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Income Taxes (Tables) | 12 Months Ended
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Jan. 02, 2026
Income Tax Disclosure [Abstract] |
Schedule of Income (Loss) before Income Tax | The components of income (loss) from continuing operations before income taxes and noncontrolling interests were as follows:
| Year ended
Dollars in millions | January 2, 2026 |  | January 3, 2025 |  | December 29, 2023
United States | $ | 270 |  |  | $ | 99 |  |  | $ | (464) |
Foreign: |  |  |  |  |
United Kingdom | 150 |  |  | 161 |  |  | 133 |
Australia | 30 |  |  | 45 |  |  | 49 |
Middle East | 64 |  |  | 61 |  |  | 45 |
Asia | 55 |  |  | 100 |  |  | 48 |
Other | 45 |  |  | 42 |  |  | 24 |
Subtotal | 344 |  |  | 409 |  |  | 299 |
Total | $ | 614 |  |  | $ | 508 |  |  | $ | (165) |
Schedule of Taxes on Financial Statements | The total income taxes included in the statements of operations and in shareholders' equity were as follows:
| Year ended
Dollars in millions | January 2, 2026 |  | January 3, 2025 |  | December 29, 2023
Provision for income taxes | $ | (156) |  |  | $ | (129) |  |  | $ | (95) |
Shareholders' equity, pension and post-retirement benefits | 11 |  |  | 4 |  |  | 25 |
Shareholders' equity, changes in fair value of derivatives | 5 |  |  | — |  |  | 3 |
Total income taxes | $ | (140) |  |  | $ | (125) |  |  | $ | (67) |
Schedule of Components of Provision for Income Taxes | The components of the provision for income taxes were as follows:
Dollars in millions | Current |  | Deferred |  | Total
Year ended January 2, 2026 |  |  |  |  |
Federal | $ | (1) |  |  | $ | (55) |  |  | $ | (56) |
Foreign | (69) |  |  | (14) |  |  | (83) |
State and other | (26) |  |  | 9 |  |  | (17) |
Provision for income taxes | $ | (96) |  |  | $ | (60) |  |  | $ | (156) |
Year ended January 3, 2025 |  |  |  |  |
Federal | $ | (7) |  |  | $ | 6 |  |  | $ | (1) |
Foreign | (95) |  |  | (10) |  |  | (105) |
State and other | (25) |  |  | 2 |  |  | (23) |
Provision for income taxes | $ | (127) |  |  | $ | (2) |  |  | $ | (129) |
Year ended December 29, 2023 |  |  |  |  |
Federal | $ | — |  |  | $ | (3) |  |  | $ | (3) |
Foreign | (65) |  |  | (14) |  |  | (79) |
State and other | (17) |  |  | 4 |  |  | (13) |
Provision for income taxes | $ | (82) |  |  | $ | (13) |  |  | $ | (95) |
Schedule of Components of Foreign Income Tax Provision | The components of total foreign income tax provision were as follows:
| Year ended
Dollars in millions | January 2, 2026 |  | January 3, 2025 |  | December 29, 2023
United Kingdom | $ | (32) |  |  | $ | (37) |  |  | $ | (32) |
Australia | (12) |  |  | (19) |  |  | (13) |
Middle East | (17) |  |  | (18) |  |  | (12) |
Asia | (13) |  |  | (18) |  |  | (8) |
Other | (9) |  |  | (13) |  |  | (14) |
Foreign provision for income taxes | $ | (83) |  |  | $ | (105) |  |  | $ | (79) |
Schedule of Cash Paid for Income Taxes, Net of Refunds | The components of income taxes paid, net of refunds received, for the year ended January 2, 2026 were as follows:
| Year ended
Dollars in millions | January 2, 2026 |  |  |  |
Federal | $ | 9 |  |  |  |  |
Foreign |  |  |  |  |
Australia | 17 |  |  |  |  |
India | 8 |  |  |  |  |
Saudi Arabia | 5 |  |  |  |  |
Singapore | 10 |  |  |  |  |
United Kingdom | 5 |  |  |  |  |
Other | 9 |  |  |  |  |
State and other |  |  |  |  |
Louisiana | 5 |  |  |  |  |
Other | 15 |  |  |  |  |
Cash paid during the period for income taxes, net of refunds | $ | 83 |  |  |  |  |
Schedule of Effective Income Tax Rate Reconciliation | Our effective tax rate on income from continuing operations for the year ended January 2, 2026 differed from the statutory U.S. federal income tax rate of 21%, presented after prospectively adopting ASU 2023-09, as a result of the following:
| Year ended |
| January 2, 2026 |
Dollars in millions | $ |  | % |
U.S. statutory federal rate | $ | 129 |  |  | 21 | % |
Domestic federal tax effects: |  |  |  |
Tax credits | (8) |  |  | (1) | % |
Nontaxable or nondeductible items: |  |  |  |
Non-deductible charge-outs | 7 |  |  | 1 | % |
Other | 9 |  |  | 1 | % |
Effect of cross-border tax laws: |  |  |  |
Global Intangible Low-Taxed Income | 11 |  |  | 2 | % |
Foreign-derived Intangible Income deduction | (10) |  |  | (2) | % |
Subpart F deemed dividend | 6 |  |  | 1 | % |
Other | (2) |  |  | — | % |
Changes in valuation allowances | (3) |  |  | — | % |
State and local income taxes, net of federal benefit (a) | 14 |  |  | 2 | % |
Foreign tax effects: |  |  |  |
Australia |  |  |  |
Non-deductible charge-outs and release of refundable associated with a resolution | 18 |  |  | 3 | % |
Other | 6 |  |  | 1 | % |
Iraq | 6 |  |  | 1 | % |
Other | (7) |  |  | (1) | % |
Worldwide changes in unrecognized tax benefits | (20) |  |  | (4) | % |
Effective tax rate on income from continuing operations | $ | 156 |  |  | 25 | % |
(a)State taxes in Louisiana made up the majority (greater than 50%) of the tax effect in this category. As previously disclosed for the years ended January 3, 2025 and December 29, 2023, prior to the adoption of ASU 2023-09, the effective tax rate on income from continuing operations differed from the statutory U.S. federal income tax rate of 21% as a result of the following:
| Year ended
| January 3, |  | December 29,
| 2025 |  | 2023
U.S. statutory federal rate, expected (benefit) provision | 21 | % |  | 21 | %
Increase (reduction) in tax rate from: |  |  |
Tax impact from foreign operations | 2 | % |  | 2 | %
Noncontrolling interests and equity earnings | (2) | % |  | (1) | %
State and local income taxes, net of federal benefit | 3 | % |  | 2 | %
Other permanent differences, net | 2 | % |  | 5 | %
Other non-deductible expenditures | 2 | % |  | — | %
Change in federal and foreign valuation allowance | (2) | % |  | (3) | %
Research and development credits, net of provision | (1) | % |  | — | %
Release of previously reserved position | — | % |  | (2) | %
Non-Deductible portion associated with legal settlement of legacy matter | — | % |  | (11) | %
Non-Deductible portion of Charges associated with Convertible Notes | — | % |  | (70) | %
Effective tax rate on income from continuing operations | 25 | % |  | (57) | %
Schedule of Deferred Tax Assets and Liabilities | The primary components of our deferred tax assets and liabilities were as follows:
| Year ended
Dollars in millions | January 2, 2026 |  | January 3, 2025
Deferred tax assets: |  |  |
Employee compensation and benefits | $ | 64 |  |  | $ | 63 |
Foreign tax credit carryforwards | 60 |  |  | 98 |
Loss carryforwards | 70 |  |  | 69 |
Research and development and other credit carryforwards | 37 |  |  | 49 |
Insurance accruals | 8 |  |  | 8 |
Lease obligation and accrued liabilities | 84 |  |  | 93 |
Contract liabilities | 22 |  |  | 23 |
Capitalized research expenditures | 76 |  |  | 73 |
Other | 99 |  |  | 118 |
Total gross deferred tax assets | 520 |  |  | 594 |
Valuation allowances | (124) |  |  | (142) |
Net deferred tax assets | 396 |  |  | 452 |
Deferred tax liabilities: |  |  |
Right-of-use assets | (42) |  |  | (47) |
Intangible amortization | (127) |  |  | (131) |
Indefinite-lived intangible amortization | (107) |  |  | (98) |
Other | (53) |  |  | (50) |
Total gross deferred tax liabilities | (329) |  |  | (326) |
Deferred income tax assets, net | $ | 67 |  |  | $ | 126 |
Schedule of Valuation Allowance | The net deferred tax balance by major jurisdiction after valuation allowance as of January 2, 2026 was as follows:
Dollars in millions | Gross Deferred Asset (Liability), net |  | Valuation Allowance |  | Deferred Asset (Liability), net
United States | $ | 224 |  |  | $ | (95) |  |  | $ | 129 |
United Kingdom | (87) |  |  | — |  |  | (87) |
Australia | 21 |  |  | — |  |  | 21 |
Canada | 20 |  |  | (19) |  |  | 1 |
Asia | 3 |  |  | (2) |  |  | 1 |
Other | 10 |  |  | (8) |  |  | 2 |
Total | $ | 191 |  |  | $ | (124) |  |  | $ | 67 |
Schedule of Operating Loss Carryforwards | At January 2, 2026, the amount of gross tax attributes available prior to the offset with related uncertain tax positions were as follows:
Dollars in millions | January 2, 2026 |  | Expiration
Foreign tax credit carryforwards | $ | 60 |  |  | 2025-2029
Foreign net operating loss carryforwards | $ | 98 |  |  | 2025-2045
Foreign net operating loss carryforwards | $ | 33 |  |  | Indefinite
State net operating loss carryforwards | $ | 782 |  |  | Various
Research and development and other credit carryforwards | $ | 37 |  |  | 2025-2045
Schedule of Reconciliation of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of total unrecognized tax benefits is as follows:
Dollars in millions | Fiscal 2025 |  | Fiscal 2024 |  | Fiscal 2023
Balance at beginning of fiscal year | $ | 85 |  |  | $ | 74 |  |  | $ | 92 |
Increases related to current year tax positions | 2 |  |  | 3 |  |  | 2 |
Increases related to prior year tax positions | 20 |  |  | — |  |  | — |
Decreases related to prior year tax positions | (28) |  |  | (4) |  |  | (2) |
Increases related to tax positions from an acquisition | — |  |  | 15 |  |  | — |
Settlements | — |  |  | — |  |  | (16) |
Lapse of statute of limitations | (5) |  |  | (1) |  |  | (2) |
Other, primarily due to exchange rate fluctuations affecting non-U.S. tax positions | 2 |  |  | (2) |  |  | — |
Balance at end of fiscal year | $ | 76 |  |  | $ | 85 |  |  | $ | 74 |

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