INCOME TAXES |
3 Months Ended |
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Apr. 03, 2026 | |
| Income Tax Disclosure [Abstract] | |
| INCOME TAXES | INCOME TAXES The Company recorded income taxes of $645 million (14.0% effective tax rate) and $722 million (17.8% effective tax rate) during the three months ended April 3, 2026 and March 28, 2025, respectively. The Company’s effective tax rates for the three months ended April 3, 2026 and March 28, 2025 vary from the statutory U.S. federal tax rate of 21.0%, primarily due to the tax impact of significant operating and nonoperating items, as described in Note 12, along with the tax benefits of having significant earnings generated outside of the United States and significant earnings generated in investments accounted for under the equity method, both of which are generally taxed at rates lower than the statutory U.S. federal tax rate. The Company’s effective tax rate for the three months ended April 3, 2026 included $279 million of net tax benefits related to various discrete tax items, including net interest income of $55 million related to the IRS Tax Litigation Deposit recorded in the line item income taxes in our consolidated statement of income, in accordance with our accounting policy, and a tax benefit of $194 million, primarily related to return to provision adjustments. The Company’s effective tax rate for the three months ended March 28, 2025 included $143 million of net tax benefits related to various discrete tax items, including net interest income of $53 million related to the IRS Tax Litigation Deposit recorded in the line item income taxes in our consolidated statement of income, in accordance with our accounting policy, and a tax benefit of $85 million related to a change in the Company’s indefinite reinvestment assertion for certain foreign entities. During the three months ended April 3, 2026, the Company invested $32 million in limited partnerships that receive tax credits and other tax benefits by constructing, owning and operating alternative energy generation facilities. During the three months ended April 3, 2026, the Company received tax credits and other income tax benefits of $3 million and recognized amortization expense of $2 million related to all of our investments of this nature. The amount of non-income tax-related activity and other returns related to these investments was not material during the three months ended April 3, 2026. During the three months ended March 28, 2025, the Company invested $30 million in limited partnerships that receive tax credits and other tax benefits by constructing, owning and operating alternative energy generation facilities. During the three months ended March 28, 2025, the Company received tax credits and other income tax benefits of $9 million and recognized amortization expense of $7 million related to all of our investments of this nature. The amount of non-income tax-related activity and other returns related to these investments was not material during the three months ended March 28, 2025. As of April 3, 2026 and December 31, 2025, the carrying values of these investments were $30 million and $32 million, respectively. The Company has no unfunded commitments related to these investments as of April 3, 2026. The Company recorded $32 million of unfunded commitments related to these investments in the line item accounts payable and accrued expenses in our consolidated balance sheet as of December 31, 2025. We are currently in litigation with the IRS for tax years 2007 through 2009. Refer to Note 9.
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