The Company leases certain warehouses, equipment, vehicles, and office space primarily through operating lease agreements. The Company recorded operating lease costs of $7 million and $3 million for the quarters ended March 29, 2025 and March 30, 2024, respectively.


	Quarter ended
(millions)	March 29, 2025		March 30, 2024

Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	7	$	2
Right-of-use assets obtained in exchange for operating lease liabilities
New leases	$	18	$	36
Modified leases	$	—	$	—


(millions)	Operating leases
2025 (remaining)	$	20
2026	29
2027	28
2028	22
2029	19
2030 and beyond	21
Total minimum payments	$	139
Less interest	(18)
Present value of lease liabilities	$	121

Weighted-average remaining lease term - operating leases	5.1 years
Weighted-average discount rate - operating leases	5.8%

During the first quarter of 2025, the Company entered into a lease agreement with an unrelated third party for a distribution center previously leased by Kellanova. The lease was subleased directly from Kellanova as outlined in the Separation and Distribution Agreement. Payments for this lease are made on a monthly basis. Prior to the execution of this lease, use of the distribution center was managed under the a transition services agreement that the Company entered into with Kellanova in connection with the Spin-Off (the "Transition Services Agreement").

The new sublease agreement executed in the first quarter of 2025 resulted in an increase to operating lease assets of $13 million, which is recorded within Operating lease assets on the Unaudited Consolidated Balance Sheet. This also resulted in an increase to operating lease liabilities of $13 million, of which $5 million is classified as short-term and included in Other current liabilities and $8 million is classified as Long-term operating lease obligations on the Unaudited Consolidated Balance Sheet.