v3.26.1
Fair Value of Financial Instruments and Risk Management (Tables)
3 Months Ended
Apr. 03, 2026
Fair Value Disclosures [Abstract]  
Schedule of Carrying Values and Estimated Fair Values of Financial Instruments The carrying values and estimated fair values of our financial instruments that are not required to be recorded at fair value in our condensed consolidated balance sheets are provided in the following table.
April 3, 2026January 2, 2026
Dollars in millionsCarrying ValueFair ValueCarrying ValueFair Value
Liabilities (including current maturities):
Term Loan ALevel 2$977 $977 $989 $989 
Term Loan BLevel 2980 981 983 989 
Senior NotesLevel 2250 245 250 246 
RevolverLevel 2395 395 395 395 
Schedule of Changes in Fair Value of Balance Sheet Hedges
The following table summarizes the recognized changes in fair value of our balance sheet hedges and remeasurement of balance sheet positions. These amounts are recognized in our condensed consolidated statements of operations for the periods presented. The net of our changes in fair value of hedges and the remeasurement of our assets and liabilities is included in other non-operating income on our condensed consolidated statements of operations.
Three months ended
Dollars in millionsApril 3, 2026April 4, 2025
Balance Sheet Hedges - Fair Value$— $(2)
Balance Sheet Position - Remeasurement(1)
Net gain (loss)$$(3)
Schedule of Interest Rate Swaps
Our portfolio of interest rate swaps consists of the following:
Dollars in millionsNotional Amount at April 3, 2026*Pay Fixed Rate (Weighted Average)Receive Variable RateSettlement and Termination
March 2020 Interest Rate Swaps$400 0.89 %Term SOFRMonthly through January 2027
September 2022 Interest Rate Swaps$350 3.43 %Term SOFRMonthly through January 2027
March 2023 Interest Rate Swaps$205 3.61 %Term SOFRMonthly through January 2027
March 2023 Amortizing Interest Rate Swaps£102 3.81 %Term SONIAMonthly through November 2026
September 2024 Interest Rate Swaps$200 3.27 %Term SOFRMonthly through August 2027
April 2025 Interest Rate Swaps$270 3.39 %Term SOFRMonthly through August 2027
April 2025 Forward Interest Rate Swaps$150 3.38 %Term SOFRMonthly from August 2027 through December 2030
*Includes the April 2025 Forward Interest Rate Swaps that become effective August 14, 2027.
Schedule of Sale of Receivables - Third-party Financial Institutions
Activity for third-party financial institutions consisted of the following:
Three months ended
Dollars in millionsApril 3, 2026April 4, 2025
Beginning balance$65 $106 
Sale of receivables264 811 
Settlement of receivables(265)(812)
Cash collected, not yet remitted— (3)
Outstanding balances sold to financial institutions$64 $102