INCOME TAXES (Tables)

12 Months Ended

Dec. 30, 2017

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)	2017			2016
Deferred tax liabilities:
Depreciation	$	98.4		$	108.7
Amortization of intangibles	668.0			851.2
Liability on undistributed foreign earnings	4.9			260.7
Deferred revenue	24.6			27.3
Other	62.2			74.1
Total deferred tax liabilities	$	858.1		$	1,322.0
Deferred tax assets:
Employee benefit plans	$	256.4		$	362.5
Doubtful accounts and other customer allowances	16.3			19.3
Basis differences in liabilities	84.5			110.4
Operating loss, capital loss and tax credit carryforwards	632.2			590.3
Currency and derivatives	48.5			45.1
Other	88.6			131.6
Total deferred tax assets	$	1,126.5		$	1,259.2
Net Deferred Tax Asset (Liability) before Valuation Allowance	$	268.4		$	(62.8	)
Valuation allowance	$	(516.7	)	$	(525.5	)
Net Deferred Tax Liability after Valuation Allowance	$	(248.3	)	$	(588.3	)

Classification of Deferred Taxes

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

(Millions of Dollars)	2017		2016		2015
United States	$	714.1	$	305.9	$	405.5
Foreign	812.0		920.2		745.3
Earnings from continuing operations before income taxes	$	1,526.1	$	1,226.1	$	1,150.8

Income Tax Expense (Benefit) Attributable to Continuing Operations

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

(Millions of Dollars)	2017			2016			2015
Current:
Federal	$	590.6		$	84.8		$	64.4
Foreign	224.6			191.5			171.4
State	25.4			10.6			14.1
Total current	$	840.6		$	286.9		$	249.9
Deferred:
Federal	$	(513.4	)	$	18.2		$	64.2
Foreign	(33.0		)	(26.1		)	(47.3		)
State	6.3			(17.8		)	(18.2		)
Total deferred	(540.1		)	(25.7		)	(1.3		)
Income taxes on continuing operations	$	300.5		$	261.2		$	248.6

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)	2017			2016			2015
Tax at statutory rate	$	534.1		$	429.1		$	402.9
State income taxes, net of federal benefits	13.3			12.5			14.9
Foreign tax rate differential	(149.0		)	(166.3		)	(166.9		)
Uncertain tax benefits	64.4			32.0			43.9
Tax audit settlements	(16.5		)	(10.5		)	1.3
Change in valuation allowance	(5.4		)	38.9			(21.6		)
Change in deferred tax liabilities on undistributed foreign earnings	(94.1		)	(38.7		)	(31.0		)
Basis difference for businesses Held for Sale	27.9			(27.9		)	—
Stock-based compensation	(23.2		)	—			—
Sale of businesses	(47.3		)	—			—
U.S. Federal tax reform	23.6			—			—
Other-net	(27.3		)	(7.9		)	5.1
Income taxes on continuing operations	$	300.5		$	261.2		$	248.6

Activity Related to Unrecognized Tax Benefits

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

(Millions of Dollars)	2017			2016			2015
Balance at beginning of year	$	309.8		$	283.1		$	280.8
Additions based on tax positions related to current year	34.6			14.9			23.2
Additions based on tax positions related to prior years	82.5			53.9			24.3
Reductions based on tax positions related to prior years	(4.2		)	(34.2		)	(14.3		)
Settlements	(0.3		)	5.4			(21.5		)
Statute of limitations expirations	(34.6		)	(13.3		)	(9.4		)
Balance at end of year	$	387.8		$	309.8		$	283.1