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TAXES BASED ON INCOME (Tables)

12 Months Ended

Dec. 30, 2017

(In millions)	2017			2016			2015

Computed tax at 35% of income before taxes	$	206.7		$	167.0		$	143.1
Increase (decrease) in taxes resulting from:
State taxes, net of federal tax benefit		(3.2	)		2.2			1.3
Tax Cuts and Jobs Act (1)		172.0			–			–
Foreign earnings taxed at different rates (2)		(40.2	)		27.0			(7.5	)
Excess tax benefits associated with stock-based payments (3)		(16.0	)		–			–
Valuation allowance		(1.4	)		(11.9	)		.9
Corporate-owned life insurance		(6.7	)		(4.3	)		(1.9	)
U.S. federal research and development tax credits		(4.9	)		(2.9	)		(2.6	)
Tax contingencies and audit settlements		(1.9	)		(20.7	)		5.1
Other items, net		3.3			–			(3.9	)

Provision for income taxes	$	307.7		$	156.4		$	134.5


(1)	During 2017, we recognized a net tax charge of $172 million as a result of the TCJA. This amount includes the direct impacts of the TCJA, including items that would otherwise be separately disclosed as tax effects of foreign earnings taxed at different rates, tax contingencies and audit settlements, and other items.
(2)	Included foreign earnings taxed in the U.S., net of credits, in all years.
(3)	During 2017, we recognized a tax benefit of $16 million as a result of our adoption of the accounting guidance update related to stock-based payments.

(In millions)	2017		2016		2015

U.S.	$	49.0	$	17.9	$	33.9
International		540.5		459.2		375.0

Income from continuing operations before taxes	$	589.5	$	477.1	$	408.9

(In millions)	2017			2016

Accrued expenses not currently deductible	$	19.9		$	42.1
Net operating losses		185.9			195.9
Tax credit carryforwards		14.0			111.3
Stock-based compensation		18.0			28.4
Pension and other postretirement benefits		140.9			207.7
Inventory reserves		6.5			7.1
Unrealized foreign currency losses (1)		14.9			–
Other assets		6.3			.9
Valuation allowance		(63.4	)		(60.4	)

Total deferred tax assets (2)		343.0			533.0

Depreciation and amortization		(95.3	)		(86.1	)
Repatriation accrual (3)		(27.7	)		(62.1	)
Foreign operating loss recapture		(54.9	)		(79.8	)
Other liabilities		(8.8	)		(2.3	)

Total deferred tax liabilities (2)		(186.7	)		(230.3	)

Total net deferred tax assets	$	156.3		$	302.7


(1)	Primarily reflect the unrealized foreign currency losses in 2017 related to our net investment hedge described in Note 5, "Financial Instruments."
(2)	Reflect gross amounts before jurisdictional netting of deferred tax assets and liabilities.
(3)	The repatriation accruals as of December 30, 2017 and December 31, 2016 primarily include net deferred tax liabilities of $27.7 million and $62.4 million, respectively, associated with the future tax cost to repatriate earnings of our foreign subsidiaries that are not indefinitely reinvested.

(1)	Net operating losses are presented before tax effect and valuation allowance.

(In millions)	2017			2016

Balance at beginning of year	$	89.5		$	107.3
Additions for tax positions of the current year		14.1			6.9
Additions (reductions) for tax positions of prior years		3.0			(15.7	)
Settlements with tax authorities		(1.6	)		(2.1	)
Expirations of statutes of limitations		(2.7	)		(4.2	)
Changes due to translation of foreign currencies		6.4			(2.7	)

Balance at end of year	$	108.7		$	89.5