Annual report [Section 13 and 15(d), not S-K Item 405]

Leases

v3.25.4
Leases
 12 Months Ended
Jan. 03, 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 Classification January 3, 2026 December 28, 2024
Assets:
Operating lease assets Right-of-use assets, net $ 70.8  $ 56.3 
Finance lease assets Right-of-use assets, net 2.6  3.4 
Total leased assets $ 73.4  $ 59.7 
Liabilities:
Current:
Operating Accrued expenses and other current liabilities $ 6.3  $ 5.4 
Financing Current maturities of long-term debt 0.9  1.3 
Noncurrent:
Operating
Other long-term liabilities
 $ 70.9  $ 56.2 
Financing Long-term debt 1.3  2.1 
Total lease liabilities $ 79.4  $ 65.0 

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

Year Ended
(dollar amounts in millions) January 3, 2026 December 28, 2024 December 30, 2023
Operating lease cost $ 10.6  $ 10.1  $ 8.9 
Variable lease cost 0.7  0.9  0.7 
Short-term lease cost 1.1  1.7  0.9 
Finance lease cost:
Amortization of right-of-use assets 1.7  1.4  0.8 
Interest on lease liabilities 0.2  0.3  0.2 
Total lease cost $ 14.3  $ 14.4  $ 11.5 

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

January 3, 2026 December 28, 2024
Weighted Average Remaining Lease Term (in years)
Operating Leases 11.9 12.6
Finance Leases 2.5 2.9
Weighted Average Discount Rate
Operating Leases 7.4% 7.4%
Finance Leases 7.2% 7.9%
As of January 3, 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 $ 11.9 
2027 11.1 
2028 10.8 
2029 9.7 
2030 8.1 
Thereafter 73.8 
Total future lease payments $ 125.4 
Less: imputed interest (48.2)
Present value of future lease payments $ 77.2 

As of January 3, 2026, future minimum repayments of finance leases were as follows:

(dollar amounts in millions)
2026 $ 1.0 
2027 0.9 
2028 0.4 
2029 0.1 
2030 — 
Thereafter — 
Total future lease payments $ 2.4 
Less: imputed interest (0.2)
Present value of future lease payments $ 2.2 
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 Classification January 3, 2026 December 28, 2024
Assets:
Operating lease assets Right-of-use assets, net $ 70.8  $ 56.3 
Finance lease assets Right-of-use assets, net 2.6  3.4 
Total leased assets $ 73.4  $ 59.7 
Liabilities:
Current:
Operating Accrued expenses and other current liabilities $ 6.3  $ 5.4 
Financing Current maturities of long-term debt 0.9  1.3 
Noncurrent:
Operating
Other long-term liabilities
 $ 70.9  $ 56.2 
Financing Long-term debt 1.3  2.1 
Total lease liabilities $ 79.4  $ 65.0 

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

Year Ended
(dollar amounts in millions) January 3, 2026 December 28, 2024 December 30, 2023
Operating lease cost $ 10.6  $ 10.1  $ 8.9 
Variable lease cost 0.7  0.9  0.7 
Short-term lease cost 1.1  1.7  0.9 
Finance lease cost:
Amortization of right-of-use assets 1.7  1.4  0.8 
Interest on lease liabilities 0.2  0.3  0.2 
Total lease cost $ 14.3  $ 14.4  $ 11.5 

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

January 3, 2026 December 28, 2024
Weighted Average Remaining Lease Term (in years)
Operating Leases 11.9 12.6
Finance Leases 2.5 2.9
Weighted Average Discount Rate
Operating Leases 7.4% 7.4%
Finance Leases 7.2% 7.9%
As of January 3, 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 $ 11.9 
2027 11.1 
2028 10.8 
2029 9.7 
2030 8.1 
Thereafter 73.8 
Total future lease payments $ 125.4 
Less: imputed interest (48.2)
Present value of future lease payments $ 77.2 

As of January 3, 2026, future minimum repayments of finance leases were as follows:

(dollar amounts in millions)
2026 $ 1.0 
2027 0.9 
2028 0.4 
2029 0.1 
2030 — 
Thereafter — 
Total future lease payments $ 2.4 
Less: imputed interest (0.2)
Present value of future lease payments $ 2.2