INCOME TAXES (Tables)

12 Months Ended

Dec. 28, 2019

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



(Millions of Dollars)	2019			2018
Deferred tax liabilities:
Depreciation	$	144.9		$	128.5
Amortization of intangibles	731.8			672.8
Liability on undistributed foreign earnings	159.3			202.5
Lease right-of-use asset	129.7			—
Other	89.5			73.9
Total deferred tax liabilities	$	1,255.2		$	1,077.7
Deferred tax assets:
Employee benefit plans	$	235.4		$	222.1
Basis differences in liabilities	82.0			93.3
Operating loss, capital loss and tax credit carryforwards	1,100.3			710.6
Lease liability	129.6			—
Other	149.2			147.3
Total deferred tax assets	$	1,696.5		$	1,173.3
Net Deferred Tax Asset before Valuation Allowance	$	441.3		$	95.6
Valuation Allowance	$	(1,065.0	)	$	(626.7	)
Net Deferred Tax Liability after Valuation Allowance	$	(623.7	)	$	(531.1	)

The components of earnings before income taxes and equity interest consisted of the following:



(Millions of Dollars)	2019		2018		2017
United States	$	214.5	$	444.1	$	715.2
Foreign	915.5		578.0		812.6
Earnings before income taxes and equity interest	$	1,130.0	$	1,022.1	$	1,527.8

Income tax expense (benefit) consisted of the following:

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)	2019			2018			2017
Tax at statutory rate	$	237.3		$	214.6		$	534.1
State income taxes, net of federal benefits	22.1			24.7			13.3
Foreign tax rate differential	(53.3		)	(33.2		)	(149.0		)
Uncertain tax benefits	(53.1		)	4.5			64.4
Change in valuation allowance	10.5			5.1			(5.4		)
Change in deferred tax liabilities on undistributed foreign earnings	—			—			(94.1		)
Basis difference for businesses Held for Sale	—			—			27.9
Stock-based compensation	(24.1		)	(4.1		)	(23.2		)
Sale of businesses	6.7			—			(47.3		)
U.S. Federal tax reform	—			199.6			23.6
Other	14.7			5.1			(43.4		)
Income taxes	$	160.8		$	416.3		$	300.9

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



(Millions of Dollars)	2019			2018			2017
Balance at beginning of year	$	406.3		$	387.8		$	309.8
Additions based on tax positions related to current year	48.6			28.3			34.6
Additions based on tax positions related to prior years	78.5			103.0			82.5
Reductions based on tax positions related to prior years	(91.1		)	(91.5		)	(4.2		)
Settlements	(0.3		)	(2.5		)	(0.3		)
Statute of limitations expirations	(35.7		)	(18.8		)	(34.6		)
Balance at end of year	$	406.3		$	406.3		$	387.8