Goodwill and Intangible Assets

12 Months Ended

Jan. 03, 2026

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

Goodwill and Intangible Assets

The gross carrying amount and accumulated impairment of the Company’s goodwill balances for 2025 and 2024 are as follows:

	As of January 3, 2026				As of December 28, 2024
In thousands	Gross Carrying Amount		Accumulated Impairment		Gross Carrying Amount		Accumulated Impairment
Owned & Host Segment (1)	$	739,238	$	(38,596)	$	736,901	$	(38,596)

(1)The Company acquired $2.3 million of additional goodwill during fiscal year 2025 upon transition of select Eyeglass World stores from a sublease model to a Company owned model.

The Owned & Host Segment’s goodwill contains $606.5 million related to America’s Best and $94.1 million related to Eyeglass World. Accumulated goodwill impairment relates to our Eyeglass World, Fred Meyer and Military reporting units. In fiscal year 2024, we tested Eyeglass World goodwill for recoverability due to reduced projections of future growth and profitability and we recognized an impairment of $19.2 million of Eyeglass World goodwill. Refer to Note 1. “Business and Significant Accounting Policies” and Note 12. “Fair Value Measurement” for more information on goodwill impairment.

Indefinite-lived intangible assets by major asset class are as follows:

In thousands	As of January 3, 2026		As of December 28, 2024
Trademarks and trade names:
America’s Best	$	200,547	$	200,547
Eyeglass World	40,000		40,000
	$	240,547	$	240,547

We intend to maintain our trademarks; renewals will take place as needed.

Finite-lived, amortizing intangible assets by major asset class are as shown in the following table.

	As of January 3, 2026					As of December 28, 2024
In thousands	Gross Carrying Amount		Accumulated Amortization		Remaining Life (Years)	Gross Carrying Amount		Accumulated Amortization		Remaining Life (Years)
Contracts and relationships:
Fred Meyer contracts and relationships	$	8,400	$	(846)	11	$	8,400	$	(169)	12
Other	151		(151)		0	151		(113)		1
	$	8,551	$	(997)		$	8,551	$	(282)

In the third quarter of 2024, we recorded $10.5 million impairment related to the Fred Meyer contract and relationship intangible asset due to the decision to close certain Fred Meyer stores as part of our store fleet review in fiscal year 2024.

We intend to maintain our Fred Meyer contracts and relationships intangible asset. We amortized $0.7 million, $1.4 million, and $1.6 million in 2025, 2024, and 2023, respectively.

Aggregate amortization expense is included in Depreciation and amortization in the accompanying Consolidated Statements of Operations. Aggregate future estimated amortization expense is shown in the following table:

Fiscal Year	In thousands
2026	$	677
2027	677
2028	677
2029	677
2030	677
Thereafter	4,169
	$	7,554