INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2016

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)	2016		2015
Deferred tax liabilities:
Depreciation	$	108.7	$	99.6
Amortization of intangibles	851.2		868.5
Liability on undistributed foreign earnings	260.7		319.9
Discharge of indebtedness	6.2		9.3
Inventories	6.2		—
Deferred revenue	27.3		25.5
Other	61.7		66.8
Total deferred tax liabilities	$	1,322.0	$	1,389.6
Deferred tax assets:
Employee benefit plans	$	362.5	$	361.1
Doubtful accounts and other customer allowances	19.3		19.0
Inventories	—		16.1
Accruals	110.4		135.6
Restructuring charges	4.9		12.6
Operating loss, capital loss and tax credit carryforwards	590.3		562.5
Currency and derivatives	45.1		42.2
Other	126.7		82.7
Total deferred tax assets	$	1,259.2	$	1,231.8
Net Deferred Tax Liabilities before Valuation Allowance	$	62.8	$	157.8
Valuation allowance	$	525.5	$	480.7
Net Deferred Tax Liabilities after Valuation Allowance	$	588.3	$	638.5

Classification of Deferred Taxes

The classification of deferred taxes as of December 31, 2016 and January 2, 2016 is as follows:

	2016					2015
(Millions of Dollars)	Deferred Tax Asset			Deferred Tax  Liability		Deferred Tax Asset			Deferred Tax  Liability
Current	$	—		$	—	$	(85.4	)	$	18.5
Non-current	(147.1		)	735.4		(120.5		)	825.9
Total	$	(147.1	)	$	735.4	$	(205.9	)	$	844.4

Income Tax Expense (Benefit) Attributable to Continuing Operations

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

(Millions of Dollars)	2016			2015			2014
Current:
Federal	$	84.8		$	64.4		$	18.4
Foreign	191.5			171.4			141.1
State	10.6			14.1			17.1
Total current	$	286.9		$	249.9		$	176.6
Deferred:
Federal	$	18.2		$	64.2		$	55.3
Foreign	(26.1		)	(47.3		)	(19.3		)
State	(17.8		)	(18.2		)	14.5
Total deferred	(25.7		)	(1.3		)	50.5
Income taxes on continuing operations	$	261.2		$	248.6		$	227.1

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

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

(Millions of Dollars)	2016			2015			2014
Tax at statutory rate	$	429.1		$	402.9		$	379.7
State income taxes, net of federal benefits	12.5			14.9			24.3
Difference between foreign and federal income tax	(158.5		)	(166.9		)	(178.0		)
Tax reserve accrual	32.0			43.9			1.1
Audit settlements	(10.5		)	1.3			(5.3		)
NOL/capital loss & valuation allowance related items	31.1			(21.6		)	2.7
Foreign dividends and related items	13.7			19.1			25.6
Change in deferred tax liabilities on undistributed foreign earnings	(38.7		)	(31.0		)	(6.0		)
Statutory income tax rate change	1.7			4.8			(0.6		)
Basis difference for businesses Held for Sale	(27.9		)	—			—
Other-net	(23.3		)	(18.8		)	(16.4		)
Income taxes on continuing operations	$	261.2		$	248.6		$	227.1

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)	2016		2015		2014
United States	$	305.9	$	405.5	$	234.4
Foreign	920.2		745.3		850.4
Earnings from continuing operations before income taxes	$	1,226.1	$	1,150.8	$	1,084.8

Activity Related to Unrecognized Tax Benefits

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

(Millions of Dollars)	2016			2015			2014
Balance at beginning of year	$	283.1		$	280.8		$	269.5
Additions based on tax positions related to current year	14.9			23.2			27.4
Additions based on tax positions related to prior years	53.9			24.3			40.1
Reductions based on tax positions related to prior years	(34.2		)	(14.3		)	(30.9		)
Settlements	5.4			(21.5		)	(5.9		)
Statute of limitations expirations	(13.3		)	(9.4		)	(19.4		)
Balance at end of year	$	309.8		$	283.1		$	280.8