Description of the Company and Summary of Significant Accounting Policies (Tables)

6 Months Ended

Jul. 02, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Trade Receivable and Allowance for Credit Losses

(Dollars in Millions)	2022		2021		2020
Allowance for credit losses, beginning of period	$	(32)	$	(37)	$	(35)
Provision	(9)		(4)		(9)
Utilization	5		8		6
Currency translation adjustment	1		1		1
Allowance for credit losses, end of period	$	(35)	$	(32)	$	(37)

Property, Plant and Equipment

Property, plant and equipment are stated at cost less accumulated depreciation. The Company utilizes the straight-line method of depreciation over the estimated useful lives.

Building and building equipment	20 - 30 years
Land and leasehold improvements	10 - 20 years
Machinery and equipment	2 - 13 years
Software	3 - 8 years

At the end of fiscal years 2022 and 2021, property, plant and equipment at cost and accumulated depreciation were:

(Dollars in Millions)	2022		2021
Machinery and equipment	$	2,280	$	2,416
Buildings and building equipment	1,709		1,744
Software	1,329		1,303
Construction in progress	307		228
Land and land improvements	75		79
Total property, plant and equipment, gross	$	5,700	$	5,770
Less: accumulated depreciation	(3,880)		(3,943)
Total property, plant and equipment, net	$	1,820	$	1,827

Schedule of Lease Maturity

The estimated operating lease future payments before tax for the five succeeding years and thereafter is approximately:

(Dollars in Millions)
2023	$	31
2024	25
2025	14
2026	12
2027	9
Thereafter	63
Total	154
Less: Imputed Interest	(38)
Total current and non-current lease liability	$	116