Summary of Significant Accounting Policies (Tables)

3 Months Ended

Apr. 04, 2026

The following tables represent the Company’s financial assets, measured at fair value on a recurring basis at April 4, 2026:


	Total Carrying Value		Fair Value Measurement Hierarchy
(in millions)			Level 1		Level 2		Level 3
Assets
Cash and cash equivalents	$	124.6	$	124.6	$	—	$	—


Pension assets	30.5		27.1		3.4		—
Derivative instruments - cash flow hedges(1)	0.9		0.9		—		—








Total assets	$	156.0	$	152.6	$	3.4	$	—

Liabilities
Derivative instruments - cash flow hedges	$	0.1	$	0.1	$	—	$	—
Pension benefit obligation	24.8		24.8		—		—

Total liabilities	$	24.9	$	24.9	$	—	$	—

The following tables represent the Company’s financial assets, measured at fair value on a recurring basis at January 3, 2026:


	Total Carrying Value		Fair Value Measurement Hierarchy
(in millions)			Level 1		Level 2		Level 3
Assets
Cash and cash equivalents	$	55.5	$	55.5	$	—	$	—

Money market funds	96.8		96.8		—		—
Pension assets	24.8		22.0		2.8		—






Derivative instruments - cash flow hedges(1)	1.0		1.0		—		—


Total assets	$	178.1	$	175.3	$	2.8	$	—

Liabilities
Derivative instruments - cash flow hedges	$	1.4	$	1.4	$	—	$	—
Pension benefit obligation	30.3		30.3		—		—
Total liabilities	$	31.7	$	31.7	$	—	$	—

______________

(1) Includes accrued interest.

Property and equipment are stated at cost. Depreciation is calculated using the straight-line method over estimated useful lives as follows:


			Useful Lives


Buildings and building improvements			7 to 39 years
Computer equipment and software			2 to 12 years
Demonstration units			2 to 3 years
Furniture and office equipment			2 to 15 years
Leasehold improvements			Lesser of useful life or term of lease
Machinery, equipment, tooling and other			3 to 20 years
Operating lease assets			Lesser of useful life or term of lease

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

Changes in the product warranty accrual were as follows:


	Three Months Ended
(in millions)	April 4, 2026		March 29, 2025
Product warranty accrual, beginning of period	$	6.1	$	2.9

Accrual for warranties issued	0.8		1.0
Changes in pre-existing warranties (including changes in estimates)	0.3		(0.3)
Settlements made	(0.5)		(0.8)
Product warranty accrual, end of period	$	6.7	$	2.8

A computation of basic and diluted net income (loss) per share is as follows:


	Three Months Ended
(in millions, except per share amounts)	April 4, 2026		March 29, 2025

Net income from continuing operations, net of tax	$	56.3	$	47.2
Net income (loss) from discontinued operations, net of tax - (Note 18)	0.8		(217.9)
Net income (loss)	$	57.1	$	(170.7)



Basic net income (loss) per share:

Weighted-average shares outstanding - basic	52.2		54.0

Continuing operations per basic share	$	1.08	$	0.87
Discontinued operations per basic share	0.02		(4.04)
Basic income (loss) per share	$	1.10	$	(3.17)


Diluted net income (loss) per share:
Weighted-average shares outstanding - basic	52.2		54.0
Diluted share equivalents: stock options, RSUs and PSUs	0.4		0.8
Weighted-average shares outstanding - diluted	52.6		54.8

Continuing operations per diluted share	$	1.07	$	0.86
Discontinued operations per diluted share	0.02		(3.98)
Net income (loss) per diluted share	$	1.09	$	(3.12)

Supplemental cash flow information includes the following:


	Three Months Ended
(in millions)	April 4, 2026		March 29, 2025
Cash paid during the year for:
Interest expense:
Continuing operations	$	5.2	$	11.5
Discontinued operations	—		0.5
Income taxes:
Continuing operations	$	4.7	$	2.1
Discontinued operations	—		3.4
Operating lease liabilities:
Continuing operations	$	2.2	$	2.7
Discontinued operations	—		3.4

Non-cash operating activities:
ROU assets obtained in exchange for lease liabilities:
Continuing operations	$	0.9	$	(0.4)


Non-cash investing activities - continuing operations:


Unpaid purchases of property and equipment	$	2.1	$	1.2


Unpaid strategic investments	—		0.1



Non-cash financing activities - continuing operations:
Unsettled common stock proceeds from option exercises	$	—	$	0.7



Reconciliation of cash, cash equivalents and restricted cash:
Cash and cash equivalents:
Continuing operations	$	124.6	$	130.8
Discontinued operations	—		41.2
Restricted cash:
Continuing operations	$	—	$	2.7
Discontinued operations	—		1.8
Total cash, cash equivalents and restricted cash shown in the condensed consolidated statements of cash flows	$	124.6	$	176.5