v3.25.2
Leases
 6 Months Ended
Jun. 28, 2025
Leases [Abstract]  
Leases Leases
We primarily lease certain manufacturing plants, offices, warehouses, training and service centers at various locations worldwide that are classified as either operating or finance leases. Our leases have remaining lease terms up to 26 years, which include options to extend the lease term for periods up to 20 years when it is reasonably certain the option will be exercised.
Operating lease cost totaled $18 million in both the second quarter of 2025 and 2024, and $36 million in both the first half of 2025 and 2024. Cash paid for operating leases approximated the lease cost and is classified in cash flows from operating activities. Noncash transactions related to operating leases totaled $3 million and $28 million in the first half of 2025 and 2024, respectively, reflecting new or modified leases and changes from the reassessment of lease options. In the first half of 2024, non-cash transactions also included the recognition of a $72 million asset and liability related to a new finance lease. Finance lease, variable and short-term lease costs were not significant.
Balance sheet and other information related to our leases is as follows:
(Dollars in millions)June 28,
2025		December 28,
2024
Operating leases:
Other assets$340$360
Other current liabilities5455
Other liabilities299316
Weighted-average remaining lease term (in years)9.510.0
Weighted-average discount rate4.85%4.84%
Finance leases:
Property, plant and equipment, less accumulated amortization
  of $11 million and $9 million, respectively
$96$95
Long-term debt, including current portion9997
Weighted-average remaining lease term (in years)6.55.9
Weighted-average discount rate6.65%6.72%
At June 28, 2025, maturities of our operating lease liabilities on an undiscounted basis totaled $36 million for the remainder of 2025, $61 million for 2026, $51 million for 2027, $46 million for 2028, $42 million for 2029 and $211 million thereafter.
Leases Leases
We primarily lease certain manufacturing plants, offices, warehouses, training and service centers at various locations worldwide that are classified as either operating or finance leases. Our leases have remaining lease terms up to 26 years, which include options to extend the lease term for periods up to 20 years when it is reasonably certain the option will be exercised.
Operating lease cost totaled $18 million in both the second quarter of 2025 and 2024, and $36 million in both the first half of 2025 and 2024. Cash paid for operating leases approximated the lease cost and is classified in cash flows from operating activities. Noncash transactions related to operating leases totaled $3 million and $28 million in the first half of 2025 and 2024, respectively, reflecting new or modified leases and changes from the reassessment of lease options. In the first half of 2024, non-cash transactions also included the recognition of a $72 million asset and liability related to a new finance lease. Finance lease, variable and short-term lease costs were not significant.
Balance sheet and other information related to our leases is as follows:
(Dollars in millions)June 28,
2025		December 28,
2024
Operating leases:
Other assets$340$360
Other current liabilities5455
Other liabilities299316
Weighted-average remaining lease term (in years)9.510.0
Weighted-average discount rate4.85%4.84%
Finance leases:
Property, plant and equipment, less accumulated amortization
  of $11 million and $9 million, respectively
$96$95
Long-term debt, including current portion9997
Weighted-average remaining lease term (in years)6.55.9
Weighted-average discount rate6.65%6.72%
At June 28, 2025, maturities of our operating lease liabilities on an undiscounted basis totaled $36 million for the remainder of 2025, $61 million for 2026, $51 million for 2027, $46 million for 2028, $42 million for 2029 and $211 million thereafter.