Segment Reporting

9 Months Ended

Sep. 30, 2023

Segment Reporting [Abstract]

Segment Reporting

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 for the two reportable segments. Refer to Note 2. “Termination of Walmart Partnership” for developments related to the Legacy segment, AC Lens and FirstSight.

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

The following is a summary of certain financial data for each of our segments. Reportable segment information is presented on the same basis as our consolidated financial statements, except for net revenue and associated costs applicable to revenue, which are presented on a cash basis, including point of sales for managed care payors and excluding the effects of unearned and deferred revenue, consistent with what the 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.

	Three Months Ended September 30, 2023
In thousands	Owned & Host		Legacy		Corporate/Other		Reconciliations		Total
Net product sales	$	346,538	$	24,198	$	64,940	$	(120)	$	435,556
Net sales of services and plans	84,388		12,523		22		(133)		96,800
Total net revenue	430,926		36,721		64,962		(253)		532,356
Costs of products	99,793		11,128		56,410		76		167,407
Costs of services and plans	77,979		6,347		293		—		84,619
Total costs applicable to revenue	177,772		17,475		56,703		76		252,026
SG&A	169,020		14,050		66,635		—		249,705
Asset impairment	—		—		80,834		—		80,834
Other expense (income), net	—		—		(19)		—		(19)
EBITDA	$	84,134	$	5,196	$	(139,191)	$	(329)
Depreciation and amortization									24,407
Interest expense (income), net									3,722
Earnings (loss) before income taxes									$	(78,319)

	Three Months Ended October 1, 2022
In thousands	Owned & Host		Legacy		Corporate/Other		Reconciliations		Total
Net product sales	$	323,472	$	23,728	$	61,939	$	1,562	$	410,701
Net sales of services and plans	74,710		12,935		—		861		88,506
Total net revenue	398,182		36,663		61,939		2,423		499,207
Costs of products	94,653		11,374		54,129		489		160,645
Costs of services and plans	66,470		5,685		—		—		72,155
Total costs applicable to revenue	161,123		17,059		54,129		489		232,800
SG&A	156,430		14,221		54,377		—		225,028
Asset impairment	—		—		1,263		—		1,263
Other expense (income), net	—		—		(95)		—		(95)
EBITDA	$	80,629	$	5,383	$	(47,735)	$	1,934
Depreciation and amortization									24,852
Interest expense (income), net									(1,977)
Earnings before income taxes									$	17,336

	Nine Months Ended September 30, 2023
In thousands	Owned & Host		Legacy		Corporate/Other		Reconciliations		Total
Net product sales	$	1,060,684	$	78,229	$	193,070	$	1,259	$	1,333,242
Net sales of services and plans	250,901		38,232		72		(2,382)		286,823
Total net revenue	1,311,585		116,461		193,142		(1,123)		1,620,065
Costs of products	304,671		35,948		167,192		212		508,023
Costs of services and plans	226,990		18,558		346		—		245,894
Total costs applicable to revenue	531,661		54,506		167,538		212		753,917
SG&A	502,638		43,312		197,648		—		743,598
Asset impairment	—		—		82,114		—		82,114
Other expense (income), net	—		—		(153)		—		(153)
EBITDA	$	277,286	$	18,643	$	(254,005)	$	(1,335)
Depreciation and amortization									74,149
Interest expense (income), net									10,425
Earnings (loss) before income taxes									$	(43,985)

	Nine Months Ended October 1, 2022
In thousands	Owned & Host		Legacy		Corporate/Other		Reconciliations		Total
Net product sales	$	1,007,376	$	75,659	$	185,521	$	(3,002)	$	1,265,554
Net sales of services and plans	227,883		40,999		—		2,037		270,919
Total net revenue	1,235,259		116,658		185,521		(965)		1,536,473
Costs of products	290,957		35,787		162,093		(612)		488,225
Costs of services and plans	197,385		17,794		—		—		215,179
Total costs applicable to revenue	488,342		53,581		162,093		(612)		703,404
SG&A	470,125		44,085		167,201		—		681,411
Asset impairment	—		—		5,178		—		5,178
Other expense (income), net	—		—		170		—		170
EBITDA	$	276,792	$	18,992	$	(149,121)	$	(353)
Depreciation and amortization									75,248
Interest expense (income), net									(2,158)
Earnings before income taxes									$	73,220