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Leases | 12 Months Ended
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Jan. 03, 2025
Leases [Abstract] |
Leases | Note 10—Leases LESSEE ROU assets and lease liabilities consisted of the following:
(in millions) |  | Balance sheet line item |  | January 3, 2025 |  | December 29, 2023
ROU assets: |  |  |  |  |  |
Finance leases |  | Property, plant and equipment, net |  | $ | 69 |  |  | $ | 89 |
Operating leases |  | Operating lease right-of-use assets, net |  | 560 |  |  | 512 |
|  |  |  | $ | 629 |  |  | $ | 601 |
Current lease liabilities: |  |  |  |  |  |
Finance leases |  | Short-term debt and current portion of long-term debt |  | $ | 19 |  |  | $ | 18 |
Operating leases |  | Accounts payable and accrued liabilities |  | 123 |  |  | 136 |
|  |  |  | $ | 142 |  |  | $ | 154 |
Non-current lease liabilities: |  |  |  |  |  |
Finance leases |  | Long-term debt, net of current portion |  | $ | 54 |  |  | $ | 73 |
Operating leases |  | Operating lease liabilities |  | 621 |  |  | 516 |
|  |  |  | $ | 675 |  |  | $ | 589 |
During fiscal 2024 and 2022, we reduced our leased space by exiting and consolidating underutilized buildings as part of an ongoing facility rationalization effort. We used discounted cash flow models to estimate the fair values of the affected assets and as a result, we recorded impairments of ROU and other assets in the amount of $11 million and $37 million for fiscal 2024 and 2022, respectively. The impairment charges were allocated across our reportable segments and to Corporate. In fiscal 2024, we took occupancy of our newly constructed facility in San Diego, CA. As a result we recorded $117 million of ROU assets and $169 million of lease liabilities. In fiscal 2022, the Company entered into a Master Lease Agreement whereby we agreed to lease two aircraft from the time each aircraft is accepted through June 30, 2027. In March 2023, we took possession of both aircraft and recognized a $64 million finance lease obligation and a corresponding ROU asset. Total lease cost for the periods presented consisted of the following:
|  | Year Ended
(in millions) |  | January 3, 2025 |  | December 29, 2023 |  | December 30, 2022
Finance lease cost: |  |  |  |  |  |
Amortization of ROU assets |  | $ | 20 |  |  | $ | 18 |  |  | $ | 9 |
Interest on lease liabilities |  | 4 |  |  | 4 |  |  | 1 |
|  | 24 |  |  | 22 |  |  | 10 |
Operating lease cost(1) |  | 143 |  |  | 148 |  |  | 161 |
Variable lease cost |  | 35 |  |  | 35 |  |  | 42 |
Short-term lease cost |  | 4 |  |  | 2 |  |  | 3 |
Less: Sublease income |  | — |  |  | — |  |  | (6) |
Total lease cost |  | $ | 206 |  |  | $ | 207 |  |  | $ | 210 |
(1)Includes ROU lease expense of $119 million, $124 million and $134 million for fiscal 2024, 2023 and 2022, respectively. Lease costs and sublease income are included in “Cost of revenues” and “Selling, general and administrative expenses” within the consolidated statements of operations. Lease terms and discount rates related to leases were as follows:
|  | Year Ended
|  | January 3, 2025 |  | December 29, 2023 |  | December 30, 2022
Weighted-average remaining lease term (in years): |  |  |  |  |  |
Finance leases |  | 4.4 |  | 5.2 |  | 8.2
Operating leases |  | 9.9 |  | 7.3 |  | 7.5
Weighted-average discount rate: |  |  |  |  |  |
Finance leases |  | 4.7 | % |  | 4.8 | % |  | 2.6 | %
Operating leases |  | 4.5 | % |  | 3.7 | % |  | 3.3 | %
Other information related to leases was as follows:
|  | Year Ended
(in millions) |  | January 3, 2025 |  | December 29, 2023 |  | December 30, 2022
Cash paid for amounts included in measurement of lease liabilities: |  |  |  |  |  |
Operating cash related to finance leases |  | $ | 4 |  |  | $ | 4 |  |  | $ | 1 |
Operating cash related to operating leases |  | 163 |  |  | 167 |  |  | 168 |
Financing cash flows related to finance leases |  | 18 |  |  | 17 |  |  | 9 |
ROU assets obtained in exchange for lease liabilities: |  |  |  |  |  |
Finance lease liabilities |  | $ | — |  |  | $ | 63 |  |  | $ | 1 |
Operating lease liabilities |  | 236 |  |  | 97 |  |  | 122 |
The change in operating ROU assets and lease liabilities are presented within cash flows from operations on the consolidated statements of cash flows. Future minimum lease commitments of our finance and operating leases on an undiscounted basis, reconciled to the respective lease liability at January 3, 2025, were as follows:
Fiscal Year Ending (in millions) |  | Finance lease commitments |  | Operating lease commitments
2025 |  | $ | 22 |  |  | $ | 153 |
2026 |  | 22 |  |  | 117 |
2027 |  | 14 |  |  | 88 |
2028 |  | 5 |  |  | 88 |
2029 |  | 5 |  |  | 76 |
2030 and thereafter |  | 12 |  |  | 433 |
Total undiscounted cash flows |  | 80 |  |  | 955 |
Less: imputed interest |  | (7) |  |  | (211) |
Lease liability as of January 3, 2025 |  | $ | 73 |  |  | $ | 744 |
LESSOR As of January 3, 2025, and December 29, 2023, we had a total net investment in sales-type leases, which relates to lease payment receivables, of $94 million and $100 million, respectively. The current and non-current portions of net investment in sales-type leases are included within “Other current assets” and “Other long-term assets”, respectively, on the consolidated balance sheets. The components of lease income were as follows:
|  |  |  | Year Ended
(in millions) |  | Statement of operations line item |  | January 3, 2025 |  | December 29, 2023 |  | December 30, 2022
Sales-type leases: |  |  |  |  |  |  |  |
Selling price at lease commencement |  | Revenues |  | $ | 55 |  |  | $ | 51 |  |  | $ | 65 |
Cost of underlying asset |  | Cost of revenues |  | (40) |  |  | (41) |  |  | (52) |
Operating income |  |  |  | 15 |  |  | 10 |  |  | 13 |
Interest income on lease receivables |  | Revenues |  | 5 |  |  | 9 |  |  | 9 |
|  |  |  | 20 |  |  | 19 |  |  | 22 |
Operating lease income |  | Revenues |  | 26 |  |  | 39 |  |  | 35 |
Total lease income |  |  |  | $ | 46 |  |  | $ | 58 |  |  | $ | 57 |
As of January 3, 2025, undiscounted cash flows for sales-type and operating leases for the next five years are as follows:
Fiscal Year Ending (in millions) | Sales-type leases |  | Operating leases
2025 | $ | 43 |  |  | $ | 5 |
2026 | 32 |  |  | — |
2027 | 18 |  |  | — |
2028 | 4 |  |  | — |
2029 | 1 |  |  | — |
Total undiscounted cash flows | $ | 98 |  |  | $ | 5 |
Present value of lease payments as lease receivables | 94 |  |  |
Difference between undiscounted cash flows and discounted cash flows | $ | 4 |  |  |
Leases | Note 10—Leases LESSEE ROU assets and lease liabilities consisted of the following:
(in millions) |  | Balance sheet line item |  | January 3, 2025 |  | December 29, 2023
ROU assets: |  |  |  |  |  |
Finance leases |  | Property, plant and equipment, net |  | $ | 69 |  |  | $ | 89 |
Operating leases |  | Operating lease right-of-use assets, net |  | 560 |  |  | 512 |
|  |  |  | $ | 629 |  |  | $ | 601 |
Current lease liabilities: |  |  |  |  |  |
Finance leases |  | Short-term debt and current portion of long-term debt |  | $ | 19 |  |  | $ | 18 |
Operating leases |  | Accounts payable and accrued liabilities |  | 123 |  |  | 136 |
|  |  |  | $ | 142 |  |  | $ | 154 |
Non-current lease liabilities: |  |  |  |  |  |
Finance leases |  | Long-term debt, net of current portion |  | $ | 54 |  |  | $ | 73 |
Operating leases |  | Operating lease liabilities |  | 621 |  |  | 516 |
|  |  |  | $ | 675 |  |  | $ | 589 |
During fiscal 2024 and 2022, we reduced our leased space by exiting and consolidating underutilized buildings as part of an ongoing facility rationalization effort. We used discounted cash flow models to estimate the fair values of the affected assets and as a result, we recorded impairments of ROU and other assets in the amount of $11 million and $37 million for fiscal 2024 and 2022, respectively. The impairment charges were allocated across our reportable segments and to Corporate. In fiscal 2024, we took occupancy of our newly constructed facility in San Diego, CA. As a result we recorded $117 million of ROU assets and $169 million of lease liabilities. In fiscal 2022, the Company entered into a Master Lease Agreement whereby we agreed to lease two aircraft from the time each aircraft is accepted through June 30, 2027. In March 2023, we took possession of both aircraft and recognized a $64 million finance lease obligation and a corresponding ROU asset. Total lease cost for the periods presented consisted of the following:
|  | Year Ended
(in millions) |  | January 3, 2025 |  | December 29, 2023 |  | December 30, 2022
Finance lease cost: |  |  |  |  |  |
Amortization of ROU assets |  | $ | 20 |  |  | $ | 18 |  |  | $ | 9 |
Interest on lease liabilities |  | 4 |  |  | 4 |  |  | 1 |
|  | 24 |  |  | 22 |  |  | 10 |
Operating lease cost(1) |  | 143 |  |  | 148 |  |  | 161 |
Variable lease cost |  | 35 |  |  | 35 |  |  | 42 |
Short-term lease cost |  | 4 |  |  | 2 |  |  | 3 |
Less: Sublease income |  | — |  |  | — |  |  | (6) |
Total lease cost |  | $ | 206 |  |  | $ | 207 |  |  | $ | 210 |
(1)Includes ROU lease expense of $119 million, $124 million and $134 million for fiscal 2024, 2023 and 2022, respectively. Lease costs and sublease income are included in “Cost of revenues” and “Selling, general and administrative expenses” within the consolidated statements of operations. Lease terms and discount rates related to leases were as follows:
|  | Year Ended
|  | January 3, 2025 |  | December 29, 2023 |  | December 30, 2022
Weighted-average remaining lease term (in years): |  |  |  |  |  |
Finance leases |  | 4.4 |  | 5.2 |  | 8.2
Operating leases |  | 9.9 |  | 7.3 |  | 7.5
Weighted-average discount rate: |  |  |  |  |  |
Finance leases |  | 4.7 | % |  | 4.8 | % |  | 2.6 | %
Operating leases |  | 4.5 | % |  | 3.7 | % |  | 3.3 | %
Other information related to leases was as follows:
|  | Year Ended
(in millions) |  | January 3, 2025 |  | December 29, 2023 |  | December 30, 2022
Cash paid for amounts included in measurement of lease liabilities: |  |  |  |  |  |
Operating cash related to finance leases |  | $ | 4 |  |  | $ | 4 |  |  | $ | 1 |
Operating cash related to operating leases |  | 163 |  |  | 167 |  |  | 168 |
Financing cash flows related to finance leases |  | 18 |  |  | 17 |  |  | 9 |
ROU assets obtained in exchange for lease liabilities: |  |  |  |  |  |
Finance lease liabilities |  | $ | — |  |  | $ | 63 |  |  | $ | 1 |
Operating lease liabilities |  | 236 |  |  | 97 |  |  | 122 |
The change in operating ROU assets and lease liabilities are presented within cash flows from operations on the consolidated statements of cash flows. Future minimum lease commitments of our finance and operating leases on an undiscounted basis, reconciled to the respective lease liability at January 3, 2025, were as follows:
Fiscal Year Ending (in millions) |  | Finance lease commitments |  | Operating lease commitments
2025 |  | $ | 22 |  |  | $ | 153 |
2026 |  | 22 |  |  | 117 |
2027 |  | 14 |  |  | 88 |
2028 |  | 5 |  |  | 88 |
2029 |  | 5 |  |  | 76 |
2030 and thereafter |  | 12 |  |  | 433 |
Total undiscounted cash flows |  | 80 |  |  | 955 |
Less: imputed interest |  | (7) |  |  | (211) |
Lease liability as of January 3, 2025 |  | $ | 73 |  |  | $ | 744 |
LESSOR As of January 3, 2025, and December 29, 2023, we had a total net investment in sales-type leases, which relates to lease payment receivables, of $94 million and $100 million, respectively. The current and non-current portions of net investment in sales-type leases are included within “Other current assets” and “Other long-term assets”, respectively, on the consolidated balance sheets. The components of lease income were as follows:
|  |  |  | Year Ended
(in millions) |  | Statement of operations line item |  | January 3, 2025 |  | December 29, 2023 |  | December 30, 2022
Sales-type leases: |  |  |  |  |  |  |  |
Selling price at lease commencement |  | Revenues |  | $ | 55 |  |  | $ | 51 |  |  | $ | 65 |
Cost of underlying asset |  | Cost of revenues |  | (40) |  |  | (41) |  |  | (52) |
Operating income |  |  |  | 15 |  |  | 10 |  |  | 13 |
Interest income on lease receivables |  | Revenues |  | 5 |  |  | 9 |  |  | 9 |
|  |  |  | 20 |  |  | 19 |  |  | 22 |
Operating lease income |  | Revenues |  | 26 |  |  | 39 |  |  | 35 |
Total lease income |  |  |  | $ | 46 |  |  | $ | 58 |  |  | $ | 57 |
As of January 3, 2025, undiscounted cash flows for sales-type and operating leases for the next five years are as follows:
Fiscal Year Ending (in millions) | Sales-type leases |  | Operating leases
2025 | $ | 43 |  |  | $ | 5 |
2026 | 32 |  |  | — |
2027 | 18 |  |  | — |
2028 | 4 |  |  | — |
2029 | 1 |  |  | — |
Total undiscounted cash flows | $ | 98 |  |  | $ | 5 |
Present value of lease payments as lease receivables | 94 |  |  |
Difference between undiscounted cash flows and discounted cash flows | $ | 4 |  |  |
Leases | Note 10—Leases LESSEE ROU assets and lease liabilities consisted of the following:
(in millions) |  | Balance sheet line item |  | January 3, 2025 |  | December 29, 2023
ROU assets: |  |  |  |  |  |
Finance leases |  | Property, plant and equipment, net |  | $ | 69 |  |  | $ | 89 |
Operating leases |  | Operating lease right-of-use assets, net |  | 560 |  |  | 512 |
|  |  |  | $ | 629 |  |  | $ | 601 |
Current lease liabilities: |  |  |  |  |  |
Finance leases |  | Short-term debt and current portion of long-term debt |  | $ | 19 |  |  | $ | 18 |
Operating leases |  | Accounts payable and accrued liabilities |  | 123 |  |  | 136 |
|  |  |  | $ | 142 |  |  | $ | 154 |
Non-current lease liabilities: |  |  |  |  |  |
Finance leases |  | Long-term debt, net of current portion |  | $ | 54 |  |  | $ | 73 |
Operating leases |  | Operating lease liabilities |  | 621 |  |  | 516 |
|  |  |  | $ | 675 |  |  | $ | 589 |
During fiscal 2024 and 2022, we reduced our leased space by exiting and consolidating underutilized buildings as part of an ongoing facility rationalization effort. We used discounted cash flow models to estimate the fair values of the affected assets and as a result, we recorded impairments of ROU and other assets in the amount of $11 million and $37 million for fiscal 2024 and 2022, respectively. The impairment charges were allocated across our reportable segments and to Corporate. In fiscal 2024, we took occupancy of our newly constructed facility in San Diego, CA. As a result we recorded $117 million of ROU assets and $169 million of lease liabilities. In fiscal 2022, the Company entered into a Master Lease Agreement whereby we agreed to lease two aircraft from the time each aircraft is accepted through June 30, 2027. In March 2023, we took possession of both aircraft and recognized a $64 million finance lease obligation and a corresponding ROU asset. Total lease cost for the periods presented consisted of the following:
|  | Year Ended
(in millions) |  | January 3, 2025 |  | December 29, 2023 |  | December 30, 2022
Finance lease cost: |  |  |  |  |  |
Amortization of ROU assets |  | $ | 20 |  |  | $ | 18 |  |  | $ | 9 |
Interest on lease liabilities |  | 4 |  |  | 4 |  |  | 1 |
|  | 24 |  |  | 22 |  |  | 10 |
Operating lease cost(1) |  | 143 |  |  | 148 |  |  | 161 |
Variable lease cost |  | 35 |  |  | 35 |  |  | 42 |
Short-term lease cost |  | 4 |  |  | 2 |  |  | 3 |
Less: Sublease income |  | — |  |  | — |  |  | (6) |
Total lease cost |  | $ | 206 |  |  | $ | 207 |  |  | $ | 210 |
(1)Includes ROU lease expense of $119 million, $124 million and $134 million for fiscal 2024, 2023 and 2022, respectively. Lease costs and sublease income are included in “Cost of revenues” and “Selling, general and administrative expenses” within the consolidated statements of operations. Lease terms and discount rates related to leases were as follows:
|  | Year Ended
|  | January 3, 2025 |  | December 29, 2023 |  | December 30, 2022
Weighted-average remaining lease term (in years): |  |  |  |  |  |
Finance leases |  | 4.4 |  | 5.2 |  | 8.2
Operating leases |  | 9.9 |  | 7.3 |  | 7.5
Weighted-average discount rate: |  |  |  |  |  |
Finance leases |  | 4.7 | % |  | 4.8 | % |  | 2.6 | %
Operating leases |  | 4.5 | % |  | 3.7 | % |  | 3.3 | %
Other information related to leases was as follows:
|  | Year Ended
(in millions) |  | January 3, 2025 |  | December 29, 2023 |  | December 30, 2022
Cash paid for amounts included in measurement of lease liabilities: |  |  |  |  |  |
Operating cash related to finance leases |  | $ | 4 |  |  | $ | 4 |  |  | $ | 1 |
Operating cash related to operating leases |  | 163 |  |  | 167 |  |  | 168 |
Financing cash flows related to finance leases |  | 18 |  |  | 17 |  |  | 9 |
ROU assets obtained in exchange for lease liabilities: |  |  |  |  |  |
Finance lease liabilities |  | $ | — |  |  | $ | 63 |  |  | $ | 1 |
Operating lease liabilities |  | 236 |  |  | 97 |  |  | 122 |
The change in operating ROU assets and lease liabilities are presented within cash flows from operations on the consolidated statements of cash flows. Future minimum lease commitments of our finance and operating leases on an undiscounted basis, reconciled to the respective lease liability at January 3, 2025, were as follows:
Fiscal Year Ending (in millions) |  | Finance lease commitments |  | Operating lease commitments
2025 |  | $ | 22 |  |  | $ | 153 |
2026 |  | 22 |  |  | 117 |
2027 |  | 14 |  |  | 88 |
2028 |  | 5 |  |  | 88 |
2029 |  | 5 |  |  | 76 |
2030 and thereafter |  | 12 |  |  | 433 |
Total undiscounted cash flows |  | 80 |  |  | 955 |
Less: imputed interest |  | (7) |  |  | (211) |
Lease liability as of January 3, 2025 |  | $ | 73 |  |  | $ | 744 |
LESSOR As of January 3, 2025, and December 29, 2023, we had a total net investment in sales-type leases, which relates to lease payment receivables, of $94 million and $100 million, respectively. The current and non-current portions of net investment in sales-type leases are included within “Other current assets” and “Other long-term assets”, respectively, on the consolidated balance sheets. The components of lease income were as follows:
|  |  |  | Year Ended
(in millions) |  | Statement of operations line item |  | January 3, 2025 |  | December 29, 2023 |  | December 30, 2022
Sales-type leases: |  |  |  |  |  |  |  |
Selling price at lease commencement |  | Revenues |  | $ | 55 |  |  | $ | 51 |  |  | $ | 65 |
Cost of underlying asset |  | Cost of revenues |  | (40) |  |  | (41) |  |  | (52) |
Operating income |  |  |  | 15 |  |  | 10 |  |  | 13 |
Interest income on lease receivables |  | Revenues |  | 5 |  |  | 9 |  |  | 9 |
|  |  |  | 20 |  |  | 19 |  |  | 22 |
Operating lease income |  | Revenues |  | 26 |  |  | 39 |  |  | 35 |
Total lease income |  |  |  | $ | 46 |  |  | $ | 58 |  |  | $ | 57 |
As of January 3, 2025, undiscounted cash flows for sales-type and operating leases for the next five years are as follows:
Fiscal Year Ending (in millions) | Sales-type leases |  | Operating leases
2025 | $ | 43 |  |  | $ | 5 |
2026 | 32 |  |  | — |
2027 | 18 |  |  | — |
2028 | 4 |  |  | — |
2029 | 1 |  |  | — |
Total undiscounted cash flows | $ | 98 |  |  | $ | 5 |
Present value of lease payments as lease receivables | 94 |  |  |
Difference between undiscounted cash flows and discounted cash flows | $ | 4 |  |  |
Leases | Note 10—Leases LESSEE ROU assets and lease liabilities consisted of the following:
(in millions) |  | Balance sheet line item |  | January 3, 2025 |  | December 29, 2023
ROU assets: |  |  |  |  |  |
Finance leases |  | Property, plant and equipment, net |  | $ | 69 |  |  | $ | 89 |
Operating leases |  | Operating lease right-of-use assets, net |  | 560 |  |  | 512 |
|  |  |  | $ | 629 |  |  | $ | 601 |
Current lease liabilities: |  |  |  |  |  |
Finance leases |  | Short-term debt and current portion of long-term debt |  | $ | 19 |  |  | $ | 18 |
Operating leases |  | Accounts payable and accrued liabilities |  | 123 |  |  | 136 |
|  |  |  | $ | 142 |  |  | $ | 154 |
Non-current lease liabilities: |  |  |  |  |  |
Finance leases |  | Long-term debt, net of current portion |  | $ | 54 |  |  | $ | 73 |
Operating leases |  | Operating lease liabilities |  | 621 |  |  | 516 |
|  |  |  | $ | 675 |  |  | $ | 589 |
During fiscal 2024 and 2022, we reduced our leased space by exiting and consolidating underutilized buildings as part of an ongoing facility rationalization effort. We used discounted cash flow models to estimate the fair values of the affected assets and as a result, we recorded impairments of ROU and other assets in the amount of $11 million and $37 million for fiscal 2024 and 2022, respectively. The impairment charges were allocated across our reportable segments and to Corporate. In fiscal 2024, we took occupancy of our newly constructed facility in San Diego, CA. As a result we recorded $117 million of ROU assets and $169 million of lease liabilities. In fiscal 2022, the Company entered into a Master Lease Agreement whereby we agreed to lease two aircraft from the time each aircraft is accepted through June 30, 2027. In March 2023, we took possession of both aircraft and recognized a $64 million finance lease obligation and a corresponding ROU asset. Total lease cost for the periods presented consisted of the following:
|  | Year Ended
(in millions) |  | January 3, 2025 |  | December 29, 2023 |  | December 30, 2022
Finance lease cost: |  |  |  |  |  |
Amortization of ROU assets |  | $ | 20 |  |  | $ | 18 |  |  | $ | 9 |
Interest on lease liabilities |  | 4 |  |  | 4 |  |  | 1 |
|  | 24 |  |  | 22 |  |  | 10 |
Operating lease cost(1) |  | 143 |  |  | 148 |  |  | 161 |
Variable lease cost |  | 35 |  |  | 35 |  |  | 42 |
Short-term lease cost |  | 4 |  |  | 2 |  |  | 3 |
Less: Sublease income |  | — |  |  | — |  |  | (6) |
Total lease cost |  | $ | 206 |  |  | $ | 207 |  |  | $ | 210 |
(1)Includes ROU lease expense of $119 million, $124 million and $134 million for fiscal 2024, 2023 and 2022, respectively. Lease costs and sublease income are included in “Cost of revenues” and “Selling, general and administrative expenses” within the consolidated statements of operations. Lease terms and discount rates related to leases were as follows:
|  | Year Ended
|  | January 3, 2025 |  | December 29, 2023 |  | December 30, 2022
Weighted-average remaining lease term (in years): |  |  |  |  |  |
Finance leases |  | 4.4 |  | 5.2 |  | 8.2
Operating leases |  | 9.9 |  | 7.3 |  | 7.5
Weighted-average discount rate: |  |  |  |  |  |
Finance leases |  | 4.7 | % |  | 4.8 | % |  | 2.6 | %
Operating leases |  | 4.5 | % |  | 3.7 | % |  | 3.3 | %
Other information related to leases was as follows:
|  | Year Ended
(in millions) |  | January 3, 2025 |  | December 29, 2023 |  | December 30, 2022
Cash paid for amounts included in measurement of lease liabilities: |  |  |  |  |  |
Operating cash related to finance leases |  | $ | 4 |  |  | $ | 4 |  |  | $ | 1 |
Operating cash related to operating leases |  | 163 |  |  | 167 |  |  | 168 |
Financing cash flows related to finance leases |  | 18 |  |  | 17 |  |  | 9 |
ROU assets obtained in exchange for lease liabilities: |  |  |  |  |  |
Finance lease liabilities |  | $ | — |  |  | $ | 63 |  |  | $ | 1 |
Operating lease liabilities |  | 236 |  |  | 97 |  |  | 122 |
The change in operating ROU assets and lease liabilities are presented within cash flows from operations on the consolidated statements of cash flows. Future minimum lease commitments of our finance and operating leases on an undiscounted basis, reconciled to the respective lease liability at January 3, 2025, were as follows:
Fiscal Year Ending (in millions) |  | Finance lease commitments |  | Operating lease commitments
2025 |  | $ | 22 |  |  | $ | 153 |
2026 |  | 22 |  |  | 117 |
2027 |  | 14 |  |  | 88 |
2028 |  | 5 |  |  | 88 |
2029 |  | 5 |  |  | 76 |
2030 and thereafter |  | 12 |  |  | 433 |
Total undiscounted cash flows |  | 80 |  |  | 955 |
Less: imputed interest |  | (7) |  |  | (211) |
Lease liability as of January 3, 2025 |  | $ | 73 |  |  | $ | 744 |
LESSOR As of January 3, 2025, and December 29, 2023, we had a total net investment in sales-type leases, which relates to lease payment receivables, of $94 million and $100 million, respectively. The current and non-current portions of net investment in sales-type leases are included within “Other current assets” and “Other long-term assets”, respectively, on the consolidated balance sheets. The components of lease income were as follows:
|  |  |  | Year Ended
(in millions) |  | Statement of operations line item |  | January 3, 2025 |  | December 29, 2023 |  | December 30, 2022
Sales-type leases: |  |  |  |  |  |  |  |
Selling price at lease commencement |  | Revenues |  | $ | 55 |  |  | $ | 51 |  |  | $ | 65 |
Cost of underlying asset |  | Cost of revenues |  | (40) |  |  | (41) |  |  | (52) |
Operating income |  |  |  | 15 |  |  | 10 |  |  | 13 |
Interest income on lease receivables |  | Revenues |  | 5 |  |  | 9 |  |  | 9 |
|  |  |  | 20 |  |  | 19 |  |  | 22 |
Operating lease income |  | Revenues |  | 26 |  |  | 39 |  |  | 35 |
Total lease income |  |  |  | $ | 46 |  |  | $ | 58 |  |  | $ | 57 |
As of January 3, 2025, undiscounted cash flows for sales-type and operating leases for the next five years are as follows:
Fiscal Year Ending (in millions) | Sales-type leases |  | Operating leases
2025 | $ | 43 |  |  | $ | 5 |
2026 | 32 |  |  | — |
2027 | 18 |  |  | — |
2028 | 4 |  |  | — |
2029 | 1 |  |  | — |
Total undiscounted cash flows | $ | 98 |  |  | $ | 5 |
Present value of lease payments as lease receivables | 94 |  |  |
Difference between undiscounted cash flows and discounted cash flows | $ | 4 |  |  |

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