Income Taxes

3 Months Ended

Mar. 30, 2013

Income Taxes [Abstract]

Income Taxes [Text Block]

Note 8 Income taxes

The consolidated effective tax rate for the quarterended March 30, 2013 of 28% was lower than the prior year's rate of 31%. The effective rate for the first quarter of 2013 benefited from research and development related tax legislation.

As of March 30, 2013, the Company classified $15 million related to uncertain tax positions as a net current liability, representing several income tax positions under examination in various jurisdictions. Management's estimate of reasonably possible changes in unrecognized tax benefits during the next twelve months consists of the current liability balance, expected to be settled within one year, offset by $9million of projected additions. Management is currently unaware of any issues under review that could result in significant additional payments, accruals or other material deviation in this estimate.

Following is a reconciliation of the Company's total gross unrecognized tax benefits for the year-to-date period ended March 30, 2013; $59 million of this total represents the amount that, if recognized, would affect the Company's effective income tax rate in future periods.

(millions)
December 29, 2012		$	80
Tax positions related to current year:
	Additions		2
	Reductions		-
Tax positions related to prior years:
	Additions		5
	Reductions		(1)
Settlements			(5)
March 30, 2013		$	81

For the current quarter, the Company recognized an increase of $1 million of tax-related interest and penalties and a settlement that decreased tax-related interest and penalties by $4 million, resulting in an accrual of $17 million at March 30, 2013.