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v3.20.4

Income Taxes (Tables) | 12 Months Ended
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Jan. 02, 2021
Income Tax Disclosure [Abstract] |
Schedule of Income before Income Tax and Provision for Income Taxes [Table Text Block] |
(millions) |  | 2020 |  | 2019 |  | 2018
Income before income taxes |  |  |  |  |  |
United States |  | $ | 1,018 |  |  | $ | 938 |  |  | $ | 851 |
Foreign |  | 583 |  |  | 367 |  |  | 478 |
|  | 1,601 |  |  | 1,305 |  |  | 1,329 |
Income taxes |  |  |  |  |  |
Currently payable |  |  |  |  |  |
Federal |  | 129 |  |  | 345 |  |  | 7 |
State |  | 26 |  |  | 52 |  |  | 28 |
Foreign |  | 100 |  |  | 77 |  |  | 99 |
|  | 255 |  |  | 474 |  |  | 134 |
Deferred |  |  |  |  |  |
Federal |  | 56 |  |  | (124) |  |  | 109 |
State |  | 9 |  |  | (29) |  |  | (59) |
Foreign |  | 3 |  |  | — |  |  | (3) |
|  | 68 |  |  | (153) |  |  | 47 |
Total income taxes |  | $ | 323 |  |  | $ | 321 |  |  | $ | 181 |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] |
|  | 2020 |  | 2019 |  | 2018
U.S. statutory income tax rate |  | 21.0 | % |  | 21.0 | % |  | 21.0 | %
Foreign rates varying from U.S. statutory rate |  | (2.4) |  |  | (2.5) |  |  | (3.0) |
Excess tax benefits on share-based compensation |  | — |  |  | — |  |  | (0.3) |
State income taxes, net of federal benefit |  | 1.8 |  |  | 1.3 |  |  | 1.5 |
Cost (benefit) of remitted and unremitted foreign earnings |  | 1.0 |  |  | 0.8 |  |  | 0.7 |
Legal entity restructuring, deferred tax impact |  | — |  |  | — |  |  | (3.3) |
Discretionary pension contributions |  | — |  |  | — |  |  | (2.3) |
Revaluation of investment in foreign subsidiary |  | — |  |  | 2.5 |  |  | — |
Net change in valuation allowance |  | 1.4 |  |  | (1.6) |  |  | 2.0 |
Statutory rate changes, deferred tax impact |  | 0.2 |  |  | 0.3 |  |  | — |
U.S. deemed repatriation tax |  | (2.0) |  |  | — |  |  | (1.2) |
Divestiture |  | — |  |  | 2.9 |  |  | — |
Out-of-period adjustment |  | — |  |  | 3.0 |  |  | — |
Other |  | (0.8) |  |  | (3.1) |  |  | (1.5) |
Effective income tax rate |  | 20.2 | % |  | 24.6 | % |  | 13.6 | %
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] |
|  | Deferred tax assets |  | Deferred tax liabilities
(millions) |  | 2020 |  | 2019 |  | 2020 |  | 2019
U.S. state income taxes |  | $ | 7 |  |  | $ | — |  |  | $ | — |  |  | $ | 6 |
Advertising and promotion-related |  | 13 |  |  | 11 |  |  | — |  |  | — |
Wages and payroll taxes |  | 26 |  |  | 15 |  |  | — |  |  | — |
Inventory valuation |  | 17 |  |  | 17 |  |  | — |  |  | — |
Employee benefits |  | 118 |  |  | 143 |  |  | — |  |  | — |
Operating loss, credit and other carryforwards |  | 329 |  |  | 279 |  |  | — |  |  | — |
Hedging transactions |  | 49 |  |  | — |  |  | — |  |  | 18 |
Depreciation and asset disposals |  | — |  |  | — |  |  | 234 |  |  | 217 |
Operating lease right-of-use assets |  | — |  |  | — |  |  | 141 |  |  | 111 |
Operating lease liabilities |  | 136 |  |  | 111 |  |  | — |  |  | — |
Trademarks and other intangibles |  | — |  |  | — |  |  | 527 |  |  | 526 |
Deferred compensation |  | 18 |  |  | 19 |  |  | — |  |  | — |
Stock options |  | 32 |  |  | 29 |  |  | — |  |  | — |
Other |  | 41 |  |  | 36 |  |  | — |  |  | — |
|  | 786 |  |  | 660 |  |  | 902 |  |  | 878 |
Less valuation allowance |  | (192) |  |  | (146) |  |  | — |  |  | — |
Total deferred taxes |  | $ | 594 |  |  | $ | 514 |  |  | $ | 902 |  |  | $ | 878 |
Net deferred tax asset (liability) |  | $ | (308) |  |  | $ | (364) |  |  |  |  |
Classified in balance sheet as: |  |  |  |  |  |  |  |
Other assets |  | $ | 254 |  |  | $ | 231 |  |  |  |  |
Other liabilities |  | (562) |  |  | (595) |  |  |  |  |
Net deferred tax asset (liability) |  | $ | (308) |  |  | $ | (364) |  |  |  |  |
Summary of Valuation Allowance [Table Text Block] |
(millions) |  | 2020 |  | 2019 |  | 2018
Balance at beginning of year |  | $ | 146 |  |  | $ | 166 |  |  | $ | 153 |
Additions charged to income tax expense (b) |  | 62 |  |  | 25 |  |  | 29 |
Reductions credited to income tax expense (a) |  | (24) |  |  | (47) |  |  | (1) |
Currency translation adjustments |  | 8 |  |  | 2 |  |  | (15) |
Balance at end of year |  | $ | 192 |  |  | $ | 146 |  |  | $ | 166 |
Summary of Positions for which Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Table Text Block] |
(millions) |  | 2020 |  | 2019 |  | 2018
Balance at beginning of year |  | $ | 90 |  |  | $ | 97 |  |  | $ | 60 |
Tax positions related to current year: |  |  |  |  |  |
Additions (a) |  | 5 |  |  | 5 |  |  | 51 |
Tax positions related to prior years: |  |  |  |  |  |
Additions |  | 8 |  |  | 4 |  |  | 4 |
Reductions (b) |  | (35) |  |  | (14) |  |  | (13) |
Settlements |  | (2) |  |  | (1) |  |  | (4) |
Lapses in statutes of limitation |  | (1) |  |  | (1) |  |  | (1) |
Balance at end of year |  | $ | 65 |  |  | $ | 90 |  |  | $ | 97 |
(a) During the fourth quarter of 2018, the Company recorded, as part of its final estimate under SAB 118, $47 million of tax reserves related to uncertainty in our interpretation of the statute and associated regulations. (b) During the third quarter of 2020, the Company released $32 million of tax reserves as a result of finalization of an IRS tax examination.

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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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32687-109319 + Details
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- Definition Tabular disclosure of unrecognized tax benefits for which a material change is reasonably possible in the next twelve months, typically including the nature of the uncertainty, the event(s) that could cause a material change, and an estimate of the range of the reasonably possible change or a statement that an estimate of the range cannot be made. An unrecognized tax benefit is the difference between a tax position taken in a tax return and the amounts recognized in the financial statements for which it is more likely than not, based on the technical merits of the position, that the tax position will not be sustained upon examination. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32718-109319 + Details
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