Property and Equipment, net

3 Months Ended

Apr. 04, 2026

Property, Plant and Equipment [Abstract]

8. Property and Equipment, net

Property and equipment, net, consists of the following:


(in millions)	April 4, 2026		January 3, 2026
Operating lease assets	$	214.7	$	204.1
Machinery, equipment, tooling and other	152.1		150.6
Building and building improvements	151.8		151.8
Land	47.7		47.7
Computer equipment and software	41.6		41.3
Leasehold improvements	34.6		34.3

Furniture and office equipment	16.2		16.5
Demonstration units	0.5		0.5

Construction-in-progress (CIP)	26.7		24.5
Total property and equipment	685.9		671.3
Accumulated depreciation	(330.3)		(316.2)
Property and equipment, net	$	355.6	$	355.1

For the three months ended April 4, 2026 and March 29, 2025, depreciation expense of property and equipment was $6.2 million and $6.5 million, respectively.

For the three months ended April 4, 2026 and March 29, 2025, equipment leased to customers which was amortized to cost of goods sold was $8.5 million and $6.7 million, respectively.

As of April 4, 2026 and January 3, 2026, accumulated amortization of equipment leased to customers was $83.6 million and $74.1 million, respectively.

The balance in CIP at April 4, 2026 and January 3, 2026, related primarily to the capitalized implementation costs related to a new enterprise resource planning software system costs, machinery, equipment, and the underlying assets for which have not been completed or placed into service.