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INCOME TAXES (Tables)
 12 Months Ended
Jan. 01, 2021
Income Tax Disclosure [Abstract]  
Schedule of Provision For Income Tax
The provisions for current and deferred income taxes are summarized as follows:
Fiscal Year EndedTwo Quarters EndedFiscal Years Ended
(In millions)January 1, 2021January 3, 2020June 28, 2019June 29, 2018
Current:
United States$337 $11 $105 $(141)
International76 37 9 12 
State and local45 16 8 (11)
458 64 122 (140)
Deferred:
United States(150)33 15 324 
International(73)(15)(3)(3)
State and local(1)(9)26 25 
(224)9 38 346 
$234 $73 $160 $206 
Schedule of Provision for Income Taxes
The total income tax provision is summarized as follows:
Fiscal Year EndedTwo Quarters EndedFiscal Years Ended
(In millions)January 1, 2021January 3, 2020June 28, 2019June 29, 2018
Continuing operations$234 $73 $160 $206 
Discontinued operations— — (1)(5)
Total income tax provision$234 $73 $159 $201 
Schedule of Reconciliation of United States Statutory Income Tax Rate To Our Effective Income Tax Rate
A reconciliation of the U.S. statutory income tax rate to our effective income tax rate follows:
Fiscal Year EndedTwo Quarters EndedFiscal Years Ended
January 1, 2021January 3, 2020June 28, 2019June 29, 2018
U.S. statutory income tax rate21.0 %21.0 %21.0 %28.1 %
State taxes3.2 1.4 2.4 1.9 
International income0.4 0.9 (0.5)(0.5)
Non-deductible goodwill impairment5.8 — — — 
Research and development tax credit(9.2)(4.7)(4.5)(2.9)
Foreign derived intangibles income deduction (1.3)(0.8)(1.3)— 
Change in valuation allowance0.5 (4.8)(1.8)0.2 
U.S. production activity benefit— — — (0.9)
Equity-based compensation(1)
(1.0)(5.4)(2.1)(1.8)
Settlement of tax audits(1.8)— — (2.2)
U.S. tax reform— — — 0.4 
Other items0.1 0.4 1.2 0.4 
Effective income tax rate17.7 %8.0 %14.4 %22.7 %
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(1)Includes non-deductible equity-based compensation and excess tax benefits from equity-based compensation.
Schedule of Components of Deferred Income Tax Assets Liabilities
The components of deferred income tax assets (liabilities) were as follows:
(In millions)January 1, 2021January 3, 2020
 
Deferred tax assets:
Accruals$315 $240 
Tax loss and credit carryforwards153 177 
Share-based compensation33 27 
Capital loss carryforwards2 44 
Pension and other post-employment benefits457 431 
Operating lease obligation202 213 
Other 280 238 
Valuation allowance(1)
(165)(185)
Deferred tax assets, net1,277 1,185 
Deferred tax liabilities:
Property, plant and equipment(91)(159)
Unbilled receivables(21)(51)
Acquired intangibles(1,934)(2,037)
Operating lease right-of-use asset(182)(196)
Other(167)(121)
Deferred tax liabilities(2,395)(2,564)
Net deferred tax assets (liabilities)$(1,118)$(1,379)
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(1)The valuation allowance has been established to offset certain domestic and foreign deferred tax assets due to uncertainty regarding our ability to realize them in the future.
Schedule of Deferred Tax Assets, Net of Valuation Allowance
Net deferred tax assets (liabilities) were classified as follows in our Consolidated Balance Sheet:
(In millions)January 1, 2021January 3, 2020
Non-current deferred income tax assets$119 $102 
Non-current deferred income tax liabilities(1,237)(1,481)
$(1,118)$(1,379)
Schedule of Reconciliation of Unrecognized Tax Benefits
A reconciliation of the beginning and ending amounts of unrecognized tax benefits is as follows:
Fiscal Year EndedTwo Quarters EndedFiscal Years Ended
(In millions)January 1, 2021January 3, 2020June 28, 2019June 29, 2018
Balance at beginning of period$438 $204 $102 $90 
Additions based on tax positions taken during current period
60 35 31 17 
Additions based on tax positions taken during prior periods
21 — 80 23 
Additions for tax positions related to acquired entities116 226 — — 
Decreases based on tax positions taken during prior periods
(82)(7)(9)(28)
Decreases from lapse in statutes of limitations(3)(20)— — 
Decreases from settlements(8)— — — 
Balance at end of period$542 $438 $204 $102