Leases and Other Commitments

12 Months Ended

Jan. 01, 2022

LEASES AND OTHER COMMITMENTS

The Company recorded operating lease costs of $139 million, $135 million and $133 million for the years ended January 1, 2022, January 2, 2021 and December 28, 2019, respectively. Lease related costs associated with variable rent, short-term leases, and sale-leaseback arrangements, as well as sublease income, are each immaterial.


(millions)	Year ended January 1, 2022		Year ended January 2, 2021		Year ended December 28, 2019
Other information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	138	$	141	$	134
Right-of-use assets obtained in exchange for operating lease liabilities
New leases	$	60	$	144	$	164
Modified leases	$	53	$	84	$	44

Weighted-average remaining lease term - operating leases	8 years		8 years
Weighted-average discount rate - operating leases	2.7%		2.6%

At January 1, 2022, future maturities of operating leases were as follows:


(millions)	Operating leases
2022	$	127
2023	112
2024	96
2025	87
2026	66
2027 and beyond	210
Total minimum payments	$	698
Less interest	(80)
Present value of lease liabilities	$	618

Operating lease payments presented in the table above exclude $52 million of minimum lease payments for real-estate leases signed but not yet commenced as of January 1, 2022. The leases are expected to commence in 2022.

At January 1, 2022, future minimum annual lease commitments under non-cancelable finance leases were immaterial.

The Company has provided various standard indemnifications in agreements to sell and purchase business assets and lease facilities over the past several years, related primarily to pre-existing tax, environmental, and employee benefit obligations. Certain of these indemnifications are limited by agreement in either amount and/or term and others are unlimited. The Company has also provided various “hold harmless” provisions within certain service type agreements. Because the Company is not currently aware of any actual exposures associated with these indemnifications, management is unable to estimate the maximum potential future payments to be made. At January 1, 2022, the Company had not recorded any liability related to these indemnifications.