Asset Retirement Obligations

12 Months Ended

Dec. 29, 2024

Asset Retirement Obligation Disclosure [Abstract]

Asset Retirement Obligations

The Company maintains reserves where a legal obligation exists to perform an asset retirement activity and the fair value of the liability can be reasonably estimated. These asset retirement obligations (AROs) include liabilities where the timing and (or) method of settlement may be conditional on a future event, that may or may not be within the control of the entity. At December 29, 2024, the Company had recognized AROs of $7.9 million related to landfill closures, decommissioning costs, facility leases and conditional AROs associated with manufacturing activities using what may be characterized as potentially hazardous materials.

Estimates of AROs are evaluated annually in the fourth quarter, or more frequently if material new information becomes known. Accounting for asset retirement obligations requires significant estimation and in certain cases, the Company has determined that an ARO exists, but the amount of the obligation is not reasonably estimable. The Company may determine that additional AROs are required to be recognized as new information becomes available.

Changes in asset retirement obligations for the years ended December 29, 2024 and December 31, 2023 were as follows:


	Fiscal Year
(In millions)	2024		2023
Balance at beginning of fiscal year	$	18.3	$	17.8
Accretion expense	0.5		0.7
Revision of estimates	(0.7)		—
Divestitures	(10.0)		—
Payments	(0.2)		(0.2)
Balance at end of fiscal year	$	7.9	$	18.3

During fiscal year 2024, the Company de-recognized $10.0 million of AROs in connection with the sale of its precision rolled strip operations (see Note 6 for further explanation).