v3.25.2
INCOME TAXES (Tables)
 12 Months Ended
Dec. 28, 2024
Income Tax Disclosure [Abstract]  
Schedule of Income before Income Tax and Provision for Income Taxes
The components of income before income taxes and the provision for income taxes were as follows:
202420232022
(millions)(Restated)
Income before income taxes
United States$80 $131 $(59)
Foreign16 17 33 
96 148 (26)
Income taxes
Currently payable
Federal27 28 — 
State6 4 4 
Foreign1 8 10 
34 40 14 
Deferred
Federal(13)(1)(14)
State(10)— (1)
Foreign4 (3)— 
(19)(4)(15)
Total income taxes$15 $36 $(1)
Schedule of Effective Income Tax Rate Reconciliation
The difference between the U.S. federal statutory tax rate and the Company’s effective income tax rate was:
202420232022
(Restated)
U.S. statutory income tax rate21.0 %21.0 %21.0 %
Foreign rates varying from U.S. statutory rate1.0 1.2 (9.5)
State income taxes, net of federal benefit (1)(5.4)2.7 (7.2)
Nondeductible Permanent Items3.5 1.1 (8.1)
Nondeductible spin costs— 1.3 — 
Inventory Donations (Sec. 170 (A))(1.0)(0.7)4.6 
Stock Options - Excess Benefit / Shortfall(0.5)0.2 3.1 
Credits(1.8)(1.8)5.2 
APB 23— — (1.8)
Other, net(0.4)(0.7)(1.6)
Effective income tax rate16.4 %24.3 %5.7 %
(1) During 2024 we recognized a $9.1 million reduction to certain deferred tax liabilities as result of changes to our legal and operational structure.
Schedule of Deferred Tax Assets and Liabilities
The following table provides an analysis of the Company’s deferred tax assets and liabilities as of year-end 2024 and 2023:
Deferred tax
assets		Deferred tax
liabilities
(millions)2024202320242023
Advertising and promotion-related1 4 — — 
Wages and payroll taxes14 8 — — 
Inventory valuation7 7 — — 
Employee benefits— — 36 36 
Operating loss, credit and other carryforwards— — — — 
Hedging transactions— — 2 — 
Depreciation and asset disposals— — 52 64 
Operating lease right-of-use assets— — 28 4 
Operating lease liabilities27 4 — — 
Trademarks and other intangibles— — 21 24 
Research and development capitalization6 2 — — 
Stock awards5 5 — — 
Other4 5 — — 
64 35 139 128 
Less valuation allowance— — — — 
Total deferred taxes$64 $35 $139 $128 
Net deferred tax asset (liability)$(75)$(93)
Classified in balance sheet as:
Other assets$8 $13 
Other liabilities(83)(106)
Net deferred tax asset (liability)$(75)$(93)
Schedule of Unrecognized Tax Benefits Roll Forward
Following is a reconciliation of the Company’s total gross unrecognized tax benefits as of the years-ended
December 28, 2024, December 30, 2023 and December 31, 2022.
(millions)202420232022
Balance at beginning of year$— $5 $5 
Tax positions related to current year:
Additions— — — 
Tax positions related to prior years:
Additions— — — 
Dispositions/Acquisitions— (5)— 
Settlements— — — 
Lapses in statutes of limitation— — — 
Balance at end of year$— $— $5