v3.26.1
Financing and Trade Receivables (Tables)
 6 Months Ended
Jul. 03, 2026
Credit Loss [Abstract]  
Schedule of Accounts, Notes, Loans and Financing Receivable
The components of financing receivables with payments due in less than twelve months that are presented in Accounts receivable, less allowance for credit losses on the Consolidated Condensed Balance Sheets were as follows:
($ in millions)July 3, 2026December 31, 2025
Gross current financing receivables:
PSAs$94.1 $97.6 
Franchisee Notes33.7 31.5 
Current financing receivables, gross127.8 129.1 
Allowance for credit losses:
PSAs10.3 10.5 
Franchisee Notes10.1 9.0 
Total allowance for credit losses20.4 19.5 
Net current financing receivables:
PSAs, net83.8 87.1 
Franchisee Notes, net23.6 22.5 
Total current financing receivables, net$107.4 $109.6 
The components of Long-term financing receivables, less allowance for credit losses, which consists of financing receivables with payments due beyond one year, were as follows:

($ in millions)July 3, 2026December 31, 2025
Gross long-term financing receivables:
PSAs$230.1 $241.3 
Franchisee Notes60.0 60.9 
Long-term financing receivables, gross290.1 302.2 
Allowance for credit losses:
PSAs24.8 26.6 
Franchisee Notes5.3 5.1 
Total allowance for credit losses30.1 31.7 
Net long-term financing receivables:
PSAs, net205.3 214.7 
Franchisee Notes, net54.7 55.8 
Total long-term financing receivables, net$260.0 $270.5 
Schedule of Amortized Cost Basis and Current Period Gross Write-Offs The amortized cost basis and current period gross write-offs of PSAs and Franchisee Notes by origination year as of and for the six months ended July 3, 2026, is as follows:
($ in millions)20262025202420232022PriorTotal
PSAs
Internal Risk Rating:
A$47.1 $57.6 $35.3 $17.0 $5.2 $0.8 $163.0 
B24.5 35.3 24.2 11.6 3.6 1.0 100.2 
C11.5 16.2 11.5 4.9 1.7 0.4 46.2 
D5.1 4.4 2.4 2.0 0.7 0.2 14.8 
Total PSAs$88.2 $113.5 $73.4 $35.5 $11.2 $2.4 $324.2 
Franchisee Notes
Active distributors$17.5 $19.2 $12.6 $7.8 $4.4 $6.4 $67.9 
Separated distributors— 0.9 2.9 6.2 5.0 10.8 25.8 
Total Franchisee Notes$17.5 $20.1 $15.5 $14.0 $9.4 $17.2 $93.7 
Current Period Gross Write-offs
PSAs$— $5.8 $8.3 $5.2 $1.9 $1.1 $22.3 
Franchisee Notes— — 0.5 0.4 1.1 0.9 2.9 
Total current period gross write-offs$— $5.8 $8.8 $5.6 $3.0 $2.0 $25.2 
Schedule of Past Due when a Contractual Payment
PSAs are considered past due when a contractual payment has not been made. If a customer is making payments on its account, interest will continue to accrue. The table below sets forth the aging of the Company’s PSA balances as of:
($ in millions)30-59 days past due60-90 days past dueGreater than 90 days past dueTotal past dueTotal not considered past dueTotalGreater than 90 days past due and accruing interest
July 3, 2026$2.8 $1.6 $6.7 $11.1 $313.1 $324.2 $6.7 
December 31, 20253.6 2.0 7.7 13.3 325.6 338.9 7.7 
Schedule of Allowance for Credit Loss
The following is a rollforward of the PSAs and Franchisee Notes components of the Company’s allowance for credit losses related to financing receivables as of:
July 3, 2026
($ in millions)PSAsFranchisee NotesTotal
Allowance for credit losses, beginning of year$37.1 $14.1 $51.2 
Provision for credit losses18.2 4.0 22.2 
Write-offs(22.3)(2.9)(25.2)
Recoveries of amounts previously charged off2.1 0.2 2.3 
Allowance for credit losses, end of period$35.1 $15.4 $50.5 
Schedule of Allowance for Credit Losses Related to Trade Accounts Receivables
The following is a rollforward of the allowance for credit losses related to the Company’s trade accounts receivables, excluding financing receivables, and the Company’s trade accounts receivable cost basis as of:

($ in millions)July 3, 2026
Cost basis of trade accounts receivable$455.9 
Allowance for credit losses balance, beginning of year14.1 
Provision for credit losses3.0 
Write-offs(3.4)
Sale of business(3.2)
Foreign currency and other(0.6)
Allowance for credit losses balance, end of period9.9 
Net trade accounts receivable balance$446.0