INCOME TAXES (Tables)

12 Months Ended

Dec. 29, 2018

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)	2018			2017 1
Deferred tax liabilities:
Depreciation	$	128.5		$	98.4
Amortization of intangibles	672.8			668.0
Liability on undistributed foreign earnings	202.5			4.9
Deferred revenue	19.1			26.5
Other	54.8			62.2
Total deferred tax liabilities	$	1,077.7		$	860.0
Deferred tax assets:
Employee benefit plans	$	222.1		$	256.4
Doubtful accounts and other customer allowances	14.7			16.3
Basis differences in liabilities	93.3			84.5
Operating loss, capital loss and tax credit carryforwards	710.6			632.2
Currency and derivatives	11.6			48.5
Other	121.0			88.6
Total deferred tax assets	$	1,173.3		$	1,126.5
Net Deferred Tax Asset (Liability) before Valuation Allowance	$	95.6		$	266.5
Valuation Allowance	$	(626.7	)	$	(516.7	)
Net Deferred Tax Liability after Valuation Allowance	$	(531.1	)	$	(250.2	)

Classification of Deferred Taxes

The components of earnings before income taxes consisted of the following: 

(Millions of Dollars)	2018		2017 1		2016 1
United States	$	444.1	$	715.2	$	307.1
Foreign	578.0		812.6		922.2
Earnings before income taxes	$	1,022.1	$	1,527.8	$	1,229.3

Income Tax Expense (Benefit) Attributable to Continuing Operations

Income tax expense (benefit) consisted of the following:

(Millions of Dollars)	2018		2017 1			2016 1
Current:
Federal	$	25.4	$	590.6		$	84.8
Foreign	175.0		224.6			191.5
State	24.8		25.4			10.6
Total current	$	225.2	$	840.6		$	286.9
Deferred:
Federal	$	29.7	$	(513.0	)	$	18.7
Foreign	132.7		(33.0		)	(26.1		)
State	28.7		6.3			(17.8		)
Total deferred	191.1		(539.7		)	(25.2		)
Income taxes	$	416.3	$	300.9		$	261.7

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 Income taxes in the Consolidated Statements of Operations is as follows:

(Millions of Dollars)	2018			2017 1			2016 1
Tax at statutory rate	$	214.6		$	534.1		$	429.1
State income taxes, net of federal benefits	24.7			13.3			12.5
Foreign tax rate differential	(33.2		)	(149.0		)	(166.3		)
Uncertain tax benefits	4.5			64.4			32.0
Tax audit settlements	(5.2		)	(16.5		)	(10.5		)
Change in valuation allowance	5.1			(5.4		)	38.9
Change in deferred tax liabilities on undistributed foreign earnings	—			(94.1		)	(38.7		)
Basis difference for businesses Held for Sale	—			27.9			(27.9		)
Stock-based compensation	(4.1		)	(23.2		)	—
Sale of businesses	—			(47.3		)	—
U.S. Federal tax reform	199.6			23.6			—
Other-net	10.3			(26.9		)	(7.4		)
Income taxes	$	416.3		$	300.9		$	261.7

Activity Related to Unrecognized Tax Benefits

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

(Millions of Dollars)	2018			2017			2016
Balance at beginning of year	$	387.8		$	309.8		$	283.1
Additions based on tax positions related to current year	28.3			34.6			14.9
Additions based on tax positions related to prior years	103.0			82.5			53.9
Reductions based on tax positions related to prior years	(91.5		)	(4.2		)	(34.2		)
Settlements	(2.5		)	(0.3		)	5.4
Statute of limitations expirations	(18.8		)	(34.6		)	(13.3		)
Balance at end of year	$	406.3		$	387.8		$	309.8