v3.26.1
Leases
 6 Months Ended
Jun. 28, 2026
Leases [Abstract]  
Leases Leases
We have operating and finance leases for properties, including manufacturing facilities, warehouses, and office space; as well as vehicles and equipment. We make certain judgments in determining whether a contract contains a lease in accordance with ASU 2016-02. Our leases have remaining lease terms within 1 to 19 years; some of which include extension and termination options. We do not assume renewals in our determination of the lease term unless the renewals are deemed to be reasonably certain as of the commencement date of the lease. We have a few short-term operating leases with terms less than twelve months - these leases are not recorded on our balance sheet and the overall rent expense is not material.
We also have certain lease contracts that contain both lease and non-lease components. We have elected the practical expedient to account for these components together as a single, combined lease component. The rate implicit in most of our leases is not readily determinable. As a result, we utilize the incremental borrowing rate to determine the present value of the lease payments, which is unique to each leased asset, and is based upon the term of the lease, commencement date of the lease, local currency of the leased asset, and the credit rating of the legal entity leasing the asset.

Our lease agreements do not contain material residual value guarantees. Our variable lease expense was approximately $0.6 million and $0.8 million for the three months ended June 28, 2026 and June 29, 2025, respectively, and $1.4 million and $1.6 million for the six months ended June 28, 2026 and June 29, 2025, respectively.
The components of lease expense were as follows:

Three Months EndedSix Months Ended
June 28, 2026June 29, 2025June 28, 2026June 29, 2025
(In thousands)
Operating lease cost$7,183 $7,288 $14,363 $14,170 
Finance lease cost
Amortization of right-of-use asset$423 $436 $848 $903 
Interest on lease liabilities111 191 239 204 
Total finance lease cost$534 $627 $1,087 $1,107 

Supplemental cash flow information related to leases was as follows:

Three Months EndedSix Months Ended
June 28, 2026June 29, 2025June 28, 2026June 29, 2025
(In thousands)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$5,553 $5,400 $10,996 $10,430 

Operating cash flows from finance leases were not material during the three and six months ended June 28, 2026 and June 29, 2025.
Supplemental balance sheet information related to leases was as follows:
June 28, 2026December 31, 2025
(In thousands)
Operating leases:
Total operating lease right-of-use assets
$102,580 $113,033 
Accrued liabilities$15,852 $20,159 
Long-term operating lease liabilities88,662 94,372 
Total operating lease liabilities$104,514 $114,531 
Finance leases:
Other long-lived assets, at cost$13,548 $13,565 
Accumulated depreciation(4,842)(4,014)
Other long-lived assets, net$8,706 $9,551 
Accrued liabilities$1,983 $1,987 
Other long-term liabilities6,909 7,914 
Total finance lease liabilities$8,892 $9,901 
June 28, 2026December 31, 2025
Weighted Average Remaining Lease Term
Operating leases10 years10 years
Finance leases5 years5 years
Weighted Average Discount Rate
Operating leases6.1 %6.1 %
Finance leases4.8 %4.9 %
In addition, we guaranteed the lease payments for certain property leases of a former subsidiary that were retained by Belden and not transferred to the buyer of the former subsidiary. During the three months ended June 28, 2026, we signed an agreement to terminate one of our guarantees for GBP 7.2 million ($9.7 million) paid over three separate installments, the first of which for GBP 2.4 million ($3.2 million) was paid during the quarter. As of June 28, 2026 and December 31, 2025, we had a liability for all lease guarantees of $9.6 million and $10.7 million, respectively. The liability is based on certain assumptions that we continually reassess on an ongoing basis. We will update the estimated liability balance for changes in assumptions as needed.
Leases Leases
We have operating and finance leases for properties, including manufacturing facilities, warehouses, and office space; as well as vehicles and equipment. We make certain judgments in determining whether a contract contains a lease in accordance with ASU 2016-02. Our leases have remaining lease terms within 1 to 19 years; some of which include extension and termination options. We do not assume renewals in our determination of the lease term unless the renewals are deemed to be reasonably certain as of the commencement date of the lease. We have a few short-term operating leases with terms less than twelve months - these leases are not recorded on our balance sheet and the overall rent expense is not material.
We also have certain lease contracts that contain both lease and non-lease components. We have elected the practical expedient to account for these components together as a single, combined lease component. The rate implicit in most of our leases is not readily determinable. As a result, we utilize the incremental borrowing rate to determine the present value of the lease payments, which is unique to each leased asset, and is based upon the term of the lease, commencement date of the lease, local currency of the leased asset, and the credit rating of the legal entity leasing the asset.

Our lease agreements do not contain material residual value guarantees. Our variable lease expense was approximately $0.6 million and $0.8 million for the three months ended June 28, 2026 and June 29, 2025, respectively, and $1.4 million and $1.6 million for the six months ended June 28, 2026 and June 29, 2025, respectively.
The components of lease expense were as follows:

Three Months EndedSix Months Ended
June 28, 2026June 29, 2025June 28, 2026June 29, 2025
(In thousands)
Operating lease cost$7,183 $7,288 $14,363 $14,170 
Finance lease cost
Amortization of right-of-use asset$423 $436 $848 $903 
Interest on lease liabilities111 191 239 204 
Total finance lease cost$534 $627 $1,087 $1,107 

Supplemental cash flow information related to leases was as follows:

Three Months EndedSix Months Ended
June 28, 2026June 29, 2025June 28, 2026June 29, 2025
(In thousands)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$5,553 $5,400 $10,996 $10,430 

Operating cash flows from finance leases were not material during the three and six months ended June 28, 2026 and June 29, 2025.
Supplemental balance sheet information related to leases was as follows:
June 28, 2026December 31, 2025
(In thousands)
Operating leases:
Total operating lease right-of-use assets
$102,580 $113,033 
Accrued liabilities$15,852 $20,159 
Long-term operating lease liabilities88,662 94,372 
Total operating lease liabilities$104,514 $114,531 
Finance leases:
Other long-lived assets, at cost$13,548 $13,565 
Accumulated depreciation(4,842)(4,014)
Other long-lived assets, net$8,706 $9,551 
Accrued liabilities$1,983 $1,987 
Other long-term liabilities6,909 7,914 
Total finance lease liabilities$8,892 $9,901 
June 28, 2026December 31, 2025
Weighted Average Remaining Lease Term
Operating leases10 years10 years
Finance leases5 years5 years
Weighted Average Discount Rate
Operating leases6.1 %6.1 %
Finance leases4.8 %4.9 %
In addition, we guaranteed the lease payments for certain property leases of a former subsidiary that were retained by Belden and not transferred to the buyer of the former subsidiary. During the three months ended June 28, 2026, we signed an agreement to terminate one of our guarantees for GBP 7.2 million ($9.7 million) paid over three separate installments, the first of which for GBP 2.4 million ($3.2 million) was paid during the quarter. As of June 28, 2026 and December 31, 2025, we had a liability for all lease guarantees of $9.6 million and $10.7 million, respectively. The liability is based on certain assumptions that we continually reassess on an ongoing basis. We will update the estimated liability balance for changes in assumptions as needed.