Leases

12 Months Ended

Jan. 04, 2020

Leases

Leases

Note 9.  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 2019, our operating lease cost totaled $64 million. Our finance lease cost and our variable and short-term lease costs were not significant. Cash paid for operating lease liabilities during 2019 totaled $62 million, which is classified in cash flows from operating activities.  Balance sheet and other information related to our leases is as follows:  

	January 4,
(Dollars in millions)	2020
Operating leases:
Other assets	$	277
Other current liabilities		48
Other liabilities		233
Finance leases:
Property, plant and equipment, less accumulated amortization of $8 million	$	39
Current portion of long-term debt		2
Long-term debt		40
Weighted-average remaining lease term (in years)
Finance leases		17.9
Operating leases		10.2
Weighted-average discount rate
Finance leases		4.37	%
Operating leases		4.42	%

At December 29, 2018, assets under finance leases totaled $168 million and had accumulated amortization of $47 million.

Maturities of our lease liabilities at January 4, 2020 are as follows:

	Operating		Finance
(In millions)	Leases		Leases
2020	$	57	$	4
2021		48		4
2022		40		4
2023		32		4
2024		25		5
Thereafter		154		46
Total lease payments		356		67
Less: interest		(75)		(25)
Total lease liabilities	$	281	$	42