LEASES (Tables)

9 Months Ended

Sep. 29, 2024

The components of lease expense for the three months ended September 29, 2024 and October 1, 2023 were as follows:


		Three Months Ended
Lease expense	Classification	September 29, 2024		October 1, 2023
Operating lease cost	Cost of sales or SM&A (1)	$	13,678	$	12,101
Finance lease cost:
Amortization of ROU assets	Depreciation and amortization (1)	2,133		1,849
Interest on lease liabilities	Interest expense, net	1,140		1,095
Net lease cost (2)		$	16,951	$	15,045

The components of lease expense for the nine months ended September 29, 2024 and October 1, 2023 were as follows:


		Nine Months Ended
Lease expense	Classification	September 29, 2024		October 1, 2023
Operating lease cost	Cost of sales or SM&A (1)	$	39,159	$	36,464
Finance lease cost:
Amortization of ROU assets	Depreciation and amortization (1)	6,504		5,545
Interest on lease liabilities	Interest expense, net	3,489		3,287
Net lease cost (2)		$	49,152	$	45,296

(1)Supply chain-related amounts were included in cost of sales.

(2)Net lease cost does not include short-term leases, variable lease costs or sublease income, all of which are immaterial.

Information regarding our lease terms and discount rates were as follows:


	September 29, 2024		December 31, 2023
Weighted-average remaining lease term (years)
Operating leases	12.5		14.4
Finance leases	26.2		25.9

Weighted-average discount rate
Operating leases	3.8	%	3.5	%
Finance leases	6.3	%	6.2	%

Supplemental balance sheet information related to leases were as follows:


Leases	Classification	September 29, 2024		December 31, 2023
Assets
Operating lease ROU assets	Other non-current assets	$	347,576	$	307,976

Finance lease ROU assets, at cost	Property, plant and equipment, gross	87,182		89,335
Accumulated amortization	Accumulated depreciation	(24,027)		(19,472)
Finance lease ROU assets, net	Property, plant and equipment, net	63,155		69,863

Total leased assets		$	410,731	$	377,839

Liabilities
Current
Operating	Accrued liabilities	$	39,523	$	34,494
Finance	Current portion of long-term debt	5,576		5,900
Non-current
Operating	Other long-term liabilities	314,400		277,089
Finance	Long-term debt	67,814		70,485
Total lease liabilities		$	427,313	$	387,968

The components of certain asset accounts included within our Consolidated Balance Sheets are as follows:


	September 29, 2024		December 31, 2023
Inventories:
Raw materials	$	500,387	$	481,111
Goods in process	221,807		192,232
Finished goods	1,014,737		948,974
Inventories at First In First Out	1,736,931		1,622,317
Adjustment to Last In First Out	(434,975)		(281,321)
Total inventories	$	1,301,956	$	1,340,996

Prepaid expenses and other:
Prepaid expenses	$	114,971	$	227,567

Other current assets	377,412		118,021
Total prepaid expenses and other	$	492,383	$	345,588

Property, plant and equipment:
Land	$	182,678	$	180,751
Buildings	1,950,979		1,763,070
Machinery and equipment	3,989,788		3,861,006
Construction in progress	567,111		644,244
Property, plant and equipment, gross	6,690,556		6,449,071
Accumulated depreciation	(3,301,522)		(3,139,393)
Property, plant and equipment, net	$	3,389,034	$	3,309,678

Other non-current assets:
Pension	$	50,711	$	48,506
Capitalized software, net	369,079		360,205

Operating lease ROU assets	347,576		307,976
Investments in unconsolidated affiliates	207,855		207,177
Other non-current assets	153,808		137,563
Total other non-current assets	$	1,129,029	$	1,061,427


The components of certain liability and stockholders’ equity accounts included within our Consolidated Balance Sheets are as follows:
	September 29, 2024		December 31, 2023
Accounts payable:
Accounts payable—trade	$	774,135	$	630,536
Supplier finance program obligations	219,352		149,261
Other	221,077		306,386
Total accounts payable	$	1,214,564	$	1,086,183

Accrued liabilities:
Payroll, compensation and benefits	$	213,317	$	261,961
Advertising, promotion and product allowances	332,331		343,444
Operating lease liabilities	39,523		34,494

Other	222,221		227,916
Total accrued liabilities	$	807,392	$	867,815

Other long-term liabilities:
Post-retirement benefits liabilities	$	89,307	$	90,718
Pension benefits liabilities	27,066		28,949
Operating lease liabilities	314,400		277,089
Other	278,586		263,917
Total other long-term liabilities	$	709,359	$	660,673

Accumulated other comprehensive loss:
Foreign currency translation adjustments	$	(123,779)	$	(87,706)
Pension and post-retirement benefit plans, net of tax	(120,769)		(126,800)
Cash flow hedges, net of tax	(7,572)		(15,572)
Total accumulated other comprehensive loss	$	(252,120)	$	(230,078)

The maturities of our lease liabilities as of September 29, 2024 were as follows:

The maturities of our lease liabilities as of September 29, 2024 were as follows:

Supplemental cash flow and other information related to leases were as follows:


	Nine Months Ended
	September 29, 2024		October 1, 2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	36,293	$	33,872
Operating cash flows from finance leases	3,489		3,287
Financing cash flows from finance leases	4,543		3,540

ROU assets obtained in exchange for lease liabilities:
Operating leases	$	70,383	$	16,857
Finance leases	983		993