Leases

6 Months Ended

Jul. 04, 2026

Operating lease expense recognized in Selling, general and administrative expenses was $19 million and $39 million for the three and six months ended July 4, 2026, respectively, and $16 million and $32 million for the three and six months ended June 28, 2025, respectively.

Total operating lease costs include variable lease costs of $4 million and $8 million for the three and six months ended July 4, 2026, respectively, and $4 million and $7 million for the three and six months ended June 28, 2025, respectively, recognized in Selling, general and administrative expenses.

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


(in millions)	July 4, 2026		December 31, 2025
Operating lease right-of-use assets	$	223	$	236
Current portion of operating lease liabilities	$	38	$	37
Non-current portion of operating lease liabilities	$	198	$	209

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	$	21	$	17
Non-cash activities: operating lease right-of-use assets obtained in exchange for new operating lease liabilities	$	11	$	21

As of July 4, 2026, we have additional operating leases that have not yet commenced, primarily related to ongoing real estate optimization. The total undiscounted future lease payments for these leases were $58 million.