Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v2.4.0.6
Income Taxes (Tables)
12 Months Ended
Dec. 29, 2012
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:

 

      2012     2011     2010  
     In thousands  

Domestic

   $ 663,380      $ 582,198      $ 417,906   

Foreign

     758,495        582,545        332,306   
  

 

 

   

 

 

   

 

 

 

Income before income taxes

   $ 1,421,875      $ 1,164,743      $ 750,212   
  

 

 

   

 

 

   

 

 

 
Provision for Income Taxes

The provision for income taxes consisted of:

  

      2012     2011     2010  
     In thousands  

Current:

      

Federal

   $ 231,282      $ 193,433      $ 188,072   

Foreign

     100,635        57,738        53,260   

State

     24,617        34,046        27,436   
  

 

 

   

 

 

   

 

 

 
     356,534        285,217        268,768   

Deferred:

      

Federal and State

     (13,999     (7,955     (90,951

Foreign

     (6,798     (2,912     (1,117
  

 

 

   

 

 

   

 

 

 

Income taxes

   $ 335,737      $ 274,350      $ 176,700   
  

 

 

   

 

 

   

 

 

 

 

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:

 

      2012     2011     2010  
     In thousands  

Tax at federal statutory rate

   $ 497,656      $ 407,660      $ 262,574   

State income taxes, net of federal tax benefit

     24,304        23,147        15,968   

Foreign rate differences

     (165,318     (144,327     (100,712

Change in valuation allowance

     (33,060     (12,126     6,531   

Tax credits

            (8,454     (11,336

Other

     12,155        8,450        3,675   
  

 

 

   

 

 

   

 

 

 

Income taxes

   $ 335,737      $ 274,350      $ 176,700   
  

 

 

   

 

 

   

 

 

 
Deferred Income Tax Assets and Liabilities

Deferred income tax assets and liabilities consisted of the following:

 

      2012     2011  
     In thousands  

Deferred income tax assets:

  

Inventories

   $ 13,237      $ 21,489   

Employee compensation and benefits

     365,412        321,353   

Other accrued expenses

     167,230        160,885   

Operating loss carryforwards

     125,436        156,380   

Capital loss carryforwards

     2,649        18,558   
  

 

 

   

 

 

 
     673,964        678,665   

Valuation allowance

     (99,703     (151,556
  

 

 

   

 

 

 

Deferred income tax assets

     574,261        527,109   
  

 

 

   

 

 

 

Deferred income tax liabilities:

    

Intangible assets

     775,049        776,816   

Other deferred liabilities

     2,939        25,347   

Foreign currency translation

     1,993        14,517   
  

 

 

   

 

 

 

Deferred income tax liabilities

     779,981        816,680   
  

 

 

   

 

 

 

Net deferred income tax assets (liabilities)

   $ (205,720   $ (289,571
  

 

 

   

 

 

 

Amounts included in Consolidated Balance Sheets:

    

Current assets

   $ 140,515      $ 106,717   

Current liabilities

     (6,601     (9,740

Noncurrent assets

     27,170        29,304   

Noncurrent liabilities

     (366,804     (415,852
  

 

 

   

 

 

 
   $ (205,720   $ (289,571
  

 

 

   

 

 

 
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
    Unrecognized
Income Tax
Benefits,
Including Interest
 
     In thousands  

Balance, December 2009

   $ 41,878      $ 8,579      $ 50,457   

Additions for current year tax positions

     8,460        377        8,837   

Additions for prior year tax positions

     15,053        2,229        17,282   

Reductions for prior year tax positions

     (214     (200     (414

Reductions due to statute expirations

     (5,315     (409     (5,724

Payments in settlement

     (1,573     (746     (2,319

Currency translation

     (721            (721
  

 

 

   

 

 

   

 

 

 

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   
  

 

 

   

 

 

   

 

 

 
Amounts Included in Consolidated Balance Sheet
      2012      2011  
     In thousands  

Amounts included in Consolidated Balance Sheets:

     

Unrecognized income tax benefits, including interest

   $ 152,115       $ 118,091   

Less deferred tax benefit

     34,990         15,368   
  

 

 

    

 

 

 

Total unrecognized tax benefits

   $ 117,125       $ 102,723