The Company is party to operating leases for the majority of its manufacturing sites, offices, engineering and lab sites, stocking locations, warehouses, automobiles, and certain equipment. Certain of the Company’s real estate leases include variable rental payments which adjust periodically based on inflation, and certain automobile lease agreements include rental payments which fluctuate based on mileage. Generally, the Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants.

The Company’s operating lease costs for the three and nine months ended September 26, 2020 and September 28, 2019 consisted of the following:

	Three Months Ended				Nine Months Ended
	September 26,		September 28,		September 26,		September 28,
	2020		2019		2020		2019
Cost of goods sold	$	5	$	4	$	13	$	12
Selling, general & administrative		13		10		33		27
Total operating lease costs	$	18	$	14	$	46	$	39

Total operating lease costs include variable lease costs of $5 million and $12 million, respectively, for the three and nine months ended September 26, 2020. For the three and nine months ended September 28, 2019, total operating lease costs included variable lease costs of $3 million and $8 million, respectively. Total operating lease costs also include offsetting sublease income which is immaterial for the three and nine months ended September 26, 2020 and September 28, 2019.

	Financial Statement Line Item	At September 26, 2020		At December 31, 2019
Operating right-of-use assets	Other assets	$	134	$	137
Operating lease liabilities - current	Accrued liabilities	$	33	$	31
Operating lease liabilities - noncurrent	Other liabilities	$	109	$	111

	At September 26, 2020
2020	$	10
2021		39
2022		35
2023		28
2024		16
Thereafter		39
Total lease payments		167
Less: imputed interest		25
Present value of operating lease liabilities	$	142
Weighted-average remaining lease term (years)		5.44
Weighted-average incremental borrowing rate		6.00	%

Supplemental cash flow information related to the Company’s operating leases was as follows:

	Nine Months Ended
	September 26,		September 28,
	2020		2019
Operating cash outflows	$	22	$	28
Operating right-of-use assets obtained in exchange for operating lease liabilities	$	22	$	47

As of September 26, 2020, the Company has additional operating leases that have not yet commenced. Obligations under these leases are not material. Additionally, as a lessor, the Company leases all or a portion of certain owned properties. Rental income for the three and nine months ended September 26, 2020 and September 28, 2019 was not material.