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Income taxes (Tables)

12 Months Ended

Dec. 29, 2024

Income Tax Disclosure [Abstract]

Provision for Income Taxes

The provision for taxes on income on continuing operations consists of:

(Dollars in Millions)			2024						2023						2022
Currently payable:
U.S. taxes			$2,200						2,705						2,274
International taxes			2,604						3,090						2,295
Total currently payable			4,804						5,795						4,569
Deferred:
U.S. taxes			(2,539)						(3,440)						(1,990)
International taxes			356						(619)						410
Total deferred			(2,183)						(4,059)						(1,580)
Provision for taxes on income			$2,621						1,736						2,989

Comparison of Income Taxes at Statutory Rate and Company's Effective Tax Rate

A comparison of income tax expense at the U.S. statutory rate of 21% in fiscal years 2024, 2023 and 2022, to the Company’s effective tax rate is as follows:

(Dollars in Millions)			2024						2023						2022
U.S.			$(458)						(2,033)						4,606
International			17,145						17,095						14,753
Earnings before taxes on income:			$16,687						15,062						19,359
Tax rates:
U.S. statutory rate			21.0		%				21.0						21.0
International operations(1)			(5.2)						(8.1)						(5.0)
U.S. tax settlements			1.0						(3.0)						—
U.S. taxes on international income(2)			(2.6)						(0.3)						(1.1)
U.S. state taxes			1.5						1.0						0.3
Tax benefits on share-based compensation			(0.6)						(0.8)						(1.4)
All other			0.6						1.7						1.6
Effective Rate			15.7		%				11.5						15.4

(1)International operations reflect the impacts of operations in jurisdictions with statutory tax rates different than the U.S., particularly Ireland, Switzerland, and Belgium, which is a favorable impact on the effective tax rate as compared with the U.S. statutory rate.

(2)Includes the net impact of the GILTI tax, the Foreign-Derived Intangible Income deduction and other foreign income that is taxable under the U.S. tax code as well as related foreign tax credits.

Temporary Differences and Carryforwards

Temporary differences and carryforwards at the end of fiscal years 2024 and 2023 were as follows:

						2024 Deferred Tax												2023 Deferred Tax
(Dollars in Millions)						Asset						Liability						Asset						Liability
Employee related obligations						$372												586
Stock based compensation						717												686
Depreciation of property, plant and equipment												(833)												(902)
Goodwill and intangibles												(3,261)												(1,252)
R&D capitalized for tax						4,398												3,595
Reserves & liabilities						4,444												3,816
Inventory related						371												359
Operating loss carryforwards						2,298												2,145
Undistributed foreign earnings						1,931						(1,492)						1,801						(1,695)
Global intangible low-taxed income												(1,589)												(2,731)
Miscellaneous international						1,212												831
Miscellaneous U.S.						1,083																		(4)
Total deferred income taxes						16,826						(7,175)						13,819						(6,584)
Valuation allowances						(1,638)												(1,149)
Total deferred income taxes net of valuation allowances						15,188						(7,175)						12,670						(6,584)

Summary of Valuation Allowance

The following table summarizes the activity related to valuation allowances for continuing operations:

(Dollars in Millions)			2024						2023
Beginning of year			$1,149						775
Provision			451						355
Utilization			—						(116)
Foreign currency translation			(46)						25
Net acquisitions / (dispositions/liquidations)			84						110
End of year			$1,638						$1,149

Schedule of Unrecognized Tax Benefits Roll Forward

The following table summarizes the activity related to unrecognized tax benefits for continuing operations:

(Dollars in Millions)			2024						2023						2022
Beginning of year			$2,485						3,716						3,210
Increases related to current year tax positions			176						239						523
Increases related to prior period tax positions			129						244						143
Decreases related to prior period tax positions			(147)						(781)						(148)
Settlements			(583)						(880)						(1)
Lapse of statute of limitations			(40)						(53)						(11)
End of year			$2,020						2,485						3,716

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Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations.

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