INCOME TAXES (Notes)

3 Months Ended

Mar. 30, 2024

Income Tax Disclosure [Abstract]

Income Taxes

INCOME TAXES

The consolidated effective tax rate for the quarters ended March 30, 2024 and April 1, 2023 was 23% and 21%, respectively.

As of March 30, 2024, the Company classified $8 million of unrecognized tax benefits as a current tax liability. Management's estimate of reasonably possible changes in unrecognized tax benefits during the next twelve months consists of the current liability expected to be settled within one year, offset by approximately $3 million of projected additions related primarily to ongoing intercompany transfer pricing activity. Management is currently unaware of any issues under review that could result in significant additional payments, accruals or other material deviation in this estimate.

The Company’s total gross unrecognized tax benefits as of March 30, 2024 was $32 million. Of this balance, $27 million represents the amount that, if recognized, would affect the Company’s effective income tax rate in future periods.

The accrual balance for tax-related interest was approximately $4 million at March 30, 2024.