v3.25.2
Leases
 6 Months Ended
Jun. 29, 2025
Leases [Abstract]  
Leases Leases
The Company determines if an arrangement is a lease at inception of a contract. The Company leases equipment and real estate including office space, branch locations, and distribution centers under operating leases. Most leases include one or more options to renew, with renewal terms that can extend the lease term from one year to five years or more. The exercises of lease renewal options are at the Company’s sole discretion. Finance lease obligations consist primarily of the Company’s vehicle fleet. Certain leases include options to purchase the leased property. ROU assets represent the Company's right to use an underlying asset during the lease term and lease liabilities represent the Company's obligation to make lease payments arising from the lease. ROU assets and liabilities are recognized at the commencement date based on the net present value of fixed lease payments over the lease term. As most of the Company's operating leases do not provide an implicit interest rate, the Company uses an incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. Finance lease agreements generally include an interest rate that is used to determine the present value of future lease payments. Variable lease payment amounts that cannot be determined at the commencement of the lease such as increases in lease payments based on changes in index rates or usage, are not included in the ROU assets or lease liabilities and are expensed as incurred and recorded as variable lease expense. Leases with an initial term of 12 months or less are not recorded in the Consolidated Balance Sheets.

The components of lease expense were as follows (in millions):
Three Months EndedSix Months Ended
Lease CostClassificationJune 29, 2025June 30, 2024June 29, 2025June 30, 2024
Finance lease cost:
Amortization of right-of-use assetsCost of goods sold$0.1 $— $0.3 $— 
Amortization of right-of-use assetsSelling, general and administrative expenses8.6 7.1 16.7 13.3 
Interest on lease liabilitiesInterest and other non-operating expenses, net2.4 1.6 4.6 3.0 
Operating lease costCost of goods sold2.1 2.1 4.1 4.1 
Operating lease costSelling, general and administrative expenses27.0 24.1 52.1 48.4 
Short-term lease costCost of goods sold0.2 — 0.3 — 
Short-term lease costSelling, general and administrative expenses0.7 1.2 2.0 2.1 
Variable lease costSelling, general and administrative expenses0.3 0.7 0.8 1.6 
Sublease incomeSelling, general and administrative expenses(0.3)(0.3)(0.5)(0.5)
Total lease cost$41.1 $36.5 $80.4 $72.0 

Supplemental cash flow information related to leases was as follows (in millions):
Three Months EndedSix Months Ended
Other InformationJune 29, 2025June 30, 2024June 29, 2025June 30, 2024
Cash paid for amounts included in the measurements of lease liabilities:
Operating cash flows from finance leases$2.4 $1.6 $4.6 $3.0 
Operating cash flows from operating leases$29.4 $26.2 $58.2 $53.6 
Financing cash flows from finance leases$8.1 $6.5 $15.8 $12.3 
Right-of-use assets obtained in exchange for new lease liabilities:
Finance leases$14.6 $16.5 $26.1 $32.3 
Operating leases$28.8 $37.5 $44.1 $50.1 
The aggregate future lease payments for operating and finance leases as of June 29, 2025 were as follows (in millions):
Maturity of Lease LiabilitiesOperating LeasesFinance Leases
Fiscal year:
2025 (remainder)$48.0 $20.6 
2026104.2 38.9 
202790.0 35.0 
202873.7 31.1 
202960.2 22.9 
203042.2 11.4 
Thereafter94.7 1.7 
Total lease payments513.0 161.6 
Less: interest81.7 21.3 
Present value of lease liabilities$431.3 $140.3 

The weighted-average lease terms and discount rates were as follows:
Lease Term and Discount RateJune 29, 2025June 30, 2024
Weighted-average remaining lease term:
Finance leases4.5 years4.6 years
Operating leases5.9 years6.2 years
Weighted-average discount rate:
Finance leases6.7 %6.4 %
Operating leases5.5 %5.3 %
Leases Leases
The Company determines if an arrangement is a lease at inception of a contract. The Company leases equipment and real estate including office space, branch locations, and distribution centers under operating leases. Most leases include one or more options to renew, with renewal terms that can extend the lease term from one year to five years or more. The exercises of lease renewal options are at the Company’s sole discretion. Finance lease obligations consist primarily of the Company’s vehicle fleet. Certain leases include options to purchase the leased property. ROU assets represent the Company's right to use an underlying asset during the lease term and lease liabilities represent the Company's obligation to make lease payments arising from the lease. ROU assets and liabilities are recognized at the commencement date based on the net present value of fixed lease payments over the lease term. As most of the Company's operating leases do not provide an implicit interest rate, the Company uses an incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. Finance lease agreements generally include an interest rate that is used to determine the present value of future lease payments. Variable lease payment amounts that cannot be determined at the commencement of the lease such as increases in lease payments based on changes in index rates or usage, are not included in the ROU assets or lease liabilities and are expensed as incurred and recorded as variable lease expense. Leases with an initial term of 12 months or less are not recorded in the Consolidated Balance Sheets.

The components of lease expense were as follows (in millions):
Three Months EndedSix Months Ended
Lease CostClassificationJune 29, 2025June 30, 2024June 29, 2025June 30, 2024
Finance lease cost:
Amortization of right-of-use assetsCost of goods sold$0.1 $— $0.3 $— 
Amortization of right-of-use assetsSelling, general and administrative expenses8.6 7.1 16.7 13.3 
Interest on lease liabilitiesInterest and other non-operating expenses, net2.4 1.6 4.6 3.0 
Operating lease costCost of goods sold2.1 2.1 4.1 4.1 
Operating lease costSelling, general and administrative expenses27.0 24.1 52.1 48.4 
Short-term lease costCost of goods sold0.2 — 0.3 — 
Short-term lease costSelling, general and administrative expenses0.7 1.2 2.0 2.1 
Variable lease costSelling, general and administrative expenses0.3 0.7 0.8 1.6 
Sublease incomeSelling, general and administrative expenses(0.3)(0.3)(0.5)(0.5)
Total lease cost$41.1 $36.5 $80.4 $72.0 

Supplemental cash flow information related to leases was as follows (in millions):
Three Months EndedSix Months Ended
Other InformationJune 29, 2025June 30, 2024June 29, 2025June 30, 2024
Cash paid for amounts included in the measurements of lease liabilities:
Operating cash flows from finance leases$2.4 $1.6 $4.6 $3.0 
Operating cash flows from operating leases$29.4 $26.2 $58.2 $53.6 
Financing cash flows from finance leases$8.1 $6.5 $15.8 $12.3 
Right-of-use assets obtained in exchange for new lease liabilities:
Finance leases$14.6 $16.5 $26.1 $32.3 
Operating leases$28.8 $37.5 $44.1 $50.1 
The aggregate future lease payments for operating and finance leases as of June 29, 2025 were as follows (in millions):
Maturity of Lease LiabilitiesOperating LeasesFinance Leases
Fiscal year:
2025 (remainder)$48.0 $20.6 
2026104.2 38.9 
202790.0 35.0 
202873.7 31.1 
202960.2 22.9 
203042.2 11.4 
Thereafter94.7 1.7 
Total lease payments513.0 161.6 
Less: interest81.7 21.3 
Present value of lease liabilities$431.3 $140.3 

The weighted-average lease terms and discount rates were as follows:
Lease Term and Discount RateJune 29, 2025June 30, 2024
Weighted-average remaining lease term:
Finance leases4.5 years4.6 years
Operating leases5.9 years6.2 years
Weighted-average discount rate:
Finance leases6.7 %6.4 %
Operating leases5.5 %5.3 %