Accumulated Other Comprehensive Loss

9 Months Ended

Sep. 28, 2025

The following tables summarize the changes in the accumulated balances for each component of Accumulated other comprehensive loss during the fiscal three and nine months ended September 28, 2025 and September 29, 2024:


(Dollars in Millions)	Foreign Currency Translation		Employee Benefit Plans		Gain on Derivatives and Hedges(1)		Total Accumulated Other Comprehensive Loss
June 29, 2025	$	(4,975)	$	(138)	$	41	$	(5,072)
Other comprehensive (loss) income before reclassifications	(65)		—		9		(56)
Amounts reclassified to the Condensed Consolidated Statement of Operations	—		7		(9)		(2)
Net current period Other comprehensive (loss) income	(65)		7		—		(58)
September 28, 2025	$	(5,040)	$	(131)	$	41	$	(5,130)

June 30, 2024	$	(5,689)	$	(161)	$	15	$	(5,835)
Other comprehensive income (loss) before reclassifications	473		(8)		12		477
Amounts reclassified to the Condensed Consolidated Statement of Operations	—		1		(2)		(1)
Net current period Other comprehensive income (loss)	473		(7)		10		476
September 29, 2024	$	(5,216)	$	(168)	$	25	$	(5,359)

(1) For the fiscal three months ended September 28, 2025 and September 29, 2024, the Company recorded a total after-tax change in Accumulated other comprehensive loss of $0 million and $11 million, respectively, related to its cash flow hedge portfolio.


(Dollars in Millions)	Foreign Currency Translation		Employee Benefit Plans		Gain on Derivatives and Hedges(1)		Total Accumulated Other Comprehensive Loss
December 29, 2024	$	(6,040)	$	(130)	$	24	$	(6,146)
Other comprehensive income (loss) before reclassifications	1,000		(10)		41		1,031
Amounts reclassified to the Condensed Consolidated Statement of Operations	—		9		(24)		(15)
Net current period Other comprehensive income (loss)	1,000		(1)		17		1,016
September 28, 2025	$	(5,040)	$	(131)	$	41	$	(5,130)

December 31, 2023	$	(5,257)	$	(167)	$	47	$	(5,377)
Other comprehensive income (loss) before reclassifications	41		(4)		(12)		25
Amounts reclassified to the Condensed Consolidated Statement of Operations	—		3		(10)		(7)
Net current period Other comprehensive income (loss)	41		(1)		(22)		18
September 29, 2024	$	(5,216)	$	(168)	$	25	$	(5,359)

(1) For the fiscal nine months ended September 28, 2025 and September 29, 2024, the Company recorded a total after-tax change in Accumulated other comprehensive loss of $17 million and $(22) million, respectively, related to its cash flow hedge portfolio.

Amounts in Accumulated other comprehensive loss are presented net of the related tax impact. Foreign currency translation is not adjusted for income taxes where it relates to permanent investments in international operations. For additional details on comprehensive income, see the Condensed Consolidated Statements of Comprehensive Income.

The provision (benefit) for taxes allocated to the components of Accumulated other comprehensive loss before reclassification for the fiscal three and nine months ended September 28, 2025 and September 29, 2024 was as follows:


	Fiscal Three Months Ended				Fiscal Nine Months Ended
(Dollars in Millions)	September 28, 2025		September 29, 2024		September 28, 2025		September 29, 2024
Foreign currency translation	$	8	$	(7)	$	(15)	$	(12)
Employee benefit plans	1		—		(3)		—
Gain on derivatives and hedges	2		—		8		11

Total provision (benefit) for taxes recognized in Accumulated other comprehensive loss	$	11	$	(7)	$	(10)	$	(1)

The provision (benefit) for taxes allocated to the reclassifications from Accumulated other comprehensive loss to the Condensed Consolidated Statements of Operations was not significant for the fiscal three and nine months ended September 28, 2025 and September 29, 2024.