Leases

9 Months Ended

Sep. 28, 2019

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 12 years, with certain leases containing renewal options.

The following table presents activities associated with our operating leases during the three and nine months ended September 28, 2019 (in millions):



	Three Months Ended		Nine Months Ended
	September 28, 2019		September 28, 2019
Fixed lease expenses	$	10	$	28
Variable lease expenses	7		20
Total lease expenses	$	17	$	48

Cash paid for leases	$	17	$	49
ROU assets obtained in exchange for lease obligations	$	11	$	28

The variable lease expenses incurred during the period were not included in the measurement of the Company’s ROU assets and lease liabilities. Cash payments for operating leases are included within Net cash provided by operating activities on the Consolidated Statements of Cash Flows.

As of September 28, 2019, the weighted average remaining term of the Company’s operating leases was approximately 5 years, and the weighted average discount rate used to measure the ROU assets and lease liabilities was approximately 6%.

Future minimum lease payments under non-cancellable operating leases as of September 28, 2019 were as follows (in millions):



2019	$	10
2020	40
2021	34
2022	24
2023	18
Thereafter	37
Total future minimum lease payments	$	163
Less: Interest	(25		)
Present value of lease liabilities	$	138

Reported as of September 28, 2019:
Current portion of lease liabilities	$	33
Long-term lease liabilities	105
Present value of lease liabilities	$	138

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 were not significant during the three and nine months ended September 28, 2019.