Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v3.24.4
Income Taxes (Tables)
 12 Months Ended
Dec. 28, 2024
Income Tax Disclosure [Abstract]  
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]
Years Ended ($ In Millions) Dec 28, 2024 Dec 30, 2023 Dec 31, 2022
Income (losses) before taxes:
US $ (13,450) $ (4,749) $ (1,161)
Non-US 2,241  5,511  8,929 
Total income before taxes $ (11,210) $ 762  $ 7,768 
Provision for (benefit from) taxes:
Current:
Federal $ 600  $ 538  $ 4,106 
State (8) 23  68 
Non-US 1,364  535  735 
Total current provision for (benefit from) taxes 1,956  1,096  4,909 
Deferred:
Federal 6,192  (2,048) (5,806)
State 67  (21) (40)
Non-US (192) 60  688 
Total deferred provision for (benefit from) taxes 6,067  (2,009) (5,158)
Total provision for (benefit from) taxes $ 8,023  $ (913) $ (249)
Effective tax rate 71.6  % (119.8) % (3.2) %
Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block]
Years Ended ($ In Millions) Dec 28, 2024 Dec 30, 2023 Dec 31, 2022
Income (losses) before taxes:
US $ (13,450) $ (4,749) $ (1,161)
Non-US 2,241  5,511  8,929 
Total income before taxes $ (11,210) $ 762  $ 7,768 
Provision for (benefit from) taxes:
Current:
Federal $ 600  $ 538  $ 4,106 
State (8) 23  68 
Non-US 1,364  535  735 
Total current provision for (benefit from) taxes 1,956  1,096  4,909 
Deferred:
Federal 6,192  (2,048) (5,806)
State 67  (21) (40)
Non-US (192) 60  688 
Total deferred provision for (benefit from) taxes 6,067  (2,009) (5,158)
Total provision for (benefit from) taxes $ 8,023  $ (913) $ (249)
Effective tax rate 71.6  % (119.8) % (3.2) %
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]
The difference between the tax provision (benefit) 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 28, 2024 Dec 30, 2023 Dec 31, 2022
Expected provision (benefit) at statutory federal income tax rate
 (21.0) % 21.0  % 21.0  %
Increase (reduction) in rate resulting from:
Federal valuation allowance
 93.2  —  — 
Goodwill impairment
 2.1  —  — 
Share-based compensation
 4.2  34.3  3.0 
Unrecognized tax benefits and settlements 1.3  16.3  4.5 
Non-US income taxed at different rates (5.3) (60.6) (13.4)
Research and development tax credits (5.6) (99.0) (11.4)
Foreign derived intangible income benefit
 —  (25.1) (9.7)
Restructuring of certain non-US subsidiaries
—  (15.8) (2.2)
Non-deductibility of European Commission fine
 —  11.1  (4.1)
Other 2.7  (2.0) 9.1 
Effective tax rate 71.6  % (119.8) % (3.2) %
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:
Years Ended (In Millions)
 Dec 28, 2024 Dec 30, 2023
Deferred tax assets:
R&D expenditures capitalization $ 10,709  $ 7,726 
State credits and net operating losses 2,830  2,624 
Inventory 1,054  1,430 
Accrued compensation and other benefits 970  931 
Share-based compensation 444  586 
Litigation charge 447  308 
Other, net 1,510  926 
Gross deferred tax assets 17,964  14,531 
Valuation allowance (13,974) (3,047)
Total deferred tax assets 3,990  11,484 
Deferred tax liabilities:
Property, plant, and equipment
 (4,063) (5,156)
Licenses and intangibles (159) (494)
Unrealized gains on investments and derivatives (224) (358)
Other, net (403) (203)
Total deferred tax liabilities (4,849) (6,211)
Net deferred tax assets (liabilities) $ (859) $ 5,273 
Reported as:
Deferred tax assets 603  5,459 
Deferred tax liabilities (1,462) (186)
Net deferred tax assets (liabilities) $ (859) $ 5,273 
Summary of Valuation Allowance [Table Text Block]
Changes in the valuation allowance for deferred tax assets were as follows:
Years Ended (In Millions) Dec 28, 2024 Dec 30, 2023
Valuation allowance for deferred tax assets:
Balance at Beginning of Year
 $ 3,047  $ 2,586 
Additions Charged to Expenses/Other Accounts
 10,927  461 
(Deductions) Recoveries, Net
 —  — 
Balance at End of Year
 $ 13,974  $ 3,047 
Schedule of Unrecognized Tax Benefits Roll Forward
Uncertain Tax Positions
Years Ended (In Millions)
 Dec 28, 2024 Dec 30, 2023 Dec 31, 2022
Beginning gross unrecognized tax benefits $ 1,124  $ 1,229  $ 1,020 
Settlements and effective settlements with tax authorities (59) (288) (18)
Changes in balances related to tax position taken during prior periods (8) —  (120)
Changes in balances related to tax position taken during current period 73  183 347
Ending gross unrecognized tax benefits $ 1,130  $ 1,124  $ 1,229