v3.26.1
Leases
 6 Months Ended
Jul. 04, 2026
Leases [Abstract]  
Leases
5. Leases

We primarily lease certain office and manufacturing facilities, as well as vehicles, copiers, and other equipment. These leases generally have an original lease term between 1 year and 20 years, and some include multiple options to extend (generally in increments of 5 to 10 years). Lease agreements generally do not include material variable lease payments, residual value guarantees, or restrictive covenants.

The components of right-of-use assets and lease liabilities were as follows for the periods presented:

(dollar amounts in millions)Balance Sheet ClassificationJuly 4, 2026January 3, 2026
Assets:
Operating lease assetsRight-of-use assets, net$70.8 $70.8 
Finance lease assetsRight-of-use assets, net1.4 2.6 
Total leased assets$72.2 $73.4 
Liabilities:
Current:
OperatingAccrued expenses and other current liabilities$7.6 $6.3 
FinanceCurrent maturities of long-term debt0.6 0.9 
Noncurrent:
Operating
Other long-term liabilities
$69.8 $70.9 
FinanceLong-term debt0.6 1.3 
Total lease liabilities$78.6 $79.4 

The components of lease expense were as follows for the periods presented:

Three Months EndedSix Months Ended
(dollar amounts in millions)July 4, 2026June 28, 2025July 4, 2026June 28, 2025
Operating lease cost$3.3 $2.5 $6.4 $5.1 
Variable lease cost0.2 — 0.4 0.1 
Short-term lease cost0.5 — 0.8 0.1 
Finance lease cost:
Amortization of right-of-use assets0.3 0.8 0.6 1.2 
Interest on lease liabilities0.1 — 0.1 0.1 
Total lease cost$4.4 $3.3 $8.3 $6.6 
Other information related to leases was as follows for the periods presented:

July 4, 2026January 3, 2026
Weighted Average Remaining Lease Term (in years)
Operating Leases13.011.9
Finance Leases2.22.5
Weighted Average Discount Rate
Operating Leases7.2%7.4%
Finance Leases7.1%7.2%

As of July 4, 2026, future minimum lease payments under noncancellable operating leases with initial or remaining lease terms in excess of one year were as follows:

(dollar amounts in millions)
2026$6.5 
202712.1 
202811.6 
202910.5 
20308.9 
Thereafter73.9 
Total future lease payments$123.5 
Less: imputed interest(46.1)
Present value of future lease payments$77.4 

As of July 4, 2026, future minimum repayments of finance leases were as follows:

(dollar amounts in millions)
2026$0.3 
20270.6 
20280.3 
20290.1 
2030— 
Thereafter— 
Total future lease payments$1.3 
Less: imputed interest(0.1)
Present value of future lease payments$1.2 
Leases
5. Leases

We primarily lease certain office and manufacturing facilities, as well as vehicles, copiers, and other equipment. These leases generally have an original lease term between 1 year and 20 years, and some include multiple options to extend (generally in increments of 5 to 10 years). Lease agreements generally do not include material variable lease payments, residual value guarantees, or restrictive covenants.

The components of right-of-use assets and lease liabilities were as follows for the periods presented:

(dollar amounts in millions)Balance Sheet ClassificationJuly 4, 2026January 3, 2026
Assets:
Operating lease assetsRight-of-use assets, net$70.8 $70.8 
Finance lease assetsRight-of-use assets, net1.4 2.6 
Total leased assets$72.2 $73.4 
Liabilities:
Current:
OperatingAccrued expenses and other current liabilities$7.6 $6.3 
FinanceCurrent maturities of long-term debt0.6 0.9 
Noncurrent:
Operating
Other long-term liabilities
$69.8 $70.9 
FinanceLong-term debt0.6 1.3 
Total lease liabilities$78.6 $79.4 

The components of lease expense were as follows for the periods presented:

Three Months EndedSix Months Ended
(dollar amounts in millions)July 4, 2026June 28, 2025July 4, 2026June 28, 2025
Operating lease cost$3.3 $2.5 $6.4 $5.1 
Variable lease cost0.2 — 0.4 0.1 
Short-term lease cost0.5 — 0.8 0.1 
Finance lease cost:
Amortization of right-of-use assets0.3 0.8 0.6 1.2 
Interest on lease liabilities0.1 — 0.1 0.1 
Total lease cost$4.4 $3.3 $8.3 $6.6 
Other information related to leases was as follows for the periods presented:

July 4, 2026January 3, 2026
Weighted Average Remaining Lease Term (in years)
Operating Leases13.011.9
Finance Leases2.22.5
Weighted Average Discount Rate
Operating Leases7.2%7.4%
Finance Leases7.1%7.2%

As of July 4, 2026, future minimum lease payments under noncancellable operating leases with initial or remaining lease terms in excess of one year were as follows:

(dollar amounts in millions)
2026$6.5 
202712.1 
202811.6 
202910.5 
20308.9 
Thereafter73.9 
Total future lease payments$123.5 
Less: imputed interest(46.1)
Present value of future lease payments$77.4 

As of July 4, 2026, future minimum repayments of finance leases were as follows:

(dollar amounts in millions)
2026$0.3 
20270.6 
20280.3 
20290.1 
2030— 
Thereafter— 
Total future lease payments$1.3 
Less: imputed interest(0.1)
Present value of future lease payments$1.2