v3.26.1
Leases
6 Months Ended
Jul. 04, 2026
Leases [Abstract]  
Leases
9 Leases
As of July 4, 2026, the Company had lease agreements that expire at various dates through 2035, with a weighted-average remaining lease term of 9.5 years. Rental expense was $20 million and $10 million for the three months ended July 4, 2026, and June 28, 2025, respectively, and $31 million and $20 million six months ended July 4, 2026, and June 28, 2025, respectively. As of July 4, 2026, the weighted-average discount rate used to determine the present value of lease liabilities was 4.13%.
During the three and six months ended July 4, 2026, cash paid for amounts included in the measurement of lease liabilities in operating activities in the statement of cash flows was
 
$
20
 million, and $
31
 million, respectively. The Company recorded a $
6
 million and $
2
 million increase in
right-of-use
assets in exchange for new operating lease liabilities
for the three months ended July 4, 2026 and June 28, 2025. The Company recorded a $13 million and $5 million increase in right-of-use assets in exchange for new operating lease liabilities for the six months ended July 4, 2026 and June 28, 2025.
The Company’s
right-of-use
lease assets and lease liabilities included in the consolidated balance sheets are classified as follows (in millions):
 
    
Financial Statement
Classification
  
July 4,
    
December 31,
 
    
2026
    
2025
 
Assets:
        
Property operating lease assets
   Operating lease assets    $ 321      $ 44  
Automobile operating lease assets
   Operating lease assets      45        36  
     
 
 
    
 
 
 
Total lease assets
   Operating lease assets    $ 366      $ 81  
     
 
 
    
 
 
 
Liabilities:
        
Current operating lease liabilities
   Current operating lease liabilities    $ 51      $ 31  
Long-term operating lease liabilities
  
Long-term operating lease
liabilities
     317        53  
     
 
 
    
 
 
 
Total lease liabilities
  
Long-term operating lease
liabilities
   $ 368      $ 84  
     
 
 
    
 
 
 
 
 
The Company acquired Operating lease assets and Current operating lease liabilities with an estimated
fair value of $296 million, respectively. Refer to Note 4, “Acquisitions” for further details.
Undiscounted future minimum rents payable as of July 4, 2026 under
non-cancelable
leases with initial terms exceeding one year reconcile to lease liabilities included in the consolidated balance sheet as follows (in millions):
 
2026
   $ 40  
2027
     59  
2028
     50  
2029
     44  
2030
     37  
2031 and thereafter
     225  
  
 
 
 
Total future minimum lease payments
     454  
Less: amount of lease payments representing interest
     (86 )
 
  
 
 
 
Present value of future minimum lease payments
     368  
Less: current operating lease liabilities
     (51 )
 
  
 
 
 
Long-term operating lease liabilities
   $ 317