Leases

3 Months Ended

Apr. 04, 2020

Leases

Leases

Note 7. 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 finance leases at April 4, 2020 were not significant. Our operating leases have remaining lease terms up to 29 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 first quarter of 2020 and 2019, both our operating lease cost and cash paid for these leases totaled $15 million and $16 million, respectively. Variable and short-term lease costs were not significant. Balance sheet and other information related to our operating leases is as follows:

	April 4,			January 4,
(Dollars in millions)	2020			2020
Other assets	$	272		$	277
Other current liabilities		49			48
Other liabilities		225			233
Weighted-average remaining lease term (in years)		10.0			10.2
Weighted-average discount rate		4.42	%		4.42	%

At April 4, 2020, maturities of our operating lease liabilities on an undiscounted basis totaled $46 million for 2020, $48 million for 2021, $41 million for 2022, $32 million for 2023, $25 million for 2024 and $153 million thereafter.