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Leases | 9 Months Ended
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Oct. 01, 2022
Leases [Abstract] |
Leases | Leases Components of Lease Expense
| Three Months Ended |  | Nine Months Ended
(in millions) | October 1, 2022 |  | October 2, 2021 |  | October 1, 2022 |  | October 2, 2021
Lease expense: |  |  |  |  |  |  |
Operating lease cost | $ | 32 |  |  | $ | 34 |  |  | $ | 98 |  |  | $ | 101 |
Finance lease cost |  |  |  |  |  |  |
Amortization of right-of-use assets | $ | 1 |  |  | $ | 2 |  |  | $ | 5 |  |  | $ | 8 |
Short-term lease cost | $ | — |  |  | $ | — |  |  | $ | 1 |  |  | $ | 2 |
Variable cost | 9 |  |  | 9 |  |  | 26 |  |  | 27 |
Sublease income | (1) |  |  | (2) |  |  | (4) |  |  | (4) |
Net lease expense | $ | 41 |  |  | $ | 43 |  |  | $ | 126 |  |  | $ | 134 |
Lease Assets and Liabilities
(in millions) |  | Statement Line Classification |  | October 1, 2022 |  | December 31, 2021 |  |
Assets: |  |  |  |  |  |  |  |
Operating lease assets |  | Operating lease assets |  | $ | 338 |  |  | $ | 382 |  |  |
Finance lease assets |  | Property, plant and equipment, net |  | 10 |  |  | 16 |  |  |
|  |  |  | $ | 348 |  |  | $ | 398 |  |  |
Current liabilities: |  |  |  |  |  |  |  |
Operating lease liabilities |  | Accrued liabilities |  | $ | 77 |  |  | $ | 124 |  |  |
Finance lease liabilities |  | Current portion of long-term debt |  | 1 |  |  | 4 |  |  |
|  |  |  | $ | 78 |  |  | $ | 128 |  |  |
Non-current liabilities: |  |  |  |  |  |  |  |
Operating lease liabilities |  | Operating lease liabilities |  | $ | 302 |  |  | $ | 313 |  |  |
|  |  |  | $ | 302 |  |  | $ | 313 |  |  |
Other Information Related to Leases
| Nine Months Ended |  |
(in millions) | October 1, 2022 |  | October 2, 2021 |  |
Supplemental cash flow information: |  |  |  |  |
Net cash used for operating activities related to operating leases | $ | 124 |  |  | $ | 124 |  |  |
Net cash used for financing activities related to finance leases | 4 |  |  | 9 |  |  |
Assets obtained in exchange for lease liabilities: |  |  |  |  |
Operating leases | $ | 77 |  |  | $ | 31 |  |  |
The increase in assets obtained in exchange for lease liabilities for the nine months ended October 1, 2022 compared to the nine months ended October 2, 2021 was primarily due to $34 million of additional leases acquired in connection with the Company's acquisition of TETRA Ireland on March 23, 2022.
| October 1, 2022 |  | December 31, 2021
Weighted average remaining lease terms (years): |  |  |
Operating leases | 6 |  | 6
Finance leases | 1 |  | 1
Weighted average discount rate: |  |  |
Operating leases | 3.13 | % |  | 3.11 | %
Finance leases | 3.84 | % |  | 3.99 | %
Future Lease Payments
| October 1, 2022
(in millions) | Operating Leases |  | Finance Leases |  | Total
Remainder of 2022 | $ | 18 |  |  | $ | — |  |  | $ | 18 |
2023 | 91 |  |  | 1 |  |  | 92 |
2024 | 77 |  |  | — |  |  | 77 |
2025 | 63 |  |  | — |  |  | 63 |
2026 | 50 |  |  | — |  |  | 50 |
Thereafter | 118 |  |  | — |  |  | 118 |
Total lease payments | $ | 417 |  |  | $ | 1 |  |  | $ | 418 |
Less: Interest | 38 |  |  | — |  |  | 38 |
Present value of lease liabilities | $ | 379 |  |  | $ | 1 |  |  | $ | 380 |
Leases | Leases Components of Lease Expense
| Three Months Ended |  | Nine Months Ended
(in millions) | October 1, 2022 |  | October 2, 2021 |  | October 1, 2022 |  | October 2, 2021
Lease expense: |  |  |  |  |  |  |
Operating lease cost | $ | 32 |  |  | $ | 34 |  |  | $ | 98 |  |  | $ | 101 |
Finance lease cost |  |  |  |  |  |  |
Amortization of right-of-use assets | $ | 1 |  |  | $ | 2 |  |  | $ | 5 |  |  | $ | 8 |
Short-term lease cost | $ | — |  |  | $ | — |  |  | $ | 1 |  |  | $ | 2 |
Variable cost | 9 |  |  | 9 |  |  | 26 |  |  | 27 |
Sublease income | (1) |  |  | (2) |  |  | (4) |  |  | (4) |
Net lease expense | $ | 41 |  |  | $ | 43 |  |  | $ | 126 |  |  | $ | 134 |
Lease Assets and Liabilities
(in millions) |  | Statement Line Classification |  | October 1, 2022 |  | December 31, 2021 |  |
Assets: |  |  |  |  |  |  |  |
Operating lease assets |  | Operating lease assets |  | $ | 338 |  |  | $ | 382 |  |  |
Finance lease assets |  | Property, plant and equipment, net |  | 10 |  |  | 16 |  |  |
|  |  |  | $ | 348 |  |  | $ | 398 |  |  |
Current liabilities: |  |  |  |  |  |  |  |
Operating lease liabilities |  | Accrued liabilities |  | $ | 77 |  |  | $ | 124 |  |  |
Finance lease liabilities |  | Current portion of long-term debt |  | 1 |  |  | 4 |  |  |
|  |  |  | $ | 78 |  |  | $ | 128 |  |  |
Non-current liabilities: |  |  |  |  |  |  |  |
Operating lease liabilities |  | Operating lease liabilities |  | $ | 302 |  |  | $ | 313 |  |  |
|  |  |  | $ | 302 |  |  | $ | 313 |  |  |
Other Information Related to Leases
| Nine Months Ended |  |
(in millions) | October 1, 2022 |  | October 2, 2021 |  |
Supplemental cash flow information: |  |  |  |  |
Net cash used for operating activities related to operating leases | $ | 124 |  |  | $ | 124 |  |  |
Net cash used for financing activities related to finance leases | 4 |  |  | 9 |  |  |
Assets obtained in exchange for lease liabilities: |  |  |  |  |
Operating leases | $ | 77 |  |  | $ | 31 |  |  |
The increase in assets obtained in exchange for lease liabilities for the nine months ended October 1, 2022 compared to the nine months ended October 2, 2021 was primarily due to $34 million of additional leases acquired in connection with the Company's acquisition of TETRA Ireland on March 23, 2022.
| October 1, 2022 |  | December 31, 2021
Weighted average remaining lease terms (years): |  |  |
Operating leases | 6 |  | 6
Finance leases | 1 |  | 1
Weighted average discount rate: |  |  |
Operating leases | 3.13 | % |  | 3.11 | %
Finance leases | 3.84 | % |  | 3.99 | %
Future Lease Payments
| October 1, 2022
(in millions) | Operating Leases |  | Finance Leases |  | Total
Remainder of 2022 | $ | 18 |  |  | $ | — |  |  | $ | 18 |
2023 | 91 |  |  | 1 |  |  | 92 |
2024 | 77 |  |  | — |  |  | 77 |
2025 | 63 |  |  | — |  |  | 63 |
2026 | 50 |  |  | — |  |  | 50 |
Thereafter | 118 |  |  | — |  |  | 118 |
Total lease payments | $ | 417 |  |  | $ | 1 |  |  | $ | 418 |
Less: Interest | 38 |  |  | — |  |  | 38 |
Present value of lease liabilities | $ | 379 |  |  | $ | 1 |  |  | $ | 380 |

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