INCOME TAXES (Notes)

9 Months Ended

Sep. 28, 2024

Income Tax Disclosure [Abstract]

Income Taxes

INCOME TAXES

The consolidated effective tax rate for the quarters ended September 28, 2024 and September 30, 2023 was 9% and 28%, respectively. The consolidated effective tax rate for the year-to-date periods ended September 28, 2024 and September 30, 2023 was 18% and 23%, respectively. The decrease 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. In addition, during the quarter ended September 30, 2023, the effective tax rate increased due to zero tax benefit recognized on the $113 million loss incurred on the divestiture of the Russia business. See additional disclosure within Note 5 Divestitures.

The Company’s total gross unrecognized tax benefits as of September 28, 2024 was $34 million. Of this balance, $29 million represents the amount that, if recognized, would affect the Company’s effective income tax rate in future periods.