Income Taxes (Tables)
|
12 Months Ended |
Sep. 24, 2017 |
|---|
| Income Tax Disclosure [Abstract] |
|
| Components of Income Tax Expense (Benefit) |
The components of the income tax provision were as follows (in millions):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2017 |
|
2016 |
|
2015 |
Current provision (benefit): |
|
|
|
|
|
Federal |
$ |
72 |
|
|
$ |
4 |
|
|
$ |
(67 |
) |
State |
3 |
|
|
4 |
|
|
4 |
|
Foreign |
1,256 |
|
|
1,411 |
|
|
1,307 |
|
|
1,331 |
|
|
1,419 |
|
|
1,244 |
|
Deferred (benefit) provision: |
|
|
|
|
|
Federal |
(586 |
) |
|
(184 |
) |
|
(9 |
) |
State |
4 |
|
|
6 |
|
|
1 |
|
Foreign |
(194 |
) |
|
(110 |
) |
|
(17 |
) |
|
(776 |
) |
|
(288 |
) |
|
(25 |
) |
|
$ |
555 |
|
|
$ |
1,131 |
|
|
$ |
1,219 |
|
|
| Income before Income Tax, Domestic and Foreign |
The components of income before income taxes by United States and foreign jurisdictions were as follows (in millions):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2017 |
|
2016 |
|
2015 |
United States |
$ |
(762 |
) |
|
$ |
3,032 |
|
|
$ |
2,993 |
|
Foreign |
3,782 |
|
|
3,801 |
|
|
3,494 |
|
|
$ |
3,020 |
|
|
$ |
6,833 |
|
|
$ |
6,487 |
|
|
| 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 (in millions):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2017 |
|
2016 |
|
2015 |
Expected income tax provision at federal statutory tax rate |
$ |
1,057 |
|
|
$ |
2,392 |
|
|
$ |
2,270 |
|
State income tax provision, net of federal benefit |
8 |
|
|
19 |
|
|
18 |
|
Foreign income taxed at other than U.S. rates |
(963 |
) |
|
(1,068 |
) |
|
(937 |
) |
Research and development tax credits |
(81 |
) |
|
(143 |
) |
|
(148 |
) |
Worthless stock deduction of domestic subsidiary |
— |
|
|
(101 |
) |
|
— |
|
Nondeductible charges related to the KFTC and TFTC investigations |
363 |
|
|
— |
|
|
— |
|
Impact of changes in tax reserves and audit settlements for prior year tax positions |
111 |
|
|
— |
|
|
(61 |
) |
Other |
60 |
|
|
32 |
|
|
77 |
|
|
$ |
555 |
|
|
$ |
1,131 |
|
|
$ |
1,219 |
|
|
| 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):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2017 |
|
2016 |
|
2015 |
Additional income tax expense |
$ |
493 |
|
|
$ |
487 |
|
|
$ |
656 |
|
Reduction to diluted earnings per share |
$ |
0.33 |
|
|
$ |
0.32 |
|
|
$ |
0.40 |
|
|
| Deferred Tax Assets and Liabilities |
The Company had deferred tax assets and deferred tax liabilities as follows (in millions):
|
|
|
|
|
|
|
|
|
|
September 24, 2017 |
|
September 25, 2016 |
Unused tax credits |
$ |
1,798 |
|
|
$ |
1,256 |
|
Accrued liabilities and reserves |
888 |
|
|
409 |
|
Unearned revenues |
886 |
|
|
920 |
|
Share-based compensation |
241 |
|
|
277 |
|
Unused net operating losses |
208 |
|
|
218 |
|
Unrealized losses on other investments and marketable securities |
151 |
|
|
254 |
|
Other |
21 |
|
|
55 |
|
Total gross deferred tax assets |
4,193 |
|
|
3,389 |
|
Valuation allowance |
(863 |
) |
|
(754 |
) |
Total net deferred tax assets |
3,330 |
|
|
2,635 |
|
Intangible assets |
(535 |
) |
|
(502 |
) |
Unrealized gains on other investments and marketable securities |
(33 |
) |
|
(194 |
) |
Other |
(95 |
) |
|
(78 |
) |
Total deferred tax liabilities |
(663 |
) |
|
(774 |
) |
Net deferred tax assets |
$ |
2,667 |
|
|
$ |
1,861 |
|
Reported as: |
|
|
|
Non-current deferred tax assets |
2,900 |
|
|
2,030 |
|
Non-current deferred tax liabilities (1) |
(233 |
) |
|
(169 |
) |
|
$ |
2,667 |
|
|
$ |
1,861 |
|
|
|
(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 2017, 2016 and 2015 follows (in millions):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2017 |
|
2016 |
|
2015 |
Beginning balance of unrecognized tax benefits |
$ |
271 |
|
|
$ |
40 |
|
|
$ |
87 |
|
Additions based on prior year tax positions |
92 |
|
|
20 |
|
|
31 |
|
Reductions for prior year tax positions and lapse in statute of limitations |
(11 |
) |
|
(6 |
) |
|
(70 |
) |
Additions for current year tax positions |
23 |
|
|
218 |
|
|
5 |
|
Settlements with taxing authorities |
(3 |
) |
|
(1 |
) |
|
(13 |
) |
Ending balance of unrecognized tax benefits |
$ |
372 |
|
|
$ |
271 |
|
|
$ |
40 |
|
|