The changes in each component of AOCI during the six months ended July 4, 2026 and June 28, 2025 were as follows (in millions): | | | | | | | | | | | | | | | | | | | | | | | | | Unrealized gain (loss) on sales hedging | | | | Foreign currency translation adjustments | | Total | | Balance at December 31, 2024 | | $ | 22 | | | | | $ | (66) | | | $ | (44) | | | Other comprehensive (loss) income before reclassifications | | (85) | | | | | 27 | | | (58) | | Amounts reclassified from AOCI(1) | | 4 | | | | | — | | | 4 | | | Tax effect | | 20 | | | | | — | | | 20 | | | Other comprehensive (loss) income, net of tax | | (61) | | | | | 27 | | | (34) | | | Balance at June 28, 2025 | | $ | (39) | | | | | $ | (39) | | | $ | (78) | | | | | | | | | | | | Balance at December 31, 2025 | | $ | (4) | | | | | $ | (14) | | | $ | (18) | | | Other comprehensive income (loss) before reclassifications | | 17 | | | | | (37) | | | (20) | | Amounts reclassified from AOCI(1) | | 5 | | | | | — | | | 5 | | | Tax effect | | (5) | | | | | — | | | (5) | | | Other comprehensive income (loss), net of tax | | 17 | | | | | (37) | | | (20) | | | Balance at July 4, 2026 | | $ | 13 | | | | | $ | (51) | | | $ | (38) | |
(1) See Note 9, Derivative Instruments regarding the timing of reclassifications to operating results.
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