LEASES (Tables)

6 Months Ended

Jun. 28, 2026

The components of lease expense for the three months ended June 28, 2026 and June 29, 2025 were as follows:


		Three Months Ended
Lease expense	Classification	June 28, 2026		June 29, 2025
Operating lease cost	Cost of sales or SM&A (1)	$	16,264	$	15,815
Finance lease cost:
Amortization of ROU assets	Depreciation and amortization (1)	2,236		2,102
Interest on lease liabilities	Interest expense, net	1,171		1,115
Net lease cost (2)		$	19,671	$	19,032

The components of lease expense for the six months ended June 28, 2026 and June 29, 2025 were as follows:


		Six Months Ended
Lease expense	Classification	June 28, 2026		June 29, 2025
Operating lease cost	Cost of sales or SM&A (1)	$	32,646	$	30,026
Finance lease cost:
Amortization of ROU assets	Depreciation and amortization (1)	4,460		4,352
Interest on lease liabilities	Interest expense, net	2,340		2,249
Net lease cost (2)		$	39,446	$	36,627

(1)Supply chain-related amounts were included in cost of sales.

(2)Net lease cost does not include short-term leases, variable lease costs or sublease income, all of which are immaterial.

Information regarding our lease terms and discount rates were as follows:


	June 28, 2026		December 31, 2025
Weighted-average remaining lease term (years)
Operating leases	10.2		10.2
Finance leases	24.2		25.2

Weighted-average discount rate
Operating leases	4.6	%	4.6	%
Finance leases	6.2	%	6.3	%

Supplemental balance sheet information related to leases were as follows:


Leases	Classification	June 28, 2026		December 31, 2025
Assets
Operating lease ROU assets	Other non-current assets	$	301,914	$	325,345

Finance lease ROU assets, at cost	Property, plant and equipment, gross	83,874		83,714
Accumulated amortization	Accumulated depreciation	(26,634)		(26,073)
Finance lease ROU assets, net	Property, plant and equipment, net	57,240		57,641

Total leased assets		$	359,154	$	382,986

Liabilities
Current
Operating	Accrued liabilities	$	50,790	$	49,583
Finance	Current portion of long-term debt	5,259		4,499
Non-current
Operating	Other long-term liabilities	261,842		285,925
Finance	Long-term debt	70,282		69,011
Total lease liabilities		$	388,173	$	409,018

The components of certain asset accounts included within our Consolidated Balance Sheets are as follows:


	June 28, 2026		December 31, 2025
Inventories:
Raw materials	$	896,466	$	762,391
Goods in process	331,499		294,374
Finished goods	1,210,591		1,074,690
Inventories at First In First Out	2,438,556		2,131,455
Adjustment to Last In First Out	(695,238)		(702,201)
Total inventories	$	1,743,318	$	1,429,254

Prepaid expenses and other:
Prepaid expenses	$	149,766	$	201,527

Other current assets	364,576		302,712
Total prepaid expenses and other	$	514,342	$	504,239

Property, plant and equipment:
Land	$	195,991	$	199,559
Buildings	2,115,840		2,102,794
Machinery and equipment	4,546,969		4,515,447
Construction in progress	363,136		324,998
Property, plant and equipment, gross	7,221,936		7,142,798
Accumulated depreciation	(3,746,222)		(3,613,190)
Property, plant and equipment, net	$	3,475,714	$	3,529,608

Other non-current assets:
Pension	$	74,218	$	64,520
Capitalized software, net	331,134		351,285

Operating lease ROU assets	301,914		325,345
Investments in unconsolidated affiliates	174,834		176,567
Other non-current assets	220,588		205,568
Total other non-current assets	$	1,102,688	$	1,123,285


The components of certain liability and stockholders’ equity accounts included within our Consolidated Balance Sheets are as follows:
	June 28, 2026		December 31, 2025
Accounts payable:
Accounts payable—trade	$	946,720	$	831,204
Supplier finance program obligations	332,736		300,332
Other	121,366		124,165
Total accounts payable	$	1,400,822	$	1,255,701

Accrued liabilities:
Payroll, compensation and benefits	$	200,851	$	311,241
Advertising, promotion and product allowances	440,978		373,940
Operating lease liabilities	50,790		49,583

Other	273,717		235,833
Total accrued liabilities	$	966,336	$	970,597

Other long-term liabilities:
Post-retirement benefits liabilities	$	94,830	$	98,101
Pension benefits liabilities	38,119		42,987
Operating lease liabilities	261,842		285,925
Other	257,344		304,904
Total other long-term liabilities	$	652,135	$	731,917

Accumulated other comprehensive loss:
Foreign currency translation adjustments	$	(138,566)	$	(136,508)
Pension and post-retirement benefit plans, net of tax	(93,212)		(107,620)
Cash flow hedges, net of tax	1,229		(3,222)
Total accumulated other comprehensive loss	$	(230,549)	$	(247,350)

The maturities of our lease liabilities as of June 28, 2026 were as follows:

The maturities of our lease liabilities as of June 28, 2026 were as follows:

Supplemental cash flow and other information related to leases were as follows:


	Six Months Ended
	June 28, 2026		June 29, 2025
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	32,181	$	28,831
Operating cash flows from finance leases	2,340		2,249
Financing cash flows from finance leases	3,250		3,286

ROU assets obtained in exchange for lease liabilities:
Operating leases	$	1,868	$	31,804
Finance leases	5,333		62