Taxes on Earnings (Tables)

12 Months Ended

Aug. 02, 2020

Income Tax Disclosure [Abstract]

Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]

The provision for income taxes on earnings from continuing operations consists of the following:

	2020		2019		2018
Income taxes:
Currently payable:
Federal	$	152	$	104	$	93
State	26		19		26
Non-U.S.	3		5		11
	181		128		130
Deferred:
Federal	(12)		19		(26)
State	4		7		14
Non-U.S.	1		(3)		(12)
	(7)		23		(24)
	$	174	$	151	$	106

Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block]

	2020		2019		2018
Earnings from continuing operations before income taxes:
United States	$	737	$	624	$	832
Non-U.S.	29		1		(2)
	$	766	$	625	$	830

Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]

The following is a reconciliation of the effective income tax rate on continuing operations to the U.S. federal statutory income tax rate:

	2020		2019		2018
Federal statutory income tax rate	21.0	%	21.0	%	21.0	%
State income taxes (net of federal tax benefit)	3.5		2.2		3.0
Tax effect of international items	(0.3)		—		(0.5)
Federal manufacturing deduction	—		—		(1.4)
Tax Reform - impact on U.S. deferred tax assets and liabilities(1)	—		—		(21.7)
Tax Reform - transition tax(1)	—		0.3		6.4
Effect of higher U.S. federal statutory tax rate(1)	—		—		5.3
Divestiture impact on deferred taxes	—		1.2		—
Benefit on sale of the European chips business	(1.3)		—		—
Other	(0.2)		(0.5)		0.7
Effective income tax rate	22.7	%	24.2	%	12.8	%

_______________________________________

⁽¹⁾The Tax Cuts and Jobs Act of 2017 (the Act) was enacted into law on December 22, 2017, and made significant changes to corporate taxation. Changes under the Act included:

•Reducing the federal corporate tax rate from 35% to 21% effective January 1, 2018. A blended rate applied for fiscal 2018 non-calendar year end companies for the fiscal periods that included the effective date of the rate change. The impact of this is shown as "Effect of higher U.S. federal statutory tax rate;"

•Repealing the exception for deductibility of performance-based compensation to covered employees, which impacted us beginning in 2019, along with expanding the number of covered employees;

•Transitioning to a territorial system for taxation on foreign earnings along with the imposition of a transition tax in 2018 on the deemed repatriation of unremitted foreign earnings;

•Immediate expensing of machinery and equipment placed into service after September 27, 2017;

•Eliminating the deduction for domestic manufacturing activities, which impacted us beginning in 2019;

•Changes to the taxation of multinational companies, including a new minimum tax on Global Intangible Low-Taxed Income, a new Base Erosion Anti-Abuse Tax, and a new U.S. corporate deduction for Foreign-Derived Intangible Income, all of which were effective for us beginning in 2019; and

•Limiting the deductibility of interest expense to 30% of adjusted taxable income, which was effective for us beginning in 2019.

As a result of the Act, we recognized a benefit of $179 in 2018 on the remeasurement of deferred tax assets and liabilities and expenses of $2 in 2019 and $53 in 2018 on the transition tax on unremitted foreign earnings.

Schedule of Deferred Tax Assets and Liabilities [Table Text Block]

Deferred tax liabilities and assets of continuing operations and discontinued operations are comprised of the following:

	2020		2019
Depreciation	$	319	$	336
Amortization	856		877
Other	9		16
Deferred tax liabilities	1,184		1,229
Benefits and compensation	144		157
Pension benefits	58		46
Tax loss carryforwards	31		43
Capital loss carryforwards	95		287
Outside basis difference	—		116
Other	65		82
Gross deferred tax assets	393		731
Deferred tax asset valuation allowance	(122)		(427)
Deferred tax assets, net of valuation allowance	271		304
Net deferred tax liability	$	913	$	925

Schedule of Unrecognized Tax Benefits Roll Forward [Table Text Block]

A reconciliation of the activity related to unrecognized tax benefits follows:

	2020		2019		2018
Balance at beginning of year	$	24	$	32	$	64
Increases related to prior-year tax positions	—		1		—
Decreases related to prior-year tax positions	(1)		(1)		(37)
Increases related to current-year tax positions	2		2		2
Settlements	(1)		(9)		(1)
Lapse of statute	(1)		(1)		—
Increase due to acquisitions	—		—		4
Balance at end of year	$	23	$	24	$	32