Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v3.8.0.1
Income Taxes (Tables)
12 Months Ended
Dec. 30, 2017
Income Tax Disclosure [Abstract]  
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]
Income before taxes and the provision for taxes consisted of the following:
Years Ended
(In Millions)
 
Dec 30,
2017
 
Dec 31,
2016
 
Dec 26,
2015
Income before taxes:
 
 
 
 
 
 
U.S.
 
$
11,141

 
$
6,957

 
$
8,800

Non-U.S.
 
9,211

 
5,979

 
5,412

Total income before taxes
 
20,352

 
12,936

 
14,212

Provision for taxes:
 
 
 
 
 
 
Current:
 
 
 
 
 
 
Federal
 
10,207

 
1,319

 
2,828

State
 
27

 
13

 
40

Non-U.S.
 
899

 
756

 
842

Total current provision for taxes
 
11,133

 
2,088

 
3,710

Deferred:
 
 
 
 
 
 
Federal
 
(220
)
 
658

 
(862
)
Other
 
(162
)
 
(126
)
 
(56
)
Total deferred provision for taxes
 
(382
)
 
532

 
(918
)
Total provision for taxes
 
$
10,751

 
$
2,620

 
$
2,792

Effective tax rate
 
52.8
%
 
20.3
%
 
19.6
%
Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block]
Income before taxes and the provision for taxes consisted of the following:
Years Ended
(In Millions)
 
Dec 30,
2017
 
Dec 31,
2016
 
Dec 26,
2015
Income before taxes:
 
 
 
 
 
 
U.S.
 
$
11,141

 
$
6,957

 
$
8,800

Non-U.S.
 
9,211

 
5,979

 
5,412

Total income before taxes
 
20,352

 
12,936

 
14,212

Provision for taxes:
 
 
 
 
 
 
Current:
 
 
 
 
 
 
Federal
 
10,207

 
1,319

 
2,828

State
 
27

 
13

 
40

Non-U.S.
 
899

 
756

 
842

Total current provision for taxes
 
11,133

 
2,088

 
3,710

Deferred:
 
 
 
 
 
 
Federal
 
(220
)
 
658

 
(862
)
Other
 
(162
)
 
(126
)
 
(56
)
Total deferred provision for taxes
 
(382
)
 
532

 
(918
)
Total provision for taxes
 
$
10,751

 
$
2,620

 
$
2,792

Effective tax rate
 
52.8
%
 
20.3
%
 
19.6
%
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,
2017
 
Dec 31,
2016
 
Dec 26,
2015
Statutory federal income tax rate
 
35.0
 %
 
35.0
 %
 
35.0
 %
Increase (reduction) in rate resulting from:
 
 
 
 
 
 
Non-U.S. income taxed at different rates
 
(7.6
)
 
(11.7
)
 
(7.9
)
Research and development tax credits
 
(2.3
)
 
(2.3
)
 
(1.7
)
Domestic manufacturing deduction benefit
 
(1.3
)
 
(1.4
)
 
(2.0
)
Settlements, effective settlements, and related remeasurements
 

 
(0.1
)
 
(2.9
)
Tax Reform
 
26.8

 

 

ISecG divestiture
 
3.3

 

 

Other
 
(1.1
)
 
0.8

 
(0.9
)
Effective tax rate
 
52.8
 %
 
20.3
 %
 
19.6
 %
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,
2017
 
Dec 31,
2016
Deferred tax assets:
 
 
 
 
Accrued compensation and other benefits
 
$
711

 
$
1,182

Share-based compensation
 
241

 
373

Deferred income
 
211

 
596

Inventory
 
675

 
1,044

State credits and net operating losses
 
1,081

 
846

Other, net
 
887

 
1,187

Gross deferred tax assets
 
3,806

 
5,228

Valuation allowance
 
(1,171
)
 
(953
)
Total deferred tax assets
 
2,635

 
4,275

Deferred tax liabilities:
 
 
 
 
Property, plant and equipment
 
(943
)
 
(1,574
)
Licenses and intangibles
 
(881
)
 
(1,036
)
Convertible debt
 
(374
)
 
(1,098
)
Unrealized gains on investments and derivatives
 
(421
)
 
(940
)
Transition tax
 
(1,850
)
 

Other, net
 
(373
)
 
(450
)
Total deferred tax liabilities
 
(4,842
)
 
(5,098
)
Net deferred tax assets (liabilities)
 
(2,207
)
 
(823
)
 
 
 
 
 
Reported as:
 
 
 
 
Deferred tax assets
 
840

 
907

Deferred tax liabilities
 
(3,046
)
 
(1,730
)
Net deferred tax assets (liabilities)
 
$
(2,207
)
 
$
(823
)