Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v2.4.1.9
Income Taxes (Tables)
 12 Months Ended
Dec. 27, 2014
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:
(Dollars in Millions)
 
2014
 
2013
 
2012
Income before taxes:
 
 
 
 
 
 
U.S.
 
$
11,565

 
$
9,374

 
$
10,042

Non-U.S.
 
4,236

 
3,237

 
4,831

Total income before taxes
 
15,801

 
12,611

 
14,873

Provision for taxes:
 
 
 
 
 
 
Current:
 
 
 
 
 
 
Federal
 
3,374

 
2,730

 
2,539

State
 
38

 
68

 
52

Non-U.S.
 
969

 
716

 
1,135

Total current provision for taxes
 
4,381

 
3,514

 
3,726

Deferred:
 
 
 
 
 
 
Federal
 
(263
)
 
(412
)
 
129

Other
 
(21
)
 
(111
)
 
13

Total deferred provision for taxes
 
(284
)
 
(523
)
 
142

Total provision for taxes
 
$
4,097

 
$
2,991

 
$
3,868

Effective tax rate
 
25.9
%
 
23.7
%
 
26.0
%
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:
  
 
2014
 
2013
 
2012
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
 
(6.1
)
 
(5.8
)
 
(7.3
)
Research and development tax credits
 
(1.7
)
 
(3.5
)
 
—

Domestic manufacturing deduction benefit
 
(2.1
)
 
(2.1
)
 
(2.1
)
Other
 
0.8

 
0.1

 
0.4

Effective tax rate
 
25.9
 %
 
23.7
 %
 
26.0
 %
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 27,
2014
 
Dec 28,
2013
Deferred tax assets:
 
 
 
 
Accrued compensation and other benefits
 
$
982

 
$
1,047

Share-based compensation
 
438

 
564

Deferred income
 
691

 
672

Inventory
 
339

 
733

State credits and net operating losses
 
519

 
378

Other, net
 
715

 
654

Gross deferred tax assets
 
3,684

 
4,048

Valuation allowance
 
(595
)
 
(456
)
Total deferred tax assets
 
3,089

 
3,592

Deferred tax liabilities:
 
 
 
 
Property, plant and equipment
 
(1,171
)
 
(2,023
)
Licenses and intangibles
 
(576
)
 
(687
)
Convertible debt
 
(977
)
 
(911
)
Unrealized gains on investments and derivatives
 
(1,017
)
 
(815
)
Investment in non-U.S. subsidiaries
 
(252
)
 
(244
)
Other, net
 
(291
)
 
(281
)
Total deferred tax liabilities
 
(4,284
)
 
(4,961
)
Net deferred tax assets (liabilities)
 
(1,195
)
 
(1,369
)
 
 
 
 
 
Reported as:
 
 
 
 
Current deferred tax assets
 
1,958

 
2,594

Non-current deferred tax assets
 
622

 
434

Non-current deferred tax liabilities
 
(3,775
)
 
(4,397
)
Net deferred tax assets (liabilities)
 
$
(1,195
)
 
$
(1,369
)
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:
(In Millions)
 
2014
 
2013
 
2012
Beginning gross unrecognized tax benefits
 
$
207

 
$
189

 
$
212

Settlements and effective settlements with tax authorities and related remeasurements
 
(220
)
 
(2
)
 
(81
)
Lapse of statute of limitations
 
—

 
—

 
(5
)
Increases in balances related to tax positions taken during prior periods
 
173

 
21

 
56

Decreases in balances related to tax positions taken during prior periods
 
(1
)
 
(9
)
 
(6
)
Increases in balances related to tax positions taken during current period
 
418

 
8

 
13

Ending gross unrecognized tax benefits
 
$
577

 
$
207

 
$
189