Leases

9 Months Ended

Sep. 28, 2019

Leases

Leases

Note 8. Leases

We primarily lease certain manufacturing plants, offices, warehouses, training and service centers at various locations worldwide that are classified as either operating or finance leases. Our leases have remaining lease terms up to 30 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. In the third quarter and first nine months of 2019, our operating lease cost totaled $16 million and $48 million, respectively. Our finance lease cost and our variable and short-term lease costs were not significant. In the first nine months of 2019, cash paid for operating lease liabilities totaled $48 million, which is classified in cash flows from operating activities.  Balance sheet and other information related to our leases is as follows:

	September 28,
(Dollars in millions)	2019
Operating leases:
Other assets	$	282
Other current liabilities		50
Other liabilities		235
Finance leases:
Property, plant and equipment, less accumulated amortization of $53 million	$	114
Short-term and current portion of long-term debt		6
Long-term debt		75
Weighted-average remaining lease term (in years)
Finance leases		14.0
Operating leases		10.3
Weighted-average discount rate
Finance leases		2.75	%
Operating leases		4.45	%

Maturities of our lease liabilities at September 28, 2019 are as follows:

	Operating		Finance
(In millions)	Leases		Leases
2019	$	18	$	3
2020		56		9
2021		43		9
2022		36		9
2023		31		9
Thereafter		178		69
Total lease payments		362		108
Less: interest		(77)		(27)
Total lease liabilities	$	285	$	81