Leases

3 Months Ended

Apr. 01, 2023

We primarily lease certain manufacturing plants, offices, warehouses, training and service centers at various locations worldwide through operating leases. Our operating leases have remaining lease terms up to 26 years, which include options to extend the lease term for periods up to 25 years when it is reasonably certain the option will be exercised. Operating lease cost totaled $17 million in both the first quarter of 2023 and 2022. Variable and short-term lease costs were not significant. Cash paid for operating leases totaled $17 million in both the first quarter of 2023 and 2022, and is classified in cash flows from operating activities. Noncash transactions totaled $15 million and $7 million in the first quarter of 2023 and 2022, respectively, reflecting the recognition of operating lease assets and liabilities for new or extended leases.

Balance sheet and other information related to our operating leases is as follows:


(Dollars in millions)	April 1, 2023		December 31, 2022
Other assets	$	375	$	372
Other current liabilities	55		54
Other liabilities	328		326
Weighted-average remaining lease term (in years)	10.4		10.4
Weighted-average discount rate	4.29%		4.14%

At April 1, 2023, maturities of our operating lease liabilities on an undiscounted basis totaled $53 million for the remainder of 2023, $63 million for 2024, $55 million for 2025, $42 million for 2026, $37 million for 2027 and $237 million thereafter.