Leases

3 Months Ended

Mar. 29, 2025

The Company has operating leases for production, office and warehouse facilities, manufacturing and office equipment and vehicles. Operating lease assets and obligations included in the accompanying condensed consolidated balance sheets are shown below (in millions):


	March 29, 2025		December 31, 2024
Right-of-use assets under operating leases:
Other long-term assets	$	708.9	$	699.8
Lease obligations under operating leases:
Accrued liabilities	$	158.9	$	152.6
Other long-term liabilities	586.8		582.5
	$	745.7	$	735.1

Maturities of lease obligations as of March 29, 2025, are shown below (in millions):


	March 29, 2025
2025 (1)	$	139.6
2026	166.4
2027	140.2
2028	111.8
2029	81.1
Thereafter	197.5
Total undiscounted cash flows	836.6
Less: Imputed interest	(90.9)
Lease obligations under operating leases	$	745.7

(1) For the remaining nine months

In the first quarter of 2025, the Company entered into an operating lease with a lease term of ten years that is expected to commence in the second quarter of 2025. The right-of-use asset and related lease obligation are expected to be approximately $5.5 million.

Cash flow information related to operating leases is shown below (in millions):


	Three Months Ended
	March 29, 2025		March 30, 2024
Non-cash activity:
Right-of-use assets obtained in exchange for operating lease obligations	$	39.5	$	53.1
Operating cash flows:
Cash paid related to operating lease obligations	$	47.9	$	48.0

Lease expense included in the accompanying condensed consolidated statements of comprehensive income is shown below (in millions):


	Three Months Ended
	March 29, 2025		March 30, 2024
Operating lease expense	$	47.1	$	47.3
Short-term lease expense	5.2		5.6
Variable lease expense	1.7		2.1
Total lease expense	$	54.0	$	55.0

In the three months ended March 29, 2025, the Company recognized impairment charges of $0.1 million related to its right-of-use assets in conjunction with its restructuring actions (Note 2, "Restructuring"). In the three months ended March 30, 2024, the Company recognized impairment charges of $0.9 million related to its right-of-use assets. The impairment charges are included in cost of sales in the accompanying condensed consolidated statements of comprehensive income.

The weighted average lease term and discount rate for operating leases are shown below:


	March 29, 2025
Weighted average remaining lease term	Six years
Weighted average discount rate	3.9	%

The Company is party to finance lease agreements, which are not material to the accompanying condensed consolidated financial statements (Note 7, "Debt").

For further information related to the Company's leases, see Note 7, "Leases," to the consolidated financial statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2024.