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Leases (Tables)

6 Months Ended

Jun. 29, 2019

The following table presents the location of the ROU assets and lease liabilities in the Company’s Consolidated Balance Sheet at June 29, 2019:



Leases	Consolidated Balance Sheet Location	June 29, 2019
Assets
Operating	Other assets	$	106
Financing	Property and equipment-net⁽¹⁾	348
Total leased assets		$	454

Liabilities
Current:
Operating	Accrued expenses and other current liabilities⁽²⁾	$	27
Financing	Current portion of long-term debt	82
Noncurrent:
Operating	Other long-term liabilities⁽²⁾	105
Financing	Long-term debt	282
Total lease liabilities		$	496


(1)	Financing lease assets are recorded net of accumulated amortization of $238 million as of June 29, 2019.


(2)	Operating lease liabilities include current and noncurrent liabilities of $3 million and $15 million, respectively, related to an unfunded lease obligation on a distribution facility through 2023.

The following table presents the location of lease costs in the Company's Consolidated Statement of Comprehensive Income:



		13 Weeks Ended		26 Weeks Ended
Lease Cost	Statement of Comprehensive Income Location	June 29, 2019		June 29, 2019
Operating lease cost	Distribution, selling and administrative costs	$	7	$	14
Financing lease cost:
Amortization of leased assets	Distribution, selling and administrative costs	22		39
Interest on lease liabilities	Interest expense-net	3		6
Variable lease cost⁽¹⁾	Distribution, selling and administrative costs	2		3
Net lease cost		$	34	$	62

(1)

Includes short-term leases and sub-lease income, each of which are immaterial.

Other information related to lease agreements for the 26 weeks ended June 29, 2019 was as follows:



	26 Weeks Ended
Cash Paid For Amounts Included In Measurement of Liabilities	June 29, 2019
Operating cash flows from operating leases	$	6
Operating cash flows from financing leases	3
Financing cash flows from financing leases	21



Lease Term and Discount Rate	June 29, 2019
Weighted-average remaining lease term (years):
Operating leases	5.87
Financing leases	5.61
Weighted-average discount rate:
Operating leases	4.6	%
Financing leases	3.6	%

Schedule of Future Operating Lease Payments

Future lease payments under lease agreements as of June 29, 2019 were as follows:



Maturity of Lease Liabilities	Operating Leases⁽¹⁾			Financing Leases			Total
Remainder of 2019	$	19		$	41		$	60
2020	36			102			138
2021	29			80			109
2022	27			57			84
2023	24			54			78
2024	4			38			42
After 2024	13			23			36
Total lease payments	152			395			547
Less amount representing interest	(19		)	(32		)	(51		)
Present value of lease liabilities	$	133		$	363		$	496

(1)

Operating lease payments include $21 million in payments, $18 million net of interest, on an unfunded lease obligation on a distribution facility through 2023.

Schedule of Future Finance Lease Payments

Future lease payments under lease agreements as of June 29, 2019 were as follows:



Maturity of Lease Liabilities	Operating Leases⁽¹⁾			Financing Leases			Total
Remainder of 2019	$	19		$	41		$	60
2020	36			102			138
2021	29			80			109
2022	27			57			84
2023	24			54			78
2024	4			38			42
After 2024	13			23			36
Total lease payments	152			395			547
Less amount representing interest	(19		)	(32		)	(51		)
Present value of lease liabilities	$	133		$	363		$	496

(1)

Operating lease payments include $21 million in payments, $18 million net of interest, on an unfunded lease obligation on a distribution facility through 2023.

Schedule of Future Operating Lease Payments Prior to 842

Future minimum lease payments in effect as of December 29, 2018 under noncancelable lease arrangements, as determined prior to the adoption of Topic 842, were as follows:



Future Minimum Lease Payments⁽¹⁾	Operating Leases⁽²⁾			Financing Leases			Total
2019	$	34		$	95		$	129
2020	34			84			118
2021	30			71			101
2022	27			54			81
2023	23			43			66
After 2023	7			38			45
Total lease payments	155			385			540
Less amount representing interest	(4		)	(33		)	(37		)
Present value of minimum lease payments	$	151		$	352		$	503


(1)	Information in this table has been conformed to the current year presentation under Topic 842.

(2)

Operating lease payments include $24 million in payments, $20 million net of interest, on an unfunded lease obligation on a distribution facility through 2023.

Schedule of Future Capital Lease Payments Prior to 842

Future minimum lease payments in effect as of December 29, 2018 under noncancelable lease arrangements, as determined prior to the adoption of Topic 842, were as follows:



Future Minimum Lease Payments⁽¹⁾	Operating Leases⁽²⁾			Financing Leases			Total
2019	$	34		$	95		$	129
2020	34			84			118
2021	30			71			101
2022	27			54			81
2023	23			43			66
After 2023	7			38			45
Total lease payments	155			385			540
Less amount representing interest	(4		)	(33		)	(37		)
Present value of minimum lease payments	$	151		$	352		$	503


(1)	Information in this table has been conformed to the current year presentation under Topic 842.

(2)

Operating lease payments include $24 million in payments, $20 million net of interest, on an unfunded lease obligation on a distribution facility through 2023.