v3.25.2
INCOME TAXES
 6 Months Ended
Jun. 27, 2025
Income Tax Disclosure [Abstract]  
INCOME TAXES
NOTE F: INCOME TAXES
 Second QuarterYear to Date
(In millions)2025202420252024
 
Income tax expense$(66)$(23)$(139)$(28)
Effective tax rate (“ETR”)(1)
12.6 %5.9 %14.1 %4.1 %
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(1)Does not reflect impacts of the new tax legislation included in Congress’ reconciliation package, which was enacted on July 4, 2025, subsequent to the end of second quarter 2025. See Note Q: Subsequent Events in these Notes for further information.
Second quarter 2025 ETR benefited from favorable impacts of resolution of audit uncertainties, research and development (“R&D”) credits and tax deductions for foreign derived intangible income (“FDII”), partially offset by unfavorable impacts from a state legislative change that required us to establish a valuation allowance on R&D credit carryforwards and the CAS disposal group divestiture. Second quarter 2024 ETR benefited from favorable impacts of R&D credits, resolution of audit uncertainties and tax deductions for FDII.
Year to date 2025 and 2024 ETR both benefited from favorable impacts of R&D credits, resolution of audit uncertainties and tax deductions for FDII. Year to date 2024 ETR further benefited from the favorable impact of excess tax benefits from equity-based compensation, while our year to date 2025 ETR was unfavorably impacted by the CAS disposal group divestiture and a state legislative change that required us to establish a valuation allowance on R&D credit carryforwards.