LEASES (Tables)

6 Months Ended

Jun. 29, 2025

The components of lease expense for the three months ended June 29, 2025 and June 30, 2024 were as follows:


		Three Months Ended
Lease expense	Classification	June 29, 2025		June 30, 2024
Operating lease cost	Cost of sales or SM&A (1)	$	15,815	$	13,266
Finance lease cost:
Amortization of ROU assets	Depreciation and amortization (1)	2,102		2,158
Interest on lease liabilities	Interest expense, net	1,115		1,164
Net lease cost (2)		$	19,032	$	16,588

The components of lease expense for the six months ended June 29, 2025 and June 30, 2024 were as follows:


		Six Months Ended
Lease expense	Classification	June 29, 2025		June 30, 2024
Operating lease cost	Cost of sales or SM&A (1)	$	30,026	$	25,481
Finance lease cost:
Amortization of ROU assets	Depreciation and amortization (1)	4,352		4,371
Interest on lease liabilities	Interest expense, net	2,249		2,349
Net lease cost (2)		$	36,627	$	32,201

(1)Supply chain-related amounts were included in cost of sales.

(2)Net lease cost does not include short-term leases, variable lease costs or sublease income, all of which are immaterial.

Information regarding our lease terms and discount rates were as follows:


	June 29, 2025		December 31, 2024
Weighted-average remaining lease term (years)
Operating leases	11.6		12.4
Finance leases	26.4		25.9

Weighted-average discount rate
Operating leases	3.8	%	3.7	%
Finance leases	6.3	%	6.3	%

Supplemental balance sheet information related to leases were as follows:


Leases	Classification	June 29, 2025		December 31, 2024
Assets
Operating lease ROU assets	Other non-current assets	$	347,694	$	337,739

Finance lease ROU assets, at cost	Property, plant and equipment, gross	85,229		87,999
Accumulated amortization	Accumulated depreciation	(27,720)		(25,515)
Finance lease ROU assets, net	Property, plant and equipment, net	57,509		62,484

Total leased assets		$	405,203	$	400,223

Liabilities
Current
Operating	Accrued liabilities	$	46,540	$	40,636
Finance	Current portion of long-term debt	4,268		5,666
Non-current
Operating	Other long-term liabilities	309,888		304,767
Finance	Long-term debt	66,749		68,136
Total lease liabilities		$	427,445	$	419,205

The components of certain asset accounts included within our Consolidated Balance Sheets are as follows:


	June 29, 2025		December 31, 2024
Inventories:
Raw materials	$	905,447	$	477,592
Goods in process	331,479		204,674
Finished goods	1,289,677		990,785
Inventories at First In First Out	2,526,603		1,673,051
Adjustment to Last In First Out	(684,308)		(418,957)
Total inventories	$	1,842,295	$	1,254,094

Prepaid expenses and other:
Prepaid expenses	$	136,709	$	269,792

Other current assets	713,984		704,423
Total prepaid expenses and other	$	850,693	$	974,215

Property, plant and equipment:
Land	$	196,055	$	194,502
Buildings	2,051,578		1,991,937
Machinery and equipment	4,334,216		4,147,530
Construction in progress	350,840		478,842
Property, plant and equipment, gross	6,932,689		6,812,811
Accumulated depreciation	(3,490,495)		(3,353,958)
Property, plant and equipment, net	$	3,442,194	$	3,458,853

Other non-current assets:
Pension	$	39,679	$	41,298
Capitalized software, net	355,164		367,087

Operating lease ROU assets	347,694		337,739
Investments in unconsolidated affiliates	204,143		212,928
Other non-current assets	164,653		152,815
Total other non-current assets	$	1,111,333	$	1,111,867


The components of certain liability and stockholders’ equity accounts included within our Consolidated Balance Sheets are as follows:
	June 29, 2025		December 31, 2024
Accounts payable:
Accounts payable—trade	$	736,759	$	807,918
Supplier finance program obligations	461,743		215,122
Other	252,047		136,137
Total accounts payable	$	1,450,549	$	1,159,177

Accrued liabilities:
Payroll, compensation and benefits	$	208,076	$	226,774
Advertising, promotion and product allowances	392,451		359,986
Operating lease liabilities	46,540		40,636

Other	228,907		179,945
Total accrued liabilities	$	875,974	$	807,341

Other long-term liabilities:
Post-retirement benefits liabilities	$	84,227	$	87,006
Pension benefits liabilities	30,460		33,837
Operating lease liabilities	309,888		304,767
Other	227,580		262,649
Total other long-term liabilities	$	652,155	$	688,259

Accumulated other comprehensive loss:
Foreign currency translation adjustments	$	(146,197)	$	(177,741)
Pension and post-retirement benefit plans, net of tax	(117,914)		(122,098)
Cash flow hedges, net of tax	(6,313)		(4,051)
Total accumulated other comprehensive loss	$	(270,424)	$	(303,890)

The maturities of our lease liabilities as of June 29, 2025 were as follows:

The maturities of our lease liabilities as of June 29, 2025 were as follows:

Supplemental cash flow and other information related to leases were as follows:


	Six Months Ended
	June 29, 2025		June 30, 2024
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	28,831	$	24,050
Operating cash flows from finance leases	2,249		2,349
Financing cash flows from finance leases	3,286		3,065

ROU assets obtained in exchange for lease liabilities:
Operating leases	$	31,804	$	53,404
Finance leases	62		983