|6 Months Ended|
Jun. 30, 2023
|Income Tax Disclosure [Abstract]|
|INCOME TAXES||INCOME TAXESThe Company recorded income taxes of $359 million (12.5 percent effective tax rate) and $384 million (16.8 percent effective tax rate) during the three months ended June 30, 2023 and July 1, 2022, respectively. The Company recorded income taxes of $1,299 million (18.7 percent effective tax rate) and $1,049 million (18.3 percent effective tax rate) during the six months ended June 30, 2023 and July 1, 2022, respectively.
The Company’s effective tax rates for the three and six months ended June 30, 2023 and July 1, 2022 vary from the statutory U.S. federal tax rate of 21.0 percent primarily due to the tax impact of significant operating and nonoperating items, as described in Note 12, along with the tax benefits of having significant earnings generated outside of 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. federal tax rate.
The Company’s effective tax rates for the three and six months ended June 30, 2023 included $120 million and $125 million, respectively, of net tax benefits related to various discrete tax items, including a change in tax law in a certain foreign jurisdiction.
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 9 for additional information on the tax litigation.
The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.
Reference 1: http://www.xbrl.org/2003/role/disclosureRef