For deferred equipment agreements that contain embedded operating leases, upon lease commencement, the Company defers and records the equipment cost of operating lease assets within property, plant and equipment, net of accumulated depreciation. These operating lease assets are subsequently amortized to cost of goods sold over the lease term on a straight-line basis.

For deferred equipment agreements that contain embedded sales-type leases, the Company recognizes lease revenue and costs, as well as a lease receivable, at the time the lease commences. Lease revenue related to both operating-type and sales-type leases are included within revenue in the accompanying condensed consolidated statements of operations. For the three months ended June 28, 2025 and June 29, 2024, lease revenue was approximately $8.0 million and $9.0 million, respectively. For the six months ended June 28, 2025 and June 29, 2024, lease revenue was approximately $20.0 million and $25.0 million, respectively. Costs related to embedded leases within the Company’s deferred equipment agreements are included in cost of goods sold in the accompanying condensed consolidated statements of operations.


(in millions)	June 28, 2025		December 28, 2024
Lease receivable	$	78.6	$	85.5
Allowance for credit loss	(0.2)		(0.2)
Lease receivable, net	78.4		85.3
Less: current portion of lease receivable	(25.2)		(26.6)
Lease receivable, non-current	$	53.2	$	58.7

As of June 28, 2025, estimated future maturities of customer sales-type lease receivables and operating lease payments for each of the following fiscal years are as follows:


	Future Lease Receivables/Payments (in millions)
Fiscal year	Sales-Type Leases		Operating Leases

2025 (balance of year)	$	13.5	$	16.5
2026	22.7		16.2
2027	17.1		14.7
2028	11.6		11.8
2029	8.6		11.6
Thereafter	4.9		9.4
Total	$	78.4	$	80.2
Less: imputed interest(1)	—
Present value of total lease payments	$	78.4

(1) The calculation of the rates implicit in the leases resulted in negative discount rates. Therefore, the Company as a lessor used a 0% discount rate to measure the net investment in the lease.