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Description of the Company and Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 28, 2025

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Trade Receivable and Allowance for Credit Losses

The following table summarizes the activity related to the allowance for credit losses during 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
Allowance for credit losses, beginning of fiscal year	$	(26)	$	(25)	$	(35)
Provision	(11)		(6)		(4)
Utilization	12		4		14
Currency translation	(1)		1		—
Allowance for credit losses, end of fiscal year	$	(26)	$	(26)	$	(25)

Property, Plant and Equipment

Property, plant, and equipment are stated at cost less accumulated depreciation. The Company utilizes the straight-line method of depreciation over the estimated useful lives. The following table summarizes the approximate ranges for estimated useful lives as of December 28, 2025:


Machinery and equipment						2 – 13 years
Buildings and building equipment						20 – 40 years
Software						3 – 15 years
Land improvements						10 – 20 years

As of December 28, 2025 and December 29, 2024, property, plant, and equipment at cost and the related accumulated depreciation were:


(Dollars in Millions)	December 28, 2025		December 29, 2024
Machinery and equipment	$	2,496	$	2,250
Buildings and building equipment	1,853		1,599
Software	227		102
Construction in progress	595		542
Land and land improvements	60		57
Total property, plant, and equipment, gross	5,231		4,550
Less: accumulated depreciation	(3,019)		(2,701)
Total property, plant, and equipment, net(1)	$	2,212	$	1,849

(1) As of December 29, 2024, the Consolidated Balance Sheet reflects an adjustment for a change in classification from Property, plant, and equipment, net of $288 million to Other assets and Additional paid-in capital of $169 million and $84 million, respectively, related to certain cloud computing arrangements, net of amortization of $35 million. The Company concluded that this adjustment was not material to the Consolidated Financial Statements for the prior period.

Depreciation expense for the fiscal twelve months ended December 28, 2025, December 29, 2024, and December 31, 2023 was as follows:


	Fiscal Twelve Months Ended
(Dollars in Millions)	December 28, 2025		December 29, 2024		December 31, 2023
Depreciation expense(1)	$	300	$	353	$	305

(1) Depreciation for the fiscal twelve months ended December 28, 2025 and December 29, 2024 includes $99 million and $145 million, respectively, of amortization of integration and development costs capitalized in connection with cloud computing arrangements, as discussed in “—Cloud Computing Arrangements” above. See “—Property, Plant, and Equipment” above for information related to cloud computing arrangements for the fiscal twelve months ended December 31, 2023.

Details of Impairment of Long-Lived Assets by Asset

Impairment charges for the fiscal twelve months ended December 28, 2025 and December 29, 2024 consisted of:


	Fiscal Twelve Months Ended
(Dollars in Millions)		December 28, 2025		December 29, 2024
Dr.Ci:Labo® asset impairment(1)		$	—	$	488
Skillman fixed asset impairment(2)		—		68
Other asset impairment(3)		23		22
Total impairment charges		$	23	$	578

(1) Represents the impairment charge recognized during the fiscal three months ended June 30, 2024 in relation to Dr.Ci:Labo® long-lived assets. See “—Dr.Ci:Labo® Asset Impairment” below and Note 4, “Intangible Assets and Goodwill,” for more information.

(2) Represents the impairment charge recorded during the fiscal three months ended March 31, 2024 on the held for sale asset associated with the Company’s former corporate headquarters in Skillman, New Jersey. See “—Assets Held for Sale” below.

(3) Represents the impairment charge recognized during the fiscal three months ended December 28, 2025 related to the ORSL® trade name following regulatory changes in India and the impairment charge recognized during the fiscal three months ended June 30, 2024 related to certain software development assets.

Schedule Of Separation Related Costs

Separation-related costs 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
Information technology and other(1)		$	68	$	255	$	468
Legal entity name change		20		41		—
Total Separation-related costs		$	88	$	296	$	468

(1) Primarily related to the disentanglement of systems and the costs associated with the discontinuation of certain information technology assets. These costs also include depreciation expense on Separation-related assets for the fiscal twelve months ended December 29, 2024.

Supplier Finance Program

The following table summarizes the changes in the Company’s outstanding obligations confirmed as valid under its supplier finance program during the fiscal twelve months ended December 28, 2025 and December 29, 2024:


(Dollars in Millions)	December 28, 2025		December 29, 2024
Confirmed obligations outstanding at the beginning of the fiscal year	$	260	$	227
Invoices confirmed during the fiscal year	1,152		1,093
Confirmed invoices paid during the fiscal year	(1,098)		(1,060)
Confirmed obligations outstanding at the end of the fiscal year	$	314	$	260

Schedule of Variable Interest Entities

All Deferred Legal Entities were exposed to similar operational risks and were therefore monitored and evaluated on a similar basis by management. Accordingly, the financial information for Deferred Legal Entities has been aggregated and the following table summarizes the consolidated assets and liabilities of these entities on the Consolidated Balance Sheet as of December 29, 2024. The amounts represented in this table are only those assets of the VIEs that could be used to settle only the VIE’s obligations and the VIE’s creditors (or beneficial interest holders) had no recourse against the general credit of the primary beneficiary.


(Dollars in Millions)	December 29, 2024
Assets
Current assets
Cash and cash equivalents	$	99
Trade receivables, less allowances for credit losses	70
Inventories	16
Prepaid expenses and other receivables	3

Total current assets	188
Property, plant, and equipment, net	3


Deferred taxes on income	3


Total assets	$	194
Liabilities
Current liabilities
Accounts payable	$	3
Accrued liabilities	11
Accrued rebates, returns, and promotions	16

Total current liabilities	30


Total liabilities	$	30

- Definition

Tabular disclosure of the significant judgments and assumptions made in determining whether a variable interest (as defined) held by the entity requires the variable interest entity (VIE) (as defined) to be consolidated and (or) disclose information about its involvement with the VIE, individually or in aggregate (as applicable); the nature of restrictions, if any, on the consolidated VIE's assets and on the settlement of its liabilities reported by an entity in its statement of financial position, including the carrying amounts of such assets and liabilities; the nature of, and changes in, the risks associated with involvement in the VIE; how involvement with the VIE affects the entity's financial position, financial performance, and cash flows; the lack of recourse if creditors (or beneficial interest holders) of the consolidated VIE have no recourse to the general credit of the primary beneficiary (if applicable); the terms of arrangements, giving consideration to both explicit arrangements and implicit variable interests, if any, that could require the entity to provide financial support to the VIE, including events or circumstances that could expose the entity to a loss; the methodology used by the entity for determining whether or not it is the primary beneficiary of the variable interest entity; the significant factors considered and judgments made in determining that the power to direct the activities of a VIE that most significantly impact the VIE's economic performance are shared (as defined); the carrying amounts and classification of assets and liabilities of the VIE included in the statement of financial position; the entity's maximum exposure to loss, if any, as a result of its involvement with the VIE, including how the maximum exposure is determined and significant sources of the entity's exposure to the VIE; a comparison of the carrying amounts of the assets and liabilities and the entity's maximum exposure to loss; information about any liquidity arrangements, guarantees, and (or) other commitments by third parties that may affect the fair value or risk of the entity's variable interest in the VIE; whether or not the entity has provided financial support or other support (explicitly or implicitly) to the VIE that it was not previously contractually required to provide or whether the entity intends to provide that support, including the type and amount of the support and the primary reasons for providing the support; and supplemental information the entity determines necessary to provide.

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