The Company has operating leases for production, office and warehouse facilities, manufacturing and office equipment and vehicles. Operating lease assets and obligations included in the accompanying condensed consolidated balance sheets are shown below (in millions):


	June 28, 2025		December 31, 2024
Right-of-use assets under operating leases:
Other long-term assets	$	722.8	$	699.8
Lease obligations under operating leases:
Accrued liabilities	$	166.8	$	152.6
Other long-term liabilities	592.9		582.5
	$	759.7	$	735.1


	June 28, 2025
2025 (1)	$	98.2
2026	176.8
2027	149.6
2028	119.6
2029	86.7
Thereafter	214.8
Total undiscounted cash flows	845.7
Less: Imputed interest	(86.0)
Lease obligations under operating leases	$	759.7


	Six Months Ended
	June 28, 2025		June 29, 2024
Non-cash activity:
Right-of-use assets obtained in exchange for operating lease obligations	$	69.6	$	88.5
Operating cash flows:
Cash paid related to operating lease obligations	$	96.9	$	95.4

Lease expense included in the accompanying condensed consolidated statements of comprehensive income (loss) is shown below (in millions):


	Three Months Ended				Six Months Ended
	June 28, 2025		June 29, 2024		June 28, 2025		June 29, 2024
Operating lease expense	$	48.6	$	47.4	$	95.7	$	94.7
Short-term lease expense	5.3		5.3		10.5		10.9
Variable lease expense	1.6		2.0		3.3		4.1
Total lease expense	$	55.5	$	54.7	$	109.5	$	109.7

In the three and six months ended June 28, 2025, the Company incurred $10.7 million and $21.0 million, respectively, related to usage-based employee transportation costs.

In the six months ended June 28, 2025, the Company recognized impairment charges of $0.1 million related to its right-of-use assets in conjunction with its restructuring actions (Note 2, "Restructuring"). In the six months ended June 29, 2024, the Company recognized impairment charges of $0.9 million related to its right-of-use assets. The impairment charges are included in cost of sales in the accompanying condensed consolidated statements of comprehensive income (loss).


	June 28, 2025
Weighted average remaining lease term	Six years
Weighted average discount rate	3.9	%

The Company is party to finance lease agreements, which are not material to the accompanying condensed consolidated financial statements (Note 7, "Debt").

For further information related to the Company's leases, see Note 7, "Leases," to the consolidated financial statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2024.