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Income Taxes
 6 Months Ended
Jun. 28, 2025
Income Taxes [Abstract]  
Income Taxes
Note 9 – Income Taxes
 
 
 
 
 
 
For the three months ended June 28, 2025, our effective tax rate was
24.4
%, compared to
24.9
% for the prior year
period.
 
The difference between our effective and federal statutory tax rates primarily relates to
 
state and foreign
income taxes and interest expense.
For the six months ended June 28, 2025, our effective tax rate was
24.7
%, compared to
25.2
% for the prior year
period.
 
The difference between our effective tax rate and the federal statutory tax rate is primarily
 
due to state and
foreign income taxes and interest expense.
On July 4, 2025, after the end of the second quarter (June 28, 2025), President
 
Trump signed the reconciliation tax
bill, commonly known as the “One Big Beautiful Bill Act” (OBBBA),
 
into law.
 
This includes significant changes
to corporate tax rates, limitations on certain deductions and modifications
 
to international tax provisions.
 
We are
currently assessing the impact of the OBBBA on our consolidated
 
financial statements.
The “Organization of Economic Co-Operation and Development”
 
(OECD) issued technical and administrative
guidance on Pillar Two rules in December 2021, which provides for a global minimum tax rate on the earnings of
large multinational businesses on a country-by-country basis.
 
Effective January 1, 2024, the minimum global tax
rate is 15% for various jurisdictions pursuant to the Pillar Two rules.
 
Future tax reform resulting from these
developments may result in changes to long-standing tax principles, which
 
may adversely impact our effective tax
rate going forward or result in higher cash tax liabilities.
 
As of June 28, 2025,
 
the impact of the Pillar Two rules to
our financial statements was immaterial.
The total amount of unrecognized tax benefits, which are included in
 
“other liabilities” within our condensed
consolidated balance sheets, as of June 28, 2025 and December 28, 2024
 
was $
107
 
million and $
108
 
million,
respectively, of which $
100
 
million and $
100
 
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 2020.
 
The tax years subject to examination by the
IRS include years 2021 and forward.
 
In addition, limited positions reported in the 2017 tax year are subject
 
to IRS
examination.
The amount of tax interest expense included as a component of the provision
 
for taxes was $
0
 
million and $
0
million for the three months ended June 28, 2025 and June 29, 2024,
 
respectively.
 
The amount of tax interest
expense included as a component of the provision for taxes was $
1
 
million and $
1
 
million for the six months ended
June 28, 2025 and June 29, 2024, respectively.
 
The total amount of accrued interest is included in other liabilities
within our consolidated balance sheets, and was $
19
 
million as of June 28, 2025 and $
18
 
million as of December
28, 2024.
 
The amount of penalties accrued for during the periods presented
 
was not material to our condensed
consolidated financial statements.