Income Taxes (Tables)

12 Months Ended

Jan. 02, 2021

Income Tax Disclosure [Abstract]

Schedule of Income before Income Tax and Provision for Income Taxes [Table Text Block]

(millions)	2020		2019		2018
Income before income taxes
United States	$	1,018	$	938	$	851
Foreign	583		367		478
	1,601		1,305		1,329
Income taxes
Currently payable
Federal	129		345		7
State	26		52		28
Foreign	100		77		99
	255		474		134
Deferred
Federal	56		(124)		109
State	9		(29)		(59)
Foreign	3		—		(3)
	68		(153)		47
Total income taxes	$	323	$	321	$	181

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

	2020		2019		2018
U.S. statutory income tax rate	21.0	%	21.0	%	21.0	%
Foreign rates varying from U.S. statutory rate	(2.4)		(2.5)		(3.0)
Excess tax benefits on share-based compensation	—		—		(0.3)
State income taxes, net of federal benefit	1.8		1.3		1.5
Cost (benefit) of remitted and unremitted foreign earnings	1.0		0.8		0.7
Legal entity restructuring, deferred tax impact	—		—		(3.3)
Discretionary pension contributions	—		—		(2.3)
Revaluation of investment in foreign subsidiary	—		2.5		—
Net change in valuation allowance	1.4		(1.6)		2.0
Statutory rate changes, deferred tax impact	0.2		0.3		—
U.S. deemed repatriation tax	(2.0)		—		(1.2)
Divestiture	—		2.9		—
Out-of-period adjustment	—		3.0		—
Other	(0.8)		(3.1)		(1.5)
Effective income tax rate	20.2	%	24.6	%	13.6	%

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

	Deferred tax assets				Deferred tax liabilities
(millions)	2020		2019		2020		2019
U.S. state income taxes	$	7	$	—	$	—	$	6
Advertising and promotion-related	13		11		—		—
Wages and payroll taxes	26		15		—		—
Inventory valuation	17		17		—		—
Employee benefits	118		143		—		—
Operating loss, credit and other carryforwards	329		279		—		—
Hedging transactions	49		—		—		18
Depreciation and asset disposals	—		—		234		217
Operating lease right-of-use assets	—		—		141		111
Operating lease liabilities	136		111		—		—
Trademarks and other intangibles	—		—		527		526
Deferred compensation	18		19		—		—
Stock options	32		29		—		—
Other	41		36		—		—
	786		660		902		878
Less valuation allowance	(192)		(146)		—		—
Total deferred taxes	$	594	$	514	$	902	$	878
Net deferred tax asset (liability)	$	(308)	$	(364)
Classified in balance sheet as:
Other assets	$	254	$	231
Other liabilities	(562)		(595)
Net deferred tax asset (liability)	$	(308)	$	(364)

Summary of Valuation Allowance [Table Text Block]

(millions)	2020		2019		2018
Balance at beginning of year	$	146	$	166	$	153
Additions charged to income tax expense (b)	62		25		29
Reductions credited to income tax expense (a)	(24)		(47)		(1)
Currency translation adjustments	8		2		(15)
Balance at end of year	$	192	$	146	$	166

Summary of Positions for which Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Table Text Block]

(millions)	2020		2019		2018
Balance at beginning of year	$	90	$	97	$	60
Tax positions related to current year:
Additions (a)	5		5		51
Tax positions related to prior years:
Additions	8		4		4
Reductions (b)	(35)		(14)		(13)
Settlements	(2)		(1)		(4)
Lapses in statutes of limitation	(1)		(1)		(1)
Balance at end of year	$	65	$	90	$	97

(a) During the fourth quarter of 2018, the Company recorded, as part of its final estimate under SAB 118, $47 million of tax reserves related to uncertainty in our interpretation of the statute and associated regulations.

(b) During the third quarter of 2020, the Company released $32 million of tax reserves as a result of finalization of an IRS tax examination.