National Vision Holdings, Inc.EYE
National Vision Holdings, Inc. Leases Disclosure
Leases
Information related to our leases is presented below:
| In thousands | As of January 3, 2026 | As of December 28, 2024 | |||||||||||||||
| Type | Classification | ||||||||||||||||
| ASSETS | |||||||||||||||||
| Finance | $ | 5,956 | $ | 8,258 | |||||||||||||
| Operating | Right of use assets (b) | 394,896 | 408,589 | ||||||||||||||
| Total leased assets | $ | 400,852 | $ | 416,847 | |||||||||||||
| LIABILITIES | |||||||||||||||||
| Current Liabilities: | |||||||||||||||||
| Finance | $ | 3,333 | $ | 3,368 | |||||||||||||
| Operating | Current operating lease obligations (c) | 90,313 | 99,694 | ||||||||||||||
| Other noncurrent liabilities: | |||||||||||||||||
| Finance | 6,089 | 9,465 | |||||||||||||||
| Operating | Noncurrent operating lease obligations | 358,377 | 366,335 | ||||||||||||||
| Total lease liabilities | $ | 458,112 | $ | 478,862 | |||||||||||||
As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the net present value of minimum lease payments. We used the incremental borrowing rate on December 30, 2018 for operating leases that commenced prior to that date. | |||||||||||||||||
_________
(a) Finance lease assets are recorded net of accumulated amortization of $30.3 million and $28.0 million as of January 3, 2026 and December 28, 2024, respectively.
(b) TIA and deferred rent are treated as reductions of lease payments used to measure ROU assets in the accompanying Consolidated Balance Sheets as of January 3, 2026 and December 28, 2024.
(c) Current operating lease liabilities are measured net of TIA receivables of $6.5 million and $4.6 million as of January 3, 2026 and December 28, 2024, respectively.
| In thousands | Fiscal Year 2025 | Fiscal Year 2024 | Fiscal Year 2023 | ||||||||||||||
| Operating lease cost | |||||||||||||||||
Fixed lease cost (a) | $ | 109,463 | $ | 103,547 | $ | 96,215 | |||||||||||
Variable lease cost (b) | 40,104 | 37,733 | 36,133 | ||||||||||||||
Sublease income(c) | (1,255) | (1,410) | (1,263) | ||||||||||||||
| Finance lease cost | |||||||||||||||||
| Amortization of finance lease assets | 2,194 | 2,370 | 3,061 | ||||||||||||||
| Interest on finance lease liabilities | 982 | 1,233 | 1,675 | ||||||||||||||
| Net lease cost | $ | 151,488 | $ | 143,473 | $ | 135,821 | |||||||||||
(a)Includes short-term leases, which are immaterial. (b)Includes costs for insurance, real estate taxes and common area maintenance expenses, which are variable as well as lease costs above minimum thresholds for Fred Meyer stores and lease costs for Military stores. (c)Income from sub-leasing of stores includes rental income from operating lease properties to independent optometrists. | |||||||||||||||||
| Lease Term and Discount Rate | As of January 3, 2026 | As of December 28, 2024 | ||||||||||||
| Weighted average remaining lease term (months) | ||||||||||||||
| Operating leases | 70 | 71 | ||||||||||||
| Finance leases | 37 | 48 | ||||||||||||
Weighted average discount rate (a) | ||||||||||||||
| Operating leases | 5.4 | % | 5.1 | % | ||||||||||
Finance leases (b) | 10.2 | % | 10.4 | % | ||||||||||
(a)The discount rate used to determine the lease assets and lease liabilities was derived upon considering (i) incremental borrowing rates on our term loan and revolving credit facility; (ii) Term SOFR margins for issuers of similar credit rating; and (iii) effect of collateralization. As a majority of our leases are -year and 10-year leases, we determined a lease discount rate for such tenors and determined this discount rate is reasonable for leases that were entered into during the period. (b)The discount rate on finance leases is higher than operating leases because the present value of minimum lease payments was higher than the fair value of leased properties for certain leases entered into prior to adoption of ASC 842. The discount rate differential for those leases is not material to our results of operations. | ||||||||||||||
| In thousands | Fiscal Year 2025 | Fiscal Year 2024 | Fiscal Year 2023 | |||||||||||||||||
| Other Information | ||||||||||||||||||||
| Operating cash outflows - operating leases | $ | 128,268 | $ | 113,113 | $ | 103,562 | ||||||||||||||
| Right of use assets acquired under operating leases | $ | 80,740 | $ | 96,170 | $ | 111,792 | ||||||||||||||
The following table summarizes the maturity of our lease liabilities as of January 3, 2026:
| In thousands | Operating Leases (a) | Finance Leases (b) | ||||||||||||
| Fiscal Year | ||||||||||||||
| 2026 | $ | 110,992 | $ | 4,249 | ||||||||||
| 2027 | 102,659 | 3,370 | ||||||||||||
| 2028 | 80,021 | 1,959 | ||||||||||||
| 2029 | 70,742 | 612 | ||||||||||||
| 2030 | 53,573 | 273 | ||||||||||||
| Thereafter | 111,690 | 136 | ||||||||||||
| Total lease liabilities | 529,677 | 10,599 | ||||||||||||
| Less: Interest | 80,987 | 1,177 | ||||||||||||
Present value of lease liabilities(c) | $ | 448,690 | $ | 9,422 | ||||||||||
_________
(a) Operating lease payments include $19.7 million related to options to extend lease terms that are reasonably certain of being exercised.
(b) Finance lease payments include no options to extend lease terms that are reasonably certain of being exercised.
(c) The present value of lease liabilities excludes $21.0 million of legally binding minimum lease payments for leases signed but not yet commenced.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2026 | Mar 4, 2026 | Showing above |
| 2024 | Feb 26, 2025 | |
| 2023 | Feb 27, 2024 | |
| 2022 | Feb 28, 2022 | |
| 2021 | Mar 3, 2021 | |
| 2019 | Feb 26, 2020 | |
About Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.