Income Taxes (Tables)
|
12 Months Ended |
Sep. 29, 2019 |
|---|
| Income Tax Disclosure [Abstract] |
|
| Components of Income Tax Expense (Benefit) |
The components of the income tax provision were as follows (in millions):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2019 |
|
2018 |
|
2017 |
Current provision (benefit): |
|
|
|
|
|
Federal |
$ |
1,563 |
|
|
$ |
2,559 |
|
|
$ |
72 |
|
State |
2 |
|
|
(1 |
) |
|
3 |
|
Foreign |
(407 |
) |
|
777 |
|
|
1,256 |
|
|
1,158 |
|
|
3,335 |
|
|
1,331 |
|
Deferred provision (benefit): |
|
|
|
|
|
Federal |
2,037 |
|
|
1,846 |
|
|
(598 |
) |
State |
17 |
|
|
1 |
|
|
4 |
|
Foreign |
(117 |
) |
|
174 |
|
|
(194 |
) |
|
1,937 |
|
|
2,021 |
|
|
(788 |
) |
|
$ |
3,095 |
|
|
$ |
5,356 |
|
|
$ |
543 |
|
|
| Income before Income Tax, Domestic and Foreign |
The components of income before income taxes by U.S. and foreign jurisdictions were as follows (in millions):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2019 |
|
2018 |
|
2017 |
United States |
$ |
7,042 |
|
|
$ |
(1,834 |
) |
|
$ |
(795 |
) |
Foreign |
439 |
|
|
2,226 |
|
|
3,782 |
|
|
$ |
7,481 |
|
|
$ |
392 |
|
|
$ |
2,987 |
|
|
| Effective Income Tax Rate Reconciliation |
The following is a reconciliation of the expected statutory federal income tax provision to our actual income tax provision (in millions):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2019 |
|
2018 |
|
2017 |
Expected income tax provision at federal statutory tax rate |
$ |
1,571 |
|
|
$ |
97 |
|
|
$ |
1,045 |
|
State income tax provision, net of federal benefit |
10 |
|
|
2 |
|
|
8 |
|
Derecognition of deferred tax asset on distributed intellectual property |
2,472 |
|
|
— |
|
|
— |
|
Benefits from establishing new U.S. net deferred tax assets |
(570 |
) |
|
— |
|
|
— |
|
Benefits from foreign-derived intangible income (FDII) deduction |
(419 |
) |
|
— |
|
|
— |
|
Benefits related to research and development tax credits |
(110 |
) |
|
(136 |
) |
|
(81 |
) |
Benefits from foreign income taxed at other than U.S. rates |
(54 |
) |
|
(834 |
) |
|
(963 |
) |
Nondeductible charges (reversals) related to the EC, KFTC and TFTC investigations |
51 |
|
|
(119 |
) |
|
363 |
|
Impact of changes in tax reserves and audit settlements for prior year tax positions |
20 |
|
|
— |
|
|
111 |
|
Taxes on undistributed foreign earnings |
8 |
|
|
87 |
|
|
— |
|
Toll Charge from U.S. tax reform |
— |
|
|
5,236 |
|
|
— |
|
Valuation allowance on deferred tax assets related to NXP termination fee |
— |
|
|
494 |
|
|
— |
|
Remeasurement of deferred taxes due to changes in statutory rate due to U.S. tax reform |
— |
|
|
443 |
|
|
— |
|
Other |
116 |
|
|
86 |
|
|
60 |
|
|
$ |
3,095 |
|
|
$ |
5,356 |
|
|
$ |
543 |
|
|
| Summary of Income Tax Holiday |
Without these tax incentives, our income tax expense would have been higher and impacted earnings (loss) per share attributable to Qualcomm as follows (in millions, except per share amounts):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2019 |
|
2018 |
|
2017 |
Additional income tax expense |
$ |
— |
|
|
$ |
652 |
|
|
$ |
493 |
|
Reduction to diluted earnings (loss) per share |
— |
|
|
0.45 |
|
|
0.33 |
|
|
| Deferred Tax Assets and Liabilities |
We had deferred tax assets and deferred tax liabilities as follows (in millions):
|
|
|
|
|
|
|
|
|
|
September 29, 2019 |
|
September 30, 2018 |
Unused tax credits |
$ |
1,137 |
|
|
$ |
1,044 |
|
Accrued liabilities and reserves |
648 |
|
|
396 |
|
Unused net operating losses |
619 |
|
|
696 |
|
Unearned revenues |
376 |
|
|
478 |
|
Unrealized losses on other investments and marketable securities |
164 |
|
|
126 |
|
Share-based compensation |
115 |
|
|
97 |
|
Other |
144 |
|
|
26 |
|
Total gross deferred tax assets |
3,203 |
|
|
2,863 |
|
Valuation allowance |
(1,672 |
) |
|
(1,529 |
) |
Total net deferred tax assets |
1,531 |
|
|
1,334 |
|
Intangible assets |
(216 |
) |
|
(322 |
) |
Property, plant and equipment |
(102 |
) |
|
(49 |
) |
Unrealized gains on other investments and marketable securities |
(99 |
) |
|
(26 |
) |
Accrued withholding taxes |
(19 |
) |
|
(90 |
) |
Accrued revenues |
— |
|
|
(202 |
) |
Other |
(2 |
) |
|
— |
|
Total deferred tax liabilities |
(438 |
) |
|
(689 |
) |
Net deferred tax assets |
$ |
1,093 |
|
|
$ |
645 |
|
Reported as: |
|
|
|
Non-current deferred tax assets |
$ |
1,196 |
|
|
$ |
936 |
|
Non-current deferred tax liabilities (1) |
(103 |
) |
|
(291 |
) |
|
$ |
1,093 |
|
|
$ |
645 |
|
(1)
Non-current deferred tax liabilities were included in other liabilities in the consolidated balance sheets.
|
| Unrecognized Tax Benefits Roll Forward |
A summary of the changes in the amount of unrecognized tax benefits for fiscal 2019, 2018 and 2017 follows (in millions):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2019 |
|
2018 |
|
2017 |
Beginning balance of unrecognized tax benefits |
$ |
217 |
|
|
$ |
372 |
|
|
$ |
271 |
|
Additions based on prior year tax positions |
1,238 |
|
|
7 |
|
|
92 |
|
Reductions for prior year tax positions and lapse in statute of limitations |
(3 |
) |
|
(11 |
) |
|
(11 |
) |
Additions for current year tax positions |
253 |
|
|
18 |
|
|
23 |
|
Settlements with taxing authorities |
— |
|
|
(169 |
) |
|
(3 |
) |
Ending balance of unrecognized tax benefits |
$ |
1,705 |
|
|
$ |
217 |
|
|
$ |
372 |
|
|