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Leases | 6 Months Ended
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Jun. 29, 2024
Leases [Abstract] |
Leases | Leases We primarily lease certain manufacturing plants, offices, warehouses, training and service centers at various locations worldwide that are classified as either operating or finance leases. Our leases have remaining lease terms up to 25 years, which include options to extend the lease term for periods up to 20 years when it is reasonably certain the option will be exercised. Operating lease cost totaled $18 million and $17 million in the second quarter of 2024 and 2023, respectively, and $36 million and $34 million in the first half of 2024 and 2023, respectively. Finance lease, variable and short-term lease costs were not significant. Cash paid for operating leases totaled $36 million and $34 million in the first half of 2024 and 2023, respectively, and is classified in cash flows from operating activities. Noncash transaction related to operating leases totaled $28 million and $24 million in the first half of 2024 and 2023, respectively, reflecting new or extended leases. In the second quarter of 2024, non-cash transactions also reflected the recognition of a $72 million asset and liability related to a new finance lease. Cash paid for finance leases was not significant. Balance sheet and other information related to our leases is as follows:
(Dollars in millions) | June 29, 2024 | December 30, 2023
Operating leases: |  |
Other assets | $ | 370 | $ | 371
Other current liabilities | 57 | 55
Other liabilities | 323 | 326
Weighted-average remaining lease term (in years) | 10.0 | 10.3
Weighted-average discount rate | 4.74% | 4.70%
Finance leases: |  |
Property, plant and equipment, less accumulated amortization of $7 million and $8 million, respectively | $ | 89 | $ | 20
Current portion of long-term debt | 1 | 1
Long-term debt | 88 | 22
Weighted-average remaining lease term (in years) | 5.4 | 14.9
Weighted-average discount rate | 6.45% | 4.55%
Leases | Leases We primarily lease certain manufacturing plants, offices, warehouses, training and service centers at various locations worldwide that are classified as either operating or finance leases. Our leases have remaining lease terms up to 25 years, which include options to extend the lease term for periods up to 20 years when it is reasonably certain the option will be exercised. Operating lease cost totaled $18 million and $17 million in the second quarter of 2024 and 2023, respectively, and $36 million and $34 million in the first half of 2024 and 2023, respectively. Finance lease, variable and short-term lease costs were not significant. Cash paid for operating leases totaled $36 million and $34 million in the first half of 2024 and 2023, respectively, and is classified in cash flows from operating activities. Noncash transaction related to operating leases totaled $28 million and $24 million in the first half of 2024 and 2023, respectively, reflecting new or extended leases. In the second quarter of 2024, non-cash transactions also reflected the recognition of a $72 million asset and liability related to a new finance lease. Cash paid for finance leases was not significant. Balance sheet and other information related to our leases is as follows:
(Dollars in millions) | June 29, 2024 | December 30, 2023
Operating leases: |  |
Other assets | $ | 370 | $ | 371
Other current liabilities | 57 | 55
Other liabilities | 323 | 326
Weighted-average remaining lease term (in years) | 10.0 | 10.3
Weighted-average discount rate | 4.74% | 4.70%
Finance leases: |  |
Property, plant and equipment, less accumulated amortization of $7 million and $8 million, respectively | $ | 89 | $ | 20
Current portion of long-term debt | 1 | 1
Long-term debt | 88 | 22
Weighted-average remaining lease term (in years) | 5.4 | 14.9
Weighted-average discount rate | 6.45% | 4.55%
Maturities of our lease liabilities at June 29, 2024 are as follows:
(In millions) | Operating Leases | Finance Leases
2024 | $ | 37 | $ | 3
2025 | 67 | 7
2026 | 52 | 7
2027 | 45 | 6
2028 | 42 | 74
Thereafter | 243 | 16
Total lease payments | 486 | 113
Less: interest | (106) | (24)
Total lease liabilities | $ | 380 | $ | 89

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