Leases

3 Months Ended

Mar. 29, 2026

The Company leases certain facilities, office space, vehicles and equipment. Lease assets and lease liabilities are recognized at the commencement of an arrangement where it is determined at inception that a lease exists. Lease assets represent the right to use an underlying asset for the lease term, and lease liabilities represent the obligation to make lease payments arising from the lease. These assets and liabilities are initially recognized based on the present value of lease payments over the lease term calculated using an incremental borrowing rate generally applicable to the location of the lease asset, unless the implicit rate is readily determinable. Lease assets also include any upfront lease payments made and exclude lease incentives. Lease terms include options to extend or terminate the lease when it is reasonably certain that those options will be exercised. The Company has operating lease arrangements with lease and non-lease components. The non-lease components in these arrangements are not significant when compared to the lease components. For all operating leases, the Company accounts for the lease and non-lease components as a single component.

Variable lease payments are generally expensed as incurred. Leases with an initial term of 12 months or less are not recorded on the balance sheet, and the expense for these short-term leases is recognized on a straight-line basis over the lease term.

The depreciable life of lease assets and leasehold improvements is limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise.

The components of lease expense were as follows (in millions):


	Three Months Ended
	March 29, 2026		March 30, 2025
Amortization of right of use assets - finance leases	$	1.9	$	0.8
Interest on lease liabilities - finance leases	1.8		0.8
Operating lease cost	3.9		3.6
Short-term lease cost	0.6		0.4

Sublease income	(0.1)		(0.1)
Total lease cost	$	8.1	$	5.5

The components of leases on the balance sheet were as follows (in millions):


	March 29, 2026		December 28, 2025
Operating leases:
Operating lease right-of-use assets	$	45.4	$	43.4
Current portion of operating lease liabilities	$	13.9	$	12.8
Operating lease liabilities, net of current portion	$	34.7	$	33.8
Finance leases:
Property, plant and equipment, net	$	118.1	$	86.2
Current portion of finance lease liabilities	$	4.8	$	3.4
Finance lease liabilities, net of current portion	$	132.0	$	95.8

Cash paid for amounts included in the measurement of lease liabilities was as follows (in millions):



	Three Months Ended
	March 29, 2026		March 30, 2025
Finance lease - cash paid for interest	$	1.8	$	0.8
Finance lease - financing cash flows	$	0.9	$	0.4
Operating lease - operating cash flows (fixed payments)	$	4.0	$	3.4

Other supplemental noncash information (in millions):


	Three Months Ended
		March 29, 2026			March 30, 2025
Operating lease liabilities arising from obtaining right-of-use assets		$	5.6		$	6.8
Finance lease liabilities arising from obtaining right-of-use assets		$	37.3		$	—

		March 29, 2026			March 30, 2025
Weighted-average remaining lease term (in years):
Operating leases		4.26			4.16
Finance leases		14.96			13.56

Weighted-average discount rate:
Operating leases		5.40		%	5.14		%
Finance leases		6.12		%	6.35		%

The maturity of lease liabilities is (in millions):


	Operating Leases		Finance Leases
2026 (1)	$	12.3	$	9.4
2027	14.4		13.2
2028	11.7		13.5
2029	7.3		13.8
2030	4.0		13.3
Thereafter	5.1		147.8
Total lease payments	54.8		211.0
Less: imputed interest	(6.2)		(74.2)
Total present value of lease liabilities	$	48.6	$	136.8
(1) Excludes the three months ended March 29, 2026.

Leases