INCOME TAXES (Tables)

12 Months Ended

Dec. 28, 2013

Schedule of Components of Earnings (Loss) Before Income Taxes

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

(In millions)	2013			2012			2011
United States	$	(230	)	$	(129	)	$	(4	)
Foreign		357			54			37
Total income (loss) before income taxes	$	127		$	(75	)	$	33

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

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

(In millions)	2013			2012			2011
Current:
Federal	$	15		$	(14	)	$	(59	)
State		5			1			(4	)
Foreign		125			14			15
Deferred :
Federal		(4	)		(5	)		—
State		(1	)		—			—
Foreign		7			6			(15	)
Total income tax expense (benefit)	$	147		$	2		$	(63	)

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 U.S. Federal statutory rate to the provision (benefit) for income taxes:

(In millions)	2013			2012			2011
Federal tax computed at the statutory rate	$	44		$	(26	)	$	11
State taxes, net of Federal benefit		3			1			1
Foreign income taxed at rates other than Federal		(28	)		(15	)		(22	)
Increase (decrease) in valuation allowance		8			(9	)		(8	)
Non-deductible goodwill impairment		15			0			0
Non-deductible Merger expenses		13			0			0
Non-deductible foreign interest		8			10			12
Change in unrecognized tax benefits		—			1			(77	)
Tax expense from intercompany transactions		2			2			5
Subpart F and dividend income, net of foreign tax credits		75			—			10
Change in tax rate		2			2			2
Non-taxable return of purchase price		—			(22	)		—
Deferred taxes on undistributed foreign earnings		5			68			—
Tax accounting method change ruling		—			(16	)		—
Other items, net		—			6			3
Income tax expense (benefit)	$	147		$	2		$	(63	)

Schedule of Components Deferred Income Tax Assets and Liabilities

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

(In millions)	December 28, 2013			December 29, 2012
U.S. and foreign net operating loss carryforwards	$	314		$	367
Deferred rent credit		97			95
Pension and other accrued compensation		170			61
Accruals for facility closings		38			21
Inventory		25			14
Self-insurance accruals		33			19
Deferred revenue		34			7
U.S. and foreign income tax credit carryforwards		234			8
Allowance for bad debts		8			3
Accrued expenses		60			24
Basis difference in fixed assets		15			40
Other items, net		6			41
Gross deferred tax assets		1,034			700
Valuation allowance		(683	)		(583	)
Deferred tax assets		351			117
Internal software		22			3
Installment gain on sale of timberlands		258			—
Deferred Subpart F income		23			11
Undistributed foreign earnings		12			72
Deferred tax liabilities		315			86
Net deferred tax assets	$	36		$	31

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 millions)	December 28, 2013		December 29, 2012
Deferred tax assets:
Included in Prepaid and other current assets	$	114	$	37
Deferred income taxes — noncurrent		35		33
Deferred tax liabilities:
Included in Accrued expenses and other current liabilities		3		5
Included in Deferred income taxes and other long-term liabilities		110		34
Net deferred tax asset	$	36	$	31

Summary of Valuation Allowances

The following summarizes the activity related to valuation allowances for deferred tax assets:

(In millions)	2013			2012			2011
Beginning balance	$	583		$	622		$	649
Additions, charged to expense		26			—			—
Additions, due to the Merger		84			—			—
Deductions		(10	)		(39	)		(27	)
Ending balance	$	683		$	583		$	622

Summary of Activity Related to Unrecognized Tax Benefits

The following table summarizes the activity related to unrecognized tax benefits:

(In millions)	2013		2012			2011
Beginning balance	$	5	$	7		$	111
Increase related to current year tax positions		4		—			—
Increase related to prior year tax positions		—		3			471
Decrease related to prior year tax positions		—		(1	)		(40	)
Decrease related to lapse of statute of limitations		—		—			(60	)
Decrease related to settlements with taxing authorities		—		(4	)		(475	)
Increase related to the Merger		6		—			—
Ending balance	$	15	$	5		$	7