Income Taxes (Tables)
|
12 Months Ended |
Jan. 02, 2016 |
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:
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
2015 |
|
|
2014 |
|
|
2013 |
|
|
|
|
|
|
In
thousands |
|
|
|
|
Domestic
|
|
$ |
745,061 |
|
|
$ |
460,561 |
|
|
$ |
735,177 |
|
Foreign
|
|
|
835,328 |
|
|
|
891,805 |
|
|
|
827,313 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
|
$ |
1,580,389 |
|
|
$ |
1,352,366 |
|
|
$ |
1,562,490 |
|
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|
|
|
|
|
|
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|
|
|
|
Provision for Income Taxes |
The provision
for income taxes consisted of:
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|
|
|
|
|
|
|
|
|
|
|
|
|
2015 |
|
|
2014 |
|
|
2013 |
|
|
|
In
thousands |
|
Current:
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal
|
|
$ |
194,851 |
|
|
$ |
205,618 |
|
|
$ |
238,816 |
|
Foreign
|
|
|
112,885 |
|
|
|
138,634 |
|
|
|
103,752 |
|
State
|
|
|
33,972 |
|
|
|
38,673 |
|
|
|
22,173 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
341,708 |
|
|
|
382,925 |
|
|
|
364,741 |
|
Deferred:
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal and
state
|
|
|
401 |
|
|
|
(78,362 |
) |
|
|
(15,265 |
) |
Foreign
|
|
|
6,687 |
|
|
|
298 |
|
|
|
2,895 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income taxes
|
|
$ |
348,796 |
|
|
$ |
304,861 |
|
|
$ |
352,371 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Differences Between Income Taxes Computed by Applying Statutory Federal Income Tax Rate and Income Tax Expense reported in Consolidated Financial Statements |
The differences
between income taxes computed by applying the statutory federal
income tax rate and income tax expense reported in the consolidated
financial statements are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2015 |
|
|
2014 |
|
|
2013 |
|
|
|
In
thousands |
|
Tax at federal statutory
rate
|
|
$ |
553,136 |
|
|
$ |
473,328 |
|
|
$ |
546,872 |
|
State income taxes, net of
federal tax benefit
|
|
|
16,451 |
|
|
|
25,594 |
|
|
|
19,653 |
|
Foreign rate
differences
|
|
|
(212,287 |
) |
|
|
(230,190 |
) |
|
|
(187,513 |
) |
Goodwill
impairment
|
|
|
— |
|
|
|
49,840 |
|
|
|
— |
|
Change in valuation
allowances
|
|
|
— |
|
|
|
— |
|
|
|
(3,422 |
) |
Tax credits
|
|
|
(8,775 |
) |
|
|
(9,033 |
) |
|
|
(17,236 |
) |
Other
|
|
|
271 |
|
|
|
(4,678 |
) |
|
|
(5,983 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income taxes
|
|
$ |
348,796 |
|
|
$ |
304,861 |
|
|
$ |
352,371 |
|
|
|
|
|
|
|
|
|
|
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|
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Deferred Income Tax Assets and Liabilities |
Deferred
income tax assets and liabilities consisted of the
following:
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|
|
|
|
|
|
|
|
|
2015 |
|
|
2014 |
|
|
|
In
thousands |
|
Deferred income tax
assets:
|
|
|
|
|
|
|
|
|
Inventories
|
|
$ |
38,897 |
|
|
$ |
34,430 |
|
Employee compensation and
benefits
|
|
|
252,307 |
|
|
|
257,187 |
|
Other accrued
expenses
|
|
|
154,337 |
|
|
|
186,390 |
|
Operating loss
carryforwards
|
|
|
139,634 |
|
|
|
115,259 |
|
|
|
|
|
|
|
|
|
|
Gross deferred income tax
assets
|
|
|
585,175 |
|
|
|
593,266 |
|
Valuation
allowances
|
|
|
(100,951 |
) |
|
|
(96,802 |
) |
|
|
|
|
|
|
|
|
|
Net deferred income tax
assets
|
|
|
484,224 |
|
|
|
496,464 |
|
|
|
|
|
|
|
|
|
|
Deferred income tax
liabilities:
|
|
|
|
|
|
|
|
|
Depreciation
|
|
|
27,756 |
|
|
|
624 |
|
Intangible
assets
|
|
|
591,615 |
|
|
|
652,950 |
|
Other deferred tax
liabilities
|
|
|
67,016 |
|
|
|
22,923 |
|
|
|
|
|
|
|
|
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|
Deferred income tax
liabilities
|
|
|
686,387 |
|
|
|
676,497 |
|
|
|
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|
|
|
|
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|
Net deferred income tax
assets (liabilities)
|
|
$ |
(202,163 |
) |
|
$ |
(180,033 |
) |
|
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|
|
|
|
|
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|
Amounts included in the
Consolidated Balance Sheets (a):
|
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|
|
|
|
|
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|
Noncurrent assets (Note
G)
|
|
$ |
39,246 |
|
|
$ |
49,431 |
|
Noncurrent liabilities
(Note K)
|
|
|
(241,409 |
) |
|
|
(229,464 |
) |
|
|
|
|
|
|
|
|
|
|
|
$ |
(202,163 |
) |
|
$ |
(180,033 |
) |
|
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|
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|
(a) |
As discussed in Note A , we have presented all deferred tax
assets and liabilities as noncurrent.
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|
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:
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|
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|
Unrecognized
Income Tax
Benefits |
|
|
Accrued
Interest
and Penalties |
|
|
Unrecognized
Income Tax
Benefits
Including Interest
and Penalties |
|
|
|
In
thousands |
|
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 |
) |
|
|
|
|
|
|
|
|
|
|
|
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|
Balance, December
2013
|
|
|
118,514 |
|
|
|
17,474 |
|
|
|
135,988 |
|
Additions for current year
tax positions
|
|
|
12,850 |
|
|
|
— |
|
|
|
12,850 |
|
Additions for prior year tax
positions
|
|
|
5,252 |
|
|
|
5,033 |
|
|
|
10,285 |
|
Reductions for prior year
tax positions
|
|
|
(12,898 |
) |
|
|
(2,780 |
) |
|
|
(15,678 |
) |
Reductions due to statute
expirations
|
|
|
(9,159 |
) |
|
|
(647 |
) |
|
|
(9,806 |
) |
Payments in
settlement
|
|
|
(657 |
) |
|
|
(1,742 |
) |
|
|
(2,399 |
) |
Currency
translation
|
|
|
(298 |
) |
|
|
(119 |
) |
|
|
(417 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, December
2014
|
|
|
113,604 |
|
|
|
17,219 |
|
|
|
130,823 |
|
Additions for current year
tax positions
|
|
|
13,470 |
|
|
|
— |
|
|
|
13,470 |
|
Additions for prior year tax
positions
|
|
|
4,396 |
|
|
|
3,188 |
|
|
|
7,584 |
|
Reductions for prior year
tax positions
|
|
|
(32,432 |
) |
|
|
(6,350 |
) |
|
|
(38,782 |
) |
Reductions due to statute
expirations
|
|
|
(11,780 |
) |
|
|
(2,528 |
) |
|
|
(14,308 |
) |
Payments in
settlement
|
|
|
(11,437 |
) |
|
|
(2,065 |
) |
|
|
(13,502 |
) |
Currency
translation
|
|
|
(144 |
) |
|
|
(95 |
) |
|
|
(239 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, December
2015
|
|
$ |
75,677 |
|
|
$ |
9,369 |
|
|
$ |
85,046 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts Included in Consolidated Balance Sheets |
|
|
|
|
|
|
|
|
|
|
|
2015 |
|
|
2014 |
|
|
|
In
thousands |
|
Amounts included in the
Consolidated Balance Sheets:
|
|
|
|
|
|
|
|
|
Unrecognized income tax
benefits, including interest and penalties
|
|
$ |
85,046 |
|
|
$ |
130,823 |
|
Less deferred tax
benefits
|
|
|
11,973 |
|
|
|
23,290 |
|
|
|
|
|
|
|
|
|
|
Total unrecognized tax
benefits
|
|
$ |
73,073 |
|
|
$ |
107,533 |
|
|
|
|
|
|
|
|
|
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|