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Income Taxes (Tables) | 12 Months Ended
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Dec. 28, 2025
Income Tax Disclosure [Abstract] |
Schedule of Income before Income Tax, Domestic and Foreign | Income before taxes was attributable to the following geographic regions for the fiscal twelve months ended December 28, 2025, December 29, 2024, and December 31, 2023:
|  |  |  |  |  | Fiscal Twelve Months Ended
(Dollars in Millions) |  |  |  |  |  | December 28, 2025 |  | December 29, 2024 |  | December 31, 2023
U.S. |  |  |  |  |  | $ | 585 |  |  | $ | 352 |  |  | $ | 825 |
International |  |  |  |  |  | 1,414 |  |  | 1,063 |  |  | 1,365 |
Income before taxes |  |  |  |  |  | $ | 1,999 |  |  | $ | 1,415 |  |  | $ | 2,190 |
Schedule of Components of Income Tax Expense (Benefit) | The Provision for taxes on income for the fiscal twelve months ended December 28, 2025, December 29, 2024, and December 31, 2023 consisted of:
|  |  |  |  |  | Fiscal Twelve Months Ended
(Dollars in Millions) |  |  |  |  |  | December 28, 2025 |  | December 29, 2024 |  | December 31, 2023
Current: |  |  |  |  |  |  |  |  |  |
U.S. taxes(1) |  |  |  |  |  | $ | 201 |  |  | $ | 287 |  |  | $ | 266 |
International taxes |  |  |  |  |  | 436 |  |  | 383 |  |  | 374 |
Total current taxes |  |  |  |  |  | 637 |  |  | 670 |  |  | 640 |
Deferred: |  |  |  |  |  |  |  |  |  |
U.S. taxes(2) |  |  |  |  |  | (90) |  |  | (178) |  |  | (39) |
International taxes |  |  |  |  |  | (18) |  |  | (107) |  |  | (75) |
Total deferred taxes |  |  |  |  |  | (108) |  |  | (285) |  |  | (114) |
Provision for taxes |  |  |  |  |  | $ | 529 |  |  | $ | 385 |  |  | $ | 526 |
(1) The current portion of the Provision for taxes includes $148 million for U.S. federal taxes and $53 million for U.S. state and local taxes for the fiscal twelve months ended December 28, 2025. (2) The deferred portion of the Provision for taxes includes $(50) million for U.S. federal taxes and $(40) million for U.S. state and local taxes for the fiscal twelve months ended December 28, 2025.
Schedule of Cash Flow, Supplemental Disclosures | Net cash paid for income taxes was attributable to the following jurisdictions in accordance with ASU 2023-09 for the fiscal twelve months ended December 28, 2025:
|  |  |  |  |  | Fiscal Twelve Months Ended
(Dollars in Millions) |  |  |  |  |  | December 28, 2025
U.S. federal |  |  |  |  |  | $ | 153 |
U.S. state and local |  |  |  |  |  | 88 |
International |  |  |  |  |  | 354 |
Total cash paid for income taxes, net of refunds(1)(2) |  |  |  |  |  | $ | 595 |
(1) Individual jurisdictions equaling 5% or more of the total cash paid for income taxes, net of refunds, includes U.S. federal at $153 million, India at $40 million, China at $32 million, and Sweden at $30 million. (2) Total cash paid for income taxes, net of refunds, includes payments to J&J under the Tax Matters Agreements (as defined in Note 12, “Relationship with J&J”) for income tax liabilities, which J&J has paid on the Company’s behalf post-Kenvue IPO to the tax authorities.
Schedule of Effective Income Tax Rate Reconciliation | A comparison of the Provision for taxes at the U.S. federal statutory rate of 21% to the Company’s effective tax rate in accordance with ASU 2023-09 in the fiscal twelve months ended December 28, 2025 was as follows:
|  |  |  |  |  | Fiscal Twelve Months Ended
|  |  |  |  |  | December 28, 2025
(Dollars in Millions) |  |  |  |  |  | Amount |  | Percent
U.S. federal statutory tax rate |  |  |  |  |  | $ | 420 |  |  | 21.0 | %
Effect of cross-border tax laws(1) |  |  |  |  |  | 7 |  |  | 0.4 |
Tax credits |  |  |  |  |  | (32) |  |  | (1.6) |
Nontaxable or nondeductible items |  |  |  |  |  | 3 |  |  | 0.1 |
Changes in valuation allowances |  |  |  |  |  | 3 |  |  | 0.1 |
Other adjustments |  |  |  |  |  | (4) |  |  | (0.2) |
State and local income taxes, net of federal income tax effect(2) |  |  |  |  |  | 10 |  |  | 0.5 |
Foreign tax effects(3) |  |  |  |  |  |  |  |
Switzerland |  |  |  |  |  |  |  |
Rate differential |  |  |  |  |  | (38) |  |  | (1.9) |
Other |  |  |  |  |  | 27 |  |  | 1.4 |
Other foreign jurisdictions |  |  |  |  |  | 88 |  |  | 4.4 |
Worldwide changes in unrecognized tax benefits(4) |  |  |  |  |  | 45 |  |  | 2.3 |
Effective tax rate |  |  |  |  |  | $ | 529 |  |  | 26.5 | %
(1) Effect of cross-border tax laws is presented net of related foreign tax credits. (2) State taxes in New York, Indiana, New Jersey, Maryland, Illinois, and Texas made up the majority (greater than 50%) of the tax effect in this category. (3) Foreign tax effects reflect the impacts of operations in jurisdictions with statutory tax rates that are different than the United States. For the fiscal twelve months ended December 28, 2025, the Company had operations in Singapore under various tax incentives. (4) Includes the effect of current year increases to unrecognized tax benefits. A comparison of the Provision for taxes at the U.S. federal statutory rate of 21% to the Company’s effective tax rate in the fiscal twelve months ended December 29, 2024 and December 31, 2023 was as follows:
|  |  |  |  |  |  |  | Fiscal Twelve Months Ended
|  |  |  |  |  |  |  | December 29, 2024 |  | December 31, 2023
Tax rates: |  |  |  |  |  |  |  |  |  |
U.S. federal statutory tax rate |  |  |  |  |  |  |  | 21.0 | % |  | 21.0 | %
U.S. taxes on international income(1) |  |  |  |  |  |  |  | 2.8 |  |  | (1.5) |
International operations(2) |  |  |  |  |  |  |  | 2.8 |  |  | 0.8 |
State |  |  |  |  |  |  |  | (0.4) |  |  | 2.0 |
Change in valuation allowance |  |  |  |  |  |  |  | 1.0 |  |  | 2.5 |
Tax shortfall (windfall) on stock-based compensation |  |  |  |  |  |  |  | 0.5 |  |  | (0.5) |
All other |  |  |  |  |  |  |  | (0.5) |  |  | (0.3) |
Effective tax rate |  |  |  |  |  |  |  | 27.2 | % |  | 24.0 | %
(1) Includes the impact of the tax on GILTI and other foreign income that is taxable under the U.S. tax code as well as tax implications of repatriating foreign earnings. (2) International operations reflect the impacts of operations in jurisdictions with statutory tax rates different than the United States. For each of the fiscal twelve months ended December 29, 2024 and December 31, 2023, the Company had operations in Singapore under various tax incentives. The Company’s largest international operations are in Canada, China, Japan, Singapore, and Switzerland. The amounts for the fiscal twelve months ended December 29, 2024 and December 31, 2023 include a $4 million net increase in uncertain tax benefits and a $46 million net reduction in uncertain tax benefits, respectively.
Schedule of Deferred Tax Assets and Liabilities | As of December 28, 2025 and December 29, 2024, temporary differences and carryforwards were as follows:
|  |  |  |  |  | December 28, 2025 |  | December 29, 2024
(Dollars in Millions) |  |  |  |  |  | Asset |  | Liability |  | Asset |  | Liability
Employee-related obligations |  |  |  |  |  | $ | 34 |  |  | $ | — |  |  | $ | 18 |  |  | $ | — |
Stock-based compensation |  |  |  |  |  | 63 |  |  | — |  |  | 70 |  |  | — |
Depreciation of property, plant, and equipment |  |  |  |  |  | 15 |  |  | — |  |  | 2 |  |  | — |
Goodwill and intangibles |  |  |  |  |  | — |  |  | (2,597) |  |  | — |  |  | (2,434) |
Reserves and liabilities |  |  |  |  |  | 120 |  |  | — |  |  | 110 |  |  | — |
Net operating loss (“NOL”) and tax credit carryforward |  |  |  |  |  | 178 |  |  | — |  |  | 122 |  |  | — |
Undistributed foreign earnings |  |  |  |  |  | — |  |  | (37) |  |  | 78 |  |  | (103) |
Miscellaneous international |  |  |  |  |  | 67 |  |  | — |  |  | 66 |  |  | — |
Research and development capitalized for tax |  |  |  |  |  | 82 |  |  | — |  |  | 94 |  |  | — |
Miscellaneous U.S. |  |  |  |  |  | 31 |  |  | — |  |  | — |  |  | (11) |
Subtotal |  |  |  |  |  | 590 |  |  | (2,634) |  |  | 560 |  |  | (2,548) |
Valuation allowance |  |  |  |  |  | (73) |  |  | — |  |  | (89) |  |  | — |
Total deferred income taxes |  |  |  |  |  | $ | 517 |  |  | $ | (2,634) |  |  | $ | 471 |  |  | $ | (2,548) |
Schedule of Unrecognized Tax Benefits Roll Forward | The following table summarizes the activity related to unrecognized tax benefits for the fiscal twelve months ended December 28, 2025, December 29, 2024, and December 31, 2023:
|  |  |  |  |  | Fiscal Twelve Months Ended
(Dollars in Millions) |  |  |  |  |  | December 28, 2025 |  | December 29, 2024 |  | December 31, 2023
Beginning of fiscal year |  |  |  |  |  | $ | 176 |  |  | $ | 185 |  |  | $ | 437 |
Increases related to current year tax positions |  |  |  |  |  | 24 |  |  | 21 |  |  | 26 |
Increases related to prior period tax positions |  |  |  |  |  | 3 |  |  | — |  |  | 3 |
Decreases related to prior period tax positions |  |  |  |  |  | — |  |  | (11) |  |  | (19) |
Settlements |  |  |  |  |  | (4) |  |  | — |  |  | — |
Lapse of statute of limitations |  |  |  |  |  | (5) |  |  | (19) |  |  | (42) |
Net decreases related to the Separation |  |  |  |  |  | — |  |  | — |  |  | (220) |
End of fiscal year |  |  |  |  |  | $ | 194 |  |  | $ | 176 |  |  | $ | 185 |

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