Leases

9 Months Ended

Sep. 30, 2023

Leases [Abstract]

Leases

Leases

Total operating lease costs are as follows:

	Three Months Ended				Nine Months Ended
(in millions)	September 30, 2023		October 1, 2022		September 30, 2023		October 1, 2022
Operating lease costs
Cost of goods sold	$	5	$	3	$	15	$	13
Selling, general and administrative expenses	14		13		43		38
Total operating lease costs	$	19	$	16	$	58	$	51

Total operating lease costs include variable lease costs of $6 million and $18 million for the three and nine months ended September 30, 2023, respectively. For the three and nine months ended October 1, 2022, total operating lease costs include variable lease costs of $6 million and $15 million, respectively.

The following table summarizes the carrying amounts of our operating lease assets and liabilities:

(in millions)	Financial Statement Line Item	September 30, 2023		December 31, 2022
Operating lease assets	Other assets	$	197	$	191
Operating lease liabilities - current	Accrued liabilities	$	36	$	37
Operating lease liabilities - non-current	Other liabilities	$	174	$	166

Supplemental cash flow information related to operating leases was as follows:

	Nine Months Ended
(in millions)	September 30, 2023		October 1, 2022
Cash paid for operating lease liabilities	$	27	$	25
Non-cash activities: operating lease assets obtained in exchange for new operating lease liabilities	$	37	$	84