Income Taxes Income Taxes (Tables)

12 Months Ended

Jan. 03, 2015

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

The Company's earnings before income taxes as generated from its U.S. and international operations are as follows (in millions):



	2014		2013			2012
U.S.	$	157	$	(17	)	$	316
International	911		801			689
Earnings before income taxes and noncontrolling interest	$	1,068	$	784		$	1,005

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

Income tax expense consisted of the following (in millions):



	2014			2013			2012
Current:
U.S. federal	$	150		$	101		$	236
U.S. state and other	11			7			16
International	39			108			78
Total current	200			216			330
Deferred	(87		)	(124		)	(77		)
Income tax expense	$	113		$	92		$	253

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

Deferred income taxes result from temporary differences between the amount of assets and liabilities recognized for financial reporting and tax purposes. The components of deferred tax assets and liabilities are as follows (in millions):



	2014			2013
Deferred income tax assets:
Net operating loss carryforwards	$	415		$	402
Tax credit carryforwards	119			75
Inventories	134			136
Stock-based compensation	46			47
Compensation and benefits	131			123
R&D expenditures, capitalized for tax	92			112
Accrued liabilities and other	129			130
	1,066			1,025
Less: valuation allowance	(400		)	(368		)
Deferred income tax assets, net	666			657
Deferred income tax liabilities:
Unrealized gain on available-for-sale securities	(9		)	(11		)
Property, plant and equipment	(171		)	(189		)
Intangible assets	(322		)	(352		)
Deferred income tax liabilities	(502		)	(552		)
Net deferred income tax assets (liabilities)	$	164		$	105

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

A reconciliation of the U.S. federal statutory income tax rate to the Company's effective income tax rate is as follows:



	2014		2013		2012
U.S. federal statutory tax rate	35.0	%	35.0	%	35.0	%
Increase (decrease) in tax rate resulting from:
U.S. state income taxes, net of federal tax benefit	0.2		0.6		0.5
International taxes at lower rates	(19.6	)	(13.6	)	(12.1	)
Tax benefits from domestic manufacturer's deduction	(1.2	)	(1.9	)	(2.2	)
Research and development credits	(2.8	)	(4.6	)	(1.1	)
Puerto Rico excise tax	(1.7	)	(3.0	)	(1.8	)
Tax settlements	—		(1.9	)	4.6
Noncontrolling interest	1.8		3.6		—
Other	(1.1	)	(2.5	)	2.3
Effective income tax rate	10.6	%	11.7	%	25.2	%

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

The following table summarizes the activity related to the Company's uncertain tax positions (in millions):



	2014			2013			2011
Balance at beginning of year	$	315		$	314		$	205
Increases related to current year tax positions	67			74			38
Increases related to prior year tax positions	6			33			90
Reductions related to prior year tax positions	(27		)	(16		)	(18		)
Reductions related to settlements / payments	(27		)	(90		)	(1		)
Expiration of the statute of limitations for the assessment of taxes	(6		)	—			—
Balance at end of year	$	328		$	315		$	314