Leases

3 Months Ended

Apr. 04, 2026

The following table summarizes operating lease costs:


	Three Months Ended
(in millions)	April 4, 2026		March 29, 2025
Operating lease costs:
Selling, general and administrative expenses	$	23	$	20
Cost of goods sold	5		4
Total operating lease costs (1)	$	28	$	24

(1) Total operating lease costs include variable lease costs of $5 million for the three months ended April 4, 2026 and March 29, 2025.

The following table summarizes the carrying amounts of our operating lease assets and liabilities:


(in millions)	Financial Statement Line Item	April 4, 2026		December 31, 2025
Operating lease assets	Other assets	$	315	$	327
Operating lease liabilities - current	Accrued liabilities	$	57	$	57
Operating lease liabilities - non-current	Other liabilities	$	276	$	289

The following table summarizes supplemental cash flow information related to operating leases:


	Three Months Ended
(in millions)	April 4, 2026		March 29, 2025
Cash paid for operating lease liabilities	$	18	$	12
Non-cash activities: operating lease assets obtained in exchange for new operating lease liabilities	$	2	$	4

As of April 4, 2026, we have additional operating leases that have not yet commenced. The total undiscounted future lease payments for these leases was $56 million.