |||
Roll Forward Of Contract Liability [Roll Forward] | |||
Deferred revenue, beginning balance | 67,430 | 43,488 | 67,430 |
Sold | 52,438 | 47,923 | |
Revenue recognized | (49,440) | (46,089) | |
Deferred revenue, ending balance | 46,486 | 43,488 | |
Eye Care Clubs | Adjustment | |||
Roll Forward Of Contract Liability [Roll Forward] | |||
Deferred revenue, ending balance | 41,654 | ||
Eye Care Clubs | ASU 2014-09 | |||
Roll Forward Of Contract Liability [Roll Forward] | |||
Adjustment for adoption of ASU 2014-09 | (25,776) | ||
HMO Memberships | |||
Roll Forward Of Contract Liability [Roll Forward] | |||
Deferred revenue, beginning balance | 54 | 15 | 54 |
Sold | 0 | 1,384 | |
Revenue recognized | (12) | (1,423) | |
Deferred revenue, ending balance | $ 3 | $ 15 | |
HMO Memberships | Adjustment | |||
Roll Forward Of Contract Liability [Roll Forward] | |||
Deferred revenue, ending balance | 54 | ||
HMO Memberships | ASU 2014-09 | |||
Roll Forward Of Contract Liability [Roll Forward] | |||
Adjustment for adoption of ASU 2014-09 | $ 0 |
Deferred Revenue - Current and
Deferred Revenue - Current and Non-current Balances (Details) - USD ($) $ in Thousands | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 |
Disaggregation of Revenue [Line Items] | |||
Deferred revenue, current | $ 55,870 | $ 52,144 | |
Deferred revenue, noncurrent | 21,530 | 20,134 | |
Deferred revenue | 77,400 | 72,278 | $ 94,215 |
Product Protection Plans | |||
Disaggregation of Revenue [Line Items] | |||
Deferred revenue, current | 30,547 | 28,403 | |
Deferred revenue, noncurrent | 364 | 372 | |
Deferred revenue | 30,911 | 28,775 | 26,731 |
Eye Care Clubs | |||
Disaggregation of Revenue [Line Items] | |||
Deferred revenue, current | 25,320 | 23,726 | |
Deferred revenue, noncurrent | 21,166 | 19,762 | |
Deferred revenue | 46,486 | 43,488 | 67,430 |
HMO Memberships | |||
Disaggregation of Revenue [Line Items] | |||
Deferred revenue, current | 3 | 15 | |
Deferred revenue, noncurrent | 0 | 0 | |
Deferred revenue | $ 3 | $ 15 | $ 54 |
Deferred Revenue - Deferred Rev
Deferred Revenue - Deferred Revenue Remaining Performance Obligation (Details) $ in Thousands | Dec. 28, 2019USD ($) |
Revenue from Contract with Customer [Abstract] | |
Performance obligation remaining | $ 77,400 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | |
Revenue from Contract with Customer [Abstract] | |
Performance obligation remaining | $ 55,870 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Estimated timing of recognition of performance obligation | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Revenue from Contract with Customer [Abstract] | |
Performance obligation remaining | $ 16,125 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Estimated timing of recognition of performance obligation | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Revenue from Contract with Customer [Abstract] | |
Performance obligation remaining | $ 5,185 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Estimated timing of recognition of performance obligation | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Revenue from Contract with Customer [Abstract] | |
Performance obligation remaining | $ 170 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Estimated timing of recognition of performance obligation | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Revenue from Contract with Customer [Abstract] | |
Performance obligation remaining | $ 50 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Estimated timing of recognition of performance obligation | 1 year |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) - USD ($) | Nov. 08, 2017 | Nov. 30, 2019 | May 31, 2017 | Jul. 01, 2017 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 |
Other Commitments [Line Items] | |||||||
401(k) plan expense | $ 5,300,000 | $ 4,200,000 | $ 3,100,000 | ||||
Charge for litigation settlement | 0 | $ 0 | $ 7,000,000 | ||||
1-800 Contacts Matter | |||||||
Other Commitments [Line Items] | |||||||
Amount of litigation settlement | $ 7,000,000 | ||||||
Charge for litigation settlement | $ 7,000,000 | ||||||
Percent of settlement award deposited in escrow account (percent) | 50.00% | ||||||
Amount of settlement deposited in escrow account | $ 3,500,000 | ||||||
Trade vendors purchase commitments | |||||||
Other Commitments [Line Items] | |||||||
Minimum purchase commitment in 2020 | 23,500,000 | ||||||
Minimum purchase commitment in 2021 | 24,900,000 | ||||||
Minimum purchase commitment in 2022 | 8,400,000 | ||||||
Minimum purchase commitment in 2023 | $ 3,700,000 | ||||||
Maximum | Fair Labor Standards Act | |||||||
Other Commitments [Line Items] | |||||||
Amount of litigation settlement | $ 895,000 |
Commitments and Contingencies_2
Commitments and Contingencies - Warranty Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 28, 2019 | Dec. 29, 2018 | |
Movement in Product Warrant Liability Accounts | ||
Beginning balance | $ 1,742 | $ 1,593 |
Accrued obligation | 33,014 | 29,943 |
Claims paid | (32,875) | (29,794) |
Ending balance | $ 1,881 | $ 1,742 |
Interest Rate Derivatives - Nar
Interest Rate Derivatives - Narrative (Details) - USD ($) | Dec. 28, 2019 | Dec. 29, 2018 |
Derivative [Line Items] | ||
Estimated reclassification from AOCL to earnings in next 12 months | $ 4,700,000 | |
Interest Rate Swap | Cash Flow Hedges | ||
Derivative [Line Items] | ||
Interest rate floor (percent) | 1.00% | |
Interest Rate Swap | Designated as Hedging Instrument | Cash Flow Hedges | ||
Derivative [Line Items] | ||
Notional Amount | $ 430,000,000 | $ 465,000,000 |
Interest Rate Swap One | Designated as Hedging Instrument | Cash Flow Hedges | ||
Derivative [Line Items] | ||
Notional Amount | $ 105,000,000 | $ 140,000,000 |
Fixed interest rate (percent) | 3.4063% | |
Interest Rate Swap Two | Designated as Hedging Instrument | Cash Flow Hedges | ||
Derivative [Line Items] | ||
Notional Amount | $ 225,000,000 | |
Fixed interest rate (percent) | 3.5125% | |
Interest Rate Swap Three | Designated as Hedging Instrument | Cash Flow Hedges | ||
Derivative [Line Items] | ||
Notional Amount | $ 100,000,000 | |
Fixed interest rate (percent) | 2.60% |
Interest Rate Derivatives - Cas
Interest Rate Derivatives - Cash Flow Hedge Position Derivative Contracts (Details) - USD ($) | Dec. 28, 2019 | Dec. 29, 2018 |
Derivatives, Fair Value [Line Items] | ||
Other Payables and Accrued Expenses | $ 6,382,000 | $ 3,130,000 |
Other Liabilities | 1,603,000 | 3,505,000 |
Stranded tax benefit in AOCL | 2,100,000 | 2,100,000 |
Interest Rate Swap | Designated as Hedging Instrument | Cash Flow Hedges | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 430,000,000 | 465,000,000 |
Other Payables and Accrued Expenses | 6,382,000 | 3,130,000 |
Other Liabilities | 1,603,000 | 3,505,000 |
Hedge position in AOCL, net of tax | $ 3,814,000 | $ 2,810,000 |
Earnings Per Share - Reconcilia
Earnings Per Share - Reconciliation of Basic and Diluted EPS Calculations (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 28, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Earnings Per Share [Abstract] | |||||||||||
Net income | $ 3,920 | $ 1,192 | $ 10,257 | $ 17,429 | $ (18,440) | $ 5,171 | $ 12,467 | $ 24,455 | $ 32,798 | $ 23,653 | $ 43,138 |
Weighted average shares outstanding for basic EPS | 79,271 | 78,474 | 78,318 | 78,205 | 77,526 | 76,118 | 75,249 | 74,714 | 78,608 | 75,899 | 59,895 |
Effect of dilutive securities: | |||||||||||
Stock options | 3,019 | 3,129 | 2,140 | ||||||||
Restricted Stock | 56 | 13 | 0 | ||||||||
Weighted average shares outstanding for diluted EPS | 81,785 | 81,561 | 81,424 | 81,466 | 77,526 | 79,710 | 77,858 | 77,837 | 81,683 | 79,041 | 62,035 |
Basic EPS (in usd per share) | $ 0.05 | $ 0.02 | $ 0.13 | $ 0.22 | $ (0.24) | $ 0.07 | $ 0.17 | $ 0.33 | $ 0.42 | $ 0.31 | $ 0.72 |
Diluted EPS (in usd per share) | $ 0.05 | $ 0.01 | $ 0.13 | $ 0.21 | $ (0.24) | $ 0.06 | $ 0.16 | $ 0.31 | $ 0.40 | $ 0.30 | $ 0.70 |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||||
Anti-dilutive options, RSUs outstanding excluded from EPS | 350 | 315 | 391 | 356 | 3,130 | 0 | 0 | 0 | |||
Stock options | |||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||||
Anti-dilutive options, RSUs outstanding excluded from EPS | 294 | 0 | 254 |
Segment Reporting - Narrative (
Segment Reporting - Narrative (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 28, 2019USD ($)store | Sep. 28, 2019USD ($) | Jun. 29, 2019USD ($) | Mar. 30, 2019USD ($) | Dec. 29, 2018USD ($)store | Sep. 29, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 28, 2019USD ($)storesegment | Dec. 29, 2018USD ($)store | Dec. 30, 2017USD ($) | |
Segment Reporting Information [Line Items] | |||||||||||
Number of reportable segments | segment | 2 | ||||||||||
Number of host operating segments | segment | 2 | ||||||||||
Number of retail vision centers | store | 1,151 | 1,082 | 1,151 | 1,082 | |||||||
Net revenue | $ | $ 401,763 | $ 431,902 | $ 429,451 | $ 461,215 | $ 355,922 | $ 387,425 | $ 385,532 | $ 407,975 | $ 1,724,331 | $ 1,536,854 | $ 1,375,308 |
Legacy | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Number of retail vision centers | store | 226 | 226 | |||||||||
Legacy | Management of operations | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net revenue | $ | $ 35,500 | $ 34,700 | $ 36,700 | ||||||||
Legacy partner arrangement | Customer concentration risk | Net revenue | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Concentration risk (percent) | 9.30% | ||||||||||
AC Lens Walmart and Sam's Club contact lenses distribution arrangements | Customer concentration risk | Net revenue | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Concentration risk (percent) | 8.70% |
Segment Reporting - Financial D
Segment Reporting - Financial Data by Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 28, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Segment Reporting Information [Line Items] | |||||||||||
Total net revenue | $ 401,763 | $ 431,902 | $ 429,451 | $ 461,215 | $ 355,922 | $ 387,425 | $ 385,532 | $ 407,975 | $ 1,724,331 | $ 1,536,854 | $ 1,375,308 |
Total costs applicable to revenue | $ 187,542 | $ 204,502 | $ 202,506 | $ 211,969 | $ 173,470 | $ 182,588 | $ 177,059 | $ 180,454 | 806,519 | 713,571 | 636,966 |
SG&A | 744,488 | 687,476 | 600,010 | ||||||||
Asset impairment | 8,894 | 17,630 | 4,117 | ||||||||
Other expense, net | 3,611 | 1,487 | 950 | ||||||||
Debt issuance costs | 0 | 200 | 4,527 | ||||||||
Litigation settlement | 0 | 0 | 7,000 | ||||||||
Loss on extinguishment of debt | 9,786 | 0 | 0 | ||||||||
Depreciation and amortization | 87,244 | 74,339 | 61,974 | ||||||||
Interest expense, net | 33,300 | 37,283 | 55,536 | ||||||||
Earnings before income taxes | 30,489 | 4,868 | 4,228 | ||||||||
Products | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total net revenue | 1,426,136 | 1,269,612 | 1,129,313 | ||||||||
Total costs applicable to revenue | 574,351 | 511,406 | 456,078 | ||||||||
Services and plans | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total net revenue | 298,195 | 267,242 | 245,995 | ||||||||
Total costs applicable to revenue | 232,168 | 202,165 | 180,888 | ||||||||
Operating Segments | Owned & Host | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total net revenue | 1,325,000 | 1,173,402 | 1,038,567 | ||||||||
Total costs applicable to revenue | 517,668 | 459,082 | 402,239 | ||||||||
SG&A | 508,239 | 457,618 | 403,848 | ||||||||
Asset impairment | 0 | 0 | 0 | ||||||||
Other expense, net | 0 | 0 | 0 | ||||||||
Debt issuance costs | 0 | 0 | |||||||||
Litigation settlement | 0 | ||||||||||
Loss on extinguishment of debt | 0 | ||||||||||
EBITDA | 299,093 | 256,702 | 232,480 | ||||||||
Operating Segments | Owned & Host | Products | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total net revenue | 1,076,315 | 956,355 | 847,866 | ||||||||
Total costs applicable to revenue | 310,790 | 280,720 | 248,548 | ||||||||
Operating Segments | Owned & Host | Services and plans | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total net revenue | 248,685 | 217,047 | 190,701 | ||||||||
Total costs applicable to revenue | 206,878 | 178,362 | 153,691 | ||||||||
Operating Segments | Legacy | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total net revenue | 160,049 | 154,412 | 153,842 | ||||||||
Total costs applicable to revenue | 74,001 | 67,258 | 64,899 | ||||||||
SG&A | 56,235 | 54,091 | 52,705 | ||||||||
Asset impairment | 0 | 0 | 0 | ||||||||
Other expense, net | 0 | 0 | 0 | ||||||||
Debt issuance costs | 0 | 0 | |||||||||
Litigation settlement | 0 | ||||||||||
Loss on extinguishment of debt | 0 | ||||||||||
EBITDA | 29,813 | 33,063 | 36,238 | ||||||||
Operating Segments | Legacy | Products | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total net revenue | 105,450 | 103,890 | 103,887 | ||||||||
Total costs applicable to revenue | 48,712 | 46,986 | 48,275 | ||||||||
Operating Segments | Legacy | Services and plans | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total net revenue | 54,599 | 50,522 | 49,955 | ||||||||
Total costs applicable to revenue | 25,289 | 20,272 | 16,624 | ||||||||
Operating Segments | Corporate/Other | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total net revenue | 245,218 | 212,427 | 191,890 | ||||||||
Total costs applicable to revenue | 215,053 | 186,990 | 170,362 | ||||||||
SG&A | 180,014 | 175,767 | 143,457 | ||||||||
Asset impairment | 8,894 | 17,630 | 4,117 | ||||||||
Other expense, net | 3,611 | 1,487 | 950 | ||||||||
Debt issuance costs | 200 | 4,527 | |||||||||
Litigation settlement | 7,000 | ||||||||||
Loss on extinguishment of debt | 9,786 | ||||||||||
EBITDA | (172,140) | (169,647) | (138,523) | ||||||||
Operating Segments | Corporate/Other | Products | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total net revenue | 245,206 | 208,875 | 179,718 | ||||||||
Total costs applicable to revenue | 215,052 | 183,459 | 159,789 | ||||||||
Operating Segments | Corporate/Other | Services and plans | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total net revenue | 12 | 3,552 | 12,172 | ||||||||
Total costs applicable to revenue | 1 | 3,531 | 10,573 | ||||||||
Reconciling Items | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total net revenue | (5,936) | (3,387) | (8,991) | ||||||||
Total costs applicable to revenue | (203) | 241 | (534) | ||||||||
SG&A | 0 | 0 | 0 | ||||||||
Asset impairment | 0 | 0 | 0 | ||||||||
Other expense, net | 0 | 0 | 0 | ||||||||
Debt issuance costs | 0 | 0 | |||||||||
Litigation settlement | 0 | ||||||||||
Loss on extinguishment of debt | 0 | ||||||||||
EBITDA | (5,733) | (3,628) | (8,457) | ||||||||
Reconciling Items | Products | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total net revenue | (835) | 492 | (2,158) | ||||||||
Total costs applicable to revenue | (203) | 241 | (534) | ||||||||
Reconciling Items | Services and plans | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total net revenue | (5,101) | (3,879) | (6,833) | ||||||||
Total costs applicable to revenue | $ 0 | $ 0 | $ 0 |
Segment Reporting - Consolidate
Segment Reporting - Consolidated Net Product Revenue Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 28, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Revenue from External Customer [Line Items] | |||||||||||
Total net revenue | $ 401,763 | $ 431,902 | $ 429,451 | $ 461,215 | $ 355,922 | $ 387,425 | $ 385,532 | $ 407,975 | $ 1,724,331 | $ 1,536,854 | $ 1,375,308 |
Products | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Total net revenue | 1,426,136 | 1,269,612 | 1,129,313 | ||||||||
Eyeglasses and sunglasses | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Total net revenue | 947,729 | 851,328 | 763,268 | ||||||||
Contact lenses | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Total net revenue | 471,042 | 410,839 | 358,808 | ||||||||
Accessories and other | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Total net revenue | $ 7,365 | $ 7,445 | $ 7,237 |
Restricted Cash (Details)
Restricted Cash (Details) - USD ($) $ in Thousands | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 |
Reconciliation of cash, cash equivalents, and restricted cash | ||||
Cash and cash equivalents | $ 39,342 | $ 17,132 | $ 4,208 | |
Restricted cash included in other assets | 965 | 866 | 986 | |
Total cash, cash equivalents and restricted cash | $ 40,307 | $ 17,998 | $ 5,194 | $ 5,687 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Accumulated Other Comprehensive Loss, Net of Tax [Roll Forward] | |||
Beginning balance | $ 743,154 | $ 654,600 | $ 399,581 |
Ending balance | 776,437 | 743,154 | 654,600 |
Cash Flow Hedges | |||
Accumulated Other Comprehensive Loss, Net of Tax [Roll Forward] | |||
Beginning balance | (2,810) | (9,868) | (14,556) |
Other comprehensive income (loss) before reclassification | (5,814) | 3,182 | (1,051) |
Tax effect of other comprehensive income (loss) before reclassification | 1,489 | (815) | 436 |
Amount reclassified from AOCL | 4,464 | 6,306 | 8,664 |
Tax effect of amount reclassified from AOCL | (1,143) | (1,615) | (3,361) |
Net current period other comprehensive income (loss), net of tax | (1,004) | 7,058 | 4,688 |
Ending balance | $ (3,814) | $ (2,810) | $ (9,868) |
Quarterly Financial Informati_3
Quarterly Financial Information (Unaudited) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 28, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Total net revenue | $ 401,763 | $ 431,902 | $ 429,451 | $ 461,215 | $ 355,922 | $ 387,425 | $ 385,532 | $ 407,975 | $ 1,724,331 | $ 1,536,854 | $ 1,375,308 |
Total costs applicable to revenue | 187,542 | 204,502 | 202,506 | 211,969 | 173,470 | 182,588 | 177,059 | 180,454 | 806,519 | 713,571 | 636,966 |
Income from operations | 8,361 | 11,112 | 21,702 | 32,400 | (19,387) | (2,083) | 24,973 | 38,848 | 73,575 | 42,351 | 64,291 |
Net income | $ 3,920 | $ 1,192 | $ 10,257 | $ 17,429 | $ (18,440) | $ 5,171 | $ 12,467 | $ 24,455 | $ 32,798 | $ 23,653 | $ 43,138 |
Weighted average shares outstanding for basic EPS | 79,271 | 78,474 | 78,318 | 78,205 | 77,526 | 76,118 | 75,249 | 74,714 | 78,608 | 75,899 | 59,895 |
Weighted average shares outstanding for diluted EPS | 81,785 | 81,561 | 81,424 | 81,466 | 77,526 | 79,710 | 77,858 | 77,837 | 81,683 | 79,041 | 62,035 |
Basic EPS (in usd per share) | $ 0.05 | $ 0.02 | $ 0.13 | $ 0.22 | $ (0.24) | $ 0.07 | $ 0.17 | $ 0.33 | $ 0.42 | $ 0.31 | $ 0.72 |
Diluted EPS (in usd per share) | $ 0.05 | $ 0.01 | $ 0.13 | $ 0.21 | $ (0.24) | $ 0.06 | $ 0.16 | $ 0.31 | $ 0.40 | $ 0.30 | $ 0.70 |
Anti-dilutive options, RSUs outstanding excluded from EPS | 350 | 315 | 391 | 356 | 3,130 | 0 | 0 | 0 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event - Walmart | Jan. 22, 2020vision_center |
Subsequent Event [Line Items] | |
Amended management and services agreement, extension term (in years) | 6 months |
Amended management and services agreement, renewal term (in months) | 3 years |
Amended management and services agreement, number of additional vision centers | 5 |
Schedule I - Condensed Financ_2
Schedule I - Condensed Financial Information of Registrant - Condensed Balance Sheets (Details) - USD ($) $ in Thousands | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 |
Current assets: | ||||
Cash and cash equivalents | $ 39,342 | $ 17,132 | $ 4,208 | |
Accounts receivable, net | 44,475 | 50,735 | ||
Total current assets | 234,639 | 214,704 | ||
Total non-current assets | 1,798,086 | 1,446,685 | ||
Total assets | 2,032,725 | 1,661,389 | ||
Non-current liabilities: | ||||
Other non-current liabilities | 13,731 | 53,964 | ||
Stockholders’ equity: | ||||
Common stock, $0.01 par value; 200,000 shares authorized; 80,603 and 78,246 shares issued as of December 28, 2019 and December 29, 2018, respectively; 79,678 and 78,167 shares outstanding as of December 28, 2019 and December 29, 2018, respectively | 805 | 782 | ||
Additional paid-in capital | 700,121 | 672,503 | ||
Accumulated other comprehensive loss | (3,814) | (2,810) | ||
Retained earnings | 107,132 | 74,840 | ||
Treasury stock, at cost; 925 and 79 shares as of December 28, 2019 and December 29, 2018, respectively | (27,807) | (2,161) | ||
Total stockholders’ equity | 776,437 | 743,154 | $ 654,600 | $ 399,581 |
Total liabilities and stockholders’ equity | 2,032,725 | 1,661,389 | ||
Parent Company | ||||
Current assets: | ||||
Cash and cash equivalents | 55 | 246 | ||
Accounts receivable, net | 534 | |||
Total current assets | 589 | 246 | ||
Deferred income taxes | 320 | 393 | ||
Investment in subsidiary | 804,443 | 745,198 | ||
Total non-current assets | 804,763 | 745,591 | ||
Total assets | 805,352 | 745,837 | ||
Current liabilities: | ||||
Other current liabilities | 50 | 65 | ||
Non-current liabilities: | ||||
Other non-current liabilities | 28,865 | 2,618 | ||
Stockholders’ equity: | ||||
Common stock, $0.01 par value; 200,000 shares authorized; 80,603 and 78,246 shares issued as of December 28, 2019 and December 29, 2018, respectively; 79,678 and 78,167 shares outstanding as of December 28, 2019 and December 29, 2018, respectively | 805 | 782 | ||
Additional paid-in capital | 700,121 | 672,503 | ||
Accumulated other comprehensive loss | (3,814) | (2,810) | ||
Retained earnings | 107,132 | 74,840 | ||
Treasury stock, at cost; 925 and 79 shares as of December 28, 2019 and December 29, 2018, respectively | (27,807) | (2,161) | ||
Total stockholders’ equity | 776,437 | 743,154 | ||
Total liabilities and stockholders’ equity | $ 805,352 | $ 745,837 |
Schedule I - Condensed Financ_3
Schedule I - Condensed Financial Information of Registrant - Condensed Balance Sheets Additional Information (Details) - $ / shares | Dec. 28, 2019 | Aug. 12, 2019 | Dec. 29, 2018 | Oct. 30, 2017 | Feb. 02, 2017 |
Condensed Financial Statements, Captions [Line Items] | |||||
Common stock, par value (in usd per share) | $ 0.01 | $ 0.01 | $ 0.01 | ||
Common stock, authorized (shares) | 200,000,000 | 200,000,000 | 200,000,000 | ||
Common stock, issued (shares) | 80,603,000 | 78,246,000 | |||
Common stock, outstanding (shares) | 79,678,000 | 78,167,000 | 110,500,000 | ||
Treasury stock, at cost (shares) | 925,000 | 79,000 | |||
Parent Company | |||||
Condensed Financial Statements, Captions [Line Items] | |||||
Common stock, par value (in usd per share) | $ 0.01 | $ 0.01 | |||
Common stock, authorized (shares) | 200,000,000 | 200,000,000 | |||
Common stock, issued (shares) | 80,603,000 | 78,246,000 | |||
Common stock, outstanding (shares) | 79,678,000 | 78,167,000 | |||
Treasury stock, at cost (shares) | 925,000 | 79,000 |
Schedule I - Condensed Financ_4
Schedule I - Condensed Financial Information of Registrant - Condensed Statements of Operations and Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 28, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Total net revenue | $ 401,763 | $ 431,902 | $ 429,451 | $ 461,215 | $ 355,922 | $ 387,425 | $ 385,532 | $ 407,975 | $ 1,724,331 | $ 1,536,854 | $ 1,375,308 |
Cost applicable to revenue | 187,542 | 204,502 | 202,506 | 211,969 | 173,470 | 182,588 | 177,059 | 180,454 | 806,519 | 713,571 | 636,966 |
Operating expenses | 844,237 | 780,932 | 674,051 | ||||||||
Income (Loss) before income taxes | 30,489 | 4,868 | 4,228 | ||||||||
Income tax provision (benefit) | (2,309) | (18,785) | (38,910) | ||||||||
Net income | 3,920 | 1,192 | 10,257 | 17,429 | (18,440) | 5,171 | 12,467 | 24,455 | 32,798 | 23,653 | 43,138 |
Comprehensive income: | |||||||||||
Net income | $ 3,920 | $ 1,192 | $ 10,257 | $ 17,429 | $ (18,440) | $ 5,171 | $ 12,467 | $ 24,455 | 32,798 | 23,653 | 43,138 |
Unrealized gain (loss) on hedge instruments | (1,350) | 9,488 | 7,613 | ||||||||
Tax provision (benefit) of unrealized gain (loss) on hedge instruments | 346 | (2,430) | (2,925) | ||||||||
Comprehensive income | 31,794 | 30,711 | 47,826 | ||||||||
Parent Company | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Total net revenue | 0 | 0 | 0 | ||||||||
Cost applicable to revenue | 0 | 0 | 0 | ||||||||
Operating expenses | 256 | 265 | 218 | ||||||||
Income (Loss) before income taxes | (256) | (265) | (218) | ||||||||
Income tax provision (benefit) | 71 | (91) | (85) | ||||||||
Income (Loss) before equity in net income of subsidiaries | (327) | (174) | (133) | ||||||||
Net income of subsidiaries | 33,125 | 23,827 | 43,271 | ||||||||
Net income | 32,798 | 23,653 | 43,138 | ||||||||
Comprehensive income: | |||||||||||
Net income | 32,798 | 23,653 | 43,138 | ||||||||
Unrealized gain (loss) on hedge instruments | (1,350) | 9,488 | 7,613 | ||||||||
Tax provision (benefit) of unrealized gain (loss) on hedge instruments | 346 | (2,430) | (2,925) | ||||||||
Comprehensive income | $ 31,794 | $ 30,711 | $ 47,826 |
Schedule I - Condensed Financ_5
Schedule I - Condensed Financial Information of Registrant - Condensed Statements of Cash Flows (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Cash flows from operating activities: | |||
Net cash provided by (used for) operating activities | $ 165,081 | $ 106,628 | $ 90,252 |
Cash flows from investing activities: | |||
Net cash used for investing activities | (100,631) | (104,221) | (94,583) |
Cash flows from financing activities: | |||
Dividend to stockholders | 0 | 0 | (170,983) |
Net cash provided by (used for) financing activities | (42,141) | 10,397 | 3,838 |
Net change in cash, cash equivalents and restricted cash | 22,309 | 12,804 | (493) |
Cash and cash equivalents and restricted cash, beginning of year | 17,998 | 5,194 | 5,687 |
Cash and cash equivalents and restricted cash, end of year | 40,307 | 17,998 | 5,194 |
Parent Company | |||
Cash flows from operating activities: | |||
Net cash provided by (used for) operating activities | 25,455 | 223 | 11 |
Cash flows from investing activities: | |||
Dividend from subsidiary | 0 | 0 | 170,983 |
Investment in subsidiary | (15,090) | (19,802) | (373,024) |
Net cash used for investing activities | (15,090) | (19,802) | (202,041) |
Cash flows from financing activities: | |||
Proceeds from stock option exercises and employee stock purchase plan | 15,090 | 19,802 | 1,092 |
Proceeds from sale of common stock | 0 | 0 | 371,932 |
Dividend to stockholders | 0 | 0 | (170,983) |
Purchase of common stock | (25,646) | 0 | 0 |
Net cash provided by (used for) financing activities | (10,556) | 19,802 | 202,041 |
Net change in cash, cash equivalents and restricted cash | (191) | 223 | 11 |
Cash and cash equivalents and restricted cash, beginning of year | 246 | 23 | 12 |
Cash and cash equivalents and restricted cash, end of year | $ 55 | $ 246 | $ 23 |
Schedule I - Condensed Financ_6
Schedule I - Condensed Financial Information of Registrant - Notes to Condensed Financial Statements (Details) - USD ($) | Oct. 30, 2017 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | Jul. 18, 2019 | Feb. 02, 2017 |
Condensed Financial Statements, Captions [Line Items] | ||||||
Repayments of long-term debt | $ 591,925,000 | $ 204,275,000 | $ 367,660,000 | |||
Long-term debt, gross | 540,375,000 | |||||
Term Loan | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Long-term debt, gross | 540,375,000 | 564,300,000 | ||||
Term Loan | First Lien Credit Agreement | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Aggregate principal amount | $ 175,000,000 | |||||
Term Loan | Second Lien Term Loans | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Repayments of long-term debt | $ 125,000,000 | |||||
Term Loan | First Lien - Term Loan B | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Repayments of long-term debt | $ 235,000,000 | |||||
Long-term debt, gross | 0 | 364,300,000 | ||||
Term Loan | Revolving Credit Facility, due July 18, 2024 | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Long-term debt, gross | 148,000,000 | $ 0 | ||||
Line of Credit | Revolving Credit Facility, due July 18, 2024 | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Aggregate principal amount | $ 300,000,000 | |||||
Credit facility borrowing capacity | $ 300,000,000 | |||||
Amount outstanding on line of credit | 148,000,000 | |||||
Outstanding letters of credit | $ 5,700,000 |
Uncategorized Items - nvhi20191
Label | Element | Value |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | $ 673,630,000 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | 742,648,000 |
AOCI Attributable to Parent [Member] | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | (9,868,000) |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | (2,810,000) |
Retained Earnings [Member] | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | 74,334,000 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | 51,187,000 |
Common Stock [Member] | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | 746,000 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | $ 782,000 |
Shares Outstanding, Adjusted Balance | eye_SharesOutstandingAdjustedBalance | 78,167,000 |
Shares Outstanding, Adjusted Balance | eye_SharesOutstandingAdjustedBalance | 74,654,000 |
Additional Paid-in Capital [Member] | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | $ 631,798,000 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | 672,503,000 |
Treasury Stock [Member] | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | (233,000) |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | $ (2,161,000) |