Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v3.6.0.2
Income Taxes (Tables)
12 Months Ended
Dec. 31, 2016
Income Tax Disclosure [Abstract]  
Income Before Taxes And Provisions For Taxes [Table Text Block]
Income before taxes and the provision for taxes consisted of the following:
Years Ended
(In Millions)
 
Dec 31,
2016
 
Dec 26,
2015
 
Dec 27,
2014
Income before taxes:
 
 
 
 
 
 
U.S.
 
$
6,957

 
$
8,800

 
$
11,565

Non-U.S.
 
5,979

 
5,412

 
4,236

Total income before taxes
 
12,936

 
14,212

 
15,801

Provision for taxes:
 
 
 
 
 
 
Current:
 
 
 
 
 
 
Federal
 
1,319

 
2,828

 
3,374

State
 
13

 
40

 
38

Non-U.S.
 
756

 
842

 
969

Total current provision for taxes
 
2,088

 
3,710

 
4,381

Deferred:
 
 
 
 
 
 
Federal
 
658

 
(862
)
 
(263
)
Other
 
(126
)
 
(56
)
 
(21
)
Total deferred provision for taxes
 
532

 
(918
)
 
(284
)
Total provision for taxes
 
$
2,620

 
$
2,792

 
$
4,097

Effective tax rate
 
20.3
%
 
19.6
%
 
25.9
%
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,
2016
 
Dec 26,
2015
 
Dec 27,
2014
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
 
(11.7
)
 
(7.9
)
 
(6.1
)
Research and development tax credits
 
(2.3
)
 
(1.7
)
 
(1.7
)
Domestic manufacturing deduction benefit
 
(1.4
)
 
(2.0
)
 
(2.1
)
Settlements, effective settlements, and related remeasurements
 
(0.1
)
 
(2.9
)
 

Other
 
0.8

 
(0.9
)
 
0.8

Effective tax rate
 
20.3
 %
 
19.6
 %
 
25.9
 %
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,
2016
 
Dec 26,
2015
Deferred tax assets:
 
 
 
 
Accrued compensation and other benefits
 
$
1,182

 
$
931

Share-based compensation
 
373

 
424

Deferred income
 
596

 
694

Inventory
 
1,044

 
598

State credits and net operating losses
 
846

 
613

Other, net
 
1,187

 
760

Gross deferred tax assets
 
5,228

 
4,020

Valuation allowance
 
(953
)
 
(701
)
Total deferred tax assets
 
4,275

 
3,319

Deferred tax liabilities:
 
 
 
 
Property, plant and equipment
 
(1,574
)
 
(505
)
Licenses and intangibles
 
(1,036
)
 
(563
)
Convertible debt
 
(1,098
)
 
(1,042
)
Unrealized gains on investments and derivatives
 
(940
)
 
(717
)
Investment in non-U.S. subsidiaries
 

 
(37
)
Other, net
 
(450
)
 
(358
)
Total deferred tax liabilities
 
(5,098
)
 
(3,222
)
Net deferred tax assets (liabilities)
 
(823
)
 
97

 
 
 
 
 
Reported as:
 
 
 
 
Deferred tax assets
 
907

 
1,051

Deferred tax liabilities
 
(1,730
)
 
(954
)
Net deferred tax assets (liabilities)
 
$
(823
)
 
$
97

Schedule of Unrecognized Tax Benefits Roll Forward [Table Text Block]
The aggregate changes in the balance of gross unrecognized tax benefits for each period were as follows:
Years Ended
(In Millions)
 
Dec 31,
2016
 
Dec 26,
2015
 
Dec 27,
2014
Beginning gross unrecognized tax benefits
 
$
101

 
$
577

 
$
207

Settlements and effective settlements with tax authorities
and related remeasurements
 
(11
)
 
(452
)
 
(220
)
Lapse of statute of limitations
 
(16
)
 

 

Increases in balances related to tax positions taken during prior periods
 
81

 
4

 
173

Decreases in balances related to tax positions taken during prior periods
 
(11
)
 
(34
)
 
(1
)
Increases in balances related to tax positions taken during current period
 
10

 
6

 
418

Ending gross unrecognized tax benefits
 
$
154

 
$
101

 
$
577