v3.25.2
Leases
 6 Months Ended
Jun. 28, 2025
Leases [Abstract]  
Leases
6. Leases
The Company’s operating and finance leases are primarily for corporate offices, warehouse space, rail cars and equipment. As of June 28, 2025, the Company’s leases have remaining lease terms of less than one year to 11.4 years, with standard renewal and termination options available at the Company’s discretion. Certain equipment leases have purchase options at the end of the lease term that are not included in the ROU assets, as it is not reasonably certain that the Company will exercise such options. Short-term leases with an initial term of 12 months or less are not recorded in the condensed consolidated balance sheets. The Company’s lease agreements do not contain any material residual value guarantees or restrictive covenants. The Company uses its incremental borrowing rate to determine the present value of lease payments unless the lease provides an implicit or explicit interest rate.
Financial and other information related to the Company’s operating and finance leases follow:
Three Months EndedSix Months Ended
June 28, 2025June 29, 2024June 28, 2025June 29, 2024
Operating lease cost$2,578 $2,136 $5,110 $3,802 
Finance lease cost
Amortization of ROU assets116 107 229 213 
Interest13 22 29 45 
Total lease cost$2,707 $2,265 $5,368 $4,060 
Balance Sheet LocationJune 28, 2025December 31, 2024
Operating leases
ROU assets Other assets$28,392 $31,112 
Lease liabilities, currentAccrued and other current liabilities8,218 7,604 
Lease liabilities, non-currentOther liabilities21,503 24,035 
Finance leases
ROU assetsProperty, plant and equipment, net$524 $709 
Lease liabilitiesLong-term debt693 921 
Six Months Ended
June 28, 2025June 29, 2024
Operating cash flows - cash paid for amounts included in the measurement of operating lease liabilities$5,133 $3,799 
Operating lease ROU assets obtained in exchange for lease liabilities(a)
770 18,092 
(a)During the six months ended June 29, 2024, the Company recorded an ROU asset and corresponding lease liability of $14 million related to a new warehouse lease agreement in Canada.
Finance lease cash flows were immaterial during each of the six months ended June 28, 2025 and June 29, 2024.
June 28, 2025December 31, 2024
Operating leases
Weighted average remaining lease term (in years)4.34.6
Weighted average discount rate8.3 %8.2 %
Finance leases
Weighted average remaining lease term (in years)1.41.8
Weighted average discount rate7.0 %7.0 %
Operating lease maturities as of June 28, 2025 were as follows:
Remainder of 2025$5,247 
20269,762 
20278,264 
20286,579 
20292,447 
Thereafter3,460 
Total minimum lease payments35,759 
Less: imputed interest(6,038)
Present value of future minimum lease payments$29,721 
Leases
6. Leases
The Company’s operating and finance leases are primarily for corporate offices, warehouse space, rail cars and equipment. As of June 28, 2025, the Company’s leases have remaining lease terms of less than one year to 11.4 years, with standard renewal and termination options available at the Company’s discretion. Certain equipment leases have purchase options at the end of the lease term that are not included in the ROU assets, as it is not reasonably certain that the Company will exercise such options. Short-term leases with an initial term of 12 months or less are not recorded in the condensed consolidated balance sheets. The Company’s lease agreements do not contain any material residual value guarantees or restrictive covenants. The Company uses its incremental borrowing rate to determine the present value of lease payments unless the lease provides an implicit or explicit interest rate.
Financial and other information related to the Company’s operating and finance leases follow:
Three Months EndedSix Months Ended
June 28, 2025June 29, 2024June 28, 2025June 29, 2024
Operating lease cost$2,578 $2,136 $5,110 $3,802 
Finance lease cost
Amortization of ROU assets116 107 229 213 
Interest13 22 29 45 
Total lease cost$2,707 $2,265 $5,368 $4,060 
Balance Sheet LocationJune 28, 2025December 31, 2024
Operating leases
ROU assets Other assets$28,392 $31,112 
Lease liabilities, currentAccrued and other current liabilities8,218 7,604 
Lease liabilities, non-currentOther liabilities21,503 24,035 
Finance leases
ROU assetsProperty, plant and equipment, net$524 $709 
Lease liabilitiesLong-term debt693 921 
Six Months Ended
June 28, 2025June 29, 2024
Operating cash flows - cash paid for amounts included in the measurement of operating lease liabilities$5,133 $3,799 
Operating lease ROU assets obtained in exchange for lease liabilities(a)
770 18,092 
(a)During the six months ended June 29, 2024, the Company recorded an ROU asset and corresponding lease liability of $14 million related to a new warehouse lease agreement in Canada.
Finance lease cash flows were immaterial during each of the six months ended June 28, 2025 and June 29, 2024.
June 28, 2025December 31, 2024
Operating leases
Weighted average remaining lease term (in years)4.34.6
Weighted average discount rate8.3 %8.2 %
Finance leases
Weighted average remaining lease term (in years)1.41.8
Weighted average discount rate7.0 %7.0 %
Operating lease maturities as of June 28, 2025 were as follows:
Remainder of 2025$5,247 
20269,762 
20278,264 
20286,579 
20292,447 
Thereafter3,460 
Total minimum lease payments35,759 
Less: imputed interest(6,038)
Present value of future minimum lease payments$29,721