Quarterly report [Sections 13 or 15(d)]

Leases

v3.26.1
Leases
 3 Months Ended
Apr. 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 Classification April 4, 2026 January 3, 2026
Assets:
Operating lease assets Right-of-use assets, net $ 71.3  $ 70.8 
Finance lease assets Right-of-use assets, net 2.1  2.6 
Total leased assets $ 73.4  $ 73.4 
Liabilities:
Current:
Operating Accrued expenses and other current liabilities $ 6.9  $ 6.3 
Financing Current maturities of long-term debt 0.8  0.9 
Noncurrent:
Operating
Other long-term liabilities
 $ 70.9  $ 70.9 
Financing Long-term debt 1.0  1.3 
Total lease liabilities $ 79.6  $ 79.4 

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

Three Months Ended
(dollar amounts in millions) April 4, 2026 March 29, 2025
Operating lease cost $ 3.1  $ 2.6 
Variable lease cost 0.2  0.1 
Short-term lease cost 0.3  0.1 
Finance lease cost:
Amortization of right-of-use assets 0.3  0.4 
Interest on lease liabilities —  0.1 
Total lease cost $ 3.9  $ 3.3 

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

April 4, 2026 January 3, 2026
Weighted Average Remaining Lease Term (in years)
Operating Leases 13.2 11.9
Finance Leases 2.4 2.5
Weighted Average Discount Rate
Operating Leases 7.2% 7.4%
Finance Leases 7.2% 7.2%

As of April 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 $ 9.6 
2027 11.7 
2028 11.3 
2029 10.2 
2030 8.7 
Thereafter 73.7 
Total future lease payments $ 125.2 
Less: imputed interest (47.4)
Present value of future lease payments $ 77.8 
As of April 4, 2026, future minimum repayments of finance leases were as follows:

(dollar amounts in millions)
2026 $ 0.7 
2027 0.8 
2028 0.4 
2029 0.1 
2030 — 
Thereafter — 
Total future lease payments $ 2.0 
Less: imputed interest (0.2)
Present value of future lease payments $ 1.8 
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 April 4, 2026 January 3, 2026
Assets:
Operating lease assets Right-of-use assets, net $ 71.3  $ 70.8 
Finance lease assets Right-of-use assets, net 2.1  2.6 
Total leased assets $ 73.4  $ 73.4 
Liabilities:
Current:
Operating Accrued expenses and other current liabilities $ 6.9  $ 6.3 
Financing Current maturities of long-term debt 0.8  0.9 
Noncurrent:
Operating
Other long-term liabilities
 $ 70.9  $ 70.9 
Financing Long-term debt 1.0  1.3 
Total lease liabilities $ 79.6  $ 79.4 

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

Three Months Ended
(dollar amounts in millions) April 4, 2026 March 29, 2025
Operating lease cost $ 3.1  $ 2.6 
Variable lease cost 0.2  0.1 
Short-term lease cost 0.3  0.1 
Finance lease cost:
Amortization of right-of-use assets 0.3  0.4 
Interest on lease liabilities —  0.1 
Total lease cost $ 3.9  $ 3.3 

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

April 4, 2026 January 3, 2026
Weighted Average Remaining Lease Term (in years)
Operating Leases 13.2 11.9
Finance Leases 2.4 2.5
Weighted Average Discount Rate
Operating Leases 7.2% 7.4%
Finance Leases 7.2% 7.2%

As of April 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 $ 9.6 
2027 11.7 
2028 11.3 
2029 10.2 
2030 8.7 
Thereafter 73.7 
Total future lease payments $ 125.2 
Less: imputed interest (47.4)
Present value of future lease payments $ 77.8 
As of April 4, 2026, future minimum repayments of finance leases were as follows:

(dollar amounts in millions)
2026 $ 0.7 
2027 0.8 
2028 0.4 
2029 0.1 
2030 — 
Thereafter — 
Total future lease payments $ 2.0 
Less: imputed interest (0.2)
Present value of future lease payments $ 1.8