INCOME TAXES (Tables)

12 Months Ended

Dec. 29, 2012

Income Tax Disclosure [Abstract]

Significant Components of Deferred Tax Assets and Liabilities

Significant components of the Company’s deferred tax assets and liabilities at the end of each fiscal year were as follows:

(Millions of Dollars)	2012		2011
Deferred tax liabilities:
Depreciation	$	53.2	$	57.3
Amortization of intangibles	915.8		933.6
Liability on undistributed foreign earnings	436.9		421.8
Discharge of indebtedness	15.5		26.1
Inventories	22.2		24.2
Deferred revenue	12.4		20.6
Other	67.6		54.8
Total deferred tax liabilities	$	1,523.6	$	1,538.4
Deferred tax assets:
Employee benefit plans	$	413.0	$	408.4
Doubtful accounts	7.0		16.0
Accruals	109.5		133.7
Restructuring charges	32.9		4.4
Debt amortization	31.3		24.7
Operating loss, capital loss and tax credit carry forwards	635.0		353.2
Currency and derivatives	49.1		43.2
Other	89.7		120.9
Total deferred tax assets	$	1,367.5	$	1,104.5
Net Deferred Tax Liabilities before Valuation Allowance	$	156.1	$	433.9
Valuation allowance	$	552.6	$	300.4
Net Deferred Tax Liabilities after Valuation Allowance	$	708.7	$	734.3

Classification of Deferred Taxes

The classification of deferred taxes as of December 29, 2012 and December 31, 2011 is as follows:

	2012					2011
	Deferred Tax Asset			Deferred Tax  Liability		Deferred Tax Asset			Deferred Tax  Liability
Current	$	(142.1	)	$	36.3	$	(102.0	)	$	56.0
Non-current	(132.4		)	946.9		(70.7		)	851.0
Total	$	(274.5	)	$	983.2	$	(172.7	)	$	907.0

Income Tax Expense (Benefit) Attributable to Continuing Operations

Income tax expense (benefit) attributable to continuing operations consisted of the following:

(Millions of Dollars)	2012			2011			2010
Current:
Federal	$	11.6		$	(149.8	)	$	(90.9	)
Foreign	107.5			200.1			91.0
State	8.8			9.3			5.4
Total current	$	127.9		$	59.6		$	5.5
Deferred:
Federal	$	15.8		$	27.8		$	44.3
Foreign	(57.7		)	(31.0		)	(28.4		)
State	(7.1		)	(6.3		)	(3.4		)
Total deferred	(49.0		)	(9.5		)	12.5
Income taxes on continuing operations	$	78.9		$	50.1		$	18.0

Reconciliation of U.S. Federal Statutory Income Tax to Income Taxes on Continuing Operations

The reconciliation of the U.S. federal statutory income tax to the income taxes on continuing operations is as follows:

(Millions of Dollars)	2012			2011			2010
Tax at statutory rate	$	184.5		$	226.9		$	56.4
State income taxes, net of federal benefits	1.5			(2.2		)	1.6
Difference between foreign and federal income tax	(110.2		)	(91.2		)	(64.4		)
Tax accrual reserve	48.4			19.4			7.3
Audit settlements	(49.0		)	(73.4		)	(36.0		)
NOL & Valuation Allowance related items	3.2			(1.8		)	12.4
Foreign dividends and related items	15.0			(10.9		)	7.8
Merger related costs	(6.9		)	6.4			50.1
Change in deferred tax liabilities on undistributed foreign earnings	(17.2		)	(26.2		)	(10.6		)
Statutory income tax rate change	(5.2		)	(1.3		)	1.5
Other-net	14.8			4.4			(8.1		)
Income taxes on continuing operations	$	78.9		$	50.1		$	18.0

Components of Earnings from Continuing Operations Before Income Taxes

The components of earnings from continuing operations before income taxes consisted of the following:

(Millions of Dollars)	2012		2011		2010
United States	$	271.6	$	171.9	$	(201.3	)
Foreign	256.0		476.5		369.9
Earnings from continuing operations before income taxes	$	527.6	$	648.4	$	168.6

Activity Related to Unrecognized Tax Benefits

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

(Millions of Dollars)	2012			2011			2010
Balance at beginning of year	$	214.2		$	273.1		$	30.3
Adjustment for 2010 Merger and acquisitions	—			—			317.6
Additions based on tax positions related to current year	21.5			46.3			18.4
Additions based on tax positions related to prior years	46.5			26.7			0.7
Reductions based on tax positions related to prior years	(69.6		)	(96.6		)	(36.3		)
Settlements	(1.0		)	(22.4		)	(41.0		)
Statute of limitations expirations	(4.4		)	(12.9		)	(16.6		)
Balance at end of year	$	207.2		$	214.2		$	273.1