Leases

6 Months Ended

Jul. 01, 2023

Leases [Abstract]

Leases

Leases

Total operating lease costs are as follows:

	Three Months Ended				Six Months Ended
(in millions)	July 1, 2023		July 2, 2022		July 1, 2023		July 2, 2022
Operating lease cost:
Cost of goods sold	$	5	$	7	$	10	$	10
Selling, general and administrative expenses	15		13		29		25
Total operating lease costs	$	20	$	20	$	39	$	35

Total operating lease costs include variable lease costs of $6 million and $12 million for the three and six months ended July 1, 2023, respectively. For the three and six months ended July 2, 2022, total operating lease costs include variable lease costs of $5 million and $9 million, respectively.

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

(in millions)	Financial Statement Line Item	July 1, 2023		December 31, 2022
Operating lease assets	Other assets	$	192	$	191
Operating lease liabilities - current	Accrued liabilities	$	38	$	37
Operating lease liabilities - non-current	Other liabilities	$	166	$	166

Supplemental cash flow information related to operating leases was as follows:

	Six Months Ended
(in millions)	July 1, 2023		July 2, 2022
Cash paid for operating lease liabilities	$	18	$	16
Non-cash activities: operating lease assets obtained in exchange for new operating lease liabilities	$	15	$	56