Leases

9 Months Ended

Sep. 30, 2023

Leases [Abstract]

Leases

Leases

Components of Lease Expense

	Three Months Ended				Nine Months Ended
(in millions)	September 30, 2023		October 1, 2022		September 30, 2023		October 1, 2022
Lease expense:
Operating lease cost	$	35	$	32	$	103	$	98
Finance lease cost
Amortization of right-of-use assets	$	1	$	1	$	2	$	5
Short-term lease cost	$	—	$	—	$	1	$	1
Variable cost	10		9		28		26
Sublease income	(1)		(1)		(3)		(4)
Net lease expense	$	45	$	41	$	131	$	126

Lease Assets and Liabilities

(in millions)	Statement Line Classification	September 30, 2023		December 31, 2022
Assets:
Operating lease assets	Operating lease assets	$	453	$	485
Finance lease assets	Property, plant and equipment, net	8		9
		$	461	$	494
Current liabilities:
Operating lease liabilities	Accrued liabilities	$	118	$	118
Finance lease liabilities	Current portion of long-term debt	—		1
		$	118	$	119
Non-current liabilities:
Operating lease liabilities	Operating lease liabilities	$	368	$	419

Other Information Related to Leases

	Nine Months Ended
(in millions)	September 30, 2023		October 1, 2022
Supplemental cash flow information:
Net cash used for operating activities related to operating leases	$	103	$	124
Net cash used for financing activities related to finance leases	1		4
Assets obtained in exchange for lease liabilities:
Operating leases	$	52	$	77

Assets obtained in exchange for lease liabilities for the nine months ended September 30, 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 nine months ended October 1, 2022 included $34 million of additional leases acquired in connection with the Company's acquisition of TETRA Ireland.

	September 30, 2023		December 31, 2022
Weighted average remaining lease terms (years):
Operating leases	5		5
Finance leases	0		1
Weighted average discount rate:
Operating leases	4.26	%	4.07	%
Finance leases	—	%	3.23	%

Future Lease Payments

	September 30, 2023
(in millions)	Operating Leases
Remainder of 2023	$	29
2024	135
2025	119
2026	102
2027	56
Thereafter	97
Total lease payments	$	538
Less: Interest	52
Present value of lease liabilities	$	486

Leases

Leases

Components of Lease Expense

	Three Months Ended				Nine Months Ended
(in millions)	September 30, 2023		October 1, 2022		September 30, 2023		October 1, 2022
Lease expense:
Operating lease cost	$	35	$	32	$	103	$	98
Finance lease cost
Amortization of right-of-use assets	$	1	$	1	$	2	$	5
Short-term lease cost	$	—	$	—	$	1	$	1
Variable cost	10		9		28		26
Sublease income	(1)		(1)		(3)		(4)
Net lease expense	$	45	$	41	$	131	$	126

Lease Assets and Liabilities

(in millions)	Statement Line Classification	September 30, 2023		December 31, 2022
Assets:
Operating lease assets	Operating lease assets	$	453	$	485
Finance lease assets	Property, plant and equipment, net	8		9
		$	461	$	494
Current liabilities:
Operating lease liabilities	Accrued liabilities	$	118	$	118
Finance lease liabilities	Current portion of long-term debt	—		1
		$	118	$	119
Non-current liabilities:
Operating lease liabilities	Operating lease liabilities	$	368	$	419

Other Information Related to Leases

	Nine Months Ended
(in millions)	September 30, 2023		October 1, 2022
Supplemental cash flow information:
Net cash used for operating activities related to operating leases	$	103	$	124
Net cash used for financing activities related to finance leases	1		4
Assets obtained in exchange for lease liabilities:
Operating leases	$	52	$	77

Assets obtained in exchange for lease liabilities for the nine months ended September 30, 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 nine months ended October 1, 2022 included $34 million of additional leases acquired in connection with the Company's acquisition of TETRA Ireland.

	September 30, 2023		December 31, 2022
Weighted average remaining lease terms (years):
Operating leases	5		5
Finance leases	0		1
Weighted average discount rate:
Operating leases	4.26	%	4.07	%
Finance leases	—	%	3.23	%

Future Lease Payments

	September 30, 2023
(in millions)	Operating Leases
Remainder of 2023	$	29
2024	135
2025	119
2026	102
2027	56
Thereafter	97
Total lease payments	$	538
Less: Interest	52
Present value of lease liabilities	$	486