Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v3.8.0.1
Income Taxes (Tables)
12 Months Ended
Dec. 30, 2017
Income Tax Disclosure [Abstract]  
Provision (Benefit) for Income Taxes
The provision for income taxes consists of:
 
2017
 
2016
 
2015
 
(In millions)
Current:
 
 
 
 
 
U.S. Federal
$
(3
)
 
$
(2
)
 
$
(1
)
U.S. State and Local

 

 

Foreign National and Local
38

 
21

 
16

Total
35

 
19

 
15

Deferred:
 
 
 
 
 
U.S. Federal
(15
)
 
(1
)
 

Foreign National and Local
(1
)
 
21

 
(1
)
Total
(16
)
 
20

 
(1
)
Provision for income taxes
$
19

 
$
39

 
$
14

Schedule of Loss before Income Tax
Income (loss) before income taxes consists of the following:
 
2017
 
2016
 
2015
 
(In millions)
U.S.
$
108

 
$
(604
)
 
$
(1,100
)
Foreign
(46
)
 
146

 
454

Total pre-tax income (loss) including equity loss in investee
$
62

 
$
(458
)
 
$
(646
)
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 30, 2017 and December 31, 2016 are as follows:
 
December 30,
2017
 
December 31,
2016
 
(In millions)
Deferred tax assets:
 
 
 
Net operating loss carryovers
$
1,551

 
$
2,480

Deferred distributor income
7

 
26

Inventory valuation
20

 
26

Accrued expenses not currently deductible
61

 
65

Acquired intangibles
102

 
213

Tax deductible goodwill
56

 
146

Federal and state tax credit carryovers
546

 
427

Foreign research and development ITC credits
391

 
341

Other
55

 
83

Total deferred tax assets
2,789

 
3,807

Less: valuation allowance
(2,621
)
 
(3,526
)
Total deferred tax assets, net of valuation allowance
168

 
281

Deferred tax liabilities:
 
 
 
Discount of convertible notes
(58
)
 
(105
)
Undistributed foreign earnings
(97
)
 
(158
)
Other
(13
)
 
(18
)
Total deferred tax liabilities
(168
)
 
(281
)
Net deferred tax assets
$

 
$

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 30, 2017 and December 31, 2016 is as follows:
 
December 30,
2017
 
December 31,
2016
 
(In millions)
Current deferred tax assets
$

 
$

Non-current deferred tax assets
11

 
11

Current deferred tax liabilities

 

Non-current deferred tax liabilities
$
(11
)
 
$
(11
)
Net deferred tax assets
$

 
$

Summary of Tax Attribute Carryforwards
The following is a summary of the Company’s various tax attribute carryforwards as of December 30, 2017.
Carryforward
Federal
 
State /
Provincial
 
Expiration
 
(In millions)
 
 
U.S.-net operating loss carryovers
$
7,254

 
$
309

 
2018 to 2037
U.S.-credit carryovers
$
394

 
$
213

 
2018 to 2037
Canada-credit carryovers
$
369

 
$
42

 
2021 to 2037
Other foreign net operating loss carryovers
$
37

 
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.
 
2017
 
2016
 
2015
 
(In millions)
Statutory federal income tax expense (benefit) at 35% rate
$
22

 
$
(160
)
 
$
(226
)
State taxes, net of federal benefit
1

 
1

 
1

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

 
(1
)
 
9

U.S. valuation allowance generated
16

 
201

 
232

Credit monetization
(20
)
 
(2
)
 
(2
)
Provision for income taxes
$
19

 
$
39

 
$
14

Schedule of Unrecognized Tax Benefits Roll Forward
A reconciliation of the gross unrecognized tax benefits is as follows:
 
2017
 
2016
 
2015
 
(In millions)
Balance at beginning of year
$
42

 
$
38

 
$
28

Increases for tax positions taken in prior years
7

 
3

 
11

Decreases for tax positions taken in prior years
(2
)
 

 
(1
)
Increases for tax positions taken in the current year
3

 
2

 
2

Decreases for settlements with taxing authorities

 

 
(2
)
Decreases for lapsing of the statute of limitations
(1
)
 
(1
)
 

Balance at end of year
$
49

 
$
42

 
$
38