INCOME TAXES (Tables)

12 Months Ended

Dec. 29, 2023

Income Tax Disclosure [Abstract]

Schedule of Provision For Income Tax

The provisions for current and deferred income taxes attributable to continuing operations are as follows:

	Fiscal Year Ended
(In millions)	December 29, 2023		December 30, 2022		December 31, 2021
Current:
United States	$	328	$	633	$	415
International	50		82		70
State and local	66		98		65
Total current income taxes	444		813		550
Deferred:
United States	(380)		(523)		(55)
International	10		(61)		(34)
State and local	(51)		(17)		(21)
Total deferred income taxes	(421)		(601)		(110)
Total income taxes	$	23	$	212	$	440

Schedule of Effective Income Tax Rate Reconciliation

A reconciliation of the U.S. statutory income tax rate to our effective income tax rate is as follows:

	Fiscal Year Ended
	December 29, 2023		December 30, 2022		December 31, 2021
U.S. statutory income tax rate	21.0	%	21.0	%	21.0	%
State taxes	1.1		2.2		1.8
International income	—		—		0.4
Non-deductible goodwill impairment	3.6		14.2		0.6
Research and development tax credit	(12.5)		(13.0)		(5.9)
FDII deduction	(4.4)		(5.1)		(1.4)
Changes in valuation allowance	0.5		0.1		0.9
Impact of divestitures and reorganizations	(8.5)		(1.3)		4.1
Equity-based compensation(1)	0.2		(0.2)		(1.1)
Settlement of tax audits	(1.1)		(0.7)		(1.1)
Other items	2.0		(0.5)		—
Effective income tax rate	1.9	%	16.7	%	19.3	%

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(1)Includes non-deductible equity-based compensation and excess tax benefits from equity-based compensation.

Schedule of Deferred Tax Assets, Net of Valuation Allowance

The components of deferred income tax assets (liabilities) were as follows:

(In millions)	December 29, 2023		December 30, 2022
Deferred tax assets, net:
Accruals	$	334	$	227
Tax loss and credit carryforwards	217		194
Operating lease obligation	243		239
Capitalized research and experimental expenditures	1,125		646
Other	272		372
Valuation allowance(1)	(240)		(243)
Deferred tax assets, net	1,951		1,435
Deferred tax liabilities:
Property, plant and equipment	(252)		(167)
Acquired intangibles	(2,143)		(1,566)
Operating lease right-of-use asset	(219)		(210)
Other	(61)		(138)
Deferred tax liabilities	(2,675)		(2,081)
Net deferred tax liabilities	$	(724)	$	(646)

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(1)The valuation allowance has been established to offset certain domestic and foreign deferred tax assets due to uncertainty regarding our ability to realize them in the future. The net change in our valuation allowance in fiscal 2023 and 2022 was a decrease of $3 million and $14 million, respectively.

Net deferred tax assets (liabilities) were classified as follows in our Consolidated Balance Sheet:

(In millions)	December 29, 2023		December 30, 2022
Deferred income tax assets	$	91	$	73
Deferred income tax liabilities	(815)		(719)
Net deferred tax liabilities	$	(724)	$	(646)

Schedule of Reconciliation of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amounts of unrecognized tax benefits is as follows:

	Fiscal Year Ended
(In millions)	December 29, 2023		December 30, 2022		December 31, 2021
Balance at beginning of period	$	613	$	587	$	542
Additions based on tax positions taken during current period	99		124		115
Additions based on tax positions taken during prior period	8		4		11
Additions from tax positions related to acquired entities	86		—		—
Decreases based on tax positions taken during prior period	(133)		(76)		(64)
Decreases from lapse in statutes of limitations	(11)		(6)		(15)
Decreases from settlements	(10)		(20)		(2)
Balance at end of fiscal year	$	652	$	613	$	587