Income Taxes

9 Months Ended

Sep. 27, 2014

Income Taxes [Abstract]

Income Taxes [Text Block]

Note 8 Income taxes

The consolidated effective tax rate for the quarters ended September 27, 2014and September 28, 2013were 27.7%and 27.4%, respectively. The consolidated effective tax rate for both year-to-date periods ended September 27, 2014 and September 28, 2013was28.6%.

As of September 27, 2014, the Company classified $6 million of unrecognized tax benefits as a net current liability. Management's estimate of reasonably possible changes in unrecognized tax benefits during the next twelve months is comprised of the current liability balance which is expected to be settled within one year, offset by approximately $8million of projected additions related primarily to ongoing intercompany transfer pricing activity. Management is currently unaware of any issues under review that could result in significant additional payments, accruals or other material deviation in this estimate.

Following is a reconciliation of the Company's total gross unrecognized tax benefits for the year-to-date period ended September 27, 2014; $61 million of this total represents the amount that, if recognized, would affect the Company's effective income tax rate in future periods.

(millions)
December 28, 2013		$	79
Tax positions related to current year:
	Additions		7
	Reductions		-
Tax positions related to prior years:
	Additions		6
	Reductions		(9)
Settlements			1
September 27, 2014		$	84

For the year-to-date period ended September 27, 2014the Company recognized an increase of $3 million for tax-related interest and penalties. The Company recognized no cash settlements during the current quarter. The accrual balance was$20 million at September 27, 2014.