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Leases | 6 Months Ended
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Jun. 29, 2019
Leases [Abstract] |
Leases | Leases The Company leases certain warehouses, equipment, vehicles, and office space primarily through operating lease agreements. Finance lease obligations and activity are not material to the Consolidated Financial Statements. Lease obligations are primarily for real estate assets, with the remainder related to manufacturing and distribution related equipment, vehicles, information technology equipment, and rail cars. Leases with an initial term of 12 months or less are not recorded on the balance sheet. A portion of the Company's real estate leases include future variable rental payments that include inflationary adjustment factors. The future variability of these adjustments is unknown and therefore not included in the minimum lease payments. The Company's lease agreements do not contain any material residual value guarantees or material restrictive covenants. The leases have remaining terms which range from less than 1 year to 10 years and the majority of leases provide the Company with the option to exercise one or more renewal terms. The length of the lease term used in recording lease assets and lease liabilities is based on the contractually required lease term adjusted for any options to renew or early terminate the lease that are reasonably certain of being executed. The Company combines lease and non-lease components together in determining the minimum lease payments for the majority of leases. The Company has elected to not combine lease and non-lease components for certain asset types in service-related agreements that include significant production related costs. The Company has closely analyzed these agreements to ensure any embedded costs related to the securing of the leased asset is properly segregated and accounted for in measuring the lease assets and liabilities. The majority of the leases do not include a stated interest rate, and therefore the Company's periodic incremental borrowing rate is used to determine the present value of lease payments. This rate is calculated based on a collateralized rate for the specific currencies used in leasing activities and the borrowing ability of the applicable Company legal entity. For the initial implementation of the lease standard, the incremental borrowing rate at December 29, 2018 was used to present value operating lease assets and liabilities. The Company recorded operating lease costs of $32 million and $64 million for the quarter and year-to-date periods ended June 29, 2019. Lease related costs associated with variable rent, short-term leases, and sale-leaseback arrangements, as well as sublease income, are each immaterial.
(millions) |  | Quarter ended June 29, 2019 |  | Year-to-date period ended June 29, 2019
Other information |  |  |  |
Cash paid for amounts included in the measurement of lease liabilities: |  |  |  |
Operating cash flows from operating leases |  | $ | 32 |  |  | $ | 63 |
Right-of-use assets obtained in exchange for new operating lease liabilities |  | $ | 8 |  |  | $ | 20 |
Weighted-average remaining lease term - operating leases |  | 6 years
Weighted-average discount rate - operating leases |  | 3.1%
At June 29, 2019, future maturities of operating leases were as follows:
(millions) |  | Operating leases
2019 (six months remaining) |  | 65 |
2020 |  | 99 |
2021 |  | 75 |
2022 |  | 59 |
2023 |  | 47 |
2024 and beyond |  | 124 |
Total minimum payments |  | $ | 469 |
Less interest |  | $ | (40 | )
Less leases accounted for as held for sale |  | $ | (5 | )
Present value of lease liabilities |  | $ | 424 |
Operating lease payments presented in the table above exclude $144 million of minimum lease payments for real-estate leases signed but not yet commenced. The leases are expected to commence in 2019 and 2020. As previously disclosed in our 2018 Annual Report on Form 10-K and under previous lease standard (Topic 840), at December 29, 2018, future minimum annual lease commitments under non-cancelable operating leases were as follows:
(millions) |  | Operating leases
2019 |  | 121 |
2020 |  | 97 |
2021 |  | 73 |
2022 |  | 57 |
2023 |  | 48 |
2024 and beyond |  | 129 |
Total minimum payments |  | $ | 525 |
Rent expense on operating leases for the year ended December 29, 2018 was $133 million.

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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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