v3.26.1
Taxes Based on Income
 6 Months Ended
Jun. 30, 2026
Income Tax Disclosure [Abstract]  
Taxes Based on Income Taxes Based on Income
The following table summarizes our income before taxes, provision for income taxes, and effective tax rate:
Three Months Ended Six Months Ended
(Dollars in millions)June 30, 2026June 28, 2025June 30, 2026June 28, 2025
Income before taxes$282.7 $255.5 $523.1 $482.5 
Provision for income taxes78.6 66.5 150.9 127.2 
Effective tax rate27.8 %26.0 %28.8 %26.4 %
Our provision for income taxes for the three and six months ended June 30, 2026 included a net tax charge related to the tax on recognition of foreign withholding taxes on current year earnings and the net controlled foreign corporation tested income of our foreign subsidiaries, partially offset by the benefit from foreign-derived deduction eligible income. Our provision for income taxes for the six months ended June 30, 2026 also included a net discrete charge from increases in tax reserves related to a court ruling in a foreign jurisdiction impacting tax group requirements.

Our provision for income taxes for the three and six months ended June 28, 2025 included a net tax charge related to the tax on global intangible low-taxed income of our foreign subsidiaries and the recognition of foreign withholding taxes on current year earnings, partially offset by the benefit from foreign-derived intangible income. Our provision for income taxes for these periods also included a discrete benefit from decreases in certain tax reserves, including interest and penalties, primarily as a result of closing tax years. In addition, our provision for income taxes for the six months ended June 28, 2025 included a discrete benefit from a favorable tax ruling in a foreign jurisdiction related to deductibility of interest expense.
The amount of income taxes we pay is subject to ongoing audits by taxing jurisdictions around the world. Our estimate of the potential outcome of any uncertain tax issue is subject to our assessment of the relevant risks, facts and circumstances existing at the time. We believe that we have adequately provided for reasonably foreseeable outcomes related to these matters. However, our future results may include favorable or unfavorable adjustments to our estimated tax liabilities in the period the assessments are made or resolved, which may impact our effective tax rate. The final determination of tax audits and any related legal proceedings could materially differ from the amounts currently reflected in our tax provision for income taxes and the related liabilities. We and our U.S. subsidiaries have completed the IRS Compliance Assurance Process through 2023. With limited exceptions, we are no longer subject to income tax examinations by tax authorities for years prior to 2010.