Quarterly report [Sections 13 or 15(d)]

Leases

v3.25.3
Leases
 9 Months Ended
Sep. 27, 2025
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 Classification September 27, 2025 December 28, 2024
Assets:
Operating lease assets Right-of-use assets, net $ 54.3  $ 56.3 
Finance lease assets Right-of-use assets, net 3.3  3.4 
Total leased assets $ 57.6  $ 59.7 
Liabilities:
Current:
Operating Accrued expenses and other current liabilities $ 6.0  $ 5.4 
Financing Current maturities of long-term debt 1.2  1.3 
Noncurrent:
Operating
Other long-term liabilities
 $ 54.1  $ 56.2 
Financing Long-term debt 1.8  2.1 
Total lease liabilities $ 63.1  $ 65.0 

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

Three Months Ended Nine Months Ended
(dollar amounts in millions) September 27, 2025 September 28, 2024 September 27, 2025 September 28, 2024
Operating lease cost $ 2.8  $ 2.6  $ 7.9  $ 7.5 
Variable lease cost 0.4  0.3  0.5  0.6 
Short-term lease cost 0.7  —  0.8  0.6 
Finance lease cost:
Amortization of right-of-use assets 0.1  0.4  1.3  1.0 
Interest on lease liabilities 0.1  0.1  0.2  0.2 
Total lease cost $ 4.1  $ 3.4  $ 10.7  $ 9.9 

Other information related to leases was as follows for the periods presented:

September 27, 2025 December 28, 2024
Weighted Average Remaining Lease Term (in years)
Operating Leases 12.0 12.6
Finance Leases 2.6 2.9
Weighted Average Discount Rate
Operating Leases 7.4% 7.4%
Finance Leases 7.3% 7.9%

As of September 27, 2025, 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)
2025 $ 2.6 
2026 10.5 
2027 9.4 
2028 9.1 
2029 8.0 
Thereafter 54.2 
Total future lease payments $ 93.8 
Less: imputed interest (33.7)
Present value of future lease payments $ 60.1 
As of September 27, 2025, future minimum repayments of finance leases were as follows:

(dollar amounts in millions)
2025 $ 0.4 
2026 1.2 
2027 1.0 
2028 0.5 
2029 0.2 
Thereafter — 
Total future lease payments $ 3.3 
Less: imputed interest (0.3)
Present value of future lease payments $ 3.0 
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 Classification September 27, 2025 December 28, 2024
Assets:
Operating lease assets Right-of-use assets, net $ 54.3  $ 56.3 
Finance lease assets Right-of-use assets, net 3.3  3.4 
Total leased assets $ 57.6  $ 59.7 
Liabilities:
Current:
Operating Accrued expenses and other current liabilities $ 6.0  $ 5.4 
Financing Current maturities of long-term debt 1.2  1.3 
Noncurrent:
Operating
Other long-term liabilities
 $ 54.1  $ 56.2 
Financing Long-term debt 1.8  2.1 
Total lease liabilities $ 63.1  $ 65.0 

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

Three Months Ended Nine Months Ended
(dollar amounts in millions) September 27, 2025 September 28, 2024 September 27, 2025 September 28, 2024
Operating lease cost $ 2.8  $ 2.6  $ 7.9  $ 7.5 
Variable lease cost 0.4  0.3  0.5  0.6 
Short-term lease cost 0.7  —  0.8  0.6 
Finance lease cost:
Amortization of right-of-use assets 0.1  0.4  1.3  1.0 
Interest on lease liabilities 0.1  0.1  0.2  0.2 
Total lease cost $ 4.1  $ 3.4  $ 10.7  $ 9.9 

Other information related to leases was as follows for the periods presented:

September 27, 2025 December 28, 2024
Weighted Average Remaining Lease Term (in years)
Operating Leases 12.0 12.6
Finance Leases 2.6 2.9
Weighted Average Discount Rate
Operating Leases 7.4% 7.4%
Finance Leases 7.3% 7.9%

As of September 27, 2025, 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)
2025 $ 2.6 
2026 10.5 
2027 9.4 
2028 9.1 
2029 8.0 
Thereafter 54.2 
Total future lease payments $ 93.8 
Less: imputed interest (33.7)
Present value of future lease payments $ 60.1 
As of September 27, 2025, future minimum repayments of finance leases were as follows:

(dollar amounts in millions)
2025 $ 0.4 
2026 1.2 
2027 1.0 
2028 0.5 
2029 0.2 
Thereafter — 
Total future lease payments $ 3.3 
Less: imputed interest (0.3)
Present value of future lease payments $ 3.0