XML 22 R28.htm IDEA: XBRL DOCUMENT

LEASES (Tables)

9 Months Ended

Sep. 28, 2019

The components of lease expense were as follows:

	Third Quarter			Year-to-Date
(In millions)	2019			2019
Finance lease cost:
Amortization of right-of-use assets	$	5		$	13
Interest on lease liabilities		2			4
Operating lease cost		107			327
Short-term lease cost		2			5
Variable lease cost		27			92
Sublease income		(1	)		(2	)
Total lease cost	$	142		$	439

Supplemental Cash Flow Information Related to Leases

Supplemental cash flow information related to leases was as follows:

	Year-to-Date
(In millions)	2019
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from finance leases	$	4
Operating cash flows from operating leases		366
Financing cash flows from finance leases		16
Right-of-use assets obtained in exchange for new finance lease liabilities		21
Right-of-use assets obtained in exchange for new operating lease liabilities		211

Supplemental Balance Sheet Information Related to Leases

Supplemental balance sheet information related to leases was as follows:

	September 28,
(In millions, except lease term and discount rate)	2019
Property and equipment, net	$	51
Operating lease right-of-use assets		1,374
Accrued expenses and other current liabilities		368
Short-term borrowings and current maturities of long-term debt		18
Long-term debt, net of current maturities		59
Operating lease liabilities		1,181
Weighted-average remaining lease term – finance leases	5 years
Weighted-average remaining lease term – operating leases	5 years
Weighted-average discount rate – finance leases		6.4	%
Weighted-average discount rate – operating leases		6.8	%

Schedule of Maturities of Lease Liabilities Under Operating and Finance Leases

Maturities of lease liabilities as of September 28, 2019 were as follows:

	September 28, 2019
	Operating			Finance
(In millions)	Leases⁽¹⁾			Leases
2019 (excluding year-to-date 2019)	$	124		$	7
2020		442			21
2021		358			20
2022		289			16
2023		220			12
Thereafter		435			15
		1,868			91
Less imputed interest		(319	)		(14	)
Total	$	1,549		$	77

Reported as of September 28, 2019
Accrued expenses and other current liabilities	$	368		$	—
Short-term borrowings and current maturities of long-term debt		—			18
Long-term debt, net of current maturities		—			59
Operating lease liabilities		1,181			—
Total	$	1,549		$	77

(1)

Operating lease payments include $122 million related to options to extend lease terms that are reasonably certain of being exercised and exclude $3 million of legally binding lease payments for an additional operating lease signed but not yet commenced. This operating lease will commence in fiscal year 2020 with a lease term of 10 years.

Future Minimum Lease Payments due under Non-Cancelable Portions of Leases

The table below represents future minimum lease payments due under the non-cancelable portions of leases including facility leases that were accrued as store closure costs as of December 29, 2018. The table was updated from the version previously included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 29, 2018 within the Notes to Consolidated Financial Statements to adjust for certain inconsistencies that management identified in the first quarter of fiscal year 2019 during the implementation of ASC 842, Leases. Specifically, the Company corrected the schedule to include additional lease commitments for option periods at the time of execution as opposed to the original extension date.

	December 29,
(In millions)	2018
2019	$	466
2020		374
2021		285
2022		214
2023		144
Thereafter		235
		1,718
Less sublease income		(11	)
Total	$	1,707