Income Taxes (Tables)
|
12 Months Ended |
Sep. 25, 2016 |
Income Tax Disclosure [Abstract] |
|
Components of Income Tax Expense (Benefit) |
The components of the income tax provision for continuing operations were as follows (in millions):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2016 |
|
2015 |
|
2014 |
Current provision (benefit): |
|
|
|
|
|
Federal |
$ |
4 |
|
|
$ |
(67 |
) |
|
$ |
172 |
|
State |
4 |
|
|
4 |
|
|
10 |
|
Foreign |
1,411 |
|
|
1,307 |
|
|
1,116 |
|
|
1,419 |
|
|
1,244 |
|
|
1,298 |
|
Deferred (benefit) provision: |
|
|
|
|
|
Federal |
(184 |
) |
|
(9 |
) |
|
(30 |
) |
State |
6 |
|
|
1 |
|
|
(10 |
) |
Foreign |
(110 |
) |
|
(17 |
) |
|
(14 |
) |
|
(288 |
) |
|
(25 |
) |
|
(54 |
) |
|
$ |
1,131 |
|
|
$ |
1,219 |
|
|
$ |
1,244 |
|
|
Income before Income Tax, Domestic and Foreign |
The components of income from continuing operations before income taxes by United States and foreign jurisdictions were as follows (in millions):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2016 |
|
2015 |
|
2014 |
United States |
$ |
3,032 |
|
|
$ |
2,993 |
|
|
$ |
3,213 |
|
Foreign |
3,801 |
|
|
3,494 |
|
|
5,565 |
|
|
$ |
6,833 |
|
|
$ |
6,487 |
|
|
$ |
8,778 |
|
|
Effective Income Tax Rate Reconciliation |
The following is a reconciliation of the expected statutory federal income tax provision to the Company’s actual income tax provision for continuing operations (in millions):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2016 |
|
2015 |
|
2014 |
Expected income tax provision at federal statutory tax rate |
$ |
2,392 |
|
|
$ |
2,270 |
|
|
$ |
3,072 |
|
State income tax provision, net of federal benefit |
19 |
|
|
18 |
|
|
24 |
|
Foreign income taxed at other than U.S. rates |
(1,068 |
) |
|
(937 |
) |
|
(1,750 |
) |
Research and development tax credits |
(143 |
) |
|
(148 |
) |
|
(61 |
) |
Worthless stock deduction of domestic subsidiary |
(101 |
) |
|
— |
|
|
— |
|
Other |
32 |
|
|
16 |
|
|
(41 |
) |
|
$ |
1,131 |
|
|
$ |
1,219 |
|
|
$ |
1,244 |
|
|
Summary of Income Tax Holiday |
Had the Company established QCT’s non-United States headquarters in Singapore without these tax incentives, the Company’s income tax expense would have been higher and impacted earnings per share attributable to Qualcomm as follows (in millions, except per share amounts):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2016 |
|
2015 |
|
2014 |
Additional income tax expense |
$ |
487 |
|
|
$ |
656 |
|
|
$ |
690 |
|
Reduction to diluted earnings per share |
$ |
0.32 |
|
|
$ |
0.40 |
|
|
$ |
0.40 |
|
|
Deferred Tax Assets and Liabilities |
The Company had deferred tax assets and deferred tax liabilities as follows (in millions):
|
|
|
|
|
|
|
|
|
|
September 25, 2016 |
|
September 27, 2015 |
Unused tax credits |
$ |
1,256 |
|
|
$ |
897 |
|
Unearned revenues |
920 |
|
|
1,029 |
|
Unrealized losses on marketable securities |
493 |
|
|
441 |
|
Accrued liabilities and reserves |
409 |
|
|
317 |
|
Share-based compensation |
277 |
|
|
331 |
|
Unused net operating losses |
218 |
|
|
265 |
|
Other |
107 |
|
|
95 |
|
Total gross deferred tax assets |
3,680 |
|
|
3,375 |
|
Valuation allowance |
(754 |
) |
|
(635 |
) |
Total net deferred tax assets |
2,926 |
|
|
2,740 |
|
Intangible assets |
(502 |
) |
|
(548 |
) |
Unrealized gains on marketable securities |
(430 |
) |
|
(273 |
) |
Other |
(133 |
) |
|
(105 |
) |
Total deferred tax liabilities |
(1,065 |
) |
|
(926 |
) |
Net deferred tax assets |
$ |
1,861 |
|
|
$ |
1,814 |
|
Reported as: |
|
|
|
Current deferred tax assets |
$ |
— |
|
|
$ |
635 |
|
Non-current deferred tax assets |
2,030 |
|
|
1,453 |
|
Current deferred tax liabilities (1) |
— |
|
|
(4 |
) |
Non-current deferred tax liabilities (1) |
(169 |
) |
|
(270 |
) |
|
$ |
1,861 |
|
|
$ |
1,814 |
|
|
|
(1) |
Current deferred tax liabilities and non-current deferred tax liabilities were included in other current liabilities and other liabilities, respectively, in the consolidated balance sheets. |
|
Unrecognized Tax Benefits Roll Forward |
A summary of the changes in the amount of unrecognized tax benefits for fiscal 2016, 2015 and 2014 follows (in millions):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2016 |
|
2015 |
|
2014 |
Beginning balance of unrecognized tax benefits |
$ |
40 |
|
|
$ |
87 |
|
|
$ |
221 |
|
Additions based on prior year tax positions |
20 |
|
|
31 |
|
|
1 |
|
Reductions for prior year tax positions and lapse in statute of limitations |
(6 |
) |
|
(70 |
) |
|
(67 |
) |
Additions for current year tax positions |
218 |
|
|
5 |
|
|
5 |
|
Settlements with taxing authorities |
(1 |
) |
|
(13 |
) |
|
(73 |
) |
Ending balance of unrecognized tax benefits |
$ |
271 |
|
|
$ |
40 |
|
|
$ |
87 |
|
|