INCOME TAXES (Notes)

9 Months Ended

Sep. 27, 2025

Income Tax Disclosure [Abstract]

Income Taxes

INCOME TAXES

The consolidated effective tax rate for the quarters ended September 27, 2025 and September 28, 2024 was 22% and 9%, respectively. The effective tax rate for the year-to-date periods ended September 27, 2025 and September 28, 2024 was 21% and 18%, respectively. The increase in the consolidated effective tax rate from the prior year quarter and year-to-date period is due to the recognition of a $41 million domestic tax benefit during the third quarter of 2024 for the excess of tax basis over book on the Company's investment in a subsidiary.

The Company’s total gross unrecognized tax benefits as of September 27, 2025 was $36 million. Of this balance, $31 million represents the amount that, if recognized, would affect the Company’s effective income tax rate in future periods.

On July 4, 2025, the One Big Beautiful Bill Act (the “Act”) was enacted. The Act provides for several corporate tax changes including, but not limited to, restoring full expensing of domestic research and development costs, restoring immediate deductibility of certain capital expenditures, and changes in the computations of U.S. taxation on international earnings. The Company does not expect the new provisions of the Act to have a material impact to tax expense and cash flows for 2025.