LEASES

12 Months Ended

Jan. 03, 2025

Leases [Abstract]

LEASES

NOTE 11: LEASES

Our operating and finance leases primarily consist of real estate leases for office space, warehouses,

manufacturing, R&D facilities, telecommunication tower space and land and equipment leases.

Lease Costs. Components of lease costs included in our Consolidated Statement of Operations are as follows:

	Fiscal Year Ended
(In millions)	January 3, 2025	December 29, 2023	December 30, 2022
Operating lease cost	$164	$163	$151
Short-term and equipment lease cost	31	23	21
Variable lease cost	26	26	25
Other, net(1)	18	11	6
Total lease cost	$239	$223	$203

______________

(1) Consists of finance lease amortization and interest costs as well as sublease income.

See “Leases” section in Note 1: Significant Accounting Policies in these Notes for the line items in our

Consolidated Statement of Operations where our lease costs are presented.

Balance Sheet Information. ROU assets and lease liabilities included in our Consolidated Balance Sheet are as

follows:

(In millions)	January 3, 2025		December 29, 2023
Operating Leases
Other non-current assets	$659		$743
Assets of business held for sale	25		20
Total operating lease assets	$684		$763
Other current liabilities	$143		$120
Other long-term liabilities	601		705
Liabilities of business held for sale	56		61
Total operating lease liabilities	$800	$800	$886
Finance Leases
Property, plant and equipment	$234		$243
Accumulated amortization	(36)		(25)
Property, plant and equipment, net	198		218
Assets of business held for sale	4		—
Total finance lease assets	$202		$218
Current portion of long-term debt, net	$31		$8
Long-term debt, net	203		243
Liabilities of business held for sale	4		—
Total finance lease liabilities	$238		$251

Supplemental Lease Information: Other supplemental lease information is as follows:

	Fiscal Year Ended
(In millions, except lease term and discount rate)	January 3, 2025	December 29, 2023
Cash paid for amounts included in the measurement of lease liabilities
Net cash provided by operating activities - operating lease payments	$182	$159
Assets obtained in exchange for new lease obligations
ROU assets obtained with operating leases	$96	$144
Property, plant and equipment obtained with finance leases	4	68
Weighted average remaining lease term (in years)
Operating leases	7.59	8.30
Finance leases	16.41	17.69
Weighted average discount rate
Operating leases	3.72%	3.86%
Finance leases	4.43%	4.32%

Maturities of non-cancelable operating and finance lease liabilities at January 3, 2025 were as follows:

(In millions)	Operating Leases	Finance Leases
2025	$159	$40
2026	134	18
2027	116	17
2028	110	19
2029	89	18
Thereafter	314	208
Total future lease payments required(1)	922	320
Less: imputed interest	122	82
Total	$800	$238

_______________

(1)On January 3, 2025, we had additional future payments on leases of $228 million that had not yet commenced. These leases will commence

between 2025 and 2026, and have lease terms of three to 15 years.

These commitments do not contain any material rent escalations, rent holidays, contingent rent, rent

concessions, leasehold improvement incentives or unusual provisions or conditions. We do not consider any

individual lease material to our operations.

LEASES

NOTE 11: LEASES

Our operating and finance leases primarily consist of real estate leases for office space, warehouses,

manufacturing, R&D facilities, telecommunication tower space and land and equipment leases.

Lease Costs. Components of lease costs included in our Consolidated Statement of Operations are as follows:

	Fiscal Year Ended
(In millions)	January 3, 2025	December 29, 2023	December 30, 2022
Operating lease cost	$164	$163	$151
Short-term and equipment lease cost	31	23	21
Variable lease cost	26	26	25
Other, net(1)	18	11	6
Total lease cost	$239	$223	$203

______________

(1) Consists of finance lease amortization and interest costs as well as sublease income.

See “Leases” section in Note 1: Significant Accounting Policies in these Notes for the line items in our

Consolidated Statement of Operations where our lease costs are presented.

Balance Sheet Information. ROU assets and lease liabilities included in our Consolidated Balance Sheet are as

follows:

(In millions)	January 3, 2025		December 29, 2023
Operating Leases
Other non-current assets	$659		$743
Assets of business held for sale	25		20
Total operating lease assets	$684		$763
Other current liabilities	$143		$120
Other long-term liabilities	601		705
Liabilities of business held for sale	56		61
Total operating lease liabilities	$800	$800	$886
Finance Leases
Property, plant and equipment	$234		$243
Accumulated amortization	(36)		(25)
Property, plant and equipment, net	198		218
Assets of business held for sale	4		—
Total finance lease assets	$202		$218
Current portion of long-term debt, net	$31		$8
Long-term debt, net	203		243
Liabilities of business held for sale	4		—
Total finance lease liabilities	$238		$251

Supplemental Lease Information: Other supplemental lease information is as follows:

	Fiscal Year Ended
(In millions, except lease term and discount rate)	January 3, 2025	December 29, 2023
Cash paid for amounts included in the measurement of lease liabilities
Net cash provided by operating activities - operating lease payments	$182	$159
Assets obtained in exchange for new lease obligations
ROU assets obtained with operating leases	$96	$144
Property, plant and equipment obtained with finance leases	4	68
Weighted average remaining lease term (in years)
Operating leases	7.59	8.30
Finance leases	16.41	17.69
Weighted average discount rate
Operating leases	3.72%	3.86%
Finance leases	4.43%	4.32%

Maturities of non-cancelable operating and finance lease liabilities at January 3, 2025 were as follows:

(In millions)	Operating Leases	Finance Leases
2025	$159	$40
2026	134	18
2027	116	17
2028	110	19
2029	89	18
Thereafter	314	208
Total future lease payments required(1)	922	320
Less: imputed interest	122	82
Total	$800	$238

_______________

(1)On January 3, 2025, we had additional future payments on leases of $228 million that had not yet commenced. These leases will commence

between 2025 and 2026, and have lease terms of three to 15 years.

These commitments do not contain any material rent escalations, rent holidays, contingent rent, rent

concessions, leasehold improvement incentives or unusual provisions or conditions. We do not consider any

individual lease material to our operations.