|
Income Taxes (Tables)
|
12 Months Ended |
|
Sep. 28, 2014
|
| Income Tax Disclosure [Abstract] |
|
| Components of income tax provision |
The components of the income tax provision for continuing operations were as follows (in millions):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2014 |
|
2013 |
|
2012 |
Current provision: |
|
|
|
|
|
Federal |
$ |
172 |
|
|
$ |
324 |
|
|
$ |
140 |
|
State |
10 |
|
|
15 |
|
|
1 |
|
Foreign |
1,116 |
|
|
1,068 |
|
|
934 |
|
|
1,298 |
|
|
1,407 |
|
|
1,075 |
|
Deferred (benefit) provision: |
|
|
|
|
|
Federal |
(30 |
) |
|
(32 |
) |
|
208 |
|
State |
(10 |
) |
|
6 |
|
|
(16 |
) |
Foreign |
(14 |
) |
|
(32 |
) |
|
12 |
|
|
(54 |
) |
|
(58 |
) |
|
204 |
|
|
$ |
1,244 |
|
|
$ |
1,349 |
|
|
$ |
1,279 |
|
|
| 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):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2014 |
|
2013 |
|
2012 |
United States |
$ |
3,213 |
|
|
$ |
3,798 |
|
|
$ |
3,525 |
|
Foreign |
5,565 |
|
|
4,396 |
|
|
3,037 |
|
|
$ |
8,778 |
|
|
$ |
8,194 |
|
|
$ |
6,562 |
|
|
| 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):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2014 |
|
2013 |
|
2012 |
Expected income tax provision at federal statutory tax rate |
$ |
3,072 |
|
|
$ |
2,868 |
|
|
$ |
2,297 |
|
State income tax provision, net of federal benefit |
24 |
|
|
26 |
|
|
24 |
|
Foreign income taxed at other than U.S. rates |
(1,750 |
) |
|
(1,362 |
) |
|
(1,045 |
) |
Research and development tax credits |
(61 |
) |
|
(195 |
) |
|
(36 |
) |
Other |
(41 |
) |
|
12 |
|
|
39 |
|
|
$ |
1,244 |
|
|
$ |
1,349 |
|
|
$ |
1,279 |
|
|
| Summary of income tax holiday |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2014 |
|
2013 |
|
2012 |
Additional income tax expense |
$ |
690 |
|
|
$ |
758 |
|
|
$ |
193 |
|
Reduction to basic earnings per share |
$ |
0.41 |
|
|
$ |
0.44 |
|
|
$ |
0.11 |
|
Reduction to diluted earnings per share |
$ |
0.40 |
|
|
$ |
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 28, 2014 |
|
September 29, 2013 |
Unearned revenues |
$ |
1,189 |
|
|
$ |
1,305 |
|
Accrued liabilities and reserves |
529 |
|
|
305 |
|
Share-based compensation |
404 |
|
|
497 |
|
Unrealized losses on marketable securities |
370 |
|
|
293 |
|
Unused net operating losses |
120 |
|
|
91 |
|
Other |
127 |
|
|
149 |
|
Total gross deferred tax assets |
2,739 |
|
|
2,640 |
|
Valuation allowance |
(60 |
) |
|
(51 |
) |
Total net deferred tax assets |
2,679 |
|
|
2,589 |
|
Unrealized gains on marketable securities |
(484 |
) |
|
(536 |
) |
Intangible assets |
(315 |
) |
|
(265 |
) |
Property, plant and equipment |
(104 |
) |
|
(129 |
) |
Other |
(31 |
) |
|
(27 |
) |
Total deferred tax liabilities |
(934 |
) |
|
(957 |
) |
Net deferred tax assets |
$ |
1,745 |
|
|
$ |
1,632 |
|
Reported as: |
|
|
|
Current deferred tax assets |
$ |
577 |
|
|
$ |
573 |
|
Non-current deferred tax assets |
1,174 |
|
|
1,059 |
|
Non-current deferred tax assets held for sale (1) |
— |
|
|
2 |
|
Non-current deferred tax liabilities (1) |
(6 |
) |
|
(2 |
) |
|
$ |
1,745 |
|
|
$ |
1,632 |
|
|
|
(1) |
Non-current deferred tax assets held for sale and non-current deferred tax liabilities were included in other assets 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 2014, 2013 and 2012 follows (in millions):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2014 |
|
2013 |
|
2012 |
Beginning balance of unrecognized tax benefits |
$ |
221 |
|
|
$ |
86 |
|
|
$ |
96 |
|
Additions based on prior year tax positions |
1 |
|
|
1 |
|
|
— |
|
Reductions for prior year tax positions and lapse in statute of limitations |
(67 |
) |
|
— |
|
|
(18 |
) |
Additions for current year tax positions |
5 |
|
|
145 |
|
|
10 |
|
Settlements with taxing authorities |
(73 |
) |
|
(11 |
) |
|
(2 |
) |
Ending balance of unrecognized tax benefits |
$ |
87 |
|
|
$ |
221 |
|
|
$ |
86 |
|
|