Leases
The components of lease expense were as follows (in millions):
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| Lease cost | | Classification | | For the year December 30, 2024 to December 28, 2025 | | For the year January 1, 2024 to December 29, 2024 | | For the year January 2, 2023 to December 31, 2023 |
| Finance lease cost: | | | | | | | | |
| Amortization of right-of-use assets | | Cost of goods sold | | $ | 0.7 | | | $ | 0.7 | | | $ | — | |
| Amortization of right-of-use assets | | Selling, general and administrative expenses | | 34.3 | | | 28.3 | | | 19.9 | |
| Interest on lease liabilities | | Interest and other non-operating expenses, net | | 9.2 | | | 7.1 | | | 4.0 | |
| Operating lease cost | | Cost of goods sold | | 8.9 | | | 8.0 | | | 8.2 | |
| Operating lease cost | | Selling, general and administrative expenses | | 110.2 | | | 109.5 | | | 87.7 | |
| Short-term lease cost | | Cost of goods sold | | 0.7 | | | 0.5 | | | — | |
| Short-term lease cost | | Selling, general and administrative expenses | | 5.0 | | | 4.2 | | | 3.3 | |
| Variable lease cost | | Selling, general and administrative expenses | | 1.7 | | | 2.7 | | | 1.9 | |
| Sublease income | | Selling, general and administrative expenses | | (1.1) | | | (1.0) | | | (0.9) | |
| Total lease cost | | | | $ | 169.6 | | | $ | 160.0 | | | $ | 124.1 | |
Supplemental cash flow information related to leases was as follows (in millions):
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| Other information | | For the year December 30, 2024 to December 28, 2025 | | For the year January 1, 2024 to December 29, 2024 | | For the year January 2, 2023 to December 31, 2023 |
| Cash paid for amounts included in the measurements of lease liabilities: | | | | | | |
| Operating cash flows from finance leases | | $ | 9.2 | | | $ | 7.1 | | | $ | 4.0 | |
| Operating cash flows from operating leases | | $ | 116.6 | | | $ | 109.2 | | | $ | 96.0 | |
| Financing cash flows from finance leases | | $ | 32.5 | | | $ | 26.7 | | | $ | 18.5 | |
| Right-of-use assets obtained in exchange for new lease liabilities: | | | | | | |
| Finance leases | | $ | 38.1 | | | $ | 61.3 | | | $ | 51.4 | |
| Operating leases | | $ | 117.9 | | | $ | 109.6 | | | $ | 114.8 | |
The aggregate future lease payments for operating and finance leases as of December 28, 2025 were as follows (in millions):
| | | | | | | | | | | | | | |
| Maturity of Lease Liabilities | | Operating Leases | | Finance Leases |
| Fiscal year: | | | | |
| 2026 | | $ | 109.2 | | | $ | 41.1 | |
| 2027 | | 105.0 | | | 37.3 | |
| 2028 | | 87.9 | | | 33.5 | |
| 2029 | | 71.9 | | | 25.3 | |
| 2030 | | 52.9 | | | 13.8 | |
| Thereafter | | 110.7 | | | 3.4 | |
| Total lease payments | | 537.6 | | | 154.4 | |
| Less: interest | | 77.8 | | | 19.6 | |
| Present value of lease liabilities | | $ | 459.8 | | | $ | 134.8 | |
The weighted-average lease terms and discount rates were as follows:
| | | | | | | | | | | | | | |
| Lease Term and Discount Rate | | December 28, 2025 | | December 29, 2024 |
| Weighted-average remaining lease term: | | | | |
| Finance leases | | 4.2 years | | 4.5 years |
| Operating leases | | 5.6 years | | 6.1 years |
| Weighted-average discount rate: | | | | |
| Finance leases | | 6.7 | % | | 6.5 | % |
| Operating leases | | 5.6 | % | | 5.5 | % |
About Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.