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v2.4.1.9

Income Taxes (Tables) | 12 Months Ended
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Jan. 03, 2015
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:
|  | 2014 |  |  | 2013 |  |  | 2012 |
|  | In thousands |
Domestic |  | $ | 460,561 |  |  | $ | 735,177 |  |  | $ | 663,380 |
Foreign |  |  | 891,805 |  |  |  | 827,313 |  |  |  | 758,495 |
Income before income taxes |  | $ | 1,352,366 |  |  | $ | 1,562,490 |  |  | $ | 1,421,875 |
Provision for Income Taxes | The provision for income taxes consisted of:
|  | 2014 |  |  | 2013 |  |  | 2012 |
|  | In thousands |
Current: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | 205,618 |  |  | $ | 238,816 |  |  | $ | 231,282 |
Foreign |  |  | 138,634 |  |  |  | 103,752 |  |  |  | 100,635 |
State |  |  | 38,673 |  |  |  | 22,173 |  |  |  | 24,617 |
|  |  | 382,925 |  |  |  | 364,741 |  |  |  | 356,534 |
Deferred: |  |  |  |  |  |  |  |  |  |  |  |
Federal and state |  |  | (78,362 | ) |  |  | (15,265 | ) |  |  | (13,999 | )
Foreign |  |  | 298 |  |  |  | 2,895 |  |  |  | (6,798 | )
Income taxes |  | $ | 304,861 |  |  | $ | 352,371 |  |  | $ | 335,737 |
Differences Between Income Taxes Computed by Applying Statutory Federal Income Tax Rate and Income Tax Expense in Consolidated Financial Statements | The differences between income taxes computed by applying the statutory federal income tax rate and income tax expense in the consolidated financial statements are as follows:
|  | 2014 |  |  | 2013 |  |  | 2012 |
|  | In thousands |
Tax at federal statutory rate |  | $ | 473,328 |  |  | $ | 546,872 |  |  | $ | 497,656 |
State income taxes, net of federal tax benefit |  |  | 21,636 |  |  |  | 19,653 |  |  |  | 24,304 |
Foreign rate differences |  |  | (230,190 | ) |  |  | (187,513 | ) |  |  | (165,318 | )
Goodwill impairment |  |  | 49,840 |  |  |  | — |  |  |  | — |
Change in valuation allowances |  |  | — |  |  |  | (3,422 | ) |  |  | (33,060 | )
Tax credits |  |  | (4,219 | ) |  |  | (16,742 | ) |  |  | — |
Other |  |  | (5,534 | ) |  |  | (6,477 | ) |  |  | 12,155 |
Income taxes |  | $ | 304,861 |  |  | $ | 352,371 |  |  | $ | 335,737 |
Deferred Income Tax Assets and Liabilities | Deferred income tax assets and liabilities consisted of the following:
|  | 2014 |  |  | 2013 |
|  | In thousands |
Deferred income tax assets: |  |  |  |  |  |  |  |
Inventories |  | $ | 34,430 |  |  | $ | 29,325 |
Employee compensation and benefits |  |  | 257,187 |  |  |  | 272,910 |
Other accrued expenses |  |  | 162,843 |  |  |  | 168,669 |
Operating loss carryforwards |  |  | 115,259 |  |  |  | 122,895 |
Capital loss carryforwards |  |  | — |  |  |  | 769 |
|  |  | 569,719 |  |  |  | 594,568 |
Valuation allowances |  |  | (96,802 | ) |  |  | (107,521 | )
Deferred income tax assets |  |  | 472,917 |  |  |  | 487,047 |
Deferred income tax liabilities: |  |  |  |  |  |  |  |
Intangible assets |  |  | 652,950 |  |  |  | 761,140 |
Other deferred liabilities |  |  | — |  |  |  | 1,922 |
Deferred income tax liabilities |  |  | 652,950 |  |  |  | 763,062 |
Net deferred income tax assets (liabilities) |  | $ | (180,033 | ) |  | $ | (276,015 | )
Amounts included in the Consolidated Balance Sheets: |  |  |  |  |  |  |  |
Current assets |  | $ | 154,285 |  |  | $ | 169,321 |
Current liabilities (Note J) |  |  | (6,176 | ) |  |  | (9,367 | )
Noncurrent assets (Note H) |  |  | 20,252 |  |  |  | 16,537 |
Noncurrent liabilities (Note L) |  |  | (348,394 | ) |  |  | (452,506 | )
|  | $ | (180,033 | ) |  | $ | (276,015 | )
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 2011 |  | $ | 104,959 |  |  | $ | 13,132 |  |  | $ | 118,091 |
Additions for current year tax positions |  |  | 18,930 |  |  |  | — |  |  |  | 18,930 |
Additions for prior year tax positions |  |  | 39,616 |  |  |  | 6,199 |  |  |  | 45,815 |
Reductions for prior year — Timberland acquisition |  |  | (5,707 | ) |  |  | 151 |  |  |  | (5,556 | )
Reductions for prior year tax positions |  |  | (19,678 | ) |  |  | (2,314 | ) |  |  | (21,992 | )
Reductions due to statute expirations |  |  | (2,765 | ) |  |  | (207 | ) |  |  | (2,972 | )
Payments in settlement |  |  | (313 | ) |  |  | (140 | ) |  |  | (453 | )
Currency translation |  |  | 252 |  |  |  | — |  |  |  | 252 |
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 |
Amounts Included in Consolidated Balance Shee |
|  | 2014 |  |  | 2013 |
|  | In thousands |
Amounts included in the Consolidated Balance Sheets: |  |  |  |  |  |  |  |
Unrecognized income tax benefits, including interest and penalties |  | $ | 130,823 |  |  | $ | 135,988 |
Less deferred tax benefits |  |  | 23,290 |  |  |  | 26,438 |
Total unrecognized tax benefits |  | $ | 107,533 |  |  | $ | 109,550 |

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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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