TAXES BASED ON INCOME (Tables)

12 Months Ended

Dec. 28, 2013

(In millions)	2013			2012			2011


Current:
U.S. federal tax	$	1.9		$	(18.7	)	$	(8.6	)
State taxes		.3			(2.4	)		(1.1	)
International taxes		107.3			101.2			78.4

		109.5			80.1			68.7

Deferred:
U.S. federal tax		(11.2	)		9.5			(6.8	)
State taxes		1.3			(9.3	)		(1.4	)
International taxes		19.2			(.3	)		11.0

		9.3			(.1	)		2.8

Provision for income taxes	$	118.8		$	80.0		$	71.5

The principal item accounting for the difference between taxes

(In millions)	2013			2012			2011


Computed tax at 35% of income before taxes	$	127.1		$	83.1		$	74.5
Increase (decrease) in taxes resulting from:
State taxes, net of federal tax benefit		2.4			1.1			(2.4	)
Foreign earnings taxed at different rates (1)(2)		(14.7	)		11.8			2.3
Valuation allowance		(4.3	)		(23.6	)		7.0
Corporate owned life insurance		(6.9	)		(5.5	)		(5.1	)
U.S. federal research and development tax credits		(7.0	)		–			(4.6	)
Tax contingencies and audit settlements		23.1			9.4			2.9
Expiration of carryforward items		2.5			4.8			.4
Other items, net		(3.4	)		(1.1	)		(3.5	)

Provision for income taxes	$	118.8		$	80.0		$	71.5

(1): Included foreign earnings taxed in the U.S., net of credits, for all years.
(2): Included $12.1 million and $11.2 million of expense related to the accrual of U.S. taxes on certain foreign earnings for 2013 and 2012, respectively. For 2011, there was no such accrual.

Income (loss) from continuing operations before taxes from our U.S. and international operations

(In millions)	2013			2012			2011


U.S.	$	(36.2	)	$	(125.7	)	$	(81.8	)
International		399.3			363.3			295.0

Income from continuing operations before taxes	$	363.1		$	237.6		$	213.2

Components of the temporary differences

(In millions)	2013			2012


Accrued expenses not currently deductible	$	44.7		$	80.3
Net operating losses		306.2			323.8	(1)
Tax credit carryforwards		129.2			118.0
Capital loss carryforward		–			6.0
Postretirement and postemployment benefits		100.8			107.9
Pension costs		95.7			146.1
Inventory reserves		8.6			12.1
Other assets		6.2			2.7
Valuation allowance		(59.0	)		(69.3	) (1)

Total deferred tax assets (2)		632.4			727.6

Depreciation and amortization		(127.8	)		(166.7	)
Repatriation accrual		(52.9	)		(20.3	)
Foreign operating loss recapture		(136.5	)		(136.5	)
Other liabilities		(1.8	)		(3.1	) (1)

Total deferred tax liabilities (2)		(319.0	)		(326.6	)

Total net deferred tax assets	$	313.4		$	401.0

(1): The presentation for 2012 was revised to conform to the presentation shown for 2013. The revision was immaterial having no impact on total net deferred tax assets but resulted in a decrease of $33.4 million, $27.9 million, and $5.5 million in net operating losses, valuation allowance, and other liabilities, respectively.
(2): Reflect gross amounts before jurisdictional netting of deferred tax assets and liabilities.

Reconciliation of the beginning and ending amount of unrecognized tax benefits

(In millions)	2013			2012


Balance at beginning of year	$	121.6		$	120.3
Additions based on tax positions related to the current year		20.1			15.7
Additions for tax positions of prior years		8.3			.6
Reductions for tax positions of prior years:
Changes in judgment		(4.0	)		(5.6	)
Settlements		(2.6	)		(2.3	)
Lapses and statute expirations		(6.2	)		(4.4	)
Changes due to translation of foreign currencies		–			(2.7	)

Balance at end of year	$	137.2		$	121.6

- 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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