Leases

The Company leases certain manufacturing facilities, distribution centers, sales and administrative offices, equipment, and vehicles which are accounted for as operating leases. Remaining lease terms are up to 13 years, with certain leases containing renewal options.

During the three months ended March 30, 2019, expense associated with the Company’s operating leases was $15 million, which included $6 million of variable lease expenses that were not part of the measurement of the ROU assets and lease liabilities. Costs associated with short-term leases were insignificant.

During the three months ended March 30, 2019, the Company paid $15 million for operating leases, with such payments included within Net cash provided by operating activities on the Consolidated Statements of Cash Flows. Also, during the three months ended March 30, 2019, the Company obtained $7 million of ROU assets in exchange for operating lease obligations.

As of March 30, 2019, the weighted average remaining term of the Company’s operating leases was 6 years, and the weighted average discount rate used to measure the ROU assets and lease liabilities was 6%.

Future minimum lease payments under non-cancellable operating leases as of March 30, 2019 were as follows (in millions):



2019	$	28
2020	33
2021	28
2022	20
2023	14
Thereafter	35
Total future minimum lease payments	$	158
Less: Interest	(26		)
Present value of lease liabilities	$	132

Reported as of March 30, 2019:
Current portion of lease liabilities	$	30
Long-term lease liabilities	102
Present value of lease liabilities	$	132

The current portion of lease liabilities is included within Accrued liabilities on the Consolidated Balance Sheet.

Revenues earned from lease arrangements under which the Company is a lessor are not significant.