Leases (Notes)

6 Months Ended

Jul. 04, 2026

We lease certain office and parking facilities, warehouse space, equipment, vehicles and information technology equipment under operating and finance leases. Lease expense for these leases is recognized within the Condensed Consolidated Statements of Operations on a straight-line basis over the lease term, with variable lease payments recognized in the period those payments are incurred. The following table summarizes the amounts recognized in our Condensed Consolidated Balance Sheet related to leases:


	Condensed Consolidated Balance Sheet Classification	July 4, 2026		December 31, 2025
Assets
Operating lease assets	Right-of-use assets - operating leases	$	56,797	$	66,445
Finance lease assets	Property and equipment, net	56,480		37,117
Total lease assets		$	113,277	$	103,562
Liabilities
Current operating lease liabilities	Other current liabilities	$	24,963	$	28,920
Non-current operating lease liabilities	Lease liabilities - operating leases	33,112		38,798
Total operating lease liabilities		58,075		67,718
Current portion of finance lease liabilities	Current portion of long-term debt and finance lease liabilities	12,780		9,466
Non-current finance lease liabilities	Lease liabilities - finance leases	44,396		28,299
Total finance lease liabilities		57,176		37,765
Total lease liabilities		$	115,251	$	105,483

The components of lease cost recognized within our Condensed Consolidated Statements of Operations were as follows:


		Three Months Ended				Six Months Ended
	Condensed Consolidated Statements of Operations Classification	July 4, 2026		June 28, 2025		July 4, 2026		June 28, 2025
Operating lease cost	Operating expense	$	4,645	$	6,780	$	9,989	$	14,015
Operating lease cost	Selling expense	2,886		2,818		5,857		5,618
Operating lease cost	General and administrative expense	298		267		589		545
Finance lease cost:
Amortization of right-of-use assets	Depreciation and amortization	3,435		1,846		6,405		3,437
Interest expense on lease liabilities	Interest expense	692		260		1,256		461
Other lease cost (1)	Operating expense	3,193		3,309		6,174		6,412
Other lease cost (1)	Selling expense	620		496		1,262		1,041
Other lease cost (1)	General and administrative expense	34		8		86		21
Total lease cost		$	15,803	$	15,784	$	31,618	$	31,550

(1) Other lease cost includes short-term lease costs and variable lease costs.

We often have options to renew lease terms for buildings and other assets. The exercise of lease renewal options is generally at our sole discretion. In addition, certain lease agreements may be terminated prior to their original expiration date at our discretion. We evaluate each renewal and termination option at the lease commencement date to determine if we are reasonably certain to exercise the option on

the basis of economic factors. The weighted average remaining lease terms as of July 4, 2026 was 3.2 years for operating leases and 5.0 years for finance leases.

The discount rate implicit within our leases is generally not determinable, and therefore the Company determines the discount rate based on its incremental borrowing rate. The incremental borrowing rate for each lease is determined based on its term and the currency in which lease payments are made, adjusted for the impacts of collateral. The weighted average discount rates used to measure our lease liabilities as of July 4, 2026 were 4.24% for operating leases and 5.19% for finance leases.


Supplemental Cash Flow Information Related to Leases	Six Months Ended
	July 4, 2026		June 28, 2025
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	(18,221)	$	(21,318)
Operating cash flows from finance leases	(1,256)		(461)
Financing cash flows from finance leases	(6,775)		(3,507)
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	8,640		7,849
Finance leases	26,186		10,155


Maturity Analysis of Lease Liabilities	As of July 4, 2026
	Operating Leases		Finance Leases
Remaining six months of 2026	$	15,177	$	7,960
2027	21,120		14,245
2028	12,194		13,205
2029	6,806		11,141
2030	3,323		7,459
2031	1,288		5,828
Thereafter	2,109		4,942
Total lease payments	62,017		64,780
Less interest	3,942		7,604
Total	$	58,075	$	57,176

Leases


	Condensed Consolidated Balance Sheet Classification	July 4, 2026		December 31, 2025
Assets
Operating lease assets	Right-of-use assets - operating leases	$	56,797	$	66,445
Finance lease assets	Property and equipment, net	56,480		37,117
Total lease assets		$	113,277	$	103,562
Liabilities
Current operating lease liabilities	Other current liabilities	$	24,963	$	28,920
Non-current operating lease liabilities	Lease liabilities - operating leases	33,112		38,798
Total operating lease liabilities		58,075		67,718
Current portion of finance lease liabilities	Current portion of long-term debt and finance lease liabilities	12,780		9,466
Non-current finance lease liabilities	Lease liabilities - finance leases	44,396		28,299
Total finance lease liabilities		57,176		37,765
Total lease liabilities		$	115,251	$	105,483

The components of lease cost recognized within our Condensed Consolidated Statements of Operations were as follows:


		Three Months Ended				Six Months Ended
	Condensed Consolidated Statements of Operations Classification	July 4, 2026		June 28, 2025		July 4, 2026		June 28, 2025
Operating lease cost	Operating expense	$	4,645	$	6,780	$	9,989	$	14,015
Operating lease cost	Selling expense	2,886		2,818		5,857		5,618
Operating lease cost	General and administrative expense	298		267		589		545
Finance lease cost:
Amortization of right-of-use assets	Depreciation and amortization	3,435		1,846		6,405		3,437
Interest expense on lease liabilities	Interest expense	692		260		1,256		461
Other lease cost (1)	Operating expense	3,193		3,309		6,174		6,412
Other lease cost (1)	Selling expense	620		496		1,262		1,041
Other lease cost (1)	General and administrative expense	34		8		86		21
Total lease cost		$	15,803	$	15,784	$	31,618	$	31,550

(1) Other lease cost includes short-term lease costs and variable lease costs.

the basis of economic factors. The weighted average remaining lease terms as of July 4, 2026 was 3.2 years for operating leases and 5.0 years for finance leases.


Supplemental Cash Flow Information Related to Leases	Six Months Ended
	July 4, 2026		June 28, 2025
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	(18,221)	$	(21,318)
Operating cash flows from finance leases	(1,256)		(461)
Financing cash flows from finance leases	(6,775)		(3,507)
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	8,640		7,849
Finance leases	26,186		10,155


Maturity Analysis of Lease Liabilities	As of July 4, 2026
	Operating Leases		Finance Leases
Remaining six months of 2026	$	15,177	$	7,960
2027	21,120		14,245
2028	12,194		13,205
2029	6,806		11,141
2030	3,323		7,459
2031	1,288		5,828
Thereafter	2,109		4,942
Total lease payments	62,017		64,780
Less interest	3,942		7,604
Total	$	58,075	$	57,176