Discontinued Operations

12 Months Ended

Jan. 03, 2026

Discontinued Operations and Disposal Groups [Abstract]

As a result of the termination of various agreements with Walmart and the wind down of AC Lens operations in fiscal year 2024, our former Legacy reportable segment and certain other results previously included in corporate and other as well as related effects of unearned and deferred revenue, met the criteria to be presented as discontinued operations. Accordingly, the assets and liabilities and results of operations of the discontinued operations have been presented in the tables below. There was no discontinued operations activity in fiscal year 2025. There were no discontinued operations assets or liabilities as of December 28, 2024 and January 3, 2026.

During fiscal years 2024 and 2023, we recorded $4.4 million and $5.2 million, respectively, of net expense associated with the aforementioned termination and consolidation activities, which consisted of employee compensation benefits, early termination fees, and other exit related costs. These charges were recorded in both Selling, general, and administrative expenses and Costs applicable to revenue for discontinued operations. The plan has been substantially completed and we do not anticipate additional material costs related to this plan.

The following table presents income (loss) from discontinued operations, net of tax:


In thousands	Fiscal Year 2024		Fiscal Year 2023
Revenue:
Net product sales	$	126,960	$	320,907
Net sales of services and plans	4,513		49,190
Total net revenue	131,473		370,097
Costs applicable to revenue (exclusive of depreciation and amortization):
Products	109,637		240,578
Services and plans	2,585		25,677
Total costs applicable to revenue	112,222		266,255
Operating expenses:
Selling, general and administrative expenses	21,851		87,126
Depreciation and amortization	1,331		8,378
Asset impairment	248		79,714
Other expense (income), net	(87)		(60)
Total operating expenses	23,343		175,158
Earnings (loss) from discontinued operations before income taxes	(4,092)		(71,316)
Income tax provision (benefit) from discontinued operations	(2,758)		(1,869)
Income (loss) from discontinued operations, net of tax	$	(1,334)	$	(69,447)

The following table presents significant non-cash items and cash flows from investing activities related to discontinued operations:


	Fiscal Year 2024		Fiscal Year 2023
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	$	1,331	$	8,378
Asset impairment	$	248	$	79,714

Stock-based compensation expense	$	—	$	971

Inventory adjustments	$	442	$	(177)
Other	$	(1,647)	$	—
Cash flows from investing activities:
Purchase of property and equipment	$	—	$	(1,781)
Other	$	1,738	$	—