v3.26.1
Fair Value Measurements (Tables)
 6 Months Ended
Jun. 28, 2026
Fair Value Disclosures [Abstract]  
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis
The following fair value hierarchy table presents the components and classification of the Company’s financial assets and liabilities measured at fair value on a recurring basis as of June 28, 2026 and December 28, 2025:

June 28, 2026December 28, 2025
(Dollars in Millions)Carrying ValueLevel 1Level 2Level 3Carrying ValueLevel 1Level 2Level 3
Assets:
Forward foreign exchange contracts$67 $— $67 $— $73 $— $73 $— 
Cross currency swap contracts48 — 48 — 20 — 20 — 
Total assets$115 $— $115 $— $93 $— $93 $— 
Liabilities:
Forward foreign exchange contracts$(98)$— $(98)$— $(63)$— $(63)$— 
Cross currency swap contracts(37)— (37)— (111)— (111)— 
Total liabilities$(135)$— $(135)$— $(174)$— $(174)$— 
Net amount presented in Prepaid expenses and other receivables:$25 $— $25 $— $22 $— $22 $— 
Net amount presented in Accounts payable:$(47)$— $(47)$— $(59)$— $(59)$— 
Net amount presented in Other assets:$17 $— $17 $— $— $— $— $— 
Net amount presented in Other liabilities:$(15)$— $(15)$— $(44)$— $(44)$— 
Schedule of Notional Amounts of Outstanding Derivative Instruments
The following table sets forth the notional amounts of the Company’s outstanding derivative instruments as of June 28, 2026 and December 28, 2025:

June 28, 2026December 28, 2025
(Dollars in Millions)Forward Foreign Exchange ContractsCross Currency Swap ContractsTotal Notional AmountForward Foreign Exchange ContractsCross Currency Swap ContractsTotal Notional Amount
Cash flow hedges
$3,286 $— $3,286 $3,422 $— $3,422 
Fair value hedges$299 $— $299 $296 $— $296 
Net investment hedges$— $2,000 $2,000 $— $2,000 $2,000 
Undesignated hedging instruments$639 $— $639 $502 $— $502 
Summary of Derivative Activity
The following table summarizes the gains and losses recognized on forward foreign exchange contracts designated as cash flow hedges within Other comprehensive (loss) income and the gains and losses reclassified into earnings for the fiscal three and six months ended June 28, 2026 and June 29, 2025:

Fiscal Three Months EndedFiscal Six Months Ended
(Dollars in Millions)
June 28, 2026June 29, 2025June 28, 2026June 29, 2025
(Loss) gain recognized in Other comprehensive (loss) income$(18)$37 $(31)$31 
(Loss) gain reclassified from Other comprehensive (loss) income into earnings$(1)$17 $6 $13 

The following tables summarize the gains and losses reclassified from Other comprehensive (loss) income into earnings related to the forward foreign exchange contracts designated as cash flow hedges for the fiscal three and six months ended June 28, 2026 and June 29, 2025:

Fiscal Three Months Ended
June 28, 2026June 29, 2025
(Dollars in Millions)Net SalesCost of SalesOther Expense, NetNet SalesCost of SalesOther Expense, Net
Gain (loss) reclassified from Other comprehensive (loss) income into earnings$— $(1)$— $— $13 $4 

Fiscal Six Months Ended
June 28, 2026June 29, 2025
(Dollars in Millions)
Net Sales
Cost of Sales
Other Expense, Net
Net Sales
Cost of Sales
Other Expense, Net
Gain reclassified from Other comprehensive (loss) income into earnings$— $— $6 $— $2 $11 
The following table summarizes the gains and losses recognized within Other comprehensive (loss) income related to the cross currency swap contracts designated as net investment hedges for the fiscal three and six months ended June 28, 2026 and June 29, 2025:

Fiscal Three Months EndedFiscal Six Months Ended
(Dollars in Millions)
June 28, 2026June 29, 2025June 28, 2026June 29, 2025
Gain (loss) recognized in CTA within Other comprehensive (loss) income$24 $(123)$60 $(179)
The following table summarizes the gains and losses recognized within Other expense, net related to the undesignated forward foreign exchange contracts for the fiscal three and six months ended June 28, 2026 and June 29, 2025:

Fiscal Three Months EndedFiscal Six Months Ended
(Dollars in Millions)
June 28, 2026June 29, 2025June 28, 2026June 29, 2025
Gain recognized in Other expense, net$— $— $2 $—