Income Taxes

9 Months Ended

Sep. 30, 2023

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

The Company’s tax (benefit) provision is comprised of the most recent estimated annual effective tax rate applied to year-to-date ordinary (loss) income before taxes. The tax impacts of unusual or infrequently occurring items, including changes in judgment about valuation allowances and effects of changes in tax laws or rates, are recorded discretely in the interim period in which they occur.

Income tax benefit was $152 million for the three months ended September 30, 2023 compared to an income tax expense of $14 million for the three months ended September 24, 2022. The effective income tax rate for the three months ended September 30, 2023 was 16.0% compared to 27.4% for the three months ended September 24, 2022. The net decrease in income tax expense and effective tax rate was primarily driven by the impairments recorded for the three months ended September 30, 2023.

Income tax benefit was $121 million for the nine months ended September 30, 2023 compared to an income tax expense of $9 million for the nine months ended September 24, 2022. The effective income tax rate for the nine months ended September 30, 2023 was 14.1% compared to 35.3% for the nine months ended September 24, 2022. The net decrease in income tax expense and effective tax rate was primarily driven by the increased impairments recorded for the nine months ended September 30, 2023.