Income Taxes (Tables)

12 Months Ended

Jan. 02, 2016

Income Tax Disclosure [Abstract]

Schedule of Income before Income Tax, Domestic and Foreign

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

	2015			2014		2013
U.S.	$	(107	)	$	157	$	(17	)
International	1,035			911		801
Earnings before income taxes and noncontrolling interest	$	928		$	1,068	$	784

Schedule of Components of Income Tax Expense (Benefit)

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

	2015			2014			2013
Current:
U.S. federal	$	64		$	151		$	104
U.S. state and other	2			11			7
International	56			39			108
Total current	122			201			219
Deferred	(60		)	(88		)	(127		)
Income tax expense	$	62		$	113		$	92

Schedule of Deferred Tax Assets and Liabilities

The components of deferred tax assets and liabilities are as follows (in millions):

	2015			2014
Deferred income tax assets:
Net operating loss carryforwards	$	350		$	415
Tax credit carryforwards	144			119
Inventories	34			30
Stock-based compensation	56			46
Compensation and benefits	143			131
R&D expenditures, capitalized for tax	80			92
Accrued liabilities and other	124			129
	931			962
Less: valuation allowance	(337		)	(400		)
Deferred income tax assets, net	594			562
Deferred income tax liabilities:
Unrealized gain on available-for-sale securities	(1		)	(9		)
Unrealized gain on derivative financial instruments	(4		)	—
Property, plant and equipment	(166		)	(171		)
Intangible assets	(853		)	(322		)
Deferred income tax liabilities	(1,024		)	(502		)
Net deferred income tax assets (liabilities)	$	(430	)	$	60

Schedule of Effective Income Tax Rate Reconciliation

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

	2015		2014		2013
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	(0.1	)	0.2		0.6
International taxes at lower rates	(22.6	)	(19.6	)	(13.6	)
Tax benefits from domestic manufacturer's deduction	(1.0	)	(1.2	)	(1.9	)
Research and development credits	(2.7	)	(2.8	)	(4.6	)
Puerto Rico excise tax	(2.4	)	(1.7	)	(3.0	)
Reversal of excess tax accruals	(2.8	)	—		(1.9	)
Noncontrolling interest	0.5		1.8		3.6
Restructuring and acquisition-related items	3.0		(0.3	)	—
Other	(0.2	)	(0.8	)	(2.5	)
Effective income tax rate	6.7	%	10.6	%	11.7	%

Schedule of Unrecognized Tax Benefits

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

	2015			2014			2013
Balance at beginning of year	$	328		$	315		$	314
Increases related to current year tax positions	48			67			74
Increases related to prior year tax positions	—			6			33
Increases related to positions assumed from Thoratec	7			—			—
Reductions related to prior year tax positions	(24		)	(27		)	(16		)
Reductions related to settlements / payments	(16		)	(27		)	(90		)
Expiration of the statute of limitations for the assessment of taxes	(5		)	(6		)	—
Balance at end of year	$	338		$	328		$	315

Schedule of ASU Updates and Tax Impacts

As discussed in Note 1, the Company adopted ASU No. 2015-17 in light of the process simplification provided by the ASU. As a result, the January 2, 2016 and January 3, 2015 balances of deferred tax assets and deferred tax liabilities previously reported were impacted as follows (in millions):

	January 2, 2016									January 3, 2015
	Previously						As			Previously						As
	Reported			Impact			Adopted			Reported			Impact			Adopted
Deferred income taxes (current assets)	$	264		$	(264	)	$	—		$	291		$	(291	)	$	—
Other current assets	188			81			269			168			104			272
Deferred income taxes (noncurrent assets)	132			19			151			113			15			128
Other current liabilities	(517		)	7			(510		)	(493		)	—			(493		)
Deferred income taxes (noncurrent liabilities)	(738		)	157			(581		)	(240		)	172			(68		)