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Income Taxes (Tables)

12 Months Ended

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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