|
Income Taxes (Tables)
|
12 Months Ended |
|
Sep. 30, 2012
|
| Notes to Financial Statements [Abstract] |
|
| Components of income tax provision |
The components of the income tax provision were as follows (in millions):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2012 |
|
2011 |
|
2010 |
Current provision: |
|
|
|
|
|
Federal |
$ |
140 |
|
|
$ |
179 |
|
|
$ |
1,514 |
|
State |
1 |
|
|
57 |
|
|
242 |
|
Foreign |
934 |
|
|
670 |
|
|
389 |
|
|
1,075 |
|
|
906 |
|
|
2,145 |
|
Deferred provision (benefit): |
|
|
|
|
|
Federal |
208 |
|
|
170 |
|
|
(1,139 |
) |
State |
(16 |
) |
|
62 |
|
|
(26 |
) |
Foreign |
12 |
|
|
(6 |
) |
|
(7 |
) |
|
204 |
|
|
226 |
|
|
(1,172 |
) |
|
$ |
1,279 |
|
|
$ |
1,132 |
|
|
$ |
973 |
|
|
| 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):
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|
|
|
|
|
|
|
|
|
|
|
|
|
2012 |
|
2011 |
|
2010 |
United States |
$ |
3,525 |
|
|
$ |
2,984 |
|
|
$ |
2,195 |
|
Foreign |
3,037 |
|
|
2,703 |
|
|
2,298 |
|
|
$ |
6,562 |
|
|
$ |
5,687 |
|
|
$ |
4,493 |
|
|
| 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):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2012 |
|
2011 |
|
2010 |
Expected income tax provision at federal statutory tax rate |
$ |
2,297 |
|
|
$ |
1,991 |
|
|
$ |
1,573 |
|
State income tax provision, net of federal benefit |
24 |
|
|
283 |
|
|
226 |
|
Foreign income taxed at other than U.S. rates |
(1,045 |
) |
|
(1,074 |
) |
|
(897 |
) |
Tax audit impacts, net |
(11 |
) |
|
1 |
|
|
3 |
|
Tax credits |
(36 |
) |
|
(151 |
) |
|
(55 |
) |
Valuation allowance |
55 |
|
|
42 |
|
|
(40 |
) |
Revaluation of deferred taxes |
— |
|
|
69 |
|
|
152 |
|
Other |
(5 |
) |
|
(29 |
) |
|
11 |
|
|
$ |
1,279 |
|
|
$ |
1,132 |
|
|
$ |
973 |
|
|
| Deferred tax assets and deferred tax liabilities |
The Company had deferred tax assets and deferred tax liabilities as follows (in millions):
|
|
|
|
|
|
|
|
|
|
September 30, 2012 |
|
September 25, 2011 |
Unearned revenues |
$ |
1,340 |
|
|
$ |
1,269 |
|
Share-based compensation |
623 |
|
|
592 |
|
Unrealized losses on marketable securities |
232 |
|
|
309 |
|
Accrued liabilities, reserves and other |
131 |
|
|
205 |
|
Capital loss carryover |
105 |
|
|
40 |
|
Capitalized start-up and organizational costs |
78 |
|
|
91 |
|
Unused net operating losses |
50 |
|
|
97 |
|
Tax credits |
11 |
|
|
145 |
|
Unrealized losses on other investments |
— |
|
|
28 |
|
Other |
91 |
|
|
30 |
|
Total gross deferred assets |
2,661 |
|
|
2,806 |
|
Valuation allowance |
(142 |
) |
|
(98 |
) |
Total net deferred assets |
2,519 |
|
|
2,708 |
|
Unrealized gains on marketable securities |
(552 |
) |
|
(206 |
) |
Purchased intangible assets |
(132 |
) |
|
(174 |
) |
Property, plant and equipment |
(115 |
) |
|
(85 |
) |
Other |
(7 |
) |
|
(7 |
) |
Total deferred liabilities |
(806 |
) |
|
(472 |
) |
Net deferred assets |
$ |
1,713 |
|
|
$ |
2,236 |
|
Reported as: |
|
|
|
Current deferred tax assets |
$ |
309 |
|
|
$ |
537 |
|
Non-current deferred tax assets |
1,412 |
|
|
1,703 |
|
Current deferred tax liabilities (1) |
(1 |
) |
|
(2 |
) |
Non-current deferred tax liabilities (1) |
(7 |
) |
|
(2 |
) |
|
$ |
1,713 |
|
|
$ |
2,236 |
|
|
|
(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 2012, 2011 and 2010 follows (in millions):
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|
|
|
|
|
|
|
|
|
|
|
|
|
2012 |
|
2011 |
|
2010 |
Beginning balance of unrecognized tax benefits |
$ |
96 |
|
|
$ |
353 |
|
|
$ |
84 |
|
Additions based on prior year tax positions |
— |
|
|
64 |
|
|
223 |
|
Reductions for prior year tax positions and lapse in statute of limitations |
(18 |
) |
|
(10 |
) |
|
(58 |
) |
Additions for current year tax positions |
10 |
|
|
12 |
|
|
165 |
|
Settlements with taxing authorities |
(2 |
) |
|
(323 |
) |
|
(61 |
) |
Ending balance of unrecognized tax benefits |
$ |
86 |
|
|
$ |
96 |
|
|
$ |
353 |
|
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