INCOME TAXES |
9 Months Ended |
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Oct. 02, 2026 | |
| Income Tax Disclosure [Abstract] | |
| INCOME TAXES | INCOME TAXES The Company recorded income taxes of $777 million (16.1% effective tax rate) and $500 million (11.9% effective tax rate) during the three months ended October 2, 2026 and September 26, 2025, respectively. The Company recorded income taxes of $2,459 million (16.5% effective tax rate) and $2,215 million (17.0% effective tax rate) during the nine months ended October 2, 2026 and September 26, 2025, respectively. The Company’s effective tax rates for the three and nine months ended October 2, 2026 and September 26, 2025 vary from the statutory U.S. federal tax rate of 21.0%, primarily due to the tax impact of significant operating and nonoperating items, as described in Note 12, along with the tax benefits of having significant earnings generated outside of the United States and significant earnings generated in investments accounted for under the equity method, both of which are generally taxed at rates lower than the statutory U.S. federal tax rate. The Company’s effective tax rates for the three and nine months ended October 2, 2026 included $172 million and $491 million, respectively, of net tax benefits related to various discrete tax items, including net interest income of $57 million and $155 million, respectively, related to the IRS Tax Litigation Deposit recorded in the line item income taxes in our consolidated statements of income, in accordance with our accounting policy. The Company’s effective tax rates for the three and nine months ended October 2, 2026 also included net tax benefits of $117 million and $298 million, respectively, primarily related to return to provision adjustments. The Company’s effective tax rates for the three and nine months ended September 26, 2025 included $442 million and $597 million, respectively, of net tax benefits related to various discrete tax items, including net interest income of $55 million and $162 million, respectively, related to the IRS Tax Litigation Deposit recorded in the line item income taxes in our consolidated statements of income, in accordance with our accounting policy. Also included were tax benefits of $258 million and $344 million, respectively, related to changes in the Company’s indefinite reinvestment assertion and reassessments of the realizability of deferred tax assets for certain foreign entities. During the nine months ended October 2, 2026, the Company invested $75 million in limited partnerships that receive tax credits and other tax benefits by constructing, owning and operating alternative energy generation facilities. During the three and nine months ended October 2, 2026, the Company received tax credits and other income tax benefits of $193 million and $198 million, respectively, and recognized amortization expense of $176 million and $180 million, respectively, related to all of our investments of this nature. The amount of non-income tax-related activity and other returns related to these investments was not material during the three and nine months ended October 2, 2026. During the nine months ended September 26, 2025, the Company invested $271 million in limited partnerships that receive tax credits and other tax benefits by constructing, owning and operating alternative energy generation facilities. During the three and nine months ended September 26, 2025, the Company received tax credits and other income tax benefits of $13 million and $168 million, respectively, and recognized amortization expense of $11 million and $153 million, respectively, related to all of our investments of this nature. The amount of non-income tax-related activity and other returns related to these investments was not material during the three and nine months ended September 26, 2025. As of October 2, 2026 and December 31, 2025, the carrying values of these investments were $70 million and $32 million, respectively. The Company recorded $174 million and $32 million of unfunded commitments related to these investments in the line item accounts payable and accrued expenses in our consolidated balance sheets as of October 2, 2026 and December 31, 2025, respectively. We are currently in litigation with the IRS for tax years 2007 through 2009. Refer to Note 9.
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