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LEASE COMMITMENTS | 12 Months Ended
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Jan. 01, 2021
Leases [Abstract] |
LEASE COMMITMENTS | NOTE 19: LEASE COMMITMENTS Our operating and finance leases at January 1, 2021 and January 3, 2020 primarily consist of real estate leases for office space, warehouses, manufacturing, research and development facilities, tower space and land, and equipment leases. Finance leases were not material at January 1, 2021 or January 3, 2020 and are not included in the disclosures below. Operating lease cost was $176 million and $88 million for fiscal 2020 and the two quarters ended January 3, 2020, respectively. Other lease expenses, including short-term and equipment lease cost, variable lease cost and sublease income, were not material for fiscal 2020 or the two quarters ended January 3, 2020. Rental expense during fiscal 2019 and 2018 was $73 million and $61 million, respectively. On November 24, 2020, we completed a sale and leaseback transaction of a parcel of land and manufacturing facility located in Los Angeles, California for $92 million (net cash proceeds of $66 million after $2 million of closing costs and $24 million for a residual value guarantee payment). The lease has a maximum term of sixteen months (including two options to extend the lease by one month). Due to its short term nature relative to the property’s remaining economic life, the lease will be accounted for as an operating lease. We recognized a pre-tax gain on this sale and leaseback transaction of $22 million, which is included in the “Engineering, selling and administrative expenses” line item in our Consolidated Statement of Income for fiscal 2020. As discussed in more detail in Note 11: Intangible Assets in these Notes, in conjunction with, and in advance of, the tests of goodwill related to our Commercial Aviation Solutions reporting unit in fiscal 2020, we recorded a $257 million non-cash impairment charge for long lived assets, including $31 million for impairment of ROU assets. Additionally, in connection with COVID restructuring actions, we recognized $5 million of non-cash impairment charges for ROU assets associated with consolidated facilities. These impairments are included in the “Impairment of goodwill and other assets” line item in our Consolidated Statement of Income for fiscal 2020. Supplemental operating lease balance sheet information at January 1, 2021 and January 3, 2020 is as follows:
(In millions) | January 1, 2021 |  | January 3, 2020
Operating lease ROU assets | $ | 766 |  |  | $ | 837 |
Other accrued items | 116 |  |  | 129 |
Operating lease liabilities | 734 |  |  | 781 |
Total operating lease liabilities | $ | 850 |  |  | $ | 910 |
Other supplemental lease information for fiscal 2020 and the two quarters ended January 3, 2020 is as follows:
| Fiscal Year Ended |  | Two Quarters Ended
(In millions, except lease term and discount rate) | January 1, 2021 |  | January 3, 2020
Cash paid for amounts included in the measurement of operating lease liabilities | $ | 171 |  |  | $ | 91 |
ROU assets obtained in exchange for new operating lease liabilities | 103 |  |  | 17 |
Weighted average remaining lease term — operating leases (in years) | 8.7 |  | 9.4
Weighted average discount rate — operating leases | 3.0 | % |  | 3.1 | %
Future lease payments under non-cancelable operating leases at January 1, 2021 were as follows:
| (In millions) |  |
Fiscal Years |  |  |
2021 | $ | 148 |  |  |
2022 | 131 |  |  |
2023 | 112 |  |  |
2024 | 95 |  |  |
2025 | 86 |  |  |
Thereafter | 425 |  |  |
Total future lease payments required | 997 |  |  |
Less: imputed interest | 147 |  |  |
Total | $ | 850 |  |  |
These commitments do not contain any material rent escalations, rent holidays, contingent rent, rent concessions, leasehold improvement incentives or unusual provisions or conditions. We do not consider any individual lease material to our operations. At January 1, 2021, we had $290 million of additional operating lease commitments for real estate leases that have not yet commenced. These leases will commence in 2021 with lease terms of 5 to 25 years.

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- Definition The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=77888251 + Details
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