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Income Taxes
 6 Months Ended
Jun. 25, 2022
Income Taxes [Abstract]  
Income Taxes
Note 8 – Income Taxes
For the six months ended June 25, 2022 our effective tax rate was
23.9
% compared to
24.3
% for the prior year
period.
 
The difference between our effective tax rate and the federal statutory tax rate for the six
 
months ended
June 25, 2022 primarily relates to state and foreign income taxes and
 
interest expense as well as share-based
compensation.
 
The difference between our effective tax rate and the federal statutory tax rate for the six months
ended June 26, 2021 primarily relates to state and foreign income taxes,
 
interest expense and tax charges and
credits associated with legal entity reorganizations.
The total amount of unrecognized tax benefits, which are included in “Other
 
liabilities” within our condensed
consolidated balance sheets, as of June 25, 2022 and December 25, 2021
 
was $
83
 
million and $
84
 
million,
respectively of which $
69
 
million and $
69
 
million, respectively, would affect the effective tax rate if recognized.
 
It
is possible that the amount of unrecognized tax benefits will change
 
in the next 12 months, which may result in a
material impact on our condensed consolidated statements of income.
All tax returns audited by the IRS are officially closed through 2016.
 
The tax years subject to examination by the
IRS include years 2017 and forward.
 
During the quarter ended December 25, 2021, we were notified
 
by the IRS
that tax year 2019 was selected for examination.
During the quarter ended September 26, 2020 we reached an agreement
 
with the Advanced Pricing Division on an
appropriate transfer pricing methodology for the years 2014-2025.
 
The objective of this resolution was to mitigate
future transfer pricing audit adjustments.
The total amounts of interest and penalties are classified as a component
 
of the provision for income taxes.
 
The
amount of tax interest expense/(credit) was $
0
 
million for the six months ended June 25, 2022, and $
(3)
 
million for
the six months ended June 26, 2021.
 
The total amount of accrued interest is included in “Other
 
liabilities,” and was
$
13
 
million as of June 25, 2022 and $
12
 
million as of December 25, 2021.
 
No
 
penalties were accrued for the
periods presented.