Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v3.3.1.900
Income Taxes (Tables)
12 Months Ended
Dec. 26, 2015
Income Tax Disclosure [Abstract]  
Provision (Benefit) for Income Taxes
The provision (benefit) for income taxes consists of:
 
2015
 
2014
 
2013
 
(In millions)
Current:
 
 
 
 
 
U.S. Federal
$
(1
)
 
$
(1
)
 
$
(2
)
U.S. State and Local

 

 

Foreign National and Local
16

 
6

 
10

Total
15

 
5

 
8

Deferred:
 
 
 
 
 
U.S. Federal

 

 
3

Foreign National and Local
(1
)
 

 
(2
)
Total
(1
)
 

 
1

Provision for income taxes
$
14

 
$
5

 
$
9

Schedule of Loss before Income Tax
Loss before income taxes consists of the following:
 
2015
 
2014
 
2013
 
(In millions)
U.S.
$
(1,100
)
 
$
(621
)
 
$
(397
)
Foreign
454

 
223

 
323

Total pre-tax loss
$
(646
)
 
$
(398
)
 
$
(74
)
Schedule of Deferred Tax Assets and Liabilities
Deferred income taxes reflect the net tax effects of tax carryovers and temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the balances for income tax purposes. Significant components of the Company’s deferred tax assets and liabilities as of December 26, 2015 and December 27, 2014 are as follows:
 
December 26,
2015
 
December 27,
2014
 
(In millions)
Deferred tax assets:
 
 
 
Net operating loss carryovers
$
2,342

 
$
1,978

Deferred distributor income
20

 
28

Inventory valuation
39

 
22

Accrued expenses not currently deductible
74

 
107

Acquired intangibles
257

 
248

Tax deductible goodwill
192

 
295

Federal and state tax credit carryovers
400

 
391

Foreign capitalized research and development costs
60

 
41

Foreign research and development ITC credits
231

 
282

Discount of convertible notes
1

 
11

Other
119

 
167

Total deferred tax assets
3,735

 
3,570

Less: valuation allowance
(3,669
)
 
(3,495
)
Total deferred tax assets, net of valuation allowance
66

 
75

Deferred tax liabilities:
 
 
 
Undistributed foreign earnings
(33
)
 
(37
)
Other
(23
)
 
(19
)
Total deferred tax liabilities
(56
)
 
(56
)
Net deferred tax assets
$
10

 
$
19

Schedule of Deferred Tax Assets and Liabilities, Current and Noncurrent
The breakdown between current and non-current deferred tax assets and deferred tax liabilities as of December 26, 2015 and December 27, 2014 is as follows:
 
December 26,
2015
 
December 27,
2014
 
(In millions)
Current deferred tax assets
$
8

 
$
2

Non-current deferred tax assets
48

 
33

Current deferred tax liabilities
(46
)
 
(16
)
Net deferred tax assets
$
10

 
$
19

Summary of Tax Attribute Carryforwards
The following is a summary of the various tax attribute carryforwards the Company had as of December 26, 2015. The amounts presented below include amounts related to excess stock option deductions, as discussed above.
Carryforward
Federal
 
State /
Provincial
 
Expiration
 
(In millions)
 
 
U.S.-net operating loss carryovers
$
6,478

 
$
335

 
2016 to 2035
U.S.-credit carryovers
$
401

 
$
204

 
2016 to 2035
Canada-net operating loss carryovers
$
173

 
$
173

 
2027 to 2028
Canada-credit carryovers
$
302

 
$
32

 
2021 to 2035
Canada-R&D pools
$
225

 
$
225

 
no expiration
Barbados-net operating loss carryovers
$
143

 
N/A

 
2016 to 2017
Other foreign net operating loss carryovers
$
19

 
N/A

 
various
Schedule of Effective Income Tax Rate Reconciliation
The table below displays reconciliation between statutory federal income taxes and the total provision (benefit) for income taxes.
 
2015
 
2014
 
2013
 
(In millions)
Statutory federal income tax benefit at 35% rate
$
(226
)
 
$
(139
)
 
$
(26
)
State taxes, net of federal benefit
1

 
1

 
1

Foreign (income) expense at other than U.S. rates
9

 
1

 
15

U.S. valuation allowance generated
232

 
144

 
22

Credit monetization
(2
)
 
(2
)
 
(3
)
Provision for income taxes
$
14

 
$
5

 
$
9

Schedule of Unrecognized Tax Benefits Roll Forward
A reconciliation of the gross unrecognized tax benefits is as follows:
 
2015
 
2014
 
2013
 
(In millions)
Balance at beginning of year
$
28

 
$
52

 
$
56

Increases for tax positions taken in prior years
11

 
1

 
1

Decreases for tax positions taken in prior years
(1
)
 

 
(2
)
Increases for tax positions taken in the current year
2

 
2

 
4

Decreases for settlements with taxing authorities
(2
)
 
(27
)
 
(7
)
Balance at end of year
$
38

 
$
28

 
$
52