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Cover Page - shares	9 Months Ended
Cover Page - shares	Sep. 28, 2019	Oct. 31, 2019
Cover page.
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 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	Q3
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 Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		79,117,971

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 28, 2019	Dec. 29, 2018
Current assets:
Cash and cash equivalents	$ 94,086	$ 17,132
Accounts receivable, net	50,655	50,735
Inventories	111,894	116,022
Prepaid expenses and other current assets	22,014	30,815
Total current assets	278,649	214,704
Property and equipment, net	372,069	355,117
Other assets:
Goodwill	777,613	777,613
Right of use assets	344,179	0
Other assets	6,575	8,876
Total non-current assets	1,799,775	1,446,685
Total assets	2,078,424	1,661,389
Current liabilities:
Accounts payable	45,337	43,642
Other payables and accrued expenses	101,556	81,004
Unearned revenue	29,224	27,295
Deferred revenue	57,231	52,144
Current maturities of long-term debt and finance lease obligations	13,736	7,567
Current operating lease obligations	56,814	0
Total current liabilities	303,898	211,652
Long-term debt and finance lease obligations, less current portion and debt discount	584,250	570,545
Non-current operating lease obligations	326,492	0
Other non-current liabilities:
Deferred revenue	22,115	20,134
Other liabilities	13,407	53,964
Deferred income taxes, net	62,791	61,940
Total other non-current liabilities	98,313	136,038
Commitments and contingencies
Stockholders’ equity:
Common stock, $0.01 par value; 200,000 shares authorized; 79,920 and 78,246 shares issued as of September 28, 2019 and December 29, 2018, respectively; 79,022 and 78,167 shares outstanding as of September 28, 2019 and December 29, 2018, respectively	800	782
Additional paid-in capital	693,541	672,503
Accumulated other comprehensive loss	(4,921)	(2,810)
Retained earnings	103,212	74,840
Treasury stock, at cost; 898 and 79 shares as of September 28, 2019 and December 29, 2018, respectively	(27,161)	(2,161)
Total stockholders’ equity	765,471	743,154
Total liabilities and stockholders’ equity	2,078,424	1,661,389
Trademarks and trade names
Other assets:
Intangible assets	240,547	240,547
Other intangible assets, net
Other assets:
Intangible assets	$ 58,792	$ 64,532

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 28, 2019	Dec. 29, 2018
Statement of Financial Position [Abstract]
Common stock, par value (in usd per share)	$ 0.01	$ 0.01
Common stock, authorized (shares)	200,000,000	200,000,000
Common stock, issued (shares)	79,920,000	78,246,000
Common stock, outstanding (shares)	79,022,000	78,167,000
Treasury stock (shares)	898,000	79,000

Condensed Consolidated Statements of Operations and Comprehensive Income - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 28, 2019	Sep. 29, 2018	Sep. 28, 2019	Sep. 29, 2018
Revenue:
Total net revenue	$ 431,902	$ 387,425	$ 1,322,568	$ 1,180,932
Costs applicable to revenue (exclusive of depreciation and amortization):
Total costs applicable to revenue	204,502	182,588	618,978	540,101
Operating expenses:
Selling, general and administrative	190,290	185,028	566,444	521,344
Depreciation and amortization	22,336	19,344	63,570	54,783
Asset impairment	3,516	2,137	7,387	2,137
Other expense, net	146	411	975	829
Total operating expenses	216,288	206,920	638,376	579,093
Income (loss) from operations	11,112	(2,083)	65,214	61,738
Interest expense, net	7,873	9,407	25,902	28,144
Loss on extinguishment of debt	9,786	0	9,786	0
Earnings (loss) before income taxes	(6,547)	(11,490)	29,526	33,594
Income tax provision (benefit)	(7,739)	(16,661)	647	(8,499)
Net income	$ 1,192	$ 5,171	$ 28,879	$ 42,093
Earnings per share:
Basic (in usd per share)	$ 0.02	$ 0.07	$ 0.37	$ 0.56
Diluted (in usd per share)	$ 0.01	$ 0.06	$ 0.35	$ 0.54
Weighted average shares outstanding:
Basic (shares)	78,474	76,118	78,387	75,361
Diluted (shares)	81,561	79,710	81,510	78,571
Comprehensive income:
Net income	$ 1,192	$ 5,171	$ 28,879	$ 42,093
Unrealized gain (loss) on hedge instruments	681	2,267	(2,837)	11,842
Tax provision (benefit) of unrealized gain (loss) on hedge instruments	175	580	(727)	3,033
Comprehensive income	1,698	6,858	26,769	50,902
Products
Revenue:
Total net revenue	355,789	319,312	1,096,482	977,497
Costs applicable to revenue (exclusive of depreciation and amortization):
Total costs applicable to revenue	144,518	130,951	444,177	389,560
Services and plans
Revenue:
Total net revenue	76,113	68,113	226,086	203,435
Costs applicable to revenue (exclusive of depreciation and amortization):
Total costs applicable to revenue	$ 59,984	$ 51,637	$ 174,801	$ 150,541

Condensed Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Additional Paid-In Capital	Accumulated Other Comprehensive Loss	Retained Earnings	Treasury Stock
Beginning balance (shares) at Dec. 30, 2017		74,654
Beginning 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 (shares)		449
Issuance of common stock	2,248	$ 5	2,243
Stock based compensation	1,596		1,596
Purchase of treasury stock (shares)		(25)
Purchase of treasury stock	(855)					(855)
Unrealized gain (loss) on hedge instruments, net of tax	4,624			4,624
Net income	24,455				24,455
Ending balance (shares) at Mar. 31, 2018		75,078
Ending balance at Mar. 31, 2018	705,698	$ 751	635,637	(5,244)	75,642	(1,088)
Beginning balance (shares) at Dec. 30, 2017		74,654
Beginning balance at Dec. 30, 2017	654,600	$ 746	631,798	(9,868)	32,157	(233)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	42,093
Ending balance (shares) at Sep. 29, 2018		77,136
Ending balance at Sep. 29, 2018	751,338	$ 770	659,480	(1,059)	93,280	(1,133)
Beginning balance (shares) at Mar. 31, 2018		75,078
Beginning balance at Mar. 31, 2018	705,698	$ 751	635,637	(5,244)	75,642	(1,088)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock (shares)		256
Issuance of common stock	1,218	$ 2	1,216
Stock based compensation	1,524		1,524
Purchase of treasury stock	(5)					(5)
Unrealized gain (loss) on hedge instruments, net of tax	2,498			2,498
Net income	12,467				12,467
Ending balance (shares) at Jun. 30, 2018		75,334
Ending balance at Jun. 30, 2018	723,400	$ 753	638,377	(2,746)	88,109	(1,093)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock (shares)		1,803
Issuance of common stock	10,502	$ 17	10,485
Stock based compensation	10,618		10,618
Purchase of treasury stock (shares)		(1)
Purchase of treasury stock	(40)					(40)
Unrealized gain (loss) on hedge instruments, net of tax	1,687			1,687
Net income	5,171				5,171
Ending balance (shares) at Sep. 29, 2018		77,136
Ending balance at Sep. 29, 2018	751,338	$ 770	659,480	(1,059)	93,280	(1,133)
Beginning balance (shares) at Dec. 29, 2018		78,167
Beginning 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 (shares)		51
Issuance of common stock	513	$ 1	512
Stock based compensation	2,937		2,937
Unrealized gain (loss) on hedge instruments, net of tax	(947)			(947)
Net income	17,429				17,429
Ending balance (shares) at Mar. 30, 2019		78,218
Ending balance at Mar. 30, 2019	762,580	$ 783	675,952	(3,757)	91,763	(2,161)
Beginning balance (shares) at Dec. 29, 2018		78,167
Beginning balance at Dec. 29, 2018	743,154	$ 782	672,503	(2,810)	74,840	(2,161)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	28,879
Ending balance (shares) at Sep. 28, 2019		79,022
Ending balance at Sep. 28, 2019	765,471	$ 800	693,541	(4,921)	103,212	(27,161)
Beginning balance (shares) at Mar. 30, 2019		78,218
Beginning balance at Mar. 30, 2019	762,580	$ 783	675,952	(3,757)	91,763	(2,161)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock (shares)		266
Issuance of common stock	1,553	$ 3	1,550
Stock based compensation	1,714		1,714
Unrealized gain (loss) on hedge instruments, net of tax	(1,670)			(1,670)
Net income	10,257				10,257
Ending balance (shares) at Jun. 29, 2019		78,484
Ending balance at Jun. 29, 2019	774,434	$ 786	679,216	(5,427)	102,020	(2,161)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock (shares)		1,357
Issuance of common stock	8,238	$ 14	8,224
Stock based compensation	6,101		6,101
Purchase of treasury stock (shares)		(819)
Purchase of treasury stock	(25,000)					(25,000)
Unrealized gain (loss) on hedge instruments, net of tax	506			506
Net income	1,192				1,192
Ending balance (shares) at Sep. 28, 2019		79,022
Ending balance at Sep. 28, 2019	$ 765,471	$ 800	$ 693,541	$ (4,921)	$ 103,212	$ (27,161)

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 28, 2019	Sep. 29, 2018
Cash flows from operating activities:
Net income	$ 28,879	$ 42,093
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	63,570	54,783
Amortization of loan costs	1,071	1,287
Asset impairment	7,387	2,137
Deferred income tax (benefit) expense	651	(8,696)
Stock based compensation expense	10,840	13,749
Inventory adjustments	3,065	2,491
Bad debt expense	6,265	4,981
Loss on extinguishment of debt	9,786	0
Other	1,963	1,555
Changes in operating assets and liabilities:
Accounts receivable	(6,023)	(663)
Inventories	1,063	(10,620)
Other assets	11,373	381
Accounts payable	1,694	(4,823)
Deferred revenue	7,068	6,235
Other liabilities	22,286	11,062
Net cash provided by operating activities	170,938	115,952
Cash flows from investing activities:
Purchase of property and equipment	(76,472)	(78,813)
Other	564	136
Net cash used for investing activities	(75,908)	(78,677)
Cash flows from financing activities:
Proceeds from issuance of long-term debt, net of discounts	566,550	0
Proceeds from exercise of stock options	9,992	14,032
Principal payments on long-term debt	(564,300)	(4,275)
Purchase of treasury stock	(25,000)	(900)
Payments on finance lease obligations	(2,054)
Payments on finance lease obligations		(1,256)
Payments of debt issuance costs	(2,930)	0
Net cash provided by (used for) financing activities	(17,742)	7,601
Net change in cash, cash equivalents and restricted cash	77,288	44,876
Cash, cash equivalents and restricted cash, beginning of year	17,998	5,193
Cash, cash equivalents and restricted cash, end of period	95,286	50,069
Supplemental cash flow disclosure information:
Cash paid for interest	25,182	28,988
Property and equipment accrued at the end of the period	13,808	9,060
Right of use assets acquired under finance leases	9,551	9,722
Right of use assets acquired under operating leases	84,643	0
Reconciliation of Cash, Cash Equivalents and Restricted Cash:
Total cash, cash equivalents and restricted cash	$ 17,998	$ 5,193

Description of Business and Basis of Presentation	9 Months Ended
Description of Business and Basis of Presentation	Sep. 28, 2019
Accounting Policies [Abstract]
Description of Business and Basis of Presentation	Description of Business and Basis of Presentation Nature of Operations National Vision Holdings, Inc. (“NVHI,” the “Company,” “we,” “our,” or “us”) is a holding company whose operating subsidiaries include its indirect wholly owned subsidiary, National Vision, Inc. (“NVI”) and NVI’s direct wholly owned subsidiaries. We are a leading value retailer of eyeglasses and contact lenses in the United States and its territories. We operated 1,145 and 1,082 retail optical locations as of September 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 stores, and our management and services arrangement with Walmart (“Legacy”). Basis of Presentation We prepared the accompanying unaudited interim condensed consolidated financial statements in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and, therefore, do not include all information and disclosures required by U.S. GAAP for complete consolidated financial statements. The condensed consolidated balance sheet as of December 29, 2018 has been derived from the audited consolidated balance sheet for the fiscal year then ended. These condensed consolidated financial statements reflect all normal and recurring adjustments which are, in the opinion of management, necessary to present fairly the Company’s consolidated financial position as of September 28, 2019, the consolidated results of operations and comprehensive income, the statements of changes in stockholders’ equity for the three and nine months ended September 28, 2019 and September 29, 2018, and its statements of cash flows for the nine months ended September 28, 2019 and September 29, 2018. Certain information and disclosures normally included in our annual consolidated financial statements have been condensed or omitted; however, we believe that the disclosures included herein are sufficient for a fair presentation of the information presented. These condensed consolidated financial statements should be read in conjunction with our audited consolidated financial statements and the notes thereto for the fiscal year ended December 29, 2018 included in the Company’s Annual Report on Form 10-K filed with the SEC on February 27, 2019. The Company’s significant accounting policies are set forth in Note 1 within those consolidated financial statements. We use the same accounting policies in preparing interim condensed consolidated financial information and annual consolidated financial statements. There were no changes to our significant accounting policies during the nine months ended September 28, 2019, except for the adoption of Accounting Standards Update (“ASU”) 2016-02, Leases. See “Adoption of New Accounting Pronouncements” below for further discussion. The condensed consolidated financial statements include our accounts and those of our subsidiaries, all of which are wholly-owned. All intercompany balances and transactions have been eliminated in consolidation. Fiscal Year Our fiscal year consists of 52 or 53 weeks ending on the Saturday closest to December 31. Fiscal year 2019 contains 52 weeks and will end on December 28, 2019. All three and nine month periods presented herein contain 13 and 39 weeks, respectively. All references to years and quarters relate to fiscal periods rather than calendar periods. Seasonality The consolidated results of operations for the three and nine months ended September 28, 2019 and September 29, 2018 are not necessarily indicative of the results to be expected for the full fiscal year due to seasonality and uncertainty of general economic conditions that may impact our key end markets. Historically, our business has realized a higher portion of net revenue, income from operations, and cash flows from operations in the first fiscal quarter, and a lower portion of net revenue, income from operations, and cash flows from operations in the fourth fiscal quarter. The seasonally larger first quarter is attributable primarily to the timing of our customers’ personal income tax refunds and annual health insurance program start or reset periods. Seasonality related to fourth quarter holiday spending by retail customers generally does not impact our business. Our quarterly consolidated results may also be affected by the timing of new store openings, store closings, and certain holidays. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Asset Impairment We evaluate impairment of long-lived tangible 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 shorter of the remaining useful life or the remaining term of the lease are less than the carrying value of the subject assets, we then measure impairment based on a discounted cash flow model and market-based indications of value of the ROU asset and record an impairment charge as the excess of carrying value over estimated fair value. As directed in the accounting guidance for long-lived assets held and used, we use entity-specific assumptions related to our anticipated use of the assets when developing the projected undiscounted cash flows. We identified indicators of impairment of certain stores and recorded $3.5 million and $7.4 million of related asset impairment charges during the three and nine months ended September 28, 2019, respectively, in Corporate/Other. These impairment charges were primarily driven by lower than projected customer sales volume in certain stores. The estimated fair value of the impaired assets was $14.6 million as of September 28, 2019; this value includes fair value estimates related to impairments recorded in the first and second quarters of 2019. The cash flows used in the estimation were discounted to fair value using a rate of 8%. 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. The market-based indications of value of ROU assets were based on third-party information without adjustment. These measurements were classified as Level 3 measurements in the fair value hierarchy. Income Taxes Our income tax rate for the three months ended September 28, 2019 reflected our statutory federal and state rate of 25.6%, offset by a discrete benefit of $6.3 million associated primarily with stock option exercises. Our income tax benefit for the nine months ended September 28, 2019 reflected income tax expense at our statutory federal and state rate of 25.6%, offset by a discrete benefit of $7.7 million associated primarily with stock option exercises. In comparison, the income tax rate associated with the three and nine months ended September 29, 2018 was reduced by $13.9 million and $18.0 million respective income tax benefit resulting from stock option exercises. Secondary Offering and Common Stock Repurchase 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 owns any shares of our common stock as of September 28, 2019. 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 for the nine months ended September 28, 2019. As a result of the offering, we incurred $4.2 million of non-cash stock-based compensation expense during the three months ended September 28, 2019. We additionally recorded $1.1 million in long-term cash incentive compensation expense and $0.4 million in offering related expenses in selling, general and administrative (“SG&A”) during the three months ended September 28, 2019. Adoption of New Accounting Pronouncements Leases. In February 2016, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2016-02, Leases. This new guidance establishes a ROU model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases are classified as either finance or operating, with such classification affecting the pattern of expense recognition in the statement of operations. Disclosure of key information about leasing arrangements is also required. We adopted ASU No. 2016-02, as amended, as of December 30, 2018 (the first day of fiscal year 2019), using the modified retrospective transition approach without adjusting the comparative periods presented. We elected the package of practical expedients permitted under the transition guidance within the new standard, which allowed us to carry forward historical lease classification for leases in existence as of the adoption date, to not assess whether any expired or existing contracts are leases or contain leases and to not assess whether unamortized initial direct costs for existing leases meet the definition of initial direct costs. In addition, we elected the practical expedients to not separate lease components from non-lease components and to not apply this new guidance to leases with terms of less than 12 months. Upon adoption, we recorded operating lease liabilities of approximately $349.7 million as of December 30, 2018. The Company treated tenant improvement allowances (“TIAs”) and deferred rent of $28.6 million and $11.9 million, respectively, as of December 30, 2018 as reductions of 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. 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. The Company is in the process of assessing the new guidance. 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. The Company is in the process of assessing the new guidance.

Details of Certain Balance Sheet Accounts

9 Months Ended

Sep. 28, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Details of Certain Balance Sheet Accounts



In thousands	As of September 28, 2019			As of December 29, 2018
Accounts receivable, net:
Trade receivables	$	27,879		$	27,356
Credit card receivables	15,131			16,636
Tenant improvement allowances receivable	6,183			5,149
Other receivables	4,544			4,206
Allowance for uncollectible accounts	(3,082		)	(2,612		)
	$	50,655		$	50,735



In thousands	As of September 28, 2019		As of December 29, 2018
Inventories:
Raw materials and work in process ⁽¹⁾	$	57,844	$	59,946
Finished goods	54,050		56,076
	$	111,894	$	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.



In thousands	As of September 28, 2019		As of December 29, 2018
Property and equipment, net:
Land and building	$	3,632	$	3,632
Equipment	186,181		160,958
Information systems hardware and software	113,127		101,809
Furniture and fixtures	53,922		48,992
Leasehold improvements	207,113		186,499
Construction in progress	28,299		40,697
Right of use assets under finance leases	36,437		25,446
	628,711		568,033
Less: Accumulated depreciation	256,642		212,916
	$	372,069	$	355,117



In thousands	As of September 28, 2019		As of December 29, 2018
Other payables and accrued expenses:
Employee compensation and benefits	$	40,347	$	20,529
Advertising	2,565		2,076
Self-insurance reserves	8,464		8,117
Reserves for customer returns and remakes	7,606		4,645
Capital expenditures	11,532		14,078
Legacy management and services agreement	6,642		5,383
Fair value of derivative liabilities	6,260		3,130
Supplies and other store support expenses	3,038		4,929
Litigation settlements	3,894		3,938
Other	11,208		14,179
	$	101,556	$	81,004



In thousands	As of September 28, 2019		As of December 29, 2018
Other non-current liabilities:
Fair value of derivative liabilities	$	3,214	$	3,505
Tenant improvements ⁽¹⁾	—		30,851
Deferred rental expenses ⁽¹⁾	—		11,926
Self-insurance reserves	5,528		5,114
Other	4,665		2,568
	$	13,407	$	53,964
(1) Tenant improvements and deferred rental expenses are used to measure ROU assets on the balance sheet under ASC 842, Leases as of September 28, 2019. See Note 8. “Leases” for further details.

Fair Value Measurements of Financial Assets and Liabilities

9 Months Ended

Sep. 28, 2019

Fair Value Disclosures [Abstract]

Fair Value Measurements of Financial Assets and Liabilities

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

The Company is required to measure certain assets and liabilities at fair value or disclose the fair values of certain assets and liabilities recorded at cost. Accounting standards define fair value as the price that would be received upon sale of an asset or paid upon transfer of a liability in an orderly transaction between market participants at the measurement date. Fair value is estimated assuming the transaction occurs in the principal or most advantageous market for the asset or liability and includes consideration of non-performance risk and credit risk of both parties. A three-tier fair value hierarchy prioritizes the inputs used in measuring fair value. These tiers include:


•	Level 1 - Valuation inputs are based upon unadjusted quoted prices for identical instruments traded in active markets.


•	Level 2 - Valuation inputs are based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in inactive markets, and model-based valuation techniques for which all significant assumptions are observable in the market or can be corroborated by observable market data for substantially the full term of the 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, Cash Equivalents and Restricted Cash

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

Accounts Receivable, 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 (as defined below) 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 $39.4 million and $30.7 million as of September 28, 2019 and December 29, 2018, respectively, compared to carrying values of $34.2 million and $24.5 million, respectively.

Interest Rate Derivatives

The Company is party to three pay-fixed and receive-floating interest rate swap agreements to offset the variability of cash flows in LIBOR-indexed debt interest payments, subject to a 1.0% floor, attributable to changes in the benchmark interest rate from March 13, 2017 to March 13, 2021 related to its credit agreement. During the first quarter of 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.

We recognize as assets or liabilities at fair value the estimated amounts we would receive or pay upon a termination of interest rate swaps prior to their scheduled expiration dates. Fair value is based on information that is model-driven and whose inputs are observable (Level 2 inputs). Cumulative unrealized losses on derivative instruments are recorded in accumulated other comprehensive loss (“AOCL”), net of tax. As of September 28, 2019, the Company expects to reclassify $4.7 million of unrealized losses on derivative instruments, net of tax, from AOCL into earnings in the next 12 months as the derivative instruments mature. See Note 12. “Accumulated Other Comprehensive Loss” for further details.

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

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



In thousands	Notional Amount		Maturity Date	Other Payables and Accrued Expenses		Other Liabilities		AOCL, Net of Tax⁽¹⁾
As of September 28, 2019	$	430,000	March 2021	$	6,260	$	3,214	$	4,921
As of December 29, 2018	$	465,000	March 2021	$	3,130	$	3,505	$	2,810

(1)

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

Long-term Debt

9 Months Ended

Sep. 28, 2019

Debt Disclosure [Abstract]

Debt Disclosure

Long-term Debt

Long-term debt consists of the following:



In thousands	As of September 28, 2019			As of December 29, 2018
First Lien - Term Loan B	$	—		$	364,300
First Lien - Term Loan A	—			200,000
First Lien - Term Loan, due July 18, 2024	420,000			—
First Lien - Revolving credit facility, due July 18, 2024	148,000			—
Total term loans before unamortized discount	568,000			564,300
Unamortized discount	(4,196		)	(10,673		)
Total term loans	563,804			553,627
Less current maturities	(10,500		)	(5,000		)
Term loans - non-current portion	553,304			548,627
Finance lease obligations	34,182			24,485
Less current maturities	(3,236		)	(2,567		)
Long-term debt, less current portion and unamortized debt discount	$	584,250		$	570,545

Scheduled maturities of the Term Loan and revolving credit facility are as follows:



Fiscal Period	In thousands
2019 - fourth quarter	$	2,625
2020	10,500
2021	10,500
2022	13,125
2023	21,000
Thereafter	510,250
	$	568,000

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 (“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, 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.

Stock Incentive Plans

9 Months Ended

Sep. 28, 2019

Share-based Payment Arrangement [Abstract]

Stock Incentive Plans

The following tables summarize stock based compensation activity for the nine months ended September 28, 2019:



	Service-based options ⁽¹⁾		Performance-based options		Total options
Outstanding at December 29, 2018	2,583,380		4,143,781		6,727,161
Granted	299,207		—		299,207
Exercised	(644,766	)	(987,340	)	(1,632,106	)
Forfeited	(17,832	)	(1,258,280	)	(1,276,112	)
Outstanding at September 28, 2019	2,219,989		1,898,161		4,118,150
Vested and exercisable at September 28, 2019	1,386,225		1,767,727		3,153,952
(1) Includes 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.



	Service-based restricted stock unit (RSU) awards		Performance-based restricted stock unit (PSU) awards		Restricted stock (RSA) awards
Outstanding at December 29, 2018	98,076		—		11,431
Granted	108,256		115,665		13,712
Vested	—		—		(4,515	)
Forfeited	(9,833	)	(2,274	)	—
Outstanding at September 28, 2019	196,499		113,391		20,628

During the nine months ended September 28, 2019, the Company made grants of stock options, performance-based restricted stock units (“PSUs”) and/or restricted stock units (“RSUs”) to eligible employees under the National Vision Holdings, Inc. 2017 Omnibus Incentive Plan (the “2017 Omnibus Incentive Plan”). The service-based options granted in fiscal 2019 vest in three equal annual installments, with one-third of the total options vesting on each of the first, second, and third anniversaries of the grant date, subject to continued employment through the applicable vesting date. The PSUs granted in fiscal 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 RSUs granted in fiscal 2019 vest in three equal installments. The weighted average grant date fair values per share of RSUs and PSUs granted during the nine months ended September 28, 2019 were $34.82 and $34.54, respectively.

During the nine months ended September 28, 2019, we granted an aggregate of 13,712 restricted stock awards (“RSAs”) to eligible members of the Company’s Board of Directors under the 2017 Omnibus Incentive Plan. The awards vest one year from the grant date. The weighted average grant date fair value per share of each of the awards, based on the stock price on the date of grant, was $29.18.

The weighted average price of stock options exercised during the nine months ended September 28, 2019 was $5.77. The weighted average grant date fair value of the stock options granted during the nine months ended September 28, 2019 was $13.68.

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



	Three months ended				Nine months ended
In thousands	September 28, 2019		September 29, 2018		September 28, 2019		September 29, 2018
Stock options	$	4,948	$	10,260	$	7,955	$	12,590
RSUs and PSUs	1,028		347		2,598		1,107
RSAs	125		11		201		41
Associate stock purchase plan	22		11		86		11
Total stock based compensation expense	$	6,123	$	10,629	$	10,840	$	13,749

The unrecognized compensation cost as of September 28, 2019 related to RSUs, PSUs, RSAs and service-based stock options granted in 2019 was $2.7 million, $3.2 million, $0.3 million and $3.3 million, respectively.

Related Party Transactions	9 Months Ended
Related Party Transactions	Sep. 28, 2019
Related Party Transactions [Abstract]
Related Party Transactions	Related Party Transactions Transactions with KKR During the three months ended September 28, 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 the three months ended September 28, 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. Equity in Net Assets of Non-Consolidated Investee The Company has an investment in a private start-up company whose principal business is licensing software to eyeglass retailers. Under the equity method of accounting, we are required to record our interest in the investee’s reported net income or loss for each reporting period, which is presented in other expense, net in the Company’s condensed consolidated statements of operations. Our interest in the investee’s net losses was $0.2 million and $1.2 million for the three and nine months ended September 28, 2019, respectively and $0.4 million and $1.0 million for the three and nine months ended September 29, 2018, respectively. There is no remaining investment balance associated with this investee as of September 28, 2019. 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 net carrying amount of the convertible promissory note after applying the investee’s net losses of $0.2 million was $1.3 million, and is included in prepaid expenses and other current assets in the accompanying condensed consolidated balance sheets as of September 28, 2019. Interest income associated with the note was immaterial for the three and nine months ended September 28, 2019 and September 29, 2018.

Revenue From Contracts with Customers

9 Months Ended

Sep. 28, 2019

Revenue from Contract with Customer [Abstract]

Revenue From Contracts with Customers

Revenue from Contracts with Customers

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

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



	Three Months Ended				Nine Months Ended
In thousands	September 28, 2019		September 29, 2018		September 28, 2019		September 29, 2018
Revenues recognized at a point in time	$	394,709	$	352,245	$	1,211,942	$	1,075,355
Revenues recognized over time	37,193		35,180		110,626		105,577
Total net revenue	$	431,902	$	387,425	$	1,322,568	$	1,180,932

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

Contract Assets and Liabilities

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

Accounts Receivable

Accounts receivable associated with revenues consist primarily of trade receivables and credit card receivables. Trade receivables consist primarily of receivables from managed care payors and receivables from major retailers. While we have relationships with almost all vision care insurers in the United States and with all of the major carriers, currently, a relatively small number of payors comprise the majority of our managed care revenues, subjecting us to concentration risk. Trade receivables and credit card receivables are included in accounts receivable, net, on our condensed consolidated balance sheets, and are presented separately in Note 2. “Details of Certain Balance Sheet Accounts.”

Accounts receivable are reduced by allowances for amounts that may become uncollectible. Estimates of our allowance for uncollectible accounts are based on our historical and current operating, billing, and collection trends. Impairment losses (i.e., bad debt expense) recognized on our receivables were approximately $2.4 million and $6.3 million for the three and nine months ended September 28, 2019, respectively, and $1.7 million and $5.0 million for the three and nine months ended September 29, 2018, respectively.

Unsatisfied Performance Obligations (Contract Liabilities)

Our retail customers generally make payments for prescription eyewear products at the time they place an order. Amounts we collect in advance for undelivered merchandise are reported as unearned revenue in the accompanying condensed consolidated balance sheets. Unearned revenue at the end of a reporting period is estimated based on delivery times throughout the current month and generally ranges from four to 10 days. All unearned revenue at the end of a reporting period is recognized in the next fiscal period.

Our contract liabilities also consist of deferred revenue on services and plans obligations, primarily product protection plans and eye care club memberships. The unamortized portion of amounts we collect in advance for these services and plans is reported as deferred revenue in the accompanying condensed consolidated balance sheets (current and non-current portions). Our deferred revenue balance as of September 28, 2019 was $79.3 million. We expect future revenue recognition of this balance of $20.3 million, $42.2 million, $13.4 million, $3.2 million, and $0.2 million in fiscal years 2019, 2020, 2021, 2022, and thereafter, respectively. We recognized $27.9 million and $83.2 million of previously deferred revenues during the three and nine months ended September 28, 2019, respectively and $26.5 million and $78.5 million during the three and nine months ended September 29, 2018, respectively.

Leases

9 Months Ended

Sep. 28, 2019

Leases [Abstract]

Leases

We lease our stores, laboratories, distribution centers, and corporate offices. These leases generally have noncancellable 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 noncancellable 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 and 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 September 28, 2019 (non-current liabilities as of December 29, 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 September 28, 2019
Type	Classification
	ASSETS
Finance	Property and equipment, net	$	29,314
Operating	Right of use assets^(a)	344,179
	Total leased assets	$	373,493
	LIABILITIES
	Current Liabilities:
Finance	Current maturities of long-term debt and finance lease obligations	$	3,236
Operating	Current operating lease obligations	56,814
	Other non-current liabilities:
Finance	Long-term debt and finance lease obligations, less current portion and debt discount	30,946
Operating	Non-current operating lease obligations	326,492
	Total lease liabilities	$	417,488
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) TIA of $34.2 million and deferred rent of $14.2 million are treated as reductions of lease payments used to measure ROU assets as of September 28, 2019.

Finance lease assets are recorded net of accumulated amortization of $7.1 million and $4.1 million as of September 28, 2019 and December 30, 2018, respectively.



In thousands	Three Months Ended September 28, 2019			Nine Months Ended September 28, 2019
Lease cost by classification
Selling, general and administrative:
Operating lease cost ^(a)	$	18,542		$	54,955
Variable lease cost ^(b)	6,745			19,803
Sublease income^(c)	(965		)	(2,881		)

Depreciation and amortization:
Amortization of lease assets	1,176			3,231

Interest expense, net:
Interest on lease liabilities	903			2,689

Net lease cost	$	26,401		$	77,797
(a) Includes short-term leases, which are immaterial.
(b) Includes costs for insurance, real estate taxes and common area maintenance expenses, which are variable as well as lease costs above minimum thresholds for Fred Meyer stores and lease costs for Military stores.
(c) Income from sub-leasing of stores includes rental income from operating lease properties to ophthalmologists and optometrists who are independent contractors.



Lease Term and Discount Rate	As of September 28, 2019
Weighted average remaining lease term (months)
Operating leases	82
Finance leases	91
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; (iv) borrowing rates on five-year and ten-year US Treasuries; and (v) 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	Nine Months Ended September 28, 2019
Other Information	Nine Months Ended September 28, 2019
Cash paid for amounts included in the measurement of lease liabilities
Operating cash outflows - operating leases	$	55,817

The following table summarizes the maturity of our lease liabilities as of September 28, 2019:



In thousands	Operating Leases ^(a)		Finance Leases^(b)
Fiscal Year	Operating Leases ^(a)		Finance Leases^(b)
2019 fourth quarter	$	13,090	$	1,398
2020	77,497		7,196
2021	71,292		7,116
2022	63,978		7,051
2023	56,958		6,077
Thereafter	168,637		20,021
Total lease liabilities	451,452		48,859
Less: Interest	68,146		14,677
Present value of lease liabilities^(c)	$	383,306	$	34,182
(a) Operating lease payments include $75.9 million related to options to extend lease terms that are reasonably certain of being exercised.
(b) Finance lease payments include $1.1 million related to options to extend lease terms that are reasonably certain of being exercised.
(c) The present value of lease liabilities excludes $19.1 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, $14.9 million and $13.9 million during the fiscal years ended 2018, 2017 and 2016, respectively.

Leases

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



In thousands		As of September 28, 2019
Type	Classification
	ASSETS
Finance	Property and equipment, net	$	29,314
Operating	Right of use assets^(a)	344,179
	Total leased assets	$	373,493
	LIABILITIES
	Current Liabilities:
Finance	Current maturities of long-term debt and finance lease obligations	$	3,236
Operating	Current operating lease obligations	56,814
	Other non-current liabilities:
Finance	Long-term debt and finance lease obligations, less current portion and debt discount	30,946
Operating	Non-current operating lease obligations	326,492
	Total lease liabilities	$	417,488
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) TIA of $34.2 million and deferred rent of $14.2 million are treated as reductions of lease payments used to measure ROU assets as of September 28, 2019.

Finance lease assets are recorded net of accumulated amortization of $7.1 million and $4.1 million as of September 28, 2019 and December 30, 2018, respectively.



In thousands	Three Months Ended September 28, 2019			Nine Months Ended September 28, 2019
Lease cost by classification
Selling, general and administrative:
Operating lease cost ^(a)	$	18,542		$	54,955
Variable lease cost ^(b)	6,745			19,803
Sublease income^(c)	(965		)	(2,881		)

Depreciation and amortization:
Amortization of lease assets	1,176			3,231

Interest expense, net:
Interest on lease liabilities	903			2,689

Net lease cost	$	26,401		$	77,797
(a) Includes short-term leases, which are immaterial.
(b) Includes costs for insurance, real estate taxes and common area maintenance expenses, which are variable as well as lease costs above minimum thresholds for Fred Meyer stores and lease costs for Military stores.
(c) Income from sub-leasing of stores includes rental income from operating lease properties to ophthalmologists and optometrists who are independent contractors.



Lease Term and Discount Rate	As of September 28, 2019
Weighted average remaining lease term (months)
Operating leases	82
Finance leases	91
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; (iv) borrowing rates on five-year and ten-year US Treasuries; and (v) 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	Nine Months Ended September 28, 2019
Other Information	Nine Months Ended September 28, 2019
Cash paid for amounts included in the measurement of lease liabilities
Operating cash outflows - operating leases	$	55,817

The following table summarizes the maturity of our lease liabilities as of September 28, 2019:



In thousands	Operating Leases ^(a)		Finance Leases^(b)
Fiscal Year	Operating Leases ^(a)		Finance Leases^(b)
2019 fourth quarter	$	13,090	$	1,398
2020	77,497		7,196
2021	71,292		7,116
2022	63,978		7,051
2023	56,958		6,077
Thereafter	168,637		20,021
Total lease liabilities	451,452		48,859
Less: Interest	68,146		14,677
Present value of lease liabilities^(c)	$	383,306	$	34,182
(a) Operating lease payments include $75.9 million related to options to extend lease terms that are reasonably certain of being exercised.
(b) Finance lease payments include $1.1 million related to options to extend lease terms that are reasonably certain of being exercised.
(c) The present value of lease liabilities excludes $19.1 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

Commitments and Contingencies	9 Months Ended
Commitments and Contingencies	Sep. 28, 2019
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Other Agreements In the fourth quarter of 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 vendor, including a cloud computing service arrangement. As a result, as previously disclosed, this arrangement includes minimum purchase commitments of approximately $30.0 million over the four year term. Additionally, during the nine months ended September 28, 2019, we entered into minimum purchase commitments with our trade vendors of approximately $17.0 million annually through 2021. 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. On January 29, 2016, FirstSight, our wholly-owned specialized health maintenance organization, was named as a defendant in a proposed class action filed on behalf of all persons who paid for an eye examination from an optometrist at a Walmart location in California from November 5, 2009 through the date of the resolution of the litigation. The complaint alleges in particular that FirstSight participated in arrangements that caused the illegal delivery of eye examinations to the plaintiffs, and that FirstSight thereby violated, among other statutes, the Unfair Competition and False Advertising laws of California. In March 2017, the Court granted a motion to dismiss previously filed by FirstSight. The plaintiffs filed an appeal to the U.S. Court of Appeals for the Ninth Circuit in April 2017. In July 2018, the U.S. Court of Appeals for the Ninth Circuit vacated in part, and reversed in part, the district court’s dismissal and remanded for further proceedings. In October 2018, the plaintiffs filed a second amended complaint with the district court seeking, among other claims, unspecified damages and attorneys’ fees, and in November 2018, FirstSight filed a motion to dismiss. The Company believes that the claims are without merit and intends to continue to vigorously defend the litigation. In May 2017, a complaint (the “1-800 Contacts Matter”) was filed against the Company and other defendants alleging, on behalf of a proposed class of consumers who purchased contact lenses online, that 1-800 Contacts, Inc. entered into a series of agreements with the other defendants, including AC Lens, the Company’s subsidiary, to suppress certain online advertising and that each defendant thereby engaged in anticompetitive conduct in violation of the Sherman Antitrust Act. The Company has settled the 1-800 Contacts Matter for $7.0 million, without admitting liability. Accordingly, the Company recorded a charge for this amount 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, the Company deposited 50% of the settlement amount, or $3.5 million, into an escrow account, to be distributed subject to and in accordance with the terms of the settlement agreement and any further order of the court. 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. Mediation has been scheduled in the first quarter of 2020. The Company continues to believe that the plaintiff’s amended complaint lacks merit and will vigorously defend the litigation.

Segment Reporting

9 Months Ended

Sep. 28, 2019

Segment Reporting [Abstract]

Segment Reporting

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

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



	Three Months Ended September 28, 2019
In thousands	Owned & Host		Legacy		Corporate/Other			Reconciliations			Total
Segment product revenues	$	270,171	$	25,252	$	63,173		$	(2,807	)	$	355,789
Segment services and plans revenues	63,267		14,103		1			(1,258		)	76,113
Total net revenue	333,438		39,355		63,174			(4,065		)	431,902
Cost of products	77,670		11,681		55,684			(517		)	144,518
Cost of services and plans	53,465		6,519		—			—			59,984
Total costs applicable to revenue	131,135		18,200		55,684			(517		)	204,502
SG&A	128,054		13,920		48,316			—			190,290
Asset impairment	—		—		3,516			—			3,516
Other expense, net	—		—		146			—			146
Loss on extinguishment of debt	—		—		9,786			—			9,786
EBITDA	$	74,249	$	7,235	$	(54,274	)	$	(3,548	)	23,662
Depreciation and amortization											22,336
Interest expense, net											7,873
Loss before income taxes											$	(6,547	)



	Three Months Ended September 29, 2018
In thousands	Owned & Host		Legacy		Corporate/Other			Reconciliations			Total
Segment product revenues	$	240,882	$	24,739	$	53,286		$	405		$	319,312
Segment services and plans revenues	55,673		12,489		912			(961		)	68,113
Total net revenue	296,555		37,228		54,198			(556		)	387,425
Cost of products	72,532		11,328		46,881			210			130,951
Cost of services and plans	45,581		5,124		932			—			51,637
Total costs applicable to revenue	118,113		16,452		47,813			210			182,588
SG&A	118,988		13,621		52,419			—			185,028
Asset impairment	—		—		2,137			—			2,137
Other expense, net	—		—		411			—			411
EBITDA	$	59,454	$	7,155	$	(48,582	)	$	(766	)	17,261
Depreciation and amortization											19,344
Interest expense, net											9,407
Loss before income taxes											$	(11,490	)



	Nine Months Ended September 28, 2019
In thousands	Owned & Host		Legacy		Corporate/Other			Reconciliations			Total
Segment product revenues	$	827,957	$	81,178	$	189,389		$	(2,042	)	$	1,096,482
Segment services and plans revenues	191,117		42,019		12			(7,062		)	226,086
Total net revenue	1,019,074		123,197		189,401			(9,104		)	1,322,568
Costs of products	239,975		38,123		166,533			(454		)	444,177
Costs of services and plans	155,710		19,090		1			—			174,801
Total costs applicable to revenue	395,685		57,213		166,534			(454		)	618,978
SG&A	387,345		42,041		137,058			—			566,444
Asset impairment	—		—		7,387			—			7,387
Other expense, net	—		—		975			—			975
Loss on extinguishment of debt	—		—		9,786			—			9,786
EBITDA	$	236,044	$	23,943	$	(132,339	)	$	(8,650	)	118,998
Depreciation and amortization											63,570
Interest expense, net											25,902
Income before income taxes											$	29,526



	Nine Months Ended September 29, 2018
In thousands	Owned & Host		Legacy		Corporate/Other			Reconciliations			Total
Segment product revenues	$	738,886	$	80,004	$	153,856		$	4,751		$	977,497
Segment services and plans revenues	167,679		39,088		2,939			(6,271		)	203,435
Total net revenue	906,565		119,092		156,795			(1,520		)	1,180,932
Costs of products	217,195		36,356		134,731			1,278			389,560
Costs of services and plans	132,708		14,965		2,868			—			150,541
Total costs applicable to revenue	349,903		51,321		137,599			1,278			540,101
SG&A	351,019		40,519		129,806			—			521,344
Asset impairment	—		—		2,137			—			2,137
Other expense, net	—		—		829			—			829
EBITDA	$	205,643	$	27,252	$	(113,576	)	$	(2,798	)	116,521
Depreciation and amortization											54,783
Interest expense, net											28,144
Income before income taxes											$	33,594

Revenues associated with managing operations of our legacy partner were $9.3 million and $27.5 million for the three and nine months ended September 28, 2019, respectively and $8.6 million and $27.0 million for the three and nine months ended September 29, 2018, respectively. During the nine months ended September 28, 2019, sales associated with our legacy partner arrangement represented 9.3% of consolidated net revenue. This exposes us to concentration of customer risk.

Earnings Per Share

9 Months Ended

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



	Three Months Ended				Nine Months Ended
In thousands, except EPS	September 28, 2019		September 29, 2018		September 28, 2019		September 29, 2018
Net income	$	1,192	$	5,171	$	28,879	$	42,093
Weighted average shares outstanding for basic EPS	78,474		76,118		78,387		75,361
Effect of dilutive securities:
Stock options	3,024		3,485		3,074		3,119
Restricted stock	63		107		49		91
Weighted average shares outstanding for diluted EPS	81,561		79,710		81,510		78,571
Basic EPS	$	0.02	$	0.07	$	0.37	$	0.56
Diluted EPS	$	0.01	$	0.06	$	0.35	$	0.54
Anti-dilutive options, RSUs outstanding excluded from EPS	315		—		289		—

Accumulated Other Comprehensive Loss

9 Months Ended

Sep. 28, 2019

Equity [Abstract]

Accumulated Other Comprehensive Loss

Changes in the fair value of the Company’s cash flow hedge derivative instruments since inception are recorded in AOCL. The following table presents the changes in AOCL during the three and nine months ended September 28, 2019 and September 29, 2018, respectively:



	Three Months Ended						Nine Months Ended
In thousands	September 28, 2019			September 29, 2018			September 28, 2019			September 29, 2018
Cash flow hedging activity:
Balance at beginning of period	$	(5,427	)	$	(2,746	)	$	(2,810	)	$	(9,868	)
Other comprehensive income (loss) before reclassification	(439		)	854			(5,760		)	6,696
Tax effect of other comprehensive income (loss) before reclassification	112			(218		)	1,476			(1,715		)
Amount reclassified from AOCL into interest expense	1,120			1,413			2,922			5,146
Tax effect of amount reclassified from AOCL into interest expense	(287		)	(362		)	(749		)	(1,318		)
Net current period other comprehensive income (loss), net of tax	506			1,687			(2,111		)	8,809
Balance at end of period	$	(4,921	)	$	(1,059	)	$	(4,921	)	$	(1,059	)

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

Description of Business and Basis of Presentation (Policies)	9 Months Ended
	Sep. 28, 2019
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation We prepared the accompanying unaudited interim condensed consolidated financial statements in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and, therefore, do not include all information and disclosures required by U.S. GAAP for complete consolidated financial statements. The condensed consolidated balance sheet as of December 29, 2018 has been derived from the audited consolidated balance sheet for the fiscal year then ended. These condensed consolidated financial statements reflect all normal and recurring adjustments which are, in the opinion of management, necessary to present fairly the Company’s consolidated financial position as of September 28, 2019, the consolidated results of operations and comprehensive income, the statements of changes in stockholders’ equity for the three and nine months ended September 28, 2019 and September 29, 2018, and its statements of cash flows for the nine months ended September 28, 2019 and September 29, 2018. Certain information and disclosures normally included in our annual consolidated financial statements have been condensed or omitted; however, we believe that the disclosures included herein are sufficient for a fair presentation of the information presented. These condensed consolidated financial statements should be read in conjunction with our audited consolidated financial statements and the notes thereto for the fiscal year ended December 29, 2018 included in the Company’s Annual Report on Form 10-K filed with the SEC on February 27, 2019. The Company’s significant accounting policies are set forth in Note 1 within those consolidated financial statements. We use the same accounting policies in preparing interim condensed consolidated financial information and annual consolidated financial statements. There were no changes to our significant accounting policies during the nine months ended September 28, 2019, except for the adoption of Accounting Standards Update (“ASU”) 2016-02, Leases. See “Adoption of New Accounting Pronouncements” below for further discussion. The condensed consolidated financial statements include our accounts and those of our subsidiaries, all of which are wholly-owned. All intercompany balances and transactions have been eliminated in consolidation.
Fiscal Year	Fiscal Year Our fiscal year consists of 52 or 53 weeks ending on the Saturday closest to December 31. Fiscal year 2019 contains 52 weeks and will end on December 28, 2019. All three and nine month periods presented herein contain 13 and 39 weeks, respectively. All references to years and quarters relate to fiscal periods rather than calendar periods.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Asset Impairment	Asset Impairment We evaluate impairment of long-lived tangible 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 shorter of the remaining useful life or the remaining term of the lease are less than the carrying value of the subject assets, we then measure impairment based on a discounted cash flow model and market-based indications of value of the ROU asset and record an impairment charge as the excess of carrying value over estimated fair value. As directed in the accounting guidance for long-lived assets held and used, we use entity-specific assumptions related to our anticipated use of the assets when developing the projected undiscounted cash flows.
Income Taxes	Income Taxes Our income tax rate for the three months ended September 28, 2019 reflected our statutory federal and state rate of 25.6%, offset by a discrete benefit of $6.3 million associated primarily with stock option exercises. Our income tax benefit for the nine months ended September 28, 2019 reflected income tax expense at our statutory federal and state rate of 25.6%, offset by a discrete benefit of $7.7 million associated primarily with stock option exercises. In comparison, the income tax rate associated with the three and nine months ended September 29, 2018 was reduced by $13.9 million and $18.0 million respective income tax benefit resulting from stock option exercises.
Adoption of New Accounting Pronouncements	Adoption of New Accounting Pronouncements Leases. In February 2016, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2016-02, Leases. This new guidance establishes a ROU model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases are classified as either finance or operating, with such classification affecting the pattern of expense recognition in the statement of operations. Disclosure of key information about leasing arrangements is also required. We adopted ASU No. 2016-02, as amended, as of December 30, 2018 (the first day of fiscal year 2019), using the modified retrospective transition approach without adjusting the comparative periods presented. We elected the package of practical expedients permitted under the transition guidance within the new standard, which allowed us to carry forward historical lease classification for leases in existence as of the adoption date, to not assess whether any expired or existing contracts are leases or contain leases and to not assess whether unamortized initial direct costs for existing leases meet the definition of initial direct costs. In addition, we elected the practical expedients to not separate lease components from non-lease components and to not apply this new guidance to leases with terms of less than 12 months. Upon adoption, we recorded operating lease liabilities of approximately $349.7 million as of December 30, 2018. The Company treated tenant improvement allowances (“TIAs”) and deferred rent of $28.6 million and $11.9 million, respectively, as of December 30, 2018 as reductions of 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. 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. The Company is in the process of assessing the new guidance. 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. The Company is in the process of assessing the new guidance.

- Definition

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

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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+ Details

Details of Certain Balance Sheet Accounts (Tables)

9 Months Ended

Sep. 28, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of Accounts Receivable, Net



In thousands	As of September 28, 2019			As of December 29, 2018
Accounts receivable, net:
Trade receivables	$	27,879		$	27,356
Credit card receivables	15,131			16,636
Tenant improvement allowances receivable	6,183			5,149
Other receivables	4,544			4,206
Allowance for uncollectible accounts	(3,082		)	(2,612		)
	$	50,655		$	50,735

Schedule of Inventories



In thousands	As of September 28, 2019		As of December 29, 2018
Inventories:
Raw materials and work in process ⁽¹⁾	$	57,844	$	59,946
Finished goods	54,050		56,076
	$	111,894	$	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



In thousands	As of September 28, 2019		As of December 29, 2018
Property and equipment, net:
Land and building	$	3,632	$	3,632
Equipment	186,181		160,958
Information systems hardware and software	113,127		101,809
Furniture and fixtures	53,922		48,992
Leasehold improvements	207,113		186,499
Construction in progress	28,299		40,697
Right of use assets under finance leases	36,437		25,446
	628,711		568,033
Less: Accumulated depreciation	256,642		212,916
	$	372,069	$	355,117

Schedule of Other Payables and Accrued Expenses



In thousands	As of September 28, 2019		As of December 29, 2018
Other payables and accrued expenses:
Employee compensation and benefits	$	40,347	$	20,529
Advertising	2,565		2,076
Self-insurance reserves	8,464		8,117
Reserves for customer returns and remakes	7,606		4,645
Capital expenditures	11,532		14,078
Legacy management and services agreement	6,642		5,383
Fair value of derivative liabilities	6,260		3,130
Supplies and other store support expenses	3,038		4,929
Litigation settlements	3,894		3,938
Other	11,208		14,179
	$	101,556	$	81,004

Schedule of Other Non-current Liabilities



In thousands	As of September 28, 2019		As of December 29, 2018
Other non-current liabilities:
Fair value of derivative liabilities	$	3,214	$	3,505
Tenant improvements ⁽¹⁾	—		30,851
Deferred rental expenses ⁽¹⁾	—		11,926
Self-insurance reserves	5,528		5,114
Other	4,665		2,568
	$	13,407	$	53,964
(1) Tenant improvements and deferred rental expenses are used to measure ROU assets on the balance sheet under ASC 842, Leases as of September 28, 2019. See Note 8. “Leases” for further details.

Fair Value Measurements of Financial Assets and Liabilities (Tables)

9 Months Ended

Sep. 28, 2019

Fair Value Disclosures [Abstract]

Schedule of Fair Value of Cash Flow Hedge Derivative Contracts

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



In thousands	Notional Amount		Maturity Date	Other Payables and Accrued Expenses		Other Liabilities		AOCL, Net of Tax⁽¹⁾
As of September 28, 2019	$	430,000	March 2021	$	6,260	$	3,214	$	4,921
As of December 29, 2018	$	465,000	March 2021	$	3,130	$	3,505	$	2,810

(1)

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

Long-term Debt (Tables)

9 Months Ended

Sep. 28, 2019

Debt Disclosure [Abstract]

Schedule of Long-term Debt Instruments

Long-term debt consists of the following:



In thousands	As of September 28, 2019			As of December 29, 2018
First Lien - Term Loan B	$	—		$	364,300
First Lien - Term Loan A	—			200,000
First Lien - Term Loan, due July 18, 2024	420,000			—
First Lien - Revolving credit facility, due July 18, 2024	148,000			—
Total term loans before unamortized discount	568,000			564,300
Unamortized discount	(4,196		)	(10,673		)
Total term loans	563,804			553,627
Less current maturities	(10,500		)	(5,000		)
Term loans - non-current portion	553,304			548,627
Finance lease obligations	34,182			24,485
Less current maturities	(3,236		)	(2,567		)
Long-term debt, less current portion and unamortized debt discount	$	584,250		$	570,545

Schedule of Maturities of Long-term Debt

Scheduled maturities of the Term Loan and revolving credit facility are as follows:



Fiscal Period	In thousands
2019 - fourth quarter	$	2,625
2020	10,500
2021	10,500
2022	13,125
2023	21,000
Thereafter	510,250
	$	568,000

- Definition

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

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.22)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=114775744&loc=d3e28541-108399

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21506-112644

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(e),(f))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=114775744&loc=d3e28551-108399

Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21521-112644

Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21538-112644

Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 470
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=75038535&loc=d3e64711-112823

Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 55
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=114775985&loc=d3e28878-108400

Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21475-112644

+ Details

Stock Incentive Plans (Tables)

9 Months Ended

Sep. 28, 2019

Share-based Payment Arrangement [Abstract]

Schedule of Stock Option Activity

The following tables summarize stock based compensation activity for the nine months ended September 28, 2019:



	Service-based options ⁽¹⁾		Performance-based options		Total options
Outstanding at December 29, 2018	2,583,380		4,143,781		6,727,161
Granted	299,207		—		299,207
Exercised	(644,766	)	(987,340	)	(1,632,106	)
Forfeited	(17,832	)	(1,258,280	)	(1,276,112	)
Outstanding at September 28, 2019	2,219,989		1,898,161		4,118,150
Vested and exercisable at September 28, 2019	1,386,225		1,767,727		3,153,952
(1) Includes 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.

Schedule of Restricted Stock and Restricted Stock Units Activity



	Service-based restricted stock unit (RSU) awards		Performance-based restricted stock unit (PSU) awards		Restricted stock (RSA) awards
Outstanding at December 29, 2018	98,076		—		11,431
Granted	108,256		115,665		13,712
Vested	—		—		(4,515	)
Forfeited	(9,833	)	(2,274	)	—
Outstanding at September 28, 2019	196,499		113,391		20,628

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:



	Three months ended				Nine months ended
In thousands	September 28, 2019		September 29, 2018		September 28, 2019		September 29, 2018
Stock options	$	4,948	$	10,260	$	7,955	$	12,590
RSUs and PSUs	1,028		347		2,598		1,107
RSAs	125		11		201		41
Associate stock purchase plan	22		11		86		11
Total stock based compensation expense	$	6,123	$	10,629	$	10,840	$	13,749

Revenue From Contracts with Customers (Tables)

9 Months Ended

Sep. 28, 2019

Revenue from Contract with Customer [Abstract]

Schedule of Disaggregation of Revenues

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



	Three Months Ended				Nine Months Ended
In thousands	September 28, 2019		September 29, 2018		September 28, 2019		September 29, 2018
Revenues recognized at a point in time	$	394,709	$	352,245	$	1,211,942	$	1,075,355
Revenues recognized over time	37,193		35,180		110,626		105,577
Total net revenue	$	431,902	$	387,425	$	1,322,568	$	1,180,932

Leases (Tables)

9 Months Ended

Sep. 28, 2019

Leases [Abstract]

Schedule of Lease Type and Classification On Balance Sheet



In thousands		As of September 28, 2019
Type	Classification
	ASSETS
Finance	Property and equipment, net	$	29,314
Operating	Right of use assets^(a)	344,179
	Total leased assets	$	373,493
	LIABILITIES
	Current Liabilities:
Finance	Current maturities of long-term debt and finance lease obligations	$	3,236
Operating	Current operating lease obligations	56,814
	Other non-current liabilities:
Finance	Long-term debt and finance lease obligations, less current portion and debt discount	30,946
Operating	Non-current operating lease obligations	326,492
	Total lease liabilities	$	417,488
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) TIA of $34.2 million and deferred rent of $14.2 million are treated as reductions of lease payments used to measure ROU assets as of September 28, 2019.

Schedule of Lease Cost



In thousands	Three Months Ended September 28, 2019			Nine Months Ended September 28, 2019
Lease cost by classification
Selling, general and administrative:
Operating lease cost ^(a)	$	18,542		$	54,955
Variable lease cost ^(b)	6,745			19,803
Sublease income^(c)	(965		)	(2,881		)

Depreciation and amortization:
Amortization of lease assets	1,176			3,231

Interest expense, net:
Interest on lease liabilities	903			2,689

Net lease cost	$	26,401		$	77,797
(a) Includes short-term leases, which are immaterial.
(b) Includes costs for insurance, real estate taxes and common area maintenance expenses, which are variable as well as lease costs above minimum thresholds for Fred Meyer stores and lease costs for Military stores.
(c) Income from sub-leasing of stores includes rental income from operating lease properties to ophthalmologists and optometrists who are independent contractors.

Schedule of Lease Terms and Discount Rate



Lease Term and Discount Rate	As of September 28, 2019
Weighted average remaining lease term (months)
Operating leases	82
Finance leases	91
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; (iv) borrowing rates on five-year and ten-year US Treasuries; and (v) 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	Nine Months Ended September 28, 2019
Other Information	Nine Months Ended September 28, 2019
Cash paid for amounts included in the measurement of lease liabilities
Operating cash outflows - operating leases	$	55,817

Schedule of Maturity for Operating Lease Liabilities

The following table summarizes the maturity of our lease liabilities as of September 28, 2019:



In thousands	Operating Leases ^(a)		Finance Leases^(b)
Fiscal Year	Operating Leases ^(a)		Finance Leases^(b)
2019 fourth quarter	$	13,090	$	1,398
2020	77,497		7,196
2021	71,292		7,116
2022	63,978		7,051
2023	56,958		6,077
Thereafter	168,637		20,021
Total lease liabilities	451,452		48,859
Less: Interest	68,146		14,677
Present value of lease liabilities^(c)	$	383,306	$	34,182
(a) Operating lease payments include $75.9 million related to options to extend lease terms that are reasonably certain of being exercised.
(b) Finance lease payments include $1.1 million related to options to extend lease terms that are reasonably certain of being exercised.
(c) The present value of lease liabilities excludes $19.1 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 September 28, 2019:



In thousands	Operating Leases ^(a)		Finance Leases^(b)
Fiscal Year	Operating Leases ^(a)		Finance Leases^(b)
2019 fourth quarter	$	13,090	$	1,398
2020	77,497		7,196
2021	71,292		7,116
2022	63,978		7,051
2023	56,958		6,077
Thereafter	168,637		20,021
Total lease liabilities	451,452		48,859
Less: Interest	68,146		14,677
Present value of lease liabilities^(c)	$	383,306	$	34,182
(a) Operating lease payments include $75.9 million related to options to extend lease terms that are reasonably certain of being exercised.
(b) Finance lease payments include $1.1 million related to options to extend lease terms that are reasonably certain of being exercised.
(c) The present value of lease liabilities excludes $19.1 million of legally binding minimum lease payments for leases signed but not yet commenced.

Schedule of Aggregate Future Minimum Rental Payments at Prior Year End

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

Segment Reporting (Tables)

9 Months Ended

Sep. 28, 2019

Segment Reporting [Abstract]

Schedule of Financial Data by Segment



	Three Months Ended September 28, 2019
In thousands	Owned & Host		Legacy		Corporate/Other			Reconciliations			Total
Segment product revenues	$	270,171	$	25,252	$	63,173		$	(2,807	)	$	355,789
Segment services and plans revenues	63,267		14,103		1			(1,258		)	76,113
Total net revenue	333,438		39,355		63,174			(4,065		)	431,902
Cost of products	77,670		11,681		55,684			(517		)	144,518
Cost of services and plans	53,465		6,519		—			—			59,984
Total costs applicable to revenue	131,135		18,200		55,684			(517		)	204,502
SG&A	128,054		13,920		48,316			—			190,290
Asset impairment	—		—		3,516			—			3,516
Other expense, net	—		—		146			—			146
Loss on extinguishment of debt	—		—		9,786			—			9,786
EBITDA	$	74,249	$	7,235	$	(54,274	)	$	(3,548	)	23,662
Depreciation and amortization											22,336
Interest expense, net											7,873
Loss before income taxes											$	(6,547	)



	Three Months Ended September 29, 2018
In thousands	Owned & Host		Legacy		Corporate/Other			Reconciliations			Total
Segment product revenues	$	240,882	$	24,739	$	53,286		$	405		$	319,312
Segment services and plans revenues	55,673		12,489		912			(961		)	68,113
Total net revenue	296,555		37,228		54,198			(556		)	387,425
Cost of products	72,532		11,328		46,881			210			130,951
Cost of services and plans	45,581		5,124		932			—			51,637
Total costs applicable to revenue	118,113		16,452		47,813			210			182,588
SG&A	118,988		13,621		52,419			—			185,028
Asset impairment	—		—		2,137			—			2,137
Other expense, net	—		—		411			—			411
EBITDA	$	59,454	$	7,155	$	(48,582	)	$	(766	)	17,261
Depreciation and amortization											19,344
Interest expense, net											9,407
Loss before income taxes											$	(11,490	)



	Nine Months Ended September 28, 2019
In thousands	Owned & Host		Legacy		Corporate/Other			Reconciliations			Total
Segment product revenues	$	827,957	$	81,178	$	189,389		$	(2,042	)	$	1,096,482
Segment services and plans revenues	191,117		42,019		12			(7,062		)	226,086
Total net revenue	1,019,074		123,197		189,401			(9,104		)	1,322,568
Costs of products	239,975		38,123		166,533			(454		)	444,177
Costs of services and plans	155,710		19,090		1			—			174,801
Total costs applicable to revenue	395,685		57,213		166,534			(454		)	618,978
SG&A	387,345		42,041		137,058			—			566,444
Asset impairment	—		—		7,387			—			7,387
Other expense, net	—		—		975			—			975
Loss on extinguishment of debt	—		—		9,786			—			9,786
EBITDA	$	236,044	$	23,943	$	(132,339	)	$	(8,650	)	118,998
Depreciation and amortization											63,570
Interest expense, net											25,902
Income before income taxes											$	29,526



	Nine Months Ended September 29, 2018
In thousands	Owned & Host		Legacy		Corporate/Other			Reconciliations			Total
Segment product revenues	$	738,886	$	80,004	$	153,856		$	4,751		$	977,497
Segment services and plans revenues	167,679		39,088		2,939			(6,271		)	203,435
Total net revenue	906,565		119,092		156,795			(1,520		)	1,180,932
Costs of products	217,195		36,356		134,731			1,278			389,560
Costs of services and plans	132,708		14,965		2,868			—			150,541
Total costs applicable to revenue	349,903		51,321		137,599			1,278			540,101
SG&A	351,019		40,519		129,806			—			521,344
Asset impairment	—		—		2,137			—			2,137
Other expense, net	—		—		829			—			829
EBITDA	$	205,643	$	27,252	$	(113,576	)	$	(2,798	)	116,521
Depreciation and amortization											54,783
Interest expense, net											28,144
Income before income taxes											$	33,594

Earnings Per Share (Tables)

9 Months Ended

Sep. 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:



	Three Months Ended				Nine Months Ended
In thousands, except EPS	September 28, 2019		September 29, 2018		September 28, 2019		September 29, 2018
Net income	$	1,192	$	5,171	$	28,879	$	42,093
Weighted average shares outstanding for basic EPS	78,474		76,118		78,387		75,361
Effect of dilutive securities:
Stock options	3,024		3,485		3,074		3,119
Restricted stock	63		107		49		91
Weighted average shares outstanding for diluted EPS	81,561		79,710		81,510		78,571
Basic EPS	$	0.02	$	0.07	$	0.37	$	0.56
Diluted EPS	$	0.01	$	0.06	$	0.35	$	0.54
Anti-dilutive options, RSUs outstanding excluded from EPS	315		—		289		—

Accumulated Other Comprehensive Loss (Tables)

9 Months Ended

Sep. 28, 2019

Equity [Abstract]

Schedule of Accumulated Other Comprehensive Loss

The following table presents the changes in AOCL during the three and nine months ended September 28, 2019 and September 29, 2018, respectively:



	Three Months Ended						Nine Months Ended
In thousands	September 28, 2019			September 29, 2018			September 28, 2019			September 29, 2018
Cash flow hedging activity:
Balance at beginning of period	$	(5,427	)	$	(2,746	)	$	(2,810	)	$	(9,868	)
Other comprehensive income (loss) before reclassification	(439		)	854			(5,760		)	6,696
Tax effect of other comprehensive income (loss) before reclassification	112			(218		)	1,476			(1,715		)
Amount reclassified from AOCL into interest expense	1,120			1,413			2,922			5,146
Tax effect of amount reclassified from AOCL into interest expense	(287		)	(362		)	(749		)	(1,318		)
Net current period other comprehensive income (loss), net of tax	506			1,687			(2,111		)	8,809
Balance at end of period	$	(4,921	)	$	(1,059	)	$	(4,921	)	$	(1,059	)

Description of Business and Basis of Presentation - Nature of Operations (Details)	Sep. 28, 2019 store store_brand	Dec. 29, 2018 store
Accounting Policies [Abstract]
Number of retail optical locations \| store	1,145	1,082
Number of store brands \| store_brand	5

Description of Business and Basis of Presentation - Asset Impairment (Details) $ in Millions	3 Months Ended	9 Months Ended
	Sep. 28, 2019 USD ($)	Sep. 28, 2019 USD ($)
Accounting Policies [Abstract]
Impairment charge on long-lived assets held and used	$ 3.5	$ 7.4
Estimated fair value of impaired assets held and used	$ 14.6	$ 14.6
Discount rate used in impairment analysis (percent)		8.00%

Description of Business and Basis of Presentation - Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 28, 2019	Sep. 29, 2018	Sep. 28, 2019	Sep. 29, 2018
Accounting Policies [Abstract]
Effective income tax rate (percent)	25.60%		25.60%
Tax benefit associated primarily with exercise of stock options	$ 6.3	$ 13.9	$ 7.7	$ 18.0

Description of Business and Basis of Presentation - Secondary Offering and Common Share Repurchase (Details) - USD ($) $ / shares in Units, $ in Thousands		3 Months Ended	9 Months Ended
	Aug. 12, 2019	Sep. 28, 2019	Sep. 28, 2019	Sep. 29, 2018	Dec. 29, 2018
Sale of Stock [Line Items]
Common stock, par value (in usd per share)	$ 0.01	$ 0.01	$ 0.01		$ 0.01
Shares repurchased (shares)	819,134
Shares repurchased price per share (in usd per share)	$ 30.52
Non-cash stock-based compensation expense			$ 10,840	$ 13,749
Secondary Offering
Sale of Stock [Line Items]
Number of shares issued (shares)	9,149,908
SG&A
Sale of Stock [Line Items]
Long-term incentive compensation expense		$ 1,100
Offering-related expenses		400
Secondary offering vesting event
Sale of Stock [Line Items]
Non-cash stock-based compensation expense		$ 4,200

Description of Business and Basis of Presentation - Adoption of New Accounting Pronouncements (Details) - USD ($) $ in Thousands	Sep. 28, 2019	Dec. 30, 2018	Dec. 29, 2018	Dec. 31, 2017
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Operating lease liabilities	$ 383,306
TIA treated as reduction of lease payments used to measure operating lease ROU assets	34,200
Deferred rent treated as reduction of lease payments used to measure operating lease ROU assets	14,200
Right of use assets	$ 344,179		$ 0
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		349,700
TIA treated as reduction of lease payments used to measure operating lease ROU assets		28,600
Deferred rent treated as reduction of lease payments used to measure operating lease ROU assets		11,900
Right of use assets		308,500
Retained Earnings
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cumulative effect of change in accounting principle		$ 506		$ (19,030)

Details of Certain Balance Sheet Accounts - Accounts Receivable, Net (Details) - USD ($) $ in Thousands	Sep. 28, 2019	Dec. 29, 2018
Accounts receivable, net:
Allowance for uncollectible accounts	$ (3,082)	$ (2,612)
Accounts receivable, net of allowances	50,655	50,735
Trade receivables
Accounts receivable, net:
Accounts receivable, gross	27,879	27,356
Credit card receivables
Accounts receivable, net:
Accounts receivable, gross	15,131	16,636
Tenant improvement allowances receivable
Accounts receivable, net:
Accounts receivable, gross	6,183	5,149
Other receivables
Accounts receivable, net:
Accounts receivable, gross	$ 4,544	$ 4,206

Details of Certain Balance Sheet Accounts - Inventories (Details) - USD ($) $ in Thousands	Sep. 28, 2019	Dec. 29, 2018
Inventories:
Raw materials and work in process	$ 57,844	$ 59,946
Finished goods	54,050	56,076
Inventories	$ 111,894	$ 116,022

Details of Certain Balance Sheet Accounts - Property and Equipment, Net (Details) - USD ($) $ in Thousands	Sep. 28, 2019	Dec. 29, 2018
Property and equipment, net:
Property and equipment, gross	$ 628,711	$ 568,033
Less: Accumulated depreciation	256,642	212,916
Property and equipment, net	372,069	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	186,181	160,958
Information systems hardware and software
Property and equipment, net:
Property and equipment, gross	113,127	101,809
Furniture and fixtures
Property and equipment, net:
Property and equipment, gross	53,922	48,992
Leasehold improvements
Property and equipment, net:
Property and equipment, gross	207,113	186,499
Construction in progress
Property and equipment, net:
Property and equipment, gross	28,299	40,697
Right of use assets under finance leases
Property and equipment, net:
Property and equipment, gross	$ 36,437	$ 25,446

Details of Certain Balance Sheet Accounts - Other Payables and Accrued Expenses (Details) - USD ($) $ in Thousands	Sep. 28, 2019	Dec. 29, 2018
Other payables and accrued expenses:
Employee compensation and benefits	$ 40,347	$ 20,529
Advertising	2,565	2,076
Self-insurance reserves	8,464	8,117
Reserves for customer returns and remakes	7,606	4,645
Capital expenditures	11,532	14,078
Legacy management and services agreement	6,642	5,383
Fair value of derivative liabilities	6,260	3,130
Supplies and other store support expenses	3,038	4,929
Litigation settlements	3,894	3,938
Other	11,208	14,179
Total other payables and accrued expenses	$ 101,556	$ 81,004

Details of Certain Balance Sheet Accounts - Other Non-Current Liabilities (Details) - USD ($) $ in Thousands	Sep. 28, 2019	Dec. 29, 2018
Other non-current liabilities:
Fair value of derivative liabilities	$ 3,214	$ 3,505
Tenant improvements		30,851
Deferred rental expenses		11,926
Self-insurance reserves	5,528	5,114
Other	4,665	2,568
Total other non-current liabilities	$ 13,407	$ 53,964

Fair Value Measurements of Financial Assets and Liabilities - Narrative (Details) - Finance Lease Obligations - Level 2 - USD ($) $ in Millions	Sep. 28, 2019	Dec. 29, 2018
Estimated Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt instruments	$ 39.4	$ 30.7
Carrying Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt instruments	$ 34.2	$ 24.5

Fair Value Measurements of Financial Assets and Liabilities - Interest Rate Derivatives (Details)	Sep. 28, 2019 USD ($) agreement	Mar. 30, 2019 USD ($)	Dec. 29, 2018 USD ($)
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]
Number of interest rate swap agreements \| agreement	3
Derivative interest rate floor	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		$ 105,000,000.0	$ 140,000,000.0

Fair Value Measurements of Financial Assets and Liabilities - Cash Flow Hedge Position of Interest Rate Derivative Contracts (Details) - USD ($)	Sep. 28, 2019	Dec. 29, 2018
Derivatives, Fair Value [Line Items]
Fair value of derivative liabilities, current	$ 6,260,000	$ 3,130,000
Fair value of derivative liabilities, noncurrent	3,214,000	3,505,000
Stranded tax benefit in AOCL	2,100,000
Interest Rate Swap \| Designated as Hedging Instrument \| Cash Flow Hedges
Derivatives, Fair Value [Line Items]
Notional amount	430,000,000	465,000,000
Hedge position in AOCL, net of tax	$ 4,921,000	$ 2,810,000

Long-term Debt - Summary of Long-term Debt (Details) - USD ($) $ in Thousands	Sep. 28, 2019	Dec. 29, 2018
Debt Instrument [Line Items]
Long-term debt, gross	$ 568,000
Finance lease obligations	34,182
Less current maturities	(3,236)
Finance lease obligations		$ 24,485
Less current maturities		(2,567)
Long-term debt and finance lease obligations, less current portion and debt discount	584,250	570,545
Term Loan
Debt Instrument [Line Items]
Long-term debt, gross	568,000	564,300
Unamortized discount	(4,196)	(10,673)
Total term loans	563,804	553,627
Less current maturities	(10,500)	(5,000)
Term loans - non-current portion	553,304	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
First Lien - Term Loan, due July 18, 2024 \| Term Loan
Debt Instrument [Line Items]
Long-term debt, gross	420,000	0
First Lien - 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 Debt (Details) $ in Thousands	Sep. 28, 2019 USD ($)
Debt Disclosure [Abstract]
2019 - fourth quarter	$ 2,625
2020	10,500
2021	10,500
2022	13,125
2023	21,000
Thereafter	510,250
Long-term debt, gross	$ 568,000

Long-term Debt - Narrative (Details) - USD ($)		3 Months Ended
Long-term Debt - Narrative (Details) - USD ($)	Jul. 18, 2019	Sep. 28, 2019
Debt Instrument [Line Items]
Write off of deferred debt issuance costs		$ 6,000,000.0
Write off of unamortized debt discount		$ 3,800,000
Line of Credit \| First Lien - Revolving credit facility, due July 18, 2024
Debt Instrument [Line Items]
Debt instrument face amount	$ 300,000,000.0
Amount drawn on line of credit	148,000,000.0
Term Loan \| Term Loan
Debt Instrument [Line Items]
Debt instrument face amount	$ 420,000,000.0
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	3.00
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 - Stock Option Activity (Details)	9 Months Ended
Stock Incentive Plans - Stock Option Activity (Details)	Sep. 28, 2019 shares
Options outstanding
Outstanding, beginning balance (shares)	6,727,161
Granted (shares)	299,207
Exercised (shares)	(1,632,106)
Forfeited (shares)	(1,276,112)
Outstanding, ending balance (shares)	4,118,150
Vested and exercisable (shares)	3,153,952
Service-based options
Options outstanding
Outstanding, beginning balance (shares)	2,583,380
Granted (shares)	299,207
Exercised (shares)	(644,766)
Forfeited (shares)	(17,832)
Outstanding, ending balance (shares)	2,219,989
Vested and exercisable (shares)	1,386,225
Performance-based options
Options outstanding
Outstanding, beginning balance (shares)	4,143,781
Granted (shares)	0
Exercised (shares)	(987,340)
Forfeited (shares)	(1,258,280)
Outstanding, ending balance (shares)	1,898,161
Vested and exercisable (shares)	1,767,727

Stock Incentive Plans - Restricted Stock Unit and Award Activity (Details)	9 Months Ended
	Sep. 28, 2019 shares
Service-based restricted stock unit (RSU) awards
Outstanding Restricted Stock Units and Awards
Outstanding, beginning balance (shares)	98,076
Granted (shares)	108,256
Vested (shares)	0
Forfeited (shares)	(9,833)
Outstanding, ending balance (shares)	196,499
Performance-based restricted stock unit (PSU) awards
Outstanding Restricted Stock Units and Awards
Outstanding, beginning balance (shares)	0
Granted (shares)	115,665
Vested (shares)	0
Forfeited (shares)	(2,274)
Outstanding, ending balance (shares)	113,391
Restricted stock (RSA) awards
Outstanding Restricted Stock Units and Awards
Outstanding, beginning balance (shares)	11,431
Granted (shares)	13,712
Vested (shares)	(4,515)
Forfeited (shares)	0
Outstanding, ending balance (shares)	20,628

Stock Incentive Plans - Narrative (Details) $ / shares in Units, $ in Millions	9 Months Ended
	Sep. 28, 2019 USD ($) installment $ / shares shares
Service-based options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of equal vesting installments \| installment	3
Unrecognized compensation cost \| $	$ 3.3
RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of equal vesting installments \| installment	3
Weighted average grant date fair value (in dollars per share)	$ 34.82
Aggregate grant during the period (shares) \| shares	108,256
Unrecognized compensation cost \| $	$ 2.7
PSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average grant date fair value (in dollars per share)	$ 34.54
Aggregate grant during the period (shares) \| shares	115,665
Unrecognized compensation cost \| $	$ 3.2
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average exercise price for options exercised (in dollars per share)	$ 5.77
Weighted average grant date fair value for options granted (in dollars per share)	$ 13.68
RSAs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Aggregate grant during the period (shares) \| shares	13,712
Unrecognized compensation cost \| $	$ 0.3
Board of Directors \| RSAs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average grant date fair value (in dollars per share)	$ 29.18
Vesting period (year)	1 year
First anniversary of grant date \| Service-based options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting amount in each equal installment (percent)	33.33%
Second anniversary of grant date \| Service-based options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting amount in each equal installment (percent)	33.33%
Third anniversary of grant date \| Service-based options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting amount in each equal installment (percent)	33.33%

Stock Incentive Plans - Stock Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 28, 2019	Sep. 29, 2018	Sep. 28, 2019	Sep. 29, 2018
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock based compensation expense	$ 6,123	$ 10,629	$ 10,840	$ 13,749
Stock options
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock based compensation expense	4,948	10,260	7,955	12,590
RSUs and PSUs
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock based compensation expense	1,028	347	2,598	1,107
RSAs
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock based compensation expense	125	11	201	41
Associate stock purchase plan
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock based compensation expense	$ 22	$ 11	$ 86	$ 11

Related Party Transactions - Transactions with KKR (Details) - USD ($) $ in Millions		3 Months Ended
	Aug. 12, 2019	Sep. 28, 2019
Related Party Transactions [Abstract]
Debt related commitment fees and debt issuance costs		$ 1.0
Secondary Offering
Related Party Transaction [Line Items]
Number of shares issued (shares)	9,149,908

Related Party Transactions - Equity in Net Assets of Non-Consolidated Investee (Details) - Equity Method Investee - USD ($)	3 Months Ended		9 Months Ended
	Sep. 28, 2019	Sep. 29, 2018	Sep. 28, 2019	Sep. 29, 2018	Aug. 29, 2017
Related Party Transaction [Line Items]
Interest in investee's net losses	$ (200,000)	$ (400,000)	$ (1,200,000)	$ (1,000,000.0)
Equity method investment	0		0
Loan receivable	$ 1,300,000		$ 1,300,000		$ 1,500,000

Revenue From Contracts with Customers - Disaggregation of Revenues (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 28, 2019	Sep. 29, 2018	Sep. 28, 2019	Sep. 29, 2018
Disaggregation of Revenue [Line Items]
Net revenue	$ 431,902	$ 387,425	$ 1,322,568	$ 1,180,932
Revenues recognized at a point in time
Disaggregation of Revenue [Line Items]
Net revenue	394,709	352,245	1,211,942	1,075,355
Revenues recognized over time
Disaggregation of Revenue [Line Items]
Net revenue	$ 37,193	$ 35,180	$ 110,626	$ 105,577

Revenue From Contracts with Customers - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 28, 2019	Sep. 29, 2018	Sep. 28, 2019	Sep. 29, 2018
Disaggregation of Revenue [Line Items]
Time frame for majority of payments on health care plans and programs accounts (in days)			90 days
Bad debt expense	$ 2,400	$ 1,700	$ 6,265	$ 4,981
Deferred revenue	79,300		79,300
Previously deferred revenue recognized	$ 27,900	$ 26,500	$ 83,200	$ 78,500
Minimum
Disaggregation of Revenue [Line Items]
General payment terms for accounts on health care plans and programs (in days)			14 days
Unearned revenue, estimated delivery time for period end calculation (in days)			4 days
Maximum
Disaggregation of Revenue [Line Items]
General payment terms for accounts on health care plans and programs (in days)			120 days
Unearned revenue, estimated delivery time for period end calculation (in days)			10 days

Revenue From Contracts with Customers - Unsatisfied Performance Obligations (Details) $ in Millions	Sep. 28, 2019 USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-09-29
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Performance obligations expected to be satisfied	$ 20.3
Performance obligations expected to be satisfied, expected timing	3 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-12-29
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Performance obligations expected to be satisfied	$ 42.2
Performance obligations expected to be satisfied, expected timing	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-03
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Performance obligations expected to be satisfied	$ 13.4
Performance obligations expected to be satisfied, expected timing	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-02
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Performance obligations expected to be satisfied	$ 3.2
Performance obligations expected to be satisfied, expected timing	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Performance obligations expected to be satisfied	$ 0.2
Performance obligations expected to be satisfied, expected timing

Leases - Narrative (Details) - USD ($) $ in Millions	9 Months Ended	12 Months Ended
Leases - Narrative (Details) - USD ($) $ in Millions	Sep. 28, 2019	Dec. 29, 2018	Dec. 30, 2017	Dec. 31, 2016	Dec. 30, 2018
Lessee, Lease, Description [Line Items]
Finance lease assets, accumulated amortization	$ 7.1				$ 4.1
Variable lease-related executory costs		$ 18.0	$ 14.9	$ 13.9
Minimum
Lessee, Lease, Description [Line Items]
Term of U.S. Treasuries for borrowing rate considered in determination of lease discount rate	5 years
Maximum
Lessee, Lease, Description [Line Items]
Term of U.S. Treasuries for borrowing rate considered in determination of lease discount rate	10 years
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 Classification (Details) - USD ($) $ in Thousands	Sep. 28, 2019	Dec. 29, 2018
ASSETS
Finance lease, right-of-use assets	$ 29,314
Operating lease, right-of-use assets	344,179	$ 0
Total leased assets	373,493
TIA treated as reduction of lease payments used to measure operating lease ROU assets	34,200
Deferred rent treated as reduction of lease payments used to measure operating lease ROU assets	14,200
LIABILITIES
Finance lease liability, current	3,236
Operating lease liability, current	56,814	0
Finance lease liabilities, non-current	30,946
Operating lease liabilities, non-current	326,492	$ 0
Total lease liabilities	$ 417,488

Leases - Lease Costs (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
Leases - Lease Costs (Details) - USD ($) $ in Thousands	Sep. 28, 2019	Sep. 28, 2019
Lease Cost
Operating lease cost	$ 18,542	$ 54,955
Variable lease cost	6,745	19,803
Sublease income	(965)	(2,881)
Amortization of lease assets	1,176	3,231
Interest on lease liabilities	903	2,689
Net lease cost	$ 26,401	$ 77,797

Leases - Lease Term and Discount Rate (Details)	Sep. 28, 2019
Leases [Abstract]
Operating leases, weighted average remaining lease term (months)	82 months
Finance leases, weighted average remaining lease term (months)	91 months
Operating leases, weighted average discount rate (percent)	4.60%
Finance leases, weighted average discount rate (percent)	13.10%

Leases - Other Information (Details) $ in Thousands	9 Months Ended
Leases - Other Information (Details) $ in Thousands	Sep. 28, 2019 USD ($)
Cash paid for amounts included in the measurement of lease liabilities
Operating cash outflows - operating leases	$ 55,817

Leases - Maturity of Lease Liabilities (Details) $ in Thousands	Sep. 28, 2019 USD ($)
Operating Leases
2019 fourth quarter	$ 13,090
2020	77,497
2021	71,292
2022	63,978
2023	56,958
Thereafter	168,637
Total lease liabilities	451,452
Less: Interest	68,146
Present value of lease liabilities	383,306
Finance Leases
2019 fourth quarter	1,398
2020	7,196
2021	7,116
2022	7,051
2023	6,077
Thereafter	20,021
Total lease liabilities	48,859
Less: Interest	14,677
Finance lease obligations	34,182
Operating lease payments related to reasonably certain option extensions included in total lease payments	75,900
Finance lease payments related to reasonably certain option extensions included in total lease payments	1,100
Minimum lease payments for leases signed but not yet commenced excluded from lease liability	$ 19,100

Leases - Aggregate Future Rental Payments Under Operating Leases at Prior Year End (Details) $ in Thousands	Dec. 29, 2018 USD ($)
Leases [Abstract]
2019	$ 69,372
2020	63,218
2021	56,219
2022	49,303
2023	42,545
Thereafter	126,388
Total future minimum rental payments	$ 407,045

Commitments and Contingencies - Narrative (Details) - USD ($) $ in Millions		1 Months Ended	3 Months Ended	6 Months Ended
	Nov. 08, 2017	May 31, 2017	Jul. 01, 2017	Jun. 29, 2019
1-800 Contacts Matter
Loss Contingencies [Line Items]
Amount of litigation settlement		$ 7.0
Litigation settlement			$ 7.0
Percent of settlement award deposited in escrow account (percent)	50.00%
Amount of settlement deposited in escrow account	$ 3.5
Trade vendor supply and software agreement
Loss Contingencies [Line Items]
Minimum purchase commitment				$ 30.0
Purchase commitment term (in years)				4 years
Trade vendor purchase agreement
Loss Contingencies [Line Items]
Minimum annual purchase commitment through 2021				$ 17.0

Segment Reporting - Narrative (Details) $ in Thousands	3 Months Ended		9 Months Ended
Segment Reporting - Narrative (Details) $ in Thousands	Sep. 28, 2019 USD ($)	Sep. 29, 2018 USD ($)	Sep. 28, 2019 USD ($) segment	Sep. 29, 2018 USD ($)
Segment Reporting Information [Line Items]
Number of reportable segments \| segment			2
Net revenue	$ 431,902	$ 387,425	$ 1,322,568	$ 1,180,932
Legacy \| Management of operations
Segment Reporting Information [Line Items]
Net revenue	$ 9,300	$ 8,600	$ 27,500	$ 27,000
Customer Concentration Risk \| Sales revenue
Segment Reporting Information [Line Items]
Concentration risk (percent)			9.30%

Segment Reporting - Financial Data by Segment (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 28, 2019	Sep. 29, 2018	Sep. 28, 2019	Sep. 29, 2018
Segment Reporting Information [Line Items]
Total net revenue	$ 431,902	$ 387,425	$ 1,322,568	$ 1,180,932
Total costs applicable to revenue	204,502	182,588	618,978	540,101
SG&A	190,290	185,028	566,444	521,344
Asset impairment	3,516	2,137	7,387	2,137
Other expense, net	146	411	975	829
Loss on extinguishment of debt	9,786	0	9,786	0
EBITDA	23,662	17,261	118,998	116,521
Depreciation and amortization	22,336	19,344	63,570	54,783
Interest expense, net	7,873	9,407	25,902	28,144
Earnings (loss) before income taxes	(6,547)	(11,490)	29,526	33,594
Products
Segment Reporting Information [Line Items]
Total net revenue	355,789	319,312	1,096,482	977,497
Total costs applicable to revenue	144,518	130,951	444,177	389,560
Services and plans
Segment Reporting Information [Line Items]
Total net revenue	76,113	68,113	226,086	203,435
Total costs applicable to revenue	59,984	51,637	174,801	150,541
Operating Segments \| Owned & Host
Segment Reporting Information [Line Items]
Total net revenue	333,438	296,555	1,019,074	906,565
Total costs applicable to revenue	131,135	118,113	395,685	349,903
SG&A	128,054	118,988	387,345	351,019
Asset impairment	0	0	0	0
Other expense, net	0	0	0	0
Loss on extinguishment of debt	0		0
EBITDA	74,249	59,454	236,044	205,643
Operating Segments \| Owned & Host \| Products
Segment Reporting Information [Line Items]
Total net revenue	270,171	240,882	827,957	738,886
Total costs applicable to revenue	77,670	72,532	239,975	217,195
Operating Segments \| Owned & Host \| Services and plans
Segment Reporting Information [Line Items]
Total net revenue	63,267	55,673	191,117	167,679
Total costs applicable to revenue	53,465	45,581	155,710	132,708
Operating Segments \| Legacy
Segment Reporting Information [Line Items]
Total net revenue	39,355	37,228	123,197	119,092
Total costs applicable to revenue	18,200	16,452	57,213	51,321
SG&A	13,920	13,621	42,041	40,519
Asset impairment	0	0	0	0
Other expense, net	0	0	0	0
Loss on extinguishment of debt	0		0
EBITDA	7,235	7,155	23,943	27,252
Operating Segments \| Legacy \| Products
Segment Reporting Information [Line Items]
Total net revenue	25,252	24,739	81,178	80,004
Total costs applicable to revenue	11,681	11,328	38,123	36,356
Operating Segments \| Legacy \| Services and plans
Segment Reporting Information [Line Items]
Total net revenue	14,103	12,489	42,019	39,088
Total costs applicable to revenue	6,519	5,124	19,090	14,965
Operating Segments \| Corporate/Other
Segment Reporting Information [Line Items]
Total net revenue	63,174	54,198	189,401	156,795
Total costs applicable to revenue	55,684	47,813	166,534	137,599
SG&A	48,316	52,419	137,058	129,806
Asset impairment	3,516	2,137	7,387	2,137
Other expense, net	146	411	975	829
Loss on extinguishment of debt	9,786		9,786
EBITDA	(54,274)	(48,582)	(132,339)	(113,576)
Operating Segments \| Corporate/Other \| Products
Segment Reporting Information [Line Items]
Total net revenue	63,173	53,286	189,389	153,856
Total costs applicable to revenue	55,684	46,881	166,533	134,731
Operating Segments \| Corporate/Other \| Services and plans
Segment Reporting Information [Line Items]
Total net revenue	1	912	12	2,939
Total costs applicable to revenue	0	932	1	2,868
Reconciliations
Segment Reporting Information [Line Items]
Total net revenue	(4,065)	(556)	(9,104)	(1,520)
Total costs applicable to revenue	(517)	210	(454)	1,278
SG&A	0	0	0	0
Asset impairment	0	0	0	0
Other expense, net	0	0	0	0
Loss on extinguishment of debt	0		0
EBITDA	(3,548)	(766)	(8,650)	(2,798)
Reconciliations \| Products
Segment Reporting Information [Line Items]
Total net revenue	(2,807)	405	(2,042)	4,751
Total costs applicable to revenue	(517)	210	(454)	1,278
Reconciliations \| Services and plans
Segment Reporting Information [Line Items]
Total net revenue	(1,258)	(961)	(7,062)	(6,271)
Total costs applicable to revenue	$ 0	$ 0	$ 0	$ 0

Earnings Per Share - Reconciliation of Basic and Diluted EPS Calculations (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended						9 Months Ended
	Sep. 28, 2019	Jun. 29, 2019	Mar. 30, 2019	Sep. 29, 2018	Jun. 30, 2018	Mar. 31, 2018	Sep. 28, 2019	Sep. 29, 2018
Earnings Per Share [Abstract]
Net income	$ 1,192	$ 10,257	$ 17,429	$ 5,171	$ 12,467	$ 24,455	$ 28,879	$ 42,093
Weighted average shares outstanding for basic EPS (shares)	78,474			76,118			78,387	75,361
Effect of dilutive securities:
Stock options (shares)	3,024			3,485			3,074	3,119
Restricted stock (shares)	63			107			49	91
Weighted average shares outstanding for diluted EPS	81,561			79,710			81,510	78,571
Basic EPS (in usd per share)	$ 0.02			$ 0.07			$ 0.37	$ 0.56
Diluted EPS (in usd per share)	$ 0.01			$ 0.06			$ 0.35	$ 0.54
Options and RSUs
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive options, RSUs outstanding excluded from EPS (shares)	315			0			289	0

Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 28, 2019	Sep. 29, 2018	Sep. 28, 2019	Sep. 29, 2018
Accumulated Other Comprehensive Loss, Net of Tax [Roll Forward]
Beginning balance	$ 774,434	$ 723,400	$ 743,154	$ 654,600
Ending balance	765,471	751,338	765,471	751,338
Cash Flow Hedges
Accumulated Other Comprehensive Loss, Net of Tax [Roll Forward]
Beginning balance	(5,427)	(2,746)	(2,810)	(9,868)
Other comprehensive income (loss) before reclassification	(439)	854	(5,760)	6,696
Tax effect of other comprehensive income (loss) before reclassification	112	(218)	1,476	(1,715)
Amount reclassified from AOCL into interest expense	1,120	1,413	2,922	5,146
Tax effect of amount reclassified from AOCL into interest expense	(287)	(362)	(749)	(1,318)
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent	506	1,687	(2,111)	8,809
Ending balance	$ (4,921)	$ (1,059)	$ (4,921)	$ (1,059)

Label	Element	Value
Restricted Cash and Cash Equivalents	us-gaap_RestrictedCashAndCashEquivalents	$ 1,200,000
Restricted Cash and Cash Equivalents	us-gaap_RestrictedCashAndCashEquivalents	1,188,000
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance	us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1	742,648,000
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance	us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1	673,630,000
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
AOCI Attributable to Parent [Member]
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance	us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1	(2,810,000)
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance	us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1	(9,868,000)
Treasury Stock [Member]
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance	us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1	(2,161,000)
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance	us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1	(233,000)
Additional Paid-in Capital [Member]
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance	us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1	672,503,000
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance	us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1	$ 631,798,000
Common Stock [Member]
Shares Outstanding, Adjusted Balance	eye_SharesOutstandingAdjustedBalance	78,167,000
Shares Outstanding, Adjusted Balance	eye_SharesOutstandingAdjustedBalance	74,654,000
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance	us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1	$ 782,000
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance	us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1	$ 746,000