v3.26.3
Income Taxes
 9 Months Ended
Sep. 26, 2026
Income Taxes [Abstract]  
Income Taxes
Note 8 – Income Taxes
For the three months ended September 26, 2026, our effective tax rate was
23.1
%, compared to
21.3
% for the prior
year period.
The difference between our effective and federal statutory tax rates primarily relates to state and
foreign income taxes and interest expense.
For the three months ended September 27, 2025, the difference was
further impacted by the tax treatment associated with the acquisition
of a controlling interest of a previously held
non-controlling equity investment.
For the nine months ended September 26, 2026, our effective tax rate was
24.5
% compared to
23.5
% for the prior
year period.
The difference between our effective and federal statutory tax rates primarily relates to
state and
foreign income taxes and interest expense.
For the nine months ended September 27, 2025, the difference was
further impacted by the tax treatment associated with the acquisition
of a controlling interest of a previously held
non-controlling equity investment.
The total amount of unrecognized tax benefits, which are included in
“other liabilities” within our condensed
consolidated balance sheets, as of September 26, 2026 and December 27,
2025 was $
90
million and $
112
million,
respectively, of which $
83
million and $
104
million, respectively, would affect the effective tax rate if recognized.
All tax returns audited by the IRS are officially closed through 2022.
The tax years subject to examination by the
IRS include years 2023 and forward.
In addition, limited positions reported in the 2017 tax year are subject
to IRS
examination.
During the three months ended September 26, 2026 and September 27, 2025,
the amount of tax interest
income/(expense) included as a component of the provision for taxes was
$
1
million and $
(2)
million, respectively.
During the nine months ended September 26, 2026 and September 27, 2025,
the amount of tax interest
income/(expense) included as a component of the provision for taxes was
$
3
million and $
(3)
million, respectively.
The total amount of accrued interest is included in other liabilities within our condensed
consolidated balance
sheets, and was $
18
million as of September 26, 2026 and $
22
million as of December 27, 2025.
The amount of
penalties accrued for during the periods presented was not material to our
condensed consolidated financial
statements.