Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v3.21.4
Income Taxes (Tables)
 12 Months Ended
Dec. 25, 2021
Income Tax Disclosure [Abstract]  
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]
Years Ended (In Millions) Dec 25, 2021 Dec 26, 2020 Dec 28, 2019
Income before taxes:
US $ 9,361  $ 15,452  $ 13,729 
Non-US 12,342  9,626  10,329 
Total income before taxes 21,703  25,078  24,058 
Provision for taxes:
Current:
Federal 1,304  1,120  1,391 
State 75  46  37 
Non-US 1,198  1,244  1,060 
Total current provision for taxes 2,577  2,410  2,488 
Deferred:
Federal (863) 1,369  597 
State (25) 25  1 
Non-US 146  375  (76)
Total deferred provision for taxes (742) 1,769  522 
Total provision for taxes $ 1,835  $ 4,179  $ 3,010 
Effective tax rate 8.5  % 16.7  % 12.5  %
Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block]
Years Ended (In Millions) Dec 25, 2021 Dec 26, 2020 Dec 28, 2019
Income before taxes:
US $ 9,361  $ 15,452  $ 13,729 
Non-US 12,342  9,626  10,329 
Total income before taxes 21,703  25,078  24,058 
Provision for taxes:
Current:
Federal 1,304  1,120  1,391 
State 75  46  37 
Non-US 1,198  1,244  1,060 
Total current provision for taxes 2,577  2,410  2,488 
Deferred:
Federal (863) 1,369  597 
State (25) 25  1 
Non-US 146  375  (76)
Total deferred provision for taxes (742) 1,769  522 
Total provision for taxes $ 1,835  $ 4,179  $ 3,010 
Effective tax rate 8.5  % 16.7  % 12.5  %
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 25, 2021 Dec 26, 2020 Dec 28, 2019
Statutory federal income tax rate 21.0  % 21.0  % 21.0  %
Increase (reduction) in rate resulting from:
Non-US income taxed at different rates (5.9) (3.7) (3.7)
Research and development tax credits (2.4) (2.1) (2.3)
Restructuring of certain non-U.S. subsidiaries (3.4) —  — 
Foreign derived intangible income benefit (2.2) (1.9) (3.2)
Change in permanent reinvestment assertion —  1.6  — 
Other 1.4  1.8  0.7 
Effective tax rate 8.5  % 16.7  % 12.5  %
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 25, 2021 Dec 26, 2020
Deferred tax assets:
Accrued compensation and other benefits $ 1,019  $ 865 
Share-based compensation 477  324 
Litigation charge 467  — 
Inventory 914  835 
R&D expenditures capitalization 519  — 
State credits and net operating losses 2,010  1,829 
Other, net 819  617 
Gross deferred tax assets 6,225  4,470 
Valuation allowance (2,259) (1,963)
Total deferred tax assets 3,966  2,507 
Deferred tax liabilities:
Property, plant and equipment (4,213) (3,109)
Licenses and intangibles (486) (725)
Unrealized gains on investments and derivatives (819) (735)
Unremitted earnings of non-US subsidiaries —  (403)
Other, net (241) (146)
Total deferred tax liabilities (5,759) (5,118)
Net deferred tax assets (liabilities) $ (1,793) $ (2,611)
Reported as:
Deferred tax assets 874  1,232 
Deferred tax liabilities (2,667) (3,843)
Net deferred tax assets (liabilities) $ (1,793) $ (2,611)
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 25, 2021 $ 1,963  $ 442  $ (146) $ 2,259 
December 26, 2020 $ 1,534  $ 378  $ 51  $ 1,963 
December 28, 2019 $ 1,302  $ 239  $ (7) $ 1,534 
Schedule of Unrecognized Tax Benefits Roll Forward
Uncertain Tax Positions
(In Millions) Dec 25, 2021 Dec 26, 2020 Dec 28, 2019
Beginning gross unrecognized tax benefits $ 828  $ 548  $ 283 
Settlements and effective settlements with tax authorities (25) (142) (4)
Changes in balances related to tax position taken during prior periods (26) 165 122 
Changes in balances related to tax position taken during current period 243 257 147
Ending gross unrecognized tax benefits $ 1,020  $ 828  $ 548