Accumulated Other Comprehensive Loss (Tables)

9 Months Ended

Sep. 29, 2024

Components of Accumulated Other Comprehensive Income

Components of Accumulated other comprehensive loss consisted of the following:


(Dollars in Millions)	Foreign Currency Translation		Employee Benefit Plans		Gain on Derivatives and Hedges(1)		Total Accumulated Other Comprehensive Loss
June 30, 2024	$	(5,689)	$	(161)	$	15	$	(5,835)
Other comprehensive income (loss) before reclassifications	473		(8)		12		477
Amounts reclassified to the Condensed Consolidated Statement of Operations	—		1		(2)		(1)
Net current period Other comprehensive income (loss)	473		(7)		10		476
September 29, 2024	$	(5,216)	$	(168)	$	25	$	(5,359)

July 2, 2023	$	(5,485)	$	(57)	$	40	$	(5,502)
Other comprehensive (loss) income before reclassifications	(251)		16		10		(225)
Amounts reclassified to the Condensed Consolidated Statement of Operations	—		(1)		(14)		(15)
Net current period Other comprehensive (loss) income	(251)		15		(4)		(240)
October 1, 2023	$	(5,736)	$	(42)	$	36	$	(5,742)

(1) For the fiscal three months ended September 29, 2024 and October 1, 2023, the Company recorded a total after-tax change in Accumulated other comprehensive loss of $11 million and $(4) million, respectively, related to its cash flow hedge portfolio.


(Dollars in Millions)	Foreign Currency Translation		Employee Benefit Plans(1)		Gain on Derivatives and Hedges(2)		Total Accumulated Other Comprehensive Loss
December 31, 2023	$	(5,257)	$	(167)	$	47	$	(5,377)
Other comprehensive income (loss) before reclassifications	41		(4)		(12)		25
Amounts reclassified to the Condensed Consolidated Statement of Operations	—		3		(10)		(7)
Net current period Other comprehensive income (loss)	41		(1)		(22)		18
September 29, 2024	$	(5,216)	$	(168)	$	25	$	(5,359)

January 1, 2023	$	(5,476)	$	12	$	9	$	(5,455)
Other comprehensive (loss) income before reclassifications	(260)		(53)		48		(265)
Amounts reclassified to the Condensed Consolidated Statement of Operations	—		(1)		(21)		(22)
Net current period Other comprehensive (loss) income	(260)		(54)		27		(287)
October 1, 2023	$	(5,736)	$	(42)	$	36	$	(5,742)

(1) Net change for the fiscal nine months ended October 1, 2023 includes Separation adjustments of $73 million in connection with transfers of certain pension plans by J&J to the Company.

(2) For the fiscal nine months ended September 29, 2024 and October 1, 2023, the Company recorded a total after-tax change in Accumulated other comprehensive loss of $(22) million and $27 million, respectively, related to its cash flow hedge portfolio.

The provision (benefit) for taxes allocated to the components of Accumulated other comprehensive loss before reclassification was as follows:


	Fiscal Three Months Ended				Fiscal Nine Months Ended
(Dollars in Millions)	September 29, 2024		October 1, 2023		September 29, 2024		October 1, 2023
Foreign currency translation(1)	$	(7)	$	(10)	$	(12)	$	(4)
Employee benefit plans	—		1		—		(16)
Gain on derivatives and hedges	—		(2)		11		7

Total (benefit) for taxes recognized in Accumulated other comprehensive loss	$	(7)	$	(11)	$	(1)	$	(13)

(1) The provision (benefit) for taxes for the fiscal three and nine months ended October 1, 2023 has been adjusted to remove the foreign currency translation on deferred tax balances. The amounts disclosed include only the provision (benefit) for taxes allocated to foreign currency translation and are comparable to the amounts disclosed for the fiscal three and nine months ended September 29, 2024. The net amount of foreign currency translation was unaffected by the adjustment.