v3.25.0.1
Leases
 12 Months Ended
Jan. 03, 2025
Leases [Abstract]  
Leases
Note 10—Leases
LESSEE
ROU assets and lease liabilities consisted of the following:
(in millions)
Balance sheet line itemJanuary 3,
2025		December 29,
2023
ROU assets:
Finance leasesProperty, plant and equipment, net$69 $89 
Operating leasesOperating lease right-of-use assets, net560 512 
$629 $601 
Current lease liabilities:
Finance leasesShort-term debt and current portion of long-term debt$19 $18 
Operating leasesAccounts payable and accrued liabilities123 136 
$142 $154 
Non-current lease liabilities:
Finance leasesLong-term debt, net of current portion$54 $73 
Operating leasesOperating lease liabilities621 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 liabilities4 4 1 
24 22 10 
Operating lease cost(1)
143 148 161 
Variable lease cost35 35 42 
Short-term lease cost4 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 leases4.45.28.2
Operating leases9.97.37.5
Weighted-average discount rate:
Finance leases4.7 %4.8 %2.6 %
Operating leases4.5 %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 $1 
Operating cash related to operating leases163 167 168 
Financing cash flows related to finance leases18 17 9 
ROU assets obtained in exchange for lease liabilities:
Finance lease liabilities$— $63 $1 
Operating lease liabilities236 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 commitmentsOperating lease commitments
2025$22 $153 
202622 117 
202714 88 
20285 88 
20295 76 
2030 and thereafter12 433 
Total undiscounted cash flows80 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 itemJanuary 3,
2025		December 29,
2023		December 30,
2022
Sales-type leases:
Selling price at lease commencementRevenues$55 $51 $65 
Cost of underlying assetCost of revenues(40)(41)(52)
Operating income 15 10 13 
Interest income on lease receivablesRevenues5 9 9 
20 19 22 
Operating lease incomeRevenues26 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 leasesOperating leases
2025$43 $5 
202632 — 
202718 — 
20284 — 
20291 — 
Total undiscounted cash flows$98 $5 
Present value of lease payments as lease receivables94 
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 itemJanuary 3,
2025		December 29,
2023
ROU assets:
Finance leasesProperty, plant and equipment, net$69 $89 
Operating leasesOperating lease right-of-use assets, net560 512 
$629 $601 
Current lease liabilities:
Finance leasesShort-term debt and current portion of long-term debt$19 $18 
Operating leasesAccounts payable and accrued liabilities123 136 
$142 $154 
Non-current lease liabilities:
Finance leasesLong-term debt, net of current portion$54 $73 
Operating leasesOperating lease liabilities621 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 liabilities4 4 1 
24 22 10 
Operating lease cost(1)
143 148 161 
Variable lease cost35 35 42 
Short-term lease cost4 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 leases4.45.28.2
Operating leases9.97.37.5
Weighted-average discount rate:
Finance leases4.7 %4.8 %2.6 %
Operating leases4.5 %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 $1 
Operating cash related to operating leases163 167 168 
Financing cash flows related to finance leases18 17 9 
ROU assets obtained in exchange for lease liabilities:
Finance lease liabilities$— $63 $1 
Operating lease liabilities236 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 commitmentsOperating lease commitments
2025$22 $153 
202622 117 
202714 88 
20285 88 
20295 76 
2030 and thereafter12 433 
Total undiscounted cash flows80 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 itemJanuary 3,
2025		December 29,
2023		December 30,
2022
Sales-type leases:
Selling price at lease commencementRevenues$55 $51 $65 
Cost of underlying assetCost of revenues(40)(41)(52)
Operating income 15 10 13 
Interest income on lease receivablesRevenues5 9 9 
20 19 22 
Operating lease incomeRevenues26 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 leasesOperating leases
2025$43 $5 
202632 — 
202718 — 
20284 — 
20291 — 
Total undiscounted cash flows$98 $5 
Present value of lease payments as lease receivables94 
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 itemJanuary 3,
2025		December 29,
2023
ROU assets:
Finance leasesProperty, plant and equipment, net$69 $89 
Operating leasesOperating lease right-of-use assets, net560 512 
$629 $601 
Current lease liabilities:
Finance leasesShort-term debt and current portion of long-term debt$19 $18 
Operating leasesAccounts payable and accrued liabilities123 136 
$142 $154 
Non-current lease liabilities:
Finance leasesLong-term debt, net of current portion$54 $73 
Operating leasesOperating lease liabilities621 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 liabilities4 4 1 
24 22 10 
Operating lease cost(1)
143 148 161 
Variable lease cost35 35 42 
Short-term lease cost4 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 leases4.45.28.2
Operating leases9.97.37.5
Weighted-average discount rate:
Finance leases4.7 %4.8 %2.6 %
Operating leases4.5 %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 $1 
Operating cash related to operating leases163 167 168 
Financing cash flows related to finance leases18 17 9 
ROU assets obtained in exchange for lease liabilities:
Finance lease liabilities$— $63 $1 
Operating lease liabilities236 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 commitmentsOperating lease commitments
2025$22 $153 
202622 117 
202714 88 
20285 88 
20295 76 
2030 and thereafter12 433 
Total undiscounted cash flows80 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 itemJanuary 3,
2025		December 29,
2023		December 30,
2022
Sales-type leases:
Selling price at lease commencementRevenues$55 $51 $65 
Cost of underlying assetCost of revenues(40)(41)(52)
Operating income 15 10 13 
Interest income on lease receivablesRevenues5 9 9 
20 19 22 
Operating lease incomeRevenues26 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 leasesOperating leases
2025$43 $5 
202632 — 
202718 — 
20284 — 
20291 — 
Total undiscounted cash flows$98 $5 
Present value of lease payments as lease receivables94 
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 itemJanuary 3,
2025		December 29,
2023
ROU assets:
Finance leasesProperty, plant and equipment, net$69 $89 
Operating leasesOperating lease right-of-use assets, net560 512 
$629 $601 
Current lease liabilities:
Finance leasesShort-term debt and current portion of long-term debt$19 $18 
Operating leasesAccounts payable and accrued liabilities123 136 
$142 $154 
Non-current lease liabilities:
Finance leasesLong-term debt, net of current portion$54 $73 
Operating leasesOperating lease liabilities621 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 liabilities4 4 1 
24 22 10 
Operating lease cost(1)
143 148 161 
Variable lease cost35 35 42 
Short-term lease cost4 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 leases4.45.28.2
Operating leases9.97.37.5
Weighted-average discount rate:
Finance leases4.7 %4.8 %2.6 %
Operating leases4.5 %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 $1 
Operating cash related to operating leases163 167 168 
Financing cash flows related to finance leases18 17 9 
ROU assets obtained in exchange for lease liabilities:
Finance lease liabilities$— $63 $1 
Operating lease liabilities236 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 commitmentsOperating lease commitments
2025$22 $153 
202622 117 
202714 88 
20285 88 
20295 76 
2030 and thereafter12 433 
Total undiscounted cash flows80 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 itemJanuary 3,
2025		December 29,
2023		December 30,
2022
Sales-type leases:
Selling price at lease commencementRevenues$55 $51 $65 
Cost of underlying assetCost of revenues(40)(41)(52)
Operating income 15 10 13 
Interest income on lease receivablesRevenues5 9 9 
20 19 22 
Operating lease incomeRevenues26 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 leasesOperating leases
2025$43 $5 
202632 — 
202718 — 
20284 — 
20291 — 
Total undiscounted cash flows$98 $5 
Present value of lease payments as lease receivables94 
Difference between undiscounted cash flows and discounted cash flows$4