Leases

6 Months Ended

Jul. 01, 2023

Leases [Abstract]

Leases

Leases

Components of Lease Expense

	Three Months Ended				Six Months Ended
(in millions)	July 1, 2023		July 2, 2022		July 1, 2023		July 2, 2022
Lease expense:
Operating lease cost	$	34	$	33	$	68	$	66
Finance lease cost
Amortization of right-of-use assets	$	1	$	2	$	2	$	4
Short-term lease cost	$	—	$	—	$	1	$	1
Variable cost	8		8		17		17
Sublease income	(1)		(2)		(3)		(3)
Net lease expense	$	42	$	41	$	85	$	85

Lease Assets and Liabilities

(in millions)	Statement Line Classification	July 1, 2023		December 31, 2022
Assets:
Operating lease assets	Operating lease assets	$	478	$	485
Finance lease assets	Property, plant and equipment, net	9		9
		$	487	$	494
Current liabilities:
Operating lease liabilities	Accrued liabilities	$	114	$	118
Finance lease liabilities	Current portion of long-term debt	—		1
		$	114	$	119
Non-current liabilities:
Operating lease liabilities	Operating lease liabilities	$	391	$	419

Other Information Related to Leases

	Six Months Ended
(in millions)	July 1, 2023		July 2, 2022
Supplemental cash flow information:
Net cash used for operating activities related to operating leases	$	81	$	93
Net cash used for financing activities related to finance leases	—		3
Assets obtained in exchange for lease liabilities:
Operating leases	$	39	$	65

Assets obtained in exchange for lease liabilities for the six months ended July 1, 2023 included $20 million of additional leases due to a renewal of a large managed services contract. Assets obtained in exchange for lease liabilities for the six months ended July 2, 2022 included $34 million of additional leases acquired in connection with the Company's acquisition of TETRA Ireland.

	July 1, 2023		December 31, 2022
Weighted average remaining lease terms (years):
Operating leases	5		5
Finance leases	1		1
Weighted average discount rate:
Operating leases	4.24	%	4.07	%
Finance leases	2.77	%	3.23	%

Future Lease Payments

	July 1, 2023
(in millions)	Operating Leases
Remainder of 2023	$	52
2024	135
2025	122
2026	102
2027	54
Thereafter	96
Total lease payments	$	561
Less: Interest	56
Present value of lease liabilities	$	505

Leases

Leases

Components of Lease Expense

	Three Months Ended				Six Months Ended
(in millions)	July 1, 2023		July 2, 2022		July 1, 2023		July 2, 2022
Lease expense:
Operating lease cost	$	34	$	33	$	68	$	66
Finance lease cost
Amortization of right-of-use assets	$	1	$	2	$	2	$	4
Short-term lease cost	$	—	$	—	$	1	$	1
Variable cost	8		8		17		17
Sublease income	(1)		(2)		(3)		(3)
Net lease expense	$	42	$	41	$	85	$	85

Lease Assets and Liabilities

(in millions)	Statement Line Classification	July 1, 2023		December 31, 2022
Assets:
Operating lease assets	Operating lease assets	$	478	$	485
Finance lease assets	Property, plant and equipment, net	9		9
		$	487	$	494
Current liabilities:
Operating lease liabilities	Accrued liabilities	$	114	$	118
Finance lease liabilities	Current portion of long-term debt	—		1
		$	114	$	119
Non-current liabilities:
Operating lease liabilities	Operating lease liabilities	$	391	$	419

Other Information Related to Leases

	Six Months Ended
(in millions)	July 1, 2023		July 2, 2022
Supplemental cash flow information:
Net cash used for operating activities related to operating leases	$	81	$	93
Net cash used for financing activities related to finance leases	—		3
Assets obtained in exchange for lease liabilities:
Operating leases	$	39	$	65

Assets obtained in exchange for lease liabilities for the six months ended July 1, 2023 included $20 million of additional leases due to a renewal of a large managed services contract. Assets obtained in exchange for lease liabilities for the six months ended July 2, 2022 included $34 million of additional leases acquired in connection with the Company's acquisition of TETRA Ireland.

	July 1, 2023		December 31, 2022
Weighted average remaining lease terms (years):
Operating leases	5		5
Finance leases	1		1
Weighted average discount rate:
Operating leases	4.24	%	4.07	%
Finance leases	2.77	%	3.23	%

Future Lease Payments

	July 1, 2023
(in millions)	Operating Leases
Remainder of 2023	$	52
2024	135
2025	122
2026	102
2027	54
Thereafter	96
Total lease payments	$	561
Less: Interest	56
Present value of lease liabilities	$	505