Income Taxes (Tables)

12 Months Ended

Jan. 03, 2021

Income Tax Disclosure [Abstract]

Schedule of Income before Income Taxes by Region

Income before income taxes summarized by region was as follows:

In millions	2020		2019		2018
United States	$	313	$	242	$	54
Foreign	543		876		840
Total income before income taxes	$	856	$	1,118	$	894

Schedule of Provision for Income Taxes

The provision for income taxes consisted of the following:

In millions	2020		2019		2018
Current:
Federal	$	25	$	32	$	47
State	13		7		15
Foreign	45		84		68
Total current provision	83		123		130
Deferred:
Federal	30		1		—
State	94		(1)		(16)
Foreign	(7)		5		(2)
Total deferred expense (benefit)	117		5		(18)
Total tax provision	$	200	$	128	$	112

Schedule of Reconciliation of Provision for Income Taxes to Amount Computed by Applying the Federal Statutory Rate

The provision for income taxes reconciles to the amount computed by applying the federal statutory rate to income before taxes as follows:

In millions	2020		2019		2018
Tax at federal statutory rate	$	180	$	235	$	188
State, net of federal benefit	19		18		13
Research and other credits	(19)		(37)		(23)
Change in valuation allowance	69		(2)		(12)
Impact of foreign operations	(47)		(57)		(59)
Impact of foreign derived intangible income (FDII) deduction	(11)		(4)		(1)
Cost sharing adjustment	28		—		—
Investments in consolidated variable interest entities	(2)		(5)		9
Impact of U.S. Tax Reform	—		—		11
Stock compensation	(18)		(20)		(24)
Other	1		—		10
Total tax provision	$	200	$	128	$	112

Schedule of Significant Components of Deferred Tax Assets and Liabilities

Significant components of deferred tax assets and liabilities were as follows:

In millions	January 3, 2021		December 29, 2019
Deferred tax assets:
Net operating losses	$	26	$	21
Tax credits	70		63
Other accruals and reserves	21		12
Stock compensation	17		20
Cost sharing adjustment	—		21
Other amortization	17		16
Operating lease liabilities	156		158
Other	53		45
Total gross deferred tax assets	360		356
Valuation allowance on deferred tax assets	(81)		(13)
Total deferred tax assets	279		343
Deferred tax liabilities:
Purchased intangible amortization	(27)		(27)
Convertible debt	(20)		(30)
Property and equipment	(34)		(47)
Operating lease right-of-use assets	(108)		(111)
Investments	(137)		(60)
Other	(6)		(5)
Total deferred tax liabilities	(332)		(280)
Deferred tax (liabilities) assets, net	$	(53)	$	63

Schedule of the Gross Amount of Uncertain Tax Positions

The following table summarizes the gross amount of our uncertain tax positions:

In millions	January 3, 2021		December 29, 2019		December 30, 2018
Balance at beginning of year	$	79	$	88	$	79
Increases related to prior year tax positions	2		1		1
Decreases related to prior year tax positions	—		—		(1)
Increases related to current year tax positions	12		12		12
Decreases related to lapse of statute of limitations	(13)		(22)		(3)
Balance at end of year	$	80	$	79	$	88