Quarterly report [Sections 13 or 15(d)]

Leases

v3.26.3
Leases
 9 Months Ended
Oct. 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 October 3, 2026 January 3, 2026
Assets:
Operating lease assets Right-of-use assets, net $ 70.7  $ 70.8 
Finance lease assets Right-of-use assets, net 1.2  2.6 
Total leased assets $ 71.9  $ 73.4 
Liabilities:
Current:
Operating Accrued expenses and other current liabilities $ 7.6  $ 6.3 
Finance Current maturities of long-term debt 0.5  0.9 
Noncurrent:
Operating
Other long-term liabilities
 $ 69.8  $ 70.9 
Finance Long-term debt 0.6  1.3 
Total lease liabilities $ 78.5  $ 79.4 

The components of lease expense were as follows for the periods presented:
Three Months Ended Nine Months Ended
(dollar amounts in millions) October 3, 2026 September 27, 2025 October 3, 2026 September 27, 2025
Operating lease cost $ 3.4  $ 2.8  $ 9.8  $ 7.9 
Variable lease cost —  0.4  0.4  0.5 
Short-term lease cost 0.3  0.7  1.1  0.8 
Finance lease cost:
Amortization of right-of-use assets 0.1  0.1  0.7  1.3 
Interest on lease liabilities —  0.1  0.1  0.2 
Total lease cost $ 3.8  $ 4.1  $ 12.1  $ 10.7 

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

October 3, 2026 January 3, 2026
Weighted Average Remaining Lease Term (in years)
Operating Leases 12.7 11.9
Finance Leases 2.5 2.5
Weighted Average Discount Rate
Operating Leases 7.2% 7.4%
Finance Leases 6.7% 7.2%

As of October 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 $ 3.3 
2027 12.5 
2028 12.2 
2029 11.0 
2030 9.4 
Thereafter 74.1 
Total future lease payments $ 122.5 
Less: imputed interest (45.1)
Present value of future lease payments $ 77.4 

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

(dollar amounts in millions)
2026 $ 0.1 
2027 0.5 
2028 0.3 
2029 0.1 
2030 0.1 
Thereafter 0.1 
Total future lease payments $ 1.2 
Less: imputed interest (0.1)
Present value of future lease payments $ 1.1 

Sublease

During the three month period ended October 3, 2026, we entered into a sublease agreement for the entirety of our leased ASTA Houston manufacturing facility that covers the entirety of the original lease term through 2034. We remain the primary obligor under the original lease agreement and we classified the sublease agreement as an operating lease under ASC 842. Sublease income during the three and nine month periods ended October 3, 2026 was $0.1 and was recorded within cost of revenues in the Unaudited Condensed Consolidated Statement of Operations.
As of October 3, 2026, future minimum sublease income was as follows:

(dollar amounts in millions)
2026 $ 0.2 
2027 0.9 
2028 0.9 
2029 0.9 
2030 0.9 
Thereafter 3.2 
Total future minimum sublease income $ 7.0 
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 October 3, 2026 January 3, 2026
Assets:
Operating lease assets Right-of-use assets, net $ 70.7  $ 70.8 
Finance lease assets Right-of-use assets, net 1.2  2.6 
Total leased assets $ 71.9  $ 73.4 
Liabilities:
Current:
Operating Accrued expenses and other current liabilities $ 7.6  $ 6.3 
Finance Current maturities of long-term debt 0.5  0.9 
Noncurrent:
Operating
Other long-term liabilities
 $ 69.8  $ 70.9 
Finance Long-term debt 0.6  1.3 
Total lease liabilities $ 78.5  $ 79.4 

The components of lease expense were as follows for the periods presented:
Three Months Ended Nine Months Ended
(dollar amounts in millions) October 3, 2026 September 27, 2025 October 3, 2026 September 27, 2025
Operating lease cost $ 3.4  $ 2.8  $ 9.8  $ 7.9 
Variable lease cost —  0.4  0.4  0.5 
Short-term lease cost 0.3  0.7  1.1  0.8 
Finance lease cost:
Amortization of right-of-use assets 0.1  0.1  0.7  1.3 
Interest on lease liabilities —  0.1  0.1  0.2 
Total lease cost $ 3.8  $ 4.1  $ 12.1  $ 10.7 

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

October 3, 2026 January 3, 2026
Weighted Average Remaining Lease Term (in years)
Operating Leases 12.7 11.9
Finance Leases 2.5 2.5
Weighted Average Discount Rate
Operating Leases 7.2% 7.4%
Finance Leases 6.7% 7.2%

As of October 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 $ 3.3 
2027 12.5 
2028 12.2 
2029 11.0 
2030 9.4 
Thereafter 74.1 
Total future lease payments $ 122.5 
Less: imputed interest (45.1)
Present value of future lease payments $ 77.4 

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

(dollar amounts in millions)
2026 $ 0.1 
2027 0.5 
2028 0.3 
2029 0.1 
2030 0.1 
Thereafter 0.1 
Total future lease payments $ 1.2 
Less: imputed interest (0.1)
Present value of future lease payments $ 1.1 

Sublease

During the three month period ended October 3, 2026, we entered into a sublease agreement for the entirety of our leased ASTA Houston manufacturing facility that covers the entirety of the original lease term through 2034. We remain the primary obligor under the original lease agreement and we classified the sublease agreement as an operating lease under ASC 842. Sublease income during the three and nine month periods ended October 3, 2026 was $0.1 and was recorded within cost of revenues in the Unaudited Condensed Consolidated Statement of Operations.
As of October 3, 2026, future minimum sublease income was as follows:

(dollar amounts in millions)
2026 $ 0.2 
2027 0.9 
2028 0.9 
2029 0.9 
2030 0.9 
Thereafter 3.2 
Total future minimum sublease income $ 7.0