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Income Taxes (Tables) | 12 Months Ended
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Dec. 26, 2015
Income Tax Disclosure [Abstract] |
Income before income taxes | U.S. and foreign income before taxes are set forth below:
|  | 2015 |  | 2014 |  | 2013
U.S. |  | $ | 471 |  |  | $ | 506 |  |  | $ | 464 |
Foreign |  | 1,316 |  |  | 921 |  |  | 1,087 |
|  | $ | 1,787 |  |  | $ | 1,427 |  |  | $ | 1,551 |
Details of income tax provision (benefit) | The details of our income tax provision (benefit) are set forth below:
|  |  |  | 2015 |  | 2014 |  | 2013
Current: |  | Federal |  | $ | 287 |  |  | $ | 255 |  |  | $ | 159 |
|  | Foreign |  | 263 |  |  | 321 |  |  | 330 |
|  | State |  | 28 |  |  | 2 |  |  | 22 |
|  |  |  | $ | 578 |  |  | $ | 578 |  |  | 511 |
Deferred: |  | Federal |  | $ | (143 | ) |  | $ | (67 | ) |  | 42 |
|  | Foreign |  | 54 |  |  | (106 | ) |  | (53 | )
|  | State |  | — |  |  | 1 |  |  | (13 | )
|  |  |  | $ | (89 | ) |  | $ | (172 | ) |  | $ | (24 | )
|  |  |  | $ | 489 |  |  | $ | 406 |  |  | $ | 487 |
Effective income tax and tax rate reconciliation | The reconciliation of income taxes calculated at the U.S. federal statutory rate to our effective tax rate is set forth below:
|  | 2015 |  | 2014 |  | 2013
U.S. federal statutory rate |  | $ | 625 |  |  | 35.0 | % |  | $ | 500 |  |  | 35.0 | % |  | $ | 543 |  |  | 35.0 | %
State income tax, net of federal tax benefit |  | 12 |  |  | 0.7 |  |  | 8 |  |  | 0.6 |  |  | 3 |  |  | 0.2 |
Statutory rate differential attributable to foreign operations |  | (210 | ) |  | (11.8 | ) |  | (168 | ) |  | (11.7 | ) |  | (177 | ) |  | (11.4 | )
Adjustments to reserves and prior years |  | 12 |  |  | 0.7 |  |  | (5 | ) |  | (0.3 | ) |  | 49 |  |  | 3.1 |
Change in valuation allowances |  | 54 |  |  | 3.0 |  |  | 35 |  |  | 2.4 |  |  | 23 |  |  | 1.5 |
Other, net |  | (4 | ) |  | (0.3 | ) |  | 36 |  |  | 2.5 |  |  | 46 |  |  | 3.0 |
Effective income tax rate |  | $ | 489 |  |  | 27.3 | % |  | $ | 406 |  |  | 28.5 | % |  | $ | 487 |  |  | 31.4 | %
Details of deferred tax assets (liabilities) | The details of 2015 and 2014 deferred tax assets (liabilities) are set forth below:
|  | 2015 |  | 2014
Operating losses |  | $ | 239 |  |  | $ | 271 |
Tax credit carryforwards |  | 282 |  |  | 162 |
Employee benefits |  | 154 |  |  | 238 |
Share-based compensation |  | 126 |  |  | 119 |
Self-insured casualty claims |  | 36 |  |  | 42 |
Lease-related liabilities |  | 112 |  |  | 119 |
Various liabilities |  | 82 |  |  | 73 |
Property, plant and equipment |  | 33 |  |  | 39 |
Deferred income and other |  | 86 |  |  | 102 |
Gross deferred tax assets |  | 1,150 |  |  | 1,165 |
Deferred tax asset valuation allowances |  | (250 | ) |  | (228 | )
Net deferred tax assets |  | $ | 900 |  |  | $ | 937 |
Intangible assets, including goodwill |  | $ | (130 | ) |  | $ | (148 | )
Property, plant and equipment |  | (56 | ) |  | (63 | )
Other |  | (70 | ) |  | (104 | )
Gross deferred tax liabilities |  | $ | (256 | ) |  | $ | (315 | )
Net deferred tax assets (liabilities) |  | $ | 644 |  |  | $ | 622 |
Reported in Consolidated Balance Sheets as: |  |  |  |
Deferred income taxes |  | $ | 676 |  |  | $ | 653 |
Other liabilities and deferred credits |  | (32 | ) |  | (31 | )
|  | $ | 644 |  |  | $ | 622 |
Loss carryforwards, by year of expiration | At December 26, 2015, 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 $1.0 billion and U.S. federal capital loss and tax credit carryforwards of $0.3 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 |  |
|  | 2016 |  | 2017-2020 |  | 2021-2035 |  | Indefinitely |  | Total
Foreign |  | $ | 5 |  |  | $ | 211 |  |  | $ | 98 |  |  | $ | 305 |  |  | $ | 619 |
U.S. state |  | 53 |  |  | 26 |  |  | 876 |  |  | — |  |  | 955 |
U.S. federal |  | 64 |  |  | — |  |  | 277 |  |  | — |  |  | 341 |
|  | $ | 122 |  |  | $ | 237 |  |  | $ | 1,251 |  |  | $ | 305 |  |  | $ | 1,915 |
Unrecognized tax benefits reconciliation | The Company had $98 million and $115 million of unrecognized tax benefits at December 26, 2015 and December 27, 2014, respectively, $89 million and $98 million of which are temporary in nature and if recognized, would not impact the effective income tax rate. A reconciliation of the beginning and ending amount of unrecognized tax benefits follows:
|  | 2015 |  | 2014
Beginning of Year |  | $ | 115 |  |  | $ | 243 |
Additions on tax positions - current year |  | — |  |  | 19 |
Additions for tax positions - prior years |  | 5 |  |  | 31 |
Reductions for tax positions - prior years |  | (13 | ) |  | (20 | )
Reductions for settlements |  | (7 | ) |  | (144 | )
Reductions due to statute expiration |  | (2 | ) |  | (13 | )
Foreign currency translation adjustment |  | — |  |  | (1 | )
End of Year |  | $ | 98 |  |  | $ | 115 |
Summary of income tax examinations | The Company has settled audits with the IRS through fiscal year 2008. Our operations in certain foreign jurisdictions remain subject to examination for tax years as far back as 2005, some of which years are currently under audit by local tax authorities. 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 26, 2015, each of which is individually insignificant. The accrued interest and penalties related to income taxes at December 26, 2015 and December 27, 2014 are set forth below:
|  | 2015 |  | 2014
Accrued interest and penalties |  | $ | 15 |  |  | $ | 5 |

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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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