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INCOME TAXES (Tables) | 12 Months Ended
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Dec. 28, 2013
Schedule of Components of Earnings (Loss) Before Income Taxes | The components of income (loss) before income taxes consisted of the following:
(In millions) |  | 2013 |  |  | 2012 |  |  | 2011 |
United States |  | $ | (230 | ) |  | $ | (129 | ) |  | $ | (4 | )
Foreign |  |  | 357 |  |  |  | 54 |  |  |  | 37 |
Total income (loss) before income taxes |  | $ | 127 |  |  | $ | (75 | ) |  | $ | 33 |
Schedule of Income Tax Expense (Benefit) Related To Earnings (Loss) From Operations | The income tax expense (benefit) related to income (loss) from operations consisted of the following:
(In millions) |  | 2013 |  |  | 2012 |  |  | 2011 |
Current: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | 15 |  |  | $ | (14 | ) |  | $ | (59 | )
State |  |  | 5 |  |  |  | 1 |  |  |  | (4 | )
Foreign |  |  | 125 |  |  |  | 14 |  |  |  | 15 |
Deferred : |  |  |  |  |  |  |  |  |  |  |  |
Federal |  |  | (4 | ) |  |  | (5 | ) |  |  | — |
State |  |  | (1 | ) |  |  | — |  |  |  | — |
Foreign |  |  | 7 |  |  |  | 6 |  |  |  | (15 | )
Total income tax expense (benefit) |  | $ | 147 |  |  | $ | 2 |  |  | $ | (63 | )
Reconciliation Of Income Taxes At The Federal Statutory Rate To The Provision (Benefit) For Income Taxes | The following is a reconciliation of income taxes at the U.S. Federal statutory rate to the provision (benefit) for income taxes:
(In millions) |  | 2013 |  |  | 2012 |  |  | 2011 |
Federal tax computed at the statutory rate |  | $ | 44 |  |  | $ | (26 | ) |  | $ | 11 |
State taxes, net of Federal benefit |  |  | 3 |  |  |  | 1 |  |  |  | 1 |
Foreign income taxed at rates other than Federal |  |  | (28 | ) |  |  | (15 | ) |  |  | (22 | )
Increase (decrease) in valuation allowance |  |  | 8 |  |  |  | (9 | ) |  |  | (8 | )
Non-deductible goodwill impairment |  |  | 15 |  |  |  | 0 |  |  |  | 0 |
Non-deductible Merger expenses |  |  | 13 |  |  |  | 0 |  |  |  | 0 |
Non-deductible foreign interest |  |  | 8 |  |  |  | 10 |  |  |  | 12 |
Change in unrecognized tax benefits |  |  | — |  |  |  | 1 |  |  |  | (77 | )
Tax expense from intercompany transactions |  |  | 2 |  |  |  | 2 |  |  |  | 5 |
Subpart F and dividend income, net of foreign tax credits |  |  | 75 |  |  |  | — |  |  |  | 10 |
Change in tax rate |  |  | 2 |  |  |  | 2 |  |  |  | 2 |
Non-taxable return of purchase price |  |  | — |  |  |  | (22 | ) |  |  | — |
Deferred taxes on undistributed foreign earnings |  |  | 5 |  |  |  | 68 |  |  |  | — |
Tax accounting method change ruling |  |  | — |  |  |  | (16 | ) |  |  | — |
Other items, net |  |  | — |  |  |  | 6 |  |  |  | 3 |
Income tax expense (benefit) |  | $ | 147 |  |  | $ | 2 |  |  | $ | (63 | )
Schedule of Components Deferred Income Tax Assets and Liabilities | The components of deferred income tax assets and liabilities consisted of the following:
(In millions) |  | December 28, 2013 |  |  | December 29, 2012 |
U.S. and foreign net operating loss carryforwards |  | $ | 314 |  |  | $ | 367 |
Deferred rent credit |  |  | 97 |  |  |  | 95 |
Pension and other accrued compensation |  |  | 170 |  |  |  | 61 |
Accruals for facility closings |  |  | 38 |  |  |  | 21 |
Inventory |  |  | 25 |  |  |  | 14 |
Self-insurance accruals |  |  | 33 |  |  |  | 19 |
Deferred revenue |  |  | 34 |  |  |  | 7 |
U.S. and foreign income tax credit carryforwards |  |  | 234 |  |  |  | 8 |
Allowance for bad debts |  |  | 8 |  |  |  | 3 |
Accrued expenses |  |  | 60 |  |  |  | 24 |
Basis difference in fixed assets |  |  | 15 |  |  |  | 40 |
Other items, net |  |  | 6 |  |  |  | 41 |
Gross deferred tax assets |  |  | 1,034 |  |  |  | 700 |
Valuation allowance |  |  | (683 | ) |  |  | (583 | )
Deferred tax assets |  |  | 351 |  |  |  | 117 |
Internal software |  |  | 22 |  |  |  | 3 |
Installment gain on sale of timberlands |  |  | 258 |  |  |  | — |
Deferred Subpart F income |  |  | 23 |  |  |  | 11 |
Undistributed foreign earnings |  |  | 12 |  |  |  | 72 |
Deferred tax liabilities |  |  | 315 |  |  |  | 86 |
Net deferred tax assets |  | $ | 36 |  |  | $ | 31 |
Deferred Tax Assets And Liabilities Classified In Balance Sheet | For financial reporting purposes, a jurisdictional netting process is applied to deferred tax assets and deferred tax liabilities, resulting in the balance sheet classification shown below.
(In millions) |  | December 28, 2013 |  |  | December 29, 2012 |
Deferred tax assets: |  |  |  |  |  |  |  |
Included in Prepaid and other current assets |  | $ | 114 |  |  | $ | 37 |
Deferred income taxes — noncurrent |  |  | 35 |  |  |  | 33 |
Deferred tax liabilities: |  |  |  |  |  |  |  |
Included in Accrued expenses and other current liabilities |  |  | 3 |  |  |  | 5 |
Included in Deferred income taxes and other long-term liabilities |  |  | 110 |  |  |  | 34 |
Net deferred tax asset |  | $ | 36 |  |  | $ | 31 |
Summary of Valuation Allowances | The following summarizes the activity related to valuation allowances for deferred tax assets:
(In millions) |  | 2013 |  |  | 2012 |  |  | 2011 |
Beginning balance |  | $ | 583 |  |  | $ | 622 |  |  | $ | 649 |
Additions, charged to expense |  |  | 26 |  |  |  | — |  |  |  | — |
Additions, due to the Merger |  |  | 84 |  |  |  | — |  |  |  | — |
Deductions |  |  | (10 | ) |  |  | (39 | ) |  |  | (27 | )
Ending balance |  | $ | 683 |  |  | $ | 583 |  |  | $ | 622 |
Summary of Activity Related to Unrecognized Tax Benefits | The following table summarizes the activity related to unrecognized tax benefits:
(In millions) |  | 2013 |  |  | 2012 |  |  | 2011 |
Beginning balance |  | $ | 5 |  |  | $ | 7 |  |  | $ | 111 |
Increase related to current year tax positions |  |  | 4 |  |  |  | — |  |  |  | — |
Increase related to prior year tax positions |  |  | — |  |  |  | 3 |  |  |  | 471 |
Decrease related to prior year tax positions |  |  | — |  |  |  | (1 | ) |  |  | (40 | )
Decrease related to lapse of statute of limitations |  |  | — |  |  |  | — |  |  |  | (60 | )
Decrease related to settlements with taxing authorities |  |  | — |  |  |  | (4 | ) |  |  | (475 | )
Increase related to the Merger |  |  | 6 |  |  |  | — |  |  |  | — |
Ending balance |  | $ | 15 |  |  | $ | 5 |  |  | $ | 7 |

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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 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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