Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v2.4.0.8
Income Taxes (Tables)
12 Months Ended
Dec. 28, 2013
Provision for Income Taxes was Computed Based on Amounts of Income Before Income Taxes

The provision for income taxes was computed based on the following amounts of income before income taxes:

 

      2013      2012      2011  
    

In thousands

 

Domestic

   $ 735,177       $ 663,380       $ 582,198   

Foreign

     827,313         758,495         582,545   
  

 

 

    

 

 

    

 

 

 

Income before income taxes

   $ 1,562,490       $ 1,421,875       $ 1,164,743   
  

 

 

    

 

 

    

 

 

 
Provision for Income Taxes

The provision for income taxes consisted of:

 

     2013     2012     2011  
     In thousands  

Current:

      

Federal

   $ 238,816      $ 231,282      $ 193,433   

Foreign

     103,752        100,635        57,738   

State

     22,173        24,617        34,046   
  

 

 

   

 

 

   

 

 

 
     364,741        356,534        285,217   

Deferred:

      

Federal and state

     (15,265     (13,999     (7,955

Foreign

     2,895        (6,798     (2,912
  

 

 

   

 

 

   

 

 

 

Income taxes

   $ 352,371      $ 335,737      $ 274,350   
  

 

 

   

 

 

   

 

 

 
Differences Between Income Taxes Computed by Applying Statutory Federal Income Tax Rate and Income Tax Expense in Consolidated Financial Statements

The differences between income taxes computed by applying the statutory federal income tax rate and income tax expense in the consolidated financial statements are as follows:

2013 2012 2011
In thousands

Tax at federal statutory rate

$ 546,872 $ 497,656 $ 407,660

State income taxes, net of federal tax benefit

19,653 24,304 23,147

Foreign rate differences

(187,513 ) (165,318 ) (144,327 )

Change in valuation allowance

(3,422 ) (33,060 ) (12,126 )

Tax credits

(16,742 ) (8,454 )

Other

(6,477 ) 12,155 8,450

Income taxes

$ 352,371 $ 335,737 $ 274,350

Deferred Income Tax Assets and Liabilities

Deferred income tax assets and liabilities consisted of the following:

 

      2013     2012  
     In thousands  

Deferred income tax assets:

    

Inventories

   $ 29,325      $ 13,237   

Employee compensation and benefits

     272,910        365,412   

Other accrued expenses

     168,669        167,230   

Operating loss carryforwards

     122,895        125,436   

Capital loss carryforwards

     769        2,649   
  

 

 

   

 

 

 
     594,568        673,964   

Valuation allowance

     (107,521     (99,703
  

 

 

   

 

 

 

Deferred income tax assets

     487,047        574,261   
  

 

 

   

 

 

 

Deferred income tax liabilities:

    

Intangible assets

     761,140        775,049   

Other deferred liabilities

     514        2,939   

Foreign currency translation

     1,408        1,993   
  

 

 

   

 

 

 

Deferred income tax liabilities

     763,062        779,981   
  

 

 

   

 

 

 

Net deferred income tax assets (liabilities)

   $ (276,015   $ (205,720
  

 

 

   

 

 

 

Amounts included in the Consolidated Balance Sheets:

    

Current assets

   $ 169,321      $ 140,515   

Current liabilities (Note J)

     (9,367     (6,601

Noncurrent assets (Note H)

     16,537        27,170   

Noncurrent liabilities (Note L)

     (452,506     (366,804
  

 

 

   

 

 

 
   $ (276,015   $ (205,720
  

 

 

   

 

 

 
Reconciliation of Change in Accrual for Unrecognized Income Tax Benefits

A reconciliation of the change in the accrual for unrecognized income tax benefits is as follows:

Unrecognized
Income Tax
Benefits
Accrued
Interest
and Penalties
Unrecognized
Income Tax
Benefits,
Including Interest
In thousands

Balance, December 2010

$ 57,568 $ 9,830 $ 67,398

Additions for current year tax positions

14,862 4 14,866

Additions for prior year tax positions

12,038 6,661 18,699

Additions for prior year – Timberland acquisition

48,077 1,792 49,869

Reductions for prior year tax positions

(13,975 ) (570 ) (14,545 )

Reductions due to statute expirations

(6,748 ) (4,006 ) (10,754 )

Payments in settlement

(6,951 ) (579 ) (7,530 )

Currency translation

88 88

Balance, December 2011

104,959 13,132 118,091

Additions for current year tax positions

18,930 18,930

Additions for prior year tax positions

39,616 6,199 45,815

Reductions for prior year – Timberland acquisition

(5,707 ) 151 (5,556 )

Reductions for prior year tax positions

(19,678 ) (2,314 ) (21,992 )

Reductions due to statute expirations

(2,765 ) (207 ) (2,972 )

Payments in settlement

(313 ) (140 ) (453 )

Currency translation

252 252

Balance, December 2012

135,294 16,821 152,115

Additions for current year tax positions

11,921 11,921

Additions for prior year tax positions

10,908 4,627 15,535

Reductions for prior year tax positions

(8,521 ) (2,130 ) (10,651 )

Reductions due to statute expirations

(6,527 ) (626 ) (7,153 )

Payments in settlement

(24,422 ) (1,218 ) (25,640 )

Currency translation

(139 ) (139 )

Balance, December 2013

$ 118,514 $ 17,474 $ 135,988

Amounts Included in Consolidated Balance Sheet
      2013      2012  
     In thousands  

Amounts included in the Consolidated Balance Sheets:

     

Unrecognized income tax benefits, including interest

   $ 135,988       $ 152,115   

Less deferred tax benefits

     26,438         34,990   
  

 

 

    

 

 

 

Total unrecognized tax benefits

   $ 109,550       $ 117,125