Schedule of Components of Lease Expense |
The components of lease expense for the three months ended October 1, 2023 and October 2, 2022 were as follows: | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended | Lease expense | | Classification | | October 1, 2023 | | October 2, 2022 | Operating lease cost | | Cost of sales or SM&A (1) | | $ | 12,101 | | | $ | 11,812 | | Finance lease cost: | | | | | | | Amortization of ROU assets | | Depreciation and amortization (1) | | 1,849 | | | 1,539 | | Interest on lease liabilities | | Interest expense, net | | 1,095 | | | 1,030 | | Net lease cost (2) | | | | $ | 15,045 | | | $ | 14,381 | |
The components of lease expense for the nine months ended October 1, 2023 and October 2, 2022 were as follows: | | | | | | | | | | | | | | | | | | | | | | | | | Nine Months Ended | Lease expense | | Classification | | October 1, 2023 | | October 2, 2022 | Operating lease cost | | Cost of sales or SM&A (1) | | $ | 36,464 | | | $ | 37,309 | | Finance lease cost: | | | | | | | Amortization of ROU assets | | Depreciation and amortization (1) | | 5,545 | | | 4,989 | | Interest on lease liabilities | | Interest expense, net | | 3,287 | | | 3,083 | | Net lease cost (2) | | | | $ | 45,296 | | | $ | 45,381 | |
(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: | | | | | | | | | | | | | | | | | October 1, 2023 | | December 31, 2022 | Weighted-average remaining lease term (years) | | | | | Operating leases | | 14.5 | | 15.0 | Finance leases | | 27.3 | | 27.7 | | | | | | Weighted-average discount rate | | | | | Operating leases | | 3.5 | % | | 3.2 | % | Finance leases | | 6.2 | % | | 6.1 | % |
|
Schedule of Supplemental Balance Sheet Information |
Supplemental balance sheet information related to leases were as follows: | | | | | | | | | | | | | | | | | | | | | Leases | | Classification | | October 1, 2023 | | December 31, 2022 | Assets | | | | | | | Operating lease ROU assets | | Other non-current assets | | $ | 315,524 | | | $ | 326,472 | | | | | | | | | Finance lease ROU assets, at cost | | Property, plant and equipment, gross | | 86,129 | | | 86,703 | | Accumulated amortization | | Accumulated depreciation | | (18,570) | | | (14,543) | | Finance lease ROU assets, net | | Property, plant and equipment, net | | 67,559 | | | 72,160 | | | | | | | | | Total leased assets | | | | $ | 383,083 | | | $ | 398,632 | | | | | | | | | Liabilities | | | | | | | Current | | | | | | | Operating | | Accrued liabilities | | $ | 34,320 | | | $ | 31,787 | | Finance | | Current portion of long-term debt | | 4,659 | | | 4,285 | | Non-current | | | | | | | Operating | | Other long-term liabilities | | 283,967 | | | 294,849 | | Finance | | Long-term debt | | 68,037 | | | 69,194 | | Total lease liabilities | | | | $ | 390,983 | | | $ | 400,115 | | The components of certain asset accounts included within our Consolidated Balance Sheets are as follows: | | | | | | | | | | | | | | | | | | October 1, 2023 | | December 31, 2022 | | Inventories: | | | | | | Raw materials | | $ | 469,455 | | | $ | 372,612 | | | Goods in process | | 184,397 | | | 137,298 | | | Finished goods | | 969,620 | | | 855,217 | | | Inventories at First In First Out | | 1,623,472 | | | 1,365,127 | | | Adjustment to Last In First Out | | (275,652) | | | (192,008) | | | Total inventories | | $ | 1,347,820 | | | $ | 1,173,119 | | | | | | | | | Prepaid expenses and other: | | | | | | Prepaid expenses | | $ | 133,265 | | | $ | 143,888 | | | | | | | | | Other current assets | | 110,352 | | | 128,307 | | | Total prepaid expenses and other | | $ | 243,617 | | | $ | 272,195 | | | | | | | | | Property, plant and equipment: | | | | | | Land | | $ | 159,701 | | | $ | 155,963 | | | Buildings | | 1,618,136 | | | 1,545,053 | | | Machinery and equipment | | 3,836,925 | | | 3,592,251 | | | Construction in progress | | 618,631 | | | 416,220 | | | Property, plant and equipment, gross | | 6,233,393 | | | 5,709,487 | | | Accumulated depreciation | | (3,077,329) | | | (2,939,785) | | | Property, plant and equipment, net | | $ | 3,156,064 | | | $ | 2,769,702 | | | | | | | | | Other non-current assets: | | | | | | Pension | | $ | 42,754 | | | $ | 53,495 | | | Capitalized software, net | | 345,198 | | 320,034 | | | | | | | | | Operating lease ROU assets | | 315,524 | | | 326,472 | | | Investments in unconsolidated affiliates | | 126,325 | | | 133,029 | | | Other non-current assets | | 120,594 | | | 111,959 | | | Total other non-current assets | | $ | 950,395 | | | $ | 944,989 | | | | | | | | |
| | | | | | | | | | | | | | | | The components of certain liability and stockholders’ equity accounts included within our Consolidated Balance Sheets are as follows: | | | | October 1, 2023 | | December 31, 2022 | | Accounts payable: | | | | | | Accounts payable—trade | | $ | 675,389 | | | $ | 636,472 | | | Supplier finance program obligations | | 149,533 | | | 105,293 | | | Other | | 260,094 | | | 228,793 | | | Total accounts payable | | $ | 1,085,016 | | | $ | 970,558 | | | | | | | | | Accrued liabilities: | | | | | | Payroll, compensation and benefits | | $ | 245,975 | | | $ | 293,865 | | | Advertising, promotion and product allowances | | 384,872 | | | 337,024 | | | Operating lease liabilities | | 34,320 | | | 31,787 | | | | | | | | | Other | | 303,759 | | | 169,842 | | | Total accrued liabilities | | $ | 968,926 | | | $ | 832,518 | | | | | | | | | Other long-term liabilities: | | | | | | Post-retirement benefits liabilities | | $ | 77,995 | | | $ | 147,174 | | | Pension benefits liabilities | | 27,515 | | | 27,696 | | | Operating lease liabilities | | 283,967 | | | 294,849 | | | Other | | 252,324 | | | 250,023 | | | Total other long-term liabilities | | $ | 641,801 | | | $ | 719,742 | | | | | | | | | Accumulated other comprehensive loss: | | | | | | Foreign currency translation adjustments | | $ | (101,489) | | | $ | (110,364) | | | Pension and post-retirement benefit plans, net of tax | | (131,993) | | | (118,254) | | | Cash flow hedges, net of tax | | (17,165) | | | (23,715) | | | Total accumulated other comprehensive loss | | $ | (250,647) | | | $ | (252,333) | | |
|
Schedule of Maturity of Operating Lease Liabilities |
The maturity of our lease liabilities as of October 1, 2023 were as follows: | | | | | | | | | | | | | | | | | | | Operating leases | | Finance leases | | Total | 2023 (rest of year) | $ | 11,317 | | | $ | 2,300 | | | $ | 13,617 | | 2024 | 44,184 | | | 8,515 | | | 52,699 | | 2025 | 30,800 | | | 6,471 | | | 37,271 | | 2026 | 26,212 | | | 4,257 | | | 30,469 | | 2027 | 25,653 | | | 4,065 | | | 29,718 | | Thereafter | 267,948 | | | 142,022 | | | 409,970 | | Total lease payments | 406,114 | | | 167,630 | | | 573,744 | | Less: Imputed interest | 87,827 | | | 94,934 | | | 182,761 | | Total lease liabilities | $ | 318,287 | | | $ | 72,696 | | | $ | 390,983 | |
|
Schedule of Maturity of Finance Lease Liabilities |
The maturity of our lease liabilities as of October 1, 2023 were as follows: | | | | | | | | | | | | | | | | | | | Operating leases | | Finance leases | | Total | 2023 (rest of year) | $ | 11,317 | | | $ | 2,300 | | | $ | 13,617 | | 2024 | 44,184 | | | 8,515 | | | 52,699 | | 2025 | 30,800 | | | 6,471 | | | 37,271 | | 2026 | 26,212 | | | 4,257 | | | 30,469 | | 2027 | 25,653 | | | 4,065 | | | 29,718 | | Thereafter | 267,948 | | | 142,022 | | | 409,970 | | Total lease payments | 406,114 | | | 167,630 | | | 573,744 | | Less: Imputed interest | 87,827 | | | 94,934 | | | 182,761 | | Total lease liabilities | $ | 318,287 | | | $ | 72,696 | | | $ | 390,983 | |
|