v3.26.1
Restructuring Expenses and Operating Model Optimization Initiatives (Tables)
 6 Months Ended
Jun. 28, 2026
Restructuring and Related Activities [Abstract]  
Restructuring and Related Costs
The following table summarizes the classification of pre-tax restructuring expenses and other charges incurred related to the 2024 Multi-Year Restructuring Initiative during the fiscal three and six months ended June 29, 2025:

Fiscal Three Months EndedFiscal Six Months Ended
(Dollars in Millions)
June 29, 2025June 29, 2025
Restructuring expenses$60 $120 
Cost of sales6 12 
Selling, general, and administrative expenses2 3 
Total pre-tax restructuring expenses and other charges$68 $135 
The following table summarizes the classification of pre-tax restructuring expenses and other charges incurred related to the 2026 Restructuring Initiative during the fiscal three and six months ended June 28, 2026:

Fiscal Three Months EndedFiscal Six Months Ended
(Dollars in Millions)June 28, 2026June 28, 2026
Restructuring expenses$59 $130 
Cost of sales9 14 
Selling, general, and administrative expenses1 3 
Total pre-tax restructuring expenses and other charges$69 $147 

The following table summarizes the pre-tax restructuring expenses and other charges incurred by cost type related to the 2026 Restructuring Initiative during the fiscal three and six months ended June 28, 2026, which also represents inception-to-date through June 28, 2026:

Fiscal Three Months EndedFiscal Six Months Ended
(Dollars in Millions)June 28, 2026June 28, 2026
Employee-related costs(1)
$29 $77 
Information technology and project-related costs(2)
40 70 
Total pre-tax restructuring expenses and other charges
$69 $147 
(1) Employee-related costs primarily include severance and other termination benefits.
(2) Information technology and project-related costs primarily include advisory costs to operationalize the initiative.
Schedule of Restructuring Reserve
The following table summarizes the activity related to accrued restructuring expenses and other charges for the 2026 Restructuring Initiative during the fiscal six months ended June 28, 2026:

(Dollars in Millions)
Employee-Related Costs(1)
Information Technology and Project-Related Costs(2)
Total Accrued Costs
December 28, 2025$— $— $— 
Charges to earnings77 70 147 
Cash payments(43)(43)(86)
Non-cash charges— (2)(2)
June 28, 2026$34 $25 $59 
(1) Employee-related costs primarily include severance and other termination benefits.
(2) Information technology and project-related costs primarily include advisory costs to operationalize the initiative.