Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v2.4.0.8
Income Taxes (Tables)
12 Months Ended
Dec. 28, 2013
Taxes (Tables) [Abstract]  
Income Before Taxes And Provisions For Taxes [Table Text Block]
Income before taxes and the provision for taxes consisted of the following:
(Dollars in Millions)
 
2013
 
2012
 
2011
Income before taxes:
 
 
 
 
 
 
U.S.
 
$
9,374

 
$
10,042

 
$
14,659

Non-U.S.
 
3,237

 
4,831

 
3,122

Total income before taxes
 
$
12,611

 
$
14,873

 
$
17,781

Provision for taxes:
 
 
 
 
 
 
Current:
 
 
 
 
 
 
Federal
 
$
2,730

 
$
2,539

 
$
3,212

State
 
68

 
52

 
104

Non-U.S.
 
716

 
1,135

 
374

Total current provision for taxes
 
$
3,514

 
$
3,726

 
$
3,690

Deferred:
 
 
 
 
 
 
Federal
 
$
(412
)
 
$
129

 
$
1,175

Other
 
(111
)
 
13

 
(26
)
Total deferred provision for taxes
 
$
(523
)
 
$
142

 
$
1,149

Total provision for taxes
 
$
2,991

 
$
3,868

 
$
4,839

Effective tax rate
 
23.7
%
 
26.0
%
 
27.2
%
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:
  
 
2013
 
2012
 
2011
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
 
(5.8
)
 
(7.3
)
 
(4.4
)
Research and development tax credits
 
(3.5
)
 

 
(1.0
)
Domestic manufacturing deduction benefit
 
(2.1
)
 
(2.1
)
 
(1.9
)
Other
 
0.1

 
0.4

 
(0.5
)
Effective tax rate
 
23.7
 %
 
26.0
 %
 
27.2
 %
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:
(In Millions)
 
Dec 28,
2013
 
Dec 29,
2012
Deferred tax assets:
 
 
 
 
Accrued compensation and other benefits
 
$
1,047

 
$
1,125

Share-based compensation
 
564

 
638

Deferred income
 
672

 
637

Inventory
 
733

 
506

Unrealized losses on investments and derivatives
 

 
36

State credits and net operating losses
 
378

 
297

Other, net
 
654

 
654

Gross deferred tax assets
 
4,048

 
3,893

Valuation allowance
 
(456
)
 
(389
)
Total deferred tax assets
 
$
3,592

 
$
3,504

Deferred tax liabilities:
 
 
 
 
Property, plant and equipment
 
$
(2,023
)
 
$
(2,325
)
Licenses and intangibles
 
(687
)
 
(778
)
Convertible debt
 
(911
)
 
(856
)
Unrealized gains on investments and derivatives
 
(815
)
 

Investment in non-U.S. subsidiaries
 
(244
)
 
(213
)
Other, net
 
(281
)
 
(269
)
Total deferred tax liabilities
 
$
(4,961
)
 
$
(4,441
)
Net deferred tax assets (liabilities)
 
$
(1,369
)
 
$
(937
)
 
 
 
 
 
Reported as:
 
 
 
 
Current deferred tax assets
 
$
2,594

 
$
2,117

Non-current deferred tax assets
 
434

 
358

Non-current deferred tax liabilities
 
(4,397
)
 
(3,412
)
Net deferred tax assets (liabilities)
 
$
(1,369
)
 
$
(937
)
Changes In Gross Unrecognized Tax Benefits [Table Text Block]
The aggregate changes in the balance of gross unrecognized tax benefits for each period were as follows:
(In Millions)
 
2013
 
2012
 
2011
Beginning gross unrecognized tax benefits
 
$
189

 
$
212

 
$
216

Settlements and effective settlements with tax authorities and related remeasurements
 
(2
)
 
(81
)
 
(63
)
Lapse of statute of limitations
 

 
(5
)
 
(17
)
Increases in balances related to tax positions taken during prior periods
 
21

 
56

 
91

Decreases in balances related to tax positions taken during prior periods
 
(9
)
 
(6
)
 
(21
)
Increases in balances related to tax positions taken during current period
 
8

 
13

 
6

Ending gross unrecognized tax benefits
 
$
207

 
$
189

 
$
212