Income Taxes (Tables)
|
12 Months Ended |
Sep. 29, 2013
|
Notes to Financial Statements [Abstract] |
|
Components of income tax provision |
The components of the income tax provision were as follows (in millions):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2013 |
|
2012 |
|
2011 |
Current provision: |
|
|
|
|
|
Federal |
$ |
324 |
|
|
$ |
140 |
|
|
$ |
179 |
|
State |
15 |
|
|
1 |
|
|
57 |
|
Foreign |
1,068 |
|
|
934 |
|
|
670 |
|
|
1,407 |
|
|
1,075 |
|
|
906 |
|
Deferred (benefit) provision: |
|
|
|
|
|
Federal |
(32 |
) |
|
208 |
|
|
170 |
|
State |
6 |
|
|
(16 |
) |
|
62 |
|
Foreign |
(32 |
) |
|
12 |
|
|
(6 |
) |
|
(58 |
) |
|
204 |
|
|
226 |
|
|
$ |
1,349 |
|
|
$ |
1,279 |
|
|
$ |
1,132 |
|
|
Components of income before income taxes |
The components of income from continuing operations before income taxes by United States and foreign jurisdictions were as follows (in millions):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2013 |
|
2012 |
|
2011 |
United States |
$ |
3,798 |
|
|
$ |
3,525 |
|
|
$ |
2,984 |
|
Foreign |
4,396 |
|
|
3,037 |
|
|
2,703 |
|
|
$ |
8,194 |
|
|
$ |
6,562 |
|
|
$ |
5,687 |
|
|
Reconciliation of the expected statutory federal income tax provision to actual income tax provision |
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):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2013 |
|
2012 |
|
2011 |
Expected income tax provision at federal statutory tax rate |
$ |
2,868 |
|
|
$ |
2,297 |
|
|
$ |
1,991 |
|
State income tax provision, net of federal benefit |
26 |
|
|
24 |
|
|
283 |
|
Foreign income taxed at other than U.S. rates |
(1,362 |
) |
|
(1,045 |
) |
|
(1,074 |
) |
Tax credits |
(195 |
) |
|
(36 |
) |
|
(151 |
) |
Valuation allowance |
(3 |
) |
|
55 |
|
|
42 |
|
Revaluation of deferred taxes |
8 |
|
|
— |
|
|
69 |
|
Other |
7 |
|
|
(16 |
) |
|
(28 |
) |
|
$ |
1,349 |
|
|
$ |
1,279 |
|
|
$ |
1,132 |
|
|
Summary of Income Tax Holiday [Table Text Block] |
|
|
|
|
|
|
|
|
|
|
2013 |
|
2012 |
Additional income tax expense |
$ |
758 |
|
|
$ |
193 |
|
Reduction to basic earnings per share |
$ |
0.44 |
|
|
$ |
0.11 |
|
Reduction to diluted earnings per share |
$ |
0.43 |
|
|
$ |
0.11 |
|
|
Deferred tax assets and deferred tax liabilities |
The Company had deferred tax assets and deferred tax liabilities as follows (in millions):
|
|
|
|
|
|
|
|
|
|
September 29, 2013 |
|
September 30, 2012 |
Unearned revenues |
$ |
1,305 |
|
|
$ |
1,340 |
|
Share-based compensation |
497 |
|
|
623 |
|
Unrealized losses on marketable securities |
293 |
|
|
232 |
|
Accrued liabilities and reserves |
305 |
|
|
260 |
|
Unused net operating losses |
91 |
|
|
105 |
|
Capitalized start-up and organizational costs |
71 |
|
|
78 |
|
Tax credits |
29 |
|
|
50 |
|
Other |
49 |
|
|
102 |
|
Total gross deferred assets |
2,640 |
|
|
2,790 |
|
Valuation allowance |
(51 |
) |
|
(142 |
) |
Total net deferred assets |
2,589 |
|
|
2,648 |
|
Unrealized gains on marketable securities |
(536 |
) |
|
(552 |
) |
Intangible assets |
(265 |
) |
|
(261 |
) |
Property, plant and equipment |
(129 |
) |
|
(115 |
) |
Other |
(27 |
) |
|
(7 |
) |
Total deferred liabilities |
(957 |
) |
|
(935 |
) |
Net deferred assets |
$ |
1,632 |
|
|
$ |
1,713 |
|
Reported as: |
|
|
|
Current deferred tax assets |
$ |
573 |
|
|
$ |
309 |
|
Non-current deferred tax assets |
1,059 |
|
|
1,412 |
|
Non-current assets held for sale |
2 |
|
|
— |
|
Current deferred tax liabilities (1) |
— |
|
|
(1 |
) |
Non-current deferred tax liabilities (1) |
(2 |
) |
|
(7 |
) |
|
$ |
1,632 |
|
|
$ |
1,713 |
|
|
|
(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. |
|
Changes in the amount of unrecognized tax benefits |
A summary of the changes in the amount of unrecognized tax benefits for fiscal 2013, 2012 and 2011 follows (in millions):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2013 |
|
2012 |
|
2011 |
Beginning balance of unrecognized tax benefits |
$ |
86 |
|
|
$ |
96 |
|
|
$ |
353 |
|
Additions based on prior year tax positions |
1 |
|
|
— |
|
|
64 |
|
Reductions for prior year tax positions and lapse in statute of limitations |
— |
|
|
(18 |
) |
|
(10 |
) |
Additions for current year tax positions |
145 |
|
|
10 |
|
|
12 |
|
Settlements with taxing authorities |
(11 |
) |
|
(2 |
) |
|
(323 |
) |
Ending balance of unrecognized tax benefits |
$ |
221 |
|
|
$ |
86 |
|
|
$ |
96 |
|
|