XML 28 R15.htm IDEA: XBRL DOCUMENT
v3.26.1

Leases | 6 Months Ended
--- | ---
Jun. 28, 2026
Leases [Abstract] |
Leases | Leases The Company determines if an arrangement is a lease at inception of a contract. The Company leases equipment and real estate including office space, branch locations, and distribution centers under operating leases. Most leases include one or more options to renew, with renewal terms that can extend the lease term from one year to five years or more. The exercises of lease renewal options are at the Company’s sole discretion. Finance lease obligations consist primarily of the Company’s vehicle fleet. Certain leases include options to purchase the leased property. ROU assets represent the Company’s right to use an underlying asset during the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. ROU assets and liabilities are recognized at the commencement date based on the net present value of fixed lease payments over the lease term. As most of the Company’s operating leases do not provide an implicit interest rate, the Company uses an incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. Finance lease agreements generally include an interest rate that is used to determine the present value of future lease payments. Variable lease payment amounts that cannot be determined at the commencement of the lease such as increases in lease payments based on changes in index rates or usage, are not included in the ROU assets or lease liabilities and are expensed as incurred and recorded as variable lease expense. Leases with an initial term of 12 months or less are not recorded in the Consolidated Balance Sheets. The components of lease expense were as follows (in millions):
|  |  |  | Three Months Ended |  | Six Months Ended
Lease Cost |  | Classification |  | June 28, 2026 |  | June 29, 2025 |  | June 28, 2026 |  | June 29, 2025
Finance lease cost: |  |  |  |  |  |  |  |  |  |
Amortization of right-of-use assets |  | Cost of goods sold |  | $ | 0.3 |  |  | $ | 0.1 |  |  | $ | 0.5 |  |  | $ | 0.3 |
Amortization of right-of-use assets |  | Selling, general and administrative expenses |  | 9.1 |  |  | 8.6 |  |  | 17.9 |  |  | 16.7 |
Interest on lease liabilities |  | Interest and other non-operating expenses, net |  | 2.3 |  |  | 2.4 |  |  | 4.5 |  |  | 4.6 |
Operating lease cost |  | Cost of goods sold |  | 3.3 |  |  | 2.1 |  |  | 6.2 |  |  | 4.1 |
Operating lease cost |  | Selling, general and administrative expenses |  | 28.5 |  |  | 27.0 |  |  | 56.2 |  |  | 52.1 |
Short-term lease cost |  | Cost of goods sold |  | 0.3 |  |  | 0.2 |  |  | 0.6 |  |  | 0.3 |
Short-term lease cost |  | Selling, general and administrative expenses |  | 1.2 |  |  | 0.7 |  |  | 2.4 |  |  | 2.0 |
Variable lease cost |  | Selling, general and administrative expenses |  | 0.3 |  |  | 0.3 |  |  | 0.6 |  |  | 0.8 |
Sublease income |  | Selling, general and administrative expenses |  | (0.4) |  |  | (0.3) |  |  | (0.7) |  |  | (0.5) |
Total lease cost |  |  |  | $ | 44.9 |  |  | $ | 41.1 |  |  | $ | 88.2 |  |  | $ | 80.4 |
Supplemental cash flow information related to leases was as follows (in millions):
|  |  | Six Months Ended
Other Information |  |  |  |  | June 28, 2026 |  | June 29, 2025
Cash paid for amounts included in the measurements of lease liabilities: |  |  |  |  |  |  |
Operating cash flows from finance leases |  |  |  |  | $ | 4.5 |  |  | $ | 4.6 |
Operating cash flows from operating leases |  |  |  |  | $ | 62.5 |  |  | $ | 58.2 |
Financing cash flows from finance leases |  |  |  |  | $ | 17.5 |  |  | $ | 15.8 |
Right-of-use assets obtained in exchange for new lease liabilities: |  |  |  |  |  |  |
Finance leases |  |  |  |  | $ | 20.7 |  |  | $ | 26.1 |
Operating leases |  |  |  |  | $ | 67.8 |  |  | $ | 44.1 |
The aggregate future lease payments for operating and finance leases as of June 28, 2026 were as follows (in millions):
Maturity of Lease Liabilities |  | Operating Leases |  | Finance Leases
Fiscal year: |  |  |  |
2026 (remainder) |  | $ | 54.0 |  |  | $ | 21.9 |
2027 |  | 118.5 |  |  | 41.4 |
2028 |  | 101.9 |  |  | 37.5 |
2029 |  | 83.5 |  |  | 29.4 |
2030 |  | 63.8 |  |  | 17.9 |
2031 |  | 46.4 |  |  | 7.1 |
Thereafter |  | 101.4 |  |  | 1.2 |
Total lease payments |  | 569.5 |  |  | 156.4 |
Less: interest |  | 84.4 |  |  | 19.1 |
Present value of lease liabilities |  | $ | 485.1 |  |  | $ | 137.3 |
The weighted-average lease terms and discount rates were as follows:
Lease Term and Discount Rate |  | June 28, 2026 |  | June 29, 2025
Weighted-average remaining lease term: |  |  |  |
Finance leases |  | 4.1 years |  | 4.5 years
Operating leases |  | 5.7 years |  | 5.9 years
Weighted-average discount rate: |  |  |  |
Finance leases |  | 6.8 | % |  | 6.7 | %
Operating leases |  | 5.6 | % |  | 5.5 | %
Leases | Leases The Company determines if an arrangement is a lease at inception of a contract. The Company leases equipment and real estate including office space, branch locations, and distribution centers under operating leases. Most leases include one or more options to renew, with renewal terms that can extend the lease term from one year to five years or more. The exercises of lease renewal options are at the Company’s sole discretion. Finance lease obligations consist primarily of the Company’s vehicle fleet. Certain leases include options to purchase the leased property. ROU assets represent the Company’s right to use an underlying asset during the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. ROU assets and liabilities are recognized at the commencement date based on the net present value of fixed lease payments over the lease term. As most of the Company’s operating leases do not provide an implicit interest rate, the Company uses an incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. Finance lease agreements generally include an interest rate that is used to determine the present value of future lease payments. Variable lease payment amounts that cannot be determined at the commencement of the lease such as increases in lease payments based on changes in index rates or usage, are not included in the ROU assets or lease liabilities and are expensed as incurred and recorded as variable lease expense. Leases with an initial term of 12 months or less are not recorded in the Consolidated Balance Sheets. The components of lease expense were as follows (in millions):
|  |  |  | Three Months Ended |  | Six Months Ended
Lease Cost |  | Classification |  | June 28, 2026 |  | June 29, 2025 |  | June 28, 2026 |  | June 29, 2025
Finance lease cost: |  |  |  |  |  |  |  |  |  |
Amortization of right-of-use assets |  | Cost of goods sold |  | $ | 0.3 |  |  | $ | 0.1 |  |  | $ | 0.5 |  |  | $ | 0.3 |
Amortization of right-of-use assets |  | Selling, general and administrative expenses |  | 9.1 |  |  | 8.6 |  |  | 17.9 |  |  | 16.7 |
Interest on lease liabilities |  | Interest and other non-operating expenses, net |  | 2.3 |  |  | 2.4 |  |  | 4.5 |  |  | 4.6 |
Operating lease cost |  | Cost of goods sold |  | 3.3 |  |  | 2.1 |  |  | 6.2 |  |  | 4.1 |
Operating lease cost |  | Selling, general and administrative expenses |  | 28.5 |  |  | 27.0 |  |  | 56.2 |  |  | 52.1 |
Short-term lease cost |  | Cost of goods sold |  | 0.3 |  |  | 0.2 |  |  | 0.6 |  |  | 0.3 |
Short-term lease cost |  | Selling, general and administrative expenses |  | 1.2 |  |  | 0.7 |  |  | 2.4 |  |  | 2.0 |
Variable lease cost |  | Selling, general and administrative expenses |  | 0.3 |  |  | 0.3 |  |  | 0.6 |  |  | 0.8 |
Sublease income |  | Selling, general and administrative expenses |  | (0.4) |  |  | (0.3) |  |  | (0.7) |  |  | (0.5) |
Total lease cost |  |  |  | $ | 44.9 |  |  | $ | 41.1 |  |  | $ | 88.2 |  |  | $ | 80.4 |
Supplemental cash flow information related to leases was as follows (in millions):
|  |  | Six Months Ended
Other Information |  |  |  |  | June 28, 2026 |  | June 29, 2025
Cash paid for amounts included in the measurements of lease liabilities: |  |  |  |  |  |  |
Operating cash flows from finance leases |  |  |  |  | $ | 4.5 |  |  | $ | 4.6 |
Operating cash flows from operating leases |  |  |  |  | $ | 62.5 |  |  | $ | 58.2 |
Financing cash flows from finance leases |  |  |  |  | $ | 17.5 |  |  | $ | 15.8 |
Right-of-use assets obtained in exchange for new lease liabilities: |  |  |  |  |  |  |
Finance leases |  |  |  |  | $ | 20.7 |  |  | $ | 26.1 |
Operating leases |  |  |  |  | $ | 67.8 |  |  | $ | 44.1 |
The aggregate future lease payments for operating and finance leases as of June 28, 2026 were as follows (in millions):
Maturity of Lease Liabilities |  | Operating Leases |  | Finance Leases
Fiscal year: |  |  |  |
2026 (remainder) |  | $ | 54.0 |  |  | $ | 21.9 |
2027 |  | 118.5 |  |  | 41.4 |
2028 |  | 101.9 |  |  | 37.5 |
2029 |  | 83.5 |  |  | 29.4 |
2030 |  | 63.8 |  |  | 17.9 |
2031 |  | 46.4 |  |  | 7.1 |
Thereafter |  | 101.4 |  |  | 1.2 |
Total lease payments |  | 569.5 |  |  | 156.4 |
Less: interest |  | 84.4 |  |  | 19.1 |
Present value of lease liabilities |  | $ | 485.1 |  |  | $ | 137.3 |
The weighted-average lease terms and discount rates were as follows:
Lease Term and Discount Rate |  | June 28, 2026 |  | June 29, 2025
Weighted-average remaining lease term: |  |  |  |
Finance leases |  | 4.1 years |  | 4.5 years
Operating leases |  | 5.7 years |  | 5.9 years
Weighted-average discount rate: |  |  |  |
Finance leases |  | 6.8 | % |  | 6.7 | %
Operating leases |  | 5.6 | % |  | 5.5 | %

X
- References No definition available. + Details
Name: | us-gaap_LeasesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for finance leases of lessee. Includes, but is not limited to, description of lessee's finance lease and maturity analysis of finance lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/842-20/tableOfContent + Details
Name: | us-gaap_LesseeFinanceLeasesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/842-20/tableOfContent + Details
Name: | us-gaap_LesseeOperatingLeasesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration