v3.26.3
Restructuring Expenses and Operating Model Optimization Initiatives (Tables)
 9 Months Ended
Sep. 27, 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 nine months ended September 28, 2025:

Fiscal Three Months EndedFiscal Nine Months Ended
(Dollars in Millions)
September 28, 2025September 28, 2025
Restructuring expenses$84 $204 
Cost of sales8 20 
Selling, general, and administrative expenses5 8 
Total pre-tax restructuring expenses and other charges$97 $232 
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 nine months ended September 27, 2026:

Fiscal Three Months EndedFiscal Nine Months Ended
(Dollars in Millions)September 27, 2026September 27, 2026
Restructuring expenses$33 $163 
Cost of sales6 20 
Selling, general, and administrative expenses2 5 
Total pre-tax restructuring expenses and other charges$41 $188 

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 nine months ended September 27, 2026, which also represents inception-to-date through September 27, 2026:

Fiscal Three Months EndedFiscal Nine Months Ended
(Dollars in Millions)September 27, 2026September 27, 2026
Employee-related costs(1)
$10 $87 
Information technology and project-related costs(2)
31 101 
Total pre-tax restructuring expenses and other charges
$41 $188 
(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 nine months ended September 27, 2026:

(Dollars in Millions)
Employee-Related Costs(1)
Information Technology and Project-Related Costs(2)
Total Accrued Costs
December 28, 2025$— $— $— 
Charges to earnings87 101 188 
Cash payments(65)(59)(124)
Non-cash charges— (4)(4)
September 27, 2026$22 $38 $60 
(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.