On July 20, 2023, the Company received a notice of non-renewal from Walmart of the Management & Services Agreement by and between NVI and Walmart, dated as of May 1, 2012 (as amended, supplemented or otherwise modified from time to time, the “Walmart MSA”). In accordance with the terms of the Walmart MSA and the notice, the agreement terminated as of February 23, 2024 (the “Termination Date”). In connection with the termination of the Walmart MSA, the Amended and Restated Supplier Agreement between NVI and Walmart, dated as of January 17, 2017; the agreement between FirstSight Vision Services, Inc. (“FirstSight”), a wholly-owned subsidiary of the Company, and Walmart, which arranged for the provision by FirstSight of optometric services at optometric offices next to certain Walmart stores throughout California; and certain other related agreements also terminated as of the Termination Date. The Walmart MSA includes provisions governing the transition period and post-termination obligations of the parties.

AC Lens delivered notices of non-renewal of the agreements it has with Walmart and its affiliate Sam’s Club regarding wholesale contact lenses distribution and related services, such that these agreements terminated during the three months ended June 29, 2024, and the Company wound down the majority of AC Lens operations, including the closure of its Ohio distribution center, which largely supported the wholesale distribution and e-commerce contact lens services that the Company provided to Walmart and Sam’s Club.

We recorded a net (benefit) expense of $(0.6) million and $5.1 million, respectively, during the three and nine months ended September 28, 2024, and $2.0 million during the three and nine months ended September 30, 2023 associated with the termination of the Walmart MSA and wind down of AC Lens, 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.

As a result of the termination of the Walmart MSA and wind down of AC Lens operations, our former Legacy reportable segment and certain other results previously included in our Corporate/Other and Reconciliations categories, 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.

Major classes of assets and liabilities related to discontinued operations are presented in the table below. We have retained working capital and deferred tax balances related to discontinued operations; consequently, these items are not part of the disposal group.


In thousands	As of September 28, 2024		As of December 30, 2023
Noncurrent assets:
Property and equipment, net	$	—	$	2,376
Right of use assets	—		304
Other intangible assets, net	—		99

Total noncurrent assets of discontinued operations	$	—	$	2,779

Current liabilities:
Current operating lease obligations	$	—	$	302
Total current liabilities of discontinued operations	$	—	$	302


	Three Months Ended				Nine Months Ended
In thousands	September 28, 2024		September 30, 2023		September 28, 2024		September 30, 2023
Revenue:
Net product sales	$	(109)	$	80,990	$	126,961	$	246,343
Net sales of services and plans	—		12,546		4,513		38,304
Total net revenue	(109)		93,536		131,474		284,647
Costs applicable to revenue (exclusive of depreciation and amortization):
Products	110		61,557		109,638		184,737
Services and plans	(119)		6,640		2,643		18,902
Total costs applicable to revenue	(9)		68,197		112,281		203,639
Operating expenses:
Selling, general and administrative expenses	(210)		22,190		22,954		64,483
Depreciation and amortization	—		1,931		1,331		7,628
Asset impairment	214		79,382		214		79,415
Other expense (income), net	(67)		(20)		(87)		(50)
Total operating expenses	(63)		103,483		24,412		151,476
Loss from discontinued operations before income taxes	(37)		(78,144)		(5,219)		(70,468)
Income tax benefit from discontinued operations	(9)		(4,712)		(3,039)		(2,269)
Loss from discontinued operations, net of tax	$	(28)	$	(73,432)	$	(2,180)	$	(68,199)


	Nine Months Ended
	September 28, 2024		September 30, 2023
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	$	1,331	7,628
Asset impairment	214		79,415

Stock-based compensation expense	(1)		720

Inventory adjustments	442		(84)
Other	(1,647)		—
Cash flows from investing activities:
Purchase of property and equipment	—		(1,762)
Other	1,738		—