v3.26.1
Balance Sheet Information and Other Supplemental Disclosures
 6 Months Ended
Jul. 03, 2026
Balance Sheet Related Disclosures [Abstract]  
Balance Sheet Information and Other Supplemental Disclosures
Note 6: Balance Sheet Information and Other Supplemental Disclosures

Goodwill

Goodwill is tested for impairment annually on the first day of the fourth quarter or more frequently if events or changes in circumstances would more likely-than-not reduce the fair value of a reporting unit below its carrying value.

The following table summarizes goodwill by operating and reportable segments (in millions): 
PSGAMGISGTotal
Balances as of December 31, 2025 (1)
$703.9 $851.7 $124.3 $1,679.9 
Addition related to business acquisition— 7.7 — 7.7 
Balances as of July 3, 2026 (1)
$703.9 $859.4 $124.3 $1,687.6 

(1)Net of accumulated goodwill impairment losses of $31.9 million in the PSG reportable segment and $748.9 million in the AMG reportable segment as of July 3, 2026 and December 31, 2025.
Inventories

Details of inventories were as follows (in millions):
As of
July 3, 2026December 31, 2025
Inventories:
Raw materials$266.5 $263.6 
Work in process1,446.5 1,388.9 
Finished goods334.5 337.1 
Total$2,047.5 $1,989.6 

Defined Benefit Plans

The Company recognizes the aggregate amount of all over-funded plans as assets and the aggregate amount of all underfunded plans as liabilities in its financial statements. As of July 3, 2026, the net assets for the over-funded plans totaled $29.6 million. The total accrued pension liability for underfunded plans was $56.5 million, of which the current portion of $0.5 million was classified as Accrued expenses and other current liabilities. As of December 31, 2025, the net funded status for all the plans was a liability of $26.4 million, of which the current portion of $1.5 million was classified as Accrued expenses and other current liabilities.

The components of the net periodic pension expense were as follows (in millions):
Quarters EndedSix Months Ended
July 3, 2026July 4, 2025July 3, 2026July 4, 2025
Service cost$1.0 $1.1 $2.0 $2.2 
Interest cost1.4 1.4 2.8 2.7 
Expected return on plan assets(1.1)(1.2)(2.2)(2.4)
Curtailment losses— — — 1.5 
Total$1.3 $1.3 $2.6 $4.0 

Leases

Operating lease arrangements are comprised primarily of real estate and equipment agreements. The components of lease expense (including accelerated amortization related to ROU asset abandonment discussed in Note 5) were as follows (in millions):
Quarters EndedSix Months Ended
July 3, 2026July 4, 2025July 3, 2026July 4, 2025
Operating lease$10.9 $20.5 $49.7 $38.3 
Variable lease1.5 1.8 3.3 2.9 
Short-term lease0.4 0.7 0.8 1.5 
Total$12.8 $23.0 $53.8 $42.7 
The operating lease liabilities and operating ROU assets recognized in the Consolidated Balance Sheets were as follows (in millions):
As of
July 3, 2026December 31, 2025
Operating lease liabilities included in:
Accrued expenses and other current liabilities$24.0 $33.9 
Other long-term liabilities202.3 214.5 
Total$226.3 $248.4 
Operating ROU assets included in:
Other assets$161.1 $200.8 

As of July 3, 2026, the weighted-average remaining lease terms were 11.5 years and 17.3 years, and the weighted-average discount rates were 5.2% and 5.8%, for operating leases and financing leases, respectively.

Supplemental Disclosure of Cash Flow Information

Certain of the cash and non-cash activities were as follows (in millions):
Six Months Ended
July 3, 2026July 4, 2025
Non-cash investing activities:
Capital expenditures in accounts payable and other long-term liabilities$61.7 $111.6 
Operating ROU assets obtained in exchange for lease liabilities2.5 13.1 
Cash paid for:
Interest expense$18.6 $29.3 
Income taxes97.4 86.5 
Operating lease payments in operating cash flows21.1 34.8 

The following table shows a reconciliation of the captions in the Consolidated Balance Sheets to the Consolidated Statements of Cash Flows (in millions):
As of
July 3, 2026December 31, 2025July 4, 2025December 31, 2024
Consolidated Balance Sheets:
Cash and cash equivalents$3,514.5 $2,147.6 $2,526.7 $2,691.3 
Restricted cash (included in other current assets)1.4 1.4 2.9 2.1 
Cash, cash equivalents and restricted cash in Consolidated Statements of Cash Flows$3,515.9 $2,149.0 $2,529.6 $2,693.4