Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v3.23.4
Income Taxes (Tables)
 12 Months Ended
Dec. 30, 2023
Income Tax Disclosure [Abstract]  
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]
Years Ended (In Millions) Dec 30, 2023 Dec 31, 2022 Dec 25, 2021
Income (losses) before taxes:
US $ (4,749) $ (1,161) $ 9,361 
Non-US 5,511  8,929  12,342 
Total income before taxes 762  7,768  21,703 
Provision for (benefit from) taxes:
Current:
Federal 538  4,106  1,304 
State 23  68  75 
Non-US 535  735  1,198 
Total current provision for (benefit from) taxes 1,096  4,909  2,577 
Deferred:
Federal (2,048) (5,806) (863)
State (21) (40) (25)
Non-US 60  688  146 
Total deferred provision for (benefit from) taxes (2,009) (5,158) (742)
Total provision for (benefit from) taxes $ (913) $ (249) $ 1,835 
Effective tax rate (119.8) % (3.2) % 8.5  %
Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block]
Years Ended (In Millions) Dec 30, 2023 Dec 31, 2022 Dec 25, 2021
Income (losses) before taxes:
US $ (4,749) $ (1,161) $ 9,361 
Non-US 5,511  8,929  12,342 
Total income before taxes 762  7,768  21,703 
Provision for (benefit from) taxes:
Current:
Federal 538  4,106  1,304 
State 23  68  75 
Non-US 535  735  1,198 
Total current provision for (benefit from) taxes 1,096  4,909  2,577 
Deferred:
Federal (2,048) (5,806) (863)
State (21) (40) (25)
Non-US 60  688  146 
Total deferred provision for (benefit from) taxes (2,009) (5,158) (742)
Total provision for (benefit from) taxes $ (913) $ (249) $ 1,835 
Effective tax rate (119.8) % (3.2) % 8.5  %
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]
The difference between the tax provision at the statutory federal income tax rate and the tax provision as a percentage of income before income taxes (effective tax rate) for each period was as follows:
Years Ended
 Dec 30, 2023 Dec 31, 2022 Dec 25, 2021
Statutory federal income tax rate 21.0  % 21.0  % 21.0  %
Increase (reduction) in rate resulting from:
Research and development tax credits (99.0) (11.4) (2.4)
Non-US income taxed at different rates (60.6) (13.4) (5.9)
Foreign derived intangible income benefit
 (25.1) (9.7) (2.2)
Restructuring of certain non-US subsidiaries
(15.8) (2.2) (3.4)
Share-based compensation
 34.3  3.0  — 
Unrecognized tax benefits and settlements 16.3  4.5  1.1 
Non-deductibility of European Commission fine
 11.1  (4.1) — 
Other (2.0) 9.1  0.3 
Effective tax rate (119.8) % (3.2) % 8.5  %
Schedule of Deferred Tax Assets and Liabilities [Table Text Block]
Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts for income tax purposes. Significant components of our deferred tax assets and liabilities at the end of each period were as follows:
(In Millions)
 Dec 30, 2023 Dec 31, 2022
Deferred tax assets:
R&D expenditures capitalization $ 7,726  $ 5,067 
State credits and net operating losses 2,624  2,259 
Inventory 1,430  1,788 
Accrued compensation and other benefits 931  1,031 
Share-based compensation 586  557 
Litigation charge 308  470 
Other, net 926  709 
Gross deferred tax assets 14,531  11,881 
Valuation allowance (3,047) (2,586)
Total deferred tax assets 11,484  9,295 
Deferred tax liabilities:
Property, plant, and equipment
 (5,156) (4,776)
Licenses and intangibles (494) (386)
Unrealized gains on investments and derivatives (358) (415)
Other, net (203) (470)
Total deferred tax liabilities (6,211) (6,047)
Net deferred tax assets (liabilities) $ 5,273  $ 3,248 
Reported as:
Deferred tax assets 5,459  3,450 
Deferred tax liabilities (186) (202)
Net deferred tax assets (liabilities) $ 5,273  $ 3,248 
Summary of Valuation Allowance [Table Text Block]
Changes in the valuation allowance for deferred tax assets were as follows:
Years Ended (In Millions)
Balance at Beginning of Year
 Additions Charged to Expenses/
Other Accounts		 Net
(Deductions)
Recoveries		 Balance at
End of Year
Valuation allowance for deferred tax assets
December 30, 2023 $ 2,586  $ 461  $ —  $ 3,047 
December 31, 2022 $ 2,259  $ 401  $ (74) $ 2,586 
December 25, 2021 $ 1,963  $ 442  $ (146) $ 2,259 
Schedule of Unrecognized Tax Benefits Roll Forward
Uncertain Tax Positions
(In Millions) Dec 30, 2023 Dec 31, 2022 Dec 25, 2021
Beginning gross unrecognized tax benefits $ 1,229  $ 1,020  $ 828 
Settlements and effective settlements with tax authorities (288) (18) (25)
Changes in balances related to tax position taken during prior periods —  (120) (26)
Changes in balances related to tax position taken during current period 183 347 243
Ending gross unrecognized tax benefits $ 1,124  $ 1,229  $ 1,020