INCOME TAXES (Tables)

12 Months Ended

Dec. 29, 2012

Schedule of Income Tax Expense (Benefit) Related To Earnings (Loss) From Operations

The income tax expense (benefit) related to earnings (loss) from operations consisted of the following:

(In thousands)	2012			2011			2010
Current:
Federal	$	(13,819	)	$	(59,504	)	$	(28,278	)
State		902			(3,625	)		1,408
Foreign		13,795			15,023			849
Deferred :
Federal		(4,700	)		—			—
State		33			33			(64	)
Foreign		5,486			(14,999	)		15,615
Total income tax expense (benefit)	$	1,697		$	(63,072	)	$	(10,470	)

Schedule of Components of Earnings (Loss) Before Income Taxes

The components of earnings (loss) before income taxes consisted of the following:

(In thousands)	2012			2011			2010
North America	$	(129,310	)	$	(4,131	)	$	(114,231	)
International		53,887			36,750			57,556
Total	$	(75,423	)	$	32,619		$	(56,675	)

Schedule of Components Deferred Income Tax Assets and Liabilities

The components of deferred income tax assets and liabilities consisted of the following:

(In thousands)	December 29, 2012			December 31, 2011
U.S. and foreign net operating loss carryforwards	$	366,927		$	379,610
Deferred rent credit		95,220			101,679
Vacation pay and other accrued compensation		61,356			78,797
Accruals for facility closings		21,027			32,800
Inventory		14,406			13,562
Self-insurance accruals		19,374			20,640
Deferred revenue		6,613			5,893
State credit carryforwards, net of Federal benefit		8,278			13,643
Allowance for bad debts		2,727			2,911
Accrued rebates		121			7,978
Basis difference in fixed assets		39,762			—
Other items, net		64,230			46,713
Gross deferred tax assets		700,041			704,226
Valuation allowance		(583,172	)		(621,719	)
Deferred tax assets		116,869			82,507
Internal software		2,799			4,216
Basis difference in fixed assets		—			32,055
Deferred Subpart F income		10,791			10,791
Undistributed foreign earnings		72,345			—
Deferred tax liabilities		85,935			47,062
Net deferred tax assets	$	30,934		$	35,445

Deferred Tax Assets and Liabilities Classified in Balance Sheet

For financial reporting purposes, a jurisdictional netting process is applied to deferred tax assets and deferred tax liabilities, resulting in the balance sheet classification shown below.

(In thousands)	December 29, 2012		December 31, 2011
Deferred tax assets:
Included in Prepaid and other current assets	$	36,725	$	29,592
Deferred income taxes – noncurrent		33,421		47,791
Deferred tax liabilities:
Included in Accrued expenses and other current liabilities		4,711		12,558
Included in Deferred income taxes and other long-term liabilities		34,501		29,380
Net deferred tax asset	$	30,934	$	35,445

Summary of Valuation Allowances

(In millions)	Beginning Balance		Additions		Deductions			Ending Balance
Valuation allowances at:
December 29, 2012	$	621.7	$	—	$	(38.5	)	$	583.2
December 31, 2011	$	648.9	$	—	$	(27.2	)	$	621.7

Reconciliation of Income Taxes at the Federal Statutory Rate to the Provision (Benefit) for Income Taxes

The following is a reconciliation of income taxes at the Federal statutory rate to the provision (benefit) for income taxes:

(In thousands)	2012			2011			2010
Federal tax computed at the statutory rate	$	(26,398	)	$	11,417		$	(19,836	)
State taxes, net of Federal benefit		709			1,417			1,434
Foreign income taxed at rates other than Federal		(14,889	)		(22,290	)		(15,926	)
Increase (reduction) in valuation allowance		(8,662	)		(7,927	)		29,777
Non-deductible foreign interest		9,863			11,818			5,094
Change in uncertain tax positions		1,342			(77,085	)		(32,283	)
Tax expense from intercompany transactions		1,886			4,955			1,090
Subpart F income		—			10,101			—
Change in tax rate		1,816			1,529			—
Non-taxable return of purchase price		(22,361	)		—			—
Outside basis difference of foreign joint venture		67,645			—			—
Tax accounting method change ruling		(15,548	)		—			—
Disposition of foreign affiliates		223			—			(8,562	)
Gain on intercompany sale		—			—			20,216
Other items, net		6,071			2,993			8,526
Income tax expense (benefit)	$	1,697		$	(63,072	)	$	(10,470	)

Summary of Activity Related to Uncertain Tax Positions

The following table summarizes the activity related to uncertain tax positions:

(In thousands)	2012			2011			2010
Beginning balance	$	6,527		$	110,540		$	141,125
Additions based on tax positions related to the current year		—			—			3,436
Additions for tax positions of prior years		2,907			471,081			24,936
Reductions for tax positions of prior years		(829	)		(40,083	)		(32,572	)
Statute expirations		—			(60,131	)		(17	)
Settlements		(4,053	)		(474,880	)		(26,368	)
Ending balance	$	4,552		$	6,527		$	110,540