The Company has operating leases for production, office and warehouse facilities, manufacturing and office equipment and vehicles. Operating lease assets and obligations included in the accompanying condensed consolidated balance sheets are shown below (in millions):


	July 4, 2026		December 31, 2025
Right-of-use assets under operating leases:
Other long-term assets	$	732.2	$	722.4
Lease obligations under operating leases:
Accrued liabilities	$	172.5	$	169.4
Other long-term liabilities	597.0		594.9
	$	769.5	$	764.3


	July 4, 2026
2026 (1)	$	103.0
2027	187.7
2028	152.9
2029	112.4
2030	89.5
Thereafter	230.2
Total undiscounted cash flows	875.7
Less: Imputed interest	(106.2)
Lease obligations under operating leases	$	769.5

In the second quarter of 2026, the Company entered into an operating lease with a lease term of ten years that is expected to commence in the second quarter of 2027. The right-of-use asset and related lease obligation are expected to be approximately $46 million.

In 2025, the Company entered into an operating lease with a lease term of fifteen years that is expected to commence in the fourth quarter of 2026. The right-of-use asset and related lease obligation are expected to be approximately $11 million.

Cash flow information related to operating leases is shown below (in millions):


	Six Months Ended
	July 4, 2026		June 28, 2025
Non-cash activity:
Right-of-use assets obtained in exchange for operating lease obligations	$	104.8	$	69.6
Operating cash flows:
Cash paid related to operating lease obligations	$	102.2	$	96.9

Lease expense included in the accompanying condensed consolidated statements of comprehensive income is shown below (in millions):


	Three Months Ended				Six Months Ended
	July 4, 2026		June 28, 2025		July 4, 2026		June 28, 2025
Operating lease expense	$	51.5	$	48.6	$	100.7	$	95.7
Short-term lease expense	6.3		5.3		12.4		10.5
Variable lease expense	2.6		1.6		5.4		3.3
Total lease expense	$	60.4	$	55.5	$	118.5	$	109.5

The Company incurred usage-based employee transportation costs of $11.4 million and $10.7 million in the three months ended July 4, 2026 and June 28, 2025, respectively, and $21.5 million and $21.0 million in the six months ended July 4, 2026 and June 28, 2025, respectively.

In the six months ended June 28, 2025, the Company recognized impairment charges of $0.1 million related to its right-of-use assets in conjunction with its restructuring actions (Note 2, "Restructuring"). The impairment charges are included in cost of sales in the accompanying condensed consolidated statement of comprehensive income.

The weighted average lease term and discount rate for operating leases are shown below:


	July 4, 2026
Weighted average remaining lease term	Six years
Weighted average discount rate	4.0	%

The Company is party to finance lease agreements, which are not material to the accompanying condensed consolidated financial statements (Note 7, "Debt").

For further information related to the Company's leases, see Note 6, "Leases," to the consolidated financial statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2025.