Quarterly report [Sections 13 or 15(d)]

Leases

v3.26.1
Leases
 6 Months Ended
Jul. 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 July 4, 2026 January 3, 2026
Assets:
Operating lease assets Right-of-use assets, net $ 70.8  $ 70.8 
Finance lease assets Right-of-use assets, net 1.4  2.6 
Total leased assets $ 72.2  $ 73.4 
Liabilities:
Current:
Operating Accrued expenses and other current liabilities $ 7.6  $ 6.3 
Finance Current maturities of long-term debt 0.6  0.9 
Noncurrent:
Operating
Other long-term liabilities
 $ 69.8  $ 70.9 
Finance Long-term debt 0.6  1.3 
Total lease liabilities $ 78.6  $ 79.4 

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

Three Months Ended Six Months Ended
(dollar amounts in millions) July 4, 2026 June 28, 2025 July 4, 2026 June 28, 2025
Operating lease cost $ 3.3  $ 2.5  $ 6.4  $ 5.1 
Variable lease cost 0.2  —  0.4  0.1 
Short-term lease cost 0.5  —  0.8  0.1 
Finance lease cost:
Amortization of right-of-use assets 0.3  0.8  0.6  1.2 
Interest on lease liabilities 0.1  —  0.1  0.1 
Total lease cost $ 4.4  $ 3.3  $ 8.3  $ 6.6 
Other information related to leases was as follows for the periods presented:

July 4, 2026 January 3, 2026
Weighted Average Remaining Lease Term (in years)
Operating Leases 13.0 11.9
Finance Leases 2.2 2.5
Weighted Average Discount Rate
Operating Leases 7.2% 7.4%
Finance Leases 7.1% 7.2%

As of July 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 $ 6.5 
2027 12.1 
2028 11.6 
2029 10.5 
2030 8.9 
Thereafter 73.9 
Total future lease payments $ 123.5 
Less: imputed interest (46.1)
Present value of future lease payments $ 77.4 

As of July 4, 2026, future minimum repayments of finance leases were as follows:

(dollar amounts in millions)
2026 $ 0.3 
2027 0.6 
2028 0.3 
2029 0.1 
2030 — 
Thereafter — 
Total future lease payments $ 1.3 
Less: imputed interest (0.1)
Present value of future lease payments $ 1.2 
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 July 4, 2026 January 3, 2026
Assets:
Operating lease assets Right-of-use assets, net $ 70.8  $ 70.8 
Finance lease assets Right-of-use assets, net 1.4  2.6 
Total leased assets $ 72.2  $ 73.4 
Liabilities:
Current:
Operating Accrued expenses and other current liabilities $ 7.6  $ 6.3 
Finance Current maturities of long-term debt 0.6  0.9 
Noncurrent:
Operating
Other long-term liabilities
 $ 69.8  $ 70.9 
Finance Long-term debt 0.6  1.3 
Total lease liabilities $ 78.6  $ 79.4 

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

Three Months Ended Six Months Ended
(dollar amounts in millions) July 4, 2026 June 28, 2025 July 4, 2026 June 28, 2025
Operating lease cost $ 3.3  $ 2.5  $ 6.4  $ 5.1 
Variable lease cost 0.2  —  0.4  0.1 
Short-term lease cost 0.5  —  0.8  0.1 
Finance lease cost:
Amortization of right-of-use assets 0.3  0.8  0.6  1.2 
Interest on lease liabilities 0.1  —  0.1  0.1 
Total lease cost $ 4.4  $ 3.3  $ 8.3  $ 6.6 
Other information related to leases was as follows for the periods presented:

July 4, 2026 January 3, 2026
Weighted Average Remaining Lease Term (in years)
Operating Leases 13.0 11.9
Finance Leases 2.2 2.5
Weighted Average Discount Rate
Operating Leases 7.2% 7.4%
Finance Leases 7.1% 7.2%

As of July 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 $ 6.5 
2027 12.1 
2028 11.6 
2029 10.5 
2030 8.9 
Thereafter 73.9 
Total future lease payments $ 123.5 
Less: imputed interest (46.1)
Present value of future lease payments $ 77.4 

As of July 4, 2026, future minimum repayments of finance leases were as follows:

(dollar amounts in millions)
2026 $ 0.3 
2027 0.6 
2028 0.3 
2029 0.1 
2030 — 
Thereafter — 
Total future lease payments $ 1.3 
Less: imputed interest (0.1)
Present value of future lease payments $ 1.2