Annual report pursuant to Section 13 and 15(d)

INCOME TAXES (Tables)

v3.19.1
INCOME TAXES (Tables)
12 Months Ended
Mar. 30, 2019
Income Tax Disclosure [Abstract]  
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 from continuing operations before income taxes:
 
 
Year Ended March
 
 
Three Months
Ended March
(Transition Period)
 
Year Ended December
(In thousands)
 
2019
 
 
2018
 
2017
 
2016
Domestic
 
$
337,066

 
 
$
4,163

 
$
364,846

 
$
301,760

Foreign
 
1,190,338

 
 
289,970

 
1,051,649

 
982,956

Income before income taxes
 
$
1,527,404

 
 
$
294,133

 
$
1,416,495

 
$
1,284,716

Provision for Income Taxes
The provision for income taxes consisted of:
 
 
Year Ended March
 
 
Three Months
Ended March
(Transition Period)
 
Year Ended December
(In thousands)
 
2019
 
 
2018
 
2017
 
2016
Current:
 
 
 
 
 
 
 
 
 
Federal
 
$
143,872

 
 
$
(4,864
)
 
$
618,611

 
$
115,570

Foreign
 
164,974

 
 
36,634

 
135,007

 
123,960

State
 
22,455

 
 
896

 
21,506

 
37,957

 
 
331,301

 
 
32,666

 
775,124

 
277,487

Deferred:
 
 
 
 
 
 
 
 
 
Federal and state
 
(53,715
)
 
 
(13,656
)
 
(76,039
)
 
(63,610
)
Foreign
 
(9,186
)
 
 
13,959

 
(3,799
)
 
(8,015
)
 
 
(62,901
)
 
 
303

 
(79,838
)
 
(71,625
)
Income taxes
 
$
268,400

 
 
$
32,969

 
$
695,286

 
$
205,862

Differences Between Income Taxes Computed by Applying Statutory Federal Income Tax Rate and Income Tax Expense reported in Consolidated Financial Statements
The differences between income taxes computed by applying the statutory federal income tax rate and income tax expense reported in the consolidated financial statements are as follows:
 
 
Year Ended March
 
 
Three Months
Ended March
(Transition Period)
 
Year Ended December
(In thousands)
 
2019
 
 
2018
 
2017
 
2016
Tax at federal statutory rate
 
$
320,755

 
 
$
61,768

 
$
495,772

 
$
449,650

State income taxes, net of federal tax benefit
 
32,954

 
 
(4,745
)
 
23,684

 
24,426

Foreign rate differences
 
(84,702
)
 
 
(9,227
)
 
(217,131
)
 
(262,392
)
Tax reform
 
37,262

 
 
(5,107
)
 
465,501

 

Capital losses
 

 
 

 
(67,032
)
 

Valuation allowances (federal)
 

 
 
977

 
37,296

 

Stock compensation (federal)
 
(26,398
)
 
 
(10,060
)
 
(22,826
)
 
(25,135
)
Other
 
(11,471
)
 
 
(637
)
 
(19,978
)
 
19,313

Income taxes
 
$
268,400

 
 
$
32,969

 
$
695,286

 
$
205,862

Deferred Income Tax Assets and Liabilities
Deferred income tax assets and liabilities consisted of the following:
(In thousands)
 
March 2019
 
 
March 2018
 
December 2017
Deferred income tax assets:
 
 
 
 
 
 
 
Inventories
 
$
32,647

 
 
$
24,797

 
$
21,146

Deferred compensation
 
51,913

 
 
53,843

 
55,326

Other employee benefits
 
69,594

 
 
52,456

 
45,464

Stock compensation
 
37,317

 
 
38,244

 
45,960

Other accrued expenses
 
127,684

 
 
155,635

 
158,632

Capital loss carryforwards
 
19,423

 
 
46,069

 
34,705

Operating loss carryforwards
 
229,955

 
 
252,695

 
251,236

Gross deferred income tax assets
 
568,533

 
 
623,739

 
612,469

Valuation allowances
 
(188,258
)
 
 
(226,269
)
 
(225,141
)
Net deferred income tax assets
 
380,275

 
 
397,470

 
387,328

Deferred income tax liabilities:
 
 
 
 
 
 
 
Depreciation
 
25,355

 
 
27,023

 
25,272

Intangible assets
 
222,769

 
 
223,435

 
237,667

Other deferred tax liabilities
 
91,464

 
 
82,406

 
78,824

Deferred income tax liabilities
 
339,588

 
 
332,864

 
341,763

Net deferred income tax assets (liabilities)
 
$
40,687

 
 
$
64,606

 
$
45,565

Amounts included in the Consolidated Balance Sheets:
 
 
 
 
 
 
 
Other assets (Note 10)
 
$
109,551

 
 
$
105,493

 
$
103,601

Other liabilities (Note 14)
 
(68,864
)
 
 
(40,887
)
 
(58,036
)
 
 
$
40,687

 
 
$
64,606

 
$
45,565

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:
(In thousands)
Unrecognized
Income Tax
Benefits
 
Accrued
Interest
and Penalties
 
Unrecognized
Income Tax
Benefits
Including Interest
and Penalties
 
Balance, December 2015
$
75,677

 
$
9,369

 
$
85,046

 
Additions for current year tax positions
121,025

 

 
121,025

 
Additions for prior year tax positions
6,164

 
2,880

 
9,044

 
Reductions for prior year tax positions
(4,798
)
 
(1,362
)
 
(6,160
)
 
Reductions due to statute expirations
(14,985
)
 
(1,335
)
 
(16,320
)
 
Payments in settlement
(6,108
)
 
(829
)
 
(6,937
)
 
Currency translation
(9
)
 
(14
)
 
(23
)
 
Balance, December 2016
176,966

 
8,709

 
185,675

 
Additions for current year tax positions
28,049

 

 
28,049

 
Additions for prior year tax positions
22,968

 
6,808

 
29,776

 
Reductions for prior year tax positions
(22,163
)
 
(279
)
 
(22,442
)
 
Reductions due to statute expirations
(9,028
)
 
(915
)
 
(9,943
)
 
Payments in settlement
(855
)
 
(248
)
 
(1,103
)
 
Currency translation
55

 
11

 
66

 
Balance, December 2017
195,992

 
14,086

 
210,078

 
Additions for current year tax positions
2,012

 

 
2,012

 
Additions for prior year tax positions
477

 
2,340

 
2,817

 
Reductions for prior year tax positions
(201
)
 
(3
)
 
(204
)
 
Reductions due to statute expirations
(9,222
)
 
(985
)
 
(10,207
)
 
Payments in settlement

 

 

 
Currency translation
17

 
2

 
19

 
Balance, March 2018
189,075

 
15,440

 
204,515

 
Additions for current year tax positions
8,511

 

 
8,511

 
Additions for prior year tax positions
16,211

 
12,521

 
28,732

 
Reductions for prior year tax positions
(18,753
)
 
(467
)
 
(19,220
)
 
Reductions due to statute expirations
(30
)
 
(7
)
 
(37
)
 
Payments in settlement
(6,754
)
 
(919
)
 
(7,673
)
 
Currency translation
(35
)
 
(3
)
 
(38
)
 
Balance, March 2019
$
188,225

 
$
26,565

 
$
214,790

 
Amounts Included in Consolidated Balance Sheets
(In thousands)
 
March 2019
 
 
March 2018
 
December 2017
Amounts included in the Consolidated Balance Sheets:
 
 
 
 
 
 
 
Unrecognized income tax benefits, including interest and penalties
 
$
214,790

 
 
$
204,515

 
$
210,078

Less deferred tax benefits
 
40,862

 
 
35,474

 
31,197

Total unrecognized tax benefits
 
$
173,928

 
 
$
169,041

 
$
178,881