Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v2.4.0.8
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