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INCOME TAXES
 9 Months Ended
Sep. 26, 2025
Income Tax Disclosure [Abstract]  
INCOME TAXES INCOME TAXES
The Company recorded income taxes of $500 million (11.9% effective tax rate) and $530 million (15.7% effective tax rate) during the three months ended September 26, 2025 and September 27, 2024, respectively. The Company recorded income taxes of $2,215 million (17.0% effective tax rate) and $1,844 million (17.9% effective tax rate) during the nine months ended September 26, 2025 and September 27, 2024, respectively.
The Company’s effective tax rates for the three and nine months ended September 26, 2025 and September 27, 2024 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 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.
The Company’s effective tax rates for the three and nine months ended September 27, 2024 included $45 million of net tax benefit and $15 million of net tax expense, respectively, related to various discrete tax items, including the resolution of certain foreign tax matters, certain return to provision adjustments and the net tax impact of agreed-upon audit issues.
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.
During the nine months ended September 27, 2024, the Company invested $114 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 27, 2024, the Company received tax credits and other income tax benefits of $74 million and
recognized amortization expense of $70 million 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 27, 2024.
As of September 26, 2025 and December 31, 2024, the carrying value of these investments was $37 million and $41 million, respectively. The Company has no unfunded commitments related to these investments as of September 26, 2025. The Company recorded $123 million of unfunded commitments related to these investments in the line item accounts payable and accrued expenses in our consolidated balance sheet as of December 31, 2024.
We are currently in litigation with the IRS for tax years 2007 through 2009. Refer to Note 9.