Leases

6 Months Ended

Jul. 04, 2026

The following table summarizes operating lease costs:


	Three Months Ended				Six Months Ended
(in millions)	July 4, 2026		June 28, 2025		July 4, 2026		June 28, 2025
Operating lease costs:
Selling, general and administrative expenses	$	24	$	19	$	47	$	39
Cost of goods sold	4		6		9		10
Total operating lease costs (1)	$	28	$	25	$	56	$	49

(1) Total operating lease costs include variable lease costs of $5 million and $10 million for the three and six months ended July 4, 2026, respectively, $4 million and $9 million for the three and six months ended June 28, 2025, respectively.

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


(in millions)	Financial Statement Line Item	July 4, 2026		December 31, 2025
Operating lease assets	Other assets	$	308	$	327
Operating lease liabilities - current	Accrued liabilities	$	59	$	57
Operating lease liabilities - non-current	Other liabilities	$	268	$	289

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


	Six Months Ended
(in millions)	July 4, 2026		June 28, 2025
Cash paid for operating lease liabilities	$	31	$	25
Non-cash activities: operating lease assets obtained in exchange for new operating lease liabilities	$	12	$	42

As of July 4, 2026, we have additional operating leases that have not yet commenced. The total undiscounted future lease payments for these leases were $59 million.