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INCOME TAXES (Tables)
 12 Months Ended
Dec. 31, 2021
Income Tax Disclosure [Abstract]  
Schedule of Provision For Income Tax The provisions for current and deferred income taxes are summarized as follows:
Fiscal Years EndedTwo Quarters EndedFiscal Year Ended
(In millions)December 31, 2021January 1, 2021January 3, 2020June 28, 2019
Current:
United States$415 $337 $11 $105 
International70 76 37 9 
State and local65 45 16 8 
550 458 64 122 
Deferred:
United States(55)(150)33 15 
International(34)(73)(15)(3)
State and local(21)(1)(9)26 
(110)(224)9 38 
$440 $234 $73 $160 
Schedule of Provision for Income Taxes
The total income tax provision is summarized as follows:
Fiscal Years EndedTwo Quarters EndedFiscal Year Ended
(In millions)December 31, 2021January 1, 2021January 3, 2020June 28, 2019
Continuing operations$440 $234 $73 $160 
Discontinued operations— — — (1)
Total income tax provision$440 $234 $73 $159 
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 Years EndedTwo Quarters EndedFiscal Year Ended
December 31, 2021January 1, 2021January 3, 2020June 28, 2019
U.S. statutory income tax rate21.0 %21.0 %21.0 %21.0 %
State taxes1.8 3.2 1.4 2.4 
International income0.4 0.4 0.9 (0.5)
Non-deductible goodwill impairment0.6 5.8 — — 
Research and development tax credit(5.9)(9.2)(4.7)(4.5)
Foreign derived intangibles income deduction (1.4)(1.3)(0.8)(1.3)
Change in valuation allowance0.9 0.5 (4.8)(1.8)
Impact of divestitures4.1 — — — 
Equity-based compensation(1)
(1.1)(1.0)(5.4)(2.1)
Settlement of tax audits(1.1)(1.8)— — 
Other items— 0.1 0.4 1.2 
Effective income tax rate19.3 %17.7 %8.0 %14.4 %
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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)December 31, 2021January 1, 2021
 
Deferred tax assets:
Accruals$288 $315 
Tax loss and credit carryforwards174 155 
Pension and other post-employment benefits107 457 
Operating lease obligation245 202 
Other 329 313 
Valuation allowance(1)
(257)(165)
Deferred tax assets, net886 1,277 
Deferred tax liabilities:
Property, plant and equipment(103)(91)
Acquired intangibles(1,663)(1,934)
Operating lease right-of-use asset(218)(182)
Other(161)(188)
Deferred tax liabilities(2,145)(2,395)
Net deferred tax assets (liabilities)$(1,259)$(1,118)
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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. The net increase in our valuation allowance in fiscal 2021 was $92 million.
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)December 31, 2021January 1, 2021
Non-current deferred income tax assets$85 $119 
Non-current deferred income tax liabilities(1,344)(1,237)
$(1,259)$(1,118)
Schedule of Reconciliation of Unrecognized Tax Benefits
A reconciliation of the beginning and ending amounts of unrecognized tax benefits is as follows:
Fiscal Years EndedTwo Quarters EndedFiscal Year Ended
(In millions)December 31, 2021January 1, 2021January 3, 2020June 28, 2019
Balance at beginning of period$542 $438 $204 $102 
Additions based on tax positions taken during current period
115 60 35 31 
Additions based on tax positions taken during prior periods
11 21 — 80 
Additions for tax positions related to acquired entities— 116 226 — 
Decreases based on tax positions taken during prior periods
(64)(82)(7)(9)
Decreases from lapse in statutes of limitations(15)(3)(20)— 
Decreases from settlements(2)(8)— — 
Balance at end of period$587 $542 $438 $204