Leases (Notes)

9 Months Ended

Oct. 03, 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	October 3, 2026		December 31, 2025
Assets
Operating lease assets	Right-of-use assets - operating leases	$	63,277	$	66,445
Finance lease assets	Property and equipment, net	55,946		37,117
Total lease assets		$	119,223	$	103,562
Liabilities
Current operating lease liabilities	Other current liabilities	$	24,697	$	28,920
Non-current operating lease liabilities	Lease liabilities - operating leases	39,590		38,798
Total operating lease liabilities		64,287		67,718
Current portion of finance lease liabilities	Current portion of long-term debt and finance lease liabilities	12,951		9,466
Non-current finance lease liabilities	Lease liabilities - finance leases	43,893		28,299
Total finance lease liabilities		56,844		37,765
Total lease liabilities		$	121,131	$	105,483

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


		Three Months Ended				Nine Months Ended
	Condensed Consolidated Statements of Operations Classification	October 3, 2026		September 27, 2025		October 3, 2026		September 27, 2025
Operating lease cost	Operating expense	$	4,432	$	6,463	$	14,421	$	20,478
Operating lease cost	Selling expense	2,862		2,855		8,719		8,473
Operating lease cost	General and administrative expense	282		263		871		808
Finance lease cost:
Amortization of right-of-use assets	Depreciation and amortization	3,608		2,206		10,013		5,643
Interest expense on lease liabilities	Interest expense	720		359		1,976		820
Other lease cost (1)	Operating expense	3,623		3,375		9,797		9,787
Other lease cost (1)	Selling expense	562		351		1,824		1,392
Other lease cost (1)	General and administrative expense	34		10		120		31
Total lease cost		$	16,123	$	15,882	$	47,741	$	47,432

(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 October 3, 2026 were 3.6 years for operating leases and 4.8 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 October 3, 2026 were 4.81% for operating leases and 5.25% for finance leases.


Supplemental Cash Flow Information Related to Leases	Nine Months Ended
	October 3, 2026		September 27, 2025
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	(27,024)	$	(31,505)
Operating cash flows from finance leases	(1,975)		(820)
Financing cash flows from finance leases	(10,320)		(5,803)
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	22,980		12,474
Finance leases	29,408		20,050


Maturity Analysis of Lease Liabilities	As of October 3, 2026
	Operating Leases		Finance Leases
Remaining three months of 2026	$	7,984	$	4,134
2027	24,340		14,988
2028	15,378		13,959
2029	9,689		11,929
2030	5,317		7,869
2031	2,988		6,052
Thereafter	4,327		5,293
Total lease payments	70,023		64,224
Less interest	5,736		7,380
Total	$	64,287	$	56,844

Leases


	Condensed Consolidated Balance Sheet Classification	October 3, 2026		December 31, 2025
Assets
Operating lease assets	Right-of-use assets - operating leases	$	63,277	$	66,445
Finance lease assets	Property and equipment, net	55,946		37,117
Total lease assets		$	119,223	$	103,562
Liabilities
Current operating lease liabilities	Other current liabilities	$	24,697	$	28,920
Non-current operating lease liabilities	Lease liabilities - operating leases	39,590		38,798
Total operating lease liabilities		64,287		67,718
Current portion of finance lease liabilities	Current portion of long-term debt and finance lease liabilities	12,951		9,466
Non-current finance lease liabilities	Lease liabilities - finance leases	43,893		28,299
Total finance lease liabilities		56,844		37,765
Total lease liabilities		$	121,131	$	105,483

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


		Three Months Ended				Nine Months Ended
	Condensed Consolidated Statements of Operations Classification	October 3, 2026		September 27, 2025		October 3, 2026		September 27, 2025
Operating lease cost	Operating expense	$	4,432	$	6,463	$	14,421	$	20,478
Operating lease cost	Selling expense	2,862		2,855		8,719		8,473
Operating lease cost	General and administrative expense	282		263		871		808
Finance lease cost:
Amortization of right-of-use assets	Depreciation and amortization	3,608		2,206		10,013		5,643
Interest expense on lease liabilities	Interest expense	720		359		1,976		820
Other lease cost (1)	Operating expense	3,623		3,375		9,797		9,787
Other lease cost (1)	Selling expense	562		351		1,824		1,392
Other lease cost (1)	General and administrative expense	34		10		120		31
Total lease cost		$	16,123	$	15,882	$	47,741	$	47,432

(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 October 3, 2026 were 3.6 years for operating leases and 4.8 years for finance leases.


Supplemental Cash Flow Information Related to Leases	Nine Months Ended
	October 3, 2026		September 27, 2025
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	(27,024)	$	(31,505)
Operating cash flows from finance leases	(1,975)		(820)
Financing cash flows from finance leases	(10,320)		(5,803)
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	22,980		12,474
Finance leases	29,408		20,050


Maturity Analysis of Lease Liabilities	As of October 3, 2026
	Operating Leases		Finance Leases
Remaining three months of 2026	$	7,984	$	4,134
2027	24,340		14,988
2028	15,378		13,959
2029	9,689		11,929
2030	5,317		7,869
2031	2,988		6,052
Thereafter	4,327		5,293
Total lease payments	70,023		64,224
Less interest	5,736		7,380
Total	$	64,287	$	56,844