v2.4.0.8

Income Taxes (Tables) | 12 Months Ended
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Dec. 28, 2013
Income Tax Disclosure [Abstract] |
Income before income taxes | U.S. and foreign income before taxes are set forth below:
|  | 2013 |  | 2012 |  | 2011
U.S. |  | $ | 464 |  |  | $ | 504 |  |  | $ | 266 |
Foreign |  | 1,087 |  |  | 1,641 |  |  | 1,393 |
|  | $ | 1,551 |  |  | $ | 2,145 |  |  | $ | 1,659 |
Details of income tax provision (benefit) | The details of our income tax provision (benefit) are set forth below:
|  |  |  | 2013 |  | 2012 |  | 2011
Current: |  | Federal |  | $ | 159 |  |  | $ | 160 |  |  | $ | 78 |
|  | Foreign |  | 330 |  |  | 314 |  |  | 374 |
|  | State |  | 22 |  |  | 35 |  |  | 9 |
|  |  |  | $ | 511 |  |  | $ | 509 |  |  | 461 |
Deferred: |  | Federal |  | $ | 42 |  |  | $ | 91 |  |  | (83 | )
|  | Foreign |  | (53 | ) |  | (57 | ) |  | (40 | )
|  | State |  | (13 | ) |  | (6 | ) |  | (14 | )
|  |  |  | (24 | ) |  | 28 |  |  | (137 | )
|  |  |  | $ | 487 |  |  | $ | 537 |  |  | $ | 324 |
Effective income tax and tax rate reconciliation | The reconciliation of income taxes calculated at the U.S. federal tax statutory rate to our effective tax rate is set forth below:
|  | 2013 |  | 2012 |  | 2011
U.S. federal statutory rate |  | $ | 543 |  |  | 35.0 | % |  | $ | 751 |  |  | 35.0 | % |  | $ | 580 |  |  | 35.0 | %
State income tax, net of federal tax benefit |  | 3 |  |  | 0.2 |  |  | 4 |  |  | 0.2 |  |  | 2 |  |  | 0.1 |
Statutory rate differential attributable to foreign operations |  | (177 | ) |  | (11.4 | ) |  | (165 | ) |  | (7.7 | ) |  | (218 | ) |  | (13.1 | )
Adjustments to reserves and prior years |  | 49 |  |  | 3.1 |  |  | (47 | ) |  | (2.2 | ) |  | 24 |  |  | 1.4 |
Net benefit from LJS and A&W divestitures |  | — |  |  | — |  |  | — |  |  | — |  |  | (72 | ) |  | (4.3 | )
Change in valuation allowances |  | 23 |  |  | 1.5 |  |  | 14 |  |  | 0.6 |  |  | 22 |  |  | 1.3 |
Other, net |  | 46 |  |  | 3.0 |  |  | (20 | ) |  | (0.9 | ) |  | (14 | ) |  | (0.9 | )
Effective income tax rate |  | $ | 487 |  |  | 31.4 | % |  | $ | 537 |  |  | 25.0 | % |  | $ | 324 |  |  | 19.5 | %
Details of deferred tax assets (liabilities) | The details of 2013 and 2012 deferred tax assets (liabilities) are set forth below:
|  | 2013 |  | 2012
Operating losses and tax credit carryforwards |  | $ | 310 |  |  | $ | 337 |
Employee benefits |  | 182 |  |  | 251 |
Share-based compensation |  | 118 |  |  | 108 |
Self-insured casualty claims |  | 48 |  |  | 50 |
Lease-related liabilities |  | 120 |  |  | 115 |
Various liabilities |  | 88 |  |  | 82 |
Property, plant and equipment |  | 42 |  |  | 39 |
Deferred income and other |  | 58 |  |  | 57 |
Gross deferred tax assets |  | 966 |  |  | 1,039 |
Deferred tax asset valuation allowances |  | (203 | ) |  | (200 | )
Net deferred tax assets |  | $ | 763 |  |  | $ | 839 |
Intangible assets, including goodwill |  | $ | (233 | ) |  | $ | (256 | )
Property, plant and equipment |  | (93 | ) |  | (95 | )
Other |  | (55 | ) |  | (48 | )
Gross deferred tax liabilities |  | $ | (381 | ) |  | $ | (399 | )
Net deferred tax assets (liabilities) |  | $ | 382 |  |  | $ | 440 |
Reported in Consolidated Balance Sheets as: |  |  |  |
Deferred income taxes – current |  | $ | 123 |  |  | $ | 127 |
Deferred income taxes – long-term |  | 399 |  |  | 467 |
Accounts payable and other current liabilities |  | (2 | ) |  | (5 | )
Other liabilities and deferred credits |  | (138 | ) |  | (149 | )
|  | $ | 382 |  |  | $ | 440 |
Loss carryforwards, by year of expiration | At December 28, 2013, the Company has foreign operating and capital loss carryforwards of $0.6 billion and U.S. state operating loss, capital loss and tax credit carryforwards of $1.2 billion and U.S. federal capital loss and tax credit carryforwards of $0.2 billion. These losses are being carried forward in jurisdictions where we are permitted to use tax losses from prior periods to reduce future taxable income and will expire as follows:
|  | Year of Expiration |  |
|  | 2014 |  | 2015-2018 |  | 2019-2033 |  | Indefinitely |  | Total
Foreign |  | $ | 38 |  |  | $ | 132 |  |  | $ | 91 |  |  | $ | 325 |  |  | $ | 586 |
U.S. state |  | 16 |  |  | 105 |  |  | 1,040 |  |  | — |  |  | 1,161 |
U.S. federal |  | — |  |  | 90 |  |  | 64 |  |  | — |  |  | 154 |
|  | $ | 54 |  |  | $ | 327 |  |  | $ | 1,195 |  |  | $ | 325 |  |  | $ | 1,901 |
Unrecognized tax benefits reconciliation | The Company had $243 million and $309 million of unrecognized tax benefits at December 28, 2013 and December 29, 2012, respectively, $170 million and $184 million of which, if recognized, would impact the effective income tax rate. A reconciliation of the beginning and ending amount of unrecognized tax benefits follows:
|  | 2013 |  | 2012
Beginning of Year |  | $ | 309 |  |  | $ | 348 |
Additions on tax positions - current year |  | 19 |  |  | 50 |
Additions for tax positions - prior years |  | 55 |  |  | 23 |
Reductions for tax positions - prior years |  | (102 | ) |  | (90 | )
Reductions for settlements |  | (23 | ) |  | (6 | )
Reductions due to statute expiration |  | (16 | ) |  | (16 | )
Foreign currency translation adjustment |  | 1 |  |  | — |
End of Year |  | $ | 243 |  |  | $ | 309 |
Summary of income tax examinations | The following table summarizes our major jurisdictions and the tax years that are either currently under audit or remain open and subject to examination:
Jurisdiction |  | Open Tax Years
U.S. Federal |  | 2004 – 2013
China |  | 2010 – 2013
United Kingdom |  | 2010 – 2013
Mexico |  | 2006 – 2013
Australia |  | 2009 – 2013
In addition, the Company is subject to various U.S. state income tax examinations, for which, in the aggregate, we had significant unrecognized tax benefits at December 28, 2013, each of which is individually insignificant. The accrued interest and penalties related to income taxes at December 28, 2013 and December 29, 2012 are set forth below:
|  | 2013 |  | 2012
Accrued interest and penalties |  | $ | 64 |  |  | $ | 50 |

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- Definition Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319 + Details
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- Definition Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319 + Details
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- Definition Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32687-109319 + Details
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- Definition Tabular disclosure of tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities (i.e., uncertain tax positions) and other types of income tax contingencies, including: (1) the policy on classification of interest and penalties; (2) a tabular reconciliation of the total amounts of unrecognized tax benefits at the beginning and end of the period; the total amount(s) of: (3) unrecognized tax benefits that, if recognized, would affect the effective tax rate, and (4) interest and penalties recognized in each of the income statement and balance sheet; (5) for positions for which it is reasonably possible that the total amounts unrecognized will significantly change within 12 months of the reporting date the: (i) nature of the uncertainty, (ii) nature of the event that could occur that would cause the change, and (iii) an estimate of the range of the reasonably possible change or a statement that an estimate of the range cannot be made; and (6) a description of tax years that remain subject to examination by major tax jurisdictions. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319 + Details
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