v3.26.1
Leases
 6 Months Ended
Jun. 28, 2026
Leases [Abstract]  
Leases Leases
The Company routinely enters into leasing arrangements for real estate (including manufacturing facilities, office space, and warehouses), transportation equipment (automobiles, forklifts, and trailers), and office equipment (copiers and postage machines). The assessment of the certainty associated with the exercise of various lease renewal, termination, and purchase options included in the Company’s lease contracts is performed after contemplating all the relevant facts and circumstances in accordance with guidance under ASC 842, “Leases.” Most real estate leases, in particular, include one or more options to renew, with renewal terms that typically extend the lease term in increments from one to five years. The Company’s leases do not have any significant residual value guarantees or restrictive covenants.
As the implicit rate in the Company’s leases is normally not readily determinable, the Company generally calculates its lease liabilities using discount rates based upon the Company’s incremental secured borrowing rate, which contemplates and reflects a particular geographical region’s interest rate for the leases active within that region of the Company’s global operations. The Company further utilizes a portfolio approach by assigning a “short” rate to contracts with lease terms of 10 years or less and a “long” rate for contracts greater than 10 years.
The following table sets forth the balance sheet location and aggregate values of the Company’s lease assets and lease liabilities at June 28, 2026 and December 31, 2025:
ClassificationBalance Sheet LocationJune 28, 2026December 31, 2025
Lease Assets
Operating lease assetsRight of Use Asset-Operating Leases$302,699 $307,450 
Finance lease assetsOther Assets48,911 49,059 
Total lease assets$351,610 $356,509 
Lease Liabilities
Current operating lease liabilitiesAccrued expenses and other payables$53,170 $53,978 
Current finance lease liabilitiesNotes payable and current portion of long-term debt12,528 11,617 
Total current lease liabilities$65,698 $65,595 
Noncurrent operating lease liabilitiesNoncurrent Operating Lease Liabilities$259,244 $263,192 
Noncurrent finance lease liabilitiesLong-term Debt, Net of Current Portion41,044 41,925 
Total noncurrent lease liabilities$300,288 $305,117 
Total lease liabilities$365,986 $370,712 
Certain of the Company’s leases include variable costs. Variable costs include lease payments that were volume or usage-driven in accordance with the use of the underlying asset, and also non-lease components that were incurred based upon actual terms rather than contractually fixed amounts. In addition, variable costs are incurred for lease payments that are indexed to a change in rate or index. Because the right of use assets recorded on the balance sheet were determined based upon factors considered at the commencement date of the leases, subsequent changes in the rate or index that were not contemplated in the right of use asset balances recorded on the balance sheet for certain leases with rate or index-related terms result in variable expenses being incurred when paid during the lease term.
The following table sets forth the components of the Company’s total lease cost for the three- and six-month periods ended June 28, 2026 and June 29, 2025:
Three Months EndedSix Months Ended
Lease CostJune 28, 2026June 29, 2025June 28, 2026June 29, 2025
Operating lease cost(a)$14,667 $16,340 $29,811 $31,824 
Finance lease cost:
     Amortization of lease asset(a) (b)2,875 3,285 5,610 6,287 
     Interest on lease liabilities(c)630 793 1,242 1,493 
Variable lease cost(a) (d)11,475 11,269 23,232 23,691 
Impairment charges(e)— 545 — 1,178 
Total lease cost$29,647 $32,232 $59,895 $64,473 
(a) Production-related costs are included in “Cost of sales” and administrative costs are included in “Selling, general and administrative expenses” in the Condensed Consolidated Statements of Income.
(b) Included in depreciation and amortization.
(c) Included in “Interest expense” in the Condensed Consolidated Statements of Income.
(d) Also includes short term lease costs, which are deemed immaterial.
(e) Impairment charges are included in “Restructuring/Asset impairment charges, net” in the Company’s Condensed Consolidated Statements of Income. See Note 6 for additional information.
The following table sets forth certain lease-related information for the six-month periods ended June 28, 2026 and June 29, 2025:
Six Months Ended
June 28, 2026June 29, 2025
Cash paid for amounts included in the measurement of lease liabilities:
     Operating cash flows used by operating leases $28,783 $29,599 
     Operating cash flows used by finance leases1,242 1,493 
     Financing cash flows used by finance leases5,341 7,075 
Noncash investing and financing activities:
     Leased assets obtained in exchange for new operating lease liabilities14,531 15,305 
     Leased assets obtained in exchange for new finance lease liabilities6,142 13,903 
     Modification to leased assets for increase in operating lease liabilities7,271 10,090 
     Modification to leased assets for decrease in finance lease liabilities — (10,440)
     Termination reclasses to decrease operating lease assets410 7,651 
     Termination reclasses to decrease operating lease liabilities410 7,756 
     Termination reclasses to decrease finance lease assets419 82 
     Termination reclasses to decrease finance lease liabilities 419 84 
Leases Leases
The Company routinely enters into leasing arrangements for real estate (including manufacturing facilities, office space, and warehouses), transportation equipment (automobiles, forklifts, and trailers), and office equipment (copiers and postage machines). The assessment of the certainty associated with the exercise of various lease renewal, termination, and purchase options included in the Company’s lease contracts is performed after contemplating all the relevant facts and circumstances in accordance with guidance under ASC 842, “Leases.” Most real estate leases, in particular, include one or more options to renew, with renewal terms that typically extend the lease term in increments from one to five years. The Company’s leases do not have any significant residual value guarantees or restrictive covenants.
As the implicit rate in the Company’s leases is normally not readily determinable, the Company generally calculates its lease liabilities using discount rates based upon the Company’s incremental secured borrowing rate, which contemplates and reflects a particular geographical region’s interest rate for the leases active within that region of the Company’s global operations. The Company further utilizes a portfolio approach by assigning a “short” rate to contracts with lease terms of 10 years or less and a “long” rate for contracts greater than 10 years.
The following table sets forth the balance sheet location and aggregate values of the Company’s lease assets and lease liabilities at June 28, 2026 and December 31, 2025:
ClassificationBalance Sheet LocationJune 28, 2026December 31, 2025
Lease Assets
Operating lease assetsRight of Use Asset-Operating Leases$302,699 $307,450 
Finance lease assetsOther Assets48,911 49,059 
Total lease assets$351,610 $356,509 
Lease Liabilities
Current operating lease liabilitiesAccrued expenses and other payables$53,170 $53,978 
Current finance lease liabilitiesNotes payable and current portion of long-term debt12,528 11,617 
Total current lease liabilities$65,698 $65,595 
Noncurrent operating lease liabilitiesNoncurrent Operating Lease Liabilities$259,244 $263,192 
Noncurrent finance lease liabilitiesLong-term Debt, Net of Current Portion41,044 41,925 
Total noncurrent lease liabilities$300,288 $305,117 
Total lease liabilities$365,986 $370,712 
Certain of the Company’s leases include variable costs. Variable costs include lease payments that were volume or usage-driven in accordance with the use of the underlying asset, and also non-lease components that were incurred based upon actual terms rather than contractually fixed amounts. In addition, variable costs are incurred for lease payments that are indexed to a change in rate or index. Because the right of use assets recorded on the balance sheet were determined based upon factors considered at the commencement date of the leases, subsequent changes in the rate or index that were not contemplated in the right of use asset balances recorded on the balance sheet for certain leases with rate or index-related terms result in variable expenses being incurred when paid during the lease term.
The following table sets forth the components of the Company’s total lease cost for the three- and six-month periods ended June 28, 2026 and June 29, 2025:
Three Months EndedSix Months Ended
Lease CostJune 28, 2026June 29, 2025June 28, 2026June 29, 2025
Operating lease cost(a)$14,667 $16,340 $29,811 $31,824 
Finance lease cost:
     Amortization of lease asset(a) (b)2,875 3,285 5,610 6,287 
     Interest on lease liabilities(c)630 793 1,242 1,493 
Variable lease cost(a) (d)11,475 11,269 23,232 23,691 
Impairment charges(e)— 545 — 1,178 
Total lease cost$29,647 $32,232 $59,895 $64,473 
(a) Production-related costs are included in “Cost of sales” and administrative costs are included in “Selling, general and administrative expenses” in the Condensed Consolidated Statements of Income.
(b) Included in depreciation and amortization.
(c) Included in “Interest expense” in the Condensed Consolidated Statements of Income.
(d) Also includes short term lease costs, which are deemed immaterial.
(e) Impairment charges are included in “Restructuring/Asset impairment charges, net” in the Company’s Condensed Consolidated Statements of Income. See Note 6 for additional information.
The following table sets forth certain lease-related information for the six-month periods ended June 28, 2026 and June 29, 2025:
Six Months Ended
June 28, 2026June 29, 2025
Cash paid for amounts included in the measurement of lease liabilities:
     Operating cash flows used by operating leases $28,783 $29,599 
     Operating cash flows used by finance leases1,242 1,493 
     Financing cash flows used by finance leases5,341 7,075 
Noncash investing and financing activities:
     Leased assets obtained in exchange for new operating lease liabilities14,531 15,305 
     Leased assets obtained in exchange for new finance lease liabilities6,142 13,903 
     Modification to leased assets for increase in operating lease liabilities7,271 10,090 
     Modification to leased assets for decrease in finance lease liabilities — (10,440)
     Termination reclasses to decrease operating lease assets410 7,651 
     Termination reclasses to decrease operating lease liabilities410 7,756 
     Termination reclasses to decrease finance lease assets419 82 
     Termination reclasses to decrease finance lease liabilities 419 84