Income Taxes (Tables)
|
12 Months Ended |
Dec. 28, 2013
|
Provision for Income Taxes was Computed Based on Amounts of Income Before Income Taxes |
The provision for income
taxes was computed based on the following amounts of income before
income taxes:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2013 |
|
|
2012 |
|
|
2011 |
|
|
|
In
thousands
|
|
Domestic
|
|
$ |
735,177 |
|
|
$ |
663,380 |
|
|
$ |
582,198 |
|
Foreign
|
|
|
827,313 |
|
|
|
758,495 |
|
|
|
582,545 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
|
$ |
1,562,490 |
|
|
$ |
1,421,875 |
|
|
$ |
1,164,743 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for Income Taxes |
The provision
for income taxes consisted of:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2013 |
|
|
2012 |
|
|
2011 |
|
|
|
In
thousands |
|
Current:
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal
|
|
$ |
238,816 |
|
|
$ |
231,282 |
|
|
$ |
193,433 |
|
Foreign
|
|
|
103,752 |
|
|
|
100,635 |
|
|
|
57,738 |
|
State
|
|
|
22,173 |
|
|
|
24,617 |
|
|
|
34,046 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
364,741 |
|
|
|
356,534 |
|
|
|
285,217 |
|
Deferred:
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal and
state
|
|
|
(15,265 |
) |
|
|
(13,999 |
) |
|
|
(7,955 |
) |
Foreign
|
|
|
2,895 |
|
|
|
(6,798 |
) |
|
|
(2,912 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income taxes
|
|
$ |
352,371 |
|
|
$ |
335,737 |
|
|
$ |
274,350 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Differences Between Income Taxes Computed by Applying Statutory Federal Income Tax Rate and Income Tax Expense in Consolidated Financial Statements |
The differences
between income taxes computed by applying the statutory federal
income tax rate and income tax expense in the consolidated
financial statements are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2013 |
|
|
2012 |
|
|
2011 |
|
|
|
In
thousands |
|
Tax at federal statutory
rate
|
|
$ |
546,872 |
|
|
$ |
497,656 |
|
|
$ |
407,660 |
|
State income taxes, net of
federal tax benefit
|
|
|
19,653 |
|
|
|
24,304 |
|
|
|
23,147 |
|
Foreign rate
differences
|
|
|
(187,513 |
) |
|
|
(165,318 |
) |
|
|
(144,327 |
) |
Change in valuation
allowance
|
|
|
(3,422 |
) |
|
|
(33,060 |
) |
|
|
(12,126 |
) |
Tax credits
|
|
|
(16,742 |
) |
|
|
— |
|
|
|
(8,454 |
) |
Other
|
|
|
(6,477 |
) |
|
|
12,155 |
|
|
|
8,450 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income taxes
|
|
$ |
352,371 |
|
|
$ |
335,737 |
|
|
$ |
274,350 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred Income Tax Assets and Liabilities |
Deferred income
tax assets and liabilities consisted of the following:
|
|
|
|
|
|
|
|
|
|
|
2013 |
|
|
2012 |
|
|
|
In
thousands |
|
Deferred income tax
assets:
|
|
|
|
|
|
|
|
|
Inventories
|
|
$ |
29,325 |
|
|
$ |
13,237 |
|
Employee compensation and
benefits
|
|
|
272,910 |
|
|
|
365,412 |
|
Other accrued
expenses
|
|
|
168,669 |
|
|
|
167,230 |
|
Operating loss
carryforwards
|
|
|
122,895 |
|
|
|
125,436 |
|
Capital loss
carryforwards
|
|
|
769 |
|
|
|
2,649 |
|
|
|
|
|
|
|
|
|
|
|
|
|
594,568 |
|
|
|
673,964 |
|
Valuation
allowance
|
|
|
(107,521 |
) |
|
|
(99,703 |
) |
|
|
|
|
|
|
|
|
|
Deferred income tax
assets
|
|
|
487,047 |
|
|
|
574,261 |
|
|
|
|
|
|
|
|
|
|
Deferred income tax
liabilities:
|
|
|
|
|
|
|
|
|
Intangible
assets
|
|
|
761,140 |
|
|
|
775,049 |
|
Other deferred
liabilities
|
|
|
514 |
|
|
|
2,939 |
|
Foreign currency
translation
|
|
|
1,408 |
|
|
|
1,993 |
|
|
|
|
|
|
|
|
|
|
Deferred income tax
liabilities
|
|
|
763,062 |
|
|
|
779,981 |
|
|
|
|
|
|
|
|
|
|
Net deferred income tax
assets (liabilities)
|
|
$ |
(276,015 |
) |
|
$ |
(205,720 |
) |
|
|
|
|
|
|
|
|
|
Amounts included in the
Consolidated Balance Sheets:
|
|
|
|
|
|
|
|
|
Current assets
|
|
$ |
169,321 |
|
|
$ |
140,515 |
|
Current liabilities (Note
J)
|
|
|
(9,367 |
) |
|
|
(6,601 |
) |
Noncurrent assets (Note
H)
|
|
|
16,537 |
|
|
|
27,170 |
|
Noncurrent liabilities
(Note L)
|
|
|
(452,506 |
) |
|
|
(366,804 |
) |
|
|
|
|
|
|
|
|
|
|
|
$ |
(276,015 |
) |
|
$ |
(205,720 |
) |
|
|
|
|
|
|
|
|
|
|
Reconciliation of Change in Accrual for Unrecognized Income Tax Benefits |
A
reconciliation of the change in the accrual for unrecognized income
tax benefits is as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrecognized
Income Tax
Benefits |
|
|
Accrued
Interest
and Penalties |
|
|
Unrecognized
Income Tax
Benefits,
Including Interest |
|
|
|
In
thousands |
|
Balance, December
2010
|
|
$ |
57,568 |
|
|
$ |
9,830 |
|
|
$ |
67,398 |
|
Additions for current year
tax positions
|
|
|
14,862 |
|
|
|
4 |
|
|
|
14,866 |
|
Additions for prior year
tax positions
|
|
|
12,038 |
|
|
|
6,661 |
|
|
|
18,699 |
|
Additions for prior year
– Timberland acquisition
|
|
|
48,077 |
|
|
|
1,792 |
|
|
|
49,869 |
|
Reductions for prior year
tax positions
|
|
|
(13,975 |
) |
|
|
(570 |
) |
|
|
(14,545 |
) |
Reductions due to statute
expirations
|
|
|
(6,748 |
) |
|
|
(4,006 |
) |
|
|
(10,754 |
) |
Payments in
settlement
|
|
|
(6,951 |
) |
|
|
(579 |
) |
|
|
(7,530 |
) |
Currency
translation
|
|
|
88 |
|
|
|
— |
|
|
|
88 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, December
2011
|
|
|
104,959 |
|
|
|
13,132 |
|
|
|
118,091 |
|
Additions for current year
tax positions
|
|
|
18,930 |
|
|
|
— |
|
|
|
18,930 |
|
Additions for prior year
tax positions
|
|
|
39,616 |
|
|
|
6,199 |
|
|
|
45,815 |
|
Reductions for prior year
– Timberland acquisition
|
|
|
(5,707 |
) |
|
|
151 |
|
|
|
(5,556 |
) |
Reductions for prior year
tax positions
|
|
|
(19,678 |
) |
|
|
(2,314 |
) |
|
|
(21,992 |
) |
Reductions due to statute
expirations
|
|
|
(2,765 |
) |
|
|
(207 |
) |
|
|
(2,972 |
) |
Payments in
settlement
|
|
|
(313 |
) |
|
|
(140 |
) |
|
|
(453 |
) |
Currency
translation
|
|
|
252 |
|
|
|
— |
|
|
|
252 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, December
2012
|
|
|
135,294 |
|
|
|
16,821 |
|
|
|
152,115 |
|
Additions for current year
tax positions
|
|
|
11,921 |
|
|
|
— |
|
|
|
11,921 |
|
Additions for prior year
tax positions
|
|
|
10,908 |
|
|
|
4,627 |
|
|
|
15,535 |
|
Reductions for prior year
tax positions
|
|
|
(8,521 |
) |
|
|
(2,130 |
) |
|
|
(10,651 |
) |
Reductions due to statute
expirations
|
|
|
(6,527 |
) |
|
|
(626 |
) |
|
|
(7,153 |
) |
Payments in
settlement
|
|
|
(24,422 |
) |
|
|
(1,218 |
) |
|
|
(25,640 |
) |
Currency
translation
|
|
|
(139 |
) |
|
|
— |
|
|
|
(139 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, December
2013
|
|
$ |
118,514 |
|
|
$ |
17,474 |
|
|
$ |
135,988 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts Included in Consolidated Balance Sheet |
|
|
|
|
|
|
|
|
|
|
|
2013 |
|
|
2012 |
|
|
|
In
thousands |
|
Amounts included in the
Consolidated Balance Sheets:
|
|
|
|
|
|
|
|
|
Unrecognized income tax
benefits, including interest
|
|
$ |
135,988 |
|
|
$ |
152,115 |
|
Less deferred tax
benefits
|
|
|
26,438 |
|
|
|
34,990 |
|
|
|
|
|
|
|
|
|
|
Total unrecognized tax
benefits
|
|
$ |
109,550 |
|
|
$ |
117,125 |
|
|
|
|
|
|
|
|
|
|
|