LEASESThe following is a summary of the Company’s lease cost.
| | | | | | | | | | | | | |
| Fiscal Year |
| (In millions) | 2025 | | 2024 | | |
| Operating lease cost | $ | 31.3 | | | $ | 32.0 | | | |
| Variable lease cost | 11.8 | | | 11.3 | | | |
| Short-term lease cost | 0.6 | | | 1.8 | | | |
| Sublease income | (8.9) | | | (6.7) | | | |
| Total lease cost | $ | 34.8 | | | $ | 38.4 | | | |
The following is a summary of the Company’s supplemental cash flow information related to leases.
| | | | | | | | | | | |
| Fiscal Year |
| (In millions) | 2025 | | 2024 |
| Cash paid for operating lease liabilities | $ | 42.8 | | | $ | 44.4 | |
| Operating lease assets obtained in exchange for lease liabilities | 16.7 | | | 16.2 | |
The weighted-average discount rate for operating leases as of January 3, 2026 was 5.7%. The weighted-average remaining lease term for operating leases as of January 3, 2026 was 6.6 years. Future undiscounted cash flows for operating leases for the fiscal periods subsequent to January 3, 2026 are as follows:
| | | | | |
| (In millions) | Operating Leases |
| 2026 | $ | 35.0 | |
| 2027 | 29.5 | |
| 2028 | 24.6 | |
| 2029 | 21.1 | |
| 2030 | 18.5 | |
| Thereafter | 40.2 | |
| Total future payments | 168.9 | |
| Less: imputed interest | 28.6 | |
| Recognized lease liability | $ | 140.3 | |
The Company did not enter into any real estate leases with commencement dates subsequent to January 3, 2026.
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.