Revenue From Contracts With Customers

9 Months Ended

Sep. 30, 2023

Revenue from Contract with Customer [Abstract]

Revenue From Contracts With Customers

Revenue From Contracts With Customers

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

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

	Three Months Ended				Nine Months Ended
In thousands	September 30, 2023		October 1, 2022		September 30, 2023		October 1, 2022
Revenues recognized at a point in time	$	492,788	$	459,196	$	1,501,469	$	1,412,526
Revenues recognized over time	39,568		40,011		118,596		123,947
Total net revenue	$	532,356	$	499,207	$	1,620,065	$	1,536,473

Refer to Note 11. “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.

We record reductions in revenue for estimated price concessions granted to managed care providers. The Company considers its revenue from managed care customers to include variable consideration and estimates such amounts associated with managed care customer revenues using the history of concessions provided and cash receipts from managed care providers; we reduced our net revenue for variable consideration of $4.2 million and $4.3 million during the three months ended September 30, 2023 and October 1, 2022, respectively, and $12.6 million and $10.0 million during the nine months ended September 30, 2023 and October 1, 2022, respectively.

Accounts Receivable

Credit loss expense recognized on our receivables, which is presented in SG&A expenses in the Company’s condensed consolidated statements of operations, was $0.1 million and $0.2 million for the three months ended September 30, 2023 and October 1, 2022, respectively, and $0.4 million and $0.8 million for the nine months ended September 30, 2023 and October 1, 2022, respectively.

Unsatisfied Performance Obligations (Contract Liabilities)

During the three months ended September 30, 2023 and October 1, 2022, we recognized $23.1 million and $23.3 million, respectively, of deferred revenues outstanding at the beginning of each respective period. During the nine months ended September 30, 2023 and October 1, 2022, we recognized $53.7 million and $56.8 million, respectively, of deferred revenues outstanding at the beginning of each respective period.

Our deferred revenue balance as of September 30, 2023 and December 31, 2022 was $86.2 million and $83.8 million, respectively. We expect future revenue recognition of the September 30, 2023 balance of $23.3 million, $46.1 million, $13.6 million and $3.2 million in fiscal years 2023, 2024, 2025 and thereafter, respectively.