v3.25.2
Balance Sheet Information and Other Supplemental Disclosures
 6 Months Ended
Jul. 04, 2025
Balance Sheet Related Disclosures [Abstract]  
Balance Sheet Information and Other Supplemental Disclosures
Note 6: Balance Sheet Information and Other Supplemental Disclosures

Goodwill

Goodwill is tested for impairment annually on the first day of the fourth quarter, or more frequently, if events or changes in circumstances would more likely-than-not reduce the fair value of a reporting unit below its carrying value.

The following table summarizes goodwill by operating and reportable segments (in millions): 
As of
 July 4, 2025December 31, 2024
GoodwillAccumulated Impairment LossesCarrying ValueGoodwillAccumulated Impairment LossesCarrying Value
Operating and Reportable Segments:
AMG$1,562.3 $(748.9)$813.4 $1,562.3 $(748.9)$813.4 
PSG735.8 (31.9)703.9 682.1 (31.9)650.2 
ISG124.3 — 124.3 124.3 — 124.3 
Total$2,422.4 $(780.8)$1,641.6 $2,368.7 $(780.8)$1,587.9 

The change in the goodwill balance from December 31, 2024 to July 4, 2025 was as follows (in millions):

Net balance as of December 31, 2024$1,587.9 
Addition related to business acquisition53.7 
Net balance as of July 4, 2025$1,641.6 

See Note 4: ''Acquisition'' for further discussion on the acquisition of the SiC JFET technology business from Qorvo US, Inc., and certain of its subsidiaries within the PSG operating and reportable segment.

Inventories

Details of inventories were as follows (in millions):
As of
July 4, 2025December 31, 2024
Inventories:
Raw materials$290.9 $349.8 
Work in process1,389.2 1,391.9 
Finished goods407.0 500.3 
Total$2,087.1 $2,242.0 
Property, Plant and Equipment, net

Details of property, plant and equipment, net were as follows (in millions):
As of
July 4, 2025December 31, 2024
Land$116.5 $115.7 
Buildings and improvements1,502.2 1,423.2 
Machinery, equipment and other6,156.6 6,781.3 
Property, plant and equipment, gross7,775.3 8,320.2 
Less: Accumulated depreciation(4,060.4)(3,958.8)
Total$3,714.9 $4,361.4 

The table above reflects the reduction to property, plant and equipment resulting from the post-impairment categorization of $63.5 million to Assets held-for-sale as of July 4, 2025 on the Consolidated Balance Sheet. See Note 5: ''Restructuring, Asset Impairments and Other, Net'' for additional information.

Defined Benefit Plans

The Company recognizes the aggregate amount of all over-funded plans as assets and the aggregate amount of all underfunded plans as liabilities in its financial statements. As of July 4, 2025, the net assets for the over-funded plans totaled $25.4 million. The total accrued pension liability for underfunded plans was $63.3 million, of which the current portion of $3.2 million was classified as Accrued expenses and other current liabilities. During the quarter and six months ended July 4, 2025, the Company incurred no curtailment losses and $1.5 million, respectively, in connection with the 2025 Manufacturing Realignment Program. See Note 5: ''Restructuring, Asset Impairments and Other, Net'' for additional information. As of December 31, 2024, the net funded status for all the plans was a liability of $36.9 million, of which the current portion of $1.9 million was classified as Accrued expenses and other current liabilities.

The components of the net periodic pension expense were as follows (in millions):
Quarters EndedSix Months Ended
July 4, 2025June 28, 2024July 4, 2025June 28, 2024
Service cost$1.1 $1.2 $2.2 $2.5 
Interest cost1.4 1.4 2.7 2.8 
Expected return on plan assets(1.2)(1.2)(2.4)(2.4)
Curtailment losses— — 1.5 — 
Total$1.3 $1.4 $4.0 $2.9 

Leases

Operating lease arrangements are comprised primarily of real estate and equipment agreements. The components of lease expense were as follows (in millions):
Quarters EndedSix Months Ended
July 4, 2025June 28, 2024July 4, 2025June 28, 2024
Operating lease$20.5 $15.0 $38.3 $27.6 
Variable lease1.8 1.4 2.9 2.7 
Short-term lease0.7 0.4 1.5 0.8 
Total$23.0 $16.8 $42.7 $31.1 
The operating lease liabilities and operating ROU assets recognized in the Consolidated Balance Sheets were as follows (in millions):
As of
July 4, 2025December 31, 2024
Operating lease liabilities included in:
Accrued expenses and other current liabilities$34.1 $31.5 
Other long-term liabilities226.3 244.7 
Total$260.4 $276.2 
Operating ROU assets included in:
Other assets$226.4 $249.7 

As of July 4, 2025, the weighted-average remaining lease terms were 9.9 years and 16.5 years, and the weighted-average discount rates were 5.1% and 5.7%, for operating leases and financing leases, respectively.

Supplemental Disclosure of Cash Flow Information

Certain of the cash and non-cash activities were as follows (in millions):
Six Months Ended
July 4, 2025June 28, 2024
Non-cash investing activities:
Capital expenditures in accounts payable and other long-term liabilities$111.6 $221.7 
Operating ROU assets obtained in exchange for lease liabilities13.1 38.5 
Cash paid for:
Interest expense$29.3 $31.3 
Income taxes86.5 244.9 
Operating lease payments in operating cash flows34.8 24.2 

The following table shows a reconciliation of the captions in the Consolidated Balance Sheets to the Consolidated Statements of Cash Flows (in millions):
As of
July 4, 2025December 31, 2024June 28, 2024December 31, 2023
Consolidated Balance Sheets:
Cash and cash equivalents$2,526.7 $2,691.3 $2,231.0 $2,483.0 
Restricted cash (included in other current assets)2.9 2.1 2.1 2.0 
Cash, cash equivalents and restricted cash in Consolidated Statements of Cash Flows$2,529.6 $2,693.4 $2,233.1 $2,485.0