Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v3.20.4
Income Taxes (Tables)
 12 Months Ended
Dec. 26, 2020
Income Tax Disclosure [Abstract]  
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]
Years Ended (In Millions) Dec 26, 2020 Dec 28, 2019 Dec 29, 2018
Income before taxes:
U.S. $ 15,452  $ 13,729  $ 14,753 
Non-U.S. 9,626  10,329  8,564 
Total income before taxes 25,078  24,058  23,317 
Provision for taxes:
Current:
Federal 1,120  1,391  2,786 
State 46  37  (11)
Non-U.S. 1,244  1,060  1,097 
Total current provision for taxes 2,410  2,488  3,872 
Deferred:
Federal 1,369  597  (1,389)
State 25  1  11 
Non-U.S. 375  (76) (230)
Total deferred provision for taxes 1,769  522  (1,608)
Total provision for taxes $ 4,179  $ 3,010  $ 2,264 
Effective tax rate 16.7  % 12.5  % 9.7  %
Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block]
Years Ended (In Millions) Dec 26, 2020 Dec 28, 2019 Dec 29, 2018
Income before taxes:
U.S. $ 15,452  $ 13,729  $ 14,753 
Non-U.S. 9,626  10,329  8,564 
Total income before taxes 25,078  24,058  23,317 
Provision for taxes:
Current:
Federal 1,120  1,391  2,786 
State 46  37  (11)
Non-U.S. 1,244  1,060  1,097 
Total current provision for taxes 2,410  2,488  3,872 
Deferred:
Federal 1,369  597  (1,389)
State 25  1  11 
Non-U.S. 375  (76) (230)
Total deferred provision for taxes 1,769  522  (1,608)
Total provision for taxes $ 4,179  $ 3,010  $ 2,264 
Effective tax rate 16.7  % 12.5  % 9.7  %
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 26, 2020 Dec 28, 2019 Dec 29, 2018
Statutory federal income tax rate 21.0  % 21.0  % 21.0  %
Increase (reduction) in rate resulting from:
Non-U.S. income taxed at different rates (3.7) (3.7) (3.6)
Research and development tax credits (2.1) (2.3) (2.7)
Foreign derived intangible income benefit (1.9) (3.2) (3.7)
Change in permanent reinvestment assertion 1.6  —  0.2 
Tax Reform —  —  (1.3)
Other 1.8  0.7  (0.2)
Effective tax rate 16.7  % 12.5  % 9.7  %
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 26, 2020 Dec 28, 2019
Deferred tax assets:
Accrued compensation and other benefits $ 865  $ 740 
Share-based compensation 324  294 
Inventory 835  760 
State credits and net operating losses 1,829  1,511 
Other, net 617  515 
Gross deferred tax assets 4,470  3,820 
Valuation allowance (1,963) (1,534)
Total deferred tax assets 2,507  2,286 
Deferred tax liabilities:
Property, plant and equipment (3,109) (1,807)
Licenses and intangibles (725) (720)
Convertible debt —  (88)
Unrealized gains on investments and derivatives (735) (292)
Unremitted earnings of non-U.S. subsidiaries (403) (28)
Other, net (146) (186)
Total deferred tax liabilities (5,118) (3,121)
Net deferred tax assets (liabilities) $ (2,611) $ (835)
Reported as:
Deferred tax assets 1,232  1,209 
Deferred tax liabilities (3,843) (2,044)
Net deferred tax assets (liabilities) $ (2,611) $ (835)
Summary of Valuation Allowance [Table Text Block]
Change in 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 26, 2020 $ 1,534  $ 378  $ 51  $ 1,963 
December 28, 2019 $ 1,302  $ 239  $ (7) $ 1,534 
December 29, 2018 $ 1,171  $ 185  $ (54) $ 1,302 
Schedule of Unrecognized Tax Benefits Roll Forward
Uncertain Tax Positions
(In Millions) Dec 26, 2020 Dec 28, 2019 Dec 29, 2018
Beginning gross unrecognized tax benefits $ 548  $ 283  $ 211 
Settlements and effective settlements with tax authorities (142) (4) (7)
Changes in balances related to tax position taken during prior periods 165 122 (11)
Changes in balances related to tax position taken during current period 257 147 90
Ending gross unrecognized tax benefits $ 828  $ 548  $ 283