Leases

9 Months Ended

Sep. 27, 2020

Leases [Abstract]

Leases

Leases

Operating and finance lease assets relate to buildings (corporate offices, research and development and manufacturing facilities and datacenters), land, machinery and installations and other equipment (vehicles and certain office equipment). These leases, except for land leases, have remaining lease terms of 1 to 30 years (land leases 48 to 90 years), some of which may include options to extend the leases for up to 5 years, and some of which may include options to terminate the leases within 1 year. As of September 27, 2020, assets recorded under finance leases were $82 million and accumulated depreciation associated with finance leases was $12 million ($82 million and $9 million, respectively, as of December 31, 2019). Finance lease liabilities amount to $24 million as of September 27, 2020 ($25 million as of December 31, 2019).

The components of operating lease expense were as follows:

	For the three months ended		For the nine months ended
	September 27, 2020	September 29, 2019	September 27, 2020	September 29, 2019
Operating lease cost	16	15	48	41

Other information related to operating leases was as follows:

	For the three months ended		For the nine months ended
	September 27, 2020	September 29, 2019	September 27, 2020		September 29, 2019
Right-of-use assets obtained in exchange for lease obligations:
Operating leases 1)	10	62	29		260
1) $188 million recorded on January 1, 2019 in accordance with the adoption of ASC 842.
			For the nine months ended
			September 27, 2020		September 29, 2019
Weighted average remaining lease term:
Operating leases			6 years		6 years
Weighted average discount rate:
Operating leases			3	%	3	%

Future minimum lease payments as of September 27, 2020 were as follows:

	As of
	September 27, 2020
	Operating leases
2020 (remaining)	18
2021	57
2022	45
2023	37
2024	25
Thereafter	60
Total future minimum lease payments	242
Less: imputed interest	(19)
Total	223

Lease liabilities related to leases are split between current and non-current:

	Operating leases
	As of
	September 27, 2020	December 31, 2019
Other current liabilities	61	62
Other non-current liabilities	162	176
Total	223	238

Operating lease right-of-use assets are $215 million as of September 27, 2020 (December 31, 2019: $226 million) and are included in other non-current assets in the condensed consolidated balance sheet.