LEASES AND OTHER COMMITMENTS

12 Months Ended

Dec. 28, 2024

LEASES AND OTHER COMMITMENTS

The Company recorded operating lease costs of $124 million, $137 million and $132 million for the years ended December 28, 2024, December 30, 2023 and December 31, 2022, 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 28, 2024		Year ended December 30, 2023		Year ended December 31, 2022
Other information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	125	$	138	$	121
Right-of-use assets obtained in exchange for operating lease liabilities
New leases	$	82	$	89	$	84
Modified leases	$	27	$	74	$	27

Weighted-average remaining lease term - operating leases	7 years		7 years
Weighted-average discount rate - operating leases	3.4%		3.6%

At December 28, 2024 future maturities of operating leases were as follows:


(millions)	Operating leases
2025	$	154
2026	119
2027	93
2028	67
2029	57
2030 and beyond	194
Total minimum payments	$	684
Less interest	(85)
Present value of lease liabilities	$	599

Operating lease payments presented in the table above exclude $4 million of minimum lease payments for real-estate leases signed but not yet commenced as of December 28, 2024. The leases are expected to commence in 2025.

At December 28, 2024, 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 28, 2024, the Company had not recorded any liability related to these indemnifications.