Income Taxes (Tables)

12 Months Ended

Dec. 26, 2014

Schedule of breakdown of income tax expense between current and deferred

The breakdown of income tax expense between current and deferred is as follows:



	Fiscal Years
(Dollars in Millions)	2014		2013		2012
Current:
Federal	$	729	$	671	$	450
State	90		87		66
Subtotal Current	819		758		516

Deferred:
Federal	291		285		530
State	7		15		62
Subtotal Deferred	298		300		592
Total	$	1,117	$	1,058	$	1,108

Schedule of income tax expense reconciled to tax computed at statutory rates

Income tax expense reconciled to the tax computed at statutory rates is presented in the table below. The Company recorded a tax benefit of $31 million, $42 million and $20 million in 2014, 2013 and 2012, respectively, primarily as a result of federal and state legislative changes as well as the resolution of other federal and state tax matters. Each year's benefit is included in the state income tax and other lines in the table below.



	Fiscal Years
(Dollars In Millions)	2014					2013					2012

Federal Income Taxes	$	1,066		35.0	%	$	1,023		35.0	%	$	1,040		35.0	%
State Income Taxes	61			2.0	%	65			2.2	%	81			2.8	%
Other	(10		)	(0.3	)%	(30		)	(1.0	)%	(13		)	(0.4	)%
Income Tax Expense/Rate	$	1,117		36.7	%	$	1,058		36.2	%	$	1,108		37.4	%

Schedule of significant components of deferred income tax assets and liabilities

The significant components of deferred income tax assets and liabilities include:



	2014				2013
(Dollars in Millions)	Assets		Liabilities		Assets		Liabilities
Pension Plans	$	188	$	—	$	67	$	—
Other Employee Benefit Plans	306		—		299		—
Accelerated Depreciation	—		9,133		—		8,868
Other	256		334		257		262
Total	$	750	$	9,467	$	623	$	9,130
Net Deferred Income Tax Liabilities			$	8,717			$	8,507

Schedule of change to total gross unrecognized tax benefits

The change to the total gross unrecognized tax benefits and prior year audit resolutions of the Company during the fiscal year ended December 2014 is reconciled as follows:



Uncertain Tax Positions:	Fiscal Year
(Dollars in Millions)	2014			2013			2012
Balance at beginning of the year	$	23		$	24		$	22
Additions based on tax positions related to current year	2			2			6
Additions based on tax positions related to prior years	3			5			3
Reductions based on tax positions related to prior years	—			(6		)	(1		)
Settlements with taxing authorities	—			—			—
Lapse of statute of limitations	(7		)	(2		)	(6		)
Balance at end of the year	$	21		$	23		$	24

- Definition

Tabular disclosure of tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities (i.e., uncertain tax positions) and other types of income tax contingencies, including: (1) the policy on classification of interest and penalties; (2) a tabular reconciliation of the total amounts of unrecognized tax benefits at the beginning and end of the period; the total amount(s) of: (3) unrecognized tax benefits that, if recognized, would affect the effective tax rate, and (4) interest and penalties recognized in each of the income statement and balance sheet; (5) for positions for which it is reasonably possible that the total amounts unrecognized will significantly change within 12 months of the reporting date the: (i) nature of the uncertainty, (ii) nature of the event that could occur that would cause the change, and (iii) an estimate of the range of the reasonably possible change or a statement that an estimate of the range cannot be made; and (6) a description of tax years that remain subject to examination by major tax jurisdictions.

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