v3.23.3
LEASES (Tables)
9 Months Ended
Oct. 01, 2023
Leases [Abstract]  
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 expenseClassificationOctober 1, 2023October 2, 2022
Operating lease costCost of sales or SM&A (1)$12,101 $11,812 
Finance lease cost:
Amortization of ROU assetsDepreciation and amortization (1)1,849 1,539 
Interest on lease liabilitiesInterest expense, net1,095 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 expenseClassificationOctober 1, 2023October 2, 2022
Operating lease costCost of sales or SM&A (1)$36,464 $37,309 
Finance lease cost:
Amortization of ROU assetsDepreciation and amortization (1)5,545 4,989 
Interest on lease liabilitiesInterest expense, net3,287 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, 2023December 31, 2022
Weighted-average remaining lease term (years)
Operating leases14.515.0
Finance leases27.327.7
Weighted-average discount rate
Operating leases3.5 %3.2 %
Finance leases6.2 %6.1 %
Schedule of Supplemental Balance Sheet Information Supplemental balance sheet information related to leases were as follows:
LeasesClassificationOctober 1, 2023December 31, 2022
Assets
Operating lease ROU assetsOther non-current assets$315,524 $326,472 
Finance lease ROU assets, at costProperty, plant and equipment, gross86,129 86,703 
Accumulated amortizationAccumulated depreciation(18,570)(14,543)
Finance lease ROU assets, netProperty, plant and equipment, net67,559 72,160 
Total leased assets$383,083 $398,632 
Liabilities
Current
OperatingAccrued liabilities$34,320 $31,787 
FinanceCurrent portion of long-term debt4,659 4,285 
Non-current
OperatingOther long-term liabilities283,967 294,849 
FinanceLong-term debt68,037 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, 2023December 31, 2022
Inventories:
Raw materials$469,455 $372,612 
Goods in process184,397 137,298 
Finished goods969,620 855,217 
Inventories at First In First Out1,623,472 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 assets110,352 128,307 
Total prepaid expenses and other$243,617 $272,195 
Property, plant and equipment:
Land$159,701 $155,963 
Buildings1,618,136 1,545,053 
Machinery and equipment3,836,925 3,592,251 
Construction in progress618,631 416,220 
Property, plant and equipment, gross6,233,393 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, net345,198320,034 
Operating lease ROU assets315,524 326,472 
Investments in unconsolidated affiliates126,325 133,029 
Other non-current assets120,594 111,959 
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, 2023December 31, 2022
Accounts payable:
Accounts payable—trade$675,389 $636,472 
Supplier finance program obligations149,533 105,293 
Other260,094 228,793 
Total accounts payable$1,085,016 $970,558 
Accrued liabilities:
Payroll, compensation and benefits$245,975 $293,865 
Advertising, promotion and product allowances384,872 337,024 
Operating lease liabilities34,320 31,787 
Other303,759 169,842 
Total accrued liabilities$968,926 $832,518 
Other long-term liabilities:
Post-retirement benefits liabilities$77,995 $147,174 
Pension benefits liabilities27,515 27,696 
Operating lease liabilities283,967 294,849 
Other252,324 250,023 
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 leasesFinance leasesTotal
2023 (rest of year)$11,317 $2,300 $13,617 
202444,184 8,515 52,699 
202530,800 6,471 37,271 
202626,212 4,257 30,469 
202725,653 4,065 29,718 
Thereafter267,948 142,022 409,970 
Total lease payments406,114 167,630 573,744 
Less: Imputed interest87,827 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 leasesFinance leasesTotal
2023 (rest of year)$11,317 $2,300 $13,617 
202444,184 8,515 52,699 
202530,800 6,471 37,271 
202626,212 4,257 30,469 
202725,653 4,065 29,718 
Thereafter267,948 142,022 409,970 
Total lease payments406,114 167,630 573,744 
Less: Imputed interest87,827 94,934 182,761 
Total lease liabilities$318,287 $72,696 $390,983 
Schedule of Supplemental Cash Flow Information Related To Leases Supplemental cash flow and other information related to leases were as follows:
Nine Months Ended
October 1, 2023October 2, 2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$33,872 $34,528 
Operating cash flows from finance leases3,287 3,083 
Financing cash flows from finance leases3,540 3,336 
ROU assets obtained in exchange for lease liabilities:
Operating leases$16,857 $6,629 
Finance leases993 4,192