LEASES AND OTHER COMMITMENTS

12 Months Ended

Dec. 31, 2022

Leases [Abstract]

Leases and other commitments

LEASES AND OTHER COMMITMENTS

The Company recorded operating lease costs of $136 million, $139 million and $135 million for the years ended December 31, 2022, January 1, 2022 and January 2, 2021, respectively. Lease related costs associated with variable rent, short-term leases, and sale-leaseback arrangements, as well as sublease income, are each immaterial.

(millions)	Year ended December 31, 2022		Year ended January 1, 2022		Year ended January 2, 2021
Other information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	125	$	138	$	141
Right-of-use assets obtained in exchange for operating lease liabilities
New leases	$	86	$	60	$	144
Modified leases	$	27	$	53	$	84
Weighted-average remaining lease term - operating leases	7 years		8 years
Weighted-average discount rate - operating leases	2.9%		2.7%

At December 31, 2022 future maturities of operating leases were as follows:

(millions)	Operating leases
2023	$	134
2024	113
2025	102
2026	78
2027	61
2028 and beyond	182
Total minimum payments	$	670
Less interest	(63)
Present value of lease liabilities	$	607

Operating lease payments presented in the table above exclude $81 million of minimum lease payments for real-estate leases signed but not yet commenced as of December 31, 2022. The leases are expected to commence in 2023.

At December 31, 2022, future minimum annual lease commitments under non-cancelable finance leases were immaterial.

The Company has provided various standard indemnifications in agreements to sell and purchase business assets and lease facilities over the past several years, related primarily to pre-existing tax, environmental, and employee benefit obligations. Certain of these indemnifications are limited by agreement in either amount and/or term and others are unlimited. The Company has also provided various “hold harmless” provisions within certain service type agreements. Because the Company is not currently aware of any actual exposures associated with these indemnifications, management is unable to estimate the maximum potential future payments to be made. At December 31, 2022, the Company had not recorded any liability related to these indemnifications.