INVESTMENTS

3 Months Ended

Apr. 03, 2026

Investments, Debt and Equity Securities [Abstract]

Equity Securities

The carrying values of our equity securities were included in the following line items in our consolidated balance sheets (in millions):


	Fair Value with Changes Recognized in Income		Measurement Alternative — No Readily Determinable Fair Value
April 3, 2026

Marketable securities	$	484	$	—

Other noncurrent assets	2,397		43
Total equity securities	$	2,881	$	43
December 31, 2025

Marketable securities	$	489	$	—

Other noncurrent assets	2,100		44
Total equity securities	$	2,589	$	44

The calculation of net unrealized gains and losses recognized during the period related to equity securities still held at the end of the period is as follows (in millions):


	Three Months Ended
	April 3, 2026		March 28, 2025
Net gains (losses) recognized during the period related to equity securities	$	(17)	$	(15)
Less: Net gains (losses) recognized during the period related to equity securities sold during the period	16		8
Net unrealized gains (losses) recognized during the period related to equity securities still held at the end of the period	$	(33)	$	(23)

Debt Securities

Our debt securities consisted of the following (in millions):


			Gross Unrealized				Estimated Fair Value
	Cost		Gains		Losses
April 3, 2026
Trading securities	$	48	$	1	$	—	$	49
Available-for-sale securities1	2,639		20		(78)		2,581
Total debt securities	$	2,687	$	21	$	(78)	$	2,630
December 31, 2025
Trading securities	$	49	$	1	$	—	$	50
Available-for-sale securities1	1,816		23		(65)		1,774
Total debt securities	$	1,865	$	24	$	(65)	$	1,824

1 The estimated fair value as of April 3, 2026 includes $2,015 million of Brazilian government bonds with a cost of $2,075 million and gross unrealized losses of $60 million and, as of December 31, 2025, includes $1,207 million of Brazilian government bonds with a cost of $1,255 million, gross unrealized gains of $1 million and gross unrealized losses of $49 million.

The carrying values of our debt securities were included in the following line items in our consolidated balance sheets (in millions):


	April 3, 2026				December 31, 2025
	Trading Securities		Available-for-Sale Securities		Trading Securities		Available-for-Sale Securities

Marketable securities	$	49	$	2,204	$	50	$	1,395
Other noncurrent assets	—		377		—		379
Total debt securities	$	49	$	2,581	$	50	$	1,774

The contractual maturities of these available-for-sale debt securities as of April 3, 2026 were as follows (in millions):


	Cost		Estimated Fair Value
Within 1 year	$	363	$	363
After 1 year through 5 years	2,061		2,011
After 5 years through 10 years	39		44
After 10 years	176		163
Total	$	2,639	$	2,581

The Company expects that actual maturities may differ from the contractual maturities above because borrowers have the right to call or prepay certain obligations.

The sale and/or maturity of available-for-sale debt securities resulted in the following realized activity (in millions):


	Three Months Ended
		April 3, 2026		March 28, 2025
Gross gains		$	1	$	1
Gross losses		(1)		(2)
Proceeds		197		137

Captive Insurance Companies

In accordance with local insurance regulations, our consolidated captive insurance companies are required to meet and maintain minimum solvency capital requirements. The Company elected to invest a majority of its solvency capital in a portfolio of marketable equity and debt securities. These securities are included in the disclosures above. The Company uses one of our consolidated captive insurance companies to reinsure group annuity insurance contracts that cover the obligations of certain of our European and Canadian pension plans. This captive’s solvency capital funds included total equity and debt securities of $2,667 million and $2,356 million as of April 3, 2026 and December 31, 2025, respectively, which were classified in the line item other noncurrent assets in our consolidated balance sheets because the assets were not available to satisfy our current obligations.