Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v3.3.1.900
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:

 

      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   
  

 

 

    

 

 

    

 

 

 
Provision for Income Taxes

The provision for income taxes consisted of:

 

     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   
  

 

 

    

 

 

    

 

 

 
Deferred Income Tax Assets and Liabilities

Deferred income tax assets and liabilities consisted of the following:

 

     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   
  

 

 

    

 

 

 

Deferred income tax liabilities

     686,387         676,497   
  

 

 

    

 

 

 

Net deferred income tax assets (liabilities)

   $ (202,163    $ (180,033
  

 

 

    

 

 

 

Amounts included in the Consolidated Balance Sheets (a):

     

Noncurrent assets (Note G)

   $ 39,246       $ 49,431   

Noncurrent liabilities (Note K)

     (241,409      (229,464
  

 

 

    

 

 

 
   $ (202,163    $ (180,033
  

 

 

    

 

 

 

 

(a)

As discussed in Note A , we have presented all deferred tax assets and liabilities as noncurrent.


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
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
  

 

 

   

 

 

    

 

 

 

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