Other Operating Expense (Income), Net and Other Expense, Net (Tables)

3 Months Ended

Mar. 31, 2024

Other Income and Expenses [Abstract]

Schedule of Other Operating Cost and Expense, by Component

Other operating expense (income), net for the fiscal three months ended March 31, 2024 and April 2, 2023 consisted of:

	Fiscal Three Months Ended
(Dollars in Millions)	March 31, 2024		April 2, 2023
Litigation expense	$	2	$	—
Royalty income	(9)		(7)
Gain on disposal of fixed assets	—		(9)
Impact of Deferred Markets(1)	15		—
Fixed asset impairment(2)	68		—
Other(3)	2		(1)
Total other operating expense (income), net	$	78	$	(17)

(1) Includes the provision for taxes, minority interest expense, and service fees to be paid to J&J under the net economic benefit arrangements. See Note 1, “Description of the Company and Summary of Significant Accounting Policies—Variable Interest Entities and Net Economic Benefit Arrangements,” for more information regarding Deferred Markets.

(2) Represents the impairment charge recorded on the held for sale asset associated with the Company’s interim corporate headquarters in Skillman, New Jersey. See Note 1, “Description of the Company and Summary of Significant Accounting Policies—Assets Held for Sale,” for more information.

(3) Includes impact of foreign derivative contracts and other miscellaneous operating (income) expenses.

Schedule of Other Nonoperating Income (Expense)

Other expense, net for the fiscal three months ended March 31, 2024 and April 2, 2023 consisted of:

	Fiscal Three Months Ended
(Dollars in Millions)	March 31, 2024		April 2, 2023
Currency (gains)/losses on transactions	$	(4)	$	16
Losses on investments	31		7
Other(1)	1		7
Total other expense, net	$	28	$	30

(1) Other consists primarily of net periodic benefit costs other than service cost components and miscellaneous non-operating (income) expenses.