v3.25.4
Leases
 12 Months Ended
Jan. 03, 2026
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 25 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 $73 million, $74 million and $69 million in 2025, 2024 and 2023, respectively. Cash paid for operating lease liabilities approximated the lease expense and is classified in cash flows from operating activities. Noncash transactions related to operating leases totaled $82 million, $49 million and $54 million in 2025, 2024 and 2023, respectively, reflecting the recognition of operating lease assets and liabilities for new or modified leases and changes from the reassessment of lease options. In 2024, non-cash transactions included the recognition of a $72 million asset and liability related to a new finance lease that matures in 2028. 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)January 3,
2026		December 28,
2024
Operating leases:
Other assets$390 $360 
Other current liabilities58 55 
Other liabilities346 316 
Weighted-average remaining lease term (in years)9.510.0
Weighted-average discount rate4.97%4.84%
Finance leases:
Property, plant and equipment, less accumulated amortization
  of $14 million and $9 million, respectively
$95 $95 
Long-term debt, including current portion100 97 
Weighted-average remaining lease term (in years)5.95.9
Weighted-average discount rate6.63%6.72%
At January 3, 2026, maturities of our operating lease liabilities on an undiscounted basis totaled $74 million for 2026, $65 million for 2027, $60 million for 2028, $55 million for 2029, $48 million for 2030 and $213 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 25 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 $73 million, $74 million and $69 million in 2025, 2024 and 2023, respectively. Cash paid for operating lease liabilities approximated the lease expense and is classified in cash flows from operating activities. Noncash transactions related to operating leases totaled $82 million, $49 million and $54 million in 2025, 2024 and 2023, respectively, reflecting the recognition of operating lease assets and liabilities for new or modified leases and changes from the reassessment of lease options. In 2024, non-cash transactions included the recognition of a $72 million asset and liability related to a new finance lease that matures in 2028. 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)January 3,
2026		December 28,
2024
Operating leases:
Other assets$390 $360 
Other current liabilities58 55 
Other liabilities346 316 
Weighted-average remaining lease term (in years)9.510.0
Weighted-average discount rate4.97%4.84%
Finance leases:
Property, plant and equipment, less accumulated amortization
  of $14 million and $9 million, respectively
$95 $95 
Long-term debt, including current portion100 97 
Weighted-average remaining lease term (in years)5.95.9
Weighted-average discount rate6.63%6.72%
At January 3, 2026, maturities of our operating lease liabilities on an undiscounted basis totaled $74 million for 2026, $65 million for 2027, $60 million for 2028, $55 million for 2029, $48 million for 2030 and $213 million thereafter.