Quarterly report pursuant to Section 13 or 15(d)


3 Months Ended
Apr. 01, 2022
Income Tax Disclosure [Abstract]  
The Company recorded income taxes of $665 million (19.2 percent effective tax rate) and $508 million (18.4 percent effective tax rate) during the three months ended April 1, 2022 and April 2, 2021, respectively.
The Company’s effective tax rates for the three months ended April 1, 2022 and April 2, 2021 vary from the statutory U.S. federal income tax rate of 21.0 percent primarily due to the tax impact of significant operating and nonoperating items, as described in Note 11, along with the tax benefits of having significant earnings generated outside the United States and significant earnings generated in investments accounted for under the equity method, both of which are generally taxed at rates lower than the statutory U.S. rate.
On November 18, 2020, the Tax Court issued the Opinion regarding the Company’s 2015 litigation with the IRS involving transfer pricing tax adjustments in which the court predominantly sided with the IRS. The Company strongly disagrees with the Opinion and intends to vigorously defend its position. Refer to Note 8.