Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v3.22.4
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2022
Income Tax Disclosure [Abstract]  
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]
Years Ended (In Millions) Dec 31, 2022 Dec 25, 2021 Dec 26, 2020
Income before taxes:
US $ (1,161) $ 9,361  $ 15,452 
Non-US 8,929  12,342  9,626 
Total income before taxes 7,768  21,703  25,078 
Provision for (benefit from) taxes:
Current:
Federal 4,106  1,304  1,120 
State 68  75  46 
Non-US 735  1,198  1,244 
Total current provision for (benefit from) taxes 4,909  2,577  2,410 
Deferred:
Federal (5,806) (863) 1,369 
State (40) (25) 25 
Non-US 688  146  375 
Total deferred provision for (benefit from) taxes (5,158) (742) 1,769 
Total provision for (benefit from) taxes $ (249) $ 1,835  $ 4,179 
Effective tax rate (3.2) % 8.5  % 16.7  %
Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block]
Years Ended (In Millions) Dec 31, 2022 Dec 25, 2021 Dec 26, 2020
Income before taxes:
US $ (1,161) $ 9,361  $ 15,452 
Non-US 8,929  12,342  9,626 
Total income before taxes 7,768  21,703  25,078 
Provision for (benefit from) taxes:
Current:
Federal 4,106  1,304  1,120 
State 68  75  46 
Non-US 735  1,198  1,244 
Total current provision for (benefit from) taxes 4,909  2,577  2,410 
Deferred:
Federal (5,806) (863) 1,369 
State (40) (25) 25 
Non-US 688  146  375 
Total deferred provision for (benefit from) taxes (5,158) (742) 1,769 
Total provision for (benefit from) taxes $ (249) $ 1,835  $ 4,179 
Effective tax rate (3.2) % 8.5  % 16.7  %
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 31, 2022 Dec 25, 2021 Dec 26, 2020
Statutory federal income tax rate 21.0  % 21.0  % 21.0  %
Increase (reduction) in rate resulting from:
Non-US income taxed at different rates (13.4) (5.9) (3.7)
Research and development tax credits (11.4) (2.4) (2.1)
Foreign derived intangible income benefit (9.7) (2.2) (1.9)
Unrecognized tax benefits and settlements 4.5  1.1  0.6 
Restructuring of certain non-US subsidiaries —  (3.4) — 
Change in permanent reinvestment assertion —  —  1.6 
Other 5.8  0.3  1.2 
Effective tax rate (3.2) % 8.5  % 16.7  %
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 31, 2022 Dec 25, 2021
Deferred tax assets:
R&D expenditures capitalization $ 5,067  $ 519 
State credits and net operating losses 2,259  2,010 
Inventory 1,788  914 
Accrued compensation and other benefits 1,031  1,019 
Share-based compensation 557  477 
Litigation charge 470  467 
Other, net 709  819 
Gross deferred tax assets 11,881  6,225 
Valuation allowance (2,586) (2,259)
Total deferred tax assets 9,295  3,966 
Deferred tax liabilities:
Property, plant and equipment (4,776) (4,213)
Licenses and intangibles (386) (486)
Unrealized gains on investments and derivatives (415) (819)
Other, net (470) (241)
Total deferred tax liabilities (6,047) (5,759)
Net deferred tax assets (liabilities) $ 3,248  $ (1,793)
Reported as:
Deferred tax assets 3,450  874 
Deferred tax liabilities (202) (2,667)
Net deferred tax assets (liabilities) $ 3,248  $ (1,793)
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 31, 2022 $ 2,259  $ 401  $ (74) $ 2,586 
December 25, 2021 $ 1,963  $ 442  $ (146) $ 2,259 
December 26, 2020 $ 1,534  $ 378  $ 51  $ 1,963 
Schedule of Unrecognized Tax Benefits Roll Forward
Uncertain Tax Positions
(In Millions) Dec 31, 2022 Dec 25, 2021 Dec 26, 2020
Beginning gross unrecognized tax benefits $ 1,020  $ 828  $ 548 
Settlements and effective settlements with tax authorities (18) (25) (142)
Changes in balances related to tax position taken during prior periods (120) (26) 165 
Changes in balances related to tax position taken during current period 347 243 257
Ending gross unrecognized tax benefits $ 1,229  $ 1,020  $ 828