XML 28 R17.htm IDEA: XBRL DOCUMENT v3.25.3
Income Taxes
 9 Months Ended
Sep. 27, 2025
Income Taxes [Abstract]  
Income Taxes
Note 9 – Income Taxes
 
 
 
 
 
For the three months ended September 27, 2025, our effective tax rate was
21.3
%, compared to
24.7
% 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 three months ended September 27, 2025, the difference was
further impacted by the tax treatment associated with the acquisition of a
 
controlling interest of a previously held
non-controlling equity investment.
 
For the nine months ended September 27, 2025, our effective tax rate was
23.5
%, compared to
25.1
% 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.
 
For the nine months ended September 27, 2025, the difference was
further impacted by the tax treatment associated with the acquisition of a
 
controlling interest of a previously held
non-controlling equity investment.
On July 4, 2025, President Trump signed the reconciliation tax bill, commonly known as the “One
 
Big Beautiful
Bill Act” (OBBBA),
 
into law.
 
Corporate provisions in the OBBBA include immediate expensing of domestic
research and experimental expenditures, limitations on certain deductions
 
and modifications to international tax
provisions.
 
As a result of the OBBBA, we anticipate a reduction in current
 
income tax liabilities and deferred tax
assets.
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 September 27, 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 September 27, 2025 and December 28,
 
2024 was $
114
 
million and $
108
 
million,
respectively, of which $
107
 
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 $
2
 
million and $
0
million for the three months ended September 27, 2025 and September
 
28, 2024, respectively.
 
The amount of tax
interest expense included as a component of the provision for taxes was
 
$
3
 
million and $
1
 
million for the nine
months ended September 27, 2025 and September 28, 2024, respectively.
 
The total amount of accrued interest is
included in other liabilities within our condensed consolidated balance sheets,
 
and was $
21
 
million as of September
27, 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.