The Company leases certain warehouses, equipment, vehicles, and office space primarily through operating lease agreements. The Company recorded lease costs of $18 million for the year ended December 28, 2024. Operating lease costs for the year-to-date period ended December 30, 2023 and December 31, 2022 were immaterial to the consolidated financial statements.


(millions)	Year ended December 28, 2024		Year ended December 30, 2023		Year ended December 31, 2022
Other information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	15	$	—	$	—
Right-of-use assets obtained in exchange for operating lease liabilities
New leases	$	106	$	19	$	—
Modified leases	$	—	$	—	$	—

Weighted-average remaining lease term - operating leases	5 years		3 years		n/a
Weighted-average discount rate - operating leases	6.0%		6.7%		—


(millions)	Operating leases
2025	$	23
2026	24
2027	23
2028	23
2029	19
2030 and beyond	19
Total minimum payments	$	131
Less interest	(18)
Present value of lease liabilities	$	113

Operating lease payments presented in the table above exclude $5 million of minimum lease payments for a real-estate lease signed but not yet commenced as of December 28, 2024. The lease is expected to commence in 2025.

During the year ended December 28, 2024, the Company entered into lease agreements with unrelated third parties for distribution centers previously leased by Kellanova. The leases were either transferred to the Company or subleased directly from Kellanova as outlined in the Separation and Distribution Agreement. Payments for these leases are made on a monthly basis. Prior to the execution of these leases, use of the distribution centers was

managed under the Transition Services Agreement. The new sublease agreements executed during 2024 resulted in an increase to operating lease assets and liabilities of $99 million.

In connection with the Spin-Off, the Company executed an agreement with Kellanova, in which Kellanova leases a portion of the Company's headquarters office building in Battle Creek, Michigan. The lease is scheduled to expire in 2035, with two optional extensions of five years each. A base rent amount, plus additional general operating expenses are to be paid to the Company on a monthly basis. The income received during 2024 related to this agreement was immaterial to the Consolidated Financial Statements.